Slide 1: FY2024 1H Financial Results
FY2024 1H (Apr. - Sept. 2024) Financial Results Duskin Co., Ltd. November 22, 2024
Slide 2: Contents
Contents Page Highlights of Consolidated Financial Results 2 Year-on-Year Comparison 3 Results Versus Forecast 4 Consolidated Balance Sheet Summary 5 Direct Selling Group: Business Performance Summary 6 Operating Profit 7 Food Group: Business Performance Summary 8 Operating Profit 9 Other Businesses
Slide 3: Highlights of Consolidated Financial Results
Highlights of Consolidated Financial Results (YoY comparison / vs. forecast) YoY comparison: All business segments including the Direct Selling Group, Food Group and Other Businesses posted higher sales, resulting in a 6.9% year-on-year increase in consolidated net sales. Operating profit also incre
Slide 4: Year-on-Year Comparison
Year-on-Year Comparison Millions of yen 1H FY2024 [2] 1H FY2023 [1] YoY [2] - [1] Profit margin Profit margin Percentage change Net sales 53,434 – 53,743 – +309 +0.6% Direct Selling Group Operating profit 2,620 4.9% 3,073 5.7% +453 +17.3% Net sales 25,944 – 31,168 – +5,223 +20.1% Food Group Operatin
Slide 5: Results Versus Forecast
Results Versus Forecast Millions of yen Forecast by segment announced 1H FY2024 [2] on May 15, 2024 [1] Vs. forecast [2] - [1] Profit margin Profit margin Percentage change Net sales 54,100 – 53,743 – -356 -0.7% Direct Selling Group Operating profit 5,500 10.2% 3,073 5.7% -2,426 -44.1% Net sales 29,
Slide 6: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary Millions of yen As of Mar. 31, 2024 As of June 30, 2024 YoY change Cash and deposits 14,434 14,695 +261 Current assets Trade receivables 11,158 10,986 -171 Securities decreased, mainly due to a Inventories 11,607 11,838 +230 decrease in the amount of money held in
Slide 7: Direct Selling Group Business Performance Summary
Direct Selling Group Business Performance Summary (YoY comparison / vs. forecast) Millions of yen Forecast announced 1H FY2024 [3] 1H FY2023 [1] on May 15, 2024 [2] YoY [3] - [1] Vs. forecast [3] - [2] Profit Profit Profit Percentage Percentage margin margin margin change change Net sales 53,434 – 5
Slide 8: Direct Selling Group Operating Profit
Direct Selling Group Operating Profit (YoY comparison / vs. forecast) YoY comparison Operating profit of the Direct Selling Group was significantly affected by higher raw material and logistics costs, but the cost-to-sales ratio improved mainly due to lower costs resulting from the completion of RFI
Slide 9: Food Group Business Performance Summary
Food Group Business Performance Summary (YoY comparison / vs. forecast) Millions of yen Forecast announced on 1H FY2024 [3] 1H FY2023 [1] May 15, 2024 [2] YoY [3] - [1] Vs. forecast [3] - [2] Profit Profit Profit Percentage Percentage margin margin margin change change Net sales 25,944 – 29,200 – 31
Slide 10: Food Group Operating Profit
Food Group Operating Profit (YoY comparison / vs. forecast) YoY comparison Operating profit increased due to an increase in gross profit resulting from higher sales. Profits from Kenko Saien Co., Ltd. also contributed to the improvement in the cost ratio. Fees for electronic payments increased due t
Slide 11: Other Businesses Business Performance Summary
Other Businesses Business Performance Summary (YoY comparison / vs. forecast) Millions of yen Forecast announced on 1H FY2024 [3] 1H FY2023 [1] May 15, 2024 [2] YoY [3] - [1] Vs. forecast [3] - [2] Profit Profit Profit Percentage Percentage margin margin margin change change Net sales 7,799 – 8,000
Slide 12: FY2024 Consolidated Earnings Forecast
FY2024 Consolidated Earnings Forecast (revised/announced on November 5. 2024) Millions of yen Pre-revision [2] Post-revision [3] (announced on Nov. 5, 2024) FY2023 [1] (announced on May 15, 2024) YoY [3] - [1] Revised amount [3] - [2] Profit Profit Profit Percentage Revision rate margin margin margi
Slide 13: FY2024 Earnings Forecast by Segment
FY2024 Earnings Forecast by Segment Millions of yen 2H FY2024 FY2024 (full year) Revised forecast announced on Nov. 5, 2024 Revised forecast announced on Nov. 5, 2024 [5] Forecast announced [2] Forecast announced on FY2023 results [3] on May 15, 2024 [1] May 15, 2024 [4] Revised amount [2] - [1] YoY
Slide 14: Returns to Shareholders
Returns to Shareholders Shareholder Return Policy during the Medium-Term Management Policy 2022 Period In addition to the payment of dividends, we will actively repurchase company shares in a timely and flexible manner. Our policy is to provide a profit return targeting a cumulative three-year tot
Slide 15: Medium-Term Management Policy 2022 Initiatives
Medium-Term Management Policy 2022 Initiatives
Slide 16: Moving Toward ONE DUSKIN's Third and Final Phase
Moving Toward ONE DUSKIN’s Third and Final Phase Our three-year business plan, Medium-Term Management Policy 2022, The most attentive service provider in the world will span the three years from FY2022 to FY2024. Medium-Term Medium-Term Medium-Term 中期経営方針 Management Policy 中期経営方針 Management Policy 中
Slide 17: Three Strategic Themes
Medium-Term Management Policy 2022 Three Strategic Themes Theme 1 Reforming our business portfolios Reforming our business portfolios to address the changing business climate and solve social issues Reforming and expanding existing businesses Investment in new growth opportunities Expanding our area
Slide 18: Initiatives: Direct Selling Group
Medium-Term Management Policy 2022 Initiatives: Direct Selling Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses Work-Life Management The Direct Selling Group is focusing on three domains: hygiene and cleanliness, work-life management and senior support. The
Slide 19: Initiatives: Direct Selling Group
Medium-Term Management Policy 2022 Initiatives: Direct Selling Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses We will create new customer touchpoints through information and distribution reforms. We will also work to improve customer retention. Organizati
Slide 20: Initiatives: Food Group
Medium-Term Management Policy 2022 Initiatives: Food Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses With the goal of creating shops where anyone and everyone can enjoy happy moments at any time, we seek to deliver tastiness and enjoyment to customers. New
Slide 21: Initiatives: Food Group
Medium-Term Management Policy 2022 Initiatives: Food Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses We will expand sales opportunities through information and distribution reforms. Product/Service Development Strategies MISDO Meets Regular/Seasonal Produc
Slide 22: Initiatives: Overseas Strategy
Medium-Term Management Policy 2022 Initiatives Theme 1 Reforming our business portfolios Investment in new growth opportunities Overseas Strategy Mister Donut Singapore opened 5 shops in the first half of the year (7 shops in total at the end of June) Note: It opened its 8th shop on November 5. Mist
Slide 23: Initiatives: Investment in New Growth Opportunities
Medium-Term Management Policy 2022 Initiatives Theme 1 Reforming our business portfolios Investment in new growth opportunities We will create social value by doing our part to solve the social issues that need to be addressed in the future. (Invest actively through M&A, venture investments, R&D inv
Slide 24: Initiatives: Establishing a Solid Foundation
Medium-Term Management Policy 2022 Initiatives Theme 2 Establishing a solid foundation Strengthening human and technology resources; reinforcing management systems for our organization and businesses Human Capital Management Implemented a talent management system. Implemented a personality test and
Slide 25: Initiatives: Coexistence with Local Communities
Medium-Term Management Policy 2022 Initiatives Theme 3 Coexistence with local communities ● Contributing to the creation of a sustainable society and strengthening our corporate governance geared to the needs of society For Environmental Conservation Promoted the reduction of food loss and waste and
Slide 26: Appendix
Appendix
Slide 27: Duskin Co., Ltd. (Parent Company Only) Financial Summary
Duskin Co., Ltd. (Parent Company Only) Financial Summary Millions of yen 1H FY2024 [2] 1H FY2023 [1] YoY change [2] – [1] Profit Profit Percentage margin margin change Net sales 69,960 – 73,951 – +3,991 +5.7% Operating profit 1,799 2.6% 2,769 3.7% +970 +53.9% Ordinary profit 5,097 7.3% 6,095 8.2% +9
Slide 28: Customer-Level Sales
Customer-Level Sales Millions of yen 1H FY2024 1H FY2023 YoY change Percentage change Direct Selling Group 133,869 134,148 +279 +0.2% Total Clean Service 85,003 83,495 -1,508 -1.8% Clean Service (residential customer) 39,727 38,662 -1,065 -2.7% Clean Service (commercial customer) 45,276 44,832 -443
Slide 29: Number of Sales Locations
Number of Sales Locations Number of locations As of Sept. 30, 2024 As of Sept. 30, 2023 Change Direct Selling Group 5,732 5,743 +11 Clean Service 1,825 1,810 -15 ServiceMaster 1,189 1,198 +9 Merry Maids 795 800 +5 Terminix 550 550 +0 Total Green 167 181 +14 Home Repair 106 104 -2 Rent-All 102 98 -4
Slide 30: Business Segments and Their Businesses
Business Segments and Their Businesses Direct Selling Group Direct Selling For residential customer market For commercial customer market Clean Service • Dust Control [Mops and mats] Clean Service • Dust Control [Mops and mats] • Air Control [Air purifiers] • Clean Service [Restroom products] (R
Slide 31: Dust Control Business Model
Dust Control Business Model Through our franchisees, we provide mops, mats and other cleaning and hygiene products for rent, for use both in the home and in business spaces. Duskin Production & Franchisees Customers logistics Delivery (Rental) Rental Products Collecting Returning used mops Sales loc
Slide 32: Care Service and Senior Care Business Models
Care Service and Senior Care Business Models Care Service Duskin Franchisees ServiceMaster Customers Trademark granting; (Number of locations) provision of know-how; provision of chemicals, 1,194 nationwide equipment and Merry Maids materials; assistance in recruiting human resources 798 nationwide
Slide 33: Mister Donut Business Models
Mister Donut Business Models To realize our goal of creating shops where every customer happens upon “something good” at any time, we make the Mister Donut experience fun and our products always delicious. Duskin Franchisees Customers Trademark granting; operational (Shops) guidance; provision of bu
Slide 34: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements These materials contain forward-looking statements concerning forecasts, goals, strategies and other matters of the Company and its consolidated subsidiaries. These forward-looking statements are based on information currently available to the Com