Supplementary Information on Financial Results

Transcription

1 Supplementary Information on Financial Results For the First Half of 2017 artra corporation Stock code:

2 Results for the First Half of

3 Highlights of the First Half of 2017 Sales and ordinary income increased Sales rose by 23.3% to 1,852 million and ordinary income increased by 21.1% to 142 million Equipment and supplies sales were higher The number of Honetsugi chain clinics increased by 10 to 96 The first Honetsugi chain clinic outside Japan has started operating in Thailand Artra Billing Service membership increased by 277 to more than 2,300 Clinics using the Honey-Style service increased by 42 to 570 3

4 Honetsugi Chain Clinics Hokkaido: 1 Tohoku: 4 Kanto: 26 Chubu: 21 Kinki: 9 Chugoku: 14 Shikoku: 4 Kyushu/Okinawa: 16 Thailand: Total:

5 Registered Users of the Artra Billing Service (A-COMS Basic) Why clinics choose A-COMS Basic Reasonable fees Ability to analyze business operations Data is stored on a highly secure server 2,346 2,069 1,695 1,309 1,

6 Loans for Conversion of Insurance Receivables into Cash Reasons for growth in loans outstanding for the conversion of insurance receivables into cash Cash flow difficulties at acupuncture, moxibustion and Judo therapy clinics An optional service for Artra Billing Service members (Thousands of yen) 482, , ,

7 Growth in Number of Clinics Using Honey-Style Service Why clinics choose Honey-Style An appointment system using mobile devices Includes products for sale to patients Use of points improves profit margins on merchandise sold to patients Includes a menu of services not covered by insurance

8 Sales of Equipment and Supplies Reasons for growth in sales of equipment and supplies Increasing use of procedures that are not covered by insurance Sales of equipment following seminars The Artra Store e-commerce site became accessible to the public 1,485,525 (Thousands of yen) 899, , ,

9 Net Sales (Thousands of yen) First half of 2016 First half of 2017 YoY change Honetsugi chain 440, , % Artra Billing Service 164, , % Honey-Style 125, , % Equipment and supplies sales 701, , % Management consulting for nationally certified acupuncture, moxibustion and Judo therapy clinics 46,060 34, % Nursing care support and other 24,498 51, % Total 1,502,146 1,852, % At the end of the first half, there were 96 Honetsugi chain clinics, 2,346 members using the Artra Billing Service and 570 clinics using the Honey-Style marketing and appointment service. Honey-Style sales were up due to higher sales from the Honetsugi Academy seminars. Sales benefited from an increase in sales of equipment used for procedures not covered by insurance. 9

10 Statement of Income (vs. Initial Plan) Initial plan First half of 2017 Results (Thousands of yen) Vs. Initial plan Net sales 1,954,000 1,852, % Operating income 20, , % Ordinary income 19, , % Profit 10,000 81, % Net income per share 1.15 yen 9.35 yen - A focus on the increasing use of non-insured procedures resulted in increases in seminar sales and sales of equipment and supplies. At the Honetsugi chain clinics, the number of new clinics was less than planned. The cause was slower than expected progress with finding locations for new clinics and hiring nationally certified individuals. 10

11 Statement of Income (Thousands of yen) First half of 2016 First half of 2017 YoY change Net sales 1,502,146 1,852, % Gross profit 597, , % SG&A expenses 459, , % Operating income 138, , % Ordinary income 117, , % Profit 71,235 81, % Net income per share 9.11 yen 9.35 yen - The number of Honetsugi chain clinics and members using the Artra Billing Service and Honey-Style increased. A focus on the increasing use of non-insured procedures resulted in increases in seminar sales and sales of equipment and supplies. There were expenses associated with the opening of the Osaka office. 11

12 Balance Sheet (Thousands of yen) As of December 31, 2016 As of June 30, 2017 Change Current assets 2,063,149 2,113,000 49,850 Non-current assets 732,850 1,077, ,920 Total assets 2,796,000 3,190, ,771 Current liabilities 1,098,896 1,378, ,074 Non-current liabilities 218, ,830 58,191 Total liabilities 1,317,535 1,655, ,265 Total net assets 1,478,464 1,534,970 56,505 Net assets per share yen yen - Shareholders equity ratio 52.9% 48.1% - Assets increased mainly due to increases in merchandise and investment securities. Liabilities increased mainly due to an increase in short-term loans payable. Net assets increased mainly due to recording of profit. 12

13 Initiatives for Growth 13

14 Initiatives for Growth Our goal is to help extend the years of healthy life by starting the new business of selling nursing care equipment while continuing the growth of current business activities. Business goals 1. Growth of the Honetsugi chain Actions Expand the chain while preserving the high quality of all clinics. Increase productivity to support growth. 2. Growth of the IT support business 3. Growth of equipment sales Develop new content services for the growth of this business. Increase sales of the non-insured procedures packages. Increase sales of equipment at seminars in association with the growing use of non-insured procedures. Increase sales of nursing care equipment to add a new category to the equipment sales business. 14

15 Number of New Nationally Certified Judo Therapists Number of New Nationally Certified Judo Therapists 5,069 4,763 4,416 3,755 5,570 5,349 5,227 4,582 4,592 4,438 4,503 4,274 2,902 2,215 2,108 1,059 1,1371, ,005 1,063 1,091 1,041 1,128 1,024 Source: Foundation for Training and Licensure Examination in Judo Therapy 15

16 Number of New Nationally Certified Acupuncture and Moxibustion Therapists Number of New Nationally Certified Acupuncture Specialists 4,347 3,789 4,068 4,216 3,990 3,396 2,998 2,141 2,206 2,266 2,663 2,098 2,059 2,114 2,138 2,230 2,217 2,237 4,553 3,651 4,005 3,892 3,808 3,504 3,032 Number of New Nationally Certified Moxibustion Specialists 3,785 4,0724,344 4,171 3,939 3,382 2,958 2,079 2,153 2,048 2,192 2,233 2,214 2,255 2,627 2,125 2,136 2,233 4,595 3,4984,138 3,946 3,773 3,550 3,010 Source: Public Interest Incorporated Foundation for Training and Licensure Examination in Anma Massage Acupressure, Acupuncture and Moxibustion 16

17 Health Insurance Payments to Nationally Certified Acupuncture, Moxibustion and Judo Therapy Clinics Health Insurance Payments to Nationally Certified Acupuncture, Moxibustion and Judo Therapy Clinics (100 millions of yen) 6,000 柔道整復 Judo はり きゅう Acupuncture その他 Others therapy and moxibustion Judo Therapy Locations 34,839 30,787 27,771 25,975 37,997 42,431 45,572 5,000 4, Fiscal 年 2004 Fiscal 年 2006 Fiscal 年 2008 Fiscal 年 2010 Fiscal 年 2012 Fiscal 年 2014 Fiscal 年 ,000 Number of Employed Judo Therapists 58,573 63,873 50,428 2,000 3,830 3,933 4,023 4,068 4,085 3,985 3,855 32,483 35,077 38,693 43,946 1, Fiscal年度 Fiscal年度 Fiscal年度 Fiscal年度 Fiscal年度 Fiscal 年度 Fiscal 年度 2013 Source: Medical Economics Division, Health Insurance Bureau, MHLW (Fiscal ) Actuarial Research Division, Health Insurance Bureau, MHLW (Fiscal ) 2002 Fiscal 年 2004 Fiscal 年 2006 Fiscal 年 2008 Fiscal 年 2010 Fiscal 年 2012 Fiscal 年 2014 Fiscal 年 Source: Report on Public Health Administration and Services Fiscal 2014, MHLW 17

18 Composition of Sales for Categories of Services ,564 million Management consulting for nationally certified acupuncture, moxibustion and Judo therapy clinics Nursing care support and other ,251 million Management consulting for nationally certified acupuncture, moxibustion and Judo therapy clinics 2.7% 1.6% Nursing care support and other IT Support 2.8% 4.4% Equipment and supplies 30.3% Honetsugi chain 41.0% IT Support Equipment and supplies 45.7% Honetsugi chain 31.3% 10.3% Honey-Style 11.2% Artra Billing Service 8.5% Honey-Style 10.2% Artra Billing Service 18

19 Growth Vector 1 Hold seminars and sell more equipment associated with the growing use of non-insured procedures Nationally certified acupuncture, moxibustion and Judo therapy clinics Publications distributed to about 48,000 clinics nationwide Internet members of the Honetsugi Academy (8,608 members as of June 30, 2017) Provision of information Honey-Style Artra Billing Service Information is supplied in publication articles and at seminars Equipment and supplies 19

20 Growth Vector 2-1 Started trial operation of a service in the nursing care sector Started the trial operation at 10 nursing care facilities of a multi-function high-frequency EMS Artra has obtained the exclusive right to sell the multi-function high-frequency EMS Excare Pro III in the nursing care sector as well. Special nursing care home Hyakunen-no-sato Social Welfare Corporation Seijinkai Community- based nursing care home Kura House Ofunato (A study group visiting the home) Special nursing care home Seijin Mori-no-sato Sendai Social Welfare Corporation Mori-no-sato Fukushikai 20

21 Growth Vector 2-2 Use of the multi-function high-frequency EMS to improve aspiration pneumonia New report: Results of tests by Professor Kozo Yokoyama of Kagoshima University Improvement in dementia, improvement in aspiration pneumonia NATIONAL SANATORIUM KEIAIEN Department of Speech Language and Hearing, Kagoshima Daiichi Medical Treatment Rehabilitation College Professor Kozo Yokoyama Report on use of high-frequency electrical treatment The Functional Oral Intake Scale (FOIS) This treatment ended aspiration pneumonia and allowed patients to ingest food through the mouth. Individuals with dementia became able to communicate. Currently, three patients are using this treatment. Examinations and treatment at a clinic Kozo Yokoyama Nothing by mouth Tube dependent with minimal attempts of food or liquid Tube dependent with consistent oral intake of food or liquid Total oral diet of a single consistency Total oral diet with multiple consistencies, but requiring special preparation or compensations Total oral diet with multiple consistencies without special preparation, but with specific food limitations Total oral diet with no restrictions

22 artra corporation Tokyo Stock Exchange, First Section (Stock code: 6029) Daika Bldg , Itachibori, Nishi-ku, Osaka IR contact: Administration & Human Resource Dept. TEL: (main switchboard) Disclaimer Plans and forecasts of future performance in this presentation are based on information available to artra corporation at the time the presentation was prepared and contain risks and uncertainties. Actual results may differ significantly from these forecasts due to changes in the business environment and other factors. Information in this presentation uses public information and other sources. artra corporation does not guarantee the accuracy of this information. 22