Nagaileben Co., Ltd. · TSE:7447

Nagaileben — H1 FY2024 Earnings Presentation

54 slides from Nagaileben's earnings presentation, April 2024

  1. Slide 1: Analyst Guide April 2024

    ANALYST GUIDE April 2024 <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289-8200)> (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447)

  2. Slide 2: Summary

    Summary 1 Results of First-half FY2024 Net Sales: 7,392 m ¥ -6.8% y/y Operating income : ¥1,608 m -13.5% y/y 2 Revisions to Performance Forecasts of FY2024 Based on the performance results from first-half of FY2024, we revised full-year performance forecast. Net Sales: ¥17,200m(-600m) Operating inco

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3 p Ⅱ Business Environment ・・ ・・・ 9 p and Strategy Ⅲ Financial Review of ・・15 p First-half FY2024 and Forecast for FY2024 Ⅳ Overview and Measures ・ ・・・22 p Ⅴ Management Goals ・・・・・・ 27 p VI Rewarding Shareholder- ・・・ 31 p Focused Policies 2 © Nagaileben Co.,L

  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 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 43.9% (2023) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 43.9% 40 28.6% (1990) 45.3% (2010) -Capital-to-asset ratio 91.1% 35 (1980) 39.7% -

  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

  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” Recent Activities Support for the Noto Peninsula Resumption of In-person Beauty Sessions Earthquake Disaster Affected Areas In response to requests, the 'Beauty Course for Donation of isolation gowns to medical facilit Nurse,' which was temporari

  9. 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 -Providing uniforms for disaster support nurses to the Japanese Nurs Business ing Association Many of our products use materials derived from exhaustible resources. By p

  10. Slide 10: Market Environment

    II Market Environment 9 © Nagaileben Co.,Ltd.

  11. Slide 11: Positive reward revisions, yet inflation influence persists

    Topics The market environment sees positive reward revisions, yet the influence of inflation persists - Medical treatment fees +0.88%, Care service fees +1.59% - The increased costs due to inflation were putting financial pressure on healthcare and caregiving institutions. Rising Cost Pressures in P

  12. Slide 12: Revisions to Medical Treatment and Care Service Fees

    Environment Revisions to Medical Treatment and Care Service Fees Double Revision of Medical and Care Reimbursements Planned for 2024 -Medical treatment fees: Service:+0.88% (effective June 2024), Drug price:-1.00% (effective April 2024) (+1.59%) -Nursing care fees:+1.59% (effective April 2024), (The

  13. 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 202 200 150 245 100 188 189 166 50 0 2022 2025 2022 2025 Actual record: Overview of Health Administration Reports, MHLW Actual record: Research of Long-Term

  14. Slide 14: Current Status of Marketing Strategy

    Business Plan Current Status of Marketing Strategy Strategy Upcoming Actions Capture needs with strategy for value-added The introduction of the new brand 'MACKINTOSH products in core market PHILOSOPHY' is expected to invigorate the market Expansion of Market Share through COMPELPACK and Increase sh

  15. Slide 15: Current Status of Production Strategy

    Business Plan Current Status of Production Strategy Strategy Upcoming Actions Optimizing production allocation both domestically and internationally Management of suitable location Material: Cost reduction by transferring production from domestic production materials to overseas materials. Japan: St

  16. Slide 16: Financial Review of First-half FY2024 and Forecast for FY2024

    Ⅲ Financial Review of First-half FY2024 and Forecast for FY2024 15 © Nagaileben Co.,Ltd.

  17. Slide 17: Revisions to Performance Forecasts of FY2024

    Consolidated Results Revisions to Performance Forecasts of FY2024 Considering the difficulty in recovering the deviation from the budget in the first half during the latter half, we have decided to revise our full-year projected landing. The budget for the latter half will remain consistent with the

  18. Slide 18: Revisions to Performance Forecasts of FY2024

    Consolidated Results Revisions to Performance Forecasts of FY2024 - Profit margin will be maintained in line with the initial plan, considering the progress up to the previous period. - Implemented cost reduction in SGA compared to the initial plan. FY2024E FY2024E Increase/dec rease (millions of ye

  19. Slide 19: Financial Review of First-half FY2024 and Forecast

    Consolidated Results Financial Review of First-half FY2024 and Forecast for FY2024 FY2024 FY2024 (millions of yen,%) First-half(Results) y/y Change Full(Forecast) y/y Change Net sales 7,392 -6.8 17,200 +0.1 Gross profit 3,195 -6.1 7,450 -1.3 Sales, general, and administrative expenses 1,586 +2.7 3,0

  20. Slide 20: Financial Review: Gross Profit Factors

    Consolidated Results Financial Review of First-half FY2024 and Forecast for FY2024 FY2024 FY2024 (millions of yen,%) First-half(Results) y/y Change Full(Forecast) y/y Change Net sales 7,392 -6.8 17,200 +0.1 Gross profit 3,195 -6.1 7,450 -1.3 Sales, general, and administrative expenses 1,586 +2.7 3,0

  21. Slide 21: Financial Review: SG&A and Capital Expenditure

    Consolidated Results Financial Review of First-half FY2024 and Forecast for FY2024 FY2024 FY2024 (millions of yen,%) First-half(Results) y/y Change Full(Forecast) y/y Change Net sales 7,392 -6.8 17,200 +0.1 Gross profit 3,195 -6.1 7,450 -1.3 Sales, general, and administrative expenses 1,586 +2.7 3,0

  22. Slide 22: Financial Review of First-half FY2024 (Balance Sheet)

    Consolidated Results Financial Review of First-half FY2024 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 25,061 -548 -2.1 Notes and accounts receivable (including electronically recorded claims) 4,902

  23. Slide 23: Overview and Measures

    IV Overview and Measures 22 © Nagaileben Co.,Ltd.

  24. Slide 24: Market Classification

    Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Infection prevention Patient wear Doctors' wear Utility wear Surgery wear 23 © Nagaileben Co.,Ltd.

  25. Slide 25: Overview and Measures: Market

    Overview and Measures Market Composition y/y change FY2023 FY2024 (FY2023) (%) First-half Full First-half Fulll(E) Utility/Others Total sales +1.5 -3.2 -6.8 +0.1 Doctors' 14.6% 3.0% Core Market +1.5 -4.5 -8.6 -1.0 Patient Healthcare wear +3.1 -3.1 -8.4 -0.7 17.1% Doctors' wear +0.3 -5.2 -8.8 -0.3 Ut

  26. Slide 26: Overview and Measures: Product

    Overview and Measures Product y/y change FY2023 FY2024 First- First- (%) half Full half Fulll(E) Sales by Product Total sales +1.5 -3.2 -6.8 +0.1 (¥ million) High-End +8.7 +9.4 -6.7 +2.2 18,000 products High Value-Added 16,000 MHLW +0.2 -3.5 -3.3 +1.9 products 14,000 High-End Value-Added 12,000 +2.6

  27. Slide 27: Overview and Measures: Production

    Overview and Measures Production Composition Changes in Production Status (%) FY2023 FY2024E (Non-Consolidated) Domestic (¥ million) (%) production 46.2 45.0 12,500 60 Overseas Purchased production 53.2 54.5 10,000 55 products Purchased Overseas products 0.6 0.5 7,500 50 production Domestic 5,000 45

  28. Slide 28: Management Goals

    V Management Goals 27 © Nagaileben Co.,Ltd.

  29. Slide 29: 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 -Developing Low-Cost Strategy Products Utilizing Overseas Fact

  30. Slide 30: Business Direction: FY2026 Targets

    Strategy Business Direction FY2020 FY2023 FY2026E (3 terms ago) (Previous term) (3 terms later) Net sales ¥17.0 billion ¥17.1 billion ¥18.9 billion Core 69% 72% 77% Market Peripheral 29% 22% 26% Overseas 1% 2% 1% 58% 59% High Value-Added 51% Product Value-Added 33% 30% 28% Mass High-End 6% 4% 4% 10%

  31. Slide 31: Trend of Business Records

    Strategy Trend of Business Records (¥ million) （％） 20,000 70 17,500 Net sales (left) 65 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 24 25 26 80 86 92 98 04 10 16 22 E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preceding yea

  32. Slide 32: Rewarding Shareholder-Focused Policies

    VI Rewarding Shareholder -Focused Policies 31 © Nagaileben Co.,Ltd.

  33. Slide 33: 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

  34. Slide 34: Shareholder Returns Based on Stable Profit

    Reward Shareholder Returns Based on Stable Profit Strong balance sheet Achieving a high Highly profitability return rate 72.9 % (Total dividend + Share buyback) ÷ Net Income Share buyback Net Income ¥4.7 B * Total Assets Capital-to- asset ratio Shareholder ¥47.3 B Total dividend Returns 91.1 % ¥34.6

  35. Slide 35: Flexible Repurchase of Share

    Reward Flexible Repurchase of Share The movement of our company's stock price Stock price (end of month closing) before adjustment for splits （Yen） Stock price (end of month closing) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2001 2006 2011 2016 2021 FY2003 FY2008 FY2009 FY2011 FY2012 FY2015 FY

  36. Slide 36: 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

  37. Slide 37: The History of Stock Value

    Reward The History of Stock Value BPS EPS DPS （Yen） （Yen） （yen） （yen） （yen） 1,500 150 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 568.3 48.0 12.5 line is when there was not outbreak. 1,400 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 FY2005

  38. 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 /

  39. 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

  40. Slide 40: Data File

    Data File First-half FY2024 (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)>

  41. 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

  42. Slide 42: 1. Sales by Market

    1. Sales by Market (¥ million) (¥ million) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 23/8 24/8 18,000 Sales 17,066 17,563 17,745 17,181 17,200 7,931 7,392 Core Market 13,115 13,207 13,021 12,438 12,320 5,674 5,187 16,000 Peripheral Market 3,749 4,152 4,486 4,509 4,630 2,161 2,097 Overseas M

  43. Slide 43: 2. Sales by Item

    2. Sales by Item (¥ million) (¥ million) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 23/8 24/8 18,000 Sales 17,066 17,563 17,745 17,181 17,200 7,931 7,392 Healthcare wear 8,831 9,560 9,698 9,395 9,330 4,318 3,956 16,000 Doctors' wear 2,451 2,600 2,655 2,517 2,510 1,118 1,019 14,000 Utility/Ot

  44. Slide 44: 3. Sales by Product

    3. Sales by Product (¥ million) First-half First-half (¥ million) FY 20/8 21/8 22/8 23/8 24/8E 23/8 23/8 18,000 Sales 17,066 17,563 17,745 17,181 17,200 7,931 7,392 High-End products 1,072 1,218 1,269 1,389 1,420 590 551 16,000 High Value-Added products 8,692 9,302 10,269 9,908 10,100 4,535 4,384 Va

  45. Slide 45: 4. Production Strategy (Non-Consolidated)

    4. Production Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 20/8 21/8 22/8 23/8 24/8E 12,500 60 23/8 24/8 Domestic production 4,743 4,581 4,974 4,933 4,825 2,535 2,414 Overseas production 4,775 4,824 5,456 5,680 5,844 2,769 2,871 Purchased products 128 110 83 64 54

  46. Slide 46: 5. Statements of Income (Consolidated)

    5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 23/8 24/8 Net Sales 17,066 17,563 17,745 17,181 17,200 7,931 7,392 Gross profit 7,810 8,058 7,881 7,547 7,450 3,404 3,195 Sales, general, and administrative expenses 2,872 2,846 2,850 2,942 3,050 1,

  47. Slide 47: 6. Statements of Income (Non-Consolidated)

    6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 23/8 24/8 Net Sales 17,061 17,552 17,737 17,177 17,200 7,927 7,386 Gross profit 7,650 7,875 7,726 7,390 7,253 3,322 3,120 Sales, general, and administrative expenses 2,868 2,849 2,874 2,945 3,02

  48. Slide 48: 7. Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 19/8 20/8 21/8 22/8 23/8 23/8 24/8 Profitability ROE (%) 8.8 8.7 8.9 9.0 7.5 - - ROA (%) 11.5 11.3 11.6 11.0 9.9 - - Return on sales Net income (%) 20.5 20.4 20.8 21.3 18.8 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 - -

  49. Slide 49: 8. Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 19/8 20/8 21/8 22/8 23/8 23/8 24/8 Profitability ROE (%) 9.5 9.2 9.4 9.5 8.1 - - ROA (%) 12.4 12.0 12.3 11.6 10.5 - - Return on sales Net income (%) 20.5 20.0 20.4 21.0 18.6 - - ROE resolution Total AssetsTurnover (Times) 0.4 0.4 0.4 0.4 0.4

  50. Slide 50: 9. Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,745 100.0 17,18

  51. Slide 51: 10. Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,737 100.0

  52. Slide 52: 11. Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 38,902 82.2 38,995

  53. Slide 53: 12. Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 Change(the previous year) First-half 23/8 First-half 24/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 35,612 81.2 35,5

  54. Slide 54: 13. The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (Initial plan) (¥ million) 20,000 50 FY 20/8 21/8 22/8 23/8 24/8 Full Year 17,400 17,300 17,700 18,200 17,800 First-half 7,482 7,655 7,719 8,022 7,936 Second-half 9,918 9,645 9,980 10,178 9,863 15,000 25 [Result] (¥ mill

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