Slide 1: Analyst Guide October 2022
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 Prime Market Segment of the Tokyo Stock Exchange; Code 7447) ANALYST GUIDE October 2022 <Contact for informa
Slide 2: Summary: Results of FY2022
Summary Results of FY2022 Sales progressed as planned. Sales reached a record high. Operating income also progressed as planned. Net income also reached a record high due to the sale of cross-shareholdings as extraordinary profit. Net Sales: ¥17,745 m Operating income : ¥5,031 m Urgent Need To Respo
Slide 3: Agenda Index
Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3 p Ⅱ Business Environment ・・ ・・・ 9 p and Strategy Ⅲ Financial Review of FY2022 ・・16 p and Forecast for FY2023 Ⅳ Overview and Measures ・ ・・・24 p Ⅴ Management Goals ・・・・・・ 29 p VI Rewarding Shareholder- ・・・ 33 p Focused Policies 2 © Nagaileben Co.,Ltd.
Slide 4: I About Nagaileben
Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.
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
Slide 6: Outline: High Profitability, Strong Balance Sheet, Shareholder Policies
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 44.4% (2022) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 44.4% 40 28.6% (1990) 45.3% (2010) -Capital-to-asset ratio 89.2% 35 (1980) 39.7% -
Slide 7: Solving Social Issues Through Our Business
SDGs Solving Social Issues Through Our Business 2050 Low-Carbon Social Responsibility Environmental -Assist hospitals to reduce Efforts waste and be more economical. -Regional contribution -Consideration to environmental Regional through production base load of business. -Support hospital facilities
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 Disaster Support Nurses Online Beauty Lecture for Nurse We provided the Japanese Nursing Associatio Online Beauty Lecture n with the uniforms worn by nurses dispatche Beauty Advice Movie d from all over the country to the disaster site
Slide 9: CSR Our Efforts Based on Social Responsibility
CSR Our Efforts Based on Social Responsibility Environmental Efforts Social Responsibility Reduction of Environmental Load Through -Donation Infection Prevention Products to Medical Institutions. Business Many of our products use materials derived from exhaustible -Cheering message to medical worker
Slide 10: II Market Environment
II Market Environment 9 © Nagaileben Co.,Ltd.
Slide 11: Topics: Market Environment and Production Risk
Topics Market Environment Shifted From Confusion to Stability - Reconstruction of the medical care delivery system during the COVID-19 crisis - Medical treatment fees will be revised (effective April 2022). Total -0.94% Service +0.43% Drug price -1.37% - Improving the treatment of nursing staff and
Slide 12: 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 +1.6 +0.7 +1.5 +1.4 +1.2 +0.6 +0.6 1 +0.7 +0.5 +0.4 +0.6+0.5 +0.4 +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 ▲
Slide 13: 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 202 200 150 245 100 168 188 186 50 0 2019 2025 2020 2025 Source: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care S
Slide 14: Business Plan: 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 market by expanding our business model in Japan Core Market Peripheral Market Overseas Ma
Slide 15: Business Plan: Management Tasks and Status
Business Plan Management Tasks and Status Strengthen domestic production -Strengthen ability to respond quick response and small-rot multi-production Production Strategy to -Rising manufacturing cost due to increase in labor cost Ensure a Steady Supply Shift to overseas production from domestic. Uti
Slide 16: Urgent Issue: Respond to Sudden Changes in External Environment
Respond to Sudden Changes in the External Urgent Issue Environment • Sharp rise in material prices due to soaring crude oil prices • Rising logistics and labor costs • Rapid depreciation of JPY in the exchange market We will plan to improve profitability, such as price revisions and efficiency impro
Slide 17: II Financial Review of FY2022 and Forecast for FY2023
II Financial Review of FY2022 and Forecast for FY2023 16 © Nagaileben Co.,Ltd.
Slide 18: Topics: Background of Sales in FY2022
Topics Background of Sales in FY2022 FY2020 FY2021 FY2022 Net sales ¥17,563 m ¥17,745 m ¥17,066 m (Year-on-year change) (+2.9%) (+1.0%) factor 1 ¥945 m ¥315 m ー Supply infection prevention products to MHLW factor 2 ー ー -¥10 m The accounting standard for revenue recognition Excluding above factors ¥1
Slide 19: Financial Review of FY2022 and Forecast for FY2023
Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2022 FY2023 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,745 +0.3 +1.0 18,200 +2.6 Gross profit 7,881 -0.2 -2.2 7,618 -3.3 Sales, general, and administrative expenses 2,850 -1.1 +0.1 3,
Slide 20: Financial Review: Gross Profit Factors
Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2022 FY2023 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,745 +0.3 +1.0 18,200 +2.6 Gross profit 7,881 -0.2 -2.2 7,618 -3.3 Sales, general, and administrative expenses 2,850 -1.1 +0.1 3,
Slide 21: Special Factors for FY2023
Consolidated Results Special Factors for FY2023 FY2023E (millions of yen,%) (Full) First half composition ratio Second half composition ratio Net sales 18,200 8,022 ー 10,178 ー Gross profit 7,618 3,329 41.5 4,289 42.1 FY2022 (millions of yen,%) (Full) First half composition ratio Second half composit
Slide 22: Sales and Gross Profit Margin Forecast
Consolidated Results Sales and Gross Profit Margin Forecast (¥ million) （％） 20,000 Net sales (left) 50 Gross profit to sales (right) 19,000 45 18,000 40 17,000 35 16,000 30 15,000 25 （年度） 21 22 23E 24E 25E The exchange rate for FY2024/FY2025 is assumed to be 125 yen/dollar. 21 © Nagaileben Co.,Ltd.
Slide 23: Financial Review: SG&A, Net Income, Capex
Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2022 FY2023 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,745 +0.3 +1.0 18,200 +2.6 Gross profit 7,881 -0.2 -2.2 7,618 -3.3 Sales, general, and administrative expenses 2,850 -1.1 +0.1 3,
Slide 24: Financial Review of FY2022 (Balance Sheet)
Consolidated Results Financial Review of FY2022 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 28,560 +681 +2.4 Notes and accounts receivable (including electronically recorded claims) 5,239 +464 +9.7
Slide 25: IV Overview and Measures
IV Overview and Measures 24 © Nagaileben Co.,Ltd.
Slide 26: Market Classification
Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Infection prevention Patient wear Doctors' wear Utility wear Surgery wear 25 © Nagaileben Co.,Ltd.
Slide 27: Overview and Measures: Market
Overview and Measures Market Composition y/y change FY2022 FY2023E (FY2022) (%) First-half Full Fulll(E) Total sales -3.1 +1.0 +2.6 Doctors' 15.0% Utility/Others 3.7% Core Market -6.8 -1.4 +1.4 Healthcare wear -0.4 +1.4 +1.6 Patient Doctors' wear +0.5 +2.1 +1.7 16.2% Utility / Others -12.1 -3.3 -6.4
Slide 28: Overview and Measures: Product
Overview and Measures Product y/y change FY2022 FY2023E (%) Sales by Product Total sales +1.0 +2.6 High-End (¥ million) products +4.2 +2.4 18,000 High Value-Added 16,000 MHLW products +10.4 +4.2 14,000 Value-Added 12,000 High-End products -8.6 +0.9 10,000 High Value- Mass products -1.5 -7.0 Added 8,
Slide 29: Overview and Measures: Production
Overview and Measures Production Composition Changes in Production Status (%) FY2022 FY2023E (Non-Consolidated) Domestic (¥ million) (%) production 47.3 46.3 12,500 60 Overseas Purchased production 51.9 53.0 10,000 55 products Purchased Overseas products 0.8 0.7 7,500 50 production Domestic 5,000 45
Slide 30: V Management Goals
V Management Goals 29 © Nagaileben Co.,Ltd.
Slide 31: Strategy: Business Direction
Strategy Business Direction Market -Capture Needs in Core Market -Increase Share of Peripheral Market -Cultivate Overseas Market 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 Mu
Slide 32: Strategy: Business Direction FY2025E Targets
Strategy Business Direction FY2019 FY2022 FY2025E (3 terms ago) (Previous term) (3 terms later) Net sales ¥16.7 billion ¥17.7 billion ¥19.3billion Core 73% 70% 78% Market Peripheral 21% 25% 28% Overseas 1% 2% 1% 60% High Value-Added 58% 51% Product Value-Added 36% 31% 28% Mass 5% High-End 7% 4% 9% 3
Slide 33: Trend of Business Records
Strategy Trend of Business Records (¥ million) （％） 22,500 70 20,000 Net sales (left) 65 17,500 Gross profit to sales (right) 60 15,000 55 12,500 50 10,000 45 7,500 40 5,000 35 2,500 30 0 25 80 86 92 98 04 10 16 22 23 24 25 E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preced
Slide 34: VI Rewarding Shareholder-Focused Policies
VI Rewarding Shareholder -Focused Policies 33 © Nagaileben Co.,Ltd.
Slide 35: Reward Reimbursement Policy
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
Slide 36: 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
Slide 37: 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 1
Slide 38: 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 39: 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
Slide 40: Data File FY2022
Data File FY2022 (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200)>
Slide 41: Index
Index 1 … Sales by Market 2 … Sales by Item 3 … Sales by Product 4 … Production Strategy (Non-Consolidated) 5 … Statements of Income (Consolidated) 6 … Statements of Income (Non-Consolidated) 7 … Indices (Consolidated) 8 … Indices (Non-Consolidated) 9・10 … Statements of Income (Consolidated・Non-Cons
Slide 42: 1. Sales by Market
1. Sales by Market (¥ million) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 21/8 22/8 18,000 Sales 16,785 17,066 17,563 17,745 18,200 8,069 7,817 Core Market 12,994 13,115 13,207 13,021 13,200 6,000 5,591 16,000 Peripheral Market 3,601 3,749 4,152 4,486 4,750 1,991 2,101 Overseas M
Slide 43: 2. Sales by Item
2. Sales by Item (¥ million) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 21/8 22/8 18,000 Sales 16,785 17,066 17,563 17,745 18,200 8,069 7,817 16,000 Healthcare wear 9,577 8,831 9,560 9,698 9,850 4,201 4,186 Doctors' wear 2,652 2,451 2,600 2,655 2,700 1,109 1,114 14,000 Utility/Ot
Slide 44: 3. Sales by Product
3. Sales by Product (¥ million) First-half First-half (¥ million) FY 19/8 20/8 21/8 22/8 23/8E 21/8 22/8 18,500 Sales 16,785 17,066 17,563 17,745 18,200 8,069 7,817 High-End products 1,274 1,072 1,218 1,269 1,300 513 543 16,500 High Value-Added products 8,969 8,692 9,302 10,269 10,700 4,097 4,528 14
Slide 45: 4. Production Strategy (Non-Consolidated)
4. Production Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 19/8 20/8 21/8 22/8 23/8E 12,500 60 21/8 22/8 Domestic production 4,584 4,743 4,581 4,974 5,034 2,376 2,555 Overseas production 4,566 4,775 4,824 5,456 5,766 2,362 2,566 10,000 55 Purchased products 130 128
Slide 46: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 21/8 22/8 Net Sales 16,785 17,066 17,563 17,745 18,200 8,069 7,817 Gross profit 7,840 7,810 8,058 7,881 7,618 3,718 3,491 Sales, general, and administrative expenses 2,922 2,872 2,846 2,850 3,044 1,
Slide 47: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 21/8 22/8 Net Sales 16,777 17,061 17,552 17,737 18,200 8,063 7,813 Gross profit 7,694 7,650 7,875 7,726 7,450 3,631 3,416 Sales, general, and administrative expenses 2,901 2,868 2,849 2,874 3,02
Slide 48: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 18/8 19/8 20/8 21/8 22/8 21/8 22/8 Profitability ROE (%) 9.8 8.8 8.7 8.9 9.0 - - ROA (%) 12.8 11.5 11.3 11.6 11.0 - - Return on sales Net income (%) 21.4 20.5 20.4 20.8 21.3 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 49: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 18/8 19/8 20/8 21/8 22/8 21/8 228 Profitability ROE (%) 10.5 9.5 9.2 9.4 9.5 - - ROA (%) 13.6 12.4 12.0 12.3 11.6 - - Return on sales Net income (%) 21.1 20.5 20.0 20.4 21.0 - - ROE resolution Total AssetsTurnover (Times) 0.4 0.4 0.4 0.4 0.4
Slide 50: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,563 100.0 17,74
Slide 51: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,552 100.0
Slide 52: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 37,322 80.4 38,902
Slide 53: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 21/8 First-half 22/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 33,994 79.3 35,6
Slide 54: 13. The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 19/8 20/8 21/8 22/8 23/8E Full Year 17,600 17,400 17,300 17,700 18,200 First-half 7,463 7,482 7,655 7,719 8,022 Second-half 10,137 9,918 9,645 9,980 10,178 15,000 25 [Result] (¥ million) Full Yea