Kosaido Holdings Co.ltd. · TSE:7868
Kosaido Holdings Co.ltd — FY2023 Earnings Presentation
46 slides from Kosaido Holdings Co.ltd's earnings presentation, May 12, 2023
Slide 1: Financial Results Presentation
FY03/23 Financial Results Presentation Securities code: 7868 May 12, 2023
Slide 2: Contents
0 Contents 1 FY03/23 Highlights P.2 ・FY03/23 Consolidated Financial Results ・Shareholder Return | FY03/23 Dividend ・Segment Performance ・New Business 2 Consolidated Financial Forecast and Dividend Forecast for FY03/24 P.10 ・Consolidated Financial Forecast for FY03/24 ・Consolidated Dividend Forecast
Slide 3: FY03/23 Highlights
FY03/23 1 Highlights 2
Slide 4: FY03/23 Consolidated Financial Results
1-01 FY03/23 Consolidated Financial Results • The Group's consolidated business performance improved in profitability • We aim for further growth based on this continuous, steady revenue base (Millions of yen) YoY change FY03/23 Compared to forecast FY03/24 initial FY03/23 FY03/22 performance perfor
Slide 5: Shareholder Return | Dividend
1-02 Shareholder Return | Dividend Revisions to FY03/23 dividend forecast ✓ Year-end dividend has been revised (payout ratio 15%) due to the full-year consolidated performance results. Dividend per share Record date End of Q2 End of FY Total FY03/22 results 0.00 yen 0.00 yen 0.00 yen FY03/23 results
Slide 6: FY03/23 Financial Results Summary by Business Segment
1-03 FY03/23 Financial Results Summary by Business Segment (Millions of yen) Net sales YoY change Operating profit YoY change Percentage Percentage FY03/23 FY03/22 Change FY03/23 FY03/22 Difference (%) (%) Funeral Services 11,943 9,384 2,559 27.3 4,200 3,233 967 29.9 Information 18,047 19,120 -1,073
Slide 7: FY03/23 Funeral Services Segment (YoY)
1-04 FY03/23 Funeral Services Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Percentage Percentage FY03/23 FY03/22 Change FY03/23 FY03/22 Change (%) (%) Funeral Services 11,943 9,384 2,559 27.3 4,200 3,233 967 29.9 Operating environment • Despite the continuing tren
Slide 8: FY03/23 Information Segment (YoY)
1-05 FY03/23 Information Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Percentage Percentage FY03/23 FY03/22 Change FY03/23 FY03/22 Change (%) (%) Information 18,047 19,120 -1,073 -5.6 833 729 104 14.3 Operating environment • Demand for publication printing continu
Slide 9: FY03/23 HR Segment (YoY)
1-06 FY03/23 HR Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Percentage Percentage FY03/23 FY03/22 Change FY03/23 FY03/22 Change (%) (%) HR 6,677 6,856 -179 -2.6 133 480 -347 -72.3 Operating environment • As socioeconomic activity recovered, recruitment demand rem
Slide 10: New Business
1-07 New Business Funeral Business (Millions of yen) ・FY03/23 Performance (two companies combined) Q1 Q2 Q3 Q4 Full year FY03/24 Plan Actual Plan Actual Plan Actual Plan Actual Plan Actual Full-year plan Net sales 17 44 97 210 373 376 401 383 890 1,013 1,490 Operating profit -125 -60 -81 -39 119 16
Slide 11: FY03/24 Financial Forecast and Dividend Forecast
FY03/24 2 Financial Forecast and Dividend Forecast 10
Slide 12: Consolidated Financial Forecast for FY03/24
2-01 Consolidated Financial Forecast for FY03/24 FY03/24 (Millions of yen) Full-year YoY Prior FY results forecast (recently announced) Change % Net sales 40,000 36,668 3,332 9.1 Operating profit 6,360 4,280 2,080 48.6 Ordinary profit 6,110 4,185 1,925 46.0 Profit before income taxes 6,110 4,071 2,0
Slide 13: Consolidated Financial Forecast for FY03/24 | Quarterly
2-02 Consolidated Financial Forecast for FY03/24 | Quarterly (Millions of yen) Q1 Q2 Prior FY YoY Prior FY YoY Forecast Forecast results Change % results Change % Net sales 7,164 7,832 -668 -8.5 Net sales 8,796 8,656 140 1.6 Operating profit 295 467 -172 -36.8 Operating profit 931 730 201 27.5 Ordin
Slide 14: Consolidated Financial Forecast for FY03/24 | Quarterly by Segment
Note: Changes to reported segments will occur in FY03/24. The previous fiscal year’s results were calculated based on the currently available information and are subject to change. 2-03 Consolidated Financial Forecast for FY03/24 | Quarterly by Segment (Millions of yen) Prior FY YoY Prior FY YoY Pla
Slide 15: Consolidated Dividend Forecast for FY03/24
2-04 Consolidated Dividend Forecast for FY03/24 FY03/24 Dividend per share Record date End of Q2 End of FY Total FY03/23 results 7.75 yen 13.50 yen 21.25 yen (Planned) (Planned) FY03/24 forecast 23.65 yen 23.65 yen 47.30 yen As per Medium-Term Business Plan 2.0 (details announced May 21, 2022), the
Slide 16: Medium-Term Business Plan 3.0
Medium-Term 3 Business Plan 3.0 15
Slide 17: Performance Targets
3-01 Performance Targets Medium-Term Business Plan 3.0 (Millions of yen) Medium-Term Business Plan 3.0 FY03/22 FY03/23 results results FY03/24 FY03/25 FY03/26 Forecast Plan Plan Net sales 35,361 36,668 40,000 42,100 43,800 Operating profit 3,729 4,280 6,360 7,970 8,710 Ordinary profit 3,610 4,185 6,
Slide 18: Basic Policy
3-02 Basic Policy 1. Further improve business performance － Double earnings at funeral halls and more － Optimize existing business (Details under “Business Segment Summary” on P.29) 2. Invest for long-term growth － Explore large M&A deals － Make Asset Consulting Segment profitable 3. Further enhance
Slide 19: Operating Profit and Current Net Profit Trends
3-03 Operating Profit and Current Net Profit Trends (Millions of yen) Executing the Medium-Term Business Plan will book steady, continuous current net profit 10,000 8,710 7,970 8,000 6,360 6,000 6,000 5,500 4,280 4,500 3,729 4,042 4,000 3,643 3,271 2,561 2,181 2,250 2,328 2,017 2,000 854 0 2017.3 20
Slide 20: Overview of Medium-Term Business Plan 3.0
3-04 Overview of Medium-Term Business Plan 3.0 Goal: growth by adding funeral halls (100 million yen) In FY03/26, we aim to make ’23.3 ’24.3 ’25.3 ’26.3 additional revisions to the Medium-Term More funeral halls Further expansion Business Plan for “rebirth” through large M&A Operating profit 42 60 7
Slide 21: Long-Term Outlook: Become the #1 brand for super-aging Japan
3-05 Long-Term Outlook Funeral Services Inheritance Consulting Nursing & Medical Care Cemetery sales, other business Kosaido Lifewell ancillary to funeral Tokyo Hakuzen Anshin Gran Ceremo Tokyo Support M&A services Funeral Nursing-care planning funds Nursing homes & services services Purchase & brok
Slide 22: Major Changes from Medium-Term Business Plan 2.0 to 3.0
3-06 Major Changes from Medium-Term Business Plan 2.0 to 3.0 (Millions of yen) FY03/23 FY03/24 FY03/25 FY03/26 Total Plan Plan Plan Plan Net sales 890 1,619 2,239 4,748 - Plan 2.0 Operating profit 40 275 485 800 - Net sales - 1,490 1,790 3,280 2,150 Funeral business Plan 3.0 Operating profit - 150 1
Slide 23: Comparison with Medium-Term Business Plan 2.0
3-07 Comparision with Medium-Term Business Plan 2.0 (Millions of yen) FY03/22 FY03/23 FY03/23 FY03/24 FY03/25 FY03/26 Results (ref) Results Plan Plan Plan Plan Existing business 4,442 5,203 4,730 5,517 6,882 Medium- Funeral Term services 0 -37 40 275 485 Business Plan 2.0 Adjustments, etc. -713 -886
Slide 24: Change in Operating Profit | FY03/23 FY03/24
3-08 Change in Operating Profit | FY03/23 FY03/24 (Millions of yen) +250 ＋286 +307 Started asset Other +150 HR Segment 6,360 cost optimization, consulting change Information FY03/24 etc. business operating profit ＋960 Segment Higher operating cost optimization, profit from etc. -60 additional funera
Slide 25: Growth Strategy | Funeral Hall Business
3-09 Growth Strategy｜Funeral Hall Business Note: Kosaido Breakdown of Funeral Hall Used for 70,000 Cremations * research 2 Kosaido placement and cremation (no ’24.3 funeral) Kosaido funeral halls used 7,000, 6,000, 10,000 8% 10% , 14% Kosaido funeral hall 20,000, Other usage 14,000, 14,000, 29% comp
Slide 26: Asset Consulting Business
3-10 Asset Consulting Business Tokyo Hakuzen Advertising (Funeral home Tokyo Hakuzen Anshin Support operations) (Asset Consulting) Operations Targeted sales ・Real estate-backed loans for paying taxes, etc. ・Real estate purchases Funeral home visitors: 700,000 per year Kosaido Lifewell Gran Ceremo To
Slide 27: Shareholder Return
3-11 Shareholder Return Dividend plan Under the Medium-Term Business Plan, the expected goal is a steady dividend payout ratio of 30% (Millions of yen) FY03/22 FY03/23 FY03/24 FY03/25 FY03/26 Results Results Forecast Plan Plan (planned) Current net profit 3,643 4,042 4,500 5,500 6,000 Target dividen
Slide 28: Changes to Segment Information
3-12 Changes to Segment Information Business segments have been changed to clarify the growth and management status of each business. (Scheduled to begin in FY03/24). Before change After change ■ Funeral Services Segment ■ Public Funeral Services Segment Split ■ Profit-Generating Funeral Services Se
Slide 29: Public Funeral Services Business Income & Expenditures
Public Funeral Services Business Income & Expenditures | 3-13 FY03/23 Full-Year Estimate The Public Funeral Services Business is a business that by its nature has a significant amount of public interest and requires permanence and non-profitability. Increased transparency Increased business stabilit
Slide 30: Business Segment Summary
3-14 Business Segment Summary ■ Public Funeral Services Segment ✓ Carry out our social mission and provide greater convenience for Tokyo’s residents. ■ Profit-Generating Funeral Services Segment ✓ Add funeral halls and increase income. ■ Asset Consulting Segment ✓ After a strong start, grow into a b
Slide 31: Overall Funding Plan
3-15 Overall Funding Plan (Millions of yen) FY03/23 FY03/24 FY03/25 FY03/26 Results Plan Plan Plan Operating cash flow 6,293 6,800 8,100 9,100 Investment cash flow -3,936 -4,800 -6,100 -7,100 Debt containment -5,121 -2,000 -2,000 -2,000 Dividend -221 -1,030 -1,500 -1,700 End of FY cash balance 18,63
Slide 32: Appendix
Appendix A 1. Details of FY03/23 Results 2. Company Introduction 31
Slide 33: A1-01 Quarterly Trend (Net Sales)
A1-01 Quarterly Trend (Net Sales) • Despite higher sales in the Funeral Services Segment, Q4 net sales declined 8.7% year on year due to the reactionary decrease in COVID-19-related BPO projects in the Information and HR segments (Millions of yen) 14,000 11,470 12,000 10,469 9,710 9,711 10,000 8,996
Slide 34: A1-02 Quarterly Trend (Cost of Sales)
A1-02 Quarterly Trend (Cost of Sales) • Q4 cost of sales decreased year on year (-896 million yen, -2.2 pt cost of sales ratio) • Thorough cost control reduced cost of sales for the full year in FY03/23. (Millions of yen / %: Cost of sales ratio) 9,000 7,692 8,000 (67.1%) 6,852 6,796 (70.6%) 6,397 (
Slide 35: A1-03 Quarterly Trend (SG&A Expenses)
A1-03 Quarterly Trend (SG&A Expenses) • Q4 SG&A expenses decreased year on year (-144 million yen, +0.3 pt SG&A expenses ratio) • Q4 Taxes and dues were affected by pro forma standard taxation adjustments accompanying capital reductions. (Millions of yen / %: SG&A expense ratio) 2,500 2,086 2,097 2,
Slide 36: A1-04 Quarterly Trend (Number of Employees)
A1-04 Quarterly Trend (Number of Employees) • Strengthened human resources in anticipation of medium- to long-term growth in the Funeral Services segment • From Information to Funeral Services |Shifting employees to growth areas 2020.9 (Number of employees / %: Composition ratio) ★ Closed the * Numb
Slide 37: A1-05 Quarterly Trend (Operating Profit by Segment)
A1-05 Quarterly Trend (Operating Profit by Segment) • Operating profit increased 2.1% year on year due in part to the growth of the funeral hall business, reflecting the increasing number of visitors in the Funeral Services segment, despite a reactionary decrease in COVID-19-related BPO projects. (M
Slide 38: A1-06 Q4 FY03/23: Analysis of Change in Operating Profit
A1-06 Q4 FY03/23: Analysis of Change in Operating Profit (Major Items) • The year-on-year increase in Funeral Services sales failed to offset declines in Information and HR sales, but profit did increase after lower expenses associated with lower sales (Millions of yen) +837 Increased sales in Funer
Slide 39: A1-07 Consolidated Balance Sheet
A1-07 Consolidated Balance Sheet (Millions of yen) March 2022 March 2023 Difference Current assets 31,350 27,998 -3,352 Cash and deposits 21,662 18,699 -2,963 Notes and accounts receivable– 7,131 5,810 -1,321 trade Non-current assets 42,380 43,134 754 Property, plant and equipment 35,820 35,807 -13
Slide 40: A-01 Company Overview
A-01 Company Overview Company Establish- name KOSAIDO Holdings Co., Ltd. ment January 1949 36,668 71,134 41,434 Net sales million yen Total assets million yen Net assets million yen (as of March 31, (as of March 31, (FY03/23) 2023) 2023) Represent- ative Hiroshi Kurosawa, President & CEO Number of e
Slide 41: A-02 History
A-02 History Kosaido Group 2021 Transitioned to a holding 1984 company structure Tokyohakuzen joined the Group (Started ending-related business) 1970 2022 Founded Japan’s first Launched Funeral Planning Services computer typesetting company (Kosaido Lifewell, Gran Ceremo Tokyo) 2013 Established Viet
Slide 42: A-03 Mission, Vision, and Value
A-03 Mission, Vision, and Value MISSION Further enrich 100-year lives VISION A Company that creates myriad “thank yous” Provide innovative services overflowing with VALUE gratitude through individual challenges and strong organizational connections. Based on our management philosophy of “Kosai,” whi
Slide 43: A-04 KOSAIDO Group
[Main businesses] A-04 KOSAIDO Group Crematory operation and provision of funeral halls Ending-related Business Funeral planning services Ending-related business Further enrich 100-year lives. Information Solution Business [Main businesses] Offset printing (publishing, commercial) Newspaper printing
Slide 44: A-05 KOSAIDO Group's SDGs Declaration
A-05 KOSAIDO Group’s SDGs Declaration Economy Society Providing wide-ranging support Live in harmony with others Value creation for Developing equitable and diverse communities To put our corporate philosophy of sustainable economic activities In the coming era where people live for 100 years, “cont
Slide 45: A-06 Contact
A-06 Contact If you have any comments or questions about this presentation or other IR-related topics, please use the inquiry form at the following URL to contact us. Inquiry Form URL: https://www.kosaido.co.jp/contact/ Copyright 2023 KOSAIDO Holdings Co., Ltd. All Rights Reserved. 44
Slide 46: Further enrich 100-year lives
Further enrich 100-year lives <Precautionary note regarding this material> The figures included in the financial forecast and other sections of this material are based on judgements and assumptions made by the Company according to currently available information. Please be aware that actual results