Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — 3Q FY3/2015 Earnings Presentation
25 slides from Daito Trust Construction's earnings presentation, February 2015
Slide 1: 3Q Financial Highlights, Year ending March 31, 2015
3Q Financial Highlights, Year ending March 31, 2015 Contents Ⅰ. 3Q Financial Results ・・・・・・・・・・・・・・・ 3 Ⅱ. Results and Prospects of Major indicator ・・・・ ・・ 11 Ⅲ. Financial Forecasts ・・・・・・・・・・・・・・・ 22 Ⅳ. Topics ・・・・・・・・・・・・・・・・・・・・・ 26 Ⅴ．Appendix ・・・・・・・・・・・・・・・・・・・・ 30
Slide 2: 3Q Financial Results summary
Ⅰ. 3Q Financial Results Ⅰ- 1 3Q Financial Results summary We achieved increase both in sales and incomes. Net Sales Operating Income （\billions） （\billions） ¥991.2bn ¥75.4bn 1,200 （+8.3%YoY） 80 72.4 （+4.1%YoY） 915.5 900 60 600 40 300 20 0 0 3Q FY3/14 3Q FY3/15 3Q FY3/14 3Q FY3/15 Ordinary Income Net
Slide 3: 3Q Financial Results by segment (Construction, Real estate)
Ⅰ- 2 3Q Financial Results by segment (Construction) （¥billions） 3Q FY3/14 3Q FY3/15 （YoY） Net sales 387.8 425.8 （+9.8%） Gross profit 126.6 126.3 （△0.2%） Gross profit margin 32.6% 29.7% ［△2.9ｐ］ [ ]：Difference from previous same period ※ Major breakdown of GMR △2.9p YoY） ①Labor cost △2.7p ②Exchange lo
Slide 4: Results by segment (Others) and SG&A expenses
Ⅰ- 4 3Q Financial Results by segment (Others) （¥billions） 3Q FY3/14 3Q FY 3/15 （YoY） Net sales 25.7 28.4 （+10.4%） Gross profit 8.6 10.4 （+20.6%） Gross profit margin 33.5% 36.6% ［+3.1ｐ］ [ ]：Difference from previous same period （\billions） （\billions） 30 ¥28.4bn ¥10.4bn 25.7 10 8.6 8 20 36.6% 6 33.5%
Slide 5: B/S summary and Cash flow
Ⅰ- 6 B/S summary 3Q FY3/15 End of FY3/14 （¥billions） Current Current 200.6 255.4 liabilities liabilities （△54.8） Current 422.9 Current assets 482.9 Noncurrent assets （△59.9） Noncurrent 195.9 206.9 liabilities liabilities （△11.0） Total 396.5 Total 462.4 liabilities liabilities （△65.8） Noncurrent 203.
Slide 6: Results and Prospects of Major indicator: Orders received and in hand
Ⅱ. Results and Prospects of Major indicator Ⅱ- 1 Orders received and Orders in hand（Year on year） ◇Orders received ¥466.8bn（ +4.2% YoY ） ◇Orders in hand ¥799.2bn（ +4.0% YoY ） Orders received Orders in hand （\billions） （\billions） 500 466.8 768.6 799.2 448.1 800 400 600 300 400 200 200 100 0 0 3Q FY3
Slide 7: Business staffs, orders per sales rep, medium-rise and rebuild rates
Ⅱ- 2 Business staffs and Orders received per sales rep ( Year on year ) ◇ Sales representatives（end of 12/14） 3,295staffs（ +45 YoY ） ◇ Orders received per sales rep ¥15.59mn/Month （△¥130thousands YoY） Sales rep OR/person （person） （\millions/person・month） 3,500 3,250 3,295 20 3,000 15.72 15.59 2,500
Slide 8: Cancellation rate, unit price and orders received strategy
Ⅱ- 4 Cancellation rate and Unit price of orders received (Year on year) ◇Unit price ¥87.33mn（ +¥6.96mn YoY ） ◇Cancellation rate 16.5% （ △3.0p YoY ） Unit price※1 Cancellation rate※2 （\millions） 100 60% 87.33 80.37 50% 80 40% 60 30% 40 19.5% 20% 16.5% 20 10% 0 0% 3Q FY3/14 3Q FY3/15 3Q FY3/14 3Q FY3/1
Slide 9: Orders received Plan for FY3/15 and tenancy agreements
Ⅱ- 6 Orders received Plan for FY3/15 ◇ Plan of orders received<FY3/15> ¥630.0bn + α（ Over +0.7% YoY ） orders received （\billions） 700 ¥630.0bn＋α ¥625.8bn 600 4Q 177.7 4Q 163.2+α 500 400 300 200 448.1 466.8 100 0 FY3/14 FY3/15(Plan) 17 Ⅱ- 7 Tenancy agreement ◇ New Tenants 165,912（ +3.7％ YoY ） ・Reside
Slide 10: Rent basis occupancy rate and measures to increase responses
Ⅱ- 8 Rent basis occupancy rate (Year on year) Residential use Commercial use 95.9%（ △0.2p YoY） 97.8%（ ＋1.3p YoY ） Residential use Commercial use Occupancy Occupancy rate rate 100% 100% 97.8% 96.1% 95.9% 96.5% 90% 90% 80% 80% 70% 70% 3Q FY3/14 3Q FY3/15 3Q FY3/14 3Q FY3/15 Rent basis occupancy rate ＝
Slide 11: Plan for occupancy rate; Financial Forecasts
Ⅱ–10 Plan for occupancy rate End of FY3/15 (plan) End of FY3/15 (plan) Occupancy rate of residential use Occupancy rate of Commercial use 96.9% 97.0% occupancy occupancy rate rate 97.8% 98% 98% 97.4% 96.9% 96.9% 96.1% 96.1% 96.1% 95.9% 96% 96.7% 96% 96.5% 96.8% 96.0% 95.9% 96.0% 96.0% 95.8% 95.8% 96
Slide 12: No change in FY3/15 original plan; completed construction plan
Ⅲ- 1 No change in FY3/15 original plan We maintain current original plan for FY3/15 Net sales Operating Income （\billions） ¥1,345.0bn （\billions） ¥91.0bn 1,500 1,259.6 （+6.8% YoY） 100 89.7 （+1.4% YoY） 1,200 80 ¥72.4bn ¥75.4bn ¥991.2bn Progress 915.5bn Progress 900 Progress Progress 60 82.9％ 73.7％ 80
Slide 13: Plan of real estate business; Topics
Ⅲ- 3 The plan of real estate business ＜Plan of real estate sales＞ ◇Plan for FY3/15 ¥722.2bn（+6.6% YoY） Gross profit of Sales of real estate real estate （\billions） （¥billions） 800 80 ¥722.2bn ¥677.6bn Sales Sales progress 600 progress 74.3％ 60 ¥536.9bn ¥501.9bn 74.1％ ¥49.6bn ¥45.3bn 400 ¥39.0bn 40 ¥
Slide 14: No cosigner required service and low back rent ratio
Ⅳ- 1 No cosigner required service / House Leave Simplified proceeding about consigners ↓ Increase in the level of convenience in occupancy procedures Repute New utilization ratio 97.4% Structure of the no cosigner required service （Dec. 2012） 【No cosigner required service】 Daito group Transition of
Slide 15: Child care services; Appendix
Ⅳ- 3 The situation of child care services 【Child care services】Kids partner ４institutions will open（plan in Apr. 2015） Open on Apr.2015 (Plan) Kobe Yokohama FY 3/15 FY3/16 FY3/17 Nada-ku Kohoku-ku 2 inst. 6 inst. 11inst. Kobe Yokohama The number of inst. Net sales Nishi-ku Nishi-ku 400 401 Yokohama:
Slide 16: Revised Inheritance Tax Act
Ⅴ- 1 Topics : Enforce revised Inheritance Tax Act （Jan.1,2015） 【Main revised point】 Reduction of basic deduction ⇒ Increase in the number of taxation Current taxation Revised taxation Revised in FY2003 Revised in FY2003 （effective from Jan.1,2003） （effective from Jan.1,2003） Standard tax deduction:
Slide 17: Financial summaries of major subsidiaries (construction); sales structure
Ⅴ- 3 Financial summaries of major subsidiaries (construction) ＜FY 3/2015＞ （¥millions） Construction business Daito Construction Daito Steel plan plan 3Q FY3/15 3Q FY3/14 YoY (full-year) 3Q FY3/15 3Q FY3/14 YoY (full-year) Net sales 3,808 4,088 △6.9% 5,250 3,470 3,197 +8.5% 4,606 Gross profit 3 144 △9
Slide 18: Financial summaries of major subsidiaries (Real estate)
Ⅴ– 5 Financial summaries of major subsidiaries ( Real estate ) ＜FY 3/2015＞ （¥millions） Real estate business Daito Building Management Housecom House Leave plan plan plan 3QFY3/15 3QFY3/14 YoY 3QFY3/15 3QFY3/14 YoY (full-year) 3QFY3/15 3QFY3/14 YoY (full-year) (full-year) Net sales 521,683 488,468 +6
Slide 19: Financial summaries of subsidiaries (Others-2); employees
Ⅴ- 7 Financial summaries of major subsidiaries (Others-2) ＜FY 3/2015＞ （¥millions） Other business (Other) Care Partner Gaspal D. A. D. (M) plan plan plan 3QFY3/15 3QFY3/14 YoY (full-year) 3QFY3/15 3QFY3/14 YoY (full-year) 3QFY3/15 3QFY3/14 YoY (full-year) Net sales 7,053 6,662 +5.9% 9,289 17,198 15,6
Slide 20: Orders received by area and channels
Ⅴ– 9 The amount of orders received by area \billions YoY 180 60% Daito’s Nationwide 150 158.7 Ave. 40% +4.2% +22.3% 120 +13.7% +10.1% (127.0) 20% +5.1% +0.4% 90 +10.0% -6.6% -4.6% 0% （+16.6%） -2.6% 60 -20% 65.2 60.0 56.7 30 35.5 35.0 -40% 25.0 18.9 11.3 0 -60% n) ai i eg to ido u ku u u su nk io ok
Slide 21: Orders received by repeat; orders comparison with last year
Ⅴ- 11 Orders received by repeat （\billions） 300 272.2 \284.5bn 200 53.7% 56.1% 100 0 3Q FY3/14 3Q FY3/15 Orders received by repeat Composition rate of repeat Number of orders received by repeat from our existing customers ※ Composition rate of repeat ＝ Total number of orders received 41 Ⅴ– 12 3Q FY3
Slide 22: Number of construction starts and Daito's share
Ⅴ– 13 Number of construction starts & Daito’s share Number of Daito’s share construction starts 300,000 40% 247,737 243,091 250,000 30% 200,000 150,000 16.9% 17.8% 20% 100,000 10% 50,000 0 0% 11/13 11/14 Number of construction starts(Apr.-Nov.) Daito's share(Apr.-Nov.) (Ministry of Land, Infrastruct
Slide 23: Tenancy agreement per rep; rent basis occupancy rate
Ⅴ- 15 Tenancy agreement per rep（Year on year） agreement Tenant sales rep. 20.0 2,000 15.3 15.6 15.0 1,500 1,163 1,171 10.0 1,000 5.0 500 0.0 0 3Q FY3/14 3Q FY3/15 Tenancy agreement per rep Tenant sales rep 45 Ⅴ- 16 Rent basis occupancy rate Rent basis occupancy rate Residential 100% Commercial 98% 9
Slide 24: Occupancy rate by area; units under management
Ⅴ– 17 Rent basis occupancy rate by area ( Residential use / December ) 100% 94.7% 97.9% 95.7% 94.6% 96.2% 95.8% 96.3% 96.2% 95.8% 98.3% 95.9% 95.8% 95.9% 96.7% 96.6% 96.3% 94.9% 94.7% Daito’s nationwide Ave. 95.9% 50% 0% ai i o ido u ku u u su nk nt ok y ok k iko us et Ki To ka Ka h ug in Ky To k Sh
Slide 25: Customer's financing channel; disclaimer
Ⅳ- 19 Customer’s financing channel Shares of financial institutions ( Construction starts basis) 60% Japan Housing Finance 48% Agency; 7.7% Others; 2.4% Agricultural/ 36% Fisheries Cooperative; 7.2% 24% City banks; 12.3% 12% 0% Shinkin banks; Regional banks; FY 3/12 FY 3/13 FY 3/14 3Q FY 3/15 14.7%
Daito Trust Construction — 3Q FY3/2015 Earnings Presentation on 6ix