Olba Healthcare Holdings, Inc. · TSE:2689
Olba Healthcare — FY2024 Earnings Presentation
56 slides from Olba Healthcare's earnings presentation, September 2024
Slide 1: Financial Results Report FY 06/2024
Financial Results Report FY 06/2024 OLBA HEALTHCARE HOLDINGS, Inc . (Former KAWANISHI HOLDINGS CO., LTD.) This presentation includes machine translation. Please consider that some content may not be perfectly accurate or contextually appropriate. (Ticker :2689) 1
Slide 2: Contents
Contents ⚫ Corporate Philosophy ⚫ Summary for FY June 2024 ⚫ Forecasts and Basic policy on dividends for FY June 2025 ⚫ Medium-term business plan ⚫ Reference Materials 2
Slide 3: Corporate Philosophy
Corporate Philosophy op OLBA HEALTHCARE DECLARE.
Slide 4: Corporate Philosophy (Purpose)
Corporate Philosophy (Purpass) Aiming to develop medical science, medical care, and long-term nursing care through our business endeavors 4
Slide 5: FY June 2024 Summary of Results
FY June 2024 Summary of Results 5
Slide 6: Performance Topics: Inflation, Depreciation of the Yen, New Initiatives
[Previous Performance Topics: Inflation, Depreciation of the Yen, New Initiatives fiscal year] ◼ The number of operations has recovered to pre-corona levels ・Increase in sales of surgical consumables, but decrease in demand for corona-related products ◼ Global inflation and depreciation of the yen ・
Slide 7: Consolidated Financial Results for FY June 2024
[Previous Consolidated Financial Results for the FY June 2024 fiscal year] Record highs for net sales, gross profit, operating income, and ordinary income Comparison JPYmn YoY with budget Sales 118,564 +0.2% +7.3% Gross profit 13,600 △2.0% +5.0% Sales GPM 11.47% SG&A expenses 11,374 △2.6% +5.3% Oper
Slide 8: Factors behind Changes in Operating Income FY June 2024
Factors behind Changes in Operating Income [Previous for the FY June 2024 fiscal year] (JPYmn) [Major Factors of Changes] Medical Devices and Consumables ・Increase in sales of consumables and equipment ・SG&A expenses increased due to Human investment ･ system investment Nursing Care SPD business Pro
Slide 9: Medical Devices and Consumables
Medical Devices and [Previous Consumables fiscal year] Total partners in the medical field Medical equipment 〔93.4%〕 Comparison JPYmn Act. YoY with budget ※1 Sales 112,164 △0.3% +7.6% Sales % of total Operating 2,037 +1.0% +7.4% profit JPYmn Sales Results ※2 YoY Kawanishi 74,918 +6.5% Corporation Sa
Slide 10: Medical Equipment Business Consumables
[Previous Medical Equipment Business Consumables fiscal year] Sales ¥97.1 billion up 6.3% year on year Millions of yen Product Classification Sales YoY Points of sub-segments Surgery-related GI endoscopes +23.0%, anesthesia +11.3% consumables 48,567 +5.4% Surgery +10.2%, Infection Control △ 9.2% Ort
Slide 11: Medical device business - equipment and fixtures
[Previous Medical device business-equipment and fixtures fiscal year] Net sales ¥17.1 billion up 19.8% year on year Factors behind the increase in equipment sales ◆Recovery from a reactionary decline in special demand for corona subsidies ◆Strengthen project discovery ◆Strong sales of automated paym
Slide 12: SPD business
[Previous SPD business HOSNET・Japan, Inc. fiscal year] SPD[4.4%] Comparison JPYmn Act. YoY with budget Sales 5,223 △1.2% △1.0% Sales % of total Operating 104 +37.6% △39.1% profit ◆ Review of commodity management service fees ◆ Decreased due to lost orders and decreased demand for infection control p
Slide 13: Nursing Care Products business
[Previous Nursing Care Products business Life Care Co., Ltd. fiscal year] Comparison Nursing Care Products 〔2.2%〕 JPYmn Act. YoY with budget Sales 2,639 +0.7% +4.6% Operating Sales 209 △9.7% +3.9% % of total profit ◆ Continued demand for home medical care and in-home nursing care ◆ Mainstay nursing
Slide 14: FY June 2025 results forecast, Basic policy on dividends
FY June 2025 results forecast Basic policy on dividends 14
Slide 15: Consolidated Financial Forecasts FY June 2025
Consolidated Financial Forecasts [Current for the FY June 2025 term] Sales, gross profit, operating profit, and recurring profit are expected to be record highs (JPYmn) Forecast 2024/6 Act. Change Sales 123,726 118,564 +4.4% Gross profit 14,446 13,600 +6.2% Sales GPM 11.68% 11.47% +0.21 SG&A expense
Slide 16: Factors behind Changes in Operating Income FY June 2025
Factors behind Changes in Operating Income [Current for the FY June 2025 term] Medical Devices and (JPYmn) [Major Factors of Changes] Consumables ・Expected increase in sales in the Kansai area ・SG&A expenses increased due to continued investment in human resources and systems. Nursing Care SPD busin
Slide 17: Consolidated net sales: Record-high forecast
[Consolidated net sales] Record-high forecast Record and 5th consecutive year of sales growth FY June 2025 Forecast of ¥123.7 billion (+4.4% YoY) Record-high forecast (JPYmn) 160,000 123,726 118,564 120,000 110,472 107,959 102,072 80,000 57,466 60,720 53,030 53,718 49,861 40,000 0 Half-year Full yea
Slide 18: Consolidated operating income: Record-high forecast
[Consolidated operating income] Record-high forecast Record and fifth consecutive year of profit growth FY June 2025 Forecast of ¥2.27 billion (+1.9% YoY) Record-high forecast (JPYmn) 2,500 2,226 2,270 2,151 2,073 2,000 1,540 1,500 1,000 854 786 746 799 620 500 0 Half-year Full year Half-year Full y
Slide 19: Basic policy on dividends
Basic policy on dividends ① Aiming to increase or maintain dividends ② We will endeavor to retain internal reserves for growth investments. FY6/25 forecast: JPY80 Dividend per share [Dividends for the most recent 10 years] Dividend on equity (DOE) ratio Dividend yield 5.0% DOE 4.4% 4.5% 4.0% 4.0% 80
Slide 20: Financial indicators we emphasize
Financial indicators we emphasize ✓ Sales ✓ Operating profit Net income Profitability ✓ ROE (Return on Equity) = × 100% improvement Shareholders' equity Aiming to improve PBR by improving profitability, promoting new businesses, etc. Market capitalization Net income PBR = PER × ROE = × Net income Sh
Slide 21: Profitability analysis of cost of equity and capital status
Profitability analysis of the cost ･ capital current of equity status ROE・Cost of equity 20.0% ・Equity spread (%) 18.0% 17.8% (Cost of ROE-equity) ⇒ Approx. 6% to 7% 16.0% 13.8% 14.0% ・For the cost of capital on an ongoing basis 14.6% Achieve higher profitability on capital 12.0% 12.8% ・5 years hist
Slide 22: Medium-term business plan
Medium-term business plan 22
Slide 23: Domestic market size of medical devices
Domestic market size of medical devices Stable market growth despite policies to curb medical costs In fiscal 2023, Forecast of ¥3.774 trillion ・Recovering from the Impact of the New Corona and Stable Market Expansion ・Market expansion due to increase in number of surgeries and introduction of new p
Slide 24: Medium-term management plan FY June 2027
Medium-term management plan (FY June 2027: ¥135 billion in sales, ¥2.7 billion in operating profit) Key Points of the FY2025/6-2027/6 Medium-Term Management Plan Productivity improvement Strengthen and streamline operations OLBA-DX SOPHISTICATION Develop new regions CRM/SFA/BI construction Logistics
Slide 25: Medium-Term Management Plan: Key Points of Initiatives
Medium-Term Management Plan: Key Points of Initiatives ➢ OLBA-DX : Utilization sales quality by streamlining operations and utilizing ICT tools Working to improve employee IT skills ➢ Improve productivity: Strengthen operations and innovate logistics Aiming to realize stable supply and maximize valu
Slide 26: Reforming by promotion office: OLBA-DX
Reforming by Reform by promotion office OLBA-DX Integrated logistics system Develop Web order application To provide started operation new value Streamlinin CRM g of regular construction operations Introduction of business card Introduction of expense settlement system, management system expansion o
Slide 27: DX Initiatives ① Development of DX Human Resources
OLBA-DX DX Initiatives ① Development of DX Human Resources Development of DX human resources Human Resource Development: Conducted DX literacy training for all employees ◇IT Software Basic Course ◇Know from familiar examples Introduction to IT Compliance with METI's DX Literacy Standards Course to l
Slide 28: DX Initiatives ② Unique Electronic Catalogue
OLBA-DX DX Initiatives ② Unique Electronic Catalogue CRM/SFA/BI construction Enhancement of electronic catalog ● Utilization of proprietary electronic catalogue "MedTag" ⚫ Rapid and reliable provision of information required by customers ⚫ Posted 450000 of the total 850000 medical devices and suppli
Slide 29: DX Initiatives ③ Logistics Innovation
OLBA-DX DX Initiatives ③ Logistics Innovation Li-Flo utilization and deployment ● Operation of Li-Flo, an integrated logistics system Started operation in September 2022 sequentially from the Kawanishi base of the operating companies ⇒ Expand of the system to the entire group Reinforcement in To rei
Slide 30: New Businesses ① Strong sales of Temasac
To foster new businesss New Businesses ① Strong sales of Temasac Expansion of the Burkmed business Temasac series of automated settlement machines for clinics ●Introduction results for the fiscal year ended June 2024 Cashless settlement support … 226 units (YoY +70 units) ●Cumulative number of vehic
Slide 31: New business ② OLSTECH
To foster new businesss Start new business ② "OLSTECH" Minimize environmental impact OLSTECH, a natural decomposition promotion-type up-cycle unit OLSTECH| Three characteristics 1) Significant reductions in CO2 and dioxin emissions 2) Organic garbage reduced in size to 1/300 volume, secondary use 3)
Slide 32: New businesses ③ Babyeets launched
New businesses ③ "Babyeets®" launched To foster new businesss Newborn Live Distribution & Memorial Movie Creation Service "Babyeets®" Babyeets | Three characteristics 01 Easy access to read-only cards 02 Real-time video viewing from remote areas 03 Provision of memorial video after hospitalization [
Slide 33: Thaiolba Healthcare Business
To foster new businesss Thaiolba Healthcare Business ASEAN business development Reasons for expanding [Commemorative ceremony for the establishment of Bangkok into Thailand on January 26, 2023] ・Economic and geographic hub-function of ASEAN region ・Expect rapid aging in the future ・Thailand governme
Slide 34: ESG Initiatives
ESG Initiatives Sustainability Environment (environmental) Tabulation and reduction of greenhouse gas emissions and energy consumption Began sales of OLSTECH, a natural decomposition promotion-type up-cycle unit Social (Social) [Human capital investment and work style reform] Increase of male employ
Slide 35: Continued emphasis on human resource education
Sustainability Continued emphasis on human resource education ◼ Systematic human resource development and acquisition of expertise OLBA Academy, a 30-year-old internal training system Set opportunities to learn according to employee stages ・Enhance employee engagement ・Sources of competitive advanta
Slide 36: Our strengths and weaknesses and countermeasures
Our strengths and utilization and weaknesses and countermeasures Strengths Strengths and and Utilization Utilization Trust from customers and suppliers is the foundation ➢ No.1 of shares in the Chugoku-Shikoku region ⇒ New investments can be implemented by securing stable profits ➢ To invest in huma
Slide 37: SPD business
SPD business HOSNET・Japan, Inc. ● Acquisition of new customers and improvement of revenue ・Develop customers in the Chugoku-Shikoku area ・Proposals for hospital management support, such as purchasing price reductions and insurance claim leakage checks ● Wide-area sales of the Medilia inventory manag
Slide 38: Nursing Care Products business
Nursing Care Products business Life Care Co., Ltd. ● In-house construction of residential remodeling ● Increase market share in existing areas for nursing care ・Strengthen customer service by enhancing follow-up ・Cultivating new users system ・Providing Safety and Security Services ・Promote sales act
Slide 39: Reference Materials
Reference Materials OLBA HEALTHCARE DECLARE. 39
Slide 40: Corporate Profile
Corporate Profile Company Name: Orba Healthcare Holdings Co., Ltd. (Former name: Kawanishi Holdings Co., Ltd.) Head Office 1-3, Shimo-Ishii 1-chome, Kita-ku, Okayama Founded in May 1921 Established 1967 Oct Kawanishi Corporation Representative Director and President Yohei Maeshima Berkmed Corp. Capi
Slide 41: History
History May, 1921 Established Kawanishi Kikai Kikai Store in Ounji-cho, Okayama City (currently Chuo-cho, Kita-ku, Okayama City). Sep. 1927 Associated company Kawanishi Machinery Shop reorganized and established. Jun 1950 Reorganized and established Kawanishi Kikiten Co., Ltd. 1967 Oct Reorganized a
Slide 42: OLBA Employee Charter
OLBA Employee Charter Business Structure ○ Contribute to the development of medicine, medical care, and nursing care through business and contribute to the health and longevity of the national ○ Promptly and appropriately provide patients and healthcare providers with the benefits of innovative new
Slide 43: Consolidated Balance Sheets (FY June 2024)
Consolidated Balance Sheets (FY June 2024) JPYmn Assets Amount Change Liabilities and Net Amount Change Assets Cash and deposits 2,731 331 Trade payables 26,199 827 Trade receivables 26,113 1,593 Short-term debt 600 △355 Commodities 5,943 △217 Other 2,915 649 Other 798 138 Total current liability 29
Slide 44: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows JPYmn FY June 2023 FY June 2024 Pre-tax profit 2,156 2,243 Depreciation 502 557 Decrease (increase) in notes and accounts receivable- △937 △1,593 trade (increase in △) Decrease (increase) in inventories (increase in △) △570 217 Increase (decrease) in notes and a
Slide 45: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows JPYmn FY June 2023 FY June 2024 Net increase (decrease) in short-term borrowings (△) 900 △300 Repayments of long-term debt △220 △55 Repayments of lease obligations △163 △164 Expense by acquisition of treasury shares △175 △221 Proceeds from sales of treasury stoc
Slide 46: Consolidated Financial Data ①
Consolidated Financial Data ① Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Sales JPYmn 97,872 102,072 107,959 110,472 118,564 Operating profit JPYmn 927 1,540 2,073 2,151 2,226 Recurring profit JPYmn 905 1,542 2,119 2,158 2,244 Attributable to owners of the parent Net income JPYmn 326 989 1,535 1,41
Slide 47: Consolidated Financial Data ②
Consolidated Financial Data ② Item Unit 2020/6 2021/6 2022/6 2023/6 2024/6 Sales CF JPYmn 862 3,126 2,420 △659 2,084 Investment CF JPYmn △496 △630 △211 △306 △673 Finance CF JPYmn 439 △2,262 △1,169 175 △1,089 Cash and cash equivalent JPYmn 1,877 2,110 3,149 2,359 2,681 Bank loans JPYmn 2,615 795 275
Slide 48: SDGs: Connecting People and the Future
SDGs (Sustainable Development Goals) Sustainability Connecting People and the Future OLBA Connecting us to the future Six Priority Targets Exercise Acknowledge the capabilities In countries around the world by 2030 Mission difference Can do 17 development objectives to be achieved Respect Creating a
Slide 49: CSR Initiatives: Community-Based Social Contributions
CSR Initiatives: Community-Based Social Contributions Sustainability Working together with local residents to create a future conducive to regional development and revitalization Faziano Okayama Okayama TEC PLANTER Club sponsor Partner companies Established in 2006 as Okayama Prefecture's first prof
Slide 50: Synergy by business alliance with DV-X
Promote business alliances Synergy by business alliance with DVx Entered into a business alliance agreement with the company for the next 100 years DV-X Corporation Details of consideration of business alliance, etc. (Securities code: 3079 Net sales 47.4 billion yen) ・A trading company that manufact
Slide 51: Medical/Engineering Collaboration
Medical/Engineering Collaboration Medical-engineering collaboration -Medical/Engineering Collaboration Model Participating in the Medical Equipment Sales Industry- Customer network with extensive sales channel functions Cooperation with corporations, universities, and regional industry support organ
Slide 52: Capital and business alliance with medical device startups
Capital and business alliance with medical device startups Collaboration with startups Startups handling overseas medical devices Invested in Nozomi MedAlliance in May 2023 [Benefits] ・Strengthen the foundations of the mainstay medical equipment business ・Ability to access overseas companies wishing
Slide 53: Medical Globe
Publication of overseas leading-edge medical device information magazines Overseas medical information magazine Medical Globe Publication: Orba Health Care Holdings This publication is Kraribate Analytics As well as Relias Media's most recent pride From overseas medical information, trends in the me
Slide 54: Study Group on Latest Trends in Overseas Medical Devices
Nippon Medical Manufacturing Commons MINC Association Of the "Study Group on the Latest Trends in Overseas Medical Devices" On Medical Globe Sharing and discussing information on the latest overseas medical device information among various industries Trade and Industry, the Ministry of Health, Labou
Slide 55: Corporate Information/Inquiries
Corporate Information/Inquiries [Fiscal year] From July 1 to June 30 of the following year [Ordinary General Meeting of Shareholders] Held annually in September [Stock Exchange Listings] Tokyo Stock Exchange (Standard Market) Ticker 2689 [Number of shares per unit] 100 shares 【Contact Details】 Olba
Slide 56: Disclaimer
・ While we take all possible measures with respect to the datum provided in this material, The accuracy and completeness of information is not guaranteed. ・ To the information available at the time of preparation of the data for the opinions and projections contained in the materials This is our out
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