Sbc Medical Group Holdings Incorporated · NASDAQ:SBC
Sbc Medical — Investor Presentation (September 2024)
32 slides from Sbc Medical's investor presentation, Sep 20, 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Disclaimer
Disclaimer This document contains forward - looking statements . In addition, from time to time, we or our representatives may make forward - looking statements orally or in writing . We base these forward - looking statements on our expectations and projections about future events, which we derive
Slide 3: Slide 3
Slide 4: Table of Contents
Table of Contents 4 I. At a Glance II. Investment Highlights Appendix P5 P9 P24
Slide 5: I. At a Glance
Medical Group Holdings, Ine. I. Ata Glance SBC Medical Group Holdings, Inc.
Slide 6: Company Overview
Company Overview • SBC Medical Group Holdings (SBC) provides comprehensive consulting and management services to the medical corporations and their clinics • We have the largest network of franchised clinics in Japan and a leading position in the aesthetic medical industry Company Overview and Key F
Slide 7: Group Structure and Business Model
Group Structure and Business Model SBC Medical Group Co., Ltd. SBC Medical Group Holdings, Inc. Franchise Clinics in Japan (164* in total) Franchise fee 100% Total Revenue: US$1.1bn* in FY2023 Japan • SBC provides comprehensive consulting and management services to the medical corporations and their
Slide 8: Diverse Range of Our Franchisee Clinics
Hair - Removal (26 clinics) Men’s Hair - Removal (22 clinics) Other Medical Specialties (7 clinics) Diverse Range of Our Franchisee Clinics • Our franchise network is diverse and covers various medical specialties beyond aesthetics • The addition of Rize Clinic and Gorilla Clinic in 2023 significant
Slide 9: II. Investment Highlights
Medical Group Holdings, Inc. Il. Investment Highlights SBC Medical Group Holdings, Inc.
Slide 10: Investment Highlights
Leading Position in Japan's Growing Aesthetic Medical Market with the Largest Clinic Network Proven Profitability and High Margins Based on Recuring Fee Income Strong Balance Sheet with Ample Leverage Capacity for Growth Additional High Growth Potential in Japan through Franchising Clinics and Relat
Slide 11: Leading Position in Japan's Growing Aesthetic Medical Market
Leading Position in Japan's Growing Aesthetic Medical Market • Our Franchisees have been steadily expanding their sales and customer base • They have been driving the expansion of the aesthetic medical market in Japan Revenue* and Customer Growth of Franchisees (mn US$) 459 1,091 1.8 3.9 0 1 2 3 4 5
Slide 12: Market Share in Japanese Aesthetic Medical Market
Market Share in Japanese Aesthetic Medical Market 12 48% 21% 31% Aesthetic surgery and dermatology # of Clinics: 537 SBC Source: Yano Research Institute (2024) Specializing in hair removal # of Clinics: 221 * Clinic groups with more than 5 locations Others (each % share is less than 5%) 1 12% 10% 11
Slide 13: Untapped Potential in Japan's Aesthetic Medical Market
Current Core Market 10 - 30’s Females (Penetration Rate% 1 ) 21% 1 1 8 1 . . 0 2 m m n n # of Population Develops dermatology - focused clinics under the SBC brand Untapped Potential in Japan's Aesthetic Medical Market • Aesthetic medicine penetration among core customers (women 10 - 30’s) is rising
Slide 14: SBC's Key Differentiators
SBC's Key Differentiators • Our targeted solutions for mitigating doctors’ major pain points give us a distinct competitive advantage in the clinic franchise market Clinic Operation Service Quality Talent Acquisition - Our comprehensive clinic operating system empowers Franchisees with efficient too
Slide 15: Business Flow and Our One-Stop Service
Joining Open a clinic Procurement Customer Acquisition Treatment Administration • Payment services • Accounting & tax • Intellectual property Doctors’ Voice • Very strong training system is highly appreciated • Quality of clinic staff is very competitive • SBC provides a one - stop solution for all
Slide 16: Advanced Digitized Integrated System
Reservation Contract Medical Record Payment Procurement Initial Counseling All - in - one System Digitalization of all relevant procedures at clinics Staff Management Customer Support Reception Data/Information Sharing Accounting • Enhance customer experience • Enable clinic staff to focus on custom
Slide 17: Revenue Growth Driven by Predictable and Recurring Fees
Revenue Growth Driven by Predictable and Recurring Fees Procurement Services Management Services Royalty Income Rental Services ● Purchasing advertising services ● Purchasing medical materials ● Marketing solution ● Administrative services (accounting, HR, IT, facility, clinic operation) ● Company’s
Slide 18: Strong Revenue Growth and High Profitability
Revenue (mn US$, % of Growth YoY) Gross Profit (mn US$, % of Growth YoY) EBITDA (mn US$, % of Margin) Net Income attributable to the company (mn US$, % of Margin) 2 Strong Revenue Growth and Hight profitability 6 0 30 60 FY2022 FY2023 FY2024 H1 * Retirement compensation expense, insurance fees 20% 3
Slide 19: Bigger Markets Await SBC
Source: Fortune Business Insight, Yano Research Institute Ltd., WHO Global Health Expenditure Database, Ministry of Health, Labor and Welfare of Japan 3 Bigger Markets Awaits SBC • SBC has the potential to global aesthetic medical markets. Also has the potential to expand its franchise network and r
Slide 20: Expansion into Adjacent Fields and B2B Partnerships
Expansion into Adjacent Fields and B2B Partnerships 3 Fertility Treatment Hair Loss Treatment Online Clinic Comprehensive Aesthetic Treatment Potential for B2B Partnership • Revenue YoY Growth: • Gross Profit Margin: 40%+ 71%+ • Operating Profit Margin: 26%+ (FY2023) • SBC aims to leverage its exper
Slide 21: Strong Balance Sheet with Ample Leverage Capacity for Growth
Strong Balance Sheet with Ample Leverage Capacity for Growth Capital Management Policy 4 US$103mn Cash Key Balance Sheet Figures (as of June 2024) Reserve adequate liquidity and robust capital base • Maintain an adequate liquidity position to support stable execution of SBC’s business operation • Re
Slide 22: Listing on NASDAQ Transform SBC into Global Company
Listing on NASDAQ Transform SBC into Global Company Expand SBC’s brand recognition as a global brand • Improve both SBC’s corporate brand value and perceptions in aesthetic medical industry • Expand SBC’s brand value from Japan local one to Global one Access to the global capital market • Gain acces
Slide 23: Visionary Leadership and Experienced Management Team
Visionary Leadership and Experienced Management Team 5 SBC Medical Group Co., Ltd. SBC Medical Group Holdings, Inc. 100% Japan Yuya Yoshida SBCMG Co., Ltd Director Director, COO Director (Chairman), CEO Dr. Yoshiyuki Aikawa SBCMGH Inc. Director / CEO Fumitoshi Fujiwara MEDIROM Healthcare Technologie
Slide 24: Appendix
Medical Group Holdings, Ine. Appendix SBC Medical Group Holdings, Inc.
Slide 25: Financial Summary
Financial Summary 25 Income Statement Balance Sheet FY24 FY23 FY22 (mn US$) % YoY H1 % YoY 129% 107 111% 193 174 Total revenue 177% 29 171% 42 24 Royalty income 104% 26 98% 53 54 Procurement services 105% 32 108% 72 67 Management services 211% 7 35% 7 20 Rental services 123% 28 95% 56 59 Cost of Rev
Slide 26: Our Philosophy
Our Philosophy • Our purpose is to improve the well - being of people around the world with the latest medical innovations and achieve the ultimate win - win for all Dr. Yoshiyuki Aikawa Founder, Director (Chairman) & Chief Executive Officer Through 26
Slide 27: Our Vision
Our Vision 2025 Be the aesthetic medical group with the most customers in Japan • To achieve further growth in Japan and overseas, we will expand our clinic network • By continuing to focus on the research and development of new medical technologies, medical devices, and cosmetics, we aim to increas
Slide 28: Directors
Directors Director (Chairman), CEO Yoshiyuki Aikawa SBCMGH Inc. - Director (Chairman) - CEO SBCMG Co., Ltd - Director Director, COO Yuya Yoshida SBCMGH Inc. - Director - COO SBCMG Co., Ltd - CFO From January 2016 to June 2023, worked in Corporate Development (Global Head and Director of Corporate De
Slide 29: Independent Directors
Independent Directors Member of Corporate Governance and Nominating Com., Compensation Com. and Audit Com. Ken Edahiro BizReach, Inc. - Executive Officer - CSMO After graduating from Hitotsubashi University, Faculty of Economics, he joined Dentsu Inc. in 2004. In 2012, joined gloops Inc. and served
Slide 30: Independent Directors
Independent Directors Dr. Mike Sayama is an independent director of Pono. He currently serves as Abbot of Chozen - ji International Zen Temple in Hawaii. In his professional career, Dr. Sayama was the founding Executive Director of Community First from July 2016 to January 2021, responsible for oper
Slide 31: Key Features of Japan's Medical Care Act
Key Features of Japan's Medical Care Act Notable Points of Medical Care Act in Japan The law aims to protect patients' interests and ensure safe, high - quality medical care by guiding patient choice, managing healthcare facilities, and promoting inter - facility coordination for national health mai
Slide 32: Thank you
Thank you SBC Medical Group Holdings / ir@sbc - holdings.com ICR, LLC / US Investor Contact / +1 (646) 277 1200 /William.Zima@icrinc.com
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