Friday, December 9, 2022
PIOLAX, INC.
(Code: 5988)
Yukihiko Shimazu, President
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Contents
I. Progress of Medium-Term Management Plan
‐ 1. Management Indicators‐ 2. Progress of Management Strategies
II. Current Status and Outlook of Medical Device Business・Seiichi Sato, President of Piolax Medical Devices, INC.

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Management Indicators - 1
Progress of medium-term management plan (FY22-FY24)(100 mil.
JPY)(100 mil. JPY)

800

551

Operating profit

Sales
627
605

683

720
100

9.3%

2021 result

2022

2023

2024

Revised disclosure on November 9, 2022

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25%
20%

13.9%

15%
10%
5%

(FY)

2023

2024

Net income

100

74
50

100

42

44

2021 result

2022

82

33

Revision

Customer production was lower than originally planned.
Although there was a foreign exchange gain, the increasein energy costs in addition to the conventional threemajor risks (semiconductor supply concerns, material
supply issues and price hikes, and soaring logistics costs)
had an impact.

(100 mil.
JPY)

Operatingprofit ratio

Revision

Revision
(FY)

13.2%

43

9.5%
0

2022

90

Revision
52 7.1% 58

1002021 result

Mid-term plan
Revised disclosure
Operating profit ratio
Revised operating profit ratio

0

(FY)

2023

2024

4

Management Indicators - 2: by Segment
Medium-term management plan for・Reason for downward revision: Decrease in automobile production.
・2nd half: Recovery expected due to recovery in customers’ production.
Further streamlining.
Operating profit

Sales(100 mil. JPY)

(100 mil. JPY)

800

506

636

583
562

671

100

2023

2024

(FY)
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57

45
8% 9%

10%
8%

2021 result

14%

42

Operatingprofit ratio

30%

97
15%

Prospect2022

88

ResultProspect002021 result

Mid-term plan
Prospect
Operating profit ratio
Operating profit ratio (Prospect)

15%

0%

2022

2023

2024

(FY)

5

Management Indicators - 2: by Segment
Medium-term management plan for・Compared to the plan, sales will slightly decrease but operating profit will
increase.
・Details are explained in the “current status and outlook of medical device
business.”
Sales

50

45

44

47

49

5

Prospect

2
5%

2022

2023

2024

(FY)
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20%

Mid-term plan
Prospect
Operating profit ratio
Operating profit ratio (Prospect)

4302021 result

Operating profit(100 mil. JPY)

(100 mil.
JPY)

Operatingprofit ratio

2%

2
3%

1 1

15%

3
6%

5%

2%

0
2021 result

10%

0%

2022

2023

2024

(FY)

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Progress of Management Strategy: Automotive - 1
Management strategy andMedium-term
priority issue
management plan
1. Product and customer
Accelerate response to CASE
strategy

Status in FY22
e-Products Development Dept.
dedicated to CASE set up in April

・Develop CASE parts and receive
orders・Diversify customers andproducts
・Maximize profit margin foreach product・Achieve global high quality

Non-Japanese OEM sales ratio in FY24:
16%

1st half of FY22: 14%

Improve per-car sales for new models
in FY24: +10% (from FY21)

As of 1st half of FY22: +30% for 7
major models

Improve quality by the new QA system

The new system launched in April

2. Business strategy

Develop new businesses other thanautomotive and medical device

MIRAI Business Dept. to discover thethird business pillar set up in April

3. Regional strategy

Expand sales in North America (U.S.
and Mexico) and China
Their sales ratio among overseas bases
in FY24: 35% each

FY22 prospect
N.A.: 37%. China: 35%

New strategy for Europe: Sales
expansion with German OEMs

Dusseldorf Representative Officeopened in February

Improve earning power of ASEAN and
India bases
Operating profit ratio in FY24: 15%

FY22 prospect: 9%

・Discover new businesses
・Expand sales in North America
and China
・Expand profitability in ASEAN
・Examine strategies forContinental Europe
・Strengthen regional
management functions

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Progress of Management Strategy: Automotive - 2
Management strategy andpriority issue
4. Growth investment
strategy
・Develop infrastructure in Japan
・Strengthen R&D investment
・Promote DX

5. Management capital
strategy

・Pursuit capital efficiency
・Return profits toshareholders
・Promote ESG management.

Medium-term
management plan

Status in FY22

New Moka Plant
FY23: Phase 1 construction completed,and operation started.
FY24: Phase 2 construction launched.

Full-scale construction started in
DecemberStrengthen investing in CASE/new
businesses
Ratio of R&D expenses to sales in
FY24: 1.5%

Acceleration of developing CASE
products
1st half of FY22: 1.4%

Dividend payout ratio: 100%

1st half of FY22: 100%

Promote ESG targets
・Promote measures toward carbon
neutrality
・Improve TCFD disclosure
・Promote diversity
・Enhance governance・Sustainability report issued in
November・TCFD-related activities started inoverseas bases
・Human Assets Policy established

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Acceleration of Developing CASE Products“e-Products Development Dept. dedicated to CASE set up (April 2022)【Efforts in FY22】Power supply
port actuator

Order wins progress, achieving the target of 1st
half of FY22. The full-year target is expected to beachieved.
Relations with new customers are being enhanced.
Production at the new Moka Plant will be planned.

(100 mil. JPY)

Bus bar

OthersSales expansion plan of
CASE products

Vibration Vibration
control
stopper

10 bil.
Accelerateorder taking

100

The target is
expected to beachieved

Sales expansion target
By product ratio

Reduction gear
accessories

Battery
In 2030CASE parts
10 billion JPY
E-AxelBattery

Gas vent tube

Powertrain partsADAS

3 bil.
Filter1 bil.
302021
result

2022

2023

2024

2025

・・・

2030

(FY)
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Sensor bracket

Camera cover

9Diversification of Customers and Products
Targets in FY24
■Ratio of sales with non-Japanese OEMs: 16%■Per-car sales for new model: +10% (from FY21)
Per-car sales increase for 7 major
new models of Japanese OEMs
(In Japan, as of 1st half of FY22)

Sales and the ratio by OEM(100 bil. JPY)

Growth rate

300

Model A

+53%

250

Model B

+14%200

Model C

-16%

150

Model D

+17%

100

Model E

+25%

50

Model F+80%0Model G

+37%

Average+30%

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255

253

14%

14%

46%

47%

40%

39%

1H, FY21

1H, FY22

Non-JPN OEMs
Other JPN OEMs
Nissan(FY)

10Capital Investment and Depreciation
Capital investment for future leap forward
mainly in domestic infrastructure development
Capital investment and depreciation【FY22】
・Full-scale start of constructing
new Moka Plant
・Introduction of automated/labor-saving equipment

Total 23.5 bil. JPY(100 mil. JPY)

Capital investment Depreciation【FY23 and after】
・Operation of new Moka Plant
・Renewal plan of Yokohama area
・Introduction of eco-friendly
equipment
・Increase in construction cost of
new Moka plant due to additional
equipment and rising material
prices, etc.

Mid-term plan

Total investment to build new
Moka Plant (3 years)
7.4 → 8.3 bil. JPY

Depreciation(Nonconsolidated)

90
70

Domestic
infrastracture

50
30

Capitalinvestment(Consolidated)

10
(10)

Capitalinvestment(Nonconsolidated)

(30)
(50)

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Depreciation(Consolidated)

2021

2022

2022

plan

forecast
(FY)

2023

2024

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Initiatives in Overseas Sites
Targets in FY24
■Sales expansion with local OEMs in North America (U.S. and Mexico) and China
Sales ratio among overseas bases: 35% each for North America and China■Improve earning power of ASEAN and India bases
Operating profit ratio 15%
Sales ratio of overseas bases
100%

4%

5%

5%

24%

23%

23%

100%

Operating profit ratioof overseas bases
24%

1%

3%

25%

25%
Europe

36%

35%

33%

55%

48%

40%

Asia
China
N.A.

35%

37%

39%

2021

2022
(Forecast)

2024 (Plan)

22%

0%

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-10%

26%

32%

2022
(Forecast)

2024 (Plan)

-2%
2021

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Strategies for Continental Europe
German Representative Office
Open: February 2022
Place: Dusseldorf, Germany
Role:

Information gathering and market research inEuropeThe Representative Office is established as afoothold for Continental Europe strategies.
Aim to win orders for CASE and EV-related
products as well as automotive interior parts,
which are our main products.

October 2022: exhibited for the first time at
the IZB (auto parts trade show) in Germany

Promote sales with European OEMs, especially
German OEMs.
Study reallocation of production system in Europe.
Exhibit: battery-related parts
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Infrastructure Development in Japan - 1
Infrastructure development for future growth
1. New Moka Plant construction project
Construction of phases 1 and 2
Start of construction: December 2022
Full-scale operation: FY23 planned
Investment (FY22-FY24):
7.4 → 8.3 bil. JPY.
Increase due to additional equipment
and material price hikes<Next-generation plant> Global Mother Plant
Introduction of next-generation equipment
and molding lines
Automated lines through AI and IOT
technologies
Efficient production through DX
Target: 200% increase in productivity in FY30
Initiatives for carbon neutrality

Future schedule
FY24: Start of phase 2 construction
FY26: Start of operation (2nd stage)
FY30: Start of operation (3rd stage)
Ground-breaking ceremonyon Nov. 24, 2022

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Infrastructure Development in Japan - 2
2. Yokohama area renewal projectRe-plan infrastructure development for
the entire Yokohama area (Head Officeand Yokohama Technical Center).
Due to the aging of the building, the Head
Office was relocated in March 2022, andthe demolition of the building has started
since October 2022.
In light of the status of work style reform,
the company will actively utilize
telecommuting and free address system,
and aim to improve productivity inindirect divisions through infrastructuredevelopment.

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Demolition of former Head Office building(Iwai-cho, Yokohama)

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Capital Policy
Dividend

Review in May 2022

Previous
forecast

Capital policy for FY22-FY24
Curtail the buildup of equity capital.
100% dividend payout ratio

End of 2ndquarter

60.00 yen

43.00 yen

Agile share repurchase/retirement

Term end

67.00 yen

54.00 yen

Full year

127.00 yen

97.00 yen

Dividend and dividend payout ratio

ROE trend
Final target: 10% or more
10%

Dividend
Dividend (Revised disclosure)
Dividend payout ratio (Right axis)(JPY)

8% or more
5.8%

0%

Reviseddisclosure in Nov.

4.3% 4.5%
Revised disclosure
3.4%

2018 2019 2020 2021 2022 2023 2024

150

22%
45

31%
45

31%
35

34%
45

100% payout
100%

127

50%

96

0

0%
2018

2019

2020

2021

2022

2023

2024

Note) Dividends have been adjusted to the value after the stock split(3-for-1 split of common stock) with April 1, 2017 as the effective date.

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Promotion of ESG Management - 1
Corporate activities aiming for carbon-free and recycling-oriented society（Piolax ESG Vision 2030）
Initiatives for climate change
March 2022
・Endorse TCFD Recommendations.
・Disclose information on TCFD.
・Disclose roadmap to carbon neutrality.
FY2022・Enhance disclosure of information on
TCFD (including overseas bases).
・Promote concrete measures toward
carbon neutrality.

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Initiatives for renewable energy
・Promote solar panels in Japan andabroad.
・Add solar panels in the U.K. in FY22.
・Introduce renewable energy at the new
Moka Plant.
U.K.

Thailand17

Promotion of ESG Management - 2
Creating a safe and vibrant workplace(Piolax ESG Vision 2030）
Enhance human assets development
FY22
・Establish Human Assets Policy.
・Expand education system.
↓
Develop human assets contributing to
the development of the company.

Initiatives for diversity
FY21 result

FY22 target

Rate of female
managers

3.5%

4% min.

Rate of female newgraduate hires

27.2%

30% min.

Rate of employeeswith disabilities

2.24%

2.3% min.

Initiatives for health management
Introduce a monthly quick stress checkin FY22 for mental health.

First time certified as Excellent Health Management
Corporation 2022 (Large Corporate Division)

Monitor mental and physical health andjob satisfaction (work engagement).
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Friday, December 9, 2022
PIOLAX MEDICAL DEVICES, INC.
Seiichi Sato, President

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Summary• FY22 1H Results and Full-Year Forecasts• Our expertise• Business topics• New measures responding to COVID-19• Progress of medium-term plan (FY22-FY24)

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FY22 1H Results and Full-Year Forecasts(Unit: 1 mil. JPY)

(Unit: 1 mil. JPY)

1H
1H
Achieve- Previous
Growthbudget result
ment year result
Sales
2,134 2,150
101%
2,292
-6%
Operating profit
-37
100
267%
201
-50%

FY22
FY22
Achievement
budget forecast
4,356
4,323
99%
70
105
150%

* The impact of the revised insurance reimbursement price is -50 million yen/year compared to last year's sales.

Analysis of operating profit (against the previous year)
Inventory

▲13

SGA

11

Fixed
manufacturing
cost

Streamlining

Marginal profit

1(Unit: 1 mil. JPY)

▲11

▲89

201
(8%)

FY2021
2Q

100

Operating profit: 101 mil. yen reduced
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FY20222Q

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Our Expertise: Therapeutic Guidewires☆ Plan and develop guidewires (GW) for various types of minimally invasive treatments✔ Have excellent processing know-how of Ni-Ti alloy used for the core of guidewires.
✔ Have surface treatment technologies such as "hydrophilic coating" and "fluoroplastic
coating.

PMD
35%

Company B
18%
Company A
55%

Urologic endoscopy
GW: 35%Company A
43%
PMD
34%

Digestive endoscopy
GW: 34%PMD
10%Company B
14 %Company A
69%

Intravascular(abdominal) GW: 10%* PMD = PIOLAX MEDICAL DEVICES, INC.
* Ref.: In-house estimates based on Yano Research Institute's FY2021 edition and R&D's Biliary and Pancreatic
Medical Yearbook FY2020 forecast data.
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Business Topics (FY22)
Product line

Negative aspect

Positive aspect

Intravasculartreatment devices

Decreased number of patients undergoingcatheterization for liver cancer, partly due
to the impact of new drugs.
Voluntary recall of certain products due tomislabeling.

Increased use of micro coils for vascularembolization in terms of cost and usability.

Digestiveendoscopy
treatment devices

Decrease in sales of mainstay guidewires
due to production cutbacks caused by parts
supply shortage affected by COVID-19.

Bile duct biopsy support catheter"EndoSheather" (unique product) sells well

Neurosurgicalcranial devices

Decrease in sales due to lower number ofsurgeries affected by COVID-19.

OEM (Japan) andexportIncrease in sales due to special demand fromsupply concerns affected by COVID-19.
Sales increase due to the approval of livercancer catheter treatment devices in China
Overseas11%《 Sales composition
forecast for FY22》

OEM 26%All Rights Reserved, Copyright © PIOLAX, INC.

Intravascular
29%

Digestive
18%
Neuro
4%

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New Measures Responding to COVID-19《Impact of COVID-19》■ Prolonged product shortages and delays in new product launches due to unstable parts procurement.
■ Regulation of visits to medical facilities, decrease in the number of outpatients, and extended surgeries.
■ Reduced opportunities for business meetings with physicians due to web-based academic and research
conferences.
《New measures》■Establish customer relationship management (CRM) and sales force automation (SFA) systems throughSalesforce. Implement multifaceted marketing and sales strategies and activities through marketing
automation (MA).
■ Strategically strengthen OEM sales to accelerate sales promotion speed.
《Progress of candidate new products》
Area
Product
IntravascularEndoscopy
Neurosurgical
Total

Market launch

Delay

Emulsion Connector (for export)

Jun. 2022

Jan. 2023

4 parts including micro catheter
EndoSelector2 guide wire (OEM)
Dual Master HR025 guide wire
Seek Master 025 guide wire
Titanium plate (Skull)

FY24
Sep. 2022
Aug. 2022
Apr. 2023
Jan. 2023

No
Mar. 2023
May 2023
NoNo

9 items
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Medium-Term Plan (2022-2024)
1. Introduce differentiated products to specific markets (Differentiation strategies for
specific markets)
2. Speed up the launch of new products and strengthen new product lineups
3. Strengthen overseas expansion (complying with regulations in each country)
4. Strengthen domestic sales network
5. Digital shift responding to the COIVD-19(Sales)(Operating profit)（Unit: 100 mil. JPY）

60

4

Year when reimbursement
price is reviewed

50

43
40

2.7
30

45

43

47

49
3

3.0

2.8

2

25

20

1.6
1

1.1

10

0

0
2010

2011

2012

2013

2014

2015

売上
Sales

2016

2017

2018

2019

2020

営業利益
Operating profit

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2021

2022

2023

2024

Medium-term plan25

VisionWe will standardize procedures andprovide patient-friendly medical devices
to solve medical issues.
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PIOLAX MEDICAL DEVICES, INC.
Mission“Smiles for patients around the world”

Thank you for your attention

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Notes on Handling This Document
The forward-looking statements contained in this document are
based on information available to us at the time of publication.
Please note that such statements are future projections at thistime and contain risks and uncertainties and that actual results
may significantly differ from the projections.

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