Achievement conjecture

Consolidated forecast for the fiscal year ending March 31, 2022

Predicting when the COVID-19 crisis will end is still impossible at this time. For the determination of a forecast for the fiscal year ending in March 2022, we assume that the effects of this crisis will continue at least until March 2022.

The outlook for operating revenue from ordinary funerals is based on the rate at which deaths increase and the expected increase in the number of funerals resulting from opening new funeral halls. We forecast an increase in the number of large funerals (more than 5 million yen) despite the negative effects of COVID-19. Our revenue forecast also assumes that average revenue per funeral will be about the same as in the current fiscal year. We forecast an increase in sales of products and services associated with funerals.

Activities during the current fiscal year to boost productivity and cut costs have created a framework that makes it easier to generate earnings. These activities will continue in the fiscal year ending in March 2022. At the same time, there will be substantial strategic investments for growth. Major expenditures include new funeral halls, renovations of existing funeral halls and the recently established subsidiary Life Forward. Due to these investments, we anticipate up-front expenses during the fiscal year. Based on this outlook, we expect a temporary decline in the operating margin but we also expect that measures to hold down other expenses will enable us to achieve the operating margin target of 13% for the final year of the current medium-term management plan.

Changes in the COVID-19 pandemic and other events involving this crisis may have a significant negative effect on the validity of the assumptions used for our forecast. In this event, we will promptly announce a revised forecast based on new assumptions.

Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022

  • FY3/2020
    Results
    FY3/2021
    Results
    FY3/2022
    Forecasts
    (May 13,2021)
    Percentages represent year-on-year changes
    Operating revenue
    (Millions of yen)
    21,281 18,865 19,760 +4.7%
    Operating profit
    (Millions of yen)
    3,091 2,550 2,570 +0.8%
    Operating margin
    (%)
    14.5 13.5 13.0 △0.5pt
    Ordinary profit
    (Millions of yen)
    3,064 2,536 2,540 +0.1%
    Profit attributable to owners of parent
    (Millions of yen)
    1,856 1,562 1,590 +1.7%
    Net income per share
    (Yen)
    165.81 141.24 143.70 +1.7%

*Cautionary statement with respect to earnings forecasts
Forecasts incorporate risks and uncertainties because the forecast is based on judgements made by using information available to the management of SAN HOLDINGS and its group companies. Actual results may differ materially from the forecasts due to changes in the economy and market conditions of the SAN HOLDINGS and its group companies as well as a number of other factors.