Nagaileben Co., Ltd. · TSE:7447

Nagaileben — H1 FY2025 Earnings Presentation

55 slides from Nagaileben's earnings presentation, April 2025

  1. Slide 1: Analyst Guide

    ANALYST GUIDE April 2025 (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)>

  2. Slide 2: Summary

    Summary 1 Results FY2025 (millions of yen,%) First-half(Results) To Forecast % y/y Change Net sales 7,843 +2.4 +6.1 Operating income 1,499 +2.0 -6.8 2 Continuing Challenging External Environment - Exchange Rate Fluctuations - Impact of Medical Service Fee Revisions - Effects of Inflation 3 Share Rep

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・・ ・・ 3 p Ⅱ Market Environment ・・・・・・ 9 p Ⅲ Financial Review of ・・15 p First-half FY2025 and Forecast for FY2025 Ⅳ Overview and Measures ・・・・ 21 p Ⅴ Management Goals ・・・・・・・ 26 p VI Rewarding Shareholder- ・・・・ 32 p Focused Policies 2 © Nagaileben Co.,Ltd.

  4. Slide 4: I About Nagaileben

    Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.

  5. Slide 5: Outline: Competitive Position and Stable Growing Market

    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

  6. Slide 6: Outline: Profitability, Balance Sheet, Shareholder Policies

    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%

  7. Slide 7: Let Us Help The Human Life Support

    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

  8. 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 Medical Support for Hosting Corporate Visits for Developing Countries Inquiry-Based Learning Through an NPO, we donated surgical gowns, We implemented a program to host high surgical supplies, and isolation gowns to prote school

  9. 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 Nursing Asso Business ciation Many of our products use materials derived from exhaustible -Donation Infec

  10. Slide 10: II Market Environment

    II Market Environment 9 © Nagaileben Co.,Ltd.

  11. 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

  12. 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

  13. Slide 13: 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

  14. Slide 14: 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

  15. Slide 15: III Financial Review of First-half FY2025 and Forecast

    Ⅲ Financial Review of First-half FY2025 and Forecast for FY2025 14 © Nagaileben Co.,Ltd.

  16. Slide 16: Consolidated Results

    Consolidated Results Financial Review of First-half FY2025 and Forecast for FY2025 FY2025 FY2025 (millions of yen,%) First-half(Results) To Forecast % y/y Change Full(Forecast) y/y Change Net sales 7,843 +2.4 +6.1 17,500 +6.6 Gross profit 3,117 -0.9 -2.4 7,169 +2.0 Sales, general, and administrative

  17. Slide 17: Consolidated Results: Gross Profit

    Consolidated Results Financial Review of First-half FY2025 and Forecast for FY2025 FY2025 FY2025 (millions of yen,%) First-half(Results) To Forecast % y/y Change Full(Forecast) y/y Change Net sales 7,843 +2.4 +6.1 17,500 +6.6 Gross profit 3,117 -0.9 -2.4 7,169 +2.0 Sales, general, and administrative

  18. Slide 18: Outlook of Gross Profit to Sales

    Consolidated Results Outlook of Gross profit to sales Full Year Gross profit 44.4 43.9 42.8 41.0 to sales （%） US Dollar Exchange Rate （yen/dollar） 22/8 23/8 24/8 25/8 Real Exchange Rate 131.4 140.5 151.5 154.2 － Cost Exchange Rate 114.1 131.5 146.0 154.4 149 * The real exchange rate is an annual ave

  19. Slide 19: Consolidated Results: SG&A and Capital Expenditure

    Consolidated Results Financial Review of First-half FY2025 and Forecast for FY2025 FY2025 FY2025 (millions of yen,%) First-half(Results) To Forecast % y/y Change Full(Forecast) y/y Change Net sales 7,843 +2.4 +6.1 17,500 +6.6 Gross profit 3,117 -0.9 -2.4 7,169 +2.0 Sales, general, and administrative

  20. Slide 20: 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 40

  21. Slide 21: Financial Review of First-half FY2025 (Balance Sheet)

    Consolidated Results Financial Review of First-half FY2025 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 23,057 -2,004 -8.0 Notes and accounts receivable (including electronically recorded claims) 5,0

  22. Slide 22: IV Overview and Measures

    IV Overview and Measures 21 © Nagaileben Co.,Ltd.

  23. Slide 23: Market Classification

    Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Infection prevention Patient wear Doctors' wear Utility wear Surgery wear 22 © Nagaileben Co.,Ltd.

  24. Slide 24: Overview and Measures: Market

    Overview and Measures Market Composition y/y change FY2024 FY2025 (FY2024) (%) First-half Full First-half Fulll(E) Utility/Others Total sales -6.8 -4.5 +6.1 +6.6 Doctors' 14.3% 3.0% Core Market -8.6 -6.4 +6.6 +5.7 Healthcare Patient wear -8.4 -6.2 +7.8 +6.7 18.1% Doctors' wear -8.8 -6.5 +5.8 +4.9 Ut

  25. Slide 25: Overview and Measures: Product

    Overview and Measures Product y/y change FY2024 FY2025 (%) First-half Full First-half Fulll(E) Sales by Product Total sales -6.8 -4.5 +6.1 +6.6 (¥ million) High-End products -6.7 -8.6 +10.9 +10.３ 18,000 High Value-Added 16,000 MHLW products -3.3 -0.7 +12.7 +8.7 14,000 High-End Value-Added 12,000 pro

  26. Slide 26: Overview and Measures: 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

  27. Slide 27: V Management Goals

    V Management Goals 26 © Nagaileben Co.,Ltd.

  28. Slide 28: Strategy: 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

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Strategy: Business Direction

    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%

  32. Slide 32: 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

  33. Slide 33: VI Rewarding Shareholder-Focused Policies

    VI Rewarding Shareholder -Focused Policies 32 © Nagaileben Co.,Ltd.

  34. Slide 34: 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

  35. Slide 35: Shareholder Returns Based on Stable Profit

    Reward Shareholder Returns Based on Stable Profit Strong balance sheet Achieving a high Highly profitability return rate 71.7 % (Total dividend + Share buyback) ÷ Net Income Share buyback Net Income ¥9.5 B Total Assets Capital-to- asset ratio Shareholder ¥43.8 B Total dividend Returns 92.6 % ¥59.1 B

  36. Slide 36: 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) FY2003 FY2008 FY2009 FY2011 FY2012 FY2015 FY2020 FY2022 FY2023 FY2024 FY2025 Share buyback ¥1.6B ¥1.0B ¥1.2B ¥0.2B ¥0

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: 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 /

  40. Slide 40: 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

  41. Slide 41: Data File First-half FY2025

    Data File First-half FY2025 (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)>

  42. Slide 42: 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

  43. Slide 43: 1. Sales by Market

    1. Sales by Market (¥ million) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 24/8 25/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,392 7,843 Core Market 13,207 13,021 12,438 11,640 12,300 5,187 5,530 16,000 Peripheral Market 4,152 4,486 4,509 4,508 4,900 2,097 2,230 Overseas M

  44. Slide 44: 2. Sales by Item

    2. Sales by Item (¥ million) (¥ million) First-half First-half FY 21/8 22/8 23/8 24/8 25/8E 24/8 25/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,392 7,843 Healthcare wear 9,560 9,698 9,395 8,815 9,410 3,956 4,263 16,000 Doctors' wear 2,600 2,655 2,517 2,354 2,470 1,019 1,079 14,000 Utility/Ot

  45. Slide 45: 3. Sales by Product

    3. Sales by Product (¥ million) First-half First-half (¥ million) FY 21/8 22/8 23/8 24/8 25/8E 24/8 25/8 18,000 Sales 17,563 17,745 17,181 16,412 17,500 7,392 7,843 High-End products 1,218 1,269 1,389 1,269 1,400 551 611 16,000 High Value-Added products 9,302 10,269 9,908 9,840 10,700 4,384 4,942 Va

  46. Slide 46: 4. 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 24/8 25/8 Domestic production 4,581 4,974 4,933 4,673 4,800 2,414 2,366 Overseas production 4,824 5,456 5,680 5,559 5,940 2,871 2,950 Purchased products 110 83 64 63 60 3

  47. Slide 47: 5. 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 24/8 25/8 Net Sales 17,563 17,745 17,181 16,412 17,500 7,392 7,843 Gross profit 8,058 7,881 7,547 7,028 7,169 3,195 3,117 Sales, general, and administrative expense 2,846 2,850 2,942 3,024 3,086 1,5

  48. Slide 48: 6. 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 24/8 25/8 Net Sales 17,552 17,737 17,177 16,402 17,500 7,386 7,836 Gross profit 7,875 7,726 7,390 6,894 7,059 3,120 3,076 Sales, general, and administrative expenses 2,849 2,874 2,945 3,002 3,05

  49. Slide 49: 7. Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 20/8 21/8 22/8 23/8 24/8 24/8 25/8 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 - -

  50. Slide 50: 8. Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 20/8 21/8 22/8 23/8 24/8 24/8 25/8 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

  51. Slide 51: 9. Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 24/8 First-half 25/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,181 100.0 16,41

  52. Slide 52: 10. Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 24/8 First-half 25/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,177 100.0

  53. Slide 53: 11. Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 24/8 First-half 25/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 38,995 82.3 38,285

  54. Slide 54: 12. Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 23/8 24/8 Change(the previous year) First-half 24/8 First-half 25/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,515 81.3 35,0

  55. Slide 55: 13. The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (Initial plan) (¥ million) 20,000 50 FY 21/8 22/8 23/8 24/8 25/8 Full Year 17,300 17,700 18,200 17,800 17,500 First-half 7,655 7,719 8,022 7,936 7,660 Second-half 9,645 9,980 10,178 9,863 9,840 15,000 25 [Result] (¥ mill

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