Cellsource Co., Ltd. · TSE:4880
Cellsource — Q1 FY10/2025 Earnings Presentation
39 slides from Cellsource's earnings presentation, Mar 11, 2025
Slide 1: Earnings Presentation Q1 FY10/2025
Earnings Presentation Q1 FY10/2025 CellSource Co., Ltd (TSE Prime: 4880)
Slide 2: Table of Contents
Table of Contents New Management Structure Financial Results and Progress in Q1 FY10/2025 Upfront Investment Progress for Realizing CellSource Vision Other Updates
Slide 3: New Management Structure
New Management Structure
Slide 4: New Management Structure
New Management Structure Masayuki Yamakawa assumed the position of chairman of the board of directors Reinforced the management structure to accelerate the realization of CellSource Vision l Leveraging his expertise as a physician, Representative Chairman of the Board Yamakawa will participate in fo
Slide 5: Financial Results and Progress in Q1 FY10/2025
Financial Results and Progress in Q1 FY10/2025
Slide 6: Q1 FY10/2025 Results Overview
Net Sales Operating Profit Profit JPY 849 million JPY -62 million JPY -45 million (-27.6% YoY) (- YoY) (- YoY) Blood-derived product Operating Profit ASC contract contract processing Margin processing orders orders -7.3% 4,636 345 (-24.8pp YoY) (-7.0% YoY) (-12.8% YoY) Financial results are presente
Slide 7: "Year 0" Commitments and Progress
“Year 0” Commitments and Progress Steadily working on “Year 0” commitments outlined in the CellSource Vision released at the previous quarterly earnings announcement Aim to release a medium-term management plan by the fiscal year-end 1 Commitments Progress Optimize ● Concentrate management resources
Slide 8: Earnings Forecast for FY10/2025: Progress
Earnings Forecast for FY10/2025: Progress Q1 net sales reached 93% of our forecast. By controlling SG&A expenses, we succeeded in achieving approaximately the expected level of operating profit [Millions of yen] Q1 Forecast vs. Actual Contract processing services 4,501 Exosome related: JPY -58 milli
Slide 9: Q1 FY10/2025 Performance Summary
Q1 FY10/2025 Performance Summary Sales declined, primarily for contract processing services, leading to lower sales and profit QoQ FY10/2024 FY10/2025 FY10/2024 FY10/2025 Achievement l Sales: Excluding medical device sales, [Millions of yen] QoQ YoY Forecast sales across all services declined. Q4 Q1
Slide 10: Sales by service decline in self-funded clinics' contract processing
Sales for contract processing services for orthopedic clinics specializing in self-funded treatment declined sharply. Despite higher medical device sales QoQ, overall sales declined [Millions of yen] Cosmetic sales and other Medical device sales Q1 FY10/2024 Q1 FY10/2025 YoY Medical institutions sup
Slide 11: Monthly Contract Processing Orders for Blood-derived Products by Department
Monthly Contract Processing Orders for Blood-derived Products by Department (No. of In Q1, contract processing orders were on a recovery track after hitting bottom in December orders) Cosmetics OB&GYN (see p. 35, “Average daily contract processing orders”) Self-funded orthopedics*1 50% 2,500 Hybrid
Slide 12: YoY Change in KPIs Comprising Blood-derived Product Processing Orders
YoY Change in KPIs Comprising the No. of Blood-derived Product Processing Orders Orders from medical institutions specializing in self-funded treatment continued to decline. For hybrid clinics, despite efforts to focus sales activities on key clinics, the number of active clinics remained at around
Slide 13: Issues Facing Self-funded Treatment Institutions and Countermeasures
Identifying Issues Facing Medical Institutions Specializing in Self-funded Treatment and Countermeasures Identified management issues and established a support structure Highly volatile patient • Fluctuations in advertising effects have direct impact on earnings acquisition • High advertising expens
Slide 14: YoY Change in Processing Orders from Hybrid Clinics
YoY Change in Blood-Derived Product Processing Orders from Hybrid Clinics We have enhanced sales strategies and concentrated resource allocation have successfully increased orders from target medical institutions. We aim to further increase in the number of orders per target institution Group1: Targ
Slide 15: Gross Profit and Operating Profit
Gross Profit and Operating Profit Gross profit declined due to lower sales, excluding the one-off impact of loss provisions booked in the previous quarter* 1 . While SG&A expenses decreased owing to cost-reduction measures, operating profit fell QoQ, excluding the one-off impact* 1 [Millions of yen]
Slide 16: Breakdown of YoY Decline in Q1 Gross Profit
Breakdown of YoY Decline in Q1 Gross Profit Gross profit declined YoY in Q1, due to lower sales to medical institutions specializing in self-funded treatment and decreased exosome-related sales in contract processing services, as well as a decline in [Millions of yen] raw material sales in the cosme
Slide 17: Analysis of Gross Profit Margin
Analysis of Gross Profit Margin GPM* 1 declined slightly, primarily due to lower sales from contract processing services Gross profit*1 Overview Gross profit margin 55.6%*1 -0.7pt Change in sales mix • Sales weighting of medical devices, which 564*1 +0.4pt carry relatively high GPM, increased Gross
Slide 18: SG&A Expenses
SG&A Expenses SG&A expenses declined QoQ, owing to the review of selling and other expense items. [Millions of yen] Continued investing in human capital to drive future growth Other Advertising expenses + sales promotion expenses Q1 FY10/2024 Q1 FY10/2025 YoY R&D expenses 700 Rent expenses + depreci
Slide 19: Progress of the SG&A Expense Review
Progress of the SG&A Expense Review Reallocation of SG&A expenses underway in line with the initial plan Difference between FY10/2024 Difference between FY10/2024 Business FY10/2025 SG&A plan results and FY10/2025 budget results and FY10/2025 budget Concentrate management resources here, as - + Q1 P
Slide 20: Rent Expenses
Rent Expenses Exit from former office and manufacturing facility completed, resulting in decrease from Q2 in inefficiencies associated with doubling up of facilities Cost of sales + SG&A expenses Cost of sales SG&A expenses [Millions of yen] [Millions of yen] [Millions of yen] • Began booking rent f
Slide 21: Balance Sheet
Balance Sheet With no significant change in the balance sheet in Q1, we maintained a sound financial position Cash and deposits Current liabilit ies Other current asset Non-current liabilities Non-current assets Net assets [Millions of yen] 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Financial resul
Slide 22: Upfront Investment Progress for Realizing CellSource Vision
Upfront Investment Progress for Realizing CellSource Vision
Slide 23: "Year 0" Commitments and Progress
“Year 0” Commitments and Progress Steadily working on “Year 0” commitments outlined in the CellSource Vision released at the previous quarterly earnings announcement Aim to release a medium-term management plan by the fiscal year-end 1 Commitments Progress Optimize ● Concentrate management resources
Slide 24: Timeline Toward the Release of the Medium-Term Management Plan
Timeline Toward the Release of the Medium-Term Management Plan In the current fiscal year, positioned as “Year 0,” we are working to develop a standardized, reproducible business model “template”, and will announce a scale-out scenario as part of the medium-term management plan Positioning of FY10/2
Slide 25: Initial PoC Evaluations with NTT Docomo: Survey and Content
Progress in “Year 0”: Began Initial PoC Evaluations with NTT Docomo Targeting approx. 1.27 million d Healthcare app users, conducted a survey on knee concerns About 30% of respondents reported experiencing knee-related symptoms Delivered targeted content to users with knee concerns Conducted a surve
Slide 26: Initial PoC Evaluations with NTT Docomo: Online-to-Offline Pathway
Progress in “Year 0”: Began Initial PoC Evaluations with NTT Docomo Designed an online-to-offline pathway for interested users Co-hosted a public seminar on knee disorders in collaboration with local clinics, featuring specialist physicians Hosted an offline public seminar Offline seminar Approach d
Slide 27: Launched Pilot Tests for the Medical Fitness Business
Progress in “Year 0”: Launched Pilot Tests for the Medical Fitness Business At the pilot facility, planned and upgraded exercise programs and began PoC evaluations Working on developing a standardized template for nationwide expansion Secured pilot test sites for PoC evaluations Conducted PoC evalua
Slide 28: Other Updates
Other Updates
Slide 29: Transfer of Subsidiary Medibase's Business
Transfer of Subsidiary Medibase’s Business Transferred the businesses of Medibase Co., Ltd, acquired in September 2024. The personnel will remain within CellSourcre, utilizing technology and know-how to realize the “CellSource Vision” • Succeeding Company GMO Beauty Co., Ltd. Overview of • Transfer
Slide 30: KPIs Appendix
KPIs Appendix
Slide 31: Business KPI Highlights for Q1 FY10/2025
Business KPI Highlights for Q1 FY10/2025 Number of partner Blood-derived product Adipose-derived stem cell contract processing orders contract processing orders medical institutions (Q1) (Q1) 1,982 4,636 345 (+180 YoY) (-12.8% YoY) (-7.0% YoY)
Slide 32: Number of Partner Medical Institutions
Number of Partner Medical Institutions*1 1,955 1,982 2,000 No. of partner medical institutions 1,923 1,865 1,802 1,800 1,749 1,654 1,600 1,557 1,455 1,400 1,200 End Q1 FY10/2025 1,000 1,982 800 (+ 180 YoY) 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY10/2023 FY10/2024 FY10/2025 *1: Excludes the number
Slide 33: Number of Contract Processing Orders for Blood-derived Products
Number of Contract Processing Orders for Blood-derived Products 7,000 6,569 6,363 6,000 6,000 5,832 5,618 5,314 5,202 4,997 5,000 4,636 Q1 FY10/2025 4,000 3,000 4,636 orders (-12.8% YoY) 99,651 orders 2,000 Cumulative: 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY10/2023 FY10/2024 FY10/2025 As of FY10/2024,
Slide 34: Number of Contract Processing Orders for Adipose-derived Stem Cells
Number of Contract Processing Orders for Adipose-derived Stem Cells (ASC) 700 617 600 520 515 500 431 439 421 Q1 FY10/2025 345 400 371 368 345 orders (-7.0% YoY) 300 200 Cumulative: 9,564 orders 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY10/2023 FY10/2024 FY10/2025 As of FY10/2024, the number of contract pr
Slide 35: Daily Average Number of Contract Processing Orders
Daily Average Number of Contract Processing Orders 100 87.0 80.2 78.5 80 75.4 76.0 69.1 69.8 68.9 70.1 68.6 68.6 65.9 64.9 62.8 61.7 61.5 60.1 59.1 60 57.5 57.5 57.7 57.1 56.0 53.1 47.9 40 20 0 Daily average number of contract processing orders is calculated based on preliminary number of processing
Slide 36: KPIs Comprising the No. of Blood-derived Product Processing Orders
KPIs Comprising the No. of Blood-derived Product Processing Orders Q2/FY2023 Q2/FY2024 FY10/2024 FY10/2025 Q1/FY2024 Q1/FY2025 Latest twelve Latest twelve Q1 Q2 Q3 Q4 Q1 months (LTM) months (LTM) Number of partner medical institutions (quarter-end) 16 16 14 15 15 16 15 Specializing in Active ratio*3
Slide 37: Quarterly Financial Data FY10/2023 to FY10/2025
FY10/2023 FY10/2024 FY10/2025 [Millions of yen] Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Sales 1,059 1,111 1,235 1,104 1,173 1,054 1,113 1,013 849 Contract processing 743 735 873 793 664 671 712 694 555 services Medical institutions support services (formerly consulting services) 113 109 134 77 56 62 42 24 21
Slide 38: 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 39: CellSource
CellSource