Nagaileben Co., Ltd. · TSE:7447
Nagaileben — H1 FY2017 Earnings Presentation
50 slides from Nagaileben's earnings presentation, April 2017
Slide 1: Analyst Guide First-half FY2017
ANALYST GUIDE First-half FY2017 April 2017 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 2: I About Nagaileben
I About “NAGAILEBEN” 1
Slide 3: Outline
Outline 100th year in business 1 Establish competitive position in medical clothing market -Approximately 60% market share -Wide field, planning, manufacturing and in domestic medical clothing marketing - The number of shipments is over 6 -Competitive product such as extensive products, million clot
Slide 4: Profitability, balance sheet and shareholder policies
Highly profitability and strong balance sheet 3 - Realization of high profitability with radical pursuit of efficiency (%) 50 45 Change of Gross profit to sales 33.1% 46.8% (2016) -Gross profit to sales 46.8% (as of FY2016) 40 (1990) 45.3% 28.6% (2010) -Capital-to-asset ratio 88.8% 35 (1980) 39.7% -
Slide 5: CSR/ESG
CSR/ESG Support for Women Regional Contribution Women principal domains: Medical and Sewing Medical Kids Project Products of Nagaileben are mainly for women, who work as a nursing staff Miffy’s Visits to Hospitals or a care worker. At production sites of For interchange between hospitals and local N
Slide 6: Agenda
Agenda I About “NAGAILEBEN” II Financial Review First-half FY2017 III Market Environment IV Forecast for FY2017 V Management Goals VI Rewarding shareholder-focused policies Notes on this material This material includes forecasts for the future. These forecasts are based on the judgment of the Compan
Slide 7: Overview First-half FY2017
Overview First-half FY2017 Sales & Income 1 Net Sales and Operating income recorded highest. Sales: ¥7,149 m Operating income: ¥1,932 m The Change of Business Environment 2 - Market Condition The impact of Medical treatment fees revision was negligible. - Production Condition: (In Japan) The sewing
Slide 8: II Financial Review First-half FY2017
II Financial Review First-half FY2017 7
Slide 9: Financial Highlights <Statements of Income>
Financial Highlights <Statements of Income> (millions of yen,%) First-half FY2017 % Change To Forecast % Composition % Composition % Change Net sales 7,149 +3.0 +0.1 100.0 － Gross profit 3,405 +7.3 +1.7 47.6 +1.8 Sales, general, and administrative expenses 1,473 +0.6 -2.1 20.6 -0.6 Operating income
Slide 10: 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 18,868 +3,468 +22.5 Cash and cash equivalents up ¥3,468million Notes and accounts receivable 4,897 +136 +2.9 -Cash flows from operat
Slide 11: Segments by item
Segments by item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear 10
Slide 12: Sales by Item
Sales by Item Doctors' 15.1% Utility 3.4% [Healthcare wear] Patient 12.2% -Sales was doing well. Catching renewal and new contracts are steadily, by the market vitalization with new products in recent years. Surgery 9.5% [Doctors' wear] Healthcare -Sales exceeded the previous year. High-functional a
Slide 13: Sales by Region
Sales by Region Central Japan 10.6% [East Japan] West Japan - Sales reached highest record. by catching renewal and 37.4% new contracts steadily. [Central Japan] -Market size was not large and there was the influence by the size of contracts. Overseas East Japan 1.3% [West Japan] 50.7% -In FY2016, t
Slide 14: III Market Environment
III Market Environment 13
Slide 15: Market Environment Topics
Market Environment Topics Stable market condition continues -The impact of revising medical treatment fees is negligible. - The number of Nursing Staff and Care workers is increasing gently. Rising sewing costs Overseas: The cost of labor charge around China and Southeast Asia raised. In Japan: Labo
Slide 16: 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 Ban lifted
Slide 17: Revisions to medical treatment and care service fees
Market Environment Revisions to medical treatment and care Service fees （％） 5 Service: +0.49% 4 Drug price: -1.33% +2.8 +3.0 Consumption 3 +2.6 tax increase 2 +1.0 +1.2 1 +0.8 +0.6 +0.4 +0.2 +0.2 +0.0 +0.1 0 -1 ▲0.3 ▲0.1 ▲0.8 ▲0.8 -2 ▲1.3 ▲2.3 ▲2.4 ▲2.3 -3 Medical Care Service ▲3.2 Home-1.42%, -4 Fa
Slide 18: Supply and Demand of Nursing Staff
Market Environment Supply and Demand of Nursing Staff (Source: the Ministry of Health, Labour and Welfare (December 2010)) (10,000 persons) Actual(2014) 175 Change to actual number as 1,600 k Demand from the 7th Outlook. persons Forecast Actual Decreased number of nursing staff on both supply 150 an
Slide 19: Supply and estimated future need for care workers
Market Environment (10,000 persons) 300 Supply and estimated future need for care workers Forecast 253 250 Actual 200 150 25 3 100 1 6 9 17 7 15 6 14 1 1 4 8 12 4 1 2 8 11 3 1 1 9 50 100 89 66 76 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '25 Since the number of track records are s
Slide 20: Supply and estimated future need
Market Environment Supply and estimated future need (10,000 persons) 300 Nursing Staff care workers 253 250 forecast(maximum) forecast(minimum) 206 200 Actual 150 253 100 196 177 157 50 0 2013 2025 2013 2025 Actual record: Japanese Nursing Associations’ statistical data Actual record: Ministry of He
Slide 21: IV Forecast for FY2017
IV Forecast for FY2017 20
Slide 22: Management Tasks and Status
Management Tasks and Status •Capture clusters of needs Marketing strategy in the healthcare wear market to boost sales •Increase peripheral business in products for patients and surgery •Develop new markets •Strengthen domestic production (wage increase) Production strategy to •Strengthen ties with
Slide 23: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2017E % Change (FY2015) Composition % Change Net sales 17,000 +2.8 － Gross profit 7,945 +2.7 -0.1 Sales, general, and administrative expenses 2,839 +2.0 -0.1 Operating income 5,106 +3.1 +0.1 Recurring income 5,150 +4.3 +0.4 Net income 3,528 +8.2 +1
Slide 24: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2016 FY2017E 18,000 16,000 Sales +2.4% +2.8% Shoes/Others 14,000 Healthcare wear +2.6% +2.5% Surgery wear 12,000 Doctors' wear +2.0% +1.7% 10,000 Patient wear Utility wear -10.3% -15.2% 8,000 Utility wear Patient wear +11.1% +
Slide 25: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2016 FY2017E 18,000 16,000 Total sales +2.4% +2.8% 14,000 Overseas East Japan +2.2% +1.7% 12,000 Central Japan -3.2% +4.8% West Japan 10,000 West Japan +4.1% +3.6% 8,000 Central Japan Overseas +14.1% +9.5% 6,000 4,000 East
Slide 26: Product Strategy
Product Strategy Sales by Product (¥ million) Year-on-year change FY2016 FY2017E 18,000 Sales 2.4% +2.8% 16,000 DC brand products -14.8% -8.4% DC brand 14,000 products High Functional products +7.8% +4.5% 12,000 High Functional Standard Functional -0.9% +3.2% 10,000 products products 8,000 Standard
Slide 27: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2016 FY2017E Purchased products Domestic production 51.2% 50.7% 7,500 45 Overseas production 47.4% 47.9% Overseas production Purchased products 1.4% 1.4% 5,000 40 Domestic production 2,500 35 Ratio of overseas p
Slide 28: V Management Goals
V Management Goals 27
Slide 29: 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 30: Sales Strategy by Products
Sales Strategy FY2013 FY2016 FY2019E (3 terms ago) (Previous term) (3 terms later) net sales ¥15,625 million ¥16,537 million ¥18,000 million Healthcare Doctors' 58% 57% 16% 58% 16% 16% Sales by Item Utility 2% 5% 4% Patient 8% 9% Patient 12% 10% Surgery 3% Surgery 10% Others 3% 2% 11% Central Japan
Slide 31: Net Sales and Gross Profit to Sales Ratio
Net Sales and Gross Profit to Sales Ratio (¥ million) (%) 17,500 Net sales (left) 55 15,000 Gross profit to sales (right) 12,500 45 10,000 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 14 15 16 17E18E19E (FY) Note: Con
Slide 32: VI Rewarding shareholder-focused policies
ⅤI Rewarding shareholder-focused policies 31
Slide 33: 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 34: The History of Stock Value
The History of Stock Value BPS EPS DPS （Yen） （円） （yen） （yen） （yen） 1,100 100 FY2001 532.5 50.8 12.5 FY2002 568.3 48.0 12.5 1,000 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 FY2005 700.0 56.7 30.0 900 75 FY2006 732.4 61.0 30.0 ※1 FY2007 764.3 61.9 30.0 800 FY2008 783.9 57.1 30.0 FY2009 791.0 42.9 3
Slide 35: 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 36: 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 37: Data File
Data File First-half FY2017 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 38: 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 39: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 13/8 14/8 15/8 16/8 17/8E 16/8 17/8 Sales 15,625 16,214 16,150 16,537 17,000 6,938 7,149 (¥ million) Healthcare wear 9,039 9,440 9,429 9,674 9,920 4,021 4,110 18,000 Doctors' wear 2,566 2,674 2,604 2,654 2,700 1,067 1,075 Utility wear 796 743 670
Slide 40: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 13/8 14/8 15/8 16/8 17/8E 16/8 17/8 18,000 Sales 15,625 16,214 16,150 16,537 17,000 6,938 7,149 DC brand products 933 938 846 720 660 305 264 16,000 High Functional products 7,212 7,795 8,090 8,720 9,110 3,716 3,831 Standard Functi
Slide 41: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 13/8 14/8 15/8 16/8 17/8E 16/8 17/8 (¥ million) Sales 15,625 16,214 16,150 16,537 17,000 6,938 7,149 18,000 East Japan 8,390 8,461 8,357 8,539 8,680 3,406 3,625 Central Japan 1,591 1,745 1,774 1,717 1,800 717 757 16,000 West Japan 5,508 5,839 5
Slide 42: 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 13/8 14/8 15/8 16/8 17/8E 10,000 50 16/8 17/8 Domestic production 4,951 5,061 4,901 4,771 4,785 2,430 2,380 Overseas production 3,550 4,017 4,215 4,419 4,522
Slide 43: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 13/8 14/8 15/8 16/8 17/8E 16/8 17/8 Net Sales 15,625 16,214 16,150 16,537 17,000 6,938 7,149 Gross profit 7,346 7,585 7,532 7,735 7,945 3,174 3,405 Sales, general, and administrative expense 2,473 2,662 2,719 2,784 2,839 1,4
Slide 44: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 13/8 14/8 15/8 16/8 17/8E 16/8 17/8 Net Sales 15,616 16,199 16,141 16,535 17,000 6,937 7,148 Gross profit 7,031 7,270 7,218 7,416 7,615 3,034 3,272 Sales, general, and administrative expenses 2,482 2,662 2,718 2,775 2,82
Slide 45: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 12/8 13/8 14/8 15/8 16/8 16/8 17/8 Profitability ROE (%) 7.8 9.7 9.5 9.3 9.4 - - ROA (%) 14.3 15.0 13.5 13.0 12.7 - - Return on sales Net income (%) 15.6 20.0 19.9 20.0 19.7 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 46: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 12/8 13/8 14/8 15/8 16/8 16/8 17/8 Profitability ROE (%) 7.8 10.3 10.1 9.8 10.0 - - ROA (%) 14.1 15.7 14.2 13.7 13.4 - - Return on sales Net income (%) 14.4 19.3 19.4 19.4 19.2 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5
Slide 47: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 15/8 16/8 Change(the previous year) First-half 16/8 First-half 17/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,150 100.0 16,53
Slide 48: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 15/8 16/8 Change(the previous year) First-half 16/8 First-half 17/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,141 100.0
Slide 49: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 15/8 16/8 Change(the previous year) First-half 16/8 First-half 17/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 29,711 76.2 29,083
Slide 50: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 15/8 16/8 Change(the previous year) First-half 16/8 First-half 17/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 26,494 74.6 25,8