Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q3 FY2020 Earnings Presentation
56 slides from Tokyu Fudosan's earnings presentation, February 2021
Slide 1: Financial Highlights FY2020 Third Quarter (First Nine Months)
Financial Highlights FY2020 Third Quarter (First Nine Months) Ended December 31, 2020 TOKYU FUDOSAN HOLDINGS CORPORATION Code︓3289
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, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantl
Slide 3: Contents
Contents • Overview of the FY2020 Third Quarter (First Nine ・・・・・ 3 Months) Ended December 31, 2020 • Reference ・・・・・ 34 2 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 4: Overview of the FY2020 Third Quarter (First Nine Months)
Overview of the FY2020 Third Quarter (First Nine Months) Ended December 31, 2020 3 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 5: FY2020 Q3 (First Nine Months) Operating Results
FY2020 Q3 (First Nine Months) Operating Results Declines in revenue and profit, reflecting the effects of the spread of the coronavirus, chiefly in the BtoC business. Q3 First Nine Months Full-year (ended Dec-31) (ended Mar-31) Compared to the same period （\ billion） Progress FY2020 last year FY2019
Slide 6: FY2020 Q3 (First Nine Months) Segment performance
FY2020 Q3 (First Nine Months) Segment performance Business activities recovered gradually from the second quarter and progress was generally made in line with the full-year forecast. Q3 First Nine Months Full-year (ended Dec-31) (ended Mar-31) Compared to the same period （\ billion） Progress FY2020
Slide 7: Summary of balance sheets
FY2020 Q3 (First Nine Months) Summary of balance sheets Increase in assets, mainly reflecting expansion of property and equipment, intangible assets. FY2019 FY2020 FY2019 FY2020 （\ billion） （\ billion） As of Mar-31, As of Dec-31, As of Mar-31, As of Dec-31, Comparison Comparison 2020 2020 2020 2020
Slide 8: Urban Development(1) FY2020 Q3
Urban Development(1) FY2020 Q3(First Nine Months) Q3: Increases in both revenue and profit FY2020: Increase in revenue and Decrease in profit Third Quarter Compared to the same <sales of properties including FY2019 FY2020 Comparison buildings for investors> First Nine Months（\ billion） Q3(Apr-Dec) Q
Slide 9: Urban Development(2) Vacancy Rate and Rent
Urban Development(2) Vacancy Rate and Rent As of December 31, 2020, Average office rent 28,190 yen (Month/Tsubo) Vacancy rate 0.9% (Tenants actually moving in and out, including Office buildings and Commercial facilities) (¥/Month/Tsubo) 12% ¥30,000 Tsubo ≅ 3.3㎡ 29,220 28,090 28,190 27,730 27,090 26
Slide 10: Urban Development(3) Major projects
Urban Development(3) Major projects Asakusa 2-chome Tokyo PortCity Takeshiba Kudanminami West Shinsaibashi Chayamachi B-2 Block Sapporo Susukino Ekimae Place Minato-ku 1-chome Project** 2-chome Project** Urban Redevelopment Complex Development Project** Taito-ku Chiyoda-ku Osaka Project Sapporo Offi
Slide 11: Urban Development(4) Major projects in the Greater Shibuya area
Urban Development(4)Major projects in the Greater Shibuya area Several projects are ongoing in the Greater Shibuya area. Harajuku Sta. Redevelopment Project Commercial facility Office building Meiji jinguumae Sta. Properties owned by Activia Properties Inc. Properties joint capital investment with N
Slide 12: Urban Development(5) Major projects <Tokyo PortCity Takeshiba>
Urban Development(5) Major projects <Tokyo PortCity Takeshiba> Both office tower and residence tower were completed. Office tower opened in September and the pedestrian deck partially started operation. [Office tower] High-rise bank 6F Office lobby Office Middle layer bank 2F Minato Yokocho Office t
Slide 13: Urban Development(6) Smart buildings in Tokyo PortCity Takeshiba
Urban Development(6) Smart buildings in Tokyo PortCity Takeshiba Obtaining and using data in real time, visualizing and optimizing information and providing value to stakeholders Inputting data that can be obtained in real time [Human flow data] [Weather information] [Traffic information] [Degree of
Slide 14: Urban Development(7) Renewable energy business
Urban Development(7) Renewable energy business Investment made progress. Properties in operation rose. Projects acquired (As of Dec-31, 2020) <Investments in Properties in Operation, Investments in Properties made decision, and Number of Projects in Operation> Properties in operation: 38 [¥billion]
Slide 15: Urban Development(8) Logistics facilities business
Urban Development(8) Logistics facilities business Developing logistics facilities to expand asset types in the cyclical reinvestment business. Projects acquired (As of Dec-31, 2020) Introduction of future projects Properties in operation: 8 CPD Hirakata Projects under development: 5 *Tentative name
Slide 16: Residential(1) FY2020 Q3
Residential(1) FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Increase in revenue and Decrease in profit Third Quarter FY2019 FY2020 Compared to the same Comparison First Nine Months(\ billion) Q3(Apr-Dec) Q3(Apr-Dec) period last year Operating revenue 70.1 55.0 (15.2)
Slide 17: Residential(2) Trends in condominium sales indicators
Residential(2) Trends in condominium sales indicators The contract ratio was 93%. (As of December 31, 2020) Accounting year FY2018 FY2019 FY2020 Forecast No. of units sold Total 1,266units Total 1,680units Total 1,625units Contract ratio 50%→57%→76%→93% 32%→57%→73%→90％ 54%→66%→82%→90％ (Beginning-of-
Slide 18: Property Management(1) FY2020 Q3
Property Management(1) FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Third Quarter FY2019 FY2020 Compared to the same Comparison First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) period last year Operating revenue 138.3 128.5 (9
Slide 19: Property Management(2) Stock of properties
Property Management(2) Stock of properties As of December 31, 2020 Number of condominiums under management increased, and number of buildings under management decreased due to the liquidation of unprofitable projects. 〈Trend in stock of comprehensive condominium management and facility management in
Slide 20: Real Estate Agents(1) FY2020 Q3
Real Estate Agents(1) FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Third Quarter FY2019 FY2020 Compared to the same Comparison First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) period last year Operating revenue 85.3 84.6 (0.7)
Slide 21: Real Estate Agents(2) Performance indicators in sales agent
Real Estate Agents(2) Performance indicators in sales agent Fewer transactions mainly due to store closures and shorter opening hours in the first quarter. FY2020 Q3 Highlights Retail Wholesale Total No. of transactions 17,336 665 18,001 □Retail ・Both the number of transactions and the average handl
Slide 22: Wellness(1) FY2020 Q3
Wellness(1) FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Third Quarter FY2019 FY2020 Compared to the same period Comparison First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) last year Operating revenue 81.7 59.8 (21.9) Impact o
Slide 23: Wellness(2) Management system and Major projects
Wellness(2) Management system and Major projects Integrated operators of hotels and other wellness facilities to strengthen sales capabilities and improve productivity as Tokyu Resorts & Stays. Tokyu Stay Hida-Takayama nol kyoto sanjo Tokyu Stay Hakodate Tokyu Stay Higashi- ROKU KYOTO, LXR Hotels &
Slide 24: Tokyu Hands FY2020 Q3
Tokyu Hands FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Third Quarter FY2019 FY2020 Compared to the same Comparison First Nine Months (\ billion) Q3(Apr-Dec) Q3(Apr-Dec) period last year Operating revenue 75.3 47.4 (27.9) Existin
Slide 25: Initiatives in Wellness and Tokyu Hands segments
Initiatives in Wellness and Tokyu Hands segments Assuming coexistence with the coronavirus, the Company promoted new initiatives in the Wellness segment and structural reform in the Tokyu Hands segment. <Wellness segment> Strengthen efforts to capture domestic demand on the Strengthen revenues from
Slide 26: Innovation Business(1) FY2020 Q3
Innovation Business(1) FY2020 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Third Quarter FY2019 FY2020 Compared to the same Comparison First Nine Months (\ billion) Q3(Apr-Dec) Q3(Apr-Dec) period last year Operating revenue 22.8 10.0 (12
Slide 27: Innovation Business(2) Overseas operations
Innovation Business(2) Overseas operations 17 projects are in progress in the United States. ＊As of Sep-30, 2020 <425 Park Avenue> 〈America〉 New York Office building redevelopment project 47 stories above ground with 2 basements Completed in January 2021 Seattle(4) Portland(1) New York(1) San Franci
Slide 28: Trends in equity and interest-bearing debt
Trends in equity and interest-bearing debt Rating Institution: Japan Credit Rating Agency, Ltd. Long-term︓A (Stable) Short-term︓J-1 Medium-Term Management Plan 2017-2020 [¥billion] 1,600 20.0× Equity Interest-bearing Debt 1,480.0 Debt Equity ratiio Debt/EBITDA ratio 16.9 1,400 16.0× 1,200 12.8 1,000
Slide 29: Hybrid Financing
Hybrid Financing Conducted hybrid financing to improve financial soundness and capital efficiency and for sustainable growth investment. The second bond was issued by combining Japan's first hybrid corporate bond and sustainability bond. (※The sustainability bonds obtained a rating of SU1, the highe
Slide 30: Return to Shareholders
Return to Shareholders Emphasizing shareholder returns and maintaining stable dividends, the Company will pay dividends per share of 16.0 yen for the fiscal year ending March 31, 2021. Medium-Term Management Plan 2017-2020 16Yen 15.5 16.0 16.0 Dividend*（Year-end） Dividend*（Interim） 14.5 14Yen 13.0 1
Slide 31: Development of Business to Address Social Issues
Development of Business to Address Social Issues 〈Evolution of lifestyle creation〉 “Lifestyle Creation 3.0” fuses different aspects of everyday life: living, working and playing * From the 2019 Integrated Report 30 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 32: Development of Business to Address Social Issues: Diversification of working styles
Development of Business to Address Social Issues〈Diversification of working styles〉 Developing workspaces that leverage our diverse assets. City center Suburban area Local area Center office Flexible office* Resort facilities （Workation） Exclusive space Office building of Hotel (Individual rooms) TO
Slide 33: Development of Business to Address Social Issues: Efforts for RE100
Development of Business to Address Social Issues〈Efforts for RE100〉 A total of 17 facilities,*including the Company site, will begin using renewable energy from April 2021. Estimated annual CO2 emissions reduction is approximately 9,400 tons (equivalent to the annual emissions from the electricity u
Slide 34: Sustainable Management: External Evaluation
Sustainable Management〈External Evaluation〉 Our head office in SHIBUYA SOLASTA was the first among domestic developers to acquire WELL certification. Acquired a Green Star in the first participation in the GRESB real estate assessment. <Major initiatives> ・E (environmental) Following the TCFD recomm
Slide 35: Reference
Reference 34 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 36: Value creation story(1) Process for value creation
Value creation story(1) Process for value creation The Company accurately identifies social issues that are changing with the times and Social Value (Outcomes) To Become a Corporate Group that Continues to Create Value creates unique value, leveraging its three strengths. In this process, the Compan
Slide 37: Value creation story(2) Value provided
Value creation story(2) Value provided Promoting sustainable growth by increasing the satisfaction of every stakeholder Corporate value is the sum total of the levels of satisfaction of all of our stakeholders Local and Social Satisfaction We contribute to a sustainable society through efforts such
Slide 38: Basic Policy for Increasing Shareholder Value and Corporate Value(1)
Basic Policy for Increasing Shareholder Value and Corporate Value(1) Aim to increase EPS and ROE in an effort to increase shareholder value by growing earning power while maintaining financial discipline. Business portfolio strategy Increase Increase Asset Utilization Type Business shareholder value
Slide 39: Basic Policy for Increasing Shareholder Value and Corporate Value(2)
Basic Policy for Increasing Shareholder Value and Corporate Value(2) The Company needs to improve ROA, which emphasizes business efficiency. BS for FY2019 Breakdown of assets by segment Ended Mar-2020 Property Management Real Estate Agents 127.1 98.3 Total assets ¥2,487.4 billion Wellness 273.3 Toky
Slide 40: Basic Policy for Increasing Shareholder Value and Corporate Value(3)
Basic Policy for Increasing Shareholder Value and Corporate Value(3) Basic policy regarding financial and capital policies. BS for FY2019 D/E ratio and EBITDA multiple Ended Mar-2020 • Maintain financial disciplines, controlling the D/E ratio and the EBITDA multiple, Total assets while considering r
Slide 41: Trends in Results and Polices of FY2020 Earnings Forecasts
Trends in Results and Polices of FY2020 Earnings Forecasts The Medium-Term Management Plan made good progress, but the business environment changed dramatically in the final year. (fiscal year ending March 2021) ■Assumptions for the forecast for the fiscal year ending March 31, 2021 Business activit
Slide 42: Activity policy for the fiscal year ending March 2021
Activity policy for the fiscal year ending March 2021 The Company will overhaul its business to ensure sustainability and will formulate a long- term management policy, considering a paradigm shift. Environmental recognition ・Continuing a behavioral pattern, assuming coexistence with the coronavirus
Slide 43: Breakdown of Results by Segment
Breakdown of Results by Segment Changes in operating profit by segment Operating Profit Net profit* Residential 120 Real-Estate Agents Innovation business ¥billion Tokyu Hands Medium-term Management Plan 2017-2020 Wellness Property Management 90 77.5 80.2 79.3 Urban Development 73.2 7.6 5.4 8.5 Elim
Slide 44: Major Effects of the Spread of the Coronavirus in FY2020
Major Effects of the Spread of the Coronavirus in FY2020 Effects are assumed mainly in the BtoC business. Significant constraints on business activities in the first quarter and gradual recovery from the second quarter. Segment Effect on business Effect on results Decrease in percentage rent, full o
Slide 45: Summary of balance sheets as of Mar-31, 2020
Summary of balance sheets ＊As of Mar-31, 2020 FY2019 FY2019 （\ billion） As of Mar-31, （\ billion） As of Mar-31, 2020 2020 Cash and deposits 97.6 Interest-bearing Debt 1,361.0 Real estate for sale 658.0 Deposits 260.5 Property and equipment, Trade payables etc. 106.5 1,192.7 Intangible assets Goodwil
Slide 46: Market value appraisal for leased properties
Market value appraisal for leased properties Unrealized profit of leased properties increased thanks to the firm real estate market. FY2018 FY2019 （\ billion） Comparison Remarks Mar-2019 Mar-2020 Carrying Value 816.1 834.5 18.3 ■Market value at the end of the fiscal year is calculated by our company
Slide 47: Distribution of Office Buildings (Urban Development segment)
Distribution of Office Buildings (Urban Development segment) For the portfolios, Owns 88% of office buildings in 4 central wards, 44% built within 10 years. (As of December 31, 2020) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2011 681thousand ㎡（88%） 46buildings 336thousand ㎡（44%） 9buildin
Slide 48: Office market in Shibuya
Office market in Shibuya The vacancy rate in the Shibuya-ku rose, and that tends to be highly volatile. However, vacancy rates within the Group remain at a low level. (see Page 8) <Assumed Causes of High Volatility in Shibuya-ku> (1) The average floor area of offices in the Shibuya-ku is small compa
Slide 49: Commercial facilities
Commercial facilities ＊As of Mar-31, 2020 Developing commercial facilities in convenient areas, primarily in the Tokyo metropolitan area and the Kinki area. Features of our commercial facilities Locations that are commercially busy and convenient in terms of transportation Tokyu Plaza Ginza Q Plaza
Slide 50: Transition in total floor area and AUM transition
Transition in total floor area and AUM transition Both total floor area and AUM are steadily expanding. 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 API** 1,523.6 Commercial facilities CRR*** 1,467.2 1,500 Office building Private REITs, etc. 1,617 1,251.9 1,458 1,484 1
Slide 51: Major office buildings (Urban Development segment)
Major office buildings (Urban Development segment) As of the end of December 2020, the Company holds 55 buildings, located mainly in four wards in central Tokyo. No. of Total floor Area Major properties[Building] Year built Remarks buildings space * Shibuya Dogenzaka Tokyu 1983 13 Unosawa Tokyu 1984
Slide 52: Major commercial facilities (Urban Development segment)
Major commercial facilities (Urban Development segment） As of the end of December 2020, the Company operates 24 locations in the Tokyo area and 7 locations in Kansai and other regions. No. of Major properties Total floor Area Year built Remarks facilities [Commercial facilities] space * Tokyu Plaza
Slide 53: Major facilities (Wellness segment)
Major facilities (Wellness segment) Manage diverse facilities throughout the country. (As of December 31, 2020) Number of Number of Name of facilities facilities rooms Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsuura Madarao Nasu VIALA annex Kyoto Hamanako Tateshina Annex Kyu
Slide 54: Initiatives Related to Climate Change
Initiatives Related to Climate Change Examining expected climate change risks and related business opportunities. <Following TCFD’s recommendations> ・We are examining expected climate change risks and related business opportunities and are building a governance system and forming strategies. We are
Slide 55: Corporate Governance
Corporate Governance Building a governance system to ensure soundness and transparency and expedite decision-making. <Members of the Board of Directors> Directors:13 (independent outside directors:4, Corporate Governance Structure of which female independent outside director:1） Tokyu Fudosan Holding
Slide 56: Tokyu Fudosan Holdings
& TOKYU FUDOSAN HOLDINGS
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