Decollte Holdings Corporation · TSE:7372
Decollte — Q1 FY2023 Earnings Presentation
56 slides from Decollte's earnings presentation, Feb 3, 2023
Slide 1: Presentation Material of Results for First Quarter of Fiscal Year Ending September 2023
Presentation Material of Results for First Quarter of Fiscal Year Ending September 2023 February 3, 2023 Decollte Holdings Corporation
Slide 2: Table of Contents
Table of Contents １ Results for First Quarter of Fiscal Year P3 Ending September 2023 ２ Growth Strategy and Medium-Term P14 Management Plan ３ Company Highlights P30 ４ Structural Changes in the Wedding P40 Industry 5 Risk Information P46 6 Appendix P48 © Decollte Holdings Corporation 2
Slide 3: Results for First Quarter of Fiscal Year Ending September 2023
Results for First Quarter of Fiscal Year Ending September 2023 © Decollte Holdings Corporation 3
Slide 4: Performance Summary (First Quarter of Fiscal Year Ending September 2023)
Performance Summary (First Quarter of Fiscal Year Ending September 2023 (Consolidated)) Despite the impact of the eighth wave of COVID-19, unit price growth contributed greatly to performance. Revenue exceeded the first quarter of the previous year and record-high quarterly revenue was achieved on a
Slide 5: Change in Revenue from First Quarter of Previous Fiscal Year
Change in Revenue from First Quarter of Previous Fiscal Year (Consolidated) Revenue for the first quarter of the current consolidated fiscal year was 1.81 billion yen (+16.8% YoY) Growth of new photo wedding studios and existing studios (+4.6% YoY) contributed significantly to revenue growth. (Milli
Slide 6: Change in Operating Profit from First Quarter of Previous Fiscal Year
Change in Operating Profit from First Quarter of Previous Fiscal Year (Consolidated) Operating profit for first quarter of the current consolidated fiscal year totaled 539 million yen (+13.6% YoY). Increased expenses were absorbed by revenue growth centering on the studio business. (Millions of yen)
Slide 7: Analysis of Key Cost Variables
Analysis of Key Cost Variables Personnel expenses increased due to increased hiring and training to match studio increase and accelerated pace of openings. Increased advertising expenses but maintained flexible control in light of the infection status of COVID-19. (Millions of yen) 800 [Advertising
Slide 8: Change in Quarterly Results (Adjusted Operating Profit)
Change in Quarterly Results (Adjusted Operating Profit) Record-high first-quarter revenue despite the impact of the eighth wave of infection Adjusted operating profit also reached a record high thanks to contributions from studios opened in the previous fiscal year. Revenue Adjusted Operating Profit
Slide 9: Change in Performance KPIs: YoY Comparison of Existing Studios
Change in Performance KPIs: YoY Comparison of Existing Studios Due to expanded use of Live Retouch, increased number of costumes used, and increased use of high-priced costumes, etc., average spend at existing studios increased considerably by 18.9% year on year cumulatively, while net sales increas
Slide 10: Consolidated Cash Flow (CF)
Consolidated Cash Flow (CF) Operating CF increased by 570 million yen due to revenue growth during the busy seasons Balance of cash and deposits increased despite investment CF and financing CF burden We are preparing to open new studios from the second quarter onwards (Millions of yen) 2,000 168 1,
Slide 11: Summary of Consolidated Financial Position Statement
Summary of Consolidated Financial Position Statement (vs. Previous Fiscal Year-End) Increase in right-of-use assets and lease liabilities corresponding to rent for studios to be opened from the second quarter onwards. The equity ratio attributable to owners of the parent increased to 35.3% due to an
Slide 12: Forecast for FYE Sep. 2023
Forecast for FYE Sep. 2023 Revenue of 6.92 billion yen (+30.2% YoY) and operating profit of 1.23 billion yen (practically +25.2% YoY) with the opening of multiple HAPISTA in addition to growth of the photo wedding business. Forecast for Results of (Millions of yen) YoY change FYE Sep. 2023 FYE Sep.
Slide 13: Status of Growth Measures
Status of Growth Measures Implementation of new year’s card present campaign as first step of partnership with MIXI Group. Launch of new wedding photo business in collaboration with IBJ, a leading provider of services for marriage-seekers. Initiatives with MIXI Group Started Handling Korean Dress Br
Slide 14: Growth Strategy and Medium-Term Management Plan
Growth Strategy and Medium-Term Management Plan © Decollte Holdings Corporation 14
Slide 15: Growth Strategy Summary
Growth Strategy Summary In addition to steady growth of the photo wedding business, we will capture digital photo needs in the life event field and enhance life-time-value of customers for growth. 1 Growth of photo wedding business Continuous new studio openings Our target market (increase in number
Slide 16: Medium-Term Management Plan: Summary
Medium-Term Management Plan: Summary Accelerate growth of anniversary photo business “HAPISTA” alongside further growth of mainstay photo wedding service, creating the foundation of a life photo company. Medium-Term Management Plan (FYE Sep. 2023 to FYE Sep. 2025) Term Management Plan From a leading
Slide 17: Medium-Term Management Plan: P&L Summary
Medium-Term Management Plan: P&L Summary Revenue growth rate of 22-30% per year due to accelerated studio openings. Operating profit growth rate*4 of 25% to 35% despite investments accompanying new studio openings. FYE FYE FYE FYE (Millions of yen) Sep. 2022 Sep. 2023 Sep. 2024 Sep. 2025 (Actual) (P
Slide 18: Medium-Term Management Plan: Photo Wedding Service
Medium-Term Management Plan: Photo Wedding Service For the time being, we will step up studio openings in major metropolitan areas to capture growing demand in key markets. We will maintain an operating margin above 19% and a high growth rate ranging from 20-26%. FYE FYE FYE FYE (Millions of yen) Se
Slide 19: Capturing Photo Wedding Needs by Expanding Nationwide (1/3)
1 Growth of photo wedding business Capturing Photo Wedding Needs by Expanding Nationwide (1/3) Increasing both terminal studios and satellite studios in metropolitan areas based on dominant strategy. Dominant Strategy in Metropolitan Areas Terminal studio In metropolitan areas (capital area, Kinki
Slide 20: Capturing Photo Wedding Needs by Expanding Nationwide (2/3)
1 Growth of Photo Wedding Business Capturing Photo Wedding Needs by Expanding Nationwide (2/3) Promote opening studios in regional cities by lowering studio opening costs through the use of centralized operation. (FYE Sep. 2025 onward) Studios in Regional Cities As the number of studios increases,
Slide 21: Capturing Photo Wedding Needs by Expanding Nationwide (3/3)
1 Growth of Photo Wedding Business Capturing Photo Wedding Needs by Expanding Nationwide (3/3) Developing attractive photography plans and opening studios in tourist locations across Japan that attract many visitors to capture demand during the off-season and respond to growing domestic resort deman
Slide 22: Capturing Diversifying Wedding Needs by Focusing on Photos (1/4)
1 Growth of Photo Wedding Business Capturing Diversifying Wedding Needs by Focusing on Photos (1/4) Perceptions of marriage are changing faster amid the pandemic. The proportion of couples who choose not to have a ceremony and reception is increasing, and the proportion of photographic wedding cerem
Slide 23: Capturing Diversifying Wedding Needs by Focusing on Photos (2/4)
1 Growth of Photo Wedding Business Capturing Diversifying Wedding Needs by Focusing on Photos (2/4) Aiming to further expand the photo wedding market and acquire more clients by capturing demand from couples who use photography services of wedding ceremony/reception service providers and couples who
Slide 24: Capturing Diversifying Wedding Needs by Focusing on Photos (3/4)
1 Growth of Photo Wedding Business Capturing Diversifying Wedding Needs by Focusing on Photos (3/4) Increasing prices and capturing needs by providing a wide range of services, including activities (= experiences), with a focus on photos that cover all wedding- related content. Formats That Continue
Slide 25: Capturing Diversifying Wedding Needs by Focusing on Photos (4/4)
1 Growth of Photo Wedding Business Capturing Diversifying Wedding Needs by Focusing on Photos (4/4) Identifying changes in consumer demand for photography ahead of others, developing services in response to these, and ensuring we don’t miss out on capturing new needs (examples of new options). Photo
Slide 26: Capturing New Consumer Needs by Developing Services (1/3)
2 Accelerating Expansion into the Life Event Field Capturing New Consumer Needs by Developing Services According to Recent Trends (1/3) Accelerating business development of HAPISTA and enhancing life event field other than weddings. Increase the pace of new studio openings from FYE Sep. 2023 for ful
Slide 27: Capturing New Consumer Needs by Developing Services (2/3)
2 Accelerating Expansion into the Life Event Field Capturing New Consumer Needs by Developing Services According to Recent Trends (2/3) Leveraging technology and expertise cultivated in the photo wedding business to open studios and expand our high-quality anniversary photo business (HAPISTA), which
Slide 28: Capturing New Consumer Needs by Developing Services (3/3)
2 Accelerating Expansion into the Life Event Field Capturing New Consumer Needs by Developing Services According to Recent Trends (3/3) Launched NALU photo service for coming-of-age ceremonies and began commercialization. Beginning preparations to resume services for foreign tourists once restrictio
Slide 29: Future Outlook
Future Outlook Having sophisticated photo techniques at the core, we aim to be a “Life Photo Company” that provides people with photos they will want to keep forever and emotional experiences that will stay with them through Life Photo Company services delivering real value and that offers a place f
Slide 30: Company Highlights
Company Highlights © Decollte Holdings Corporation 30
Slide 31: Features and Strengths of Our Photo Weddings
Features and Strengths of Our Photo Weddings Decollte has built an encompassing business model and operation dedicated to photo weddings. The result is being capable to achieve both reliable, high-quality services and high profit margins. 1 Customer 2 Contract 3 Costume 4 Hair and 5 Shooting attract
Slide 32: Company Highlights: Summary
Company Highlights: Summary In-housing of online customer acquisition, professional staff, dedicated facilities and items, the sources of our photo wedding service’s competitive edge. Scaling up through growth will solidify our competitive edge. External environment of photo Our growth Sources of De
Slide 33: In-House Development of Professionals
1 In-House Development of Professionals In-House Development of Professionals Decollte has a competitive number of professionals as permanent employees based on our unique education program. Secure Many Professionals Our Strength in Hiring and Retaining Human Resources Number of Professionals and Pl
Slide 34: Unique Professional Development System
1 In-House Development of Professionals Unique Professional Development System We have built a unique educational curriculum that allows those who want to be professionals to acquire many skills in a short period of time, instead of the traditional teacher-apprentice system. It is directly linked to
Slide 35: In-House Development of Facilities/Items (e.g., Costumes)
2 In-House Development of Photo Shoot Facilities/Items (e.g., Costumes) In-House Development of Facilities/Items (e.g., Costumes) Taking advantage of our size (photo shooting for 24,000+ couples per year), we produce our own costumes, indoor gardens, etc. We generate cost competitiveness and increas
Slide 36: In-Housing of Online Marketing Function
3 In-Housing of Online Marketing Function Our Ability to Attract Customers Through Online Search/Social Media Attracting customers is key for photo weddings, which are special experiences. We excel in service websites and social media, which is the main media customers use for selection. Media Used
Slide 37: High Level of Customer Satisfaction for Our Services
3 In-Housing of Online Marketing Function 2 High Level of Customer Satisfaction for Our Services Our services are rated highly by users. The sharing of positive experiences through websites and 1 social media by users directly results in better recognition. 0 Strong Customer Satisfaction for Our Ser
Slide 38: Efficient Staffing to Cater for Busy Seasons and Off-Seasons
Our Competitive Edge Efficient Staffing to Cater for Busy Seasons and Off-Seasons While there is a great gap between the busy seasons and off-seasons for weddings, there is little difference between days of the week. Efficient staffing also enables us to capture demand during busy seasons. Percentag
Slide 39: Change in Operation Status/Productivity
Our Competitive Edge Change in Operation Status/Productivity Sales per photographer grew 11.6% YoY despite increasing headcount. We increased the number of photo planners (customer service) and operational efficiency through online customer service. Sales Per Photographer and Number of Photography C
Slide 40: Structural Changes in the Wedding Industry
Structural Changes in the Wedding Industry © Decollte Holdings Corporation 40
Slide 41: Proportion of Newly Married Couples Having Photo Weddings
Proportion of Newly Married Couples Having Photo Weddings The percentage of couples having photo weddings is high at 52.8%. The percentage who have photos taken by specialized companies like us is 25.1%, so there is considerable room for growth in the future. Number of couples who used specialized c
Slide 42: Changes in Number of Marriages and Photo Wedding Market
Changes in Number of Marriages and Photo Wedding Market The number of marriages is declining each year. However, the current size of the photo wedding market is around 52.1 billion yen, and it is expected to keep growing steadily. Change in Number of Marriages in Japan Size of Photo Wedding Market*¹
Slide 43: Wedding Industry Trends
Wedding Industry Trends Interest in having wedding ceremonies/receptions with the attendance of guests is trending downward. Interest in non-traditional formats of wedding such as photo weddings, wedding photo shoots on a separate day, and online weddings is growing. Google Search Trends for Traditi
Slide 44: Increasing Percentage of Couples with Separate Photo Shoot
Increasing Percentage of Couples with Separate Photo Shoot by Wedding Hall or Reception Vendor The proportion of couples who have photo shoots on a separate day is rising every year. The emergence of services meeting customer needs and couples’ desire to have photos that cannot be taken on the day o
Slide 45: Photo Wedding Needs among Couples Who Choose Not to Have a Ceremony
Existence of Photo Wedding Needs among Couples Who Choose Not to Have a Wedding Ceremony/Reception Photo weddings provide the experience of being a bride at a lower cost than a wedding ceremony. They are also attracting interest as a new wedding format since the experience can be preserved in photos
Slide 46: Risk Information
Risk Information © Decollte Holdings Corporation 46
Slide 47: Risk Information
Risk Information The main risks recognized as having the potential to materially impact achieving the company’s growth or executing its business plan, along with the countermeasures addressing them, are as shown below. For other risks, please refer to “Other Business Risks, Etc.” in the annual secur
Slide 48: Appendix
Appendix © Decollte Holdings Corporation 48
Slide 49: Cost Breakdown
Cost Breakdown Cost Breakdown (Photo Wedding Business) Advertising expenses Purchases 8.0% 11.0% Commissions expenses 2.0% Costume repair costs SG&A 1.4% Other expenses expenses 販売 8.9% 管理費 メイク Cost of sales 売上原価 Rent expenses 8.8% Total labor costs 25.1% Note: The studio cost breakdown (cost of sal
Slide 50: Changes in Annual Studio Openings and Total Number of Studios
Changes in Annual Studio Openings and Total Number of Studios (Unit: studios) 30 Total number 26 26 of studios 25 1 1 Pet*3 22 19 19 20 5 5 Anniversary*4 1 20 17 18 1 3 15 2 2 2 2 12 2 15 11 2 9 Wedding 7 1 10 1 20 20 5 1 17 17 16 17 18 15 2 2 13 5 10 11 7 8 5 2 2 0 2008 2009 2010 2011 2012 2013 201
Slide 51: Approximate Calculation Methods for Photo Wedding Market Size
Approximate Calculation Methods for the Ratio of Couples Using Specialized Companies, Wedding Halls, Etc. and the Size of the Photo Wedding Market Breakdown of the Number of Newly Married Couples Breakdown of the Number of Couples Having a Photo in 2018*1 Wedding in 2018*1 380,000 couples 244,000 co
Slide 52: Markets to Be Approached (TAM: Total Addressable Market)
Markets to Be Approached (TAM: Total Addressable Market) Life Photo Company Childbirth/childrearing Adolescence Wedding Family life Senior life Entrance/ Maternity Wedding End-of-life graduation photos anniversaries photos ceremonies Photo weddings Approx. Approx. Photogenic journey Approx. Approx.
Slide 53: Assumptions for Calculating Approximate Value of Each TAM (1/3)
Assumptions for Calculating Approximate Value of Each TAM (1/3) Number of people Total amount Event Category Unit price Total (100 millions of Calculation assumptions / source Age Gender (thousands of yen） people) The number of pregnant women is assumed to be equal to the number of 0-year-olds. Mate
Slide 54: Assumptions for Calculating Approximate Value of Each TAM (2/3)
Assumptions for Calculating Approximate Value of Each TAM (2/3) Number of people Total amount Event Category Unit price Total (100 millions of Calculation assumptions / source Age Gender (Thousands of yen） Couples) Photo weddings 168,500 yen 586 988 Source for price per photo wedding: “Zexy Kekkon T
Slide 55: Assumptions for Calculating Approximate Value of Each TAM (3/3)
Assumptions for Calculating Approximate Value of Each TAM (3/3) Number of people Total amount Event Category Unit price Total (100 millions of Calculation assumptions / source Age MF (thousands of yen） people) Dog 15,000 yen 7,152 1,073 The number of people indicates the number of households keeping
Slide 56: Disclaimer / Contact Us
Disclaimer This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Contact Us Contact information for Inquiries about This Presentation and Other