Medirom Healthcare Technologies Inc (MRM) 2024 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good morning and welcome to the Medirom year end 2024 financial results and corporate update conference call. (Operator Instructions) A webcast replay of the call will be available beginning at 11:30 Eastern time today through June 4, 2025.

女士們、先生們，感謝你們的支持。早安，歡迎參加 Medirom 2024 年年終財務表現及公司更新電話會議。（操作員指示）本次電話會議的網路直播重播將於今天東部時間 11:30 開始，持續至 2025 年 6 月 4 日。

For dialing numbers and access codes to this replay, please refer to the company's webcast announcement of May 19 or earnings announcement of May 20. I would now like to turn the call over to Scott Powell, President of Skyline Corporate Communications Group, which is Medirom's investor relations firm. Please go ahead.

有關此重播的撥號號碼和存取代碼，請參閱本公司 5 月 19 日的網路廣播公告或 5 月 20 日的收益公告。現在我想將電話轉給 Skyline Corporate Communications Group 總裁 Scott Powell，該公司是 Medirom 的投資者關係公司。請繼續。

Good morning and thank you for participating in today's conference call. Joining me from Medirom's leadership team are Kouji Eguchi, Founder, President and CEO; and Fumitoshi Fujiwara, Director and Chief Financial Officer. During this call, Medirom management will be making forward-looking statements, including statements that address Medirom's expectations for future performance or operational results.

早安，感謝您參加今天的電話會議。與我一起加入 Medirom 領導團隊的還有創辦人、總裁兼執行長 Kouji Eguchi 和董事兼財務長 Fumitoshi Fujiwara。在本次電話會議中，Medirom 管理層將發表前瞻性聲明，包括有關 Medirom 對未來業績或營運結果的預期的聲明。

Forward-looking statements involve risks and other factors that may cause actual results to differ materially from these statements. For more information about these risks, please refer to the risk factors described in Medirom's most recently filed periodic reports on Form 20 filed with the Securities and Exchange Commission on April 29, 2025.

前瞻性陳述涉及風險和其他因素，可能導致實際結果與這些陳述有重大差異。有關這些風險的更多信息，請參閱 Medirom 於 2025 年 4 月 29 日向美國證券交易委員會提交的 20 號表格最新定期報告中描述的風險因素。

And Medirom's press release that accompanies this call, particularly the cautionary statements in it. The content of this call contains time sensitive information that is accurate only as of today, May 21, 2025. Except as required by law, Medirom disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call.

Medirom 隨此電話會議發布了新聞稿，特別是其中的警告性聲明。本次通話內容包含時間敏感訊息，僅截至今天（2025 年 5 月 21 日）準確。除法律要求外，Medirom 不承擔公開更新或修改任何資訊以反映本次電話會議後發生的事件或情況的義務。

The discussion today may also include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings presentation available on Medirom's website in their investor relations section.

今天的討論可能還涉及某些非公認會計準則財務指標。Medirom 網站投資者關係部分提供的收益報告中提供了與最直接可比較的 GAAP 財務指標的對帳。

Non-GAAP financial measures should be considered in addition to not as a substitute for GAAP measures. It is now my pleasure to turn the call over to Fumitoshi Fujiwara, Director and CFO.

非 GAAP 財務指標應被視為 GAAP 指標的補充，但不能取代 GAAP 指標。現在我很高興將電話轉給董事兼財務長 Fumitoshi Fujiwara。

Thanks, docs, and good morning to everyone on the call. I'd like to start off by providing a brief overview of our business achievement in 2024, followed by a brief summary of our progress to date in 2025 and an overview of our growth strategy.

謝謝，醫生，大家早安。首先，我想簡要概述我們在 2024 年的業務成就，然後簡要總結我們在 2025 年迄今為止的進展，並概述我們的成長策略。

Please follow along with the earnings presentation available from Medirom's website and the investor relation section at ir.medirom.co.jp. A URL to the presentation is also shown in the company's website with the announcement on May 19 and its earnings announcement on May 20.

請關注Medirom網站及其投資者關係版塊ir.medirom.co.jp上的收益簡報。該公司網站上還提供了演示文稿的鏈接，其中包含5月19日的公告和5月20日的收益公告。

The company's financial reserve states in US dollars have been translated from Japanese Yen for convenience at the rate of JPY157.37 to $1 as described in earnings presentation. Please let me now direct your attention to the consolidated financial highlights on slide 3 and 4 of our earnings presentation.

為方便起見，該公司以美元表示的財務儲備已從日圓轉換為獲利報告中所述的 157.37 日圓兌 1 美元的匯率。現在請容許我提請您注意我們收益報告第 3 張和第 4 張投影片上的合併財務要點。

Total revenue by the company increased by 21.5% to JPY52.7 million due to the increased sales of salons under the sales and outsource business model and store operations outsourcing revenues subsequent to the sales of salons. Cost of revenue increased by 15.1%, due to the increased number of salons purchased back transactions in which we purchased salons from investors to whom we previously sold the salons.

由於銷售和外包業務模式下沙龍銷售額的增加，以及沙龍銷售後的門市營運外包收入，公司總收入成長了21.5%，達到5,270萬日圓。收入成本增加了 15.1%，這是由於沙龍回購交易的數量增加（在這些交易中，我們從之前將沙龍出售給的投資者手中購買了沙龍）。

However, the cost of revenue ratio to revenue was down from 77% in 2023 to 72.9% in 2024. SG&A increased by 14.3%, primarily due to increase in professional fees, runs for debt to accounts, amortization of the store operating rights, directors salaries, and recruiting expenses.

不過，收入成本與收入比率從 2023 年的 77% 下降到 2024 年的 72.9%。銷售、一般及行政費用增加了 14.3%，主要是由於專業費用、債務轉入、門市經營權攤銷、董事薪酬和招聘費用增加。

Impairment loss of JPY0.1 million was recorded in fiscal year 2034 due to the expected closure of the salons in 2025 compared with no such loss in 2023. Net income increased 20.1% to JPY0.9 million in 2024, primarily due to the gain from sales of the loans recorded under other income and the release of valuation allowanced tax assets.

由於預計沙龍將於 2025 年關閉，因此 2034 財年記錄了 10 萬日圓的減損損失，而 2023 年則沒有此類損失。2024 年淨收入增長 20.1% 至 90 萬日元，主要原因是記錄在其他收入下的貸款銷售收益以及釋放了估值準備金稅項資產。

Cash flow from operating activities was JPY8.5 million, mainly due to decrease in accrued expense caused by payments of taxes or Social Security expenses for the previous years and reclassification of PCs from sales of the loans to net cash provided by investment activities. Cash flow from investing activities was JPY2.3 million, mainly attributable to the proceeds correct from the sales of salons during 2024.

經營活動產生的現金流量為850萬日元，主要由於前幾年繳納稅款或社會安全費用導致的應計費用減少，以及將個人電腦從貸款銷售重新分類為投資活動提供的淨現金。投資活動產生的現金流為 230 萬日圓，主要歸因於 2024 年沙龍銷售所得的收益。

Castro financial activities was JPY7.6 million, primarily due to the proceeds from issuance of common stock in a public offering proceeds from issuance of preferred stock in major model love sees a financing round and the increase of both short term and long term loans from banks.

卡斯特羅的財務活動為 760 萬日元，主要由於公開發行普通股所得收益、主​​要融資輪中發行優先股所得收益以及銀行短期和長期貸款的增加。

Adjusted EBITDA and adjusted EBITDA margin, senior country improved to the positive JPY2.7 million and 5% respectively compared with JPY1.9 million and 4.5% respectively in the prior year. Please now look at the consolidated cash flow statement on stride 12 of our runnings presentation.

調整後的 EBITDA 和調整後的 EBITDA 利潤率，高級國家分別提高至正 ​​270 萬日圓和 5%，而上年分別為 190 萬日圓和 4.5%。現在請查看我們執行示範的第 12 步驟的合併現金流量表。

Net cash and cash equivalent increased by JPY1.4 million in fiscal 2024. This is the end of the financial result overview. We'll now move on to our corporate highlights. During the year ended in December 31, 2024, our average revenue per customer grew by 3.9% to the customer service was 945,395 in 2024.

2024財年淨現金及現金等價物增加了140萬日圓。財務績效概覽到此結束。現在我們來談談公司亮點。截至 2024 年 12 月 31 日止年度，我們的每位客戶平均收入成長 3.9%，2024 年客戶服務收入為 945,395 美元。

The total number of salon locations for which we saw operating rights was 60 in the year, and in December 31, 2024, as compared to 38 locations during the year and in December 31, 2023. In our digital preventive healthcare segment, we participated in the specific health guidance program promoted by the Ministry of Health, Labor, and welfare of Japan which utilize our upgraded LAB application supporting this problem.

截至 2024 年 12 月 31 日，我們看到擁有經營權的美容院總數為 60 家，而截至 2023 年 12 月 31 日，我們看到擁有經營權的美容院總數為 38 家。在我們的數位預防醫療保健領域，我們參與了日本厚生勞動省推廣的特定健康指導計劃，該計劃利用我們升級的 LAB 應用程式來支持這一問題。

We also developed and this really what we believe is currently the only self-charging whatever activity device, the mother bracelet. That's for in 2025, medium has continued the momentum with a service in 2024. This January, our subsidiary, Medirom Mother Lab began providing its remote health monitoring system named [Remily] as well as its mother bracelet to the electronic division of Toon Holdings Inc which drives on the Tokyo Stock Exchange.

我們也開發了我們認為目前唯一一款可自行充電的活動設備—母親手環。這是在 2025 年，Medium 將繼續保持這一勢頭，並在 2024 年提供服務。今年1月，本公司子公司Medirom Mother Lab開始向在東京證券交易所上市的Toon Holdings Inc.的電子部門提供遠端健康監測系統[Remily]及其母手環。

Also in January, we completed our offering of 2,860,000 ADS raising gross proceeds of approximately JPY5 million. In March, the Chief Business Officer of Medirom Mother Labs , Mr. Yasuhiro Hayami made an investment in Medirom Mother Labs Series, a financing at the primanic valuation of about JPY60 million.

此外，我們在一月份完成了 2,860,000 股 ADS 的發行，籌集資金總額約為 500 萬日圓。3月，Medirom Mother Labs 首席商務官早見康弘先生投資了Medirom Mother Labs Series，初步估值約6,000萬日圓。

Also in March, Medirom obtained an unsecured short-term bank loan around JPY2.4 million, which is being used in part for further development and marketing of the Mother bracelet. Looking forward to the rest of 2025, we plan to pursue several initiatives aimed at further growing and our revenue and profitability.

此外，今年 3 月，Medirom 獲得了約 240 萬日圓的無擔保短期銀行貸款，部分資金將用於 Mother 手環的進一步開發和行銷。展望 2025 年剩餘時間，我們計劃採取多項舉措，進一步提高收入和獲利能力。

First, we intend to increase our number of electricity owned and branched requisition salons, in particular, salons located at spa facilities, which requires substantially lower capital expenditure compared to standalone salons and salon located in commercial properties.

首先，我們打算增加自有和分支電力沙龍的數量，特別是位於水療設施內的沙龍，與獨立沙龍和位於商業地產內的沙龍相比，這些沙龍所需的資本支出要低得多。

[Ready 24], we are continuing our search to acquire our domestic salon brands that have at least 10 stores. Second, we plan to grow our digital preventive health segment and produce a higher margin for that medicine. Simultaneously, we intend to increase the number of our LAB application users accessing the specific health guidance program I referred to earlier.

[Ready 24]，我們正在繼續尋找收購擁有至少10家門市的國內沙龍品牌。其次，我們計劃擴大我們的數位預防保健部門，並為該藥物創造更高的利潤。同時，我們打算增加存取我之前提到的特定健康指導程式的 LAB 應用程式使用者數量。

And we expect to expand the billing user base for this app. Sir, we plan to accelerate the production of our Mother bracelets for large orders from corporate clients. Of course, although we have thus far focused our business activities within the Japanese market.

並且我們期望擴大該應用程式的計費用戶群。先生，我們計劃加快生產母手鐲以滿足企業客戶的大訂單。當然，儘管迄今為止我們的業務活動主要集中在日本市場。

We plan to consider global expansion opportunities, especially franchising or partnership options for our organizations salon business, as well as B2B2C distribution model for our Mother bracelet. Third, we plan to cut expenses at all the operated salons by reducing the number of higher earnings fixed salary service and increasing the number of lower earnings commission-based service.

我們計劃考慮全球擴張機會，特別是為我們組織的沙龍業務提供特許經營或合作選擇，以及為我們的母親手環提供 B2B2C 分銷模式。第三，我們計劃透過減少高收入固定薪資服務的數量並增加低收入佣金服務的數量來削減所有營運沙龍的開支。

We believe this restructuring will result in improving overall profitability of these salons. Six, we remain in negotiations to finance our plan acquisition of 70% of the equity of Japan Gene Medical Corporation, a prenatal testing company. Although in other countries including the US, prenatal genetic testing service have pro-life in Japan, such services has not been common.

我們相信此次重組將提高這些沙龍的整體獲利能力。六、我們仍在就收購產前檢測公司日本基因醫療株式會社70%股權的計畫進行融資談判。儘管在包括美國在內的其他國家，產前基因檢測服務已經在日本推廣，但此類服務仍不普遍。

We therefore believe this solution would be highly positive for Medirom. Lastly, going forward, we intend to expand customer benefits available through our various loyalty marketing programs. This strategy we believe can include such customers to get those a lot more frequently.

因此，我們相信該解決方案對 Medirom 來說非常有利。最後，展望未來，我們打算透過各種忠誠度行銷計畫擴大客戶福利。我們相信這項策略可以吸引這類客戶並讓他們更頻繁地獲得這些客戶。

This completes my former comments for this conference. I will not pass the call back to the operator, begin the question and answer session. Operator, please go ahead. Thank you.

我對本次會議的評論到此結束。我不會將電話轉回接線生，而是開始問答環節。接線員，請繼續。謝謝。

(Operator Instructions)

（操作員指示）

(spoken in foreign language)

（用外語說）

At this time, there appears to be no further questions. I will now pass the call back to Mr. Fujiwara for closing thoughts.

目前，似乎沒有其他問題。現在我將把電話轉回給藤原先生，請他發表最後的演講。

Okay, no questions.

好的，沒有問題。

(spoken in foreign language)

（用外語說）

This is a great opportunity for us to elaborate on a certain topics. So if you do have questions, to be in Japanese or English, please do not hesitate, but we will wait just a few minutes because this is such a rare opportunity.

這對我們來說是一個很好的機會來詳細闡述某些主題。因此，如果您有疑問，無論是用日語還是英語，請不要猶豫，我們只會等待幾分鐘，因為這是一個難得的機會。

(spoken in foreign language)

（用外語說）

Okay, guys. I want to thank all of you for participating on today's call and for your interest in Medirom. We look forward to sharing our progress with you in the future updates. Thanks and have a good day. Thank you.

好的，夥計們。我要感謝大家參加今天的電話會議以及對 Medirom 的關注。我們期待在未來的更新中與您分享我們的進展。謝謝，祝您有美好的一天。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。