Nagaileben Co., Ltd. · TSE:7447

Nagaileben — FY2023 Earnings Presentation

51 slides from Nagaileben's earnings presentation, October 2023

  1. Slide 1: Analyst Guide

    Our Message to Medical Workers We sincerely would like to express deep ANALYST GUIDE appreciation for your devoted works on the frontiers against COVID-19. We will never forget your courage. October 2023 <Contact for information on this material: Mr. Yamamura, Administration Headquarters (+81-3-5289

  2. Slide 2: Summary

    Summary 1 Results of FY2023 (Billion yen) Projection Actual % Change Net Sales ¥18.2 ¥17.1 -5.6% Operating income ¥4.5 ¥4.6 +0.7% 2 Share Repurchase Repurchase period: From June 30, 2023 to December 11, 2023 Total number of repurchasable shares: 500,000 shares(maximum) Total amount of repurchase: ¥1

  3. Slide 3: Agenda Index

    Agenda Index Ⅰ About “NAGAILEBEN” ・・・ ・・ 3 p Ⅱ Business Environment ・・ ・・・ 9 p and Strategy Ⅲ Financial Review of FY2023 ・・16 p and Forecast for FY2024 Ⅳ Overview and Measures ・ ・・・21 p Ⅴ Management Goals ・・・・・・ 26 p VI Rewarding Shareholder- Focused Policies ・・・ 30 p 2 © Nagaileben Co.,Ltd.

  4. Slide 4: I About Nagaileben

    Ⅰ About “NAGAILEBEN” 3 © Nagaileben Co.,Ltd.

  5. Slide 5: Outline

    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

    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: 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 Donation of Infection Products to Holding a 'Para Art Exhibition' Healthcare Facilities We are hosting a 'Para Art Exhibition' at our We made a donation of 10,000 reusable Itona Gallery, featuring artworks created by isolation gowns as

  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: II Market Environment

    II Market Environment 9 © Nagaileben Co.,Ltd.

  11. Slide 11: Market environment topics

    Topics The market environment was influenced by inflation - The reclassification of COVID-19 under the Infectious Diseases Control Act into category 5 has led to a resolution of the confusion. - The increased costs due to inflation were putting financial pressure on healthcare and caregiving institu

  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 Reimbursements: Expected to Include 'Medical DX,' 'Physician Workstyle Reform,' and 'Enhancement and Promotion of Comprehensive Regional Care Systems.' Care Re

  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 202 200 150 245 100 173 188 188 50 0 2019 2025 2020 2025 Source: Japanese Nursing Associations’ statistical data Actual record: Research of Long-Term Care S

  14. Slide 14: Escalation and Prolonged Impact of Inflation

    Environment Urgent Issue Escalation and Prolonged Impact of Inflation Market Environment Production Environment ‐ Soaring energy prices and general inflation ‐ Surging raw material prices ‐ Difficulty in implementing wage increases ‐ Increases in domestic logistics under the current compensation sys

  15. Slide 15: 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

  16. Slide 16: 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

  17. Slide 17: III Financial Review of FY2023 and Forecast for FY2024

    Ⅲ Financial Review of FY2023 and Forecast for FY2024 16 © Nagaileben Co.,Ltd.

  18. Slide 18: Financial Review of FY2023 and Forecast for FY2024

    Consolidated Results Financial Review of FY2023 and Forecast for FY2024 FY2023 FY2024 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,181 -5.6 -3.2 17,800 +3.6 Gross profit 7,547 -0.9 -4.2 7,723 +2.3 Sales, general, and administrative expenses 2,942 -3.3 +3.2 3,

  19. Slide 19: Financial Review of FY2023 and Forecast for FY2024

    Consolidated Results Financial Review of FY2023 and Forecast for FY2024 FY2023 FY2024 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,181 -5.6 -3.2 17,800 +3.6 Gross profit 7,547 -0.9 -4.2 7,723 +2.3 Sales, general, and administrative expenses 2,942 -3.3 +3.2 3,

  20. Slide 20: Financial Review of FY2023 and Forecast for FY2024

    Consolidated Results Financial Review of FY2023 and Forecast for FY2024 FY2023 FY2024 (millions of yen,%) (Results) To Forecast % % Change (Forecast) % Change Net sales 17,181 -5.6 -3.2 17,800 +3.6 Gross profit 7,547 -0.9 -4.2 7,723 +2.3 Sales, general, and administrative expenses 2,942 -3.3 +3.2 3,

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

    Consolidated Results Financial Review of FY2023 (Balance Sheet) Major assets (¥ million %) Title Result Change Result Change% [Major changes from the previous fiscal year] Cash on hand at banks 27,159 -1,401 -4.9 Notes and accounts receivable (including electronically recorded claims) 4,979 -259 -5.

  22. Slide 22: IV 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 FY2023 FY2024 (FY2023) (%) Full Fulll(E) Total sales -3.2 +3.6 Utility/Others Doctors' 14.6% Core Market -4.5 +2.5 3.0% Healthcare wear -3.1 +2.6 Patient Doctors' wear -5.2 +3.3 17.1% Utility / Others -21.4 -2.9 Peripheral Market +0.5 +6.4 Patient

  25. Slide 25: Overview and Measures Product

    Overview and Measures Product y/y change FY2023 FY2024E (%) Sales by Product Total sales -3.2 +3.6 High-End (¥ million) products +9.4 +11.6 18,000 High Value-Added 16,000 MHLW products -3.5 +3.9 14,000 Value-Added 12,000 High-End products -5.3 +1.7 10,000 High Value- Mass products -4.5 -2.7 Added 8,

  26. Slide 26: 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

  27. Slide 27: V Management Goals

    V Management Goals 26 © Nagaileben Co.,Ltd.

  28. Slide 28: 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

  29. Slide 29: Business Direction

    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%

  30. Slide 30: 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

  31. Slide 31: VI 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 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

  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

    Data File 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: 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 22/8 23/8 18,000 Sales 17,066 17,563 17,745 17,181 17,800 7,817 7,931 Core Market 13,115 13,207 13,021 12,438 12,750 5,591 5,674 16,000 Peripheral Market 3,749 4,152 4,486 4,509 4,800 2,101 2,161 Overseas M

  40. Slide 40: 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 22/8 23/8 18,000 Sales 17,066 17,563 17,745 17,181 17,800 7,817 7,931 Healthcare wear 8,831 9,560 9,698 9,395 9,640 4,186 4,318 16,000 Doctors' wear 2,451 2,600 2,655 2,517 2,600 1,114 1,118 14,000 Utility/Ot

  41. Slide 41: 3. Sales by Product

    3. Sales by Product (¥ million) (¥ million) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 22/8 23/8 18,500 Sales 17,066 17,563 17,745 17,181 17,800 7,817 7,931 High-End products 1,072 1,218 1,269 1,389 1,550 543 590 16,500 High Value-Added products 8,692 9,302 10,269 9,908 10,300 4,528 4,535 14

  42. Slide 42: 4. Production Strategy (Non-Consolidated)

    4. Production Strategy(Non-Consolidated) (¥ million) (¥ million) (％) First-half First-half FY 20/8 21/8 22/8 23/8 24/8E 12,500 60 22/8 23/8 Domestic production 4,743 4,581 4,974 4,933 4,825 2,555 2,535 Overseas production 4,775 4,824 5,456 5,680 5,844 2,566 2,769 10,000 55 Purchased products 128 110

  43. Slide 43: 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 22/8 23/8 Net Sales 17,066 17,563 17,745 17,181 17,800 7,817 7,931 Gross profit 7,810 8,058 7,881 7,547 7,723 3,491 3,404 Sales, general, and administrative expenses 2,872 2,846 2,850 2,942 3,107 1,

  44. Slide 44: 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 22/8 23/8 Net Sales 17,061 17,552 17,737 17,177 17,800 7,813 7,927 Gross profit 7,650 7,875 7,726 7,390 7,518 3,416 3,322 Sales, general, and administrative expenses 2,868 2,849 2,874 2,945 3,08

  45. Slide 45: 7. Indices (Consolidated)

    7. Indices (Consolidated) First-half First-half (Unit) 19/8 20/8 21/8 22/8 23/8 22/8 23/8 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 - -

  46. Slide 46: 8. Indices (Non-Consolidated)

    8. Indices (Non-Consolidated) First-half First-half (Unit) 19/8 20/8 21/8 22/8 23/8 228 23/8 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

  47. Slide 47: 9. Statements of Income (Consolidated)

    9. Statements of Income (Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 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 17,745 100.0 17,18

  48. Slide 48: 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 22/8 First-half 23/8 Change(the previous year) Result Composition Result Composition Result Change % Result Composition Result Composition Result Change % Net Sales 17,737 100.0

  49. Slide 49: 11. Balance Sheet (Consolidated)

    11. Balance Sheet (Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 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 38,902 82.2 38,995

  50. Slide 50: 12. Balance Sheet (Non-Consolidated)

    12. Balance Sheet(Non-Consolidated) (¥ million,%) (¥ million,%) FY 22/8 23/8 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 35,612 81.2 35,5

  51. Slide 51: 13. 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 23/8 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 Year

Nagaileben — FY2023 Earnings Presentation on 6ix