Tokyu Fudosan Holdings Corp. · TSE:3289

Tokyu Fudosan — Q1 FY2017 Earnings Presentation

28 slides from Tokyu Fudosan's earnings presentation, Aug 1, 2017

  1. Slide 1: Financial Highlights FY2017 First Quarter

    Financial Highlights FY2017 First Quarter (First Three Months) Ended June 30, 2017 2017.08.01 TOKYU FUDOSAN HOLDINGS CORPORATION Code：3289

  2. Slide 2: Forward-looking statements

    The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, the statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantl

  3. Slide 3: FY2017 Q1 Operating Results

    FY2017 Q1 (First Three Months) Operating Results Both revenue and income increased mainly due to an increase in gains on the sale of buildings for investors and an increase in sales of condominiums. Q1 First Three Months Full-year (ended June 30) (ended March 31) Compared to the same period （\ billi

  4. Slide 4: FY2017 Q1 Segment performance

    FY2017 Q1 (First Three Months) Segment performance Both revenue and income increased particularly in the urban development, residential, and real estate agents segments. Q1 First Three Months Full-year (ended June 30) (ended March 31) Compared to the same period （\ billion） Progress FY2017 last year

  5. Slide 5: Summary of balance sheets

    Summary of balance sheets Both assets and debt rose chiefly due to an increase in property and equipment and intangible assets associated with progress in redevelopment projects. FY2016 FY2017 （\ billion） As of Mar-31, As of June 30, Compared to the end of the previous fiscal year Comparison 2016 20

  6. Slide 6: Urban Development(1) FY2017 Q1

    Urban Development(1) FY2017 Q1(First Three Months) Q1: Increase in both revenue and profit FY2017: Increase in both revenue and profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 36.1 55.1 19.1 21.7% Leasing (Office buildings）

  7. Slide 7: Urban Development(2) Vacancy Rate and Rent

    Urban Development(2)Vacancy Rate and Rent As of June 30, 2017 Vacancy rate 0.5% (Tenants actually moving in and out, Office buildings and commercial facilities) (¥/Month/Tsubo) 12% ¥30,000 Tsubo ≅ 3.3㎡ 29,220 27,730 10% 26,610 ¥25,000 26,090 24,750 24,210 23,600 23,850 23,270 23,880 22,480 22,190 23

  8. Slide 8: Urban Development(3) Major projects

    Urban Development(3)Major projects Floor space ： thousand ㎡ OCEAN GATE MINATOMIRAI Yokohama Office Floor space：55 Jingumae 6-chomeBlock Higashi Ikebukuro Urban Redevelopment Shinsaibashi-suji Cinema Complex Urban Redevelopment “Step Project** AXALL ROPPONGI Q plaza Futakotamagawa 2-chome Project** P

  9. Slide 9: Urban Development(4) Major projects Greater Shibuya Area

    Urban Development(4)Major projects Greater Shibuya Area The Shibuya Redevelopment Project made steady progress. The properties are planned to be opened from FY2019. Greater Harajuku Sta. Shibuya Area Omotesandou Sta. Tokyu Plaza OmotesandoHarajyuku Open April-2012 (tentative name) Jingumae 6-chome B

  10. Slide 10: Residential(1) FY2017 Q1

    Residential(1) FY2017 Q1(First Three Months) Q1: Increase in both revenue and profit FY2017: Increase in revenue and Decrease in profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 9.6 27.9 18.3 23.0% Condominiums 7.4 24.7 17

  11. Slide 11: Residential(2) Outline of condominium

    Residential(2)Outline of condominium Growth in revenue is expected in the fiscal year ending March 31, 2018 due to an increase in the number of units, despite a decrease in high-end properties. FY FY2015 FY2016 FY2017 Forecast FY2018 Forecast No. of units sold Total 1,892units Total 1,560units Total

  12. Slide 12: Property Management(1) FY2017 Q1

    Property Management(1) FY2017 Q1(First Three Months) Q1: Decrease in revenue and Increase in profit FY2017: Increases in both revenue and profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 34.0 33.6 (0.3) 21.8% Condominium 2

  13. Slide 13: Property Management(2) Stock of properties

    Property Management(2)Stock of properties Property stock under management increased, reflecting new management contracts for 76,000 units of public housing in the designated management system from April 2017. 〈Trend in stock of comprehensive condominium management and facility management in number o

  14. Slide 14: Real Estate Agents(1) FY2017 Q1

    Real Estate Agents(1) FY2017 Q1(First Three Months) Q1: Increase in both revenue and profit FY2017: Increases in both revenue and profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 16.4 18.4 2.1 20.9% Real-estate sales agent

  15. Slide 15: Real Estate Agents(2) Performance indicators

    Real Estate Agents(2)Performance indicators in sales agency operations The number of transactions increased in the retail business and wholesale business, driven by the strong market conditions. FY2017 Q1 Highlights Retail Wholesale Total No. of transactions 5,423 251 5,674 □Retail (Result) (Rate of

  16. Slide 16: Wellness(1) FY2017 Q1

    Wellness(1) FY2017 Q1(First Three Months) Q1: Decrease in both revenue and profit FY2017: Increase in revenue and Decrease in profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 21.7 21.2 (0.6) 21.4% Operation of resort facil

  17. Slide 17: Wellness(2) Major projects

    Wellness(2)Major projects Sales of the membership rights for Tokyu Harvest Club Nasu Retreat began in June 2017. Type Major project Usage Open Tokyu Stay Kyoto ryogaemachi-dori November 2017 Tokyu Stay Sengakuji * FY2017 Tokyu Stay Sapporo Odori Higashi * FY2018 Tokyu Stay Urban style hotel Tokyu St

  18. Slide 18: Tokyu Hands FY2017 Q1

    Tokyu Hands FY2017 Q1(First Three Months) Q1: Decrease in both revenue and profit FY2017: Increase in revenue and Decrease in profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 23.0 22.9 (0.1) 23.1% Operating profit 0.1 0.0

  19. Slide 19: Innovation Business FY2017 Q1

    Innovation Business FY2017 Q1(First Three Months) Q1: Decrease in revenue and Increase in profit FY2017: Increases in profit First Quarter FY2016 FY2017 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 10.1 9.5 (0.6) 19.1% Operating profit (0.9) (0.9) 0.0 －

  20. Slide 20: Reference

    Reference 19 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.

  21. Slide 21: Reference① Progress in the Medium-term Management Plan

    Reference① Progress in the Medium-term Management Plan (Operating profit/Net profit*) Operating Profit Medium-term Management Plan Residential Net income* 2017-2020 120 Real-Estate Agents ¥billion Innovation business Tokyu Hands 93.0 100 Wellness 8.5 Property Management Urban Development 73.2 73.5 1

  22. Slide 22: Reference② Progress in the Long-term Management Plan

    Reference② Progress in the Long-term Management Plan (Debt Equity ratio・EBITDA multiple) Rating Institution: Japan Credit Rating Agency, Ltd. Long-term：A- Short-term：J-1 Establishment of a holding company system Equity ¥billion Interest-bearing Debt 1,400 Debt Equity ratiio 15.0× 13.5 Debt/EBITDA ra

  23. Slide 23: Reference③ Return to Shareholders

    Reference③ Return to Shareholders Annual dividend for the fiscal year ending March 31, 2018, will be raised to 14.5 yen, representing the fifth consecutive increase. 14Yen Dividend*（Year-end） Dividend*（Interim） 12Yen 7.5 10Yen 6.5 6.5 8Yen 5.0 6Yen 4.5 3.5 3.5 3.5 4Yen 6.5 7.0 5.0 5.5 2Yen 3.5 3.5 3

  24. Slide 24: Reference④ Total floor area and AUM transition

    Reference④ Transition in total floor area and AUM transition (As of Mar-31, 2017) 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 800 787.3 Commercial facilities Private REITs, etc. Office building CRR** 192.9 1,580 644.1 1,548 1,512 API* 1,458 1,500 600 556.8 529.6 156.0

  25. Slide 25: Reference⑤ Distribution of Office Buildings

    Reference⑤ Distribution of Office Buildings Office Buildings : Floor space 586 thousand ㎡, Total of 58 buildings (As of Mar-31, 2017) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 475thousand ㎡（81%） 46buildings 378thousand ㎡（65%） 27buildings Kansai 4% 26 [3] -1980 3% Chiyoda-ku 15 [4] 2

  26. Slide 26: Reference⑥ Major office buildings

    Reference⑥ Major office buildings(Urban Development segment) As of the end of March 2017, the Company holds 58 buildings, located mainly in four wards in central Tokyo. No. of Total floor Area Major properties[Building] Year built notes buildings space * Shibuya Center Place 1983 7 Shibuya Dogenzaka

  27. Slide 27: Reference⑦ Major commercial facilities

    Reference⑦ Major commercial facilities(Urban Development segment） As of the end of March 2017, the Company operates 21 locations in the Tokyo area and 7 locations in Kansai and other regions. No. of Major properties Total floor Area Year built notes facilities [Commercial facilities] space * Tokyu P

  28. Slide 28: & TOKYU FUDOSAN HOLDINGS

    @ & TOKYU FUDOSAN HOLDINGS

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