France Bed Holdings Co., Ltd. · TSE:7840

France Bed — Q2 FY2024 Earnings Presentation

50 slides from France Bed's earnings presentation, Dec 1, 2023

  1. Slide 1: Second Quarter Financial Results Briefing for the Fiscal Year Ended March 31, 2024

    Second Quarter Financial Results Briefing for the Fiscal Year Ended March 31, 2024 December 1, 2023 FRANCE BED HOLDINGS CO., LTD. https://www.francebed-hd.co.jp/ Securities Code: 7840 FRANCEBED HOLDINGS Co.,Ltd. All rights reserved.

  2. Slide 2: Table of Contents

    table of contents ◆ Second Quarter 2024 Business Performance Report ◆ FY2024 Business Performance Outlook ◆ Major Future Initiatives ◆ Reference Materials FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 2

  3. Slide 3: Second Quarter 2024 Business Performance Report

    Second Quarter 2024 Business Performance Report FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 3

  4. Slide 4: Consolidated Business Performance (Six Months Ended September 30, 2023)

    １. Consolidated Business Performance （ the Six Months Ended September 30, 2023 ） ● Increased sales and profit Year-on-year Second Quarter Second Quarter 2023 2024 Change Change (Million yen) (amount) (%) Net sales 28,244 28,366 +121 +0.4％ Operating profit 1,941 2,034 +92 +4.7％ profit margin 6.9% 7.2

  5. Slide 5: Operating profit increase/decrease factors

    １．Consolidated Business Performance Ⅰ・平成28年３月期決算概況 （ Operating profit increase/decrease factors ） Increase in profit Increase in profit associated with associated with Decrease in profit Due to increase (Million yen) increase in net sales improvement in cost in SG&A expenses of sales ratio +408 1,94

  6. Slide 6: Profit and loss by segment

    ２． Profit and loss plan by segment （ the Six Months Ended September 30, 2023 ） ●Increased sales and profit in the Medical Services Business; increased sales and decreased profit in the Home Furnishings and Health Business Year-on-year Second Quarter 2023 Second Quarter 2024 Change Change (Million ye

  7. Slide 7: Summary of the Medical Services Business

    ３．Summary of the Medical Services Business （ the Six Months Ended September 30, 2023 ） Second Quarter 2023 Second Quarter 2024 Year-on-year Compositio Results Composition Change Change (Million yen) Results n ratio ratio (amount) (%) Consolidated net sales 100.0 18,325 18,511 100.0％ +185 +1.0％ ％ Nur

  8. Slide 8: Factors behind Changes in Ordinary Profit in Medical Services Business

    ４. Factors behind Changes in Ordinary Profit inⅠ・平成28年３月期決算概況 the Medical Services Business Increase in profit To improve cost Decrease in profit Increase in profit associated with of sales ratio Due to increase related to change in (Million yen) increase in net associated increase in SG&A expenses

  9. Slide 9: Summary of the Home Furnishings and Health Business

    ５．Summary of the Home Furnishings and Health Business （ the Six Months Ended September 30, 2023 ） Second Quarter 2023 Second Quarter 2024 Year-on-year Compositi Compositio Change Change (Million yen) Results Results on ratio n ratio (amount) (%) 100.0 Consolidated net sales 9,705 9,620 100.0％ ▲84 ▲0

  10. Slide 10: Factors behind Changes in Ordinary Profit in Home Furnishing and Health Business

    ６．Factors behind Changes in Ordinary Profit inⅠ・平成28年３月期決算概況 the Home Furnishing and Health Business Decrease in Increase in profit Decrease in profit associated with Decrease in profit related to change (Million yen) profit associated Due to increase with decrease in improvement in cost in SG&A exp

  11. Slide 11: Second Quarter 2024 Consolidated Balance Sheet

    ７． Second Quarter 2024 Consolidated Balance Sheet （ Million yen ） Second Quarter 2024 End of FY2023 Compared to the end （As of September 30, (As of March 31, 2023) of FY2023 2023) Current assets 32,966 32,248 ▲717 （Trade receivables） 10,508 9,550 ▲958 Non-current assets 31,680 30,898 ▲781 （rental as

  12. Slide 12: Consolidated Cash Flows

    ８． Consolidated Cash Flows （ Million yen ） Second Quarter Second Quarter 2023 2024 Year-on-year Cash and cash equivalents at 10,778 10,355 ▲422 beginning of period Cash flows from operating activities 4,300 3,671 ▲629 （depreciation ） 2,828 2,698 ▲129 （ Income taxes paid ） ▲374 ▲931 ▲556 Cash flows f

  13. Slide 13: FY2024 Business Performance Outlook

    FY2024 Business Performance Outlook FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 13

  14. Slide 14: Consolidated Income Plan (Progress Achieved)

    １．Consolidated Income Plan (Progress Achieved) ■FY2024 Progress toward achieving the consolidated business performance forecast Year-on- Progress FY2024 year Second Quarter FY2023 Results relative to Plan* change 2024 Results plan (%) (Million yen) (%) Net sales 58,578 60,500 +3.2% 28,366 46.9％ Oper

  15. Slide 15: Profit and loss plan by segment (Progress Achieved)

    ２．Profit and loss plan by segment （ Progress Achieved ） ■FY2024 Progress toward achieving earnings forecast by segment Year-on- Progress FY2023 FY2024 Second Quarter year change relative to Results Plan 2024 Results (%) plan (Million yen) Net sales 38,053 39,500 +3.8% 18,511 46.8％ Medical Services B

  16. Slide 16: Outlook and Main Initiatives in the Medical Services Business

    ３．Outlook and Main Initiatives in the Medical Services Business Net sales full year 2nd Quarter (Million yen) 【FY2024 Full-year plan 】 39,500 Net sales: 39,500million yen 38,053 （+1,447 million yen, +3.8% YoY ） ＋1,447million yen （＋3.8％） Ordinary profit: 3,600million yen （+237 million yen, +7.0% YoY

  17. Slide 17: Outlook and Main Initiatives in the Home Furnishings and Health Business

    ４．Outlook and Main Initiatives in the Home Furnishings and Health Business Net sales full year 2nd Quarter (Million yen) 【FY2024 Full-year plan 】 20,500 Net sales: 20,500million yen 19,949 （+551million yen, +2.7%YoY） ＋551million yen Ordinary profit: 1,250million yen （＋2.7％） （+109million yen, +9.5%Yo

  18. Slide 18: Capital Investments

    ５．Capital Investments (Million yen) FY2023 Second Quarter FY2024 Full-year Results 2024 Full-year Results Capital investment amount 4,912 2,325 5,000 （Rental assets） 3,759 1,618 3,325 （Service centers） 119 295 905 Depreciation 5,562 2,698 5,350 ✓ Improvement of rental utilization rate through the “e

  19. Slide 19: Shareholder return

    ６．shareholder return Basic policy for this medium-term management period 1. Aim to provide stable dividends targeting a consolidated payout ratio of approximately 50%. Taking into account the necessary amount of investment, etc. required for corporate growth over the medium to long term, we aim to i

  20. Slide 20: Changes in Consolidated Business Performance

    ７．Changes in Consolidated Business Performance ■Changes in consolidated business performance for most recent five years FY2024 FY2020 FY2021 FY2022 FY2023 (Full-year Plan) (Million yen ） Net sales 26,329 24,398 25,978 28,244 28,366 Interim Ordinary profit 1,083 1,480 1,901 1,958 2,071 Profit margin

  21. Slide 21: Major Future Initiatives

    Major Future Initiatives １． Medical Services Business ２． Home Furnishings and Health Business ３． Overseas Business ４． Topics FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 21

  22. Slide 22: Improvement of rental sales ratio

    Corporate Target Improvement of rental sales ratio Promoting various “rental services” in all businesses March 31, 2023 mid-term target Rental Sales Other sales Rental Sales Other sales 56.8% 43.2% 50％ 50% FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 22

  23. Slide 23: Strengthening wholesale transactions

    １． Medical Services Business Strengthening wholesale transactions Expansion of B to B sales, and continual entry of products that can be transported and assembled alone New nursing-care bed “RaKuDa” Legless lift-up chair New spring mattress “Cyclin Mattress” Decomposition state Comfortable for sleep

  24. Slide 24: Furniture and appliance rental service for homes for the elderly

    １． Medical Services Business “Furniture and appliance rental” service for homes for the elderly with paid nursing care services Make possible refinancing in accordance with tenants’ situations and the reduction of disposal costs, such as when relocating refrigerator TV chest 9 piece set table armcha

  25. Slide 25: Measures to acquire rental customers

    １． Medical Services Business Measures to acquire rental customers Expand rental customer acquisition through use of e-commerce sites FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 25

  26. Slide 26: Improvement of Rental Profit Margin

    １． Medical Services Business Improvement of Rental Profit Margin Initiatives to reduce the number of discarded rental items Scrapped quantity loss on disposal （ten thousand dots） Scrap rate 185 9.3% 182 (Million yen) 16 8.8% 8.2% 8.2% 10.0% 7.5% 9.0% 6.8% 12 8.0% 7.0% 6.0% 8 5.0% 4.0% 65 4 3.0% 20 2

  27. Slide 27: Medical Services Business

    １． Medical Services Business FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 27

  28. Slide 28: Deployment of Products That Meet Prevailing Needs

    ２．Home Furnishings and Health Business Deployment of Products That Meet Prevailing Needs Proposals for new beds matched with ethical lifestyles Eco comfort motorized beds  Contributing to solving environmental issues  Promoting ethical consumption  Realization of comfort FRANCEBED HOLDINGS Co.,Lt

  29. Slide 29: Increase sales by opening new stores at exhibition venues

    ２．Home Furnishings and Health Business Increase sales by opening new stores at the Group’s exhibition venues ＜ The Group’s showrooms New store opening plan (including renewals)＞ ３４ venues nationwide （ September 2023 results ） ＋ ２ locations （FY2024） （ Plans to open stores this fiscal year ） January 2

  30. Slide 30: Purchase of used down quilts and sales as recycled down quilts

    ２．Home Furnishings and Health Business Begin purchase of used down quilts and sales as recycled down quilts Collect used down quilts from government offices and sell them to accommodation facilities, etc. Purchasing used down quilts from government agencies government office To accommodation Recycle

  31. Slide 31: Initiatives in overseas business as a future growth driver

    ３．overseas deployment Initiatives in overseas business as a future growth driver Using our home furnishing products developed in Japan, we will expand to the rapidly growing Vietnam market （people） Trends of wealthy people in Vietnam (Assets of $1 million or more) 120,000 112,252 100,000 60.4％ Europ

  32. Slide 32: Topics Relevant to Promotion of ESG Management

    ４．Topics Topics Relevant to Promotion of ESG Management （ new ） ESG investment index “FTSE Blossom Japan” Selected as a constituent stock for the first time (310 Japanese stocks as of June 2023) （ continuation ） Continued selection as a constituent of the ESG investment index “FTSE Blossom Japan Sec

  33. Slide 33: Reference Materials

    Reference Materials FRANCEBED HOLDINGS Co.,Ltd. All rights reserved.

  34. Slide 34: Summary of the Company

    Summary of the Company Company Name FRANCE BED HOLDINGS CO., LTD. Location 5th Floor, Shinjuku Square Tower, 6-22-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo Established March 30, 2004 Capital 3.0 billion yen Listing Tokyo Stock Exchange Prime Market Representative Shigeru Ikeda, Representative Director, C

  35. Slide 35: Breakdown by segment

    Breakdown by segment （As of March 31, 2023） Sales to hotels Nursing care rental・Rental wholesale Consolidated net sales Home 58,578 million yen Furnishings Wholesale sales to and Health retailers Medical Business Services （34.1％） Business （65.0％） Retail and wholesale of Home Improvement Services wel

  36. Slide 36: Business Models (Medical Services Business)

    Business Models（Medical Services Business） France Bed Group Customer Sales and rental of welfare equipment Rental Welfare equipment rental wholesale Welfare equipment rental business business operators ／ Wholesale Rental wholesalers Elderly living at home Saleｓ and rental of rehabilitation and medic

  37. Slide 37: Business Models (Home Furnishings and Health Business)

    Business Models（Home Furnishings and Health Business） France Bed Group Customer Wholesale and rental of Furniture store Home Furnishings and beds for home use, etc. Wholesale electronics store Health Business Department store EC business Hotel bed sales and rental Business for hotels Wholesale Accom

  38. Slide 38: Distribution Structure for Welfare Equipment Rental Business

    Distribution Structure for Welfare Equipment Rental Business, and the Company's Business Domains <The Company's business domains> Welfare equipment and nursing care products manufacturers ・ FRANCE BED CO., LTD., other companies (Sale) (Sale) Rental wholesalers Welfare equipment rental business ・ FRA

  39. Slide 39: Welfare Equipment Rental Service

    Welfare Equipment Rental Service This is a rental service of welfare equipment that aids in daily life and nursing care. The service can be used with self-pay equivalent of 10% (Note) of welfare equipment rental costs. ● Flow of the welfare equipment rental service 4. Product rental Confirmation of

  40. Slide 40: Changes in Long-Term Care Benefit Expenditures

    Changes in Long-Term Care Benefit Expenditures, etc. for Welfare Equipment Rental Service Benefit expenditures Benefit expenditures Benefit expenditures/year-on-year change Year-on-year (Unit: 100,000) Change in benefit expenditures by item (Unit: 100,000) 120,000 500,000 130.0% Handrails Units (Tot

  41. Slide 41: Medium-term management plan progress status

    Medium-term management plan progress status （Changes in Consolidated Business Performance） ■Changes in consolidated business performance during the period of the previous medium-term management plan and the period of the current medium-term management plan Previous medium-term management plan Curren

  42. Slide 42: Medium-term plan progress: performance trends by segment

    Medium-term management plan progress status （ Performance trends by segment ） ■ Medical Services Business Previous medium-term management plan Current medium-term management plan FY2024 FY2019 FY2020 FY2021 FY2022 FY2023 （ Million yen ） （Forecas） （Reference: Targets at the time of formulation） Net s

  43. Slide 43: Quarterly consolidated sales trends

    Consolidated Business Performance （ Quarterly consolidated sales trends ） 28,244Million yen 28,366Million yen （ Million yen ） 17,000 15,820 15,000 14,795 14,478 14,514 14,396 13,969 13,765 13,624 13,206 13,000 12,771 11,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 FY2024 （First year of medium-ter

  44. Slide 44: Quarterly consolidated ordinary income trends

    Consolidated Business Performance （ Quarterly consolidated ordinary income trends ） 1,958 Million yen 2,071 Million yen （ Million yen ） 1,500 1,254 1,272 1,200 1,127 1,084 1,064 1,006 974 927 930 874 900 600 300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 FY2024 （First year of medium-term management

  45. Slide 45: Medical Services Business: Quarterly sales trends

    Summary of the Medical Services Business （ Quarterly sales trends ） 18,325Million yen 18,511Million yen （Million yen） 12,000 HOMECARE SERVICE 10,511 YAMAGUCHI Co., Ltd. Corporation 9,585 9,414 9,464 8,911 9,216 9,046 9,000 8,404 8,453 8,041 6,000 3,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 F

  46. Slide 46: Medical Services Business: Quarterly ordinary profit trends

    Summary of the Medical Services Business （ Quarterly ordinary profit and loss trends ） 1,488 Million yen 1,553 Million yen （ Million yen ） 1,200 1,095 900 853 815 792 752 779 761 652 662 634 600 300 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 FY2024 （First year of medium-term management plan） （Sec

  47. Slide 47: Home Furnishings and Health Business: Quarterly sales trends

    Summary of the Home Furnishings and Health Business （ Quarterly sales trends ） 9,705 Million yen 9,620 Million yen (Million yen) 8,000 7,000 Last-minute demand due to price revisions, etc. 6,000 5,077 5,173 5,071 5,051 4,941 4,816 4,804 5,000 4,589 4,700 4,763 4,000 3,000 2,000 1,000 0 1Q 2Q 3Q 4Q 1

  48. Slide 48: Home Furnishings and Health Business: Quarterly ordinary profit trends

    Summary of the Home Furnishings and Health Business （ Quarterly ordinary profit and loss trends ） 504 Million yen 529 Million yen (Million yen) 600 500 470 466 400 300 273 278 264 264 205 226 200 168 170 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY2022 FY2023 FY2024 （First year of medium-term management p

  49. Slide 49: Our stock price trends

    Our stock price trends （yen） 1,400 1,300 1,200 1,100 1,000 900 800 700 FRANCEBED HOLDINGS Co.,Ltd. All rights reserved. 49

  50. Slide 50: Postscript: Inquiries and Notes on the Future Outlook

    Postscript (Inquiries) Administrative Planning Department Email: ir@francebed-hd.co.jp Notes on the Future Outlook This presentation contains forward-looking statements, including forecasts, beliefs, expectations, intentions, and strategies of the Company. These are grounded in judgments and assumpt

France Bed Holdings — Q2 FY2024 Earnings Presentation on 6ix