France Bed Holdings Co., Ltd. · TSE:7840
France Bed — FY2024 Earnings Presentation
57 slides from France Bed's earnings presentation, May 31, 2024
Slide 1: Financial Results Briefing for the Fiscal Year Ended March 31, 2024
Financial Results Briefing for the Fiscal Year Ended March 31, 2024 New Three-Year Medium- Term Management Plan May 31, 2024 FRANCE BED HOLDINGS CO., LTD.（Securities Code: 7840）
Slide 2: Executive Summary
Executive Summary • Three consecutive periods of increased revenue・ Increased operating and ordinary income for five Business consecutive periods Performance • New record highs for operating, ordinary, and net income （2nd consecutive term since our establishment） Medium-term • Achieved sales target
Slide 3: Table of Contents
table of contents ✓ Topics ✓ FY2024 Business Performance Report ✓ Medium-term management plan （ From FY2025 to FY2027） ✓ Major Future Initiatives ✓ Reference Materials 3
Slide 4: Topics
Topics 4
Slide 5: Topics
Topics ・February 27, 2024 【Announcement regarding the issuance of 2029 full euro yen-denominated convertible bonds with stock acquisition rights】 ⇒The total amount raised is 5 billion yen. Details are provided on page 56 of the reference materials. ・February 28, 2024 【 Notice regarding the results a
Slide 6: FY2024 Business Performance Report
FY2024 Business Performance Report 6
Slide 7: FY2024 Consolidated Business Performance
FY2024 Consolidated Business Performance Sales and profits increased despite not reaching targets except for net income. ROE is 8.2% FY2023 FY2024 Plan Year-on-year change Results Plan (Note) Results achievement (Million yen) rate amount % Net sales 58,578 60,500 59,151 97.7% 572 0.9% Operating 4,48
Slide 8: Operating Income Increase/Decrease Factors
FY2024 Consolidated Business Performance （Operating Income Increase/Decrease Factors） Increased sales and improved cost of sales ratio absorbed the increase in SG&A expenses. Operating income increased 105 yen million year-on-year. （+2.3％） ＋390 ▲589 (Million yen) ＋305 Increase in profit 4,587 4,481
Slide 9: FY2024 Results by Segment
FY2024 Results by Segment Medical service business increased sales and income Decrease in sales and profits in the Home Furnishings and Health Business FY2024 FY2024 Achievement Year-on-year FY2023 % (Million yen) Plan Results rate Net sales 38,053 39,500 38,862 98.3% 2.1% Medical Services Operating
Slide 10: Summary of the Medical Services Business
Summary of the Medical Services Business All divisions posted sales growth, but rental growth slowed, with sales up only 2.1%. In terms of profit, ordinary income increased 4.8% due to curbed investment in rental assets and improved occupancy rate. FY2023 FY2024 Year-on-year Compositio Compositio Re
Slide 11: Summary of the Medical Services Business
Summary of the Medical Services Business Medical service business: +162 million yen (+4.8%) year-on-year The main factors behind the increase in ordinary income were increased sales and improved cost of sales ratio. (Million yen) ＋200 ▲554 ＋463 Increase in profit associated with ＋53 3,526 improvemen
Slide 12: Summary of the Home Furnishings and Health Business
Summary of the Home Furnishings and Health Business Sales down 1.0% due to shift to out-of-home consumption and rising prices. Ordinary income down 1.7% due to higher personnel costs resulting from wage hikes, etc. FY2024 FY2023 Year-on-year Composition Composition Results Results amount % (Million
Slide 13: Summary of the Home Furnishings and Health Business
Summary of the Home Furnishings and Health Business Home Furnishings and Health Business: -20 million (-1.7%) year-on-year Gross profit increased, but could not cover the decrease in sales and increase in labor costs, etc. (Million yen) ＋119 ▲45 1,141 ▲79 ▲14 1,121 Decrease in profit Due to increase
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet （ Million yen ） FY2023 FY2024 amount Current assets 32,966 37,184 4,218 （accounts eceivable） 10,508 11,007 499 Non-current assets 31,680 31,336 ▲343 （rental assets） 6,109 5,296 ▲812 Total assets 64,679 68,575 3,895 Total liabilities 26,555 30,363 3,808 （interest-bearing de
Slide 15: Status of Cash Flows
Status of Cash Flows （Million yen ） FY2023 FY2024 amount Cash and cash equivalents at beginning of period 10,778 10,355 ▲422 Cash flows from operating activities 8,928 7,829 ▲1,098 （depreciation） 5,562 5,363 ▲199 （Income taxes paid） ▲1,042 ▲1,688 ▲645 Cash flows from investing activities ▲6,691 ▲5,6
Slide 16: Medium-term management plan (FY2025 to FY2027)
Medium-term management plan （From FY2025 to FY2027） 16
Slide 17: Review of the previous medium-term management plan
Review of the previous medium-term management plan Using management resources to solve issues in a super-aging society Focus on silver business and promote ESG management Business scale expanded due to Medical Services successful establishment of a Business maintenance center in the metropolitan are
Slide 18: Status of achievement (Consolidated Financial Results)
status of achievement（Consolidated Financial Results） Achieved 5th consecutive year of profit growth thanks to structural reforms in the interior health and fitness business and concentration of management resources on the medical services business. medium-term plan(2019-2021) medium-term plan(2022-
Slide 19: Status of achievement (Performance by Segment)
status of achievement（ Performance by Segment ） ■Medical Services Business medium-term plan(2019-2021) medium-term plan(2022-2024) FY2024 （Million yen ） FY2019 FY2020 FY2021 FY2022 FY2023 （Target at the time Results of formulation） Net sales 29,744 31,235 32,839 34,484 38,053 38,862 （37,700） Segment
Slide 20: New medium-term management plan and FY2025 performance forecast
New medium-term management plan and FY 2025 performance forecast （First year of medium-term plan） 20
Slide 21: Background and issues of planning
Background and issues of planning Medical Services Business Home Furnishings and Health Business • Development of a super-aged • Shrinking domestic furniture society and expansion of interior market medical and nursing care • Oligopoly of large furniture needs dealers and closure of small • Concentr
Slide 22: Numerical Targets of the Medium-Term Management Plan (Consolidated)
Targets for the final year of the new medium-term management plan （consolidated results） Numerical Targets of the Medium-Term Management Plan (Consolidated Profit and Loss) ＜FY2025～FY2027（three years）＞ （Million yen） Compared to actual FY2024 FY2025 FY2027 results for the fiscal year ended March 31,
Slide 23: Numerical Targets of the Medium-Term Plan (Segment)
Targets for the final year of the new medium-term management plan （ Performance by Segment ） Numerical Targets of the Medium-Term Management Plan （ Segment profit/loss ） ＜ FY2025～FY2027（three years） ＞ （ Million yen ） Compared to actual FY2024 FY2025 FY2027 results for the fiscal year ended March 31,
Slide 24: Medical Services Business
Medical Services Business Numerical Targets of the Medium-Term Management Plan Segment profit/loss FY2025～FY2027【three years】 （セグメント別損益） (Million yen) Compared to actual FY2024 FY2025 FY2027 results for the fiscal year ended March 31, Results Plan Plan 2024（%） Net Medical sales 38,862 40,200 43,000
Slide 25: Home Furnishings and Health Business
Home Furnishings and Health Business Numerical Targets of the Medium-Term Management Plan Segment profit/loss FY2025～FY2027【three years】 (Million yen) Compared to actual FY2024 FY2025 FY2027 results for the fiscal year ended March 31, Results Plan Plan 2024（%） Home Net sales 19,740 20,200 21,000 ＋6.
Slide 26: Shareholder Returns
Shareholder Returns Aim for a consolidated dividend payout ratio of 50% and continue share buybacks (Yen) dividend Dividend payout ratio Year-end 50 71.6% 21→22 80% 40 50.1% 47.5% 48.1% 50.0% 50.0% 60% 44.6% 44.8% 30 40% 20 20% 10 28 30 33 36 39 39 0 0% FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY20
Slide 27: FY2025 Consolidated Business Performance Forecast
FY2025 Consolidated Business Performance Forecast （First year of medium-term plan） FY2024 FY2025 Year-on-year Year-on-year Results Plan (amount) (%) (Million yen) Net sales 59,151 61,000 1,849 3.1% Operating profit 4,587 4,800 213 4.6% （Profit ｍargin） 7.7% 7.8% - - Ordinary profit 4,657 4,800 143 3.
Slide 28: FY2025 Profit/Loss Forecast by Segment
FY2025 Profit/Loss Forecast by Segment （ First year of medium-term plan ） FY2024 FY2025 Year-on-year Year-on-year (Million yen) Results Plan (amount) (%) Net sales 38,862 40,200 1,338 3.4％ Medical Services Ordinary Business profit 3,526 3,660 134 3.8％ （Profit （9.0％） （9.1％） ｍargin） Home Net sales 19,
Slide 29: FY2025 Capital Investment
FY2025 Capital Investment （ First year of medium-term plan ） FY2023 FY2024 FY2025 (Million yen) Results Results Plan Capital investment amount 4,912 4,905 4,250 Rental assets 3,759 3,219 3,650 Service centers 119 912 60 Service centers 5,562 5,363 5,040 ✓Newly established “Chitose Service Center” in
Slide 30: Major Future Initiatives
Major Future Initiatives 30
Slide 31: Rental services in all businesses
Rental services in all businesses 31
Slide 32: Major Future Initiatives_Rental services
Major Future Initiatives_Rental services Expansion of rental services outside of long-term care insurance Medical In accordance Services with nursing care insurance Business rental service Home Rental services Furnishings and other than nursing Health Business care insurance 32
Slide 33: Increase rental sales ratio to 50% or more within 5 years
Major Future Initiatives_Rental services Increase rental sales ratio to 50% or more within 5 years other sales rental sales FY2024 56.8% 44.2% mid-term target 50.0% 50.0% 33
Slide 34: Rental services other than nursing care insurance ①
Rental services other than nursing care insurance① Expansion of “Furniture and Appliance Rental” service area for assisted-living facilities for the elderly FY2023 Tokyo only user 19 corporation Delivery and collection order FY2024 Saitama and Kanagawa Elderly Expansion Plan 50 corporation FANCEBED
Slide 35: Rental services other than nursing care insurance ②
Rental services other than nursing care insurance➁ Expansion of medical product rental services to meet the needs of hospitals, elderly care facilities, and other corporate customers Conventional 80 beds 20 beds Purchase 100 sets 100 mattresses needs Purchase 60 sets 100 sets 40 sets rental 35
Slide 36: Rental services other than nursing care insurance ③
Rental services other than nursing care insurance③ Promoting short-term rental services for medical products for tourists Rent a wheelchair Can be Domestic tourists or electric cart rented while traveling from 1st day Can be Foreign Rent a wheelchair rented language Inbound or electric cart from 1st
Slide 37: Rental services other than nursing care insurance ④
Rental services other than nursing care insurance④ Expanding rental services for accommodation facilities Extra bed Added to room price Motorized bed Mattress Providing a higher grade of hotel stay containing reclining feature Massage machine Providing a higher grade of hotel stay Slope Elderly Supp
Slide 38: Developing new markets
Developing new markets 38
Slide 39: Developing overseas markets as future growth drivers
Developing new markets Developing overseas markets as future growth drivers Export of nursing-care beds・ Europe massage machine Manufacture and sale of medical China and nursing care beds Hong Kong SAR Export of nursing-care beds（For Expanding into Vietnam, Rental）・massage machine Export of nursing-
Slide 40: Reference Materials
Reference Materials 40
Slide 41: Summary of the Company
Summary of the Company Trade Name FRANCE BED HOLDINGS CO., LTD. Head Office 5th Floor, Shinjuku Square Tower, 6-22-1 Nishi-Shinjuku, Location Shinjuku-ku, Tokyo Established March 30, 2004 Capital 3.0 billion yen Listing Tokyo Stock Exchange Prime Market Classification Representative Shigeru Ikeda, R
Slide 42: Main history of our group
Main history of our group 1949 Established a private store "Futaba Seisakusho" in Mitaka City, Tokyo.（Started manufacturing seats for vehicles such as scooters.） 1952 Reorganized to “Futaba Seisakusho Co., Ltd.” 1961 Changed the trade name to the former "France Bed Co., Ltd." (Launch of Japan's firs
Slide 43: Breakdown by segment (As of March 31, 2024)
Breakdown by segment （As of March 31, 2024） Sales to hotels MS rental sales Consolidated net sales Nursing care rental・ Rental wholesale 59,151 Million yen Home Furnishings Medical and Health Services Wholesale sales to retailers Business Business （33.3％） （65.7％） Sales to hospital facilities others
Slide 44: 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 Elderly living at home wholesalers Saleｓ and rental of Rehabilitation and ｍ reh
Slide 45: Business Models (Home Furnishings and Health Business)
Business Models（Home Furnishings and Health Business） France Bed Group Customer Home Furnishings Wholesale and rental of Furniture store beds for home use, etc. Wholesale electronics store and Health Department store Business EC business Hotel bed sales and rental Business for hotels Wholesale Sales
Slide 46: 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) Welfare equipment rental business Rental wholesalers opera
Slide 47: 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
Slide 48: Changes in Long-Term Care Benefit Expenditures for Welfare Equipment Rental
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
Slide 49: Quarterly consolidated sales trends
Consolidated Business Performance （ Quarterly consolidated sales trends ） 58,578 Million yen 59,151 Million yen （ Million yen ） 17,000 16,266 15,820 15,000 14,795 14,478 14,514 14,39614,519 13,969 13,765 13,624 13,206 13,000 12,771 11,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 FY2024 （1st
Slide 50: Quarterly consolidated ordinary income trends
Consolidated Business Performance （ Quarterly consolidated ordinary income trends ） 4,485 Million yen 4,657 Million yen （ Million yen ） 1,500 1,485 1,254 1,272 1,200 1,127 1,084 1,100 1,064 1,006 974 927 930 874 900 600 300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY2022 FY2023 FY2024 （1st year of previo
Slide 51: Medical Services Business: Quarterly sales trends
Summary of the Medical Services Business （ Quarterly sales trends ） 38,053 Million yen 38,862 Million yen （Million yen） 12,000 HOMECARE SERVICE 10,921 YAMAGUCHI Co., Ltd. Corporation 10,511 9,585 9,414 9,464 9,430 9,216 9,046 8,911 9,000 8,404 8,453 8,041 6,000 3,000 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 52: Medical Services Business: Quarterly ordinary profit trends
Summary of the Medical Services Business （ Quarterly ordinary profit and loss trends ） 3,363 Million yen 3,526 Million yen (Million yen) 1,500 1,200 1,200 1,095 HOMECARE 900 SERVICE 853 815 YAMAGUCHI Co., 779 792 752 Ltd. connection 761 771 652 662 634 600 300 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q F
Slide 53: Home Furnishings and Health Business: Quarterly sales trends
Summary of the Home Furnishings and Health Business （ Quarterly sales trends ） 19,949 Million yen 19,740 Million yen (Million yen) 8,000 7,000 Last-minute demand due to price revisions, etc. 6,000 5,170 5,077 5,051 5,173 5,071 4,948 5,000 4,763 4,941 4,816 4,589 4,700 4,804 4,000 3,000 2,000 1,000 0
Slide 54: Home Furnishings and Health Business: Quarterly ordinary profit trends
Summary of the Home Furnishings and Health Business （ Quarterly ordinary profit and loss trends ） 1,141 Million yen 1,121 Million yen (Million yen) 600 Recovery of the furniture Occurrence of last- market after the state of minute demand due to emergency is lifted, etc. price revisions, etc. 500 470
Slide 55: Our stock price trends (April 2023 to March 2024)
Our stock price trends(April 2023 to March 2024) (Yen) 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 55
Slide 56: Overview of convertible bonds with stock acquisition rights
Overview of convertible bonds with stock acquisition rights Publication form Euroyen-denominated convertible bonds with stock acquisition rights recruitment market Overseas markets centered on Europe and Asia（Excluding the US） Condition determination date February 27, 2024 Closing price on condition
Slide 57: Postscript
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