Performance Briefing for the Fiscal Year Ended October 31, 2013 (FY10/13)

Transcription

1 Performance Briefing for the Fiscal Year Ended October 31, 2013 (FY10/13) LONGLIFE HOLDING Co., Ltd. Friday, December 20, 2013 Stock code: 4355

2 Contents The LONGLIFE Group FY10/13 Consolidated Operating Results FY10/13 Results by Segment Topics Forecast for FY10/14 Future Outlook Shareholder Returns 2

3 The LONGLIFE Group Total support for second life LONGLIFE HOLDING Co., Ltd. International business Nursing home Japan Long Life Co., Ltd. --- Nursing home L Care Co., Ltd. and L Care Higashinihon Co., Ltd. --- In-home nursing care Education and training In-home nursing care Kashidasu Co., Ltd. Long Life Dining Co., Ltd. --- Nursing care equipment --- Food Dispensing pharmacy Food Nursing care equipment Long Life Pharmacy Co., Ltd. Long Life Casita Co., Ltd. --- Dispensing pharmacy --- Education and training Long Life International Business Investment Co., Ltd. --- International business 3

4 FY10/13 LONGLIFE HOLDING Co., Ltd. Consolidated Operating Results 4

5 Financial Highlights Net sales, operating income and ordinary income rose to all-time highs * All amounts are rounded down to the nearest million yen (Millions of yen) Net Sales 10,445 (Millions of yen) Operating Income ,000 9, FY10/12 FY10/13 Ordinary Income 9,500 (Millions of yen) , FY10/12 FY10/13 FY10/12 FY10/13 5

6 Consolidated Statements of Income FY10/12 FY10/13 (Millions of yen) YoY Comparison YoY (%) Change Net sales 9,907 10, % 537 Cost of sales 7,818 8, % 276 Gross profit 2,089 2, % 260 SG&A expenses 1,673 1, % 156 Operating income % 104 Ordinary income % 78 Net income % (18) *All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place 6

7 (Millions of yen) 10,445 Net Sales 10,000 9,000 8,000 8,148 8,088 9,442 9,907 Net sales exceeded 10 billion yen for the first time since the Company s establishment 7,000 FY10/09 FY10/10 FY10/11 FY10/12 FY10/13 * All amounts are rounded down to the nearest million yen 7

8 (Millions of yen) Operating Income Record-high operating income of 520 million yen FY10/09 FY10/10 FY10/11 FY10/12 FY10/13 * All amounts are rounded down to the nearest million yen 8

9 (Millions of yen) 454 Ordinary Income Ordinary income 300 also reached a record level FY10/09 FY10/10 FY10/11 FY10/12 FY10/13 * All amounts are rounded down to the nearest million yen 9

10 Consolidated Balance Sheet Assets and liabilities increased due to opening of new locations (Millions of yen) End-Oct 2012 End-Oct 2013 Change Assets (Total) 10,181 11,430 1,248 Current assets 3,270 4, Noncurrent assets 6,911 7, Liabilities (Total) 7,592 8,674 1,081 Current liabilities 5,506 5, Noncurrent liabilities 2,085 2, Net assets (Total) 2,589 2, Shareholders equity 2,572 2, Accumulated other comprehensive income Minority interests Total liabilities and net assets 10,181 11,430 1,248 * All amounts are rounded down to the nearest million yen 10

11 Consolidated Statements of Cash Flows Cash and cash equivalents at end of period increased by 374 million yen Cash flows from operating activities FY10/12 FY10/13 Major breakdown Increase in advances received 497 Income before income taxes and minority interests 410 Depreciation and amortization 335 Income taxes paid (235) Cash flows from investing activities (785) (787) Purchase of property, plant and equipment (793) Cash flows from financing activities Net increase (decrease) in cash and cash equivalents (187) 374 Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 716 1,090 (Millions of yen) Proceeds from long-term loans payable 1,500 Decrease in short-term loans payable (357) Repayment of long-term loans payable (731) * All amounts are rounded down to the nearest million yen 11

12 FY10/13 LONGLIFE HOLDING Co., Ltd. Business Results by Segment 12

13 Composition of Sales Food: 0.2% Sales 15 million yen Long Life Dining Nursing care equipment: 10.0% Sales 1,041 million yen Kashidasu In-home nursing care: 51.3% Sales 5,357 million yen L Care L Care Higashinihon FY10/13 Total Sales 10,445 million yen Other: 1.4% Sales 150 million yen Long Life Pharmacy Long Life Casita Long Life International Business Investment Nursing home: 37.1% Sales 3,879 million yen Japan Long Life * All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place * Internal sales and transfers generated between segments are excluded 13

14 Sales by Segment (Millions of yen) 10, ,041 FY10/12 (Millions of yen) FY10/13 8,000 6,000 4,000 2,000 5,603 5,357 3,851 3,879 Sales 9,907 10,445 Nursing home 3,851 3,879 In-home nursing care 5,603 5,357 Nursing care equipment 329 1,041 Food FY10/12 FY10/13 Other *All amounts are rounded down to the nearest million yen Internal sales and transfers generated between segments are excluded A divestiture within the LONGLIFE Group that took place on November 1, 2012 resulted in the transfer of some business activities from the in-home nursing care business to the nursing care equipment business 14

15 Nursing Home Business FY10/13 15

16 Total 803 rooms Area Prefecture Name No. of rooms Facility type Opened Nursing Home Kansai area Tokyo area Long Life Nagai 22 Nursing home Apr Long Life Utsubo 36 Nursing home May 2002 Long Life Uenoshiba 45 Nursing home Nov Long Life Takatsuki 54 Nursing home Aug Osaka La Vie en Rose Senriyama 53 Nursing home Sep La vie en Rose Takatsuki 45 Nursing home Nov La Vie en Rose Ryokuchi 43 Nursing home Mar Group home Minase I 26 Group home Jun Group home Minase II 27 Group home Jun La Vie en Rose Uenoshiba 27 Group home Jun Long Life Ashiya 56 Nursing home Aug Long Life Koushien 36 Nursing home Apr Hyogo Long Life Queen s Shioya 28 Nursing home Apr Long Life Aotani 77 Nursing home May 2007 Long Life Kurakuen Ashiya Annex 35 Nursing home Jul La Vie en Rose Takarazuka 27 Group home Jun Kyoto Long Life Kyoto Arashiyama 50 Nursing home Dec Tokyo Long Life Seijo 34 Nursing home Sep Long Life Kasai 41 Nursing home Mar Kanagawa Long Life Kajigaya 41 Nursing home May

17 Nursing Home Sales and earnings up despite decline in contracted operations sales due to completion of contracts in the previous fiscal year (Millions of yen) FY10/12 FY10/13 YoY (%) YoY Change Change Net sales (Internal sales and transfers generated between segments are included) 3,851 3, % 39 Segment profit % 38 * All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place 17

18 Number of Rooms / Occupancy Rate Number of rooms is 803 and occupancy rate is 70.2% due to the opening of Long Life Kyoto Arashiyama End-Oct 2009 End-Oct 2010 End-Oct 2011 End-Oct 2012 End-Oct 2013 Number of rooms Rooms occupied Occupancy rate 71.2% 71.8% 74.4% 70.6% 70.2% * All percentages are rounded down to the nearest one decimal place 18

19 Long Life Kyoto Arashiyama 24 of 50 rooms sold* since the December 2012 opening *As of November 30,

20 Long Life Kyoto Arashiyama The best possible quality of life Residential-type nursing home Initial deposit: 18 million yen to 96 million yen Rooms: 50 Location: 19-6 Uzumasa Nakayamacho, Ukyo-ku, Kyoto Structure: Steel reinforced concrete structure; three stories and one basement floor Site area: 3, sq.m. Floor area: 3, sq.m. 20

21 GFC (Good feeling coordinator) Making life more and more enjoyable GFCs are professionals who use an exclusive LONGLIFE approach to nursing care that reflects traditional Japanese culture, the life style of each individual and other items. This idea is based on the diversional therapy, which is a concept that originated in Australia. This approach allows providing new types of services. The Company gives GFCs the training to devise and implement many types of programs, such as concert outings and travel, that can be a source of enjoyment for customers. These coordinators are also skilled at creating living spaces and environments that are more comfortable and pleasant. 21

22 In-home Nursing Care Business FY10/13 22

23 In-home Nursing Care Effective sales growth of 332 million yen after adjusting for the transfer of business activity (Millions of yen) FY10/12 FY10/13 YoY (%) YoY Change Change Net sales (Internal sales and transfers generated between segments are included) 5,610 5, % (247) Segment profit % (34) * All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place 23

24 In-home Nursing Care Expansion of 30 services *Excluding 4 services transferred to the nursing care equipment business Total Total Home-visit massage services Multifunctional long-term care in a small group home Outpatient day long-term care In-home long-term care support Home-visit dental services Home-visit bathing long-term care Home-visit nursing Home-visit long-term care 0 FY10/12 FY10/13 24

25 In-home Nursing Care Differentiation by using distinctive services Mileage point service Customers themselves can create a single-day program and accumulate mileage points for later use. Overseas study service Day service facilities are transformed for one day into an overseas university campus in Hawaii, Qingdao (China) or other location outside Japan. 25

26 Nursing Care Equipment Business FY10/13 26

27 Nursing Care Equipment Sales up 155 million yen after excluding the business activity transferred from in-home nursing care (Millions of yen) FY10/12 FY10/13 YoY (%) YoY Change Change Net sales (Internal sales and transfers generated between segments are included) 360 1, % 734 Segment profit % (5) * All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place 27

28 Nursing Care Equipment A broad lineup of services to meet many requirements Rental and sale of nursing care equipment Import and sale of nursing care devices Housing renovation work Comprehensive services for care facility and hospital equipment 28

29 LONGLIFE HOLDING Co., Ltd. Topics 29

30 Indonesia To be opened in April 2014 Development of Senior Living in Kota Jababeka, Indonesia Location Development area Project Kota Jababeka, Cikarang, Bekasi, West Jawa Barat Approx. 80,000 sq.m Apartment-style senior care buildings and detached home-style senior villas Total of 400 residential units 30

31 Indonesia Completion image (Apartment-style buildings) 31

32 Indonesia Completion image (Detached home-style senior villas) 32

33 Indonesia Completion image (Care center) 33

34 Indonesia Indonesian employees came to Japan for training 34

35 Long Life Casita Provided training for 181 individuals since operations started in April

36 FY10/14 LONGLIFE HOLDING Co., Ltd. Forecasts 36

37 FY10/14 Forecast Expect to set a new profit record Net Sales Operating Income Ordinary Income Net Income (Millions of yen) (Millions of yen) (Millions of yen) (Millions of yen) 11,000 10,000 10,445 11, ,000 FY10/13 FY10/ FY10/13 FY10/ FY10/13 FY10/ FY10/13 FY10/14 (Millions of yen) FY10/13 FY10/14 (Forecast) YoY (%) YoY Change Change Net sales 10,445 11, % 1,154 Operating income % 49 Ordinary income % 55 Net income % 54 * All amounts are rounded down to the nearest million yen; all percentages are rounded to one decimal place 37

38 LONGLIFE HOLDING Co., Ltd. Future Outlook 38

39 Global Strategy Nursing home in Qingdao, China Qingdao residents came to Japan in December 2013 for activities with residents of Long Life Kyoto Arashiyama 39

40 Global Strategy Using Southeast Asia as the base for serving more customers in Japan and other countries Hokkaido Qingdao, China Karuizawa Ishigaki Island Hawaii Indonesia Australia 40

41 Global Strategy Overseas expansion Start operations in Indonesia Start overseas sales of nursing care products Qingdao urban plan concept 41

42 Future Outlook / Business Activities in Japan Upgrade sales capabilities by rigorously training employees Use the highest standards of quality for nursing home operations Use GFCs to aim for even higher customer satisfaction Goal is to sell out all rooms 42

43 Future Outlook / Business Activities in Japan Aggressive opening of Tokyo area locations More services not covered by nursing care insurance More new locations operated jointly with group companies Quickly expand in the Tokyo area to a 50 service infrastructure 43

44 Future Outlook / Business Activities in Japan Launch L Care s new brand Momo Club (A life style support service) Concierges provide assistance for leading a fulfilling and comfortable life Increase sales of services not covered by nursing care insurance Goal is to raise annual sales from these services to 2 billion yen over the next 3 years 44

45 LONGLIFE HOLDING Co., Ltd. Shareholder Returns 45

46 Dividend Forecast Plan to increase the dividend to 5.50 yen per share FY10/09 FY10/10 FY10/11 FY10/12 FY10/13 FY10/14 (Forecast) Dividend per share (yen) Dividend payout ratio % 17.1% % 26.8% 23.3% * All percentages are rounded to one decimal place (Yen) There was a 1-to-200 stock split on May 1, FY10/11 FY10/12 FY10/13 FY10/14 46

47 Cautionary Statement with Respect to Forward-looking Statements Forecasts, strategies and other forward-looking information in these materials are based on judgments within a reasonable scope for which forecasts are normally possible. These judgments use information that available to the company within a reasonable scope as of the time these materials were prepared. However, there is a risk that actual results of operations may differ from the outlook in these materials. Differences may be caused by special circumstances that could not normally be foreseen, results that could not normally be foreseen and other factors. LONGLIFE HOLDING is committed to disclosing all information that it believes is important for investors. Nevertheless, investors are asked to refrain from reaching decisions based solely on the outlook for results of operations in these materials. These materials may not be copied, resent or otherwise reused in any way for any purpose without prior consent. 47