These financial statements have been prepared for reference only in accordance with accounting principles and practices generally accepted in Japan. May 16, 2016
MEDIPAL HOLDINGS CORPORATION Stock exchange listing: Tokyo
Code number: 7459 http://www.medipal.co.jp
Representative: Shuichi Watanabe, President and CEO
Contact: Mamoru Tsuchishio, Manager of Corporate Communications Department Phone: +81-3-3517-5171 Annual General Meeting of Shareholders (scheduled): June 24, 2016
Start of distribution of dividends (scheduled): June 3, 2016 Filing of Securities Report (Yuka Shoken Hokokusho) (scheduled): June 24, 2016 Preparation of Supplementary Materials for Financial Results: Yes
Presentation Meeting for Financial Results: Yes (for institutional investors and securities analysts)
Note: All amounts are rounded down to the nearest million yen.
- Consolidated Results for Fiscal 2016 (April 1, 2015 - March 31, 2016)
Sales and Income
(Percentages represent change compared to the previous fiscal year.)
Net sales (¥ million)
Year-on-year change (%)
Operating income (¥ million)
Year-on-year change (%)
Ordinary income (¥ million)
Year-on-year change (%)
Fiscal 2016
Fiscal 2015
3,028,187
2,872,905
5.4
(2.5)
42,283
32,795
28.9
(5.4)
55,140
44,475
24.0
(10.7)
(Note) Comprehensive income: Fiscal 2016: ¥37,879 million (-31.8%); Fiscal 2015: ¥55,542 million (+75.9%)
Net income attributable to owners of the parent
(¥ million)
Year-on-year change (%)
Earnings per share (¥)
Earnings per share (diluted) (¥)
Return on equity (%)
Ordinary income/total assets (%)
Operating income/net sales (%)
Fiscal 2016
Fiscal 2015
30,771
23,687
29.9
(7.1)
135.89
104.73
-
-
7.6
6.4
3.7
3.1
1.4
1.1
(Reference) Equity in earnings of affiliates: Fiscal 2016: ¥1,791 million; Fiscal 2015: ¥1,086 million
Financial Position
Total assets (¥ million)
Net assets (¥ million)
Net worth ratio (%)
Net assets per share (¥)
Fiscal 2016
Fiscal 2015
1,497,310
1,454,800
488,328
457,604
27.7
26.8
1,832.45
1,722.56
(Reference) Net worth: As of March 31, 2016: ¥414,939 million; As of March 31, 2015: ¥390,059 million
Cash Flows
Cash flows from operating activities (¥ million)
Cash flows from investing activities (¥ million)
Cash flows from financing activities (¥ million)
Cash and cash equivalents at end of period
(¥ million)
Fiscal 2016
Fiscal 2015
21,985
80,466
(41,267)
(11,834)
6,093
(19,834)
163,317
176,530
-
Dividends
Dividends per share (¥)
Total dividends paid
(full year) (¥ million)
Payout ratio (consolidated) (%)
Dividends/net assets (consolidated) (%)
1st quarter
Interim
3rd quarter
Year-end
Full year
Fiscal 2015
Fiscal 2016
-
-
12.00
13.00
-
-
12.00
15.00
24.00
28.00
5,430
6,340
22.9
20.6
1.5
1.6
Fiscal 2017 (est.)
-
15.00
-
15.00
30.00
21.9
-
Projected Results for Fiscal 2017 (April 1, 2016 - March 31, 2017)
(Percentages represent change compared to the previous interim period or fiscal year, as applicable)
NotesNet sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Earnings per share
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥ million)
(%)
(¥)
Interim period Full term
1,531,000
3,103,000
3.0
2.5
21,200
42,500
15.0
0.5
27,300
55,500
12.0
0.7
15,000
31,000
18.7
0.7
66.24
136.90
Changes in the state of material subsidiaries during the period (changes in specified subsidiaries due to changes in the scope of consolidation: None
New: - companies ( - ) Excluded: - companies ( - )
Changes in accounting policies and changes in/restatements of accounting estimates
Changes in accounting policies due to revisions of accounting standards: Yes
Changes in accounting policies other than (a) above: None
Changes in accounting estimates: None
Restatements: None
Note: For details please see "5. Consolidated Financial Statements (5) Notes to the Consolidated Financial Statements (Changes in Accounting Policies)" on page 21 of the attached materials.
Fiscal 2016
244,524,496
Fiscal 2015
244,524,496
Fiscal 2016
18,085,160
Fiscal 2015
18,082,826
Fiscal 2016
226,440,382
Fiscal 2015
226,190,787
Number of shares issued and outstanding (common stock)
Number of shares issued at the end of the period (including treasury stock)
Number of treasury shares at the end of theperiod
Average number of shares outstanding during the period
(Reference) Summary of Unconsolidated Results
1. Unconsolidated Results for Fiscal 2016 (April 1, 2015 - March 31, 2016)Sales and Income (Percentages represent change compared with the previous fiscal year.)
Net sales (¥ million)
Year-on-year change
(%)
Operating income
(¥ million)
Year-on-year change
(%)
Ordinary income
(¥ million)
Year-on-year change
(%)
Fiscal 2016
Fiscal 2015
13,782
12,640
9.0
16.0
10,116
9,592
5.5
22.0
11,759
10,636
10.6
30.3
Net income (¥ million)
Year-on-year change
(%)
Earnings per share (¥)
Earnings per share (diluted) (¥)
Fiscal 2016
Fiscal 2015
12,138
13,846
(12.3)
82.8
53.61
61.21
-
-
Financial Position
Items Regarding the Implementation of Audit Procedures
This summary of consolidated results is exempt from the audit procedures based on the Financial Instruments and Exchange Act. Audit procedures for the financial statements based on the Financial Instruments and Exchange Act had not been completed at the time of disclosure of this summary of consolidated results.
Cautionary Remarks Regarding Proper Use of Projected Results and Other Items
Business Results
Analysis of Business Results
Analysis of Financial Position
Basic Policy for Distribution of Profits and Dividends for the Fiscal Years Ended March 31, 2016 and Ending March 31, 2017
Business and Other Risks
Management Policies
Basic Management Policy
Target Management Indicators
Medium-to-Long-Term Management Strategies of the Company
Issues Facing the Company
Consolidated Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements (Notes Regarding Assumptions of Going Concern)
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income
(Preparation of the Consolidated Financial Statements) (Changes in Accounting Policies)
(Segment Information) (Per Share Information)
(Significant Subsequent Events)
Unconsolidated Financial Statements
Unconsolidated Balance Sheets
Unconsolidated Statements of Income
Others
Changes in Officers
Area Logistics Center (ALC): A state-of-the-art logistics center that supplies prescription pharmaceuticals, medical supplies and other items primarily to dispensing pharmacies, hospitals and clinics.
Front Logistics Center (FLC): A combined sales and logistics base that is located near customers and supports stable supplies of products in coordination with ALCs.
PRESUS® (Pharmacy Real-time Support System): An all-in-one system for conducting automated ordering, inventory management, etc., using demand forecasting through linkage with ALCs to support the operations of dispensing pharmacies.
Assist Representative (AR): An internal designation given to Marketing Specialists (salespeople for the Prescription Pharmaceutical Wholesale Business), pharmacists and others who have passed the Medical Representative (MR) qualification exam.
Total assets (¥ million) | Net assets (¥ million) | Net worth ratio (%) | Net assets per share (¥) | |
Fiscal 2016 Fiscal 2015 | 299,500 307,320 | 253,374 245,180 | 84.6 79.8 | 1,118.95 1,082.75 |
(Reference) Net worth: Fiscal 2016: ¥253,374 million; Fiscal 2015: ¥245,180 million
The projected results are based on information available at the time of this announcement. Actual results may differ from the figures in the projection owing to a wide range of factors in the future. See page 3 of the attached materials for items concerning the projected results.
Table of Contents of Attached Materials
2 2 4 5 6 | |
2. Corporate Group | 8 |
10 10 10 10 10 | |
4. Basic Rationale for Selection of Accounting Standards | 11 |
12 12 14 14 15 16 18 19 19 19 21 21 23 23 | |
24 24 26 | |
27 27 |
1
1. Business Results (1) Analysis of Business ResultsBusiness Results for the Fiscal Year Ended March 31, 2016
During the fiscal year ended March 31, 2016, Japan's economy continued to recover gradually, reflecting the effects of government economic policies and improvements in employment and income as well as corporate earnings, despite concerns about a downturn in overseas economies.
In these economic conditions, under the 2017 MEDIPAL Medium-Term Vision, "Change the Oroshi - Create and Innovate," the MEDIPAL Group worked toward the growth of the Group and further enhancement of its corporate value. To accomplish these objectives, the MEDIPAL Group further strengthened the logistics and sales functions it has cultivated to innovate in existing businesses, and also diversified earnings by using assets, human resources and funds as well as external resources to create new businesses. As a result, the operating income and ordinary income targets in the Medium-Term Vision were achieved one year earlier than planned.
Consolidated net sales for the period totaled ¥3,028,187 million (a 5.4 percent increase compared with the previous fiscal year), operating income was ¥42,283 million (a 28.9 percent increase), ordinary income was ¥55,140 million (a 24.0 percent increase) and net income attributable to owners of the parent was ¥30,771 million (a 29.9 percent increase).
A summary of results by principal business segment follows below.
Prescription Pharmaceutical Wholesale BusinessSales of prescription pharmaceuticals grew steadily due to promotion of the use of generic drugs and expanding demand for new hepatitis C treatments and new drugs eligible for the price premium to promote the development of new drugs and eliminate off-label use. In addition, the MEDIPAL Group worked to secure profits by making clear progress in negotiating selling prices with customers while also reducing selling, general and administrative expenses, partly through greater efficiency in logistics operations.
In this business, the MEDIPAL Group has been taking various measures to fully utilize its wholesale functions, with the idea of optimizing and raising the efficiency of the overall supply chain from pharmaceutical manufacturers to patients as social infrastructure that supports safe, secure medical treatment. In strengthening its distribution infrastructure, the MEDIPAL Group is aiming for the nationwide expansion of high-quality, high-
function and disaster-ready ALCs.1 Three new ALCs are under construction in Higashi-ku, Fukuoka-shi, Tsukubo- gun in Okayama, and Misato-shi in Saitama, in addition to the six currently in operation in major metropolitan areas. The MEDIPAL Group is also establishing FLCs2 in areas where ALCs are already operating. Furthermore, the MEDIPAL Group is promoting PRESUS®,3 a new operations support system it developed for dispensing pharmacies. This system offers advantages such as prevention of stock-outs and improvement of operating efficiency through linkage with ALCs.
To strengthen sales, the MEDIPAL Group has appointed approximately 1,800 highly skilled and knowledgeable Assist Representatives (ARs)4 with medical representative (MR) certification to undertake new promotional activities.
In addition, the MEDIPAL Group is operating a business in which it provides Post-Marketing Surveillance (PMS) services under contract with pharmaceutical companies using its nationwide operating bases and its ARs and other human resources.
As a result, sales of the Prescription Pharmaceutical Wholesale Business were ¥2,123,439 million (a 4.2 percent increase compared with the previous fiscal year) and operating income was ¥24,533 million (a 39.7 percent increase).
Definition of Terms:
2
Medipal Holdings Corporation published this content on 16 May 2016 and is solely responsible for the information contained herein.
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