Cellsource Co., Ltd. · TSE:4880
Cellsource — Q2 FY10/2025 Earnings Presentation
41 slides from Cellsource's earnings presentation, Jun 12, 2025
Slide 1: Earnings Presentation Q2 FY10/2025
Earnings Presentation Q2 FY10/2025 CellSource Co., Ltd (TSE Prime: 4880)
Slide 2: Table of Contents
Table of Contents Financial Results and Progress in Q2 FY10/2025 Upfront Investment Progress for Realizing CellSource Vision Other Updates
Slide 3: Financial Results and Progress in Q2 FY10/2025
Financial Results and Progress in Q2 FY10/2025
Slide 4: Net Sales, Operating Profit and Profit
Net Sales Operating Profit Profit JPY 1.82 billion JPY 17 million JPY 11 million (-18.3% YoY) (-93.9% YoY) (-96.3% YoY) Blood-derived product Operating Profit ASC contract contract processing Margin processing orders orders 0.9% 9,577 726 (-11.7pp YoY) (-1.8% YoY) (-8.9% YoY) Financial results are p
Slide 5: "Year 0" Commitments and Progress
“Year 0” Commitments and Progress Steadily working on “Year 0” commitments outlined in the CellSource Vision Aim to release a medium-term management plan by the fiscal year-end 1 Commitments Progress Optimize ● Concentrate management resources in focus ● Reviewed SG&A expenses for back-office manage
Slide 6: Earnings Forecast for FY10/2025: Progress
Earnings Forecast for FY10/2025: Progress Cumulative sales through Q2 reached roughly 90% of our forecast, but although we reined in SG&A expenses, cumulative operating profit was 56% of the projected level due to the sales shortfall [Millions of yen] Q2 Forecast vs. Actual Contract processing servi
Slide 7: Q2 FY10/2025 Performance Summary
Q2 FY10/2025 Performance Summary Sales recovered, primarily in contract processing services, leading to QoQ growth in sales and profit FY10/2025 FY10/2025 FY10/2024 FY10/2025 Achievement l Sales: Excluding medical device sales, [Millions of yen] QoQ YoY Forecast sales increased across all services.
Slide 8: Sales by Service Breakdown
Overall sales increased QoQ on the back of rebounding sales for contract processing services, with sales also rising in medical institution support services and cosmetic sales and other [Millions of yen] Cosmetic sales and other Cum.Q2 FY10/2024 Cum.Q2 FY10/2025 YoY Medical device sales Total Millio
Slide 9: Monthly Contract Processing Orders for Blood-derived Products by Department
Monthly Contract Processing Orders for Blood-derived Products by Department (No. of Cosmetics Contract processing orders remained on a recovery track after hitting bottom in December orders) OB&GYN Self-funded orthopedics*1 (see p. 36, “Daily Average Number of Contract Processing Orders”) 50% 2,500
Slide 10: YoY Change in KPIs Comprising Blood-derived Product Processing Orders
YoY Change in KPIs Comprising the No. of Blood-derived Product Processing Orders Orders from medical institutions specializing in self-funded treatment were down YoY, but orders from hybrid medical institutions increased due to sales initiatives focused on key clinics Specializing in Hybrid*2 Overal
Slide 11: Issues Facing Self-funded Treatment Clinics and Countermeasures
Identifying Issues Facing Medical Institutions Specializing in Self-funded Treatment and Countermeasures Implementing various initiatives addressing management issues that we have identified Issues identified Initiatives Highly volatile • Fluctuations in advertising effects have ● Strengthening pati
Slide 12: YoY Change in Processing Orders from Hybrid Clinics
YoY Change in Blood-Derived Product Processing Orders from Hybrid Clinics Succeeded in growing orders from target medical institutions, in line with sales strategy YoY change in order Group1: Target medical numbers*1 institutions Clinics that increase orders exponentially through concentrated alloca
Slide 13: Gross Profit and Operating Profit
Gross Profit and Operating Profit Gross profit and operating profit both increased QoQ thanks to higher sales and a review of SG&A cost management [Millions of yen] Gross profit [Millions of yen] Operating profit 1,200 Operating profit Operating profit margin 100% Operating profit Operating profit m
Slide 14: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin Gross profit margin improved, largely due to increased sales from contract processing services Gross profit Overview Change in sales mix • Sales mix deteriorated slightly owing to higher sales -0.5pt weighting for cosmetic sales and other Gross profit margin • Increas
Slide 15: Breakdown of YoY Decline in Q2 Gross Profit
Breakdown of YoY Decline in Q2 Gross Profit Q2 gross profit (cumulative) fell YoY due to decreases in exosome-related sales and sales to medical institutions specializing in self-funded treatment in the contract processing services segment, and [Millions of yen] snapback decline in raw material sale
Slide 16: SG&A Expenses
SG&A Expenses SG&A expenses fell QoQ as cost review continued, reducing management-team stock-based compensation and rent expenses while allocating sufficient funds to operating expenses, etc. [Millions of yen] Other Advertising expenses + sales promotion expenses R&D expenses Cum.Q2 FY10/2024 Cum.Q
Slide 17: Progress of the SG&A Expense Review
Progress of the SG&A Expense Review Reallocation of SG&A expenses under way, in line with the initial plan Decrease in annual budget*1 Increase in annual budget*1 Business FY10/2025 SG&A plan Decrease in Increase in actual result*2 actual result*2 Concentrate management resources here, as Orthopedic
Slide 18: Rent Expenses
Rent Expenses Decision made to fully vacate an old production facility by end-FY10/2025 Rents expected to fall further in FY10/2026 as overlapping of facilities will be completely eliminated Cost of sales + SG&A expenses Cost of sales SG&A expenses [Millions of yen] [Millions of yen] [Millions of ye
Slide 19: Changes in Rent Expenses
Changes in Rent Expenses The office and production facility relocation under way since Q2 FY10/2023 should be completed by end-FY10/2025 We expect a ¥21mn/Q reduction in rents versus the peak Cost of sales + SG&A expenses [Millions of yen] ¥21mn/Q Peak reduction in rents Complete elimination of Now
Slide 20: Balance Sheet
Balance Sheet With no significant change in the balance sheet in Q2, we maintained a sound financial position Cash and deposits Current liabilit ies Other current asset Non-current liabilities Non-current assets Net assets [Millions of yen] 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Financial resul
Slide 21: Upfront Investment Progress for Realizing CellSource Vision
Upfront Investment Progress for Realizing CellSource Vision
Slide 22: "Year 0" Commitments and Progress
“Year 0” Commitments and Progress Steadily working on “Year 0” commitments outlined in the CellSource Vision Aim to release a medium-term management plan by the fiscal year-end 1 Commitments Progress Optimize ● Concentrate management resources in focus ● Reviewed SG&A expenses for back-office manage
Slide 23: Timeline Toward the Release of the Medium-Term Management Plan
Timeline Toward the Release of the Medium-Term Management Plan In the current fiscal year, positioned as “Year 0,” we are working to develop a standardized, reproducible business model “template”, and will incorporate a scale-out scenario in part of the medium-term management plan Positioning of FY1
Slide 24: Progress in "Year 0": Initial PoC Evaluations with NTT Docomo
Progress in “Year 0”: Began Initial PoC Evaluations with NTT Docomo Second stage of knee health information dissemination to d Healthcare app users, verifying effectiveness of offline pathway to partner medical institutions specializing in self-funded treatment Conveying “Health Mission” to d Health
Slide 25: Progress in "Year 0": Pilot Tests for the Medical Fitness Business
Progress in “Year 0”: Pilot Tests for the Medical Fitness Business PoC facilities have started offering exercise programs following the Balance Method TM developed by CellSource What is the Balance MethodTM? PoC evaluation of exercise programs in full swing Develop exercise programs Conduct PoC eval
Slide 26: Other Updates
Other Updates
Slide 27: Transfer of Patent Application Related to Animal Regenerative Medicine
Transfer of Patent Application Related to Animal Regenerative Medicine Transfer of patent application related to animal regenerative medicine, with related gain recorded in Q2 Accelerating the optimization of management resource allocation toward realizing the “CellSource Vision” • Subject of transf
Slide 28: Event to raise knee health awareness in the local community
Event to raise knee health awareness in the local community Building a model for raising community awareness through collaboration between industry, government, and the medical sector • On 14 June, we plan to hold an event to raise awareness of knee health in Niigata Prefecture • This event is part
Slide 29: PFC-FD service introduced at Hokkaido University Hospital
PFC-FD service introduced at Hokkaido University Hospital’s Department of Orthopedic Surgery PFC-FD service introduced at Hokkaido University Hospital’s Department of Orthopedic Surgery, commencing in June 2025 • We expect scientific evidence surrounding PFC-FD to accumulate further with this introd
Slide 30: International Patent Application Filed for PFC-FD (2.0)
International Patent Application Filed for PFC-FD (2.0) New Technology for Achieving Both Storage Stability and Quality of PFC-FD (2.0) • Filed an international patent application under the Patent Cooperation Treaty (PCT) for a new technology that enhances both the extraction efficiency of growth fa
Slide 31: KPIs Appendix
KPIs Appendix
Slide 32: Business KPI Highlights for Q2 FY10/2025
Business KPI Highlights for Q2 FY10/2025 Number of partner Blood-derived product Adipose-derived stem cell contract processing orders contract processing orders medical institutions (cumulative) (cumulative) 2,017 9,577 726 (+152 YoY) (-8.9% YoY) (-1.8% YoY)
Slide 33: Number of Partner Medical Institutions
Number of Partner Medical Institutions*1 No. of partner medical institutions End Q2 FY10/2025 2,017 (+ 152 YoY) *1: Excludes the number of closed medical institutions specializing in self-funded treatment
Slide 34: Number of Contract Processing Orders for Blood-derived Products
Number of Contract Processing Orders for Blood-derived Products Q2 FY10/2025 4,941 orders (-5.0% YoY) Cumulative: 104,592 orders As of FY10/2024, the number of contract processing orders is calculated as of when the order is fulfilled (previously as of when the order is received). As the impact of t
Slide 35: Number of Contract Processing Orders for Adipose-derived Stem Cells (ASC)
Number of Contract Processing Orders for Adipose-derived Stem Cells (ASC) Q2 FY10/2025 381 orders (+3.5% YoY) Cumulative: 9,945 orders As of FY10/2024, the number of contract processing orders is calculated as of when the order is fulfilled (previously as of when the order is received). As the impac
Slide 36: Daily Average Number of Contract Processing Orders
Daily Average Number of Contract Processing Orders Daily average number of contract processing orders is calculated based on preliminary number of processing orders.
Slide 37: YoY Change in Processing Orders from Hybrid Clinics: As of end-May 2025
YoY Change in Blood-Derived Product Processing Orders from Hybrid Clinics: As of end-May 2025 YoY change in order numbers*1 Group1: Target medical 5,000 institutions Clinics that increase orders exponentially through concentrated allocation of 4,500 sales resources Group2: [No. of orders] 4,000 Clin
Slide 38: KPIs Comprising the No. of Blood-derived Product Processing Orders
KPIs Comprising the No. of Blood-derived Product Processing Orders Q3/FY2023 Q3/FY2024 FY10/2024 FY10/2025 Q2/FY2024 Q2/FY2025 Latest twelve Latest twelve Q2 Q3 Q4 Q1 Q2 months (LTM) months (LTM) Number of partner medical institutions (quarter-end) 16 14 15 15 15 16 15 Active ratio*3 100.0% 100.0% 1
Slide 39: Quarterly Financial Data FY10/2023 to FY10/2025
FY10/2023 FY10/2024 FY10/2025 [Millions of yen] Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Sales 1,059 1,111 1,235 1,104 1,173 1,054 1,113 1,013 849 971 Contract processing 743 735 873 793 664 671 712 694 555 639 services Medical institutions support services (formerly consulting services) 113 109 134 77 56
Slide 40: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The materials and information provided in this presentation contain so-called "forward-looking statements." These statements are based on current expectations, forecasts, and assumptions accompanying risks, and they may involve uncertainties that
Slide 41: CellSource
CellSource