Duskin Co., Ltd. · TSE:4665
Duskin — H1 FY2016 Earnings Presentation
52 slides from Duskin's earnings presentation, Nov 14, 2016
Slide 1: Six-month Period Ended Sept. 30, 2016 Financial Report
Six-month Period Ended Sept. 30, 2016 Financial Report Duskin Co., Ltd. November 14, 2016
Slide 2: Cautionary Statement
Cautionary Statement ■ These materials contain forward-looking statements concerning forecasts, goals, strategies, and other matters related to the Company, including its consolidated subsidiaries. ■ These forward-looking statements are based on projections and assumptions made by Duskin Group in li
Slide 3: Table of Contents
Table of Contents ■ Financial Summary ■Returns to Shareholder Consolidated Financial Summary ・・・・ 5 Dividends ・・・・・・・・・・・・・ 33 Sales Summary ・・・・・・・・・・・ 6 Repurchase & cancellation of Company stock ・ 34 Operating Income Summary ・・・・・・ 8 ■Our initiatives (Medium-term Management Policy 2015） Ordinary
Slide 4: Financial Summary
Six-month Period Ended Sept. 30, 2016 Financial Summary
Slide 5: Consolidated Financial Summary
Financial Summary Consolidated Financial Summary Consolidated Results ( millions of yen ) FY2015 1st Half FY2016 1st Half Increase/decrease Reference FY2015 ended Sept. 30, 2015 ended Sept. 30, 2016 Amount % ended Mar. 31, 2016 Sales 82,530 81,091 -1,438 -1.7 165,203 Operating Income 2,681 2,514 -16
Slide 6: Sales Summary (1)
Financial Summary Sales Summary (1) Consolidated Sales Sales - 2nd half Sales - 1st half (millions of yen) 250,000 200,000 168,163 167,987 163,000 167,745 165,203 〔Forecast〕 150,000 86,074 84,434 84,355 82,673 81,908 100,000 〔Forecast〕 50,000 83,310 83,631 82,088 82,530 81,091 0 Mar. 2013 Mar. 2014
Slide 7: Sales Summary (2)
Financial Summary Sales Summary (2) Consolidated Sales 81,091 million yen 1,438 million yen decrease (-1.7%) ( millions of yen ) Sales by segment FY2015 1st Half FY2016 1st Half Increase/decrease ended Sept. 30, 2015 ended Sept. 30, 2016 % Clean & Care Group 55,007 55,221 +214 +0.4% Food Group 22,11
Slide 8: Operating Income Summary (1)
Financial Summary Operating Income Summary (1) Consolidated Operating Income Operating Income on Sales 2nd half ( millions of yen ) 20,000 1st half 16,000 5.5% 4.0% 12,000 9,197 3.1% 3.3% 3.0% 〔Forecast〕 8,000 4,445 6,641 (5.2) 5,067 5,372 5,000 〔Forecast〕 2,290 (2.7) 3,209 2,690 2,485 4,000 4,751 (
Slide 9: Operating Income Summary (2)
Financial Summary Operating Income Summary (2) Consolidated Operating Income 2,514 million yen 166 million yen decrease (-6.2%) ≪ Major Factors ≫ Clean & Care Group・・・Decrease in new items for rent including Style Cleaner and mats Food Group ・・・Lower sales of Mister Donut & higher shipping expenses,
Slide 10: Ordinary Income Summary (1)
Financial Summary Ordinary Income Summary (1) Consolidated Ordinary Income Operating Income on Sales 2nd half 1st half (millions of yen) 6.6% 20,000 5.0% 16,000 4.0% 11,027 4.2% 4.1% 〔Forecast〕 12,000 8,322 5,281 7,083 (6.1) 6,707 6,500 〔Forecast〕 8,000 2,994 (3.5) 4,268 3,275 3,093 5,746 5,327 (5.1
Slide 11: Ordinary Income Summary (2)
Financial Summary Ordinary Income Summary (2) Consolidated Ordinary Income 3,406 million yen 26 million yen decrease (-0.8%) ≪ Major Factors ≫ ① Operating Loss -200 million yen ② Non-operating Increase ＋100 million yen ➢Decrease in interest income -100 million yen ➢Increase in miscellaneous income +
Slide 12: Net Income Summary (1)
Financial Summary Net Income Summary (1) Consolidated Net Income Net Income on Sales 2nd half (millions of yen) 1st half 12,000 3.6% 10,000 2.7% 2.0% 2.0% 1.8% 〔Forecast〕 8,000 6,092 6,000 4,448 3,124 3,441 3,200 〔Forecast〕 4,000 (3.6) 1,389 2,983 (1.6) 1,971 1,020 1,094 (1.3) 〔Forecast〕 2,000 2,967
Slide 13: Net Income Summary (2)
Financial Summary Net Income Summary (2) Consolidated Net Income 2,105 million yen 143 million yen increase (＋7.3%) ≪ Major Factors ≫ ① Ordinary Income -0 million yen ② Extraordinary profit +150 million yen ➢Loss on disaster -150 million yen Expenses related to Kumamoto Earthquake ➢Liquidation of an
Slide 14: Consolidated Balance Sheet Summary
Financial Summary Consolidated Balance Sheet Summary Consolidated Balance Sheet (millions of yen) FY2015 FY2016 1st Half Increase/ ended Mar. 31, 2016 ended Sept. 30, 2016 decrease Major Factors Cash and deposits +700 mil.yen Notes and accounts receivable -700 mil.yen Current asset Securities -4,300
Slide 15: Summary by Business Segment
DUSKIN BUOVREECS Summary by Business Segment
Slide 16: Highlights by Business Segment
Segment Information Highlights by Business Segment (millions of yen) FY2015 1st Half FY2016 1st Half FY2015 ended Sept. 30, 2015 ended Sept. 30, 2016 Change Operating Income on Sales (%) Operating Income on Sales (%) Operating Income on Sales (%) (%) Sales 110,191 ― 55,007 ― 55,221 ― +214 ＋0.4 Clean
Slide 17: Clean & Care Group (1)
Summary of Core Businesses (1) Clean & Care Group (1) Sales Operating Income Net Income on Sales 2nd half 1st half 2nd half (millions of yen) (millions of yen) 1st half 140,000 24,000 110,191 111,500 〔Forecast〕 120,000 11.8% 12.1% 20,000 〔Forecast〕 100,000 56,278 〔Forecast〕 16,000 13,001 13,500 〔For
Slide 18: Clean & Care Group (2): Residential Market
Summary of Core Businesses (1) Clean & Care Group (2) （millions of yen） FY2015 2Ｑ FY2016 2Ｑ Change (％) Sales Sales by Segment 55,007 55,221 +214 +0.4 ●Cleaning Basic Three performed well while sales of mop products declined. ➢ Dust Control products (total) -1.9％ （1Q：-3.2％ 、 2Q：-0.5％） ➢ Mop products
Slide 19: Clean & Care Group (3): Commercial Market
Summary of Core Businesses (1) Clean & Care Group (3) （millions of yen） FY2015 2Ｑ FY2016 2Ｑ Change (%) Sales Sales by Segment 55,007 55,221 +214 +0.4 ●Total sales of Dust Control products were higher while mat products posted lower sales. ➢ Dust Control products (total) ＋0.6％ （1Q：+0.3％ 、 2Q：＋0.8％） ➢
Slide 20: Clean & Care Group (4)
Summary of Core Businesses (1) Clean & Care Group (4) （millions of yen） FY2015 2Ｑ FY2016 2Ｑ Change (%) Operating Income Operating Income by Segment 6,084 6,360 ＋276 ＋4.5 ➢ Gross profit increased due to higher sales ＋100 million yen ➢ Gross profit increased due to lower cost ratio ＋1,100 million yen
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) 1st Half 2nd Half (millions of yen) 70,000 1st Half 200 -1,469 -1,700 〔Forecast〕 60,000 -100 -377 -565 44,007 （-1.7） 50,000 41,000 〔Forecast〕 (-2.8） -400 40,000 -700 -1,092 21,88
Slide 22: Food Group (2) Sales
Summary of Core Businesses (2) Food Group (2) (millions of yen) FY2015 2Q FY2016 2Q Change (%) Sales Sales by Segment 22,118 20,285 -1,833 -8.3 ●Mister Donut ✔ Total customer-level sales -11.0％ （1Q：-10.0％ 2Q：-12.1％） ✔ Customer –level sales of existing shops -8.2％ （1Q：-7.5％ 2Q：-8.8％） ➢ Decrease in th
Slide 23: Food Group (3)
Summary of Core Businesses (2) Food Group (3) (millions of yen) FY2015 2Q FY2016 2Q Change (%) Operating Income Operating income by segment -377 -565 -188 － ➢ Decrease in gross profit due to lower sales at Mister Donut -600 million yen ➢ Increase in gross profit due to improved cost ratio ＋600 milli
Slide 24: Other Businesses, Corporate
Summary of Core Businesses (3) Other Businesses, Corporate (millions of yen) FY2015 2Q FY2016 2Q Change (%) Other Businesses Sales by Segment 5,404 5,584 ＋180 ＋3.3 Operating Income by segment -5 143 ＋148 － ●Overseas (Consolidated subsidiaries) ・Mister Donut Shanghai became a consolidated subsidiary
Slide 25: Other Businesses (Overseas Businesses)
Summary of Core Businesses (3) Other Businesses (Overseas Businesses) Overseas Businesses ➢ Customer-level sales Jan. – June 2015 Jan. – June 2016 Change (%) Taiwan +47,255 (thousands of NTD) 462,345 509,600 (+10.2%) Clean & Care Shanghai +1,774 Businesses (thousands of CNY) 8,800 10,574 (+20.2%) So
Slide 26: Forecasts and Actual Results
Forecasts and Actual Results
Slide 27: FY2016 Forecasts and Actual Results
Forecast & Actual FY2016 Forecasts and Actual Results *Change from forecast announced on May 13, 2016. (millions of yen) Sales Operating Income Ordinary Income Net Income Forecast 82,800 1,600 2,100 1,200 Actual 81,091 2,514 3,406 2,105 Difference (%) -1,708(-2.1) +914(+57.2) +1,306(+62.2) +905(+75.
Slide 28: FY2016 Forecasts
DUSKIN BUO FY2016 Forecasts
Slide 29: FY2016 Forecasts (1)
Forecast FY2016 Forecasts (1) (millions of yen) Consolidated Sales Operating Income Ordinary Income Net Income FY2015 Actual 165,203 5,372 6,707 2,983 FY2016 Forecast 166,500 4,400 5,500 3,100 FY2016 Revised Forecast (Nov. 10) 163,000 5,000 6,500 3,200 FY2015 – Revised Forecast (%) -2,203（-1.3%） -37
Slide 30: FY2016 Forecasts (2)
Forecast FY2016 Forecasts (2) By Business Segment *Change from forecast announced on May 13, 2016 (millions of yen) Initial Forecast Revised Forecast (May 13) Major Factors (Nov. 10) Operating Margin (%) Operating Margin (%) Dust Control -900, Technical Service -200 Sales 112,600 ― 111,500 ― Clean &
Slide 31: FY2016 Forecasts (3)
Forecast FY2016 Forecasts (3) *Comparison with the same period of the previous year By Business Segment -2nd Half (millions of yen) FY2016 FY2015 2nd Half FY2016 2nd Half Actual Forecast Change Revised Forecast （ Full Year Forecast－1st Half Actual ） Operating Margin (%) Operating Margin (%) Operatin
Slide 32: Returns to Shareholders
DUSKIN BUOVREECS Returns to Shareholders
Slide 33: Returns to shareholders: Dividends
Returns to shareholders Returns to shareholders Dividends Steady and continuous dividend distribution in line with basic policy (Full-year total: 40 yen per share) ≪ Dividends per share (Actual & Forecasts) ≫ (yen) FY2014 FY2015 FY2016 (Forecast) End of 2nd Quarter 20 20 20 Year-end 20 20 20 Total (
Slide 34: Repurchase & cancellation of Company stock
Returns to shareholders Returns to shareholders Repurchase & cancellation of Company stock ≪ Number of shares repurchased ≫≪ Number of shares cancelled≫ FY2008 --FY2015 12,184,000 9,900,000 ※ FY2016 (1st Half) 889,200 ＊ Total since listing 13,073,200 9,900,000 (Shares of treasury stock as of Sept. 2
Slide 35: Our Initiatives: Medium-term Management Policy 2015
Our Initiatives Medium-term Management Policy 2015
Slide 36: Medium-term Management Policy – Commitment & Action
Medium-term Management Policy – Commitment & Action ■Basic Policy Business model development Develop business platform ◎Home Service Diversify customer contact points ◎Business Service Comprehensive hygiene management services New Growth ◎Life Care Service Develop market focusing on senior citizens’
Slide 37: Medium-term Management Policy Topics
Medium-term Management Policy Topics Mister Donut New business plan & policy (announced on Nov. 7) Acquisition of BIG APPLE Diverse human resources 37
Slide 38: Mister Donut New Business Plan & Policy
Mister Donut New Business Plan & Policy Mister Donut Brand Slogan Something good’s gonna happen Building brand value that directly appeal to customers’ emotional state, needs and aspirations NEW MISDO 38
Slide 39: Mister Donut New Business Plan & Policy
Mister Donut New Business Plan & Policy NEW MISDO～Enhance brand values Store format that meets the needs of target customers Home made donuts Improve menu items to encourage more customers to visit the store (meals, snack, dessert) 【Takeout only store】 Mister Donut to go Mitsukyo Life Shop Opened on
Slide 40: Shop renovation to best meet the customers' needs
Mister Donut New Business Plan & Policy Shop renovation to best meet the customers’ needs ➤Different types of store format to meet the major customers’ needs and reasons to visit Mister Donut shops NEW MISDO V/21 V/21 Food Court to go Renewal （Takeout only） type With kitchen Without kitchen Location
Slide 41: Shop renovation to best meet the needs of customers
Mister Donut New Business Plan & Policy Shop renovation to best meet the needs of customers ➤Open a store with kitchen and stores without kitchen in the same neighborhood areas Improve management efficiency Low investment shops in the Enhance production efficiency through shop development previously
Slide 42: Takeout only store with items suitable for gifts
Mister Donut New Business Plan & Policy Takeout only store with items suitable for gifts Handy to purchase on the Donuts available only at Mister Donut to go way to/back from work Gift for families ＋ Good-for-gift items 42
Slide 43: Store renovation and new opening targets
Mister Donut New Business Plan & Policy Store renovation and new opening to meet the major customers’ needs and reasons to visit Mister Donut shops NEW MISDO – Number of shops Ｖ/２１ (with kitchen) 36 shops Ｖ/２１ as of Oct. 31, 2016 Goal (Food court type) by Mar. 31, 2021 Ｖ/２１ (no kitchen) 1,000 to go
Slide 44: Mister Donut New Business Plan & Policy
Mister Donut New Business Plan & Policy “Something good’s gonna happen. Mister Donut.” ●Enhance seasonal & event items Big Donut (diameter 18cm) Door opener released on Nov. 16 ●Introduce health-oriented products Low caffeine coffee Low fat donuts Customer ●Hospitality ・Service that makes local cust
Slide 45: Good Price Everyday
Mister Donut New Business Plan & Policy Good Price Everyday Prices changed for 35 kinds of donuts to 108- 140 yen (tax included) 45
Slide 46: Acquisition of Big Apple
Acquisition of Big Apple Made Big Apple Worldwide Holding Sdn.Bhd a subsidiary Big Apple brand is a donut chain operated in Malaysia and Cambodia. Sales FY2015 35,892,000 MYR （approx. 900 million yen) (ended in December 31, 2015) Malaysia 82 Number of shops (as of Nov. 4, 2016) Cambodia 5 （Company-o
Slide 47: Recruit Diverse Human Resources
Recruit Diverse Human Resources Secure human resources who play important roles in service business ■Recruit regular employees: employ people in non-regular positions as regular employees with limited transfers/changes within certain locations （Annual program） 【Terms】Monthly salary, bonus, retiremen
Slide 48: Reference
DUSKIN BUOVREECS Reference
Slide 49: Financial Summary - Non-consolidated Results
Reference 1 Financial Summary - Non-consolidated Results Non-consolidated (millions of yen) FY2015 1st Half FY2016 1st Half Increase/decrease Reference ended ended FY 2015 ended Sept. 30, 2015 Sept. 30, 2016 Amount % Mar. 31, 2016 Sales 69,149 67,051 -2,097 -3.0 138,697 Operating Income 1,566 1,274
Slide 50: Business Summary by Segment
Reference 2 Business Summary by Segment Clean & Care Group Home-visit Sales Residential Market Commercial Market Periodic Rent Periodic Rent Dust Control ・・・ Mops, mats, etc. Dust Control ・・・ Mops, mats, etc. Air Clean ・・・ Air-purifiers ・・・ Water-purifiers Clean Service ・・・ Bathroom products Water C
Slide 51: Customer-Level Sales (CLS)
Reference 3 Customer-Level Sales (CLS) *Sales of overseas businesses indicated here are the total sales from January to June. CLS by Business (millions of yen) FY2015 1st Half FY2016 1st Half Increase/ ended Sept. 30, 2015 ended Sept. 30, 2016 % decrease Clean & Care Group 136,677 136,562 -115 -0.1%
Slide 52: Recycle-Oriented Business Model at Dust Control Business
Reference 4 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 & Logistics