Results Presentation®

Full Year ending March 2017
WIN-Partners Co., Ltd. (3183)

Full year results ending March 2017

Consolidated results summary（¥mil）

Mar 2016

Mar 2017

YoYOE

Sales

54,147+6.7%

56,600Operating profit

2,965+3.1%

3,000

Recurring profit

2,978+2.8%

3,000

Net profit

2,111+1.4%

2,050

EPS (yen)*

73.56－71.41

BPS (yen)*485.1557,760
3,058
3,061
2,141
74.58
539.69－-*Figures after the stock split (1:2) effective from January 1, 2017
3Our approach◆ Negotiated selling and procurement prices toreflect new reimbursement prices‐ 1Q: 60% → 2Q: 90% → 3Q: 96% reached agreement◆ Acquired new customers‐ Initiated business with new CRS customers from 2Q◆ Strengthened sales structure‐ Increased the number of CRS staffs‐ Offered specialist services by ablation team4

Highlights

Sales + 6.7 %(¥mil)

57,760vs. plan
YoY

2.1%

▲

Higher sales volume absorbed
negative impact fromreimbursement price cuts (▲5%)

54,147

Contribution from new customers

FY 3/2016

FY 3/2017

Favorable sales of CRS andlarge‐sized equipment segments
5Sales breakdown by segment
Sales(¥mil)

YoY growth (%)
VolumeValue% of sales(%)

Change (pt)Percutaneous coronary intervention (PCI)

21,521+5.6

▲4.9

37.3

▲4.5

Cardiac rhythm segment (CRS)

13,539

+21.2

+19.0

23.4+2.4

Cardiac vascular segment (CVS)

6,671▲3.0+0.1

11.6

▲0.8

Percutaneous peripheral intervention (PPI)

2,850

+13.2

+1.7

4.9

▲0.2

Brain surgery

1,969+0.7+3.4

3.4

▲0.1

Diabetes mellitus segment (DMS)953-+23.2

1.6+0.2

Large‐sized medical equipment

5,257-+57.9

9.1+3.0

Others4,997-+6.9

8.7

+0.0

57,760-+6.7 100.0TOTAL

6Segment review (YoY)

P C I suffered from reimbursement price cuts ( 8.7%) despite higher sales volume.
▲

sales volume in ICD and CRT‐D offset reimbursement price cuts
C R S (higher3.4%). Particularly sales of EP・Ablation posted 30% growth.
▲favorable sales of TAVI offset reimbursement price cuts ( 2%), lower sales
C V S volumeof stent graft and open‐heart surgery related devices.
▲sales volume in PTA balloon catheters offset reimbursement price cuts
P P I higher( 3.7%) and lower sales volume of peripheral vascular stents.
▲

enjoyed large‐scale projects with eased negative impact of tax rise.
7

CRS highlight
Ablation treatment rapidly expanding
Diagnostic and treatment accuracy improved by new products→ Number of atrial fibrillation procedures increasing

Diagnosis

3‐D Mapping System

Treatment：

Cardiac Cryoablation Catheter

8

決算のポイント
Segment review (vs plan)(¥mil)
700

Brainsurgery

500

300

PCI

199+257

CVS+271

Others+767+21100‐100‐300+

Large‐sized
medicalequipment

PPI▲159CRS DMS▲120▲76‐500‐700・PPI: lower number of procedures atexisting customers
・CRS: fell short of the revised plan
despite favorable sales

・Brain surgery: higher number of procedures atexisting customers
・Large‐sized
medical equipment: attained large transactions
・CVS: higher number of procedures of TAVI・Others: favorable sales of digestive organ related
devices and small equipment
9Highlights

Operatingprofit + 3.1%(¥mil)

3,100

3,000

2,900

2,965

3,058

vs. plan
YoY1.9%▲Gross profit margin dropped 0.3pt‐ Changes in sales mix due to the decrease in sales of PCI‐ Covered negative impact of reimbursement price cuts by
reducing procurement costs

2,800

2,700

SG&A

+4.5%

including labor cost

+5.8%

2,600

2,500

2,400

[Number of employees] Mar 2016: 422 → Mar 2017: 447

2,300

FY 3/2016

前期

FY 3/2017実績

10Highlights

Net profit + 1.4 %vs. planYoY

4.4%▲(¥mil)

2,200

2,100

2,111

2,141

2,000

Marginal increase after theextraordinary profit posted inFY3/2016

1,9001,800

FY 3/2016

前期

FY 3/2017実績

11

Consolidated income statements
Mar 2016(¥mil)

Mar 2017(%)(¥mil)(%)

54,147100.0

57,760100.0

Cost of sales

46,882

86.6

50,20886.9

Gross profit

7,264

13.4

7,551

13.1

SG&A expenses

4,299

7.9

4,493

7.8

Operating profit

2,965

5.5

3,058

5.3

Non‐operating profit

130.0

40.0

Non‐operating expenses

00.0

00.0

2,978

5.5

3,061

5.3

Extraordinary profit

294

0.5

60.0

Extraordinary loss

182

0.3

00.0

3,090

5.7

3,067

5.3

9781.8926

1.6

2,111

3.9

2,141

3.7

Sales

Recurring profit

Pretax profit
Taxes

Net profit

12Consolidated balance sheet
Mar 2016

Mar 2017

Change(¥mil)(%)(¥mil)

(%)

90.2
31.5
51.3
5.0
2.5
9.8

30,395

91.6

3,770

11,954
15,597
1,862
980

36.0
47.0
5.6
3.0

2,669
460
386
254

Fixed assets

26,624
9,285
15,137
1,475
725
2,891

8.4

▲98

Total assets

29,515100.0

14,903
Accounts payable
13,477
Taxes payable
604
Other current liabilities
821
Fixed liabilities
684

50.5
45.7
2.02.82.3

2,792
33,187
16,964

100.0
51.1

3,672
2,061

15,765
486
712

47.5
1.5
2.1

2.2

Total liabilities

15,587

52.8

Net assets

13,927

47.2

Total liabilities,
net assets

29,515100.0

729
17,694
15,49333,187

Current assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Current liabilities

53.3
46.7
100.0

(¥mil)

Bulk
purchasing

2,288▲118 Higher salesof large▲108 equipment

45
2,106
1,565
3,672

13

Consolidated cashflow statements(¥mil)

Cash flows from operating activities

March 2016March 2017

2,294

3,386

Net profit before taxes
Depreciation
Sales proceeds of marketable securities
Cash surrender value of insurance
Actuarial loss on retirement allowance
Notes and accounts receivable
Inventories
Notes and accounts payable
Tax paid

3,090
276▲200▲93159▲624636
▲293
▲952

3,067249
▲460
▲378
2,278
▲1,217

Cash flows from investing activities

298▲128

Purchase of tangible assets
Sales proceeds of tangible assets
Sale of marketable securities
Surrender of insurance▲23593381106▲1262000

Cash flows from financing activitiesCash dividends paid

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of FY
Cash and cash equivalents at the end of FY▲545▲588▲545▲588

2,047
7,238

2,669
9,285

9,285

11,95414

OutlookIssues in healthcare delivery industry(1) Medical expenditures under tighter control
Long‐term: Clarification of hospital functions
Short‐term:
Possibility of every year revision in reimbursement
price 2018 onwards(2) Unbalanced doctors
regionUnbalanced medical services bytreatment field16Unbalanced doctors

Number of doctors296,800
Catheter surgery specialist
4,202

Cardiac rhythmspecialist
865(Source: Ministry of Health, Labour and Welfare (Number of doctors as of Dec 2014), Japanese Association of Cardiovascular Intervention and Therapeutics(CVIT certified doctors in 2016), Japanese Heart Rhythm Society (Arhythmia specialists as of April 2017 ) )17Customer hospitals situation(1) Customer hospitals with well‐balanced
clinical fields (PCI/CRS/CVS) showing
growth(2) Starting to consider strengthening/changing hospital function

18

Our approach in FY 3/2018
Strengthen support to gather and increase patientsSupport upgrading to“Multi‐specialty” hospitals
1) Propose customers to start up new department:
aa Cardiovascular internal medicine → Cardiac surgery
2) Propose customers to expand the clinical field:
Percutaneous coronary interven on → Cardiac rhythm3) Support customers to collaborate with other hospitals:
Referral patients/doctors4) Support doctors for hands‐on training: Japan, India
19Strengthen sales structure
Changed the sales structure in order tosupport upgrading to “Multi‐specialty”(1) Sales team by segment (PCI/CVS)

reformed by customer

Comprehensive support for customers to upgrade to “Multi‐specialty”(2) Increased number of staff in strategic marketing and corporate
development department
Strengthen the function in order to promote marketing strategy, sales support,
and sales staff education(3) Consolidation of sales support team
HQ office relocation
consolidate sales support team at regional sales offices
into the former HQ office20

Sales staff career planning

8th year onward
5th year
3rdyearValue‐added service, hospital management support
Functional upgrading, marketing, profitability improvement

Value‐added service
・Healthcare consulting training

・Value‐added proposal training
・Live demonstration
・Training session by manufacturers/doctors
・International conference
・CDR*2 training
・Case study workshop

2ndyear・Training session by manufacturers/doctors
・Live demonstration
・Case study workshop

1styear・New graduates training
・MDRT*1
・Live demonstration
・Follow‐up training*1 MDRT：MedicalDevice Representative Training

Support to gather and increase patients, recruit medicalprofessionals, proposal for efficient operations and cost
reductions

Support to use devices properly
Proposal of the latest technology and products

Support to use devices properly
Selection of optimal devices, inventory control

On‐site training*2 CDR: Cardiac Device Representative

21

Consolidated Forecasts to March 2018(¥mil)(%)

YoY(%)

Sales

61,600100.0+6.6

Operating profit

3,250

5.3+6.3

Recurring profit

3,250

5.3+6.1

Net profit

2,230

3.6+4.2

EPS (yen)

77.68

DPS (yen)

27.00
22

Forecast highlights

Sales+ 6.6 %YoY

Expand customer share(¥mil)

61,600Acquire new customers‐ University hospitals‐ Regional core hospitals‐ Diabetes clinic

57,760FY 3/2017‐ Support upgrading to multi‐specialty hospitals

FY 3/2018E23Full year sales breakdown by segment(¥mi l )YoY% of sales

Percutaneous coronary intervention (PCI)

23,960+11.3%

38.9%

Cardiac rhythm segment (CRS)

15,130+11.7%

24.6%

Cardiac vascular segment (CVS)

7,380+10.6%

12.0%

Percutaneous peripheral intervension (PPI)

3,120

+9.5%

5.1%

Brain surgery

1,970

+0.0%

3.2%

Diabetes mellitus segment (DMS)

1,070+12.3%

1.7%

Large‐sized medical equipment

4,770

▲9.3%

7.7%

Others4,200▲16.0%

6.8%61,600+6.6%

100.0%TOTAL

24

Forecast highlights

Operatingprofit+6.3% YoY

Gross profit margin(¥mil)

3,250

13.2% +0.1pt YoY‐ Aim to improve sales mix

SG&A‐ Estimated total number of employees
447 → 491
(Mar 2017)

3,058
FY 3/2017+8.4% YoY
(Mar 2018)

FY 3/2018E
25

Forecast highlights

Net profit+4.2% YoY(¥mil)

2,230Capex¥100 milvs. ¥140mil for FY 3/2017
2,141240

FY 3/2017

FY 3/2018E

Depreciation ¥milvs. ¥250mil for FY 3/2017
26

ＤｉｖｉｄｅｎｄｓDividends

We aim atOver 30% payout ratio
Dividends FY ending March 2018yen27

Share priceMar 2015
1 mil share selling(Yen)

1,100

Effective onJanuary 1st, 2017

Stock split

1:2May 2014
TSE 2nd section

1,000prospectus
for issuance

900
800
700

Dec 2013
360,000 shareselling

600
500

Sep 2014
TSE 1st section

400300

2013

2014

2015

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 122016

2017

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 528

Major products
Segment

DiseaseProductPCI・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 valve

Ablation 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:¥mil

Sales

Operating profit

Operatingprofit:¥mil

15,547
14,37015,00013,90813,223

13,05913,00011,0009,000

10,822

11,407

505

545

1Q

2Q

12,582

11,630 11,957
688

739

647

722

783

3Q

4Q

595

13,288681

13,862806

14,412

13,690 14,023

881

14,499

696

739

788

833

1Q

2Q

3Q

4Q

446

7,000
5,000

3Q

FY 3/2014

4Q

1Q

2Q

FY 3/2015

1Q

2Q

3Q

FY 3/2016

4Q

2,000
1,800
1,600
1,400
1,200
1,0008006004002000FY 3/2017= Year of reimbursement price revisions

30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