Dear Life Co., Ltd. · TSE:3245
Dear Life — H1 FY2024 Earnings Presentation
40 slides from Dear Life's earnings presentation, May 10, 2024
Slide 1: Presentation of Financial Results for the First Half of Fiscal 2023
Presentation of Financial Results for the First Half of Fiscal 2023, Ending September 30, 2024 DEAR LIFE CO., LTD. May 10, 2024
Slide 2: Overview of First Half Financial Results: KPI Highlights
Overview of First Half Financial Results KPI Highlights Profit attributable to owners of Property portfolio of acquired Consolidated ordinary profit (H1) parent (H1) projects (H1) ¥338 million ¥193 million ¥30.6 billion (down 69.4% YoY) (down 72.4% YoY) (up 9.9% YoY) Capital-to-assets ratio Earnings
Slide 3: Index
Index 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environment Copyright (C) 2024 DEAR
Slide 4: 01. Operating Results & Financial Status
01. Operating Results & Financial Status 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business
Slide 5: Operating Results
Operating Results - Q2 Ordinary Profit (Millions of yen) 25,000 Secured real estate 19,355 20,000 17,371 worth ¥ 19.3 15,000 10,000 7,904 7,766 13,030 billion in terms of 6,201 5,000 property portfolio 0 2019 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024 1H Notes: 1. Aggregated portfolio of projects acqui
Slide 6: Financial Status - Consolidated Balance Sheet
Financial Status - Consolidated Balance Sheet (Millions of yen) Cash and deposits Interest- 12,861 bearing Capital-to-assets ratio liabilities 48.8% 20,937 Maintained solid Other liabilities 1,884 financial base Real estate for sale in process Real estate for sale 28,300 Net assets 22,501 Other 4,16
Slide 7: Financial Status - Cash and Deposits & Interest-Bearing Liabilities
Financial Status - Cash and Deposits & Interest- Bearing Liabilities (Millions of yen) Cash and deposits Interest-bearing liabilities 25,000 21,882 20,937 20,000 focus on Priority 15,000 13,864 purchasing 12,861 properties 10,000 Active investment of own capital while utilizing 5,000 borrowings 0 As
Slide 8: Financial Status - Cash Flow
Financial Status - Cash Flow (Billions of yen) Profit before income taxes 21.9 Borrowing for property acquisitions, etc. Acquisition of company shares Cash and cash equivalents Repayment of 13.2 Active utilization of own borrowings Dividend funds associated with Cash and cash equivalents property sa
Slide 9: 02. Real Estate Business
02. Real Estate Business 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environment Copy
Slide 10: Real Estate Business - Segment Sales & Profit
Real Estate Business - Segment Sales & Profit (Millions of yen) 11,000 10,000 9,349 9,534 9,000 Segment sales 8,000 6,941 ¥ 6,941 million 7,000 6,000 4,750 5,000 (down 27.2% YoY) 4,000 3,000 2,000 1,394 Segment profit 1,053 756 1,000 381 ¥ 756 million 0 2021 1H 2022 1H 2023 1H 2024 1H (down 45.7% Yo
Slide 11: Real Estate Business - Inventory
Real Estate Business - Inventory (Millions of yen) 30,000 28,300 25,000 Inventory balance 9,484 ¥ 28,300 million 20,000 16,355 15,000 (up 73.0% vs. Sept. 30, 2023) 4,954 10,000 18,816 Purchasing activities 5,000 11,400 progressed well 0 As of Sept. 30, 2023 FY2024 H1 Real estate for sale Real estate
Slide 12: Purchasing Activities: Investment in Tokyo's 23 Wards
Real Estate Business - Purchasing Activities ・Tachikawa V Project (Tachikawa City, Tokyo), and others Outside 23 wards 6.3% Central 5 wards 19.0% Continued investment 93.7％ ・Kagurazaka 2-chome land with leasehold interest (Shinjuku Ward) Investment in 23 wards where properties located in ・Ginza Apar
Slide 13: Purchasing Activities: Near Stations
Real Estate Business - Purchasing Activities ・Machiya Project ・Asakusabashi II Project More than 10 minutes ・DeLCCS Waseda 1.3% ・DeLCCS Kudanshita, and others 1-3 minutes 26.0% Carefully selected investments in real estate located within Within 10 minutes 98.7% 10 minute-walk of nearest 48.1% Within
Slide 14: Purchasing Activities: Large Projects
Real Estate Business - Purchasing Activities (Projects) 60 56 51 50 21 17 40 Good progress in purchasing 36 33 large projects of over ¥1 30 12 26 billion in business scale 10 20 26 28 11 Plans already in place to 19 17 acquire real estate worth 10 9 ¥ 18 billion in business scale 0 1 4 1 5 5 3 0 7 1
Slide 15: Average Occupancy Rates of Owned Properties
Real Estate Business - Average occupancy rates of properties owned by Dear Life (%) Owned real estate occupancy rates remain at high level above 90% Copyright (C) 2024 DEAR LIFE All rights reserved. 15
Slide 16: Main Properties under Development
Real Estate Business - Main Properties under Development Komagome VI Project Urban residential project with 24 units 9-minute walk from Komagome and Nishigahara Stations on the Tokyo Metro Namboku Line Direct access to Yotsuya, Nagatacho, and Roppongi 1-chome 38 development projects Machiya Project
Slide 17: Main Properties under Development (continued)
Real Estate Business 23 residential units and 1 commercial DeLCCS Waseda Natsumezaka Project - Main Properties under Development 3-minute walk from Wakamatsu Kawada Station of Toei Oedo Line 8-minute walk from Waseda Station of Tokyo Metro Tozai Line Direct access to Shinjuku, Aoyama 1-chome, Otemac
Slide 18: Key Initiatives
Real Estate Business - Key initiatives ➢ The current business environment Key initiatives ➢ Carefully selected properties acquired in prime Tokyo locations ➢ Push for larger projects Copyright （C） 2024 DEAR LIFE All rights reserved. Copyright (C) 2024 DEAR LIFE All rights reserved. 18
Slide 19: The Current Business Environment
Real Estate Business - The Current Business Environment ➢ Job openings in Tokyo: up 7.4% YoY (Moving average for the most recent 12 months calculated from the Job Offer and Job Application Balance Sheet, Tokyo Labor Bureau, Ministry of Health, Labour and Welfare) The current business ➢ Office vacanc
Slide 20: Key Initiatives: Selection of Prime Tokyo Locations
Real Estate Business - Key Initiatives 1 ➢ Policy for more astute selection of locations ・ Seek out real estate in central Tokyo which is highly marketable, scarce, and in Ever greater demand for leasing selection of prime ・Increase amount of property information with more staffing and Group collabo
Slide 21: Key Initiatives: Push for Larger Assets
Real Estate Business - Key Initiatives 2 DeLCCS Ayase II DeLCCS Shiodome Push for larger assets High profits with small number of people ➢ Reduce risk of rising construction costs for development projects by purchasing large sites in terms of land area with potential for low-rise development ➢ Tende
Slide 22: 03. Sales Promotion Business
03. Sales Promotion Business 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environment
Slide 23: Sales Promotion Business - Segment Performance
Sales Promotion Business - Segment Performance (Millions of yen) (Millions of yen) 1,500 50 21 1,14426 Net sales 1,087 1,076 1,073 1,047 1,034 1,016 1,010 1,026 Secured consistent sales 1,000 -2 983 2 0 every month -3 -8 -17 Incentives gained through -29 performance beyond customer -36 expectations
Slide 24: Sales Promotion Business - Key Initiatives
Sales Promotion Business - Key initiatives ➢ Launch of new company, Arciel Co., Ltd., on January 1 Key initiatives ➢ Promoting measures to steadily secure human resources Copyright (C) 2024 DEAR LIFE All rights reserved. 24
Slide 25: Arciel Co., Ltd
Sales Promotion Business - Key Initiatives 1 Arciel Co., Ltd Launched on January 1 ・Greater organizational efficiency and reduced costs by bringing management system of each division under one roof ・Enables flexible supply of human resources within the Group according to demands of dispatched staff
Slide 26: Measures to Steadily Secure Human Resources
Sales Promotion Business - Key Initiatives 2 ・Increased number of employees: Provided more varied work styles to hire wide range of human resources Promoting measures to steadily secure human resources ・Increased retention rate: Expanding employee training and follow-up systems Encouraged greater co
Slide 27: 04. Shareholder Returns Policy
04. Shareholder Returns Policy 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environmen
Slide 28: Shareholder Returns Policy: 40% Dividend Payout
Shareholder Returns Policy (Yen) 50 50.0% 46 44 2 41 40 2 45.4% 30 42.4% 30 28 41.9% Implemented based on a 39.8% 27 2 42.6% 3 40.0% 40% annual dividend payout 20 19 39.8% 42 39 46 ratio 28 28 24 10 19 Target of ¥ 46 per share for 0 30.0% fiscal 2024 dividend FY2018 FY2019 FY2020 FY2021 FY2022 FY202
Slide 29: 05. Appendix
05. Appendix 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environment Copyright (C) 20
Slide 30: Consolidated Income Statement
Appendix - Consolidated Income Statement Percentage FY2023 FY2024 Change from change from H1 H1 2023 2023 (Millions of yen) (1) (2) (2)–(1) {(2)–(1)}/(1) Net sales 11,713 8,977 -2,736 -23.4% Real Estate Business 9,534 6,941 -2,593 -27.2% Sales Promotion Business 2,178 2,036 -142 -6.5% Focus on acqui
Slide 31: Consolidated Balance Sheet
Appendix - Consolidated Balance Sheet Component Percentage change As of Sept. 30, As of Mar. 31, (Millions of yen) ratio as of Mar. compared to Sept. 2023 2024 31, 2024 30, 2023 Current assets 39,504 43,045 95.0% 9.0% Cash and deposits 21,882 12,861 28.4% -41.2% Real estate for sale in process 4,954
Slide 32: Overview of the Dear Life Group's Businesses
Overview of the Dear Life Group’s Businesses 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Busin
Slide 33: Development and sale of real estate mainly in Tokyo
Overview of the Dear Life Group’s Businesses Development and sale of real estate mainly in Tokyo Development of urban residences and commercial buildings Copyright (C) 2024 DEAR LIFE All rights reserved. 33
Slide 34: ID Inc. and ID Property Co., Ltd.
Overview of the Dear Life Group’s Businesses Wide rollout of development of residences, apartments, and detached houses, rental and sales brokerage, design ID Inc. ID Property Co., Ltd. and construction, and rental management business mainly in Shinagawa Ward and Ota Ward Copyright (C) 2024 DEAR LIF
Slide 35: Staffing for finance, insurance and real estate
Overview of the Dear Life Group’s Businesses Dispatches outbound-style call center staff to the finance/insurance sector, and sales/admin staff to the real estate industry Copyright (C) 2024 DEAR LIFE All rights reserved. 35
Slide 36: Self-storage BPO and development
Overview of the Dear Life Group’s Businesses Provides business process outsourcing (BPO) services for the self-storage market Develops self-storage spaces, etc. (Equity-method affiliate: 3461 TSE Growth Market) Copyright (C) 2024 DEAR LIFE All rights reserved. Copyright (C) 2024 DEAR LIFE All rights
Slide 37: Business Environment
Business Environment 01. Operating Results & Financial Status 02. Real Estate Business Key Initiatives 03. Sales Promotion Business Key initiatives 04. Shareholder Returns Policy 05. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Business Environment Copyrigh
Slide 38: Business Environment: Population and Household Trends
Real Estate Business Population trends and forecast for Japan, Tokyo, and 23 wards in Tokyo Number of households by family type in Tokyo - Business Environment While the population across Japan and in the Tokyo metropolitan area The number of single-person/DINKS households targeted by decreases, the
Slide 39: Business Environment: Asking Rent Trends in Tokyo
Real Estate Business - Business Environment Asking Rent Trends in Tokyo's 23 Wards (changes indexed with January 2020 set at 100) Rents continue to rise for singles and DINKs Rents for small apartments (30m2 range) for single people hit a record high in the 100,000 yen bracket Created by Dear Life b
Slide 40: Contact details for inquiries regarding this presentation
Contact details for inquiries regarding this presentation Corporate Strategy Unit, DEAR LIFE CO., LTD. Email: ir@dear-life.co.jp The forecast results and forward-looking statements described in this presentation are expectations of the Company’s management deemed reasonable based on information avai