Nagaileben Co., Ltd. · TSE:7447
Nagaileben — FY2013 Earnings Presentation
46 slides from Nagaileben's earnings presentation, October 2013
Slide 1: Analyst Guide FY2013
ANALYST GUIDE FY2013 October 2013 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 2: Overview FY2013
Overview FY2013 Achieved the Highest Sales and Operating Profit. 1 -5th consecutive years of growth in sales and profit - Sales: ¥15,625 m - Operating profit: ¥4,873 m The Change of Business Environment 2 -The recent sharp depreciation of the yen -Escalating material prices, rising sewing costs Temp
Slide 3: Agenda
Agenda Outline I Financial Review FY2013 II Market Environment III Forecast for FY2014 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 670,000 1,470,000 1,330,000 -Wide field, planning, manufacturing people people people and
Slide 5: I Financial Review FY2013
I Financial Review FY2013 4
Slide 6: Financial Highlights <Statements of Income>
Financial Highlights <Statements of Income> (millions of yen,%) FY2013 % Change To Forecast % * Composition % Composition % Change Net sales 15,625 +3.0 +1.1 +100.0 - Gross profit 7,346 +3.4 +0.3 +47.0 +0.2 Sales, general, and administrative expenses 2,473 +0.5 -0.6 +15.8 -0.4 Operating income 4,873
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 17,456 +828 +5.0 Cash and cash equivalents ¥828million Notes and accounts receivable 4,622 +402 +9.5 -Cash flows from operating acti
Slide 8: Segments by item
Segments by item Healthcare Doctors' Utility Patient Surgery Shoes wear wear wear wear wear Segments by item 7
Slide 9: Sales by Item
Sales by Item Doctors' 16.4% Utility [Healthcare wear] 5.1% -Catching renewal contracts smoothly and spreading new Patient concept products in steady market, sales reached the first 8.2% ¥9 billions. Surgery [Doctors' wear] 9.5% -As new products being received well from the market, Healthcare Shoes
Slide 10: Sales by Region
Sales by Region Central Japan 10.2% [East Japan] West Japan - Though sales in FY2013 was planed as same as FY2012, because sales in FY2012 was big growth due 35.3% to the impact of the Tohoku-Pacific Ocean Earthquake, catching big contracts, sales exceeded the previous year. [Central Japan] -Though
Slide 11: II Market Environment
TI Market Environment 10
Slide 12: Market Environment Topics
Market Environment Topics Medical treatment fees will revise.(effective Apr. 2014) -Fees will be revised upward as same as consumption tax raise. -Being not obvious, fees will be stable level. Forcast of the number of nursing and care staff in 2015 -Nursing staff 1.65m people Increased by 2.57% annu
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 Total mark
Slide 14: Market Environment
Market Environment Revisions to medical treatment fees （％） 5 5.0 4.8 Overall 4 Pharmacy 3.7 3.3 3.4 3.4 Treatment 3 2.3 2 1.9 1.7 1.5 2.6 2.8 1 0.7 1.4 0.4 1.6 1.4 1.0 0.4 0.2 0.8 0.8 0.8 0.5 0.0 0 0.0 0.1 -1.0 0.2 -0.8 -1.3 -1.3 -1.4 -1.4 -1.4 1 -1.0 -1.3 -1.2 -1.5 -2.7 -3.2 2 -1.7 -1.9 -2.0 -2.4 -
Slide 15: Market Environment
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: Market Environment
Market Environment (10,000 persons) 300 Supply and estimated future need for care workers forecast(maximum) 249 250 forecast(minimum) Actual 200 176 150 237 100 167 140 149 134 133 119 124 128 113 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: III Forecast for FY2014
If Forecast for FY2014 16
Slide 18: 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 Production strategy •Strengthen ties with material makers and trade firms. to ensure a steady
Slide 19: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2014E % Change (FY2013) Composition % Change Net sales 16,000 +2.4 － Gross profit 7,520 +2.4 +0.0 Sales, general, and administrative expenses 2,640 +6.8 +0.7 Operating income 4,880 +0.1 -0.7 Recurring income 4,923 -9.1 -3.9 Net income 3,030 -2.8 -1
Slide 20: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2013 FY2014E 18,000 Sales +3.0% +2.4% 16,000 Shoes/Others 14,000 Healthcare wear +3.1% +2.1% Surgery wear 12,000 Doctors' wear +3.3% +3.2% 10,000 Patient wear Utility wear -7.9% -7.1% 8,000 Utility wear Patient wear +4.1% +4.4
Slide 21: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2013 FY2014E 18,000 Total sales +3.0% +2.4% 16,000 14,000 Overseas East Japan +3.5% +1.7% 12,000 Central Japan +1.7% +2.4% West Japan 10,000 West Japan +2.3% +3.5% 8,000 Central Japan Overseas +13.6% +4.2% 6,000 4,000 East
Slide 22: Product Strategy
Product Strategy Sales by Product (¥ million) Year-on-year change FY2013 FY2014E 18,000 Sales +3.0% +2.4% 16,000 DC brand products -8.9% +0.7% DC brand 14,000 products High Functional products +10.1% +6.2% 12,000 High Functional Standard Functional -1.0% -0.5% 10,000 products products 8,000 Standard
Slide 23: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2013 FY2014E Purchased products Domestic production 56.7 54.8 7,500 45 Overseas production 40.7 42.6 Overseas production Purchased products 2.6 2.6 5,000 40 Domestic production 2,500 35 Ratio of overseas product
Slide 24: IV Management Goals
IV Management Goals 23
Slide 25: Strategy for Business Environment
Strategy for Business Environment Business Environment The number of Doctor, Dentist, Pharmacist is expected to grow steadily -Nursing staff 1.65m people increased by 2.57% annually -Care staff 1.73m people increased by 5.10% annually *Forecast of the number of nursing and care staff in 2015 Busines
Slide 26: Sales Strategy
Sales Strategy FY2010 FY2013 FY2016E (3 terms ago) (Previous term) (3 terms later) net sales ¥14,076 million ¥15,625 million ¥16,800 million Healthcare 59% Doctors' 58% 16% 57% 17% Sales by Item 16% Utility 5% 4% 7% 8% Patient 7% 9% Patient 8% Surgery 10% Surgery 3% Others 3% 2% 11% Central Japan 10
Slide 27: 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 13 14E 15E 16E (FY) Note: Consolidat
Slide 28: V Rewarding shareholder-focused policies
Ⅴ Rewarding shareholder-focused policies 27
Slide 29: 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 30: Actual Dividends Paid
Actual Dividends Paid Adjusted Total Share Total return DPS DPS Payout ratio dividend buyback ratio （yen） （yen）* （non-c, ％） （Million yen） （Million yen） （non-c, ％） FY2001 25 12.5 475 0 27.6 27.6 FY2002 25 12.5 475 0 29.3 29.3 FY2003 30 15.0 530 1,697 29.7 124.6 FY2004 40 20.0 744 0 36.5 36.5 FY2005 6
Slide 31: 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 32: 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 33: Data File
Data File FY2013 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 34: 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 35: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 10/8 11/8 12/8 13/8 14/8E 12/8 13/8 Sales 14,076 14,578 15,175 15,625 16,000 6,186 6,463 (¥ million) Healthcare wear 8,328 8,675 8,769 9,039 9,230 3,552 3,725 18,000 Doctors' wear 2,226 2,306 2,483 2,566 2,650 919 982 Utility wear 935 865 864 796
Slide 36: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 10/8 11/8 12/8 13/8 14/8E 12/8 13/8 18,000 Sales 14,076 14,578 15,175 15,625 16,000 6,186 6,463 DC brand products 974 998 1,024 933 940 426 406 16,000 High Functional products 5,612 6,216 6,547 7,212 7,660 2,620 3,009 Standard Func
Slide 37: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 10/8 11/8 12/8 13/8 14/8E 12/8 13/8 (¥ million) Sales 14,076 14,578 15,175 15,625 16,000 6,186 6,463 18,000 East Japan 7,776 7,739 8,106 8,390 8,530 3,198 3,423 Central Japan 1,447 1,550 1,564 1,591 1,630 638 623 16,000 West Japan 4,735 5,168 5
Slide 38: 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 10/8 11/8 12/8 13/8 14/8E 10,000 45 12/8 13/8 Domestic production 4,561 4,921 5,056 4,951 4,739 2,527 2,494 Overseas production 2,698 3,174 3,441 3,550 3,686
Slide 39: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 10/8 11/8 12/8 13/8 14/8E 12/8 13/8 Net Sales 14,076 14,578 15,175 15,625 16,000 6,186 6,463 Gross profit 6,388 6,793 7,103 7,346 7,520 2,902 3,034 Sales, general, and administrative expense 2,383 2,434 2,461 2,473 2,640 1,3
Slide 40: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 10/8 11/8 12/8 13/8 14/8E 12/8 13/8 Net Sales 14,072 14,574 15,166 15,616 16,000 6,183 6,458 Gross profit 6,134 6,464 6,794 7,031 7,203 2,750 2,899 Sales, general, and administrative expenses 2,369 2,413 2,493 2,482 2,63
Slide 41: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 09/8 10/8 11/8 12/8 13/8 12/8 13/8 Profitability ROE (%) 5.4 8.4 8.5 7.8 9.7 - - ROA (%) 11.5 12.5 13.0 14.3 15.0 - - Return on sales Net income (%) 11.1 16.7 17.1 15.6 20.0 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 42: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 09/8 10/8 11/8 12/8 13/8 12/8 13/8 Profitability ROE (%) 7.2 8.4 8.6 7.8 10.3 - - ROA (%) 12.0 12.7 13.1 14.1 15.7 - - Return on sales Net income (%) 13.5 15.6 15.9 14.4 19.3 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5 0.
Slide 43: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 12/8 13/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 15,175 100.0 15,62
Slide 44: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 12/8 13/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 15,166 100.0
Slide 45: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 12/8 13/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 25,195 72.0 26,247
Slide 46: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 12/8 13/8 Change(the previous year) First-half 12/8 First-half 13/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 22,444 69.8 23,3