Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — H1 FY2008 Earnings Presentation
27 slides from Daito Trust Construction's earnings presentation, November 2008
Slide 1: Interim Financial Highlights, Year ending March, 2009
Interim Financial Highlights, Year ending March, 2009 Index Ⅰ．Interim financial results, Year ending March 2009 ・・・・ 3 Ⅱ．Key figures・・・・・・・・・・・・・・・・・・・・・・ 13 Ⅲ．Full Fiscal Year Forecast, Plans and Countermeasures for second-half year ・・・ 19 Ⅳ．Appendix・・・・・・・・・・・・・・・・・・・・・ ・ 37
Slide 2: Interim results highlights
Ⅰ. Interim Financial Results, Year ending March, 2009 Interim results highlights Income Income summary：Sales summary：Salesand andprofit, profit,attained attained Higher Higherresults resultsthan thanour ourplan planof of released releasedApril,2008 April,2008 Orders Ordersreceived：Recorded recei
Slide 3: Income summary
Income summary ◇We attained higher results than our plan released April, 2008 Net sales Operating income (billions of yen) (billions of yen) 600 ¥430.7bn 50 （+69.7% y/y） 500 （+0.6bn from plan） 40 ¥22.9bn 400 （-8.8% y/y） 30 27.1 25.1 （+3.6bn from plan） 300 240.7 253.7 （plan 20 200 430.1bn） （plan 100
Slide 4: Income summary by segment (Real Estate)
Income summary by segment (Real Estate) （billions of yen） Interim Interim （Year on year） FY2007 FY2008 Net sales 52.8 228.4 （+332.1%） Gross profit margin 13.7 13.8 （+0.6%） Gross profit margin ratio 26.0% 6.1% ［-19.9point］ [ ]：Difference from interim of FY2007 (billions of yen) (billions of yen) （%）
Slide 5: Selling, general and administrative expenses; Financial condition
Selling, general and administrative expenses （billions of yen） Interim Interim （Year on FY2007 FY2008 year） SG& A expenses 56.5 55.9 （-0.9%） SG&A ratio 22.3% 13.0% ［-9.3ｐ］ （billions of yen） [ ]：Difference from interim of FY2007 80% 60 56.5 \5.6bn 50.6 60% （492） 40 （442） plan 40% ¥57.8bn 21.0% 22.3%
Slide 6: Cash flows
Cash flows Payment for corporate tax Cash flow provided by -1.6 operating activities Redemption of securities (Securities, CP) Cash flow provided by 17.0 Investing activities Payment for dividend Cash flow used in -21.8 Financing activities Cash and cash equivalents 200.4 at end of year -50 0 50 100
Slide 7: Key figures: Orders received
Ⅱ. Key figures Orders received (non-consolidated) （billions of yen） Interim Interim （Year on year） FY2007 FY2008 Orders received 234.0 246.4 （+5.3%） Orders received Average contract value (billions of yen) (millions of yen) 300 120 ¥246.4bn 250 234.0 220.2 200 plan 100 ¥270.0bn 150 83.45 82.71 \80.6
Slide 8: Sales people and sales efficiency; Number of Tenants Recruited
Sales people and sales efficiency ◇ Number of sales people (staff) 3,013 (as of Sep 30, 2008) (+354 year on year) ◇Orders received by each sales people ¥13.76million (-¥1.6mil, year on year) Orders received Number Number of sales people by each sales people of sales people Orders received by each sa
Slide 9: Rent basis Occupancy rate
Rent basis Occupancy rate (As of Sep 30, comparisons) ◇Residential property (Sep) 95.6%(-0.3point, year on year) ◇Commercial property (Sep) 95.1%(-0.4point, year on year) Occupancy rate 100% 96.3% 95.5% 95.9% 95.5% 95.6% 95.1% 90% 80% 70% 60% 50% 06/9 07/9 08/9 Residential property Commercial proper
Slide 10: Full Fiscal Year Forecast: Income summary plan
Ⅲ. Full Fiscal Year Forecast, Plans and Countermeasures of Second-half year Income summary plan Same Sameas asinitial initialplan plan Net sales Operating income (billions of yen) (billions of yen) 1,200 ¥976.5bn 100 （+52.3% y/y） ¥66.8bn 1,000 80 72.6 66.2 （+0.8% y/y） 800 641.0 60 600 564.3 40 400 2
Slide 11: Plan for second half of fiscal year
Plan for second half of fiscal year 1.Orders received planning & measures for 2nd half of fiscal year ⇒ Keep Orders backlog for ending March, 2009 2.Improvement and measures for Occupancy rate for ending March, 2009 3.Effects of construction materials soaring 4.Impact from financial market 21 Orders
Slide 12: Increase of Orders received
Order received gain channel Stable Orders received gain form Repeat・Introduced 【Support from exist owners (55 thousand people)】 Orders Orders received received gain gain channel channel and and Interim Results of FY2008 Amount Amount of of Orders Orders received received of of last last 33 years yea
Slide 13: Owner retention and improvement of sales people force
Owner retention Operation reinforcement of Owners’ organizations 1.Review of Consultant club (Daito supporter club constructed by our exist customer) Expanding 1) Increase of member ＜790 → 1,500 ＞ sales results 2) Assign sales support area for each member 2．Activation Owner club (Advisory panel for
Slide 14: Sales enhance for Inside area of Urban; Orders backlog
Area strategy Sales enhance for Inside area of Urban Orders Ordersreceived receivedas as building reconstruction building reconstruction （Number） 600 501 30% （+21.3%） Number of building reconstructions by other 413 461 companies 400 20% 389 Number of building reconstructionby Daito Building reconstr
Slide 15: Tenant recruitment plan in 2nd half-year; Occupancy rate forecast
Number of tenant recruitment plan in 2nd half-year Number nd Numberof oftenant tenantrecruitment recruitmentin in22ndhalf-year half-year<plan> <plan> 102,000 102,000 (+14.4% (+14.4%year yearon onyear) year) (Number) approx 200,000 180 thousand 146,610 159,435 102,000 150,000 89,141 81,162 100,000 70
Slide 16: Countermeasures for tenant recruitment
Countermeasures for tenant recruitment 1.Increase of Tenants recruitment staff 08/9：961 08/12：1,010 staff（About+50） 2.Advance of In-House recruitment number 07/9：34,700 08/9：40,500 (49.4% In-House recruitment ratio) (52.6% In-House recruitment ratio) 3.Corporate enhance with collaborating compan
Slide 17: Effects of construction materials soaring
Effects of construction materials soaring We Weforecast forecastachieve achieve “Construction “Construction Gross profitmargin Gross profit marginratio ratio30.9%” 30.9%” as asFull-Fiscal Full-Fiscalyear yearplan plan Crude Oil Naphtha (¥ thousand) （＄/barell） (¥ thousand/ kl) Steel products 200 90 1
Slide 18: Impact from financial market
Impact from financial market ■ Effects ■ Effects of of the the Lehman Lehman Brothers Brothers Collapse Collapse 1．For new Orders received ⇒ Almost never in the future 2．For scheduled case ⇒ In the progress change to other financial institutions 3. Debits and Credit with Lehman group ⇒ N/A 4．Credits
Slide 19: Appendix: Income summary (non-consolidated)
Ⅳ. Appendix Ⅳ-1 Income summary (non-consolidated) （millions of yen） Interim Interim Year on year FY2008 FY2007 Net sales 214,547 224,298 -4.3% Construction 192,432 185,355 +3.8% Real Estate & other 22,115 38,942 -43.2% Gross profit 64,399 62,895 +2.4% Sales and profit of Daito Building Management Co
Slide 20: Financial summaries of major subsidiaries (Construction, Real Estate)
Ⅳ-2 Financial summaries of major subsidiaries ① (Construction) (millions of yen) Construction business Daito Construction Daito Steel Interim Interim Interim Interim Year on year Year on year FY2008 FY2007 FY2008 FY2007 Net sales 2,156 6,184 -65.1% 1,452 1,048 +38.5% Gross profit -37 200 ― 81 67 +20
Slide 21: Financial summaries of major subsidiaries (Other)
Ⅳ-4 Financial summaries of major subsidiaries ③ (Other) (millions of yen) Other business Daito Asia Development Care Partner Gaspal (Malaysia) Interim Interim Year on Interim Interim Year on Interim Interim Year on FY2008 FY2007 year FY2008 FY2007 year FY2008 FY2007 year Net sales 2,149 1,466 +46.6%
Slide 22: Major subsidiary's situation and forecast: Gaspal
Ⅳ-6 Major subsidiary’s situation and forecast of FY2008 ① (Gaspal) Number of servicing units Sep, 2008 Mar, 2009 58 thousand Units！ 36 thousand units (From Jan, 2009 becoming profitable by monthly) Servicing units 60,000 58,000 Income summary forecast 50,000 (millions of yen) 09/3 Year on 40,000 36,
Slide 23: Major subsidiary forecast: Malaysia; employees by occupation
Ⅳ-8 Major subsidiary’s situation and forecast of FY2008 ③ (Malaysia) Occupancy rate & Unit price of per room Occupancy Occupancyrate rateAve Ave 71.6%（Year 71.6% （Yearon onyear year+2.1%） +2.1%） (Jan, 2008-Sep, 2008) (Jan, 2008-Sep, 2008) Unit Unitprice priceof ofper room ¥¥11.4 perroom 11.4thou
Slide 24: Market share and Number of construction started
Ⅳ-10 Market share and Number of construction started Number of construction starts 300,000 20% 250,000 227,181 194,829 203,237 15% 200,000 9.1% 9.0% 150,000 7.5% 10% 100,000 5% 50,000 0 0% 06/8 07/8 08/8 Lease housing construction start (Apr-Aug) Daito's share (Apr-Aug) （Ministry of Land, Infrastruc
Slide 25: Regional Orders received; Repeat Orders
Ⅳ-12 Regional Orders received (non-consolidated) Orders received (billions of yen) 80 100% 75% 71.1 (+46.5%) 60 50% +10.2% Company (+13.7%) （+7.5%） (+17.9%) 25% Ave (+7.7%) ＋5.4% (-6.1%) (-5.2%) 40 (-14.0%) 0% (52.8) 39.6 (-21.9%) 33.7 -25% 26.7 26.9 20 -50% 14.5 17.1 -75% 12.0 0 4.6 -100% ) i do ku
Slide 26: Rent basis occupancy rate
Ⅳ-14 Rent basis occupancy rate Rent basis Occupancy rate 98% 97% 96% 95% 94% 93% 92% 91% Residential property Commercial property 90% 03/3 03/9 04/3 04/9 05/3 05/9 06/3 06/9 07/3 07/9 08/3 08/9 Rent basis Occupancy rate 04/9 05/9 06/9 07/9 08/9 Year on year Residential property (%) 96.2% 96.5% 96.3%
Slide 27: Number of units under management & aggregate of rent
Ⅳ-16 Number of units under management & aggregate of rent Residential property Commercial property Managing units Rent Managing units Rent (thousands of units) (billions of yen) (thousands of units) (billions of yen) 600 50 500 10 502 523 500 454 40 400 7.3 7.2 7.1 8 400 28.2 30.5 25.5 30 300 6 300
Daito Trust Construction — H1 FY2008 Earnings Presentation on 6ix