SBC Medical Group Holdings (SBC) Emerging Growth Conference 81 summary

Conference overview and business model

• Presented a comprehensive overview of the franchise-based aesthetic medical clinic network, with services spanning aesthetic medicine, orthopedic surgery, ophthalmology, and fertility treatment.

• Clinics operate under a multi-brand strategy to address diverse customer needs, with a strong focus on value and high repeat rates.

• Over 6 million customers visited clinics in FY2024, reflecting steady growth despite increased competition.

• Emphasis on platform business to support organizational growth and strategic pricing to boost customer volumes.

Financial performance and market environment

• Revenue reached $250 million, up 6% year-over-year, though impacted by foreign currency translation.

• ROE declined due to stock-based compensation, patent impairment, and increased capital reserves post-listing.

• Maintains a robust balance sheet with ample cash and limited borrowings, supporting future investments.

• Japanese aesthetic medical market is expanding but faces intensified competition, physician shortages, and regulatory scrutiny.

Strategic actions and pricing revisions

• Revised pricing strategy in March 2025 for dermatology to enhance transparency and accessibility, balancing price reductions with premium pricing for high-demand services.

• Franchise fee structure updated to reduce early-stage burdens and foster sustainable franchisee growth.

• Midterm strategy through 2027 targets global leadership in aesthetic medicine and a solid overseas foundation.