Sbc Medical Group Holdings Incorporated · NASDAQ:SBC
Sbc Medical — Investor Presentation (May 2025)
43 slides from Sbc Medical's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor Presentation May 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements & Legal DisclaimerThis presentation contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are not historical facts; they reflect our current expectations, estimates and projection
Slide 3: 3
3
Slide 4: Table of Contents
Table of Contents I. Executive Summary P05 II. Business Environment and Response P12 III. Business Strategies by Segments P15 IV. Capital Strategy P23 Appendix P26 4
Slide 5: I. Executive Summary
l. Executive Summary S B GC Medical G rOuD Holdings, Inc. 5
Slide 6: 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$265m in 2025Q1 Total Revenue: US$47m in 2025Q1 Aesthetic
Slide 7: 2025Q1 Franchise Clinics Performance Highlights
2025Q1 Franchise Clinics Performance Highlights • We believe Strategic pricing management is driving strong customer growth, particularly in aesthetic dermatology Franchise Clinics Key Figures（25Q1） Number of Franchise clinics¹ Repeat Rate² ³ ⁴ Total Revenue ¹ ⁵ ⁷ ⁸ at the end of Mar 25 251 clinics
Slide 8: Business Segment Overview
Business Segment Overview • SBC offers a diverse range of brands and is expanding beyond Aesthetic Medical Business into Medical Business, Overseas Business, and platform businesses. Aesthetic Medical Business Medical Business Overseas Business Comprehensive Dentistry Comprehensive (130 clinics) (9
Slide 9: Revenue Grew After Adjusting for One-time Business Impact
Revenue Grew After Adjusting for One-time Business Impact • Revenue¹ grew YoY after adjusting for the impact of the termination of the staffing business termination and the deconsolidation of SNA and Kijimadaira (mm US$) (2.9) (5.6) +2.2 +2.0 (1.4) +1.3 54.8 +1.1 (1.4) +0.6 48.6 47.3 46.4 24Q1 Decon
Slide 10: 2025Q1 Financial Performance Highlights
2025Q1 Financial Performance Highlights • SBC demonstrated impressive bottom-line growth SBC Medical Group Holdings Key Financials (25Q1) Total Revenues EBITDA¹ EBITDA Margin² $47 M $25 M 52 % (YoY (14)%) (YoY (3)%) (YoY +6pt) Net Income ROE³ (Annualized) Basic EPS⁴ attributable to SBC Medical Group
Slide 11: Robust Balance Sheet Positioned for Growth
Robust Balance Sheet Positioned for Growth • SBC’s balance sheet is strong with ample cash and borrowing capacity Key Balance Sheet Figures (as of March 31, 2025) Selected items from Balance Sheet Mar 31, Dec 31, (mm US$) 2025 Change 2024 Total assets 285 +19 266 US$132mn 0.05x Total current assets
Slide 12: II. Business Environment and Response
Ⅱ. Business Environment and Response 12
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: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: IV. Capital Strategy
IV. Capital Strategy S B GC Medical G rOuD Holdings, Inc. é 2 3
Slide 24: 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 25: Share Buyback
Share Buyback • Based on the view that the current share price undervalues the company’s performance and growth, a USD5mm million share buyback was decided, and the planned Bitcoin purchase announced in February 2025 was canceled • The policy to consider additional share liquidity in line with fundi
Slide 26: Appendix
Appendix SBC Medical Group Holdings, Inc. 26
Slide 27: Income Statement (Consolidated)
Income Statement (Consolidated) • Income from operations was maintained through expense reductions, while declines in revenue and cost of sales due to the termination of the staffing business and the deconsolidation of SNA and Kijimadaira¹ Income Statement²（25Q1） (mm US$) 25Q1 % YoY 24Q1 1 Total rev
Slide 28: EBITDA Remained In-line with Previous Year
EBITDA Remained In-line with Previous Year • EBITDA¹ ² remained in line with the previous year, reflecting the decline in Revenue, Adjusted CGS, and Operating Expenses-Others resulting from the termination of the staffing business and the deconsolidation of SNA and Kijimadaira +0.7 (mm US$) +1.6 +0.
Slide 29: 2025Q1 Revenue Growth (vs 24Q4)
2025Q1 Revenue Growth（vs 24Q4） • Revenue growth rebounded from Q4 2024 +4.1 (mm US$) +0.7 （1.0） +3.8 +0.1 +0.3 47.3 47.7 (0.8) +0.1 44.4 43.6 24Q4 Deconsolidation 24Q4 Franchising Procurement Management Rental services Others 25Q1 FX 25Q1 of SNA and Adjusted Revenue Services Revenue adjusted FX Kiji
Slide 30: 2025Q1 EBITDA Growth (vs 24Q4)
2025Q1 EBITDA Growth(vs24Q4) • EBITDA¹ growth rebounded from Q4 2024 +0.2 (mm US$) +0.5 +1.0 +0.5 (0.8) +2.9 24.8 25.0 20.7 24Q4 Revenue Adjusted CGS Saiaries Consulting and Operating 25Q1 FX 25Q1 and welfare professional Expenses-Others adjusted FX service fees ¹ EBITDA = Income from operations + D
Slide 31: Income Statement (Consolidated)
Income Statement (Consolidated) Income Statement Operating Expenses 25Q1 % QoQ % YoY 24Q4 24Q1 25Q1 % QoQ % YoY 24Q4 24Q1 (mm US$) (mm US$) Total revenues 47 +7% (14)% 44 55 Total operating expenses 14 (54)% (10)% 29 15 Franchising Revenue 16 +1% +4% 16 15 Salaries and welfare 6 +15% (1)% 6 7 Procur
Slide 32: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Mar 31, Dec 31, Mar 31, Dec 31, (mm US$) 2025 Change 2024 (mm US$) 2025 Change 2024 Total assets 285 +19 266 Total liabilities 58 (13) 71 Total current assets 215 +31 184 Total current liabilities 48 (13) 61 Cash and cash equivalent 132 +7 125 Accounts payable 18 +4 14 N
Slide 33: Cash Flows (Consolidated)
Cash Flows (Consolidated) 25Q1 24Q1 (mm US$) %YoY Net cash provided by operating activities 2 (48)% 4 Net cash provided by (used in) investing activities (1) +71% (3) Net cash provided by financing activities (0) (597)% (0) Effect of changes in foreign currency exchange rate 6 n.m. (7) Net change in
Slide 34: Reconciliation Table on Non-GAAP Financials
Reconciliation Table on Non-GAAP Financials （mm US$） 25Q1 24Q1 24Q4 (A) Total Revenues 47 55 44 (B) Income from operations 24 24 5 (C) Depreciation and 1 1 1 amortization expense 0 0 15 (D) Impairment loss (E) =(B)+(C) +(D) EBITDA 25 25 21 (F) =(E)／(A) EBITDA Margin 52% 46% 47% 34
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 40: 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 40
Slide 41: 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 42: Disclaimer
Disclaimer Non-GAAP Financial Measures This presentation may reference certain non-GAAP financial measures. Reconciliations of such measures to the most directly comparable GAAP measures are provided in the appendix to this presentation and are available on our investor relations website. No Offer o
Slide 43: 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
SBC Medical Group Holdings — Investor Presentation (May 2025) on 6ix