J Frontier Co., Ltd. · TSE:2934
J Frontier — Q3 FY2022 Earnings Presentation
28 slides from J Frontier's earnings presentation, Apr 14, 2022
Slide 1: Presentation Material on Financial Results for Third Quarter of FY Ending May 2022
Presentation Material on Financial Results for Third Quarter of FY Ending May 2022 April 14, 2022 J Frontier Co., Ltd. Securities code: 2934
Slide 2: Consolidated Financial Results for Third Quarter of FY Ending May 2022
Consolidated Financial Results for Third Quarter of FY Ending May 2022
Slide 3: The Group's Business Portfolio
The Group’s Business Portfolio Business segment Business Business details ◼ Telemedicine and online drug administration guidance app SOKUYAKU ◼ Referral of medical human Medical Care resources Sales D2C ◼ D2C sales of (e-commerce sales) medications Bofutsushosan Hachimijiogan Healthcare D2C ◼ D2C sa
Slide 4: Summary of Group Consolidated Financial Results
Summary of Group Consolidated Financial Results Net sales: 7,449 million yen Operating income: 575 million yen Group (progress rate: 72%） (progress rate: 68%） Consolidated ➢ The Medical Care Sales segment drove overall results. Progress also made on Financial Results securing new customers, chiefly
Slide 5: Progress of Group Consolidated Financial Results
Progress of Group Consolidated Financial Results Group Consolidated Both net sales and operating income are projected to reach annual Financial Results planned levels ◼ Since Customers Acquisition Cost (CAC) were up especially in the field of TV ads in 1Q, we strategically controlled advertising exp
Slide 6: Summary of Consolidated Statements of Profit and Loss
Summary of Consolidated Statements of Profit and Loss ◼ Compared to the annual plan, the progress rate on consolidated net sales is 72％, and the progress rate on consolidated operating income is 68％. ◼ The Medical Care Sales business (with a progress rate for net sales of 86%) drove overall results.
Slide 7: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary ◼ Consolidated goodwill was recorded (planned for amortization over 10 years) as a result of adding four subsidiaries and accepting the transfer of one business. ◼ Funds raised through the IPO were invested in advertising the SOKUYAKU and D2C businesses. (Milion ye
Slide 8: SOKUYAKU Strategy and Strengths
Medical Care Sales Business: SOKUYAKU SOKUYAKU Strategy and Strengths ◼ Overall policy ➢ Continuing to strengthen and enhance services to accelerate digital transformation of medical facilities Telemedicine, Website and appointment Advertising operation, support Referral of medical human online drug
Slide 9: Progress on Business Administration Indicators (KPIs)
Medical Care Sales Business: SOKUYAKU Progress on Business Administration Indicators (KPIs) ◼ Making progress on each of the major KPIs of partner hospitals and pharmacies and registered users at a faster pace than planned. ➢ The planned number of partner hospitals and pharmacies was achieved four m
Slide 10: Progress of financial results: D2C sales of medications
Medical Care Sales Business: D2C sales of medications Progress of financial results ◼ Concentrating advertising expenses for traditional Chinese herbal medicines and class-one over-the-counter medications, which have high rates of securing customers and LTV1 ◼ The net sales progress rate is 87% vs.
Slide 11: Progress of financial results: D2C sales of health foods
Healthcare Sales Business: D2C sales of health foods Progress of financial results ◼ In light of the fact that the 3Q is the off season for dieting, advertising expenses were concentrated strategically on D2C sales of medications, which have high rates of securing customers and LTV, and as a result,
Slide 12: Progress on business administration indicators (KPIs)
Medical Care Sales/Healthcare Sales Businesses: D2C sales of medications, health foods, and other products Progress on business administration indicators (KPIs) ◼ The progress rate for the KPI of new subscribers was 91% through 3Q. ◼ We advertised strategically on D2C sales of medications (e.g., tra
Slide 13: Earnings structure
Medical Care Sales/Healthcare Sales Businesses: D2C sales of medications, health foods, and other products Earnings structure ◼ Contributions to sales and operating income from new subscribers acquired through 3Q are expected to result in 4Q and beyond. Attracting customers Subscription Termination
Slide 14: Structure for strict review of advertising
Medical Care Sales/Healthcare Sales Businesses: D2C sales of medications, health foods, and other products Structure for strict review of advertising ◼ Laws and regulations related to D2C advertising have become stricter in recent years due to amendments to the Pharmaceuticals and Medical Devices Ac
Slide 15: Progress on business administration indicators (KPIs)/topics
Healthcare Marketing Business: B2B Progress on business administration indicators (KPIs)/topics ◼ Rate of progress on number of trading partner companies (KPI): 96％ ➢ Realizing efficient new-customer development through inside sales ◼ This is leading to securing new spot transactions (advertising, w
Slide 16: Recent Initiatives
Recent Initiatives
Slide 17: Enhancement of the Management Structure
Enhancement of the Management Structure ◼ Former Q’sai Co., Ltd. President and CEO Kambe appointed COO We will leverage Mr. Kambe's knowledge and experience in D2C, marketing, and as a board member to further enhance business development and accelerate organizational growth. Comments from Mr. Kambe
Slide 18: Aiming to be the "Uber" of the pharmacy business
Medical Care Sales Business: SOKUYAKU Prescription Medication Same-day Delivery Network Aiming to be the “Uber” of the pharmacy business Expanding delivery areas Continuing to study new service areas Areas where preparations are complete centered on major ordinance-designated Sapporo cities such as
Slide 19: New service: Impulse buying while using the online drug administration guidance
Medical Care Sales Business: SOKUYAKU New service: Impulse buying while using the online drug administration guidance ◼ Realizing a migration to e-commerce for drugstores and pharmacies Examples of use by users Choosing to use the impulse buying service Choosing a drugstore Payment and product deliv
Slide 20: New service: SOKUYAKU Online Pharmacy
Medical Care Sales Business: SOKUYAKU New service: SOKUYAKU Online Pharmacy Increase in channels for online drug administration guidance due to deregulation Before (through March 31, 2022) After deregulation (April 1, 2022 and later) Online drug Online drug Telemedicine Telemedicine administration g
Slide 21: Ex-Partners made a subsidiary
Ex-Partners made a subsidiary 1. Company name: Ex-Partners Co., Ltd. (ExP) 2. Representative: Osamu Shimizu 3. Established: December 28, 2005 4. Lines of business: ・ Operation of various portal sites, including the “Hospita”, hospital search site and the “Meiilog”, referral site for renowned doctors
Slide 22: Participation in the Osaka Smart Senior Life Demonstration Project Promotion Council
Participation in the Osaka Smart Senior Life Demonstration Project Promotion Council About the Osaka Smart Senior Life Demonstration Project ➢ This project aims to improve the quality of life (QoL) for residents throughout Osaka Prefecture, particularly by delivering solutions for issues faced by se
Slide 23: Future Strategies and Policies
Future Strategies and Policies
Slide 24: Current lines of business
Current lines of business ◼ Our businesses cover the entire human health cycle. ➢ The SOKUYAKU Biz covers the period of illness, while the D2C Biz covers the period of no symptoms. ➢ Our B2B Biz provides indirect support for each other business. B2B SOKUYAKU Business Business No symptoms Consultatio
Slide 25: Our Future Business Model Goals
Our Future Business Model Goals Aiming to help solve severe social challenges spurred by the aging population 1 Rising healthcare and other social security costs Keeping healthcare costs down through lengthening healthy lifespans Shortage of healthcare human resources, Developing more efficient and
Slide 26: Medium to Long-Term Action Plan
Medium to Long-Term Action Plan Three initiatives to achieve net sales of 100 billion yen at an accelerated pace 100 million yen 1,200 SOKUYAKU healthcare economy Net sales: 1,000 3 Providing various services using SOKUYAKU as a healthcare infrastructure 100 billion yen 800 2 Further growth through
Slide 27: Promoting Strategic M&As: M&A map
Promoting Strategic M&As: M&A map In order to establish the SOKUYAKU healthcare economy, we will accelerate M&As to enhance services related to the healthcare cycle. We will move forward with selection of target domains and companies based on the following M&A map. Product planning symptoms D2C for
Slide 28: Reference: Revenue model
Medical Care Sales Business: SOKUYAKU Reference: Revenue model Service Charges structure1 2C (for patients) Maximizing revenues through the promotion of telemedicine, online drug administration guidance, and medication delivery ⚫ Telemedicine usage charges ➢ 150 yen/use ⚫ Online drug administration