MEDIROM Healthcare Technologies, Inc. · NASDAQ:MRM
MEDIROM Healthcare Technologies — Investor Presentation (September 2021)
25 slides from MEDIROM Healthcare Technologies's investor presentation, Sep 24, 2021
Slide 1: MEDIROM Healthcare Technologies Inc.
Slide 2: Important Notices
MEDIROM HEALTHCARE TECHNOLOGIES INC. Important Notices IMPORTANT NOTICES AND DISCLAIMERS This investor presentation (this “Investor Presentation”) and any oral statements made in connection with this Investor Prese nta tion are for informational purposes only and do not constitute an offer to sell,
Slide 3: Important Notices (cont'd)
MEDIROM HEALTHCARE TECHNOLOGIES INC. Important Notices (cont’d) Market and Industry Data This Investor Presentation contains references to industry market data and certain industry forecasts. Industry market data and industry forecasts are o bt ained from publicly available information and industry
Slide 4: Medirom at a Glance
MEDIROM HEALTHCARE TECHNOLOGIES INC. Medirom at a Glance ✔ Relaxation Salon Business ▪ MEDIROM operates 315 bodywork salons in Japan as of August 31 , 2021 .. ▪ Our Relaxation Salon Business Segment experienced 14 .. 2 % YoY revenue drop from 2019 to 2020 , due to the COVID - 19 pandemic .. ✔ Digita
Slide 5: History
MEDIROM HEALTHCARE TECHNOLOGIES INC. MEDIROM History 2020 Future Growth 2000 Foundation CEO & Founder Kouji EGUCHI Launch of On - demand Health Coaching App ( Lav ® ) May 2019 Development of Self - Charging Health Monitoring Tracker (MOTHER Tracker, under development) Starting Device Business 2017 O
Slide 6: Accretive M&A with Low Hanging Fruit
MEDIROM HEALTHCARE TECHNOLOGIES INC. Accretive M&A with Low Hanging Fruit Market Landscape and Go - Forward Strategy ● 1 / 3 of the industry revenue is comprised of lesser - known salon brands .. M&A opportunities ● Targeting M&A opportunities with both direct and indirect financing (not hostile mer
Slide 7: Relaxation Salon Business
MEDIROM HEALTHCARE TECHNOLOGIES INC. Relaxation Salon Business PROVIDING THE BEST PREVENTIVE SOLUTIONS 7
Slide 8: Relaxation Salon Business Snapshot
MEDIROM HEALTHCARE TECHNOLOGIES INC. ▪ 70 thousand customers served in July 2021 (the largest number we have ever recorded in a single month). ▪ Over 80% customer repeat ratio. Repeat Customers Significant Operations Total of 315 salons in August 2021 .. ▪ Franchise fees, monthly education, marketin
Slide 9: Re.Ra.Ku Brand Multiple Model
MEDIROM HEALTHCARE TECHNOLOGIES INC. Re.Ra.Ku Brand Multiple Model Spa Facilities Strong affinity between bodywork and spa facilities. Visitors High Usage Rate Only companies with a proven track record and credibility can enter the market. Entry Barrier Value Added Services Higher Sales per Customer
Slide 10: Strength in Retail
MEDIROM HEALTHCARE TECHNOLOGIES INC. Strength in Retail Customer Touchpoints Retail metros/subways, malls, plazas. High Traffic Area High Repeat Customer Rate 80%+ Focus on High Density Areas 70K Served 70,912 customers in July 2021 Core Brand Sales per Customer $ 62.85 ( 1 ) in the year ende d Dece
Slide 11: 2021 Seasonal Promotions
MEDIROM HEALTHCARE TECHNOLOGIES INC. 2021 Seasonal Promotions Summer Head Spa Winter Hand Care Autumn GI Tract Care Spring Reflexology Contributing to Higher Sales per Customer 11
Slide 12: Educational Facilities
MEDIROM HEALTHCARE TECHNOLOGIES INC. Educational Facilities One of the Largest Educational Schools in Japan Open 7 Days a Week (10am – 7pm) 60 beds 858m 2 ▪ Re.Ra.Ku therapists support customers in our salons and after their appointments through health management tailored for each customer. ▪ Provid
Slide 13: Award-winning Salon and Therapists
MEDIROM HEALTHCARE TECHNOLOGIES INC. Open 7days 10am – 7pm 60 beds 858 ㎡ Our relaxation service quality has been proven with awards. Award - winning Salon and Therapists MODEL 2019 Grand Prix BEST Therapist 2019 Grand Prix BEST Store Source: http:// www.relaxation - net.jp /contest/japan2019_result
Slide 14: Digital Preventative Healthcare Business
MEDIROM HEALTHCARE TECHNOLOGIES INC. Digital Preventative Healthcare Business “MOTHER Tracker Ⓡ ” “ Lav Ⓡ ” App Information and Communication Technology (ICT) solution with App, Wearable & Re .. Ra .. Ku ® Trained Therapists 14
Slide 15: Specific Health Guidance Business
MEDIROM HEALTHCARE TECHNOLOGIES INC. Specific Health Guidance Business *In August 2020, we started releasing “ Lav ® ” application directly to consumers. Government Supported Health Guidance Program Currently engaged partners include blue chip corporations and governmental bodies 15
Slide 16: Coaching App Lav
MEDIROM HEALTHCARE TECHNOLOGIES INC. Coaching App “ Lav ® ” Remote Weight Loss Program with ties to benefits from Government Insurance Programs Wearable Device On - demand Training Activities, Sleep, Weight 16 Internal and External (Contractors) Nutritians / Dietitians Twice A Week Receive Feedback
Slide 17: MOTHER Tracker
MEDIROM HEALTHCARE TECHNOLOGIES INC. MOTHER Tracker ® Self - Charging Fitness Tracker “MOTHER” under co - development with MATRIX Industries, Inc. ➢ MATRIX’s Patented Technologies ➢ Thermoelectric Module & Boost Converter ➢ Hospitals, Nursery Homes and Gyms ➢ Logistics and Transportation Industry (D
Slide 18: Financial Highlights #1
MEDIROM HEALTHCARE TECHNOLOGIES INC. Financial Highlights # 1 (year - over - year) Total Revenue : Decrease of 14.5% to $32.4 million, due to COVID - 19 .. Cost of Revenues : Stayed relatively flat, as a result of an increase in the total number of salons from 283 to 290, offset by cost reduction ef
Slide 19: Financial Highlights #2 (FY2020)
MEDIROM HEALTHCARE TECHNOLOGIES INC. Financial Highlights #2 (FY2020) Adjusted EBITDA : Negative $5.3 million. Adjusted EBITDA Margin : Minus 16.3%. Cashflow from Operating Activities : Negative $3.5 million, mainly due to the decrease in net income. Cashflow from Investing Activities : Negative $1.
Slide 20: Consolidated Income Statement
MEDIROM HEALTHCARE TECHNOLOGIES INC. Consolidated Income Statement (1) Convenience translations of Japanese yen into U.S. dollars have been made at the exchange rate of ¥103.190 = US$1.00, which w as the foreign exchange rate on December 31, 2020 as reported by the Board of Governors of the Federal
Slide 21: Consolidated Balance Statement
MEDIROM HEALTHCARE TECHNOLOGIES INC. Consolidated Balance Statement (In Thousands) 21 Year ended December 31, Year ended December 31, 2020($) (1) 2020(¥) 2019(¥) Assets: Current assets 20,227 2,087,224 1,378,729 Non - current assets 35,141 3,626,242 3,378,736 Total Assets 55,368 5,713,466 4,757,465
Slide 22: Consolidated Cashflow Statement
MEDIROM HEALTHCARE TECHNOLOGIES INC. Consolidated Cashflow Statement (In Thousands) 22 Year ended December 31, Year ended December 31, 2020($) (1) 2020(¥) 2019(¥) Net (loss) income attributable to shareholders (5,225) (539,170) 17,335 Net cash provided by operating activities (3,551) (366,420) 7,870
Slide 23: KPIs Trend
MEDIROM HEALTHCARE TECHNOLOGIES INC. KPIs Trend JPY 23 Disclaimer: The information presented on this slide is based on management's accounts only and has not been reviewed or audited. This information has previously been disclosed on the investor relations page on our website, available at: https://
Slide 24: Key Management Team and Board
MEDIROM HEALTHCARE TECHNOLOGIES INC. Key Management Team and Board Kouji Eguchi Founder, CEO and Director Fumitoshi Fujiwara CFO and Director Miki Aoki Director and Manager of General Affairs 24 Akira Nojima Outside Director Tomoya Ogawa Outside Director
Slide 25: Thank You!
Thank You! MEDIROM Healthcare Technologies Inc. 2-3-1, Daiba, Minato-ku, Tokyo, JAPAN 135-0091 Email: [email protected] www.medirom.co.jp/en/ir
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