J Frontier Co., Ltd. · TSE:2934
J Frontier — Q2 FY ending May 2022 Earnings Presentation
26 slides from J Frontier's earnings presentation, Jan 14, 2022
Slide 1: Presentation Material on Financial Results for Second Quarter of FY ending May 2022
Presentation Material on Financial Results for Second Quarter of FY ending May 2022 January 14, 2022 J Frontier Co., Ltd. Securities code: 2934
Slide 2: Financial Results for Second Quarter of FY ending May 2022
◼ 01 Financial Results for Second Quarter of FY ending May 2022 ➢ Highlights ➢ Summary of Consolidated Financial Results Consolidated Income Statements, Consolidated Balance Sheet ➢ Results and Progress on KPIs by Business, and Topics ➢ Full-Year Consolidated Forecasts ◼ 02 New Business Development
Slide 3: Consolidated Financial Results for Second Quarter of FY ending May 2022
Financial Results Consolidated Financial Results for Second Quarter of FY ending May 2022
Slide 4: Financial Highlights
Consolidated Financial Results for Second Quarter of FY ending May 2022 (Cumulative): Highlights Financial Highlights Net sales: 3,912 million yen (progress rate: 38％); operating income: 263 million yen (progress rate: 31％) Overview of ◼ Strong performance on number of new subscribers secured (KPI)
Slide 5: Summary of Consolidated Statement of Profit and Loss
Summary of Consolidated Statement of Profit and Loss ◼ The D2C business recorded considerable sales to new subscribers with low customer unit prices, which achieved a progress rate of just under 40% in terms of sales amounts ◼ However, the D2C Business showed strong performance on the number of new
Slide 6: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary ◼ Funds raised through the IPO contributed to a stronger financial; standing by enhancing net assets as well (net asset ratio: 78.9％) ◼ Accelerated M&A activities resulted in two new subsidiaries. Consolidated goodwill was recorded (recent M&As added 138 million ye
Slide 7: SOKUYAKU business: Progress on KPIs
SOKUYAKU business: Progress on KPIs Progressing on the main KPIs of number of partner hospitals, number of partner pharmacies, and number of registered users at paces surpassing plans ◼ Rates of progress vs. full-year plans: 82％ for number of partner hospitals, 77％ for number of partner pharmacies,
Slide 8: SOKUYAKU business: Topics
SOKUYAKU business: Topics (i) Launching SOKUYAKU device installation service ⇒ Further expanding means of revenue generation (see p.18) (ii) Partnership with a major dispensing pharmacy chain ⇒ Promoting Sokuyaku partnerships (iii) Exhibiting booths at major medical conferences ⇒ Sales approach to c
Slide 9: SOKUYAKU business: Progress on expansion of same-day delivery areas
SOKUYAKU business: Progress on expansion of same-day delivery areas Aiming to be the “Uber” of the dispensing pharmacies industry ⇒ Building a same-day delivery network with delivery within 30 minutes at the earliest April 2021: 23 wards of Tokyo and Yokohama August 2021: City of Osaka Sapporo Octob
Slide 10: D2C business: Progress of financial results
D2C business: Progress of financial results ◼ Rate of progress through 2Q ⇒ Strong performance despite achieving only about 40％ of plans on a sale-amount basis Healthcare Sales Business: Progress rate of 36％ ⇒ Made progress on securing new customers in 2Q. Many new customers' first purchases involve
Slide 11: D2C business: KPI progress
D2C business: KPI progress ◼ Rate of progress on the D2C KPI of number of new subscribers secured ⇒ Achieved 61％ ◼ Successfully reduced customer acquisition cost (CAC) per customer through progress in development of new advertising media ◼ Recording repeat sales in 3Q and beyond to new subscribers s
Slide 12: D2C business: Earnings structure
D2C business: Earnings structure Attracting customers Fixed-term course First Second Third Termination Unit delivery delivery delivery ・・・・ price ¥980- ¥5,000- ¥5,000- ¥1,980 ¥7,000 ¥7,000 ・・・・ Web Informercials SNS First sales Repeat (continuing member) sales figure Customer acquisition cost per cu
Slide 13: B2B business (Healthcare Marketing): KPI progress and topics
B2B business (Healthcare Marketing): KPI progress and topics ◼ Rate of progress on number of trading partner companies (KPI): 97％ ⇒ Realizing efficient new-customer development through inside sales ◼ This is leading to securing new spot transactions (advertising, wholesaling) and steady financial re
Slide 14: Full-Year Consolidated Forecasts for FY ending May 2022
Full-Year Consolidated Forecasts for FY ending May 2022 We project growth of 24% in net sales and 27% in operating income in the FY ending May 2022 compared to the FY ended May 2021 Consolidated net sales Consolidated operating income Unit: 100 million yen Growth Unit: 100 million yen 120 rate: 105
Slide 15: New Business Development
New Business Development New Business Initiatives
Slide 16: Implementing strategic M&As
１．Implementing strategic Ｍ＆Ａs ◼ We have implemented the following two Ｍ＆Ａs and continue to consider proposed Ｍ＆Ａs to strengthen our businesses Company/ Lines of business/segments Strengths Synergy effects summary ➢ Human-resources i. HR support for AIGATE Career SOKUYAKU partner referrals and tempor
Slide 17: SOKUYAKU business: Releasing a new ASP service
２．SOKUYAKU business: Releasing a new ASP service Launching an ASP version of SOKUYAKU and offering telemedicine environment exclusively for corporate customers Potential demand for closed telemedicine and online medication guidance Issues ■ Medical corporations, dispensing pharmacy chains: Exclusive
Slide 18: SOKUYAKU business: ASP service adoption case study: Value HR
SOKUYAKU business: ASP service adoption case study: Value HR Promoting health management and providing telemedicine for employees from a health and welfare perspective ◼ Changes to work styles, including the spread of working from home, can have negative effects on employees' health due to susceptib
Slide 19: SOKUYAKU business: Expanding means of revenue generation
SOKUYAKU business: Expanding means of revenue generation ◼ Further expanding means of revenue generation along the following two aspects ◼ In particular, enhancing sales structures to grow 2B service sales (internal direction and outsourcing) 1) 2C services ◼ Telemedicine, online medical guidance, a
Slide 20: Appendix: Additional Information
APPENDIX Additional Information
Slide 21: SOKUYAKU device installation service: Business overview
SOKUYAKU device installation service: Business overview Helping communities and seniors faced with a shortage of doctors and by supporting the management of rural medical care facilities <Issues faced by residents> <Issues faced by local governments> (i) Nearby medical care facilities do not offer t
Slide 22: SOKUYAKU device installation service: Example of installation
SOKUYAKU device installation service: Example of installation Practical example of initiatives: Installing a SOKUYAKU deveice inside Nyuzen Central Hospital in Toyama Prefecture Issues faced by the hospital: Nyuzen Central Hospital in Toyama Prefecture lacks an orthopedic surgery specialist. Althoug
Slide 23: Sokuyaku kiosk installation service: Example of installation
Sokuyaku kiosk installation service: Example of installation Practical example of initiatives: Installing a Sokuyaku terminal inside Nyuzen Central Hospital in Toyama Prefecture ◼ Patients undergo online checkups by a specialist inside the hospital. ◼ Since they pay at the hospital counter after the
Slide 24: The market environment of the SOKUYAKU healthcare platform business (1)
The market environment of the SOKUYAKU healthcare platform business (1) Trend in medication costs as a share of medical costs Telemedicine market (Prior to cabinet decision to permit telemedicine (Trillion yen) (Million prescriptions) (100 million yen) from initial diagnosis permanently (June 2021))
Slide 25: The market environment of the Sokuyaku healthcare platform business (2)
The market environment of the Sokuyaku healthcare platform business (2) The current shortage of healthcare workers is expected to continue in the future ⇒ It is essential to improve efficiency and productivity in the field in healthcare Physicians per 1000 population (doctors) Population aged 65 and
Slide 26: The market environment of the SOKUYAKU healthcare platform business (3)
The market environment of the SOKUYAKU healthcare platform business (3) ◼ State of medical institutions ◼ Medical institutions’ interest in adoption of telemedicine Plan to adopt Environmental Number of hospitals and clinics nationwide improvements 88.2% 15.2% Responsibility Unsure (36 hospitals) fo
J Frontier — Q2 FY ending May 2022 Earnings Presentation on 6ix