®

®

Results Presentation
FY March 2020
Win-Partners Co., Ltd. (3183)

Full year results ending March 2020

Consolidated results summary(￥mil)

Mar 2019

Mar 2020

YoYRE(Aug9)

Sales

69,775-7.5%

64,000Operating profit

3,261-18.8%

2,590

Recurring profit

3,264-18.7%

2,590

Net profit

2,640-29.1%

1,820

EPS (yen)
BPS (yen)

91.99

64,537
2,649
2,655
1,872
65.23
714.27－63.40680.89－-3

Main events in 3/2020
June
Sales to a hospital chain decreased substantially

October
Reimbursement price revision4How WIN tackled① New customer acquisition
Relocating sales staff (September)➁ Tighter cost control
Freezing new hires of mid-careers
Number of employees: initial estimates 584 → 541 (Mar 2020)③ Expanding sales in existing customers
Acquiring replacement demand for large-sized equipment④ Tougher price negotiation with suppliers
Increasing items for bulk purchase⑤ Logistic revolution (separation of shipment procedure)
In-house system development and shifting operations to the cloud5

Highlights

Sales - 7.5 %(¥mil)

vs. plan
YoY

+0.8%

-10% excluding MCI

69,77564,537

Sales to a hospital chain decreased
from June(In particular PCI, CRS, CVS)FY 3/2019

FY 3/2020

Reimbursement price revision sinceOctober(99.7% agreed as at March)
6

Sales impact by the reimbursement
price revision in October
Segment

Assumedimpact(%)

Percutaneous Coronary Intervention (PCI)-6.1

Cardiac Rhythm Segment (CRS)-3.3

Cardiac Vascular Segment (CVS)-0.6

Percutaneous Peripheral Intervension (PPI)-4.2

Brain Surgery-0.2

Others

-0.3

Total

-2.8
Note: Based on sales mix/volume in the 2nd half to September 20197

Sales breakdown by segment
Sales(¥mil)

YoY growth (%)
Volume% of sales

Value(%)

Change (pp)Percutaneous coronary intervention (PCI)

18,953

-10.6

-11.1

29.4

-1.2

Cardiac rhythm segment (CRS)

17,385-4.5-1.4

26.9+1.7

Cardiac vascular segment (CVS)

9,171

-5.7

-6.2

14.2+0.2

Percutaneous peripheral intervention (PPI)

3,484

+0.2

+0.6

5.4+0.4

Brain surgery

2,626+0.9+5.6

4.1+0.5

Diabetes mellitus segment (DMS)

2,193-+20.4

3.4+0.8

Large-sized medical equipment

3,903--41.7

6.0-3.5

Others6,819-+3.5

10.6

+1.1

64,537--7.5 100.0

Total

8

Segment review (vs. 3/2019)

P C I

suffered from deceased sales to a major customer and thereimbursement price revision

CRS

suffered from deceased sales to a major customer and thereimbursement price revision

C V S suffered from deceased sales to a major customer

P P I

suffered from deceased sales to a major customer, but sales of DCB andperipheral DES increased

L a r g ee q u i p - large-scale orders decreasedm e n tOthers sales of small/mid-sized equipment increased
9Segment review (vs. plan)(¥mil)

Others
979

800

400

DMS
103

PPI
104

CVS
181

CRS
205

Brain
surgery
236

CRS

Brain
surgery Others

0- 400- 800

PCI-796
PCI

Large-sized
medicalequipment-476

Largeequip-ment

DMS

PPI

lower sales order size better
betterfor bothcontracted sales ofsales for
new &blood
existing
existing
glucosecustomers
customers
measuringequipment

CVS
bettersales forexisting
customers

betterbetterbetternewsales for sales ofcustomer both new small/midacquisition & existing sizedcustomers equipment
10Highlights

Operatingprofit - 18.8%(¥mil)
3,261
2,649

vs. plan
YoY+2.3%

Gross profit margin improved to12.7%(+0.3pp)- Full contribution from MCI- Improved margins of large-sized equipment

SGA increased +3.2%- Labor cost +5.7%- Number of employees :536(Mar 19)→541(Mar 20)
FY 3/2019

FY 3/2020

11Highlights

Net profit(¥mil)- 29.1 %vs. plan
YoY+2.9%

Absence of negative goodwill¥278 mil to 3/19

2,640

Extraordinary profit
1,872

FY 3/2019¥82 mil from silent partnership investment (MCI)FY 3/2020

12Consolidated income statements
Mar 2019(¥mil)

Mar 2020(%)(¥mil)(%)

69,775100.0

64,537

100.0

Cost of sales

61,16387.7

56,36587.3

Gross profit

8,612

12.3

8,172

12.7

SG&A expenses

5,351

7.7

5,522

8.6

Operating profit

3,261

4.7

2,649

4.1

Non-operating profit

80.0

180.0

Non-operating expenses

50.0

120.0

3,264

4.7

2,655

4.1

Extraordinary profit

2790.4820.1

Extraordinary loss

40.0

14

0.0

3,540

5.1

2,724

4.2

899

1.3

851

1.3

2,640

3.8

1,872

2.9

Sales

Recurring profit

Pretax profit
Taxes

Net profit

13

Consolidated balance sheet
Mar 2019

Mar 2020

Change(¥mil)(%)(¥mil)(%)(¥mil)

92.1
38.3
46.0
5.9
1.9
7.9

35,49991.9-1,254

17,495
14,666
2,571
767

45.3
38.0
6.7
2.0

2,206
-3,695235
0

Fixed assets

36,754
15,28918,361
2,335
767
3,156-23

Total assets

39,910100.0

Current liabilities

Fixed liabilities

19,43918,168
484
786
924

48.7
45.5
1.2
2.0
2.3

8.1
3,132
38,632 100.0
17,098 44.3

Total liabilities

20,36351.0

Net assets

19,54749.0

Total liabilities,
net assets

39,910100.0

Current assets
Cash and deposits
Accounts receivable
Inventories
Other current assets

Accounts payable
Taxes payable
Other current liabilities

15,899435
762-1,278-2,341

41.2
1.1
2.0

-2,269
-48
-23

2.7
1,029
18,127 46.9
20,505 53.1
38,632 100.0

104-2,236
958-1,27814

Consolidated cashflow statements(¥mil)

Mar 2019

Mar 2020

Cash flows from operating activities

2,289

3,219

Net profit before taxes
Depreciation
Sales proceeds of marketable securities
Negative goodwill
Notes and accounts receivable
Inventories
Notes and accounts payable
Tax paid

3,540
237
1-278
-594
-651
1,321-964
-321

2,724
196
3,695
-215
-2,269-966
54-4,484

-94

Other

Cash flows from investing activities
Time deposits
Withdrawal from time deposits
Purchase of tangible assets
Sales proceeds of tangible assets
Sale of marketable securities
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Other-5,000-91
7
9-5,000
5,000-107
8-613--24

4

Cash flows from financing activities

-832

-918

Cash dividends paid

-832

-918

-3,027
13,317
10,2892,206
10,289Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of FY
Cash and cash equivalents at the end of FY

12,49515

OutlookImpact from COVID-19
Up to March 2020
No significant impact on the number of cases of coronary disease treatment andrelated medical device sales

From April onward
Some non-acute (COVID-19 irrelevant) treatments have been postponed-Only acute inspections and treatment should be done and non-acute ones
postponed-Regular check for outpatients with pacemaker should be postponed-Remote medical care should be considered(extracts from proposals by The Japanese Circulation Society as at 26th April)

Demand for COVID-19 care related medical device (e.g. ECMO) is expected to belimited as of now
17

Measures WIN takes
Continuous support for medical professionals & hospitals
Obtaining enough medical device inventories for sustainable supply

Risk diversification
Preventing the infection spread and avoiding contagion risk of medical devices-Setting up separate 10 depots for backup-Promoting telework by staff etc.

18

What WIN will do① Compress idle inventories
Reduce disposal loss

➁ Acquire new customers
Effectively utilize in-house resources such as short-time employees③ M&AContinue studying M&A targets for business expansion④ Focus on CRS
Promote products with high growth potential (e.g. ablation, ICD)
Number of CDR holders: 27(Mar 2017) → 73(Mar 2020) expansion⑤ Logistic revolution (separation of shipment procedure)19Consolidated Forecasts to March 2021

Sales
Operating profit
Recurring profit
Net profit
EPS (yen)
DPS (yen)(¥mil)YoY (%)(%)

65,400
2,660
2,660
1,830
63.74
34.00

+1.3

100.0

+0.4

4.1+0.2

4.1

-2.2

2.8

20

Forecast Highlights

Sales+1.3 %YoY

Impact from reimbursement pricerevision(¥mil)

65,40064,537

FY 3/2020

FY 3/2021E（H1：‐4.3% H2：-1.5%）

New customer acquisitions tooffset sales absence for a hospital
chain (April & May)No impact from COVID-19
discounted in the forecast
21Sales impact by the reimbursement
price revision in AprilSegment

Assumedimpact(%)

Percutaneous Coronary Intervention (PCI)-3.7

Cardiac Rhythm Segment (CRS)-1.2

Cardiac Vascular Segment (CVS)-0.4

Percutaneous Peripheral Intervension (PPI)-0.8

Brain Surgery-1.3

Others

-0.1

Total

-1.5

Note: Calculated based on reimbursement prices revised in October 201922

Sales breakdown by segment(¥mil)

YoY(%)% of sales

Percutaneous coronary intervention (PCI)

18,740

-1.1

28.7%

Cardiac rhythm segment (CRS)

18,130+4.3

27.7%Cardiac vascular segment (CVS)

9,250

+0.9

14.1%

Percutaneous peripheral intervension (PPI)

3,620

+3.9

5.5%

Brain surgery

2,590-1.4

4.0%

Diabetes mellitus segment (DMS)

2,540

+15.8

3.9%

Large-sized medical equipment

5,340

+36.8

8.2%

Others

5,190

-23.9

7.9%

65,400+1.3

100.0%

Total

23

Forecast Highlights

Operating
YoY+0.4%
profitGross profit margins to improve to(¥mil)
12.8% (+0.1pp)

2,649

2,660

- Volume discount for medical device procurement
including rebate program

SG&A ¥5.74bn (+3.9%)- Number of employees 541(Mar 2020) → 581(Mar 2021E)
FY 3/2020

FY 3/2021E
24

Forecast Highlights

Net profit

-2.2%

YoY

Absence of income from silent partnershipinvestment last year (¥82mil)(¥mil)

1,872

1,830

Capex ¥

100 milvs. ¥97mil for FY 3/2020
Depreciation ¥180 mil

vs. ¥196mil for FY 3/2020
FY 3/2020

FY 3/2021E
25

Dividends

payout ratio (%)
dividend per share (¥)

50.6

53.3

34

yen

(+1 yen from March 2020)

34
33

FY 3/2020()

Payout ratio
53.3%

FY 3/2021E
26

ReferenceThe reimbursement
prices of major products
Reimbursement prices (¥000)
Segment

PCIItems
PTCA Ballon Catheter
DES (Drug Eluting Stent)
IVUS (Intravascular Ultrasound Catheter)

Pacemaker
ICD (Implantable Cardioveter Defibrillator)
CRTD (Cardiac Resychronization Therapy Difibrillator)

CRS Subcutaneous Implantable Defibrillator (S-ICD）
Ablation Catheter
Cardiac CryoAblation Catheter
Stent graft (abdomen）
Open Stent graft

CVS Hea rt va lve for Tra ns ca theter Aortic Va lve Impla ntation(TAVI) (Ba lloon-expa nda ble)

PPIHeart valve for TAVI (self-expandable)
PTA Ballon Catheter
Peripheral Vascular Stent
Peripheral DES (Drug Eluting Stent)

2018
(Apr)
45
193
89

2019
(Oct)

831
3,040
4,140
3,060
133
637
1,300
1,090

763
2,950
3,990
3,120
126
649
1,320
1,110

- 14.3- 10.4
- 5.9
- 8.2
- 3.0
- 3.6
2.0
- 5.3
1.9
1.5
1.8

4,430

4,510

3,670
60
179
229

3,740
56
175
233

38
173
84

Change %('18 vs '19)

2020
Change %('19 vs '20)
(Apr)
35
- 8.7
161
- 6.9
80
- 4.6

720
2,950
3,990
3,120
124
649
1,3201,110- 5.6
0.0
0.0
0.0
- 1.6
0.0
0.0
0.0

1.8

4,510

0.0

1.9
- 7.3
- 2.2
1.7

3,740
55
174
233

0.0
- 1.6
- 0.6
0.028

Major products
SegmentDisease

ProductPCI・Myocardial
infarction
・ Angina
Pacemaker

CRS・Abnormal
cardiac rhythm

Implantablecardioverter
defibrillator（ICD）

Stent graft

CVS
PPI/

Brain
surgery

DMS/

Intravascular ultrasound(IVUS) catheter

Drug-eluting stent (DES)

PTCA balloon catheter

Cardiacresynchronization
therapydefibrillator(CRTD)

Transcatheter aortic valveAblation catheter

Mechanical heart valve

・Aortic aneurysm
・Aortic stenosis

Peripheral vascular stent

Carotid stent

Neurovascular occlusion coil・Arteriosclerosis
obliterans・Diabetes
Large・Diagnosis
equipment

Insulin pump

X-ray equipment

Magnetic resonanceimaging (MRI)29

Track record of quarterly results
Sales/Operating profit (quarterly)
Sales

Operating profit

Operatingprofit:¥mil

Sales:¥mil

20,00015,00010,0005,000

19,135
18,776
17,076
16,874
16,067
15,98815,547
16,204
15,94615,182
14,49915,447
14,412
15,875
13,908
14,571
13,862
14,023
14,37013,05913,69013,288
1,062
13,223
11,957
12,582922
11,407881
833 794806805 842783757
10,822739 11,630739 788

505 545688

647722595

681703696446712564700

1,500
1,000588 602

500

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
FY 2014/3

2,000FY 2015/3

FY 2016/3

FY 2017/3

FY 2018/3

FY 2019/30FY 2020/3= Year of reimbursement price revisions

30

Share price(Yen)1,900

May 2014
TSE 2nd section
1,600

Sep 2014

TSE 1st section
1,300

1,000

Effective on
January 1st, 2017

Dec 2013
360,000
Share selling

Stock split 1 : 2700Mar 2015
1 mil share selling

株式売出目論見書

4002013
2014
2015
2016
2017
2018
2019
2020
91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 531

Disclaimer
This material was prepared based on information available and views held at the time it was made. Statements in this material thatare not historical facts, including, without limitation, plans, forecasts and strategies are “forward-looking statements”.
Forward-looking statements are by their nature subject to various risks and uncertainties, including, without limitation, a decline ingeneral economic conditions, general market conditions, technological developments, changes in customer demand for products
and services, increased competition, and other important factors, each of which may cause actual results and future developments
to differ materially from those expressed or implied in any forward-looking statement.
With the passage of time, information in this material (including, without limitation, forward-looking statements) could besuperseded or cease to be accurate. WIN-Partners Co., Ltd. disclaims any obligation or responsibility to update, revise orsupplement any forward-looking statement or other information in any material or generally to any extent. Use of or reliance on theinformation in this material is at your own risk.

Contact
WIN-Partners Co., Ltd.
Investor Relations
TEL: +81-3-3548-0790
http://www.win-partners.co.jp