®

®

Results Presentation
1Q FY March 2020
Win-Partners Co., Ltd. (3183)

1Q results ending June 2019

Consolidated results summary（¥mil）1Q toJune 2018

June 2019

YoY(%)

Sales

15,875+7.6

Operating profit

564

Recurring profit

562

Net profit

385

EPS (yen)

13.43

17,076
757
758
519
18.09

BPS (yen)603.22666.99

+34.4
+34.9
+34.6
－－3

Highlights

Sales + 7.6 %YoY

Like-for-like sales +4.3%(¥mil)

17,076
15,875

1Q to Jun 2018 1Q to Jun 2019(excluding MCI consolidated lastDecember)

The number of PCI cases almost
stopped falling
Non-cardiac categories achieved
double-digit growth4Sales breakdown by segment
Sales(¥mil)

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

Change (pt)Percutaneous coronary intervention (PCI)

5,372

+0.1

+1.1

31.5-2.0

Cardiac rhythm segment (CRS)

4,664+1.9+5.5

27.3-0.5

Cardiac vascular segment (CVS)

2,542-5.3+9.2

14.9+0.2

Percutaneous peripheral intervention (PPI)

954+15.3+16.9

5.6+0.4

Brain surgery

667+12.1+11.0

3.9+0.1

Diabetes mellitus segment (DMS)

508-

+22.3

3.0+0.4

Large-sized medical equipment

637-+33.8

3.7+0.7

1,728-

+15.1

10.1

+0.7

17,076-+7.6 100.0Others
TOTAL

5Segment review[vs. plan]

PCICRSCVS
PPI

saw higher sales of drug eluting balloon catheter
No.of cases almost stopped falling at existing customer basis
saw higher sales of pacemakers and EP Ablation related
products
saw higher sales of TAVI related products
Overall volume decreased due to downsizing sales ofsmaller items (e.g. needles and sutures）

saw higher sales of PTA balloon catheter

saw higher sales of large equipment for rental use
6Highlights

Operatingprofit +34.4%(¥mil)

757
564

YoY

Gross profit margin
12.8% (+0.5pt YoY)
- Cost reduction through bulk purchasing etc.
- Improvement of large equipment etc.

SG&A +3%- Labor cost (+8.5%)- Number of employees：530 → 552(June 2018)

1Q to Jun 2018

(June 2019)

1Q to Jun 20197

Consolidated income statements
1Q toJun 2018(¥mil)Jun 2019(%)(¥mil)(%)

15,875100.0

17,076

100.0

Cost of sales

13,93287.8

14,89887.2

Gross profit

1,942

12.2

2,178

12.8

SG&A expenses

1,378

8.7

1,420

8.3

Operating profit

564

3.6

757

4.4

Non-operating profit

10.0

10.0

Non-operating expenses

20.0

00.0

562

3.5

758

4.4

Extraordinary profit

00.0

00.0

Extraordinary loss

10.0

0

0.0

561

3.5

758

4.4

Taxes

175

1.1

239

1.4

Net profit

385

2.4

519

3.0

Sales

Recurring profit

Pretax profit

88Consolidated balance sheet
Mar 2019(¥mil)(%)

Fixed assets

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

92.1
38.3
46.0
5.9
1.9
7.9

Total assets

39,910100.0

19,439Accounts payable
18,168
Taxes payable
484
Other current liabilities
786
Fixed liabilities
924

48.7
45.5
1.2
2.0
2.3

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

Current liabilities

Jun 2019

Change(¥mil)(¥mil)(%)

36,32792.1-426

15,202
17,777
2,149
1,197

38.5
45.1
5.5
3.0-87-584-185
430

3,109
39,437
19,341

7.9

-46

100.0
49.0-473-98

17,411
259
1,670

44.1
0.7
4.2

-757
-225
884

947
20,28919,14839,437

2.4

23-74-398
-473

51.4
48.6
100.0

9

Outlook

Consolidated Forecasts to March 2020

Sales
Operating profit
Recurring profit
Net profit
EPS (yen)
DPS (yen)(¥mil)YoY (%)

initial E(¥mil)

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

-8.3

71,000

-20.6

3,300

-20.7

3,300

-31.1

2,260
78.72
33.00
11Factors for earnings revision
Sales revised down by ¥7bn
① Pricing pressure from customers
Sales to a major customer (a hospitalchain) shrunk significantly from June（¥6.4bn）② Updated impact ofreimbursement price cuts in Oct
Initial assumption -1％→ ‐2.8％（¥0.6bn）

12

Sales impact by the reimbursement
price revision
Segment

Estimatedimpact(%)

Percutaneous Coronary Intervention (PCI)-6.1

Cardiac Rhythm Segment (CRS)-3.3

Cardiac Vascular Segment (CVS)-0.6

Percutaneous Peripheral Intervension (PPI)-4.2

Brain Surgery-0.2

Others-0.3Total-2.8

Note: Calculated based on assumed reimbursement prices, actual sales volume and product mix on FY 3/2019
13

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

YoY(%)

Initial (¥mil)

Percutaneous coronary intervention (PCI)

19,750-7.4

22,780

Cardiac rhythm segment (CRS)

17,180-2.5

19,460

Cardiac vascular segment (CVS)

8,990

-8.0

10,500Percutaneous peripheral intervension (PPI)

3,380

-2.4

3,800

Brain surgery

2,390-3.9

2,490

Diabetes mellitus segment (DMS)

2,090

+14.7

2,050

Large-sized medical equipment

4,380-34.5

4,540

Others5,840-11.4

5,380

64,000-8.3

71,000TOTAL

14Measures for earnings recovery① New customer acquisition
Opened Yamato branch office in Kanagawa pref.（July）
Cultivate market in Sapporo, Akita, Shizuoka, and new regions
Accelerate M&A②

Appeal of our value to customers
Promote our services to secure safety and quality at clinical site
and increase the value of hospital③

Gross margin improvement
Expand categories and items for bulk purchasing④Tighter SG&A control
Freeze new hire
Number of total employees initial E 584 → 560 (March 2020E)
15

Our 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
depending on clinicalcases
Explain how to use
devices properly,determine sizes, anddeliver

PTCA
Balloon Catheter

16

Our value-added service
Support to increase hospital value[Functionalupgrading]Proposal of the latest
technology and products
Proposal of capitalspending for advanced careSupport to recruit
medical professionals[Marketing]Research ofcatchment area
Proposal of target
areas and fields
Proposal of measures togather and increase
patients[Profitabilityimprovement]
Proposal for efficientoperations
Proposal for cost
reductions

17

Ｄｉｖｉｄｅｎｄｓ

Dividends

FY ending March 2020
Initial estimate unchanged

33 （yen)payout ratio
52%18

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)19

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

Operating profit

Operatingprofit:¥mil

Sales:¥mil

20,00015,00010,0005,000

19,1352,000
18,776
16,874
17,076
15,988
16,204
15,547
15,182
15,875
14,49914,412
1,500
14,571
14,37013,90813,862
14,023
13,05913,288
1,062
13,69013,223
11,957
12,582922
881
833 794
11,407806
805 842
11,630783
757 1,000
739 788722712703
696
688 739
10,822681
647595564
505 545446
500

1Q2Q 3Q 4Q 1Q

2Q 3Q 4Q 1Q

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

FY 2014/3

FY 2015/3

FY 2016/3

FY 2017/3FY 2018/3

FY 2019/3

0

FY 2020/3= Year of reimbursement price revisions

20

Share price(Yen)

1,900

May 2014
TSE 2nd section
1,600

Sep 2014

TSE 1st section
1,300

1,000

Effective onJanuary 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
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 7 8 91011121 2 3 4 5 6 7 821

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