Medius Holdings Co., Ltd. · TSE:3154

Medius — 1H FY2025 Earnings Presentation

46 slides from Medius's earnings presentation, Feb 12, 2025

Slide 1: Earnings Presentation Materials 1H FYE June 2025
1H FYE June 2025 Earnings Presentation Materials February 12, 2025 Medius Holdings Co., Ltd. Securities Code: 3154
Slide 2: Today's Key Points
Today’s Key Points  In the environment surrounding the MEDIUS Group, the medical fee revision came into effect in June 2024 and costs have continued to rise due to high energy prices and the effects of exchange rate fluctuations. Consequently, the outlook remains uncertain.  During the first half
Slide 3: First Half of FY Ending June 30, 2025 Financial Results
First Half of the Fiscal Year Ending June 30, 2025 Financial Results (Millions of yen, %) 1H FYE June 2024 1H FYE June 2025 YoY (Results) (Results) Increase/ Amount Amount % of net sales Percentage decrease Net sales 126,713 142,704 100.0 15,991 112.6 Medical Device Sales Business 123,824 139,709 97
Slide 6: Medical Device Sales Customer Segments
Medical Device Sales Customer Segments Prefectural and municipal medical 17.9% institutions Japanese Red Cross hospitals 6.6% National Hospital Organization 3.5% Federations of Agricultural Others Prefectural and Cooperatives for Health and Welfare 2.9% municipal medical (Kouseiren) Clinics institut
Slide 7: Operating Environment: Net sales growing steadily
Operating Environment Up to 2019 COVID-19 pandemic 2023 onward (Millions of yen) 350,000 Net sales growing steadily (%) 30 322,000 300,918 25 300,000 42000 278,299 246,787 259,574 20 250,000 17.6% 17.3% 280,000 15 210,388 259,789 197,691 239,054 200,000 10 168,135 8.1％ 150,000 7.2% 7.0％ 6.4% 5 5.2%
Slide 8: Market Conditions for Medical Devices
Market Conditions for Medical Devices （％） (Billions of yen) 60,000 6.0 55,223 Market size Growth rate 49,578 50,000 Projected market size 5.0 44,510 39,961 40,000 36,270 37,240 37,940 4.0 34,570 35,240 32,830 33,550 30,000 3.0 2.2 3.6 2.0 3.0 20,000 2.9 2.0 2.7 2.2 1.9 5years 5years 5years 10,000 1.
Slide 9: Medium-Term Business Plan
Medium-Term Business Plan Reinforce existing Ordinary profit Up 10% annually businesses + Promote M&A As we have achieved a certain amount of growth in net sales and market share, we will now make ordinary profit our metric and work on improvements to increase profitability. We are targeting further
Slide 10: Medium-Term Business Plan: Strategies to Enhance Corporate Value
Medium-Term Business Plan: Strategies to Enhance Corporate Value Contributing to Regional Medical Care Restructuring of Existing Businesses Policies & Measures Selective, Focused Business Investment Improve operational Strengthen human capital Cultivate a solid Improve capital efficiency Returns to
Slide 11: M&A & Alliance Strategy: Background
M&A & Alliance Strategy: Background ▼ Japan’s medical device market  The market is projected to continue growing until 2060 as Japan’s society ages. There is plenty of scope for growing the top line.  However, growth in Japan’s medical device market has slowed compared with previous years in an en
Slide 12: M&A & Alliance Strategy: Background - What manufacturers want
M&A & Alliance Strategy: Background ▼What manufacturers want  Manufacturers are focused on reducing costs (operating costs and logistics costs); they therefore want sales agents to undertake that role.  They also want widespread operations, regional market shares, financial stability, capacity to
Slide 13: M&A Strategy: Medius Holdings M&A in Recent Years
M&A Strategy: Medius Holdings M&A in Recent Years (Subject to Consolidation) Year Month Target company Status at time of M&A Current status Became part of current ALVAUS, Inc. following restructuring 2020 Mar. Active Medical Co., Ltd. Consolidated subsidiary within the Group. Operations in the Hokka
Slide 14: Total Solutions Strategy
Total Solutions Strategy Medical institutions Medical institutions are facing increasingly serious business challenges, including the need to reform doctors’ work practices, lower revenues due to a government policy of limiting healthcare expenditure, and rising costs for medical supplies. Increased
Slide 15: Total Solutions Strategy: Solutions Lineup
Total Solutions Strategy: Solutions Lineup Medical institutions SPD SPD stands for Supply, Processing, and Distribution. It is a strategy originating in the US Increased for streamlining the management of distribution within hospitals. Total solutions + Manufa cturers efficiency MEDIUS Group Our sol
Slide 16: Streamlining of Operations: For Manufacturers
Streamlining of Operations: For Manufacturers Medical institutions Manufacturers and medical device trading companies need to take action to address higher logistics Increased costs and reduced working hours. efficiency The MEDIUS Group alleviates the associated burdens on manufacturers by picking u
Slide 17: Streamlining of Operations: Within the MEDIUS Group
Streamlining of Operations: Within the MEDIUS Group Medical institutions Consolidate Increased specialist efficiency domains Manufa MEDIUS cturers Group Reorganize within the Targets for Establish Group Optimize streamlining shared procurement corporate & logistics operations Streamline the whole Gr
Slide 18: Topics
Topics Continuing to support healthcare in Tohoku for the next 10 and Strengthening our foundation in Yamanashi Prefecture 20 years 60th anniversary of Completion of business succession through an Akita Medical Instruments Co., Ltd. absorption-type company split, transferring New construction and re
Slide 19: Topics: Revamped sustainability page
Topics To enhance information disclosure, we have revamped the sustainability page on our website. In October 2024, we renewed our sustainability page. The updated page provides disclosures on the Group's sustainability promotion framework, the material issues identified in July last year, our initi
Slide 20: Structure for Promoting Sustainability
Structure for Promoting Sustainability Board of Directors Reports & Supervises & Committee chair: recommends approves President and Representative Director Established July 2024 Sustainability Committee Executive committee chair: Director responsible for Liaises Sustainability sustainability Special
Slide 21: Sustainability: Identification of Material Issues
Sustainability: Identification of Material Issues June 2023: Sustainability Committee inaugurated • Set metrics & targets • Determine overall • Manage progress • Identify material issues • Integrate into business • Consider ESG issues • Spread Groupwide • Prioritize material issues policies awarenes
Slide 22: Sustainability: Environmental Conservation
Sustainability: Environmental Conservation To assess and manage the impacts of climate-related issues on our business operations, the MEDIUS Group calculated our greenhouse gas emissions (Scopes 1 to 3) during the fiscal year ended June 30, 2023 (FYE2022) according to the GHG Protocol standards. As
Slide 23: Sustainability: Active Participation of All Human Resources
Sustainability: Promoting the Active Participation of All Human Resources (%) Results for FYE June 30, 2023 Results for FYE June 30, 2024 Medius Kuribara Medical Medius Kuribara Medical Kuribara Medical Kuribara Medical Holdings co., Corporation Holdings co., Instruments Co., Ltd. Instruments Co., L
Slide 24: Sustainability: Social Contribution Activities
Sustainability: Social Contribution Activities Donation to the UN World Food Programme Donation gift-matching for Médecins Sans (WFP) Red Cup Campaign Frontières (Doctors without Borders) The Red Cup Campaign subsidizes provision of school We conducted a donation gift-matching campaign, inviting mea
Slide 25: Sustainability: Social Contribution Activities
Sustainability: Social Contribution Activities Contributing to society alongside local Contributing to local social welfare initiatives communities through sport Projects in collaboration with local communities S-Pulse Social Welfare Fund ▶ Paper Cup Recycling MEDIUS Group X Shimizu S-Pulse Kuribara
Slide 26: Sustainability: Social Contribution Activities
Sustainability: Social Contribution Activities Boosting medicine’s potential through the potential of the young Expressing thanks to those who work on the medical frontline Hands-on medical experience event, Thank You for All That You Do! MEDI-Message —The smiling face trucks Kuribara Medical Corpor
Slide 27: Results for 1H FYE June 2025
Overview of the First Half of the Fiscal Year Ending June 30, 2025 Results for 1H FYE June 2025 Net sales increased compared to the first half of the previous fiscal year due to the increase in consolidated operating companies and the expansion of sales of surgical operations-related products. Altho
Slide 28: Selling, general and administrative expenses
Overview of the First Half of the Fiscal Year Ending June 30, 2025 Selling, general and administrative expenses Selling, general and administrative expenses 16,127 million yen (Year-on-year Up 11.5%) (Of which) Personnel expenses 10,182 million yen (Year-on-year Up 11.1%) (Millions of yen) SGA expen
Slide 29: Analysis of Factors Contributing to Operating Profit
Analysis of Factors Contributing to Operating Profit Effect of higher sales （百万円） (Millions of yen) +1,740 Personnel Capital investment investment Outsourcing Outsourcing – 1,021 expenses expenses – 35 ––77 77 Othrts – 536 1H FYE June 2024 1H FYE June 2025 ＋553 million yen 680 million yen 751 millio
Slide 30: Net Sales (Medical Equipment and Others)
Net Sales (Medical Equipment and Others) (Millions of yen) 164,205 18,030 90.0% 145,338 11.0% 140,000 135,336 18,182 127,914 12.5% 16,395 70.0% 117,778 15,383 12.1% 12.0% 14,429 12.3% 100,000 50.0% 146,175 89.0% 127,156 30.0% 118,941 87.5% 112,531 103,349 87.9% 88.0% 60,000 87.7%, 10.0% 20,000 -10.0
Slide 31: Replacement Supplies 1H FYE June 2025 Net Sales by Category
Replacement Supplies 1H FYE June 2025 Net Sales by Category (Millions of yen) Catheterization/treatment Catheterization/treatment Orthopedic implants 24,068 Others Endoscope-related 53,181 Surgical instruments Cardiac surgery Orthopedic implants Personal Protective Equipment (PPE) 19,256 Ophthalmolo
Slide 32: Replacement Supplies Net Sales in Main Product Categories
Replacement Supplies Net Sales in Main Product Categories (1H FYE June 2021–1H FYE June 2025) (Millions of yen) 30,000 1H FYE June 2021 1H FYE June 2022 1H FYE June 2023 1H FYE June 2024 1H FYE June 2025 25,000 20,000 15,000 10,000 5,000 0 Catheterization/treatment Orthopedic implants Endoscope-rela
Slide 33: Medical Equipment 1H FYE June 2025 Net Sales by Category
Medical Equipment 1H FYE June 2025 Net Sales by Category Endoscopic examination & surgery (Millions of yen) Radiological equipment Blood purifiers Ultrasound equipment 111 Therapeutic electrosurgical Others Sample testing instruments 3,275 Endoscopic examination & 164 surgery Monitors 2,138 Surgical
Slide 34: Medical Equipment Net Sales in Main Product Categories
Medical Equipment Net Sales in Main Product Categories (1H FYE June 2021–1H FYE June 2025) (Millions of yen) 4,000 1H FYE June 2021 1H FYE June 2022 1H FYE June 2023 1H FYE June 2024 1H FYE June 2025 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Radiological Endoscopic Ultrasound Sample testing Monitors
Slide 35: FYE June 2025 Financial Results Outlook
Fiscal Year Ended June 30, 2025 Full-Year Financial Results Outlook FYE June 2025 Financial Results Outlook (Millions of yen) FYE June 2024 FYE June 2025 Full-year Full-year YoY (Plan) Net sales 259,789 280,000 107.8% Operating profit 1,327 1,400 105.5% Ordinary profit 1,750 2,000 114.3% Profit attr
Slide 36: FYE June 2025 Full-Year Financial Results Outlook: Further Information
Fiscal Year Ended June 30, 2025 Full-Year Financial Results Outlook: Further Information FYE June 2025 Financial Results Outlook  Net sales & gross profit  Throughout the year, we expect to record results from further expansion of our market area in western Japan and the addition of a new operatin
Slide 37: Dividend Payout Ratio and Policy
Dividend Payout Ratio and Policy Dividend payout ratio The Company’s basic policy is to distribute the results commensurate with its growth while securing the internal reserves necessary to maintain stable growth over the medium to long term. To this end, the Company pays dividends with a target con
Slide 38: Management Conscious of Cost of Capital and Stock Price: Current Situation
Management Conscious of Cost of Capital and Stock Price: Analysis of Current Situation  The Company’s shareholders’ equity cost is estimated at 5% on a capital asset pricing model (CAPM) basis.  ROE is now on a downward trajectory, having peaked during the fiscal year ended June 30, 2021, but it s
Slide 39: Management Conscious of Cost of Capital and Stock Price: Measures
Management Conscious of Cost of Capital and Stock Price: Analysis of Current Situation  Enhance business profitability Grow gross profit  Expand sales of private brand Improve profitability products  Expand business into new domains  Restructure and strengthen Curb SGA expenses  Enhance product
Slide 40: Management Philosophy
Management Philosophy Our philosophy remains unchanged since the Company’s founding Contributing to Community Hearthcare Copyright©2025 Medius Holdings Co., Ltd. All Rights Reserved 40
Slide 41: Medius Holdings Co., Ltd. Company Profile
Medius Holdings Co., Ltd. Securities Code: 3154 Our Business: Medical device sales and maintenance business Nursing care and welfare product sales and rental business Established July 2009 Capital 1.38 billion yen (Changed to present company name (As of December 31, 2024) in 2010) No. of employees 2
Slide 42: The MEDIUS Group's Businesses
The MEDIUS Group’s Businesses Medical Device Sales Business Welfare Device Business The MEDIUS Group sells medical devices purchased from medical device manufacturers and others in Japan to medical institutions and The MEDIUS Group sells and rents nursing care and undertakes repair and maintenance o
Slide 43: The Accounting Standard for Revenue Recognition
The Accounting Standard for Revenue Recognition The Company applied the Accounting Standard for Revenue Recognition in the fiscal year ended June 30, 2022.  Impacts of applying standard  For transactions in which the MEDIUS Group acts as an agent, net sales are reduced because revenue is recognize
Slide 44: Major Suppliers
Major Suppliers (in Japanese alphabetical order) Asahi Kasei Medical Co., Ltd. Tokyo Saraya Co., Ltd. Nihon Kohden Corporation Atom Medical Corporation Santen Pharmaceutical Co., Ltd. Stryker Japan K.K. Abbott Medical Japan LLC GE Healthcare Japan Corporation MC Medical, Inc. ALCARE Co., Ltd. Siemen
Slide 45: MEDIUS Group Earnings Structure Seasonal
MEDIUS Group Earnings Structure Seasonal Quarterly operating profit Seasonal factors 2,000 3Q: January to March • This is the end of the fiscal year for medical 1,200 institutions, so purchasing of medical equipment is concentrated at this time, driving up net sales. 4Q: April to June 400 ・ Net sale
Slide 46: Disclaimer Regarding Use of This Document
Disclaimer Regarding Use of This Document This document was prepared to facilitate understanding of Medius Holdings Co., Ltd. (the Company) and the MEDIUS Group. It is not intended to solicit investment in the Company. Care was taken to ensure accuracy when preparing this document, but the Company d

Medius Holdings — 1H FY2025 Earnings Presentation on 6ix

Medius — 1H FY2025 Earnings Presentation

Slide 1: Earnings Presentation Materials 1H FYE June 2025

Slide 2: Today's Key Points

Slide 3: First Half of FY Ending June 30, 2025 Financial Results

Slide 4: Group Companies

Slide 5: Sales locations

Slide 6: Medical Device Sales Customer Segments

Slide 7: Operating Environment: Net sales growing steadily

Slide 8: Market Conditions for Medical Devices

Slide 9: Medium-Term Business Plan

Slide 10: Medium-Term Business Plan: Strategies to Enhance Corporate Value

Slide 11: M&A & Alliance Strategy: Background

Slide 12: M&A & Alliance Strategy: Background - What manufacturers want

Slide 13: M&A Strategy: Medius Holdings M&A in Recent Years

Slide 14: Total Solutions Strategy

Slide 15: Total Solutions Strategy: Solutions Lineup

Slide 16: Streamlining of Operations: For Manufacturers

Slide 17: Streamlining of Operations: Within the MEDIUS Group

Slide 18: Topics

Slide 19: Topics: Revamped sustainability page

Slide 20: Structure for Promoting Sustainability

Slide 21: Sustainability: Identification of Material Issues

Slide 22: Sustainability: Environmental Conservation

Slide 23: Sustainability: Active Participation of All Human Resources

Slide 24: Sustainability: Social Contribution Activities

Slide 25: Sustainability: Social Contribution Activities

Slide 26: Sustainability: Social Contribution Activities

Slide 27: Results for 1H FYE June 2025

Slide 28: Selling, general and administrative expenses

Slide 29: Analysis of Factors Contributing to Operating Profit

Slide 30: Net Sales (Medical Equipment and Others)

Slide 31: Replacement Supplies 1H FYE June 2025 Net Sales by Category

Slide 32: Replacement Supplies Net Sales in Main Product Categories

Slide 33: Medical Equipment 1H FYE June 2025 Net Sales by Category

Slide 34: Medical Equipment Net Sales in Main Product Categories

Slide 35: FYE June 2025 Financial Results Outlook

Slide 36: FYE June 2025 Full-Year Financial Results Outlook: Further Information

Slide 37: Dividend Payout Ratio and Policy

Slide 38: Management Conscious of Cost of Capital and Stock Price: Current Situation

Slide 39: Management Conscious of Cost of Capital and Stock Price: Measures

Slide 40: Management Philosophy

Slide 41: Medius Holdings Co., Ltd. Company Profile

Slide 42: The MEDIUS Group's Businesses

Slide 43: The Accounting Standard for Revenue Recognition

Slide 44: Major Suppliers

Slide 45: MEDIUS Group Earnings Structure Seasonal

Slide 46: Disclaimer Regarding Use of This Document