KOSAIDO Holdings Co.Ltd. · TSE:7868
KOSAIDO Holdings Co.Ltd — Q3 FY03/23 Earnings Presentation
36 slides from KOSAIDO Holdings Co.Ltd's earnings presentation, Feb 10, 2023
Slide 1: Q3 FY03/23 Financial Results Presentation
Q3 FY03/23 Financial Results Presentation Securities code: 7868 2023/2/10
Slide 2: Contents
0 Contents 1 Q3 FY03/23 Highlights P. 2 ・Q3 FY03/23 Performance Highlights ・Revisions to Consolidated Financial Forecast and Dividend Forecast for FY03/23 ・Quarterly Performance ・Analysis of Change in Operating Profit ・Segment Performance 2 Initiatives in FY03/23 P. 18 ・1st year Plan/Status of Mediu
Slide 3: Q3 FY03/23 Highlights
Q3 FY03/23 1 Highlights 2
Slide 4: Q3 FY03/23 Performance Highlights
1-01 Q3 FY03/23 Performance Highlights ・ Nine-month consolidated results: Net sales and operating profit both increased from the same period last year. (Net sales +9.7% YoY, Operating profit +26.9% YoY) ・ Revisions to consolidated financial forecast and dividend forecast for FY03/23 ・ Determination
Slide 5: Q3 FY03/23 Consolidated Financial Results
1-02 Q3 FY03/23 Consolidated Financial Results • Funeral Services: Sales related to funeral halls, waiting rooms, confectionery and beverages increased due to a rise in the number of visitors. • Information: Factory utilization rate was maintained in the printing business, and the BPO business remai
Slide 6: Revisions to Financial Forecast for FY03/23
1-03 Revisions to Financial Forecast for FY03/23 Reason for revision The fourth quarter results are expected to be strong, mainly in the Funeral Services segment, and profit attributable to owners of parent is expected to increase significantly from the previous forecast given the estimated tax effe
Slide 7: Revision to Dividend Forecast
1-04 Revision to Dividend Forecast FY03/23 dividend forecast ✓ Year-end dividend has been revised (payout ratio 15%) associated with revisions to the full-year financial forecast. Dividend per share Record date End of Q2 End of FY Total FY03/22 results 0.00 yen 0.00 yen 0.00 yen FY03/23 results 7.75
Slide 8: Quarterly Trend (Net Sales)
1-05 Quarterly Trend (Net Sales) • Net sales increased 7.9% year on year due to growth in sales at two funeral planning services companies in the Funeral Services segment and the solid performance of the BPO business in the Information Services segment. (Millions of yen) 14,000 12,000 11,470 9,710 2
Slide 9: Quarterly Trend (Cost of Sales)
1-06 Quarterly Trend (Cost of Sales) • Cost of sales increased from the same period last year (+340 million yen, -1.4pt cost of sales ratio) • While cost of sales increased year on year, the cost of sales ratio declined due to thorough cost control. (Millions of yen / %: Cost of sales ratio) 9,000 7
Slide 10: Quarterly Trend (SG&A Expenses)
1-07 Quarterly Trend (SG&A Expenses) • SG&A expenses increased from the same period last year (+349 million yen, +2.2 pt SG&A expenses ratio) • Personnel expenses and advertising expenses as an investment for future growth continued to increase. (Millions of yen / %: SG&A expense ratio) 2,500 2,086
Slide 11: Quarterly Trend (Number of Employees)
1-08 Quarterly Trend (Number of Employees) • Strengthened human resources in anticipation of medium- to long-term growth in the Funeral Services segment. • From Information to Funeral Services – Shifting employees to growth areas Sep. 2020 (Number of employees / %: Composition ratio) ★ Closed Toyona
Slide 12: Quarterly Trend (Operating Profit by Segment)
1-09 Quarterly Trend (Operating Profit by Segment) • Operating profit increased 2.4% year on year due to the growth of the funeral hall business, etc. reflecting the increasing number of visitors in the Funeral Services segment, despite a reactionary decrease in COVID-19-related BPO projects. (Milli
Slide 13: Analysis of Change in Operating Profit (Major Items)
Q3 FY03/23: 1-10 Analysis of Change in Operating Profit (Major Items) • A decrease in sales in the HR segment and an increase in expenses were offset by an increase in sales in the Funeral Services and Information segments, resulting in a year-on-year increase in overall profit. (Millions of yen) +8
Slide 14: Financial Results Summary by Business Segment
Q3 FY03/23 1-11 Financial Results Summary by Business Segment (Millions of yen) Net sales YoY change Operating profit YoY change Q3 FY03/23 Q3 FY03/23 FY03/22 FY03/22 3Q 3Q 3Q Amount % 3Q Amount % [Nine [Nine [Nine months] [Nine months] months] months] Funeral Services 8,398 6,676 1,722 25.8 2,787 2
Slide 15: Funeral Services Segment (YoY)
1-12 Q3 FY03/23 Funeral Services Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Q3 FY03/23 FY03/22 Q3 FY03/23 FY03/22 3Q 3Q Amount % 3Q 3Q Amount % [Nine months] [Nine months] [Nine months] [Nine months] Funeral Services 8,398 6,676 1,722 25.8 2,787 2,152 635 29.5 O
Slide 16: Information Segment (YoY)
1-13 Q3 FY03/23 Information Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Q3 FY03/23 FY03/22 Q3 FY03/23 FY03/22 Amount % Amount % 3Q 3Q 3Q 3Q – Information 12,815 12,623 192 1.5 212 -46 258 (turned profitable) Operating environment • Demand for publication printing
Slide 17: HR Segment (YoY)
1-14 Q3 FY03/23 HR Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Q3 FY03/23 FY03/22 Q3 FY03/23 FY03/22 Amount % Amount % 3Q 3Q 3Q 3Q HR 4,985 4,591 394 8.6 92 333 -241 -72.4 Operating environment • As socioeconomic activity recovered, recruitment demand remained fi
Slide 18: Consolidated Balance Sheet
1-15 Consolidated Balance Sheet (Millions of yen) As of March 31, 2022 As of December 31, 2022 Difference Current assets 31,350 27,130 - 4,220 Cash and deposits 21,662 19,229 - 2,433 Notes and accounts 7,131 4,886 - 2,245 receivable–trade Non-current assets 42,380 41,710 - 670 Property, plant and 35
Slide 19: Initiatives in FY03/23
2 Initiatives in FY03/23 18
Slide 20: 1st year Plan/Status of Medium-Term Business Plan 2.0
Initiatives in FY03/23 – 2-01 1st year Plan/Status of Medium-Term Business Plan 2.0 Initiatives in the third quarter by segment ・Funeral Services Segment ✓ Planning and design and selection of construction contractors for the expansion of funeral halls ✓ Efficient operation of cremation furnaces wit
Slide 21: Future Business Growth
3 Future Business Growth 20
Slide 22: Future Business Growth – Funeral Hall Business
3-01 Future Business Growth – Funeral Hall Business Pillars of medium- Growth in the Funeral Services segment term growth through the Funeral Hall Business Funeral halls in funeral homes owned by Tokyohakuzen have a high utilization rate (more than 90%). Tokyohakuzen funeral homes are convenient bec
Slide 23: Basic Funeral Hall Business Data
3-02 Basic Funeral Hall Business Data (* Based on information as of December 2022) Facility-related data Current facilities Funeral Number of funeral homes 6 locations (23 wards) homes Total floor area 45,132 m2 Total number of funeral Funeral halls 35 halls halls 3,889 m2 Area of funeral halls (inc
Slide 24: Growth Potential of the Funeral Hall Business
3-03 Growth potential of the Funeral Hall Business (* Estimate based on information as of December 2022) Expansion of funeral halls and income As of December 2022 As of August 2023 From September 2023 Total number of +36 +α funeral halls 35 halls 71 halls X halls Room for expansion +1,900 10,460 m2
Slide 25: Public Services Business
4 Public Services Business 24
Slide 26: Changes in Segment Information – Classification of Funeral Services Segment
Changes in Segment Information – Classification of 4-01 Funeral Services Segment Business segments have been changed to clarify the growth and management status of each business (Scheduled to begin in FY03/24). Before change After change ■ Funeral Services Segment ■ Public Funeral Services Segment ■
Slide 27: Concept Underlying the Income and Expenditures in the Public Funeral Services Business
Concept Underlying the Income and Expenditures in the 4-02 Public Funeral Services Business The Public Funeral Services Business is a business that by its nature has a significant amount of public interest and requires permanence and non-profitability. Increased transparency Increased business stabi
Slide 28: Changes in Segment Information – Notes to Disclosure Documents
Changes in Segment Information – 4-03 Notes to Disclosure Documents From the next fiscal year (ending March 31, 2024), information will be disclosed by dividing funeral services into public services business and profit-generating services business as follows (for the current fiscal year, the informa
Slide 29: Appendix: Company Introduction
Appendix: A Company Introduction 28
Slide 30: Company Overview
A-01 Company Overview Company Establish- KOSAIDO Holdings Co., Ltd. ment January 1949 name 35,361 Total 68,843 39,218 Net sales million yen Net assets million yen million yen assets (as of December (as of December (FY03/22) 31, 2022) 31, 2022) Represent- ative Hiroshi Kurosawa, President & CEO Numbe
Slide 31: History
A-02 History Kosaido Group 2021 Transitioned to a holding 1984 company structure Tokyohakuzen joined the Group (Started ending-related business) 1970 2022 Founded Japan’s first Launched Funeral Planning Services computer typesetting company (Kosaido Lifewell, Gran Ceremo Tokyo) 2013 Established Viet
Slide 32: Mission, Vision, and Value
A-03 Mission, Vision, and Value MISSION Further enrich 100-year lives VISION A Company that creates myriad “thank yous” Provide innovative services overflowing with VALUE gratitude through individual challenges and strong organizational connections. Based on our management philosophy of “Kosai,” whi
Slide 33: KOSAIDO Group
[Main businesses] A-04 KOSAIDO Group Crematory operation and provision of funeral halls Ending-related Business Funeral planning services Ending-related business Further enrich 100-year lives. Information Solution Business [Main businesses] Offset printing (publishing, commercial) Newspaper printing
Slide 34: KOSAIDO Group's SDGs Declaration
A-05 KOSAIDO Group’s SDGs Declaration Economy Society Providing wide-ranging support Live in harmony with others To put our corporate philosophy of Value creation for Developing equitable and diverse communities sustainable economic activities “contributing to society at large” In the coming era whe
Slide 35: Contact
Contact This material will be available on our company website. If you have any comments or concerns about this presentation or other IR-related topics, please use the inquiry form below to contact us. Inquiry Form URL: https://www.kosaido.co.jp/contact/ Copyright 2023 KOSAIDO Holdings Co., Ltd. All
Slide 36: Further enrich 100-year lives
Further enrich 100-year lives <Precautionary note regarding this material> The figures included in the financial forecast and other sections of this material are based on judgements and assumptions made by the Company according to currently available information. Please be aware that actual results