Gakken Holdings Co., Ltd. · TSE:9470
Gakken — FY2023 Earnings Presentation
38 slides from Gakken's earnings presentation, Nov 10, 2023
Slide 1: Financial Results for the Fiscal Year Ended September 30, 2023
Securities code: 9470 Financial Results for the Fiscal Year Ended September 30, 2023 November 10, 2023 Gakken Holdings Co., Ltd.
Slide 2: INDEX
INDEX Financial Highlights …P.04 Overview of Financial Results …P.06 Education Domain Financial Results …P.11 Healthcare and Nursing Domain Financial Results …P.15 Gakken 2023 Summary …P.17 Supplementary Materials …P.21 2
Slide 3: Financial Highlights
Financial Highlights for the Fiscal Year Ended September 30, 2023 3
Slide 4: Consolidated Financial Results for the Fiscal Year Ended September 30, 2023
Consolidated Financial Results for the Fiscal Year Ended September 30, 2023 *Numbers are rounded to the nearest decimal place. Net Operating Ordinary sales profit profit 164.12 billion yen +5.2 % YoY 6.17 billion yen -4.0% YoY 6.48billion yen YoY -6.5% Increased for the 14th consecutive fiscal year
Slide 5: Topics for the Fiscal Year Ended September 30, 2023
Topics for the Fiscal Year Ended September, 30, 2023 [Global] Entered into a business [Education] NE Holdings and Ichishin [Healthcare and nursing] and capital alliance with DTP, Holdings joined the Group to strengthen Acquired all shares of a textbook company in Vietnam the learning center business
Slide 6: Overview of Financial Results
Overview of Financial Results for the Fiscal Year Ended September 30, 2023 6
Slide 7: Executive Summary of the Financial Results
Executive Summary of the financial results for the Fiscal Year Ended September 30, 2023 Net sales ：164.12 billion yen (5.2% increase year on year) Operating profit ： 6.17 billion yen (4.0% decrease year on year) Ordinary profit ： 6.48 billion yen (6.5% decrease year on year) Profit ： 3.19 billion ye
Slide 8: Factors Behind Changes in Operating Profit
Factors Behind Changes in Operating Profit (Billion yen) Fall in revenue due mainly to poor sales , deteriorating rates of goods returned unsold in the publishing business, and worsening external environment in the kindergarten and school business ・Strong ・Strong ・Strong occupancy occupancy performa
Slide 9: Summary of Results by Segment
Summary of Results by Segment for the Fiscal Year Ended September 30, 2023 (Billion yen) Segment FY2022 Results FY2023 Results Change（YoY） Operating Operating Operating Business Net sales profit Net sales profit Net sales profit Educational domain 78.17 4.43 79.49 3.94 +1.32 -0.49 Classroom and lear
Slide 10: Consolidated Financial Position
Consolidated Financial Position (Billion yen) As the equity ratio remained at a high level, there is no special concern about the investment situation in the future Liabilities Liabilities 81.3 74.8 Assets Assets 123.7 136.3 Net assets Net assets 48.9 55.0 Equity ratio Equity ratio 39.2% 38.7% 2022年
Slide 11: Education Domain Financial Results
Education Domain Financial Results for the Fiscal Year Ended September 30, 2023 Focused on the following three businesses extensively supporting children’s learning, with an expanded service menu for working adults 1) Classroom and learning center: Operation of toddler classes and Gakken classrooms
Slide 12: Classroom and Learning Center Summary
Classroom and Learning Center Summary for the Fiscal Year Ended September 30, 2023 40.00 (Billion yen) 35.00 Net sales 35.08 Positives 31.49 31.43 -NE Holdings Co., Ltd. and Ichishin Holdings Co., Ltd. were consolidated 30.00 Classroom OP margin 12.73 2.7 ％ in 4Q -Steady growth in memberships for 25
Slide 13: Publishing and Content Summary
Publishing and Content Summary for the Fiscal Year Ended September 30, 2023 (Billion yen) Net sales Positives 35.00 31.53 32.36 30.81 Medical and nursing OP margin -Map/guide books of Arukikata. Co.,Ltd. 2.94 23.9 ％ 3.21 30.5 ％ continued to perform strongly 3.29 30.00 26.2 ％ -Steady performance of e
Slide 14: Kindergarten and School Summary
Kindergarten and School Summary for the Fiscal Year Ended September 30, 2023 (Billion yen) Net sales Positives 18.00 15.89 -“Tsunagaru (Making Connections) 14.36 13.58 Picture books,” core offerings in Social education OP Margin 16.00 1.05 22.5 ％ toddler business, is performing well 1.04 -Supplement
Slide 15: Healthcare and Nursing Domain Financial Results
Healthcare and Nursing Domain Financial Results for the Fiscal Year Ended September 30, 2023 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, deve
Slide 16: Healthcare and Nursing Summary
Healthcare and Nursing Summary for the Fiscal Year Ended September 30, 2023 90.00 78.58 (Billion yen) Positives Net sales 72.23 -New openings as scheduled 80.00 65.79 6.22 2.1 ％ → Elderly housing （13） 5.76 → Group homes (15) 2.1 ％ 70.00 Child raising support OP Margin → After-school 60.00 5.20 0.5 ％
Slide 17: Gakken 2023 Summary
Gakken 2023 Summary 17
Slide 18: Gakken 2023: Sustainable Improvement of Corporate Value
Gakken 2023 Establishment of a solid foundation for growth Education Healthcare Sustainable and Nursing Creation of new approaches to スクリーンショット 2022-11-04 14.52.20 Seek to be a top company Improvement of learning and a diverse range of learning opportunities contributing to development of sustainabl
Slide 19: Performance Trends for Three Years Covered Under Gakken 2023
Performance Trends for Three Years Covered Under Gakken 2023 In the FY 2021, both sales and profit targets were achieved (Billion yen) In the FY 2022, both sales and profit fell short of targets due in part to the Omicron outbreak and soaring utility costs, but revenue and profit continue to increas
Slide 20: Summary towards the New Medium-Term Management Plan Gakken 2025
Summary towards the New Medium-Term Management Plan Gakken 2025 -While we worked to establish a solid foundation for growth amid the turbulent changes in the environment such as the COVID-19 pandemic and accelerated birthrate decline, momentum was lost in the second half of the second year -The Heal
Slide 21: Supplementary Materials
Supplementary Materials 21
Slide 22: Trends of Net Sales
Trends of Net Sales (Billion yen) Compared with 164.1 FY2022 156.0 150.3 +5.2 % 140.6 143.6 107.0 99.0 102.2 95.9 86.9 90.1 80.2 80.7 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 *Numbers are rounded to the nearest decimal place. 22
Slide 23: Trends of Operating Profit
Trends of Operating Profit (Billion yen) 6.43 Compared with 6.24 6.17 FY2022 -4.0 % 5.08 4.52 3.65 3.38 2.73 2.25 2.08 1.93 1.60 0.28 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 *Numbers are rounded to the nearest decimal place. 23
Slide 24: Trends of Ordinary Profit
Trends of Ordinary Profit (Billion yen) Compared with 6.93 FY2022 6.48 -6.5 % 6.13 5.27 4.76 4.00 3.53 2.92 2.37 2.33 2.12 1.74 0.48 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 *Numbers are rounded to the nearest decimal place. 24
Slide 25: Trends of EBITDA
Trends of EBITDA* (Billion yen) Compared with 9.46 9.32 FY2022 9.09 -1.4 % 7.74 7.03 5.39 5.07 4.53 3.30 3.35 3.32 2.96 1.81 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 *A total of operating profit, depreciation, and goodwill amortization. *Numbers are
Slide 26: Summary of Results by Segment for the 4th Quarter
Summary of Results by Segment for the 4th Quarter (single quarter) (Billion yen) 4Q FY2022 (single quarter) 4Q FY2023 (single quarter) Segment Change（YoY） Results Results Operating Operating Operating Business Net sales profit Net sales profit Net sales profit Educational domain 18.83 1.14 22.22 1.9
Slide 27: No. of Members and No. of Classrooms
Classrooms and Learning centers No. of Members and No. of Classrooms In the learning center business, the number of students and classrooms increased, due to the NE Holdings and Ichishin Holdings joining the Group Gakken Classroom’s student recruitment and developing FC classrooms did not perform we
Slide 28: No. of New Publications and Rate of Returns
No. of New Publications and Rate of Returns Increase in number of new publications in how-to guide genre, driven by “Chikyu-no-Arukikata” Rate of publications returned during cumulative period deteriorated by 3.8％points year on year ＊1 Rate of publications returned No. of new publications during cum
Slide 29: No. of Hospitals using E-learning Programs for Nurses
No. of Hospitals using E-learning Programs for Nurses The number of contracting hospitals increased by 296 year on year 2,700 It is a characteristic of this business that there is a large increase in 3Q 2,647 as many hospitals start using these programs at the start of the new academic year in April
Slide 30: School Textbook Publication Schedule
School Textbook Publication 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 2019 2020 2021 20
Slide 31: DX Strategy: Group Direct Touchpoints
DX Strategy: Group Direct Touchpoints 80.4 The number of IDs obtained for individual services is approaching 800,000 We will promote collaboration between services to improve customers’ LTV 80.0 (in 10,000) 70.0 No. of Gakken IDs issued No. of e-mail addresses registered 60.0 No. of Gakken official
Slide 32: Plans and Progress of New Facility Openings
Plans and Progress of New Facility Openings (No. of developed facilities) ・Maintaining aggressive planned pace of new facility openings in response to an increase in demand due to growing elderly population and growing needs for after-school care ・Achieved 118% of the full-year target with business
Slide 33: Capacity Expansion and Improvement in Status of Operations
Capacity Expansion and Improvement in Status of Operations Trend in total number of units and maximum number of children Trend in occupancy rate and utilization rate Nursery schools Maximum no. of children Group homes for the elderly with dementia, etc. No. of units Elderly housing, etc. Group homes
Slide 34: No. of Facilities
No. of Facilities New facility openings are progressing well in all three businesses 631 Increase in child raising support facilities due mainly to winning contracts 600 to operate after-school children’s clubs Child raising support facilities (nursery schools, after-school children’s clubs, etc.) 5
Slide 35: Healthcare and Nursing Domain Occupancy Rate and Utilization Rate
Healthcare and Nursing Domain Occupancy Rate and Utilization Rate 20/03 20/09 21/03 21/09 22/03 22/09 23/03 23/09 Total no. of units 6,898 7,182 7,632 8,308 9,037 9,665 9,980 10,361 No. of Elderly housing occupied units 6,289 6,600 6,985 7,505 8,345 9,073 9,519 10,062 Occupancy rate 91.2% 91.9% 91.5
Slide 36: Education Domain Measures and Initiatives Under Gakken 2023
Education Domain Measures and Initiatives Under Gakken 2023 Good: Sufficient progress Despite challenges to create new approaches to learning and a diverse range of learning opportunities, Fair : Initiatives making progress, but effects insufficient next-generation foundation products and services h
Slide 37: Healthcare and Nursing Domain Measures and Initiatives Under Gakken 2023
Healthcare and Nursing Domain Measures and Initiatives Under Gakken 2023 Good: Sufficient progress Fair : Initiatives making progress, Seeking to be a top company, contributing to the development of sustainable towns, but effects insufficient we are promoting the improvement of human resources and q
Slide 38: Gakken Holdings Co., Ltd.
2-11-8 Nishigotanda, Shinagawa-ku, Tokyo, 141-8510 This document contains statements regarding business plans. These statements were prepared based on certain Gakken Holdings Co., Ltd. assumptions such as the economic environment and business policies as of the date of preparation. Please be aware,