France Bed Holdings Co., Ltd. · TSE:7840
France Bed — FY2025 Earnings Presentation
58 slides from France Bed's earnings presentation, May 29, 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2025
Financial Results Briefing for the Fiscal Year Ended March 31, 2025 May 29, 2025 FRANCE BED HOLDINGS CO., LTD. (Securities Code: 7840) Note: this document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and
Slide 2: Table of contents
Table of contents 1. Topics ...P.3~ 2. Performance Report for the Fiscal Year ...P.5~ Ended March 2025 3. Performance Outlook for the Fiscal ...P.16~ Year Ending March 2026 4. Main initiatives in the future ...P.25~ 5. Reference Materials ...P.38~ 2
Slide 3: 1. Topics
1. Topics 3
Slide 4: Topics
Topics Date and Time Matter Matter Cancellation of 3.65 million treasury stock shares effective March 14, 2025 Cancellation of (Ratio to the number of outstanding shares before the cancellation: 9.5%, February 27, 2025 treasury stock approx. 3.9 billion yen) (After the cancellation, Our Company held
Slide 5: 2. Performance Report for the Fiscal Year Ended March 2025
2.Performance Report for the Fiscal Year Ended March 2025 5
Slide 6: Consolidated Business Performance (Fiscal Year Ended March 2025)
Consolidated Business Perfomance (Fiscal Year Ended March 2025) Net sales, operating profit and ordinary profit increased despite falling short of plan. (Million of yen) FY2024 FY2025 (fiscal year ended March 2025) Plan Year-on-Year Results Plan (Note) Results Achievement Amount % Percentage Net sal
Slide 7: Consolidated Business Performance (Factors Affecting Operating Profit)
Consolidated Business Performance (Factors Affecting Operating Profit) The increase in net sales and improvement in cost ratio offset the increase in SG & A expenses such as personnel and fare. Operating profit: + 109 million YoY (+2.3%) (Millions of yen) ＋406 ▲1,057 ＋760 Increase in profit associat
Slide 8: Business Performance by Segment (Fiscal Year Ended March 2025)
Business Performance by Segment (Fiscal Year Ended March 2025) Net sales and operating profit increased in the Medical Services segment while net sales and operating profit decreased in the Home Furnishings and Health segment. (Millions of yen) FY2025 Achievement Year-on- FY2024 FY2025 plan ratio ye
Slide 9: Summary of the Medical Services Business
Summary of the Medical Services Business Net sales increased across all divisions. However, sales of mainstay assistive products rental increased by 3.0% excluding those of Home Care Service Yamaguchi Co., Ltd (HCSY), a consolidated subsidiary, for 2 months. In terms of profit, ordinary profit i
Slide 10: Factors Affecting Increases/Decreases in Ordinary Profit of Medical Services Business
Factors Affecting Increases/Decreases in Ordinary Profit of Medical Services Business The increase in ordinary profit of Medical Services Business was +66 million yen (+1.8%) year on year mainly due to the increase in net sales. (Millions of yen) ＋111 ▲922 ＋944 Increase in profit associated with imp
Slide 11: Reference: Ordinary Profit Factors Excluding Impact of HCSY for 2 Months
Reference Factors Affecting Increases/Decreases in Ordinary Profit of Medical Services Business Excluding Impact of HCSY for 2 months The increase of gross profit could not cover the increase in personnel and fare hikes, etc., resulting in a year-on-year decrease of ▲ 6 million yen (▲ 0.1%). ( Milli
Slide 12: Summary of Home Furnishings and Health Business
Summary of Home Furnishings and Health Business Net sales decreased by 1.3% due to a decline in consumer sentiment toward durable consummer goods, alongside ongoing rise in prices and decrease/downsizing of furniture stores. Ordinary profit decreased by 4.7% due to an increase in showroom expenses a
Slide 13: Factors Affecting Ordinary Profit of Home Furnishings and Health Business
Factors Affecting Ordinary Profit of Home Furnishings and Health Business The decrease in ordinary profit of Home furnishings and Health Business was ▲53 million yen (▲ 4.7%) year on year. Although gross profit increased due to an increase in unit sales prices, the ordinary profit decreased because
Slide 14: Consolidated Balance Sheet
Consolidated Blance Sheet (Millions of yen) FY2024 FY 2025 Amount Current assets 37,184 38,483 1,299 Cash&deposits and short-term securities 16,702 17,223 520 Non-current assets 31,336 32,363 1,026 (Rental assets) 5,296 5,393 96 (Retirement benefit asset) 5,437 7,203 1,765 Total assets 68,575 70,888
Slide 15: Consolidated Status of Cash Flows
Consolidated Status of Cash Flows (Millions of yen) FY2024 FY 2025 Amount Cash and cash equivalents at 10,355 13,202 2,846 beginning of period Cash flows from operating 7,829 7,448 ▲381 activities (depreciation) 5,363 5,094 ▲268 (Income taxes paid, etc.) ▲1,688 ▲900 787 Cash flows from investing act
Slide 16: 3. Performance Outlook for the Fiscal Year Ending March 2026
3.Performance Outlook for the Fiscal Year Ending March 2026 16
Slide 17: Background Related to Developing the Plans for the Current Period
Background Related to Developing the Plans for the Current Period *Background and Understanding for developing medium-term management plan Medical Services Business Home Furnishing and Health Business • Advancement of the super-aged society • Shrinking trend of the domestic furniture and expansion o
Slide 18: Consolidated Business Performance Outlook (Fiscal Year Ending March 2026)
Consolidated Business Perfomance Outlook (Fiscal Year Ending March 2026) (Millions of yen) FY2025 FY2026 Amount % Results Plan Net sales 60,561 62,300 1,738 2.8% Operating profit 4,696 4,750 53 1.1% (Profit Ratio) 7.7% 7.6% - - Ordinary profit 4,686 4,750 63 1.3% (Profit Ratio) 7.7% 7.6% - - Net pro
Slide 19: Profit and Loss Outlook by Segment (Fiscal Year Ending March 2026)
Profit and Loss Outlook by Segment (Fiscal Year Ending March 2026) (Millions of yen) FY 2025 FY 2026 Amount % Results Plan Net sales 40,509 42,300 1,791 4.4% Medical Ordinary Services 3,592 3,700 profit 108 3.0% Business (Profit ratio) (8.8 %) (8.7%) Home Net sales 19,481 19,300 ▲181 ▲0.9% Furnishin
Slide 20: Medical Services Business
Medical Services Business Numerical Targets of Segment Profit and Loss (Fiscal Year Ending March 2026) (Millions of yen) FY 2025 FY2026 Amount % Results Plan Net sales 40,509 42,300 1,791 +4.4% Medical Services Business Ordinary profit 3,592 3,700 108 +3.0% Main Measures 1. Strengthening the system
Slide 21: Home Furnishings and Health Business
Home Furnishings and Health Business Numerical Targets of Segment Profit and Loss(Fiscal Year Ending March 2026 ) (Millions of yen) FY 2025 FY 2026 Amount % Results Plan Net sales 19,481 19,300 ▲181 ▲0.9% Home Furnishings and Health Business Ordinary profit 1,067 1,050 ▲17 ▲1.5% Main Measures 1. Con
Slide 22: Capital Investment Outlook (Fiscal Year Ending March 2026)
Capital Investment Outlook(Fisical Year Ending March 2026 ) (Millions of yen) FY 2024 FY2025 FY 2026 Results Results Plan Capital investment 4,905 4,944 4,900 Rental assets 3,219 3,832 3,900 Service center 912 264 340 Depreciation 5,363 5,094 5,020 ✓ Plan to invest 3.9 billion yen in rental assets t
Slide 23: Shareholder Return
shareholder return Aim for a consolidated dividend payout ratio of 50% and continue to acquire treasury stock. （yen） Dividends Dividend payout ratio 50 55% 50.1% 50.0% 40 48.1% 50% 47.5% 46.9% 46.4% 44.6% 30 45% 30 33 36 39 40 41 20 40% FY2026 FY2027 FY 2021 FY2022 FY2023 FY2024 FY2025 Forecast Targ
Slide 24: Consolidated Financial Results for the Last Six Fiscal Years
Consolidated Financial Results for the Last Six Fiscal Years (Millions of yen) FY2020 FY2021 FY2022 2FY023 FY2024 FY2025 Net 26,329 24,398 25,978 28,244 28,366 29,250 sales Interim Ordinary 1,083 1,480 1,901 1,958 2,071 2,145 profit (4.1%) (6.0%) (7.3%) (6.9%) (7.3%) (7.3%) (Profit ratio) Net 52,430
Slide 25: 4. Main Initiatives in the Future
4. Main initiatives in the future 25
Slide 26: Japan's Market Environment: Assistive Products Rental Market
Japan’s Market Environment: Assistive Products Rental Market Year-on-year change in cost of benefits Cost of Benefits (Billions of Yen) 5,000 ■Cost of Benefits(Total) Units (Total) Year-on-year 110.0% 4,500 4,384 4,215 4,012 3,800 4,000 3,566 3,500 106.6% 105.6% 3,000 105.1% 104.4% 104.0% 2,500 2,00
Slide 27: Japan's Market Environment: Shortage of Care Personnel
Japan's Market Environment: Shortage of Care Personnel The number of care staff continues to fall short FY 2026 Approximately Approximately 2.72 million 250,000 persons (Persons) FY 2040 Approximately 2.4 million Approximately Approximately 570,000 570,000 persons Approximately 250,000 Approximately
Slide 28: Main Initiatives: Medical Services Business
Main Initiatives in the Future : Medical Services Business 1 Strengthening Customer Acquisition 1 2 Promotion of sales and rental of 2labor-saving products for nursing care 3 Expansion of rental services that 3 do not rely on Long Term Care Insurance 28
Slide 29: Strengthening Customer Acquisition
Main Initiatives in the Future : Medical Services Business 1 Strengthening customer acquisition June 2025 The company will acquire approximately 4,500 nursing care rental customers from a major nursing care provider that will discontinue its assistive products rental business. Transition of Customer
Slide 30: Promotion of Sales and Rental of Labor-Saving Products for Nursing Care
Main Initiatives in the Future : Medical Services Business 2 Promotion of sales and rental of labor-saving products for nursing care Responding to labor-saving needs due to a shortage of human resources and supporting the self-independence of care recipients Home Care/ Home Care Nursing Care Facilit
Slide 31: Subsidy Programme for Improvement of Productivity and Workplace Environment
Main Initiatives in the Future : Medical Services Business Subsidy Programme for Improvement of Productivity and Workplace Environment A subsidy programme offered by the Ministry of Health, Labour and Welfare to support the installation of equipment and other measures to strengthen the management fo
Slide 32: Expansion of Rental Services Not Reliant on Nursing Care Insurance
Main Initiatives in the Future : Medical Services Business 3 Expansion of rental services that do not rely on nursing care insurance Providing flexible options to those who are not covered by the long-term care insurance system Home Care Air massager GPS monitoring service Automatic medication dispe
Slide 33: Expansion of Rental Services Not Reliant on Nursing Care Insurance
Main Initiatives in the Future : Medical Services Business 3 Expansion of rental services that do not rely on nursing care insurance Providing flexible options to those who are not covered by the long-term care insurance system Nursing Care Facility Shower warm bath system Rehabilitation machine Fur
Slide 34: Main Initiatives: Home Furnishings and Health Business
Main Initiatives in the Future : Home Furnishings and Health Business 1 Improving profitability through model integration 2 Developing and selling of products suitable for EC sales 34
Slide 35: Improving Profitability through Model Integration
Main Initiatives in the Future : Home Furnishings and Health Business 1 Improving profitability through model integration Improving inventory management efficiency and reducing costs by optimizing the product lineup in three years 10%/year 30% Reduction Target 35
Slide 36: Developing and Selling Products Suitable for EC Sales
Main Initiatives in the Future : Home Furnishings and Health Business 2 Developing and selling of products suitable for EC sales By designing products that meet EC requirements such as “compact delivery”, “simple assembly”, and “non-face-to-face purchase”, our company complies with convenience and r
Slide 37: Increase Rental Sales to 50% or More by March 2029
Main Initiatives in the Future : All Departments Increase rental sales to 50% or more by March 2029 Rental Sales (including linen supply sales) Consolidated net sales Composition of rental sales 70,000 60,561 45.0% （Millions of yen） 59,151 58,578 44.1% 44.5% 54,398 60,000 43.6% 44.0% 50,000 43.5% 40
Slide 38: 5. Reference
5. Reference 38
Slide 39: Summary of Our Company
Summary of Our Company Logo Mark 39
Slide 40: Main History of Our Group
Main history of Our Group 1949 Established Futaba Seisakusho, a private store, in Mitaka City, Tokyo (Manufacture of vehicle seats such as scooters). 1952 Reorganized to Futaba Seisakusho Co., Ltd. 1961 Company name was changed to "France Bed Co., Ltd." (launch of the first split bed in Japan in 195
Slide 41: Segment Information (as of March 31, 2025)
Segment Information (as of March 31, 2025) Consolidated net sales 60,561 million yen Medical Services Business Home Furnishings and Health Business B A A Net sales Net sales 66.8％ 32.1％ D B C A Nursing care rental & rental wholesale sales A Wholesale sales of furniture specialty stores and departmen
Slide 42: Business Model (Medical Services Business)
Business Model (Medical Services Business) French Bed Group Clients Providers and Users Sale and rental of assistive products Assistive products rental business Rental wholesale Assistive products rental business operator Wholesale sales The elderly Rental Wholesale Company at home Sales and rental
Slide 43: Business Model (Home Furnishings and Health Business)
Business Model (Home Furnishings and Health Business) French Bed Group Clients Providers and Users Furniture specialty store Department store Wholesale sale and Home furnishings and rental of household electronics retail store health business beds, etc. EC business operator Sale and rental of hotel
Slide 44: Distribution Structure of Assistive Products Rental Business
Distribution Structure of Assistive Products Rental Business and Business Domain of Our Company Assistive and care products Assistive products rental Rental Wholesalers Manufacturer Business operators (Rental assets not owned by the company) France Bed co., Ltd. France Bed co., Ltd. Other companies
Slide 45: Assistive Products Rental Service
Assistive Products Rental Service Assistive products rental service The service allows users to use assistive products useful for daily life and nursing care at a cost equivalent to 10% of the rental fee (Note). ④ Confirmation of the status of lending and use of products Home care support ➂Instructi
Slide 46: Long-Term Care Benefit Cost for Assistive Products Rental Service
Long-Term Care Benefit Cost, etc. for Assistive Products Rental Service Benefit cost (billions of yen) Year-on-year change in cost of benefits Benefit cost (billions of yen) Cost of benefit by products type 4,500 Cost of 110.0% 1,400 Units (Total) Benefits(Total) Year-on-year 4,000 Handrail 1,200 3,
Slide 47: Medium-term Management Plan
Medium-term Management Plan (FY 2025 to FY 2027) 47
Slide 48: Background Related to Developing the Plans for the Current Period
Background Related to Developing the Plans for the Current Period Medical Services Business Home Furnishings and Health Business • Advancement of the super-aged • Shrinking trend of the domestic society and expansion of medical and furniture and interior market nursing care needs • Oligopolization o
Slide 49: Target for the Final Year of the New Medium-term Management Plan
(Reference) Target for the Final Year of the New Medium-term Management Plan (Consolidated Business Performance) Numerical targets of medium-term management (consolidated profit/loss) < FY2025 to FY2027 (3 years) > (Millions of yen) FY2025 % FY 2024 FY 2027 (Compared to the results Results Plan Plan
Slide 50: Medium-term Plan Targets by Segment
(Reference) Target for the final year of the new medium-term management plan (business performance by segment) Numerical targets of medium-term management (consolidated profit/loss) < FY2025 to FY2027 (3 years) > (Millions of yen) FY2024 FY2025 FY2027 % (Compared to the results of Results Plan Resul
Slide 51: Quarterly Consolidated Net Sales
Consolidated Finacial Results (Quarterly Consolidated Net Sales) 59,151 million yen 60,561 million yen (Millions of yen) 17,000 16,266 16,381 2 months' account settlement addition 15,820 of Home care Service Yamaguchi Co., Ltd 14,815 14,930 15,000 14,478 14,514 14,396 14,519 14,434 13,969 13,765 13,
Slide 52: Quarterly Consolidated Ordinary Profit
Consolidated Finacial Results (Quarterly Consolidated Ordinary Profit) 4,657 million yen 4,686 million yen (Millions of yen) 1,500 1,485 1,377 2 months' account 1,254 1,272 settlement addition of Home care Service Yamaguchi Co., Ltd 1,200 1,164 1,084 1,100 1,107 1,064 1,038 1,006 900 874 600 300 1Q
Slide 53: Medical Services Business (Quarterly Net Sales)
Summary of Medical Services Business (Quarterly Net Sales) 38,862million yen 40,509 million yen (Millions of yen) 2 months' account settlement 12,000 addition of Home care 10,921 Service Yamaguchi Co., Ltd 11,233 10,511 9,931 9,784 9,414 9,464 9,430 9,560 9,216 9,046 8,911 9,000 6,000 3,000 0 1Q 2Q
Slide 54: Medical Services Business (Quarterly Ordinary Profit)
Summary of Medical Services Business (Quarterly Ordinary Profit) 3,526 million yen 3,592 million yen (Millions of yen) 1,500 1,200 1,200 2 months' account 1,095 settlement addition of Home care Service Yamaguchi 1,095 Co., Ltd 900 853 792 829 823 843 779 771 761 634 600 300 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 55: Home Furnishings and Health Business (Quarterly Net Sales)
Summary of Home Furnishings and Health Business (Quarterly Net Sales) 19,740 million yen 19,481 million yen (Millions of yen) 8,000 7,000 Rush demand due to price revision 6,000 5,173 5,071 5,170 5,011 4,941 4,816 4,804 4,948 4,964 5,000 4,763 4,752 4,752 4,000 3,000 2,000 1,000 0 1Q 2Q 3Q 4Q 1Q 2Q
Slide 56: Home Furnishings and Health Business (Quarterly Ordinary Profit)
Summary of Home Furnishings and Health Business (Quarterly Ordinary Profit) 1,121 million yen 1,067 million yen (Millions of yen) 600 Rush demand due to price revision 500 466 400 318 309 300 278 272 269 264 264 273 226 216 200 170 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 2023 FY 2024 FY 2025 56
Slide 57: BPS, Stock Price and PBR
BPS, Stock Price and PBR BPS(Net assets per share) Closing stock price at the end of the FY (yen) PBR(Price-to-book ratio) (times) 1500 1.1 1.1 1.2 0.9 0.9 1400 1.0 1,288 1,304 1300 0.8 0.8 1200 1,175 1,106 0.6 1100 1,030 1,058 1,058 998 969 0.4 1000 900 865 0.2 800 0.0 FY2021 FY2022 FY2023 FY2024 F
Slide 58: Postscript
Postscript (Contact) Accounting/General Affairs Group Email: ir@francebed-hd.co.jp (Cautionary Note Regarding Forward-Looking Statements) This presentation contains forward-looking statements, including our expectations, beliefs, expectations, intentions and strategies. These statements are based on