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

Results Presentation
Full Year ending March 2016

Full year results ending March 2016

Consolidated results summary（¥mil）

Mar 2015

Mar 2016

YoYOE

Sales

50,558+7.1%

55,500Operating profit

2,599+14.1%

2,950

Recurring profit

2,626+13.4%

2,950

Net profit

1,690+24.9%

1,930

EPS (yen)
BPS (yen)

117.7854,147
2,965
2,978
2,111
147.11970.30－134.46872.05－3

Our approach◆ Expand customer share◆ Acquire new customers◆ Strengthen sales structure◆ Improve gross profit margin◆ Strengthen corporate governance
4Highlights

Sales + 7.1 %(¥mil)

54,147vs. plan
YoY▲

2.4%

Enjoyed higher sales from both
existing and new customers- Contribution from new sales branches
Openings in FY 3/2015：Hiroshima, Hokkaido (Hakodate)
Nagano (Saku)

Openings in FY 3/2016：Ibaraki (Mito)

50,558FY 3/2015

FY 3/2016

Mainline PCI and CRS posted
growth5

Sales breakdown by segment
Sales(¥mil)

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

change (pt)Percutaneous coronary intervention (PCI)

22,624+7.6+7.4

41.8+0.1

Cardiac rhythm segment (CRS)

11,374+20.8+13.1

21.0+1.1

Cardiac vascular segment (CVS)

6,662

▲0.9

▲0.7

12.3

▲1.0

Percutaneous peripheral intervention (PPI)

2,803+15.6+4.7

5.2

▲0.1

Brain surgery

1,903+9.8+21.4

3.5+0.4

Diabetes mellitus segment (DMS)

773-+33.6

1.4+0.3

Large-sized medical equipment

3,329-▲17.0

6.1▲1.8Others

4,675-

+20.1

8.6

+0.9

54,147-+7.1

100.0TOTAL

6Segment review (YoY)

PCI

enjoyed higher sales from both existing and new customers.
Higher number of procedures supported double digit growth of DES (drugeluting stent).

to post double digit growth in sales from both existing and newC RS continued
customers. Favorable sales of EP・Ablation and MRI-conditional pacemaker.
suffered from reimbursement price cut of stent graft despite sales of TAVICVS fellpicked up as well as number of procedures in the second half.

PPI

enjoyed higher number of procedures. Despite double digit growth ofPTA balloon catheters, lower sales of high-priced peripheral vascular stents
slowed overall growth.
suffered from depressed demand because of building costs increase
together with delayed sales.
7決算のポイント
Segment review (vs plan)(¥mil)
700

Others600
500- Favorable sales of small
devices and MRO

400

300
200

Others1000-100-200-300-400

PCICRS635

▲625▲

-500

Large-sized
medicalEquipment▲500+635

CVS▲237-600-700

PCI
Suffered fromdelayed newcustomeracquisitions

CRS

Large-sized medical
equipment

CVS

Suffered from Suffered from- Suffered from delayed new
shortfall of ICD, customers’ review of customer acquisitions inCRTD
capital spending plan stent graft- Suffered from delayed
initiation of TAVI at newcustomer hospitals
8Highlights

Operatingprofit + 14.1%(¥mil)

3,000

vs. plan

0.5%▲

YoY

Operating profit margin
improved 0.4pt
Gross profit margin 13.4% (+0.2pt)
YoY

2,965

2,900-

2,800

2,700

7.9% ( 0.2pt)
YoY

SG&A to sales

2,600

2,500

Cost reduction by bulk purchasing
Higher margins of CRS supported by larger sales volume
Favorable sales mix▲

Miscellaneous expense decreased except for labor costs[SG&A expenses]+4.9% YoY

2,599

+8.4% YoY
[Miscellaneous expense] ▲ 3.0% YoY Disappearance of TSE listing related[Labor costs]

2,400

FY 3/2015

前期

FY 3/2016実績

expenses, etc.
Mar 2016 Mar 2015

[Number of employees] 422(399)9Highlights

Net profit +24.9 %YoY

2,500(¥mil)

2,111

2,000

1,500

vs. plan+9.4%

Extraordinary profit¥294mil- Sales proceeds of marketable securities- Cash surrender value of insurance

1,690

1,000

Extraordinary loss

¥182mil

5000FY 3/2015

前期

FY 3/2016

実績- Actuarial loss on retirement allowance
10Consolidated income statements
March 2015(¥mil)March 2016(%)(¥mil)(%)

50,558100.0

54,147

100.0

Cost of sales

43,86286.8

46,88286.8

Gross profit

6,695

13.2

7,264

13.4

SG&A expenses

4,096

8.1

4,299

7.9

Operating profit

2,599

5.1

2,965

5.5

Non-operating profit

30

0.1

130.0

Non-operating expenses

20.0

00.0

2,626

5.2

2,978

5.5

Extraordinary profit

40.0

294

0.5

Extraordinary loss

10.0

182

0.3

2,629

5.2

3,090

5.7

9381.9978

1.8

1,690

3.3

2,111

3.9

Sales

Recurring profit

Pretax profit
Taxes

Net profit

11Consolidated balance sheet
March 2015

March 2016

Change(¥mil)(%)(¥mil)(%)(¥mil)

88.4
26.1
52.3
7.6
2.4
11.6

26,624

90.2

2,087

9,285
15,137
1,475
725

31.5
51.3
5.0
2.5

2,047
624
▲630
46

Fixed assets

24,537
7,238
14,512
2,106
679
3,228

9.8

▲337

Total assets

27,765100.0

14,821
Accounts payable
13,758
Taxes payable
499
Other current liabilities
562
Fixed liabilities
427

53.4
49.61.8
2.0
1.5

2,891
29,515
14,903

100.0
50.5

1,749
81

13,477
604
821

45.7
2.0
2.8

▲281
104
259

2.3

Total liabilities

15,248

54.9

Net assets

12,517

45.1

Total liabilities,
net assets

27,765100.0

684
15,587
13,92729,515

257
339
1,410
1,749

Current assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Current liabilities

52.8
47.2
100.0

12

Consolidated cashflow statements
March 2015

March 2016

Cash flows from operating activities

▲312

2,294

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

2,629276▲714▲985▲517▲953

3,090276▲200▲93159▲624636▲293▲952

Cash flows from investing activities▲553298

Purchase of tangible assets
Sale of marketable securities
Surrender of insurance▲507-▲235381
106

Cash flows from financing activities▲459▲545

Cash dividends paid

▲459▲545▲1,325
8,5637,238

2,0477,238(¥mil)

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of FY
Cash and cash equivalents at the end of FY

9,285
13

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
14

Outlook

Business outlook
Medical expenditures under tighter control- Revision of medical fees

- Clarification of hospital functions

Technological advancement of medical devices- Creation of new markets, with potential patients- Specialization of medical devices

Unbalanced medical services- Unbalanced medical services by region and treatment field- Outpatients concentrating in larger hospitals
16

Outline of 2016 revision of medical fee
1. Reimbursement price cut of devices→ Estimated impact to our group:
Average ▲5% on sales

2. Stricter assessment of acute care hospitals→ 10% of number of bed units for acute care hospitals
likely to be disqualified
17

1. Impact of reimbursement price cut ongroup sales
Segment

Impact (%)

Percutaneous Coronary Intervention (PCI)▲ 8.7

Cardiac Rhythm Segment (CRS)▲ 3.4

Cardiac Vascular Segment (CVS)▲ 2.0

Percutaneous Peripheral Intervension (PPI)▲ 3.7

Brain Surgery▲ 2.3

Others

▲ 0.7

Total
Calculated based on the actual sales volume and product mix on FY 3/2016▲ 5.018

Outline of reimbursement price cuts
Segment

PCIItems

827
1,040
2,940
3,300
4,280
4,500－
149637
1,310－

739
986
2,890
3,300
4,140
4,500
2,870
143
637
1,310
1,140

▲12.0
▲13.4
▲8.3
▲10.6
▲5.2
▲1.70.0▲3.3
0.0▲4.00.00.0-Hea rt va lve for Tra ns ca theter Aortic Va lveImpla ntation (TAVI) (Ba lloon-expa nda ble)

4,650

4,430

▲4.7

Heart valve for TAVI (self-expanding)
PTA Ballon Catheter
Peripheral Vascular Stent graft

－72
188

3,670
67
188

▲6.90.0

ICD (Implantable Cardioveter Defibrillator)

ICD (MRI-conditional)
CRTD (Cardiac Resychronization Therapy Difibrillator)

CRTD (MRI-conditional)
Subcutaneous Implantable Defibrillator (S-ICD）

PPI

2016
59
226
100

Pacemaker
Pacemaker (MRI-conditional)

CVS

2014

Impact (%)

67261
109

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

CRS

Reimbursement prices (¥000)

Ablation Catheter
Cardiac CryoAblation Catheter
Stent graft (abdomen）
Open Stent graft

19

2. Stricter assessment of acute care
hospitals
Due to the stricter regulation of medical fees, 10% of number of
bed units(C. 36,000) for acute care hospitals likely to be eliminatedChanges in number of bed units for acute care hospitals(000units)
500

400
328

352

357

379

380

366

363

369
332

287

300

MHLW target

243
200

180

162

100

440

2006.52007.72008.72009.72010.72011.72012.72013.72014.72014.102015.4

2015.10Source: WIN-Partners Co., Ltd., based on the data published by Central Social Insurance Medical Council, MHLW on Dec. 9, 2015

2016

.

2025
2025

20

Our approach for FY 3/2017
Promoting support to strengthen
customer hospital functions
Current situation- About 30% of customers offering PCI are able to treat
cardiac arrhythmia including ablation, etc.
- Only 5% of patients with atrial fibrillation (about 1 million people)
are treated by ablation- By promoting PPI screening, some customers experienced
synergy with higher number of PCI procedures
21

Our concrete measures to strengthen
customer hospital functions
Support driving our customers to“Multi-specialty” hospitals
1) Propose customers to start up new department:
Cardiovascular internal medicine → Cardiac surgery

2) Propose customers to expand the field of diagnosis andtreatment:
Percutaneous coronary intervention → Abnormal cardiac rhythm3) Recommend screening related-disorders to discoverpotential patients: Heart ⇔ Peripheral
4) Support to form “Hybrid medical” team5) Offer specialist services:
Support to use devices properly by newly formed ablation team22

Consolidated Forecasts to March 2017(¥mil)(%)

YoY(%)

Sales

56,600100.0+4.5

Operating profit

3,000

5.3+1.2

Recurring profit

3,000

5.3+0.7

Net profit

2,050

3.6

▲2.9

EPS (yen)

142.82▲2.9

DPS (yen)

43.0+4.923

Forecast highlights

Sales+ 4.5 %YoY

Expand customer share(¥mil)

56,60054,147
FY 3/2016

FY 3/2017E- Support to strengthen hospital functions

Acquire new customers- Acquire major customer hospitals in the metropolitan area
- Expand relatively new branches in response to increasing
requests from customer hospitals

Each category expects increases in sales supported
by larger sales volume while brain surgery expects
decrease due to changes in sales strategy inwestern Japan24

Full year sales breakdown by segment(¥mi l )YoY% of sales

Percutaneous coronary intervention (PCI)

23,330

+3.1%

41.2%

Cardiac rhythm segment (CRS)

11,960

+5.1%

21.1%

Cardiac vascular segment (CVS)

6,820

+2.4%

12.0%

Percutaneous peripheral intervension (PPI)

3,010

+7.4%

5.3%

Brain surgery

1,770

▲7.0%

3.1%Diabetes mellitus segment (DMS)

1,030+33.1%

1.8%

Large-sized medical equipment

3,970+19.2%

7.0%

Others

4,710

+0.7%

8.3%

56,600+4.5%

100.0%TOTAL

25

Forecast highlights

Operatingprofit+1.2% YoY
Gross profit margin(¥mil)

3,000- Absorb negative impact from reimbursement
price cuts by committing volume expansion- Higher rebates from manufacturers throughsales expansion

SG&A to sales

2,965
FY 3/2016

13.5% +0.1pt YoY

FY 3/2017E

8.2% +0.3pt YoY- SG&A expenses +8.4% due to increase in numberof employees

422 → 478 （+13.3%）
March2016

March2017E

26

Forecast highlights

Net profit▲2.9% YoY

Absence of extraordinary profit(¥mil)

2,111

Capex

¥60 milvs. ¥310mil for FY 3/2016
2,050

FY 3/2016

FY 3/2017E

230

Depreciation ¥mil
vs. ¥276mil for FY 3/2016
27

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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