Nagaileben Co., Ltd. · TSE:7447
Nagaileben — H1 FY2022 Earnings Presentation
51 slides from Nagaileben's earnings presentation, April 2022
Slide 1: Analyst Guide April 2022
Our Message to Medical Workers We sincerely would like to express deep appreciation for your devoted works on the frontiers against COVID-19. We will never forget your courage. (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) ANALYST GUIDE April 2022 <Contact for informati
Slide 2: Summary
Summary Net Sales Overview Net Sales: ¥ 7,817 m Although it is expected to be a reaction from the first half of FY2021, which was a significant increase of 14.4% y/y, sales landed at -3.1 y/y. Excluding special factors, sales increased by 1.2% y/y. Revisions to Performance Forecasts of FY2022 Revise
Slide 3: Agenda Index
Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3 p Ⅱ Business Environment ・・ ・・・ 9 p and Strategy Ⅲ Financial Review of ・ ・ ・・15 p First-half FY2022 and Forecast for FY2022 Ⅳ Overview and Measures ・ ・・・21 p Ⅴ Management Goals ・・・・・・ 26 p VI Rewarding Shareholder- ・・・ 29 p Focused Policies 2 © Nagaileben C
Slide 4: About Nagaileben
Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.
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
Slide 6: Outline: High Profitability, Strong Balance Sheet, Shareholder Policies
Outline 3 Highly Profitability Strong Balance Sheet - Realization of high profitability (%) 50 Change of Gross Profit 売上総利益率 の推移 to Sales 45.9% (2021) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 45.9% 40 28.6% (1990) 45.3% (2010) -Capital-to-asset ratio 90.5% 35 (1980) 39.7% -
Slide 7: Solving Social Issues Through Our Business
SDGs Solving Social Issues Through Our Business 2050 Low-Carbon Social Responsibility Environmental -Assist hospitals to reduce Efforts waste and be more economical. -Regional contribution -Consideration to environmental Regional through production base load of business. -Support hospital facilities
Slide 8: CSR Our Efforts Based on "Let us help the human life"
CSR Our Efforts Based on “Let us help the human life” What’s NEW Online Beauty Lecture for Nurse Online Beauty Lecture Beauty Advice Movie Beauty practice lectures that connected hospitals and i Monthly delivery of movies that advises nurses on nstructors online and were conducted via the screen the
Slide 9: CSR Our Efforts Based on Social Responsibility
CSR Our Efforts Based on Social Responsibility Environmental Efforts Social Responsibility Reduction of Environmental Load Through -Donation Infection Prevention Products to Medical Institutions. Business Many of our products use materials derived from exhaustible -Cheering message to medical worker
Slide 10: Market Environment
II Market Environment 9 © Nagaileben Co.,Ltd.
Slide 11: Topics
Topics Confusion of Market Still Continues - Continuation of the tightness of the medical care provision system due to Covid-19 - Medical treatment fees will be revised (effective April 2022). Total -0.94% Service +0.43% Drug price -1.37% - Improving the treatment of nursing staff and long-term care
Slide 12: 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 +1.6 +0.7 +1.5 +1.4 +1.2 +0.6 +0.6 1 +0.7 +0.5 +0.4 +0.6+0.5 +0.4 +0.4 +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 ▲
Slide 13: Supply and Estimated Future Need
Environment Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 250 forecast(maximum) 245 forecast(minimum) Actual 202 200 150 245 100 168 188 186 50 0 2019 2025 2020 2025 Source: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care S
Slide 14: Business Plan: Current Status of Marketing Strategy
Business Plan Current Status of Marketing Strategy Capture needs with strategy for value-added products in core market Marketing Strategy To Increase share of peripheral market Increase Sales Cultivate overseas markets by expanding our business model in Japan Core Market Peripheral Market Overseas M
Slide 15: Business Plan: Management Tasks and Status
Business Plan Management Tasks and Status Strengthen domestic production -Strengthen ability to respond quick response and small-rot multi-production Production Strategy To -Rising manufacturing cost due to increase in labor cost Ensure a Steady Supply Shift to overseas production from domestic. Uti
Slide 16: Financial Review of First-half FY2022 and Forecast for FY2022
II Financial Review of First-half FY2022 and Forecast for FY2022 15 © Nagaileben Co.,Ltd.
Slide 17: Topics: Background of Sales
Topics Background of Sales 1 In the first half of FY2021, sales increased significantly by 14.4% y/y due to the delivery of out-of-period contracts caused by COVID-19, the acquisition of new large-scale contracts, special demand for COVID-19, and temporary sales to the Ministry of Health, Labor and
Slide 18: Consolidated Results: Financial Review of First-half FY2022
Consolidated Results Financial Review of First-half FY2022 and Forecast for FY2022 FY2022 FY2022 First-half To Full Change (millions of yen,%) % Change % Change (Results) Forecast % (Forecast) (Initial Forecast) Net sales 7,817 +1.3 -3.1 17,700 － +0.8 Gross profit 3,491 +1.0 -6.1 7,894 -1.0 -2.0 Sal
Slide 19: Consolidated Results: Gross Profit
Consolidated Results Financial Review of First-half FY2022 and Forecast for FY2022 FY2022 FY2022 First-half To Full Change (millions of yen,%) % Change % Change (Results) Forecast % (Forecast) (Initial Forecast) Net sales 7,817 +1.3 -3.1 17,700 － +0.8 Gross profit 3,491 +1.0 -6.1 7,894 -1.0 -2.0 Sal
Slide 20: Consolidated Results: SG&A, Net Income, Capex
Consolidated Results Financial Review of First-half FY2022 and Forecast for FY2022 FY2022 FY2022 First-half To Full Change (millions of yen,%) % Change % Change (Results) Forecast % (Forecast) (Initial Forecast) Net sales 7,817 +1.3 -3.1 17,700 － +0.8 Gross profit 3,491 +1.0 -6.1 7,894 -1.0 -2.0 Sal
Slide 21: Financial Review of FY2022 (Balance Sheet)
Consolidated Results Financial Review of FY2022 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 25,818 +1,797 +7.5 Notes and accounts receivable 5,263 -352 -6.7 Cash and cash equivalents Up 1,797 millio
Slide 22: Overview and Measures
IV Overview and Measures 21 © Nagaileben Co.,Ltd.
Slide 23: Market Classification
Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Shoes Patient wear Doctors' wear Utility wear Infection prevention Surgery wear 22 © Nagaileben Co.,Ltd.
Slide 24: Overview and Measures: Market
Overview and Measures Market y/y change FY2021 FY2022 Composition (First-half (%) First-half Full First-half Fulll(E) FY2022) Total sales +14.4 +2.9 -3.1 +0.8 Utility Doctors' 14.3% 1.9% Core Market +14.2 +0.7 -6.8 -1.6 Patient Healthcare wear +7.8 +8.2 -0.4 +1.0 17.8% Doctors' wear +5.7 +6.1 +0.5 +
Slide 25: Overview and Measures: Product
Overview and Measures Product y/y change FY2021 FY2022E (%) Sales by Product Total sales +2.9 +0.8 High-End (¥ million) products +13.6 +5.1 20,000 High Value-Added 18,000 MHLW products +7.0 +9.5 16,000 Value-Added 14,000 High-End products +6.5 -7.8 12,000 High Value- Mass products +1.1 -4.5 10,000 A
Slide 26: Overview and Measures: Production
Overview and Measures Production Composition Changes in Production Status (%) FY2021 FY2022E (Non-Consolidated) Domestic (¥ million) (%) production 48.1 47.1 10,000 55 Overseas Purchased production 50.7 51.9 products 7,500 50 Purchased Overseas products 1.2 1.0 production 5,000 45 Domestic productio
Slide 27: Management Goals
V Management Goals 26 © Nagaileben Co.,Ltd.
Slide 28: Strategy: Business Direction
Strategy Business Direction Market -Capture Needs in Core Market -Increase Share of Peripheral Market -Cultivate Overseas Markets Product -Develop and Sale of High-end And High Value-added Products. -Shift to Overseas Production. Production -Strengthen Ability To Respond Quick Response and Small-rot
Slide 29: Strategy: Business Direction Targets FY2024E
Strategy Business Direction FY2018 FY2021 FY2024E (3 terms ago) (Previous term) (3 terms later) net sales ¥17,144 million ¥17,563 million ¥18,500 million Core 75% 72% 78% Market Peripheral 21% 24% 26% Overseas 1% 2% 1% High Value-Added 53% 55% 51% Product Value-Added 36% 34% 33% Mass 5% High-End 7%
Slide 30: Strategy: Trend of Business Records
Strategy Trend of Business Records (¥ million) （％） 20,000 60 17,500 Net sales (left) 55 Gross profit to sales (right) 15,000 50 12,500 45 10,000 40 7,500 35 5,000 2,500 30 0 25 80 86 92 98 04 10 16 22 23 24 22E E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preceding years re
Slide 31: Rewarding Shareholder-focused Policies
VI Rewarding shareholder -focused policies 30 © Nagaileben Co.,Ltd.
Slide 32: 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
Slide 33: The History of Stock Value
Reward The History of Stock Value （Yen） （Yen） BPS EPS DPS （yen） （yen） （yen） 1,400 125 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 line is when there was not outbreak. 568.3 48.0 12.5 1,300 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 1,200
Slide 34: Actual Dividends Paid
Reward Actual Dividends Paid Total Total Share Payout 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
Slide 35: 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 /
Slide 36: 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 37: Data File
Data File First-half FY2022 (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200)>
Slide 38: Index
Index 1 … Sales by Market 2 … Sales by Item 3 … Sales by Product 4 … Production Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9・10 … Statements of Income (Consolidated・Non-Cons
Slide 39: Sales by Market
1. Sales by Market (¥ million) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 18,000 21/8 22/8 Sales 17,144 16,785 17,066 17,563 17,700 8,069 7,817 16,000 Core Market 13,358 12,995 13,115 13,207 12,990 6,000 5,591 Peripheral Market 3,572 3,601 3,750 4,152 4,500 1,991 2,101 14,000 Ove
Slide 40: Sales by Item
2. Sales by Item (¥ million) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 18,000 21/8 22/8 Sales 17,144 16,785 17,066 17,563 17,700 8,069 7,817 16,000 Healthcare wear 9,859 9,577 8,831 9,560 9,660 4,201 4,186 Doctors' wear 2,644 2,652 2,451 2,600 2,650 1,109 1,114 14,000 Utility we
Slide 41: Sales by Product
3. Sales by Product (¥ million) First-half First-half (¥ million) FY 18/8 19/8 20/8 21/8 22/8E 21/8 22/8 18,000 Sales 17,144 16,785 17,066 17,563 17,700 8,069 7,817 High-End products 1,269 1,274 1,072 1,218 1,280 513 543 16,000 High Value-Added products 8,759 8,969 8,692 9,302 10,190 4,097 4,528 Val
Slide 42: Production Strategy (Non-Consolidated)
4. Production Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 18/8 19/8 20/8 21/8 22/8E 10,000 55 21/8 22/8 Domestic production 4,678 4,584 4,743 4,581 4,678 2,376 2,555 Overseas production 4,625 4,566 4,775 4,824 5,155 2,362 2,566 Purchased products 136 130 128 110 1
Slide 43: Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 21/8 22/8 Net Sales 17,144 16,785 17,066 17,563 17,700 8,069 7,817 Gross profit 8,050 7,840 7,810 8,058 7,894 3,718 3,491 Sales, general, and administrative expenses 2,786 2,922 2,872 2,846 2,880 1,
Slide 44: Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 21/8 22/8 Net Sales 17,140 16,777 17,061 17,552 17,700 8,063 7,813 Gross profit 7,835 7,694 7,650 7,875 7,699 3,631 3,416 Sales, general, and administrative expenses 2,779 2,901 2,868 2,849 2,90
Slide 45: Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 17/8 18/8 19/8 20/8 21/8 21/8 22/8 Profitability ROE (%) 10.3 9.8 8.8 8.7 8.9 - - ROA (%) 13.4 12.8 11.5 11.3 11.6 - - Return on sales Net income (%) 21.6 21.4 20.5 20.4 20.8 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 46: Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 17/8 18/8 19/8 20/8 21/8 21/8 228 Profitability ROE (%) 11.0 10.5 9.5 9.2 9.4 - - ROA (%) 14.2 13.6 12.4 12.0 12.3 - - Return on sales Net income (%) 21.2 21.1 20.5 20.0 20.4 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.4 0.4 0.4 0.
Slide 47: Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,066 100.0 17,56
Slide 48: Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,061 100.0
Slide 49: Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,936 80.0 37,322
Slide 50: Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 32,741 79.0 33,9
Slide 51: The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 18/8 19/8 20/8 21/8 22/8 Full Year 17,500 17,600 17,400 17,300 17,700 First-half 7,350 7,463 7,482 7,655 7,719 Second-half 10,150 10,137 9,918 9,645 9,980 15,000 25 [Result] (¥ million) Full Year