Kosaido Holdings Co.ltd. · TSE:7868
Kosaido Holdings Co.ltd — FY2024 Earnings Presentation
50 slides from Kosaido Holdings Co.ltd's earnings presentation, May 15, 2024
Slide 1: FY03/24 Financial Results Presentation
FY03/24 Financial Results Presentation Securities code: 7868 May 15, 2024
Slide 2: Contents
0 Contents 1 FY03/24 Highlights P. 2 - FY03/24 Summary - FY03/24 Consolidated Financial Results by Segment - Shareholder Return - Status of New Businesses Consolidated Financial Forecast and Dividend Forecast 2 P. 8 for FY03/25 - Consolidated Financial Forecast for FY03/25 - Dividend Forecast for FY
Slide 3: FY03/24 Highlights
FY03/24 Highlights 2
Slide 4: FY03/24 Summary
1-01 FY03/24 Summary Income from Profit-Generating Funeral 1. Further improve business performance Services Segment Full-year segment income YoY Expansion of the funeral hall Rate of Change (%) was completed! Steady growth in capacity Success 4.13 bn yen +84.8％ utilization 2. Invest for long-term gr
Slide 5: FY03/24 Consolidated Financial Results
1-02 FY03/24 Consolidated Financial Results The Company cleared the most difficult hurdle of Medium-Term Business Plan 3.0, which was to increase profit for the fiscal year ending March 31, 2024! ・ Full-year sales declined , while full-year operating profit increased significantly. ・ Profit attribut
Slide 6: FY03/24 Financial Results Summary by Business Segment
1-03 FY03/24 Financial Results Summary by Business Segment (Millions of yen) Net sales YoY change Consolidated Compared to forecast Operating profit YoY change Consolidated Compared to forecast Financial Financial Change Forecast for Change Change Forecast for Change FY03/24 FY03/23 Change FY03/24 C
Slide 7: Shareholder Return | Dividend
1-04 Shareholder Return | Dividend Dividend for FY03/24 The year-end dividend has been revised (payout ratio 35%) due to the full-year consolidated performance results Increase in dividend 15.0% 35.0% payout ratio FY03/23 results FY03/24 forecast Dividend per share Record date End of Q2 End of FY
Slide 8: Status of New Businesses
1-05 Status of New Businesses Funeral Business * … 2 companies: Kosaido Lifewell, Gran Ceremo Tokyo - FY03/24 Performance (2 companies* total) (Millions of yen) Q1 Q2 Q3 Q4 Full year Diff. from Diff. from Diff. from Diff. from Diff. from Diff. from Diff. from Diff. from Diff. from Diff. from Actual
Slide 9: FY03/25 Financial Forecast and Dividend Forecast
FY03/25 Financial Forecast and Dividend Forecast 8
Slide 10: Consolidated Financial Forecast for FY03/25
2-01 Consolidated Financial Forecast for FY03/25 FY03/25 (Millions of yen) YoY Prior FY results Full-year forecast (recently announced) Change Change (%) Net sales 39,700 36,203 3,497 9.7 Operating profit 8,000 6,133 1,867 30.4 Ordinary profit 7,750 6,121 1,629 26.6 Profit attributable to owners of
Slide 11: Financial Forecast for FY03/25 by Segment
2-02 Financial Forecast for FY03/25 by Segment FY03/25 (Millions of yen) YoY Financial forecast Prior FY results Change Change (%) Net sales 39,700 36,203 3,497 9.7 Public Funeral Services Segment 6,200 5,536 664 12.0 Profit-Generating Funeral Services Segment 10,450 9,284 1,166 12.6 Asset Consultin
Slide 12: Dividend Forecast for FY03/25
2-03 Dividend Forecast for FY03/25 FY03/25 Dividend per share Record date End of Q2 End of FY Total 6.60 yen * － FY03/24 results (29.47 yen) (33.0 yen) (62.47 yen) (Planned) (Planned) FY03/25 forecast 6.37 yen 6.37 yen 12.74 yen * Dividend per share after stock split effective December 1, 2023 Figur
Slide 13: Medium-Term Business Plan 4.0 (FY2024 - FY2026)
3 Medium-Term Business Plan 4.0 (FY2024 - FY2026) 12
Slide 14: Medium-Term Business Plan 4.0 Basic Policy
3-01 Medium-Term Business Plan 4.0 Basic Policy 1. Further improve business performance - Maximize revenue from funeral halls expanded in FY2023 - Grow revenues from the Asset Consulting Business 2. Invest for long-term growth - Begin taking concrete steps to expand funeral halls on existing sites -
Slide 15: Medium-Term Business Plan 4.0 Performance Targets
3-02 Medium-Term Business Plan 4.0 Performance Targets (Millions of yen) Medium-Term Business Plan 4.0 FY03/22 FY03/23 FY03/24 results results results FY03/25 FY03/26 FY03/27 plan plan plan Net sales 35,361 36,668 36,203 39,700 41,930 44,000 Operating profit 3,729 4,280 6,133 8,000 8,800 9,400 Ordin
Slide 16: Performance Targets by Segment
3-03 Medium-Term Business Plan 4.0 Performance Targets by Segment (Millions of yen) Medium-Term Business Plan 4.0 FY03/23 FY03/24 results results FY03/25 FY03/26 FY03/27 plan plan plan Public Funeral Net sales 5,561 5,536 6,200 6,380 6,570 Services Operating profit 1,015 1,102 1,330 1,380 1,430 Prof
Slide 17: Improve return on capital
3-04 Improve return on capital ROE Target Strengthen profitability Exceeds ✓ New funeral hall expansion 12.0% ✓ Expantion of Asset Consulting business 11.16% Asset efficiency improvement 10.57% 10.00% 10.27% ✓ Reduction of total assets, etc. 5.00% Improve profitability Improve 2.74% ROE 0.00% Shareh
Slide 18: Growth strategy | Long-term investment plan (funeral hall expansion)
3-05 Growth strategy | Long-term investment plan (funeral hall expansion) Outline of Expansion Plan for Funeral Halls Construction process will begin in October 2024. Increase of the total 117 halls Kirigaya Funeral Home Ochiai Funeral Home Yotsugi Funeral Home (Shinagawa-ku, Tokyo) (Shinjuku-ku, To
Slide 19: Medium-Term Business Plan + Future Expansion of Funeral Halls
3-06 Medium-Term Business Plan 4 + Future Expansion of Funeral Halls (Billions of yen) 13.4 Consolidated Operating Profit Growth 12.5 12.7 13.2 12.4 Medium-Term 12.0 Business Plan 4.0 10.8 3.8 4.0 9.9 3.3 9.7 2.6 3.0 3.1 9.4 1.4 0.27 0.5 8.8 8.0 6.1 4.3 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.4 9.4 8.8 3.
Slide 20: Growth strategy | Expansion of asset consulting business
* The agreement with SBI Holdings, Inc. on capital and business alliance in the Asset Consulting business and the disposal of treasury stock to SBI Holdings through a third-party allotment were disclosed on March 12, 2024. 3-07 Growth strategy | Expansion of asset consulting business [Collaboration
Slide 21: Expanding the Business of the Asset Consulting Segment
3-08 Recognizing Challenges｜Expanding the Business of the Asset Consulting Segment Performance Plan for the Asset Consulting Segment (Millions of yen) FY03/24 FY03/25 FY03/26 FY03/27 results plan plan plan Net sales 459 700 1,400 1,400 Operating profit 286 500 1,000 1,000 The business of this segmen
Slide 22: Shareholder Return: Dividend plan
3-09 Shareholder Return Dividend plan Secure a dividend payout ratio of about 35%, with a future target of 40%. (Millions of yen) FY03/24 FY03/22 FY03/23 FY03/25 FY03/26 FY03/27 results results results plan plan plan (planned) Current net profit 3,643 4,042 4,895 5,240 6,000 6,440 - 221 796 917 1,05
Slide 23: Shareholder Return: Progressive dividends
3-10 Shareholder Return Introduction of progressive dividends During the period of the Medium-Term Business Plan, the dividend per share will be based on the actual dividend per share for the fiscal year ended March 31, 2024, and will not be reduced. Target a dividend payout ratio of 40% and aim
Slide 24: Business Segment Summary
3-11 Business Segment Summary ■ Public Funeral Services Segment Carry out our social mission for the cremation business and provide greater convenience for Tokyo’s residents ■ Profit-Generating Funeral Services Segment Began work on a funeral hall expansion on the existing site. Contributing to
Slide 25: Change of Representative
Change of Representative * To be elected at the 60th Annual General Meeting of Shareholders to be held on June 27, 2024 24
Slide 26: Message from the President-Elect
4-01 Change of Representative Message from the President-Elect (planned) [Greetings] Greetings to all shareholders and investors. My name is Masahiko Maekawa, and I will be joining the Kosaido Group in June. After starting my career as a banker, I gained an experience as an economist and analyst, an
Slide 27: Appendix
Appendix 1. Details of FY03/24 Results A 2. ESG Reporting 3. Company Overview 26
Slide 28: A1-01 Quarterly Trend (Net Sales)
A1-01 Quarterly Trend (Net Sales) • Q4 net sales increased 6.2% YoY. Tokyo Hakuzen’s new funeral halls maintained high occupancy rates and contributed to revenue growth. On the other hand, the Information and HR segments failed to grow. (Millions of yen) 12,000 11,127 10,469 1,362 10,000 9,711 9,346
Slide 29: A1-02 Quarterly Trend (Cost of Sales)
A1-02 Quarterly Trend (Cost of Sales) • Q4 cost of sales decreased year on year (-745 million yen, -10.5 pt cost of sales ratio) • Cost reductions due to lower sales and continued fixed cost reductions in the Information Segment (Millions of yen / %: Cost of sales ratio) 8,000 6,796 6,397 (64.9%) 7,
Slide 30: A1-03 Quarterly Trend (SG&A Expenses)
A1-03 Quarterly Trend (SG&A Expenses) • Q4 SG&A expenses increased year on year (+766 million yen, +5.8 pt SG&A expenses ratio) • Stock compensation expense (812 million yen) related to one-time stock options was a factor in the increase. 3,000 (Millions of yen / %: SG&A expense ratio) 2,574 (23.1%)
Slide 31: A1-04 Quarterly Trend (Number of Employees)
A1-04 Quarterly Trend (Number of Employees) • Review personnel in Information and HR and promote business optimization (Number of employees / %: Composition ratio) * Numbers inside parentheses indicate YoY change 1,200 1,127 1,129 1,117 1,116 1,101 1,100 1,077 1,074 (-1) 62 58 5.1% 65 5.7% 76 6.8% 7
Slide 32: A1-05 Quarterly Trend (Operating Profit by Segment)
The method for booking management guidance fees for Group companies has been changed effective from the first quarter of Quarterly Trend the current fiscal year. These fees, which were included in corporate expenses as an adjustment, are now booked as operating expenses for each Group company of the
Slide 33: A1-06 Q4 Analysis of Change in Operating Profit
A1-06 Q4 FY03/24 Analysis of Change in Operating Profit (Major Items) • Information and HR segments income decreased year on year while Profit-Generating Funeral Services income increased significantly. Overall profit increased due to cost reductions in the Information and HR segments despite the re
Slide 34: A1-07 Consolidated Balance Sheet
A1-07 Consolidated Balance Sheet (Millions of yen) Difference as of March 2023 March 2024 quarter end Current assets 27,998 34,844 7,060 Cash and deposits 18,699 18,974 275 Notes and accounts receivable–trade 5,810 5,410 (400) Non-current assets 43,134 42,657 (477) Property, plant and equipment 35,8
Slide 35: A1-08 Public Funeral Services Business Income & Expenditures
A1-08 Public Funeral Services Business Income & Expenditures | Q4 FY03/24 The Public Funeral Services Business is a business that has a significant amount of public interest and requires permanence and non-profitability Increase in business Increase in transparency stability ■ The Company’s responsi
Slide 36: A2-01 ESG Activities Report
A2-01 ESG Activities Report The purpose of the Kosaido Holdings ESG Activity Report is to provide shareholders, investors, business partners, and a wide range of other stakeholders with an understanding of the Company’s approach and concrete action to further sustainability. The Kosaido Group SDGs D
Slide 37: A2-02 Social Responsibility of the Cremation Business
ESG Reporting [Society] A2-02 - The Social Responsibility of the Cremation Business The Company conducts our business based on the spirit of “Kosai,” Ochiai Funeral Home Machiya Funeral Home Yotsugi Funeral Home which means “contributing to society at large.” Especially in Tokyo Horinouchi Funeral H
Slide 38: A2-03 Social Responsibility of the Cremation Business
ESG Reporting [Society] A2-03 - The Social Responsibility of the Cremation Business Social Responsibility of the Cremation Business in a High-Death Society Both local communities and Japanese society as a whole In 40 years, the number of deaths in Tokyo are facing a high number of deaths, and that f
Slide 39: A2-04 Estimated Deaths
ESG Reporting [Society] A2-04 - The Social Responsibility of the Cremation Business State of the Population | Estimated Deaths Nationwide Tokyo Unit: 10,000 ppl Unit: 10,000 ppl Nationwide Actual Estimated Tokyo Nationwide: Statistics Bureau, Ministry of Internal Affairs and Communications; National
Slide 40: A2-05 Tokyo Hakuzen's Actions
ESG Reporting [Society] A2-05 - The Social Responsibility of the Cremation Business Tokyo Hakuzen’s Actions Outside the cremation furnaces at Yotsugi Funeral Home ■ Cremation technology that ensures a smooth funeral service while fulfilling a social responsibility. While many crematoriums use furnac
Slide 41: A2-06 ESG Reporting [Environment]
A2-06 ESG Reporting [Environment] Disclosure Based on the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations In addition to endorsing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), in 2022, in response to increasing greenhouse gas emiss
Slide 42: A2-07 ESG Reporting [Environment]
A2-07 ESG Reporting [Environment] The "Participatory Employee Eco Program" is live (beginning in October 2023) In October 2023, we launched the "Participatory Employee Eco Program" with the aim of raising awareness for environmental issues and encouraging participation in specific decarbonization in
Slide 43: A2-08 ESG Activity Reporting [Governance]
A2-08 ESG Activity Reporting [Governance] Aiming to maximize shareholder value, sustainably increase enterprise value, and earn society's trust, we not only boost profitability, but also emphasize shareholder rights, implement efficient, fair, and transparent management practices, and ensure complia
Slide 44: A3-01 Company Overview
A3-01 Company Overview Company KOSAIDO Holdings Co., Ltd. Establishment January, 1949 name Net sales 36,203 million yen Total assets 77,502 million yen Net assets 47,539 million yen (FY03/24) (as of March 31, 2024) (as of March 31, 2024) Representative Hiroshi Kurosawa, President & CEO Number of emp
Slide 45: A3-02 History
A3-02 History 2022 Launched funeral services - Kosaido Lifewell - Gran Ceremo Tokyo 2021 Transitioned to a holding company structure 1984 Tokyo Hakuzen joined the Group (Started end-of-life business) 1970 Founded Japan’s first computer typesetting company 2013 2023 Established Vietnam subsidiary Lau
Slide 46: A3-03 Mission, Vision, and Value
A3-03 Mission, Vision, and Value MISSION Further enrich 100-year lives. VISION A company that creates myriad “thank yous” Provide innovative services that foster overflowing VALUE gratitude through individual challenges and strong organizational connections Based on our management philosophy of “Kos
Slide 47: A3-04 KOSAIDO Group
[Main businesses] Crematory operation and End-of-life business A3-04 KOSAIDO Group provision of funeral halls Funeral services End-of-life business Tax, real estate & financial services Further enrich 100-year lives. Information Solutions Business [Main businesses] Offset printing (publishing, comme
Slide 48: A3-05 Kosaido Group's SDGs Declaration
A3-05 Kosaido Group’s SDGs Declaration Economy Society Provide wide-ranging support “Live in harmony with others” To put our corporate philosophy of Value creation for sustainable economic Developing equitable and diverse “contributing to society at large” activities communities into action, we have
Slide 49: A3-06 Contact
A3-06 Contact If you have any comments or questions about this presentation or other IR- related topics, please use the contact form at the following URL to contact us. In addition, Facilities Tours for Institutional Investors and Analysts are held accordingly (funeral home tours are conducted by To
Slide 50: Further enrich 100-year lives.
Further enrich 100-year lives. <Precautionary note regarding this material> Please be aware that actual results may differ significantly from these projections due to variabilities such as uncertainties inherent in judgements and assumptions, future company operations, and changes in internal and ex