Nagaileben Co., Ltd. · TSE:7447

Nagaileben — H1 FY2021 Earnings Presentation

48 slides from Nagaileben's earnings presentation, April 2021

  1. Slide 1: Analyst Guide April 2021

    Our Message to Medical Workers We sincerely would like to express deep appreciation for your devoted works on the frontiers against COVID-19. We will never forget your courage. (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) ANALYST GUIDE April 2021 <Contact for information on thi

  2. Slide 2: Summary Overview of First-half FY2021

    Summary Overview of First-half FY2021 Net Sales and Operating Income recorded the highest in first-half year term Net Sales: ¥8,069 m (y/y Change +14.4%) Operating Income: ¥2,275 m (y/y Change +30.8%) Supply To Ministry of Health, Labour and Welfare(MHLW) FY2021-1Q: ¥315m(Excluding this factor y/y C

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3p Ⅱ Market Environment ・・ ・・・ 8p Ⅲ Financial Review of ・ ・ ・・12p First-half FY2021 and Forecast for FY2021 Ⅳ Management Goals ・・・・・・ 24p Ⅴ Rewarding shareholder- ・・・ 27p focused policies 2 © Nagaileben Co.,Ltd.

  4. Slide 4: About Nagaileben

    Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.

  5. Slide 5: Outline: Competitive position and stable growing market

    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

  6. Slide 6: Outline: Profitability, balance sheet, shareholder policies

    Outline 3 Highly profitability Strong balance sheet - Realization of high profitability (%) 50 Change of Gross Profit 売上総利益率 の推移 to Sales 45.8% (2020) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 45.8% 40 28.6% (1990) 45.3% -Capital-to-asset ratio 89.3% (2010) 35 (1980) 39.7% -

  7. Slide 7: Social Responsibility and SDGs

    SDGs Solve social issues through our business Social Responsibility Environmental - Assist hospital to reduce Efforts waste and be more economical. -Regional Contribution - Consideration to Regional through Production Base environmental load of business. -Support hospital facilities Contribution Ren

  8. Slide 8: CSR Our Efforts based on Let us help the human life

    CSR Our Efforts based on “Let us help the human life” What’s NEW Appeared in SDGs' school textbook Remaking of nursing student' wears We made recycled products from training w Our efforts are appeared in SDGs' school t ears which were used by nursing students in extbook, which is distributed to elem

  9. Slide 9: Market Environment

    II Market Environment 8 © Nagaileben Co.,Ltd.

  10. Slide 10: Topics: Market confusion and overseas production risk

    Topics Confusion of market still continues -With regard to Covid-19, Japanese government supports medical institutions(The total amount about 3 Trillion Yen) -Care service fees will be revised (effective April 2021). +0.70% (For correspondence to Covid-19 +0.05%) -Drug price will be revised (effecti

  11. Slide 11: Revisions to medical treatment and care service fees

    Environment Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 +1.9 2 +1.5 +1.6 +0.7 +1.4 +0.6 +0.6 +1.2 1 +0.7 +0.5 +0.4 +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 ▲ 1.0 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲

  12. Slide 12: Supply and Estimated Future Need

    Environment Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers forecast(maximum) 245 250 forecast(minimum) Actual 202 200 150 245 100 167 188 188 50 0 2017 2025 2018 2025 Source: The committee about supply and estimated future need of Actual record: Research of Long-Ter

  13. Slide 13: Financial Review of First-half FY2021 and Forecast for FY2021

    II Financial Review of First-half FY2021 and Forecast for FY2021 12 © Nagaileben Co.,Ltd.

  14. Slide 14: Policy Management Tasks and Status

    Policy Management Tasks and Status Capture clusters of needs with value-added strategy in the healthcare wear market Increase share of peripheral business in products for patients and surgery wear market Marketing strategy to increase sales Cultivate overseas markets by expanding our business model

  15. Slide 15: Our Status of Reaction to COVID-19

    Topics Our Status of Reaction to COIVD-19 Our functions of production, sales and distribution are in operation as usual. -We have continued to develop reusable prevention products for infectious disease that meet the needs of Development medical field. (Utilization of our know-how in Surgery wear.)

  16. Slide 16: Consolidated Results

    Consolidated Results Financial Review of First-half FY2021 and Forecast for FY2021 FY2021 FY2021 (millions of yen,%) First-half(Results) To Forecast % % Change Full(Forecast) % Change Net sales 8,069 +5.4 +14.4 17,300 +1.4 Gross profit 3,718 +4.8 +13.9 7,976 +2.1 Sales, general, and administrative 1

  17. Slide 17: Consolidated Results: Gross profit

    Consolidated Results Financial Review of First-half FY2021 and Forecast for FY2021 FY2021 FY2021 (millions of yen,%) First-half(Results) To Forecast % % Change Full(Forecast) % Change Net sales 8,069 +5.4 +14.4 17,300 +1.4 Gross profit 3,718 +4.8 +13.9 7,976 +2.1 Sales, general, and administrative 1

  18. Slide 18: Consolidated Results: SG&A and capital expenditure

    Consolidated Results Financial Review of First-half FY2021 and Forecast for FY2021 FY2021 FY2021 (millions of yen,%) First-half(Results) To Forecast % % Change Full(Forecast) % Change Net sales 8,069 +5.4 +14.4 17,300 +1.4 Gross profit 3,718 +4.8 +13.9 7,976 +2.1 Sales, general, and administrative 1

  19. Slide 19: Financial Review of First-half FY2021 (Balance Sheet)

    Consolidated Results Financial Review of First-half FY2021 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 24,020 +1,799 +8.1 Notes and accounts receivable (including electronically recorded claims) 5,6

  20. Slide 20: Segments by Item

    Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Infection prevention 19 © Nagaileben Co.,Ltd.

  21. Slide 21: Segment Sales by Item

    Segment Sales by Item y/y change FY2020 FY2021 Composition Doctors' (FY2021E) Utility (%) First-half Full First-half Full(E) 14.9% 2.4% Total sales -2.5 ＋1.7 +14.4 +1.4 Patient 13.8% Healthcare wear -3.8 -7.6 +7.2 +5.0 Doctors' wear -2.1 -7.4 +5.7 +4.4 Utility wear -13.9 -10.6 +9.2 +3.9 Surgery 10.1

  22. Slide 22: Segment Sales by Region

    Segment Sales by Region y/y change FY2020 FY2021 Composition Central (%) First-half Full First-half Full(E) (FY2021E) Japan 10.4% West +14.4 +1.4 Japan Total sales -2.5 +1.7 (+10.0)*1 (+5.4)*2 34.7% East Japan -1.2 -4.1 +12.1 +5.5 Central Japan +2.0 +4.1 +14.3 +3.9 West Japan -6.2 -6.2 +7.2 +6.0 Ove

  23. Slide 23: Business Plan Product Strategy

    Business Plan Product Strategy y/y change FY2020 FY2021E (%) Sales by Product Total sales +1.7 +1.4 High-End (¥ million) products -15.9 +4.5 20,000 High Value-Added 18,000 MHLW products -3.1 +5.3 16,000 Value-Added 14,000 High-End products -2.2 +7.3 12,000 High Value- Mass products -7.5 -7.4 10,000

  24. Slide 24: Business Plan Production Strategy

    Business Plan Production Strategy Composition Production (%) FY2020 FY2021E (Non-Consolidated) Domestic (¥ million) (%) production 49.2 48.2 10,000 55 Overseas Purchased production 49.5 50.8 products 7,500 50 Purchased Overseas products 1.3 1.0 production 5,000 45 Domestic production Ratio of overse

  25. Slide 25: Management Goals

    IV Management Goals 24 © Nagaileben Co.,Ltd.

  26. Slide 26: Strategy Business Direction

    Strategy 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. -Develop reusable prevention products for infectious disease. -Cultivate Overseas Markets. Profit Str

  27. Slide 27: Trend of Business Records

    Strategy Trend of Business Records Due to COVID-19, regarding FY2022/FY2023 forecasts, the business impact is uncertain and reasonable calculation is difficult at the moment. These forecasts are currently pending and we are planning to announce a revised forecasts when possible. (¥ million) （％） 60 1

  28. Slide 28: Rewarding shareholder-focused policies

    V Rewarding shareholder -focused policies 27 © Nagaileben Co.,Ltd.

  29. Slide 29: Reward Reimbursement Policy

    Reward 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 buyb

  30. Slide 30: The History of Stock Value

    Reward The History of Stock Value （Yen） （Yen） BPS EPS DPS （yen） （yen） （yen） 1,300 125 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 line is when there was not outbreak. 568.3 48.0 12.5 1,200 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 FY2005

  31. Slide 31: Actual Dividends Paid

    Reward Actual Dividends Paid Total Total Share Payout return dividend buyback ratio ratio （Million yen） （Million yen） （non-c, ％） （non- c, ％） FY2001 475 0 27.4 27.4 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

  32. Slide 32: 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 /

  33. Slide 33: Data File

    Data File First-half FY2021 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200

  34. Slide 34: 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

  35. Slide 35: Sales by Item

    1. Sales by Item (¥ million) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 18,000 20/8 21/8 Sales 17,017 17,144 16,785 17,066 17,300 7,051 8,069 16,000 Healthcare wear 9,940 9,974 9,681 8,944 9,390 3,958 4,244 Doctors' wear 2,681 2,671 2,673 2,475 2,585 1,061 1,122 14,000 Utility we

  36. Slide 36: Sales by Product

    2. Sales by Product (¥ million) First-half First-half (¥ million) FY 17/8 18/8 19/8 20/8 21/8E 20/8 21/8 18,000 Sales 17,017 17,144 16,785 17,066 17,300 7,051 8,069 High-End products 1,191 1,269 1,274 1,072 1,120 493 513 16,000 High Value-Added products 8,612 8,759 8,969 8,692 9,155 3,817 4,097 Valu

  37. Slide 37: Sales by Region

    3. Sales by Region (¥ million) First-half First-half (¥ million) FY 17/8 18/8 19/8 20/8 21/8E 20/8 21/8 20,000 Sales 17,017 17,144 16,785 17,066 17,300 7,051 8,069 East Japan 9,007 9,065 8,898 8,530 9,000 3,720 4,170 18,000 Central Japan 1,756 1,795 1,664 1,730 1,800 720 822 16,000 West Japan 6,068

  38. Slide 38: 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 17/8 18/8 19/8 20/8 21/8E 10,000 55 20/8 21/8 Domestic production 4,676 4,678 4,584 4,743 4,618 2,267 2,376 Overseas production 4,447 4,625 4,566 4,775 4,867

  39. Slide 39: Statements of Income (Consolidated)

    5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 20/8 21/8 Net Sales 17,017 17,144 16,785 17,066 17,300 7,051 8,069 Gross profit 8,086 8,050 7,840 7,810 7,976 3,263 3,718 Sales, general, and administrative expense 2,843 2,786 2,922 2,872 2,908 1,5

  40. Slide 40: Statements of Income (Non-Consolidated)

    6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 17/8 18/8 19/8 20/8 21/8E 20/8 21/8 Net Sales 17,013 17,140 16,777 17,061 17,300 7,048 8,063 Gross profit 7,826 7,835 7,694 7,650 7,843 3,200 3,631 Sales, general, and administrative expenses 2,831 2,779 2,901 2,868 2,89

  41. Slide 41: Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 16/8 17/8 18/8 19/8 20/8 20/8 21/8 Profitability ROE (%) 9.4 10.3 9.8 8.8 8.7 - - ROA (%) 12.7 13.4 12.8 11.5 11.3 - - Return on sales Net income (%) 19.7 21.6 21.4 20.5 20.4 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -

  42. Slide 42: Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 16/8 17/8 18/8 19/8 20/8 20/8 21/8 Profitability ROE (%) 10.0 11.0 10.5 9.5 9.2 - - ROA (%) 13.4 14.2 13.6 12.4 12.0 - - Return on sales Net income (%) 19.2 21.2 21.1 20.5 20.0 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.4 0.4

  43. Slide 43: Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,785 100.0 17,06

  44. Slide 44: Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 16,777 100.0

  45. Slide 45: Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,054 79.2 35,936

  46. Slide 46: Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 19/8 20/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 31,852 78.1 32,7

  47. Slide 47: The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 17/8 18/8 19/8 20/8 21/8 Full Year 17,000 17,500 17,600 17,400 17,300 First-half 7,140 7,350 7,463 7,482 7,655 Second-half 9,860 10,150 10,137 9,918 9,645 15,000 25 [Result] (¥ million) Full Year

  48. Slide 48: 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

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