Slide 1: Presentation of Financial Results for Fiscal 2022, Ended September 30, 2022
Presentation of Financial Results for Fiscal 2022, Ended September 30, 2022 DEAR LIFE CO., LTD. November 14, 2022 (Securities code: 3245 on the Prime Market of the Tokyo Stock Exchange)
Slide 2: Overview of the Dear Life Group's Businesses
Overview of the Dear Life Group’s Businesses Real Estate Business ◼ Development and sale of real estate in central Tokyo ◼ Development of urban residences and commercial buildings ID Inc. and ID Property Co., Ltd. Note: Hereinafter, the “ID Group” ◼ Development of residences, apartments, and detache
Slide 3: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 4: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 5: Summary of Fiscal 2022 Financial Results
Summary of Fiscal 2022 Financial Results Business Overview: New record profits. Significantly above medium-term management plan targets. FY2021 FY2022 Net sales ¥26,367 million ¥51,905 million Operating profit ¥4,016 million ¥5,736 million Ordinary profit ¥4,114 million ¥5,666 million Profit attribu
Slide 6: Fiscal 2022 Highlights: (1) Acquisition of the ID Group as a subsidiary
Fiscal 2022 Highlights: (1) Acquisition of the ID Group as a subsidiary All-round real estate company based in Shinagawa Ward and Ota Ward became a subsidiary in October 2021. Promoted measures to strengthen network and expand business scale to increase share of Tokyo real estate market ◀Famius Mina
Slide 7: Fiscal 2022 Highlights: (2) Equity finance
Fiscal 2022 Highlights: (2) Equity finance Raised approximately ¥2.5 billion by exercising third-party allocation of stock acquisition rights As of the end of September (10 months from start), 86.2% had been allocated. Further expanded real estate investment portfolio through capital expansion. Issu
Slide 8: Fiscal 2022 Highlights: (3) Dividend up 37.5% from initial target
Fiscal 2022 Highlights: (3) Dividend up 37.5% from initial target In addition to a payout ratio of 40%, a record profit commemorative dividend of ¥2 was distributed. Total amount approx. ¥1.8 billion. The payout ratio, including ¥2 commemorative dividend, was 42.4%. In fiscal 2022, dividends increas
Slide 9: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 10: Consolidated Financial Results and Key Performance Indicators in Fiscal 2022
Consolidated Financial Results and Key Performance Indicators in Fiscal 2022 Percentage FY2021 FY2022 Difference change Income Statement (Millions of yen) ① ② ②－① (②-①)/① ・Results from ID Inc. this year have helped boost performance. Net sales 26,367 51,905 25,538 96.9% ・Significant increase in reve
Slide 11: Main Results from the Consolidated Income Statement in Fiscal 2022
Main Results from the Consolidated Income Statement in Fiscal 2022 In addition to completed development projects and existing income-producing real estate, a large number of properties were sold through the ADR business*, resulting in a significant increase in sales and profit. Record profits for se
Slide 12: Main Results from the Consolidated Balance Sheet in Fiscal 2022
Main Results from the Consolidated Balance Sheet in Fiscal 2022 Sales of properties exceeded expectations, and stock acquisition rights will be completed earlier than expected. Ample cash reserves ready to invest in the next revenue opportunity. (Billions of yen) Assets Interest- bearing ① Sold a la
Slide 13: Analysis of Consolidated Cash Flow in Fiscal 2022
Analysis of Consolidated Cash Flow in Fiscal 2022 Sales of properties progressed quickly and on favorable terms. Cash reserves increased by about ¥5 billion in one year. (Billions of yen) ＋ Borrowing for Repayment of property borrowings acquisitions, associated with etc. property sales Income from s
Slide 14: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 15: Real Estate Business (1): Properties Sold in Fiscal 2022
Real Estate Business (1): Properties Sold in Fiscal 2022 84 properties were handed over in fiscal 2022 to domestic and overseas investors. ● Of the 84 legally transferred, ID sold 29 completed properties, etc. ● Fierce competition among real estate companies, investment funds, and individual investo
Slide 16: Real Estate Business (2): Property Portfolio Expansion in Fiscal 2022
Real Estate Business (2): Property Portfolio Expansion in Fiscal 2022 Carefully selected purchases made amid a competitive environment with focus on Central Tokyo, ten minutes walking distance from nearest station. ● In fiscal 2022, we acquired development sites and income-producing properties worth
Slide 17: (Reference material) List of Main Property Projects
(Reference material) List of Main Property Projects Main development projects currently underway Project name Project type Location Nearest station Commercial and office building Shinjuku Ward, Approx. 4-minute walk from Ushigome-Kagurazaka Station of Toei Oedo Kagurazaka 5-chome development Tokyo S
Slide 18: Overview of Affiliates
Overview of Affiliates ID Inc. and ID Property Co., Ltd. ● Became subsidiaries on October 1. Organizational restructure and full sharing of information with Dear Life. ● Cost reductions made with the help of Dear Life’s fund raising capabilities. ● 29 properties including completed properties, vacat
Slide 19: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 20: Profit Targets for Fiscal 2023
Profit Targets for Fiscal 2023 ☑ Aiming to achieve ordinary profit of ¥10 billion in three years with current target of ¥6 billion. ☑ Accelerate growth of DLX Holdings and ID Group. Profit attributable Ordinary to owners of profit parent 2023 Fiscal year targets and results for ROE and ROA (Millions
Slide 21: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 22: Shareholder Returns Policy
Shareholder Returns Policy ✓ Dividend: Plans to implement a dividend payout ratio of 40% for fiscal 2023. Target of ¥38 per share for year-end dividend. Significantly exceeded dividend target from impact of Dividend per share and payout ratio over the past five years extraordinary income (Yen) 50 *2
Slide 23: INDEX
INDEX ☑ Summary of Fiscal 2022 Financial Results 4 ▶ Business Overview: Achieved medium-term management plan. New record profits. ▶ Highlights: (1) Acquisition of the ID Group as a subsidiary (2) Raising funds through third-party allotment of stock acquisition rights (3) 40% dividend payout ratio +
Slide 24: Breakthrough 2025: Medium-Term Management Plan (2023-2025)
Breakthrough 2025 Medium-Term Management Plan (2023-2025) November 14, 2022 (Securities code: 3245 on the Prime Market of the Tokyo Stock Exchange)
Slide 25: INDEX
INDEX 1. Review of Previous Medium-Term Management Plan ・ Real Estate Segment ・・・・・・・・・・・・・ 3 ・ Human Resources Services Segment ・・・・・・・・・・・・・ 4 ・ Growth Investment ・・・・・・・・・・・・・ 4 ・ Numerical Targets ・・・・・・・・・・・・・ 5 ・ Shareholder Returns ・・・・・・・・・・・・・ 6 2. New Medium-Term Management Plan I. Basic P
Slide 26: Review of Previous Medium-Term Management Plan: Theme (1/2)
Review of Previous Medium-Term Management Plan Theme (1/2) “Go For The Future 2022” ☑ Real Estate Segment ▽ Greater development and investment business volume Fiscal 2018 Real Estate Business: Net sales ¥19.5 billion, segment profit ¥3.2 billion Fiscal 2022 Real Estate Business: Net sales ¥47.6 bill
Slide 27: Review of Previous Medium-Term Management Plan: Theme (2/2)
Review of Previous Medium-Term Management Plan Theme (2/2) “Go For The Future 2022” ☑ Human Resources Services Segment ▽ Expand business domain through alliances and M&A Expand business domain into insurance and finance industry by making DLX Holdings and three other companies subsidiaries Create re
Slide 28: Review of Previous Medium-Term Management Plan: Numerical Targets
Review of Previous Medium-Term Management Plan: Numerical Targets “Go For The Future 2022” Ordinary profit ROE Capital-to-assets ratio ROA ¥5.0bn 15% 30% 10% Ordinary profit ROE Capital-to-assets ratio ROA ¥5,660mn 23.3% 57.2% 17.7% All achieved! 5 Copyright （C） 2022 DEAR LIFE All rights reserved.
Slide 29: Review of Previous Medium-Term Management Plan: Shareholder Returns
Review of Previous Medium-Term Management Plan: Shareholder Returns “Go For The Future 2022” Dividend payout ratio 40% 50.0% Dividend per share Dividend payout ratio 42.6% 42.4% 39.8% 45.0% 39.8% 39.9% 45.4% 40.0% 35.0% 44 *2 30.0% 28 27 *1 30 *2 17 19 25.0% 20.0% FY2017 FY2018 FY2019 FY2020 FY2021
Slide 30: New Medium-Term Management Plan: Breakthrough 2025
New Medium-Term Management Plan Breakthrough 2025 I. Basic Policy II. Themes 1. Real Estate Business 2. Sales Promotion Business 3. Strengthening the Management Foundation 4. ESG Management III. Numerical Targets IV. Shareholder Returns Policy 7 Copyright （C） 2022 DEAR LIFE All rights reserved.
Slide 31: New Medium-Term Management Plan: I. Basic Policy
New Medium-Term Management Plan: I. Basic Policy Speed Breakthrough 2025 Dear Life Core (Strengths) Development Use of human capabilities Sound resources Financial base Basic Policy Establish the Dear Life Group's brand and improve value by enhancing the Group's core strengths of speed, use of human
Slide 32: New Medium-Term Management Plan: II. Themes Summary
New Medium-Term Management Plan: II. Themes Summary As well as setting themes in accordance with the basic policy in each segment and category with the aim to achieve numerical targets, we will strengthen the management foundation, such as the people and trust that support the sustainable growth of
Slide 33: II. Themes 1. Real Estate Business (1)
New Medium-Term Management Plan: II. Themes 1. Real Estate Business (1) Aiming for further growth through greater investment in mainstay real estate business Expand urban residence business volume and scale ✓ Continue to increase development volume of residential real estate mainly in the Tokyo area
Slide 34: II. Themes 1. Real Estate Business (2)
New Medium-Term Management Plan: II. Themes 1. Real Estate Business (2) Aiming for further growth through greater investment in mainstay real estate business Develop and provide products and services to meet demand ✓ Utilize development expertise that we have cultivated to increase number of project
Slide 35: II. Themes 2. Sales Promotion Business
New Medium-Term Management Plan: II. Themes 2. Sales Promotion Business Respond to society's expectations by providing employment opportunities where everyone can demonstrate their abilities and reach their potential Strengthen non-face-to-face sales with IT and expand business areas ✓ Strengthen th
Slide 36: II. Themes 3. Strengthening the Management Foundation (1)
New Medium-Term Management Plan: II. Themes 3. Strengthening the Management Foundation (1) Promote business by improving capital efficiency with the financial base in place to exceed ¥10 billion in ordinary profit Established financial base that can exceed ¥10 billion in ordinary profit through thir
Slide 37: II. Themes 3. Strengthening the Management Foundation (2)
New Medium-Term Management Plan: II. Themes 3. Strengthening the Management Foundation (2) Promote business by improving capital efficiency with the financial base in place to exceed ¥10 billion in ordinary profit Foster next-generation management who can In promoting human capital management, conti
Slide 38: II. Themes 4. ESG Management
New Medium-Term Management Plan: II. Themes 4. ESG Management Social Demands Dear Life Initiatives Environmentally friendly real estate development Tackling climate change E Sound material-cycle society Reducing greenhouse Environmental gas emissions Reducing CO2 emissions Establishing Sustainabilit
Slide 39: III. Numerical Targets
New Medium-Term Management Plan: III. Numerical Targets Maximizing corporate value through steady business growth while maintaining financial soundness and efficiency Fiscal 2022: ¥5.7bn ⇒ ¥10bn Aim to increase efficiency in all segments Ordinary profit ¥10bn to exceed ¥10bn in ordinary profit Effic
Slide 40: III. Numerical Targets: Performance and Net Assets
New Medium-Term Management Plan: III. Numerical Targets Performance and Net Assets / Medium-Term Management Plan (Millions of yen) (Millions of yen) 60,000 8,000 5,666 Performance Net sales (left axis) Ordinary profit (right axis) 50,000 6,000 40,000 4,114 30,000 3,409 2,717 4,000 2,932 1,996 20,000
Slide 41: IV. Shareholder Returns
New Medium-Term Management Plan: IV. Shareholder Returns Optimizing the balance between financial soundness, investment for future growth and enhancement of shareholder returns Dividend payout ratio 40% Acquisition of company shares Comprehensive judgment in Stable and continuous dividends based con
Slide 42: Investor Relations Inquiries
Investor Relations Inquiries Contact details for inquiries regarding this presentation Corporate Strategy Unit, DEAR LIFE CO., LTD. E-mail: ir@dear-life.co.jp The forecast results and forward-looking statements described in this presentation are expectations of the Company’s management deemed reason