Gakken Holdings Co., Ltd. · TSE:9470
Gakken — FY2024 Earnings Presentation
54 slides from Gakken's earnings presentation, Nov 8, 2024
Slide 1: Financial Results for the Fiscal Year Ended September 30, 2024
Financial Results for the Fiscal Year Ended September 30, 2024 November 8, 2024 Gakken Holdings Co., Ltd. Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the or
Slide 2: Overview of Financial Results for the Fiscal Year Ended September 30, …… P.05 Education
Overview of Financial Results for the Fiscal Year Ended September 30, …… P.05 2024 Education Domain Business overview …… P.16 Healthcare and Nursing Domain Business overview …… P.21 Progress of Gakken2025 …… P.23 Supplementary Materials …… P.37 2
Slide 3: Executive Summary of Consolidated Financial Results
Executive Summary of Consolidated Financial Results for the Fiscal Year Ended September 30, 2024 While achieving a significant increase in sales and profit compared to the previous year, aggressive investment continues for further growth. Net sales Operating profit Ordinary profit Net profit 185.5 b
Slide 4: Business Plan for the Fiscal Year Ending September 30, 2025
Business Plan for the Fiscal Year Ending September 30, 2025 No change in financial targets for the final year of the mid-term plan Net sales Operating profit Ordinary profit Net profit 200.0 bn 7.00 bn 7.20 bn 3.50 bn YoY +7.8％ YoY +1.7％ YoY +4.3％ YoY ＋54.8％ Net Sales : Planning to accelerate revenu
Slide 5: Overview of Financial Results for the Fiscal Year Ended September 30, 2024
Overview of Financial Results for the Fiscal Year Ended September 30, 2024 5
Slide 6: Summary of Consolidated Financial Results for the Fiscal Year
Summary of Consolidated Financial Results for the Fiscal Year Ended September 30, 2024 Net Sales Operating profit Ordinary profit 185.5 B YoY 6.88 B YoY 6.90 B YoY +13.5% +11.5% +6.6% Continued revenue growth due to strong Strongly increased due to the healthcare Increase due to higher operating pro
Slide 7: Factors affecting Changes in Net Sales (YoY)
Factors affecting Changes in Net Sales(YoY) (Unit: Billion yen) - In the Education Domain, revision of elementary school textbooks, workforce development and language learning business drove growth, while in the Healthcare and Nursing Domain, revenue increase through facility growth and improved occ
Slide 8: Factors affecting Changes in Operating profit (YoY)
Factors affecting Changes in Operating profit (YoY) (Unit: Billion yen) - In the Education Domain, revision of elementary school textbooks, workforce development and language learning business drove growth, while in the Healthcare and Nursing Domain, the Elderly housing business secured Operating pr
Slide 9: Factors affecting Changes in Profit attributable to owners of the Parent
Factors affecting Changes in Profit attributable to owners of the Parent (YoY) (Unit: Billion yen) - Operating profit increased, but net income attributable to owners of the parent declined temporarily due to aggressive portfolio reshuffling and structural reforms. - Decrease in equity in - Increase
Slide 10: Consolidated Financial Position
Consolidated Financial Position (Unit: Billion yen) - Total assets decreased 4.1% due to reduction of fixed assets, mainly investment securities. - Equity ratio improved to 39.4%, despite a 2 billion yen share buyback. Equity Ratio Equity Ratio 38.7％ 39.4％ Note: Figures are rounded down to the neare
Slide 11: Consolidated Cash Flows
Consolidated Cash Flows (Unit: Billion yen) Operating C/F increased by 7.15 billion yen due to an increase in Pre-compensation benefits. C/F from investment also increased by 1.84 billion yen due to stock sales, and C/F from financing decreased by 9.37 billion yen due to share buybacks and repayment
Slide 12: Trends of Dividends and EPS
Trends of Dividends and EPS Despite a decrease in EPS (net income per share), the annual dividend was maintained, resulting in an increase in the dividend payout ratio to 47.2%. We will strive to improve EPS and increase shareholder returns. *A 10:1 reverse stock split was implemented in April 2017
Slide 13: Target in Gakken 2025
Target in Gakken 2025 Unit：Billion yen Co n s o lid a t e d Se p -2 4 P la n Se p -2 4 Re s u lt Se p -2 5 P la n Net Sales 185.0 185.5 200.0 Education 92.0 91.8 98.0 Healthcare & Nursing 87.0 87.5 92.0 Others 6.0 6.1 10.0 Operating Profits 6.4 6.8 7.0 Education 4.9 4.1 4.2 Healthcare & Nursing 4.2
Slide 14: FY Sep-2025 Segment Business Plan
FY Sep-2025 Segment Business Plan (Unit: Billion yen) Segment Sep-2024 Result Sep-2025 Plan Change (YoY) Business Net sales Operating profit Net sales Operating profit Net sales Operating profit Education 91.8 4.1 98.0 4.2 ＋6.1 +0.0 Classroom and learning 52.8 1.9 54.0 2.1 ＋1.1 +0.1 center Publishin
Slide 15: Shareholder Returns Policy in FY Sep-25
Shareholder Returns Policy in FY Sep-25 Keep strengthening returns to shareholders Basic Policy on Shareholder Returns Dividend payout ratio of 30% or above Flexible shareholder returns in consideration of equity ratio Result of FY Sep-24 Plan for FY Sep-25 Annual Dividend 25yen 26yen （Payout ratio
Slide 16: Education Domain Business overview
Education Domain Business overview Focused on the following three businesses extensively supporting learning, with an expanded service menu for workforce development 1) Classroom and learning center: Operation of preschooler classes and Gakken classrooms supporting learning in everyday life, and lea
Slide 17: Revision of Education Domains' Sub-segments and Business Profile
Revision of Education Domains’ Sub-segments and Business Profile Old: By Sep-2023 New: From Oct-2023 Segment Sub segment Main business Segment Sub segment Main business -Preschooler classes and -Preschooler classes and Classroom Gakken Classroom Classroom Gakken Classroom -Operation of digital servi
Slide 18: Classroom and Learning center business summary
Classroom and Learning center business Summary for the Fiscal Year ended September 30, 2024 (Unit: Billion yen) Positives Op margin - Significant increase due to consolidation of Ichishin Holdings, 0.9% N.E. Holdings - The number of classrooms Net increased for the Learning center Sales group as a w
Slide 19: Publishing and Content business summary
Publishing and Content business Summary for the Fiscal Year ended September 30, 2024 (Unit: Billion yen) Positives Net - Return ratio improved YoY in Q4 following Sales Q3 (-0.8% pt.) Workforce - Steady performance in the nursing e- Op margin development 14.7% learning business and language 7.5% Toy
Slide 20: Kindergarten and School business summary
Kindergarten and School business Summary for the Fiscal Year ended September 30, 2024 (Unit: Billion yen) Positives Net - Sales of guidebooks, digital Sales textbooks and subtexts increased significantly due to the revision of elementary school textbooks in 2Q. Op margin School 1.2% - Loss decreased
Slide 21: Healthcare and Nursing Domain Business overview
Healthcare and Nursing Domain Business overview Addressed the social issue of aging society with a declining birthrate to create a community where people of all generations can live with peace of mind in three businesses 1)Elderly housing: Planning, development, and operation of serviced apartments
Slide 22: Healthcare and Nursing Domain summary
Healthcare and Nursing Domain Summary for the Fiscal Year ended September 30, 2024 (Unit: Billion yen) Op margin Positives 2.3% - Integration of Grand Uni-Life Care Net Sales Service 2.0% Child raising - New openings as scheduled by 4Q. support 2.1% Op margin →Elderly housing (＋27） →Group homes (＋15
Slide 23: Progress of Gakken2025
Progress of “Gakken2025” 23
Slide 24: Theme of Gakken 2025 ~SHIFT~
Theme of Gakken 2025 ～SHIFT～ 24
Slide 25: Group Strategy Overview for Gakken 2025
Group Strategy Overview for Gakken 2025 25
Slide 26: Gakken 2025 Key Indicators
Gakken 2025 Key Indicators Financial Indicators Segment Unit: Billion yen Unit: Billion yen Sep-24 Plan Result Sep-24 Plan Result Net sales 185.0 185.5 Education Net Sales 92.0 91.8 Operating Profits 6.4 6.8 Operating Profits 4.9 4.1 O/P margin 3.4％ 3.7％ Healthcare & Nursing Net profits margin 1.4％
Slide 27: Key initiatives and progress by category in Gakken 2025
Key initiatives and progress by category in Gakken 2025 Corporate Education Healthcare & Nursing Transformation Classroom & Learning Center Elderly housing Unification Scale expansion and diversification of Expansion of unique, high value-added learning opportunities facilities Gakken Identity Penet
Slide 28: SHIFT of the Business portfolio management
“SHIFT" of the Business portfolio management Major progress of Gakken2025 What We achieved 2025 Strengthen cooperation with DTP Education 1 Solutions JSC Implemented Robust Structure Resource Allocations to Adapt Changes for New Growth ２ Partnership with RareJob, Inc. in Business Environments Busine
Slide 29: Strengthen cooperation with DTP Education Solutions JSC
1 Strengthen cooperation with DTP Education Solutions JSC Accelerate expansion into the Southeast Asian market by expanding the capital and business alliance with DTP Education Solutions JSC in Vietnam. Previous Activities Further Initiatives Publishing Textbooks/Reference books/Supplemental materia
Slide 30: Partnership with RareJob Inc.
２ Partnership with RareJob Inc. Capital and business alliance with RareJob Inc. which has a variety of English learning solutions. Key Strategies in the Education Domain in Gakken 2025 Enhance for New business （Workforce development and Language Learning） ① Online English conversation business ② Col
Slide 31: Acquisition of Kodansha Children's Classroom Business
３ Acquisition of Kodansha Children's Classroom Business Reached No. 2 in the industry in the number of learning classrooms in shopping centers as a result of business acquisition Establishment of Gakken Link Number of study classrooms in shopping centers in Japan Newly established company through bu
Slide 32: Acquisition of Kirihara Shoten K.K.
４ Acquisition of Kirihara Shoten K.K. M&A to expand value offerings to meet diversifying learning needs Kirihara Shoten joins the Gakken Group Business activities: Publication of authorized textbooks and study guides, etc. -Mainly English and Japanese language materials for higher education Expand s
Slide 33: Establishment of Gakken SEED Co.
Reorganization of kindergarten business ５ Establishment of Gakken SEED Co. Restructuring to an optimal organization in order to enhance competitiveness Reorganization of kindergarten business Integration into a specialized company Gakken SEED - Product development - Direct sales function function -
Slide 34: Acquisition of Grand Uni Life Care Service Co.
６ Acquisition of Grand Uni Life Care Service Co. Promote expansion of distinctive assets such as high value-added facilities and multi-generational exchanges Grand Uni Life Care Service joins to us (15 facilities) Occupancy Rate Compre- hensive Increased from 91% to 97% in a year High-end Elderly Pr
Slide 35: Sustainability Management Initiatives
Sustainability Management Initiatives Improvement and enhancement of ESG indicators For the first time, the company was selected as a constituent of the FTSE Blossom Japan Sector Relative Index, an index that shows the performance of stocks of Japanese companies that excel in ESG (Environmental, Soc
Slide 36: Actions to achieve Cost of capital and Stock price Conscious Management
Actions to achieve Cost of capital and Stock price Conscious Management To improve PER and ROE Steady implementation of growth strategies PER（Times） Accelerate new business development Continue active investment in global (Southeast Asia), recurrent re-skilling fields, and in the related business of
Slide 37: Supplementary Materials
Supplementary Materials 37
Slide 38: Trends of Net sales
Trends of Net sales (Unit: Billion yen) YoY +13.1% Note: Figures are rounded down to the nearest unit. 38
Slide 39: Trends of Operating profit
Trends of Operating profit (Unit: Billion yen) YoY +11.5% Note: Figures are rounded down to the nearest unit. 39
Slide 40: Trends of Ordinary profit
Trends of Ordinary profit (Unit: Billion yen) YoY +6.6% Note: Figures are rounded down to the nearest unit. 40
Slide 41: Trends of EBITDA
Trends of EBITDA* (Unit: Billion yen) *A total of operating profit, depreciation, goodwill amortization YoY +19.8% Note: Figures are rounded down to the nearest unit. 41
Slide 42: Trends of Net profit
Trends of Net profit (Unit: Billion yen) YoY (29.2)% Note: Figures are rounded down to the nearest unit. 42
Slide 43: Summary of Results by Segment for the Fiscal Year
Summary of Results by Segment for the Fiscal Year Ended September 30, 2024 (Unit: Billion yen) Segment Sep-2023 Sep-2024 Change (YoY) Business Net sales Operating profit Net sales Operating profit Net sales Operating profit Education 79.48 3.94 91.88 4.12 ＋12.39 ＋0.18 Classroom and learning 39.74 2.
Slide 44: No. of Members and Classrooms
Classrooms and Learning centers Business No. of Members and Classrooms - In the classroom business, the number of new members recovered due to an increase in the number of kindergartens and classrooms in shopping centers, but the number of members is still recovering due to a large number of graduat
Slide 45: No. of New Publications and Return rate
Publishing Business No. of New Publications and Return rate* - Cumulative return ratio was 28.8%, up 1.3% pt. YoY, but improved by -0.8% pt. YoY in Q4 following Q3. No. of new publications (Cumulative period） Return rate of publications Sep-22 Sep-23 Sep-24 Children's books 194 194 236 ＋1.3%pt. Stud
Slide 46: No. of Hospitals using e-learning programs for Nurses
Workforce development and Language learning Business No. of Hospitals using e-learning programs for Nurses - Increased by 260 hospitals YoY. Timing of 3Q increase due to start of new fiscal year utilization. ＋260 46
Slide 47: No. of Subscribers in Language Online Lesson
Workforce development and Language learning Business No. of Subscribers in Language Online Lesson - In addition to increased awareness of Kimini, successful promotions led to steady growth in the number of registered members in both English and Chinese. ＋7.2 47
Slide 48: School Textbook Revision Schedule
School Business School Textbook Revision Schedule △ Examination: Review by the Ministry of Education, Culture, Sports, Science and Technology (appropriateness as a textbook) ● Adoption: Decision by boards of education on which textbook to use ◎ Start of use: Delivery to each school and students AY20
Slide 49: Group Direct Touchpoints (DX Strategy)
DX Strategy Group Direct Touchpoints - The total number of IDs obtained for each service reached 1 million. Aiming to increase customer LTV by promoting collaboration among services. Note: Figures are rounded down to the nearest unit. 49
Slide 50: No. of Facilities
Healthcare and Nursing Domain No. of Facilities*1 - Increasing the number of facilities through aggressive M&A *1 Numbers are net numbers of new openings which is deducted the number of closures. Numbers include oversea facilities. *2 Totals of nursery schools, afterschool children's clubs, child de
Slide 51: Plans and Progress of New Facility Openings
Healthcare and Nursing Domain Plans and Progress of New Facility Openings*1 - Continued aggressive pace of new openings with a total of 42 elderly housing and group home for the elderly with dementia opened by the end of 3Q - Childcare support facilities opened 5 each for school children and child d
Slide 52: Capacity expansion and Improvement in status of operations
Healthcare and Nursing Domain Capacity expansion and Improvement in status of operations Trend in total number of units & rooms and Trend in occupancy rate and utilization rate maximum number of children 9.3% 5.3% 52
Slide 53: Occupancy rate and Utilization rate
Healthcare and Nursing Domain Occupancy rate and Utilization rate Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Total no. of units 7,632 8,308 9,037 9,665 9,980 10,361 11,512 11,805 Elderly No. of occupied 6,985 7,505 8,345 9,073 9,519 10,062 11,210 11,541 units housing Occupancy rate 91.5
Slide 54: Gakken Holdings Co., Ltd.
Gakken Holdings Co., Ltd. 2-11-8 Nishigotanda, Shinagawa-ku, Tokyo, 141-8510 Did you do your best today? Gakken This document contains statements regarding business plans. These statements were prepared based on certain assumptions such as the economic environment and business policies as of the dat