Sms Co., Ltd. · TSE:2175
Sms — Q2 FY2013 Earnings Presentation
31 slides from Sms's earnings presentation, Oct 31, 2013
Slide 1: Presentation Materials for Investor Relations
SMS CO., LTD. (Securities Code 2175 / TSE1 ) Presentation Materials for Investor Relations Including Earnings Results Summary for the Q2 of Fiscal Year Ending March 31, 2014 (the 11th Fiscal Year) October 31, 2013
Slide 2: Today's Agenda
Today’s Agenda 1 Our Mission & Strategy p.3-p.17 2 Q2 FY03/14 Consolidated Earnings Results p.19-p.29 © Copyright SMS CO.,LTD. 1
Slide 3: Our Mission & Strategy
1 Our Mission & Strategy p.3-p.17 2 Q2 FY03/14 Consolidated Earnings Results p.19-p.29 © Copyright SMS CO.,LTD. 2
Slide 4: Our Mission
1 Our Mission We create value and contribute to society by being the best provider of “Information infrastructure for an aging society”. SMS stands for “Senior Marketing System.” © Copyright SMS CO.,LTD. 3
Slide 5: Our Target Market Segments in an Aging Society
1 Our Target Market Segments in an Aging Society We provide services in the following three market Segments. * We define "Active Senior" as those aged who are active in work and hobbies with strong passion and motivation to be lively part of society. Active Senior* Care Workers Nurses Care Mana
Slide 6: Our Role in an Aging Society
1 Our Role in an Aging Society We provide “Information infrastructure” as an intermediary between information seekers and information providers. Information Information Providers Seekers Mobile PCs Magazines Others Phones To Collect To Organize To Convey © Copyright SMS CO.,LTD. 5
Slide 7: Our Clients/Customers
1 Our Clients/Customers We provide our services to the following eight groups. Active Senior Overseas Businesses China, Korea, Professionals Taiwan, etc. Service End operators Users Professionals Professionals Service End Service End Operators Users Operators Users Nursing Care Medical Care © Copy
Slide 8: Nursing Care Market: Our Clients/Customers and Services
1 Nursing Care Market: Our Clients/Customers and Services We provide 12 types of services in nursing care market. Nursing Care RAG*1for care managers Com*4 for care managers RAG*1 for PT/OT/ST*2 Com*4 for care workers RAD*3 for care workers RAD*3 for newly-graduated Professionals Com
Slide 9: Medical Care Market: Our Clients/Customers and Services
1 Medical Care Market: Our Clients/Customers and Services We provide 12 types of services in medical care market. RAG*1 for nurses Medical Care RAG*1 for doctors Com*3 for nurses and student RAG*1 for pharmacists nurses RAD*2 for nurses Mail order for nurses RAD*2 for newly-graduated
Slide 10: Future Vision: A New Industry
1 Future Vision : A New Industry SMS believes that “Information infrastructure for an aging society ” will develop into a major industry. Social background Emergence of a new industry Demographics IT Macroeconomic trends Telecommunications Education Social insurance system Housing “Information Nur
Slide 11: Information Infrastructure for an Aging Society (At Present)
1 ”Information Infrastructure for an aging society”(At Present) "Information infrastructure for an aging society" has enormous business potential. Currently, we have relatively few services and have not yet maximized the synergies between our services. Related？business operators ？ Communication
Slide 12: Information Infrastructure for an Aging Society (In the Future)
1 "Information Infrastructure for an aging society”(In the Future) As we develop numerous services and generate synergies between our services, a new industry will emerge. Related？business operators ？ Communication Travels carriers Health ？ Service ？ operators ？ foods Health Ware- clubs ？ Professi
Slide 13: Our Strategy: "Lock-in and Cultivate"
1 Our Strategy: "Lock-in and Cultivate" “Lock-in” clients/customers by “Daily use" services. “Cultivate” business opportunities by “Occasional use" services. “Daily use” services “Occasional use” services “Lock-in” Clients/Customers Information portal on Recruiting Agent housing for elderly Prof
Slide 14: "Lock-in and Cultivate" in Nursing Care (Kaipoke Biz)
1 "Lock-in and Cultivate" in Nursing Care (Kaipoke Biz)*1 1. Attract and “lock-in” small-sized nursing care operators by offering a nursing care insurance claim system as ASP*2 at lower price. 2. Cultivate business opportunities by offering Recruiting ads service and other management support service
Slide 15: "Lock-in and Cultivate" in Medical Care
1 "Lock-in and Cultivate" in Medical Care 1. “Lock-in” nurses by offering new services in “Daily-life” and “Career development” categories, and strengthen relationship with nurses. 2. Cultivate business opportunities by offering various services including Recruiting agent service and others. RAG*3 J
Slide 16: FY03/14 Initiatives
1 FY03/14 Initiatives Create and execute strategies for each business segment and accelerate business development. Start to develop new services in the “Active senior” segment. Corporate Structure Aims Business segments Assign a senior executive to each business segment Medical Care Nursing Care
Slide 17: Scenario for Mid-term Growth
1 Scenario for Mid-term Growth Segment or service • Labor shortages continue, creating major ①Growth of recruiting opportunities to expand recruiting businesses businesses • Achieve growth by enhancing “Daily use” services and improving productivity • Increase the number of service operators using “
Slide 18: Sales Composition
1 Sales Composition The nursing care segment for 20% and the medical care accounts for 80% of net sales. Recruiting agent service for nurses accounts for 60% of net sales. Sales composition by business segment (FY ending March 2013, % of sales) [￥ billion] Total 10.1 Nursing care（1.9, 19%） Medic
Slide 19: Q2 FY03/14 Consolidated Earnings Results
1 Our Mission & Strategy p.3-p.17 2 Q2 FY03/14 Consolidated Earnings Results p.19-p.29 © Copyright SMS CO.,LTD. 18
Slide 20: Financial Results and Financial Forecasts
2 Financial Results and Financial Forecasts Plan to achieve growth both in net sales and in ordinary income for ten consecutive years since the establishment of the company. (¥ million) Trends in net sales ( LHS) and ordinary income (RHS)*1 (¥ million) 14,000 5,250 Net Sales Ordinary Income 12,475
Slide 21: Consolidated Earnings Results for 1H FY03/14
2 Consolidated Earnings Results for 1H FY03/14 Net sales was in line with the initial forecasts and income exceeded the initial forecasts. YoY growth in net sales and income. P/L Statement (￥ million) 1H FY03/13 1H FY03/14 1H FY03/14 FY03/14 YoY Change To Forecasts Actual Forecasts Actual Foreca
Slide 22: Analysis of Differences in P/L (Actual to Forecasts) and Prospects
2 Analysis of Differences in P/L (Actual to Forecasts) and Prospects Net sales and income was in line with initial forecasts in 1H. The forecasts remain the same because the investments delayed in 1H will be carried out. Control expenses according to the progress of net sales to achieve the ne
Slide 23: Analysis of Year-on-Year Difference: Net Sales
2 Analysis of Year-on-Year Difference: Net Sales Net sales increased by ￥1 billion YoY(18%). Net sales increased in all segments. YoY differences of net sales by segment*1 6,500 (￥ million) ＋40 6,420 +63 ＋10 ＋378 6,200 ＋162 5,900 +979 ＋171 +152 5,600 5,440 5,300 5,000 2013年 RAG *2 Media NB *３ RA
Slide 24: Analysis of Year-on-Year Differences: Operating Income
2 Analysis of Year-on-Year Differences: Operating Income Operating income increased YoY while increasing investments in new businesses. ⁃ Operating income from services in profit generating stage increased steadily. ⁃ Operating income from services in development stage decreased mainly due to incr
Slide 25: Nursing Care Segment: Strategy for the Next Three Years
2 Nursing Care Segment : Strategy for the Next Three Years*1 50% of working care managers are 16% of small-sized nursing our online community users. care operators are our clients. Care managers 【Professio- Develop marketing support “Kaipoke biz” is going to services leveraging strong become a “busi
Slide 26: Nursing Care Segment: Sales up 56% YoY
2 Nursing Care Segment: Sales up 56% YoY Net sales increased in all services. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) FY03/13 FY03/14 FY03/13 FY03/14 (￥ million) YoY Chg (￥ million) YoY Chg 1H 1H 1H 1H Daily Use
Slide 27: Medical Care Segment: Strategy for the Next Three Years
2 Medical Care Segment: Strategy for the Next Three Years*1 Nurses Doctors , Pharmacists Provide RAG*2 and RAD*3 for doctors and pharmacists in Market share for RAG*2 is m3career. 25-30%（Market share for all career change is 7%). Hospitals Doctors Pharmacists 60% of hospitals are our 【Professio- Cli
Slide 28: Medical Care Segment: Sales Up 10% YoY
2 Medical Care Segment: Sales Up 10% YoY Net sales increased in “Occasional Use” services including Recruiting Agent service for nurses. ■ Year-on-Year Comparison of net sales (Current Classification) ■ Year-on-Year Comparison of net sales (Former Classification) FY03/13 FY03/14 FY03/13 FY03/14 (￥
Slide 29: Overseas Businesses: Strategy for the Next Three Years
2 Overseas Businesses: Strategy for the Next Three Years*1 Develop new services to meetmarket needs of each country. Expand overseas businesses by developing services and building up alliances with local players. China Korea ・SMS BEIJING ・SMS KOREA CO., LTD. ・Establish a subsidiary in Shanghai i
Slide 30: Overseas Businesses: Sales Up 58% YoY
2 Overseas Businesses: Sales Up 58% YoY Net sales increased in “Nurscape”, online community for nurses in South Korea. iHealth, which operates a medicine delivery service in Taiwan, contributed to the sales increase. Continue to move forward with research and development of services throughout
Slide 31: Caution on Forward-Looking Statements
Caution on Forward-Looking Statements These materials contain forward-looking statements, including estimates, projections, and statements related to business operations of SMS CO., LTD. (hereinafter referred to as the “Company”). The forward-looking statements are based on current expectations and