®

®

Results Presentation
3Q FY March 2020
Win-Partners Co., Ltd. (3183)

3Q results ending December 2019

Consolidated results summary（¥mil）3Q toDec 2018

Dec 2019

YoY

Sales

50,640-4.0%

Operating profit

2,199

Recurring profit

2,198

Net profit

1,850

EPS (yen)
BPS (yen)

64.46

48,591
2,046
2,045
1,449
50.50
701.09654.21-6.9%-7.0%-21.7%－－3

Highlights

Sales - 4 %YoY-7.3% in like-for-like sales(¥mil)

50,64048,591(excluding MCI consolidated since lastDecember)

Sales to a hospital chaindecreased from June(particularly PCI, CRS, CVS)

3Q to Dec 2018

3Q to Dec 2019

Reimbursement price revision
since October(59% agreed as at December)
4

Sales impact
by the reimbursement price revision
Segment

Assumedimpact(%)

Percutaneous Coronary Intervention (PCI)-6.1

Cardiac Rhythm Segment (CRS)-3.3

Cardiac Vascular Segment (CVS)-0.4

Percutaneous Peripheral Intervension (PPI)-4.1

Brain Surgery-0.4

Others

-0.2

Total

-2.7

Note: Calculated based on reimbursement prices, sales volume and product mix on 2H to FY 3/20195Outline of the reimbursement
price revision
Segment

PCIItems

PPI

2019(Oct)
38
173
84

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

- 14.3- 10.4
- 5.9
- 8.2
- 3.0
- 3.6
2.0
- 5.3
1.9
1.5
1.8

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

4,430

4,510

1.8

Heart valve for TAVI (self-expandable)
PTA Ballon Catheter
Peripheral Vascular Stent
Peripheral DES (Drug Eluting Stent)

3,670
60
179
229

3,740
56
175
233

1.9- 7.3- 2.2
1.7Pacemaker
ICD (Implantable Cardioveter Defibrillator)

CVS

2018(Apr)

Change (%)

45
193
89

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

CRS

Reimbursement prices (¥000)

CRTD (Cardiac Resychronization Therapy Difibrillator)

Subcutaneous Implantable Defibrillator (S-ICD）
Ablation Catheter
Cardiac CryoAblation Catheter
Stent graft (abdomen）
Open Stent graft

6

Sales breakdown by segmentSales(¥mil)

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

Change (pt)Percutaneous coronary intervention (PCI)

14,512-8.6-8.3

29.9-1.4

Cardiac rhythm segment (CRS)

13,091-5.0-0.5

26.9+1.0

Cardiac vascular segment (CVS)

7,032-6.1-2.7

14.5+0.2

Percutaneous peripheral intervention (PPI)2,644+2.2+4.8

5.4+0.5

Brain surgery

1,974+4.6+9.0

4.1+0.5

Diabetes mellitus segment (DMS)

1,642-+20.8

3.4+0.7

Large-sized medical equipment

2,543--33.1

5.2-2.3

Others5,149-+4.2

10.6+0.848,591--4.0 100.0

TOTAL

7

Segment review

PCI

suffered from decreased sales to a major customer and the reimbursement
price revision

C RS decreased sales to a major customer resulted in lower sales of main products
CVS

decreased sales to a major customer resulted in lower sales of main products

P P I sales of DCB (drug coating balloon catheter) and peripheral DES increaseda reaction from large-scale orders last year
8Highlights

Operatingprofit- 6.9% YoY(¥mil)

2,199
2,046

Gross profit margin improved to12.7% (+0.4pp)- Contribution from MCI- Cost reduction by bulk purchase- Improved profit margin on large-sized equipment

SG&A rose 2.1%
3Q to Dec 2018

3Q to Dec 2019

- Including increased labor cost (+4.1%)- Number of employees : 538 (Dec 18) → 550 (Dec 19)9Highlights

Net profit - 21.7% YoY(¥mil)

Absence of negative goodwill- ¥278mil to FY3/2019

1,850
1,449

3Q to Dec 2018

Extraordinary profit- ¥82mil from silent partnership investment (MCI)

3Q to Dec 201910

Consolidated income statements
Dec 2018(¥mil)

Dec 2019(%)(¥mil)(%)

50,640100.0

48,591

100.0

Cost of sales

44,40687.7

42,42487.3

Gross profit

6,233

12.3

6,167

12.7

SG&A expenses

4,034

8.0

4,120

8.5

Operating profit

2,199

4.3

2,046

4.2

Non-operating profit

50.0

80.0

Non-operating expenses

50.0

10

0.0

2,198

4.3

2,045

4.2

Extraordinary profit

279

0.6

820.2

Extraordinary loss

20.0

0

0.0

2,475

4.9

2,128

4.4

625

1.2

678

1.4

1,850

3.7

1,449

3.0

Sales

Recurring profit

Pretax profit
Taxes

Net profit11Consolidated balance sheet
Mar 2019

Dec 2019

Change(¥mil)(%)(¥mil)(%)(¥mil)

92.1
38.3
46.0
5.9
1.9
7.9

35,24991.8-1,50517,047
14,502
2,794
904

44.4
37.8
7.3
2.4

1,757
-3,859459
137

Fixed assets

36,754
15,28918,361
2,335
767
3,156

-28

Total assets

39,910100.0

Current liabilities

Fixed liabilities

19,43918,168
484
786
924

48.7
45.5
1.2
2.0
2.3

8.2
3,128
38,377 100.0
17,262 45.0

Total liabilities

20,36351.0

Net assets

19,54749.0

Total liabilities,net assets

39,910100.0

Current assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Accounts payable
Taxes payable
Other current liabilities

16,430240
591-1,533-2,177

42.8
0.6
1.5

-1,738
-244
-194

2.6
988
18,250 47.6
20,127 52.4
38,377 100.0

63-2,113580-1,53312

Outlook

Measures for earnings recovery① New customer acquisition
Opened Yamato branch office in Kanagawa pref. (July)
Expansion in Shizuoka, Sapporo, Akita and new regions (Organic & M&A)

② Expanding sales in existing customers
Replacement demand for large-sized equipment③ Gross margin improvement
Increasing items for bulk purchase④ Tighter SG&A control
Freezing new hire of mid-careers
Number of employees : initial estimates 584 → 560 (Mar 2020)⑤ Appeal of WIN’s role & value to customers
Support to secure safety and quality at hospitals and clinics
Management support for hospitals and clinics
14

WIN’s role
Optimal choice from a wide range of medical devices,
adequate delivery and inventory control
PCI not completed with one company’s products

Stent made by CompanyＢ
PTCA balloon catheter
made by Company A
IVUS catheter made by Ｃ

Guidewire made by D
Guiding catheter made by E
Sheath made by F
Ｙconnector made by G
Indeflator made by I

Modality made by H
15

WIN’s value-added service
Support to use devices properly[Pre operation][During operation][Post operation]

Confirm operation plan

Stand by in case ofemergency

Collect and return
unused devices
Invoice, replenish
and control inventory

Select optimal devices
for each clinical caseExplain how to usedevices properly,
determine specification,and deliver

PTCA
Balloon Catheter16

WIN’s value-added service
Proposals to increase hospitals’ value[Functionalupgrading] Latest technology andproducts Capital spending foradvanced care
 Recruitment ofmedical professionals[Marketing] Research ofcatchment area
 Target areas anddomain
 Measures to gather
and increase
patients[Profitabilityimprovement] Efficient operations
 Cost reductions

17

Consolidated Earnings
Forecasts to March 2020
Sales
Operating profit
Recurring profit
Net profit
EPS (yen)
DPS (yen)(¥mil)YoY (%)(%)

64,000
2,590
2,590
1,820
63.40
33.00

-8.3

100.0

-20.6

4.0

-20.74.0-31.1

2.8

18

Highlights

Sales-8.3 %YoY

Sales to a hospital chain
decreased from June (¥7.4bn)(¥mil)

69,77564,000FY 3/20192.7% negative impact from thereimbursement price revisionin 2H (¥0.9bn)

FY 3/2020E
19

Sales breakdown by segment
FY 3/2020(¥mil)

YoY(%)% of sales

Percutaneous coronary intervention (PCI)

19,750

-7.4

30.9%

Cardiac rhythm segment (CRS)

17,180-2.5

26.8%

Cardiac vascular segment (CVS)

8,990

-8.0

14.0%

Percutaneous peripheral intervension (PPI)

3,380-2.45.3%

Brain surgery

2,390-3.9

3.7%

Diabetes mellitus segment (DMS)

2,090+14.7

3.3%

Large-sized medical equipment

4,380-34.5

6.8%

Others5,840-11.4

9.1%

64,000-8.3

100.0%

TOTAL

20

Highlights

OperatingYoY-20.6%
profitGross profit : 12.8% +0.4pp YoY(¥mil)- Price negotiation in proportion to the newreimbursement prices- Cost reduction by bulk purchasing

3,261
2,590

SG&A : ¥5.59bn +4.5% YoY- Number of employees
536 (Mar 2019) → 560 (Mar 2020E)

FY 3/2019

FY 3/2020E
21

Highlights

Net profit-31.1%

YoY

Absence of negative goodwill (¥278mil to FY3/2019)
Income from silent partnership investment (¥82mil)(¥mil)

Capex

2,640

1,820

¥130 milvs. ¥143mil for FY 3/2019
Depreciation¥220 milvs. ¥237mil for FY 3/2019
FY 3/2019

FY 3/2020E
22

Dividends
FY ending March 2020
Initial estimate unchanged

payout ratio (%)
dividend per share (¥)

52.0
34.8

33
32

FY 3/2019

33yen（)payout ratio
52%

FY 3/2020E
23

New product
Boston Scientific‘WATCHMAN™’
Left atrial appendage closure device
Device to prevent migration ofblood clots, reducing the riskof stroke and systemicembolismFeb 2019：ApprovalSep 2019：Launch with reimbursement priceLeft atrial
appendage© 2019 Boston Scientific Corporation. All rights reserved.

24

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:¥mil

20,00015,00010,0005,000

19,135
18,776
17,076
16,874
16,067
15,98815,547
16,204
15,182
14,49915,447
14,412
15,875
13,908
14,571
13,862
14,023
14,37013,05913,69013,288
1,062
13,223
11,957
12,582922
11,407881
833 794806
805 842783
757
10,822739 11,630
739 788

505 545

1Q688

647

722

595

681

703

696

446

712

564

700

2,000
1,500
1,000588
500

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

FY 2014/3

FY 2015/3

FY 2016/3

FY 2017/3

FY 2018/3

FY 2019/3

0

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

1,000

Effective on
January 1st, 2017

Dec 2013
360,000
Share selling

Stock split 1 : 2700

Mar 2015
1 mil share selling

株式売出目論見書400

2013
2014
2015
2016
2017
2018
2019
2020
91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 2 3 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 23 4 5 6 7 8 91011121 2 3 427

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