J Frontier Co., Ltd. · TSE:2934
J Frontier — Q3 FY2023/5 Earnings Presentation
42 slides from J Frontier's earnings presentation, Apr 14, 2023
Slide 1: Presentation Material on Financial Results for Third Quarter of FY ending May 2023
Presentation Material on Financial Results for Third Quarter of FY ending May 2023 April 14, 2023 J Frontier Co., Ltd. Securities code: 2934
Slide 2: 3Q highlights
3Q highlights ◆ Net sales: 12,721 million yen (full year plan: 16,669 million yen; progress rate: 76%) ➢ Steady progress on securing new customers and repeat business from existing customers in the D2C sales of medications, health foods, and cosmetics, as well as contracts for telemedicine centers a
Slide 3: Contents
Contents Contents ◼ 01 Consolidated financial results in Third quarter of FY ending May 2023 ◼ 02 Major recent initiatives ◼ 03 Corporate overview/business overview ◼ 04 Appendix 2
Slide 4: Consolidated financial results in Third quarter of FY ending May 2023
Consolidated financial results ■ 01 in Third quarter of FY ending May 2023
Slide 5: 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 6: 3Q consolidated financial results
3Q consolidated financial results* ◼ Each business is making steady progress on full year plans (Million yen) Consolidated net sales (Million yen) Consolidated operating income 18,000 1,000 16,669 732 Progress: 672 76% 15,000 500 368 4,954 170 12,721 11,877 0 12,000 3,867 3,845 -500 8,493 4,369 9,00
Slide 7: 3Q consolidated financial results: Details of each business
3Q consolidated financial results: Details of each business Group Consolidated Net sales: 12,721 million yen (progress rate: 76%) Operating income: -690 million yen Financial Results By Segment Medical Care Sales Net sales: 5,844 million yen (progress rate: 80%) Operating income: -576 million yen Bu
Slide 8: Summary of Consolidated Statements of Profit and Loss
Summary of Consolidated Statements of Profit and Loss (Million yen) FY2023/5 FY2023/5 Progress rate 3Q financial results annual plan vs. annual plan Net sales 12,721 16,669 76% Medical Care Sales Business 5,844 7,347 80% Healthcare Sales Business 3,010 4,369 69% Healthcare Marketing Business 3,867 4
Slide 9: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Million yen) FY2023/5 FY2023/5 Assets 3Q end Liabilities and net assets 3Q end Current assets 5,253 Total liabilities 3,786 Cash and deposits 2,401 Current liabilities 2,434 Accounts receivable - trade, etc. 1,467 Accounts payable – trade 737 Inventories 973 Accou
Slide 10: Key Performance Indicators (KPI): SOKUYAKU
Medical Care Sales Business: SOKUYAKU Key Performance Indicators (KPI) ◼ Maintaining the growing rate of users through strategic advance investments ◼ Partner hospitals and pharmacies increasing to near 10,000 as the end-of-term target Numbers of partner hospitals and pharmacies (cumulative) Number
Slide 11: Trends in sales: D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Trends in sales ◼ Promoting measures including the development of new products and the improvement of product ad creatives D2C sales of medications: Net sales D2C sales of health foods: Net sales Medications JFD traditional Chinese herba
Slide 12: Key Performance Indicators (KPI): D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Key Performance Indicators (KPI) ◼ Expecting the acquisition of customers with the new brand "SOKUYAKU Beauty" in Q4 D2C KPI: Number of new subscribers (Subscribers) Progress: 450,000 76% 400,000 356,909 301,089 302,103 300,000 271,161 2
Slide 13: Key Performance Indicators (KPI): B2B
Healthcare Marketing Business: B2B Key Performance Indicators (KPI) ◼ Growth in the number of new trading partners through integrated Group sales activities B2B KPI: Number of trading partner companies Progress*: (Companies) 82% 240 250 230 220 212 200 184 131 150 122 100 50 0 May 2020 May 2021 May
Slide 14: Major recent initiatives
■ 02 Major recent initiatives
Slide 15: Partnership with pharmacies and drugstores
Medical Care Sales Business: SOKUYAKU Partnership with pharmacies and drugstores ◼ Progress on adoption of SOKUYAKU in chain pharmacies and drugstores *1 Company Number of stores Release date Orange Holdings Co., Ltd. 127 stores January 10, 2023 DRUG ELEVEN Co., Ltd. 187 stores January 16, 2023 SUND
Slide 16: Methods of receiving prescription medications
Medical Care Sales Business: SOKUYAKU Methods of receiving prescription medications ◼ Establishing receiving methods that match the needs of users ◼ Starting pickup service at pharmacies ◼ In addition, increasing same-day delivery service areas (see the next page for more details) List of methods of
Slide 17: Growing same-day delivery service areas
Medical Care Sales Business: SOKUYAKU 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, parcel delivery, and ph
Slide 18: Conclusion of business alliance agreements
Medical Care Sales Business: SOKUYAKU Conclusion of business alliance agreements ◼ To establish an environment where medical care is available in places of travel and business trips, concluding a business alliance agreement with AirTrip Premium Club Corp. AirTrip Premium Club Corp. [Representative]
Slide 19: Progress of alliance with Aurora Clinic
Medical Care Sales Business: SOKUYAKU Progress of alliance with Aurora Clinic ◼ Steady progress in the joint operation of online clinics for elective treatment (telemedicine and periodic medication delivery) ◼ An increasing trend of customer attraction in the fields of pill prescription, skin beauty
Slide 20: New brand "SOKUYAKU Beauty"
[Healthcare Sales Business] D2C (cosmetics) New brand "SOKUYAKU Beauty" ◼ 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 Clear Pack W V
Slide 21: Corporate overview/business overview
■ 03 Corporate overview/business overview
Slide 22: 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 23: 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 24: Changes to the Business Portfolio
Changes to the Business Portfolio ◼ We are investing in the healthcare tech field, centered on SOKUYAKU, to build our business model. We will implement large-scale changes to the business portfolio over the coming three years. Trends in sales composition ratio FY ending May 2025 (planned) SOKUYAKU D
Slide 25: Business/Service Overview
Business/Service Overview Medical Care Sales Business FY 22/5 sales composition Telemedicine and online drug administration guidance platform + D2C sales of medications, etc. ratio 42% D2C sales business for medications and quasi-drugs Telemedicine and online drug ◼ Traditional Chinese herbal medici
Slide 26: 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 27: SOKUYAKU Business
SOKUYAKU Business _\( JFRONTIER 26
Slide 28: The SOKUYAKU Outlook
The SOKUYAKU Outlook ◼ 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 morning, on weekends • When traveling
Slide 29: Advantages of Online Migration of Healthcare
Advantages of Online Migration of Healthcare ◼ As outlined below, the advantages of online migration to related parties are closely related to social issues. ◼ Online migration is particularly important in Japan, which faces the issues of low birth rates and an aging society, as well as a chronic sh
Slide 30: Deregulation in Japan
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. [Medical-fee revisions] ➢ Strict restrictions applied, such a
Slide 31: SOKUYAKU service overview
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 for and making ➢ Exam
Slide 32: SOKUYAKU's Strengths
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 numbers of patients. Impediments to online migration SOKUYAKU's solutions 1 Heavy burden of
Slide 33: List of monetization models
List of monetization models Service Charge’s structure* 2C (for patients) Maximizing revenue through the promotion of telemedicine, online drug administration guidance, and medication delivery ⚫ Telemedicine usage charges ➢ 150 yen/use ⚫ Online drug administration guidance usage charges ➢ 150 yen/us
Slide 34: D2C Business
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Slide 35: Brand lineup
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 medicines mail-orde
Slide 36: Cross-media selling power
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 effective costs per cu
Slide 37: A strict advertising review structure
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 been impacted on
Slide 38: B2B Business
B2B Business _\( JFRONTIER 37
Slide 39: Business Policies
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 shopping Web marke
Slide 40: Appendix
Jf JFRONTIER m 04 Appendix
Slide 41: 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 42: Good health for people and society
Good health for people and society