®

®

Results Presentation
FY March 2018
Win-Partners Co., Ltd. (3183)

Full year results ending March 2018

Consolidated results summary（¥mil）

Mar 2017

Mar 2018

YoYOE

Sales

57,760+8.8%

63,100Operating profit

3,058

+2.8%

3,250

Recurring profit

3,061

+2.8%

3,250

Net profit

2,141+40.4%

2,914

EPS (yen)
BPS (yen)

74.58

62,832
3,144
3,148
3,005
104.69618.79－101.50539.69－-3

Our approach◆ Supported customers to upgrade tomulti-specialty hospitals- CVS has grown to major segment following PCI and CRS◆ Acquired new customers- Initiated business with new customers in Tokyo metropolitan
area from 2Q◆ Consolidated Tesco Akita (ex-Osawa Shoji)- 100% consolidation on October 1st- Name change to Tesco Akita on November 1st- Aiming to expand market share in the Tohoku region
4

Highlights

Sales + 8.8 %(¥mil)

vs. plan
YoY

0.4%

▲

Like-for-like sales +6%,excluding Tesco Akita

62,832

Favorable existing customers &Contribution from new customers

57,760FY 3/2017

FY 3/2018

All categories except large
equipment achieved growth5Sales breakdown by segment
Sales(¥mil)

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

Change (pt)Percutaneous coronary intervention (PCI)

22,992+6.5+6.8

36.6

▲0.7

Cardiac rhythm segment (CRS)

15,130+10.1+11.8

24.1+0.6

Cardiac vascular segment (CVS)

8,322+16.5+24.7

13.2+1.7

Percutaneous peripheral intervention (PPI)

3,239

+18.6

+13.7

5.2+0.2

Brain surgery

2,164+1.2+9.9

3.4+0.0

Diabetes mellitus segment (DMS)

1,204-+26.4

1.9+0.3

Large-sized medical equipment

3,948- ▲24.9

6.3▲2.8Others

5,830-+16.7

9.3

+0.6

62,832-+8.8 100.0TOTAL

6

Segment review (YoY)

P C I enjoyed higher sales volume reflecting higher number of procedures.
CRS

enjoyed double digit growth of MRI conditional pacemakers.
EP・Ablation related products also rose 10%.

CVS

enjoyed doubled sales of TAVI (transcatheter aortic valve implantation)
related products together with favorable stent graft and bypass surgery
related products.

PPI

enjoyed double digit growth of PTA (percutaneous transluminalangioplasty) balloon catheters.
declined after large-scale projects in Tohoku region last FY.

Others boosted by Tesco Akita’s dialysis related products etc.
7Segment review (vs plan)(¥mil)

1,200900

Others600
300

PPI+1000
Large-sized▲ 300 medicalPCIequipment ▲508
▲811
▲ 600

CVS▲277

Brain +1,150
DMS surgery+134+174

CRS

▲230

▲ 900
Large-sized Medical equipment：
Unachieved order intake in Tokyo Metropolitan area

PCI：Unachieved new customer acquisition

PPI：Higher sales to existing customersDMS：Higher sales of new glucose monitoring device

CVS：Over- estimated interim revision

Brain surgery：Higher sales to existing customers

CRS：Lower sales to existing customers

Others：Higher sales of smaller medical equipment
8CVS highlight
Expanding TAVI
（transcatheter aortic valve implantation）

More customers accredited hospitals for TAVITranscatheter
aortic valve

Aortic valve【Aortic stenosis】
Deliver bioprosthetic valve by catheter

9Highlights

Operatingprofit+ 2.8%(¥mil)

3,144

vs. plan
YoY

3.3%

▲

Gross profit margin declined 0.3pt- Fell short of the target- PPI improved while CVS and large equipment worsened- Lesser impact from bulk purchasing

SG&A rose 9.1%(excl. Tesco Akita +5.3%)- including labor cost (+7.5%)- Number of employees 447 → 517

3,058(Mar 2017)

FY 3/2017(Mar 2018)

FY 3/201810

Highlights

Net profit + 40.4 %(¥mil)

3,005

vs. plan
YoY+3.1%

Negative goodwill of Tesco Akita(¥684mil) boosting net profit

2,141
FY 3/2017

FY 3/201811

Consolidated income statements
Mar 2017(¥mil)

Mar 2018(%)(¥mil)(%)

57,760100.0

62,832

100.0

Cost of sales

50,20886.9

54,78787.2

Gross profit

7,551

13.1

8,044

12.8

SG&A expenses

4,493

7.8

4,900

7.8

Operating profit

3,058

5.3

3,144

5.0

Non-operating profit

40.0

90.0

Non-operating expenses

00.0

50.0

3,061

5.3

3,148

5.0

Extraordinary profit

60.0

734

1.2

Extraordinary loss

00.0

55

0.1

3,067

5.3

3,826

6.1

926

1.6

821

1.3

2,141

3.7

3,005

4.8

Sales

Recurring profit

Pretax profit
Taxes

Net profit

12Consolidated balance sheet
Mar 2017

Mar 2018

Change(¥mil)(%)(¥mil)(%)(¥mil)

91.6
36.0
47.0
5.6
3.0
8.4

33,181

91.7

2,786

13,317
17,377
1,646
840

36.8
48.0
4.6
2.3

1,362
1,780
▲215
▲140

Fixed assets

30,395
11,954
15,597
1,862
980
2,792

214

Total assets

33,187100.0

16,964
Accounts payable
15,765
Taxes payable
486
Other current liabilities
712
Fixed liabilities
729

51.1
47.5
1.5
2.1
2.2

8.3
3,007
36,188 100.0
17,635 48.7

Total liabilities

17,694

53.3

Net assets

15,493

46.7Total liabilities,
net assets

33,187100.0

Current assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Current liabilities

16,388485
760

3,000671

45.3
1.3
2.1

623
0
47

2.2
789
18,424 50.9
17,764 49.1
36,188 100.0

59
730
2,270
3,000

Including
Tesco Akita¥407mil

Including
Tesco Akita¥155mil

Including
Tesco Akita¥651mil13

Consolidated cashflow statements
March 2017

March 2018

Cash flows from operating activities

3,386

1,343

Net profit before taxes
Depreciation
Sales proceeds of marketable securities
Negative goodwill
Notes and accounts receivable
Inventories
Notes and accounts payable
Tax paid
Other3,067249▲460▲3782,278▲1,217▲1513,826261▲38▲684▲1,393365▲49▲927▲16

Cash flows from investing activities▲128764

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▲12620-▲198115
280-604▲21▲37

Cash flows from financing activities▲588▲746

Cash dividends paid

▲588▲7462,669
9,285
11,954

1,362
11,954(¥mil)

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

13,31714

OutlookOutline of 2018 revision of medical fee
1. Reimbursement price cut of devices- Estimated impact to our group:
Average ▲5.9% on sales

2. Bed control toward 2025
- Reclassify acute care inpatient’s wards(7to1,10to1) into 7 categories- Reform inpatient medical fee of community
based integrated care ward (13to1)
16

1. Reimbursement price cut : impact ongroup salesSegment

Impact (%)

Percutaneous Coronary Intervention (PCI)▲ 10.6

Cardiac Rhythm Segment (CRS)▲ 5.5

Cardiac Vascular Segment (CVS)▲ 0.9

Percutaneous Peripheral Intervension (PPI)▲ 7.3

Brain Surgery▲ 2.0

Others

▲ 0.3

Total

▲ 5.9
Calculated based on the actual sales volume and product mix on FY 3/201817

Outline of reimbursement price cuts
Segment

PCIItems

739
986
2,890
3,300
4,140
4,500
3,060
143
637
1,310
1,090

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

▲23.3▲14.6
▲10.5
12.4
▲15.75.2▲7.90.0▲8.00.0▲7.00.0▲0.80.0

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

4,430

4,430

0.0

Heart valve for TAVI (self-expanding)
PTA Ballon Catheter
Peripheral Vascular Stent graft

3,670
67188

3,670
60
179

0.0
▲10.4
▲4.8

ICD (Implantable Cardioveter Defibrillator)

ICD (MRI-conditional)
CRTD (Cardiac Resychronization Therapy Difibrillator)

CRTD (MRI-conditional)
Subcutaneous Implantable Defibrillator (S-ICD）

PPI201845
193
89

Pacemaker
Pacemaker (MRI-conditional)

CVS

2016

Change (%)

59
226
100

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

CRS

Reimbursement prices (¥000)

Ablation Catheter
Cardiac CryoAblation Catheter
Stent graft (abdomen）
Open Stent graft18

2. Bed control : Impatient basic fee（Aiming to allocate medical resources based on patient’s status）【Before】

General ward inpatient basic fee (7to1,10to1)
Additional

1,332pts

1,357pts

1,377pts
18%

12%

1,591pts
25%

1,387pts
24%

Basic

Correcting mismatch
10to1
between medical needs and 7to1
care provided【After】
No change
Acute general ward inpatient basic fee
1,561pts

1,591pts

Ⅰ: ―
Ⅱ:23%

Ⅰ: ―
Ⅱ:24%

Ⅰ:30%
Ⅱ:25%

Inpatient
Fee 3

InpatientFee 2

Inpatient
Fee 1

1,491pts
Additional

1,357pts

1,332pts

1,377pts

1,387pts

Ⅰ:15%
Ⅱ:12%

Ⅰ:21%
Ⅱ:17%

Ⅰ:27%
Ⅱ:22%

InpatientFee 6

Inpatient
Fee 5

Inpatient
Fee 4[Assessment ofseverity and degreeof requiring care]
Ⅰ：Current evaluation
Ⅱ：Evaluation based on
DCP dataBasic

Inpatient
Fee 7

Source：Central Social Insurance Medical Council 389 General Meeting (7 Feb 2018)19

Outlook of inpatient
Inpatient of heart ＆ cerebrovascular disease,pneumonia and fracture to increase in aging（No. of inpatients in 2015＝100）
Pneumonia
Heart disease
Cerebrovascular
Fracture

Nervous system
OthersDigestive system
Cancer

2015

2025

2035

2045

2055

Source：Central Social Insurance Medical Council 347 General Meeting (15 March 2017)20

Customer hospitals situation
Most of acute care hospitals hoping to maintaincurrent status (7to1 patient to nurse)- accepting more patients of heart andcerebrovascular disease to satisfy given criteria

21

Our approach for 3/2019
Support customer hospitals to grow responding
to medical care reform and regional medical careplans
- Support to enforce acute care functions- Support to gather and increase patients

Improve gross profit margin- Cost reduction backed by purchasing power andvolume commitment- Review of inventory strategy(taking inventory risk gradually)
22

Strengthen customer support
Upgrading to “Multi-specialty” hospitals
and regional medical center(1) Propose customers to start up new department: aaCardiovascular internal medicine → Cardiac surgery(2) Propose to expand the clinical field:
e.g. TAVI, Ablation(3) Support to collaborate with other hospitals and clinics:
Referral patients/doctors(4) Support doctors for hands-on training:
Japan, India
23

PMI：TESCO Akita※

Tesco Akita（ex-Osawa Shoji）to be absorbed
into Tesco on July 1st Expecting over ¥3bn sales to March 2019
 Aiming profit contribution,
creating synergy effects from the integration.

22sales offices(as of March 2018)

WIN INTERNATIONAL sales offices
WIN INTERNATIONAL branch offices
TESCO/TESCO Akita sales offices※Changed the name on 1st Nov 201724

Consolidated Forecasts to March 2019(¥mil)

YoY (%)

(%)

Sales

67,000+ 6.6

100.0

Operating profit

3,200+ 1.8

4.8

Recurring profit

3,200+ 1.6

4.8

Net profit

2,300▲ 23.5

3.4

EPS (yen)

80.12

DPS (yen)

30.00
25

Forecast highlights

Sales+ 6.6 %YoYExpand customer share- Support customers to upgrade to multi-specialty
and expand trading volume per customer(¥mil)

67,00062,832
FY 3/2018

FY 3/2019EAcquire new customers- University hospital groups- Regional core hospitals- Diabetes clinic

Like-for-like sales +4%,
excluding Tesco Akita
26Sales breakdown by segment(¥mi l )YoY% of sales

Percutaneous coronary intervention (PCI)

23,110

+0.5%

34.5%

Cardiac rhythm segment (CRS)

16,810+11.1%

25.1%

Cardiac vascular segment (CVS)9,480+13.9%

14.1%

Percutaneous peripheral intervension (PPI)

3,310

+2.2%

4.9%

Brain surgery

2,180

+0.7%

3.3%

Diabetes mellitus segment (DMS)

1,580+31.2%

2.4%

Large-sized medical equipment

4,400+11.4%

6.6%

Others6,130+5.1%

9.1%

67,000+6.6%

100.0%TOTAL

27

Forecast highlights

Operatingprofit+1.8% YoY

Gross profit margin(¥mil)

3,200
3,144

13.1% +0.3pt YoY- Aiming to recover through volume discounts- Expecting to improve margins of PCI, CRS, CVS

SG&A+13.3% YoY- +10% excluding Tesco Akita- Estimated total number of employees
517 → 561
(Mar 2018)

FY 3/2018(Mar 2019)

FY 3/2019E
28

Forecast highlights

Net profit▲23.5% YoY

Absence of negative goodwill ofTesco Akita(¥mil)

Capex

3,005
2,300

¥150 milvs. ¥198mil for FY 3/2018

220

FY 3/2018

FY 3/2019E

Depreciation ¥milvs. ¥262mil for FY 3/2018
29

Ｄｉｖｉｄｅｎｄｓ

Dividends

We aim at
Over 30% payout ratio
Dividends FY ending March 2019

30 （yen)payout ratio
37%

30

New Product Information (CVS)®

Abbott “MitraClip NT system”

First transcatheter mitral valve
repair device in Japan
Launched in April 2018 as new treatment for
mitral regurgitation※※ mitral valve does not close properly, allowing blood to flow
backward into the heart（Source: Abbott）31Major products
Segment

Disease

ProductPCI・Myocardial
infarction
・ Angina
Pacemaker

CRS・Abnormal
cardiac rhythm

Implantablecardioverter
defibrillator（ICD）

Stent graft

CVS
PPI/

Brainsurgery

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)32

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

Operating profit

Operatingprofit:¥mil

Sales:¥mil

17,00013,000

9,000

5,000

16,874
16,204 2,000
15,547
15,182
14,49914,571
14,412
14,37014,023
13,862
13,908
13,6901,500
13,223
13,28813,05912,582
11,957
11,407
11,63010,822833 794806 881805 842 1,000
783
739
739 788
722
703
696
688
681
647
595
505 545
446
500

1Q

2Q

3Q

FY 3/2014

4Q1Q

2Q

3Q

FY 3/2015

4Q

1Q

2Q

3Q

FY 3/2016

4Q

1Q

2Q

3Q

FY 3/2017

4Q

1Q

2Q

3Q

4Q

0

FY 3/2018= Year of reimbursement price revisions

33

Share price(Yen)

1,900

May 2014
TSE 2nd section
1,600

Sep 2014

TSE 1st section

Effective on
January 1st, 2017

1,300

Stock split
Dec 2013
360,000
Share selling

1:2

1,000

700

Mar 2015
1 mil share selling

株式売出目論見書

400

2013
2014
2015
2016
2017
2018
91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 2 3 4 5 6 734

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