overview of financial results マスタータイトルの ...web-cache-sc.stream.ne.jp/€¦ ·...

マスタータイトルの書式設定

© Copyright CMIC Group

CMIC HOLDINGS Co., Ltd.July 29, 2019

Overview of Financial Results for FY2019 3rd Quarter


2© Copyright CMIC Group

Business segments and group companies Blue indicates overseas.*indicates affiliated companySegment Products and services CMIC Group companies (as of end of June 2019)

CROBusiness

Services related to pharmaceutical development support and analytical chemistry services for pharmaceutical companies, and BPO and personnel services for the pharmaceutical and healthcare industry

CMIC HOLDINGS Co., Ltd.CMIC Co., Ltd.CMIC ShiftZero K.K.CMIC Korea Co., Ltd.CMIC ASIA-PACIFIC, PTE. LTD.CMIC ASIA PACIFIC (MALAYSIA) SDN. BHD.CMIC Asia-Pacific (Hong Kong) LimitedCMIC ASIA-PACIFIC (PHILIPPINES), INC.CMIC ASIA-PACIFIC (AUSTRALIA) PTY LTDCMIC (Beijing) Pharmaceutical Services Co., Ltd.CMIC (Beijing) Co., Ltd.CMIC DATA SCIENCE VIETNAM COMPANY LIMITEDCMIC Pharma Science Co., Ltd.CMIC, INC.CMIC (Suzhou) Pharmaceutical Technology Co., Ltd.CMIC Career Co., Ltd.

CDMO Business

Services related to drug formulation development and manufacturing support, from formulation design to investigational new drug manufacturing to commercial production of ethical drugs and nonprescription drugs for pharmaceutical companies

CMIC CMO Co., Ltd.CMIC CMO NISHINE Co., Ltd.CMIC CMO Korea Co., Ltd.CMIC CMO USA CorporationCMIC JSR Biologics Co., Ltd.*

CSOBusiness

Services provided to pharma companies related to sales & marketing support

CMIC Ashfield Co., Ltd.McCann MDS Inc.*

Healthcare Business

Support services primarily for medical institutions and treating, maintaining, and promoting the health of patients and general consumers, such as SMO services and healthcare information services

Site Support Institute Co., Ltd.SSI-CP Co., Ltd.CMIC Healthcare Co., Ltd.CMIC VIETNAM COMPANY LIMITED

IPMBusiness

Provision of new business solution to pharmaceutical companies that combines the system to support all value chains and manufacturing authorization and other licenses (intellectual properties) held by CMIC Group

CMIC HOLDINGS Co., Ltd.CMIC CMO Co., Ltd.OrphanPacific, Inc.



Main initiatives of the current termPush forward “Project Phoenix ‐Initiatives to achieve sustainable growth‐” and start “2019‐2021 Mid‐term Plan"

Focus activities In addition to the PVC model, we will accelerate the IPM solution business that combines the marketing

authorization licenses Strengthening Area Competitiveness and promoting Globalization Creation of healthcare business

CRO Business Established a local affiliate in Australia to increase area competitiveness in Asia and Oceania Enhanced Post‐marketing surveillance (PMS) and Clinical research support business using medical database Promoted readiness for evolving fields including biologics and regenerative medicine

CDMO Business Succeeded Astellas Pharma Tech Nishine Plant to increase the manufacturing capabilities of oral solid dosage forms Launched a new parenteral drug manufacturing facility with capabilities to manufacture high‐potency drugs and started

producing clinical‐trial materials Formed business alliances with U.S.‐based corporations that possess 3DP technology platform and sophisticated flexible

dosing tablet technology

CSO Business Opened “MA academy”, the first private sector institution to train Medical Affairs (MA) personnel, and expanded services in

the Medical Affairs arena

Healthcare Business BELL24‐Cell Product, Inc. became our group company to further enhance our presence in Hokkaido Started "harmo", the electronic prescription record service transferred from Sony Corporation Started services for self‐collect HPV test “SelCheck Cervical Cancer”

IPM Business Supported foreign pharmaceutical companies entering the Japanese market through provision of the IPM platform



2018/3Q 2019/3Q

Amount Composition ratio AmountComposition

ratioYoY

changePercent change

(¥ millions) (%) (¥ millions) (%) (¥ millions) (%)

Sales 51,624 100.0 54,855 100.0 3,231 6.3Operating

income 4,016 7.8 4,028 7.3 12 0.3Ordinaryincome 3,805 7.4 3,643 6.6 (162) (4.3)

Profit attributable to

owners of parent1,229 2.4 1,909 3.5 679 55.3

Earnings per share ¥65.75 ¥103.04

Consolidated income statement (overview)



Breakdown of Non‐operating income and expenses/Extraordinary income and losses/Income taxes

(¥ millions) 2018/3Q 2019/3Q

Non-operating income 56 73

Interest income 4 3

Rent income 14 17

Insurance income - 15

Refunded consumption taxes 12 15

Other 24 23

Non-operating expenses 266 458

Interest expenses 87 84

Share of loss of entities accounted for using equity method

91 162

Foreign exchange losses 39 173

Other 48 38

2018/3Q 2019/3Q

Extraordinary income - 7

Gain on sales of non-current assets

- 7

Extraordinary losses 333 190

Impairment loss - 124

Loss on sales of non-current assets 0 1

Loss on retirement of non-current assets

46 65

Loss on valuation of investment securities

4 -

Loss on revision of payregulations

280 -

Income taxes 2,194 1,823

Current 1,282 1,080

Deferred 912 742



Sales & Operating income by segment2018/3Q

Amount (¥ millions)2019/3Q

Amount (¥ millions)Change

(¥ millions)Percent

change (%)

CRO BusinessSales 27,960 29,199 1,239 4.4

Operating income 5,904 5,962 57 1.0

CDMO Business

Sales 10,806 11,858 1,052 9.7

Operating income (473) (156) 317 -

CSO BusinessSales 5,479 5,795 316 5.8

Operating income 349 100 (248) (71.1)

Healthcare Business

Sales 5,432 5,700 267 4.9

Operating income 668 703 35 5.2

IPM BusinessSales 2,305 2,695 390 17.0

Operating income (185) (199) (13) -

AdjustmentsSales (360) (394) (34) -

Operating income (2,246) (2,381) (135) -

ConsolidatedSales 51,624 54,855 3,231 6.3

Operating income 4,016 4,028 12 0.3



Orders received / Backlog

・ New orders dropped as a rebound from the acquisition of large-scale projects from the same period of the previous year, and the number of inquiries remains high. New orders for Healthcare significantly exceeded that of the same period of the previous year.・ Accounts for only the backlog of firm CDMO business orders. There is customer demand for scheduled orders but these are different from firm orders so we have not included these in the backlog.・Order status is not included for IPM Business because its business conditions are different from those of contract business.

2018/3Q 2019/3Q

Ordersreceived Backlog

Ordersreceived

Percent Change Backlog

Percent Change

(¥ millions) (¥ millions) (¥ millions) (%) (¥ millions) (%)

CRO Business 33,567 60,718 28,163 (16.1) 55,046 (9.3)

CDMO Business 11,279 4,190 14,104 25.0 6,121 46.1

CSO Business 6,077 3,693 7,279 19.8 4,747 28.5

Healthcare Business 4,521 8,305 6,635 46.8 10,642 28.1

Total 55,446 76,907 56,183 1.3 76,557 (0.5)

7



Trend in consolidated Sales & Operating income

24,838 27,960 29,199

10,226 10,806

11,858 5,230

5,479 5,795 5,915

5,432 5,700

1,972 2,305

2,695 47,978

51,624 54,855

0

20,000

40,000

60,000

2017/3Q 2018/3Q 2019/3QCRO business CDMO business CSO businessHealthcare business IPM business

2,922

4,016 4,028

6.1%

7.8%7.3%

0%

10%

0

2,000

4,000

2017/3Q 2018/3Q 2019/3Q

Operating income Operating margin

*(360)*(203)

*(394)

[ Sales ] [ Operating income ](¥ millions)(¥ millions)

*Adjustment



Contract Research Organization (CRO) Business

Supported overseas companies entering the Japanese market, non-healthcare companies entering the healthcaresphere, and promoted measures to address sophisticating development needs including biopharmaceuticals andregenerative medicine. Sales and operating income exceeded those from the same period of the previous yearthanks to robust growth in new and existing contracts.

20,097 22,471 23,435

3,190 3,927 4,263 1,751

1,854 1,919

24,838 27,960

29,199

0

10,000

20,000

30,000

2017/3Q 2018/3Q 2019/3Q

Clinical Non-clinical Others

4,280

5,904 5,962

17.2%

21.1% 20.4%

0%

10%

20%

30%

0

2,000

4,000

6,000

2017/3Q 2018/3Q 2019/3Q


*(292)

*(200)

*(418)

[ Sales ] [ Operating income ](¥ millions)(¥ millions)

*Adjustment

9



Contract Development Manufacturing Organization(CDMO) Business

Launched a new parenteral drug manufacturing facility in Ashikaga and started producing clinical-trial materials. Succeeded Astellas Pharma Tech Nishine Plant and CMIC CMO NISHINE Co., Ltd. started its operations to increase the manufacturing capabilities of oral solid dosage forms. Sales exceeded that of the same period last year mainly due to increase of contract production sales in Japan and the United States. While operating loss was recorded due to commercial production start-up expenses and increased depreciation cost for the new parenteral drug manufacturing facility in Ashikaga, the loss amount shows decreasing trend.

8,173 9,208 9,876

1,550 969

1,424 503

628

557 10,226

10,80611,858

0

5,000

10,000

2017/3Q 2018/3Q 2019/3QCCJ (Japan) CCU (U.S.) CCK (Korea)

[ Sales ] [Operating income ](¥ millions)(¥ millions)

10

(25)

(473)

(156)

-50%

-40%

-30%

-20%

-10%

0%

(500)

(300)

(100)

Operating income

2017/3Q 2018/3Q 2019/3Q



Contract Sales Organization (CSO) Business

5,230 5,479

5,795

0

2,000

4,000

6,000

2017/3Q 2018/3Q 2019/3Q

CMAS

396 349

100

7.6%6.4%

1.7%0%

5%

10%

15%

0

200

400

2017/3Q 2018/3Q 2019/3Q

Operating income Operting margin


Enhanced the sales activities for Medical Affairs-related operations. Sales exceeded that of the same period of the previous year thanks to the steady execution of both new and existing projects. However, operating profit was below that of the same period last year due to the preceding costs generated to take on new projects.

11



Healthcare Business

BELL24-Cell Product, Inc. became our group company to further enhance our presence in Hokkaido. Commenced services for self-collect HPV test "SelCheck Cervical Cancer" and succeeded "harmo", the electronic prescription record service, from Sony Corporation to enhance patient support programs. Sales and operating income both exceeded those of the same period of the previous year thanks to the steady execution of new projects.

5,456 4,927 4,792

432 474 787 2

110

5,915 5,432

5,700

0

2,000

4,000

6,000

2017/3Q 2018/3Q 2019/3Q

SSI CHC Others SSI-CP

944

668 703 16.0%

12.3% 12.3%

0%

10%

20%

0

500

1,000

2017/3Q 2018/3Q 2019/3Q



*Adjustment

12

*9

* 24

*27



Innovative Pharma Model（ IPM ） Business

(343)

(185) (199)

-10%

0%

10%

(400)

(200)

0

Operating income

1,705 2,200

2,581

154

83

61

114

21

53

1,972

2,305

2,695

0

1,000

2,000

3,000

2017/3Q 2018/3Q 2019/3Q

OP L-FABP Others


Marketed orphan drugs, including products developed in-house. Expanded the market and strengthened promotions of the kidney disease biomarker “human L-type fatty acid-binding protein (L-FABP) kit”. Sales exceeded that of the same period of the previous year due to sales increase of orphan drugs. Continued to expand our business scale through provision of new solutions towards positive turnaround of sales. 13

2018/3Q 2019/3Q2017/3Q

*Adjustment

*(1)



Balance sheet (assets)

39,861 41,801 43,095

2,363 2,7543,3275,443

5,8127,274

12,98913,655

14,1914,947

14,009 12,789

65,605

78,034 80,677

0

50,000

2017/9 2018/9 2019/6

Cash equivalentsTrade receivablesInventoryOther current assetsFixed assets

Total assets +2,643

■ Cash equivalents

(1,219)

■ Trade receivables

+535

■ Inventory +1,461■ Other current

assets+572

■ Fixed assets +1,293

(¥ millions)

*Deferred assets in the past BSs are reclassified according to "Partial Amendments to Accounting Standard for Tax Effect Accounting"



Balance sheet (liabilities and net assets)

23,60833,536 33,639

18,899

19,277 20,7169,193

9,57712,10312,870

14,91613,236

1,034

726 982

65,605

78,034 80,677

0

50,000

2017/9 2018/9 2019/6

Accounts payableOther current liabilitiesOther fixed liabilitiesInterest-bearing debtNet assets ■ Accounts

payable+256

■ Other current liabilities

(1,680)

■ Other fixed liabilities +2,525

■ Interest-bearing debt

+1,438

■ Net assets +103

(¥ millions)

マスタータイトルの書式設定Cautionary statement:

This material includes forward-looking statements based on assumptions and beliefs in light of the information currently available to management, and is subject to significant risks and uncertainties. Actual financial results may vary materially from the content of this material depending on a number of factors. While this material contains information on pharmaceuticals (including compounds under development), this information is not intended to make any representations or advertisements regarding the efficacy or effectiveness of their preparations, promote any kind of unapproved uses, nor provide medical advice of any kind.

Overview of Financial Results �for FY2019 3rd QuarterBusiness segments and group companiesMain initiatives of the current termConsolidated income statement (overview)Breakdown of Non-operating income and expenses�/Extraordinary income and losses/Income taxesSales & Operating income by segmentOrders received / BacklogTrend in consolidated Sales & Operating incomeContract Research Organization (CRO) BusinessContract Development Manufacturing Organization� (CDMO) BusinessContract Sales Organization (CSO) BusinessHealthcare BusinessInnovative Pharma Model（ IPM ） BusinessBalance sheet (assets)Balance sheet (liabilities and net assets)スライド番号 16

overview of financial results マスタータイトルの ...web-cache-sc.stream.ne.jp/€¦ ·...

Documents