Nagaileben Co., Ltd. · TSE:7447
Nagaileben — H1 FY2012 Earnings Presentation
45 slides from Nagaileben's earnings presentation, April 2012
Slide 1: Analyst Guide First-half FY2012
ANALYST GUIDE First-half FY2012 April 2012 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 2: Agenda
Agenda Outline I Financial Review First-half FY2012 II Market Environment III Forecast for FY2012 IV Management Goals V Rewarding shareholder-focused policies 1
Slide 3: Outline
Outline Establish competitive position in Strong growing market medical clothing market Doctor, Dentist, Care workers*2 Nursing Staff*1 -Approximately 60% market share Pharmacist*1 fulltime-worker-based count in domestic medical clothing 650,000 1,400,000 840,000 -Wide field, planning, manufacturing
Slide 4: I Financial Review First-half FY2012
I Financial Review First-half FY2012 3
Slide 5: Financial Highlights: Statements of Income
Financial Highlights <Statements of Income> (millions of yen,%) First-half FY2012 % Change To Forecast % Composition % Composition % Change Net sales 6,186 7.0 6.3 100.0 - Gross profit 2,902 8.4 7.1 46.9 0.6 Sales, general, and administrative expenses 1,332 4.9 1.1 21.5 -0.4 Operating income 1,569 1
Slide 6: Financial Highlights: Balance Sheet
Financial Highlights <Balance Sheet> Major assets (¥ million %) Title Result Change Result Change % [Major changes from the previous fiscal year] Cash on hand at banks 14,523 1,484 11.4 -Cash and cash equivalents ¥1,484 million Notes and accounts receivable 3,780 103 2.8 -Cash flows from operating a
Slide 7: Segments by item
Segments by item Healthcare Doctors' Utility Patient Surgery Shoes wear wear wear wear wear Segments by item 6
Slide 8: Sales by Item
Sales by Item Doctors'14.9% Utility 6.0% [Healthcare wear] -Catching new contracts in stable market, spreading new Patient products in the market, sales grew steady 9.3% [Doctors' wear] Surgery -Continuing from the previous year, as new products 9.3% were well-received in the market, sales in first-
Slide 9: Sales by Region
Sales by Region Central Japan 10.3% [East Japan] West Japan -Catching renewal orders in Tohoku district, which 37.2% postponed renewal orders last second-half year due to the impact of the Tohoku-Pacific Ocean Earthquake, the sales grew steady. [Central Japan] -Though there was large-lot orders in p
Slide 10: II Market Environment
Ⅱ Market Environment 9
Slide 11: Market Environment Topics
Market Environment Topics Medical treatment fees and Nursing care fees will revise.(effective Apr. 2012) -Medical treatment fees revise every 2 years, Nursing care fees revise every 3 years. Both fees will revise at the same time. -Medical treatment fees revised:+0.004%(Previous +0.19%), Nursing car
Slide 12: Market Environment: Medical and care service systems
Market Environment Changes and prospects for medical and care service systems Medical System Care Service System Medical Service Law, Health and Medical Medical treatment fees Care Service Law, Nursing Care Insurance, etc. Nursing care fees Service Law for the Aged, Medical Insurance, etc Amendment
Slide 13: Revisions to medical treatment fees
Market Environment Revisions to medical treatment fees （％） 5 5.0 4.8 Overall 4 Pharmacy 3.7 3.3 3.4 3.4 Treatment 3 2.3 2 1.9 1.7 1.5 2.6 2.8 1 0.7 1.4 0.4 1.6 1.4 1.0 0.4 0.2 0.8 0.8 0.8 0.5 0.0 0 0.0 0.1 -1.0 0.2 -0.8 -1.3 -1.3 -1.4 -1.4 -1.4 1 -1.0 -1.3 -1.2 -1.5 -2.7 -3.2 2 -1.7 -1.9 -2.0 -2.4 -
Slide 14: Supply and Demand of Nursing Staff
Market Environment Supply and Demand of Nursing Staff (Source: the Ministry of Health, Labor and Welfare (December 2010)) (10,000 persons) Change to actual number as 175 Demand from the 7th Outlook. Forecast Actual Decreased number of nursing staff on both supply 150 and demand sides for technical r
Slide 15: Supply and estimated future need for care workers
Market Environment (10,000 persons) Supply and estimated future need for care workers 250 forecast(maximum) 31 forecast(minimum) 200 Actual 150 213 100 128 134 119 124 113 50 100 89 76 66 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '25 "Minimum" was estimated on the basis of actual Actual record :s
Slide 16: III Forecast for FY2012
If Forecast for FY2012 15
Slide 17: Management Tasks for This Term and Status
Management Tasks for This Term and Status •Capture clusters of needs in the healthcare Marketing strategy wear market to boost sales •Increase peripheral business in products for patients and surgery •Develop new markets Production strategy •Strengthen ties with material makers and trade firms. to e
Slide 18: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2012 E % Change (FY2011) Composition % Change Net sales 14,800 + 1.5 - Gross profit 6,884 + 1.2 -0.1 Sales, general, and administrative expenses 2,505 + 2.9 0.2 Operating income 4,379 + 0.5 -0.3 Recurring income 4,425 + 3.5 0.6 Net income 2,606 + 4
Slide 19: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2011 FY2012E 16,000 Sales +3.6% +1.5% 14,000 Shoes/Others 12,000 Healthcare wear +4.2% +1.2% Surgery wear 10,000 Doctors' wear +3.6% +1.5% Patient wear 8,000 Utility wear -7.5% -5.2% Utility wear 6,000 Patient wear +6.6% +7.3%
Slide 20: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2011 FY2012E 16,000 Total sales +3.6% +1.5% 14,000 Overseas East Japan -0.5% +0.9% 12,000 10,000 Central Japan +7.1% +1.3% West Japan 8,000 West Japan +9.2% +2.5% Central Japan 6,000 Overseas +1.7% +0.1% 4,000 East Japan 2
Slide 21: Product Strategy
Product Strategy Sales by Product (¥ million) Year-on-year change FY2011 FY2012E 16,000 Sales +3.6% +1.5% 14,000 DC brand DC brand products +2.5% +5.2% products 12,000 High Functional products +10.8% +3.0% 10,000 High Functional Standard Functional products -0.4% +1.1% 8,000 products Standard Mass p
Slide 22: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2011 FY2012E Purchased products Domestic production 58.8% 56.0% 7,500 45 Overseas production 37.9% 39.6% Overseas production Purchased products 3.3% 4.4% 5,000 40 Domestic production 2,500 35 Ratio of overseas p
Slide 23: IV Management Goals
IV Management Goals 22
Slide 24: Sales Strategy
Sales Strategy FY2008 FY2011 FY2014E (3 terms ago) (Previous term) (3 terms later) Healthcare 60% 59% Doctors' 60% 15% Sales by Item 17% 16% Utility 4% 8% 6% Patient 6% Patient 7% 8% 6% Surgery 8% Surgery 4% Others 3% 2% 11% Central Japan 11% East Japan 11% Sales by Region 11% 54% 53% 51% West Japan
Slide 25: Net Sales and Gross Profit to Sales Ratio
Net Sales and Gross Profit to Sales Ratio (¥ million) (%) 17,500 Net sales (left) 15,000 55 Gross profit to sales (right) 12,500 10,000 45 7,500 5,000 35 2,500 0 25 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 12E13E14E (FY) Note: Consolidated data sin
Slide 26: V Rewarding shareholder-focused policies
Ⅴ Rewarding shareholder-focused policies 25
Slide 27: Profit Reimbursement to Shareholders
Profit Reimbursement to Shareholders Shareholder-focused policies - Improvement of transparency by proactive disclosure - Interactive communication with investors - Profit reimbursement by high dividends Dividend policy - Basic policy is to continue stable dividend payment with payout ratio of 50% S
Slide 28: Results in FY2011 Dividend payment
Results in FY2011 DPS in FY2011 was 70 yen. Dividend Payout ratio（non-c）was 51.9%. payment *This DPS is the number before adjusted of the share split. Improve to buy our shares for investors and increase circulation of shares. Share split Two-for-one share split for shareholders as of August 31, 201
Slide 29: Actual Dividends Paid
Actual Dividends Paid Total Share Adjusted Total payout DPS dividend buyback Payout ratio DPS ratio （yen） （yen）* （Million （Million （non-c, ％） （non-c, ％） yen） yen） FY2001 25 12.5 475 0 27.6 27.6 FY2002 25 12.5 475 0 29.3 29.3 FY2003 30 15.0 530 1,697 29.7 124.6 FY2004 40 20.0 744 0 36.5 36.5 FY2005 6
Slide 30: Management Philosophy
Management Philosophy We will provide medical products and services of the highest quality, as the leading company to link "medical services" and "clothing." - Consistently challenging spirit to lead the industry - Achievement of contribution to society - "Respect for Harmony among People" people ar
Slide 31: Data File
Data File First-half FY2012 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Ohno, Administration Headquarters (03-3863-0371)>
Slide 32: Index
Index 1 … Sales by Item 2 … Sales by Product 3 … Sales by Region 4 … Rationalization of the Production System and Our Purchasing Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9
Slide 33: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 08/8 09/8 10/8 11/8 12/8E 11/8 12/8 Sales 13,632 13,669 14,076 14,578 14,800 5,779 6,186 (¥ million) Healthcare wear 7,966 8,002 8,328 8,675 8,780 3,434 3,552 16,000 Doctors' wear 2,324 2,280 2,226 2,306 2,340 838 919 Utility wear 1,058 987 935 8
Slide 34: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 08/8 09/8 10/8 11/8 12/8E 11/8 12/8 16,000 Sales 13,632 13,669 14,076 14,578 14,800 5,779 6,186 DC brand products 1,060 1,086 974 998 1,050 400 426 14,000 High Functional products 5,327 5,273 5,612 6,216 6,400 2,514 2,620 Standard
Slide 35: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 08/8 09/8 10/8 11/8 12/8E 11/8 12/8 (¥ million) Sales 13,632 13,669 14,076 14,578 14,800 5,779 6,186 16,000 East Japan 7,421 7,602 7,776 7,739 7,810 3,107 3,198 Central Japan 1,484 1,437 1,447 1,550 1,570 627 638 14,000 West Japan 4,614 4,519 4
Slide 36: 4. Rationalization of the Production System and Purchasing Strategy
4. Rationalization of the Production System and Our Purchasing Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 08/8 09/8 10/8 11/8 12/8E 10,000 45 11/8 12/8 Domestic production 4,821 4,248 4,561 4,921 4,820 2,418 2,527 Overseas production 3,356 2,921 2,698 3,174 3,408
Slide 37: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 08/8 09/8 10/8 11/8 12/8E 11/8 12/8 Net Sales 13,632 13,669 14,076 14,578 14,800 5,779 6,186 Gross profit 5,960 6,029 6,388 6,793 6,884 2,677 2,902 Sales, general, and administrative expenses 2,463 2,391 2,383 2,434 2,505 1,
Slide 38: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 08/8 09/8 10/8 11/8 12/8E 11/8 12/8 Net Sales 13,631 13,668 14,072 14,574 14,800 5,777 6,183 Gross profit 5,625 5,789 6,134 6,464 6,553 2,557 2,750 Sales, general, and administrative expenses 2,493 2,375 2,369 2,413 2,49
Slide 39: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 07/8 08/8 09/8 10/8 11/8 11/8 12/8 Profitability ROE (%) 8.3 7.4 5.4 8.4 8.5 - - ROA (%) 12.3 11.4 11.5 12.5 13.0 - - Return on sales Net income (%) 16.2 15.4 11.1 16.7 17.1 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 40: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 07/8 08/8 09/8 10/8 11/8 11/8 12/8 Profitability ROE (%) 8.2 7.4 7.2 8.4 8.6 - - ROA (%) 12.1 11.3 12.0 12.7 13.1 - - Return on sales Net income (%) 14.8 14.2 13.5 15.6 15.9 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5 0.5
Slide 41: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 10/8 11/8 Change(the previous year) First-half 11/8 First-half 12/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 14,076 100.0 14,57
Slide 42: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 10/8 11/8 Change(the previous year) First-half 11/8 First-half 12/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 14,072 100.0
Slide 43: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 10/8 11/8 Change(the previous year) First-half 11/8 First-half 12/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 24,498 76.3 23,349
Slide 44: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 10/8 11/8 Change(the previous year) First-half 11/8 First-half 12/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 22,278 75.0 21,0
Slide 45: Notes on this material
Notes on this material This material includes forecasts for the future. These forecasts are based on the judgment of the Company's management concerning currently available information. These future projections include assumptions or views based on assumptions, and therefore may be different from th