Slide 1: Full-year financial results for FY ended May 2023 and medium-term plan
Full-year financial results for FY ended May 2023 and medium-term plan July 14, 2023 J Frontier Co., Ltd. [Securities code: 2934]
Slide 2: Executive Summary: Full-year financial results for FY ended May 2023
Executive Summary: Full-year financial results for FY ended May 2023 Full-year plan: 16,669 million yen; achievement rate: 101% ◆ Net sales : 16,845 million yen YoY change: 142% ➢ Sales grew in the Medical Care Sales Business (SOKUYAKU telemedicine business and D2C sales of Business medications busi
Slide 3: Executive Summary: Medium-term plan
Executive Summary: Medium-term plan Net sales Operating income • High growth rates continued, driven by the Medical Care Sales • We expect to achieve profitability in the fiscal year ending May 2024 Business (SOKUYAKU telemedicine business and D2C sales of and will promote further efforts to secure
Slide 4: Contents
Contents Contents ◼ 01 Consolidated financial results in FY ending May 2023 ◼ 02 Major recent initiatives ◼ 03 Future growth strategies, medium-term plan ◼ 04 Appendix 3
Slide 5: Consolidated financial results in FY ending May 2023
Consolidated financial results in FY ending ■ 01 May 2023
Slide 6: The Group's Business Portfolio
The Group’s Business Portfolio Business segment Business Business details ◼ Telemedicine, online drug administration guidance, and medication delivery platform SOKUYAKU ◼ Marketing support and digital transformation (DX) support for medical institutions ◼ Support for medical human resources Medical
Slide 7: Full year consolidated financial results in FY ended May 2023
Full year consolidated financial results in FY ended May 2023* Net sales Operating income • Achieved 101% of planned results • Losses were lower than planned thanks to success in attracting new customers more • Sales grew in the Medical Care Sales Business (SOKUYAKU business and D2C sales efficientl
Slide 8: Details by business
Full year consolidated financial results in FY ended May 2023: Details by business Group Consolidated Net sales: 16,845 million yen (achievement rate: 101%) Operating income: -1,816 million yen Financial Results By Segment Medical Care Sales Net sales: 7,675 million yen (achievement rate: 104%) Oper
Slide 9: Summary of Consolidated Statements of Profit and Loss
Summary of Consolidated Statements of Profit and Loss Full-year financial Full-year financial FY 2023/5 YoY vs. (Million yen) results for FY ended May results for FY 2022 (previous year) annual plan ended May 2023 change Plans Net sales 11,877 16,669 16,845 142% 101% Medical Care Sales Business 4,98
Slide 10: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Million yen) End of FY End of FY Assets ended May 2023 Liabilities and net assets ended May 2023 Current assets 4,672 Total liabilities 4,525 Cash and deposits 1,648 Current liabilities 3,020 Accounts receivable - trade, etc. 1,689 Accounts payable – trade 549 Inv
Slide 11: Key Performance Indicators (KPI): SOKUYAKU
[Medical Care Sales Business] SOKUYAKU Key Performance Indicators (KPI) ◼ The number of partner hospitals and pharmacies grew by 202% and the number of users by 446% YoY Numbers of partner hospitals and pharmacies (cumulative) Number of users (number of registered users) (Number) (Users) Number of h
Slide 12: Trends in sales: D2C
[Medical Care Sales Business and Healthcare Sales Business] D2C Trends in sales ◼ Investing in advertising expenses for pharmaceutical products with strong effects on attracting new business ◼ Achieved 100% of plans for the D2C business as a whole D2C sales of medications: Net sales D2C sales of hea
Slide 13: Key Performance Indicators (KPI): D2C
[Medical Care Sales Business and Healthcare Sales Business] D2C Key Performance Indicators (KPI) ◼ Success in attracting new subscribers, centered on Bofutsushosan, has resulted in about 417,000 new subscribers [D2C KPI] Number of new subscribers Achievement rate (Subscribers) 104% 450,000 416,848 4
Slide 14: Key Performance Indicators (KPI): B2B
[Healthcare Marketing Business] B2B Key Performance Indicators (KPI) ◼ Promotion of sales activities groupwide has increased the number of trading partner companies to 245, realizing growth of 102% vs. plans and 33% vs. last year [B2B KPI] Number of trading partner companies Achievement rate 102% (C
Slide 15: Major recent initiatives
■ 02 Major recent initiatives
Slide 16: Service development policies
[Medical Care Sales Business] SOKUYAKU Service development policies ◼ Able to handle both healthcare services under health insurance and healthcare services not covered by insurance ◼ Service development under different policies, reflecting the Japanese legal system Healthcare services under health
Slide 17: Extending the partnership with pharmacies and drugstores
[Medical Care Sales Business] SOKUYAKU Insured Medical Care Extending the partnership with pharmacies and drugstores ◼ SOKUYAKU has been adopted mainly by pharmacies and drugstores operating numerous outlets ◼ Planning to grow services provided to user facilities, including delivery services for pha
Slide 18: Establishing methods of receiving prescription medications
[Medical Care Sales Business] SOKUYAKU Insured Medical Care Establishing methods of receiving prescription medications ◼ Establishing receiving methods that match the needs of users List of methods of receiving prescription medications 1 Same-day delivery 2 Next-day delivery Areas served: : Tokyo Me
Slide 19: Growing same-day delivery service areas
[Medical Care Sales Business] SOKUYAKU Insured Medical Care Growing same-day delivery service areas ◼ Steadily increasing areas. Further expansion planned, chiefly in ordinance-designated major cities, to increase user convenience • Sapporo City : Same-day delivery service areas Next-day delivery, p
Slide 20: Growing online clinics for medical care not covered by insurance
[Medical Care Sales Business] SOKUYAKU Medical Care Not Covered by Insurance Growing online clinics for medical care not covered by insurance ◼ Launching and growing online clinics for medical care not covered by insurance ◼ An increasing trend of customer attraction in the fields of pill, skin beau
Slide 21: Launching delivery services for pharmaceuticals, daily items, and food products
[Medical Care Sales Business] SOKUYAKU Launching delivery services for pharmaceuticals, daily items, and food products ◼ Adopted at Tsuruha Drug's Honcho store, starting operation from the city of Sapporo ◼ Future growth planned centered on drugstores that have adopted SOKUYAKU 20
Slide 22: Promoting cooperation with other firms
[Medical Care Sales Business] SOKUYAKU Promoting cooperation with other firms ◼ Accelerating digital transformation (DX) in healthcare by promoting cooperation with other firms Partner Cooperation details etc. • Commencing efforts to register JAL Mileage Bank registered users as SOKUYAKU registered
Slide 23: Releasing SOKUYAKU Beauty, a new brand
[Healthcare Sales Business] D2C (cosmetics) Releasing SOKUYAKU Beauty, a new brand ◼ Releasing a new brand aimed at supporting a happy life with healthy beauty ◼ Launching skin lightening products under a new concept containing the first ingredient blended in Japan Medicated W Nanobubble W White Cle
Slide 24: Future growth strategies, medium-term plan
■ 03 Future growth strategies, medium-term plan
Slide 25: Our Management Policies
Our Management Policies ◼ Developing and implementing a mission and plans consisting with our Management Philosophy ◼ Aiming, through our businesses, for solutions to the severe social issues Japan faces Management philosophy Purpose Good health for people and society Goals to achieve Mission ⚫ Keep
Slide 26: Our Future Business Model Goals
Our Future Business Model Goals Mission (goals to achieve) 1 Growth in medical costs and other social security expenses Keeping down medical costs through longer healthy lifespans 2 Shortage of medical human resources, widening healthcare Developing more efficient and effective structures through di
Slide 27: The Group's Business Portfolio (Repeated from Above)
The Group’s Business Portfolio (Repeated from Above) Business segment Business Business details ◼ Telemedicine, online drug administration guidance, and medication delivery platform SOKUYAKU ◼ Marketing support and digital transformation (DX) support for medical institutions ◼ Support for medical hu
Slide 28: Medium-Term Plan (May 2024 – May 2025)
Medium-Term Plan (May 2024 – May 2025) Net sales Operating income • High growth rates continued, driven by the Medical Care Sales • We expect to achieve profitability in the fiscal year ending May 2024 Business (SOKUYAKU telemedicine business and D2C sales of and will promote further efforts to secu
Slide 29: Planned figure in the fiscal year ending May 2024
Planned figure in the fiscal year ending May 2024 Full-year financial Full-year financial (Million yen) results for FY ended results for FY ended Plan for FY May 2022 (two years ago) May 2023 (previous year) YoY change ending May 2024 YoY change Net sales 11,877 16,845 142% 20,599 122% Medical Care
Slide 30: SOKUYAKU Business
SOKUYAKU Business _\( JFRONTIER 29
Slide 31: The worldview we want to realize
[SOKUYAKU Business] The worldview we want to realize ◼ Realizing a society in which anybody can connect with doctors and pharmacists and receive medications any time, any place. • In spare moments during housecleaning and childcare Any time • During breaks at work • Late at night, early in the morni
Slide 32: Business environment
[SOKUYAKU Business] Business environment ◼ The telemedicine market in Japan is in its early stages, and further market growth is expected in the future Benefits of putting medical services online (a sample case) Growing markets*1 ✓ Elimination of geographical and time Telemedicine offers numerous (U
Slide 33: Deregulation in Japan
[SOKUYAKU Business] Deregulation in Japan ◼ Deregulation of telemedicine and online drug administration guidance is accelerating in Japan recently. ◼ Further easing of related regulations is expected in the future as the government responds to social issues. Telemedicine rates and other new ➢ Strict
Slide 34: SOKUYAKU service overview
[SOKUYAKU Business] SOKUYAKU service overview ◼ Developing a one-stop platform from telemedicine to online drug administration guidance and delivery of prescription medication Searching for hospitals Telemedicine Online drug Delivery of medication and pharmacies administration guidance ➢ Searching f
Slide 35: SOKUYAKU's Strengths
[SOKUYAKU Business] SOKUYAKU's Strengths ◼ SOKUYAKU delivers solutions to impediments to promoting the online migration of healthcare. ◼ This is demonstrated by rapid growth in the numbers of partner hospitals and pharmacies and the numbers of patients. Impediments to online migration SOKUYAKU's sol
Slide 36: List of current revenue models
[SOKUYAKU Business] List of current revenue models Telemedicine platform Aiming to maximize revenues through means including increasing numbers of registered users and uses Service Charge’s structure* ⚫ [Insured medical care] Telemedicine usage charges ➢ 150 yen/use ⚫ [Insured medical care] Online d
Slide 37: Strategies toward future revenue growth
[SOKUYAKU Business] Strategies toward future revenue growth ◼ Growing revenues to realize our plans ◼ Building a profit structure quickly through means such as adoption of stock-based revenue models 1 Growing flow-based revenue models 2 Adopting and growing stock-based revenue models 3 Enhancement a
Slide 38: Plan for FY ending May 2024
[SOKUYAKU Business] Plan for FY ending May 2024 ◼ Further telemedicine platform growth through simultaneously investing strategically in advertising and enhancing revenue models Sales Plan for FY ending May 2024 *1 Operating income (Million yen) (Million yen) 4,000 3,000 [Left axis: Sales] Telemedic
Slide 39: Medium-term plan: KPIs
[SOKUYAKU Business] Medium-term plan: KPIs ◼ Number of users revised to planned figure, assuming launch of premium plans ◼ Breakdown of pharmacies and hospitals revised (increasing number of pharmacies) to expand same-day service areas Numbers of partner hospitals and pharmacies (cumulative) Number
Slide 40: D2C Business
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Slide 41: Brand lineup
[D2C Business] Brand lineup ◼ Developing a D2C business that includes original medications, health foods, and cosmetics ◼ Also advancing diversification of the product lineup through M&A activities with companies that own product brands ➢ November 2019: Acquisition of traditional Chinese herbal medi
Slide 42: D2C Business Policies
[D2C Business] D2C Business Policies ◼ Enhancing product capabilities and diversifying products offered, and providing strong support for effective and efficient treatment, self-care, and health maintenance for consumers Health foods Medications Cosmetics New categories Enhancing product capabilitie
Slide 43: Cross-media selling power
[D2C Business] Cross-media selling power ■Advertising production based on abilities in casting and earning consumers' sympathy, build up through Healthcare Marketing ■Reaching consumers across a wide range of ages through a cross-media approach using online and offline advertising ■Realizing effecti
Slide 44: A strict advertising review structure
[D2C Business] A strict advertising review structure ◼ Laws concerning D2C advertising have become increasingly strict in recent years with the amendment of the Pharmaceutical and Medical Devices Act and other developments. ◼ Thanks to our traditional strict approach to advertising review, we have b
Slide 45: Plan for FY ending May 2024
[D2C Business] Plan for FY ending May 2024 ◼ Realizing continuous growth by enhancing the product lineup by promoting the development of products to contribute to a period free from illness, prevention, and health maintenance Operating Sales income (Million yen) Plan for FY ending May 2024 (Million
Slide 46: Medium-term plan: KPIs
[D2C Business] Medium-term plan: KPIs ◼ Aiming to increase the number of subscribers through the development and growth of new products and efficient and effective advertising (Subscribers) Trend in the number of new subscribers 600,000 600,000 500,000 500,000 416,848 400,000 356,909 301,089 300,000
Slide 47: B2B Business
B2B Business _\( JFRONTIER 46
Slide 48: B2B Business Policies
[B2B Business] B2B Business Policies ◼ We will accelerate the updating of information on industry trends and the accumulation of expertise through branding that targets customers and through BPO services to demonstrate synergies with our other businesses Branding BPO services Casting, advertising TV
Slide 49: Plan for FY ending May 2024
[B2B Business] Plan for FY ending May 2024 ◼ Cross selling of branding and BPO services, chiefly to mail-order vendors Operating Sales income (Million yen) Plan for FY ending May 2024 (Million yen) 8,000 400 [Left axis: Sales] [Right axis: Operating income] 6,446 6,000 300 5,058 4,000 3,845 200 113
Slide 50: Medium-term plan: KPIs
[B2B Business] Medium-term plan: KPIs ◼ Aiming to increase the number of trading partner companies in branding and BPO services, through efforts for the cross selling of products and services by strengthening cooperation with subsidiaries Trend in the number of trading partner companies (Companies)
Slide 51: Appendix
Jf JFRONTIER m 04 Appendix
Slide 52: Introduction to preferential system for shareholders
Introduction to preferential system for shareholders ◼ A new preferential system for shareholders was established in November 2021 to express gratitude for shareholders' continued support and make investments in our stock more attractive. (Number of shares held) Equivalent to Equivalent to 300 or mo
Slide 53: Good health for people and society
Good health for people and society