Nagaileben Co., Ltd. · TSE:7447

Nagaileben — FY2020 Earnings Presentation

50 slides from Nagaileben's earnings presentation, October 2020

  1. Slide 1: Analyst Guide October 2020

    Our Message to Medical Workers We sincerely would like to express deep appreciation for your devoted works on the frontiers against COVID-19. (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) We will never forget your courage. ANALYST GUIDE October 2020 <Contact for information on t

  2. Slide 2: Summary Overview of FY2020

    Summary Overview of FY2020 1 Sales & Income Net Sales: ¥ 17,066 m (y/y Change+1.7%) Operating Income: ¥4,937 m (y/y Change+0.4%) 2 COVID-19 Impact Our functions of production, sales and distribution are in operation as usual. Some deliveries of our products were delayed. Sales of infection preventio

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3p Ⅱ Market Environment ・・ ・・・ 8p Ⅲ Financial Review of FY2020 ・・13p and Forecast for FY2021 Ⅳ Management Goals ・・・・・・ 26p Ⅴ Rewarding shareholder- ・・・ 29p focused policies 2 © Nagaileben Co.,Ltd.

  4. Slide 4: About Nagaileben

    Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.

  5. Slide 5: Outline: Competitive position and stable growing market

    Outline Over 100 years in business (Established in 1915) 1 Competitive position in medical clothing market -Approximately 60% market share -Integrated Production System in domestic medical clothing Planning, Manufacturing and Marketing - The number of shipments is -Competitive product such as extens

  6. Slide 6: Outline: High profitability, strong balance sheet, shareholder policies

    Outline 3 Highly profitability Strong balance sheet - Realization of high profitability (%) 50 売上総利益率 Change の推移 of Gross Profit to Sales 45.8% (2020) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 45.8% 40 28.6% (1990) 45.3% (2010) -Capital-to-asset ratio 89.3% 35 (1980) 39.7% -

  7. Slide 7: CSR/ESG Our Efforts based on "Let us help the human life"

    CSR/ESG Our Efforts based on “Let us help the human life” What’s NEW Social Development of Infection Prevention Products Cheering message Responsibility Donation 40,000 reusable masks and 10,000 to medical workers isolation gowns to Medical Institutions Support for Women Respect for Customers Region

  8. Slide 8: CSR/ESG Our Concept for SDGs

    CSR/ESG Our Concept for SDGs Social Responsibility as Corporate Citizen “Let us help the human Environmental Efforts Return to Society life” -“COMPELPACK” -Support medical field through our Enables hospital to reduce waste We give back to society on the products. and be more economical. basis of our

  9. Slide 9: Market Environment

    II Market Environment 8 © Nagaileben Co.,Ltd.

  10. Slide 10: Topics: Market condition is confusion

    Topics Market condition is confusion -Medical treatment and nursing care fees were revised due to raising consumption tax rate. (effective Oct. 2019). Medical treatment fees Total -0.07%: Service: +0.41%,Drug price: -0.47% -Medical treatment fees was revised (effective April 2020). Medical treatment

  11. Slide 11: Environment: Revisions to medical treatment and care service fees

    Environment Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 +1.9 2 +1.5 +1.6 +1.4 +1.2 +0.7 1 +0.4 +0.6 +0.5 +0.6+0.5 +0.4+0.6 +0.4 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 0.5 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.0 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲ 1.7 ▲ 1

  12. Slide 12: Environment: The number of Nursing Staff and Care workers

    Environment The number of Nursing Staff and Care workers (10,000 persons) 250 Nursing Staff Care Workers 200 150 100 183 177 166 187 160 163 183 154 147 163 167 143 171 140 157 129 133 150 151 123 137 143 123 117 131 114 136 50 119 127 96 120 109 72 85 55 64 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

  13. Slide 13: Environment: Supply and Estimated Future Need

    Environment Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers forecast(maximum) 245 250 forecast(minimum) Actual 202 200 150 245 100 188 187 167 50 0 2017 2025 2017 2025 Source: The committee about supply and estimated future need of Actual record: Research of Long-Ter

  14. Slide 14: Financial Review of FY2020 and Forecast for FY2021

    II Financial Review of FY2020 and Forecast for FY2021 13 © Nagaileben Co.,Ltd.

  15. Slide 15: Policy Management Tasks and Status

    Policy Management Tasks and Status Capture clusters of needs with value-added strategy in the healthcare wear market Increase share of peripheral business in products for patients and surgery wear market Marketing strategy to increase sales Cultivate overseas markets by expanding our business model

  16. Slide 16: Topics: Our Status of Reaction to COVID-19

    Topics Our Status of Reaction to COIVD-19 Our functions of production, sales and distribution are in operation as usual. - We developed reusable prevention products for infectious disease. Development -Utilization of our know-how in Surgery wear. - Products, isolation gowns and mask, launched. -The

  17. Slide 17: Consolidated Results: Financial Review of FY2020 and Forecast for FY2021

    Consolidated Results Financial Review of FY2020 and Forecast for FY2021 FY2020 FY2021 (millions of yen,%) Full(Results) % Change Full(Forecast) % Change Net sales 17,066 +1.7 17,300 +1.4 Gross profit 7,810 -0.4 8,010 +2.6 Sales, general, and administrative expenses 2,872 -1.7 2,941 +2.4 Operating in

  18. Slide 18: Consolidated Results: Gross profit factors

    Consolidated Results Financial Review of FY2020 and Forecast for FY2021 FY2020 FY2021 (millions of yen,%) Full(Results) % Change Full(Forecast) % Change Net sales 17,066 +1.7 17,300 +1.4 Gross profit 7,810 -0.4 8,010 +2.6 Sales, general, and administrative expenses 2,872 -1.7 2,941 +2.4 Operating in

  19. Slide 19: Consolidated Results: SG&A and capital expenditure

    Consolidated Results Financial Review of FY2020 and Forecast for FY2021 FY2020 FY2021 (millions of yen,%) Full(Results) % Change Full(Forecast) % Change Net sales 17,066 +1.7 17,300 +1.4 Gross profit 7,810 -0.4 8,010 +2.6 Sales, general, and administrative expenses 2,872 -1.7 2,941 +2.4 Operating in

  20. Slide 20: Topics: Supply to Ministry of Health, Labour and Welfare

    Topics Supply To Ministry of Health, Labour and Welfare Impact on Sales 1 FY2020-4Q: ¥945m FY2021-1Q: ¥315m FY2020(Results) FY2021(Forecast) First-half ３Q ４Q First-half Second-half Net sales -2.5% -7.8% +23.5% +8.6% -3.7% Year-on-year change Excluding above factor － － -1.0% +4.1% +6.3% 2 Impact on P

  21. Slide 21: Financial Review of FY2020 (Balance Sheet)

    Consolidated Results Financial Review of FY2020(Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 25,646 +489 +1.9 Notes and accounts receivable (including electronically recorded 5,573 +233 +4.4 Cash and

  22. Slide 22: Segments by Item

    Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Infection prevention 21 © Nagaileben Co.,Ltd.

  23. Slide 23: Segment Sales by Item

    Segment Sales by Item y/y change FY2020(Results) FY2021E Composition Doctors' Utility (%) First-half ３Q ４Q Full Full 14.5% 2.3% Patient Total sales -2.5 -7.8 +23.5 +1.7 +1.4 12.1% Healthcare wear -3.8 -14.6 -4.2 -7.6 +6.3 Surgery Doctors' wear -2.1 -13.8 -6.2 -7.4 +5.8 10.1% Utility wear -13.9 -5.0

  24. Slide 24: Segment Sales by Region

    Segment Sales by Region Composition Central West y/y change Japan FY2020(Results) FY2021E Japan 10.1% (%) First-half ３Q ４Q Full Full 33.2% Total sales -2.5 -7.8 +23.5 +1.7 +1.4 East Japan -1.2 -6.7 -5.8 -4.1 +4.5 Central Japan +2.0 -8.6 +33.7 +4.0 +4.0 Overseas West Japan -6.2 -9.2 -2.0 -6.2 +6.9 1.

  25. Slide 25: Business Plan: Product Strategy

    Business Plan Product Strategy y/y change FY2020 FY2021E (%) Sales by Product Total sales +1.7 +1.4 High-End (¥ million) products -15.9 +9.1 20,000 High Value-Added 18,000 MHLW products -3.1 +8.5 16,000 Value-Added 14,000 High-End products -2.2 +1.5 12,000 High Value- Mass products -7.5 -7.4 10,000

  26. Slide 26: Business Plan: Production Strategy

    Business Plan Production Strategy Composition Production (%) FY2020 FY2021E (Non-Consolidated) Domestic (¥ million) (%) production 49.2 48.3 10,000 55 Overseas Purchased production 49.5 50.5 products 7,500 50 Purchased Overseas products 1.3 1.2 production 5,000 45 Domestic production Ratio of overse

  27. Slide 27: Management Goals

    IV Management Goals 26 © Nagaileben Co.,Ltd.

  28. Slide 28: Strategy: Business Direction

    Strategy Business Direction Sales Strategy -Increase peripheral business in products for Patients and Surgery. -Gain share in West Japan. -Develop and Sale of High-End and High Value-Added products. -Develop reusable prevention products for infectious disease. -Cultivate Overseas Markets. Profit Str

  29. Slide 29: Strategy: Trend of Business Records

    Strategy Trend of Business Records Due to COVID-19, regarding FY2022/FY2023 forecasts, the business impact is uncertain and reasonable calculation is difficult at the moment. These forecasts are currently pending and we are planning to announce a revised forecasts when possible. (¥ million) （％） 60 1

  30. Slide 30: Rewarding shareholder-focused policies

    V Rewarding shareholder -focused policies 29 © Nagaileben Co.,Ltd.

  31. Slide 31: Reward: Reimbursement Policy

    Reward Reimbursement Policy Shareholder-focused policies - Improvement of transparency by proactive disclosure - Interactive communication with investors - Profit reimbursement by high dividends Dividend policy - Basic policy is to continue stable dividend payment with payout ratio of 50% Share buyb

  32. Slide 32: Reward: The History of Stock Value

    Reward The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,300 125 FY2001 532.5 50.8 12.5 ※1 FY2009: Accrued pension fund FY2002 568.3 48.0 12.5 withdrawal payment loss ¥1.04b. A dotted line is when there was not outbreak. FY2003 604.0 52.4 15.0 1,200 FY2004 663.0 60.5 30.0 FY2005

  33. Slide 33: Reward: Actual Dividends Paid

    Reward Actual Dividends Paid Total Share Payout Total return dividend buyback ratio ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.4 27.4 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 2004/2/24 Stock split 2-for-1 FY2005 1,117 0 56.9 56.9 FY2006 1

  34. Slide 34: Management Philosophy

    Management Philosophy Our management philosophy are “Let us help the human life” and “Harmony”. We think that well-balanced growth with human, profit and philanthropy become the responsible corporate. Furthermore, we have our company spirit, “Nagaism”. We continue to specialize in medical / nurse /

  35. Slide 35: Notes on this material

    Notes on this material This material includes forecasts for the future. These forecasts are based on the judgment of the Company's management concerning currently available information. These future projections include assumptions or views based on assumptions, and therefore may be different from th

  36. Slide 36: Data File FY2020

    Data File FY2020 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>

  37. Slide 37: Index

    Index 1 … Sales by Item 2 … Sales by Product 3 … Sales by Region 4 … Rationalization of the Production System and Our Purchasing Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9

  38. Slide 38: 1. Sales by Item

    1. Sales by Item (¥ million) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 18,000 19/8 20/8 Sales 17,017 17,144 16,785 17,066 17,300 7,233 7,051 16,000 Healthcare wear 9,940 9,974 9,681 8,944 9,510 4,116 3,958 Doctors' wear 2,681 2,671 2,673 2,475 2,620 1,084 1,061 14,000 Utility we

  39. Slide 39: 2. Sales by Product

    2. Sales by Product (¥ million) First-half First-half (¥ million) FY 17/8 18/8 19/8 20/8 21/8E 19/8 20/8 18,000 Sales 17,017 17,144 16,785 17,066 17,300 7,233 7,051 High-End products 1,191 1,269 1,274 1,072 1,170 540 493 16,000 High Value-Added products 8,612 8,759 8,969 8,692 9,430 3,859 3,817 Valu

  40. Slide 40: 3. Sales by Region

    3. Sales by Region (¥ million) First-half First-half (¥ million) FY 17/8 18/8 19/8 20/8 21/8E 19/8 20/8 20,000 Sales 17,017 17,144 16,785 17,066 17,300 7,233 7,051 East Japan 9,007 9,065 8,898 8,530 8,915 3,764 3,720 18,000 Central Japan 1,756 1,795 1,664 1,730 1,800 705 720 16,000 West Japan 6,068

  41. Slide 41: 4. Rationalization of the Production System and Purchasing Strategy

    4. Rationalization of the Production System and Our Purchasing Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 17/8 18/8 19/8 20/8 21/8E 10,000 55 19/8 20/8 Domestic production 4,676 4,678 4,584 4,743 4,627 2,333 2,267 Overseas production 4,447 4,625 4,566 4,775 4,838

  42. Slide 42: 5. Statements of Income (Consolidated)

    5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 19/8 20/8 Net Sales 17,017 17,144 16,785 17,066 17,300 7,233 7,051 Gross profit 8,086 8,050 7,840 7,810 8,010 3,373 3,263 Sales, general, and administrative expenses 2,843 2,786 2,922 2,872 2,941 1,

  43. Slide 43: 6. Statements of Income (Non-Consolidated)

    6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 19/8 20/8 Net Sales 17,013 17,140 16,777 17,061 17,300 7,230 7,048 Gross profit 7,826 7,835 7,694 7,650 7,877 3,299 3,200 Sales, general, and administrative expenses 2,831 2,779 2,901 2,868 2,92

  44. Slide 44: 7. Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 16/8 17/8 18/8 19/8 20/8 19/8 20/8 Profitability ROE (%) 9.4 10.3 9.8 8.8 8.7 - - ROA (%) 12.7 13.4 12.8 11.5 11.3 - - Return on sales Net income (%) 19.7 21.6 21.4 20.5 20.4 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -

  45. Slide 45: 8. Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 16/8 17/8 18/8 19/8 20/8 19/8 20/8 Profitability ROE (%) 10.0 11.0 10.5 9.5 9.2 - - ROA (%) 13.4 14.2 13.6 12.4 12.0 - - Return on sales Net income (%) 19.2 21.2 21.1 20.5 20.0 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.4 0.4

  46. Slide 46: 9. Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,785 100.0 17,06

  47. Slide 47: 10. Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,777 100.0

  48. Slide 48: 11. Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,054 79.2 35,936

  49. Slide 49: 12. Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 19/8 First-half 20/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 31,852 78.1 32,7

  50. Slide 50: 13. The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 16/8 17/8 18/8 19/8 20/8 Full Year 16,500 17,000 17,500 17,600 17,400 First-half 6,850 7,140 7,350 7,463 7,482 Second-half 9,650 9,860 10,150 10,137 9,918 15,000 25 [Result] (¥ million) Full Year

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