Slide 1: Analyst Guide FY2017
ANALYST GUIDE FY2017 October 2017 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 2: Overview FY2017
Overview FY2017 1 Sales & Income -Net Sales and Operating Income recorded highest. Sales: ¥17,017 m Operating income: ¥5,242 m 2 The Change of Business Environment - Market Condition The impact of Medical treatment fees revision was negligible. - Production Condition: (In Japan) The sewing costs inc
Slide 3: I About Nagaileben
gan 1) =About “NAGAILEBEN” i + = @ NAGAILEBEN
Slide 4: Outline: 100th year in business
Outline 100th year in business 1 Establish competitive position in medical clothing market -Approximately 60% market share -Wide field, planning, manufacturing and in domestic medical clothing marketing - The number of shipments is over 6 -Competitive product such as extensive products, million clot
Slide 5: Outline: High profitability and strong balance sheet
Outline Highly profitability 3 47.5% Change of Gross Profit to Sales (2017) 50 (%) Strong balance sheet 45 - Realization of high profitability 33.1% 40 (1990) 45.3% with radical pursuit of efficiency 28.6% (2010) -Gross profit to sales 47.5% (as of FY2017) 35 (1980) 39.7% 30 -Capital-to-asset ratio
Slide 6: CSR/ESG
CSR/ESG Support for Women Regional Contribution Women principal domains: Medical and Sewing Medical Kids Project Products of Nagaileben are mainly for Miffy’s Visits to Hospitals women, who work as a nursing staff or a care worker. At production sites of For interchange between hospitals and local N
Slide 7: Agenda
Agenda I About “NAGAILEBEN” II Financial Review FY2017 III Market Environment IV Forecast for FY2018 V Management Goals VI Rewarding shareholder-focused policies Copyrights Nagaileben Co.,Ltd. All rights reserved. 6
Slide 8: II Financial Review FY2017
II Financial Review FY2017 SSS @ NAGAILEBEN
Slide 9: Financial Highlights <Statements of Income>
Financial Highlights <Statements of Income> Composition % (millions of yen,%) FY2017 % Change To Forecast % Composition % Change Net sales 17,017 +2.9 +0.1 100.0 － Gross profit 8,086 +4.5 +1.8 47.5 +0.8 Sales, general, and administrative expenses 2,843 +2.1 +0.2 16.7 -0.1 Operating income 5,242 +5.9
Slide 10: 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 22,762 +3,257 +16.7 Notes and accounts receivable Cash and cash equivalents up ¥ 3,257 million 5,038 +110 +2.2 (including electronica
Slide 11: Segments by Item
Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Copyrights Nagaileben Co.,Ltd. All rights reserved. 10
Slide 12: Sales by Item
Sales by Item Doctors' 15.7% Utility 3.3% Patient [Healthcare wear] 10.5% -Sales grew steadily, by satisfactory contracts of High Value-Added new products, especially in East Japan. Surgery [Doctors' wear] 9.6% -The sales of High-End products overcame the decrement Healthcare of Mass products. 1.2%
Slide 13: Sales by Region
Sales by Region Central Japan 10.3% [East Japan] West Japan - Sales exceeded the previous year, by catching renewal and new contracts steadily, and result of sales 35.7% promotion of Patient wear. [Central Japan] -Market size was not large and there was the influence by the size of contracts. In thi
Slide 14: III Market Environment
Market Environment @ NAGAILEBEN 13
Slide 15: Market Environment Topics
Market Environment Topics Uncertain Prospects of Market Simultaneous revision of medical treatment fees and nursing care fees.(effective Apr. 2018) The number of Nursing Staff and Care workers is increasing gently. Rising sewing costs Overseas: The cost of labor charge around China and Southeast Asi
Slide 16: Changes and prospects for medical and care service systems
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 Medical program for very elde
Slide 17: Revisions to medical treatment and care Service fees
Revisions to medical treatment and care Service fees （％） 5 Service: +0.49% Drug price: -1.33% 4 +2.8 +3.0 3 +2.6 Consumption tax increase 2 +1.0 +1.2 1 +0.8 +0.6 +0.4 +0.2 +0.2 +0.0 +0.1 0 -1 ▲0.3 ▲0.1 ▲0.8 ▲0.8 -2 ▲1.3 ▲2.3 ▲2.4 ▲2.3 -3 Medical Care Service ▲3.2 Home-1.42%, -4 Facilities -0.85% -5
Slide 18: Supply and Demand of Nursing Staff
Supply and Demand of Nursing Staff (Source: the Ministry of Health, Labour and Welfare (December 2010)) (10,000 persons) Actual(2015) 175 Change to actual number as 1,634 k Demand from the 7th Outlook. persons Forecast Actual Decreased number of nursing staff on both supply 150 and demand sides for
Slide 19: Supply and Estimated Future Need for Care Workers
Supply and Estimated Future Need for Care Workers (10,000 persons) 300 Forecast 253 250 Actual 200 150 253 100 163 171 141 143 151 120 123 109 114 50 96 85 64 72 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '25 Since the number of track records are subject to the influence of change
Slide 20: Supply and Estimated Future Need
Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 253 250 forecast(maximum) forecast(minimum) 206 200 Actual 150 253 100 196 157 171 50 0 2013 2025 2013 2025 Actual record: Japanese Nursing Associations’ statistical data •Source: MHLW, document ” estimation of care wor
Slide 21: IV Forecast for FY2018
IV Forecast for FY2018 = @ NAGAILEBEN 20
Slide 22: Management Tasks and Status
Management Tasks and Status • Capture clusters of needs Marketing strategy to in the healthcare wear market increase sales • Increase peripheral business in products for patients and surgery • Cultivate overseas markets • Strengthen domestic production Production strategy to (wage increase) ensure a
Slide 23: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2018E % Change (FY2017) Composition % Change Net sales 17,500 +2.8 － Gross profit 8,260 +2.2 -0.3 Sales, general, and administrative expenses 2,886 +1.5 -0.2 Operating income 5,373 +2.5 -0.1 Recurring income 5,448 +2.0 -0.3 Net income 3,739 +1.8 -0
Slide 24: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2017 FY2018E 20,000 18,000 Sales +2.9% +2.8% Shoes/Others 16,000 Healthcare wear +2.8% +2.7% 14,000 Surgery wear Doctors' wear +1.0% +2.6% 12,000 Patient wear 10,000 Utility wear -7.4% -8.5% Utility wear 8,000 Patient wear +10
Slide 25: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2017 FY2018E 20,000 18,000 Total sales +2.9% +2.8% 16,000 Overseas East Japan +5.5% +2.0% 14,000 12,000 West Japan Central Japan +2.3% +3.0% 10,000 West Japan -0.2% +3.8% 8,000 Central Japan 6,000 Overseas -8.2% +8.4% 4,00
Slide 26: Product Strategy
Product Strategy Sales by Product Year-on-year change FY2017 FY2018E (¥ million) 20,000 Total sales +2.9% +2.8% 18,000 High-End products +7.9% +7.4% 16,000 High-End High Value-Added 14,000 +3.3% +4.3% High Value- products 12,000 10,000 Added Value-Added +2.3% +0.9% 8,000 Value-Added products 6,000 M
Slide 27: Product Categories changed
Product Categories changed DC brand products (Retail price) (Retail price) High-End products High Functional products 10,000Yen 10,000Yen High Value-Added products 7,500Yen Standard Functional products 7,500Yen 5,000Yen Value-Added products 5,000Yen Mass products Mass products Price composition Pric
Slide 28: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2017 FY2018E Purchased products Domestic production 50.6% 50.0% 7,500 45 Overseas production Overseas production 48.1% 48.8% Purchased products 1.3% 1.2% 5,000 40 Domestic production 2,500 35 Ratio of overseas p
Slide 29: V Management Goals
V Management Goals 28
Slide 30: Sales Strategy / Profit Strategy
Business Direction Sales Strategy -Increase peripheral business in products for Patients and Surgery. -Gain share In West Japan. -Develop and Sale of High-End and High Value-Added products. -Cultivate Overseas Markets. Profit Strategy -Driving the strategy of Higher Quality and Value-Added products.
Slide 31: Sales Strategy: Products and Targets for FY2020E
Sales Strategy FY2014 FY2017 FY2020E (3 terms ago) (Previous term) (3 terms later) net sales ¥16,214 million ¥17,017 million ¥18,500 million Healthcare 58% Doctors' 58% 57% 15% 17% 16% 2% Utility Item 5% 3% Patient 8% Patient 13% 11% 9% Surgery Surgery 3% 10% 2% 12% Others 11% 1% 10% East Japan 10%
Slide 32: Trend of Business Records
Trend of Business Records (¥ million) (%) 17,500 Net sales (left) 55 15,000 Gross profit to sales (right) 12,500 45 10,000 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 11 12 13 14 15 16 17 18E19E20E (FY) Note: Consolidated dat
Slide 33: VI Rewarding shareholder-focused policies
VI Rewarding shareholder -focused policies 日本ではじめてのナースのための心のコミュニケーションスペース「いとなギャラリー」 32
Slide 34: Reimbursement Policy / Shareholder-focused policies
Reimbursement Policy 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% Share buyback - A
Slide 35: The History of Stock Value
The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,200 125 ※1 FY2009: Accrued pension fund withdrawal FY2001 532.5 50.8 12.5 payment loss ¥1.04b. A dotted line is when there was not outbreak. FY2002 568.3 48.0 12.5 1,100 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 100 1,000 FY2
Slide 36: Actual Dividends Paid
Actual Dividends Paid Total dividend Share buyback Payout ratio Total return ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.6 27.6 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 FY2005 1,117 0 56.9 56.9 FY2006 1,117 0 53.4 53.4 FY2007 1,117 0 53.1
Slide 37: Management Philosophy
Management Philosophy Our management philosophy are “Let us help the human life” and “Harmony”. We think that well-balanced growth with human, profit and philanthropy become the responsible corporate. Furthermore, we have our company spirit, “Nagaism”. We continue to specialize in medical / nurse /
Slide 38: 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