WIN A BETTER QUALITY OF LIFE
ウイン・パートナーズ株式会社.

Results Presentation
2Q FY March 2016

2Q results ending Sep 2015

Consolidated results summary
Achieved historical high（¥mil） 2Q toSep 2014

Sep 2015

YoYOE

Sales

23,590+9.7%

26,400Operating profit

1,093+16.8%

1,270

Recurring profit

1,101

25,871
1,277
1,283
937

+16.5%

1,270+32.7%

840－

58.52

－－

Net profit

706

EPS (yen)

49.20

BPS (yen)801.0565.28
891.13Our approach◆ Expand customer share◆ Acquire new customers◆ Strengthen sales structure◆ Expand bulk purchasing◆ Strengthen corporate governanceHighlights

Sales + 9.7 %vs. planYoY2.0%▲

Enjoyed higher sales from both
existing and new customers(¥mil)

25,871
23,590･Contribution from new branches
Openings in 2014：Hiroshima, Hokkaido (Hakodate)
Nagano(Saku)
Openings in 2015：Ibaraki (Mito)

2Q to Sep 2014

2Q to Sep 2015

PCI and CRS posted double-digit
growthSales breakdown by segment
Sales(¥mil)

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

change(ppt)

11,144+9.1+11.4

43.1+0.7

Cardiac rhythm segment (CRS)

5,548+18.7+19.7

21.4+1.8

Cardiac vascular segment (CVS)

3,243

▲1.6

▲1.9

12.5

▲1.5

Percutaneous peripheral intervention (PPI)

1,367+10.9+4.4

5.3

▲0.3

Brain surgery

863+4.9+13.5

3.3+0.1

Diabetes mellitus segment (DMS)358-+28.8

1.4+0.2

Large-sized medical equipment

1,254- ▲20.9

4.8▲1.9Others

2,090-+22.1

8.1+0.8

25,871-+9.7 100.0

Percutaneous coronary intervention (PCI)TOTAL

Segment review

PCI

enjoyed higher sales from both existing and new customers.
Higher number of procedures supported sales of PTCA balloon
catheter and DES (drug-eluting stent).

C RS

enjoyed strong demand from existing and new customers.
Favorable sales of EP・Ablation related products andMRI-conditional pacemaker, ICD and CRTD

CVS

suffered from reimbursement price cut of stent graft.
The number of procedures of TAVI decreased while CABG (coronaryartery bypass graft) stopped decreasing. Overall sales fell short

PPI

enjoyed higher number of procedures. Despite double digit growthof PTA balloon catheters, lower sales of high-priced peripheral
vascular stents slowed overall growthsuffered from depressed demand by increasing building costs
together with delayed sales to the second half.

Highlights

Operating+16.8%
profit
1,300

1,277

1,100

1,000

YoY

0.6%

+

Higher sales boosted operating
profit(¥mil)

1,200

vs. plan

1,093

Gross profit margin 13.3%
Flat YoY. Lower margins of large equipment and CVS offset
higher margins of PCI and CRS through bulk purchasing etc.

900

SG&A to sales 8.4%

800

【SG&A expenses】 +6.4% including labor costs (+8.4%)
700

2Q to前期
Sep 2014

2Q toSep 2015実績

【No of employees】 393(Sep2014)→417(Sep 2015)

Highlights

Net profit + 32.7 %1,000(¥mil)

900

937

800

700600706

vs. plan
YoY

11.6%

+Extraordinary profit¥263mil
・Sales proceeds of marketable securities
・Cash surrender value of insurance

500

400

Extraordinary loss
¥167mil

300

200

1000

2Q to Sep 2014前期

2Q to Sep 2015

実績

・Actuarial loss on retirement allowanceConsolidated income statements
2Q toSep 2014(¥mil)

Sep 2015(%)(¥mil)(%)

23,590100.0

25,871

100.0

Cost of sales

20,45386.7

22,42086.7

Gross profit

3,136

13.3

3,450

13.3

SG&A expenses

2,043

8.7

2,173

Operating profit

1,093

4.6

1,277

8.4

4.9

Non-operating profit

80.0

7

0.0

Non-operating expenses

00.0

0

1,101

4.7

1,283

0.0

5.0

Extraordinary profit

40.0

263

1.0

Extraordinary loss

00.0

167

1,105

4.7

1,379

0.6

5.3

Taxes

399

1.7

442

1.7

Net profit

706

3.0

937

3.6

Sales

Recurring profit

Pretax profit

Consolidated balance sheet
Mar 2015

Sep 2015

Change(¥mil)(%)(¥mil)(%)(¥mil)

Current assets

24,53788.4

24,327

89.2▲209

Cash and deposits
Accounts receivable
Inventory
Other current assets

7,238

679

26.1
52.3
7.6
2.4

7,779
13,782
2,121643

28.5
50.6
7.8
2.4

541
▲730
15
▲36

Fixed assets

3,228

11.6

10.8

▲296

Total assets

27,765

100.0

100.0

▲506

Current liabilities

14,821

53.4

2,932
27,25913,84750.8▲973

Accounts payable
Taxes payable
Other current liabilities

13,758
562

49.6
1.8
2.0

12,907424515

47.4
1.6
1.9

▲850
▲75▲47

Fixed liabilities

427

1.5

2.3

193

Total liabilities

15,248

54.9

53.1

▲779

Net assets

12,517

45.1

46.9

273

Total liabilities,
net assets

27,765100.0

620
14,468
12,791
27,259

100.0

▲506

14,5122,106499

Affected byhigher sales oflarge equipment
in March

Sale ofmarketablesecurities

Affected byhigher sales oflarge equipment
andbulk purchasingin March

Consolidated cashflow statements(¥mil)

2Q toSep2014

Sep2015

Cash flows from operating activities▲1,288791

Net profit before taxes
Depreciation
Cash surrender value of insurance
Actuarial loss on retirement allowance
Sales proceeds of marketable securities
Notes and accounts receivable
Inventories
Notes and accounts payable
Tax paid

1,105
1230001,415▲819▲2,257▲5281,379133▲93159▲169730▲16▲850▲478

Cash flows from investing activities▲486295

Sale of marketable securities
Surrender of insurance
Purchase of tangible assets

00▲436299
106▲166

Cash flows from financing activities

▲459

▲545

Cash dividends paid

▲459▲545

Cash and cash equivalents at beginning of FY▲2,2358,563541
7,238

Cash and cash equivalents at the end of 2Q

6,328

7,779

Net increase in cash and cash equivalentsCorporate Governance
Converted to a company with an audit
and supervisory committee

Increased number of outside directors
to 4, out of 9 directors
Sold some marketable securities

Outlook

Consolidated Forecasts to March 2016
Initial forecasts remain unchanged(¥mil)(%)

YoY(%)

Sales

55,500100.0+9.8

Operating profit

2,950

5.3

+13.5

Recurring profit

2,950

5.3+12.3

Net profit

1,930

3.5+14.2

EPS (yen)

134.46+14.2

DPS (yen)

41.0+7.9

Forecast highlights

Sales + 9.8 % YoY
Reflecting 2Q figures,(¥520 mil sales shortage)

Revised forecasts by segment

Full year sales breakdown by segment
RevisedYoY

OE

Percutaneous coronary intervention (PCI)

23,260+10.4%

23,160

Cardiac rhythm segment (CRS)

12,000+19.3%

11,630

Cardiac vascular segment (CVS)

6,900

+2.9%

7,780

Percutaneous peripheral intervension (PPI)

2,920

+9.0%

2,920

Brain surgery

1,820+16.0%

1,660

Diabetes mellitus segment (DMS)730+26.0%

730

Large-sized medical equipment

3,830

▲4.5%

3,580

Others

4,040

+3.8%

4,040

55,500+9.8%

55,500(¥mil)

TOTAL

Measures to achieve forecasts
PCIBrain surgery

Large equipment

CRS・Gain newcustomer hospitals
・Expand sales atnew branches

Support hospitals
to increase thenumber ofpatients

Develop hospitals’
capital spending
demand・Promote newproducts
・Offer specialist
service by newablation team(¥mil)+900

Brainsurgery

+600

Large
equip

PCI+250+160+100+300+0▲300▲600▲900CVS▲880

CVS・Gain new customer hospitals
・Promote new products(TAVI)CRS+370

Forecast highlights

Operating+13.5 % YoYprofit
Gross profit margin

SG&A to sales

13.5% +0.3ppt YoY

8.2% +0.1ppt YoY

Cost cuttings through bulk purchasing
Expand items besides PTCA balloon catheterand purchase at Win-Partners group basis
Higher rebates from manufacturers throughsales expansion

SG&A expenses +10.6% due to increasein number of employees
399 as of Mar 2015→438 （+9.8%）

Forecast highlights+ 14.2 % YoY

Net profitCapex¥320 mil vs. 503mil for FY3/2015

280 mil vs.276mil

Depreciation ¥Company overview

Company profile
Code： 3183(TSE)Head quarter： 4-24-8, Taito-ku, Taito, Tokyo 110-8558

Capital： 550 million yenBusiness： Distribution of medical devices (consolidated basis)

Board ofmanagement： Hideumi Akizawa, CEO
and 8 directors, including 4 outside directors

Subsidiaries： Win International, TESCO (100% owned)

No of employees ： 417 consolidated basis as of Sep 2015
No of shares： 15,251,655, including 897,474 tresuary shares

History

Turning point19932013

・Focused on minimallyinvasive treatment andconsolidated product items

・Merged with TESCO in
Tohoku and establisheda holding company

・Started to promote cardiac
intervention with one ofdoctors who learned in US

1983

Establishment

1973

Tokyo
Metropolitan Area

Major Areas

Miyagi andFukushima pref.

Sales trend
Growing with expansion of minimally invasive treatment
600
¥60bn
WIN International’s figures till FY 3/2013
WIN Partner’s consolidated figures after FY 3/2014
11 month figures for FY 3/1998 due to the year end change

2012
MRI
conditional
pacemaker

500
50bn

2010
Insulin pump

400
40bn

Stent graft

2006
Peripheralvascular stent

30030bn

2004

200
20bnDES

1996
100

10bn00

1993

Stent

ICD

CRTD

2013
TAVI

Business outline
Independent medical device distributor group+Medical device
manufacturers

ProductProduct!

!

Feedback ofInformation on
product usage

suppliers

Information on
product usage

Medicalinstitutions

customers

Features of business model1 Downside risk of selling prices High
Mainly medical devices with imbursement prices

2 Exchange risk Low
Yen denominated trade with overseas manufacturers

3 Inventory risk Low
Mainly borrowing devices from manufacturers,
stock at customer hospitals

Major products
Angina/myocardial infarction
StentIrregular pulse
Pacemaker

Aortic aneurysm
Stent graft

Arteriosclerosis
obliterans

Cerebralaneurysm

Diabetes
Diabetes

Diagnosis
Test

Peripheral vascular stent

Neurovascular occlusion coil

Insulin pump

MRISales network
Group sales offices (as of Sep 2015)

20offices

Win International sales offices
Win International branch offices
TESCO sales offices etc.

Comparison of ratios (FY2014)
ROE

ROA

15%

7.0%

14%

6.0%

13%

14.17
2%.5%

5.0%

9%

9.7%

3.0%

5.0%
4.0%

3.3%

2.0%
0.0%

ウイン・パートナーズ
WIN-Partners

2.0%

108

2.0%

1.0%ウイン・パートナーズ
WIN-Partners

Sales per head
123.2%

2.0%

業界平均
Industry
average

800

13bn
yen

6600

10bn
yen

4674

mil
yen

400

282

200

20.0%
ウイン・パートナーズ
WIN-Partners

業界平均Industry
average

0160%
150%

業界平均
Industry
average

156

166%

241%

200%
150%

140%

141%

130%

100%
50%

ウイン・パートナーズ
WIN-Partners

業界平均Industry
average

Equity ratio

122%

140%

ウイン・パートナーズ
WIN-Partners

40%
30%

41.7%

45.1%

20%

34.1%

10%

0%

120%

業界平均
Industry
average

50%

250%

%

ウイン・パートナーズ
WIN-Partners

Debt to equity ratio
300%

170%

milyen0
ウイン・パートナーズ
WIN-Partners

Current ratio

業界平均Industry
average

Operating profit per head

14

3.7%
3.3%

3.0%

0.0%
ウイン・パートナーズ
WIN-Partners

業界平均Industry
average

55.1.0%%

1.0%

1.0%

Net profit margin
4.0%

7%.3%
6.2

3.0%

10%

6.0%

4.0%

12%
11%

Operating profit margin

業界平均
Industry
average0%

ウイン・パートナーズ
WIN-Partners※Source :WIN-Partners based on Yukashoken Houkokusho of Kawanishi HD, Yamashita Medical Instruments, Hokuyaku Takeyama HD, DVx, Medius HD, Ship Healthcare, and Japan Lifeline

業界平均
Industry
averageShare priceSep 2014
TSE 1st section(Yen)

2,000

May 2014
TSE 2nd section

1,800

Mar 2015
1 mil share selling
株式売出
目論見書

1,600
1,400

Dec 2013
360,000 shareselling

1,200
1,000
8002013
20142015
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

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.

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