Gakken Holdings Co., Ltd. · TSE:9470
Gakken — H1 FY2021 Earnings Presentation
43 slides from Gakken's earnings presentation, May 27, 2021
Slide 1: Financial Results for the Six Months Ended March 31, 2021
Securities code: 9470 Financial Results for the Six Months Ended March 31, 2021 May 27, 2021 Gakken Holdings Co., Ltd.
Slide 2: Contents
Contents 1. Financial Results for the Six Months Ended March 31, 2021 2. Outlook for the Fiscal Year Ending September 30, 2021 Progress of Gakken 2023 © 2021 GAKKEN HOLDINGS CO.,LTD. 2
Slide 3: Financial Results for the Six Months Ended March 31, 2021
Financial Results for the Six Months Ended March 31, 2021 Yoshinobu Adachi Director
Slide 4: Summary of Consolidated Financial Results for the Six Months Ended March 31, 2021
Summary of Consolidated Financial Results for the Six Months Ended March 31, 2021 Double-digit increase in operating profit despite the COVID-19 pandemic Net 78,077 million yen Operating 4,970 million yen sales (3.0% increase year on year) profit (15.8% increase year on year) Profit Ordinary 4,826 m
Slide 5: Net Sales Trends (for the Six Months Ended March 31)
Net Sales Trends (for the Six Months Ended March 31) (Million yen) 10期連続増収 Revenue increased for the 10th consecutive year 78,077 185%185％ 2011年同期比 compared with the same period in 2011 42,178 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Six months Six months ended ended March 31 Marc
Slide 6: Operating Profit Trends (for the Six Months Ended March 31)
Operating Profit Trends (for the Six Months Ended March 31) (Million yen) 4,970 Operating profit increased for the 7th consecutive year Up 9.4 times from the same period in 2014 528 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Six months Six months ended ended March 31 March 31 © 2021
Slide 7: Factors Behind Changes in Operating Profit (Year on Year)
Factors Behind Changes in Operating Profit (Year on Year) (Million yen) Cost reduction due to increased use of online services +398 - Traveling expenses - Meeting expenses - Entertainment expenses (1,544) (211) (205) Six months ended Revenue Costs Advertising expenses Other Six months ended March 31
Slide 8: Consolidated Financial Position
Consolidated Financial Position (Million yen) Increase in assets due to acquisition of JP-HOLDINGS shares Liabilities Liabilities 83,094 67,502 Assets Assets 130,074 103,741 Net assets Net assets 36,239 46,979 As of September 30, 2020 As of March 31, 2021 © 2021 GAKKEN HOLDINGS CO.,LTD. 8
Slide 9: Consolidated Cash Flows
Consolidated Cash Flows (Million yen) Financing through acquisition of JP-HOLDINGS shares 28,231 (163) (15,184) Beginning of Cash flows from Cash flows from Cash flows from Other Six months FY9/21 operating activities investing activities financing activities ended March 31, 2021 © 2021 GAKKEN HOLDI
Slide 10: Summary of Results by Segment for the Six Months Ended March 31, 2021
Summary of Results by Segment for the Six Months Ended March 31, 2021 (Million yen) Operating profit increased in the educational domain, and net sales increased in the healthcare and nursing domain Six months ended Six months ended Segment Change March 31, 2020 March 31, 2021 Operating Operating Op
Slide 11: Results by Business Segment
Results by Business Segment (Top: Net Sales; Bottom: Operating Profit) (Million yen) Operating profit increased in the published content business, and net sales increased in the elderly housing business + 183 + 773 +1,501 + 724 78,077 75,838 (450) (777) +804 (27) (92) Six months ended Classroom and
Slide 12: Educational Domain: Classroom and Learning Center Business
Educational Domain Classroom and Learning Center Business *Please see Appendix for details of the business. (Million yen) Net sales Operating profit 20,000 18,254 14,949 15,673 1,000 934 10,000 485 500 370 0 0 Six months ended 2019年9月期 Six2020年9月期 months ended Six months ended 2021年9月期 March 31, 201
Slide 13: Educational Domain: Published Content Business
Educational Domain Published Content Business *Please see Appendix for details of the business. (Million yen) Net sales Operating profit 20,000 18,209 17,758 3,500 3,000 14,740 2,317 2,500 2,000 10,000 1,500 1,512 1,000 500 684 0 0 Six months ended 2019年9月期 Six2020年9月期 months ended Six months ended
Slide 14: Educational Domain: Kindergarten and School Business
Educational Domain Kindergarten and School Business *Please see Appendix for details of the business. (Million yen) Net sales Operating profit 2,500 11,039 10,385 10,000 9,608 2,000 1,206 1,500 1,156 1,000 754 500 0 0 Six months ended 2019年9月期 Six2020年9月期 months ended Six months ended 2021年9月期 March
Slide 15: Healthcare and Nursing Domain
Healthcare and Nursing Domain *Please see Appendix for details of the business. (Million yen) Net sales Operating profit 32,106 2,000 29,648 30,000 26,978 1,285 1,500 20,000 1,255 1,000 1,012 10,000 500 0 0 Six months ended 2019年9月期 Six2020年9月期 months ended Six months ended 2021年9月期 March 31, 2019 M
Slide 16: Outlook for the Fiscal Year Ending September 30, 2021; Progress of Gakken 2023
Outlook for the Fiscal Year Ending September 30, 2021 Progress of Gakken 2023 Hiroaki Miyahara President, Representative Director
Slide 17: Impact of the New Coronavirus on Our Business
Impact of the New Coronavirus on Our Business Change in external environment Impact Business Decrease in demand for learning centers among non- exam-taking students － Classroom and learning center Spread of online lessons in private tutoring, group lectures, and learning support at home ＋ More time
Slide 18: Outlook for the Fiscal Year Ending September 30, 2021
Outlook for the Fiscal Year Ending September 30, 2021 (Million yen) Steady progress of Gakken 2023 despite the COVID-19 pandemic 170,000 165,000 10,000 売上高 Net sales 営業利益 Operating profit 160,000 9,000 +1,000 7,500 150,000 146,000 147,000 8,000 143,564 7,000 140,000 6,000 130,000 6,000 5,600 +400 5,
Slide 19: Gakken 2023 Management Policy
Same slide Gakken 2023 Management Policy in previous presentation “Establishment of a solid foundation for growth” Healthcare Education and nursing Creation of new approaches to Seek to be a top company learning and a diverse range of contributing to development of learning opportunities sustainable
Slide 20: Gakken 2023 Reorganization of the Group's Business Operation Structure
Gakken 2023 Reorganization of the Group’s Business Operation Structure Optimize management resource allocation from a broader perspective ▶ Integrate touch points with customers and knowledge and based on broader thinking. ▶ Avoid scatteration of management resources and investment Management based
Slide 21: Gakken 2023 Educational Domain Basic Policy and Priority Initiatives
Same slide Gakken 2023 Educational Domain in previous Basic Policy and Priority Initiatives presentation “Creation of new approaches to learning and a diverse range of learning opportunities” ◉ Promotion of individually optimized learning through “smart education,” digital transformation of educatio
Slide 22: Gakken 2023 Healthcare and Nursing Domain Basic Policy and Priority Initiatives
Same slide Gakken 2023 Healthcare and Nursing Domain in previous Basic Policy and Priority Initiatives presentation “Seek to be a top company contributing to development of sustainable towns” ◉ Improve customer and employee satisfaction ◉ Collaborative creation based on Gakken's Targeted Basic polic
Slide 23: Progress in Educational Domain: Classroom and Learning Center Business
Gakken 2023 Progress in Educational Domain Classroom and Learning Center Business [Gakken Classroom] [Learning Centers] 50,000 *No. of members enrolled in course programs No. of students 368,230 349,230 43,888 360,000 347,865 45,000 42,080 40,329 320,000 40,000 280,000 35,000 240,000 30,000 200,000
Slide 24: Progress in Educational Domain: Publishing Content Business
Gakken 2023 Progress in Educational Domain Publishing Content Business [Publishing] 出版 [Medical and nursing] 38% 38% 2,500 37% 36% 35% No. of hospitals that made a contract for 35% e-learning targeting nurses 2,000 1,963 33% 1,788 31% 1,482 1,500 Rate of publications returned 1,233 27% Note) Gakken
Slide 25: Progress in Educational Domain: Kindergarten and School Business
Gakken 2023 Progress in Educational Domain Kindergarten and School Business [Toddler幼児教育 education] [School education] 学校教育 1.6 16 Sales of clothing for (kindergarten and 1.5 15 Demand for junior high school 698,864 nursery school) teachers (billion yen) 700,000 textbooks (moral education + 690,000
Slide 26: Progress in Healthcare and Nursing Domain
Gakken 2023 Progress in Healthcare and Nursing Domain 700 [No. of facilities] 高齢者向け住宅 他 etc. Apartments for the elderly, 600 MCS(グループホーム等) MCS (group homes, etc.) *MCS: August※MCS：8月 子育て支援施設(保育園・学童等) Child raising support facilities (nursery schools, after 500 school children’s clubs, etc.) 172 136
Slide 27: Progress in Healthcare and Nursing Domain: Occupancy and Staffing
Gakken 2023 Progress in Healthcare and Nursing Domain [Occupancy rate and utilization rate] [Staffing] Child raising support Apartments for the elderly Group homes 高齢者向け住宅 Apartments for グループホーム Group homes 子育て支援施設（保育園） the elderly facilities (nursery schools) 31.1% Turnover rate 98.0% 98.0% 97.5% 2
Slide 28: Progress in DX Strategy
Gakken 2023 Progress in DX Strategy No. of Gakken ID members exceeded 200 thousand The ID integrates Group customers and is valid for all services Unification of registration and settlement, improved convenience for customers, improvement of user experience (UX), and retention of fans Nurture the fu
Slide 29: Progress in DX Strategy: Customer LTV
Gakken 2023 Progress in DX Strategy Gain customers when they are toddlers, retain them, and maximize customer LTV Elementary Elementary Infants and Nursery school Junior high school school High school College Adults Senior citizens The elderly toddlers Kindergarten school 1st–3rd grade 4th–6th grade
Slide 30: Progress in Toddler Business Strategy
Gakken 2023 Progress in Toddler Business Strategy January 2021 Acquisition of shares of JP-HOLDINGS, INC. Shareholding ratio: 30.72％; Total acquisition price: 9,851 million yen Learning cycle that begins from the preschool period Maturation of the nursery school market Expand Build closer relationsh
Slide 31: Progress in Toddler Business Strategy
Gakken 2023 Progress in Toddler Business Strategy Maximization of No. of toddler customers × linkage rate between kindergartens/nursery schools and elementary schools Linkage (Age) 0 1 2 3 4 5 6 7 8 9 Gain customers and familiarize Enhance linkage them with Gakken brand Maximization of value provide
Slide 32: Progress in Financial Strategy
Gakken 2023 Progress in Financial strategy Creation of social value Raised 8.1 billion yen through social equity financing Gakken Social Value Create a society where everyone can live fulfilling lives Secure capital investment funds for further growth Strengthen financial base by enhancing equity Ed
Slide 33: Appendix
Gakken Appendix
Slide 34: Changes in Reportable Segments
Changes in Reportable Segments Concentration of educational segments (3→1) FY9/20 FY9/21 Segment Segment Business Business Products and services Educational domain Education Service Classroom and learning center Gakken Classroom, cram schools, Gakken Classroom, learning centers learning materials pu
Slide 35: Details of Each Business
Details of Each Business Educational Domain Healthcare and Nursing Domain Classroom and learning Elderly housing center Serviced apartments for the elderly Gakken Classroom (mainly for Bases for elderly care services elementary school students) Classes for toddlers and elementary school students Cra
Slide 36: Gakken Classroom: No. of Members and Certified Classrooms
Educational Domain Gakken Classroom: No. of Members Enrolled in Course Programs and No. of Certified Classrooms 440,000 30,000 No. of members enrolled in course programs *1 No. of certified classrooms *2 28,000 420,000 416,431 411,254 26,000 400,000 24,000 378,787 22,000 380,000 368,230 20,000 360,0
Slide 37: Learning Centers: No. of Students and No. of Classrooms
Educational Domain Learning Centers: No. of Students and No. of Classrooms 60,000 No. of students No. of classrooms 1,000 900 51,578 50,964 50,000 47,589 800 43,888 42,080 40,329 700 40,000 600 30,000 500 503 499 478 487 489 400 433 20,000 300 200 10,000 100 0 0 September March September March Septe
Slide 38: Educational Domain: No. of New Publications
Educational Domain No. of New Publications No. of new publications Note) Gakken Plus excluding periodicals and musical scores 1000 750 350 274 234 500 91 124 38 188 191 250 129 189 213 187 0 April 2018– April 2019– April 2020– March 2019 March 2020 March 2021 Children's books Study-aid books Magazin
Slide 39: School Textbook Publication Schedule
Educational Domain School Textbook Publication Schedule FY 2018 2019 2020 2021 2022 2023 2024 2025 Examination △ △ Elementary school health education Adoption ● ● Start of use ◎ ◎ Junior high Examination △ △ school physical and health Adoption ● ● education Start of use ◎ ◎ Examination △ △ Elementar
Slide 40: Healthcare and Nursing Domain: No. of Facilities
Healthcare and Nursing Domain No. of Facilities 700 高齢者向け住宅 Apartments for the他 elderly, etc. MCS(グループホーム等) ※MCS：8月 MCS (group homes, etc.) *MCS: August 600 子育て支援施設(保育園・学童等) Child raising support facilities (nursery schools, after school children’s clubs, etc.) 500 172 148 136 400 125 300 326 307 31
Slide 41: Healthcare and Nursing Domain: Occupancy Rate and Utilization Rate
Healthcare and Nursing Domain Occupancy Rate and Utilization Rate September 2021 March 2019 March 2020 March 2021 (Plan) Total no. of units 3,464 3,855 4,441 5,041 Greater No. of occupied Tokyo Area units 3,308 3,538 4,003 4,593 Occupancy rate 95.5% 91.8% 90.1% 91.1% Total no. of units 991 1,098 1,1
Slide 42: Collaborative Creation based on Gakken's Community-based Integrated Care System
Collaborative Creation based on Gakken's Community- based Integrated Care System Towns where people of different age groups—from 0-year-old babies to senior citizens over the age of 100—and their families can continue to live joyfully with a sense of security in the same community. Gakken Group cont
Slide 43: Financial Strategy Office, Gakken Holdings Co., Ltd.
Financial Strategy Office, 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 assumptions such as the economic environment and business policies as of the date of prep