SBC Medical Group Holdings Incorporated Common Stock Lytham Partners Fall 2026 Investor Conference

Good day, everyone, and thank you for joining us today for the Litham Partners Fall 2026 Investor Conference. My name is Joe Dormay, Managing Partner at Litham Partners. I would like to welcome SBC Medical Group, which trades on the NASDAQ under the ticker SBC. Today I will be moderating a fireside chat with Stephen Rogers, Global Head of Planning and Strategy, and Hikaru Fukui, Head of Investor Relations. Let's get started. Welcome, Stephen and Hikaru.

Great. Thanks for having us, Joe.

All right. To begin, please provide an overview of SBC Medical and what makes the company unique.

Yeah, thank you very much. We are a medical service organization managing the estate medical group, largest estate medical group in Japan. Over we opened the first clinic in 2000, and over 26 years we are a statutory expanding our network. And now our network is more than 280, and serving the 6.9 million patients on an annual basis. So one of our strengths points is a high repeat rate. So once the customer visits our clinic, the many customers visit our clinic continuously. So this is this supports our steady growth. And also I think that our platform is a very efficient. And we cover the largest network with a very limited staff and assets. So this is also a strengths point. And recently we are utilizing AI to strengthen our platform. This is also very interesting point.

That's helpful. Thank you. What are the primary growth drivers you're focused on, and how do they translate into near-term execution priorities?

Yeah, thank you very much. We consider at this moment the our core businesses is Japanese estate medical businesses. Including the estate dermatology and the estate surgery. And I think that this Japanese estate medical estate dermatology area continue to be the our core businesses. But at the same time we consider the longevity is a very good opportunity for us. So in order to respond this market now we are trying to expand our nonesthetic area as well. Including dentistry, orthopedics, ICA treatment, or fatality treatment or something like that. And also we consider that we can leverage our capability internationally including United States and Southeast Asia. I hope these businesses could be the our driver going forward.

That's a good clarification for investors. You have talked about AI. How does AI actually lead to revenue and EPS growth for the company?

Yeah, thank you very much. For us, AI is not only about cutting cost. It's also about growth. There are three area where AI can help us. First, it can improve our customer experience. We already have an AI chatbot and we are developing AI tool for a call center customer support and a more personalized services. This can help us serve more customers and increase revenue. Second, AI can help us grow our clinic network. For example, we can use data and AI to choose a new clinic locations and share our know-how across the group. This helps us open open and operate clinics more efficiently. Third, AI helps us grow without adding the same level of cost. As our support to clinic became more variable, we can also increase our service fee. We have already announced about 15 million of annual service fee increase. Importantly, these services require very little additional cost. So larger part of that additional revenue can flow directly to profit and EPS. That is why we see AI is a as a both and growth driver and margin driver.

Good to hear. How large can nonesthetic healthcare become?

Yeah. We see a very large opportunity today about a 40 sorry 84% of our transaction value comes from estate and only about 16% comes from nonesthetic healthcare. More importantly, we do not have to build this business from zero. Over 26 years we have built a strong operational model in estate including marketing, customer acquisition, clinic operations, data, and AI. We can use the same model in other area of healthcare. Our first step is to improve the performance of existing clinics. We want to increase the number of patients and improve our revenue per clinic. At the same time, we will expand our network through M&A we are not setting a specific target of the mix today. Aesthetic will remain very important but over time we expect nonesthetic healthcare to become a much larger part of SBC. And the important second growth engine.

That's worth highlighting for investors. How do you view your overseas business today, especially the US and Southeast Asia?

Hey, thanks Joe. Yeah, I SBC is definitely more than a Japanese company. We're we're very global. Right now we've got a partnership in the US as part of our US growth expansion with a company called Orange Twist which which is a luxury med spa clinic group with 24 locations across six states here in the US. We see them as our primary growth engine into the aesthetic space in in America. And when we partnered with them they had 18 clinics. Now they've grown to 24. We're excited about continuing to fuel that growth. So hopefully you'll be seeing Orange Twist around your neighborhood soon. We've been helping them kind of refine and upgrade their menu treatments and customer experience. We've got Clint Carnell the CEO who used to be at Hydra Facial leading. So a lot of exciting things on that space. So we'll continue to support that. We're also looking at continuing to leverage our SBC brands that we have in Japan. We have 20 different brands that target specific demographic groups. Sometimes that message gets lost but like we have clinics specifically for men called the Gorilla Clinic clinics specifically for females. You know our ladies clinic all kinds of clinics that we have that really target unique different segments of the market.

And we feel like some of these could resonate really well in the US. And so we've been working with Orange Twist to figure out which one of those could really complement what they're doing and then also we could build together here. So you'll probably see some cool potential pilot clinics over the next year as well in the US. And then we're also looking at you mentioned Southeast Asia. We have 21 clinics in Singapore. Clinics in Vietnam and then also in Thailand. The Japan brand resonates really well over in that region just because of the emphasis on safety, quality, compliance. And so people inherently trust you know Japanese companies more. So we're continuing to look at acquisitions and and growth in that region as well. So aesthetics is continuing to grow there. So we feel excited about that. But I'll say US is definitely our primary focus.

That's great. And very helpful. What does longevity mean for SBC and why do you believe SBC can win in this market?