Duskin Co., Ltd. · TSE:4665
Duskin — 1H FY2023 Earnings Presentation
31 slides from Duskin's earnings presentation, Nov 22, 2023
Slide 1: FY2023 1H Financial Results
FY2023 1H (Apr. - Sept. 2023) Financial Results Duskin Co., Ltd. November 22, 2023
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 (YoY comparison / vs. forecast)
Highlights of Consolidated Financial Results (YoY comparison / vs. forecast) YoY comparison: Net sales increased 4.8% year-on-year. Higher sales in the Food Group contributed to this result, despite lower sales in the Direct Selling Group and Other Businesses. Profit decreased mainly due to a signif
Slide 4: Year-on-Year Comparison
Year-on-Year Comparison Millions of yen 1H FY2023 [2] 1H FY2022 [1] YoY [2] - [1] Profit margin Profit margin Percentage change Net sales 54,188 – 53,434 – -754 -1.4% Direct Selling Group Operating profit 5,081 9.4% 2,620 4.9% -2,460 -48.4% Net sales 21,359 – 25,944 – +4,585 +21.5% Food Group Operat
Slide 5: Results Versus Forecast
Results Versus Forecast Millions of yen Forecast by segment announced 1H FY2023 [2] on May 15, 2023 [1] Vs. forecast [2] - [1] Profit margin Profit margin Percentage change Net sales 56,000 – 53,434 – -2,565 -4.6% Direct Selling Group Operating profit 2,900 5.2% 2,620 4.9% -279 -9.6% Net sales 22,80
Slide 6: Consolidated Balance Sheet Summary
Consolidated Balance Sheet Summary Millions of yen As of Mar. 31, 2023 As of Sept. 30, 2023 Change Cash and deposits 18,207 15,623 -2,584 Current assets Trade receivables 11,553 10,907 -645 Inventories 11,132 12,161 +1,028 A decrease was posted in securities, mainly Securities 19,864 18,097 -1,767 d
Slide 7: Direct Selling Group Business Performance Summary
Direct Selling Group Business Performance Summary (YoY comparison / vs. forecast) Millions of yen Forecast announced 1H FY2023 [3] 1H FY2022 [1] on May 15, 2023 [2] YoY [3] - [1] Vs. forecast [3] - [2] Percentage Percentage Profit margin Profit margin Profit margin change change Net sales 54,188 – 5
Slide 8: Direct Selling Group Operating Profit
Direct Selling Group Operating Profit (YoY comparison / vs. forecast) YoY comparison Operating profit decreased, mainly due to a decrease in gross profit resulting from lower sales and an increase in cost of sales resulting from RFID installation. In addition, expenses — such as for personnel and fo
Slide 9: Food Group Business Performance Summary
Food Group Business Performance Summary (YoY comparison / vs. forecast) Millions of yen Forecast announced 1H FY2023 [3] 1H FY2022 [1] on May 15, 2023 [2] YoY [3] - [1] Vs. forecast [3] - [2] Percentage Percentage Profit margin Profit margin Profit margin change change Net sales 21,359 – 22,800 – 25
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. Meanwhile, cost of sales increased, mainly due to higher composition ratio of regular products. Expenses were also higher due to an in
Slide 11: Other Businesses Business Performance Summary
Other Businesses Business Performance Summary (YoY comparison / vs. forecast) Millions of yen 1H FY2023 [3] Forecast announced 1H FY2022 [1] on May 15, 2023 [2] YoY [3] - [1] Vs. forecast [3] - [2] Percentage Percentage Profit margin Profit margin Profit margin change change Net sales 8,029 ― 9,100
Slide 12: FY2023 Earnings Forecast by Segment
FY2023 Earnings Forecast by Segment Millions of yen Pre-revision 2H FY2023 Revised 2H FY2023 forecast announced on Nov. 8, 2023 2H FY2022 results [1] forecast announced on May 15, 2023 [2] Full year 2H [3] YoY [3] - [1] Revised amount [3] - [2] Percentage Revision Profit margin Profit margin Profit
Slide 13: 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 carry out the timely and flexible repurchasing of company shares. Our policy is to provide a profit return targeting a cumulative three-y
Slide 14: Progress of the Medium-Term Management Policy 2022 Initiatives
Progress of the Medium-Term Management Policy 2022 Initiatives
Slide 15: 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 16: 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 In line with our goal of helping both residential and commercial customers fine tune the rhythm of their daily lives, the Di
Slide 17: Initiatives: Direct Selling Group
Medium-Term Management Policy 2022 Initiatives: Direct Selling Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses Our immediate goal is to create new points of contact with our customers through information and distribution reforms. We will also work to impro
Slide 18: 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 19: Initiatives: Food Group
Medium-Term Management Policy 2022 Initiatives: Food Group Theme 1 Reforming our business portfolios Reforming and expanding existing businesses Our current objective is to expand sales opportunities through information and distribution reforms. Shop Opening Strategies • New shops opened during the
Slide 20: Childcare
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 inve
Slide 21: Overseas Strategy
Medium-Term Management Policy 2022 Initiatives Theme 1 Reforming our business portfolios Investment in new growth opportunities Overseas Strategy ▶ R E & S Enterprises Pte Ltd, with whom we concluded a master franchise agreement for the Mister Donut business, opened its first Mister Donut shop in Si
Slide 22: Human Capital, DX and Coexistence with Local Communities
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 ▶ In response to recent technological and social changes, we introduced an
Slide 23: Appendix
Appendix
Slide 24: Duskin Co., Ltd. (Non-consolidated) Financial Summary
Duskin Co., Ltd. (Non-consolidated) Financial Summary Millions of yen 1H FY2023 [2] 1H FY2022 [1] YoY change [2] – [1] Profit Profit Percentage margin margin change Net sales 66,331 – 69,960 – +3,628 +5.5% Operating profit 3,910 5.9% 1,799 2.6% -2,110 -54.0% Ordinary profit 7,315 11.0% 5,097 7.3% -2
Slide 25: Customer-Level Sales
Customer-Level Sales Millions of yen 1H FY2023 [2] 1H FY2022 [1] YoY change Percentage change Direct Selling Group 134,436 133,869 -567 -0.4% Total Clean Service 86,671 85,003 -1,667 -1.9% Clean Service (residential customer) 40,970 39,727 -1,242 -3.0% Clean Service (commercial customer) 45,700 45,2
Slide 26: Number of Sales Units
Number of Sales Units No. of units As of Sept. 30, 2023 As of Mar. 31, 2023 Change Direct Selling Group 5,728 5,732 +4 Clean Service 1,838 1,825 -13 ServiceMaster 1,183 1,189 +6 Merry Maids 790 795 +5 Terminix 553 550 -3 Total Green 166 167 +1 Home Repair 103 106 +3 Rent-All 102 102 +0 Health Rent 1
Slide 27: 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 28: 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 uni
Slide 29: 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, 1,189 nationwide equipment and Merry Maids materials; assistance in recruiting human resources 795 nationwide
Slide 30: 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; (Shops) operational guidance; provision of bu
Slide 31: 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