STOCK CODE：3183

May 2014

RESULTSPRESENTATION

Full year ended March 2014
WIN-Partners Co., Ltd.

Full Year Results to March 2014

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｒｅｓｕｌｔｓ ＳｕｍｍａｒｙＡｃｈｉｅｖｅｄ Ｓａｌｅｓ ａｎｄ Ｐｒｏｆｉｔ Ｔａｒｇｅｔｓ
FY March 2014

YoYOE

42,34649,826+17.7%

45,580Operating profit

2,047

2,479

+21.1%

2,280

Recurring profit－

2,499－

2,288

Net profit

－

1,840

－

1,597

EPS (yen)－

128.22－111.26

BPS (yen)－

782.58－－FY March 2013
Sum of two companies

Sales3

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｉｎｃｏｍｅ Ｓｔａｔｅｍｅｎｔｓ
FY March 2014

Sales
Cost of sales

49,826100.043,43187.2

Gross profit

6,395

12.8

SG&A expenses

3,915

7.9

2,479

5.0

Non-oprating profit

200.0

Non-oprating expenses

00.0

Operating profit

2,499

5.0

Extraordinary profit

378

0.8

Extraordinary loss

107

0.2

Recurring profit

Pretax profit
Taxes

Net profit
4(%)

2,770

5.6

929

1.9

1,840

3.7

Ｒｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Sales
Like-for-like
前期比+17.7%• All segments achieved higher
vs. plan
計画比+
9.3% sales
55,00050,00049,82645,00040,00042,346• Large-sized equipment andCRS running ahead of plan• Openings of new sales offices
and staff expansion last year

contributing to +3.7% growth

35,00030,000FY 3/2013
5FY 3/2014（Million yen）

30,829

Ｓａｌｅｓ Ｐｅｒｆｏｒｍａｎｃｅ(Billion yen)

49.8

5049

CVS48

PCI・OtherCRS

47

46

45.5
Large-sized
MedicalEquipment

4544
4342

vs. plan+ 9.3%

4140
6OE

ActualＲｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Operatingprofit
前期比Like-for-like+21.1

vs. plan+2,600（２社合算 前期比）
2,500

2,400

2,300

• Gross profit exceeded plan but% higher sales oflarge-sized equipment depressed% gross margin
like-for-like ▲0.3ppt2,479vs. plan
▲0.7ppt

8.7

2,200

2,100

2,000

• SG&A expenses in line with plan

2,047

1,900

• Achieved OPM 5%
like-for-like +0.1ppt

1,800

1,700

1,600

FY 3/2013

7FY 3/2014（Million yen）

Ｒｅｓｕｌｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Net Profit¥1.84bn¥378mil extraordinary profit
boosted net profit
including profit relating to the merger:￥196mil negative goodwill￥180mil valuation profit of TESCO shares¥107mil extraordinary loss
including sales losses on land andbuilding relating to the moving ofNorth Kanto sales office8Ｓｅｇｍｅｎｔ Ｒｅｖｉｅｗ

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｓａｌｅｓ Ｂｒｅａｋｄｏｗｎｂｙ Ｓｅｇｍｅｎｔ
VolumeValue% ofsales

20,028+6.9+6.7

40

CRS

8,250+21.5+23.4

17CVS5,655+10.9+18.2

112,520+18.6+7.6

5

1,486+34.6+29.6

3513-+3.2

1

Large-sized Medical Equipment

6,054-+72.6

12

Other

5,318-+15.2

1149,826-

+17.7

100

Sales (Million yen)Segment

FY March 2014

PCI

PPI
Brain Surgery
DMS

9TOTALGrowthＣｏｎｓｏｌｉｄａｔｅｄ Ｓａｌｅｓ Ｂｒｅａｋｄｏｗｎ
Others：11%

Large-sized MedicalEquipment：12%

Diabetes Mellitus Segment（DMS)：1%PercutaneousCoronaryIntervention（PCI）：40%

Brain Surgery：3%
Percutaneous
PeripheralIntervention （PPI）：5%

Cardiac Vascular Segment（CVS）：11%
10

Cardiac Rhythm Segment（CRS）：17%

Ｐｅｒｃｕｔａｎｅｏｕｓ Ｃｏｒｏｎａｒｙ Ｉｎｔｅｒｖｅｎｔｉｏｎ(ＰＣＩ)

Ｍａｒｋｅｔ Ｏｖｅｒｖｉｅｗ
 Market growth slowing down due to higher penetration ofDES（Drug Eluting Stent）reducing repeated vasoconstriction

Ｏｕｒ Ａｐｐｒｏａｃｈ Proposed measures to increase patients to our customer hospitals
 Emphasized supports for medical institution corporation

The number of procedures atour customer hospitals increased 5.1%
vs. market growth▲0.2%11

PCI sales +6.7% like-for-likeＣａｒｄｉａｃ Ｒｈｙｔｈｍ Ｓｅｇｍｅｎｔ （ＣＲＳ）

Ｍａｒｋｅｔ Ｏｖｅｒｖｉｅｗ
 MRI-conditional pacemaker dominates the pacemaker market（launched in October 2012） New allocation of remuneration to MRI-conditional ICD, CRTD inOctober 2013 encouraged market growth

Ｏｕｒ Ａｐｐｒｏａｃｈ Emphasized sales of high-priced MRI-conditional pacemaker Emphasized instructional marketing for atrial fibrillation treatment

・MRI-conditional pacemaker reached 53% of pacemaker sales・ICD, CRTD, EP Ablation posted higher growth

12CRS sales +23.4% like-for-likeＣａｒｄｉａｃ Ｖａｓｃｕｌａｒ Ｓｅｇｍｅｎｔ （ＣＶＳ）

Ｍａｒｋｅｔ Ｏｖｅｒｖｉｅｗ
 Higher remuneration for endovascular aortic repair encouraged marketgrowth TAVI（Transcatheter Aortic Valve Implantation) started in October 2013

Ｏｕｒ Ａｐｐｒｏａｃｈ Supported customer hospitals to start up endovascular aortic repair andTAVI

Gained new customers
Achieved 52 procedures of TAVICVS sales +18.2% like-for-like13

Ｐｅｒｃｕｔａｎｅｏｕｓ Ｐｅｒｉｐｈｅｒａｌ Ｉｎｔｅｒｖｅｎｔｉｏｎ(ＰＰＩ)Ｍａｒｋｅｔ Ｏｖｅｒｖｉｅｗ
 Peripheral vascular stents newly covered by insurance and new
allocation of remuneration to percutaneous transluminal angioplasty
supported to increase the number of procedures

Ｏｕｒ Ａｐｐｒｏａｃｈ Supported customer hospitals to star up PPI

Our customer share expanded fromcardiology department to other departments

PPI Sales +7.6% like-for-like14

Ｄｉａｂｅｔｅｓ Ｍｅｌｌｉｔｕｓ Ｓｅｇｍｅｎｔ （ＤＭＳ）

Ｍａｒｋｅｔ Ｏｖｅｒｖｉｅｗ
 Improving recognition of insulin pump in Japan The launch of competitive products is likely to boost market growth

Ｏｕｒ Ａｐｐｒｏａｃｈ Emphasized sales activities to acquire new customer hospitals
 Continued instructional marketing activities of insulin pump therapy
 Supported to introduce patients with diabetic complication to cardiology
departments

Insulin pump rental revenue rose 25％Segment growth was slower due to lower sales of other products

DMS Sales：+3.2% like-for-like
15

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｂａｌａｎｃｅ Ｓｈｅｅｔ

Ｍａｉｎｔａｉｎ Ｈｅａｌｔｈｙ Ｂａｌａｎｃｅ Ｓｈｅｅｔ ｐｏｓｔ Ｍ＆Ａ(%)

March 2014

Current Assets
Cash and deposits
Accounts receivable
Inventory
Other current assets

Fixed Assets
Total Assets
Current Liabilities
Accounts payable
Taxes payable
Other current liabilities

Fixed Liabilities
Total Liabilities

16Net Assets

23,922

88.8

8,563
13,798
1,124
436

31.8
51.2
4.2
1.6

3,011
26,934
15,32611.2
100.0
56.9

14,276
500
549

53.0
1.9
2.0

374
15,701
11,233

1.4
58.3
41.7

Ｃｏｎｓｏｌｉｄａｔｅｄ Ｃａｓｈｆｌｏｗ Ｓｔａｔｅｍｅｎｔｓ
FY March 2014

Cash flows from operating activities
Net profit before taxes
Depreciation
Negative goodwill
Equity valuation profit
Notes and accounts receivable-trade
Inventories
Notes and accounts payable-trade
Income tax paid

Cash flows from investing activities
Purchase of property and epuipment
Proceeds from sale of investment securities

Cash flows from financing activities
Cash dividends paid

Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the fiscal year
Net increase in cash and cash equivalents from joint share transfer
Cash and cash equivalents at the end of the fiscal year

172,8922,770240▲196▲180▲1,701159
2,635▲1,048▲854▲8288▲355

▲355

1,682
4,611
2,269
8,563

Land and buildings for North Kanto and Koriyama sales office relocation

Full Year Forecasts to March 2015

Ｆｕｌｌ Ｙｅａｒ Ｆｏｒｅｃａｓｔｓ ｔｏ Ｍａｒｃｈ 2015

Further earnings growthabsorbing lower selling prices
FY March 201519(%)

YoY(%)

Sales

51,000100.0+2.4

Operating profit2,5735.0+3.8

Recurring profit

2,578

5.1+3.2

Net profit

1,659

3.3

▲9.9

EPS (yen)

115.59－▲9.9

BPS (yen)

35.0

－+9.4

Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Sales • Reimbursement price cut impact+2.4% ▲5.7%（YoY）

53,000• Aim to pass consumption tax hike tocustomers

52,00051,00051,00050,00049,00048,00049,82642,346• Focus to expand market share of
PCI,CRS,CVS

47,00046,00045,00044,000FY 3/201420• Higher volume sales absorbing
lower prices

FY 3/2015 (E)（Million yen）

Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

OperatingProfit• Ｇｒｏｓｓ ｐｒｏｆｉｔ ｍａｒｇｉｎ+3.8%（YoY）

2,650

2,550

2,573
2,450

2,479

13.3 % + 0.5 ppt YoY(1) Cost reduction through taking
inventory risk of PTCA balloon
catheter(2) Cost reduction though volume
discount

2,350

2,047

• SG&A expenses +7.9 % YoY

2,250

including labor cost
2,150

FY 3/2014

21FY 3/2015 (E)（Million yen）

+13.9 %YoY

Ｆｏｒｅｃａｓｔｓ Ｈｉｇｈｌｉｇｈｔｓ

Net Income▲9.9%（YoY）

Absence of merger-related
extraordinary profits
2,000

1,900

1,800

1,840

Capex・DepreciationCapex¥ 690 milvs. ¥960 mil for FY March 2014

1,700

1,659

1,600

1,500

1,300

1,200

vs. ¥240 mil for FY March 2014

1,100

FY 3/201422

Depreciation¥ 270 mil

1,400

FY 3/2015 (E)（Million yen）

Ｏｕｔｌｉｎｅ ｏｆ 2014 Ｒｅｖｉｓｉｏｎ ｏｆ Ｍｅｄｉｃａｌ Ｆｅｅ① Reimbursement price cut of devices

5.7% on sales⇒ Impact to our group: Average ▲② Stricter assessment of acute care hospitals⇒ c.30% of acute care hospitals likely to be disqualified

Polarization of hospital functions
among customer hospitals
23

① Ｉｍｐａｃｔ ｏｆ Ｒｅｉｍｂｕｒｓｅｍｅｎｔ Ｐｒｉｃｅ Ｃｕｔs

Impact on group sales ▲5.7%Reimbursement Prices (1,000 yen) Impact on Sales

PTCA Ballon Catheter

Pacemaker
CRT-D
Ablation Catheter

Brain Surgery

24TOTAL

2012

2014

(%)

79295
115
1,0003,060
4,090
158
1,520-67261
109
827
2,970
4,040
149
1,510-▲8.5--▲5.6▲1.2--

▲5.7

▲14.9
▲11.5
▲5.2

▲4.6
▲17.3
▲2.9
▲1.2
▲5.7

▲2.0
▲0.7

①Ｓｔｒａｒａｔｅｇｉｅｓ ｔｏ Ｃｏｕｎｔｅｒ Ｐｒｉｃｅ Ｃｕｔｓ

Reimbursement prices affectour selling prices
Our Strategies(1)Ｄｏｍｉｎａｎｃｅ ｉｎ ｃａｒｄｉｏｖａｓｃｕｌａｒ ｍａｒｋｅｔ
・ Focus on growing CRS,CVS・ Increase sales volume and expand value-added products
・ Reduce procurement costs backed by higher market share(2)Ｎｅｗ ｐｒｏｃｕｒｅｍｅｎｔ ｓｃｈｅｍｅ
・ Improve GPM through bulk purchasing, taking inventoryrisk
25

② Ｓｔｒａｔｅｇｉｅｓ ｔｏ ｃｏｕｎｔｅｒ ｃｕｓｔｏｍｅｒ ｃｈａｎｇｅｓ

Stricter assessment of hospital functions
likely force our customers to change status
Our Strategies(1)Ｔｏ ｃｕｓｔｏｍｅｒｓ ｔｏ ｓｔａｙ ａｓ ａｃｕｔｅ ｃａｒｅ ｈｏｓｐｉｔａｌｓ
・Support to enhance acute care functions
・Approach new customers with potentials(2)Ｔｏ ｃｕｓｔｏｍｅｒｓ ｔｏ ｔｒａｎｓｆｏｒｍ ｈｏｓｐｉｔａｌ ｆｕｎｃｔｉｏｎｓ
・Support to transform into sub-acute care hospitals etc.
26

Ｓａｌｅｓ Ｆｏｒｅｃａｓｔｓ ｂｙ Ｓｅｇｍｅｎｔ
FY March 2015ESegment(Mi l l i on yen）(%)

GrowthYoY(%)

Change ofproductmix (ppt)

Percutaneous Coronary Intervention

21,18241.5+5.8

1.3

Cardiac Rhythm Segment

8,986

17.6+8.9

1.1

Cardiac Vascular Segment

6,977

13.7+23.4

2.3

Percutaneous Peripheral Intervension

3,167

6.2+25.7

1.2

Brain Surgery

1,454

2.9

▲ 2.2

▲0.1

658

1.3

+28.3

0.3

Large-sized Medical Equipment

3,797

7.4

▲ 37.3▲4.7

Other4,779

9.4▲ 10.1▲1.3

51,000100.0+2.4

Diabetes Mellitus Segment

TOTAL
27

DMSＣｒｅａｔｉｎｇ Ｓｙｎｅｒｇｉｅｓ ｉｎ Ｐｒｏｇｒｅｓｓ

FY 3/2014

FY 3/2015

FY 3/2016

Improve groupmanegement
framework

Integreate
overlapped
Fukushima sales
offices

Integrate purchasing
function

Strengthen TESCO's
governanceIntegrate accounting
systemStrengthen sales
activities backed byinformation sharing

28

Integrate
informationsystem

Ｄｉｖｉｄｅｎｄｓ

We aim30%+ payout ratio
Dividends
FY ending March 2015

35

29yen

Ｅａｒｎｉｎｇｓ Ｔｒｅｎｄ

Ｅａｒｎｉｎｇｓ Ｇｒｏｗｔｈ ｓｅｔ ｔｏ Ａｃｃｅｌｅｒａｔｅｆｒｏｍ ＦＹ Ｍａｒｃｈ 2014
60
（Unit：billionyen)

3,200（Unit：millionyen）

Sales（WIN )：LEFT

Recurring Profit：RIGHTNet Profit：RIGHT51bn

50

2,700

2,578mil
40

2,20030

1,700

1,659mil
20

1,20010700

0200'99/3

30'00/3'01/3'02/3

'03/3

'04/3

'05/3

'06/3

'07/3

'08/3

'09/3

'10/3

'11/3

'12/3

'13/3

'14/3

'15/3 (E)

(Note) Earnings are based on WIN International’s figures from FY 3/1999 to FY 3/2013 and WIN Partners’ consolidated figures for FY 3/2014 & FY 3/2015

Company Profile

Ｃｏｍｐａｎｙ Ｐｒｏｆｉｌｅ
Code： 3183

Head Quarter： 4-24-8, Taito Taito-ku, TokyoCapital： 550 million yen

Business： Management of group companies selling medicaldevices etc.

Board of Management ： Hideumi Akizawa, CEO
4 managing directors including 1 outside director
3 auditors including 2 outside auditors
100% Subsidiaries： WIN INTERNATIONAL, TESCO
st

Number of Employees ： 372（as of March 31 2014）
Number of Shares32： 15,251,655 (including 897,433 treasury shares）

Ｂｕｓｉｎｅｓｓ Ｏｕｔｌｉｎｅ

Ｉｎｄｅｐｅｎｄｅｎｔ Ｍｅｄｉｃａｌ Ｄｅｖｉｃｅ Ｄｅａｌｅｒ
Medical device
manufacturers(suppliers)

80

Information ofproduct usage

Feedback of information
on product usage

WINPartners
Group
Trust

SafetySecurity

Information on various
companies’ products

Yen denominated trade

Medicalinstitutions(clients)

Flow ofproducts

360

Optimal proposals that meetcustomer needs

No direct impact of weaker yen＜Major suppliers＞
Boston Scientific Japan, Terumo, Japan Lifeline, Abbott Vascular Japan, Medtronic Japan, Nihon Kohden, Fukuda
Denshi, Edwards Lifesciences, Johnson & Johnson, GOODMAN, St. Jude Medical Japan, Covidien Japan, GE
Healthcare Japan etc.

Customers are Japan’s major medical institutions

33

Ｍａｊｏｒ Ｐｒｏｄｕｃｔｓ

Ｄｅｖｉｃｅｓ ｆｏｒ Ｍｉｎｉｍａｌｌｙ Ｉｎｖａｓｉｖｅａｎｄ Ｈｅａｒｔ Ｔｒｅａｔｍｅｎｔｓ
PercutaneousCoronary
Intervention

Cardiac
RhythmSegment

Cardiac
VascularSegment

Percutaneous
Peripheral
Intervention

（PCI）

（CRS）

（CVS）

Diabetes
Mellitus
Segment

（PPI）

（DMS）

PTCA
Balloon Catheter￥67,300

DES￥261,000 ※MRICRTD
￥4,040,000

Stent graft（Abdomen）￥1,510,000※Reimbursement prices renewed every two years

34

Large-sized
MedicalEquipment

Peripheral VascularStent￥210,000

Insulin Pump
（rental ・sales）

Over ¥10mn

Ｓａｌｅｓ Ｏｆｆｉｃｅ Ｎｅｔｗｏｒｋ● WIN INTERNATIONAL sales offices■ WIN INTERNATIONAL branch offices★ TESCO sales offices

JAPANOffices

35WIN A BETTER QUALITY OF LIFE
Disclaimer
This material was prepared based on information available and views held at the time it was made. Statements inthis material that are 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 in general 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 be superseded or cease to be accurate. WIN-Partners Co.,Ltd. disclaims any obligation or responsibility to
update, revise or supplement any forward-looking statement or other information in any material or generally to
any extent. Use of or reliance on the information in this material is at your own risk.

Contacts
ＷＩＮ-Ｐａｒｔｎｅｒｓ Ｃｏ.,Ｌｔｄ.
Ｉｎｖｅｓｔｏｒ Ｒｅｌａｔｉｏｎｓ
ＴＥＬ： ０３-６８９５-１２３４ ＦＡＸ：０３-５６８８-０８９１
ＨＰ：ｈｔｔｐ：//ｗｗｗ.ｗｉｎ-ｐａｒｔｎｅｒｓ.ｃｏ.ｊｐ