Financial Results Overview
for Second Quarter
Ended March 31, 2017
May 24, 2017
EPS Holdings, Inc.

Copyright © 2017 EPS Holdings All rights reserved.

Disclaimer

The earnings forecasts and future predictions described in this document are made by
our company based on the available information at the time of the creation of thedocument, and contain potential risks and uncertainties. Therefore, due to various factors
such as change in business environment, it is possible that actual earnings results may
differ greatly from the future outlook mentioned or described herein.
We have approached the creation of this document with caution, to ensure correctness.
However, it is not a guarantee of completeness. Our company cannot be held liable forany problems or damages arising as a result of the information in this document. We
appreciate your understanding.

■For inquiries about this document
EPS Holdings, Inc.
e-mail ：ir@eps.co.jp

Copyright © 2017 EPS Holdings All rights reserved.

2

Business Areas& Management Structure

Copyright © 2017 EPS Holdings All rights reserved.

3

FY2017 : Business Areas

DomesticBusinessCROEPS, EPS Associate, EPMate, e-TrialSMOEPSOGO, Sogo Rinsho MédéfiCSO

EP-PharmaLine

CPO

EP-CRSU※, EPI(Suzhou), EPI Yamanashi（※From April 1,2017）

Overseas
Business

GlobalResearchEPS International Holdings etc.

EKISHINEPS EKISHIN, EPS(China) etc.

OthersEPBiz

Copyright © 2017 EPS Holdings All rights reserved.

※as of April 1,2017

4

FY2017 : Management Structure
Business Management
EPS Holdings
Chairman & CEO: Yan
President: Tashiro
Executive Vice President: Tanaka

Business Segment

CRO

SMO

CSO

CPO

GlobalResearchTashiro

NishizukaYamada

Feldman

EKISHINYan(Segment CEO)TanakaCopyright © 2017 EPS Holdings All rights reserved.

5

FY2017 : Management StructureGroup ManagementRisk ManagementCommittee

Board ofDirectors

Board ofAudit

Yan (CEO)Internal
Audit Office

Tashiro(CRO)Business
Strategy
Department

HumanResources
Strategy
Department

Accounting& Finance
Department

Administration
Department

Corporate
Communication
Department

Tanaka(CBO)

Tashiro(CHO)

Koyama(CFO)

Orihashi(CAO)

Takaya(CCO)

Copyright © 2017 EPS Holdings All rights reserved.

6

FY2017/2Q
Financial Results Overview

Copyright © 2017 EPS Holdings All rights reserved.

7

FY2017/2Q: Financial Results of Consolidated（ UNIT:JPY MILLION ）FY2016/2Q
Results

FY2017/2Q
Results

ChangeYoY

YoY

Net Sales

25,65030,397

4,747

18.5%

Operating
Income3,794

4,636（Ratio）(14.8%)(15.3%)

842

22.2%

Recurring
Profit3,937

4,774（Ratio）(15.3%)(15.7%)

837

21.3%

Net Income

2,524

2,555（Ratio）(9.8%)(8.4%)

31

1.2%

Earnings
Per share￥61.06￥55.44ーー

Copyright © 2017 EPS Holdings All rights reserved.

8FY2017/2Q: Financial Results by Business Segment（Ratio）

FY2016/2Q
ResultsCRO
Domestic

SMO
CSO
CPO

Overseas

GR
EKI
SHIN

HD OthersTotal

Net Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
Income13,443
3,631
5,004419
3,539124718
△ 18
2,098
219
1,869
△ 74
△ 1,021△ 507
25,6503,794

Copyright © 2017 EPS Holdings All rights reserved.

（Ratio）

FY2017/2Q
Results

27.0%
8.4%
3.5%
10.4%
14.8%

13,898
3,508
7,090
1,012
4,155
260
1,286
277
2,384
△ 152
3,165183△ 1,581△ 452
30,397
4,636

25.2%
14.3%
6.3%
21.5%
5.8%
15.3%

（ UNIT:JPY MILLION ）ChangeYoY455△ 1232,086593616136568295286△ 3711,296257△ 560
554,747842

YoY
3.4%
△3.4%
41.7%
141.5%
17.4%
109.7%
79.1%
13.6%
69.3%
18.5%
22.2%

9

Forecasts of Consolidated Resultsfor FY2017

Copyright © 2017 EPS Holdings All rights reserved.

10

FY2017 : Consolidated Forecasts for Full Year
（ UNIT:JPY MILLION ）FY2016/9
Results

FY2017/9
Forecast

ChangeYoY

YoYNet Sales

52,70358,000

5,297

10.1%

Operating
Income6,224

6,500(11.8%)(11.2%)

4.4%（Ratio）

276

Recurring
Profit6,589

6,500(12.5%)(11.2%)△1.4%（Ratio）△89Net Income

3,966

3,500(7.5%)(6.0%)△11.7%（Ratio）△466

Copyright © 2017 EPS Holdings All rights reserved.

11FY2017 : Forecasts for Full Yearby Business Segment（Ratio）

FY2016/9
Results

CRO
Domestic

SMO
CSO
CPO

Overseas

GR
EKI
SHIN

HD Others

Total

Net Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
Income26,895
6,099
10,961610
7,509426
1,552△ 1204,060
183
3,957
△ 31
△ 2,231△ 943
52,703
6,224

Copyright © 2017 EPS Holdings All rights reserved.

（Ratio）

FY2017/9Forecast
22.7%
5.6%
5.7%
4.5%
11.8%

27,162
5,773
13,390
1,212
8,000
450
2,250
216
5,100
△ 150
6,150280△ 4,052△ 1,28158,000
6,500

21.3%
9.1%
5.6%
9.6%
4.6%
11.2%

（ UNIT:JPY MILLION ）ChangeYoY267△ 326
2,429602491
24698
336
1,040
△ 333
2,193311△ 1,821△ 338
5,297276

YoY
1.0%
△5.3％
22.2%
98.7%
6.5%
5.6%
45.0%
25.6%
55.4%
10.1%
4.4%

12Dividend Per ShareTerm End
期末配当
Dividend

Mid-term
中間配当
Dividend

Payout
配当性向Ratio¥5040%①Celebrate Dividend②Special Dividend¥4030%¥30¥20¥1017.5

189.51088181081825（Provision）

1512②
¥5108

2220%

10%
①
¥2

10

100%

¥0

2012/92013/92014/92015/92016/92017/9※The dividend conditions shown in the above graph reﬂects retroactive revised data that takes into considering
the effect of stock splits.
Copyright © 2017 EPS Holdings All rights reserved.

13

Business Introductionof EPS group

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14

Drug & Medical Device Developmentof EPS group (Domestic Business)
Time to Placing on the Market : 9〜17 years

Basic
NonclinicalResearchStudy

2-3years

3-5years※placing on the market

Clinical
Trial

Application
For
Approval

3-7years

1-2years

Post-Marketing
Surveillance※

4-10years

CRO Business
SMO Business

SMO Business

CSO Business▼ Support for
Pharmaceutical & Medical Device Companies

CRO Business
Copyright © 2017 EPS Holdings All rights reserved.

CSO Business▼ Support for Medical Institution

SMO Business

15

CRO Business

CRO Leading Companywith strengths on Oncology & Brain/Neurology
Market & Share

Expert Staff

EPS Group(Clinical Research Associate)¥169Billion※From companyʼs 2015 report of MIC ResearchInstitute Ltd., Yano Research Institute Ltd., andJapan CRO associationʼs 2015 presentation materials.

Copyright © 2017 EPS Holdings All rights reserved.

Advantage
 “Full Service System” which can be
entrusted with all duties from
Clinical Trial to PMS.
 Many achievements of Oncology &Brain/Neurology.
 Active introduction of IT solution ofimaging, etc.

16

SMO Businessa Firm No.1 SMO Company
Market & Share

Expert Staff

EPS Group(Clinical Research Coordinator)¥32
Billion

Advantage
 Overwhelming No.1 market company
with more than 30% share.
 Partnering with the industry's largest
number of 5600 medical institutions.

※From companyʼs 2015 report of MIC ResearchInstitute Ltd., Yano Research Institute Ltd., andJapan SMO associationʼs 2015 presentation materials.

Copyright © 2017 EPS Holdings All rights reserved.

 Over 1,000 CRCs.

17

CSO Business

CSO Leading Company with Originality
Market & ShareEPS Group

Expert Staff(Contract Medical Representative)

Pharmacists¥68
Billion※From companyʼs 2015 report of MIC ResearchInstitute Ltd., Yano Research Institute Ltd., andJapan CSO associationʼs 2015 presentation materials.

Copyright © 2017 EPS Holdings All rights reserved.

Advantage
 Scale of No.1 in the industry Medical
Contact Center of DI (Drug Information)
service.
 24 hours, 365 days, by Pharmacists &Clinical Nurse.
 No.1 in the Industry of Medical Device
CS (Contract Sales) Human Resourse
supply.

18

EKISHIN (China) Business

Full-Scale Operation of Pharmaceutical Business in China
About “Shanghai Hua Xin High Biotechnology Co., Ltd”
 In October 2016, Shanghai Hua Xin High Biotechnology Co., Ltd (hereafter“Shanghai Hua Xin”), a pharmaceutical manufacturer in China, entred into ourgroup.
 That added Pharmaceutical manufacturing and wholesaling sector to EKISHIN(China) Business, expanding its value chain.
 Major product “Recombinant Human Interferon α2b Vaginal Effervescent
Capsules” of Shanghai Hua Xin, is used in more than 6,500 medical institutionsin China. And this interferon occupies over 50%※1 share in BiologicalPharmaceutical Market in treatment of HPV※2.
※1：Reference：IMS, 2015Q4-2016Q3※2：HPV：Human papillomavirus“Recombinant Human Interferon α2bVaginal Effervescent Capsules”

Copyright © 2017 EPS Holdings All rights reserved.

19

Global Research BusinessBusiness Results

Oncology :13.2%
Endocrine/Metabolic:8.3%

Others:49.0%
By
Therapeutic
Areas

Infections :6.1%
Cardiovascular:5.6%
Ophthalmology :5.4%
Brain/Neurology :5.2%

Urology:3.6%

Hematology:3.6%
Pharmacovigilance:12%

Monitoring:44%

Medical Writing :12%
Statistical Analysis:16%

By
Services

Data Management : 19%※as of March, 2017
Copyright © 2017 EPS Holdings All rights reserved.

20

Global Research Business

Net Sales & Operating Income＜Net Sales＞（¥ million）（¥ million）＜Operating Income＞

5,000219

250
4,000

10%

150
3,000

2,098
2,000

2,384

1,000

10%

50-50

1,197

20%

-6%

-12%

-10%

-150

0-250
2015/2Q

2016/2Q

2017/2Q

0%△ 152△ 149
2015/2Q

2016/2Q-20%

2017/2Q
営業利益
Operating
Income

営業利益率
Operating
Income Ratio Net Sales have been steady due to an increase in contracted business of Asian study
including Japan.
 However the prospect is in the red. For current term due to costs increasing mainly of thehuman resource securing etc.
Copyright © 2017 EPS Holdings All rights reserved.

21Positioning of This Term (27th)
in a New Mid-Term Business Plan
（ UNIT:JPY 100 MILLION ）26 Term
Results

27 TermFirst half Second half
Results
Forecast

Full year
forecast

29 Term
Forecast

31 Term
Forecast

Net Sales

527

304

276

580

750

1,000

Operating
Income

62

46

1965

90

125（％）

11.8%

15.3%

6.8％

11.2%

12.0%

12.5%

number ofemployees

4,890-Overseas
ratio

15.1％

17.6%

CAGR

8,000
21.3％

19.1%

25.3%

18.5%

30.0%
13.7%

This Term is First Term ina New Mid-Term Business Plan
Copyright © 2017 EPS Holdings All rights reserved.

22In Formulate of a New Mid-Term Business Plan
Our Mission
We will contribute to advancement of the healthcare industry byproviding high-value-added solutions to our clients.

Our Vision
If we improve each day, we can progress ourselves daily,
and will continue to do so.
（苟⽇新、⽇々新、⼜⽇新）Ever Progressing System
Our Values①For the Clients, ②For the Business, ③For the People
Copyright © 2017 EPS Holdings All rights reserved.

23

Policy of New Mid-Term Business Plan
１． Establishing a Firm Position as a Provider of Solutions in theHealthcare Industry

we will aim to promote growth of our customer base to the healthcare industry
at large, including the medical equipment industry, hospitals, and more, inconjunction with growing our existing businesses as well as improving andenhancing the quality of a variety of services.

（１） Providing solutions intended to enhance customer value.
① Integrating an assortment of services based on the business needs ofclients and offering solutions that match those needs.
② Improving the quality of services and developing new services that areboth aligned with and anticipatory of the front-line needs of clients.

（２） Working toward and establishing business models thatenable sustainable growth.
① Refining existing business models by means such as restructuring intragroup operations.
② Creating new business models by means such as partnerships with outsideparties.
Copyright © 2017 EPS Holdings All rights reserved.

24

Policy of New Mid-Term Business Plan
２．Securing the Scale
In view of expected intensification in competition with global leaders in theindustry moving forward, the EPS Group will promote further bolstering of its basein the domestic market as well as strengthening a framework to enhance its ratio ofbusiness overseas, which still remains at 15%.

（１）Securing the top position in the domestic market.
① Securing the top position in the sector related to clinical trials (contract
research organization, “CRO,” and site management organization, “SMO”).
② Further growth in our contract sales organization (“CSO”) business andcreation of new ventures geared toward new client bases such as hospitals.

（２）Enhancing expansion overseas.
① Strengthening foundations in the Asia-Pacific market.
② Establishing a presence in American and European markets.

Copyright © 2017 EPS Holdings All rights reserved.

25

Policy of New Mid-Term Business Plan３．Strengthening and Establishing a Structure of Management
We will deliver synergistic effects between each respective business segment andaspire to the sound, sustainable advancement of the organization.

（１）Strengthening and establishing the basic structure of themanagement structure.
① Enriching the independent and autonomous management of each
respective business segment.
② Promoting group management.

（２）Promoting a management system that enables sustainablegrowth.
① Further development of the basic structure of the management systemfrom above.
② Training and producing management personnel that will lead the nextgeneration.

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26

Thank you<Contact> E-Mail； ir@eps.co.jp

Copyright © 2017 EPS Holdings All rights reserved.