Nissha Co.ltd. · TSE:7915
Nissha Co.ltd — Investor Presentation (June 2021)
27 slides from Nissha Co.ltd's investor presentation, Jun 11, 2021
Slide 1: Medical Technologies Presentation
Medical Technologies Presentation June 11, 2021 Junya Suzuki President and CEO Sam Heleba Executive Vice President General Manager of Medical Technologies Business Unit Nissha Co., Ltd.
Slide 2: Contents
Contents ⚫Nissha’s market position and growth potential in the medical device market ⚫ Medical device CDMO ⚫Overview of Medical Technologies Business Unit ⚫Medical Technologies Business Unit: The 7th Medium-term Business Plan ©2021 Nissha Group 2
Slide 3: Vision 2030 for Sustainable Growth
Reported February 12, 2021 Vision 2030 for Sustainable Growth To become a company that realizes the enrichment of people’s lives by enhancing the value we provide in our priority markets as Medical, Mobility, and Environment, through the collective and synchronized diverse technologies and talents.
Slide 4: Contributing to unmet needs in the global medical device market
Contributing to unmet needs in the global medical device market Market Challenges Changes in medical systems ⚫ Care cycle ⚫ Aging society Focus on diagnosis and treatment → ⚫ Increase in acute and chronic diseases Coverage of entire care cycle ⚫ Shortage of healthcare professional ⚫ Place of medical
Slide 5: More opportunities for medical device CDMOs in the course of OEM challenges
More opportunities for medical device CDMOs*, in the course of the challenges of global OEMs Challenges of OEMs Competitiveness ⚫ Every possible technology must be incorporated for medical devices which bring more values for the medical system. ⚫ Active technology research to outside Operation optim
Slide 6: Medical device CDMO (Nissha's position in the Market)
Medical device CDMO (Nissha’s position in the Market) One-stop service provider, from design to manufacturing Medical device OEM（Global top） Develop Verificati Manufac Distributi Marketing Design ment on turing on / Sales Outsource Product concepts Products Develop Verificati Manufact Design ment on
Slide 7: Values from Nissha's medical device CDMO
Values from Nissha’s medical device CDMO ⚫ Provide best technologies and knowledges to enable product concepts into products ⚫ Design capabilities backed with outcomes in development, verification, and production processes ⚫ Production optimization Design Development Verification Production Value ad
Slide 8: Highly growing in medical device CDMO market
Highly growing in medical device CDMO market ⚫ High growth rate for medical device CDMO market ⚫ Approximately 2 trillion yen market (2020) for minimally invasive treatment and patient monitoring devices, as our serviceable segments ⚫ Main region: USA ＜CDMO market growth within ＜Global CDMO market b
Slide 9: Our Core Technologies contribute to better and more valuable functions of medical devices
Our Core Technologies contribute to better and more valuable functions of medical devices Minimally invasive surgical devices Mold Required functions Material ⚫ Minimalization manufacturing optimization ⚫ Operationality ⚫ Sensing ✔Patterning ✔Metal processing Core Technologies Laser ⚫ Metal processi
Slide 10: Accelerate technical innovation for future
Accelerate technical innovation for future Future Present Required functions Minimally invasive surgical devices ⚫ Minimalization ⚫ Operationality ⚫ Sensing Core technologies Robotics ⚫ Metal processing ⚫ Molding Minimally invasive surgical devices Present Required functions monitoring devices Clini
Slide 11: Track records in USA leads more opportunities outside of USA
Track records in USA leads more opportunities outside of USA Medical device market Business opportunities for Nissha ⚫ USA: The biggest and most ⚫ M&A of medical devices CDMO in advanced market US and market entry in 2016 ⚫ Many new types of medical ⚫ Product development with devices break out in US
Slide 12: Overview of Medical Technologies Business Unit (MTBU)
Overview of Medical Technologies Business Unit (MTBU) ©2021 Nissha Group 12
Slide 13: Management Team
Management Team Junya Suzuki Chairman of the Board, President and CEO SAM HELEBA Executive Vice President General Manager of Medical Technologies BU President & CEO | Nissha Medical Technologies MIKE MEMMINGER BRANDON HOFFMAN DR. MICAHAEL GAGLIO STEVE OKUMURA Senior Vice President Senior Vice Presid
Slide 14: MTBU's business territory is mainly North America under Nissha Medical Technologies
MTBU’s business territory is mainly North America under “Nissha Medical Technologies” Sales by business Contract Design and Manufacturing (CDMO) Net Sales 20.5 billion yen Direct Medical Surgical （2020 results） Consumables Business Media Medical Devices Business Media Contract Design and Manufacturi
Slide 15: Sales breakdown Medical Technologies Business Unit CDMO
Sales breakdown Medical Technologies Business Unit Our CDMO business provides products to growing markets Sales by products Sales by business Others 24.0 billion yen Clinical Minimally patient invasive Business Media 5.8 30% 60% surgical monitoring devices devices Direct Medical Breakdown Surgical 5
Slide 16: Focus on single-use products
Focus on single-use products; Minimally invasive surgical devices and clinical patient monitoring devices Minimally invasive surgical devices Clinical patient monitoring devices Interventional tools for laparoscopic surgery (ablation/sealing/closure) Continuous monitoring Laparoscope (visualization)
Slide 17: Partnership with global medical device manufacturers (OEMs)
Partnership with global medical device manufacturers (OEMs) Track records with 8 OEMs out of 10 top OEMs The OEM trademarks shown here belong to their respective OEMs and do not belong to the Company or its affiliates. We do not guarantee the relationship or relationship between the products and ser
Slide 18: Footprint in USA, a medically advanced country
Footprint in USA, a medically advanced country ⚫ The headquarters of the business unit is in the US (Buffalo, NY） ⚫ Joint development with proximity with global OEMs in USA Jointly development with OEMs in US Torbay, UK Buffalo, NY Norwalk, OH Sandpoint, ID KYOTO Wolcott, CT Cergy, FR Colorado Sprin
Slide 19: Expanding CDMO capabilities through M&A
Expanding CDMO capabilities through M&A ⚫ Vertical integration through Design/Development to Manufacturing ⚫ Increasing process capabilities and technologies Development & Manufacturing ⚫ Product lineup expansion Vertical Integration Design & Minimally invasive Development surgical devices Vertical
Slide 20: Nissha continues to strengthen position as a strategic partner for major OEMs
Nissha continues to strengthen position as a strategic partner for major OEMs ⚫ Vision ⚫ To continue partnering with the innovators of today, we assist our customers in the realization of value-based healthcare solutions leveraging our specialized capabilities as a global Contract Design and Manufac
Slide 21: Medical Technologies Business Unit The 7th Medium-term Business Plan
Medical Technologies Business Unit The 7th Medium-term Business Plan ©2021 Nissha Group 21
Slide 22: The 7th Mid-term Business Plan Target 2023
The 7th Mid-term Business Plan Target 2023: Net sales 35.0 billion yen Operation profit margin 15.0% 8.6% 35.0 (billions of JPY) ■Business Media, Net sales ■Direct Medical Surgical Consumables, Net sales ■Contract Design and 10.0% Manufacturing (CDMO), Net sales 8.6% ● Operating profit margin 20.5 4
Slide 23: Sales breakdown of Nissha's CDMO
Sales breakdown of Nissha’s CDMO (billions of JPY) 18.5 Organic 1.0 Japan ⚫ Recovery from COVID-19 1.0 ⚫ Ample new opportunities in Nissha’s CDMO 3.3 2020 M&A medical devices CDMO market CAGR +26% impact 2020 M&A impact ⚫ Net sales contribution through M&A (Norwalk factory) 9.2 ⚫ Production line tra
Slide 24: 2020 M&A impact
2020 M&A impact Manufacturing capability New medical applications Financial impact ⚫ Norwalk factory ⚫ Norwalk factory ⚫ Norwalk factory ⚫ Urology ⚫Organic growth with Olympus ⚫ Production line ⚫ Respiratory ⚫New opportunities with other transfer projects global OEMs from Olympus into ⚫ Gynecology ⚫
Slide 25: Drive CDMO in Japan
Drive CDMO in Japan CDMO opportunities expected in Japan Opportunities ⚫ Global OEMs to extend market ⚫ Assisting global OEM’s entry in reach outside US Japanese market ⚫ Japanese regulatory compliance ⚫ Track records in US leads opportunities in Japan Japanese medical devices market ⚫ Development s
Slide 26: Our CDMO growth drives profitability improvement
Our CDMO growth drives profitability improvement (billions of JPY) 35.0 （13%） ✔ ⚫ Sales growth through Sales breakdown by driving our CDMO segment enhances the profitability (EBITDA margin) Others improvement of Medical Profitability Technologies business unit. 16.5 Middle 20.5 ⚫ Our CDMO brings val
Slide 27: Forward-looking information notice
Among the information included in this presentation and provided at investor briefings and conferences, performance targets, plans, outlooks, strategies and other information that is not constituted of actual past facts, is information that has been judged reasonable by the managers of the Company b