Dear Life Co., Ltd. · TSE:3245
Dear Life — FY2020 Earnings Presentation
27 slides from Dear Life's earnings presentation, Nov 13, 2020
Slide 1: Presentation of Financial Results for Fiscal 2020, Ended September 30, 2020
Presentation of Financial Results for Fiscal 2020, Ended September 30, 2020 DEAR LIFE CO., LTD. November 13, 2020 Securities code 3245 on the First Section of the Tokyo Stock Exchange
Slide 2: Overview of the Dear Life Group’s Businesses
Overview of the Dear Life Group’s Businesses Real Estate Business Sales Promotion Business ◼ Development and sale of real estate in central Tokyo ◼ Operated by the subsidiary, Dear Life Agency Co., Ltd., ◼ Development is focused on urban condominium the business offers various promotional support Bu
Slide 3: INDEX
INDEX ☑ Highlights of Fiscal 2020 5 ▶ Targets and Results ☑ Explanation of Fiscal 2020 Financial Results 8 ▶ Financial Results and Key Performance Indicators ▶ Income Statement, Balance Sheet, and Cash Flow Statement ☑ Explanation of Fiscal 2020 Financial Results by Business Segment 14 ▶ Real Estate
Slide 4: INDEX
INDEX ☑ Highlights of Fiscal 2020 5 ▶ Targets and Results ☑ Explanation of Fiscal 2020 Financial Results 8 ▶ Financial Results and Key Performance Indicators ▶ Income Statement, Balance Sheet, and Cash Flow Statement ☑ Explanation of Fiscal 2020 Financial Results by Business Segment 14 ▶ Real Estate
Slide 5: Highlights of Fiscal 2020
Highlights of Fiscal 2020 ☑ Main Factors Underlying Results ◎Real Estate Business Acquisitions: Despite the temporary slowdown following the declaration of a state of emergency, we exceeded the previous year’s performance in the acquisition of development projects and income-producing properties. Sa
Slide 6: Fiscal 2020 Results
Fiscal 2020 Results ☑Ordinary profit ¥2.71 billion (down 20.3% YoY), profit attributable to owners of parent ¥1.85 billion (down 21.7% YoY). Solid profit was secured despite future market uncertainty. ☑ROA at 10.7% met target level. ROE fell slightly short but reached a satisfactory level. ROE and R
Slide 7: INDEX
INDEX ☑ Highlights of Fiscal 2020 5 ▶ Targets and Results ☑ Explanation of Fiscal 2020 Financial Results 8 ▶ Financial Results and Key Performance Indicators ▶ Income Statement, Balance Sheet, and Cash Flow Statement ☑ Explanation of Fiscal 2020 Financial Results by Business Segment 14 ▶ Real Estate
Slide 8: Consolidated Financial Results and Key Performance Indicators in Fiscal 2020
Consolidated Financial Results and Key Performance Indicators in Fiscal 2020 Percentage 2019 2020 Difference change (Millions of yen) (1) (2) (2)－(1) (2)/(1) Income Statement Net sales 19,866 27,649 7,783 139% ・The prioritizing of turnover of inventory assets increased the number of property Operati
Slide 9: Main Results from the Consolidated Income Statement in Fiscal 2020
Main Results from the Consolidated Income Statement in Fiscal 2020 Millions of yen FY2019 FY2020 Difference Main reasons for year-on-year difference Net sales 19,866 27,649 7,783 Net sales and operating profit ・With priority given to securing profit at an early Real Estate Business 19,515 27,426 7,9
Slide 10: Main Results from the Consolidated Balance Sheet
Main Results from the Consolidated Balance Sheet ☑ Solid profit performance boosts capital-to-assets ratio to 54.9%. (Billions of yen) 2.5 1 1.5 5.0 Assets 2.0 8.8 4 2 ① Sale of a number of large-scale properties 8.5 ② Focus on selling activity for steady profit accumulation 10.6 As a result of ① an
Slide 11: Fiscal 2020 Consolidated Cash Flow
Fiscal 2020 Consolidated Cash Flow ☑ As a result of steady property sales, cash reserves exceed ¥13.0 billion, which will be invested for further expansion of business scale. 3.5 1.2 Private placement (Billions of yen) 16 bond issue Other Borrowing for (March) Profit –0.4 property Balance at end of
Slide 12: INDEX
INDEX ☑ Highlights of Fiscal 2020 5 ▶ Targets and Results ☑ Explanation of Fiscal 2020 Financial Results 8 ▶ Financial Results and Key Performance Indicators ▶ Income Statement, Balance Sheet, and Cash Flow Statement ☑ Explanation of Fiscal 2020 Financial Results by Business Segment 14 ▶ Real Estate
Slide 13: Summary of Fiscal 2020 Financial Results by Business Segment
Summary of Fiscal 2020 Financial Results by Business Segment (Millions of yen) Real Estate Business Net sales Segment profit Profit ratio 30,000 27,426 20% Net sales increased 40.5% YoY to ¥27,426 million, 25,000 and segment profit fell 17.8% YoY to ¥3,222 million. 19,515 15% 20,000 ☑ Amid future ma
Slide 14: (1): Properties Sold in Fiscal 2020
Real Estate Business (1): Properties Sold in Fiscal 2020 ☑ Residential market remains robust despite the COVID-19 crisis. ● Under favorable market conditions, net sales reached a record high ● A diverse range of investors (individuals, general corporations, real estate companies, and real estate inv
Slide 15: (2): Property Portfolio Expansion in Fiscal 2020
Real Estate Business (2): Property Portfolio Expansion in Fiscal 2020 ☑ Consistent investment policy of selective focus on central Tokyo ●Despite a temporary slowdown due to the state of emergency, development site acquisitions exceeded the previous year’s level with a business scale of ¥32.1 billio
Slide 16: Overview of the Sales Promotion Business
Overview of the Sales Promotion Business ☑ Despite the heavy impact of COVID-19, business is now recovering. ●Dispatched staff numbers fell as customers voluntarily reduced business operations, generating expenses to maintain employment ●The number of dispatch sites recovered gradually in the second
Slide 17: Overview of Businesses Operated by Group Company Palma Co., Ltd.
Overview of Businesses Operated by Group Company Palma Co., Ltd. Business solutions services: BPO services with payment guarantee conditions (Rooms) Number of service orders ☑ BPO services with payment guarantee conditions grew, as did installation of online payment and inventory control systems ☑ T
Slide 18: INDEX
INDEX ☑ Highlights of Fiscal 2020 5 ▶ Targets and Results ☑ Explanation of Fiscal 2020 Financial Results 8 ▶ Financial Results and Key Performance Indicators ▶ Income Statement, Balance Sheet, and Cash Flow Statement ☑ Explanation of Fiscal 2020 Financial Results by Business Segment 14 ▶ Real Estate
Slide 19: Profit Targets for Fiscal 2021
Profit Targets for Fiscal 2021 ☑ Targets of ¥3.0 billion for ordinary profit and ¥2.0 billion for profit attributable to owners of parent Ordinary profit target of ¥5.0 billion for 2022 backed by sound financial base ☑ Dividend target of ¥20 per share (payout ratio 40%) Ordinary profit and profit at
Slide 20: Key Initiatives: Real Estate Business
Key Initiatives: Real Estate Business Continuing to actively invest in main businesses with the goal of establishing a foundation for growth over the medium and long terms Increasing development and Increase the scale of development and investment projects investment project earnings ➢ Continue incr
Slide 21: Key Initiatives: Real Estate Business
Key Initiatives: Real Estate Business Focus on development and investment in properties located near train Property portfolio area stations in central Tokyo ➢ Highly selective targeting of properties located in the 23 wards of Tokyo and within 30 minutes by train from major stations ➢ Boosting inves
Slide 22: (Reference material) List of Main Property Projects
(Reference material) List of Main Property Projects Akatsuka project DeLCCS Kagurazaka-Tenjincho project Ojima project Main development projects currently underway Project name Project type Location Nearest station Commercial, office, and residential Ichigaya-Yanagicho Shinjuku Ward, Tokyo Approx. 1
Slide 23: Key Initiatives: Staff Outsourcing Services Business
Key Initiatives: Staff Outsourcing Services Business Dear Life Agency Co., Ltd. (Subsidiary providing staffing-related services) Wide-ranging capabilities Improve the competitiveness of mainstay staff outsourcing services Sales Call Event Back support center management office ➢ Continue promoting sa
Slide 24: Initiatives to Broaden Businesses
Initiatives to Broaden Businesses ☑ Acquisition of DLX Holdings Co., Ltd., as subsidiary We concluded a basic agreement on the acquisition as a subsidiary of DLX Holdings Co., Ltd., which is under the control of NFC HOLDINGS, Inc. We plan to make DLX Holdings the parent company of N-STAFF Co., Ltd.
Slide 25: Initiatives to Broaden Businesses (Achievements to Date)
Initiatives to Broaden Businesses (Achievements to Date) ☑Medium-term management plan: “Investment to Create New Business Fields” Operational and capital alliance with Japan M&A Solutions Co., Ltd. (November 2019) We aim to generate business opportunities through access to and utilization of company
Slide 26: Shareholder Returns Policy
Shareholder Returns Policy ☑ Dividends: Consolidated payout ratio 40%: Dividend of ¥19 per share Dividend per share and payout *１ ratio over the past five years *1. The Fiscal 2019 dividend included a ¥3 commemorative dividend to mark the Company’s 15th anniversary, excluding which the payout ratio
Slide 27: Investor Relations Enquiries
Investor Relations Enquiries Contact details for enquiries regarding this presentation Corporate Strategy Unit, DEAR LIFE CO., LTD. E-mail: ir@dear-life.co.jp The forecast results and forward-looking statements described in this presentation are expectations of the Company’s management deemed reason