J Frontier Co., Ltd. · TSE:2934
J Frontier — Q2 FY2023/5 Earnings Presentation
42 slides from J Frontier's earnings presentation, Jan 13, 2023
Slide 1: Presentation Material on Financial Results for Second Quarter of FY ending May 2023
Presentation Material on Financial Results for Second Quarter of FY ending May 2023 January 13, 2023 J Frontier Co., Ltd. Securities code: 2934
Slide 2: 2Q highlights
2Q highlights ◆ Net sales: 9,104 million yen (full year plan: 16,669 million yen; progress rate: 55%) ➢ Steady progress on securing new customers and repeat business from existing customers in D2C sales of medications in the Medical Care Sales business and D2C sales of health foods and cosmetics in
Slide 3: Contents
Contents Contents ◼ 01 Consolidated financial results in Second quarter of FY ending May 2023 ◼ 02 Major recent initiatives ◼ 03 Corporate overview/business overview ◼ 04 Appendix 2
Slide 4: Consolidated financial results in Second quarter of FY ending May 2023
Consolidated financial results ■ 01 in Second quarter of FY ending May 2023
Slide 5: The Group's Business Portfolio
The Group’s Business Portfolio Business segment Business Business details ◼ Telemedicine, online drug administration guidance, and medication delivery platform SOKUYAKU ◼ Marketing support and digital transformation (DX) support for medical institutions ◼ Support for medical human resources Medical
Slide 6: 2Q consolidated financial results
2Q consolidated financial results* ◼ Each business is making steady progress on full year plans (Million yen) Consolidated net sales (Million yen) Consolidated operating income 18,000 1,000 16,669 732 672 Progress: 500 368 15,000 55% 4,954 170 11,877 0 12,000 3,845 9,104 -500 -368 8,493 4,369 9,000
Slide 7: 2Q consolidated financial results: Details of each business
2Q consolidated financial results: Details of each business Group Consolidated Net sales: 9,104 million yen (progress rate: 55%) Operating income: -368 million yen Financial Results By Segment Medical Care Sales Net sales: 4,170 million yen (progress rate: 57%) Operating income: -412 million yen Bus
Slide 8: Summary of Consolidated Statements of Profit and Loss
Summary of Consolidated Statements of Profit and Loss (Million yen) FY2023/5 FY2023/5 Progress rate 2Q financial results annual plan vs. annual plan Net sales 9,104 16,669 55% Medical Care Sales Business 4,170 7,347 57% Healthcare Sales Business 2,020 4,369 46% Healthcare Marketing Business 2,914 4,
Slide 9: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Million yen) FY2023/5 FY2023/5 Assets 2Q end Liabilities and net assets 2Q end Current assets 5,387 Total liabilities 3,624 Cash and deposits 2,916 Current liabilities 2,219 Accounts receivable - trade, etc. 1,303 Accounts payable – trade 499 Inventories 870 Accou
Slide 10: Key Performance Indicators (KPI): SOKUYAKU
Medical Care Sales Business: SOKUYAKU Key Performance Indicators (KPI) ◼ Continual rapid growth due mainly to the effects of investment in advertising, including terrestrial TV commercials Numbers of partner hospitals and pharmacies (cumulative) Users (registered users) (Number) (Users) Hospitals Ph
Slide 11: Trends in sales: D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Trends in sales ◼ Progress on product development and sales with Group member companies CD and EC Studio is expected to generate further results of these alliances in 3Q and later D2C sales of medications: Net sales D2C sales of health f
Slide 12: Key Performance Indicators (KPI): D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Key Performance Indicators (KPI) ◼ Target figures are projected to be achieved thanks to steadily securing customers through both online (e.g., Web) and offline (e.g., TV shopping) channels (Subscribers) D2C KPI: Number of new subscriber
Slide 13: Key Performance Indicators (KPI): B2B
Healthcare Marketing Business: B2B Key Performance Indicators (KPI) ◼ Steady growth in number of trading partners through the deployment of integrated Group sales activities B2B KPI: Number of trading partner companies Progress※ (Companies) 64% 250 240 220 212 200 184 150 131 122 100 50 0 May 20 May
Slide 14: Major recent initiatives
■ 02 Major recent initiatives
Slide 15: Partnership with pharmacies and drugstores
Medical Care Sales Business: SOKUYAKU Partnership with pharmacies and drugstores ◼ Progress on adoption of SOKUYAKU in chain pharmacies and drugstores Company Number of stores*1 Release date My Life Co., Ltd. 43 stores September 01, 2022 Tsuruha Co., Ltd. 163 stores *2 September 05, 2022 Marine Grou
Slide 16: Addition of new way to receive prescription medications
Medical Care Sales Business: SOKUYAKU Addition of new way to receive prescription medications ◼ Prescription medications can be picked up at partner pharmacies across Japan following online drug administration guidance ◼ This improves user convenience in ways including free delivery to pharmacies, n
Slide 17: Growing same-day delivery service areas
Medical Care Sales Business: SOKUYAKU Growing same-day delivery service areas ◼ Growing same-day delivery service areas outside of the 23 wards of Tokyo and launching same-day delivery services for all of the Tokyo Metropolitan Area ◼ Further expansion planned, chiefly in ordinance-designated major
Slide 18: Launching services for local governments
Medical Care Sales Business: SOKUYAKU Launching services for local governments ◼ Launching new entrusted services for operation under contract of telemedicine centers run by local governments ◼ Contracts secured from multiple local governments, including that for the Osaka COVID-19 Telemedicine/Hous
Slide 19: Progress of alliance with Aurora Clinic
Medical Care Sales Business: SOKUYAKU Progress of alliance with Aurora Clinic ◼ Preparations are complete for joint operation of an online clinic for elective care with our business partner Aurora Clinic Plans call for expanding this project in the future Online clinic illustration ➢ Subjects: A wid
Slide 20: Conclusion of business alliance agreements
Medical Care Sales Business: SOKUYAKU Conclusion of business alliance agreements ◼ Accelerating digital transformation (DX) in healthcare by promoting cooperation with other firms I&H WellBe Group • Operates drugstores nationwide, including Hanshin Dispensing Pharmacy • Offers membership-based suppo
Slide 21: Corporate overview/business overview
■ 03 Corporate overview/business overview
Slide 22: Our Management Policies
Our Management Policies ◼ Developing and implementing a mission and plans consisting with our Management Philosophy ◼ Aiming, through our businesses, for solutions to the severe social issues Japan faces Management philosophy Purpose Good health for people and society Goals to achieve Mission ⚫ Keep
Slide 23: Our Future Business Model Goals
Our Future Business Model Goals Mission (goals to achieve) 1 Growth in medical costs and other social security expenses Keeping down medical costs through longer healthy lifespans 2 Shortage of medical human resources, widening healthcare Developing more efficient and effective structures through di
Slide 24: Changes to the Business Portfolio
Changes to the Business Portfolio ◼ We are investing in the healthcare tech field, centered on SOKUYAKU, to build our business model. We will implement large-scale changes to the business portfolio over the coming three years. Trends in sales composition ratio FY ending May 2025 (planned) SOKUYAKU D
Slide 25: Business/Service Overview
Business/Service Overview Medical Care Sales Business FY 22/5 sales composition Telemedicine and online drug administration guidance platform + D2C sales of medications, etc. ratio 42% D2C sales business for medications and quasi-drugs Telemedicine and online drug ◼ Traditional Chinese herbal medici
Slide 26: The Group's Business Portfolio (Repeated from Above)
The Group’s Business Portfolio (Repeated from Above) Business segment Business Business details ◼ Telemedicine, online drug administration guidance, and medication delivery platform SOKUYAKU ◼ Marketing support and digital transformation (DX) support for medical institutions ◼ Support for medical hu
Slide 27: SOKUYAKU Business
SOKUYAKU Business _\( JFRONTIER 26
Slide 28: The SOKUYAKU Outlook
The SOKUYAKU Outlook ◼ Realizing a society in which anybody can connect with doctors and pharmacists and receive medications any time, any place. • In spare moments during housecleaning and childcare Any time • During breaks at work • Late at night, early in the morning, on weekends • When traveling
Slide 29: Advantages of Online Migration of Healthcare
Advantages of Online Migration of Healthcare ◼ As outlined below, the advantages of online migration to related parties are closely related to social issues. ◼ Online migration is particularly important in Japan, which faces the issues of low birth rates and an aging society, as well as a chronic sh
Slide 30: Deregulation in Japan
Deregulation in Japan ◼ Deregulation of telemedicine and online drug administration guidance is accelerating in Japan recently. ◼ Further easing of related regulations is expected in the future as the government responds to social issues. [Medical-fee revisions] ➢ Strict restrictions applied, such a
Slide 31: SOKUYAKU service overview
SOKUYAKU service overview ◼ Developing a one-stop platform from telemedicine to online drug administration guidance and delivery of prescription medication Searching for hospitals Online drug Telemedicine administration Delivery of medication and pharmacies guidance ➢ Searching for and making appoin
Slide 32: SOKUYAKU's Strengths
SOKUYAKU's Strengths ◼ SOKUYAKU delivers solutions to impediments to promoting online migration of healthcare. ◼ This is demonstrated by rapid growth in numbers of partner hospitals and pharmacies and numbers of patients. Impediments to online migration SOKUYAKU's solutions 1 Heavy burden of compute
Slide 33: List of monetization models
List of monetization models Service Charge’s structure* 2C (for patients) Maximizing revenue through the promotion of telemedicine, online drug administration guidance, and medication delivery ⚫ Telemedicine usage charges ➢ 150 yen/use ⚫ Online drug administration guidance usage charges ➢ 150 yen/us
Slide 34: D2C Business
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Slide 35: Healthcare Sales: Brand lineup
Brand lineup ◼ Developing a D2C business that includes original medications, health foods, and cosmetics ◼ Also advancing diversification of the product lineup through M&A activities with companies that own product brands ➢ November 2019: Acquisition of traditional Chinese herbal medicines mail-orde
Slide 36: Cross-media selling power
Cross-media selling power ■Advertising production based on abilities in casting and earning consumers' sympathy, build up through Healthcare Marketing ■Reaching consumers across a wide range of ages through a cross-media approach using online and offline advertising ■Realizing effective costs per cu
Slide 37: A strict advertising review structure
A strict advertising review structure ◼ Laws concerning D2C advertising have become increasingly strict in recent years with the amendment of the Pharmaceutical and Medical Devices Act and other developments. ◼ Thanks to our traditional strict approach toa advertising review, we have been impacted o
Slide 38: B2B Business
B2B Business _\( JFRONTIER 37
Slide 39: Business Policies
Business Policies ◼ We will accelerate updating of information on industry trends and accumulation of expertise through branding that targets customers and through BPO services to demonstrate synergies with our other businesses Branding BPO services Casting, advertising TV shopping Web marketing Dir
Slide 40: Appendix
Jf JFRONTIER m 04 Appendix
Slide 41: Introduction to preferential system for shareholders
Introduction to preferential system for shareholders ◼ A new preferential system for shareholders was established in November 2021 to express gratitude for shareholders' continued support and make investments in our stock more attractive. (Number of shares held) Equivalent to Equivalent to 300 or mo
Slide 42: Good health for people and society
Good health for people and society