J Frontier Co., Ltd. · TSE:2934
J Frontier — Q1 FY ending May 2023 Earnings Presentation
42 slides from J Frontier's earnings presentation, Oct 14, 2022
Slide 1: Presentation Material on Financial Results for First Quarter of FY ending May 2023
Presentation Material on Financial Results for First Quarter of FY ending May 2023 October 14, 2022 J Frontier Co., Ltd. Securities code: 2934
Slide 2: 1Q highlights
1Q highlights ◆ Net sales: 5,542 million yen (full-year plan: 16,669 million yen; progress rate: 33% ) • Major advertising orders received in the Medical Care Sales Business and the Healthcare Marketing Business • Growth in user registration and use in the SOKUYAKU segment of the Medical Care Busine
Slide 3: Contents
Contents ◼ 01 Consolidated financial results in first quarter of FY ending May 2023 ◼ 02 Major recent initiatives ◼ 03 Corporate overview/business overview ◼ 04 Appendix 2
Slide 4: Consolidated financial results in first quarter of FY ending May 2023
Consolidated financial results in ■ 01 first 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: 1Q consolidated financial results
1Q consolidated financial results* ◼ Steady progress on business results thanks to having received major advertising orders in the Medical Care Sales Business and the Healthcare Marketing Business (Million yen) Consolidated net sales (Million yen) Consolidated operating income 18,000 1,000 16,669 73
Slide 7: 1Q consolidated financial results: Details of each business
1Q consolidated financial results: Details of each business Operating income: Group Net sales: 5,542 million yen (progress rate: 33%) -171 million yen Consolidated ➢ Growth in the Medical Care Sales Business and the Healthcare Marketing Business Financial Results drove business results ✓ Advertising
Slide 8: Summary of Consolidated Statements of Profit and Loss
Summary of Consolidated Statements of Profit and Loss 2023年5月期 FY ending May 2023 2023年5月期 FY ending May 2023 年間計画 Progress rate （百万円） (Million yen) 第1四半期実績 1Q (actual) annual plan年間計画 vs. annual進捗率 plan 売上高 Net sales 5,542 16,669 33% メディカルケアセールス事業 Medical Care Sales Business 2,783 7,347 38% Healthc
Slide 9: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary (Million yen) FY ending FY ending Assets May 2023 1Q Liabilities and net assets May 2023 1Q Current assets 4,763 Total liabilities 2,922 Cash and deposits 1,902 Current liabilities 1,908 Accounts receivable - trade etc. 1,874 Accounts payable - trade 548 Inventorie
Slide 10: Key Performance Indicators (KPI): SOKUYAKU
Medical Care Sales Business: SOKUYAKU Key Performance Indicators (KPI) ◼ Users in particular are growing rapidly, thanks mainly to the effects of terrestrial TV commercials and other advertising Numbers of partner hospitals and pharmacies Number of registered users (cumulative) (Number) (Users) Hosp
Slide 11: Trends in sales: D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Trends in sales ◼ Even though the rate of progress on sales was slightly lower than 25%, since the securing of new subscribers is proceeding steadily (see next page) we expect to achieve full-year plans D2C sales of medications: D2C sale
Slide 12: Key Performance Indicators (KPI): D2C
Medical Care Sales Business and Healthcare Sales Business: D2C Key Performance Indicators (KPI) ◼ Steady progress is being made in securing new subscribers, and we expect this to contribute to sales and profits in 2Q and beyond D2C KPI: Number of new subscribers (Subscribers) 450,000 400,000 356,909
Slide 13: Key Performance Indicators (KPI): B2B
Healthcare Marketing Business: B2B Key Performance Indicators (KPI) ◼ Steady growth in the number of trading partner companies thanks to growth in various areas including BPO and casting B2B KPI: Number of trading partner companies (Companies) Progress*: 50％ 240 250 212 200 184 150 131 122 100 50 0
Slide 14: Recent Major Initiatives
■ 02 Recent Major Initiatives
Slide 15: Partnership with pharmacies and drugstores
Medical Care Sales Business: SOKUYAKU Partnership with pharmacies and drugstores ◼ SOKUYAKU has been adopted by pharmacies and drugstores operating numerous outlets, including Tsuruha Drug Company Number of stores*1 Release date My Life Co., Ltd. 43 stores September 1, 2022 Tsuruha Co., Ltd. 163 sto
Slide 16: Growing same-day delivery service areas
Medical Care Sales Business: SOKUYAKU Growing same-day delivery service areas ◼ New same-day delivery services commenced in the cities of Sapporo and Hiroshima SOKUYAKU medication delivery patterns New ! Sapporo 1 Same-day delivery Areas served: City of Sapporo, 23 wards of Tokyo, cities of Yokohama
Slide 17: State of securing SOKUYAKU users
Medical Care Sales Business: SOKUYAKU State of securing SOKUYAKU users ◼ Users growing rapidly thanks to growth in areas in which terrestrial TV commercials are broadcast SOKUYAKU development policy Current state Phase 1 Phase 2 Phase 3 Through FY 22/5 FY 23/5-FY 24/5 FY 25/5 and beyond Building the
Slide 18: Business and capital alliance with the Financial Agency
Medical Care Sales Business: SOKUYAKU Business and capital alliance with the Financial Agency ◼ Advancing cooperation with the Financial Agency (FA) in areas including efforts to promote SOKUYAKU Overview of partner ◆ Name: Financial Agency, Inc. ◆ Representative: Masahide Saito, Representative ◆ Li
Slide 19: Business alliance with JAL
Medical Care Sales Business: SOKUYAKU Business alliance with JAL ◼ Concluding a business alliance agreement with JAL to improve convenience for registered users of both companies Objectives ✓ Promoting the use of telemedicine and increasing the convenience for registered users of of alliance both co
Slide 20: Family accounts released
Medical Care Sales Business: SOKUYAKU Family accounts released ◼ Multiple family members can use SOKUYAKU under a single account Details of this feature Family accounts implemented ➢ Enables integration of family members' account information under a single account (email address) Background ➢ Increa
Slide 21: Corporate Overview/Business Overview
Corporate Overview/Business ■ 03 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 Shortage of medical human resources, widening healthcare Developing more efficient and effective structures through digi
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 FY 22/5 Medical Care Sales Business sales composition ratio Telemedicine and online drug administration guidance platform + D2C sales of medications etc. 42％ D2C sales business for medications and quasi-drugs ◼ Traditional Chinese herbal ◼ medications ◼ quasi-drugs Telemedi
Slide 26: The Group's Business Portfolio (Repeated from Above)
The Group’s Business Portfolio (Repeated from Above) Business segment Business Details ◼ Telemedicine, online drug administration guidance, and medication delivery platform ◼ Marketing support and digital transformation (DX) SOKUYAKU support for medical institutions ◼ Support for medical human resou
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 at any time and in any place. • In spare moments during housecleaning and childcare At any • During breaks at work time • Late at night, early in the morning, on weekends • Wh
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 Online Delivery of hospitals and Telemedicine drug administration medication pharmacies guidance ➢ Searching for and making ➢ Exam
Slide 32: SOKUYAKU's Strengths
SOKUYAKU's Strengths ◼ SOKUYAKU delivers solutions to impediments to promoting online migration of healthcare. ◼ This is demonstrated by rapid growth in numbers of partner hospitals and pharmacies and numbers of patients. Impediments to online migration SOKUYAKU's solutions 1 Heavy burden of compute
Slide 33: List of Services
List of Services Service Charges 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/use ⚫ Medicati
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
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 toa advertising review, we have been impacted o
Slide 38: B2B Business
B2B Business _\( JFRONTIER 37
Slide 39: Business Policies
Business Policies ◼ We will accelerate updating of information on industry trends and 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 marketing Dir
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
J Frontier — Q1 FY ending May 2023 Earnings Presentation on 6ix