Cellsource Co., Ltd. · TSE:4880
Cellsource — Q3 FY10/2024 Earnings Presentation
38 slides from Cellsource's earnings presentation, Sep 12, 2024
Slide 1: Earnings Presentation Q3 FY10/2024
Earnings Presentation Q3 FY10/2024 CellSource Co., Ltd (TSE Prime: 4880) September 12, 2024
Slide 2: Table of Contents
Table of Contents 1 Downward Revision of the Earnings Forecast for FY10/2024 2 Financial Results for Q3 FY10/2024 3 Progress of Strategies for Contract Processing Services in Orthopedics 4 KPIs 5 Other Updates
Slide 3: Downward Revision of the Earnings Forecast for FY10/2024
Downward Revision of the Earnings Forecast for FY10/2024
Slide 4: Downward Revision of the FY10/2024 Earnings Forecast: Overview
Downward Revision of the FY10/2024 Earnings Forecast: Overview Revised down the full-year forecast in light of progress through end-Q3 and current projections; see slide 6 for the analysis of factors leading to the downward revision and outlook FY10/2024 [Millions of yen] Net sales Operating profit
Slide 5: Downward Revision of the FY10/2024 Earnings Forecast: Net Sales
Downward Revision of the FY10/2024 Earnings Forecast: Net Sales Revised down the sales forecast by JPY990 million, due mainly to a decline in contract processing sales Net sales in Initial net sales Revised net Difference between revised and FY10/2023 forecast sales forecast [Millions of yen] initia
Slide 6: Factors Leading to the Sales Forecast Revision
Downward Revision of the FY10/2024 Earnings Forecast: Factors Leading to the Sales Forecast Revision The downward revision was primarily due to discrepancies between the actual and projected contract processing orders from orthopedics clinics specializing in self-funded treatment Sales forecast Busi
Slide 7: Comparison of the Initial and Revised Operating Profit Forecasts
Downward Revision of the FY10/2024 Earnings Forecast: Comparison of the Initial and Revised Operating Profit Forecasts Fixed costs related to the relocation of a production facility and SG&A expenses were in line with initial expectations. Revised down the operating profit forecast by JPY583 million
Slide 8: Toward the Medium- to Long-term Vision
Toward the Medium- to Long-term Vision 1. Strengthen partnerships with medical institutions specializing in self-funded orthopedic clinics • Continue strengthening collaboration with medical institutions specializing in self-funded treatment to build a stronger partnership • Enhance the competitiven
Slide 9: Financial Results for Q3 FY10/2024
Financial Results for Q3 FY10/2024
Slide 10: Performance Highlights for Q3 FY10/2024 (cumulative)
Performance Highlights for Q3 FY10/2024 (cumulative) Net Sales Operating Profit Profit JPY 3.34 billion JPY 388 million JPY 374 million (-1.9% YoY) (-62.8% YoY) (-44.6% YoY) Blood-derived product Operating Profit ASC contract contract processing Margin processing orders orders 11.6% 16,348 1,178 (-1
Slide 11: Performance Summary
Performance Summary Q2 Q3 Cum. Q3 Cum. Q3 l Net sales: Sales from contract processing [Millions of yen] QoQ YoY FY10/2024 FY10/2024 FY10/2023 FY10/2024 services, medical device sales, and cosmetic sales and other increased QoQ, while Net sales 1,054 1,113 +5.6% 3,406 3,341 -1.9% consulting service s
Slide 12: Net Sales
Net Sales Net sales increased QoQ, owing to a recovery in contract processing service sales Cosmetic sales and other Medical device sales [Millions of yen] Consulting services Cum. Q3 FY10/2023 Cum. Q3 FY10/2024 YoY 1,400 1,400 Contract processing services Total Millions of yen 220 1,235 1,200 1,175
Slide 13: Gross Profit and Operating Profit
Gross Profit and Operating Profit Q3: Gross profit and operating profit increased QoQ, thanks to sales growth and GPM remaining flat (slide 14) Q4: See slide 15 Gross profit Operating profit [Millions of yen] [Millions of yen] 1,200 Gross profit Gross profit m argin 100% Operati ng profit Operati ng
Slide 14: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin GPM decreased, despite improved GPM for contract processing services, due to slight declines for other services. Expect GPM to fall slightly from Q4 onward, reflecting the recording of expenses associated with the start of operations at the new production facility as
Slide 15: Difference between Q3 Operating Profit and Q4 Operating Profit Forecast
Difference between Q3 Operating Profit (Result) and Q4 Operating Profit Forecast Expect operating profit to fall sharply in Q4, due to lower cosmetics and consulting services sales and the booking of double facility-related costs as a result of the earlier-than-expected startup of the new production
Slide 16: SG&A Expenses
SG&A Expenses Q3: SG&A expenses were largely flat QoQ, thanks to ongoing cost-control measures [Millions of yen] Q4: Expect rent to decline, following the production start at the new facility Other Advertising expenses + sales promotion expenses Cum. Q3 FY10/2023 Cum. Q3 FY10/2024 YoY 700 R&D expens
Slide 17: Rent expenses
Rent expenses Total rent was in line with expectations, despite changes in expense recording due to the earlier-than- expected startup of ZERO LAB Made progress in withdrawing from the former office and production facility, and expect rent to gradually decrease from next fiscal year onward Cost of s
Slide 18: Balance Sheet
Balance Sheet Non-current assets increased due to the addition of a new facility. We are maintaining a robust financial base, and plan to review and include a cash allocation policy in the medium- to long-term vision. [Millions of yen] 7,000 Cash and deposits Current liabilities 6,000 Other current
Slide 19: Progress of Strategies for Contract Processing Services in Orthopedics
Progress of Strategies for Contract Processing Services in Orthopedics
Slide 20: Timeline for Implementing Strategies for Contract Processing Service
Timeline for Implementing Strategies for Contract Processing Service Making steady progress in implementing strategies for the contract processing services business in the orthopedics field disclosed in the previous quarter Aim to be able to disclose a certain level of results at the time of full-ye
Slide 21: Progress of Strategies: Executive Summary
Progress of Strategies for Contract Processing Services in Orthopedics: Executive Summary • Since its launch in April, the service has been steadily penetrating the market. As of end- August, total orders amounted to 6,192. PFC-FDTM(2.0) • Succeeded in attracting new patient segments with the introd
Slide 22: QoQ Change in KPIs Comprising the No. of Blood-derived Product Processing Orders
QoQ Change in KPIs Comprising the No. of Blood-derived Product Processing Orders Orders from medical institutions specializing in self-funded treatment held firm, despite the impact of holidays Orders from hybrid medical institutions grew sharply Specializing in self-funded Hybrid*2 Overall treatmen
Slide 23: Launch of PFC-FD (2.0) and New ASC Technology
Launch of PFC-FD (2.0) and New ASC Technology PFC-FD (2.0): Orders from hybrid clinics increased due to the introduction of a multi-tiered pricing system, as initially expected ASC: The new technology contributed to order growth from clinics specializing in self-funded treatment. We expect an increa
Slide 24: Additional Technological Updates for ASC Contract Processing Service
Additional Technological Updates for ASC Contract Processing Service Aim for further expansion of services using ASC with an updated extraction technology • Cellular hypertrophy is known as one of the common phenotypes of senescent cells Summary • Updated the extraction technology to remove cells ex
Slide 25: Slide 25
Slide 26: Business KPI Highlights for Q3 FY10/2024
Business KPI Highlights for Q3 FY10/2024 Number of partner Blood-derived product Adipose-derived stem cell contract processing orders contract processing orders medical institutions (cumulative) (cumulative) 1,923 16,348 1,178 (+269 YoY) (-13.6% YoY) (-28.7% YoY) As of FY10/2024, the number of contr
Slide 27: Number of Partner Medical Institutions
Number of Partner Medical Institutions*1 Partner medical institutions continued to increase, even after we cut back sales resources for acquiring new contracts Change in sales policy 2,000 No. of partner medical institutions 1,923 1,865 1,802 1,800 1,749 1,654 1,600 1,557 1,455 1,378 1,400 1,301 1,2
Slide 28: Number of Contract Processing Orders for Blood-derived Products
Number of Contract Processing Orders for Blood-derived Products 7,000 Quarterly orders 6,440 6,527 6,569 6,363 6,000 6,000 5,832 5,618 5,314 5,202 5,000 4,406 4,135 4,000 Q3 FY10/2024 3,000 5,832 orders (-11.2% YoY) 2,000 Cumulative: 90,018 orders 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY10/2022 F
Slide 29: Number of Contract Processing Orders for Adipose-derived Stem Cells (ASC)
Number of Contract Processing Orders for Adipose-derived Stem Cells (ASC) 700 Quarterly orders 617 600 544 520 515 500 452 439 431 Q3 FY10/2024 371 368 439 400 353 305 orders 300 (-28.8% YoY) 8,798 orders 200 Cumulative: 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY10/2022 FY10/2023 FY10/2024 As of FY10
Slide 30: Daily Average Number of Contract Processing Orders
Daily Average Number of Contract Processing Orders Orders recovered from April to June. Orders fell in August due to the impact of summer holidays. 100 Clinics specializing in self-funded treatment are now focusing on acquiring high-unit-price ASC orders. 87.0 79.0 80.2 78.8 78.5 80 77.5 74.8 75.4 7
Slide 31: Monthly Contract Processing Orders for Blood-derived Products by Department
Monthly Contract Processing Orders for Blood-derived Products by Department (No. of Orders from hybrid orthopedics clinics have remained high since April. orders) Hybrid ratio (ratio of total orders from hybrid clinics) fell due to the impact of summer holidays in August. Cosmetics OB&GYN 2,500 Self
Slide 32: KPIs Comprising the No. of Blood-derived Product Processing Orders
KPIs Comprising the No. of Blood-derived Product Processing Orders Q4 FY2022 - Q4 FY2023 - FY10/2023 FY10/2024 Q3 FY2023 Q3 FY2024 Latest twelve Latest twelve Q3 Q4 Q1 Q2 Q3 months (LTM) months (LTM) Number of partner medical institutions (quarter-end) 14 16 16 16 14 14 14 Specializing in Active rat
Slide 33: Quarterly Results
Quarterly Results FY10/2022 FY10/2023 FY10/2024 [Millions of yen] Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales 820 876 1,175 1,400 1,059 1,111 1,235 1,104 1,173 1,054 1,113 Contract processing services 549 581 757 887 743 735 873 793 664 671 712 Consulting services 59 59 111 125 113 109 134 77 56 62 4
Slide 34: Other Updates
Other Updates
Slide 35: Acquisition of Medibase as a Wholly Owned Subsidiary through Share Purchase
Acquisition of Medibase as a Wholly Owned Subsidiary through Share Purchase Through the acquisition, we aim to improve services for partner medical institutions and generate synergies in the field of beauty related medical practices and utilize the expertise of Medibase in new business endeavors out
Slide 36: Notice from the Ministry of Health, Labour and Welfare Regarding Exosomes
Notice from the Ministry of Health, Labour and Welfare Regarding Exosomes and Related Matters We view the increased scrutiny by the MHLW as an opportunity to further develop the industry, and intend to continue complying with relevant guidelines and provide information in a timely manner • MHLW reco
Slide 37: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The materials and information provided in this presentation contain so-called "forward-looking statements." These statements are based on current expectations, forecasts, and assumptions accompanying risks, and they may involve uncertainties that
Slide 38: CellSource
CellSource