Slide 1: Financial Results FY2021 FH (Apr.-Sept. 2021)
Financial Results FY2021 FH (Apr.-Sept. 2021) Duskin Co., Ltd. November 17, 2021
Slide 2: Cautionary Statements
Cautionary Statements n These materials contain forward-looking statements concerning forecasts, goals, strategies and other matters related to the Company, including its consolidated subsidiaries. n These forward-looking statements are based on projections and assumptions made by the Duskin Group i
Slide 3: Table of Contents
Table of Contents n Financial Summary (Consolidated Basis) Financial Highlights 6 Sales 7 Operating Income 9 Ordinary Income 11 Net Income 13 Balance Sheet 15 n Review by Business Segment Financial Highlights 17 Direct Selling Group 18 Food Group 22 Other Businesses and Corporate 25 Overseas and Oth
Slide 4: Table of Contents
Table of Contents n Initiatives to Address Business Issues Duration of the Medium-Term Management Policy 36 Initiatives to Address Business Issues 37 Initiatives of the Direct Selling Group 38 Initiatives of the Food Group 42 Proactive Approaches to ESGs and SDGs 47 n Reference Financial Summary (No
Slide 5: Financial Summary (Consolidated Basis)
Financial Summary (Consolidated Basis) FY2021 FH (Apr.-Sept. 2021)
Slide 6: Financial Highlights
Financial Summary (Consolidated Basis) Financial Highlights Duskin Group (Consolidated) Millions of yen FY2021 FY2019 FY2020 FH FH Change FH Change (Apr.-Sept. 2021) (Apr.-Sept. 2019) (Apr.-Sept. 2020) YoY (%) YoY (%) Sales 80,213 79,157 +1,056 +1.3 74,060 +6,153 +8.3 Operating income 6,346 3,698 +2
Slide 7: Sales (1)
Financial Summary (Consolidated Basis) Sales (1) Sales SH FH Millions of yen 200,000 Forecast 161,031 158,699 159,102 160,500 153,770 150,000 Forecast 80,764 80,347 80,286 79,945 79,710 100,000 50,000 80,266 78,351 79,157 74,060 80,213 0 FY2017 FY2018 FY2019 FY2020 FY2021 7
Slide 8: Sales (2)
Financial Summary (Consolidated Basis) Sales (2) Sales 80,213 million yen YoY growth: +6,153 million yen (+8.3%) FY2020 FH FY2021 FH Change Millions of yen (Apr.-Sept. 2020) (Apr.-Sept. 2021) YoY (%) Sales to outside customers 52,015 53,848 +1,832 +3.5 Direct Selling Intersegment sales 278 333 +54 +
Slide 9: Operating Income (1)
Financial Summary (Consolidated Basis) Operating Income (1) Operating margin Operating income SH Forecast FH 5.2% 10,000 5.0% Millions of yen 4.7% Forecast 4.1% 8,400 7,954 7,557 8,000 3.0% Forecast 6,577 2,053 (2.6) 3,211 3,576 6,000 (4.0) (4.5) 2,878 4,651 (3.6） 6,346 4,000 1,813 (7.9) (2.3) 4,346
Slide 10: Operating Income (2)
Financial Summary (Consolidated Basis) Operating Income (2) Operating Income 6,346 million yen YoY growth: +3,509 million yen (+123.7%) Major Factors Direct Selling Group Higher gross profit due to higher sales; improved cost-of-sales ratio Food Group Higher gross profit due to higher sales; showcas
Slide 11: Ordinary Income (1)
Financial Summary (Consolidated Basis) Ordinary Income (1) Ordinary income Ordinary income margin Forecast SH 6.5% Millions of yen 6.3% FH 5.6% Forecast 12,000 5.0% 10,011 10,500 4.3% 10,000 8,978 Forecast 7,929 2,995 (3.7) 8,000 4,739 6,633 3,737 (5.9) (4.6) 6,000 3,813 (4.8) 2,671 (3.4) 7,504 4,00
Slide 12: Ordinary Income (2)
Financial Summary (Consolidated Basis) Ordinary Income (2) Ordinary income 7,504 million yen YoY growth: +3,541 million yen (+89.4%) Major Factors 1. Operating income +3,500 million yen 2. Non-operating income/loss ±0 million yen Ø Decrease in share of profit of investments accounted for using -200
Slide 13: Net Income (1)
Financial Summary (Consolidated Basis) Net Income (1) Net income margin Net income SH FH Forecast 4.5% Forecast 8,000 3.8% 3.5% Millions of yen 3.3% 7,200 1.8% 5,984 Forecast 5,591 6,000 5,324 2,024 (2.5) 1,753 2,590 (3.2) 2,807 (2.2) (3.5) 4,000 2,821 5,175 (6.5) 3,570 3,394 1,428 2,000 (4.4) (4.3)
Slide 14: Net Income (2)
Financial Summary (Consolidated Basis) Net Income (2) Net income 5,175 million yen YoY growth: +3,781 million yen (+271.4 %) Major Factors 1. Operating income +3,500 million yen 2. Extraordinary income/loss +1,300 million yen Ø Decrease in the amount of COVID- 19 relief money +1,600 million yen Ø Pr
Slide 15: Balance Sheet
Financial Summary (Consolidated Basis) Balance Sheet Balance sheet Millions of yen Mar. 31, 2021 Sept. 30, 2021 Change Major factors Cash and deposits Notes and accounts receivable-trade Notes, accounts receivable-trade and Current assets 69,239 73,519 +4,280 contract assets Securities Merchandise a
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Slide 17: Review by Business Segment
DUSKIN BUOGREECS Review by Business Segment
Slide 18: Financial Highlights
Review by Business Segment Financial Highlights FY2020 full year FY2020 FH FY2021 FH Change (Apr. 2020-Mar. 2021) (Apr.-Sept. 2020) (Apr.-Sept. 2021) Operating margin Operating margin Operating margin YoY (%) Sales 105,339 52,294 54,181 +1,887 +3.6% Direct Selling Group Operating +21.0% 8,779 8.3% 5
Slide 19: Direct Selling Group (1)
Review by Business Segment (1) Direct Selling Group (1) Sales Operating income SH Operating margin FH SH Millions of yen Forecast FH Forecast 120,000 108,499 16,000 Millions of yen 105,339 9.7％ 8.3％ 100,000 Forecast 12,000 10,554 Forecast 80,000 54,317 8,779 53,045 Forecast 4,088 60,000 8,000 （7.5）
Slide 20: Direct Selling Group (2): Residential Customer Market
Review by Business Segment (1) Direct Selling Group (2) Change Millions of yen FY2020 FH FY2021 FH Sales YoY (%) Sales to outside customers 52,015 53,848 +1,832 +3.5 Intersegment sales 278 333 +54 +19.7 Total 52,294 54,181 +1,887 +3.6 l Sales for the Clean Service businesses declined. Ø Growth rate
Slide 21: Direct Selling Group (3): Commercial Customer Market
Review by Business Segment (1) Direct Selling Group (3) Change Millions of yen FY2020 FH FY2021 FH Sales Sales to outside customers 52,015 53,848 +1,832 YoY (%) +3.5 Intersegment sales 278 333 +54 +19.7 Total 52,294 54,181 +1,887 +3.6 l Sales for the Clean Service businesses declined. Ø Growth rate
Slide 22: Direct Selling Group (4) Operating income
Review by Business Segment (1) Direct Selling Group (4) Change Operating income Millions of yen FY2020 FH FY2021 FH YoY (%) Segment income 5,345 6,465 +1,120 +21.0 Ø Increase in gross profit due to higher sales +900 million yen Ø Increase in gross profit resulting from +300 million yen lower cost ra
Slide 23: Food Group (1)
Review by Business Segment (2) Food Group (1) Sales Operating income SH Operating margin Forecast FH SH Millions of yen 40,625 Forecast 36,561 FH 6.5％ 40,000 Millions of yen Forecast 3,000 2,636 Forecast 2,600 30,000 Forecast 20,709 20,618 2,200 884 （4.3） 1,800 1.1％ 20,000 1,400 1,000 1,751 19,915 4
Slide 24: Food Group (2) Sales
Review by Business Segment (2) Food Group (2) Change Millions of yen FY2020 FH FY2021 FH YoY (%) Sales Sales to outside customers 15,938 19,908 +3,969 +24.9 Intersegment sales 3 7 +3 +108.2 Total 15,942 19,915 +3,973 +24.9 l Mister Donut Ø Growth rate of total customer-level sales (CLS) : +26.2% (1Q
Slide 25: Food Group (3) Operating income
Review by Business Segment (2) Food Group (3) Change Operating income Millions of yen FY2020 FH FY2021 FH YoY (%) Segment income 1,751 +1,983 Ø Increase in gross profit due to higher sales +1,600 million yen Ø Increase in gross profit due to improved cost ratio +600 million yen l Compared to the pre
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Slide 27: Other Businesses and Corporate
Review by Business Segment (3) Other Businesses and Corporate Change Millions of yen FY2020 FH FY2021 FH YoY (%) Other businesses Sales to outside customers 6,105 6,456 +351 +5.8 Intersegment sales 1,336 1,231 -104 -7.8 Total 7,441 7,688 +246 +3.3 Segment income 268 538 +269 +100.1 l Overseas (conso
Slide 28: Overseas and Other Businesses
Review by Business Segment (3) Overseas and Other Businesses Overseas businesses Customer-level sales and the number of locations Customer-level sales are cumulative totals from January to June 2021; the number of locations is as of June 30, 2021. Direct selling businesses Country/ Type of FY2020 FY
Slide 29: Forecast vs. Actual Results
DUSKIN BUOGREECS Forecast vs. Actual Results
Slide 30: FY2021 FH: Comparison of Forecast and Actual Results
Forecast vs. Actual Results FY2021 FH: Comparison of Forecast and Actual Results Consolidated results The table below shows changes from the forecast released on August 4, 2021. Millions of yen Sales Operating income Ordinary income Net income Forecast (as of 8/4/21) 79,000 4,400 5,300 3,500 Actual
Slide 31: FY2021 Full-Year Forecasts
DUSKIN BUOSREE FY2021 Full-Year Forecasts
Slide 32: FY2021 Full-Year Forecasts (1)
Full-Year Forecasts FY2021 Full-Year Forecasts (1) Mister Donut substantially exceeded the targets of the initial projections for both sales and profits. Although results for the Clean Service Businesses, the Direct Selling Group’s core business, are still below projections, consolidated results for
Slide 33: FY2021 Full-Year Forecasts (2)
Full-Year Forecasts FY2021 Full-Year Forecasts (2) Forecast for the SH of FY2021 by segment Year-over-year comparison FY2021 FY2020 FY2021 SH forecast Change FY forecast SH actual (FY fcst - FH actual) Operating Operating Operating margin margin margin YoY (%) Direct Selling Sales 108,499 53,045 54,
Slide 34: FY2021 Full-Year Forecasts (3)
Full-Year Forecasts FY2021 Full-Year Forecasts (3) Forecast for the SH of FY2021 by segment FH vs. SH Millions of yen FY2021 FY2021 FY2021 SH forecast Change FY forecast FH actual (FY fcst - FH actual) Operating Operating Operating margin margin margin YoY (%) Direct Selling Sales 108,499 54,181 54,
Slide 35: Returns to Shareholders
DUSKIN BUOGREECS Returns to Shareholders
Slide 36: Dividend per Share and Payout Ratio
Returns to Shareholders Dividend per Share and Payout Ratio We set the dividend amount for each fiscal year with the goal of achieving a consolidated dividend payout ratio of 50% and pay stable cash dividends. For FY2021, the annual dividend is scheduled to be 73 yen. (%) (Yen) 配当額 Dividend amount 配
Slide 37: Initiatives to Address Business Issues
Initiatives to Address Business Issues
Slide 38: Duration of the Medium-Term Management Policy
Duration of the Medium-Term Management Policy The latest Medium-Term Management Policy was initially scheduled to begin in FY2021 and be in effect through FY2023. Due to uncertainty about the future caused by the COVID-19 pandemic, however, the start of the plan has been pushed back one year to cove
Slide 39: Future initiatives: Four strategic themes
Initiatives to Address Business Issues Future initiatives: Four strategic themes Expanding existing Investment in new growth businesses opportunities Optimizing business portfolios Generating new value and boosting the value chain with a view to the future Implementing structural Coexistence with re
Slide 40: Initiatives of the Direct Selling Group (1)
Initiatives of the Direct Selling Group (1) The Direct Selling Group sets hygiene and cleanliness as the area of primary importance Hygiene and cleanliness Three domains Work-life management Senior support Besides hygiene and cleanliness, the Group also focuses on work-life management and senior sup
Slide 41: Initiatives of the Direct Selling Group (2)
Initiatives of the Direct Selling Group (2) Strengthening hygiene functions of core hygiene and cleanliness products Twenty-two of Duskin’s 30 types of mops have received the antivirus processing and antibacterial deodorant processing SEK Marks*. * The SEK Mark is a certification mark administered b
Slide 42: Initiatives of the Direct Selling Group (3)
Initiatives of the Direct Selling Group (3) Event Hygiene Services “One-stop” packages of support for event operation, featuring thorough hygiene and cleanliness control No. of contacts for vaccination sites 876 (4,500 million yen) Air conditioner cleaning service Demand rises in tandem with the lon
Slide 43: Initiatives of the Direct Selling Group (4)
Initiatives of the Direct Selling Group (4) Introducing antibacterial/antiviral filters Air purifier filters are treated with antibacterial and antiviral agents. New dust collector filters treated with disinfectant inhibit bacterial growth*1 and curb viruses*2. *1: Antibacterial testing Test laborat
Slide 44: Initiatives of the Food Group (1)
Initiatives of the Food Group (1) “Something good’s gonna happen” Key strategy 1 Acquire new markets Key strategy 2 Maintain and increase sales of primary products Key strategy 3 Offer seasonal products; trend-making The goal is to bring happy moments to our customers in store or at home. 42
Slide 45: Initiatives of the Food Group (2)
Initiatives of the Food Group (2) Acquire new markets Rendering MISDO online ordering system more convenient l Future date ordering becomes available l Pick-up lockers installed at a shop on a trial basis Online ordering system Pick-up lockers Future date ordering function Ordering for a future date
Slide 46: Initiatives of the Food Group (3)
Initiatives of the Food Group (3) Acquire new markets New drive-through locations established in suburbs l In order to establish locations in the suburbs, we have developed a shop format featuring a drive-through and meal menu options. l We are also developing — on a trial basis — a new roadside sho
Slide 47: Initiatives of the Food Group (4)
Initiatives of the Food Group (4) Acquire new markets Establishing more shops in urban areas by the use of the central kitchen l In addition to kitchen-less locations designed for small locations, as well as locations specializing in takeout, we are also establishing small locations where customers
Slide 48: Initiatives of the Food Group (5)
Initiatives of the Food Group (5) Maintain and increase sales of primary products l Create new basic-type donuts l Enhance the MISDO GOHAN light meal menu l Improve the quality and taste of existing regular products Offer seasonal products; trend-making l MISDO Meets collaborative products l Limited
Slide 49: Proactive Approaches to ESGs and SDGs (1)
Proactive Approaches to ESGs and SDGs (1) Moving forward with the concept of CSV (Creating Shared Value) and by strengthening our governance, we will enhance our corporate value. Value creation Material issues for value creation Contribution to SDGs Expand products and services in the hygiene domain
Slide 50: Proactive Approaches to ESGs and SDGs (2)
Proactive Approaches to ESGs and SDGs (2) Duskin Green Target 2030 Reducing waste and efficient Responding to climate change resource use help build helps achieve a recycling-oriented society a decarbonized society 2030 Targets Reduce food waste by 50% (vs. 2020) Renewable energy use rate 50％ Reduce
Slide 51: Reference
DUSKIN BUOGREECS Reference
Slide 52: Financial Summary (Non-consolidated Basis)
Reference 1 Financial Summary (Non-consolidated Basis) Duskin Co., Ltd. (Non-consolidated) Millions of yen Change Ref. FY2020 FY2020 FH FY2021 FH Full year YoY (%) Sales 58,999 64,865 5,865 +9.9 123,004 Operating income 2,093 4,849 2,756 +131.7 2,442 Operating margin 3.5% 7.5% +4.0 2.0% Ordinary inc
Slide 53: Business Segments and Their Businesses
Reference 2 Business Segments and Their Businesses Sales include: (1) sales from rentals, (2) sales of goods and services, (3) royalties (no Direct Selling Group royalty charged for periodic rental businesses) and (4) sales at company-owned outlets. Direct Selling For Residential Customer Market For
Slide 54: Customer-Level Sales (CLS)
Reference 3 Customer-Level Sales (CLS) Sales of overseas businesses indicated here are the CLS by type of business total sales from January to June. Millions of yen YoY change FY 2020 FH FY 2021 FH Amount Growth rate (%) Direct Selling Group 124,525 133,499 +8,974 +7.2% Dust Control (Domestic) Resid
Slide 55: Recycle-oriented Business Model of the Dust Control Business
Reference 4 Recycle-oriented Business Model of the Dust Control Business Based on the idea to fully recycle the products Mop and mat rentals through repeated use until the end of their useful lives Rental Franchisees pay deposit. (Delivery = rental) (Franchisees record the sales.) Production & Logis