H.U.Group Holdings, Inc. · TSE:4544
H.U.Group — H1 FY2023 Earnings Presentation
22 slides from H.U.Group's earnings presentation, Nov 9, 2023
Slide 1: Financial Results for the First Half of FY2023
Financial Results for The First Half of FY2023 (Ended Sep. 30, 2023) November 9, 2023 （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 + Amortization of goodwill), which is a non-GAAP measure. * in some cases, “Net Profit attributable to shareholders of the parent company” may be abb
Slide 3: Financial Results for the First Half of FY2023
Financial Results for The First Half of FY2023 2
Slide 4: Consolidated Results for FY2023 H1
Consolidated Results for FY2023 H1 (\ billion) FY2022 H1 FY2023 H1 Profit Profit Variance Results Results ratio ratio Net sales 134.1 116.5 -17.54 -13.1% LTS 85.0 72.3 -12.75 -15.0% IVD 35.2 30.2 -5.00 -14.2% HS 13.8 14.0 +0.21 +1.5% 1 Operating profit/loss 17.7 13.2% -1.6 -1.3% -19.27 ー LTS 2.9 3.4
Slide 5: Consolidated Net Sales Changes
Consolidated Net Sales Changes (\ billion) 140 134.1 -12.75 -5.00 116.5 1 120 27.3 +0.21 1 6.9 Decrease in COVID-19 tests: -75% 100 106.8 Growth in base business: +3% 109.6 80 0 FY22 LTS IVD HS FY23 H1 H1 4 1. Net sales related to COVID-19 testing
Slide 6: Consolidated Operating Profit Changes
Consolidated Operating Profit Changes (\ billion) (＋) Efficiency effect of profitability improvement 20 (－) Profit decrease due to decrease in COVID-19-related tests 17.7 -9.12 (－) Marginal profit decrease due to increase in raw material costs, etc. 15 (－) Profit decrease due to decrease in Covid-19
Slide 7: Consolidated Ordinary Profit/Loss & Net Profit/Loss
Consolidated Ordinary Profit/Loss & Net Profit/Loss Ordinary Profit or Loss Net Profit or Loss (\ billion) (\ billion) 20 17.8 20 15.6 15 15 10 10 5 5 -1.6 -1.8 0 0 -5 FY22 FY23 -5 FY22 FY23 H1 H1 H1 H1 Major non-operating factors Major extraordinary factors Foreign exchange gains \1.10 B Gain o
Slide 8: Quarterly Performance Trend
Quarterly Performance Trend Net sales EBITDA, OP (\ billion) Net sales related to (\ billion) Net sales EBITDA Operating Profit COVID-19 testing 90 45 75.1 70.2 68.8 66.9 62.5 61.9 63.5 64.1 65.3 23.2 59.9 56.6 59.9 60 54.7 18.7 11.8 12.3 15.0 11.4 4.0 30 9.5 12.2 12.9 6.4 2.9 43.9 6.2 53.0 53.0 53.
Slide 9: LTS
LTS Quarterly Results YoY Comparison Net sales EBITDA, OP (\ billion) (\ billion) (\ billion) 60 18 FY22 FY23 Variance H1 H1 Net sales 85.0 72.3 -12.75 -15.0% 41.7 39.7 Off-site 64.9 58.2 -6.64 -10.2% 38.4 36.2 40 1.6 2.0 36.1 12 FMS/Branch 17.3 12.3 -5.02 -28.9% 7.3 2.1 Others 2.8 1.7 -1.08 -38.3%
Slide 10: IVD
IVD Quarterly Results YoY Comparison Net sales EBITDA, OP (\ billion) (\ billion) (\ billion) 24 20 FY22 FY23 Variance 20.2 20.4 H1 H1 Net sales 35.2 30.2 -5.00 -14.2% 3.5 4.0 16.9 Lumipulse Japan 17.9 16.0 12.9 11.3 -5.02 -4.69 -28.1% -29.3% 14.4 2.7 Overseas 1.9 1.6 -0.33 -17.5% 6.0 6.2 13.4 CDMO
Slide 11: HS
HS Quarterly Results YoY Comparison Net sales EBITDA, OP (\ billion) (\ billion) (\ billion) 10 4 FY22 FY23 Variance H1 H1 Net sales 13.8 14.0 +0.21 +1.5% 7.1 7.2 6.9 6.8 6.8 Sterilization 10.7 10.9 +0.17 +1.6% Home-visiting, 1.6 3.1 3.1 +0.04 +1.3% 1.6 1.6 welfare 1.5 1.6 EBITDA 1.38 10.0% 1.36 9.7
Slide 12: Cash, Deposits and Interest-bearing Debts
Cash, Deposits and Interest-bearing Debts (\ billion) FY2023 FY2022 Cash and deposits Short-term debts 44.2 46.5 37.1 37.3 Interest- bearing Long-term debts Cash and debts deposits Lease debts Corporate Interest- 3.7 3.6 5.5 bond bearing debts 25.0 29.0 18.7 15.0 Net interest-bearing -26.5 debt bala
Slide 13: Analysis of Consolidated Cash Flows (FY2023 H1)
Analysis of Consolidated Cash Flows (FY2023 H1) Investment cash (\ billion) Operating cash flows +5.5 Others -5.0 flows -7.3 Free cash flows -1.8 1 1 -33.0 -6.8 (Increase in net interest-bearing debts） -39.8 March 31, 2023 September 30, 2023 Operating capital -4.1 -Increase in sales credit Refund of
Slide 14: Analysis of Consolidated Cash Flows (FY2022 H1)
Analysis of Consolidated Cash Flows (FY2022 H1) Investment cash (\ billion) Operating cash flows +15.8 Others -3.2 flows -18.7 Free cash flows -2.9 1 1 -26.5 -6.1 (Increase in net interest-bearing debts） -32.6 Decrease in March 31, 2022 September 30, 2022 purchase debts 2 -1.9 Depreciation +5.6 -5.8
Slide 15: Status Update and Current Forecast of FY2023
Status Update and Current Forecast of FY2023 14
Slide 16: Current Full-year Forecast
Current Full-year Forecast (\ billion) FY2023 FY2022 Initial Current vs vs results forecast forecast previous year initial forecast Net sales 260.9 245.0 240.0 -20.9 -8.0% -5.0 -2.0% EBITDA 43.1 36.0 25.0 -18.1 -42.0% -11.0 -30.6% OP 23.4 14.0 4.0 -19.4 -82.9% -10.0 -71.4% Ord. profit 22.0 12.0 2.5
Slide 17: Background of OP Forecast (vs initial forecast and H1 results)
Background of OP Forecast (vs initial forecast and H1 results) (\ billion) Initial forecast 14.0 -10.0 Full-year forecast 4.0 H2 forecast: 5.6 +7.2 H1 results: -1.6 Major Unexpected factors vs initial forecast Major H2 profit improvement factors vs • Profit decrease resulting from declined COVID-19-
Slide 18: OP Forecast of LTS Business
OP Forecast of LTS Business FY2023 FY2024 First half Factors contributing to profit recovery • Increase in sales due to the recovery of testing volume in the base business, new customer acquisitions, and sales item expansion • Effects from profitability improvements • Reduction in one-time costs and
Slide 19: Causes and Countermeasures for Reporting Delays at Akiruno Central Lab
Causes and Countermeasures for Reporting Delays at Akiruno Central Lab Causes of reporting delays • Higher manual specimen count (outside of the scope of automation) and procedural unfamiliarity were the primary causes of prolonged processing times • As a result, a decrease in specimen processing ca
Slide 20: AkirunoCube Costs and Effects
AkirunoCube Costs and Effects • Delayed reporting and other factors postponed full operation, resulting in higher one-time costs and a delay in achieving the full-year effects forecasted at the beginning of the fiscal year • Depreciation and running costs are expected to be lower than the initial fu
Slide 21: Business Collaboration Agreement with Sysmex
Business Collaboration Agreement with Sysmex Business collaboration agreement • Entered into a basic business collaboration agreement to enhance comprehensive collaboration in immunoassay testing, including research and development, production, clinical development, and sales 1 • Since FY2020, the d
Slide 22: 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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