Sbc Medical Group Holdings Incorporated · NASDAQ:SBC
Sbc Medical — Investor Presentation (March 2025)
38 slides from Sbc Medical's investor presentation, March 2025
Slide 1: Investor Presentation
Investor Presentation March 2025
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the
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Slide 4: Table of Contents
Table of Contents I. Executive Summary P5 II. Financial Results in 2024 P8 III. Business Strategies by Segments P15 IV. Capital Strategy P26 Appendix P29 4
Slide 5: I. Executive Summary
l. Executive Summary S B GC Medical G rOuD Holdings, Inc. 5
Slide 6: FY2024 Financial Performance Highlights
FY2024 Financial Performance Highlights • SBC demonstrated healthy growth and YoY SBC Medical Group Holdings Key Financials (FY2024) Total Revenues EBITDA¹ EBITDA Margin² $205 M $89 M 43 % (YoY +6%) (YoY +8%) (YoY +1pt) Net Income ROE³ Basic EPS⁴ attributable to SBC Medical Group Holdings Incorporat
Slide 7: FY2024 Franchise Clinics Performance Highlights
FY2024 Franchise Clinics Performance Highlights • Strategic price revisions and clinic expansion are driving strong customer growth, particularly in aesthetic dermatology Franchise Clinics Key Figures（FY2024） Number of Franchise clinics¹ Repeat Rate² ³ ⁴ Total Revenue ¹ at the end of Dec24 251 clini
Slide 8: II. Financial Results in 2024
Ⅱ. Financial Results in 2024 8
Slide 9: 2024 Recap: Growth Despite Tougher Landscape
2024 Recap: Growth Despite Tougher Landscape • Agile pricing strategy to expand customer base amid intensifying competition • Proactive measures to navigate market restructuring driven by hair removal salon & clinic closures Though the Aesthetic Medical Market is Expanding… Headwinds Against Aesthet
Slide 10: Revenue Growth Driven by Diverse Services
Revenue Growth Driven by Diverse Services • Revenue1 has steadily increased in line with the expansion of number of clinics even under JPY depreciation • Management services decreased mainly as a result of the termination of staffing services ＋16.0 (mm US$) ＋18.9 ＋1.6 ＋8.8 ＋1.7 (19.2) 221.4 193.5 20
Slide 11: EBITDA Growth Driven by Top Line
EBITDA Growth Driven by Top Line • Core EBITDA1 2 shows steady growth even after one time cost of stock-based compensation stemming from IPO (mm US$) +6.9 +7.1 +13.0 +11.9 (5.1) +5.4 107.7 (13.0) 109.1 89.2 82.9 FY2023 Revenue Cost of Consulting and Stock based Others FY2024 Stock based FX FY2024 Re
Slide 12: Robust Balance Sheet Positioned for Growth
Robust Balance Sheet Positioned for Growth • With ample cash and minimal borrowing, funds are primarily allocated for growth investments Key Balance Sheet Figures (as of December 31, 2024) Selected Items from Balance Sheet Dec 31, Dec 31, 2024 YoY 2023 (mm US$) Total assets 266 +7 259 US$125mm 0.06x
Slide 13: Strategic Action for 2025 (Franchisee)
Strategic Action for 2025 (Franchisee) • Supporting flexible pricing strategies for franchise clinics in response to industry changes Price Revisions in Dermatological Treatments Upward Revision of Medical Hair Removal Prices¹ Approximately 20% price increase in response to supply and ✓ Due to frequ
Slide 14: Strategic Response for 2025 (Franchisor)
Strategic Response for 2025 (Franchisor) • In light of the challenging competition, we are revising franchise fees as part of our long-term growth strategy to support franchisees open new clinics, in order to expand and stabilize our business foundation Major Revisions to the Franchise Fee Optimizat
Slide 15: III. Business Strategies by Segments
Ⅲ. Business Strategies by Segments 15
Slide 16: Aspiration Towards 2027
Aspiration Towards 2027 Aspiration • Become a medical service company responding to various customer needs globally, centered on aesthetic medical • Develop a strong business foundation for overseas business areas which will accelerate our growth going forward Priority Business Areas Aesthetic Medic
Slide 17: No.1 Aesthetic Medical Group in Japan
Aesthetic Medical Business Medical Business Overseas Business No.1 Aesthetic Medical Group in Japan • Achieving continuous growth in both clinic and customer numbers for over 20 years • Market leader in Japan with the largest customer base and clinic network Historical Trend of # of Clinics¹ (as of
Slide 18: Strong Growth Potential and Room for Expansion
Aesthetic Medical Business Medical Business Overseas Business Strong Growth Potential and Room for Expansion • Aesthetic medicine penetration continues to rise, driven by dermatological treatment growth • With 12% market penetration, expanding to middle-aged women and men offers significant growth p
Slide 19: Location Strategy Aligned with Regional Needs
Aesthetic Medical Business Medical Business Overseas Business Location Strategy Aligned with Regional Needs • Multi-brand strategy in core metropolitan areas to precisely meet diverse customer needs • Leveraging the SBC brand to establish comprehensive aesthetic clinics in regional cities, catering
Slide 20: Inbound Strategy
Aesthetic Medical Business Medical Business Overseas Business Inbound Strategy • Driven by demand for Japan's safe, high-quality services, with strong growth led by Chinese customers • Enhancing multilingual support and leveraging Chinese social media to accelerate customer acquisition Strong Moment
Slide 21: Medical Business Growth and Outlook
Aesthetic Medical Business Medical Business Overseas Business Medical Business Growth and Outlook • Expanding into profitable and promising fields such as orthopedics, ophthalmology, infertility treatment／ gynecology, and alopecia treatment, leveraging expertise from private healthcare to drive furt
Slide 22: Future Strategies in the Medical Business
Aesthetic Medical Business Medical Business Overseas Business Future Strategies in the Medical Business • Beyond franchise expansion, we support insurance-based clinics nationwide adopt self-funded treatments, addressing reimbursement challenges and expanding our customer base Franchise type Compreh
Slide 23: Strategic Initiatives in Overseas Business
Aesthetic Medical Business Medical Business Overseas Business Strategic Initiatives in Overseas Business • In the US, Exploring a MedSpa and platform launch on the West Coast • In Asia, Expanding our business using Singapore’s AHH, acquired last year, as a regional hub Seeking to expand in Asia Nort
Slide 24: Overseas Business: Overall Strategy
Aesthetic Medical Business Medical Business Overseas Business Overseas Business: Overall Strategy • Build a solid business foundation by 2027, focusing on the U.S. and Southeast Asia • Accelerating expansion via dual engines: SBC owned clinics and a high-growth franchise strategy Platformer Clinics
Slide 25: Recent Initiatives
Recent Initiatives • SBC accelerates growth with new initiatives: launching “SBC Wellness” and partnering with B4A Inc. to enhance franchise services SBC Wellness (employee benefits program) Alliance with B4A Inc., ● Launched the employee benefits program 'SBC ● In September 2024, announced a busine
Slide 26: IV. Capital Strategy
IV. Capital Strategy SBC Medical Group Holdings, Inc. 26
Slide 27: Current Challenges of SBC's Shares
Current Challenges of SBC’s Shares • Low stock liquidity makes trading difficult for institutional investors. ① Improve supply-demand dynamics and ② consider adding liquidity to ensure fair valuation Current Challenge on SBC’s Shares Ideal Progression for our Capital Situation ited Liquidity proving
Slide 28: Exploring Strategic Actions in Capital Markets
Exploring Strategic Actions in Capital Markets1 • Exploring all measures to boost liquidity and attract investor interest • Focusing on improving both stock price and liquidity with timely and effective actions ①Efforts to improve supply- ② Efforts to additional liquidity ③ Virtuous demand dynamics
Slide 29: Appendix
Appendix SBC Medical Group Holdings, Inc. 29
Slide 30: Group Structure and Business Model
Group Structure and Business Model • SBC provides comprehensive consulting and management services to the medical corporations and their clinics through a franchise model US Franchise Clinics SBC Medical Group Holdings, Inc. Total Revenue: US$1.1bn in FY2024 Total Revenue: US$205mm in FY2024 Aesthet
Slide 31: Business Segment Overview
Business Segment Overview • SBC offers a diverse range of brands and is expanding beyond Aesthetic Medical Business into Medical Business, Overseas Business, and platform businesses. Aesthetic Medical Business Medical Business Overseas Business Comprehensive Dentistry ¹ Comprehensive (130 clinics) (
Slide 32: Income Statement (Consolidated)
Income Statement (Consolidated) Income Statement Operating Expenses FY24 FY23 24Q4 23Q4 FY24 FY23 (mm US$) % YoY % YoY % YoY (mm US$) Total revenues 205 +6% 194 44 (29)% 62 Total operating expenses 86 +29% 67 Franchising Revenue 61 +45% 42 16 (6)% 17 Salaries and welfare 27 (0)% 27 Procurement Reven
Slide 33: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Dec 31, Dec 31, Dec 31, Dec 31, (mm US$) 2024 YoY 2023 2024 YoY 2023 (mm US$) Total assets 266 7 259 Total liabilities 71 (44) 115 Total current assets 184 +19 166 Total current liabilities 61 (31) 92 Cash and cash equivalent 125 +22 103 Accounts payable 14 (13) 27 Accou
Slide 34: Cash Flows (Consolidated)
Cash Flows (Consolidated) FY24 FY23 % YoY (mm US$) Net cash provided by operating activities 21 (59)% 51 Net cash provided by (used in) investing activities (10) (633)% 2 Net cash provided by financing activities 23 +274% 6 Effect of changes in foreign currency exchange rate (11) 56% (7) Net increas
Slide 35: Reconciliation Table on Non-GAAP Financials
Reconciliation Table on Non-GAAP Financials (mm US$) FY24 FY23 24Q4 23Q4 (A) Total revenues 205 194 44 62 (B) Income from operations 70 71 5 24 (C) Depreciation and 4 12 1 3 amortization expense (D) Impairment loss 15 - 15 - (E) =(B)+(C)+(D) EBITDA 89 83 21 27 (F) =(E)／(A) EBITDA Margin 43% 43% 47%
Slide 36: Our Philosophy
Our Philosophy • Our purpose is to improve the well-being of people around the world with the latest medical innovations and achieve the ultimate win-win for all Through Dr. Yoshiyuki Aikawa Founder, Director (Chairman) & Chief Executive Officer 36
Slide 37: Our Vision
Our Vision • To achieve further growth in Japan and overseas, we will expand our clinic network • By continuing to focus on the research and development of new medical technologies, medical devices, and cosmetics, we aim to increase our global presence with the listing on NASDAQ and establish oursel
Slide 38: Thank you
Thank you SBC Medical Group Holdings / ir@sbc-holdings.com ICR, LLC / US Investor Contact / +1 (646) 277 1200 /William.Zima@icrinc.com 38
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