SAN HOLDINGS,INC.

Business Details

Centered on Kōeki-sha Co., Ltd., this segment provides funeral services in the Kansai region (Osaka Prefecture, Hyogo Prefecture, and parts of Nara Prefecture) and the greater Tokyo area (Tokyo, Kanagawa Prefecture, and parts of Chiba Prefecture). It includes Excel Support Service Co., Ltd. (nursing care and meal services, etc.) and Life Forward Co., Ltd. (end-of-life planning web platform). The segment operates the family funeral brand "Ending Haus" and is expanding support services such as post-funeral return gift sales and real estate brokerage.

Recent Overview

Revenue and profit both declined year-on-year due to a decrease in the number of deaths, though market share was maintained or improved

In the cumulative fourth quarter of FY2026 (ending March 2026) (April 1, 2025 - March 31, 2026), the number of deaths in the business area declined on a 12-month comparison basis excluding special factors related to the change in fiscal year-end, and the segment was significantly affected by this. On the other hand, competitive advantage was maintained in both the greater Tokyo and Kinki areas, and market share in the business area was maintained or improved. Fee income from post-funeral return gift sales and post-funeral procedures grew. On the expenditure side, the company continued to invest actively in store-opening related costs and recruitment/personnel expenses in preparation for future business growth through network expansion. The current decline in the number of deaths is viewed as a transitional phase due to the reversal of excess deaths, and a recovery in demand is expected once this effect dissipates.

Key Products

Growth Drivers

• Increase in the number of funerals executed through new hall openings (aggressive expansion in the greater Tokyo and Kinki areas centered on the Ending Haus brand)
• Growth in ancillary revenue through expansion of post-funeral support services (post-funeral return gift sales, real estate brokerage fee income, etc.)
• Continued expansion of latent funeral demand through 2040, driven by growth in the population aged 65 and over
• Expansion of the Life-Ending Support business, including operation of rehabilitation-focused day service facilities and visiting medical massage services
• Appeal to the single elderly demographic through new product offerings such as "Mōshu no Iranai Osōshiki"
• Recovery in funeral demand as the transitional decline in the number of deaths caused by the reversal of excess deaths resolves

Risks

• Continued decline in per-funeral execution price due to the spread of family funerals and one-day funerals
• Intensifying competition due to increased new store openings by funeral operators and the rise of internet funeral referral companies
• Fluctuations in the number of deaths in the business area (risk of year-to-year variation due to reversal of excess deaths, etc.)
• Pressure on profit from increased fixed costs (rent, recruitment expenses, personnel costs, etc.) associated with new store openings
• Deterioration in profitability due to declining per-funeral execution price for large-scale funerals (over ¥5 million)