KOSAIDO Holdings Co.Ltd. · TSE:7868
KOSAIDO Holdings Co.Ltd — Q1 FY03/23 Earnings Presentation
40 slides from KOSAIDO Holdings Co.Ltd's earnings presentation, Aug 9, 2022
Slide 1: Q1 FY03/23 Financial Results Presentation
Q1 FY03/23 Financial Results Presentation Securities code: 7868 2022/8/9
Slide 2: Contents
0 Contents 1 Q1 FY03/23 Highlights P. 3 ・Quarterly Performance ・Analysis of Change in Operating Profit ・Segment Performance 2 Medium-Term Business Plan 2.0 (FY2022-FY2024) P. 17 ・Basic Policy ・Consolidated Financial Forecast ・Segment Forecast ３ Initiatives in FY03/23 P. 27 4 Shareholder Returns P. 3
Slide 3: Activities of KOSAIDO Holdings
Activities of KOSAIDO Holdings • Measures to address rising costs • Digital transformation (BPO, HR Tech) • Thorough business management ⊕ Investments for future growth Copyright 2022 KOSAIDO Holdings Co., Ltd. All Rights Reserved. 2
Slide 4: Q1 FY03/23 Highlights
１ Q1 FY03/23 Highlights 3
Slide 5: Q1 FY03/23 Performance Highlights
1-01 Q1 FY03/23 Performance Highlights • Q1 consolidated results: Net sales and operating profit both increased from the same period last year. (Net sales +7.1% YoY, Operating profit +42.9% YoY) • Started Medium-Term Business Plan 2.0 (FY2022- FY2024) • Launched funeral planning services in earnest
Slide 6: Q1 FY03/23 Consolidated Financial Results
1-02 Q1 FY03/23 Consolidated Financial Results • Funeral Services: Sales and profit increased as the number of cremation services handled and visitors increased steadily. • Information: Profitability improved due to higher in-house production ratio (plant utilization ratio) in the printing business.
Slide 7: Quarterly Trend (Net Sales)
1-03 Quarterly Trend (Net Sales) • Net sales increased 7.1% from the same period last year. This was attributable to an increase in cremation fee sales, which expanded as the number of cremation services handled in the Funeral Services segment increased, as well as an increase in temporary staffing
Slide 8: Quarterly Trend (Cost of Sales)
1-04 Quarterly Trend (Cost of Sales) • Cost of sales increased from the same period last year (+40 million yen, -4.3pt cost of sales ratio) • Despite an increase in labor costs as a result of greater sales at a temporary staffing company acquired in the previous fiscal year and in the temporary staf
Slide 9: Quarterly Trend (SG&A Expenses)
1-05 Quarterly Trend (SG&A Expenses) • SG&A expenses increased from the same period last year (+339 million yen, +2.8pt SG&A expense ratio) • Personnel expenses as an investment for future growth increased (Millions of yen / %: SG&A expense ratio) 2,500 1,952 2,005 （17.0%） （25.6%） 2,000 1,804 1,769
Slide 10: Quarterly Trend (Number of Employees)
1-06 Quarterly Trend (Number of Employees) • Increased from the same period last year due to an enhancement of personnel resources in each segment (Number of employees / %: Composition ratio) * Number inside parentheses “( )” indicate YoY change Sep. 2020 1,400 ★ Closed Toyonaka Plant 1,252 1,251 1,
Slide 11: Quarterly Trend (Operating Profit by Segment)
1-07 Quarterly Trend (Operating Profit by Segment) • Operating profit increased 42.9% from the same period last year as the Funeral Services segment’s funeral halls business expanded and the loss in the Information segment’s printing business narrowed due to improved utilization ratio. (Millions of
Slide 12: Q1 FY03/23: Analysis of Change in Operating Profit (Major Items)
1-08 Q1 FY03/23: Analysis of Change in Operating Profit (Major Items) • Operating profit increased due to higher sales in the Funeral Services and HR segments, despite higher labor costs and personnel expenses resulting from the launch of a new business and the strengthening of the staffing structur
Slide 13: Q1 FY03/23 Financial Results Summary by Business Segment
1-09 Q1 FY03/23 Financial Results Summary by Business Segment (Millions of yen) Net sales YoY change Operating profit YoY change Q1 FY03/23 Q1 FY03/22 Amount % Q1 FY03/23 Q1 FY03/22 Among % Funeral Services 2,404 2,133 271 12.7 699 597 102 17.1 ー Information 3,838 3,948 -110 -2.8 -44 -199 155 (Loss
Slide 14: Q1 FY03/23 Funeral Services Segment (YoY)
1-10 Q1 FY03/23 Funeral Services Segment (YoY) (Millions of yen) Net Sales YoY change Operating profit YoY change Q1 FY03/23 Q1 FY03/22 Amount % Q1 FY03/23 Q1 FY03/22 Amount % Funeral Services 2,404 2,133 271 12.7 699 597 102 17.1 Operating environment • COVID-19 was temporarily contained, and deman
Slide 15: Q1 FY03/23 Information Segment (YoY)
1-11 Q1 FY03/23 Information Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Q1 FY03/23 Q1 FY03/22 Amount % Q1 FY03/23 Q1 FY03/22 Amount % Information 3,838 3,948 -110 -2.8 -44 -199 155 ー (Loss narrowed) Operating environment • Demand for publication printing continue
Slide 16: Q1 FY03/23 HR Segment (YoY)
1-12 Q1 FY03/23 HR Segment (YoY) (Millions of yen) Net sales YoY change Operating profit YoY change Q1 FY03/23 Q1 FY03/22 Amount % Q1 FY03/23 Q1 FY03/22 Amount % HR 1,589 1,230 359 29.1 19 55 -36 -65.6 Operating environment • Recruiting demand was on a recovery trend due to the temporary containment
Slide 17: Consolidated Balance Sheet
1-13 Consolidated Balance Sheet (Millions of yen) As of March 31, 2022 As of June 30, 2022 Difference Current assets 31,350 26,695 -4,655 Cash and deposits 21,662 18,716 -2,946 Notes and accounts receivable– 7,131 4,723 -2,408 trade Non-current assets 42,380 41,799 -581 Property, plant and equipment
Slide 18: Medium-Term Business Plan 2.0 (FY2022-FY2024)
Medium-Term ２ Business Plan 2.0 (FY2022-FY2024) 17
Slide 19: Medium-Term Business Plan 2.0 Basic Policy
2-01 Medium-Term Business Plan 2.00 Basic Policy 1. Enter the funeral planning services business. 2. Metamorphose into an “ultra-aging society” stock. 3. Reinstate dividends and enhance shareholder returns. Copyright 2022 KOSAIDO Holdings Co., Ltd. All Rights Reserved. 18
Slide 20: Medium-Term Business Plan 2.0 Performance Plan (Consolidated)
2-02 Medium-Term Business Plan 2.0｜Performance Plan (Consolidated) (Millions of yen) FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Actual Actual Actual Plan Plan Plan Net sales 35,088 31,497 35,361 37,800 40,600 44,400 Operating profit 2,328 2,017 3,729 3,800 4,700 6,200 Ordinary profit 2,210 1,82
Slide 21: Funeral Services Segment Business Environment & Market Trends
2-03 Funeral Services Segment｜Business Environment & Market Trends ✓ Demographic forecasts show that the number of deaths will be on the rise (until about 2040). ✓ Cremation services: Crematorium ownership requires a municipal permit, creating a significant barrier to entry. External ✓ Funeral plann
Slide 22: Tokyohakuzen's Strengths and Business Features
2-04 Tokyohakuzen’s Strengths and Business Features 5 Reasons Why Customers Choose Tokyohakuzen Development of Facility that integrates environmentally crematoriums and Luxurious space friendly crematory design funeral venues systems Capable of Attentive and accommodating detailed service for variou
Slide 23: Medium-to Long-Term Vision in Senior & Ending Market
2-05 Medium-to Long-Term Vision in Senior & Ending Market Horizontal development of crematory contracting (Operation of crematoriums, Partnership with provision of funeral halls) Prepare furnace manufacturer Tokyohakuzen Prepare Export cremation furnaces Prepare Expansion into funeral planning servi
Slide 24: Funeral Services Segment Most Recent Investment Plan
2-06 Funeral Services Segment｜Most Recent Investment Plan Amount Overview Period (millions of yen) Expansion of Expansion of funeral halls in areas funeral halls with few funeral facilities (Ochiai, 850 Until March 2023 Kirigaya, etc.) Improvements to Tokyohakuzen’s Improvement of infrastructure and
Slide 25: Funeral Services Segment Financial Plan & Business Strategy
2-07 Funeral Services Segment｜Financial Plan & Business Strategy Financial Plan (Millions of yen) FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Actual Actual Actual Plan Plan Plan Net sales 8,735 8,333 9,384 10,860 12,795 14,790 Funeral Operating profit services Old segment 2,564 2,437 3,083 3,380
Slide 26: Information Segment Financial Plan & Business Strategy
2-08 Information Segment｜Financial Plan & Business Strategy Financial Plan (Millions of yen) FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Actual Actual Actual Plan Plan Plan Net sales 20,789 18,496 19,120 19,570 19,680 19,770 Operating profit Information Old segment 55 163 377 1 80 140 segment di
Slide 27: HR Segment Financial Plan & Business Strategy
2-09 HR Segment｜Financial Plan & Business Strategy Financial Plan (Millions of yen) FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Actual Actual Actual Plan Plan Plan Net sales 5,545 4,663 6,856 7,370 8,125 9,840 Operating profit HR Old segment 159 -65 341 110 400 700 disclosure standards Segment O
Slide 28: Initiatives in FY03/23
３ Initiatives in FY03/23 (FY2022-FY2024) 27
Slide 29: Initiatives in FY03/23 Plan and Status in the 1st Year of MTBP
3-01 Initiatives in FY03/23｜Plan and Status in the 1st Year of MTBP Partnership Horizontal In parallel with preparations development of for the partnership, we will with furnace crematory initiate dialogue with local manufacturer contracting governments. Confidential Export cremation Start after par
Slide 30: FY03/23 Financial Forecast
3-02 FY03/23 Financial Forecast (Millions of yen) FY03/23 YoY change Full-Year FY03/22 Forecast Amount % Net sales 37,800 35,361 +2,439 6.9 Operating profit 3,800 3,729 +71 1.9 Ordinary profit 3,700 3,610 +90 2.5 Profit before income taxes 3,690 3,627 +63 1.7 Income taxes 740 17 +723 4,252.9 Profit
Slide 31: Shareholder Returns
４ Shareholder Returns 30
Slide 32: Shareholder Returns Dividend Forecast
4-01 Shareholder Returns｜Dividend Forecast (Millions of yen) FY03/20 FY03/21 FY03/22 FY03/23 FY03/24 FY03/25 Actual Actual Actual Plan Plan Plan Net profit -2,671 854 3,643 2,950 3,750 4,800 Target dividends (in exact yen) - - - 443 1,125 1,440 Target dividend payout ratio - - - 15% 30% 30% ✓ Resume
Slide 33: Appendix: Company Introduction
Appendix: A Company Introduction 32
Slide 34: Company Overview
A-01 Company Overview Company Establish KOSAIDO Holdings Co., Ltd. ment January 1949 name 35,361 Total 68,498 37,962 Net sales Net assets million yen assets million yen million yen (FY03/22) (as of June 30, 2022) (as of June 30, 2022) Represent ative Hiroshi Kurosawa, President & CEO Number of emplo
Slide 35: History
A-02 History Kosaido Group 2021 Transitioned to a holding 1984 company structure Tokyohakuzen joined the Group (Started ending-related business) 1970 Founded Japan’s first 2022 computer typesetting Launched company Funeral planning Services 2013 (Kosaido Lifewell, Gran Established Vietnam subsidiary
Slide 36: 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 gratitude VALUE through individual challenges and strong organizational connections. Based on our management philosophy of “Kosai,” whi
Slide 37: KOSAIDO Group
[Main businesses] Crematory operation and A-04 KOSAIDO Group provision of funeral halls Ending-related Business Funeral planning services Ending-related business Further enrich 100-year lives. [Main businesses] Information Solution Business Offset printing (publishing, commercial) Newspaper printing
Slide 38: 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 Value creation for sustainable economic activities Developing equitable and diverse communities of "contributing to society at Even in a fast-changing worl
Slide 39: 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 2022 KOSAIDO Holdings Co., Ltd. All
Slide 40: 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