WDB Holdings Co., Ltd. · TSE:2475
WDB — Investor Presentation (June 2024)
34 slides from WDB's investor presentation, June 2024
Slide 1: FY2023 Business presentation
http://www.wdbhd.co.jp WDB Holdings Co., Ltd. FY2023 Business presentation To be a staffing company with the highest wages and the ability to fulfill customer orders 1
Slide 2: Company Overview (June 2024)
Company Overview （June.2024） Company Name WDB Holdings Co., Ltd. Incorporation July 6,1985 Capital ¥1 billion Stock Listing Prime Market of Tokyo Stock Exchange (Code 2475) President and CEO Toshimitsu Nakano Head Office 79 Toyozawa-cho,Himeji-shi,Hyogo Number of Employees 987 (temporary staff and o
Slide 3: Group Companies (June 2024)
Group Companies（June. 2024) © WDB Holdings Co., Ltd. 3
Slide 4: Sales and profit composition
Sales and profit composition Sales composition Profit composition (FY2023） (FY2023) CRO 14.6% CRO 25.3% Human Human resources resources 85.4% 74.7% © WDB Holdings Co., Ltd. 4
Slide 5: History and Business Expansion
History and Business Expansion Entered CRO market Platform Expanded into R&D and manufacturing CRO (※Withdrew in FY2021) （World） Corporate Value CRO HR and CRO （Japan） Started science and services through research area staffing R&D and platforms Manufacture Technical Embarked on global training CRO
Slide 6: Human Resource (Staffing) Business
http://www.wdbhd.co.jp Human Resource (Staffing) Business 6
Slide 7: Sales Breakdown of Staffing Business (FY2023)
Sales Breakdown of Staffing Business（FY2023） Our staffing business is mainly focusing on the science and research field. Our company WDBG accounts for approx. 30% 1/3 of the science-related Others temporary staffing 70% market (100 billion yen) . ※market size by our estimate © WDB Holdings Co., Ltd.
Slide 8: Science and Research Field Staffing
Science and Research Field Staffing We dispatch scientific researchers, research assistants, and technicians in the science and research related fields. Staff and talent ・ Knowledge/skills in genetics ・ Knowledge/skills in animal anatomy ・ PCR testing capabilities ・ Experience in chemical analysis,
Slide 9: Images of operations
Images of operations Observation with a microscope Reagent injection by pipette Reagent concentration Component analysis by HPLC by evaporator © WDB Holdings Co., Ltd. 9
Slide 10: CRO Business
http://www.wdbhd.co.jp CRO Business 10
Slide 11: What is CRO
What is CRO CRO (Contract Research Organization) is a company that supports the drug development of pharmaceutical manufacturers. It takes 10 to 20 years and 50 billion yen for a pharmaceutical manufacturer to develop a new drug. For this reason, pharmaceutical manufacturers place orders for various
Slide 12: Flow of new drug development
Flow of new drug development basic research Investigate substances that can be used as medicines 2～3 years and research how to make them. Non-clinical To examine efficacy and safety (toxicity). Conduct studies experiments on cells and animals. 3～5 years Test on humans. Collect target patients, expla
Slide 13: History of WDBG CRO business
History of WDBG CRO business Expanded into the US and Established WDB Medical Europe through acquisitions platform (currently WDB Coco) and entered the CRO business Listed as CRO Dispatched to the clinical trial department Overseas Develop a platform and of a pharmaceutical expansion digitize CRO se
Slide 14: Regions and contents of business development
Regions and contents of business development Japan Europe WDB COCO MEDFILES ・Pharmacovigilance ・Laboratory service ・document support ・Pharmacovigilance ・data management ・clinical trial ・Statistical analysis ・data management ・Clinical research support ・Statistical analysis COBRIDGE ・Pharmaceutical af
Slide 15: FY2023 Result
http://www.wdbhd.co.jp FY2023 Result 15
Slide 16: Financial Results & Forecast (FY2023)
Financial Results & Forecast (FY2023) Sales and profits are steadily growing for the past 10 years. In addition, while operating income have not increased since the FY 2022, but this is due to the efforts to improve dispatched staff compensation in order to ensure continued growth in the future. © W
Slide 17: Comparison of operating profit margin (temporary staffing services)
Comparison of operating profit margin (temporary staffing services) Our operating profit margin is at a high level compared to major companies. © WDB Holdings Co., Ltd. 17
Slide 18: The reason for the high profit margin (Human Resources)
The reason for the high profit margin（Human Resources） １. We can set high temporary staffing wage rates because we have personnel that only we can provide. ・As a science temporary staffing agency, we have high recognition, making it easier to attract job seekers. ・We are able to dispatch job seekers
Slide 19: Comparison of profit structures with other companies (Human Resources)
Comparison of profit structures with other companies（Human Resources） We are able to achieve higher operating profit margins because we maintain higher gross margins and lower SG&A ratios than our competitors. profit structure WDBG Competitors Sales Cost 100% temporary temporary ・temporary staff sta
Slide 20: Comparison of operating profit margin (CRO in Japan)
Comparison of operating profit margin (CRO in Japan) Our operating profit margin is at a top-class level compared to major companies. © WDB Holdings Co., Ltd. 20
Slide 21: The reason for the high profit margin (CRO)
The reason for the high profit margin（CRO） 1. We keep average labor costs low by utilizing inexperienced staff. ・We assign experienced workers to high-difficulty tasks and inexperienced workers to low-difficulty tasks. 2. We have high operational efficiency and process contracted tasks with the mini
Slide 22: Comparison of profit structures with other companies (CRO)
Comparison of profit structures with other companies（CRO) Also in the CRO, we are also able to achieve higher operating profit margins because it maintains higher gross margins and lower SG&A ratios compared to our competitors. WDBG Competitors Cost Cost ・Salary of ・Salary of business business proce
Slide 23: About New Medium-to-Long Term Management Plan and Platform
http://www.wdbhd.co.jp About New Medium-to-Long Term Management Plan and Platform 23
Slide 24: The reason for reviewing the medium-to-long term management plan
The reason for reviewing the medium-to-long term management plan In May 2022, we disclosed our medium-to-long term management plan covering the five-year period from FY2022 to FY2026. Two years have passed since then. Compared to the time of disclosure, there have been many changes in the world situ
Slide 25: Basic strategies for medium-to-long term management plan (Human Resources)
Basic strategies for medium-to-long term management plan（Human Resources） By securing top talent in the staffing industry, we aim to become “a staffing company most responsive to our clients‘ requests” and significantly grow our business. To achieve this, we will offer a wide range of job opportunit
Slide 26: Increase in temporary staff wages
Basic strategies for medium-to-long term management plan（Human Resources） Increase in temporary staff Cost wages Cost SG(&)A SG(&)A Operating Operating Income Income © WDB Holdings Co., Ltd. 26
Slide 27: Basic strategies for medium-to-long term management plan (Human Resources)
Basic strategies for medium-to-long term management plan（Human Resources） By adding "the highest wages in the industry" to the advantages we have previously received from staff, such as a wide range of job opportunities, comprehensive technical training, thorough support during employment, and a con
Slide 28: Why other companies cannot follow this strategy
Basic strategies for medium-to-long term management plan（Human Resources） We explain why other companies cannot follow this strategy. If we increase the wages of staff, our profit margin will decrease. Therefore, other companies would also have to lower their profit margins to increase wages. Howeve
Slide 29: What is Platform
What is “Platform” We call the mechanism which enhances the convenience and visualization of services that used to be done manually as a "platform“. The basic development concept is that “the platform will streamline, automate,and visualize operations, and customers will be able to receive our servi
Slide 30: Basic strategies for medium-to-long term management plan (CRO/Others)
Basic strategies for medium-to-long term management plan（CRO/Others） In the CRO, we digitalize and implement digital transformation (DX) in our services to reduce costs. This enables us to offer high-quality services at lower prices, thereby taking market share from our competitors. Furthermore, we
Slide 31: Plan through FY2028
Plan through FY2028 © WDB Holdings Co., Ltd. 31
Slide 32: Plan through FY2028
Plan through FY2028 Human Resources CRO © WDB Holdings Co., Ltd. 32
Slide 33: Revision of Dividend Policy
Revision of Dividend Policy Since our listing in 2006, we have aimed for a dividend payout ratio of 30% and have continued to increase dividends. In FY2023, we set the dividend payout ratio target at 40% and continued to increase dividends. In FY2024, on the other hand, due to the significant increa
Slide 34: Conclusion
Conclusion During our efforts to work on the medium-to-long term management plan for the two years since May 2022, it has become clearer what we aim at. We will provide our dispatched staff with good services and the highest salaries, and gain overwhelming support from dispatched staff. As a result,