Summarized Translation

Financial Results Overview
for FY Ended September 30, 2016
November 22, 2016
EPS Holdings, Inc.

Copyright © 2016 EPS Holdings All rights reserved.

Disclaimer

The earnings estimates 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 © 2016 EPS Holdings All rights reserved.

1

Contents

1. Financial Results Overview for FY 2016/9
2. Budget for FY 2017/9
3. Establishment of a New Mid-Term Business
PlanCopyright © 2016 EPS Holdings All rights reserved.

2

Financial Results Overview
for FY 2016/9

Copyright © 2016 EPS Holdings All rights reserved.

3

FY 2016/9 : Business Areas※as of September 30, 2016

DomesticBusinessOverseas

Business

CRO

EPS, EPS Associate, EPMate, e-TrialSMO

EPSOGO, Sogo Rinsho MédéfiCSO

EP-PharmaLine

CPO

EPI, J-CRSU, EPI(Suzhou), EPI Yamanashi

GlobalResearchEPS International Holdings etc

EKISHINEPS EKISHIN, EPS(China) etc

OthersEPBizCopyright © 2016 EPS Holdings All rights reserved.

（※EPS group since January 1,2016）

4

FY 2016/9 : Financial Results (Consolidated)（ UNIT:JPY MILLION ）Ratio for
YoY
Estimates Change

YoY%

Net Sales

45,202 47,800 52,703 110.3% 7,501

16.6%

Operating
Income

5,482

4,730

6,224（Ratio）(12.1%)(9.9%)(11.8%)

Ordinary
Income

5,362

4,650

6,589（Ratio）(11.9%)(9.7%)(12.5%)Net
Income

2,163

2,270

3,966（Ratio）(4.8%)(4.7%)(7.5%)

2015/9Results

Copyright © 2016 EPS Holdings All rights reserved.

2016/9Estimates

2016/9Results

131.6%

742

13.5%

141.7% 1,227

22.9%

174.7% 1,803

83.4%5FY 2016/9 : Financial Results (By Business Segment)（ UNIT:JPY MILLION ）2015/9 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
Income25,219
5,491
6,486
691
6,788
383
900
42,773△ 314,274
30△ 1,238△ 1,086
45,202
5,482

2016/9 Results

26,895
21.8%
6,099 22.7%
10,961
10.7%
610 5.6%
7,509
5.6%
426 5.7%
1,552△ 1204,060
183 4.5%
3,9570.7%△ 31△ 2,231△ 943
52,70312.1%
6,224 11.8%

YoY Change

YoY %

1,675
6.6%
607
11.1%
4,475
69.0%
△ 80 △11.6%
720
10.6%
4311.2%
652
72.4%
△ 124
1286
46.4%
215
△ 317 △7.4% （※）
△ 62
△ 993
143
7,501
16.6%
742
13.5%

（※ Due to foreign exchange ﬂuctuations ）6

Budget for FY 2017/9

Copyright © 2016 EPS Holdings All rights reserved.

7

FY 2017/9 : Business Areas※as of October 1 2016

DomesticBusinessOverseas

BusinessCROEPS, EPS Associate, EPMate, e-TrialSMO

EPSOGO, Sogo Rinsho MédéfiCSO

EP-PharmaLine

CPO

EPI, J-CRSU, EPI(Suzhou), EPI Yamanashi

GlobalResearchEPS International Holdings etc

EKISHINEPS EKISHIN, EPS(China) etc

OthersEPBiz

Copyright © 2016 EPS Holdings All rights reserved.

8

FY 2016/9 : Budget (Consolidated)（ UNIT:JPY MILLION ）2016/9Results

2017/9Estimates

YoY
ChangeYoY%

Net Sales

52,70358,000

5,297

10.1%

Operating
Income

6,224

6,500
(11.2%)

4.4%（Ratio）(11.8%)

276

Ordinary
Income6,589

6,500(11.2%)△1.4％（Ratio）(12.5%)△ 89NetIncome3,966

3,500(6.0%)△11.7％（Ratio）(7.5%)△ 466

Copyright © 2016 EPS Holdings All rights reserved.

9FY 2017/9 : Budget (By Business Segment)（ UNIT:JPY MILLION ）2016/9 Results

CRO
SMO
CSO
CPO
GR

Net Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeNet Sales
Operating
IncomeEKI
SHIN

Net Sales

HD &Others

Net Sales

Total

Operating
IncomeOperating
IncomeNet Sales
Operating
Income26,895
6,099
10,961
610
7,509
426
1,552
△ 1204,060183
3,957
△ 31
△ 2,231△ 943
52,7036,224

Copyright © 2016 EPS Holdings All rights reserved.

2017/9 Estimates YoY Change

27,500605
22.7%
5,800 21.1% △ 299
12,8001,839
5.6%
768 6.0%
158
8,300
791
5.7%
480 5.8%
54
1,909
357
30 1.6%
150
5,100
1,040
4.5%
330 6.5%
147
6,000
2,043
250 4.2%
281△ 3,609△ 1,378- △ 1,158△ 215
58,0005,297
11.8%
6,500 11.2%
276

YoY %

2.2%
△4.9%
16.8%
25.9%
10.5%
12.7%
23.0%
25.6%
80.3%
51.6%
10.1%
4.4%

10

Dividend Per Share Trends（JPY）Term End
期末配当
Dividend

Mid‐term
中間配当
Dividendｚ

Payout
配当性向
ratio

50.0

①Celebrate Dividend②Special Dividend

40.0

30.0%

30.0

20.0

10.0

40.0%

22.0

25.0
18.0

18.0

18.0
15.0

10.0
8.0

10.0
8.0

②5yen

（Estimates）

10.0
8.0

①
10.0 2yen

12.0

20.0%

10.0%

10.0

0.0

0.0%
2013/92014/92015/92016/92017/9※The dividend conditions shown in the above graph reflects retroactive revised data that takes into considering
the effect of a stock split.
Copyright © 2016 EPS Holdings All rights reserved.

11Establishment ofa New Mid-Term Business Plan

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12

Flow of The Plan in So Far, and Features of This Time
1. Previous Mid-Term Business Plans of ours were made as three years plan.
However, this time, five years plan including 30 th anniversary of the Groupʼsfounding is made.
2. New Mid-Term Business Plan is made as the “rolling plan” with FY 2017/9 as
the first year, which is the out year of the current Business Plan.
3. We set new Numerical Target three times, first year, third year, and out year.
Last TimeMid-Term Business Plan
2010/10〜2013/9

CurrentMid-Term Business Plan
2014/10〜2017/9

z :Set Year of
Numeric Target
2013/10〜2014/9
Out YearPlan

New Mid-Term Business Plan
2016/10〜2021/9

Results

Net Sales

450375

Operating
Income6034

2016/10〜2017/9

2019/92021/9（Unit：JPY 100 million）
Copyright © 2016 EPS Holdings All rights reserved.

13

Current Mid-Term Business Plan (2014/10〜2017/9)（Unit : JPY Million）

2015/9Plan

Results

2016/9Plan

Results

2017/9Plan(Estimates)

Consolidated

44,120 45,202 47,500 52,703 52,500 58,000

Net Sales

Net Sales
By Business Segment

Operating
Income4,6255,482

5,500

6,224

6,700

6,500

Operating Income
Margin(％)

10.5％

12.1％

11.6％

11.8%

12.8％

11.2%

CRO

24,833 26,119 27,000 28,447 29,700 29,409

SMO

6,800

6,486

7,500 10,961

8,300 12,800

CSO

6,500

6,788

7,200

7,509

8,000

8,300

GR

2,226

2,773

2,400

4,060

3,000

5,100

EKISHIN

4,050

4,274

5,000

3,957

7,000

6,000

（※）

（※ FY2016/9 results and FY2017/9 Estimates for CRO include numerical value of CPO. ）Copyright © 2016 EPS Holdings All rights reserved.

14In Formulate of a New Mid-Term Business PlanOur 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 © 2016 EPS Holdings All rights reserved.

15

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, in
conjunction 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 © 2016 EPS Holdings All rights reserved.

16

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 © 2016 EPS Holdings All rights reserved.

17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.

Copyright © 2016 EPS Holdings All rights reserved.

18

Numerical Target of Out Year (FY 2021/9)

Item

TargetNet Sales

100 billion JPY

Operating Margin

12.5%

CAGR

13.7%

Overseas Ratio

30%

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19

Numerical Plan of New Mid-Term Business Plan

（UNIT: JPY 100 million）

2016/9Results

2017/9Plan

2019/9Plan

2021/9
Plan

527
62580
65

750
90

1,000
125

11.8%

11.2%

12.0%

12.5%

268

275

350

450

10.8%

109

128

150

200

12.8%

75

83

115

150

14.8%

151930

50

26.4%

467

505645850

12.6%40519015029.9%

3960

100

150

30.5%

80111

190

300

30.2%

Net Sales
Operating Income（Ratio）
CRO
Domestic

SMO
CSO
CPO
Subtotal

Overseas

GREKISHIN
Subtotal

Net
Sales
NetSalesNet
Sales
NetSalesNet
Sales
NetSales
Net
Sales
Net
Sales

Copyright © 2016 EPS Holdings All rights reserved.

CAGR

13.7%
15.0%

20

Specific measures to be implemented〜Domestic Business〜
CRO Business① Improving existing products that match clientsʼ needs along with developing
new products that anticipate those needs, as well as exceeding the market
growth rate by ensuring and maintaining stable supply.
② Active development of new businesses including M&As.

SMO Business① Improving supply capacity utilizing the largest-scale CRC and our network offacilities, as well as expanding market share by enhancing expertise in areas
such as oncology.
② Active development of new businesses including M&As, particularly creating newservices geared toward contructed hospital, crinics.

CSO Business① Expanding a unique contract sales organization (“CSO”) combining contract
medical representatives (“CMR”), drug information management (“DI”), postmarket surveys (“PMS”), MR direct services, and more.
② Active development of new businesses including M&As, particularly BPO services,which are highly-specialized.
Copyright © 2016 EPS Holdings All rights reserved.

21

Specific measures to be implemented〜Overseas Business〜
Global Research Business① Strengthening and establishing an operational system in three regions: Japan,
China, and the Asia-Pacific.
② Strengthening Japanese operations and promoting business development inEurope and the United States.
③ Establishing a global management system that can withstand business growth.

EKISHIN(China) Business① Strengthening and expanding the operations of our pharmaceutical and medicaldevices business.
② Accelerating commercialization of investment in pharmaceutical ventures, etc.
③ Expanding and enhancing existing businesses, utilizing management basestrengthened by our capital partnership with SUZUKEN CO., LTD., as well as
exploring new businesses such as medical services, nursing care, and more.

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22

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

Copyright © 2016 EPS Holdings All rights reserved.