Download 2016/09/04

Qol vision 2016
The First Section of the Tokyo Stock Exchange 3034
Qol Co.,Ltd.
Agenda
 Introduction（P3-）
 Market（P9-）
 Qol’s strategy（P15-）
 FY 3/2016
Consolidated Financial Results（P32-）
 FY 3/2017 Q1 Consolidated Financial Results（P39-）
 QOL Pharmacy（Photo） （P53-）
Copyright © Qol Co., Ltd. All rights reserved.
2
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
3
The origin of company name
Q
Quality
O
L
Of
Life
Quality Of Life
Copyright © Qol Co., Ltd. All rights reserved.
4
History
 Year 1992 Qol Co., Ltd. was established.
 Year 2006 The Osaka Securities Exchange “Hercules.”
 Year 2008 Qol Co., Ltd. formed a business alliance with Lawson, Inc.
 Year 2011 The Tokyo Stock Exchange “the Second section”.
 Year 2012 Qol Co., Ltd. formed a business alliance with West JR Company Group.
 Year 2012 Qol Co., Ltd. formed a capital alliance with Lawson, Inc.
 Year 2012 All shares of APO PLUS STATION Co., Ltd. were acquired to make it
a wholly owned subsidiary.
 Year 2012 The Tokyo Stock Exchange “the First section”.
 Year 2014 Qol Co., Ltd. formed a business alliance with cocokara fine Inc.
 Year 2016 Personnel change：
Chairman & CEO Masaru Nakamura, President & COO Takashi Nakamura
 Capital：2,828 million yen
Copyright © Qol Co., Ltd. All rights reserved.
5
Portfolio
Qol
Net Sales ratio
90%
10%
Pharmacy
BPO
90%
QOL
Pharmacy
BIC
CAMERA
Copyright © Qol Co., Ltd. All rights reserved.
90%
FC
LAWSON
West JR
Group
Staffing
services
BPO：Business Process Outsourcing
Other
※Staffing services : APO PLUS STATION Co., Ltd.
contract MRs（CSO business）/Pharmacists/Nurses/Registered
sales clerks
6
Our services
Smartphone app
TV Phone
QOL CARD
Home Medical
care
Automatic dispensing
machine
Eco/Disaster
control
Convenience
Dispensing-error
prevention system
Speech privacy
system
Educating our
pharmacists on
highly advanced
medical treatments
Visualization
CSR
Copyright © Qol Co., Ltd. All rights reserved.
7
Earnings structure of common dispensing pharmacies
image
Drug margin 10%
Bid：Drug margin went up
Copyright © Qol Co., Ltd. All rights reserved.
8
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
9
Prescription receipt rate
（%）
80.0
70.0
70.0
60.0
50.0
51.6
53.8 54.1
55.8
57.2
59.1
60.7
63.1
67.0
65.1 66.1
68.7
48.8
44.5
40.0
39.5
34.8
30.0
30.5
26.0
20.0
10.0
12.8
11.3 12.0
9.7 10.1 10.6
14.1
15.8
18.1
20.3
22.5
0.0
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
（year）
Copyright © Qol Co., Ltd. All rights reserved.
10
Pharmacy market
Major chains pharmacies
New business
•
M&A(increase)
•
Relaxation of regulation(Business leaders
Individual pharmacies
 Major chains pharmacies
10%
consider progress in three areas critical to the nation’s economic
vitality ; reducing the size of government deregulation, and
budget and tax reform.)
• Prescription receipt
rate 70%
• Prescription receipt
rate 100%
• Dispensing market
7.2 trillion yen
• Dispensing market
10 trillion yen
planned economy
Copyright © Qol Co., Ltd. All rights reserved.
11
Events （ NHI drug price revision） & impact （image）
up trend
（YoY 2.0%）
65.1%
（YoY 1.0%）
（YoY 0.9%）
67.0%
66.1%
（YoY 1.7%）
up trend
（YoY 1.3%）
68.7%
70.0%
separation rate
expanding ?
expanding
Consumption tax
8% → 10%
Consumption tax
5% → 8%
consumption tax
NHI drug price revision
〇
positive？
2011
Apr-12
2013
Apr-14
2015
Apr-16
2017
Apr-18
Oct-19
Apr-20
2021
（year）
-2.65
negative
（%）
negative?
-6.0
negative
-7.8
negative
negative
negative
Three consecutive year (year 2018-2020)
Copyright © Qol Co., Ltd. All rights reserved.
12
Market of MRs
4,500
3,957
4,000
3,500
17
18
18
3,000
15
2,500
2,375
2,000
1,694
1,904
1,918
2,932
3,521
3,211
15
15
4,139
20
18
16
15
15
14
12
12
1,500
10
CMR数（左軸）
Contract MRs
8
CSO企業数
CSO companies
6
1,000
4
500
2
0
0
 Market of contract MRs is growing by
11.8%(CAGR) every year.
 Cost of MRs: Fixed cost → Variable cost
68,000
6.4%
6.0%
66,000
5.0%
4.8%
62,000
5.0%
4.0%
60,000
3.4%
3.0%
4.0%
3.3%
MR数
MRs
65,752
63,875
56,000
58,400
54,000
56,168
59,712
56,046
52,000
50,000
6.0%
5.5%
64,000
58,000
7.0%
61,246
63,846
64,657
3.0%
CMR比率
Contract MRs (%)
2.0%
1.0%
0.0%
2006年
2006 2007年
2007 2008年
2008 2009年
2009 2010年
2010 2011年
2011 2012年
2012 2013年
2013 2014年
2014 (year)
Copyright © Qol Co., Ltd. All rights reserved.
13
Year 2016 Dispensing fee
Primary care pharmacists
Pharmacy
A
Pharmacy
E
Pharmacy
B
Clinic
Hospital
Prescriptions
Pharmacy
D
General
Hospital
Pharmacy
C
Hospital
Pharmacy
Prescriptions
Dispensing fee decrease
Small
Hospital
Concentration rate : 95% / 90% / 70%
Internist
clinic
Pharmacy
Orthopedics
Pharmacy
Copyright © Qol Co., Ltd. All rights reserved.
Otolaryngology
Clinic
•
Dispensing fee increase
•
Centralization of information
Pharmacy
14
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
15
Deployment strategy
Patients select
pharmacies actively
Copyright © Qol Co., Ltd. All rights reserved.
16
Growth
Pharmacy
＞ Net sales
Profit ＜
Staffing
services
Bidding
system
• APO PLUS
STATION Co., Ltd.
Operating margin:5%
Copyright © Qol Co., Ltd. All rights reserved.
Operating margin:20%
17
Strategy
LAWSON
In town
Copyright © Qol Co., Ltd. All rights reserved.
BIG
CAMERA
Outside of
the station
West JR
Group・
odakyu
In the
station
18
Market・・・Various opening stores style
User
Increase awareness about
dispensing pharmacy
QOL pharmacy
（core business）
LAWSON
100
people /day
850
people/day
In town
BIC CAMERA
Out of the station
Tens of
thousands/
day
West JR Group・
odakyu
850
thousand/day
In the station
ICT
Smartphone app
※ICT：Information and Communication Technology
Copyright © Qol Co., Ltd. All rights reserved.
QOL card
（About 1.9 million people）
19
Positioning
Increase
 QOL Pharmacy
 BIC CAMERA
Profit
 odakyu ELECTRIC
RAILWAY
 LAWSON
Number of users
Copyright © Qol Co., Ltd. All rights reserved.
 West JR Group
Increase
20
Development of new markets
Securities code
stores
LAWSON
2651
32
In town
Business & capital alliance
BIG CAMERA
3048
4
Outside of the station
－
West JR (Group)
9021
4
In the station
Business alliance
Yamato HD(Group)
9064
－
Home delivery & logistics
－
cocokara fine
3098
－
Health care
Business alliance
odakyu ELECTRIC RAILWAY
9007
1
In the station
－
Drug stores
－
－
Health care
M&A
Others
－
－
－
－
Copyright © Qol Co., Ltd. All rights reserved.
market
alliance
21
Logistics networks・・・in collaboration with Yamato Group
• Stock（Prescription drug, OTC drug）・・・decrease
delivery function
• Loss on disposal・・・decrease
• Delivery business of medicine
to care facility
QOL pharmacy
In house
transfer
QOL pharmacy
Copyright © Qol Co., Ltd. All rights reserved.
22
Deregulation・・・ Yamato HD ‘TA-Q-BIN’ networks
Yamato HD
 Increase of stock
QOL
Pharmacy
 Factor
•
Increase of GE drugs
•
Increase of home care
•
When the electronic
prescriptions is to
spread, gather a
prescription from a
variety of medical
institutions.
Care
facility
TA-Q-BIN networks
transfer
Pharmacy
A
Hub
QOL
pharmacy
In the future, there is a
possibility enter the Qol group
Dispensing center
Drug
store
Home
patient
In the future, there is a
possibility enter the Qol group
Copyright © Qol Co., Ltd. All rights reserved.
Home
Convenience
Pharmacy
B
23
Deregulation
New stores
Hospital
grounds
In the hospital
Prescriptions
Electronic
anywhere
Pharmacists
Over 40
prescriptions/
day
TV phone
Home delivery
& Logistics
hub pharmacy
Delivery
function
Copyright © Qol Co., Ltd. All rights reserved.
24
Deregulation
Hospital grounds
Hospital
Hospital LAWSON

2F
Meeting with Doctors & pharmacists
Pharmacy students training
Conference room （2F）
QOL Pharmacy
（1F）
Public road
Dispensing
Pharmacy A
Copyright © Qol Co., Ltd. All rights reserved.
Dispensing
Pharmacy B
Dispensing
Pharmacy C
Dispensing
Pharmacy D
25
Deregulation・・・ Electronic prescriptions
Pharmacy
A
Monzen
Hospital
Prescriptions
In front of
the pharmacy
Pharmacy
D
Electronic
prescriptions
Pharmacy
B
Pharmacy
C
• Increase of Stock（Branded drugs/
GE drugs）
• Convenience is required.
Copyright © Qol Co., Ltd. All rights reserved.
26
Deregulation・・・ anywhere
Current situation
Deregulation
OK
Increase of stock
Pharmacy
A
Pharmacy
OK
NO
Prescriptions
CVS
Station
Prescriptions
CVS
NO
OK
OK
Pharmacy
B
station
Pharmacy
C
 Effective partnership
LAWSON/ West JR Group/ odakyu ELECTRIC RAILWAY/ Yamato HD
Copyright © Qol Co., Ltd. All rights reserved.
27
LAWSON business Plan
•
100 stores
•
Nationwide development
（stores）
120
Number of stores
100
100
80
60
40
40
32
20
0
FY3/2016
Copyright © Qol Co., Ltd. All rights reserved.
FY3/2017
FY3/2018
FY3/2019
FY3/2020
28
Qol vision・・・Net sales of 300 billion yen plan
 The expansion of a business
 Organic growth
Qol HD
 M&A
 Cost decrease
BPO
Drug store
Net sales： 300 billion yen
OP：20 billion yen
Payout ratio：over 30%
ROE：over 15%
ROIC：over 10%
Qol
M&A
Health support pharmacy
• Staffing services
• New entry
•
QOL pharmacy
（New stores
10~20/year）
• Consolidate
• Prescription drug
& OTC drug
• Cost decrease
•
LAWSON
• High revenue
•
BIC CAMERA
• Overseas : Thailand
•
West JR Group
•
NEW・・・
Copyright © Qol Co., Ltd. All rights reserved.
• Stores
30~70/year）
• Consolidate
• Cost decrease
29
Break down Net sales 300 billion yen
FY3/2017 Net sales plan
BPO business,
10
（Unit : JPY Billion.）
FY（X） Net sales
300 billon yen plan
BPO business,
25
Pharmacy
business, 128
Pharmacy
business, 275
•
QOL Pharmacy 57 billion yen
• QOL Pharmacy
•
M&A
71 billion yen
• M&A
190 billion yen
•
BPO
10 billion yen
• BPO
25 billion yen
<CMRs 600 people>
Copyright © Qol Co., Ltd. All rights reserved.
85 billion yen
<CMRs 1,000 people>
30
Break down
Operating income 20 billion yen Plan
FY3/2017 Operating income Plan
FY（X） Operating income
20 billion yen Plan
（Billion yen）
BPO bisiness,
1.3
BPO business,
5
Pharmacy
business,
6.84
Pharmacy
business,
15
 OP margin
• Pharmacy business
5.4%
5.5%
• BPO business
11.3%
20.0%
Copyright © Qol Co., Ltd. All rights reserved.
31
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
32
Operating Performance
（Millions of yen）
 CAGR（FY3/2007-FY3/2016）
140,000
（Millions of yen）
9,000
Net sales(left)
 Net sales：19.7%
Operating income(right)
124,957
8,000
120,000
 Operating income：24.4%
114,363
6,709
 Market cap 11 times
（5.3 billion yen → 60.6 billion yen）
100,000
6,000
76,783
80,000
7,000
100,966
5,000
66,201
60,915
60,000
4,000
56,305
4,243
49,010
3,000
3,308
38,002
40,000
2,812
2,804
24,827
20,000
2,000
2,105
2,031
1,526
1,314
1,000
937
0
FY3/2007
（source：Bloomberg）
0
FY3/2008
FY3/2009
Copyright © Qol Co., Ltd. All rights reserved.
FY3/2010
FY3/2011
FY3/2012
FY3/2013
FY3/2014
FY3/2015
FY3/2016
33
FY 3/2016 Highlight
（Millions of yen）
Net sales
FY 3/2014
FY 3/2015
FY 3/2016
increase/decrease
YoY
FY 3/2016 plan
Achievement ratio
100,966
114,363
124,957
10,593
9.3%
125,800
99.3%
Operating income
2,105
4,243
6,709
2,466
58.1%
6,200
108.2%
Ordinary income
2,208
4,262
6,655
2,393
56.2%
6,100
109.1%
777
2,155
3,641
1,485
68.9%
3,400
107.1%
EPS（yen）
25.11
63.33
105.81
42.48
67.1%
98.84
107.1%
BPS（yen）
521.60
557.42
604.49
47.07
8.4%
-
-
5.2
11.9
18.2
6.3
-
-
-
21,712
36,275
60,614
24,339
67.1%
-
-
520
538
563
25
-
593
94.9%
（37）
（37）
（32）
（-5）
-
（47）
68.1%
Net income
ROE（%）
Market cap
Number of stores
(LAWSON)
Quarterly Trends
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Quarterly Trends
Net sales
Operating income
2,500
28,918
33,480
32,687
29,871
1,910
2,000
FY 3/2015
1,500
1,279
2,075
1,449
FY 3/2015
FY 3/2016
27,282
28,339
29,577
29,164
1,000
1,491
500
579
Q1
 Q1 （Apr.-Jun.）
Q2
Q2 （Jul.-Sep.）
Q3
Q3 （Oct.-Dec.）
Copyright © Qol Co., Ltd. All rights reserved.
Q4
972
1,200
FY 3/2016
0
Q1
Q2
Q3
Q4
Q4 （Jan.-Mar.）
34
FY 3/2016 Net sales & ratio
（Millions of yen）
FY 3/2016 Net sales
New stores
10,727
M&A
9,649
38,950
FY 3/2016 Net Sales ratio
Existing stores
others
8.6%
7.7%
31.2%
※
BPO
51.5%
64,317
1.1%
1,313
※ LAWSON etc
（Millions of yen）
FY 3/2015 Net sales
FY 3/2015 Net sales ratio
11,119
9.7%
11,084
32,744
56,723
Copyright © Qol Co., Ltd. All rights reserved.
28.6%
9.7%
2,694
49.6%
2.4%
35
FY 3/2016 Segment
（Millions of Yen）
Pharmacy business
FY 3/2015
FY 3/2016
Increase/decrease
YoY
103,244
115,308
12,064
11.7%
Prescription drug sales
70,590
81,235
10,644
15.1%
Technical fee
21,570
23,346
1,775
8.2%
Others sales
11,084
10,727
-357
-3.2%
93,527
103,017
9,490
10.1%
90.6%
89.3%
-1.3%
-
9,716
12,290
2,574
26.5%
9.4%
10.7%
1.3%
-
4,416
6,678
2,262
51.2%
4.3%
5.8%
1.5%
-
11,119
9,649
-1,470
-13.2%
7,819
6,178
-1,641
-21.0%
70.3%
64.0%
-6.3%
-
3,300
3,470
170
5.2%
29.7%
36.0%
6.3%
-
722
1,000
278
38.5%
6.5%
10.4%
3.9%
-
Cost
% of sales
Gross profit
% of sales
Operating income
% of sales
BPO business
Cost
% of sales
Gross profit
% of sales
Operating income
% of sales
Copyright © Qol Co., Ltd. All rights reserved.
 Increased revenue factor / Increased profit factor
•
Existing stores YoY +19.0%
（FY 3/2014 +15.2% FY 3/2015 +13.0%）
•
M&A YoY +13.4%
•
Bidding system : Drug margin went up
 Increased revenue factor / increased profit factor
•
APO PLUS STATION（CSO business/Staffing
services）
•
Restructuring of business operations
•
Cost control
36
FY 3/2016 PL
（Millions of yen）
FY 3/2015
FY 3/2016
Increase/decrease
YoY
Net sales
114,363
124,957
10,593
9.3%
cost
101,346
109,196
7,849
7.7%
88.6%
87.4%
-1.2%
-
13,017
15,761
2,744
21.1%
11.4%
12.6%
1.2%
-
8,773
9,051
278
3.2%
7.7%
7.2%
-0.4%
-
4,243
6,709
2,466
58.1%
3.7%
5.4%
1.7%
-
4,262
6,655
2,393
56.2%
3.7%
5.3%
1.6%
-
2,155
3,641
1,485
68.9%
1.9%
2.9%
1.0%
-
21,030
21,944
914
4.4%
18.4%
17.6%
-0.8%
-
% of sales
Gross profit
% of sales
Selling, general and administrative
expenses
% of sales
Operating income
% of sales
Ordinary income
% of sales
Net income
% of sales
Total personnel expenses
% of sales
Copyright © Qol Co., Ltd. All rights reserved.
• Increased revenue factor：
Pharmacy business
+12,064 million yen
BPO business
-1,470 million yen
M&A・existing stores strong performance
• Increased profit factor：
pharmacy business
+2,262 million yen
BPO business
+278 million yen
Bidding system
Cost control
Generic drug use strong performance
• SG & A：
Amortization of goodwill：1,569 million yen
（+72 million yen）
37
FY 3/2016
BS
（Millions of yen）
2015/3
Cash and deposits
2016/3
■Total assets +10,348 million yen
8,236
16,523
12,079
15,242
4,307
4,254
Total current assets
26,534
37,824
Goodwill
19,477
17,469
Total noncurrent assets
33,023
32,069
59,573
69,921
5,394
4,696
Total current liabilities
26,312
29,344
Long-term loans payable
11,462
7,520
Total noncurrent liabilities
14,108
19,481
40,420
48,825
2,828
2,828
10,880
9,354
6,938
9,754
Treasury stock
-1,588
-1,469
Total shareholder’s equity
19,059
20,468
19,152
21,096
■Shareholders’ equity 20,838 million yen
59,573
69,921
 Equity ratio：29.8%（FY 3/2015 ： 32.1%）
Notes and accounts receivable trade
Inventory
Total assets
 Current assets +11,290 million yen
Cash and deposits +8,286 million yen
 Non current assets -953 million yen
Goodwill -2,008 million yen
■Total liabilities +8,404 million yen
 Bonds payable +9,647 million yen
Loans payable
Total liabilities
Capital stock
Capital surplus
Retained earnings
Total net assets
Total liabilities and net assets
Copyright © Qol Co., Ltd. All rights reserved.
 Interest-bearing liabilities +4,976 million yen
（18,574 million yen → 23,551 million yen）
Net D/E ratio：0. 34 times（FY 3/2015：0.54 times）
（Interest-bearing debt – Cash and deposits）/ Shareholders’
equity
■Net asset +1,943 million yen
 Capital surplus -1,525 million yen
 Retained earnings +2,815 million yen
38
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
39
FY 3/2017 Q1 Highlight
（Millions of yen）
FY 3/2016 Q1
FY 3/2017 Q1
Increase/
Decrease
Achievement
ratio（%）
FY 3/2017 Q1 plan
YoY（%）
28,918
30,109
1,191
4.1
30,275
99.5
Operating income
1,279
1,018
-260
-20.4
785
129.6
Ordinary income
1,275
1,050
-225
-17.7
784
133.9
Net income
1,021
767
-253
-24.8
643
119.2
EPS（yen）
29.72
22.27
-7.45
-25.1
-
-
Net sales
（Millions of yen）
40,000
35,000
30,000
25,000
20,000
15,000
10,000
Quarterly trends Net sales
Quarterly trends Operating income
（Millions of yen）
2,500
30,109
28,918
33,480
32,687
29,871
FY 3/2015
FY 3/2016
27,282
28,339
29,577
1,910
2,000
FY 3/2017
29,164
1,500
1,279
1,018
1,449
FY3/2015
FY3/2016
1,000
1,491
500
5,000
0
2,075
972
FY3/2017
1,200
579
Q1
 Q1 （Apr.-Jun.）
Q2
Q2 （Jul.-Sep.）
Q3
Q3 （Oct.-Dec.）
Copyright © Qol Co., Ltd. All rights reserved.
Q4
Q4 （Jan.-Mar.）
0
Q1
Q2
Q3
Q4
FY 3/2015, FY 3/2017 NHI Drug price revision : 579 → 1,018 （1.8 times）
40
Number of stores
（stores）
160
327
438
520
538
563
569
709
1
8
140
Kiosk
West JR Group
120
100
38
80
BIC CAMERA
12
1
8
LAWSON
3
128
22
60
40
M&A
3
51
66
31
15
2
3
20
-20
QOL
34
16
26
0
1
1
23
-7
-6
FY 3/2012
FY 3/2013
-40
Copyright © Qol Co., Ltd. All rights reserved.
17
-22
FY 3/2014
Closed stores
11
9
9
-14
-20
-5
FY 3/2015
FY 3/2016
FY 3/2017 Q1
2
9
146（New stores）
FY 3/2017（Plan）
Closed stores（Mainly closed Kiosk）
41
FY 3/2017 Q1
（Millions of yen）
PL
FY 3/2016
Q1
FY 3/2017
Q1
Increase/Dec
rease
 Increased revenue factor
YoY
Net sales
28,918
30,109
1,191
4.1%
• Pharmacy business： 27,342 million yen
（+698 million yen）
cost
25,412
26,611
1,199
4.7%
• BPO business：2,767 million yen（ +492 million yen）
87.9%
88.4%
0.5%
-
3,506
3,497
-8
-0.2%
12.1%
11.6%
-0.5%
-
2,227
2,479
251
11.3%
% of sales
Gross profit
% of sales
Selling, general and administrative
expenses
% of sales
Operating income
% of sales
Ordinary income
% of sales
Net income
% of sales
Total personnel expenses
% of sales
Copyright © Qol Co., Ltd. All rights reserved.
 Decreased revenue factor
• Dispensing fee revision, NHI drug price revision and
increased personnel expenses
（people）
7.7%
8.2%
0.5%
-
1,279
1,018
-260
-20.4%
4.4%
3.4%
-1.0%
-
1,275
1,050
-225
-17.7%
4.4%
3.5%
-0.9%
-
1,021
767
-253
-24.8%
3.5%
2.6%
-1.0%
-
5,364
5,913
549
10.2%
18.5%
19.6%
1.1%
-
Regular
employees
（Pharmacists）
Temporary
employees
FY3/2017 Q1
3,940
（1,746）
1,745
FY3/2016 Q1
3,569
（1,590）
1,664
371
（156）
81
（YoY）
 Others
• It has secured a stable income in the Bidding system.
• CSO business（APO PLUS STATION Co., Ltd. ） : the
highest past profit
42
FY 3/2017 Q1
BS
（Millions of yen）
2016/3
2017/3 1Q
Cash and deposits
16,523
14,637
■ Total assets -3,914 million yen
Notes and accounts receivable trade
15,242
12,352
 Current assets -3,604 million yen
4,254
5,409
Total current assets
37,824
34,219
Goodwill
17,469
17,682
Total noncurrent assets
31,996
31,689
69,847
65,933
Inventory
Total assets
Cash and deposits -1,886 million yen
 Non current assets -307 million yen
Goodwill +213 million yen
■Total liabilities -3,970 million yen
Loans payable
 Long-term debt -1,176 million yen
4,696
4,622
29,344
26,718
7,520
6,343
19,481
18,136
48,825
44,854
Capital stock
2,828
2,828
Capital surplus
9,354
9,366
■Net asset +55 million yen
Retained earnings
9,680
9,965
 Net unrealized gains on securities -268 million yen
Treasury stock
-1,469
-1,441
Total shareholder’s equity
20,394
20,719
21,022
21,078
69,847
65,933
Total current liabilities
Long-term loans payable
Total noncurrent liabilities
Total liabilities
Total net assets
Total liabilities and net assets
Copyright © Qol Co., Ltd. All rights reserved.
 Interest-bearing liabilities -1,247 million yen
（23,551 million yen → 22,303 million yen）
Net D/E ratio：0. 37 times（FY32016：0.34 times）
（Interest-bearing debt – Cash and deposits）/ Shareholders’
equity
 Retained earnings +285 million yen
■Shareholders’ equity 20,819 million yen
 Equity ratio：31.6%（FY 3/2016 ：29.7%）
43
FY 3/2017
Generic Drug use
（%）
80.0
70.0
66.4
66.9
67.4
61.1
61.7
60.0
61.0
61.0
61.7
62.1
62.4
63.0
63.4
63.9
64.5
64.4
50.0
45.6
43.0
40.0
42.7
42.7
42.4
39.6
30.0
FY 3/2016 Generic drug use
FY 3/2017 Generic drug use
Stores receving 22 additional points（Over 75% generic drug use）
Stores receving 18 additional points（Over 65% generic drug use）
Stores receiving 0 additional points（stores without additional points）
20.0
18.0
10.0
14.3
11.7
（1 points = 10 yen）
0.0
April
May
June
Copyright © Qol Co., Ltd. All rights reserved.
July
August
September
October
November
December
January
February
March
44
FY 3/2017 Segment・・・Quarterly trends
（Millions of yen）
Pharmacy business Net sales
（Millions of yen）
140,000
8,000
120,000
7,000
100,000
6,000
30,829
26,335
Q4
80,000
60,000
26,803
40,000
25,425
20,000
24,679
30,297
Q3
27,538
26,644
4,000
Q2
Q1
2,000
1,000
27,342
0
FY 3/2016
2,111
5,000
3,000
0
FY 3/2015
Pharmacy business Operating income
FY 3/2017
Q4
1,243
1,519
1,472
Q1
745
1,227
770
FY 3/2015
FY 3/2016
FY 3/2017
BPO business Operating income
（Millions of yen）
12,000
Q2
909
BPO business Net sales
（Millions of yen）
Q3
1,872
1,200
10,000
1,000
2,827
221
2,652
8,000
Q4
2,775
6,000
2,390
4,000
2,914
2,000
Q3
Q2
2,333
2,274
2,767
FY 3/2015
FY 3/2016
FY 3/2017
Q3 （Oct.-Dec.）
Copyright © Qol Co., Ltd. All rights reserved.
115
Q4
255
Q3
195
0
Q2
234
400
200
0
Q2 （Jul.-Sep.）
600
Q1
2,603
 Q1 （Apr.-Jun.）
800
336
459
Q1
290
76
FY 3/2015
FY 3/2016
FY 3/2017
Q4 （Jan.-Mar.）
45
FY 3/2017 Q1 Segment
（Millions of yen）
Pharmacy business
FY 3/2016 Q1
FY 3/2017 Q1
Increase/Decrease
YoY
26,644
27,342
698
2.6%
Prescription drug sales
18,415
19,085
670
3.6%
Technical fee
5,551
5,688
137
2.5%
Others sales
2,678
2,569
-109
-4.1%
24,021
24,924
903
3.8%
90.2%
91.2%
1.0%
-
2,622
2,417
-205
-7.8%
9.8%
8.8%
-1.0%
1,227
770
-456
-37.2%
4.6%
2.8%
-1.8%
-
BPO business
2,274
2,767
492
21.7%
Cost
1,390
1,686
296
21.3%
61.1%
61.0%
-0.1%
-
883
1,080
196
22.2%
38.9%
39.0%
0.1%
-
290
459
169
58.4%
12.8%
16.6%
3.8%
-
Cost
% of sales
Gross profit
% of sales
Operating income
% of sales
% of sales
Gross profit
% of sales
Operating income
% of sales
Copyright © Qol Co., Ltd. All rights reserved.
• Increased revenue factor ：
existing stores +74 million yen （+0.8%）
（existing stores FY3/2014：+15.3% FY3/2015：+13.0%
FY3/2016：+19.0%）
M&A +988 million yen（+6.8%）
• Decreased revenue factor ：
Dispensing fee revision, NHI drug price revision
and increased personnel expenses
• Consent form of Primary care pharmacist：
Hundreds of agreement one of the pharmacists
• Increased revenue factor :
CSO business performance has been relatively
satisfactory.
• Increased profit factor ：
CSO business（staffing service ; CMRs,
Pharmacists）has maintained a high occupancy
rate.
46
FY 3/2017 Q1
（Millions of yen）
30,000
Breakdown of sales
Sales from pharmacy business
（Number of prescriptions received × Average price of prescriptions）
+3.4%
24,774
25,000
+6.8%
20,000
（1,000 prescriptions）
Number of prescriptions received
3,000
+6.5%
2,583
2,500
+10.0%
23,967
2,000
1,688
15,498
15,000
FY 3/2016 Q1
+0.8%
14,510
10,000
1,500
+3.1%
1,000
882
FY 3/2017 Q1
9,185
9,111
5,000
345
35 12
0
M&A
-234
-2,582
Existing stores
New stores
-275
M&A
Total
Increase/Decrease
-289
Total
9,180
10,639
9,788
8,000
Total
Average price of a prescriptions
10,404
10,000
FY 3/2017 Q1
-64.5%
90
Existing stores New stores
12,000
FY 3/2016 Q1
1,534
856
500
-73.8%
0
（Yen）
2,426
7,206
9,454
807
9,589
9,877
M&A
FY 3/2016 Q1
6,000
FY 3/2017 Q1
988
Existing stores
74
4,000
-255
New stores
2,000
-400
0
Existing stores New stores
M&A
Copyright © Qol Co., Ltd. All rights reserved.
Total
-200
0
200
400
600
800
1000
1200
（Millions of yen）
47
CSO business
APO PLUS STATION
（Millions of yen）
16,000
（Millions of yen・CMRs）
4,000
14,610
Net sales（left）
Operating income（right）
14,000
3,500
Contract MRs（right）
12,206
12,000
3,000
2,700
9,601
10,000
8,346
8,000
2,500
2,123
7,961
2,000
6,623
The highest past profits
6,000
1,500
1,300
1,116
4,000
700
788
2,000
442
435
（YoY +16.5%）
502
1,000
800
600
2,415
1,981
324
198
511
500
（YoY +57.7%）
0
0
FY 3/2014
FY 3/2015
Copyright © Qol Co., Ltd. All rights reserved.
FY 3/2016
FY 3/2017（E） FY3/2018（E）
FY3/2019（E）
FY 3/2016 Q1
FY 3/2017 Q1
48
FY 3/2017 Outlook
（Millions of yen）
Net sales
FY 3/2014
FY 3/2015
FY 3/2016
Increase/Decrease
FY 3/2017（E）
YoY
100,966
114,363
124,957
138,000
13,042
10.4%
2,105
4,243
6,709
6,800
90
1.3%
2.1
3.7
5.4
4.9
-0.5
-
2,208
4,262
6,655
6,800
144
2.2%
777
2,155
3,641
3,700
58
1.6%
EPS（Yen）
25.11
63.33
105.81
107.31
1.5
1.4%
BPS（Yen）
521.60
557.42
604.49
-
-
-
Dividend（Yen）
18.00
20.00
24.00
24.00
-
-
Payout ratio（%）
71.7
31.6
22.7
22.4
-0.3
-
21,712
36,275
60,614
-
-
-
ROE（%）
5.2
11.9
18.2
-
-
-
ROA（%）
4.7
7.5
10.3
-
-
-
ROIC（%）
3.9
7.2
10.2
-
-
-
Number of stores
520
538
563
709
146
-
（37）
（37）
（32）
（40）
（8）
-
Operating income
% of sales
Ordinary income
Net income
Market cap
(LAWSON)
Copyright © Qol Co., Ltd. All rights reserved.
49
② FY 3/2017（E）・・・segment
（Millions of yen）
FY 3/2015
FY 3/2016
FY 3/2017（E）
Increase/ Decrease
YoY
Net sales
114,363
124,957
138,000
13,042
10.4%
（Pharmacy business）
103,267
115,338
127,100
11,762
10.2%
11,369
9,856
11,500
1,644
16.7%
-272
-237
-600
-
-
SG&A
8,773
9,051
10,800
1,749
19.3%
（% of Sales）
7.7%
7.2%
7.8%
0.6%
-
Operating income
4,243
6,709
6,800
90
1.3%
（Pharmacy business）
4,416
6,678
6,840
162
2.4%
（BPO business）
722
1,000
1,300
300
30.0%
（Adjustments）
-894
-969
-1,340
-
-
Total capital expenditures
1,752
1,927
3,301
1,374
71.3%
Depreciation and
amortization
1,611
1,607
1,763
155
9.7%
Amortization of goodwill
1,497
1,569
2,265
695
44.3%
（BPO business）
（Adjustments）
Copyright © Qol Co., Ltd. All rights reserved.
50
FY 3/2017 Technical fee （image）
• It estimated the current fiscal year, to increase
the technical fee in the second half.
•
Primary care pharmacists : Increase
•
Standard dispensing fee : Increase
•
Premiums for generic use systems : Increase
initial plan
Q1 Revised plan
•
Unachieved （technical fee）
Apr.
Copyright © Qol Co., Ltd. All rights reserved.
Sep.
These technical fee, leading to
revenue next fiscal year.
Mar.
51
Impact of goodwill
（Millions oy yen）
10,000
□3,500
□3,277
□5,740
□8,278
□9,065
9,000
Goodwill
8,000
2,265
OP
1,569
7,000
6,000
5,000
1,497
4,000
3,000
688
6,709
6,800
FY 3/2016
FY 3/2017（E）
1,172
4,243
2,000
2,812
2,105
1,000
0
FY 3/2013
Copyright © Qol Co., Ltd. All rights reserved.
FY 3/2014
FY 3/2015
52
Agenda
 Introduction
 Market
 Qol’s strategy
 FY 3/2016
Consolidated Financial Results
 FY 3/2017 Q1 Consolidated Financial Results
 QOL Pharmacy（Photo）
Copyright © Qol Co., Ltd. All rights reserved.
53
QOL Pharmacy Takanawa Store（one of the largest in Tokyo）
The pharmacy introduced the first
medication counters by specialties
The pharmacy induces “the ripple effect” to the
closest LAWSON＋QOL pharmacy as
prescriptions flow out
Copyright © Qol Co., Ltd. All rights reserved.
54
LAWSON＋QOL Pharmacy（franchise owner）
Copyright © Qol Co., Ltd. All rights reserved.
55
LAWSON・・・Healthcare CVS Sales:700,000~800,000 yen/day
Additional function: Drug store
TV Phone
24H
Pharmacist
will support
every day.
Copyright © Qol Co., Ltd. All rights reserved.
56
Station QOL Pharmacy（JR Osaka Station）
Copyright © Qol Co., Ltd. All rights reserved.
57
Station QOL Pharmacy（inside）
Copyright © Qol Co., Ltd. All rights reserved.
58
Health support pharmacy
 QOL support QOL Pharmacy
keio hachioji store
約50坪
Copyright © Qol Co., Ltd. All rights reserved.
59
Health support pharmacy （inside）
Consultation corner
Automatic dispensing machine
• Seminar Room：capacity of 15 people
Copyright © Qol Co., Ltd. All rights reserved.
60
Medical examination
 Quick check
•
Blood pressure gauge
 Health fair （7/22/2016）
•
Blood test
 Participants breakdown
•
The number of bacteria in the Oral cavity
•
Patient 56.2%
•
Bone densitometry
•
User 43.8%
•
Activity meter
Copyright © Qol Co., Ltd. All rights reserved.
61