Slide 1: Presentation of Financial Results for Fiscal 2024, Ended September 30, 2024
Presentation of Financial Results for Fiscal 2024, Ended September 30, 2024 DEAR LIFE CO., LTD. November 14, 2024
Slide 2: Overview of Financial Results: KPI Highlights
Overview of Financial Results KPI Highlights Property portfolio of acquired Consolidated ordinary profit Profit attributable to owners of projects parent ¥4,656 million ¥3,170 million ¥85.2 billion (down 24.7% YoY) (down 26.3% YoY) (up 61.1% YoY) Capital-to-assets ratio Earnings per share 20th anniv
Slide 3: Topics: Performance targets
Topics —Performance targets— (Millions of yen) 8,000 7,500 Ordinary profit ¥4,656 million (62.1% achievement rate against the initial target) 7,000 6,181 6,000 5,666 5,100 4,656 Profit attributable to owners of parent 5,000 4,199 4,304 ¥3,170 million (62.2% achievement rate against the initial targe
Slide 4: Topics: Dividend status and dividend policy
Topics —Dividend status and dividend policy— (Yen) Dividend payout ratio 70 80.0% 60 64.9% DOE* taken into account from FY2024 50 44 41 47 60.0% Set the 20th anniversary commemorative 40 45.4% 2 2 42.6% 42.4% 41.9% 39.8% 39.8% 40.0% 30 dividend at ¥ 47 per share. 30 28 27 3 19 2 47 20 42 39 20.0% (D
Slide 5: Index
Index 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Copyright （C） 2024 DEAR LIFE All r
Slide 6: 01. Operating Results & Financial Status
01. Operating Results & Financial Status 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses
Slide 7: Operating Results: Consolidated Statement of Income for FY2024
Operating Results —Consolidated Statement of Income for FY2024— Change from Percentage change FY2023 FY2023 (Millions of yen) 2023 from 2023 (1) (2) (2)-(1) ((2)-(1))/(1) Net sales 43,503 46,880 3,377 7.8% Real Estate Business 39,325 42,826 3,501 8.9% Sales Promotion Business 4,177 4,053 -124 -3.0%
Slide 8: Financial Status: Consolidated Balance Sheet
Financial Status —Consolidated Balance Sheet— (Millions of yen) 50,000 45,000 40,000 Interest-bearing Cash and deposits liabilities 18,653 Promoting the purchase of large-scale, 35,000 Interest-bearing 18,850 liabilities high-quality real estate. 13,864 Cash and deposits The balance of real estate h
Slide 9: Financial Status: Cash Flow
Financial Status —Cash Flow— (Billions of yen) Borrowing for property acquisitions, etc. + Profit before Actively utilized own funds to carry out agile income taxes property purchases + Share Dividend buybacks payments Income tax payments Other Favorable borrowing environment from + financial instit
Slide 10: 02 Real Estate Business
02 Real Estate Business 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Copyright （C） 20
Slide 11: Segment Sales & Profit
Real Estate Business —Segment Sales & Profit— (Millions of yen) 50,000 47,621 8,000 42,826 6,867 7,000 39,325 Segment sales 40,000 6,568 6,000 ¥42,826 million 5,417 5,000 30,000 4,710 24,703 (up 8.9% YoY) 4,000 20,000 3,000 Segment profit ¥5,417 million 2,000 10,000 (down 21.1% YoY) 1,000 0 0 2021 2
Slide 12: Purchasing Activities
Real Estate Business —Purchasing Activities— (Millions of yen) 30,000 Up 1.5 times 24,783 25,000 YoY 20,000 10,644 16,355 Inventory balance 15,000 4,954 ¥24,783 million 10,000 (up 51.5% YoY) 11,400 14,139 5,000 0 FYE9/2023 FYE9/2024 Real estate for sale Real estate for sale in process Copyright （C）
Slide 13: Purchasing Activities: Continued investment in 23 wards
Real Estate Business —Purchasing Activities— ・Tachikawa V Project (Tachikawa City, Tokyo), and others Outside 23 5.6% Central 5 wards wards 19.6% 94.4％ Continued investment in 23 Investment properties ・Kagurazaka Bentencho II Project (Shinjuku Ward) wards where demand is located in Tokyo’s 23 ・ DeLC
Slide 14: Purchasing Activities: Properties within 10-minute walk of station
Real Estate Business —Purchasing Activities— ・Ikegami II Project ・Kawaguchi Namiki Project More than 10 minutes ・DeLCCS Komagome Somei ・DeLCCS Chitosekarasuyama, and others 0.9% 1-3 minutes 25.2% Carefully selected investments in Within 10 real estate located within 10 minutes 99.1％ 47.7% Within 10
Slide 15: Purchasing activities (volume)
Real Estate Business —Purchasing activities (volume)— Portfolio set to be the largest ever with DeLCCS Otemachi DeLCCS GINZA Ⅷ DeLCCS Yoga II the goal to achieve Breakthrough 2025. (Millions of yen) Actively promote purchasing and selling activities to achieve ordinary profit of ¥10 billion. Notes:
Slide 16: Purchasing activities (number of properties)
Real Estate Business —Purchasing activities (number of properties)— (Projects) 70 63 60 56 51 50 26 21 17 Large-scale projects valued at more than 40 36 33 ¥1 billion increased steadily. 30 12 Both the number and scale of projects 10 24 are increasing. 20 26 28 19 17 10 5 12 4 5 7 0 2020.9 2021.9 20
Slide 17: Entry into the hotel business
Real Estate Business —Purchasing Activities— Entry into the hotel business Acquired and now operates a resort hotel in Onjuku Town, a popular destination for swimming in the summer and surfing in the winter. Also acquired land for hotel construction in Hebara, Katsuura City. Two hotel projects under
Slide 18: Overview of Sayan Terrace Hotel & Resort
Real Estate Business —Purchasing Activities— Plan to operate the hotel over the medium to long term after large-scale renovation and rebranding. Overview of Sayan Terrace Hotel & Resort Location Hama, Onjuku Town, Isumi District, Chiba Prefecture Access 10-minute walk from Onjuku Station on the JR S
Slide 19: Main Properties under Development
Real Estate Business —Main Properties under Otorii III Project Development— Urban residential project with 113 units 7-minute walk from Otorii Station of Keikyu Airport Line Direct access to Haneda Airport, Shinagawa and Sengakuji Ikegami II Project Development projects Total number of units:29 Plan
Slide 20: Main Income-Producing Properties under Development
Real Estate Business 22 residential units and 2 commercial —Main Income-Producing DeLCCS Ginza VIII Project Properties under Development— 4-minute walk from Shiodome Station of Toei Oedo Line 5-minute walk from Shimbashi Station of Tokyo Metro Ginza Line Direct access to Shimbashi, Toranomon, Roppon
Slide 21: 03. Sales Promotion Business
03. Sales Promotion Business 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Copyright （
Slide 22: Sales Promotion Business: Segment Sales & Profit
Sales Promotion Business —Segment Sales & Profit— (Millions of yen) (Millions of yen) Net sales Secured consistent sales every month 4,500 4,283 4,177 4,053 50 Incentives gained through performance 20 beyond customer expectations. 3,000 0 -16 Segment profit Successful reduction of SG&A expenses, 1,5
Slide 23: 04. Measures to Achieve Breakthrough 2025
04. Measures to Achieve Breakthrough 2025 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesse
Slide 24: Breakthrough 2025: Performance targets for FY2025
Breakthrough 2025 —Performance targets for FY2025— (Millions of yen) 12,000 10,000 10,000 Ordinary profit target for the final year of Breakthrough 2025: ¥ 10 billion 8,000 (+14% YoY) 6,181 6,000 5,666 4,656 4,000 ROE: over 18% / ROA: 15% level 2,000 0 FY2024 FY2023 FY2024 FY2024 (Targets) Copyright
Slide 25: Key initiatives: Measures to achieve Breakthrough 2025
Real Estate Business —Measures to achieve Breakthrough 2025— ➢ Purchases for FY2024 were on track and progress is also being made in purchasing prime inventory to achieve targets of FY2025. Real Estate Business Key initiatives ➢ Promotes further measures to expand the scale and number of projects. ・
Slide 26: Real Estate Business: Engaging in ADR Business
Real Estate Business —Measures to achieve Breakthrough 2025— Engaging in ADR Business Accelerated recouping of funds and reinvestment : Funds collection cycle Land acquisition Attribution of property buyers (FY2024) Trading companies, Individual 5.26% investors, 14.47% Funds, 9.21% Asset design Fina
Slide 27: Focus on projects in prime locations in central Tokyo
Real Estate Business —Measures to achieve Breakthrough 2025— Focus on projects in prime locations in central Tokyo While focusing on Chiyoda and Shinjuku wards, also expand to commercial buildings in Shibuya and Chiyoda Ward/Shinjuku Ward Minato wards. Areas with good dining out, work, and living en
Slide 28: Sales Promotion Business: Key initiatives
Sales Promotion Business —Measures to achieve Breakthrough 2025— ➢ Started new business by utilizing internal resources. ・Utilizing recruiting know-how, we have launched a new Recruitment Process Outsourcing (RPO) business that handles everything from the planning of corporate recruiting to intervie
Slide 29: 05. Shareholder Returns Policy
05. Shareholder Returns Policy 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Copyright
Slide 30: Dividend targets and past implementation
Shareholder Returns Policy —Dividend targets and past implementation— (Yen) 70 62 (40.0%) 60 50 47 (66.5%) 44 (42.4%) 41 2 (41.9%) Aim for stable dividends from FY2024 onward, 40 2 taking into account DOE*. 30 27 (45.4%) 30 (42.6%) 2 62 3 19 (39.8%) 47 Target of ¥ 62 per share for fiscal 2025 20 28
Slide 31: Purchase of treasury shares
Shareholder Returns Policy —Purchase of treasury shares—- Implemented the program flexibly while taking into account trends in the stock market and stock price, aiming to improve capital efficiency. Trading volume Acquisition Acquisition Stock price (shares) period (1) period (2) (yen) 3,500,000 120
Slide 32: 06. Appendix
06. Appendix 01. Operating Results & Financial Status 02. Real Estate Business 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Businesses Copyright （C） 2024 DEAR LIF
Slide 33: Appendix: Consolidated Income Statement
Appendix —Consolidated Income Statement— Change from Percentage change FY2023 FY2024 FY2023 from FY2023 (Millions of yen) (1) (2) (2)-(1) {(2)–(1)}/(1) Net sales 43,503 46,880 3,377 7.8% Revenue increased with the Real Estate Business 39,325 42,826 3,501 8.9% higher number of projects but profit dec
Slide 34: Appendix: Consolidated Balance Sheet
Appendix —Consolidated Balance Sheet— Component ratio Change compared to (Millions of yen) FYE9/2023 FYE9/2024 at end of FY2024 end of FY2023 Current assets 39,504 44,914 95.4% 13.7% Cash and deposits 21,882 18,653 39.6% -14.8% Real estate for sale in process 4,954 10,644 22.6% 114.9% Real estate fo
Slide 35: 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 03. Sales Promotion Business 04. Measures to Achieve Breakthrough 2025 05. Shareholder Returns Policy 06. Appendix Consolidated Financial Statements Overview of the Dear Life Group’s Busine
Slide 36: 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 Also began owning and operating hotels Copyright （C） 2024 DEAR LIFE All rights reserved. 36
Slide 37: Residential development, design and construction, rental and brokerage
Overview of the Dear Life Group’s Businesses Wide rollout of development of residences, apartments, and detached houses, design and construction, rental and sales brokerage, and management business mainly in Shinagawa and Ota wards Copyright （C） 2024 DEAR LIFE All rights reserved. 37
Slide 38: Dispatch of call center and sales/admin staff
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. 38
Slide 39: BPO services for the self-storage market
Overview of the Dear Life Group’s Businesses Provides business process outsourcing (BPO) services for the self-storage market (Equity-method affiliate: 3461 TSE Growth Market) Develops self-storage properties, etc. Copyright （C） 2024 DEAR LIFE All rights reserved. 39
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 ava