Nagaileben Co., Ltd. · TSE:7447

Nagaileben — FY2021 Earnings Presentation

50 slides from Nagaileben's earnings presentation, October 2021

  1. Slide 1: Analyst Guide

    Our Message to Medical Workers We sincerely would like to express deep appreciation for your devoted works on the frontiers against COVID-19. We will never forget your courage. (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) ANALYST GUIDE October 2021 <Contact for information on t

  2. Slide 2: Summary

    Summary Net Sales recorded the highest Net Sales: ¥17,563 m (y/y Change +2.9%) The Accounting Standard for Revenue Recognition The Accounting Standard for Revenue Recognition is applied beginning with FY2022. The effect of which on consolidated operating performance will be estimated ¥2m (Compositio

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3p Ⅱ Market Environment ・・ ・・・ 8p Ⅲ Financial Review of FY2021 ・ ・・12p and Forecast for FY2021 Ⅳ Management Goals ・・・・・・ 24p Ⅴ Rewarding shareholder- ・・・ 28p focused policies 2 © Nagaileben Co.,Ltd.

  4. Slide 4: About Nagaileben

    Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.

  5. Slide 5: Outline: Competitive position and stable growing market

    Outline Over 100 years in business (Established in 1915) 1 Competitive position in medical clothing market -Approximately 60% market share -Integrated Production System in domestic medical clothing Planning, Manufacturing and Marketing - The number of shipments is -Competitive product such as extens

  6. Slide 6: Outline: High profitability, strong balance sheet, shareholder returns

    Outline 3 Highly profitability Strong balance sheet - Realization of high profitability (%) 50 Change of Gross Profit 売上総利益率 の推移 to Sales 45.9% (2021) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 45.9% 40 28.6% (1990) 45.3% -Capital-to-asset ratio 90.5% (2010) 35 (1980) 39.7% -

  7. Slide 7: Let us help the human life

    SDGs Solve social issues through our business 2050 Low-Carbon Social Responsibility Environmental - Assist hospital to reduce Efforts waste and be more economical. -Regional Contribution - Consideration to Regional through Production Base environmental load of business. -Support hospital facilities

  8. Slide 8: CSR Our Efforts based on Let us help the human life

    CSR Our Efforts based on “Let us help the human life” What’s NEW Appeared in SDGs' school textbook Remaking of nursing student' wears We made recycled products from training w Our efforts are appeared in SDGs' school t ears which were used by nursing students in extbook, which is distributed to elem

  9. Slide 9: Market Environment

    II Market Environment 8 © Nagaileben Co.,Ltd.

  10. Slide 10: Topics

    Topics Confusion of market still continues -With regard to Covid-19, Japanese government supports medical institutions(The total amount about 3 Trillion Yen) -Care service fees was revised (effective April 2021). +0.70% (For correspondence to Covid-19 +0.05%) -Drug price was revised (effective April

  11. Slide 11: Revisions to medical treatment and care service fees

    Environment Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 +1.9 2 +1.5 +1.6 +0.7 +1.4 +0.6 +0.6 +1.2 1 +0.7 +0.5 +0.4 +0.6 +0.5 +0.4 +0.4 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 0.5 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.0 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲

  12. Slide 12: Supply and Estimated Future Need

    Environment Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 250 forecast(maximum) 245 forecast(minimum) Actual 202 200 150 245 100 188 188 168 50 0 2019 2025 2018 2025 Source: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care S

  13. Slide 13: Financial Review of FY2021 and Forecast for FY2022

    II Financial Review of FY2021 and Forecast for FY2022 12 © Nagaileben Co.,Ltd.

  14. Slide 14: Current Status of Marketing Strategy

    Business Plan Current Status of Marketing Strategy Capture needs with strategy for value-added products in core market Marketing strategy to Increase share of peripheral market increase sales Cultivate overseas markets by expanding our business model in Japan Core Market Peripheral Market Overseas M

  15. Slide 15: Management Tasks and Status

    Business Plan Management Tasks and Status Strengthen domestic production -Strengthen ability to respond Quick Response and Production strategy to Small-rot multi-production ensure a steady supply -Rising manufacturing cost due to increase in labor cost Shift to overseas production from domestic. Imp

  16. Slide 16: Consolidated Results

    Consolidated Results Financial Review of FY2021 and Forecast for FY2022 FY2021 FY2022 (millions of yen,%) Full(Results) To Forecast % % Change Full(Forecast) % Change Net sales 17,563 +1.5 +2.9 17,700 +0.8 Gross profit 8,058 +0.6 +3.2 7,973 -1.1 Sales, general, and administrative 2,846 -3.2 -0.9 2,9

  17. Slide 17: Specific Factors in Net Sales

    Topics Specific Factors in Net sales 1: Supply infection prevention products To MHLW 2: The Accounting Standard for Revenue Recognition FY2020 FY2021 FY2022E Net sales ¥17,563 m ¥17,700 m ¥17,066 m Year-on-year change (+2.9%) (+0.8%) factor 1 ¥945 m ¥315 m ー factor 2 ー ー *-¥20 m Excluding above fact

  18. Slide 18: Consolidated Results: Gross profit

    Consolidated Results Financial Review of FY2021 and Forecast for FY2022 FY2021 FY2022 (millions of yen,%) Full(Results) To Forecast % % Change Full(Forecast) % Change Net sales 17,563 +1.5 +2.9 17,700 +0.8 Gross profit 8,058 +0.6 +3.2 7,973 -1.1 Sales, general, and administrative 2,846 -3.2 -0.9 2,9

  19. Slide 19: Consolidated Results: SG&A and capital expenditure

    Consolidated Results Financial Review of FY2021 and Forecast for FY2022 FY2021 FY2022 (millions of yen,%) Full(Results) To Forecast % % Change Full(Forecast) % Change Net sales 17,563 +1.5 +2.9 17,700 +0.8 Gross profit 8,058 +0.6 +3.2 7,973 -1.1 Sales, general, and administrative 2,846 -3.2 -0.9 2,9

  20. Slide 20: Financial Review of FY2021 (Balance Sheet)

    Consolidated Results Financial Review of FY2021 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 27,879 +2,232 +8.7 Notes and accounts receivable 4,775 -798 -14.3 Cash and cash equivalents Up 2,232 milli

  21. Slide 21: Market Classification

    Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Shoes Patient wear Doctors' wear Utility wear Infection prevention Surgery wear 20 © Nagaileben Co.,Ltd.

  22. Slide 22: Segment Sales by Item

    Segment Sales by Item y/y change FY2021 FY2022 Composition Doctors' (FY2021) Utility (%) First-half Full Full(E) 15.0% 2.2% Total sales +14.4 +2.9 +0.8 Patient 14.4% Healthcare wear +7.2 +8.2 +0.9 Core Market Doctors' wear +5.7 +6.1 +2.0 Utility wear +9.2 -3.9 -7.7 Surgery 9.4% Shoes/Others +2.3 -2.

  23. Slide 23: Product Strategy

    Business Plan Product Strategy y/y change FY2021 FY2022E (%) Sales by Product Total sales +2.9 +0.8 High-End (¥ million) products +13.6 +3.4 20,000 High Value-Added 18,000 MHLW products +7.0 +4.2 16,000 Value-Added 14,000 High-End products +6.5 +0.6 12,000 High Value- Mass products +1.1 -1.9 10,000

  24. Slide 24: Production Strategy

    Business Plan Production Strategy Composition Production (%) FY2021 FY2022E (Non-Consolidated) Domestic (¥ million) (%) production 48.1 47.3 10,000 55 Overseas Purchased production 50.7 51.7 products 7,500 50 Purchased Overseas products 1.2 1.0 production 5,000 45 Domestic production Ratio of overse

  25. Slide 25: Management Goals

    IV Management Goals 24 © Nagaileben Co.,Ltd.

  26. Slide 26: Business Direction

    Strategy Business Direction Market -Capture needs in core market -Increase share of peripheral market -Cultivate overseas markets Product -Develop and Sale of High-End and High Value-Added products. -Shift to Overseas Production. Production -Strengthen ability to respond Quick Response and Small-rot

  27. Slide 27: Business Direction: FY2024E targets

    Strategy Business Direction FY2018 FY2021 FY2024E (3 terms ago) (Previous term) (3 terms later) net sales ¥17,144 million ¥17,563 million ¥18,500 million Core 75% 72% 78% Market Peripheral 21% 24% 26% Overseas 1% 2% 1% High Value-Added 53% 55% 51% Product Value-Added 36% 34% 33% Mass 5% High-End 7%

  28. Slide 28: Trend of Business Records

    Strategy Trend of Business Records (¥ million) （％） 20,000 60 17,500 Net sales (left) 55 Gross profit to sales (right) 15,000 50 12,500 45 10,000 40 7,500 35 5,000 2,500 30 0 25 80 86 92 98 04 10 16 22 23 24 22E E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preceding years re

  29. Slide 29: Rewarding shareholder-focused policies

    V Rewarding shareholder -focused policies 28 © Nagaileben Co.,Ltd.

  30. Slide 30: Shareholder-focused policies

    Reward 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 buyb

  31. Slide 31: The History of Stock Value

    Reward The History of Stock Value （Yen） （Yen） BPS EPS DPS （yen） （yen） （yen） 1,400 125 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 line is when there was not outbreak. 568.3 48.0 12.5 1,300 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 1,200

  32. Slide 32: Actual Dividends Paid

    Reward Actual Dividends Paid Total Total Share Payout return dividend buyback ratio ratio （Million yen） （Million yen） （non-c, ％） （non- c, ％） FY2001 475 0 27.4 27.4 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 2004/2/24 Stock split 2-for-1 FY2005 1,117 0 56.9 56.9 FY2006

  33. Slide 33: 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 /

  34. Slide 34: 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

  35. Slide 35: Data File

    Data File FY2021 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200

  36. Slide 36: Index

    Index 1 … Sales by Market 2 … Sales by Item 3 … Sales by Product 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

  37. Slide 37: Sales by Market

    1. Sales by Market (¥ million) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 18,000 20/8 21/8 Sales 17,144 16,785 17,066 17,563 17,700 7,051 8,069 16,000 Core Market 13,358 12,995 13,115 13,207 13,023 5,253 6,000 Peripheral Market 3,572 3,601 3,750 4,153 4,467 1,692 1,992 14,000 Ove

  38. Slide 38: Sales by Item

    2. Sales by Item (¥ million) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 18,000 20/8 21/8 Sales 17,144 16,785 17,066 17,563 17,700 7,051 8,069 16,000 Healthcare wear 9,974 9,681 8,944 9,673 9,760 3,958 4,244 Doctors' wear 2,671 2,673 2,475 2,626 2,680 1,061 1,122 14,000 Utility we

  39. Slide 39: Sales by Product

    3. Sales by Product (¥ million) First-half First-half (¥ million) FY 18/8 19/8 20/8 21/8 22/8E 20/8 21/8 18,000 Sales 17,144 16,785 17,066 17,563 17,700 7,051 8,069 High-End products 1,269 1,274 1,072 1,218 1,260 493 513 16,000 High Value-Added products 8,759 8,969 8,692 9,302 9,690 3,817 4,097 Valu

  40. Slide 40: 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 18/8 19/8 20/8 21/8 22/8E 10,000 55 20/8 21/8 Domestic production 4,678 4,584 4,743 4,581 4,698 2,267 2,376 Overseas production 4,625 4,566 4,775 4,824 5,135

  41. Slide 41: Statements of Income (Consolidated)

    5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 20/8 21/8 Net Sales 17,144 16,785 17,066 17,563 17,700 7,051 8,069 Gross profit 8,050 7,840 7,810 8,058 7,973 3,263 3,718 Sales, general, and administrative expense 2,786 2,922 2,872 2,846 2,960 1,5

  42. Slide 42: Statements of Income (Non-Consolidated)

    6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 18/8 19/8 20/8 21/8 22/8E 20/8 21/8 Net Sales 17,140 16,777 17,061 17,552 17,700 7,048 8,063 Gross profit 7,835 7,694 7,650 7,875 7,742 3,200 3,631 Sales, general, and administrative expenses 2,779 2,901 2,868 2,849 2,94

  43. Slide 43: Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 17/8 18/8 19/8 20/8 21/8 20/8 21/8 Profitability ROE (%) 10.3 9.8 8.8 8.7 8.9 - - ROA (%) 13.4 12.8 11.5 11.3 11.6 - - Return on sales Net income (%) 21.6 21.4 20.5 20.4 20.8 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -

  44. Slide 44: Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 17/8 18/8 19/8 20/8 21/8 20/8 21/8 Profitability ROE (%) 11.0 10.5 9.5 9.2 9.4 - - ROA (%) 14.2 13.6 12.4 12.0 12.3 - - Return on sales Net income (%) 21.2 21.1 20.5 20.0 20.4 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.4 0.4 0.4 0

  45. Slide 45: Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,066 100.0 17,56

  46. Slide 46: Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,061 100.0

  47. Slide 47: Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 20/8 20/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,936 80.0 37,322

  48. Slide 48: Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 20/8 21/8 Change(the previous year) First-half 20/8 First-half 21/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 32,741 79.0 33,9

  49. Slide 49: The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 18/8 19/8 20/8 21/8 22/8 Full Year 17,500 17,600 17,400 17,300 17,700 First-half 7,350 7,463 7,482 7,655 7,719 Second-half 10,150 10,137 9,918 9,645 9,980 15,000 25 [Result] (¥ million) Full Year

  50. Slide 50: 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

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