Slide 1: Analyst Guide
ANALYST GUIDE October 2024 (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200)>
Slide 2: Summary
Summary 1 Results of FY2024 Net Sales: ¥16,412 m -4.5% y/y Operating income : ¥4,004 m -13.0% y/y 2 Rapid Changes in the External Environment - Volatility in the Exchange Rates - Revisions to Medical Service Fees - Inflation 3 Share Repurchase Implemented Plan Period: ①From June 30, 2023 to December
Slide 3: Agenda Index
Agenda Index Ⅰ About “NAGAILEBEN” ・・・・ ・・ 3 p Ⅱ Business Environment ・・・・・・ 9 p and Strategy Ⅲ Financial Review of FY2024 ・・15 p and Forecast for FY2025 Ⅳ Overview and Measures ・・・・ 24 p Ⅴ Management Goals ・・・・・・・ 29 p VI Rewarding Shareholder- ・・・・ 35 p Focused Policies 2 © Nagaileben Co.,Ltd.
Slide 4: About Nagaileben
Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.
Slide 5: Outline
Outline Over 100 Years in Business (Established in 1915) 1 Competitive Position in Medical Clothing Market -Approximately 60% market share -Integrated Production System in domestic medical clothing Planning, Manufacturing and Marketing - The number of shipments is -Competitive product such as extens
Slide 6: Outline: Profitability and Strong Balance Sheet
Outline 3 Highly Profitability Strong Balance Sheet - Realization of high profitability 50 (%) Change of Gross Profit to Sales 42.8% (2024) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 42.8% 40 28.6% (1990) 45.3% 45.8% -Capital-to-asset ratio 91.2% (2010) (2020) 35 (1980) 39.7%
Slide 7: Let Us Help The Human Life
SDGs Solving Social Issues Through Our Business 2050 Low-Carbon Social Responsibility Environmental -Assist hospitals to reduce Efforts waste and be more economical. -Regional contribution -Consideration to environmental Regional through production base load of business. -Support hospital facilities
Slide 8: CSR Our Efforts Based on Let us help the human life
CSR Our Efforts Based on “Let us help the human life” Recent Activities Installation of Solar Power Generation Resona Group Kids Academy at the West Japan Logistics Center Participated in an educational program for Approximately 68,000 kWh of electricity generat children hosted by Resona Bank, condu
Slide 9: CSR Our Efforts Based on Social Responsibility
CSR Our Efforts Based on Social Responsibility Environmental Efforts Social Responsibility Reduction of Environmental Load Through -Providing uniforms for disaster support nurses to the Japanese Nurs Business ing Association Many of our products use materials derived from exhaustible resources. By p
Slide 10: Market Environment
II Market Environment 9 © Nagaileben Co.,Ltd.
Slide 11: Topics: Challenging Business Environment
Topics Challenging Business Environment in the Market - Increased costs due to inflation are putting pressure on the management of medical and long-term care institutions. - Reduced revenue caused by the end of COVID-19 subsidies and a decrease in patient visits. - Although there has been a positive
Slide 12: Revisions to Medical Treatment and Care Service Fees
Environment Revisions to Medical Treatment and Care Service Fees Double Revision of Medical and Care Reimbursements Planned for 2024 -Medical treatment fees: Service:+0.88% (effective June 2024), Drug price:-1.00% (effective April 2024) (+1.59%) -Nursing care fees:+1.59% (effective April 2024), (The
Slide 13: Actual Revisions in Medical Service Fees
Environment Actual Revisions in Medical Service Fees Increase in the standard amount for Revision Rate meal costs during hospitalization Wage Increase 1 Wage Increase 2 Meal Cost Efficiency and Actual Base Base Increase Optimization Targeting medical For nursing staff, hospital Streamlining and prof
Slide 14: Hospital Business Environment
Environment Hospital Business Environment Actual Portion Actual Increase in Revenue Increase in Revenue Increase in (Medical Service Fees) Labor Costs Increase in Expenses Cost Increase Increase in Due to Expenses Inflation Decrease in Patient Challenging Numbers Business Decline in Revenue End of C
Slide 15: Supply and Estimated Future Need
Environment Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 250 forecast(maximum) 245 forecast(minimum) Actual 202 200 150 245 100 188 189 166 50 0 2022 2025 2022 2025 Actual record: Overview of Health Administration Reports, MHLW Actual record: Research of Long-Term
Slide 16: Financial Review of FY2024 and Forecast for FY2025
Ⅲ Financial Review of FY2024 and Forecast for FY2025 15 © Nagaileben Co.,Ltd.
Slide 17: Financial Review of FY2024 and Forecast for FY2025
Consolidated Results Financial Review of FY2024 and Forecast for FY2025 FY2024 FY2025 (millions of yen,%) Full(Forecast) y/y Change Full(Forecast) y/y Change Net sales 16,412 -4.5 17,500 +6.6 Gross profit 7,028 -6.9 7,304 +3.9 Sales, general, and administrative expenses 3,024 +2.8 3,221 +6.5 Operati
Slide 18: Sales Overview
Consolidated Results Sales Overview FY2024 Prolonged price increase negotiations FY2024 y/y for renewal projects A large number of postponements High-price market occurred, especially in the low-price (High Value-added products) -0.7％ market, which is highly sensitive to Postponed project price chan
Slide 19: Trends in Patient Wear Sales
Overview and Measures Trends in Patient Wear Sales 3,500 3,300 2,938 2,967 3,000 2,873 2,515 2,500 2,027 2,061 1,959 2,000 1,500 1,000 500 0 18 19 20 21 22 23 24 25E Total High Value-Added products Value-Added products 18 © Nagaileben Co.,Ltd.
Slide 20: Financial Review: Gross Profit
Consolidated Results Financial Review of FY2024 and Forecast for FY2025 FY2024 FY2025 (millions of yen,%) Full(Forecast) y/y Change Full(Forecast) y/y Change Net sales 16,412 -4.5 17,500 +6.6 Gross profit 7,028 -6.9 7,304 +3.9 Sales, general, and administrative expenses 3,024 +2.8 3,221 +6.5 Operati
Slide 21: Outlook of Gross Profit to Sales
Consolidated Results Outlook of Gross profit to sales Full Year Gross profit 44.4 43.9 42.8 41.7 to sales （%） 44.7 44.6 44.2 43.2 42.3 42.9 42.4 41.0 22 1st- 22 2nd- 23 1st- 23 2nd- 24 1st- 24 2nd- 25 1st- 25 2nd- half half half half half half half half US Dollar Exchange Rate （yen/dollar） 22/8 23/8
Slide 22: Financial Review: SG&A and Capital Expenditure
Consolidated Results Financial Review of FY2024 and Forecast for FY2025 FY2024 FY2025 (millions of yen,%) Full(Forecast) y/y Change Full(Forecast) y/y Change Net sales 16,412 -4.5 17,500 +6.6 Gross profit 7,028 -6.9 7,304 +3.9 Sales, general, and administrative expenses 3,024 +2.8 3,221 +6.5 Operati
Slide 23: Status of System Investment Initiatives
Business Plan Status of System Investment Initiatives Category Planned Amount ・Development of Core Systems ¥430 m System Investment ・Overhaul of Other Systems ¥85 m ¥0.74 B ・Overhaul of System Infrastructure ¥230 m Implementation Timeline Image (Cumulative) (¥ 100 m) 800 ¥700 m ¥740 m 700 600 500 ¥4
Slide 24: Financial Review of FY2024 (Balance Sheet)
Consolidated Results Financial Review of FY2024 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 26,349 -809 -3.0 Notes and accounts receivable (including electronically recorded claims) 5,005 +26 +5.3 C
Slide 25: Overview and Measures
IV Overview and Measures 24 © Nagaileben Co.,Ltd.
Slide 26: Market Classification
Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Infection prevention Patient wear Doctors' wear Utility wear Surgery wear 25 © Nagaileben Co.,Ltd.
Slide 27: Market
Overview and Measures Market Composition y/y change FY2024 FY2025E (FY2024) (%) First-half Full Fulll Utility/Others Total sales -6.8 -4.5 +6.6 Doctors' 14.3% 3.0% Core Market -8.6 -6.4 +5.2 Patient Healthcare wear -8.4 -6.2 +6.1 18.1% Doctors' wear -8.8 -6.5 +4.9 Utility / Others -10.8 -10.4 -8.6 P
Slide 28: Product
Overview and Measures Product y/y change FY2024 FY2025E First- (%) half Full Fulll Sales by Product Total sales -6.8 -4.5 +6.6 (¥ million) High-End -6.7 -8.6 +10.3 18,000 products High Value-Added 16,000 MHLW -3.3 -0.7 +7.7 products 14,000 High-End Value-Added 12,000 -12.9 -9.5 +4.8 products 10,000
Slide 29: Production
Overview and Measures Production Composition Changes in Production Status (%) FY2024 FY2025E (Non-Consolidated) Domestic (¥ million) (%) production 45.4 44.4 12,500 60 Overseas Purchased production 54.0 55.0 10,000 products Purchased Overseas products 0.6 0.6 7,500 production 55 Domestic 5,000 produ
Slide 30: Management Goals
V Management Goals 29 © Nagaileben Co.,Ltd.
Slide 31: Business Direction
Strategy Business Direction -Capture Needs in Core Market Market -Increase Share of Peripheral Market -Cultivate Overseas Market -Develop and Sale of High-End and High Value-Added Products Product -Development of Low-Cost Strategic Products Utilizing Overseas Materials and Factories -Shift to Overse
Slide 32: Current Status of Marketing Strategy
Business Plan Current Status of Marketing Strategy Strategy Upcoming Actions Revitalizing the High-End Market with the Capture needs with strategy for value-added "MACKINTOSH PHILOSOPHY" Brand and Updating products in core market Model Changes with High Value-Added Products Expansion of Market Share
Slide 33: Current Status of Production Strategy
Business Plan Current Status of Production Strategy Strategy Upcoming Actions Increase the Ratio of Overseas Production to Compensate for the Management of suitable location Decrease in Domestic Production Capacity. production Material: Cost reduction by transferring production from domestic materia
Slide 34: Business Direction: FY2027E Targets
Strategy Business Direction FY2021 FY2024 FY2027E (3 terms ago) (Previous term) (3 terms later) Net sales ¥17.5 billion ¥16.4 billion ¥18.8 billion Core 68% 75% 71% Market Peripheral 29% 24% 28% Overseas 1% 3% 1% 60% High Value-Added 62% 53% Product Value-Added 34% 28% 27% Mass High-End 7% 4% 4% 9%
Slide 35: Trend of Business Records
Strategy Trend of Business Records (¥ million) （％） 20,000 70 65 17,500 Net sales (left) Gross profit to sales (right) 60 15,000 55 12,500 50 10,000 45 7,500 40 5,000 35 2,500 30 0 25 25 26 27 80 86 92 98 04 10 16 22 E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preceding yea
Slide 36: Rewarding Shareholder-Focused Policies
VI Rewarding Shareholder -Focused Policies 35 © Nagaileben Co.,Ltd.
Slide 37: Shareholder-Focused Policies
Reward Reimbursement Policy Shareholder-Focused Policies - Improvement of transparency by proactive disclosure - Interactive communication with investors - Profit reimbursement by high dividends Dividend Policy - Basic policy is to continue stable dividend payment with payout ratio of 50% Share Buyb
Slide 38: Shareholder Returns Based on Stable Profit
Reward Shareholder Returns Based on Stable Profit Strong balance sheet Achieving a high Highly profitability return rate 84.7 % (Total dividend + Share buyback) ÷ Net Income Share buyback Net Income ¥5.5 B * Total Assets Capital-to- asset ratio Shareholder ¥46.7 B Total dividend Returns 91.2 % ¥31.0
Slide 39: Flexible Repurchase of Share
Reward Flexible Repurchase of Share The movement of our company's stock price Stock price (end of month closing) before adjustment for splits （Yen） Stock price (end of month closing) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2001 2006 2011 2016 2021 FY2003 FY2008 FY2009 FY2011 FY2012 FY2015 FY
Slide 40: Actual Dividends Paid
Reward Actual Dividends Paid Total Total Share Payout return dividend buyback ratio ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.4 27.4 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 2004/2/24 Stock split 2-for-1 FY2005 1,117 0 56.9 56.9 FY2006 1
Slide 41: The History of Stock Value
Reward The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,500 150 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 568.3 48.0 12.5 line is when there was not outbreak. 1,400 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 FY2005
Slide 42: Management Philosophy
Management Philosophy Our management philosophy are “Let us help the human life” and “Harmony”. We think that well-balanced growth with human, profit and philanthropy become the responsible corporate. Furthermore, we have our company spirit, “Nagaism”. We continue to specialize in medical / nurse /
Slide 43: Notes on this material
Notes on this material This material includes forecasts for the future. These forecasts are based on the judgment of the Company's management concerning currently available information. These future projections include assumptions or views based on assumptions, and therefore may be different from th
Slide 44: Data File
Data File FY2024 (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200)>
Slide 45: Index
Index 1 … Sales by Market 2 … Sales by Item 3 … Sales by Product 4 … Production Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9・10 … Statements of Income (Consolidated・Non-Cons
Slide 46: Sales by Market
1. Sales by Market (¥ million) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 23/8 24/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,931 7,392 Core Market 13,207 13,021 12,438 11,640 12,250 5,674 5,187 16,000 Peripheral Market 4,152 4,486 4,509 4,508 4,950 2,161 2,097 Overseas M
Slide 47: Sales by Item
2. Sales by Item (¥ million) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 23/8 24/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,931 7,392 Healthcare wear 9,560 9,698 9,395 8,815 9,350 4,318 3,956 16,000 Doctors' wear 2,600 2,655 2,517 2,354 2,470 1,118 1,019 14,000 Utility/Ot
Slide 48: Sales by Product
3. Sales by Product (¥ million) First-half First-half (¥ million) FY 21/8 22/8 23/8 24/8 25/8E 23/8 24/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,931 7,392 High-End products 1,218 1,269 1,389 1,269 1,400 590 551 16,000 High Value-Added products 9,302 10,269 9,908 9,840 10,600 4,535 4,384 Va
Slide 49: Production Strategy (Non-Consolidated)
4. Production Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 21/8 22/8 23/8 24/8 25/8E 12,500 60 23/8 24/8 Domestic production 4,581 4,974 4,933 4,673 4,800 2,535 2,414 Overseas production 4,824 5,456 5,680 5,559 5,940 2,769 2,871 Purchased products 110 83 64 63 60 2
Slide 50: Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 23/8 24/8 Net Sales 17,563 17,745 17,181 16,412 17,500 7,931 7,392 Gross profit 8,058 7,881 7,547 7,028 7,304 3,404 3,195 Sales, general, and administrative expenses 2,846 2,850 2,942 3,024 3,221 1,
Slide 51: Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 23/8 24/8 Net Sales 17,552 17,737 17,177 16,402 17,500 7,927 7,386 Gross profit 7,875 7,726 7,390 6,894 7,194 3,322 3,120 Sales, general, and administrative expenses 2,849 2,874 2,945 3,002 3,19
Slide 52: Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 20/8 21/8 22/8 23/8 24/8 23/8 24/8 Profitability ROE (%) 8.7 8.9 9.0 7.5 6.6 - - ROA (%) 11.3 11.6 11.0 9.9 8.7 - - Return on sales Net income (%) 20.4 20.8 21.3 18.8 17.2 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.3 - -
Slide 53: Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 20/8 21/8 22/8 23/8 24/8 23/8 24/8 Profitability ROE (%) 9.2 9.4 9.5 8.1 7.0 - - ROA (%) 12.0 12.3 11.6 10.5 9.2 - - Return on sales Net income (%) 20.0 20.4 21.0 18.6 17.1 - - ROE resolution Total AssetsTurnover (Times) 0.4 0.4 0.4 0.4 0.4
Slide 54: Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,181 100.0 16,41
Slide 55: Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,177 100.0
Slide 56: Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 38,995 82.3 38,285
Slide 57: Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,515 81.3 35,0
Slide 58: The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (Initial plan) (¥ million) 20,000 50 FY 20/8 21/8 22/8 23/8 24/8 Full Year 17,400 17,300 17,700 18,200 17,800 First-half 7,482 7,655 7,719 8,022 7,936 Second-half 9,918 9,645 9,980 10,178 9,863 15,000 25 [Result] (¥ mill