Consolidated Financial Resultsfor the Year Ended March 31, 2020
TSE 1st Section: Ticker 7780
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Key reason➢ For the Year Ended March 31, 2020
Net sales : Year on year change +4.5%
The total number of members in MELS Plan 1.33millions
Gross profit : Year on year change +5.7%
Improvement cost of sales ratio
cost of sales ratio: 47.1% → 46.5%
Operating profit : Year on year change +26.2%
An increase of gross profit and improvement of SGA ratio
Operating margin : 6.9% → 8.3%Copyright: Menicon Co., Ltd. All rights reserved.
2
Summary
Fiscal year ended March 31, 2019March 31, 2020
YoY change
Net sales 80,898 84,519 +4.5%
Cost of sales 38,129 39,291 +3.0%
(Cost of sales ratio) 47.1% 46.5% (0.6pt)
Gross profit 42,768 45,227 +5.7%
Selling, general and administrative expenses 37,196 38,194 +2.7%
(SGA ratio) 46.0% 45.2% (0.8pt)
Operating profit 5,571 7,033 +26.2%
(OP margin) 6.9% 8.3% +1.4pt
Ordinary profit 5,645 6,554 +16.1%
Profit attributable to owners of parent 3,576 4,060 +13.5%
Basic earnings per share JPY 101.63 JPY 112.25 ---
Copyright: Menicon Co., Ltd. All rights reserved.
JPY m
3
Net sales
YoY change +JPY 3.6 bn
+4.5%
① MELS Plan sales
+JPY 2.2 bn
② Contact lens/Care products
+JPY 1.4 bn
Key reason① An increase of membership, especially Daily disposable contact lens.② Expanding Daily and orthokeratology lens sales.
JPY 84.5 bn
Copyright: Menicon Co., Ltd. All rights reserved.
4
Operating profit
JPY 7.0 bn
Key reasonAn increase of gross profit due to curbed manufacturing cost of sales ratio
and sales growth.A decrease of SGA ratio.
Copyright: Menicon Co., Ltd. All rights reserved.
YoY change +JPY 1.4 bn
+26.2%
Gross profit+JPY 2.4 bn
Selling, general and administrative expenses
(JPY 1.0 bn)
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Operating profit break down
Copyright: Menicon Co., Ltd. All rights reserved.
~~0
✓ Operating profit increased, which is attributable to the increase of gross profit.
SGA (0.99)
+ +
~~~~
JPY bn
6
Net Sales break downBy Product/service
Copyright: Menicon Co., Ltd. All rights reserved.
(Note)The amount of “Other” includes the amount of new businesses.
JPY m
Fiscal year ended March 31, 2019 March 31, 2020
YoY change
Net sales80,898 84,519 +4.5%
Product/service
Contact lens /Care products
38,172 39,555 +3.6%
MELS Plan 40,615 42,806 +5.4%
Other 2,110 2,157 +2.2%
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Contact lens and Care products
Key reason① Sales of daily disposable contact lens was robust.② Sales of 2weeks contact lenses in domestic market, and sales of
1 month contact lens in overseas market were robust.③ Mainly sales in China were robust.
JPY 39.5 bn
Copyright: Menicon Co., Ltd. All rights reserved.
YoY change +JPY 1.4bn
+3.6%
① Daily
+JPY 0.7 bn
② 2weeks・1month
+JPY 0.3 bn
③ Care products
+JPY 0.5 bn
Other(JPY 0.1bn)
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MELS Plan
Key reason① Membership of daily disposable contact lens has increased.② ”2WEEK Menicon PremiO” series were robust.
JPY 42.8 bn
Copyright: Menicon Co., Ltd. All rights reserved.
YoY change +JPY 2.2 bn
+5.4%
① Daily
+JPY 1.8 bn
② 2weeks
+JPY 0.4 bn
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Net Sales break down
Fiscal year ended March 31, 2019 March 31, 2020
YoY change
Net Sales 80,898 84,519 +4.5%
Japan 70,091 72,622 +3.6%
Overseas Total 10,806 11,896 +10.4%
Europe 6,431 6,615 +2.8%
North America 997 1,231 +23.4%
Asia ※1 3,056 3,687 +20.6%
Other ※2 320 362 +13.0%
Copyright: Menicon Co., Ltd. All rights reserved.
Geographical information JPY m
※1 “Asia” includes sales through domestic sales agencies.※2 ”Other” includes Oceania.
2019/3 2020/3
EUR 128.26 120.85
USD 111.07 108.95
Average exchange rate JPY
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Overseas sales ratio
7.8% 1.5%4.4%
0.4%
85.9%
Europe North America Asia Other Japan
Copyright: Menicon Co., Ltd. All rights reserved.
Overseas sales ratio
14.1%
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YoY change +JPY 10.8 bn
+10.4%
①Europe
+JPY 0.18 bn
②North America
+JPY 0.23 bn
③Asia
+JPY 0.63 bn
Other
+JPY 0.04 bn
Overseas sales
Key reason① Europe: The Group included SOLEKO S.p.A. in Italy.② North America: Sales of daily disposable contact lens was robust.③ Asia: Orthokeratology lenses and care products sales were robust.
JPY 11.8 bn
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Balance sheet
Copyright: Menicon Co., Ltd. All rights reserved.
March 31, 2019
March 31, 2020
YoY change
Cash and deposits 20,084 17,327 (2,756)
Accounts receivables 8,857 9,733 +876
Inventories 11,958 12,930 +971
Total current assets 42,584 41,722 (862)
Property, plant & equipment 25,447 34,672 +9,225※
Intangible assets 6,236 7,064 +828
Investments and other assets 4,006 3,826 (179)
Total non-current assets 35,690 45,564 +9,873
Total assets 78,275 87,286 +9,011
March 31, 2019
March 31, 2020
YoY change
Notes and accounts payable -trade
4,471 4,373 (98)
Short-term debt 3,811 4,060 +248
Accounts payable 2,970 4,583 +1,612
Total current liabilities 18,568 21,751 +3,182
Long-term debt 7,061 9,368 +2,307
Convertible bond-type bonds with share acquisition rights
8,000 - (8,000)※
Total non-current liabilities 17,156 12,014 (5,141)
Total liabilities 35,725 33,765 (1,959)
Total net assets 42,549 53,520 +10,971※
Capital ratio 61.2%
Cash and deposits 17,327
Total debt 13,428
(Note) Some overseas subsidiaries have applied IFRS 16 “Leases” from the beginning of the fiscal year ended March 31, 2020.As a result of the application of this accounting standard, the Consolidated Balance Sheets for the period ended March 31, 2020 show increases as below.¥4,137 million in right of use assets, net of property, plant and equipment ¥17 million in other under intangible assets¥678 million in lease obligations under current liabilities ¥3,540 million in lease obligations under non-current liabilities
JPY m
※The convertible bond-type bonds with share acquisition rights have been exercised.※Purchase of property, plant and equipment at 1DAY factory.
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Cash Flows
Repayment of long-term borrowings.~~0 0
~~ ~~ ~~
Purchase of property, plant and equipment at 1DAY factory.+
+
+
Copyright: Menicon Co., Ltd. All rights reserved.
For the fiscal yearended March 31,2019
For the fiscal yearended March 31,2020JPY mJPY m
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Annual Sales/Operating Profit
62.2 63.167.3
72.076.6
80.884.5
2.2 2.83.4 3.9
4.35.5
7.06.0
7.07.8
8.69.5
10.2
12.5
0.0
5.0
10.0
15.0
20.0
0.0
20.0
40.0
60.0
80.0
100.0
2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3Net sales Operating profit EBITDA
Copyright: Menicon Co., Ltd. All rights reserved.
Net salesJPY bn
Operating profit/EBITDAJPY bn
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OP margin/Cost ratio/SGA ratio
3.7%
4.5%5.1% 5.4%
5.7%
6.9%
8.3%
43.2%
44.5% 44.6%
46.1% 46.3%
47.1%46.5%
53.1%
51.0%50.3%
48.5%
48.0%
46.0%45.2%
40%
45%
50%
55%
0%
2%
4%
6%
8%
10%
2014/3 2015/3 2016/3 2017/3 2018/3 2019/3 2020/3
OP margin Cost ratio SGA ratio
OP margin Cost ratio, SGA ratio
Copyright: Menicon Co., Ltd. All rights reserved.
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Shareholder Return
✓ A cash dividend is ¥28 per share for the fiscal year ended March 31,2020
19
2528 28
0%
10%
20%
30%
0
5
10
15
20
25
30
35
2017/3 2018/3 2019/3 2020/3
Dividend per Share Dividend Payout Ratio
Copyright: Menicon Co., Ltd. All rights reserved.
Note: Dividends are calculated, assuming that the stock split was conducted at the beginning of 2017/3.
Dividend per Share(JPY)
Dividend Payout Ratio
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Outlook
✓ Consolidated financial forecast for the fiscal year ending March 31, 2021
At the moment, as we are unable to predict when the COVID-19 outbreak will be over, forecast of consolidated business results for the fiscal year ending March 31, 2021 is undetermined due to the difficulty of reasonably forecasting it. The forecast of the consolidated business results will be disclosed once it becomes possible to make calculations.
Copyright: Menicon Co., Ltd. All rights reserved.
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Daily disposable contact lens
✓ Growth of Daily disposable contact lens sales
Copyright: Menicon Co., Ltd. All rights reserved.
The expansion of floor area and production facilities for the expansion of “1DAY
Menicon PremiO” production capacity.
1DAY「Magic toric」
for astigmatism line-up.
Promoting the market penetration in Europa and U.S.
Expansion of supplying daily disposable contact lenses as
private-brand products.
Expanding
product line-up
Expanding
production
capacity
Expanding
sales area
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Daily disposable contact lens
✓ An increase of sales of daily disposable contact lens.
Copyright: Menicon Co., Ltd. All rights reserved.
0
5
10
15
20
25
2017/3 2018/3 2019/3 2020/3
Sales of daily disposable contact lens
CAGR 18%
JPY bn
20
●
●
●
Orthokeratology lens
Copyright: Menicon Co., Ltd. All rights reserved.
●China
✓ Strengthen the orthokeratology lens business globally.
● Netherlands(Menicon B.V.) ● Japan
( Alpha corporation )
Academic and research
systems
Sales structure
Relationships with partner companies α Ortho-K
For suppressing the progression of myopia system
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Orthokeratology lens
✓ Sales of orthokeratology lens were robust.
Copyright: Menicon Co., Ltd. All rights reserved.
0
0.5
1
1.5
2
2017/3 2018/3 2019/3 2020/3
Sales of orthokeratology lens
CAGR 19%
JPY bn
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New Businesses
✓ Taking advantage of technologies and know-how which have been cultivated throughout our history.
✓ Related to contact lens business.
✓ Making people happy through proposals for the five senses.
Copyright: Menicon Co., Ltd. All rights reserved.
Sight
Taste
SmellTouch
Hearing
Veterinary Medical equipment Business
Environmental and Bioscience Business
Life Science Business Antismoking
The five senses
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End user first
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Raising awareness of the safety use of contact
lenses through MELS Plan.
✓ Promote safe and convenient use of contact lenses.
Use IT technologies and delivery services.
Expanding daily disposable contact lenses that
hygiene and easy to wear.
MELS Delivery service
Counseling by professional staff
A package to take out the lenses without touching the inner surface.
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Risk management
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Thorough quality control.
Diversification of production system and improving productivity.
Strengthening of relationship with
Customers and Facilities.
Kakamigahara factory
Singapore factoryMELS Plan network
MeniconFacilities
participatingin MELS
Customers
✓ Securing of stable supply by strengthening production and sales structures.
Quality Management System
Personal Information Protection
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Sustainability
✓ Promoting both corporate continuity and social responsibility.
Copyright: Menicon Co., Ltd. All rights reserved.
Developing environment-friendly product and
manufacturing processes.
Social contribution through sports and culture.
Promote“Healthy Company”.
Decomposition agents for rice straw
Less plastic waste,1DAY ”Magic”
Open office
Contribute to the protectionof ibises
Sponsor “Menicon cup”
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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.
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27
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.E-mail: [email protected]/corporate/ir/
Copyright: Menicon Co., Ltd. All rights reserved.