H.u.group Holdings, Inc. · TSE:4544
H.u.group — H1 FY2024 Earnings Presentation
25 slides from H.u.group's earnings presentation, Nov 8, 2024
Slide 1: Financial Results for the First Half of FY2024
Financial Results for The First Half of FY2024 (Ended September 30, 2024) Nov. 8, 2024 (TSE: 4544)
Slide 2: Notes & references
Notes & references: * The financial information in this document follows Japanese GAAP, with the exception for EBITDA (Operating Profit + Depreciation + Goodwill Impairment), which is a non-GAAP measure. * In some cases, “Net profit/loss attributable to shareholders of the parent company” may be abb
Slide 3: Executive Summary
Executive Summary • Sales grew by 3.4 billion yen and operating profit by 2.5 billion yen The year-on-year Group • Implemented business selection and concentration across the group (see slide 19, 20) 1 • Base business recovery led to an 8% year-on-year increase in sales • Profitability improvement p
Slide 4: Financial Results for the First Half of FY2024
Financial Results for The First Half of FY2024 3
Slide 5: Consolidated Results for FY2024 H1
Consolidated Results for FY2024 H1 (¥ billion) FY2023 H1 FY2024 H1 Profit Profit Change Results Results ratio ratio Net sales 116.54 119.99 +3.44 +3.0% LTS 72.29 76.52 +4.23 +5.8% IVD 30.22 29.02 -1.20 -4.0% HS 14.03 14.45 +0.42 +3.0% 1 Operating profit/loss -1.57 -1.3% 0.96 0.8% +2.53 ー LTS -6.19 -
Slide 6: Consolidated Net Sales Changes
Consolidated Net Sales Changes (¥ billion) 130 +4.23 -1.20 +0.42 119.99 120 1 116.54 3.56 1 6.91 Decrease in COVID-19 tests: -48.5% 110 116.43 109.63 Growth in base business: +6.2% 0 100 FY23 LTS IVD HS FY24 H1 H1 1. Net sales related to COVID-19 testing 5
Slide 7: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes (¥ billion) 2 +3.30 -1.33 +0.24 0.96 1 +0.32 -1.57 0 (-) COVID-19-related profit decreased in line with sales -1 (+) Profit increase driven by sales growth (+) Positive Impact from profit improvement measures (+) Reduced costs related to AkirunoCube -2 FY23 LTS
Slide 8: Quarterly Performance Trend
Quarterly Performance Trend Net sales EBITDA, OP (¥ billion) Net sales related to (¥ billion) Net sales EBITDA Operating Profit 90 COVID-19 testing 45 75.1 70.2 68.8 65.3 66.9 63.5 64.1 23.2 59.9 59.9 61.0 59.4 59.5 60.5 60 18.7 12.3 15.0 11.4 56.6 3.2 2.1 30 12.9 11.8 4.0 2.5 1.5 6.4 2.9 57.8 57.0
Slide 9: Consolidated Ordinary Profit/Loss & Net Profit/Loss
Consolidated Ordinary Profit/Loss & Net Profit/Loss Ordinary Profit/Loss Net Profit/Loss (¥ billion) (¥ billion) -1.57 -1.26 -1.82 -0.82 0.0 0.0 -0.5 -0.5 -1.0 -1.0 -1.5 -1.5 -2.0 -2.0 FY23 H1 FY24 H1 FY23 H1 FY24 H1 Major non-operating factors Major factors affected to net profit ・Foreign exchange
Slide 10: LTS Quarterly Results YoY Comparison
LTS Quarterly Results YoY Comparison Net sales EBITDA, OP (¥ billion) (¥ billion) (¥ billion) 50 20 FY23 FY24 Change H1 H1 37.7 37.7 38.8 Net sales 72.29 76.52 +4.23 +5.8% 36.2 36.8 1.3 0.7 1.1 Off-site 58.23 62.36 +4.14 +7.1% 1.0 1.8 6.1 6.1 6.3 FMS/Branch 12.32 12.35 +0.03 +0.2% 6.2 5.9 Others 1.7
Slide 11: LTS: Trend in the Testing Volume (since April 2020)
LTS: Trend in the Testing Volume (since April 2020) • Testing volume is increasing with COVID-19 changed to a Category 5 Infectious Disease and the end of dedicated hospital bed allocations • Baseline growth continues in the post-COVID-19 era The trend assumes the tests-per-day at SRL in FY2019 to b
Slide 12: IVD Quarterly Results YoY Comparison
IVD Quarterly Results YoY Comparison Net sales (¥ billion) EBITDA, OP (¥ billion) (¥ billion) 24 16 FY23 FY24 Change H1 H1 Net sales 30.22 29.02 -1.20 -4.0% Lumipulse 12.87 12.39 -0.48 -3.7% 16.9 Japan 11.32 9.74 -1.58 -14.0% 16.2 Overseas 1.56 2.66 +1.10 +70.8% 15.5 2.7 14.4 14.6 CDMO etc. 12.61 12
Slide 13: IVD: Update on Neuro Field of Lumipulse
IVD: Update on Neuro Field of Lumipulse Sales increase in Neuro Field FDA Submission • Sales growth remains strong, • Submitted FDA regulatory filling for approximately 2.4 times higher than pTau 217/β-Amyloid 1-42 Plasma first half of FY2023 Ratio in September 2024 Neuro-related sales trends • This
Slide 14: HS Quarterly Results YoY Comparison
HS Quarterly Results YoY Comparison Net sales EBITDA, OP (¥ billion) (¥ billion) (¥ billion) 10 4 FY23 FY24 Change H1 H1 Net sales 14.03 14.45 +0.42 +3.0% 7.2 7.3 7.1 Sterilization 10.91 11.34 +0.43 +3.9% 7.1 6.9 Home-visiting, 3.12 3.11 -0.01 -0.3% 1.6 welfare 1.6 1.6 1.5 1.6 Ratio EBITDA 1.36 9.7%
Slide 15: Cash and Deposits / Interest-bearing Debts
Cash and Deposits / Interest-bearing Debts (¥ billion) FY2023 FY2024 Cash and deposits Short-term debts 47.0 Cash and 37.1 40.4 39.9 30.9 Bonds due within deposits Interest- one year bearing Long-term debts debts Interest-bearing 10.0 10.0 10.0 Lease debts debts 29.0 29.0 10.0 29.0 29.0 Bonds payabl
Slide 16: Analysis of Consolidated Cash Flows (FY2024 H1)
Analysis of Consolidated Cash Flows (FY2024 H1) (¥ billion) As of March 31, 2024 As of September 30, 2024 1 1 -42.0 -8.3 (Increase in net interest-bearing debts) -50.3 Free cash flows -3.1 Investment cash Operating cash flows +6.7 Others -5.2 flows -9.8 Operating capital -1.0 -Decrease in Decrease i
Slide 17: Operating Cash Flow Changes
Operating Cash Flow Changes • The sub-total for operating cash flow before income taxes paid/refunded increased by 11.6 billion yen 2023 Apr.-Sep. 2024 Apr.-Sep. 60 ＋¥11.6 B (¥ billion) 50 47.5 -1.1 44.2 +9.4 -7.3 +7.7 -3.9 39.9 -9.8 +10.7 40 -6.1 36.4 30 0 20 as of Apr. 1, 2023 Operating CF Income
Slide 18: FY2024 Full-Year Forecast and Strategic Progress
FY2024 Full-Year Forecast and Strategic Progress 17
Slide 19: Update on FY2024 Full-year Forecast
Update on FY2024 Full-year Forecast • OP/EBITDA forecast remains unchanged due to some uncertainties • Ordinary and net profit forecasts revised due to foreign exchange losses and affiliate liquidation losses FY2024 (¥ billion) FY2023 Initial Current vs vs results forecast forecast previous year ini
Slide 20: Selection & Concentration of Business (1/2)
Selection & Concentration of Business (1/2) • Withdrawing from China LTS Business (the joint venture with Ping An, also called Ping An JV) • Non-operating Expense: Equity in losses of Ping An JV will be eliminated from the second half of the fiscal year • Extraordinary loss: Approximately 0.8 billio
Slide 21: Selection & Concentration of Business (2/2)
Selection & Concentration of Business (2/2) 1 • LTS: CRO business withdrawal (Transfer of SRL Medisearch ) Minor PL impact • IVD: Selection & concentration of overseas Lumipulse business Clinical trial business transition (including CRO) ~Early 2010s ~2020 ~2024 Market expanded Change in business en
Slide 22: Timeline for Completing the Transfer to AkirunoCube
Timeline for Completing the Transfer to AkirunoCube • The completion of the system transfer has been extended to the end of March 2025, due to additional time needed for bacteriological testing system transfer • Esoteric testing system: completed on 10/24, Reporting system: transfer started on 11/6,
Slide 23: Appendix
Appendix 22
Slide 24: AkirunoCube Costs and Effects
AkirunoCube Costs and Effects • Starting from Q1 of FY2024, the AkirunoCube-related figures will include system-related costs and other impacts associated with AkirunoCube • For the full-year forecast, we expect an increase in one-time costs and a decrease in depreciation expenses due to the revised
Slide 25: Contact information
【Contact information】 IR/SR Department Email : ir@hugp.com Disclaimer regarding forward-looking statement: The performance forecast provided in this document is prepared by the management based on currently available information and various hypotheses and ideas including significant risks or uncerta
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