SBC Medical Group Holdings (SBC) Emerging Growth Conference 93 summary

Business model and operations

• Operates as a medical services organization, providing centralized support to clinics across multiple healthcare fields, using an asset-light franchise model due to Japanese regulations.

• Portfolio includes over 20 brands, covering aesthetic, dermatology, orthopedics, fertility, gynecology, dentistry, alopecia, and ophthalmology, serving 6.7 million customers annually through 284 clinics.

• Multi-brand strategy enables targeting diverse patient needs and maintaining long-term relationships, with 72% repeat rate and strong customer loyalty.

• Franchise model features fixed and variable fees, equipment leasing, and procurement revenue, with clinics reaching profitability in 5-6 months.

• No franchise agreement has ever been terminated in 26 years, highlighting model durability.

Financial performance and resilience

• Q1 2026 revenue was $43 million, a 9% YoY decline due to fee structure revisions, but underlying revenue grew 11% YoY when adjusted for these changes.

• Underlying EBITDA increased 17% YoY after adjusting for fee structure revisions.

• Average revenue per visit rebounded to JPY 316 in Q4 2025, up 11% YoY, following strategic pricing and multi-branding adjustments.

• Business demonstrated resilience during COVID-19 and benefited from tighter Japanese regulations, strengthening its market position.

• EBITDA margin exceeds 40%, with net income up 9% YoY to JPY 51 million last year.

Growth strategy and initiatives

• Four key initiatives: launch of SBC Wellness 2.0 focused on longevity, expansion into non-aesthetic medical fields, disciplined global expansion, and AI-driven operational transformation.

• SBC Wellness 2.0 targets the $34 billion Japanese longevity market, leveraging corporate B2B channels for scalable growth.

• Applying proven operational playbook to new fields like AGA, dentistry, orthopedics, fertility, and ophthalmology.

• Global expansion is selective, with Japan as the core; U.S. growth pursued via partnership with OrangeTwist and further opportunities in Southeast Asia.

• Goal to increase global business from 1% to 25% of revenue within five years.