Olba Healthcare Holdings, Inc. · TSE:2689
Olba Healthcare — Q2 FY2025 Earnings Presentation
53 slides from Olba Healthcare's earnings presentation, February 2025
Slide 1: Financial Results Report 2Q FY 06/2025
Financial Results Report 2Q FY 06/2025 OLBA HEALTHCARE HOLDINGS, INC. (formerly KAWANISHI HOLDINGS INC.) This presentation includes machine translation. Please consider that some content may not be perfectly accurate or contextually appropriate. (Securities code: 2689)
Slide 2: Contents
Contents ◆ Corporate Philosophy ◆ Summary of FY2025 and 2Q ◆ FY2025 FY June 2025 Performance Forecasts and Basic Policy for Distribution ◆ Outline of the Medium-Term Management Plan ◆ Reference Materials
Slide 3: Corporate Philosophy
Corporate Philosophy Dp OLBA HEALTHCARE
Slide 4: Corporate Philosophy and Significance of Presence (purpose)
Corporate Philosophy and Significance of Presence (purpose) Through our business, Contributing to the development of medicine, medical care, and nursing care,Contribute to the health and longevity of the national 4 ©OLBA HEALTHCARE HOLDINGS, Inc.
Slide 5: Overview of Results for 2nd quarter FY6/25
FY June 2025 Overview of Results for 2nd quarter FY6/25
Slide 6: Performance Topics [2Q]
Performance Topics [2Q] ■Global inflation and depreciation of the yen ・Prices of medical devices, many of which are overseas products, continue to trend upward ・Implemented measures to expand sales activities and improve purchasing ・Negotiations to pass on the increase to sales prices are conducted
Slide 7: Consolidated Financial Results for the Second Quarter of Fiscal 2025
Consolidated Financial Results for the Second Quarter of Fiscal 2025 [2Q] Record high net sales, gross profit, and interim net income attributable to owners of the parent Comparison Millions of yen YoY with budget Net sales 60,627 △0.2% +5.5% Gross profit 6,819 △1.5% +6.0% Gross profit margin 11.25%
Slide 8: Business Segment Results for the Second Quarter of Fiscal 25
Business Segment Results for the Second Quarter of Fiscal 2025 Sales Mix [FY June 2025 2Q] Net Sales (Operating Income) ※Sales include inter-segment sales Medical equipment SPD Nursing care products 57.2 billion yen Medical equipment business (710 million yen) Total partners in the medical field 4.6
Slide 9: Medical equipment business
Medical equipment business Total partners in the medical field Medical equipment [93.2%] Comparison Millions of yen Actual YoY change with budget ※1 Net sales Net sales 57,294 +0.1% +5.5% Compositi on ratio Operating 715 △0.1% +6.9% income Millions of yen Sales Results ※2 YoY Kawanishi 38,625 +6.2%
Slide 10: Medical Equipment Business Consumables
Medical Equipment Business Consumables Sales ¥52 billion up 7.6% year on year Millions of yen Product Classification Net sales YoY Points of sub-segments Surgical consumables 25,970 +5.7% Internal medicine +15.6%, digestive endoscopes +9.1%, surgical +6.6% Artificial joint +12.1%, trauma, sports, an
Slide 11: Medical Equipment Business Equipment
Medical Equipment Business Equipment Sales ¥6.5 billion down 5.8% year on year Points of Equipment Sales ◆Increase in demand due to subsidies such as corona paused ◆Small number of large-scale projects, strengthen discovery of small-scale equipment projects ◆Sales of automated payment machines for c
Slide 12: SPD business
HOSNET・Japan, Inc. SPD business Medical products distribution specialist Comparison Millions of yen Actual YoY with budget Net sales ※ 2,842 +1.7% +9.8% Goods Information Purchasing management management management Operating 55 +2.6% +5.3% income ※Net sales (including changes from budget and changes
Slide 13: Nursing Care Products Business
Nursing Care Products Business Life Care Co., Ltd. Total support for nursing care products Comparison Millions of yen Actual YoY with budget Net sales ※ 1,369 +0.1% +4.0% Rental Sale Renovation Operating 105 △3.3% +3.4% income ※Net sales (including changes from budget and changes from the previous f
Slide 14: FY2025 results forecast and basic policy on dividends
From the FY2025 results forecast Basic policy on dividends
Slide 15: Consolidated Financial Forecasts for the Fiscal Year Ending June 2025
Consolidated Financial Forecasts for the Fiscal Year Ending June 2025 Sales, gross profit, operating profit, and recurring profit are expected to be record highs (Millions of yen) Forecast 2024/6 Result Change Net sales 123,726 118,564 +4.4% Gross profit 14,446 13,600 +6.2% Gross profit margin 11.68
Slide 16: Factors behind Changes in Operating Income for FY June 2025
Factors behind Changes in Operating Income for the Fiscal Year Ended June 2025 [Major Factors of Changes] (Millions of yen) ・Expected increase in sales in the Kansai area 3,200 ・SG&A expenses increased due to continued investment in Medical equipment business human resources and systems. 3,000 42 63
Slide 17: Consolidated net sales: Record forecast
[Consolidated net sales] Record forecast FY June 2025 Forecast of ¥123.7 billion Fifth consecutive year of sales growth and record highs (+4.4% YoY) (Millions of yen) 160,000 123,726 118,564 120,000 107,959 110,472 102,072 80,000 60,627 57,466 53,030 53,718 49,861 40,000 0 Half-year Full year Half-y
Slide 18: Consolidated Operating Profit: Record forecast
[Consolidated Operating Profit] Record forecast Forecast for FY6/2025: ¥2.27 billion Fifth consecutive year of profit growth and record highs (Up 1.9% year on year) (Millions of yen) 2,500 2,226 2,270 2,151 2,073 2,000 1,540 1,500 1,000 854 808 786 746 620 500 0 Half-year Full year Half-year Full ye
Slide 19: Basic policy on dividends
Basic policy on dividends ① Aiming to increase or maintain dividends ② We will endeavor to retain internal reserves for growth investments. FY6/25 forecast: JPY80 Dividend per share [Dividends for the most recent 10 years] Dividend on equity (DOE) ratio Dividend yield 5.0% 4.4% 4.5% DOE 4.0% 4.0% 80
Slide 20: Financial indicators we emphasize
Financial indicators we emphasize ✓ Net sales ✓ Operating income Net income Profitability ✓ ROE (Return on Equity) = × 100% improvement Shareholders' equity Aiming to improve PBR by improving profitability, promoting new businesses, etc. Market capitalization Net income PBR = PER x ROE = × Net incom
Slide 21: Analysis of Capital Cost and Capital Profitability
Analysis of Capital Cost and Capital Profitability ROE・Cost of equity 20.0% ・Equity spread (%) 18.0% 17.8% (Cost of ROE-equity) 16.0% ⇒ Approx. 6% to 7% 13.8% 14.0% 14.6% ・For the cost of capital on an ongoing basis 12.0% 12.8% Achieve higher profitability on capital 10.0% ・Five-year historical mean
Slide 22: Initiatives to Improve PBR
Initiatives to Improve PBR Net profit to sales Improve productivity by streamlining through DX, etc. (1.27%) Promoting new high-value-added businesses ROE Asset turnover Proper debt collection and inventory management (13.8%) (2.8 turns) Enhancement of shareholders' equity in line with Financial Lev
Slide 23: Outline of the Medium-Term Management Plan
Outline of the Medium-Term Management Plan
Slide 24: Domestic market size of medical devices
Domestic market size of medical devices Stable market growth despite policies to curb medical costs In fiscal 2024, Forecast of ¥3.794 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 25: Medium-term management plan: key points FY2025-2027
Medium-term management plan (FY June 2027: ¥135 billion in sales, ¥2.7 billion in operating profit) Key Points of the FY2025/6-2027/6 Medium-Term Management Plan Productivity improvement Strengthen and streamline operations OLBA-DX CRM/SFA/BI construction Sophistication of Develop new regions Enhanc
Slide 26: Medium-Term Management Plan: Key Points of Initiatives
Medium-Term Management Plan: Key Points of Initiatives ➢ OLBA-DX : Utilization sales quality by streamlining operations and utilizing ICT tools Working to improve employee IT skills ➢ Improve productivity: Strengthen current operations and innovate logistics (construct new logistics center) Aiming t
Slide 27: Reforming by OLBA-DX DX Promotion Office
OLBA-DX Reforming by OLBA-DX DX Promotion Office Measures already in operation and in progress ➢ Creating new value ・Developing and operating Web order apps ➢ Sales support and operational efficiency ・Sales Assistance through Unique Electronic Catalog ・Business card management system in operation ・E
Slide 28: Development of OLBA-DX DX human resources
OLBA-DX Development of OLBA-DX DX human resources Study Group on Utilization of No-Code Tools Study sessions on utilization of generated AI, etc. A study session was held in Okayama City in November 2024. To be implemented as appropriate in the future Group work and other activities conducted by emp
Slide 29: Logistics innovation
Logistics innovation Logistics warehouse construction ● 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 introduction to the entire group Reinforcement in To reinforce quality Strea
Slide 30: New Businesses ① Strong sales of Temasac
To foster new businessses New Businesses ① Strong sales of Temasac Expansion of the Burkmed business Temasac series of automated settlement machines for clinics ●Introduction in the July-December quarter of 2024 : 165 units (YoY +65 units) ●Cumulative number of vehicles introduced : 664 units (As of
Slide 31: New Businesses ② Established Orcido Co., Ltd.
(January 6, 2025) To foster new businessses New Businesses ② Established Orcido Co., Ltd. Minimize environmental impact Olstech Corp. Started sales of OLSTECH, a low-thermal decomposition-type up-cycle unit OLSTECH| Three characteristics 1) Significant reductions in CO2 and dioxin emissions 2) Organ
Slide 32: New businesses ③ Babyeets launched
Babies New businesses ③ "Babyeets®" launched To foster new businessses Babies Newborn Live Distribution & Memorial Movie Creation Service "Babyeets®" Babyeets | Three characteristics 01 Easy access to read-only cards 02 Real-time video viewing from remote areas 03 Provision of memorial video after h
Slide 33: Taiolba Healthcare Business ASEAN business development
To foster new businessses Taiolba Healthcare Business ASEAN business development [Commemorative ceremony for the establishment of Bangkok on January 26, 2023] Reasons for expanding into Thailand ・Economic and geographic hub-function of ASEAN region ・Expect rapid aging in the future ・Thailand governm
Slide 34: ESG Initiatives
ESG Initiatives Sustainability Environment (environmental) Started sales of OLSTECH, a low-thermal decomposition-type up-cycle unit Social (Social) [Human capital investment and work style reform] Increase of male employees taking childcare leave by 4-5% on regular pay raise + bears Efforts to promo
Slide 35: Human Resources Development as a Source of Growth
Human Resources Development as a Source of Growth Sustainability ◼ Systematic human resource development and acquisition of expertise Building expertise and management capabilities Gradual expansion of e-Learning courses OLBA Academy, a 30-year-old internal training system We provide opportunities f
Slide 36: Our strengths and utilization and weaknesses and countermeasures
Our strengths and utilization and weaknesses and countermeasures Strengths and Utilization ➢ No.1 of shares in Chugoku-Shikoku region (based on trust from customers and suppliers) ⇒ New investments can be implemented by securing stable profits ➢ To invest in human resource development and DX, which
Slide 37: SPD business
HOSNET・Japan, Inc. SPD business ● Acquisition of new customers and improvement of revenue ・Develop customers in the Chugoku-Shikoku area ・Proposals for hospital management support, such as purchasing price reductions and insurance claim leakage checks ● Wide-area sales of the Medilia inventory manag
Slide 38: Nursing Care Products Business
Nursing Care Products Business Life Care Co., Ltd. ● Increase market share in existing areas ● In-house construction of residential remodeling for nursing care ・Strengthen customer service by enhancing follow-up system ・Cultivating new users ・Promote sales activities using ICT ・Providing Safety and
Slide 39: Reference Materials
Reference Materials Dp OLBA HEALTHCARE
Slide 40: Corporate Profile
Corporate Profile Trade name Olbas Healthcare Holding Inc (Former name: Kawanishi Holdings Co., Ltd.) Head Office 1-3, Shimo-Ishii 1-chome, Kita-ku, Okayama Kawanishi Founded in May 1921 Berkmed Corp. Established October 1967. Kawanishi Corporation Representative Director and President Yohei Maeshim
Slide 41: 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 42: 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 medical providers with the benefits of innovative new fea
Slide 43: Consolidated Balance Chart (2Q, 2025)
Consolidated Balance Chart (2Q, 2025) Millions of yen Assets Amount Change Liabilities and Net Assets Amount Change Cash and deposits 2,643 △87 Trade payables 28,416 2,216 Trade receivables 27,824 1,711 Short-term borrowings 2,700 2,100 Commodities 7,165 1,222 Other 1,805 △1,110 Other 625 △175 Total
Slide 44: Consolidated Statements of Cash Flows (FY2025 2Q)
Consolidated Statements of Cash Flows (FY2025 2Q) FY June 2024 FY June 2025 Millions of yen 2nd quarter 2nd quarter Income before income taxes 745 815 Depreciation and amortization 259 289 Decrease (increase) in notes and accounts receivable- △1,629 △1,711 trade (increase in △) Decrease (increase) i
Slide 45: Consolidated Statements of Cash Flows (FY2025 2Q)
Consolidated Statements of Cash Flows (FY2025 2Q) FYE June 2024 FYE June 2025 Millions of yen 2nd quarter 2nd quarter Net increase (decrease) in short-term borrowings (△) 1,800 2,100 Repayments of long-term debt △55 - Purchase of treasury stock △221 △135 Proceeds from sales of treasury stock 1 139 D
Slide 46: Consolidated Financial Data ①
Consolidated Financial Data ① Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Millions of Net sales yen 97,872 102,072 107,959 110,472 118,564 Millions of Operating income yen 927 1,540 2,073 2,151 2,226 Millions of Ordinary income yen 905 1,542 2,119 2,158 2,244 Profit attributable to owners of parent
Slide 47: Consolidated Financial Data ②
Consolidated Financial Data ② Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Millions of Sales CF yen 862 3,126 2,420 △659 2,084 Millions of Investment CF yen △496 △630 △211 △306 △673 Millions of Finance CF yen 439 △2,262 △1,169 175 △1,089 Millions of Cash and cash equivalents yen 1,877 2,110 3,149 2,
Slide 48: Consolidated results for the fiscal year ended June 2024
(Previous fiscal year) Consolidated results for the fiscal year ended June 2024 Record highs for net sales, gross profit, operating income, and ordinary income Comparison with Millions of yen YoY change budget Net sales 118,564 +0.2% +7.3% Gross profit 13,600 △2.0% +5.0% Gross profit margin 11.47% S
Slide 49: Summary of results for the year ended June 2024
(Previous year) Summary of results for the year ended June 2024 ※New highs for net sales Net sales ROE Dividend yield 118.5 billion yen 13.8% 4.0% (+7.35% YoY) (5-year average of 12.7%) (*As of June 30, 2024) ※New highs for net sales Operating income PBR DOE Dividends on Equity 2.22 billion yen 1.05
Slide 50: CSR Initiatives Contributing to Social Rooted in Local Communities
CSR Initiatives Contributing to Social Rooted in Local Communities Working together with local residents to create a future conducive to regional development and revitalization Faziano Okayama Okayama TEC PLANTER Club sponsor Partner companies Established in 2006 as Okayama Prefecture's first profes
Slide 51: Nippon Medical Manufacturing Commons MINC Association
Nippon Medical Manufacturing Commons MINC Association "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 Doctors, manufacturers, the Ministry of Economy, Trade a
Slide 52: 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 Lists] Tokyo Stock Exchange (Standard Market) Securities code: 2689 [Number of shares per unit] 100 shares [Contact] OLBA H
Slide 53: ・Although the datum provided in this document is intended to be used with all
・Although the datum provided in this document is intended to be used with all possible care, the accuracy and completeness of such information is not guaranteed. ・Opinions and forecasts contained in the data are our forecasts based on information available at the time of preparation of the materials
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