Cellsource Co., Ltd. · TSE:4880
Cellsource — Q1 FY10/2024 Earnings Presentation
34 slides from Cellsource's earnings presentation, Mar 15, 2024
Slide 1: Earnings Presentation Q1 FY10/2024
Earnings Presentation Q1 FY10/2024 CellSource Co., Ltd (TSE Prime: 4880) March 11, 2024
Slide 2: Table of Contents
Table of Contents 1 Topics 2 Financial Results for Q1 FY10/2024 3 KPIs 4 Business Highlights 5 Appendix 2 CellSource Co., Ltd. All Right Reserved
Slide 3: Topics
Topics 3
Slide 4: Topics: management transition, CEO incentive plan, medium-term plan
Topics l Transition to new management structure as of Already taken place January 25, 2024 l Agreement on new CEO incentive plan Scheduled for Q2 FY10/2024 l Release of new medium-term management plan onward 4 CellSource Co., Ltd. All Right Reserved
Slide 5: Financial Results for Q1 FY10/2024
Financial Results for Q1 FY10/2024 5
Slide 6: Performance Highlights for Q1 FY10/2024
Performance Highlights for Q1 FY10/2024 Net Sales Operating Profit Profit JPY 1.17 billion JPY 205 million JPY 143 million ( + 10.8 % YoY) ( - 41.4 % YoY) ( - 33.4 % YoY) Operating Profit Number of Contract Number of Partner Margin Processing Orders Medical Institutions 17.5% 5,685 1,802 (-15.6 pp Y
Slide 7: Performance Summary
Performance Summary Full-year l Net sales: Overall, net sales rose 10.8% YoY as [Millions of yen] Q1 FY10/2023 Q1 FY10/2024 YoY Progress forecast although sales from contract processing services decreased YoY, sales of medical devices and Net sales 1,059 1,173 +10.8% 5,368 21.9% cosmetics were stron
Slide 8: Performance Highlights
Performance Highlights l We have improved the processing technology for PFC-FD , our existing blood-derived processing contract service, and from April 2024 plan to start offering PFC-FD (2.0), which contains more growth factors with anti-inflammatory and tissue repair effects than ever before. (Sli
Slide 9: Net Sales
Net Sales Quarterly sales increased YoY, as although sales from contract processing services decreased, medical device sales and cosmetics sales increased Contract processing services 1Q FY10/2023 1Q FY10/2024 YoY Millions of yen Consulting services Total Millions of yen Medical device sales Cosmeti
Slide 10: Gross Profit and Operating Profit
Gross Profit and Operating Profit See Slide 12 for analysis of factors affecting gross profit margin [Millions of yen] Gross profit [Millions of yen] Operating profit 1,400 Gross profit Gross profit margin Operating profit Operating profit margin 800 1,200 700 632 1,026 73.6% 600 1,000 65.1% 888 841
Slide 11: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin Decline in gross profit margin on contract processing services due mainly to increase in fixed costs Overview Outlook Gross profit margin • No major change as a decline in • No major change expected, high-margin consulting service Change in sales mix amid efforts to c
Slide 12: SG&A Expenses
SG&A Expenses Infrastructure for growth now in place following staff additions, office relocation, and acquisition of new production facility. Plan to amplify R&D spending toward second half of fiscal year. [Millions of yen] Other Q1 FY10/23 Q1 FY10/24 YoY Advertising expenses + sales promo tion exp
Slide 13: Rent
Rent Rent for ZERO LAB has been booked as an SG&A expense but is expected to be booked as cost of sales from Q4, once the facility opens in July. Rent component of SG&A expenses is expected to decline due to relocation from old office and old production facility. Cost of sales + SG&A expenses Cost o
Slide 14: Balance Sheet
Balance Sheet Maintaining a strong financial base. Future cash allocation policy to be announced in next medium-term management plan. [Millions of yen] 7000 Cash and deposits 452 Current liabilities 626 225 6000 Other current asset 220 l Increase in non-current Non- current liabilities assets reflec
Slide 15: KPIs
KPIs 15
Slide 16: Business KPI Highlights for Q1 FY10/2024
Business KPI Highlights for Q1 FY10/2024 Blood-derived product Number of partner ASC contract contract processing medical institutions processing orders orders 1,802 5,314 371 ( + 347 YoY) ( - 28.7 % YoY) ( - 11.4 % YoY) 16 CellSource Co., Ltd. All Right Reserved As of FY10/2024, the number of contr
Slide 17: Number of Partner Medical Institutions
Number of Partner Medical Institutions No. of partner medical institutions Cumulative total (1Q FY10/2024) 1,802 (+ 347YoY) 17 CellSource Co., Ltd. All Right Reserved As of FY10/2024, the number of contract processing orders is calculated as of when the order is fulfilled (previously as of when the
Slide 18: Number of Contract Processing Orders for Blood-derived Products
Number of Contract Processing Orders for Blood-derived Products No. of cumulative orders 78,984 No. of orders for Q1 FY10/2024 5,314 (- 11.4% YoY) 18 As of FY10/2024, the number of contract processing orders is calculated as of when the order is fulfilled (previously as of when the order is received
Slide 19: Number of Contract Processing Orders for Adipose-derived Stem Cells
Number of Contract Processing Orders for Adipose-derived Stem Cells (ASCs) No. of cumulative orders 7,991 No. of orders for Q1 FY10/2024 371 (+ 28.7% YoY) 19 As of FY10/2024, the number of contract processing orders is calculated as of when the order is fulfilled (previously as of when the order is
Slide 20: Daily Average Number of Contract Processing Orders
Daily Average Number of Contract Processing Orders 90 87.0 82.5 79.0 80.2 77.5 78.8 78.5 76.3 75.4 76.0 74.8 69.9 69.1 68.6 68.6 66.2 65.9 64.2 62.8 61.7 59.2 60.1 60 56.0 50.9 49.8 50.8 47.4 47.9 48.6 48.5 46.0 45.4 44.0 43.7 41.8 42.0 36.3 31.3 30 0 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10
Slide 21: Contracting Processing Service Sales
Contracting Processing Service Sales In the field of orthopedics, sales to medical institutions specializing in self-funded treatment historically have accounted for more than 50% of sales. Such sales have been decreasing, whereas sales to hybrid medical institutions have remained steady, albeit sli
Slide 22: Quarterly Results
Quarterly Results FY10/2022 FY10/2023 FY10/2024 Millions of yen Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Sales 820 876 1,175 1,400 1,059 1,111 1,235 1,104 1,173 Contract processing services 549 581 757 887 743 735 873 793 664 Consulting services 59 59 111 125 113 109 134 77 56 Medical device sales 171 159 171
Slide 23: Business Highlights
Business Highlights 23
Slide 24: Launch of Blood-derived Processing Contract Service PFC-FD (2.0)
Launch of Blood-derived Processing Contract Service PFC-FD (2.0) By updating the technology used in our existing blood-derived processing contract service, PFC-FD , we aim to widen therapeutic options and further extend our market presence. PFC-FD vs PFC-FD (2.0) Volume comparison of included factor
Slide 25: Technology Update for ASC Contract Processing Service
Technology Update for ASC Contract Processing Service We have established a processing method that reduces both the burden on doctors and patient invasiveness, and now seek to further expand therapeutic applications for adipose-derived stem cells (ASCs). Comparison of amount of adipose tissue collec
Slide 26: Launch of Egg Freezing Anshin Bank
Egg Freezing and Storage Contract Service Launch of Egg Freezing Anshin Bank l Expanding partnerships with obstetricians and gynecologists across the country, building on existing network of 250 partners l Offering egg freezing and storage service to companies for use in corporate welfare benefit pr
Slide 27: Egg Freezing Anshin Bank business model
Egg Freezing and Storage Contract Service Egg Freezing Anshin Bank business model Hospitals & clinics l Recurring revenue business l Stable cash flow built on monthly storage fees Egg retrieval Storage fee l Looking to grow demand for egg freezing service and freezing fee via three strategies outlin
Slide 28: Looking to grow orders for egg freezing service
Egg Freezing and Storage Contract Service Looking to grow orders Targeting No. 1 domestic market share in egg freezing and storage contract services for egg freezing service l Expanding network of partner medical institutions, with focus on specialist No. of partner Partner medical infertility clini
Slide 29: Egg Freezing and Storage Contract Service: Model Case ITOCHU
Egg Freezing and Storage Contract Service: Model Case ITOCHU Corporation Decision to offer Egg Freezing Anshin Bank service as part of career continuation support centered around Femtech*1 l Company will pay egg freezing and storage fees while employee is stationed overseas 3. Career continuation su
Slide 30: Expansion in Local Government Support for Egg Freezing
Egg Freezing and Storage Contract Service: Expansion in Local Government Support Local governments ramping up support for egg freezing No. of medical institutions conducting Increased eligibility for egg freezing subsidies tenfold in FY2023, egg freezing in Tokyo City*1 to 2,000 people*1 60 60 * • E
Slide 31: Appendix
Appendix 31
Slide 32: Agreement on New CEO Incentive Plan
Agreement on New CEO Incentive Plan On March 7, 2024, new CEO Takashi Sawada was granted the right to receive transfers of the Company's shares from its founders, Masayuki Yamakawa and Masato Tsumamoto, to provide even greater incentive for improving corporate value. Conditions for exercise of Stock
Slide 33: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The materials and information provided in this presentation contain so-called "forward-looking statements." These statements are based on current expectations, forecasts, and assumptions accompanying risks, and they may involve uncertainties that
Slide 34: CellSource
CellSource