Sms Co., Ltd. · TSE:2175

Sms — FY2012 Earnings Presentation

48 slides from Sms's earnings presentation, Apr 26, 2013

  1. Slide 1: Presentation Materials for Investor Relations

    SMS CO., LTD. (Securities Code 2175 / TSE1 ) Presentation Materials for Investor Relations Including Earnings Results Summary for the Fiscal Year Ending March 31, 2013(the 10th Fiscal Year) April 26, 2013

  2. Slide 2: Today's Agenda

    Today’s Agenda 1 Our Mission & Strategy p.3-p.13 2 FY03/13 Consolidated Earnings Results p.15-p.23 3 FY03/14 Consolidated Earnings Forecasts p.25-p.46 © Copyright SMS CO.,LTD. 1

  3. Slide 3: Our Mission & Strategy

    1 Our Mission & Strategy p.3-p.13 2 FY03/13 Consolidated Earnings Results p.15-p.23 3 FY03/14 Consolidated Earnings Forecasts p.25-p.46 © Copyright SMS CO.,LTD. 2

  4. Slide 4: Our Mission

    1 Our Mission We create value and contribute to society by being the best provider of “Information infrastructure" for an aging society. SMS stands for “Senior Marketing System.” © Copyright SMS CO.,LTD. 3

  5. Slide 5: Our Target Market Segments in an Aging Society

    1 Our Target Market Segments in an Aging Society  We provide services in the following three market Segments. * We define "Active Senior" as those aged who are active in work and hobbies with strong passion and motivation to be lively part of society. Active Senior* Care Workers Nurses Care Mana

  6. Slide 6: Our Role in an Aging Society

    1 Our Role in an Aging Society  We provide “Information infrastructure" as an intermediary between information seekers and information providers. Information Information Providers Seekers Mobile PCs Magazines Others Phones To Collect To Organize To Convey © Copyright SMS CO.,LTD. 5

  7. Slide 7: Our Clients/Customers

    1 Our Clients/Customers  We provide our services to the following eight groups. Active Senior Overseas Businesses China, Korea, Professionals Taiwan, etc. Service End operators Users Professionals Professionals Service End Service End Operators Users Operators Users Nursing Care Medical Care © Copy

  8. Slide 8: Nursing Care Market: Our Clients/Customers and Services

    1 Nursing Care Market: Our Clients/Customers and Services  We provide 12 types of services in nursing care market. Nursing Care  RAG*1for care managers  Com*4 for care managers  RAG*1 for PT/OT/ST*2  Com*4 for care workers  RAD*3 for care workers  RAD*3 for newly-graduated Professionals  Com

  9. Slide 9: Medical Care Market: Our Clients/Customers and Services

    1 Medical Care Market: Our Clients/Customers and Services  We provide 12 types of services in medical care market.  RAG*1 for nurses Medical Care  RAG*1 for doctors  Com*3 for nurses and student  RAG*1 for pharmacists nurses  RAD*2 for nurses  Mail order for nurses  RAD*2 for newly-graduated

  10. Slide 10: Future Vision: A New Industry

    1 Future Vision : A New Industry  SMS believes that “Information infrastructure for an aging society ” will develop into a major industry. Social background Emergence of a new industry Demographics IT Macroeconomic trends Telecommunications Education Social insurance system Housing “Information Nur

  11. Slide 11: Information Infrastructure for an aging society (At Present)

    1 ”Information Infrastructure for an aging society”(At Present)  "Information infrastructure for an aging society" has enormous business potential.  Currently, we have relatively few services and have not yet maximized the synergies between our services. Related？business operators ？ Communication

  12. Slide 12: Information Infrastructure for an aging society (In the Future)

    1 "Information Infrastructure for an aging society”(In the Future)  As we develop numerous services and generate synergies between our services, a new industry will emerge. Related？business operators ？ Communication Travels carriers Health ？ Service ？ operators ？ foods Health Ware- ？ ？ clubs Profes

  13. Slide 13: Our Strategy: Lock-in and Cultivate

    1 Our Strategy: "Lock-in and Cultivate"  “Lock-in” clients/customers by “Daily use" services.  “Cultivate” business opportunities by “Occasional use" services. “Daily use” services “Occasional use” services “Lock-in” Clients/Customers Information portal on Recruiting Agent housing for elderly Prof

  14. Slide 14: FY03/13 Sales Breakdown

    1 FY03/13 Sales Breakdown  Sales of Recruiting agent service for nurses represents 60% of total net sales.  Expecting sales to increase in “Daily use” services both in nursing care and medical care segments in the future.  By Business segment  “Daily use” services*1 vs. “Occasional use” services

  15. Slide 15: FY03/13 Consolidated Earnings Results

    1 Our Mission & Strategy p.3-p.13 2 FY03/13 Consolidated Earnings Results p.15-p.23 3 FY03/14 Consolidated Earnings Forecasts p.25-p.46 © Copyright SMS CO.,LTD. 14

  16. Slide 16: Business Environment: Labor Shortage Trend Continues

    2 Business Environment: Labor Shortage Trend Continues  Job-Offers-to-Seekers Ratio*1 Nursing care Medical care (times) (times) 2.00 4.00 Care Workers All-Industry Nurses All-Industry 1.60 3.00 1.20 2.00 0.80 1.00 0.40 0.00 0.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4

  17. Slide 17: Consolidated Earnings Results for FY03/13

    2 Consolidated Earnings Results for FY03/13  YoY growth in net sales and income.  Net sales and income fell short of the forecasts. P/L Statement FY03/12 FY03/13 FY03/13 (¥ million) YoY Change to Forecasts Actual Forecasts Actual Net Sales 8,692 10,991 10,181 +17％ ▲7％ Operating Income 1,519 1,758

  18. Slide 18: Historical Earnings Results

    2 Historical Earnings Results  Achieved growth both in net sales and in ordinary income for nine consecutive years since the establishment of the company. (¥ million) Trends in net sales ( LHS) and ordinary income (RHS)*1 (¥ million) 15,000 2,500 Net Sales Ordinary Income 1,990 12,000 2,000 1,734 1

  19. Slide 19: Analysis of Differences between Actual and Forecasts in P/L

    2 Analysis of Differences between Actual and Forecasts in P/L  Net sales and operating income fell short of the forecasts, mainly due to stagnant productivity of Recruiting agent service for nurses. Differences between Actual and Forecasts (¥ million) Actual Forecasts Difference Analysis on Differe

  20. Slide 20: Analysis of Year-on-Year Differences: Net Sales

    2 Analysis of Year-on-Year Differences: Net Sales  Net sales increased by ¥1.5 billion YoY(+17%).  Net sales increased in almost all services. 10,500 YoY differences of net sales by segment ＋84 10,181 (¥ million) ＋356 10,000 +239 +344 9,500 +1,489 +178 +202 9,000 8,692 +83 8,500 8,000 FY03/12 RAG*

  21. Slide 21: Analysis of Year-on-Year Differences: Operating Income

    2 Analysis of Year-on-Year Differences: Operating Income  Operating income from services in profit generating stage increased YoY.  Operating income from services in development stage decreased YoY, due to increase in overseas investment. YoY differences of operating income by business stage (¥ mi

  22. Slide 22: Improvement by Services

    2 Improvement by Services  Achieved record-high productivity: Full year up 20% YoY, Second half up 35% YoY. Performance status in FY03/13 by services Services Item FY03/13 Factors RAG*1 in nursing • Achieve record-high in the past (up 20% YoY, up 35% productivity*2 care market in Q3-Q4 YoY) • Promo

  23. Slide 23: Nursing Care Segment: Sales Up 33% YoY

    2 Nursing Care Segment: Sales Up 33% YoY  Net sales increased in almost all services. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) (¥ million) FY03/12 FY03/13 YoY Chg (¥ million) FY03/12 FY03/13 YoY Chg Daily Use 211

  24. Slide 24: Medical Care Segment: Sales Up 13% YoY

    2 Medical Care Segment: Sales Up 13% YoY  Net sales increased in almost all services. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) (¥ million) FY03/12 FY03/13 YoY Chg (¥ million) FY03/12 FY03/13 YoY Chg Daily Use 391

  25. Slide 25: FY03/14 Consolidated Earnings Forecasts

    1 Our Mission & Strategy p.3-p.13 2 FY03/13 Consolidated Earnings Results p.15-p.23 3 FY03/14 Consolidated Earnings Forecasts p.25-p.46 © Copyright SMS CO.,LTD. 24

  26. Slide 26: FY03/14 Consolidated Earnings Forecasts

    3 FY03/14 Consolidated Earnings Forecasts  Plan to increase net sales by 23% YoY and net income by 12% YoY.  Plan to achieve growth in services in profit-generating stage YoY while increasing investment in new businesses to attain mid-and-long term growth. P/L Statement FY03/13 FY03/14 (¥ million)

  27. Slide 27: Financial Results and Financial Forecasts

    3 Financial Results and Financial Forecasts  Plan to achieve growth both in net sales and in ordinary income for ten consecutive years since the establishment of the company. (¥ million) Trends in net sales ( LHS) and ordinary income (RHS)*1 (¥ million) 15,000 2,263 2,500 Net Sales Ordinary Income

  28. Slide 28: FY03/14 Initiatives

    3 FY03/14 Initiatives  Create and execute strategies by each business segment and accelerate business development.  Start to develop new services in “active senior” segment. Corporate Structure Aims Business segments Assign a senior executive to each business segment Medical Care Overseas Business

  29. Slide 29: Consolidated Earnings Forecasts for FY03/14: Net Sales

    3 Consolidated Earnings Forecasts for FY03/14:Net Sales  Plan to increase net sales by ¥2,293 million YoY.  Plan to increase net sales in all business segments. YoY differences of net sales by segment 12,475 ＋165 ＋28 (¥ million) ＋288 ＋863 ＋403 +2,293 ＋323 ＋221 10,181 FY03/13 人材 *1 RAG メディア Media 新

  30. Slide 30: Consolidated Earnings Forecasts for FY03/14: Operating Income

    3 Consolidated Earnings Forecasts for FY03/14:Operating Income  Plan to increase operating income by ¥210 million YoY.  Plan to achieve growth in operating income while increasing investment in services in development stage. YoY differences of operating income by business stage (¥ million) ＋490 ▲2

  31. Slide 31: Scenario for Mid-term Growth

    3 Scenario for Mid-term Growth Segment or service • Labor shortages continue, creating major ①Growth of recruiting opportunities to expand recruiting businesses businesses • Achieve growth by enhancing “Daily use” services and improving productivity • Increase the number of service operators using “

  32. Slide 32: Dividends

    3 Dividends  We have increased the amount and the payout ratio of dividends while setting high priority on investment for growth. Trend of the amount and the payout ratio of dividends 2000 16.0% (¥) 13.6% 14.0% 12.3% 11.6% 1500 1,600 12.0% 10.0% 1,200 1000 8.0% Dividends payout ratio 6.8% 1,000 The

  33. Slide 33: Share Repurchase

    3 Share Repurchase  Repurchase own shares. Details of share repurchase ・Total number of shares to be repurchased：Up to 320,000 shares (Equivalent to 1.5% of outstanding shares (excluding treasury stock)) ・Total cost of share repurchase：Up to 640million yen ・Period of repurchase：From April 30, 2013

  34. Slide 34: Strategy: Nursing Care Segment

    Strategy: Nursing Care Segment © Copyright SMS CO.,LTD. 33

  35. Slide 35: Nursing Care Segment: Business Environment

    3 Nursing Care Segment : Business Environment  Total nursing care expenditure doubles every ten year.  Nursing care market has enormous market opportunities. Total nursing care expenditure*1 Size of nursing care market (At present) Welfare ¥16.1 equipment*2 trillion ¥1.1trillion Food ×2.0 products

  36. Slide 36: Nursing Care Segment: Strategy for the Next Three Years

    3 Nursing Care Segment : Strategy for the Next Three Years*1 40% of working care managers 13% of small-sized nurs- are our online community ing care operators are Care managers users. our clients. 【Professio- “Kaipoke-biz” is going to 【Service nals】 Develop marketing support become a “business porta

  37. Slide 37: Nursing Care Segment: Initiatives for Small-Sized Nursing Care Operators

    3 Nursing Care Segment : Initiatives for Small-Sized Nursing Care Operators*1 At present In the future →”Lock-in” clients →Evolve into a ”Business portal” ・Attract and “Lock-in” small-sized nursing care operators ・”Cultivate” business opportunities by offering Recruiting by offering a nursing care i

  38. Slide 38: Nursing Care Segment: Forecasts

    3 Nursing Care Segment : Forecasts  Plan to increase net sales by 49% YoY. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) (¥ million) FY03/13 FY03/14 YoY Chg (¥ million) FY03/13 FY03/14 YoY Chg Daily Use 382 674 +76％ Re

  39. Slide 39: Strategy: Medical Care Segment

    Strategy: Medical Care Segment © Copyright SMS CO.,LTD. 38

  40. Slide 40: Medical Care Market: Business Environment

    3 Medical Care Market : Business Environment  Cost of medical care insurance increases greatly.  Labor shortages become more serious despite increase in the number of nurses. The number of nurses*2 and Cost of medical care insurance *1 job-offers-to-seekers ratio*3 （The number of nurses/thousand）（

  41. Slide 41: Medical Care Segment: Strategy for the Next Three Years

    3 Medical Care Segment : Strategy for the Next Three Years*1 Nurses Doctors , Pharmacists Provide RAG*2 and RAD*3 for doctors and pharmacists in Market share for RAG*2 is m3career. 25-30%（Market share for all career change is 7%). Doctors Pharmacists Hospitals 【Professio- 50% of hospitals are our na

  42. Slide 42: Medical Care Segment: Initiatives for Nurses

    3 Medical Care Segment : Initiatives for Nurses  “Lock-in” nurses by providing multiple services and maximize their lifetime value. Job search RAG*3 RAD*1 for RAD*1 N.G.*2 Books ？ Nurse ID Seminars ？ DB Schedule E- Career Daily-life management learning development Communi- Mail cation order © Copyr

  43. Slide 43: Medical Care Segment: Initiatives for Recruiting Agent services

    3 Medical Care Segment : Initiatives for Recruiting Agent services RAG*1 in nursing care segment(FY03/13) RAG*1 for nurses(FY03/13) ・Optimize the operation processes according ・Standardize operation processes across to the characteristics of care managers the country. market and PT/OT market. Produc

  44. Slide 44: Medical Care Segment: Forecasts

    3 Medical Care Segment : Forecasts  Plan to increase net sales by 16% YoY. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) (¥ million) FY03/13 FY03/14 YoY Chg (¥ million) FY03/13 FY03/14 YoY Chg Daily Use 780 1,047 +34％

  45. Slide 45: Strategy: Overseas Businesses

    Strategy: Overseas Businesses © Copyright SMS CO.,LTD. 44

  46. Slide 46: Overseas Businesses: Business Environment

    3 Overseas Businesses : Business Environment  Enormous business opportunities in Asian markets.  Demographics differ from one country to another. Population and Percentage of Population 65 Years or Older*1 Population of elderly people*1 (million) (million) 8％ 1,340 110 China China 12％ 1,390 170 5％

  47. Slide 47: Overseas Businesses: Strategy for the Next Three Years

    3 Overseas Businesses : Strategy for the Next Three Years  Develop new services to meetthe market needs of each country.  Expand overseas businesses by developing services and building up alliances with local players. China ・SMS Beijing Thailand South Korea ・SENIOR MARKETING ・SMS KOREA CO., LTD. S

  48. Slide 48: Caution on Forward-Looking Statements

    Caution on Forward-Looking Statements These materials contain forward-looking statements, including estimates, projections, and statements related to business operations of SMS CO., LTD. (hereinafter referred to as the “Company”). The forward-looking statements are based on current expectations and

SMS — FY2012 Earnings Presentation on 6ix