1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
MRM
Event Date
2020-12-30
IPO Date (Actual)
2020-12-29
Sector
Consumer
Subsector
Diversified Consumer Services
Offer Range
$15.00-$15.00
Shares Offered
800K
4.74M
$72.3M
16.9%
Implied Upside vs Midpoint
Description
Medirom Healthcare Technologies Inc., which we refer to in this prospectus as Medirom, is one of the leading holistic health services providers in Japan. Medirom is a franchiser and operator of healthcare salons across Japan and is a preferred platform partner for large consumer brands, healthcare service providers, and government entities to affect positive health outcomes. Through our well-known retail salon brands, including primarily Re.Ra.Ku®, nascent tech platforms, and targeted health consulting and marketing, we have formed a “healthtech” segment. The healthtech segment’s goal is to improve health outcomes and the satisfaction of our customers, as well as offer corporations data-rich, targeted advertising and promotional opportunities. We operate two synergistic lines of businesses: (1) Relaxation Salon Segment (retail); and (2) Digital Preventative Healthcare Segment (healthtech). By combining brand strength and core retail competencies, including a broad physical footprint in population dense areas across the country, with proprietary technologies and partnerships, our business provides unique, value-added healthcare services to our customers with scale, customization, and cross-network effects that we believe few other companies in the industry can emulate. Our core business is the operation and franchising of relaxation salons in Japan. Our salon locations cover major cities throughout Japan, with strong market presence in the Tokyo metropolitan area, which includes Tokyo, Yokohama, and Saitama. Our goal is to improve our customers’ quality of life by providing alternative, non-invasive wellness care. We use therapeutic techniques encompassing finger-pressure style bodywork therapy, stretch therapy, posture and joint alignment, as well as physical therapy elements. Our salons are designed to appeal to individuals seeking to improve their mental and/or physical well-being. Our customers vary from individuals seeking stress and pain relief to other individuals who are just looking to improve their overall mental and physical health. We offer a variety of individual services at our salons, including anti-fatigue therapy, athletic support therapy, slim-down therapy and reflexology. Each therapy is unique and designed to target specific areas of the body. As of June 30, 2020, the Relaxation Salon Segment has a total of 289 salons for relaxation across Japan (consisting of 138 directly-operated salons and 151 franchised salons), covering major cities, including the Tokyo metropolitan area, which is the largest population region in Japan. Since we introduced our customer management system in 2010, we have served more than 1.57 million customers at our relaxation salons, and in 2019 we served an average 59,000 customers per month. Our customer management system is a cloud-based customer relationship management system which we use to record all customer data and which facilitates reservations, point-of-sale and business intelligence functions. Our salons operate under several brands. Our core brand is Re.Ra.Ku®. There are 177 Re.Ra.Ku® salons across Japan (consisting of 51 directly-operated salons and 126 franchised salons). Our wholly-owned subsidiaries operate under the following names: JOYHANDS WELLNESS Inc. with 62 directly-operated salons, Bell Epoc Wellness Inc. with 45 salons, of which 20 are directly-operated, and Decollte Wellness Corporation with 5 directly-operated salons. Our salons are generally located in metros/subways, shopping malls, plazas and high-traffic streets. On average, our salons measure approximately 670 square feet and contain a reception area and treatment space. A typical salon is staffed by six relaxation therapists. The Relaxation Salon Segment is our core business and accounted for ¥3,865 million (US$35.9 million), or 98.9%, of our total revenue for the year ended December 31, 2019, and ¥1,345 million (US$12.5 million), or 99.1% of our total revenue for the six months ended June 30, 2020. --- The Digital Preventative Healthcare Segment is a growing business line and accounted for less than 2% of our total revenue for the year ended December 31, 2019 and the six months ended June 30, 2020. The Digital Preventative Healthcare Segment consists of the following operations: Sampling business (which includes brand promotion and consumer analysis for third party brands of corporate clients); government-sponsored Specific Health Guidance program, utilizing our internally-developed on-demand health monitoring smartphone application, Lav®; our MOTHER Tracker® for fitness applications; and preventative healthcare services utilizing our digital application and devices. --- Our Company was originally incorporated in Japan on July 13, 2000 under the name “Kabushiki Kaisha Young Leaves.” In January 2017, we changed our name to “MEDIROM Inc.” In April 2018, we established three wholly-owned subsidiaries, Bell Epoc Wellness Inc., JOYHANDS WELLNESS Inc., and Medirom Human Resources Inc. In October 2018, we acquired our fourth wholly-owned subsidiary, Decollte Wellness Corporation. In March 2020, our Company’s English name was changed to “MEDIROM Healthcare Technologies Inc.” Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168. Our principal executive offices are located in 2-3-1 Daiba, Minato-ku, Tokyo 135-0091, Japan, and our main telephone number is +81(0)3-6721-7364. Our website is medirom.co.jp/en/.
Medirom Healthcare Technologies Inc. annual income statement and balance sheet, FY 2021 to FY 2024, as reported in SEC filings (JPY).
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenue | JPY 5.4B | JPY 7.0B | JPY 6.8B | JPY 8.3B |
| Gross profit | — | JPY 1.9B | JPY 1.6B | JPY 2.2B |
| Operating income | (JPY 471M) | JPY 97.0M | (JPY 392M) | (JPY 18.1M) |
| Net income | (JPY 991M) | JPY 149M | JPY 115M | JPY 149M |
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Total assets | JPY 5.8B | JPY 6.7B | JPY 6.8B | JPY 8.1B |
| Total liabilities | JPY 6.0B | — | JPY 6.6B | JPY 6.9B |
| Total equity | (JPY 208M) | (JPY 59.4M) | JPY 216M | JPY 988M |
| Cash & equivalents | JPY 371M | — | JPY 106M | JPY 329M |