Slide 1: Analyst Guide FY2019
ANALYST GUIDE FY2019 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) October 2019 <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 2: Overview of FY2019
Overview of FY2019 1 Sales & Income -Net Sales: ¥16,785 m -Operating Income: ¥4,918 m The Change of Business Environment 2 -Market Condition The impact of simultaneous revision of medical treatment and nursing care fees was negligible. Stable state continued. -Production Condition (Overseas) The pro
Slide 3: Agenda
Agenda I About “NAGAILEBEN” II Market Environment III Financial Review FY2019 and Forecast for FY2020 IV Management Goals V Rewarding shareholder-focused policies Copyrights Nagaileben Co.,Ltd. All rights reserved. 2
Slide 4: I About Nagaileben
I About “NAGAILEBEN” at @ NAGAILEBEN
Slide 5: Outline
Outline Over 100 years in business (Established in 1915) 1 Competitive position in medical clothing market -Approximately 60% market share -Integrated Production System in domestic medical clothing Planning, Manufacturing and Marketing - The number of shipments is -Competitive product such as extens
Slide 6: Outline: profitability, balance sheet, shareholder policies
Outline Highly profitability 46.7% 3 Change of Gross Profit to Sales (2019) 50 Strong balance sheet (%) 45 33.1% - Realization of high profitability 45.3% with radical pursuit of efficiency 40 28.6% (1990) (2010) -Gross profit to sales 46.7% (as of FY2019) 35 (1980) 39.7% -Capital-to-asset ratio 89.
Slide 7: CSR/ESG
CSR/ESG What’s NEW Respect for Customers Regional Contribution Beauty Lecture for Nurse Rental of Historic Nurse Wear Practical course in makeup and manner for nurses in Archiving historic nurse wear. medical fields. Collaboration with Shiseido. Free rental to medical institutions. Social Responsibi
Slide 8: Our Concept for SDGs
Our Concept for SDGs Social Responsibility as Corporate Citizen “Let us help the human life” Environmental Efforts Return to Society -Support medical field through our -“COMPELPACK” products. Enables hospital to reduce waste and We give back to society on the basis -Realize High-Function and High- b
Slide 9: II Market Environment
II Market Environment at @ NAGAILEBEN
Slide 10: Market Environment Topics
Market Environment Topics Market condition is unstable -Medical treatment and nursing care fees will be revised due to raising consumption tax rate. (effective Oct. 2019). Medical treatment fees: Service: +0.41%,Drug price: -0.48%(adaption of consumption tax:+0.48%, adaption of market price:-0.97%),
Slide 11: Revisions to medical treatment and care service fees
Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 2 +1.9 +1.5 +1.6 +1.4 +1.2 +0.7 1 +0.4 +0.6 +0.5 +0.6+0.5 +0.4 +0.4 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 0.5 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲ 1.7 ▲ 1.8 ▲ 2.0 ▲1.9 ▲ 2.4 ▲2
Slide 12: The number of Nursing Staff and Care workers
The number of Nursing Staff and Care workers (10,000 persons) 250 Nursing Staff Care Workers 200 150 100 183 177 166 187 160 163 183 154 147 163 143 171 140 157 129 133 150 151 123 137 143 123 117 131 114 136 50 119 127 96 120 109 72 85 55 64 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
Slide 13: Supply and Estimated Future Need
Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 250 forecast(maximum) forecast(minimum) 206 200 Actual 150 245 100 196 183 166 50 0 2016 2025 2016 2025 Actual record: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care Service ,
Slide 14: Financial Review of FY2019 and Forecast for FY2020
II Financial Review of FY2019 and Forecast for FY2020 13
Slide 15: Management Tasks and Status
Management Tasks and Status • Capture clusters of needs Marketing strategy to in the healthcare wear market increase sales • Increase peripheral business in products for patients and surgery • Cultivate overseas markets - Introduce our business model into East Asia from Japan • Operation of New Sewi
Slide 16: Financial Review of FY2019 and Forecast for FY2020
Financial Review of FY2019 and Forecast for FY2020 FY2019 FY2020 (millions of yen,%) (Results) % Change (Forecast) % Change Net sales 16,785 -2.1 17,400 +3.7 Gross profit 7,840 -2.6 8,130 +3.7 Sales, general, and administrative expenses 2,922 +4.9 2,963 +1.4 Operating income 4,918 -6.6 5,167 +5.1 Re
Slide 17: Financial Review: Gross profit
Financial Review of FY2019 and Forecast for FY2020 FY2019 FY2020 (millions of yen,%) (Results) % Change (Forecast) % Change Net sales 16,785 -2.1 17,400 +3.7 Gross profit 7,840 -2.6 8,130 +3.7 Sales, general, and administrative expenses 2,922 +4.9 2,963 +1.4 Operating income 4,918 -6.6 5,167 +5.1 Re
Slide 18: Financial Review: SG&A and capital expenditure
Financial Review of FY2019 and Forecast for FY2020 FY2019 FY2020 (millions of yen,%) (Results) % Change (Forecast) % Change Net sales 16,785 -2.1 17,400 +3.7 Gross profit 7,840 -2.6 8,130 +3.7 Sales, general, and administrative expenses 2,922 +4.9 2,963 +1.4 Operating income 4,918 -6.6 5,167 +5.1 Re
Slide 19: 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 25,157 +1,227 +5.1 Notes and accounts receivable 5,340 +524 +10.9 Cash and cash equivalents up ¥ 1,227 million (including electronica
Slide 20: Segments by Item
Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Copyrights Nagaileben Co.,Ltd. All rights reserved. 19
Slide 21: Sales by Item
Sales by Item FY2019 FY2020 Doctors' 15.9% Utility Year-on-year change Results Forecast 2.6% Total sales -2.1% +3.7% Patient 12.1% Healthcare wear -2.9% +3.3% Doctors' wear +0.1% +2.9% Surgery Utility wear -11.6% -9.3% 9.5% Patient wear +3.5% +10.6% Healthcare 1.0% Shoes Surgery wear -2.8% +3.4% 57.
Slide 22: Sales by Region
Sales by Region Central Japan 9.9% FY2019 FY2020 West Japan Year-on-year change Results Forecast 35.9% Total sales -2.1% +3.7% East Japan -1.8% +2.0% Central Japan -7.3% +8.2% West Japan -0.6％ +4.4% 1.1% 53.0% Overseas Overseas -11.5% +15.8% East Japan FY2019(Results) FY2020(Forecast) Sales went bel
Slide 23: Product Strategy
Product Strategy Sales by Product Year-on-year change FY2019 FY2020E (¥ million) 20,000 Total sales -2.1% +3.7% 18,000 High-End products +0.4% +4.3% 16,000 High-End High Value-Added 14,000 +2.4% +4.5% products 12,000 High Value- 10,000 Added Value-Added -8.6% +3.4% 8,000 Value-Added products 6,000 M
Slide 24: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 55 Composition FY2019 FY2020E Purchased products Domestic production 49.4% 49.2% 7,500 50 Overseas production 49.2% 49.5% Overseas production Purchased products 1.4% 1.3% 5,000 45 Domestic production 2,500 40 Ratio of overseas p
Slide 25: IV Management Goals
IV Management Goals @ NAGAILEBEN 24
Slide 26: 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-End and High Value-Added products. -Cultivate Overseas Markets. Profit Strategy -Driving the strategy of Higher Quality and Value-Added products.
Slide 27: Sales Strategy: Products
Sales Strategy FY2016 FY2019 FY2022E (3 terms ago) (Previous term) (3 terms later) net sales ¥16,537 million ¥16,785 million ¥18,400 million Healthcare Doctors' 58% 56% 15% 58% 16% 16% 2% Utility 4% 3% Item Patient Patient 10% 11% 14% Surgery 9% Surgery 3% 10% Others 2% 12% Central Japan 10% 1% 10%
Slide 28: Trend of Business Records
Trend of Business Records (¥ 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 17 18 19 20E21E22E (FY) Note: Consolidat
Slide 29: V Rewarding shareholder-focused policies
V Rewarding shareholder -focused policies 28
Slide 30: Reimbursement Policy
Reimbursement Policy 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% Share buyback - A
Slide 31: The History of Stock Value
The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,300 ※1 FY2009: Accrued pension fund withdrawal 125 FY2001 532.5 50.8 12.5 payment loss ¥1.04b. A dotted line is when there was not outbreak. FY2002 568.3 48.0 12.5 1,200 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 1,100 100 FY2
Slide 32: 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 2004/2/24 Stock split 2-for-1 FY2005 1,117 0 56.9 56.9 FY2006 1,117 0
Slide 33: 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 34: 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 35: Data File
Data File FY2019 (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 36: 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 37: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 18/8 19/8 Sales 16,537 17,017 17,144 16,785 17,400 7,419 7,233 (¥ million) Healthcare wear 9,674 9,940 9,974 9,681 10,005 4,265 4,116 20,000 Doctors' wear 2,654 2,681 2,671 2,673 2,750 1,092 1,084 Utility wear 601 557 49
Slide 38: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 16/8 17/8 18/8 19/8 20/8E 18/8 19/8 20,000 Sales 16,537 17,017 17,144 16,777 17,400 7,419 7,233 High-End products 1,104 1,191 1,269 1,274 1,330 523 540 18,000 High Value-Added products 8,336 8,612 8,759 8,969 9,370 3,864 3,859 Valu
Slide 39: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 18/8 19/8 (¥ million) Sales 16,537 17,017 17,144 16,785 17,400 7,419 7,233 20,000 East Japan 8,539 9,007 9,065 8,898 9,080 3,829 3,764 18,000 Central Japan 1,717 1,756 1,795 1,664 1,800 811 705 West Japan 6,080 6,068 6
Slide 40: 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 16/8 17/8 18/8 19/8 20/8E 10,000 55 18/8 19/8 Domestic production 4,771 4,676 4,678 4,584 4,700 2,356 2,333 Overseas production 4,419 4,447 4,625 4,566 4,729
Slide 41: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 18/8 19/8 Net Sales 16,537 17,017 17,144 16,785 17,400 7,419 7,233 Gross profit 7,735 8,086 8,050 7,840 8,130 3,469 3,373 Sales, general, and administrative expenses 2,784 2,843 2,786 2,922 2,963 1,
Slide 42: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 16/8 17/8 18/8 19/8 20/8E 18/8 19/8 Net Sales 16,535 17,013 17,140 16,777 17,400 7,413 7,230 Gross profit 7,416 7,826 7,835 7,694 7,946 3,377 3,299 Sales, general, and administrative expenses 2,775 2,831 2,779 2,901 2,93
Slide 43: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 15/8 16/8 17/8 18/8 19/8 18/8 19/8 Profitability ROE (%) 9.3 9.4 10.3 9.8 8.8 - - ROA (%) 13.0 12.7 13.4 12.8 11.5 - - Return on sales Net income (%) 20.0 19.7 21.6 21.4 20.5 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 44: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 15/8 16/8 17/8 18/8 19/8 18/8 19/8 Profitability ROE (%) 9.8 10.0 11.0 10.5 9.5 - - ROA (%) 13.7 13.4 14.2 13.6 12.4 - - Return on sales Net income (%) 19.4 19.2 21.2 21.1 20.5 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.4
Slide 45: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 18/8 First-half 19/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,144 100.0 16,78
Slide 46: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 18/8 First-half 19/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,140 100.0
Slide 47: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 18/8 First-half 19/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 33,220 77.9 35,054
Slide 48: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 18/8 19/8 Change(the previous year) First-half 18/8 First-half 19/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 30,010 76.6 31,8
Slide 49: 13. The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 15/8 16/8 17/8 18/8 19/8 Full Year 16,700 16,500 17,000 17,500 17,600 First-half 6,950 6,850 7,140 7,350 7,463 Second-half 9,750 9,650 9,860 10,150 10,137 15,000 25 [Result] (¥ million) Full Year