Sms Co., Ltd. · TSE:2175

Sms — FY2017 Earnings Presentation

53 slides from Sms's earnings presentation, Apr 28, 2017

  1. Slide 1: Presentation Materials for Investor Relations

    SMS CO., LTD. (Securities Code: 2175 / TSE1 ) Presentation Materials for Investor Relations Financial Results Summary for the Fiscal Year Ended March 31, 2017 (the 14th Fiscal Year) April 28, 2017

  2. Slide 2: Table of Contents

    Table of Contents 1 FY03/17 Consolidated Financial Results P3-P7 FY03/18 Strategy, Consolidated Financial 2 P9-P40 Forecasts 3 Reference P42-P51 © Copyright SMS CO.,LTD. 1

  3. Slide 3: FY03/17 Consolidated Financial Results

    1 FY03/17 Consolidated Financial Results P3-P7 FY03/18 Strategy, Consolidated Financial 2 P9-P40 Forecasts 3 Reference P42-P51 © Copyright SMS CO.,LTD. 2

  4. Slide 4: FY03/17 Consolidated Financial Results

    １ FY03/17 Consolidated Financial Results  Both net sales and incomes increased YoY significantly.  Both net sales and incomes were in line with forecasts. P/L Statement [¥ million] FY03/16 FY03/17 FY03/17 YoY Change vs. Forecasts Actual Forecasts*1 Actual Net sales 19,069 24,051 23,054 +21% -4% Op

  5. Slide 5: Historical Financial Results

    1 Historical Financial Results  Achieved growth in both net sales and ordinary income for the 13th consecutive years since our establishment. Trends in net sales and ordinary income (Net Sales, JPY millions) (Ordinary Income, JPY millions) 30,000 8,000 27,000 7,200 24,000 23,054 6,400 21,000 19,069

  6. Slide 6: Career Segment (Full-year)

    1 Career Segment (Full-year)  Net sales increased 10% YoY.  Both Recruiting Agent and Media services in the Elderly Care achieved significant growth. Year-on-Year Comparison of Net Sales [¥ million] FY03/16 FY03/17 YoY changes Elderly Recruiting Agent 1,438 1,790 +24％ Care Media 1,833 2,234 +22％ M

  7. Slide 7: Elderly Care Segment (Full-year)

    1 Elderly Care Segment (Full-year)  Net sales increased 1% YoY.  Kaipoke continued to grow. Year-on-Year Comparison of Net Sales [¥ million] _ FY03/16 FY03/17 YoY changes Management Support for Service Operators 2,551 3,040 +19% New Businesses 421 487 +16% Total 2,972 3,528 +19% Highlights • Manag

  8. Slide 8: Medical Care, Healthcare and Overseas (Full-year)

    1 Medical Care, Healthcare and Overseas (Full-year)  In Overseas segment, MIMS group acquired in October 2015 contributed to net sales increase. Year-on-Year Comparison of Net Sales [¥ million] _ FY03/16 FY03/17 YoY changes Medical Care 652 591 -9％ Healthcare 117 176 +50％ Overseas*1 2,601 4,786 +84

  9. Slide 9: FY03/18 Strategy, Consolidated Financial Forecasts

    1 FY03/17 Consolidated Financial Results P3-P7 FY03/18 Strategy, Consolidated Financial 2 P9-P40 Forecasts 3 Reference P42-P51 © Copyright SMS CO.,LTD. 8

  10. Slide 10: Our Mission

    2 Our Mission We create value and contribute to society by providing an “information infrastructure for an aging society.” © Copyright SMS CO.,LTD. 9

  11. Slide 11: Business Segments and Service Recipients

    2 Business Segments and Service Recipients  Define our market segments as Elderly Care, Medical Care, Healthcare and Senior Life.  Provide values through organically connecting service operators, professionals, and end users. Market segments in an aging society Stakeholders covered by an informati

  12. Slide 12: Overseas Operations

    2 Overseas Operations  Started our businesses and have already established with high growth potential in Japan.  Expanding our businesses into the growing Asian*1 markets. ■ Asia Japan Thailand Korea Malaysia China Indonesia Hong Kong Vietnam Singapore Myanmar Philippines India ■Oceania Australia

  13. Slide 13: Size of Our Target Market

    2 Size of Our Target Market  Healthcare related expenditures continue to rise both in Japan and Asia.  In 2025, the size of our target market will be at least over $29.4 billion in Japan and Asia. Market size of healthcare related information services in Japan and Asia (USD billions) 671 Japan Eld

  14. Slide 14: Growth Track

    2 Growth Track  Our growth so far has been driven by Career businesses.  The Elderly Care Operators (Kaipoke) and Overseas segments are established as the basis for further growth. Strategic Units Breakdown of Net Sales by Segment (JPY millions) Career segment • Overwhelming No.1 player in the mar

  15. Slide 15: Growth Scenario

    2 Growth Scenario  On top of the career businesses' stable growth, accelerate Kaipoke’s growth and put MIMS on the growth track.  Develop a series of new businesses to create the next core businesses, which will further drive our growth in the future. 4. Growth of new businesses (Business Developm

  16. Slide 16: FY03/18 Consolidated Financial Forecasts

    2 FY03/18 Consolidated Financial Forecasts  Expecting 21% growth in net income. P/L Statement [¥ million] FY03/17 FY03/18 Difference YoY Actual Forecast (Amount) Changes Net Sales 23,054 27,804 +4,749 +21％ Operating Income 3,646 4,378 +732 +20％ Ordinary Income 4,430 5,137 +706 +16％ Net Income 2,801

  17. Slide 17: Historical Financial Results and Forecasts

    2 Historical Financial Results and Forecasts  Expecting to achieve growth in both net sales and ordinary income for the 13th consecutive year since our establishment. Trends in net sales and ordinary income (Net Sales, JPY millions) (Ordinary Income, JPY millions) 30,000 8,000 27,804 27,000 7,200 2

  18. Slide 18: Changes in Disclosed Segments

    2 Changes in Disclosed Segments  Change the disclosed segments based on the strategy. Former disclosed segments New disclosed segments Career Career Elderly Care Recruiting Agent Elderly Care Career Elderly Care Media Medical Care Recruiting Agent Medical Care Career Medical Care Media Elderly Care

  19. Slide 19: Career Segment

    Career Segment © Copyright SMS CO.,LTD. 18

  20. Slide 20: Environment: Care Workers and Nurses

    2 Environment: Care Workers and Nurses  Labor shortages continue to be a serious issue despite an increase in both care workers and nurses. The number of care workers and their turnover rate*1 The number of nurses and their turnover rate*3 (thousands) 1900 (thousands) 50 # of care workers CAGR: 5%

  21. Slide 21: Our Strengths

    2 Our Strengths  As a pioneer, created these attractive markets and continue to lead them going forward as the No.1 player.  With strong competitive advantages in attracting customers and receiving orders, create a virtuous cycle that draws more job seekers and business operators. Job seekers Oper

  22. Slide 22: Growth Scenario

    2 Growth Scenario  Services that have already established the top positon will continue to grow.  Develop Recruiting Agent for care workers on a full scale. Create markets and achieve significant growth. Our current and future sales by service*1 (JPY millions) Recruiting Agent for : Current sales

  23. Slide 23: Market Potential of Recruiting Agent for Care Workers

    2 Market Potential of Recruiting Agent for Care Workers  Market size of Recruiting Agent for care workers is expected to become as large as that of nurses. Potential number of users of care worker recruiting services*1 # of Workers 1,920,000 # of job # of Workers seekers 20% 1,610,000 390,000 # of

  24. Slide 24: The Strategy of Elderly Care Career

    2 The Strategy of Elderly Care Career  Expand uncovered market with a series of services for unmet needs through our information assets, such as approximately 70 thousand member database, and maximize the value for our customers.  Also support the acquisition of certifications/qualifications and c

  25. Slide 25: Career Segment FY03/18 Forecasts

    2 Career Segment FY03/18 Forecasts  Elderly Care Career will grow significantly based on the full-scale expansion of the Recruiting Agent for care workers.  Recruiting Agent for nurses will drive the growth of the Medical Care Career. Year-on-Year Comparison of Net Sales [¥ million] _ FY03/17 FY03

  26. Slide 26: Elderly Care Operators segment (Kaipoke)

    Elderly Care Operators segment (Kaipoke) © Copyright SMS CO.,LTD. 25

  27. Slide 27: Environment: Elderly Care Operators

    2 Environment: Elderly Care Operators  The number of elderly care operators continues to increase as the population of the seniors increases. The number of elderly care operators locations and population of the seniors*1 Number of care operators: thousands Population of the senior: millions # of el

  28. Slide 28: The Strategy of Kaipoke 1/3

    2 The Strategy of Kaipoke 1/3  Penetrated the market as a discounter of the insurance claim system.  Turned the insurance claim system into the business support and became the only company to provide the service of this kind to elderly care operators. Prior to February 2014 Starting in February 20

  29. Slide 29: The Strategy of Kaipoke 2/3

    2 The Strategy of Kaipoke 2/3  The number of members is steadily increasing in accordance with the initial strategy, despite some members cancelling when the concept changed. Number of memberships of Kaipoke Only insurance claim system Business support 13,600 13,500 10,400 Many companies entered th

  30. Slide 30: The Strategy of Kaipoke 3/3

    2 The Strategy of Kaipoke 3/3  Maximize the value provided to elderly care operators through expansion of corresponding elderly care operators types and development of new peripheral services Services provided Maximize the value provided to elderly Develop new care operators peripheral services Exp

  31. Slide 31: Elderly Care Operators Segment FY03/18 Forecasts

    2 Elderly Care Operators Segment FY03/18 Forecasts  Kaipoke continues to grow due to the rise in memberships. Year-on-Year Comparison of Net Sales*1 [¥ million] _ FY03/17 FY03/18 YoY Actual Forecasts Changes Elderly Care Operators 2,782 3,316 +19% Highlights • The rise in memberships contributes to

  32. Slide 32: Overseas Segment

    Overseas Segment © Copyright SMS CO.,LTD. 31

  33. Slide 33: MIMS Group Profile

    2 MIMS Group Profile MIMS Group global coverage MIMS group profile Founded 1963 Business ･Pharma Marketing models ･Healthcare Data Singapore, China, Hong Kong, South Korea, India, Indonesia, Philippines, Global Thailand, Malaysia, Vietnam, coverage Myanmar, Australia and New Zealand Number of Approx

  34. Slide 34: Strengths of MIMS Group

    2 Strengths of MIMS Group  Strengths of MIMS Group include its overwhelming brand value in the region, its strong membership base of healthcare professionals, and its business relationships with pharmaceutical companies.  50 years of history  Utilized by healthcare institutions/ 1. Overwhelming B

  35. Slide 35: Goals of MIMS

    2 Goals of MIMS  Strengthen the MIMS platform by providing healthcare professionals with a wide range of products and services.  Provide a range of services based on the strong platform for healthcare business operators.  Add the strengths of SMS and Mitsui to develop businesses for significant g

  36. Slide 36: Global Career Business

    2 Global Career Business  Full-scale expansion starts in FY03/18 using the strong platform of MIMS.  Establish a dominant position as healthcare professionals supply platform which supports career changes made not only within a country but also among Asia and from Asia to other areas. © Copyright

  37. Slide 37: Overseas Segment FY03/18 Forecasts

    2 Overseas Segment FY03/18 Forecasts  Full-scale expansion of the global career business commences in this fiscal year(FY03/18). Year-on-Year Comparison of Net Sales*1 [¥ million] _ FY03/17 FY03/18 YoY Actual Forecasts Changes Overseas 4,786 5,695 +19％ Highlights • Full-scale expansion of the globa

  38. Slide 38: Business Development Segment

    Business Development Segment (Formerly disclosed as New Businesses in Elderly Care segment, Medical Care segment and Healthcare segment) © Copyright SMS CO.,LTD. 37

  39. Slide 39: Business Portfolio

    2 Business Portfolio*1*2*3  Providing over 40 services.  Constantly develop new businesses to create the next core businesses. Sub- Segment Services segment RAG for care managers RAG for PT/OT/ST RAG for care workers Certification course information Com for PT/OT/ST Elderly Care RAD for newly-grad

  40. Slide 40: Advantages in Business Development

    2 Advantages in Business Development  Develop new businesses making use of the established bases of service operators and professionals in the elderly and medical care markets. Shares of each customer Large-sized Small and mid-sized Hospitals Clinics elderly care operators elderly care operators 50

  41. Slide 41: Dividends

    2 Dividends  Plan to pay a dividend of ¥11 per share Trends of the amount and the payout ratio of dividends*1 16.3％ 18.0% 15.6% 14.8% 16.0% 13.6% ¥11 12.5% 12.3% 14.0% 11.6% 12.0% ¥7 ¥7 10.0% 6.8% ¥5 8.0% ¥4 ¥3 6.0% ¥2.50 4.0% ¥1.25 2.0% 0 0.0% FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/1

  42. Slide 42: Reference

    1 FY03/17 Consolidated Financial Results P3-P7 FY03/18 Strategy, Consolidated Financial 2 P9-P40 Forecasts 3 Reference P42-P51 © Copyright SMS CO.,LTD. 41

  43. Slide 43: Business Models of Recruiting Agent and Recruiting Ads (Career segment)

    3 Business Models of Recruiting Agent and Recruiting Ads (Career segment) Business model of Recruiting Agent Receive a certain percentage of an annual salary from a hiring business operator as a fee when an applicant joins it. Website Attract new customers Sales activity Registration Request recruit

  44. Slide 44: Business Model of Kaipoke (Elderly Care Operators segment)

    3 Business Model of Kaipoke (Elderly Care Operators segment) ･Main contents out of approx. 40 contents ･Provides these contents as a package Insurance claim Generates claims for the elderly care insurance. Provide cloud-based system business support service Recruiting Allows customers to use SMS’s i

  45. Slide 45: Business Models of MIMS (Overseas segment)

    3 Business Models of MIMS (Overseas segment) Pharma Marketing Healthcare Data Pharmaceutical Companies • Drug database Posting Fee Drug information • Database can be integrated Usage fee into core systems of healthcare institutions Drug information via various media (mainly paper based) Healthcare P

  46. Slide 46: Consolidation of MIMS Financial Results (Overseas segment)

    3 Consolidation of MIMS Financial Results (Overseas segment)  MIMS P/L statement is consolidated to SMS P/L statement following a time lag of three months. Image of Consolidating MIMS P/L to SMS Consolidated P/L (excl. MIMS)*1 FY16 FY17 1Q 2Q 3Q 4Q 1Q 2Q ・・・ Apr.-June P/L July-Sep. P/L Oct.-Dec. P/

  47. Slide 47: Seasonal Volatility

    3 Seasonal Volatility  Net sales and operating income tend to increase in Q1 and Q4. Seasonal Volatility of Net Sales and Operating Income Businesses with Seasonal Volatility and Reasons Quarterly Net Sales and Operating Income (FY03/17) Businesses whose net sales and operating [¥ million] income i

  48. Slide 48: Historical Financial Results

    3 Historical Financial Results (JPY million) FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Net Sales 58 383 835 1,545 2,715 5,177 7,172 7,618 8,692 10,181 12,046 15,056 19,069 23,054 Cost of Sales 0 5 20 38 77 149 375 319 431 700 952 1,332 2,204 3,727 SG&A 63 326 705 1,237 2,

  49. Slide 49: Launch of Services 1/3

    3 Launch of Services 1/3 03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15 03/16 03/17 RAG for care managers: Care Jinzai-bank May 2003 RAD for newly graduated elderly care professionals: Kaigo Job Gakusei-ban July 2003 Certification course information: Sikatoru Nov. 2003 RAD f

  50. Slide 50: Launch of Services 2/3

    3 Launch of Services 2/3 03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15 03/16 03/17 Elderly Care Business support service for elderly care operators: Kaipoke July 2006 Operators (Korea) Com for nurses: Nurscape Sep. 2011 (Indonesia) Doctor consultation: MeetDoctor Jul. 2013

  51. Slide 51: Launch of Services 3/3

    3 Launch of Services 3/3 03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15 03/16 03/17 Information portal for hospital management: GALENUS May 2013 Home-delivered meal search site: Lifood Nov. 2013 Q&A site on health: Narukara Dec. 2013 User review site regarding elderly care o

  52. Slide 52: Number of Employees and Shareholder Composition

    3 Number of Employees and Shareholder Composition Number of employees  Number of employees and its breakdown as of March 31, 2017 Employees (consolidated) 1,781 SMS CO., LTD. 257 SMS Career CO., LTD. 615 Subsidiaries and Sub-subsidiaries 909 Japan 254 Overseas 655 Shareholder composition*1 [as of M

  53. Slide 53: Cautionary Statement with Respect to Forward-Looking Statements

    Cautionary Statement with Respect to Forward-Looking Statements These materials contain forward-looking statements, including estimates, projections, and statements related to the business operations of SMS CO., LTD. (hereinafter, “the Company”) based on current expectations and assumptions in light

SMS — FY2017 Earnings Presentation on 6ix