®

®

Results Presentation
2Q FY March 2021
Win-Partners Co., Ltd. (3183)

2Q results ending September 2020

Consolidated results summary（¥mil）2Q toSep 2019

Sep 2020

YoYRE(Aug11)

Sales

33,144-15.9%

27,900Operating profit

1,458-43.0%

650

Recurring profit

1,455-42.5%

650

Net profit

1,047

27,883830
837
572-45.3%

450

EPS (yen)
BPS (yen)

36.48

19.95

685.41701.94

3Highlights

Sales -15.9 % YoY -0.1%
vs. RE(¥mil)

33,14427,883

Non-acute coronary disease
treatments have been postponeddue to COVID-19Absence of sales to a hospital chain
from June last year
(1Q - ¥2bn)

2Q to Sep 2019 2Q to Sep 2020

Reimbursement price revision inOctober 2019 & April 2020
(84.3% agreed as at September)

4

Sales impact
by the reimbursement price revision
Assumed impact(%)

Segment

2019(Oct)※1 2020(Apr)※2

Percutaneous Coronary Intervention (PCI)

-6.1

-3.7

Cardiac Rhythm Segment (CRS)

-3.3

-1.2

Cardiac Vascular Segment (CVS)

-0.6

-0.4

Percutaneous Peripheral Intervension (PPI)

-4.2

-0.8

Brain Surgery

-0.2

-1.3

Others-0.3

-0.1

-2.8

-1.5

Total

※1: Calculated based on sales mix/volume in the 2nd half to September 2018
※2: Calculated based on reimbursement prices revised in October 20195

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

720
2,950
3,990
3,120
124
649
1,320
1,110

- 13.4
- 3.0
- 3.6
2.0
- 6.8
1.9
1.51.8

4,430

4,510

4,510

1.8

3,670
60
179
229

3,740
56
175
233

3,740
55
174
233

1.9
- 8.8
- 2.8
1.7

38
173
84

2020
Change %('18 vs '20)
(Apr)
35
- 21.8161- 16.680- 10.36

Impact from COVID-19
The number of cases have been on a recovery trend
since the bottom in May- Some of non-acute (COVID-19 irrelevant) coronary disease treatments havebeen postponed and infection-avert outpatients have decreased, which hasresulted in a sharp drop in the number of cases for PCI, CRS and CVS- Sales activity has been limited in order to prevent the infection spread
YoY change in the number of cases

in major segments
20.0%

CRSPCICVS

0.0%
0.0%

-20.0%-40.0%
AprMayJunJulAugSep7Sales breakdown by segment
Sales(¥mil)

YoY growth (%)
Volume% of sales

Value(%)

Change (pp)Percutaneous coronary intervention (PCI)

7,514

-17.6

-23.7

26.9

-2.8

Cardiac rhythm segment (CRS)

7,834-4.9

-12.4

28.1

+1.1

Cardiac vascular segment (CVS)

4,029-11.0-13.7

14.5

+0.4

Percutaneous peripheral intervention (PPI)

1,632-3.5-8.7

5.9+0.5

Brain surgery

1,264-7.8-4.4

4.5+0.5

Diabetes mellitus segment (DMS)

1,168-+10.2

4.2

+1.0

Large-sized medical equipment

1,194-

-40.2

4.3

-1.7

Others3,244-

-7.6

11.6

+1.0

27,883--15.9 100.0

Total

8

Segment review（vs. forecast)

P C I

suffered from the lower number of cases, decreased sales
to a major customer and the reimbursement price revision

C R S

suffered from the lower number of cases, decreased sales
to a major customer. ABL sales recovered in Q2

C VS

suffered from the lower number of cases and decreased sales
to a major customer. TAVI sales recovered in Q2

P P I

suffered from the lower number of cases for arteriosclerosis
obliterans. The number of cases for shunt continued to increase

L a r g ee q u i p‐ m e n t

saw customers delaying decision-making for equipment toinstall due to Covid-19

DMS

saw sales of blood glucose measuring equipment increased
9Highlights

Operating-43% YoY +27.8%
profitvs. RE

Gross profit margin 12.4%(-0.3pp YoY)(¥mil)

1,458- Sales volume decreased due to the lower numberof cases- Sales mix changed

SGA -5% YoY
830- Labor cost -0.8% YoY- Number of employees :548(Sep 2019)→546(Sep 2020)

vs. forecast
2Q to Sep 2019

2Q to Sep 2020

- OP exceeded the revised forecast because GPM
didn’t fall as much as expected and SGA expenses
were below forecast
10Consolidated income statements
2Q toSep 2019(¥mil)

Sep 2020(%)(¥mil)(%)

33,144100.0

27,883

100.0

Cost of sales

28,93487.324,438

87.6

Gross profit

4,210

12.7

3,444

12.4

SG&A expenses

2,751

8.3

2,613

9.4

Operating profit

1,458

4.4

830

3.0

Non-operating profit

60.0

60.0

Non-operating expenses

80.0

0

0.0

1,455

4.4

837

3.0

Extraordinary profit

82

0.2

0

0.0

Extraordinary loss

00.0

0

0.0

1,538

4.6

837

3.0

491

1.5

264

0.9

1,047

3.2

572

2.1

Sales

Recurring profit

Pretax profit
Taxes

Net profit

11Consolidated balance sheet
Mar 2020

Sep 2020

Change(¥mil)(%)(¥mil)(%)(¥mil)

91.9
45.3
38.0
6.7
2.0
8.1

32,21488.3-3,285

15,862
13,329
2,368
654

43.5
36.5
6.5
1.8

-1,632-1,336-202-112

Fixed assets

35,49917,495
14,666
2,571
767
3,132

1,123

Total assets

38,632100.0

Current liabilities

Fixed liabilities

17,09815,899
435
762
1,029

44.3
41.2
1.1
2.0
2.7

4,256 11.7
36,471 100.0
15,243 41.8

Total liabilities

18,127

46.9

Net assets

20,505

53.1

Total liabilities,net assets

38,632100.0

Current assets
Cash and deposits
Accounts receivable
Inventories
Other current assets

Accounts payable
Taxes payable
Other current liabilities

14,342
293
607-2,161-1,85439.3
0.8
1.7-1,557-142-155

3.0
1,076
16,319 44.7
20,151 55.3
36,471 100.0

47-1,807-354-2,161

Land for
distribution
center
(Y1bn)

つ12Consolidated cashflow statements
Sep 2019

Sep 2020

Cash flows from operating activities

2,144508

Net profit before taxes
Depreciation
Notes and accounts receivable
Inventories
Notes and accounts payable
Tax paid
Other1,538
94
3,214
129-2,282-513-37837
94
1,336
203-1,557-367-39

Cash flows from investing activities-16-1,193Purchase of tangible assets
Other-65
49-1,125-68

Cash flows from financing activities

-918

-947

Cash dividends paid

-918

-947

Net increase in cash and cash equivalents

1,209

Cash and cash equivalents at beginning of FY

10,289Cash and cash equivalents at the end of 2Q

11,499-1,632
12,495
10,862(¥mil)

2Q to13

OutlookProgress of what WIN plans to do① Compress idle inventories
Progressing➁ Acquire new customers
Not progressing as planned due to Covid-19. Focusing instead on increasing customer
share

③ M&A
Ongoing examination for the sake of future growth④ Focus on CRS
Sales recovering. 100 of CDRs (Cardiac Device Representatives) achievable by
the end of 3/21

⑤ Logistic revolution (separation of shipment procedure)
Partly utilizing RPA in the procurement process. Land for the new distribution center
obtained. Development of a new distribution system commenced15

Site for New Distribution Center
Shinagawa
StationTokyo International
AirportSite for newdistribution center
Distribution facilitiesof medical device
manufacturers（source: Win ）Location: Ota ward, Tokyo (c.400 tusbo=c.1,320 sq.m.)
Cost：c.Y1bn16

Win’s sales offices and sub-branches
in the Tokyo metropolitan area

SaitamaTokyoChiba

Yokohama

Site for new distribution center17

Consolidated Earnings Forecasts to March 2021
Sales
Operating profit
Recurring profit
Net profit
EPS (yen)
DPS (yen)(¥mil)YoY (%)

59,000
2,000
2,000
1,370
47.72
34.00

-8.6
-24.5
-24.7
-26.8

18

Highlights

Sales(¥mil)

64,53759,000FY 3/2020-8.6 %YoY

The number of cases hit thebottom, but the pace of recovery
in the outpatients and referral
patients remains slow
Impact from the reimbursement
price revision (2nd half)(-1.5%: c. Y500m)

FY 3/2021E
19

Sales breakdown by segment(¥mil)

YoY(%)

Percutaneous coronary intervention (PCI)

16,420-13.4

Cardiac rhythm segment (CRS)

16,180-6.9

Cardiac vascular segment (CVS)

8,220-10.4

Percutaneous peripheral intervension (PPI)

3,270-6.2

Brain surgery

2,350

-10.5

Diabetes mellitus segment (DMS)

2,380

+8.5

Large-sized medical equipment

5,440+39.4

Others4,740-30.5

59,000-8.6

Total20Highlights

OperatingYoY-24.5%profit(¥mil)

2,649
2,000

Forecast of gross profit margins:
12.8%, ( +0.1pp YoY, unchanged fromthe revised forecast)-FY 3/2020

FY 3/2021E

Improvement in profit margins on the large-sized
equipment
Intensifying the rebate programs with suppliers

SG&A ¥5.5bn (+0.3% YoY, unchangedfrom the revised forecast)-

Forecast of the number of employees
541(Mar 2020) → 581 (Mar 2021)

21Highlights

Net profit(¥mil)

1,872
1,370

-26.8%
Capex ¥YoY

1.1 bnvs. ¥97mil for FY 3/2020Depreciation ¥180 milvs. ¥196mil for FY 3/2020
FY 3/2020

FY 3/2021E
22

Dividends

payout ratio (%)
dividend per share (¥)

71.2

80.0%
70.0%
60.0%

50.6

33

yen

(unchanged from the initial forecast)

50.0%

34

40.0%
30.0%
20.0%
10.0%
0.0%

FY 3/202034()

Payout ratio
71.2%

FY 3/2021E
23

Reference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)25

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

Operating profit
Operatingprofit:¥mil

Sales:¥mil20,00015,000

10,00019,1352,000
18,776
17,076
16,874
16,067
15,547
16,204 15,988
15,94615,182
14,49915,447
14,412
15,87515,039 1,500
13,908
14,571
13,862
14,023
14,37013,05913,69013,288
1,062
13,223
12,843
11,957
12,582922
11,407
881
842
833
1,000
806
805
794783757
10,82273911,630
739 788

505 545688

647

722595

681

703

696

446

712

564700588 602

542
287

5,000

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 1Q 2Q
FY 2014/3

FY 2015/3

FY 2016/3

FY 2017/3

FY 2018/3

FY 2019/3

FY 2020/35000

FY 2020/3= Year of reimbursement price revisions

26

Share price(Yen)

1,900

May 2014
TSE 2nd section
1,600

Sep 2014
TSE 1st section
1,300 Dec 2013

Effective on
January 1st, 2017

360,000
Share selling

Stock split 1 : 2

1,000700

Mar 2015
1 mil share selling

株式売出目論見書4002013
2014
2015
2016
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2018
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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