Nagaileben Co., Ltd. · TSE:7447
Nagaileben — H1 FY2015 Earnings Presentation
48 slides from Nagaileben's earnings presentation, April 2015
Slide 1: Analyst Guide First-half FY2015
ANALYST GUIDE First-half FY2015 April 2015 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-5289-8200)>
Slide 2: Overview FY2014
Overview FY2014 Achieved the Highest Sales. 1 - 6th consecutive years of growth in sales - Sales: ¥6,840 m (y/y +1.0%) - Operating profit: ¥1,797 m (y/y -1.9%) The Change of Business Environment 2 - Market Condition: Stable - Production Condition: Appreciation of the dollar against the yen. Escalati
Slide 3: Agenda
Agenda Outline I Financial Review First-half FY2015 II Market Environment III Forecast for FY2015 IV Management Goals V Rewarding shareholder-focused policies 2
Slide 4: Outline
Outline Establish competitive position in Strong growing market medical clothing market Doctor, Dentist, Nursing Staff*1 Care workers*2 -Approximately 60% market share Pharmacist*1 in domestic medical clothing 690,000 1,540,000 1,490,000 -Wide field, planning, manufacturing people people people and
Slide 5: I Financial Review First-half FY2015
I Financial Review First-half FY2015 4
Slide 6: Financial Highlights: Statements of Income
Financial Highlights <Statements of Income> (millions of yen,%) First-half FY2015 % Change To Forecast % Composition % Composition % Change Net sales 6,840 +1.0 -1.6 100.0 - Gross profit 3,187 +0.6 -1.5 46.6 -0.2 Sales, general, and 1,390 +3.9 -2.6 20.3 +0.6 administrative expenses Operating income
Slide 7: Financial Highlights: Balance Sheet
Financial Highlights <Balance Sheet> Major assets (¥ million %) Title Result Change Result Change % [Major changes from the previous fiscal year] Cash on hand at banks 15,510 -506 -3.2 Cash and cash equivalents down ¥506million Notes and accounts receivable 4,710 +604 +14.7 -Cash flows from operatin
Slide 8: Segments by item
Segments by item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear 7
Slide 9: Sales by Item
Sales by Item Doctors' 15.3% Utility 4.4% Major business in products for healthcare and peripheral Patient business in products for patients and surgery grew 9.3% steadily. Surgery [Healthcare wear] 9.6% -In 2Q, catching renewal contracts which were postponed Healthcare Shoes of 1Q, and focusing on
Slide 10: Sales by Region
Sales by Region Central Japan 11.5% In FY2014, sales in Central and West Japan exceeded West Japan the previous year and contributed to growth of sales. In 37.0% FY2015, sales in all area recorded the highest past sales. [East Japan] - Catching renewal contracts which were postponed of 1Q, sales kep
Slide 11: II Market Environment
Il Market Environment 10
Slide 12: Market Environment Topics
Market Environment Topics Care Service treatment fees revised.(effective Apr. 2015) The revise rate -2.27% ( Home-1.42%, Facilities -0.85%) Improvement of care staffs conditions +1.65%, dementia heavy +0.56%, revenue adjustment -4.48% Forcast of the number of nursing and care staff in 2015 -Nursing
Slide 13: Market Environment
Market Environment Changes and prospects for medical and care service systems Medical System Care Service System Medical Service Law, Health and Medical Medical treatment fees Care Service Law, Nursing Care Insurance, etc. Nursing care fees Service Law for the Aged, Medical Insurance, etc Enforcemen
Slide 14: Revisions to medical treatment and care service fees
Market Environment Revisions to medical treatment and care Service fees （％） 5 Medical 4 Care Service Consumption +3.0 tax increase 3 +2.6 +2.8 2 +1.0 +1.2 1 +0.8 +0.8 +0.8 +0.6 +0.5 +0.4 +0.2 +0.2 +0.0 +0.1 0 ▲0.3 ▲0.1 -1 ▲0.8 -2 ▲1.3 Consumption tax increase +1.63% Service -1.26% ▲2.3 ▲2.4 ▲2.3 -3
Slide 15: Supply and Demand of Nursing Staff
Market Environment Supply and Demand of Nursing Staff (Source: the Ministry of Health, Labor and Welfare (December 2010)) (10,000 persons) Change to actual number as 175 Demand from the 7th Outlook. Forecast Actual Decreased number of nursing staff on both supply 150 and demand sides for technical r
Slide 16: Supply and estimated future need for care workers
Market Environment (10,000 persons) 300 Supply and estimated future need for care workers forecast(maximum) 249 250 forecast(minimum) Actual 200 176 150 237 100 167 149 134 133 140 119 124 128 113 50 100 89 66 76 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '15 '25 Since the number of tr
Slide 17: Supply and estimated future need
Market Environment Supply and estimated future need (10,000 persons) Nursing Staff care workers 300 forecast(maximum) forecast(minimum) 249 250 206 Actual 200 150 237 100 196 154 149 50 0 2012 2025 2012 2025 Actual record :survey of care service facilities and business, Ministry of The first meeting
Slide 18: III Forecast for FY2015
If Forecast for FY2015 17
Slide 19: Management Tasks and Status
Management Tasks and Status •Capture clusters of needs in the healthcare Marketing strategy wear market to boost sales •Increase peripheral business in products for patients and surgery •Develop new markets •Strengthen ties with material makers and trade Production strategy firms. to ensure a steady
Slide 20: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2015E Change (Initial Forecast) % Change (FY2014) Composition % Change Net sales 16,700 － +3.0 － Gross profit 7,682 -75 +1.3 -0.8 Sales, general, and administrative expenses 2,751 － +3.3 +0.1 Operating income 4,931 -75 +0.2 -0.8 Recurring income 5,
Slide 21: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2014 FY2015E 18,000 Sales +3.8% +3.0% 16,000 Shoes/Others 14,000 Healthcare wear +4.4% +3.8% Surgery wear 12,000 Doctors' wear +4.2% +2.1% 10,000 Patient wear Utility wear -6.6% -8.6% 8,000 Utility wear Patient wear +6.3% +6.4
Slide 22: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2014 FY2015E 18,000 Total sales +3.8% +3.0% 16,000 14,000 Overseas East Japan +0.8% +0.9% 12,000 Central Japan +9.7% +3.1% West Japan 10,000 West Japan +6.0% +5.3% 8,000 Central Japan Overseas +24.3% +25.7% 6,000 4,000 Eas
Slide 23: Product Strategy
Product Strategy Sales by Product (¥ million) Year-on-year change FY2014 FY2015E 18,000 Sales +3.8% +3.0% 16,000 DC brand products +0.6% +0.1% DC brand 14,000 products High Functional products +8.1% +5.3% 12,000 High Functional Standard Functional +0.4% +1.4% 10,000 products products 8,000 Standard
Slide 24: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2014 FY2015E Purchased products Domestic production 54.3 53.0 7,500 45 Overseas production 43.1 44.4 Overseas production Purchased products 2.6 2.6 5,000 40 Domestic production 2,500 35 Ratio of overseas product
Slide 25: IV Management Goals
IV Management Goals 24
Slide 26: Business Direction
Business Direction Sales Strategy -Increase peripheral business in products for patients and surgery. -Gain share In West Japan. -Develop and Sale of High Functional products. Profit Strategy -Driving the strategy of higher quality and value-added products. -The shift to Overseas production. -The mi
Slide 27: Sales Strategy by Products
Sales Strategy FY2011 FY2014 FY2017E (3 terms ago) (Previous term) (3 terms later) net sales ¥14,578 million ¥16,214 million ¥17,500 million Healthcare 59% Doctors' 58% 17% 58% 16% Sales by Item 16% Utility 5% 3% 7% 8% Patient 7% 10% Patient 8% Surgery 9% Surgery 3% Others 3% 2% 11% Central Japan 11
Slide 28: Net Sales and Gross Profit to Sales Ratio
Net Sales and Gross Profit to Sales Ratio (¥ million) (%) 17,500 Net sales (left) 15,000 55 Gross profit to sales (right) 12,500 10,000 45 7,500 5,000 35 2,500 0 25 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 14 14 15E 16E17E (FY) Note: Consolid
Slide 29: V Rewarding shareholder-focused policies
Ⅴ Rewarding shareholder-focused policies 28
Slide 30: Profit Reimbursement to Shareholders
Profit Reimbursement to Shareholders 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% S
Slide 31: The History of Stock Value
The History of Stock Value BPS EPS （Yen） （円） （yen） （yen） 1,100 100 FY2001 532.5 50.8 FY2002 568.3 48.0 1,000 FY2003 604.0 52.4 FY2004 663.0 60.5 900 75 FY2005 700.0 56.7 ※1 FY2006 732.4 61.0 FY2007 764.3 61.9 800 FY2008 783.9 57.1 FY2009 791.0 42.9 700 50 FY2010 827.0 67.6 FY2011 866.1 72.3 FY2012 9
Slide 32: Actual Dividends Paid
Actual Dividends Paid Total dividend Share buyback Payout ratio Total return ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.6 27.6 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 FY2005 1,117 0 56.9 56.9 FY2006 1,117 0 53.4 53.4 FY2007 1,117 0 53.1
Slide 33: Management Philosophy
Management Philosophy We will provide medical products and services of the highest quality, as the leading company to link "medical services" and "clothing." - Consistently challenging spirit to lead the industry - Achievement of contribution to society - "Respect for Harmony among People" people ar
Slide 34: 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
Slide 35: Data File
Data File First-half FY2015 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-5289-8200)>
Slide 36: 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
Slide 37: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 11/8 12/8 13/8 14/8 15/8E 14/8 15/8 Sales 14,578 15,175 15,625 16,214 16,700 6,775 6,840 (¥ million) Healthcare wear 8,675 8,769 9,039 9,440 9,700 3,914 4,011 18,000 Doctors' wear 2,306 2,483 2,566 2,674 2,800 1,064 1,046 Utility wear 865 864 796
Slide 38: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 11/8 12/8 13/8 14/8 15/8E 14/8 15/8 18,000 Sales 14,578 15,175 15,625 16,214 16,700 6,775 6,840 DC brand products 998 1,024 933 938 940 394 366 16,000 High Functional products 6,216 6,547 7,212 7,795 8,210 3,267 3,457 Standard Func
Slide 39: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 11/8 12/8 13/8 14/8 15/8E 14/8 15/8 (¥ million) Sales 14,578 15,175 15,625 16,214 16,700 6,775 6,840 18,000 East Japan 7,739 8,106 8,390 8,461 8,520 3,422 3,430 Central Japan 1,550 1,564 1,591 1,745 1,800 779 787 16,000 West Japan 5,168 5,386 5
Slide 40: 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 11/8 12/8 13/8 14/8 15/8E 10,000 50 14/8 15/8 Domestic production 4,921 5,056 4,951 5,061 4,887 2,454 2,495 Overseas production 3,174 3,441 3,550 4,017 4,095
Slide 41: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 11/8 12/8 13/8 14/8 15/8E 14/8 15/8 Net Sales 14,578 15,175 15,625 16,214 16,700 6,775 6,840 Gross profit 6,793 7,103 7,346 7,585 7,682 3,169 3,187 Sales, general, and administrative expense 2,434 2,461 2,473 2,662 2,751 1,3
Slide 42: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 11/8 12/8 13/8 14/8 15/8E 14/8 15/8 Net Sales 14,574 15,166 15,616 16,199 16,700 6,767 6,831 Gross profit 6,464 6,794 7,031 7,270 7,363 3,032 3,053 Sales, general, and administrative expenses 2,413 2,493 2,482 2,662 2,74
Slide 43: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 10/8 11/8 12/8 13/8 14/8 14/8 15/8 Profitability ROE (%) 8.4 8.5 7.8 9.7 9.5 - - ROA (%) 12.5 13.0 14.3 15.0 13.5 - - Return on sales Net income (%) 16.7 17.1 15.6 20.0 19.9 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 44: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 10/8 11/8 12/8 13/8 14/8 14/8 15/8 Profitability ROE (%) 8.4 8.6 7.8 10.3 10.1 - - ROA (%) 12.7 13.1 14.1 15.7 14.2 - - Return on sales Net income (%) 15.6 15.9 14.4 19.3 19.4 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5 0
Slide 45: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 13/8 14/8 Change(the previous year) First-half 14/8 First-half 15/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 15,625 100.0 16,21
Slide 46: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 13/8 14/8 Change(the previous year) First-half 14/8 First-half 15/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 15,616 100.0
Slide 47: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 13/8 14/8 Change(the previous year) First-half 14/8 First-half 15/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 26,247 70.8 29,589
Slide 48: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 13/8 14/8 Change(the previous year) First-half 14/8 First-half 15/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 23,325 68.8 26,5