STOCK CODE：3183

November 2014

RESULTSPRESENTATION
2Q FY March 2015
WIN-Partners Co., Ltd.

2Q Results for FY March 2015

Ｉｎｔｅｒｉｍ ＴｏｐｉｃApril ・Reimbursement prices revised

・Integrated two sales offices in Fukushima pref.
May ・Altered to TSE 2nd section from JASDAQ

June ・Opened a branch in Hiroshima pref.
Aug ・Opened a branch in Kumamoto pref.
Sept ・Assigned to TSE 1st section

・Moved and expanded capacity ofTESCO HQ and warehouse3Ｃｏｎｓｏｌｉｄａｔｅｄ Ｒｅｓｕｌｔｓ Ｓｕｍｍａｒｙ

Interim Profitsin line with forecasts
2Q to4

Sep 2013 (¥mil)

Sep 2014 (¥mil)

YoY

OE (¥mil)Sales

22,23023,590+6.1%

24,342

Operating profit

1,051

1,093

+4.0%

1,060

Recurring profit

1,059

1,101+4.0%

1,063

Net profit

1,021706▲30.8%

651

EPS (yen)

71.14

49.20

－

45.41

BPS (yen)726.27801.05－－

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｉｎｃｏｍｅ Ｓｔａｔｅｍｅｎｔｓ
２Q to

Sep 2013 (¥mil)(%)

Sep 2014 (¥mil)

(%)

Sales

22,230100.0

23,590100.0

Cost of sales

19,22686.5

20,45386.7

Gross profit

3,003

13.5

3,136

13.3

SG&A expenses

1,952

8.8

2,043

8.7

Operating profit

1,051

4.7

1,093

4.6Non-oprating profit

80.0

80.0

Non-oprating expenses

00.000.0

Recurring profit

1,059

4.8

1,101

4.7

Extraordinary profit

377

1.7

40.0

Extraordinary loss

00.0

00.0

Pretax profit

1,435

6.5

1,105

4.7

414

1.9

399

1.7

1,021

4.6

706

3.0

Taxes

Net profit
5Ｏｕｔｌｉｎｅ ｏｆ Ｒｅｉｍｂｕｒｓｅｍｅｎｔ Ｐｒｉｃｅ Ｃｕｔｓ

Impact on group sales ▲5.7%
Reimbursement Prices (1,000 yen)
2012

Impact on Sales (%)--▲8.5

PTCA Ballon Catheter

7967▲14.9DESDrug Eluting Stent

295261▲11.5IVUSIntravascular Ultrasound Catheter

115109▲5.2--▲4.6Pacemaker

1,000827

▲17.3

ICD

Implantable Cardioverter Defibrillator

3,060

2,970

▲2.9

CRT-D Cardiac Resynchronization Therapy Difibrillator

4,090

4,040

▲1.2

158

149

▲5.7--

▲2.0

1,520

1,510

▲0.7-

-

▲5.6--▲1.2--▲5.7

Percutaneous Coronary Intervention (PCI

Cardiac Rhythm Segment

CRSAblation Catheter

Cardiac Vascular Segment

CVS

Stentgraft(Abdomen

Percutaneous Peripheral Intervention
Brain Surgery

62014TOTALPPIＯｕｒ Ａｐｐｒｏａｃｈ• Negotiated selling and procurement prices to reflect
new reimbursement prices.
Reached agreement with 99% customers andsuppliers.
• Implemented new procurement scheme.
(Bulk purchasing of PTCA balloon catheters)• Integrated duplicated sales offices and opened
small branches in western Japan.
7

Ｒｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Sales
YoY
前期比+6.1%
vs.計画比plan ▲3.1%

Sales fell short but
achieved YoY growth

25,00024,80024,60024,40024,20024,00023,80023,60023,400( ¥mil )23,20023,00023,590• Positives
Favorable sales of CRS, CVS
and large sized-equipment etc.

22,80022,600
22,40022,20022,00021,800• Negatives
Sales of PCI and PPI increasedin terms of volume, but failed tooffset price declines.

22,23021,60021,40021,20021,00020,80020,60020,40020,20020,000

2Q to Sep 2013

82Q to Sep 2014

Ｓｅｇｍｅｎｔ Ｒｅｖｉｅｗ

Consolidated Sales Breakdownbｙ Segment
Segment
Percutaneous Coronary Intervention

YoY Growth %2Q to Sep 2014

VolumeValue% ofsales

10,003

+0.7

▲ 0.3

42.4

Cardiac Rhythm Segment

CRS

4,634

+26.9

+10.7

19.6

Cardiac Vascular Segment

CVS3,305▲ 7.2+15.5

14.01,309+5.3▲ 3.3

5.5760

+13.0

+10.5

3.2278-

+10.8

1.2

Large-sized Medical Equipment

1,586-+23.6

6.7

Others

1,712-+8.9

7.3

23,590-+6.1

100Percutaneous Peripheral Intervention
Brain Surgery
Diabetes Mellitus Segment

TOTAL

9PCI

Sales (¥mil)

DMSPPI(note: Due to accounting standard changes on Others segment , historical numbers were modified for comparison)

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｓａｌｅｓ Ｂｒｅａｋｄｏｗｎ
Large-sized
Medical Equipment：7%

Diabetes MellitusSegment （DMS)：1%
Brain Surgery：3%

Others：7%

PercutaneousCoronaryIntervention（PCI）：42%

Percutaneous
Peripheral
Intervention（PPI）：6%

Cardiac Vascular
Segment （CVS）：14%
10

Cardiac Rhythm Segment （CRS）： 20%

Ｓｅｇｍｅｎｔ Ｒｅｖｉｅｗ
PCI suffered from delayed new customer acquisitions under slower market growth.
Sales of main DES (drug eluting stents) rose only 5% in terms of volume andcould not offset price decline.

CRS enjoyed strong sales of EP ablation, favorable sales of MRI-conditional
pacemaker, ICD, CRTD, and new customer acquisition.

CVS enjoyed strong sales of stent graft.
TAVI (Trans Catheter Aortic Valve Implantation) achieved 47 procedures.
Segment sales fell short slightly due to decreased procedures of
on-pump CABG (coronary artery bypass graft).

PPI suffered from lower sales of peripheral vascular stents despite favorable
PTA balloon catheters for dialysis access shunts.

LargeEquipment enjoyed higher demand relating to constructions
and renovations of medical facilities etc.

Others enjoyed higher demand for gastrointestinal endoscopy etc.
11Ｒｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

OperatingprofitAchieved initial forecast bycontrolling SG&A expenses

前期比

YoYvs.
plan（２社合算 前期比）
1,150+4.0%+3.1%

1,100( ¥mil )

1,093

1,050

1,051
1,000

Gross profit margin

13.3％
vs. plan +0.1ppt
・Cost reductions
by bulk purchasing ofPTCA balloon etc.

YoY ▲0.2ppt
・Lower sales of profitable
PCI・PPI・Lower margin of CVS
due to new customer
acquisitions and higher
sales of less profitablestent graft etc.

SG&A to sales

8.7%

950

900

122Q to Sep 2013

2Q to Sep 2014

vs. plan・ YoY ▲0.1ppt

Ｒｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Net Profit
YoYvs. plan
（２社合算 比）
1,200

30.8%
+8.4%▲¥196 mil negative goodwill

1,100

1,000

900

1,021

( ¥mil )

800

700

706

600

500

400

300

13

Absence of merger-related
extraordinary profits lastyear

2Q to Sep 2013

2Q to Sep 2014¥180 mil valuation profit of TESCO
sharesＣｏｎｓｏｌｉｄａｔｅｄ Ｂａｌａｎｃｅ Ｓｈｅｅｔ
Mar 2014(¥mil)(%)(¥mil)(%)

23,92288.8

21,42986.7

8,563
13,798
1,124
436

31.8
51.2
4.2
1.6

6,328
12,383
1,943
774

25.6
50.1
7.9
3.1

3,011
26,934
15,326

11.2

13.3

100.0

100.0

56.9

3,291
24,721
12,817

14,276
500
549

53.0
1.9
2.0

12,018
371
428

48.6
1.5
1.7

374
Total Liabilities
15,701Net Assets
11,233
Total Liabilities, net assets
26,9341.4

404
13,222
11,49824,721

1.6

Current Assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Fixed Assets
Total Assets
Current Liabilities
Accounts payable
Taxes payable
Other current liabilities

Fixed Liabilities

14

Sep 2014

58.3
41.7
100.0

Bulk
purchasing
前期増税前のof 大型機器のcatheters etc.
駆込み需要の影響

51.9

53.5
46.5
100.0

Affected byhigher sales oflarge equipment
before tax rise
last yearＣｏｎｓｏｌｉｄａｔｅｄ Ｃａｓｈｆｌｏｗ Ｓｔａｔｅｍｅｎｔｓ(Million yen)(¥mil)

2Q to Sep
2013

2Q to Sep2014

738 ▲1,288

Cash flows from operating activities
Net profit before taxes
Depreciation
Negative goodwill
Equity valuation profit
Notes and accounts receivable-trade
Inventories
Notes and accounts payable-trade
Income tax paid

1,435108▲196▲1801,154▲119▲898▲599

Cash flows from investing activities▲335

Purchase of property and epuipment
Others▲295▲40

Cash flows from financing activities▲355▲355

Cash dividends paid

1,105123
1,415▲819▲2,257528▲486▲436▲50▲459▲459

Cash and cash equivalents at beginning of the FY

47 ▲2,235
4,611
8,563

Net increase in cash and cash equivalents from joint share transfer

2,269

-

Cash and cash equivalents at the end of 2Q

6,928

6,328

Net increase in cash and cash equivalents

15

TESCO’s new HQ and warehouse

Full Year Forecasts to March 2015

Ｆｕｌｌ Ｙｅａｒ Ｆｏｒｅｃａｓｔｓ ｔｏ Ｍａｒｃｈ 2015

Initial Forecasts unchanged
FY March 2015(¥mil)(%)

17EYoY(%)

Sales

51,000100.0+2.4

Operating profit

2,573

5.0+3.8

Recurring profit

2,578

5.1+3.2Net profit

1,659

3.3

▲9.9

EPS (yen)

115.59－▲9.9

DPS (yen)

35.0

－+9.4

Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Sales
+2.4%
（YoY）

53,00052,00051,000( ¥mil )51,00050,00049,00048,00049,82642,34647,000Measures to achieve initial
forecasts• Expand marketing to new areas
including Hiroshima, Kumamotoand Hakodate city
• Acquire new customers for PCI,CVS and CRS etc.
• Involve in medical facility projects andgain large-sized equipment orders

46,00045,00044,000FY 3/2014

18FY 3/2015(E)

Revised segment breakdown,factoring interim situation

Ｓａｌｅｓ Ｆｏｒｅｃａｓｔｓ ｂｙ Ｓｅｇｍｅｎｔ （Ｒｅｖｉｓｅｄ）

Segment

FY March 2015E

GrowthYoY(%)(¥mi l )(%)

Percutaneous Coronary Intervention (PCI

21,39041.9+1.7

Cardiac Rhythm Segment CRS

9,750

19.1+13.3

Cardiac Vascular Segment CVS

7,040

13.8+6.7

Percutaneous Peripheral Intervension PPI

2,690

5.3+0.0

Brain Surgery

1,570

3.1+5.3620

1.2+20.3

Large-sized Medical Equipment

4,550

8.9

▲ 24.9Others3,390

6.6+19.6

51,000100.0+2.4

Diabetes Mellitus Segment

19TOTALDMSＤｉｆｆｅｒｅｎｃｅ ｆｒｏｍ Ｉｎｉｔｉａｌ Ｆｏｒｅｃａｓｔｓ(¥mil)+753

900700+358

500
300100PCIPPICVS DMS +53-100▲257-300+428

Brain Others CRS Large▲38 Surgery
Equip ment-500-700-900718▲

PCI
20▲579PPICVS

DMS

脳外科

その他

CRS

大型機械

Ｈｉｇｈｌｉｇｈｔｓ ｏｆ ｔｈｅ Ｒｅｖｉｓｉｏｎ

PCI expects to gain new customers, but not offset interim shortfall.
PPI expects continuous sluggish peripheral vascular stents despite
favorable PTA balloon catheters for dialysis access shunts.

CVS expects strong sales of stent graft andTAVI ( Trans Catheter Aortic Valve Implantation ),but not offset interim shortfall.

LargeEquipment expects higher renewal demand forsmaller projects, despite negative YOY growth after tax rise.

CRS expects strong sales of EP ablation and successful new customeracquisitions.

Others expects higher demand for gastrointestinal endoscopies
and maintenance etc.
21Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

OperatingProfit

+3.8%
（YoY）

Gross profit margin

vs. plan ▲0.2ppt
・Product mix changes

2,650

including lower PCI
and PPI
2,550

2,450

2,350

( ¥mil )13.1％＊Revised

2,573

YoY +0.3ppt
・Cost cuttings by bulk purchasingof PTCA balloon catheters andDES (drug eluting stents) etc.

・Higher rebates frommanufacturers through volumesales etc.

2,479

SG&A to sales

2,047＊Revised
2,250

vs. plan ▲0.3ppt
2,150

FY 3/2014

22

FY 3/2015 (E)8.0%
YoY +0.1ppt

Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Net Income

▲9.9%
（YoY）

Absence of merger-related
extraordinary profits

1,900

1,850

1,800

1,840

( ¥mil )Capex・Depreciation

Capex¥ 690 milvs. ¥960 mil for FY March 2014

Depreciation

1,750

1,700

1,650

1,659
1,600

¥ 270 milvs. ¥240 mil for FY March 2014

1,550

FY 3/2014

23

FY 3/2015(E)Ｃｒｅａｔｉｎｇ Ｓｙｎｅｒｇｉｅｓ ｉｎ Ｐｒｏｇｒｅｓｓ

FY 3/2014
Improve groupmanegement framework
Strengthen TESCO's
governanceIntegrate accounting
systemStrengthen sales
activities backed byinformation sharing

24

FY 3/2015
Integreate overlapped
Fukushima sales
offices (April 1st

Integrate information
systemFY 3/2016
Integrate purchasing
function

Ｅａｒｎｉｎｇｓ Ｔｒｅｎｄ

Earnings Growth set to Accelerate（¥mil）

60 （¥bn)

3,200

Sales（WIN )：LEFT

Recurring Profit：RIGHTNet Profit：RIGHT

51bn

50

2,700

2,578mil
40

2,200

30

1,700

1,659mil
201,20010700

0

200
'99/3

25'00/3

'01/3

'02/3

'03/3

'04/3

'05/3

'06/3

'07/3

'08/3

'09/3

'10/3

'11/3

'12/3

'13/3

'14/3

'15/3 (E)

(Note) Earnings are based on WIN International’s figures from FY 3/1999 to FY 3/2013 and WIN Partners’ consolidated figures for FY 3/2014 & FY 3/2015

Ｆｉｎａｎｃｉａｌ Ｒａｔｉｏｓ
ROE
20%
15%

17.5%
13.3%

10%
5%
0%
ウイン・パートナーズ

WIN-Partners

8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

6.0%

7.3%

WIN-Partners

140 (¥mil)
130
120

2.0%

0.0%
ウイン・パートナーズ Industry
業界平均
WIN-Partners
average

106

100
9080
ウイン・パートナーズ
WIN-Partners

ウイン・パートナーズ
WIN-Partners

Industry average

137

110

1.6%

1.0%

業界平均

Sales per head

3.7%

3.2%

2.0%
0.0%

ウイン・パートナーズ

業界平均

4.0%

5.0%

4.0%

3.6%

Industry average

1.0%

5.0%
3.0%

Ｎｅｔ profit margin

3.0%

Operating profit margin

ROA

業界平均
Industry
average

Operating profit per head
7 (¥mil)
654
32
10

6.8
3.0
ウイン・パートナーズ
WIN-Partners

業界平均Industry

業界平均
Industry
averageaverage

Current ratio
160%
150%
140%

156%

130%
120%

Equity ratio

Debt to equity ratio138%

110%
100%
ウイン・パートナーズ Industry
業界平均
WIN-Partners
average

280%
260%
240%
220%
200%
180%
160%
140%
120%
100%

275%

50%
40%
30%

41.7%

20%

140
140%%
WP
WIN-Partners

31.9%

10%
業界平均（WP含）Industry average0%

ウイン・パートナーズ Industry
業界平均
WIN-Partners
average※Source :WIN-Partners based on Yukashoken Houkokusho of Kawanishi HD, Yamashita Medical Instruments, Hokuyaku Takeyama HD, DVX, Medius HD, Ship Healthcare, and Japan LifelineＯｕｔｌｉｎｅ ｏｆ 2014 Ｒｅｖｉｓｉｏｎ ｏｆ Ｍｅｄｉｃａｌ Ｆｅｅ① Reimbursement price cut of devices

5.7% on sales⇒ Impact to our group: Average ▲② Stricter assessment of acute care hospitals⇒ c.30% of acute care hospitals likely to be disqualified

Polarization of hospital functions
among customer hospitals
27

① Ｓｔｒａｒａｔｅｇｉｅｓ ｔｏ Ｃｏｕｎｔｅｒ Ｐｒｉｃｅ Ｃｕｔｓ

Reimbursement prices affectour selling prices
Our Strategies(1)Ｄｏｍｉｎａｎｃｅ ｉｎ ｃａｒｄｉｏｖａｓｃｕｌａｒ ｍａｒｋｅｔ
・ Focus on growing CRS and CVS・ Increase sales volume and expand value-added products
・ Reduce procurement costs backed by higher market share(2)Ｎｅｗ ｐｒｏｃｕｒｅｍｅｎｔ ｓｃｈｅｍｅ
・ Improve GPM through bulk purchasing, taking inventoryrisk28

② Ｓｔｒａｔｅｇｉｅｓ ｔｏ ｃｏｕｎｔｅｒ ｃｕｓｔｏｍｅｒ ｃｈａｎｇｅｓ

Stricter assessment of hospital functions
likely force our customers to change status
Our Strategies(1)Ｔｏ ｃｕｓｔｏｍｅｒｓ ｔｏ ｓｔａｙ ａｓ ａｃｕｔｅ ｃａｒｅ ｈｏｓｐｉｔａｌｓ
・Support to enhance acute care functions
・Approach new customers with potentials(2)Ｔｏ ｃｕｓｔｏｍｅｒｓ ｔｏ ｔｒａｎｓｆｏｒｍ ｈｏｓｐｉｔａｌ ｆｕｎｃｔｉｏｎｓ
・Support to transform into sub-acute care hospitals etc.
29

Contacts
WIN-Partners Co.,Ltd.
Investor Relations
TEL： 03-6895-1234 FAX：03-5688-0891
HP：http：//www.win-partners.co.jp

Disclaimer
This material was prepared based on information available and views held at the time it was made. Statements inthis material that are 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, withoutlimitation, a decline in general 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 orimplied in any forward-looking statement.
With the passage of time, information in this material (including, without limitation, forward-looking statements)
could be superseded or cease to be accurate. WIN-Partners Co.,Ltd. disclaims any obligation or responsibility to
update, revise or supplement any forward-looking statement or other information in any material or generally to
any extent. Use of or reliance on the information in this material is at your own risk.

WIN A BETTER QUALITY OF LIFE