Company Presentation Menicon Co., Ltd. · 2020-03-04 · Company Presentation Menicon Co., Ltd. TSE...

Company PresentationMenicon Co., Ltd.

TSE 1st Section: Ticker 7780

Who We Are

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Our Principles are ” Contributing to society by providing superior visual correction”.

We are conducting our corporate activities through a R&D, Manufacturing and Sales structure that puts the safety of our customers’ eyes first.

We are the oldest contact lens manufacturer in Japan.We have achieved sales growth for over 17 consecutive years.

We have a full product line up, such as Daily disposable, 2weeks, 1month, Soft contact lens and RGP.

We have a membership system, MELS Plan that contributes to eye safety of contact lens users and stable earnings of the Company.

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Copyright: Menicon Co., Ltd. All rights reserved.

Our Principles

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Contributing to society by providing superior visual correction.

Our stakeholdersEnd users

Society

Industry Participants

Our Shareholders

Our Employees


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75' 80' 85' 90' 95' 00' 05' 10' 15' 18'

Contact lens, others MELS Plan Subsidiaries

Net Sales

✓ We have achieved sales growth for over 17 consecutive years.

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(JPY bn)

*Note: From FY2013, Consolidated financial result


✓ Expanding sales of Daily disposable

✓ Silicone Hydrogel Contact Lens“1day Menicon PremiO”

✓ Flat pack daily disposable “Magic” (Japan)

“Miru 1day Menicon Flat Pack”(Global)

✓ “Menicon 1DAY Multifocal”

Daily Disposable contact lens

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For myopia / astigmatism

For presbyopia


Daily Disposable contact lens

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✓ The design of the package allows users to remove the lenses without needing to check which side is correct, without touching the inside of the lenses.

Menicon

Competitors

Hygienic &EASY

1. Open

4. Wear

2. Pick up 3. Wear

1. Open 2. Pick up 3. Flip


Product Line-up (Monthly fee of MELS Plan)

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DailyJPY5,000

DailyJPY4,400

2WeeksJPY2,100

1MonthJPY1,800

Four SeasonsJPY2,400

Hard

JPY1,800～

BifocalJPY2,400

ColorJPY2,100


Monthlyfees

MELS Plan Virtuous Circle

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ProductsMenicon

- Stable revenue- Benefits returned to

the customer withour service

- Investment in research& development

Store(affiliated facility)- Reliable customer

follow-up- Stable revenue

(freedom from price competition)

Service

Sales commissions

Customers(MELS members)- High-quality lenses- Reasonable service

- Peace of mind


Global network

●Japan

15 business office158 stores7 affiliated companies

●Australia

●●

● Singapore

●France●America

● Europe

● South Korea●China

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Our Overseas Business

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Europe Asia North America Others TotalFY2017 FY2018

YoY growth rate+6.9%

YoY growth rate△1.2%

11.6%

Overseas sales ratio YoY growth rate+10.6%



✓ Expansion of our overseas business

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(JPY bn)


Operating margin/Cost ratio/SGA ratio

3.7%

4.5%5.1% 5.4%

5.7%

6.9%7.6%

43.2%

44.5% 44.6%

46.1% 46.3%

47.1% 46.9%

53.1%

51.0%50.3%

48.5%

48.0%

46.0% 45.5%

40%

45%

50%

55%

0%

2%

4%

6%

8%

10%

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

(Forecast)

Operating margin Cost ratio SGA ratio10

Operating margin Cost ratio, SGA ratio


Our Medium-term Business plan Vision 2020

Expansion ofmember ranksof MELS Plan

Productstrategy

Strengtheningand expansion

of overseas businesses

Investment in new

businesses

Growth ofMELS Plan

Growth ofoverseas

businesses

Growthof new

businesses

Toward Achievement of Sales of JPY100bn and Operating Profit Margin of 10%

Vision2020：Our target for the fiscal year ending March 31, 2021. 11


Appendix

Menicon Today

JPY 117 bn+ market cap

3,000+ employees

*consolidated

1.30 mnnumber of MELS

plan members

85+ countriesproduct distributed

JPY 80 bnannual revenue （FY2018）

14 yearsaverage number of

years of employment*non-consolidated

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*Note: company data as of last fiscal year end.

Manufacturing

✓ A high-quality mass manufacturing system

We started construction of the 2nd floor and the 3rd floor.

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Kakamigaharafactory (Japan)

Seki factory (Japan) Singapore factory

Sales channel in Japan

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エースコンタクト 78

富士コンタクト 13

シティコンタクト 18

Menicon Group 158

MELS Plan shop 1,535

Total 1,693

＜2019/3＞ 15


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The total number of members in MELS Plan

1.331.301.271.22

1.16

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(Millions of people)

M&A

17Copyright: Menicon Co., Ltd. All rights reserved.

2006 2011 2015 2016 2016

NKL・ Orthokeratology・Replacement

contact lens

Netherlands

Manufacturer

W.I.SAce contact

Japan

Retail chain

Fuji Contact

Japan

Retail chain

Alpha Corporation

・ Orthokeratology

Japan

Manufacturer

AIPCity contact

Japan

Retail chain

New Businesses

✓ We have launched new businesses by taking advantage of technologies and know-how which have been cultivated throughout our history.

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2000

4000

6000

FY2015 FY2016 FY2017 FY2018 FY2020(Target)

Veterinary Medical

equipment Business

Environmental and

Bioscience BusinessLife Science Business Eye care Project

Other sales

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(JPY m)

Annual Sales/Operating Profit

62 6367

7277

8185

2.32.9

3.5 3.9

4.4

5.6

6.5

0.0

2.0

4.0

6.0

8.0

10.0

0

20

40

60

80

100

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

(Forecast)

Net sales Operating profit19


Net sales(JPY bn)

Operating profit(JPY bn)

Shareholder Return

Note: Dividends are calculated, assuming that the stock split was conducted at the beginning of FY2014.

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2528 28

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5%

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35%

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FY2015 FY2016 FY2017 FY2018 FY2019

Forecast

Dividend per Share Dividend Payout Ratio

配当性向

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Dividend per Share(JPY)

Dividend Payout Ratio


Balance sheet

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(JPY m)

Assets FY2018(Mar 2019)

Cash and deposits 20,084Accounts receivables 8,857Inventories 11,957Total current assets 42,584Total property, plant & equipment 25,447Goodwill 2,719Patent right 1,219Investment securities 908Total non-current assets 35,690Total assets 78,275

Liabilities & Net assets FY2018(Mar 2019)

Notes and accounts payable - trade 4,471Short-term loans payable 32Current portion of bonds 1,765Current portion of long-term loans payable 1,984Accounts payable - other 2,970Total current liabilities 18,568Bonds payable 3,547Convertible bond-type bonds with share acquisition rights

8,000

Long-term loans payable 3,423Total non-current liabilities 17,156Total liabilities 35,725Total shareholder’s equity 43,208Subscription rights to shares 38Non-controlling interests 42Total net assets 42,549

Capital ratio 54.3%

D/E 0.44x

Net D/E -0.03x

Total debt 18,873

FY2018 Summary

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FY 2017FY 2018

YoY Change

Net sales 76,672 80,898 +5.5%

Cost of sales 35,478 38,129 +7.5%

(Cost rate) 46.3% 47.1% (+0.8pt)

Gross profit 41,194 42,768 +3.8%

Selling, general andadministrative expenses

36,800 37,196 +1.1%

(SGA ratio) 48.0% 46.0% (△2.0pt)

Operating income 4,394 5,571 +26.8%

(Operating margin) 5.7% 6.9% (+1.2pt)

Ordinary income 4,458 5,645 +26.6%

Profit attributable to ownersof parent

2,657 3,576 +34.6%

Basic earnings per share JPY75.67 JPY101.63 ---


(JPY m)

FY2019 Forecast - Summary

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FY 2018

⇒

ForecastFY 2019

Change YoY Change

Net sales 80,898 85,083 +4,185 +5.2%

Cost of sales 38,129 39,883 +1,754 +4.6%

(Cost rate) 47.1% 46.9% (△0.2pt) ---

Gross profit 42,768 45,199 +2,430 +5.7%

Selling, general and administrative expenses

37,196 38,696 +1,500 +4.0%

(SGA ratio) 46.0% 45.5% (△0.5pt) ---

Operating income 5,571 6,502 +930 +16.7%

(Operating margin) 6.9% 7.6% (+0.7pt) ---

Ordinary income 5,645 6,488 +843 +14.9%

Profit attributable to ownersof parent

3,576 4,091 +514 +14.4%

Basic earnings per share JPY101.63 JPY116.12 +14.49 ---


(JPY m)

Disclaimer on Forward-Looking Statements

✓ This material includes certain forward-looking statements about the Menicon Group. To the extent that statements in this material do not related to historical or current facts, they constitute forward-looking statements.

✓ These forward-looking statements are based on the current assumptions and judgments of the Menicon Group in light of the information currently available to it, and involve know and unknown risks, uncertainties and other factors, which may affect the statements made in this material.

Menicon Co., Ltd. Finance & Investor Relations Dept.TEL: +81-52-935-1646E-mail: [email protected]


Company Presentation Menicon Co., Ltd. · 2020-03-04 · Company Presentation Menicon Co., Ltd. TSE...

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