Slide 1: Analyst Guide FY2018
ANALYST GUIDE FY2018 October 2018 (Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 2: Overview of FY2018
Overview of FY2018 1 Sales & Income Net Sales and Operating Income recorded highest. Net Sales: ¥17,144 m Operating Income: ¥5,264 m 2 The Change of Business Environment Market Condition Simultaneous revision of medical treatment fees and nursing care fees. Buying intention in 3Q decreased due to th
Slide 3: Agenda
Agenda I About “NAGAILEBEN” II Financial Review of FY2018 III Market Environment IV Forecast for FY2019 V Management Goals VI Rewarding shareholder-focused policies Copyrights Nagaileben Co.,Ltd. All rights reserved. 2
Slide 4: I About Nagaileben
I About “NAGAILEBEN” = @ NAGAILEBEN
Slide 5: Outline
Outline 100th year 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 extensive
Slide 6: Outline: Profitability and strong balance sheet
Outline Highly profitability 3 47.0% Change of Gross Profit to Sales (2018) 50 (%) Strong balance sheet 45 - Realization of high profitability 33.1% 40 (1990) 45.3% with radical pursuit of efficiency 28.6% (2010) -Gross profit to sales 47.0% (as of FY2018) 35 (1980) 39.7% 30 -Capital-to-asset ratio
Slide 7: CSR/ESG
CSR/ESG What’s NEW Respect for Customers Regional Contribution Beauty Lecture for Nurse Rental of Historic Nurse Wear Practical course in makeup and manner for nurses in Archiving historic nurse wear. medical fields. Collaboration with Shiseido. Free rental to medical institutions. Support for Women
Slide 8: II Financial Review of FY2018
II Financial Review of FY2018 7
Slide 9: Financial Highlights <Statements of Income>
Financial Highlights <Statements of Income> (millions of yen,%) FY2018 % Change Composition % Composition % Change Net sales 17,144 +0.7 100.0 － Gross profit 8,050 -0.4 47.0 -0.6 Sales, general, and administrative expenses 2,786 -2.0 16.3 -0.5 Operating income 5,264 +0.4 30.7 -0.1 Recurring income 5
Slide 10: Financial Highlights <Balance Sheet>
Financial Highlights <Balance Sheet> Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 23,930 +1,168 +5.1 Notes and accounts receivable Cash and cash equivalents up ¥ 1,168 million 4,815 -222 -4.4 (including electronical
Slide 11: Segments by Item
Segments by Item Healthcare wear Patient wear Shoes Doctors' wear Utility wear Surgery wear Copyrights Nagaileben Co.,Ltd. All rights reserved. 10
Slide 12: Sales by Item
Sales by Item Doctors' 15.6% Utility 2.9% Patient [Healthcare wear] 11.4% [Doctors' wear] [Surgery wear] - Sales in 3Q decreased due to postponed contracts and Surgery simultaneous revision of medical treatment fees and 9.6% nursing care fees. Sales in 4Q recovered. In total, sales Healthcare kept p
Slide 13: Sales by Region
Sales by Region Central Japan 10.5% [East Japan] West Japan - Though there were decline in 3Q, sales became highest ever, by promotion of High Value-Added 35.4% products and patient wear. [Central Japan] -Market size was not large and there was the influence by the size of contracts. In this term, s
Slide 14: III Market Environment
III Market Environment @ NAGAILEBEN 13
Slide 15: Market Environment Topics
Market Environment Topics Market condition is unstable -National Health Insurance Drug Price Standard will be revised down(Apr. or Oct. 2019). -Consumption tax will be increase(effective Oct. 2019). -The number of Nursing Staff and Care workers is increasing gently. Rising manufacturing cost -Distri
Slide 16: Changes and prospects for medical and care service systems
Changes and prospects for medical and care service systems Medical System Care Service System Medical Service Law, Health and Medical Medical treatment fees Care Service Law, Nursing Care Insurance, etc. Nursing care fees Service Law for the Aged, Medical Insurance, etc Medical program for very elde
Slide 17: Revisions to medical treatment and care service fees
Revisions to medical treatment and care Service fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 2 +1.9 +1.5 +1.6 +1.4 +1.2 +0.7 1 +0.4 +0.6 +0.5 +0.6+0.5 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.4 ▲ 1.3 ▲ 1.5 -2 ▲ 1.7 ▲ 1.8 ▲ 2.0 ▲1.9 ▲ 2.4 ▲2.3 ▲2.3 -3 ▲ 2.6
Slide 18: The number of Nursing Staff and Care workers
The number of Nursing Staff and Care workers (10,000 persons) 250 Nursing Staff Care Workers 200 150 183 100 183 166 171177 160 163 154 147 163 151 140 157 141 129 133 150 123 137 143 114 123 143 117 131 109 120 50 119 127 96 85 72 64 55 0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
Slide 19: Supply and Estimated Future Need
Supply and Estimated Future Need (10,000 persons) 300 Nursing Staff Care Workers 253 250 forecast(maximum) forecast(minimum) 206 200 Actual 150 253 100 196 166 171 50 0 2016 2025 2016 2025 Actual record: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care Servic
Slide 20: IV Forecast for FY2019
IV Forecast for FY2019 SSS = @ NAGAILEBEN 19
Slide 21: Management Tasks and Status
Management Tasks and Status • Capture clusters of needs Marketing strategy to in the healthcare wear market increase sales • Increase peripheral business in products for patients and surgery • Cultivate overseas markets • Scrap 2 old factories and build New Sewing Production strategy to Factory in J
Slide 22: Special Factors in FY2019
Special Factors in FY2019 Establishing New Sewing Factory 1 Impact on Gross Profit -Increase of depreciation(¥30m) -Occurrence of real estate acquisition tax(¥15m) *only once in this term Abolishing Directors' retirement allowances 2 Introducing Restricted Stock-based Payment After resolution of sto
Slide 23: Forecast Statements of Income
Forecast Statements of Income (millions of yen,%) FY2019E % Change (FY2018) Composition % Change Net sales 17,600 +2.7 － Gross profit 8,210 +2.0 -0.3 Sales, general, and administrative expenses 2,968 +6.5 +0.6 Operating income 5,242 -0.4 -0.9 Recurring income 5,304 -0.6 -1.0 Net income 3,650 -0.7 -0
Slide 24: Forecast of Sales by Item
Forecast of Sales by Item Sales by Item (¥ million) Year-on-year change FY2018 FY2019E 20,000 18,000 Sales +0.7% +2.7% Shoes/Others 16,000 Healthcare wear +0.3% +2.1% 14,000 Surgery wear Doctors' wear -0.4% +2.2% 12,000 Patient wear 10,000 Utility wear -10.5% -9.8% Utility wear 8,000 Patient wear +1
Slide 25: Forecast of Sales by Region
Forecast of Sales by Region Sales by Region (¥ million) Year-on-year change FY2018 FY2019E 20,000 18,000 Total sales +0.7% +2.7% 16,000 Overseas East Japan +0.6% +2.0% 14,000 12,000 West Japan Central Japan +2.2% +3.0% 10,000 West Japan +0.0% +3.3% 8,000 Central Japan 6,000 Overseas +16.4% +7.1% 4,0
Slide 26: Product Strategy
Product Strategy Sales by Product Year-on-year change FY2018 FY2019E (¥ million) 20,000 Total sales +0.7% +2.7% 18,000 High-End products +6.5% +6.3% 16,000 High-End High Value-Added 14,000 +1.7% +4.5% products 12,000 High Value- Added Value-Added 10,000 products ▲1.4% +0.1% 8,000 Value-Added 6,000 M
Slide 27: Production Strategy
Production Strategy Production(Non-Consolidated) (¥ million) (%) 10,000 50 Composition FY2018 FY2019E Purchased products Domestic production 49.6% 48.6% 7,500 45 Overseas production Overseas production 49.0% 50.0% Purchased products 1.4% 1.4% 5,000 40 Domestic production 2,500 35 Ratio of overseas p
Slide 28: V Management Goals
V Management Goals @ NAGAILEBEN 27
Slide 29: Business Direction
Business Direction Sales Strategy -Increase peripheral business in products for Patients and Surgery. -Gain share in West Japan. -Develop and Sale of High-End and High Value-Added products. -Cultivate Overseas Markets. Profit Strategy -Driving the strategy of Higher Quality and Value-Added products.
Slide 30: Sales Strategy: Products
Sales Strategy FY2015 FY2018 FY2021E (3 terms ago) (Previous term) (3 terms later) net sales ¥16,150 million ¥17,144 million ¥18,600 million Healthcare Doctors' 58% 56% 15% 58% 16% 16% 2% Utility 4% 3% Item Patient Patient 9% 11% 14% Surgery 10% Surgery 3% 10% 2% 12% Others 11% 1% Central Japan 11%
Slide 31: Trend of Business Records
Trend of Business Records (¥ million) (%) 17,500 Net sales (left) 55 15,000 Gross profit to sales (right) 12,500 45 10,000 7,500 5,000 35 2,500 0 25 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19E20E21E (FY) Note: Consolidated
Slide 32: VI Rewarding shareholder-focused policies
VI Rewarding shareholder -focused policies 日本ではじめてのナースのための心のコミュニケーションスペース「いとなギャラリー」 31
Slide 33: Reimbursement Policy
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 buyback - A
Slide 34: The History of Stock Value
The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,200 ※1 FY2009: Accrued pension fund withdrawal 125 FY2001 532.5 50.8 12.5 payment loss ¥1.04b. A dotted line is when there was not outbreak. FY2002 568.3 48.0 12.5 FY2003 604.0 52.4 15.0 1,100 FY2004 663.0 60.5 30.0 100 FY2005 70
Slide 35: Actual Dividends Paid
Actual Dividends Paid Total dividend Share buyback Payout ratio Total return ratio （Million yen） （Million yen） （non-c, ％） （non-c, ％） FY2001 475 0 27.6 27.6 FY2002 475 0 29.3 29.3 FY2003 530 1,697 29.7 124.6 FY2004 744 0 36.5 36.5 FY2005 1,117 0 56.9 56.9 FY2006 1,117 0 53.4 53.4 FY2007 1,117 0 53.1
Slide 36: 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 37: 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 38: Data File
Data File FY2018 (Listed on the 1st Section of the Tokyo Stock Exchange;Code 7447) <Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>
Slide 39: Index
Index 1 … Sales by Item 2 … Sales by Product 3 … Sales by Region 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
Slide 40: 1. Sales by Item
1. Sales by Item (¥ million) First-half First-half FY 15/8 16/8 17/8 18/8 19/8E 17/8 18/8 Sales 16,150 16,537 17,017 17,144 17,600 7,149 7,419 (¥ million) Healthcare wear 9,429 9,674 9,940 9,974 10,180 4,110 4,265 20,000 Doctors' wear 2,604 2,654 2,681 2,671 2,730 1,075 1,092 Utility wear 670 601 55
Slide 41: 2. Sales by Product
2. Sales by Product (¥ million) First-half First-half (¥ million) FY 15/8 16/8 17/8 18/8 19/8E 17/8 18/8 20,000 Sales 16,150 16,537 17,017 17,144 17,600 7,149 7,419 High-End products 1,095 1,104 1,191 1,269 1,350 264 523 18,000 High Value-Added products 7,841 8,336 8,612 8,759 9,150 3,831 3,864 Valu
Slide 42: 3. Sales by Region
3. Sales by Region (¥ million) First-half First-half FY 15/8 16/8 17/8 18/8 19/8E 17/8 18/8 (¥ million) Sales 16,150 16,537 17,017 17,144 17,600 7,149 7,419 20,000 East Japan 8,357 8,539 9,007 9,065 9,250 3,625 3,829 18,000 Central Japan 1,774 1,717 1,756 1,795 1,850 757 811 West Japan 5,842 6,080 6
Slide 43: 4. 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 15/8 16/8 17/8 18/8 19/8E 10,000 55 17/8 18/8 Domestic production 4,901 4,771 4,676 4,678 4,655 2,380 2,356 Overseas production 4,215 4,419 4,447 4,625 4,785
Slide 44: 5. Statements of Income (Consolidated)
5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 15/8 16/8 17/8 18/8 19/8E 17/8 18/8 Net Sales 16,150 16,537 17,017 17,144 17,600 7,149 7,419 Gross profit 7,532 7,735 8,086 8,050 8,210 3,405 3,469 Sales, general, and administrative expense 2,719 2,784 2,843 2,786 2,968 1,4
Slide 45: 6. Statements of Income (Non-Consolidated)
6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 15/8 16/8 17/8 18/8 19/8E 17/8 18/8 Net Sales 16,141 16,535 17,013 17,140 17,600 7,148 7,413 Gross profit 7,218 7,416 7,826 7,835 8,012 3,272 3,377 Sales, general, and administrative expenses 2,718 2,775 2,831 2,779 2,95
Slide 46: 7. Indices (Consolidated)
7. Indices (Consolidated) First-half First-half (Unit) 14/8 15/8 16/8 17/8 18/8 17/8 18/8 Profitability ROE (%) 9.5 9.3 9.4 10.3 9.8 - - ROA (%) 13.5 13.0 12.7 13.4 12.8 - - Return on sales Net income (%) 19.9 20.0 19.7 21.6 21.4 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -
Slide 47: 8. Indices (Non-Consolidated)
8. Indices (Non-Consolidated) First-half First-half (Unit) 14/8 15/8 16/8 17/8 18/8 17/8 18/8 Profitability ROE (%) 10.1 9.8 10.0 11.0 10.5 - - ROA (%) 14.2 13.7 13.4 14.2 13.6 - - Return on sales Net income (%) 19.4 19.4 19.2 21.2 21.1 - - ROE resolution Total AssetsTurnover (Times) 0.5 0.5 0.5 0.5
Slide 48: 9. Statements of Income (Consolidated)
9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 17/8 18/8 Change(the previous year) First-half 17/8 First-half 18/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,017 100.0 17,14
Slide 49: 10. Statements of Income (Non-Consolidated)
10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 17/8 18/8 Change(the previous year) First-half 17/8 First-half 18/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,013 100.0
Slide 50: 11. Balance Sheet (Consolidated)
11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 17/8 18/8 Change(the previous year) First-half 17/8 First-half 18/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 32,325 78.9 33,327
Slide 51: 12. Balance Sheet (Non-Consolidated)
12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 17/8 18/8 Change(the previous year) First-half 17/8 First-half 18/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 29,166 77.7 30,0
Slide 52: 13. The Forecasts/Results of Net Sales (Consolidated)
13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 14/8 15/8 16/8 17/8 18/8 19/8E Full Year 16,000 16,700 16,500 17,000 17,500 17,600 First-half 6,530 6,950 6,850 7,140 7,350 7,463 Second-half 9,470 9,750 9,650 9,860 10,150 10,137 15,000 25 [Resu