®

®

Results Presentation
2Q FY March 2018
Win-Partners Co., Ltd. (3183)

2Q results ending September 2017

Consolidated results summary（¥mil）2Q toSep 2016

Sep 2017

YoYOE

Sales

27,713+7.4%

29,500Operating profit

1,436

+4.3%

1,520

Recurring profit

1,438

29,753
1,497
1,499
1,018
35.49
549.20

+4.3%

1,520

+3.7%

1,040

Net profit982

EPS (yen)*
BPS (yen)*

34.21
498.90－-－-*Figures after the stock split (1:2) effective from January 1, 2017
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◆ Acquired Osawa Shoji* in Akita pref.
- 100% consolidated from October 1st- Aiming to expand market share in the Tohoku region(*changed the name to Tesco Akita on November 1st)
4

Highlights

Sales + 7.4 %(¥mil)

29,75327,713vs. plan
YoY

+0.8%

All segments enjoyed higher sales(except large-sized equipment)
Double digit growth inCVS, PPI, DMS
Contribution from new customers

2Q to Sep 2016

2Q to Sep 2017

5Sales breakdown by segment
Sales(¥mil)

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

Change (pt)11,055+5.3+5.4

37.2

▲0.7

Cardiac rhythm segment (CRS)

7,034+6.0+6.6

23.6

▲0.2

Cardiac vascular segment (CVS)

3,787+4.7+21.4

12.7+1.5

Percutaneous peripheral intervention (PPI)

1,571+18.7+12.3

5.3+0.2

Brain surgery

981▲1.6+3.0

3.3

▲0.1

Diabetes mellitus segment (DMS)

517-+15.71.7+0.1

Large-sized medical equipment

2,307-

▲1.0

7.8

▲0.7

Others2,497-+5.4

8.4

▲0.2

29,753-+7.4 100.0

Percutaneous coronary intervention (PCI)

TOTAL

6Segment review (YoY)(vs. plan)

PCI

enjoyed higher number of procedures at existing customer hospitals
Sales of balloon catheter posted double digit growth.

C RS

enjoyed favorable sales of MRI conditional pacemakers.
EP・Ablation related products rose 5% slowing after high growth last FY.

CVS

enjoyed doubled sales of TAVI (transcatheter aortic valve implantation)
related products and steady sales of stent graft.

PPI

enjoyed double digit growth of PTA (percutaneous transluminalangioplasty) balloon catheters.

declined after large-scale projects last FY
7

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

8

Highlights

Operatingprofit + 4.3%

vs. plan
YoY

▲

1.5%

Gross profit margin declined 0.2pt
1,550(¥mil)
1,500

1,497

1,450

1,400

1,436

- PCI and PPI improved
while CVS and large equipment worsened

SG&A rose 7.1%

1,350

1,300

- including labor cost (+5.9%)

1,250- SG&A to sales remained flat due to HQ moving[Number of employees] 447 → 471

1,200

1,150(Mar 2017)

1,100

2Q to Sep 2016

前期(Sep 2017)

2Q to Sep 2017実績

9Highlights

Net profit + 3.7%(¥mil)
1,020

1,018
970

vs. plan
YoY▲

2.1%

Extraordinary losses relating toHQ moving (16million yen)

982

920

870820

2Q to Sep 2016 2Q to Sep 2017前期実績

10Consolidated income statements
2Q toSep 2016(¥mil)

Sep 2017(%)(¥mil)(%)

27,713100.0

29,753

100.0

Cost of sales

24,091

86.9

25,91487.1

Gross profit

3,622

13.1

3,839

12.9

SG&A expenses

2,186

7.9

2,341

7.9

Operating profit

1,436

5.2

1,497

5.0

Non-operating profit

20.0

20.0

Non-operating expenses

00.0

00.0

1,438

5.2

1,499

5.0

Extraordinary profit----Extraordinary loss

00.0

160.1

1,437

5.2

1,483

5.0

Taxes4551.6464

1.6

Net profit

982

3.5

1,018

3.4

Sales

Recurring profit

Pretax profit

11Consolidated balance sheet
Mar 2017

Sep 2017

Change(¥mil)(%)(¥mil)

(%)

91.6
36.0
47.0
5.6
3.0
8.4

29,516

87.8

▲878

9,283
17,441
1,993
798

27.6
51.9
5.9
2.4

▲2,671
1,844
131
▲182

Fixed assets

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

1,312

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
1.52.1
2.2

4,104 12.2
33,621 100.0
17,082 50.8

Total liabilities

17,694

53.3

Net assets

15,493

46.7

Total liabilities,
net assets

33,187100.0

Current assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Current liabilities

16,031466584(¥mil)
Affected bybank holiday

433
118

47.7
1.4
1.7266
▲19
▲128

2.3
771
17,854 53.1
15,766 46.9
33,621 100.0

41160
273
433
12Consolidated cashflow statements(¥mil)

2Q toSep 2016

Sep 2017

Cash flows from operating activities

1,898▲562Net profit before taxes

Tax paid

1,437
119
1,196▲65302
▲738

1,483
120▲1,844▲118253▲488

Cash flows from investing activities▲79▲1,363

Purchase of tangible assets▲68-▲98▲1,250

Cash flows from financing activities

▲588

▲746

Cash dividends paid

▲588

▲746

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of FY
Cash and cash equivalents at the end of 2Q

1,230
9,285

▲2,671
11,954
9,283

Depreciation
Notes and accounts receivable
Inventories
Notes and accounts payable

Purchase of marketable securities

10,51613

OutlookIssues in healthcare delivery industry(1) Medical expenditures under tighter control
Long-term: Clarification of hospital functions
Short-term: Possible every year revision inreimbursement price 2018 onwards(2) Maldistribution of doctors
regionMaldistribution of medical services bytreatment field

15

Medical expenditures under control
Necessary no. of beds and Healthcare reform
Advanced
acute care2014

Acute care

Convalescence

Chronic care

1,234

Revision of medical fee(thousand)No. of beds reported to MHLW

2016

Revision of medical fee

2018

Simultaneous revision ofnursing care and medical fees

Accelerate bed restructuring
toward 2025

-Create community-based integrated care system
Promote to convert hospital functions
Possible every year revision of medical fee

Advanced
acute careAcute care

Convalescence Chronic care

1,181(thousand)2025
Estimate of necessary beds
(Year)※※※ Source: Win Partners based on the Social security system reform committee’s report（ June 15th 2015) （https://www.kantei.go.jp/jp/singi/shakaihoshoukaikaku/houkokusyo1.pdf）

16Maldistribution of doctors

Number of doctors
296,800
Cardiovascularintervention
specialist
4,202Cardiac rhythm
Cardiovascularspecialist
surgery specialist
8652,070(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) Hospitals with well-balanced clinicalfields (PCI/CRS/CVS) showing growth(2) Most of acute care hospitals hoping toremain current status/enforce
hospital function

18

Our approach in 2H to 3/2018(1) Strengthen customer support to gather andincrease patients- Support to enforce/convert hospital functions(2) Focus on post merger integration ofOsawa Shoji

19

Strengthen customer support
Support upgrading to“Multi-specialty” hospitals(1) Propose customers to start up new department: aa
Cardiovascular internal medicine → Cardiac surgery(2) Propose to expand the clinical field:
e.g. TAVI(3) Support to collaborate with other hospitals and clinics:
Referral patients/doctors(4) Support doctors for hands-on training:
Japan, India
20

Post merger integration※Tesco Akita（ex-Osawa Shoji）joined
our group on Oct 1st-

Aiming to expand market share in theTohoku region-

Adding ¥1.5bn sales in 2H to 3/2018-

Aiming to improve profitability
backed by group’s purchasing power22
sales offices(as of November 2017)

WIN INTERNATIONAL sales offices
WIN INTERNATIONAL branch offices
TESCO/TESCO Akita sales offices※Changed the name on 1st Nov 201721

Consolidated Forecasts to March 2018
Revised by Tesco Akita figures（excluding goodwill）(¥mil)(%)

YoY(%)

OE(¥mil)Sales

63,100

100.0

+9.2

61,600Operating profit

3,250

5.2+6.3

3,250

Recurring profit

3,250

5.2+6.1

3,250

Net profit

2,230

3.5+4.2

2,230

EPS (yen)

77.68

DPS (yen)

27.00
22

Forecast highlights

Sales+ 9.2 %YoY

Expand customer share- Support upgrading to multi-specialty hospitals(¥mil)

63,100Acquire new customers- University hospitals- Regional core hospitals- Diabetes clinic

Revised by 6 month sales ofTesco Akita

57,760FY 3/2017

FY 3/2018E
23

Full year sales breakdown by segment(¥mi l )YoY% of sales OE(¥mil)

Percutaneous coronary intervention (PCI)

23,500+ 9. 2%

37. 2%

23,960

Cardiac rhythm segment (CRS)

15,360 + 13. 4%

24. 3%

15,130

Cardiac vascular segment (CVS)

8,600 + 28. 9%

13. 6%

7,380

Percutaneous peripheral intervension (PPI)

3,140 + 10. 2%

5. 0%

3,120

Brain surgery

1,990+ 1. 0%

3. 2%

1,970

Diabetes mellitus segment (DMS)

1,070 + 12. 3%

1. 7%

1,070

Large-sized medical equipment

4,760▲9. 5%

7. 5%

4,770

Others4,680▲6. 4%

7. 4%

4,200

63,100+ 9. 2%100. 0%61,600

TOTAL

24

Forecast highlights

Operatingprofit+6.3% YoY

Gross profit margin(¥mil)

3,250

13.2% +0.1pt YoY- Aim to recover through bulk purchasing and volumediscounts- Minimal impact from Tesco Akita

SG&A- Revised reflecting Tesco Akita- Estimated total number of employees
447 → 531 (OE 491)

3,058(Mar 2017)

FY 3/2017+12.4% YoY(Mar 2018)

FY 3/2018E25

Forecast highlights

Net profit+4.2% YoY

Goodwill on Tesco Akita under assessment(¥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

Ｄｉｖｉｄｅｎｄｓ

Dividends

We aim at
Over 30% payout ratio
Dividends FY ending March 2018

27

yen27

Share price(Yen)Sep 2014
TSE 1st section

1,500

1,300

Effective on
January 1st, 2017

May 2014
TSE 2nd section

Stock split

1:2

1,100900

Dec 2013
360,000 share
selling

700

500

300

Mar 2015
1 mil share selling

prospectus
for issuance

2013
2014
2015
2016
2017
44556677889910
1112
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121234567891011
12123456789101112123451111
10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 56677889910
1028

Major products
Segment

Disease

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 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)
Operating profit

Sales
Operatingprofit:¥mil

Sales:¥mil

17,00015,00013,00011,000
9,000
7,000
5,000

2,000
15,182 1,800
14,571
14,49914,412
14,37014,023
13,90813,862
1,600
13,69013,28813,223
13,05912,582
1,400
11,957
11,407
1,200
11,63010,822
881
1,000
806
788 833 794
783
703
696 739688 739681
647 722800
595
505 545
446
600
400
200
0
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
15,547

FY to 2014/3

2015/3

2016/32017/3

2018/3= 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