Tokyu Fudosan Holdings Corp. · TSE:3289

Tokyu Fudosan — Q3 FY2017 Earnings Presentation

30 slides from Tokyu Fudosan's earnings presentation, February 2018

  1. Slide 1: Financial Highlights FY2017 Third Quarter (First Nine Months)

    Financial Highlights FY2017 Third Quarter (First Nine Months) Ended December 31, 2017 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 Q3 (First Nine Months) Operating Results

    FY2017 Q3 (First Nine Months) Operating Results Individual businesses remained firm to increase revenue and profit steadily in comparison to the full-year forecast. Q3 First nine Months Full-year (ended Dec-31) (ended March-31) Compared to the same period （\ billion） Progress FY2017 last year FY2016

  4. Slide 4: FY2017 Q3 (First Nine Months) Segment performance

    FY2017 Q3 (First Nine Months) Segment performance Both revenue and profit increased in the urban development and residential segments due to an increase in gains on sales and a rise in sales of condominiums. Q3 First Nine Months Full-year (ended Dec-31) (ended March-31) Compared to the same period （

  5. Slide 5: Summary of balance sheets

    Summary of balance sheets Both assets and liabilities rose, due mainly to an increase in real estate for sale and investment securities. FY2016 FY2017 （\ billion） As of Mar-31, As of Dec-31, Compared to the end of the previous fiscal year Comparison 2017 2017 Cash and deposits 62.9 70.8 7.9□Real est

  6. Slide 6: Segment Performance

    Segment Performance 5 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.

  7. Slide 7: Urban Development(1) FY2017 Q3(First Nine Months)

    Urban Development(1) FY2017 Q3(First Nine Months) Q3: Increase in both revenue and profit FY2017: Increases in both revenue and profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 143.0 192.3 49.3 75.9% Leasing (Office buildin

  8. Slide 8: Urban Development(2) Vacancy Rate and Rent

    Urban Development(2)Vacancy Rate and Rent As of Dec 31, 2017 Vacancy rate 0.4% (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 24,930 ¥25,000 26,090 25,050 24,750 23,600 23,850 24,210 23,270 22,48022,1

  9. Slide 9: Urban Development(3) Major projects

    Urban Development(3)Major projects Floor space ： thousand ㎡ Ginza 1-chome Project Chuo-ku Commercial Floor space ：1 (Sold already) OCEAN GATE MINATOMIRAI Yokohama Office Floor space：55 (Sold already) Shimbashi 3-chome Higashi Ikebukuro Osakashi Naniwaku Urban Redevelopment Kudanminami Chayamachi B-2

  10. Slide 10: 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. Plan Commercial Office building Greater Properties under asset management Shibuya Area Harajuku Sta. Properties owned by Activia Proper

  11. Slide 11: Urban Development(5) Renewable energy business

    Urban Development(5)Renewable energy business Investment in the renewable energy business, including investment in solar power and wind power generation plants, made progress. Capital and business alliance with Renewable Japan Co., Ltd. ■ Solar power plants map The Company acquires development proje

  12. Slide 12: Residential(1) FY2017 Q3(First Nine Months)

    Residential(1) FY2017 Q3(First Nine Months) Q3: Increases in both revenue and profit FY2017: Increase in revenue and Decrease in profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 38.6 77.1 38.5 63.7% Condominiums 31.9 62.7 3

  13. Slide 13: 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

  14. Slide 14: Property Management(1) FY2017 Q3(First Nine Months)

    Property Management(1) FY2017 Q3(First Nine Months) Q3: Increases in both revenue and profit FY2017: Increases in both revenue and profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 107.1 114.3 7.2 71.6% Condominium 77.7 80.3

  15. Slide 15: Property Management(2) Stock of properties

    Property Management(2)Stock of properties Condominiums and buildings under management steadily increased to expand stock under management. 〈Trend in stock of comprehensive condominium management and facility management in number of units〉 Comprehensive Facility 800,000 management management 303,495

  16. Slide 16: Real Estate Agents(1) FY2017 Q3(First Nine Months)

    Real Estate Agents(1) FY2017 Q3(First Nine Months) Q3: Increases in both revenue and profit FY2017: Increases in both revenue and profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 52.8 66.9 14.1 73.3% Real-estate sales agent

  17. Slide 17: Real Estate Agents(2) Performance indicators in sales agency operations

    Real Estate Agents(2)Performance indicators in sales agency operations Both the number of transactions and average handling prices increased in the retail business, driven by the strong market conditions. FY2017 Q3 Highlights Retail Wholesale Total No. of transactions 16,827 846 17,673 □Retail (Resu

  18. Slide 18: Wellness(1) FY2017 Q3(First Nine Months)

    Wellness(1) FY2017 Q3(First Nine Months) Q3: Increase in revenue and Decrease in profit FY2017: Increase in revenue and Decrease in profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 67.3 69.2 1.9 71.1% Operation of resort fa

  19. Slide 19: Wellness(2) Major projects

    Wellness(2)Major projects Plan new facilities mainly for hotel business such as Tokyu Stay and Harvest club Type Major project Usage Open Tokyu Stay Kyoto Rryogaemachi-Dori November 2017 Tokyu Stay Takanawa（Sengakuji ekimae） February 2018 Tokyu Stay Sapporo April 2018 Tokyu Stay Hakata * FY2018 Toky

  20. Slide 20: Tokyu Hands FY2017 Q3(First Nine Months)

    Tokyu Hands FY2017 Q3(First Nine Months) Q3: Decrease in revenue and Increase in profit FY2017: Increase in revenue and Decrease in profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 74.1 74.1 (0.0) 75.1% Operating profit 0.3

  21. Slide 21: Innovation Business FY2017 Q3(First Nine Months)

    Innovation Business FY2017 Q3(First Nine Months) Q3: Decreases in both revenue and profit FY2017: Decrease in revenue and Increase in profit Third Quarter FY2016 FY2017 Comparison Progress First Nine Months（\ billion） Q3(Apr-Dec) Q3(Apr-Dec) Operating revenue 33.8 31.1 (2.7) 74.5% Operating profit (

  22. Slide 22: Reference

    Reference 21 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.

  23. Slide 23: 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

  24. Slide 24: Reference② Progress in the Long-term Management Plan (D/E ratio, EBITDA multiple)

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

  25. Slide 25: 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

  26. Slide 26: Reference④ Transition in total floor area and AUM transition

    Reference④ Transition in total floor area and AUM transition (As of Sep-30, 2017) 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 800 787.3 789.1 Commercial facilities Office building 1,580 644.1 192.9 192.7 1,548 1,512 1,458 1,451 1,500 600 556.8 529.6 156.0 127.7 186.5

  27. Slide 27: Reference⑤ Distribution of Office Buildings

    Reference⑤ Distribution of Office Buildings Office Buildings : Floor space 576 thousand ㎡, Total of 59 buildings (As of Sep-30, 2017) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 477thousand ㎡（83%） 48buildings 367thousand ㎡（64%） 26buildings Kansai 3% 16 [2] -1980 3% 17 [6] 2011- Chiyod

  28. Slide 28: Reference⑥ Major office buildings (Urban Development segment)

    Reference⑥ Major office buildings(Urban Development segment) As of the end of September 2017, the Company holds 59 buildings, located mainly in four wards in central Tokyo. Area No. of Major properties[Building] Year built Total floor notes buildings space * Shibuya Center Place 1983 7 Shibuya Dogen

  29. Slide 29: Reference⑦ Major commercial facilities (Urban Development segment)

    Reference⑦ Major commercial facilities(Urban Development segment） As of the end of September 2017, the Company operates 22 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 * Tok

  30. Slide 30: Tokyu Fudosan Holdings

    & TOKYU FUDOSAN HOLDINGS

Tokyu Fudosan Holdings — Q3 FY2017 Earnings Presentation on 6ix