ANALYST GUIDEFY2017
October 2017

(Listed on the 1st Section of the Tokyo Stock Exchange; Code 7447)<Contact for information on this material: Mr. Tokue, Administration Headquarters (+81-3-5289-8200)>

Overview FY2017

1 Sales & Income-Net Sales and Operating Income recorded highest.
Sales: ¥17,017 m
Operating income: ¥5,242 m

2 The Change of Business Environment- Market Condition
The impact of Medical treatment fees revision was negligible.
- Production Condition:(In Japan) The sewing costs increased.
(Overseas) The cost of production increased
due to appreciation of the dollar against the yen.

3 Unusual Event in this term
- Exchange-rate profit:

FY2015 ¥226m
FY2016 -¥70m
FY2017 ¥44m

4 DPS will be increased- DPS 50Yen  60Yen

Copyrights Nagaileben Co.,Ltd. All rights reserved.

1

Ⅰ About “NAGAILEBEN”

2Outline
100th year in business
Establish competitive position in medical clothing market

1-Approximately 60% market sharein domestic medical clothing-Wide field, planning, manufacturing andmarketing- The number of shipments is over 6
million clothing a year.

-Competitive product such as extensive products,
custom-made program

2

Strong growing market
・The number of Nursing Staff andCare workers is increasing gently.

Doctor, Dentist,
Pharmacist*1(2020)¥17.0B(2017)

17,000¥15.6B

Care workers*3(2015)(2013)

700,000
People1,630,000
people1,710,000
peoplecompare with 2012

compare with 2014

compare with 2012

+17,000people+31,000people+80,000people

13,000*1 Research of doctor, dentist and pharmacist.2014, MHLW
*2 Japanese Nursing Associations’ statistical data
*3 MHLW, document ” estimation of care workers' demand toward 2025”

12,000

Copyrights Nagaileben Co.,Ltd. All rights reserved.

Change of Sales

18,000Nursing Staff*2(2014)

E¥18.5B(million Yen)
19,000(2013)

16,000¥14.0B
15,000(2010)

14,000

10

11

12

13

14

15

16

17

18予
18E 19予
19E 20予
20E

3Outline

3

Highly profitability
Strong balance sheet- Realization of high profitability
with radical pursuit of efficiency

50
45
40

-Gross profit to sales 47.5% (as of FY2017)35-Capital-to-asset ratio 89.2%

30-ROE 10.3%

4(%)

Change of Gross Profit to Sales

47.5%(2017)

33.1%
45.3%

(1990)

28.6%(2010)(1980)

39.7%(2000)

25
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

Rewarding shareholder-focused policies-BPS 1,099.2Yen (as of FY2017)
BPS(Left)
EPS(Right)-EPS 110.5Yen
1,200

（Yen）

（Yen）

1,100

-Continue stable dividend payment
with payout ratio of 50%

100

1,000
75

- DPS 50Yen  60Yen

900-Acquisition of treasury stock800

5 Social Responsibility

125

50

700

25
2007

2009

2011

2013

2015

2017

We think that well-balanced growth with human, profit and philanthropy become the responsible corporate, on the basisof our company spirit “Nagaism”.

Copyrights Nagaileben Co.,Ltd. All rights reserved.

4

CSR/ESG
Support for Women

Regional Contribution

Women principal domains: Medical and Sewing Medical Kids Project
Products of Nagaileben are mainly for
women, who work as a nursing staff
or a care worker. At production sites ofNagaileben, many women staff has
been engaged in sewing. Activities ofNagaileben are linked to support for
women.
Regional Contribution

Miffy’s Visits to Hospitals
For interchange between hospitals and local
communities, we have continued Medical Kids
Project and Miffy’s visits to hospitals. This
activities started from our wish that children in
hospital will be at ease.
Respect for Customers

Regional Contribution through Production Base Communication Space for Nurse
We have manufactured medical clothingby itself. Nowadays, factories are in
Akita pref. Japan, China, Indonesia andVietnam. Also we have contributed tothe development of regional community
such as job creation, ability development
and life circle improvement.
Social Responsibility- We have donated subscription, medical wear and wheelchairs
when natural disasters occured such as SARS, great earthquake atIndonesia, Han‐Shin Awaji Earthquake disaster, Great East
Japan earthquake and Kumamoto earthquake.
-We have published anthology for nurse regularly and made gifts
for hospitals or nurses free of charge.
-Support United Nations World Food Programme(WFP).
- We received recognition from the Minister for Health, Labourand Welfare, as one of the best contributed companies in
employment of people with disabilities.
Copyrights Nagaileben Co.,Ltd. All rights reserved.

“ITONA” gallery
Commemorating our 100th anniversary year,
we opened Japan‘s First communication spacefor nurse, “ITONA” gallery.

Environmental Efforts-We acquired ISO14001 certification in 2005.
Production factories of Nagaileben use amanagement system based on ISO 14001. We
strive to improve management structures andreduce environmental impacts, such as re-useof shredded waste cloth material.
-Considering not only ourselves but hospitals,
we developed new product “COMPELPACK”,
which shifts “Re-use” from “Disposable”, andhas sold it. “COMPELPACK” is the surgicalwear which enables hospital to reduce waste
and be more economical.

5AgendaI About “NAGAILEBEN”
II Financial Review FY2017
III Market Environment
IV Forecast for FY2018
V Management Goals
VI Rewarding shareholder-focused policies

Copyrights Nagaileben Co.,Ltd. All rights reserved.

6

II Financial Review FY2017

7

Financial Highlights <Statements of Income>% Change

To Forecast %Composition %Composition %Change

+2.9

+0.1

100.0

－

Gross profit

17,017
8,086

+4.5

+1.8

47.5

+0.8

Sales, general, andadministrative expenses

2,843

+2.1

+0.2

16.7

-0.1

Operating income

5,242
5,340
3,673

+5.9

+2.7

30.8

+0.9

+8.2

+3.7

31.4

+1.5

+12.6

+4.1

21.6

+1.9

FY2017(millions of yen,%)

Net sales

Recurring income
Net income[Overview]- Sales in major business for healthcare grew steadily. Sales of products for patients continued to grow greatly.
Sales in FY2017 surpassed forecast and became highest ever.
[Gross profit] ] Gross profit to sales(Factor of Sales: +¥415m,

FY2016 46.8%→ FY2017 47.5 %Factor of production -¥ 64 m)

Boost of sewing cost (-¥48m)
Foreign Exchange rate:
FY2016 ¥99.8yen/dollar
Overseas production ratio
FY2016 47.4%→ FY2017 ¥104.0yen/dollar (-¥73m)→ FY2017 48.1% (+¥ 52m)

[Sales, general, and administrative expenses]- FY2016 The cost of 100th anniversaries:¥34m(-¥34m)
FY2017 Dual corporate tax system: ¥89m (+¥39m)[Non-operating income]- Exchange-rate profit and loss: FY2016 -¥70m FY2017 ¥44m (+¥114m)[Capital Expenditure]-Capital Expenditure: ¥92m (IT system:¥38m, Distribution equipment:¥13m, Manufacturing equipment:¥21m, Buildings:¥9m)-Depreciation: ¥ 311m
Copyrights Nagaileben Co.,Ltd. All rights reserved.

8

Financial Highlights <Balance Sheet>
Major assets(¥ million %)Title

ResultChange Result

Change%Cash on hand at banks

22,762+3,257+16.7

Notes and accounts receivable

5,038

+110

+2.2

Inventories

4,311

-36

-0.8

Current assets

32,325+3,242+11.1

Buildings and structures

2,242

-128

-5.4

Land

4,447

－

－

Investments and other assets

1,315

-925

-41.3

Fixed assets

8,626-1,148-11.7

Total assets

40,951+2,093+5.4(including electronically recorded claims)

Major liabilities and shareholders' equity
Title[Major changes from the previous fiscal year]
up ¥ 3,257 million-Cash flows from operating activities up ¥ 3,971 million-Acquisition tangible and intangible down ¥ 121 million
down ¥ 1,662 million-Dividend payout
up ¥ 900 million-Long-term deposit

Cash and cash equivalents

Fixed assets-Buildings and structures(depreciation)-Long-term deposit

ResultChange Result

Change%

1,428

-132

-8.5

Net assets

Accrued income taxes

1,091

-57

-5.0

-Net profit-Dividend payout

4,405

+50

+1.2

Capital reserves

36,989+2,011+5.7

Treasury stock-4,902－－

Net assets

36,545+2,043+5.9

Total liabilities and net assets

40,951+2,093+5.4

Copyrights Nagaileben Co.,Ltd. All rights reserved.

down ¥ 900 million(¥ million %)Notes and accounts payable

Current liabilities

down ¥ 1,148 million
down ¥ 143 million

up ¥ 2,043 million
up ¥ 3,673 million
down ¥ 1,662 million

9Segments by Item
Healthcare wear

Doctors' wear

Copyrights Nagaileben Co.,Ltd. All rights reserved.

Patient wear

Utility wear

Shoes

Surgery wear

10

Sales by Item
Doctors' 15.7%

Utility
3.3%
Patient
10.5%[Healthcare wear]-Sales grew steadily, by satisfactory contracts of High
Value-Added new products, especially in East Japan.

Surgery
9.6%
Healthcare
58.4%

1.2% Shoes
1.3% Others

Year-on-year change

FY2016FY2017Overall

+2.4%

+2.9%

Healthcare wear

+2.6%

+2.8%

Doctors' wear

+2.0%

+1.0%

Utility wear

-10.3%-7.4%

Patient wear

+11.1%+10.7%

Surgery wear

+0.9%

+3.8%

Shoes

-3.1%

-0.8%

Others

-3.9%

+0.3%

Copyrights Nagaileben Co.,Ltd. All rights reserved.

[Doctors' wear]-The sales of High-End products overcame the decrementof Mass products.
[Utility wear]- Sales fell considerably because institutions changed unitof supply from individual to section and tighten the
allocation standard.
[Patient wear]-High-growth continued. The penetration of“hospitalization unit” enlarged the market. Value-added
products were received well.
[Surgery wear]- COMPELPACK contributed to the growth of sale.

11

Sales by Region
Central Japan
10.3%[East Japan]- Sales exceeded the previous year, by catching
renewal and new contracts steadily, and result of sales
promotion of Patient wear.

West Japan
35.7%

52.9%
East Japan

Year-on-year change[Central Japan]-Market size was not large and there was the influenceby the size of contracts. In this term, sales exceeded theprevious year.

1.1%
Overseas[West Japan]-In FY2016, there was high-growth sales due tocatching large scale contract. Sales kept previous year,
as focusing on sales promotion.
FY2016FY2017

Total sales

+2.4%

+2.9%

East Japan

+2.2%

+5.5%

Central Japan

-3.2%

+2.3%

West Japan

+4.1%

-0.2%

Overseas+14.1%-8.2%

Copyrights Nagaileben Co.,Ltd. All rights reserved.

[Overseas]- The sales went below the previous in full year.
Sales in first half of FY2017 was -21.4%, sales insecond half of FY2017 was +11.2%.

12

III Market Environment

13

Market Environment Topics
Uncertain Prospects of Market
Simultaneous revision of medical treatment fees and nursing care fees.(effective Apr. 2018)
The number of Nursing Staff and Care workers is increasing gently.

Rising sewing costs
Overseas: The cost of labor charge around China and Southeast Asia raised, due to the rising cost of living.
In Japan: Labor costs are increasing due to labor shortage

Tumultuous the Rate of Exchange

As of Aug. 2017¥109/dollar-monthly average exchange rate in NY market(as of Aug.)

2012:¥77/dollar, 2013:¥98/dollar, 2014:¥102/dollar, 2015:¥123/dollar, 2016:¥103/dollar, 2017:¥109/dollar,
130
120
110
100
90
80
70

2010

2011

Copyrights Nagaileben Co.,Ltd. All rights reserved.

2012

2013

2014

2015

2016

2017

14

Changes and prospects for medical and care service systems
Medical System
Medical Service Law, Health and Medical
Service Law for the Aged, Medical Insurance, etc'08

Medical program for very elderly instituted by law“Metabolic” diagnosis and health guidance
specified as mandatory'09

Enforcement of Amended Pharmaceutical Affairs Law
Local healthcare revival plan

'12

Release of the 7th prospect for supply and demand of
nursing staff. Legal transformation of national
medical highly-advanced center into independentadministrative corporations
Postponed time limit of abolishing nursing caretype medical facilities for 6 year.
The interim appraisal of the medical expenses
adjustment plan.
National Council Reform of Social Security System
6th plan of Medical Care System (2012-2017)‘13

2nd plan of the medical expenses
Plan of strategic market creation‘14

Medical Service Act
Enforcement of Amended Pharmaceutical Affairs Law'15

System for promotion of community medical corporation
Expansive financial support of national health insurance‘16

Formulation of Local medical program
Enforcement of Medical treatment with patients' offer‘17

Revision of the high-cost medical care benefit system
The foundation of promotion organization forcommunity medical corporation

'18
'16

7th plan of Medical Care System (2018-2023)
Medical Specialist System

'10
'11

Copyrights Nagaileben Co.,Ltd. All rights reserved.

Care Service System
Medical treatment fees
Total market: -0.83%
Service: +0.38%
Drug price: -1.2%

Care Service Law, Nursing Care Insurance, etc.

Nursing care fees

Nursing care type elderly health facilities
instituted

4th plan of care insurance system(2009-2011)

Total market: +3.0%
Home: +1.7%
Facilities: +1.3%

Total market: +0.19%
Service: +1.55%
Drug price: -1.36%
Disapproval of setting up specialty nursing
homes for social medical organization.
Total market: +0.004%
Service: +1.38%
Drug price: -1.38%

Enforcement of Amended Nursing Care
Insurance Law
5th plan of care insurance system (2012-2014)

Total market: +1.2%
Home: +1.0%
Facilities: +0.2%

Revising of measures against reduction of incidence
for nursing care
Total market: +0.10%
Service: +0.73%
Drug price: -0.63%

Total market: -0.84%
Service: +0.49%
Drug price: -1.33%

The law for Medical care synthesis total promotion+0.63%
Consumption tax increase

System for promotion of community medical corporation
6th plan of care insurance system (2015-2017)

Total market: -2.27%
Home: -1.42%
Facilities: -0.85%

Enforcement of Amended Nursing Care Insurance Law
for Community day care
The temporary revision of nursing care compensation
The partial revision of Nursing Care Insurance Law

Will be revised

7th plan of care insurance system (2018-2020)
Medical Care Treatment Center

Will be revised

15

Revisions to medical treatment and care Service fees（％）
5Service: +0.49%
Drug price: -1.33%

4

+2.8

+3.0

+2.6

3
2
1

+1.0

Consumption
tax increase

+1.2

+0.8
+0.4

+0.6
+0.2 +0.0 +0.1

+0.2

0

▲0.3 ▲0.1

-1

▲0.8

▲1.3

-2

▲2.3

-3

Medical-4

Care Service

▲0.8
▲2.3

▲2.4
▲3.2

Home-1.42%,
Facilities -0.85%

-5

90

92

94

Copyrights Nagaileben Co.,Ltd. All rights reserved.

96

98

00

02

04

06

08

10

12

14

16
16

Supply and Demand of Nursing Staff(Source: the Ministry of Health, Labour and Welfare (December 2010))(10,000 persons)

DemandForecast
ActualDecreased number of nursing staff on both supply
and demand sides for technical reasons due to theshift to a fulltime-worker-based counting system asfrom the 6th Outlook.

150

Actual(2015)

Change to actual number asfrom the 7th Outlook.

175

1,634 kpersons

actual number

125

The number ofnursing staff on the
supply side increaseby 2.73% annually.
The 5th outlook for nursing staff
demand and supply(2001-2005)

100

The 4th outlook for nursing staff
demand and supply(1991-2000)

The 7th outlook for nursing staff
demand and supply(2011-2015)

The 6th outlook for nursing staff
demand and supply(2006-2010)

75
'91

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

(Year)• The 7th outlook for nursing staff demand and supply (five-year plan from 2011 through 2015)• Outlook for nursing staff supply and demand for all medical and nursing fields• Next outlook for nursing staff supply and demand is under formulation.
Copyrights Nagaileben Co.,Ltd. All rights reserved.

17

Supply and Estimated Future Need for Care Workers(10,000 persons)

300

253

Forecast
250

Actual

200

150
253

100

50
55

64

72

'00

'01

'02

85

96

120 123
109 114141 143 151

163 171

0

'03

'04

'05

'06

'07

Since the number of track records are subject to the influence of change of an examination
method, Ministry of Health, Labour and Welfare adjusted the number after 2009.

Copyrights Nagaileben Co.,Ltd. All rights reserved.

'08

'09

'10

'11

'12

'13

'25

•Source: MHLW, document ” estimation of care workers' demand toward 2025”

18

Supply and Estimated Future Need
(10,000 persons)

300

250

Nursing Staff

253
forecast(maximum)
forecast(minimum)

200

Care Workers

206

Actual

150

253
100

157

196

171

50

0

2013

2025

2013

2025

Actual record: Japanese Nursing Associations’ statistical data
Forecast: The committee about supply and estimated future need of Nursing Ministry of
Health, Labour and Welfare
Copyrights Nagaileben Co.,Ltd. All rights reserved.

•Source: MHLW, document ” estimation of care workers' demand toward 2025”

19

IV Forecast for FY201820

Management Tasks and Status
Marketing strategy toincrease sales• Capture clusters of needsin the healthcare wear market• Increase peripheral business in products
for patients and surgery• Cultivate overseas markets

Production strategy toensure a steady supply• Strengthen domestic production(wage increase)• Strengthen ties with material makers andtrade firms• Strengthen ability to respond Quick Response
and small-lot multi-productStrategy tostabilize profitability• Shift to overseas from domestic production• Develop new oversea materials applying special
tax measures for EPA and FTA• Improvement of profitability by driving
the strategy of higher quality and value-added
products

Copyrights Nagaileben Co.,Ltd. All rights reserved.

21

Forecast Statements of Income(millions of yen,%)

FY2018E% Change (FY2017)

Composition % Change

Net sales

17,500+2.8－

Gross profit

8,260

+2.2

-0.3

Sales, general, andadministrative expenses

2,886

+1.5

-0.2

Operating income

5,373

+2.5

-0.1

Recurring income

5,448

+2.0

-0.3

Net income

3,739

+1.8

-0.2

[Overview]- The impact of revising medical treatment fees and nursing care fees is uncertain. Our products, however, are not subject to these revision.
- These will be achieved by putting higher quality, higher sensitivity and value-added products in markets.
[Gross profit] Gross profit to sales(Factor of Sales: +¥221m,

FY2017 47.5%→ FY2018E 47.2%
Factor of production: -¥ 47 m)

Boost of sewing cost (-¥15m)
Foreign Exchange rate:
FY2017 ¥104yen/dollar
Overseas production ratio
FY2017 48.1%→ FY2018E ¥110yen/dollar (-¥106m)→ FY2018E 48.8% (+¥ 53m)

[Sales, general, and administrative expenses]- Expense with the sales increase[Non-operating income]- Exchange-rate profit and loss: FY2017 -¥44m *Exchange-rate profit and loss was not factored into above forecast.
[Capital Expenditure]-Capital Expenditure: ¥216m (Buildings:¥96m, IT system:¥55m, Manufacturing equipment:¥47m, Distribution equipment:¥5m)-Depreciation: ¥296m
Copyrights Nagaileben Co.,Ltd. All rights reserved.

22

Forecast of Sales by Item
Sales by Item(¥ million)

Year-on-year change

FY2017FY2018E

Sales

+2.9%
+2.8%
+1.0%
-7.4%
+10.7%
+3.8%
-0.3%

+2.8%
+2.7%
+2.6%
-8.5%
+7.5%
+4.0%
-1.8%

20,00018,000

Shoes/Others

Healthcare wear

16,00014,000Surgery wear

12,000Patient wear

10,000Utility wear

8,000
6,000

Doctors' wear

4,000

Healthcare wear

2,000

Doctors' wear
Utility wear
Patient wear
Surgery wear
Shoes/Others

0

14

15

16

17

18E

[Healthcare wear] Activating market by high value-added products, sales of healthcare wear is expected to increasesteadily.
[Doctors’ wear] Though mass product is on downward trend, the sale of high-end products will lead Doctor’s wear to
steadily increasing.
[Patient wear] The increase in sales of patient wear is expected to continue with increased demand in the market.
[Surgery wear] As capacity of laundry and sterilization factory for COMPELPACK will expand and new contracts
will realize, sales of surgery wear is expected to increase.
Copyrights Nagaileben Co.,Ltd. All rights reserved.

23

Forecast of Sales by Region
Sales by Region(¥ million)

Year-on-year change

FY2017

Total sales

+2.9%

+2.8%

Overseas

East Japan

+5.5%

+2.0%

West Japan

Central Japan

+2.3%

+3.0%

West Japan

-0.2%

+3.8%

Overseas

-8.2%

+8.4%

FY2018E

20,00018,00016,00014,00012,00010,000Central Japan

8,000
6,000

East Japan

4,000
2,000
0

14

15

16

17

18E

Each area are expected to increase of sales and continue of the highest ever sales.
[East Japan] Catching renewal orders steadily with higher quality and value-added products,
the sales in East Japan is expected to increase consistently.
[Central and West Japan] As gaining share by sales promotion, the increase of sales is planned.
[Overseas] Sales is expected to increase as the impact of foreign exchange rate and expanding our reputation.
Copyrights Nagaileben Co.,Ltd. All rights reserved.

24

Product Strategy
Sales by ProductYear-on-year change

FY2017

Total sales

+2.9%

+2.8%

High-End products

+7.9%

+7.4%

High Value-Added
products

+3.3%

+4.3%

Value-Added
products

+2.3%

+0.9%

Mass products

-3.1%

-3.4%

(¥ million)
20,00018,000High-End

16,00014,000High ValueAdded

12,00010,000

Value-Added

8,000
6,000
4,000

Mass

High-End products(Retail price)

High Value-Added products
Value-Added products

10,000Yen
7,500Yen
5,000Yen

2,000
0

14

15

16

17

18E

*Categories changed“DC brand products” and “High Functional products” : Classification
and Name changed, “High-End products” and ”High Value-Added products”“Standard Functional products” : Name changed, “Value-Added products”“Mass products” : no change

FY2018E

Mass products

Price composition(Nurse one-piece)[High-End products] DC brand products are on the decrease. House brand products, such as 4D, Beads Berry, aregood sales.
[High Value-Added products]As these products being received well from the market, the increase in sales of highfunctional products is expected to continue by driving the strategy of higher quality and value-added products.
[Mass products] As being on downward trend, the shift from mass products, include other company products, tofunctional products is expected to continue.
Copyrights Nagaileben Co.,Ltd. All rights reserved.

25

Product Categories changed
DC brand products(Retail price)

High Functional products

10,000Yen
7,500Yen
5,000Yen

Standard Functional products

High-End productsHigh Value-Added products
Value-Added products(Retail price)

10,000Yen
7,500Yen
5,000Yen

Mass products

Mass products

Price composition(Nurse one-piece)

DC brand+House brandPrice composition(Nurse one-piece)

Courrèges
ATSURO TAYAMAKEITA MARUYAM
CARE CREW etc(¥ million)

House brandDC brand

1,400
1,200

4D、 BeadsBerry

etc

1,000
800
600
400
200

High-Endproducts
Copyrights Nagaileben Co.,Ltd. All rights reserved.

0

13

14

15

16

17

26

Production Strategy
Production(Non-Consolidated)(¥ million)(%)

10,00050Composition
Purchased products

7,500

45

Overseas production

Domestic production
Overseas production
Purchased products

5,000

40

2,500

35

0

30

14

15

16

17

FY2017

50.6%
48.1%
1.3%

FY2018E

50.0%
48.8%
1.2%

Domestic production
Ratio of overseas
production

18E

Japan: Strengthen ability to respond Quick Response and small-lot multi-product by increasing wage and securing
human resources
Overseas: Strengthen productivity and quality in new factory in Java, Indonesia

Copyrights Nagaileben Co.,Ltd. All rights reserved.

27

V Management Goals

28

Business Direction

Sales Strategy-Increase peripheral business in products for Patients and Surgery.
-Gain share In West Japan.
-Develop and Sale of High-End and High Value-Added products.
-Cultivate Overseas Markets.

Profit Strategy-Driving the strategy of Higher Quality and Value-Added products.
-The shift to Overseas Production.
-The minimization of Exchange Risk
Equalization of the fluctuations in foreign exchange rates by reservation of exchange contracts
Copyrights Nagaileben Co.,Ltd. All rights reserved.

29

Sales Strategy
FY2014FY2017

FY2020E(3 terms ago)

(Previous term)(3 terms later)¥17,017 million¥18,500 million

net sales ¥16,214 million
Healthcare
58%

Item

Doctors'
17%
Utility
5%

57%

58%
3%

8% Patient
3%

9% Surgery

10% Central Japan

2%
10%

10%

11%

Region1%

2% Overseas
54%

51%

Products

High-End 7%
Copyrights Nagaileben Co.,Ltd. All rights reserved.

Value-Added
40%

6%
Mass

West Japan
38%

36%

1%
Overseas

1%

Surgery
12%

49%

53%

West Japan
35%

High Value-Added
47%

Patient
13%

11%

OthersEast Japan
54%

15%
2%

16%

37%

High Value-Added

34%

High-End
7% 5%

9%

3%
30

Trend of Business Records(¥ million)(%)

17,500Net sales (left)
55
15,000Gross profit to sales (right)

12,50045

10,000
7,500

35

5,000
2,500
0

25
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18E19E20E(FY)

Note: Consolidated data since FY1994 are shown. Preceding years represent non-consolidated data.

(¥ million)

FY2020E

Copyrights Nagaileben Co.,Ltd. All rights reserved.

Net Sales

18,500Operating
Income5,600
31

VI Rewarding shareholder-focused policies

日本ではじめてのナースのための心のコミュニケーションスペース「いとなギャラリー」

32

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 buyback- Acquire expeditiously when our share is undervalued

Copyrights Nagaileben Co.,Ltd. All rights reserved.

33

The History of Stock Value
BPS

EPS

DPS

（yen）

（yen）

（yen）

FY2001

532.5

50.8

12.5

FY2002

568.3

48.0

12.5

FY2003

604.0

52.4

15.0

FY2004

663.0

60.5

30.0

FY2005

700.0

56.7

30.0

FY2006

732.4

61.0

30.0

FY2007

764.3

61.9

30.0

FY2008

783.9

57.1

30.0

FY2009

791.0

42.9

30.0

FY2010

827.0

67.6

32.5

FY2011

866.1

72.3

35.0

FY2012

902.3

68.9

35.0

FY2013

966.2

90.8

45.0

FY2014

1,012.7

94.1

50.0

FY2015

1,046.6

95.6* 100.0

FY2016

1,037.8

98.1

50.0

FY2017

1,099.2

110.5

60.0

*2015: DPS 100yen (commemorative 50yen)
Copyrights Nagaileben Co.,Ltd. All rights reserved.

（Yen）
1,200

（Yen）
125

※1 FY2009: Accrued pension fund withdrawal
payment loss ¥1.04b. A dotted line is when there was
not outbreak.

1,100

100
1,000

900
75

※1
800

700
50

600

500

25
2001

2004

2007

2010

2013

2016

Book Value Per Share (BPS)(left)
Earnings Per Share(EPS)(right)

34

Actual Dividends Paid
Total dividend

Share buyback

Payout ratio

Total return ratio（Million yen）

（Million yen）

（non-c, ％）（non-c, ％）FY2001

475

0

27.6

27.6

FY2002

475

0

29.3

29.3

FY2003

530

1,697

29.7

124.6

FY2004

744

0

36.5

36.5

FY2005

1,117

0

56.9

56.9

FY2006

1,117

0

53.4

53.4

FY2007

1,117

0

53.1

53.1

FY2008

1,083

1,077

56.6

111.2

FY2009

1,040

1,220

57.3

122.2

FY2010

1,127

0

51.4

51.4

FY2011

1,205

226

52.0

61.7

FY2012

1,205

0

55.1

55.1

FY2013

1,541

229

51.3

58.7

FY2014

1,712

0

54.4

E54.4

FY2015*3,324

1,500

107.5

153.8

FY2016

1,662

0

52.5

52.5

FY2017

E 1,994

0

55.2

55.2

*2015: DPS 100yen (commemorative 50yen)
Copyrights Nagaileben Co.,Ltd. All rights reserved.

35

Management Philosophy
Our management philosophy are “Let us help the human life” and “Harmony”. We thinkthat well-balanced growth with human, profit and philanthropy become the responsible
corporate. Furthermore, we have our company spirit, “Nagaism”. We continue tospecialize in medical / nurse / care business area, expanding its market and developing bestproducts for our customers.
Human

Believing
Concentrating
Pursuing principal

Nagaism
Business model
MarketCopyrights Nagaileben Co.,Ltd. All rights reserved.

ProfitContribution

Creation of Social Value

36

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 the actual outcome, depending upon
future circumstances.
The expectations for future results stated by the Company or its managementin this material do not represent any warranty that these expectations orparticular results will be realized.
The Company is not liable to update any of its forecasts, or projections,
unless otherwise provided for by law or under the relevant regulations.

Copyrights Nagaileben Co.,Ltd. All rights reserved.

37