Duskin Co., Ltd. · TSE:4665
Duskin — H1 FY2014 Earnings Presentation
40 slides from Duskin's earnings presentation, Nov 7, 2014
Slide 1: Financial Report
Six-month Period Ended Sept. 30, 2014 Financial Report Duskin Co., Ltd. November 7, 2014
Slide 2: Table of Contents
Table of Contents ■Financial Summary ■Forecasts and Actual Results Consolidated Financial Summary ・・・・・・・・・ 2 Forecasts and Actual Results for the First Half ・ 24 Sales Summary ・・・・・・・・・・・・・・・・・・・・・・・・・ 3 Operating Income Summary ・・・・・・・・・・・・・・ 5 ■FY2014 Forecast Ordinary Income Summary ・・・・・・・・・・・・
Slide 3: Financial Summary
Six-month Period Ended Sept. 30, 2014 Financial Summary
Slide 4: Consolidated Financial Summary
Financial Summary Consolidated Financial Summary Consolidated Results (millions of yen) Reference Six months Six months Increase/Decrease ended Sept. 30, 2013 ended Sept. 30, 2014 FY2013 Amount % ended Mar. 31, 2014 Sales 83,310 83,631 +321 +0.4 167,745 Operating Income 4,351 1,858 - 2,492 -57.3 6,6
Slide 5: Sales Summary (1)
Financial Summary Sales Summary (1) Consolidated Sales Sales - 2nd half Sales - 1st half (millions of yen) 250,000 200,000 177,320 171,118 168,163 167,745 150,000 〔Forecast〕 89,520 85,718 86,074 84,434 86,868 100,000 50,000 87,800 85,399 82,088 83,310 83,631 0 Mar. 2011 Mar. 2012 Mar. 2013 Mar. 2014
Slide 6: Sales Summary (2)
Financial Summary Sales Summary (2) Consolidated Sales 83,631 million yen 321 million yen (0.4%) increase ≪ Major Factor contributing to sales ≫ Sales of Chugai Sangyo Co., Ltd., included in the total sales, starting in FY2014 1Q Approx. 700 mil. yen 82,888 million yen 421 million yen (0.5%) decreas
Slide 7: Operating Income Summary (1)
Financial Summary Operating Income Summary (1) Consolidated Operating Income Operating Income on Sales 2nd half (millions of yen) 1st half 6.2% 5.8% 5.5% 10,937 9,841 4.0% 9,197 5,782 3.0% (6.5) 5,603 6,641 4,445 (6.5) (5.2) 2,290 5,200 (2.7) 5,155 〔Forecast〕 (5.9) 4,238 4,751 4,351 3,341(3.8) (5.0)
Slide 8: Operating Income Summary (2)
Financial Summary Operating Income Summary (2) Consolidated Operating Income 1,858 million yen 2,492 million yen (57.3%) decrease ≪ Major factors contributing to increase and decrease≫ Clean & Care Group ・・・Up-front costs for Style Cleaner , Expenses for the50th Anniversary Regional Conventions Food
Slide 9: Ordinary Income Summary (1)
Financial Summary Ordinary Income Summary (1) Consolidated Ordinary Income Ordinary Income on Sales 2nd half (millions of yen) 1st half 7.1% 6.8% 6.6% 5.0% 12,613 11,609 11,027 4.0% 6,576 8,322 6,276 (7.3) 5,281 6,800 (7.3) 2,994 (6.1) (3.5) 〔Forecast〕 6,036 3,984 (6.9) 5,746 5,332 5,327 (4.6) (7.0)
Slide 10: Ordinary Income Summary (2)
Financial Summary Ordinary Income Summary (2) Consolidated Ordinary Income 2,815 million yen 2,512 million yen (47.2%) decrease ≪ Major factors contributing to increase & decrease ≫ 1. Operating income -2,500 million yen 2. Non-operating income/loss - 0 million yen ➢ Financial income and expenditure
Slide 11: Net Income Summary (1)
Financial Summary Net Income Summary (1) Consolidated Net Income Net Income on Sales 2nd half (millions of yen) 1st half 3.6% 3.0% 2.7% 2.7% 2.2% 6,092 5,248 4,583 4,448 3,124 2,624 3,800 1,717 (3.6) 1,389 (2.9) (2.0) (1.6) 〔Forecast〕 2,330 2,967 3,059 2,624 2,866 (2.7) (3.6) (3.7) (3.0) (3.4) 1,469
Slide 12: Net Income Summary (2)
Financial Summary Net Income Summary (2) Consolidated Net Income 1,469 million yen 1,589 million yen (52.0%) decrease ≪ Major Factors contributing to increase & decrease ≫ 1. Ordinary income -2,500 million yen 2. Extraordinary loss and income -0 million yen ➢Total extraordinary income +0 million yen
Slide 13: Consolidated Balance Sheet Summary
Financial Summary Consolidated Balance Sheet Summary Consolidated Balance Sheet (millions of yen) FY2013 Six months Increase/ ended Mar. 31, 2014 ended Sept. 30, 2014 decrease Major Factors Cash and deposits -5,600 mil. yen Securities +7,500 mil. yen Current asset 53,489 56,417 +2,927 Merchandise an
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Slide 15: Summary by Business Segment
DUSKIN. BUOIREETS Summary by Business Segment
Slide 16: Highlights by Business Segment
Segment Information Highlights by Business Segment (millions of yen) Six months Six months FY2013 ended Sept. 30, 2013 ended Sept. 30, 2014 Change Operating Income on Sales (%) Operating Income on Sales (%) Operating Income on Sales (%) (%) Sales 110,097 ― 55,023 ― 54,137 ― -885 -1.6 Clean & Care Gr
Slide 17: Clean & Care Group (1)
Summary of Core Businesses (1) Clean & Care Group (1) Sales Operating Income Operating income on sales 2nd Half (millions of yen) 2nd Half (millions of yen) 1st Half 1st Half系列1 140,000 24,000 110,097 12.6％ 120,000 20,000 100,000 13,873 ［Forecast］ 16,000 55,074 54,962 80,000 12,000 6,360 60,000 （11.
Slide 18: Clean & Care Group (2) Residential Market
Summary of Core Businesses (1) Clean & Care Group (2) (millions of yen) Previous term Current term Change % Sales Segment Sales (1) 55,023 54,137 -885 -1.6 Chugai Sangyo (2) － 743 +743 － Sales (1)-(2) 55,023 53,394 -1,629 -3.0 ●“Try-Me Festival” promotion events and other sales activities were less
Slide 19: Clean & Care Group (3) Commercial Market
Summary of Core Businesses (1) Clean & Care Group (3) Sales ●Stagnant sales of mat products, the core products Thin-type dust control & water Other general-purpose mats Commercial Market absorption mat +145.2% Custom-made mats +0.0 % Total -1.1% -4.7% ●Restroom-related products Paper towel & toilet
Slide 20: Clean & Care Group (4)
Summary of Core Businesses (1) Clean & Care Group (4) (millions of yen) Previous term Current term Change % Operating Income Operating Income (1) 7,512 5,097 -2,415 -32.2 Chugai Sangyo (2) － 23 ＋23 － Operating Income (1)-(2) 7,512 5,073 -2,439 -32.5 1．Gross profit decreased due to lower income 2．Up-
Slide 21: Food Group (1)
Summary of Core Businesses (2) Food Group (1) Sales Operating Income Operating income on sales 2nd Half (millions of yen) (millions of yen) 2nd Half 1st Half 750 1st Half 70,000 60,000 47,018 50,000 250 40,000 24,019 -144 （-0.6） 30,000 -266 -485 ▲250 - （-1.1） (-2.0) 20,000 -410 22,999 10,000 -0.9% 0
Slide 22: Food Group (2)
Summary of Core Businesses (2) Food Group (2) (millions of yen) Sales Previous term Current term Change % Segment Sales 22,999 24,187 +1,187 +5.2 ＜Customer-level sales : Actual and previous term comparison ● Mister Donut excluding shops opened during the current term ＞ Product Development Policy 1Q
Slide 23: Food Group (3)
Summary of Core Businesses (2) Food Group (3) (millions of yen) Operating Income Previous term Current term Change % Operating Income -144 -485 -341 － 1．Gross profit increased due to increased sales 2．Increased cost rate due to valuation loss on raw materials and waste disposal expenses 3．Significan
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Slide 25: Other Businesses, Eliminations/Corporate
Summary of Core Businesses (3) Other Businesses, Eliminations/Corporate (millions of yen) Other Businesses Previous term Current term Change % Segment Sales 5,286 5,306 +19 +0.4 Operating Income 209 154 -55 -26.3 Overseas consolidated subsidiaries recorded higher sales due to weaker yen. ●Overseas c
Slide 26: Other Businesses (Overseas Businesses)
Summary of Core Businesses (3) Other Businesses (Overseas Businesses) Overseas Businesses ➢ Customer-level sales Change Jan. – June 2013 Jan. – June 2014 (%) Taiwan +21,075 (thousands of NTD) 397,811 418,886 (+5.3%) Clean & Care Shanghai +592 Businesses (thousands of CNY) 6,978 7,571 (+8.5%) South K
Slide 27: Forecasts and Actual Results
Forecasts and Actual Results
Slide 28: Forecasts and Actual Results for the First Half
Forecasts and Actual Forecasts and Actual Results for the First Half Consolidated *Change from forecast for the first half announced on May 14, 2014 (millions of yen) Sales Operating Income Ordinary Income Net Income Forecast (May 14) 83,500 2,100 3,000 1,500 Actual 83,631 1,858 2,815 1,469 Differen
Slide 29: FY 2014 Forecasts
DUSKIN. BUODIREETS FY 2014 Forecasts
Slide 30: FY 2014 Forecasts
Forecasts FY 2014 Forecasts Consolidated (millions of yen) Sales Operating Income Ordinary Income Net Income FY 2013 Actual 167,745 6,641 8,322 4,448 FY 2014 Forecast (May 14) 173,000 6,800 8,300 4,700 FY 2014 Revised Forecast (Sept.25) 170,500 5,200 6,800 3,800 FY2013 – Revised Forecast (%) +2,754
Slide 31: FY 2014 Forecasts (2) By Business Segment
Forecasts FY 2014 Forecasts (2) By Business Segment Change from forecast (millions of yen) FY 2014 FY 2014 Forecast Major factors Revised Forecast Operating Income (%) Operating Income (%) Dust Control -3,000, Azare Cosmetics -600 Sales 112,100 ― Rent-All and others +300, Chugai Sangyo +300 109,100
Slide 32: FY 2014 Forecasts (3)
Forecasts FY 2014 Forecasts (3) Forecasts for 2nd Half by Segment *Compared to the previous term (millions of yen) FY 2014 Actual Forecast FY 2013 2nd Half FY 2014 2nd Half Change Forecast (Full Year Forecast – 1st Half Actual) Operating Income on Sales (%) Operating Income on Sales (%) Operating In
Slide 33: Returns to Shareholders
DUSKIN. BUOIREETS Returns to Shareholders
Slide 34: Dividends & Repurchase of Company Stock
Return to Shareholders Dividends & Repurchase of Company Stock Dividends ■ FY2014 Steady and continuous dividend distribution in line with basic policy (20 yen lower compared to the previous year when a commemorative dividend was paid) ≪ Dividends per share (Actual & Forecasts) ≫ (yen) FY 2012 FY 20
Slide 35: Reference
DUSKIN. BUNIREECS Reference
Slide 36: Financial Summary - Non-consolidated Results
Reference 1 Financial Summary - Non-consolidated Results Non-consolidated (millions of yen) Six months Six months Increase/Decrease Reference ended ended FY 2013 ended Sept. 30, 2013 Sept. 30, 2014 Amount % Mar. 31, 2014 Sales 70,777 70,485 - 291 - 0.4 142,589 Operating Income 2,771 627 - 2,143 - 77
Slide 37: Business Summary by Segment (1)
Reference 2 Business Summary by Segment (1) * The figures as of March 31, 2014 Business segments as of September 30, 2014 Clean & Care Group (millions of yen) Food Group Other Businesses (millions of yen) (millions of yen) Sales 110,000 Sales 47,000 Sales 10,600 Operating Operating Operating Income
Slide 38: Business Summary by Segment (2)
Reference 3 Business Summary by Segment (2) * As of September 30, 2014 Clean & Care Group Home Service (Residential Market) Business Service (Commercial Market) ・Rent mops and mats through periodic visits ・ Rent mops and mats through periodic visits Dust Control ･･・・・・・・・････ Mops, mats, etc. Dust C
Slide 39: Customer-Level Sales (CLS)
Reference 4 Customer-Level Sales (CLS) CLS by Business (millions of yen) Six months ended Six months ended Increase/ % Sept. 30, 2013 Sept. 30, 2014 Decrease Clean & Care Group 137,845 135,046 -2,799 - 2.0% Dust Control (Domestic) Home Service (Residential) 50,829 48,306 - 2,522 - 5.0% Business Serv
Slide 40: Recycle-Oriented Business Model at Dust Control Business
Reference 5 Recycle-Oriented Business Model at Dust Control Business Based on the idea to fully recycle the products through Rental of mops and mats repeated use until the end of their useable life. Franchisees pay deposit. Rental (Delivery=Rental) (Franchisees record the sales.) Production & Logist