SBC Medical Group Holdings (SBC) Sidoti's Year End Virtual Investor Conference summary

Business overview and strategy

• Operates a global network of nearly 260 franchise clinics, primarily in Japan, focusing on aesthetic medicine and expanding into orthopedics, ophthalmology, and infertility treatment.

• Diversification of services aims to enhance customer retention and strengthen market position.

• Franchise clinics serve approximately 6.5 million customers annually, with a recent recovery in average revenue per customer visit due to pricing and promotional strategies.

• International expansion is underway, with a consulting partnership in Thailand and ongoing exploration in the U.S. and other Asian markets.

• Plans to acquire a majority stake in WAKU to boost R&D and expand offerings in regenerative medicine and skincare.

Financial performance and capital policy

• Sales and income rebounded in Q3 2025 after restructuring and franchise fee revisions, aided by increased point-related revenue and lower listing costs.

• Maintains a robust financial base with $180 million in cash and minimal debt, prioritizing growth investments over share buybacks.

• Liquidity improvements and potential new share issuances are planned to attract a broader investor base.

• Expects 10%-15% growth in clinic numbers and similar financial performance in 2026, barring special factors.

Growth drivers and market positioning

• Key growth segments include aesthetic dermatology, domestic medical services (e.g., orthopedics), and international business.

• Holds a 25% market share in Japan’s aesthetic medical market, with a 72% repeat visit rate and strong brand trust.

• Differentiation is driven by high customer satisfaction, quality employee training, and a focus on long-term customer relationships.