Nagaileben Co., Ltd. · TSE:7447

Nagaileben — H1 FY2023 Earnings Presentation

51 slides from Nagaileben's earnings presentation, April 2023

  1. Slide 1: Analyst Guide April 2023

    Our Message to Medical Workers We sincerely would like to express deep appreciation for your devoted works on the frontiers against COVID-19. We will never forget your courage. (Listed on the Prime Market Segment of the Tokyo Stock Exchange; Code 7447) ANALYST GUIDE April 2023 <Contact for informati

  2. Slide 2: Summary: Results of First-half FY2023

    Summary Results of First-half FY2023 Achieved record sales in this term, excluding the one-time special factor of delivery of infection control products to the Ministry of Health, Labor and Welfare (315 million yen) in FY2021. Net Sales: ¥7,931 m Operating income : ¥1,859 m Urgent Need To Respond To

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3 p Ⅱ Business Environment ・・ ・・・ 9 p and Strategy Ⅲ Financial Review of ・・16 p First-half FY2023 and Forecast for FY2023 Ⅳ Overview and Measures ・ ・・・21 p Ⅴ Management Goals ・・・・・・ 26 p VI Rewarding Shareholder- ・・・ 30 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 44.4% (2022) with radical pursuit of efficiency 45 33.1% -Gross profit to sales 44.4% 40 28.6% (1990) 45.3% -Capital-to-asset ratio 89.2% (2010) 35 (1980) 39.7% -

  7. Slide 7: Let Us Help The Human Life Support

    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” What’s NEW Upcycling Nursing Students Coats Beauty Lecture Videos as Graduation Souvenirs for Training New Nurses We upcycled the training uniforms of graduat Provide medical institutions with a es of Fuji City Nursing College into pochettes. re-

  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: Topics: Market Environment and Production Risks

    Topics Is the Market Environment Stable From Confusion? - Classification of coronaviruses under the Infectious Diseases Act will be changed to category 5 Scheduled for May 2023 - Concerns over financial pressure on medical institutions due to inflation The Risk of Production Continues -Soaring raw m

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

    Environment Revisions to Medical Treatment and Care Service Fees （％） 5 +5.0 +4.8 Medical(Service) Medical(Drug) Care 4 +3.4 +3.0 3 +1.9 2 +1.6 +0.7 +1.5 +1.4 +1.2 +0.6 +0.6 1 +0.7 +0.5 +0.4 +0.6+0.5 +0.4 +0.4 +0.4 ▲1.3 +0.0 ▲1.3 0 -1 ▲0.5 ▲ 0.6 ▲ 0.5 ▲ 1.0 ▲ 1.2 ▲ 1.4 ▲ 1.4 ▲ 1.0 ▲ 1.4 ▲ 1.3 ▲ 1.5 ▲

  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 202 200 150 245 100 168 188 186 50 0 2019 2025 2020 2025 Source: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care S

  14. Slide 14: Business Plan: Current Status of Marketing Strategy

    Business Plan Current Status of Marketing Strategy Capture needs with strategy for value-added products in core market Marketing Strategy to Increase share of peripheral market Increase Sales Cultivate overseas market by expanding our business model in Japan Core Market Peripheral Market Overseas Ma

  15. Slide 15: Business Plan: Management Tasks and Status

    Business Plan Management Tasks and Status Strengthen domestic production -Strengthen ability to respond quick response and small-rot multi-production Production Strategy to -Rising manufacturing cost due to increase in labor cost Ensure a Steady Supply Shift to overseas production from domestic. Uti

  16. Slide 16: Urgent Issue: Respond to Sudden Changes in External Environment

    Respond to Sudden Changes in the External Urgent Issue Environment • Sharp rise in material prices due to soaring crude oil prices • Rising logistics and labor costs • Rapid depreciation of JPY in the exchange market We will plan to improve profitability, such as price revisions and efficiency impro

  17. Slide 17: Financial Review of First-half FY2023 and Forecast for FY2023

    Ⅲ Financial Review of First-half FY2023 and Forecast for FY2023 16 © Nagaileben Co.,Ltd.

  18. Slide 18: Consolidated Results and Forecast for FY2023

    Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2023 FY2023 First-half Full (millions of yen,%) To Forecast % % Change % Change (Results) (Forecast) Net sales 7,931 -1.1 ＋1.5 18,200 +2.6 Gross profit 3,404 ＋2.2 -2.5 7,618 -3.3 Sales, general, and administrative expenses 1,5

  19. Slide 19: Gross Profit Factors and Forecast

    Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2023 FY2023 First-half Full (millions of yen,%) To Forecast % % Change % Change (Results) (Forecast) Net sales 7,931 -1.1 ＋1.5 18,200 +2.6 Gross profit 3,404 ＋2.2 -2.5 7,618 -3.3 Sales, general, and administrative expenses 1,5

  20. Slide 20: SG&A Expenses and Capital Expenditure

    Consolidated Results Financial Review of FY2022 and Forecast for FY2023 FY2023 FY2023 First-half Full (millions of yen,%) To Forecast % % Change % Change (Results) (Forecast) Net sales 7,931 -1.1 ＋1.5 18,200 +2.6 Gross profit 3,404 ＋2.2 -2.5 7,618 -3.3 Sales, general, and administrative expenses 1,5

  21. Slide 21: Financial Review of First-half FY2023 (Balance Sheet)

    Consolidated Results Financial Review of First-half FY2023 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 25,610 ▲207 ▲0.8 Notes and accounts receivable (including electronically recorded claims) 5,737

  22. Slide 22: Overview and Measures

    IV Overview and Measures 21 © Nagaileben Co.,Ltd.

  23. Slide 23: Market Classification

    Market Classification Item Classification By Market Core Market Peripheral Market Healthcare wear Infection prevention Patient wear Doctors' wear Utility wear Surgery wear 22 © Nagaileben Co.,Ltd.

  24. Slide 24: Overview and Measures: Market

    Overview and Measures Market Composition y/y change FY2022 FY2023 (First-half (%) First-half Full First-half Fulll(E) FY2023) Utility/Others Total sales -3.1 +1.0 +1.5 +2.6 Doctors' 14.1% 3.0% Core Market -6.8 -1.4 +1.5 +1.4 Healthcare wear -0.4 +1.4 +3.1 +1.6 Patient 18.2% Doctors' wear +0.5 +2.1 +

  25. Slide 25: Overview and Measures: Product

    Overview and Measures Product y/y change FY2022 FY2023E (%) Sales by Product Total sales +1.0 +2.6 High-End (¥ million) products +4.2 +2.4 18,000 High Value-Added 16,000 MHLW products +10.4 +4.2 14,000 Value-Added 12,000 High-End products -8.6 +0.9 10,000 High Value- Mass products -1.5 -7.0 Added 8,

  26. Slide 26: Overview and Measures: Production

    Overview and Measures Production Composition Changes in Production Status (%) FY2022 FY2023E (Non-Consolidated) Domestic (¥ million) (%) production 47.3 46.3 12,500 60 Overseas Purchased production 51.9 53.0 10,000 55 products Purchased Overseas products 0.8 0.7 7,500 50 production Domestic 5,000 45

  27. Slide 27: Management Goals

    V Management Goals 26 © Nagaileben Co.,Ltd.

  28. Slide 28: Strategy: 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 -Strengthen Ability to Respond Quick Response and Small-rot Mu

  29. Slide 29: Strategy: Business Direction FY2025E

    Strategy Business Direction FY2019 FY2022 FY2025E (3 terms ago) (Previous term) (3 terms later) Net sales ¥16.7 billion ¥17.7 billion ¥19.3billion Core 73% 70% 77% Market Peripheral 28% 22% 25% Overseas 1% 2% 1% 60% High Value-Added 58% 53% Product Value-Added 34% 31% 28% Mass 5% High-End 8% 4% 9% 3

  30. Slide 30: Trend of Business Records

    Strategy Trend of Business Records (¥ million) （％） 22,500 70 20,000 Net sales (left) 65 17,500 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 80 86 92 98 04 10 16 22 23 24 25 E E E (FY) (¥ million) Note: Consolidated data since FY1994 are shown. Preced

  31. Slide 31: Rewarding Shareholder-Focused Policies

    VI Rewarding Shareholder -Focused Policies 30 © Nagaileben Co.,Ltd.

  32. Slide 32: Reward Reimbursement Policy

    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

  33. Slide 33: The History of Stock Value

    Reward The History of Stock Value （Yen） （Yen） BPS EPS DPS （yen） （yen） （yen） 1,400 125 ※1 FY2009: Accrued pension fund FY2001 532.5 50.8 12.5 withdrawal payment loss ¥1.04b. A dotted FY2002 line is when there was not outbreak. 568.3 48.0 12.5 1,300 FY2003 604.0 52.4 15.0 FY2004 663.0 60.5 30.0 1,200

  34. Slide 34: 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

  35. Slide 35: 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 /

  36. Slide 36: 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

  37. Slide 37: Data File First-half FY2023

    Data File First-half FY2023 (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

  38. Slide 38: 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

  39. Slide 39: Sales by Market

    1. Sales by Market (¥ million) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 22/8 23/8 18,000 Sales 16,785 17,066 17,563 17,745 18,200 7,817 7,931 Core Market 12,994 13,115 13,207 13,021 13,200 5,591 5,674 16,000 Peripheral Market 3,601 3,749 4,152 4,486 4,750 2,101 2,161 Overseas M

  40. Slide 40: Sales by Item

    2. Sales by Item (¥ million) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 22/8 23/8 18,000 Sales 16,785 17,066 17,563 17,745 18,200 7,817 7,931 Healthcare wear 9,577 8,831 9,560 9,698 9,850 4,186 4,318 16,000 Doctors' wear 2,652 2,451 2,600 2,655 2,700 1,114 1,118 14,000 Utility/Ot

  41. Slide 41: Sales by Product

    3. Sales by Product (¥ million) First-half First-half (¥ million) FY 19/8 20/8 21/8 22/8 23/8E 22/8 23/8 18,500 Sales 16,785 17,066 17,563 17,745 18,200 7,817 7,931 High-End products 1,274 1,072 1,218 1,269 1,300 543 590 16,500 High Value-Added products 8,969 8,692 9,302 10,269 10,700 4,528 4,535 14

  42. Slide 42: Production Strategy (Non-Consolidated)

    4. Production Strategy(Non-Consolidated) (¥ million) First-half First-half (¥ million) (％) FY 19/8 20/8 21/8 22/8 23/8E 12,500 60 22/8 23/8 Domestic production 4,584 4,743 4,581 4,974 5,034 2,555 2,535 Overseas production 4,566 4,775 4,824 5,456 5,766 2,566 2,769 Purchased products 130 128 110 83 80

  43. Slide 43: Statements of Income (Consolidated)

    5. Statements of Income (Consolidated) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 22/8 23/8 Net Sales 16,785 17,066 17,563 17,745 18,200 7,817 7,931 Gross profit 7,840 7,810 8,058 7,881 7,618 3,491 3,404 Sales, general, and administrative expense 2,922 2,872 2,846 2,850 3,044 1,4

  44. Slide 44: Statements of Income (Non-Consolidated)

    6. Statements of Income (Non-Consolidated) (¥ million) First-half First-half FY 19/8 20/8 21/8 22/8 23/8E 22/8 23/8 Net Sales 16,777 17,061 17,552 17,737 18,200 7,813 7,927 Gross profit 7,694 7,650 7,875 7,726 7,450 3,416 3,322 Sales, general, and administrative expenses 2,901 2,868 2,849 2,874 3,02

  45. Slide 45: Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 18/8 19/8 20/8 21/8 22/8 22/8 23/8 Profitability ROE (%) 9.8 8.8 8.7 8.9 9.0 - - ROA (%) 12.8 11.5 11.3 11.6 11.0 - - Return on sales Net income (%) 21.4 20.5 20.4 20.8 21.3 - - ROE resolution Total Assets Turnover (Times) 0.4 0.4 0.4 0.4 0.4 -

  46. Slide 46: Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 18/8 19/8 20/8 21/8 22/8 228 23/8 Profitability ROE (%) 10.5 9.5 9.2 9.4 9.5 - - ROA (%) 13.6 12.4 12.0 12.3 11.6 - - Return on sales Net income (%) 21.1 20.5 20.0 20.4 21.0 - - ROE resolution Total AssetsTurnover (Times) 0.4 0.4 0.4 0.4 0.4

  47. Slide 47: Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 22/8 First-half 23/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,563 100.0 17,74

  48. Slide 48: Statements of Income (Non-Consolidated)

    10. Statements of Income (Non-Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 22/8 First-half 23/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,552 100.0

  49. Slide 49: Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 22/8 First-half 23/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 37,322 80.4 38,902

  50. Slide 50: Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 21/8 22/8 Change(the previous year) First-half 22/8 First-half 23/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Current assets 33,994 79.3 35,6

  51. Slide 51: The Forecasts/Results of Net Sales (Consolidated)

    13.The Forecasts/Results of Net Sales (Consolidated) (¥ million) (％) [Forecast] (¥ million) 20,000 50 FY 19/8 20/8 21/8 22/8 23/8E Full Year 17,600 17,400 17,300 17,700 18,200 First-half 7,463 7,482 7,655 7,719 8,022 Second-half 10,137 9,918 9,645 9,980 10,178 15,000 25 [Result] (¥ million) Full Yea

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