Olba Healthcare Holdings, Inc. · TSE:2689
Olba Healthcare — Q2 FY6/2024 Earnings Presentation
54 slides from Olba Healthcare's earnings presentation, Mar 21, 2024
Slide 1: Financial Results Report Q2 FY06/2024
Financial Results Report Q2 FY06/2024 OLBA HEALTHCARE HOLDINGS, Inc . (Former KAWANISHI HOLDINGS CO., LTD.) (Ticker :2689) This presentation includes machine translation. Please consider that some content may not be perfectly accurate or contextually appropriate. 1
Slide 2: Condolence to the 2024 Noto Peninsula Earthquake
Condolence to the 2024 Noto Peninsula Earthquake We would like to express our sincere condolences to those affected by the Noto Peninsula Earthquake. I pray for the earliest possible recovery and return to a peaceful life. 2
Slide 3: Contents
Contents ⚫ Corporate Philosophy and Sustainability ⚫ Q2 FY6/2024 Results ⚫ Forecasts and Basic policy on dividends for FYE June 2024 ⚫ Medium-term business plan ⚫ Reference Materials 3
Slide 4: Corporate Philosophy・Sustainability-related
Corporate Philosophy・ Sustainability-related 4
Slide 5: Corporate Philosophy (Purpose)
Corporate Philosophy (Purpass) Aiming to develop medical science, medical care, and long-term nursing care through our business endeavors 5
Slide 6: Formulation of Basic ESG Policy
Formulation of Basic ESG Policy Formulated the Basic ESG Policy based on the Employee Charter Environment (environmental) ・Aiming to Realize a Sustainable Society by Considering Environmental Impact Reduction and Environmental Conservation ⇒ Calculate greenhouse gas emissions and energy consumption,
Slide 7: ESG Initiatives (S: Society)
ESG Initiatives (S: Society) Investing in Human Capital and Working Style Reform ⚫ Improvement of employee treatment ⇒ Periodic salary increase + about 3% to 4% for bears ⚫ Male employees taking childcare leave ⇒ Increasing trend ⚫ Introduction of flextime and telecommuting, and promotion of "Sansei
Slide 8: Continued emphasis on human resource education
Continued emphasis on human resource education ◼ Systematic human resource development and acquisition of expertise OLBA Academy, a 30-year-old internal training system Set opportunities to learn according to employee stages ・Enhance employee engagement ・Sources of competitive advantage Building exp
Slide 9: SDGs (Sustainable Development Goals)
SDGs (Sustainable Development Goals) Connecting People and the Future OLBA Connecting us to the future Six Priority Targets Exercise Acknowledge the capabilities In countries around the world by 2030 Mission difference Can do 17 development objectives to be achieved Respect Creating an (United Natio
Slide 10: CSR Initiatives: Community-Based Social Contributions
CSR Initiatives: Community-Based Social Contributions Working together with local residents to create a future conducive to regional development and revitalization Faziano Okayama Okayama TEC PLANTER Club sponsor Partner companies With the creation of new businesses based on technologies Established
Slide 11: Overview of Results for 2nd quarter FY6/2024
FYE June 2024 Overview of Results for 2nd quarter FY3/16 11
Slide 12: Consolidated Financial Results for the Second Quarter of Fiscal 2024
Consolidated Financial Results for the Second Quarter of Fiscal 2024 Record high net sales in the interim financial results Comparison JPYmn YoY with budget Sales 57,466 △0.5% +7.0% Gross profit 6,430 △2.4% +4.0% Sales GPM 11.19% SG&A expenses 5,683 △2.6% +6.7% Operating profit 746 △0.8% △12.5% Recu
Slide 13: Impact of New Corona, Inflation, and Yen Depreciation
Impact of New Corona Infectious Disease, Inflation, and Yen Depreciation ◼ The number of operations has generally recovered to pre-corona levels ・Increase the rate of vaccination, take measures against infectious diseases at hospitals, change to 5 communicable diseases, etc. ・Corona-related product
Slide 14: [Interim] Medical Devices and Consumables
[Interim] Medical Devices and Consumables Total partners in the medical field Medical equipment 〔93.3%〕 Comparison JPYmn Act. YoY with budget ※1 Sales 54,284 △1.1% +7.1% Sales % of total Operating 668 △2.1% △9.0% profit JPYmn Sales Results ※2 YoY Kawanishi 36,364 +6.4% Corporation Sansei Medical 13,
Slide 15: [Interim] Medical Equipment Business Consumables
[Interim] Medical Equipment Business Consumables Sales ¥48.3 billion up 6.6% year on year Millions of yen Product Classification Sales YoY Points of sub-segments Surgery-related GI endoscopes +26.0%, anesthesia +14.7% consumables 24,580 +5.4% Surgery +11.6%, anti-infective △ 10.9% Orthopedic Spine +
Slide 16: [Interim] Medical device business-equipment and fixtures
[Interim] Medical device business-equipment and fixtures Net sales ¥6.9 billion up 18.9% year on year Points of Equipment Sales ◆Year-on-year increase due to strengthened discovery of capital investment projects ◆Strong sales of automated payment machines for clinics ・Pulmotor ・Ultrasonic diagnostic
Slide 17: [Interim] SPD business
[Interim] SPD business SPD[4.5%] Comparison JPYmn Act. YoY with budget Sales 2,590 △1.1% +0.9% Sales Operating % of total 52 +38.6% ▲46.5% profit ◆ Review of commodity management service fees Total number of subscribers ◆ Decreased due to lost orders and decreased demand for infection control produc
Slide 18: [Interim] Nursing Care Products business
[Interim] Nursing Care Products business Comparison Nursing Care Products 〔2.3%〕 JPYmn Act. YoY with budget Sales 1,317 +1.7% +5.7% Operating Sales 101 △5.3% +11.1% % of total profit ◆ Continued demand for home medical care and in-home nursing care ◆ Mainstay nursing care product rentals up 4.7% YoY
Slide 19: FYE June 2024 results forecast, Basic policy on dividends
FYE June 2024 results forecast Basic policy on dividends 19
Slide 20: Consolidated Financial Forecasts for the Fiscal Year Ending June 2024
Consolidated Financial Forecasts for the Fiscal Year Ending June 2024 All-time highs for net sales, operating income, and ordinary income (JPYmn) Forecast 2023/6 Act. Change Sales 118,386 110,472 +7.2% Gross profit 13,872 12,954 +7.1% Sales GPM 11.72% 11.73% △0.01 SG&A expenses 11,672 10,803 +8.0% O
Slide 21: Factors behind Changes in Operating Income for FYE June 2024
Factors behind Changes in Operating Income for the Fiscal Year Ended June 2024 (JPYmn) [Major Factors of Changes] Medical Devices and Consumables ・Consumables sales expected to increase steadily ・Expected increase in sales of equipment and fixtures ・Human investment for future growth SG&A expenses i
Slide 22: Consolidated Financial Results [Net Sales]
Consolidated Financial Results [Net Sales] FYE June 2024 Forecast of ¥118.3 billion (+7.2% YoY) (JPYmn) Record-high forecast 160,000 118,386 120,000 110,472 107,959 102,072 97,837 80,000 53,718 57,466 50,460 49,861 53,030 40,000 0 Half-year Full year Half-year Full year Half-year Full year Half-year
Slide 23: Consolidated Financial Results [Operating Income]
Consolidated Financial Results [Operating Income] Full-year operating income increased for the FYE June 2024 Forecast of ¥2.2 billion (+2.3% YoY) fourth consecutive year and reached a record high (JPYmn) 2,500 2,151 2,200 Import and sales business 2,073 2,000 Provision for doubtful accounts △ 350 mi
Slide 24: Basic Policy on Dividends (Change on October 31, 2023)
Basic Policy on Dividends (Change on October 31, 2023) The first basic policy was changed from "continuing stable dividends" to "aiming to increase or maintain dividends." ① Aiming to increase or maintain dividends FY6/24 forecast is JPY70 ② We will endeavor to retain internal reserves for growth in
Slide 25: Financial indicators we emphasize
Financial indicators we emphasize ✓ Sales ✓ Operating profit Net income Profitability ✓ ROE =(Return on Equity) x 100% improvement Shareholders' equity Aiming to improve PBR by improving profitability, promoting new businesses, etc. Market capitalization Net income PBR = PER x ROE =x Net income Shar
Slide 26: Profitability analysis of cost of capital and equity status
Profitability analysis of the cost and capital current of equity status ROE・Cost of equity 20.0% 18.0% 17.8% ・Equity spread (%) (Cost of ROE-equity) 16.0% 14.6% ⇒ Approx. 6% to 7% 14.0% ・For the cost of capital on an ongoing basis 12.8% Achieve higher profitability on capital 12.0% 12.0% ・5 years hi
Slide 27: Medium-term business plan
Medium-term business plan 27
Slide 28: Domestic market size of medical devices
Domestic market size of medical devices Stable market growth despite policies to curb medical costs In fiscal 2023, Forecast of ¥3.774 trillion ・Recovering from the Impact of the New Corona and Stable Market Expansion ・Market expansion due to increase in number of surgeries and introduction of new p
Slide 29: Medium-term management plan
Medium-term management plan Key Points of the 2024/6-2026/6 Medium-Term Management Plan Strengthen operations and OLBA-DX improve productivity Medical Devices and Consumables CRM/SFA/BI construction Strengthen purchasing bargaining power Enhancement of electronic catalog functions Back-office operat
Slide 30: Reforming by promotion office
Reforming by Reform by promotion office Integrated logistics syste Develop Web order application To provide started operation new value Streamlinin CRM g of regular construction operations Introduction of business card Expansion of RPA utilization management system Developmen Democratiz t of DX atio
Slide 31: DX Initiatives ① Development of DX Human Resources
DX Initiatives ① Development of DX Human Resources Human Resource Development: Conducted DX literacy training for all employees Compliance with METI's DX Literacy Standards ◇Know from familiar examples Course to learn knowledge, ◇IT Software Basicthinking, Course and mindset Introduction to IT Raisi
Slide 32: DX Initiatives ② Unique Electronic Catalogue
CRM/SFA/BI construction DX Initiatives ② Unique Electronic Catalogue Enhancement of electronic catalog functions ● Utilization of proprietary electronic catalogue "MedTag" ⚫ Rapid and reliable provision of information required by customers ⚫ Posted 450000 of the total 850000 medical devices and supp
Slide 33: DX Initiatives ③ Logistics Innovation
DX Initiatives ③ Logistics Innovation Li-Flo utilization ● Operation of Li-Flo, an integrated logistics system Started operation in September 2022 sequentially from the Kawanishi base of the operating companies ⇒ Expand of the system to the entire group Reinforcement in To reinforce quality Streamli
Slide 34: Clinic target towards new business
Clinic target towards new business business Expansion of the Burkmed business Automatic payment machine Temasac sales for clinics ●Introduction results from July to December 2023: 100 units (YoY +47 units) ●Cumulative number of vehicles introduced: 373 (As of the end of December, 2023) Third in the
Slide 35: Business alliance with DVx
Business alliance with DVx Promote business alliances Entered into a business alliance with DVx Entered into a business alliance agreement with the company for the next 100 years Counterparty for business alliance ・DIVEX CO., LTD (Securities code: 3079 Sales: 47.4 billion yen) ・A trading company tha
Slide 36: Established THAI OLBA Healthcare Co., Ltd.
Established THAI OLBA Healthcare Co., Ltd. ASEAN business development Establishment of joint venture (January 26, 2023) Invested in and commenced operations at THAI OLBA Healthcare Co., Ltd., a medical device import and sales company in Thailand [Commemorative ceremony for the establishment of Bangk
Slide 37: Thaiolba Healthcare Business
Thaiolba Healthcare Business ASEAN business development Business development scheme Japan Thailand ASEAN Industry-academia- government collaboration Local OEM Development and production Technical Service Domestic medical devices Examples of initiatives: Concluded an official sales agent agreement wi
Slide 38: Collaboration with Nozomi MedAlliance
Collaboration with Nozomi MedAlliance Collaboration with startups Strengthening the foundations of our mainstay medical device business Investment in Nozomi MedAlliance in May. 2023, [Benefits] ・Ability to access overseas companies wishing to enter the Japanese medical device market ・Incubation of m
Slide 39: Medical/Engineering Collaboration
Medical/Engineering Collaboration-Medical/Engineering Medical-engineering collaboration Collaboration Model Participating in the Medical Equipment Sales Industry- Customer network with extensive sales channel functions Cooperation with corporations, universities, and regional industry support organi
Slide 40: Medical Globe
Publication of overseas leading-edge medical device information magazines Overseas medical information magazine Medical Globe Publication: Orba Health Care Holdings This publication is Kraribate Analytics As well as Relias Media's most recent pride From overseas medical information, trends in the me
Slide 41: Study Group on Latest Trends in Overseas Medical Devices
Nippon Medical Manufacturing Commons MINC Association Of the "Study Group on the Latest Trends in Overseas Medical Devices" On Medical Globe Sharing and discussing information on the latest overseas medical device information among various industries Trade and Industry, the Ministry of Health, Labou
Slide 42: SPD business
SPD business ● Acquisition of new customers and improvement of revenue & ・Develop customers in the Chugoku-Shikoku area ・Opening of centers in Kansai area in cooperation with Kawanishi Co., Ltd. ● Wide-area sales of the Medilia inventory management system ・Voluntary investment type at small and medi
Slide 43: Nursing Care Products business
Nursing Care Products business ● In-house construction of residential ● Increase market share in existing areas remodeling for nursing care ・Strengthen customer service by enhancing follow-up ・Cultivating new users system ・Providing Safety and Security Services ・Promote sales activities using ICT ●
Slide 44: Reference Materials
Reference Materials oa OLBA HEALTHCARE DES ACHR.
Slide 45: Corporate Profile
Corporate Profile Company Name: Orba Healthcare Holdings Co., Ltd. (Former name: Kawanishi Holdings Co., Ltd.) Head Office 1-3, Shimo-Ishii 1-chome, Kita-ku, Okayama Founded in May 1921 Established 1967 Oct Representative Director and President Yohei Maeshima Kawanishi Corporation Berkmed Corp. Capi
Slide 46: History
History May, 1921 Established Kawanishi Kikai Kikai Store in Ounji-cho, Okayama City (currently Chuo-cho, Kita-ku, Okayama City). Sep. 1927 Associated company Kawanishi Machinery Shop reorganized and established. Jun 1950 Reorganized and established Kawanishi Kikiten Co., Ltd. 1967 Oct Reorganized a
Slide 47: OLBA Employee Charter
OLBA Employee Charter Business Structure ○ Contribute to the development of medicine, medical care, and nursing care through business and contribute to the health and longevity of the national ○ Promptly and appropriately provide patients and healthcare providers with the benefits of innovative new
Slide 48: Consolidated Balance Sheets (2Q FY6/2024)
Consolidated Balance Sheets (2Q FY6/2024) JPYmn Assets Amount Change Liabilities and Net Amount Change Assets Cash and deposits 2,921 521 Trade payables 26,846 1,474 Trade receivables 26,135 1,626 Short-term debt 2,700 1,745 Commodities 6,590 429 Other 1,738 △527 Other 698 27 Total current liability
Slide 49: Consolidated Statements of Cash Flows (FY2024 2Q)
Consolidated Statements of Cash Flows (FY2024 2Q) FYE June 2023 FYE June 2024 JPYmn 2nd quarter 2nd quarter Pre-tax profit 856 745 Depreciation 234 259 Decrease (increase) in notes and accounts receivable- △834 △1,629 trade (increase in △) Decrease (increase) in inventories (increase in △) △560 △429
Slide 50: Consolidated Statements of Cash Flows (FY2024 2Q)
Consolidated Statements of Cash Flows (FY2024 2Q) FYE June 2023 FYE June 2024 JPYmn 2nd quarter 2nd quarter Net increase (decrease) in short-term borrowings (△) 2,100 1,800 Repayments of long-term debt △110 △55 Expense by acquisition of treasury shares △181 △221 Proceeds from sales of treasury stock
Slide 51: Consolidated Financial Data ①
Consolidated Financial Data ① Item Unit 2019/6 2020/6 2021/6 2022/6 2023/6 Sales JPYmn 97,998 97,872 102,072 107,959 110,472 Operating profit JPYmn 1,301 927 1,540 2,073 2,151 Recurring profit JPYmn 1,309 905 1,542 2,119 2,158 Attributable to owners of the parent Net income JPYmn 775 326 989 1,535 1
Slide 52: Consolidated Financial Data ②
Consolidated Financial Data ② Item Unit 2019/6 2020/6 2021/6 2022/6 2023/6 Sales CF JPYmn 136 862 3,126 2,420 △659 Investment CF JPYmn △361 △496 △630 △211 △306 Finance CF JPYmn △62 439 △2,262 △1,169 175 Cash and cash equivalent JPYmn 1,070 1,877 2,110 3,149 2,359 Bank loans JPYmn 2,261 2,615 795 275
Slide 53: Corporate Information/Inquiries
Corporate Information/Inquiries [Fiscal year] From July 1 to June 30 of the following year [Ordinary General Meeting of Shareholders] Held annually in September [Stock Exchange Listings] Tokyo Stock Exchange (Standard Market) Ticker 2689 [Number of shares per unit] 100 shares 【Contact Details】 Olba
Slide 54: ・ While we take all possible measures with respect to the datum provided in
・ While we take all possible measures with respect to the datum provided in this material, The accuracy and completeness of information is not guaranteed. ・ To the information available at the time of preparation of the data for the opinions and projections contained in the materials This is our out
OLBA HEALTHCARE HOLDINGS — Q2 FY6/2024 Earnings Presentation on 6ix