Tokyo Stock Exchange, Prime Market
Stock code: 9628

SAN HOLDINGS, INC.
Results of Operations(Fiscal Year Ended March 31, 2024)
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

May 21, 2024

Contents
1.

FY3/24 Financial Overview ……………………………………………… P.03

2.

KOEKISHA Financial Highlights ………………………………………… P.10

3.

SOU-SEN and TARUI Financial Highlights ………………………… P.13

4.

FY3/25 Revenue and Earnings/Dividend Forecasts ………… P.16

5.

Progress in Medium-term Management Plan……………………P.20

6.

Initiatives for Sustainability………………………………………………P.26

7.

Shareholder Distribution Policy…………………………………………P.30
2

1.

FY3/24 Financial Overview
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

FY3/24 Financial Highlights

1.

Operating revenue increased 3.6% mainly because of higher average revenue per
ordinary funeral and an increase in the number of large funerals.

2.

Operating expenses increased 4.8% and SG&A expenses increased 5.0%. This was
the result of planned up-front expenditures for growth, including expenditures for
personnel and recruiting, and IT system depreciation.

3.

Operating profit decreased 2.0% and operating margin was 16.9% (-1.0pt)

4.

Made Tokyo Ceremony Co., Ltd., a wholly owned subsidiary as part of activities for
growth of the funeral business, a key goal of the current medium-term
management plan.

5.

For the growth of the end-of-life support business, another key goal of thismanagement plan, the customer services unit of KOEKISHA was divested andabsorbed by wholly owned subsidiary Life Forward CO., LTD., Ltd., on April 1, 2024.

4

Overview of FY3/24 Consolidated Results of Operations
FY3/23

YoY change

FY3/24

Amount(Millions of yen)

Initial forecast*%

FY3/24

Amount%Operating revenue

21,66322,437773

3.6%

22,700

-262

-1.2%

Operating expenses

16,325

17,104779

4.8%

17,577

-472

-2.7%

SG&A expenses

1,470

1,543

73

5.0%

1,563

-19

-1.2%

Operating profit

3,868

3,789

-78

-2.0%

3,570

219

6.1%

(17.9%)(16.9%)-1.0pt(15.7%)+1.2ptOrdinary profit

3,843

3,800

-43

-1.1%

3,560

240

6.7%

Profit attributableowners of parent

2,783

2,363

-420

-15.1%

2,270

93

4.1%

(Operating margin)*FY3/24 forecasts were announced on May 11, 2023.

5

Overview of FY3/24 Quarterly Consolidated Results of Operations(Millions of yen)

1Q
Results

YoY change%

2Q
Results

YoY change%

3Q
Results

YoY change%

4Q
Results

YoY change%

Operating revenue

5,081

4.6%

5,325

1.9%

5,711

1.5%

6,319

6.1%

Operating expenses

3,948

7.7%

4,042

2.7%

4,416

8.2%

4,697

1.2%

SG&A expenses

370

6.2%

373

7.2%

397

11.7%

402

-3.5%

Operating profit

761

-9.2%

910

-3.6%

897

-24.3%

1,219

35.6%

(15.0%)-2.3pt(17.1%)-1.0pt(15.7%)-5.4pt(19.3%)

4.2pt

Ordinary profit

766

-7.2%

918

-2.1%

890

-24.1%

1,225

35.1%

Profit

497

-5.5%

588

-15.0%

564-21.1%

712-16.1%(Operating margin)

Use the chart generator on the SAN HOLDINGS website to see changes in major quarterly results items for the past three years.
https://www.san-hd.co.jp/ir/finance/chart.html#gyouseki1

6

The Group’s Number of Funerals and Average Revenue Per Funeral Number of funerals: No change from FY3/23 due to declines in deaths and funerals involving the
pandemic.
 Average revenue per funeral: Increased 31,000 yen (2.9%) in FY3/24 because of more large funerals
and a recovery of average revenue per ordinary funeral.

1,082

5,000

1,024

1,039

948

1,135

1,047

1,069

1,069

1,118

1,093

1,105

1,128

1,000

4,000

Number of funerals

1,200

800
3,000
600
Number of funerals

2,000

400

Average revenue per funeral
1,000

0

200

3,964

3,569

3,894

4,567

3,513

3,998

4,221

4,494

3,603

3,852

4,152

4,527

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/22 Number of Funerals: 15,994

FY3/23 Number of Funerals: 16,226

FY3/24 Number of Funerals: 16,134

0

Average revenue per funeral (Thousands of yen)

Quarterly number of funerals and average revenue per funeral7Changes in Operating Profit
The SAN HOLDINGS Group: Changes in operating profit

Operating profit (Millions of yen)

[SAN HOLDINGS]
Increases in building and landleasing at new funeral halls,
IT amortization andother expenses[Three funeral companies]
Revenue growth

FY3/23Operating profit[Three funeral companies]
Expenses increased due to revenue growth(Includes up-front expenditures for growth)

FY3/24
Operating profit

8Changes in the Balance Sheet(Millions of yen)

Current assets

March 31, 2023 March 31, 2024

11,03911,835

YoY change

796

Non-current assets

25,18925,750560

Total assets
Current liabilities

36,2293,559

37,585
3,636

1,356
76

Non-current liabilities

1,054

1,071

17

Total liabilities
Total net assets

4,613
31,615

4,708
32,87794
1,262

Total liabilities andnet assets

36,22937,585

1,356

Major items
Cash and deposits
Trade accounts receivable and contract
assetsProperty, plant and equipment
Intangible assets
Investments and other assets

597
443
40
401
118
35
45
48
-63

Trade accounts payable
Provision for bonuses
Asset retirement obligations
Long-term accounts payable-other
Retained earnings
Treasury shares

1,877
-631

Use the chart generator on the SAN HOLDINGS website to see changes in major balance sheet items during the past 10 years.
https://www.san-hd.co.jp/ir/finance/chart.html#gyouseki1

9

2.

KOEKISHA Financial Highlights
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

KOEKISHA: Number of Funerals and Average Revenue Per Funeral Number of funerals: Decreased by 159 (1.2%) in FY3/24 due to declines in deaths and funerals involving the
pandemic.
 Average revenue per funeral: Increased 30,000 yen (2.7%) in FY3/24 because of more large funerals and a recovery
of average revenue per ordinary funeral.
Quarterly number of funerals and average revenue per funeral
1,041

1,060

1,116

959

1,070

1,114

1,106

1,146

1,127

1,132

1,166
1,200

Average revenue per funeral (Thousands of yen)

4,000

1,168

1,000

Number of funerals

3,000
800
2,000

600

Number of funerals

400

Average revenue per funeral

1,000

200
0

3,268

2,930

3,158

3,727

2,842

3,223

3,403

3,582

2,899

3,060

3,292

3,640

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY3/22 Number of Funerals: 13,083

FY3/23 Number of Funerals: 13,050

FY3/24 Number of Funerals: 12,891

011KOEKISHA: Increase/Decrease in Funeral Service Revenue

Operating revenue (Millions of yen)

KOEKISHA: Changes in funeral service revenue[Kansai area]
Decrease in revenue as thenumber of ordinary funerals
decreased by 300

FY3/23
Funeral service revenue[Tokyo area]
Increase in revenue as thenumber of ordinary funerals
increased by 113[Kansai area]
Increase in revenue as thenumber of large funerals
increased by 20[Tokyo area]
Increase in revenue as thenumber of large funerals
increased by 8

FY3/24
Funeral service revenue

12

3.

SOU-SEN and TARUI Financial Highlights
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

SOU-SEN Financial Highlights
 Number of funerals: Decreased by 58 (3.7%) in FY3/24
 Average revenue per funeral: Increased 46,000 yen (5.5%) in FY3/24 because of acontribution of higher revenue per ordinary funeral resulting from a larger number ofmourners at funerals.
FY3/23
Number of funerals

YoY change

FY3/24

Amount

%

1,589

1,531

-58

-3.7%

841

887

46

5.5%

Operating revenue(Millions of yen)

1,515

1,560

44

2.9%

Operating profit(Millions of yen)

139

155

16

11.6%

Average revenue per
funeral (Thousands of yen)

Note: Operating revenue and operating profit are based on segment information.

14

TARUI Financial Highlights
 Number of funerals: Increased by 125 (7.9%) in FY3/24 because of a large number oforders for funerals, mainly at new locations.
 Average revenue per funeral: Increased 7,000 yen (1.0%) in FY3/24 as revenue atordinary funerals continued to climb, making a contribution to revenue growth.
FY3/23

YoY change

FY3/24

Amount%Number of funerals

1,587

1,712

125

7.9%

Average revenue per
funeral (Thousands of yen)

1,065

1,072

7

1.0%

Operating revenue(Millions of yen)

1,831

1,993

161

8.8%

Operating profit(Millions of yen)

371

452

81

21.8%

15

4.

FY3/25 Revenue andEarnings/Dividend Forecasts
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

Highlights of FY3/25 Forecasts

1.

[Overall] Many activities to achieve the goals of the medium-term management plan. Activities
based on the plan’s strategies include growth of the funeral and end-of-life support businesses,
building a more powerful foundation for business operations, and improving the quality ofservices. Also, many recruiting activities to add the people needed for these activities.

2.

[Operating revenue] Forecast a larger number of funerals because the increasing number ofdeaths in Japan and the opening of more funeral halls. Also aiming for higher revenue fromproducts and services associated with funerals.

3.

[Operating expenses] Personnel and recruiting expenses are increasing because of many
activities to recruit people needed for the planned growth of operations. The forecast also
reflects the outlook for higher advertising expenses to generate sales and higher expenses
involving the opening and operation of new funeral halls.

4.

[Plan for investments] Plan to add 16 funeral halls for growth of the funeral business andplanning to use M&A often to meet customers’ needs and further upgrade the quality ofservices.

17

FY3/25 Forecasts(Millions of yen)

FY3/24
Results

FY3/25
Forecast

YoY change
Amount%Operating revenue

22,43724,300

1,863

8.3%

Operating profit

3,789

3,820

31

0.8%

Operating margin(16.9%)(15.7%)-1.2ptOrdinary profit

3,800

3,830

30

0.8%

Profit

2,363

2,450

87

3.7%

18

FY3/25 Dividend Forecast Plan for 9th consecutive years of higher dividends.

(Yen)

Dividend per share

FY3/23

FY3/24

FY3/25 Forecast

44.0

35.0

24.0

(47.0)(48.0)

23.0

12.0(Pre-split adjustment)Interim21.0(24.0)(Pre-split adjustment)

Year-end

23.0(Pre-split adjustment)

Payout ratio(consolidated)

16.7%

12.0

12.0

(24.0)(24.0)

20.5%

20.0%

*SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2023.

19

5.

Progress in Medium-termManagement Plan
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

Key Goals: Growth of the Funeral Business (Network Expansion)
 Seven of eight new locations planned for FY3/24 started operating during the year. The eighth, whereconstruction was delayed, opened in May 2024.
 In FY3/25, 16 new locations are planned and schedules for nine have been finalized as of May 2024.
Number of Funeral Halls by Location(as of March 31, 2024)
Operated by

KOEKISHATokyo
KOEKISHA
Osaka
SOU-SENTARUI

As of March
Prefecture
31, 2023

Tokyo

16

Chiba

16
1

1

2

1

3

Osaka

28

4

32

Nara

4

4

Hyogo

8

8

Tottori

10

10

Shimane

4

4

Hyogo

12

12

84

(Halls)

Total

Kanagawa

Tokyo Ceremony Kanagawa

Total

Openedduring
FY3/24

Number of funeral halls at the SAN HOLDINGS Group (Estimated)

1

1

7

91

Number in prior FY
New funeral halls

FY3/22

FY3/23

FY3/24

FY3/25

FY3/3221

Key Goals: Growth of the Funeral Business (Store Openings)

KOEKISHA Hall in Minoh(Minoh, Osaka) opened in
January 2024
公益社会館 箕面
(大阪府箕面市)
2024年１月 OPEN
Mizonokuchi Hall of KOEKISHA(Takatsu-ku, Kawasaki) opened in
February 2024

New funeral brand

Existing funeral brand Four of the seven of the new funeral halls opened in FY3/24 use the new ENDING HAUS brand.

ENDING HAUS Nishiyodogawa(Nishiyodogawa-ku, Osaka)
opened in December 2023

ENDING HAUS Mito
(Higashiosaka, Osaka)
opened in February 2024

ENDING HAUS Nishifuna(Nishifunabashi, Chiba)
opened in March 2024

ENDING HAUS Ishikiri(Higashiosaka, Osaka)
opened in March 2024

22

Key Goals: Growth of the Funeral Business (M&A)
 One of the seven new FY3/24 locations was an acquisition due to making Tokyo Ceremony a wholly
owned subsidiary.
 Faster expansion of coverage of the Tokyo area (Tokyo, Kanagawa, Chiba)

Use the new funeral brand to open funeralhalls in major cities throughout Japan withfacilities and prices targeting family funerals
and the ability to provide high-quality
services.

M&A

TARUI

Family Funeral Service Itoshie
Kamisueyoshi Hall
(Tsurumi-ku, Yokohama)
Joined the Group in January 2024
* KOEKISHA absorbed Tokyo Ceremony Co., Ltd. on April 1, 2024.

23

Key Goals: Growth of the End-of-life Support Business (Reorganization)
 In February 2024, KOEKISHA announced the divestiture of its customer services unit and transfer
to subsidiary Life Forward. This reorganization was completed in April 2024.
Support provided before and after funerals○Funerals/Ceremonies ○Household altars/fixtures ○Courtesy gifts○Graves/Interment of ashes ○Inheritance procedures ○Belongings○ Real estate ○ Estate ○Renovation

Integration synergies

KOEKISHA
Customer Services unit

Life Forward CO., LTD.

Combining customer contact in the funeral business with operations of the Life
Forward contact center is expected to further upgrade the ability to provide proposals
that accurately meet customers’ needs.

Life Forward

Integration will increase points of contact with customers.
 Enables proposals for customers extending from end-of-life support consultations
to support and services after a funeral.
Reorganization will eliminate redundant tasks and allow the use of unified businesssystems.
 Higher efficiency of management and clerical tasks and lower cost of business
operations

24

Services of the End-of-Life Support Business1

Support provided before and after funerals

Memorial services, family altars and fixtures, courtesy gifts, inheritance, gravestones, insurance, inheritance procedures,
belongings, real estate brokerage service
 In FY3/24, sales increased because of more measures for the growth of sales of family altars and fixtures and courtesy
gifts.

Day care service facilities specializing in rehabilitation2

Acquired operational expertise while the pandemic pushed back the start of operations.
The first facility, POSSIBLE Takarazuka Nakayamadera opened in June 2023.
 POSSIBLE Ashiya opened in May 2024; planning to open more locations.

Provision of meals at senior care facilities Currently providing meals at 10 facilities and sales activities continue for foodservice contracts at more senior carefacilities.

3

Operation of Minna-ga-eranda-shukatsu (end-of-life services for everyone) portal site
Provides products and services by using the end-of-life services site for seniors
 A larger lineup of services for seniors living alone in order to cover an even broader range of needs

25

6.

Initiatives for Sustainability
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

Initiatives for Sustainability
 Our purpose is to be a dependable end-of-life partner by emphasizing with the senior generation and their family members. As
one step to accomplish this goal, we have created a materiality table that shows critical issues and the associated initiatives.
Materiality
E

S

G

Initiatives

Measures to fight climate change• Increase use of embalming method requiring a smaller amount of dry ice• Increase use of solar panels at funeral halls

Use end-of-life support to be a source ofcomfort and confidence• Provide ideal places to say farewell to the deceased• More services for seniors living alone• Growth of the end-of-life support business• Provide grief counseling and support

Quality that earns the confidence, trust andsatisfaction of customers• High-quality services, products and buildings (existing brands and the new funeralbrand)• More directors of funerals and other ceremonies certified by the Ministry of Health,Labour and Welfare• More embalmers certified by the International Funeral Science Association in Japan

Human resources: training activities formaintaining a workforce that is self-reliant andable to take actions on their own, backed by afirm commitment to hospitality, and acorporate culture reform• More employee engagement (including giving everyone a sound understanding of
the corporate philosophy and purpose)• Further workplace safety and hygiene management improvements

Upgrade governance for an even stronger
framework for management• Strengthen education concerning compliance• Reinforce data security measures27

Hidamari Club – 20 Years of Support for Families following a Death Grief counseling and support programs are increasing at local governments and other places. The SAN
HOLDINGS Group started the Hidamari Club in 2003 to assist family members with the grieving
process and in other ways.

Hidamari Club Activities
1. A place for bereaved people to gather
2. Face-to-face/online meetings every month
3. Presentations by professionals and members
4. A place and time where people can speak
freely with confidence *More than 1,000 people have participated in these
activities.
 *A 20th anniversary event was held in March 2024.

*What is grief counseling and support?
This process assists people who have lost, or soon will lose, afamily member or other close acquaintance deal with the loss
and recover. These activities include numerous ways to handle
numerous problems that can occur following a death.

28

Human Resource Management

1. Linkage of strategies for management and human resources
2. Awareness of and commitment to the corporate philosophy and purpose
4.

Recruiting and training activities
Recruit and train people with the skills and professional expertise required foraccomplishing the goals of business strategies
Policy for upgrading working environment
Train people for maintaining a workforce that is self-reliant and able to takeactions on their own, backed by a firm commitment to hospitality

5.

Corporate culture
Position the engagement score based on employee surveys as the mostimportant KPI and constantly monitoring this score

3.

29

7.

Shareholder Distribution Policy
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

Shareholder Distribution Policy Aim for growth of shareholder distributions based on dividend stability
Dividend policy
Distributing earnings to shareholders is one of our highest priorities.
For the dividend, our policy is to aim for a higher dividend based on a commitment to dividend stability.
Dividends reflect consolidated sales and earnings, cash flows, the need to retain earnings for investments
for medium and long-term growth, the need to maintain financial soundness and other factors.
In addition, we will consider repurchasing stock in a flexible manner that takes into account the stock
price and other applicable factors.
Retained earnings are used mainly for IT systems, M&A and other strategic investments with emphasis on
constructing funeral halls. The objective is to use retained earnings for strengthening our businessfoundation and increasing corporate value.

31

Dividend Payout Ratio and Total Distribution Ratio Total distribution ratio for FY3/24 is 49.3%*SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2019 and October 1, 2023. Dividends have not been adjusted for the
October 2023 stock split.
Dividend payout ratio and total distribution ratio

1,200

Dividend60%

Stock repurchase49.6%

Total distribution ratio (%)
1,000

Dividend payout ratio (%)

40%
663

35.0%

800

600
600

23.7%
300

18.8%

17.9%

400
200
0

DPS

50%

49.3%

387

30.7%

30%
20.5%

20.3%

18.8%

20.0%

20%

16.7%

15.2%
370

412

468

489

496

FY3/25 (Plan)

252

280

320

350

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24 (Plan)

¥22.5

¥25.0

¥28.5

¥31.0

¥33.0

¥38.0

¥44.0

¥47.0

10%

Dividend payout ratio/Total distribution ratio

Dividend/Stock repurchase (Millions of yen)

1,400

0%

¥48.0

32

Dividend per ShareDividend (Yen) The planned dividend for FY3/24 is 47 yen per share, the sum of a 23 yen interim dividend and 12 yen
year-end dividend. This dividend does not reflect the 2-for-1 stock split on October 1, 2023.
Plan for 9th consecutive years of higher dividends.

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24(Plan)

FY3/25(Plan)*SAN HOLDINGS conducted a 2-for-1 common stock split on October 1, 2019 and October 1, 2023. Dividends have not been adjusted for the October 2023 stock split.

33

Appendix
Be a dependable end-of-life partner by emphasizing withthe senior generation and their family members

The Funeral Market in Japan Funeral business revenue fell almost 20% in 2020 because of the pandemic. In the following years, there has
been a steady increase in small and simple funerals. The main causes are the rising number of nuclear family
households in Japan and a shift in preferences due to the pandemic.
(Billions of yen)

2,000
20,0001,923.1

19,0001,900
18,0001,800 1,768.1 1,759.0

1,782.3 1,794.5

1,805.3

1,820.0

1,768.4

1,727.3

1,700
17,0001,644.7

1,600
16,0001,502.8

15,0001,500

1,542.6

1,400
14,0001,300
13,0001,200
12,0001,000
10,000＝

1,100
11,0002013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: The Funeral Business Today and Outlook 2023, Yano Research Institute Ltd. (August 2023)(fct.)

2032(fct.)

35

Senior Market Growth Steady increases in the pct. of seniors and the number of senior households consisting of a husband
and wife or only one person(%)

The increasing pct. of seniors in Japan

Actual←(Thousands ofhouseholds)

Senior (Age 65+) households of one or two people

 Estimate
Age 65+

Age 75+

Source: “Statistics on the Elderly in Japan” (September 2023), Ministry of Internal Affairs andCommunications, “Population Census” for 2000-2022 and “Population Projections” for 2022 and2023. From 2025 : “Population Projections for Japan (2023 Estimates)” Births (Medium) anddeaths (Medium) estimates, National Institute of Population and Social Security Research

Livingalone

Onlyhusband-wife

Source: Outline of Comprehensive Survey of Living Conditions 2022, Ministryof Health, Labour Welfare

36

The New 10-Year Vision
Our Two Initiatives: Funeral Halls in All Areas of Japan
1. To be a source of services that satisfy a broad spectrum of customers, we will expand
our operations from the Tokyo/Kansai/San-in areas to all areas of Japan.

From the Tokyo/Kansai/San-inareas to all areas of Japan

37

The New 10-Year Vision
Our Two Initiatives: Growth of the End-of-Life Support Business2. We are dedicated to improving our customers’ quality of life by providing a variety of end-oflife support. To accomplish this, our goals are more growth of the end-of-life support businessand addition of new businesses and services in order to be a source of new forms of value.
Individuals (seniors, family members)
Active stage

Pre-funeral

FuneralPost-funeral

Information about services for different stages of life
More services for a more fulfilling life
for seniors

FuneralMore services to support families after
the funeral

Business domain of conventional funeral companies
The SAN HOLDINGS end-of-life support business domain

Build a business model for becoming a “senior life support partner” thatno other company can match

38

The New 10-Year Vision
The End-of-Life Support BusinessThis business contributes to society as a source of services and products needed for people to enjoy afulfilling life style with confidence during the final stage of life. Activities include support for daily
activities, preparations for this final stage and a variety of other support.
Preliminary
consultations

Information about
nursing care facilities

Pre-Funeral Trust
Funds

Before funeral
Funeral service seminars

End-of-life notebook

Help withhousehold chores

FuneralAfter funeral
Ash scattering

Graves39

The Five Key Goals of the Medium-term Management Plan (FY3/23-FY3/25)

Business growth for more corporate valueCS

GrowthWe are dedicated to using business activities to contribute to society and increase corporate value as Be adependable end-of-life partner by emphasizing with the senior generation and their family members.

Growth of the funeralbusiness

Growth of the end-of-life
support business

Make the funeral businessmore competitive

Speed up the expansion of thefuneral hall network, mainly byusing the new funeral brand, tocover more areas of Japan andserve more customers.

Expand the end-of-life support business,
extending from when people are still
active through the post-funeral stage, forlong-term support for customers and theirfamily members. Develop this business
into another core business.

Build a framework for the SAN
HOLDINGS Group to provide
high-quality services withefficiency.

Use value-added, highquality services tocontribute to society

A stronger infrastructure forJapan's best services that
achieve outstanding customer
satisfaction
 Upgrade quality management, the key toproviding the outstanding services that are
the source of corporate value.
 Quickly train people who provide funeralservices and maintain the high quality ofthese people.
 Increase customer satisfaction

A more powerful foundation for business operations
 Use recruiting and training activities to increase the overall strength of the SAN HOLDINGS Group.
 Personnel systems for fully utilizing a diverse and skilled workforce and encouraging innovations; establishment of a sound employee
education infrastructure.
 Continue improving the efficiency of all operations of the SAN HOLDINGS Group.
 Many activities involving the environment, society and governance (ESG).

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Goals of the Medium-term Management Plan (FY3/23 to FY3/25)
 Revenue and earnings growth to achieve operating revenue of ¥23.0 billion and operating profit of ¥3.63 billion in
FY3/25.
 Although there will initially be expenses for strategic measures (expenditures for recruiting, personnel and opening
new funeral halls), the plan’s goals are an operating margin of at least 15.5% and an ROIC of at least 7.0%.

Operating revenue

25,00020,000Operating revenue
営業収益20,001
3,376
16.9%

15,000

ROIC

Operating profit
営業利益20,8003,400(Millions of yen)

Operating margin

21,800
3,450

16.3%

15.8%

23,000

5,000
4,500

3,630

4,000
3,500

15.8%

FY3/22 Results
2022年3月期実績

FY3/23 Plan
2023年3月期計画

FY3/24 Plan
2024年3月期計画

FY3/25 Plan
2025年3月期計画

7.3%

7.0%

7.0%

7.0%

3,000

*ROIC = Operating profit after tax / Invested capital
Invested capital = Interest-bearing debt + Net assets, Operating profit after tax = Operating profit x (1 – Effective tax rate)

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Operating profit(Millions of yen)Medium-term Management Plan Capital Allocation
 Large investments are planned for business growth. During the plan’s three years, operating cash flows
are expected to be more than ¥8.8 billion. Investments involving existing facilities will be ¥1.0 to ¥1.5
billion and investments for growth will be more than ¥4.5 billion.

Medium-term plan
operating CF of about¥8.8 billion(Reference) Includes
cumulative
depreciation of about¥3.0 billion

Investments in existing
facilities
About ¥1.0 to ¥1.5 billion

The basic policy is to hold renovations of existing
facilities to below depreciation.

Investments for growthMore than ¥4.5 billion

Organic growth
Rapidly open more funeral halls
Strengthen the end-of-life businessInorganic growth
M&A, alliances

Shareholder distributions

Dividends
Maintain stability while aiming for dividend growth
Stock repurchases
Stock repurchase decisions will be made based on
cash flows, the stock price and other considerations.

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