overview of financial results for the 1st quarter fy2018 · cso business provision of comprehensive...
TRANSCRIPT
マスター タイトルの書式設定
© Copyright CMIC Group
CMIC HOLDINGS Co., Ltd.
February 1, 2018
Overview of Financial Results for the 1st Quarter FY2018
マスター タイトルの書式設定
2 © Copyright CMIC Group
Business segments and group companies Blue indicates overseas. *indicates affiliated company
Segment Products and services CMIC Group companies (as of end of Dec. 2017)
CRO
Business
Services related to pharmaceutical development support, analytical chemistry services, and healthcare for pharmaceutical companies, and BPO and personnel services for the pharmaceutical industry
CMIC HOLDINGS Co., Ltd. CMIC Co., Ltd. CMIC-PMS 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) Limited CMIC ASIA-PACIFIC (PHILIPPINES), INC. CMIC (Beijing) Pharmaceutical Services Co., Ltd. CMIC (Beijing) Co., Ltd. CMIC 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 Korea Co., Ltd. CMIC CMO USA Corporation CMIC JSR Biologics Co., Ltd.*
CSO
Business
Services provided to pharma companies related to sales & marketing support
CMIC Ashfield Co., Ltd. MDS-CMG, 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. CMIC Healthcare Co., Ltd. CMIC VIETNAM COMPANY LIMITED
IPM
Business
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.
マスター タイトルの書式設定
3 © Copyright CMIC Group
Main initiatives of the current term
Execution of Project Phoenix Expansion of solution business through PVC model Promoted the activities of cross organizational team “Hayabusa (Falcon)” towards agile management Work style reforms: Company-wide introduction of “Telework program” to promote various ways of
working
CRO Business Participated in the Technology Consortium aiming at the clinical application of platelet preparations
derived from human iPS cells Enhanced analytical services for Nucleic acid drugs, expected as candidates for next-generation drugs Started services to support generic drug application for approval in China
CDMO Business Built a new injection building outfitted with state-of-the-art equipment at the Ashikaga plant to increase
orders to manufacture anti-cancer drugs
CSO Business Provision of comprehensive commercial solution that combines various services
Healthcare Business Launched services to support spinal muscular atrophy (SMA) patients together with Biogen and Welby Expanded new service models such as Medical Concierge Services
IPM Business Transferred domestic manufacturing and marketing license from Novartis for hypertension drug “Rasilez
Tablets ® (Aliskiren Fumarate) 150mg”
マスター タイトルの書式設定
4 © Copyright CMIC Group
2017/1Q 2018/1Q
Amount Composition
ratio Amount Composition
ratio
YoY change
Percent change
(¥ millions) (%) (¥ millions) (%) (¥ millions) (%)
Sales 15,389 100.0 16,637 100.0 1,248 8.1
Operating income 501 3.3 1,013 6.1 512 102.0
Ordinary income 619 4.0 1,035 6.2 415 67.1
Profit attributable to owners of
parent 200 1.3 544 3.3 343 170.9
Earnings per share ¥10.74 ¥29.09
Consolidated income statement (overview)
マスター タイトルの書式設定
5 © Copyright CMIC Group
Breakdown of Non-operating income and expenses /Extraordinary losses
(¥ millions)
2017/1Q 2018/1Q
Non-operating income 180 59
Foreign exchange gains 153 26
Interest income 8 1
Share of profit of entities
accounted for using equity method - 16
Other 18 14
Non-operating expenses 62 37
Interest expenses 30 28
Share of loss of entities accounted for using equity method
6 -
Other 24 9
2017/1Q 2018/1Q
Extraordinary losses 102 18
Loss on sales of non-
current assets 21 -
Loss on retirement of
non-current assets 9 13
Provision of allowance
for doubtful accounts 70 -
Loss on valuation of
investment securities - 4
マスター タイトルの書式設定
6 © Copyright CMIC Group
Sales & Operating income by segment
2017/1Q Amount (¥ millions)
2018/1Q Amount (¥ millions)
Change (¥ millions)
Percent change (%)
CRO Business Sales 7,677 9,012 1,334 17.4
Operating income 1,157 1,812 655 56.7
CDMO Business
Sales 3,233 3,586 353 10.9
Operating income (192) (184) 7 -
CSO Business Sales 1,711 1,675 (35) (2.1)
Operating income 83 56 (27) (32.6)
Healthcare Business
Sales 2,056 1,739 (317) (15.4)
Operating income 194 149 (45) (23.4)
IPM Business Sales 764 746 (18) (2.4)
Operating income 1 (65) (66) -
Adjustments Sales (54) (122) (67) -
Operating income (742) (755) (12) -
Consolidated Sales 15,389 16,637 1,248 8.1
Operating income 501 1,013 512 102.0
マスター タイトルの書式設定
7 © Copyright CMIC Group
Orders received / Backlog
・ 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.
2017/1Q 2018/1Q
Orders received
Backlog Orders
received Percent change
Backlog Percent change
(¥ millions) (¥ millions) (¥ millions) (%) (¥ millions) (%)
CRO Business 13,789 51,719 10,479 (24.0) 56,440 9.1
CDMO Business 3,519 3,593 3,523 0.1 3,582 (0.3)
CSO Business 1,045 4,929 1,663 59.1 3,084 (37.4)
Healthcare Business 1,999 9,448 1,606 (19.7) 9,054 (4.2)
Total 20,354 69,690 17,272 (15.1) 72,161 3.5
7
マスター タイトルの書式設定
8 © Copyright CMIC Group
Trend in consolidated Sales & Operating income
7,486 7,677 9,012
3,159 3,233
3,586 1,827 1,711
1,675 1,653 2,056
1,739 657
764
746
14,633 15,389
16,637
0
10,000
2016/1Q 2017/1Q 2018/1Q
CRO business CDMO business CSO business
Healthcare business IPM business
515 501
1,013
3.5% 3.3%
6.1%
0%
10%
0
500
1,000
2016/1Q 2017/1Q 2018/1Q
Operating income Operating margin
*(54)
*(151)
*(122)
[ Sales ] [ Operating income ] (¥ millions) (¥ millions)
*Adjustment
マスター タイトルの書式設定
9 © Copyright CMIC Group
Contract Research Organization (CRO) Business
Secured human resources to meet robust demand in clinical services and studied the feasibility of post-marketing support business utilizing clinical research and database. For non-clinical services, Japan-US collaboration was enhanced to support Japanese companies entering the US market. Provided drug discovery support for next-generation drugs including nucleic acid drugs and regenerative medicine. Sales and operating income exceeded those from the same period of the previous year thanks to robust growth in new and existing contracts.
6,039 6,244 7,448
999 914
1,052 549 576
584
7,486 7,677
9,012
0
5,000
10,000
2016/1Q 2017/1Q 2018/1Q
Clinical Non-clinical Others
954
1,157
1,812
12.7%
15.1%
20.1%
0%
10%
20%
0
1,000
2,000
2016/1Q 2017/1Q 2018/1Q
Operating income Operating margin
*(58) *(102)
*(73)
[ Sales ] [ Operating income ] (¥ millions) (¥ millions)
*Adjustment
9
マスター タイトルの書式設定
10 © Copyright CMIC Group
Contract Development Manufacturing Organization (CDMO) Business
Continued an effort to establish a low-cost production structure in the pursuit of productivity and efficiency through total service provision for drug manufacturing. Focused on the preparation towards the full-scale operation of the new injection building. Sales and operating income exceeded those from the previous consolidated fiscal year thanks to robust growth in new and existing contract manufacturing projects, but operating loss was unchanged from the previous corresponding period due to start-up expenses for the new injection building in Ashikaga, which incurred before the business is running.
(68)
(192) (184)
-10%
0%
10%
(300)
(200)
(100)
0
100
Operating income
2,611 2,667 2,948
437 436
414 111 129
223 3,159 3,233
3,586
0
2,000
4,000
2016/1Q 2017/1Q 2018/1Q
CMO (Japan) CCU (U.S.) CCK (Korea)
[ Sales ] [Operating income ] (¥ millions) (¥ millions)
10
2016/1Q 2017/1Q 2018/1Q
マスター タイトルの書式設定
11 © Copyright CMIC Group
Contract Sales Organization (CSO) Business
1,827 1,711 1,675
0
1,000
2,000
2016/1Q 2017/1Q 2018/1Q
CMAS
90 83
56 5.0% 4.9%
3.4%
0%
5%
10%
0
100
2016/1Q 2017/1Q 2018/1Q
Operating income Operting margin
[ Sales ] [Operating income ] (¥ millions) (¥ millions)
CMIC Ashfield Co., Ltd. has worked steadily to strengthen its capacity to take new orders and move through existing projects, they are also providing comprehensive commercial solution that combines various services to meet customer demands. Sales and operating income are below the prior year level due to outsourcing needs of MR dispatch business facing the adjustment phase, but order intake exceeded those from the previous consolidated fiscal year. 11
マスター タイトルの書式設定
12 © Copyright CMIC Group
Healthcare Business
Site Support Institute Co., Ltd. has acquired new orders and provided new services such as Medical Concierge Services. Sales and operating income are below that of the same period last year due to losing some large-scale projects we had in the same period last year.
1,476
1,882 1,589
175
163
149 1 1,653
2,056
1,739
0
1,000
2,000
2016/1Q 2017/1Q 2018/1Q
SSI CHC Others
(8)
194
149
9.5% 8.6%
-5%
5%
15%
(100)
0
100
200
300
2017/1Q 2018/1Q
Operating income Operating margin
2016/1Q
[ Sales ] [Operating income ] (¥ millions) (¥ millions) *Adjustment
* 9
12
マスター タイトルの書式設定
13 © Copyright CMIC Group
Innovative Pharma Model( IPM ) Business
88
1
(65)
13.5%
0.2%
-10%
0%
10%
20%
(100)
0
100
200
2016/1Q 2017/1Q
Operating income Operating margin
593 695 711
63
27 28 42
6 657
764 746
0
500
1,000
2016/1Q 2017/1Q 2018/1Q
L-FABP OP Others
2018/1Q
[ Sales ] [Operating income ] (¥ millions) (¥ millions) *Adjustment
Strengthened IPM business foundation through provision of IPM platform such as selling orphan drugs including the products developed in-house and supporting foreign companies entering the Japanese market. Expanded the market and strengthen promotions of the kidney disease biomarker "human L-type fatty acid-binding protein (L-FABP) kit". Sales and operating income were lower than that of the same period last year due to sales promotion expenses for "Zanmira Nail" (toe nail repair solution). Continued to expand our business scale through provision of new solutions towards positive turnaround of sales.
13
マスター タイトルの書式設定
14 © Copyright CMIC Group
Balance sheet (assets)
34,305 38,264 40,072
3,715 3,960
3,926 5,285 5,443
5,511 10,731
12,989 12,812 5,069
4,947 6,209
59,104
65,605 68,533
0
20,000
40,000
60,000
80,000
2016/9 2017/9 2017/12
Cash equivalents
Trade receivables
Inventory
Other current assets
Fixed assets
Total assets
+2,927
■ Cash equivalents
+1,261
■ Trade receivables
(177)
■ Inventory +68
■
Other current assets
(34)
■ Fixed assets +1,808
(¥ millions)
マスター タイトルの書式設定
15 © Copyright CMIC Group
Balance sheet (liabilities and net assets)
21,397 23,608 23,838
16,086 18,899
21,977
8,843
9,193 9,171
11,824
12,870 12,681
953
1,034 865
59,104
65,605 68,533
0
20,000
40,000
60,000
80,000
2016/9 2017/9 2017/12
Accounts payable
Other current liabilities
Other fixed liabilities
Interest-bearing debt
Net assets
■ Accounts payable
(169)
■ Other current liabilities
(189)
■ Other fixed liabilities
(22)
■
Interest-bearing debt
+3,078
■ Net assets +230
(¥ 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.