Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — FY2019 Earnings Presentation
54 slides from Tokyu Fudosan's earnings presentation, May 2020
Slide 1: Financial Highlights FY2019 Ended Mar-31, 2020
Financial Highlights FY2019 Ended Mar-31, 2020 TOKYU FUDOSAN HOLDINGS CORPORATION Code︓3289
Slide 2: Forward-looking statements notice
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 • Trends in Results and Polices of FY2020 Earnings Forecasts ・・・・・ 3 • Overview of Results of the Fiscal Year Ended March 31, 2020 and Forecast for the Fiscal Year Ending March 31, 2021 ・・・・・ 5 • Reference ・・・・・ 38 2 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 4: Trends in Results and Policies 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 Significant rest
Slide 5: Action Policies in FY2020
Action Policies in FY2020 The Group will perform an overhaul to ensure sustainability in a state of emergency caused by the spread of the coronavirus. In FY2020, the Group will lay a foundation for executing the next medium- to long-term management plan. ・Voluntary restrictions on traditional behavi
Slide 6: Overview of Results of FY Ended March 2020 and Forecast for FY Ending March 2021
Overview of Results of the Fiscal Year Ended March 31, 2020 and Forecast for the Fiscal Year Ending March 31, 2021 5 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 7: FY2019 Financial Highlights
FY2019 Financial Highlights Increase in revenue and decrease in operating profit in the fiscal year ended March 31, 2020, and both revenue and profit are expected to decrease for the fiscal year ending March 31,2021. <Results of the fiscal year ended March 31, 2020> ¥963.2 billion in operating reven
Slide 8: FY2019 Operating Results
FY2019 Operating Results Results were favorable in the first nine months. However, operating profit fell due to the spread of the coronavirus in the fourth quarter, although revenue rose. FY2019 FY2018 FY2019 Compared to the same period （\ billion） Comparison Forecast Comparison Mar-2019 Mar-2020 la
Slide 9: FY2019 Segment performance
FY2019 Segment performance Both revenue and profit increased in the Urban Development, Residential, Property Management and Real Estate Agents segments. Both revenue and profit decreased in the other segments. Real Estate 〈Changes in revenue〉 Property Agents Wellness (9.4) Tokyu Hands Innovation bus
Slide 10: Summary of balance sheets
Summary of balance sheets Assets and liabilities increased, mainly due to an increase in Real estate for sale and Property and equipment, Intangible assets. FY2018 FY2019 FY2018 FY2019 （\ billion） As of Mar-31, As of Mar-31, （\ billion） As of Mar-31, As of Mar-31, Comparison Comparison 2019 2020 201
Slide 11: 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 12: Summary of Cash Flows
Summary of Cash Flows Cash provided by financing activities was spent on investment in non-current assets (cash flow from investing activities) and investment in inventories (cash flow from operating activities). FY2018 FY2019 （\billion） Main factors for changes Mar-2019 Mar-2020 Net cash provided b
Slide 13: 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. It is assumed that business activities will be constrained significantly in the first quarter and will recover gradually from the second quarter. Segment Effect on business Effect on results Dec
Slide 14: FY2020 Earnings Forecasts
FY2020 Earnings Forecasts Both revenue and profit are likely to fall due to the spread of the coronavirus, but the Company plans to pay a dividend per share of 16.0 yen, the same amount as for the previous fiscal year. FY2019 FY2020 Compared to the same period （\ billion） Mar-2021 Comparison Mar-202
Slide 15: FY2020 Forecast (Segment performance)
FY2020 Forecast (Segment performance) Both revenue and profit are expected to decrease due to the spread of the coronavirus. Property Residential Management 〈Changes in revenue〉 Urban Development (6.3) 4.2 Wellness （¥billion） (2.6) Real Estate 0.5 Tokyu Hands Agents (6.6) FY2018 FY2019 Comparison (6
Slide 16: Urban Development(1) FY2019 and FY2020 Forecast
Urban Development(1) FY2019 and FY2020 Forecast FY2019: Increases in both revenue and profit FY2020: Decreases in both revenue and profit Results will be affected by the closure of major commercial facilities and the suspension of the operation of rental meeting rooms due to the spread of the corona
Slide 17: Urban Development(2) Vacancy Rate and Rent
Urban Development(2) Vacancy Rate and Rent The average office rent at the end of March 2020 was 26,790 yen (Month/Tsubo). It rose approximately 9.3% from the end of the previous fiscal year due to revisions of rents for existing offices and openings of new offices. 12% ¥30,000 (¥/Month/Tsubo) 29,220
Slide 18: Urban Development(3) Major projects
Urban Development(3) Major projects Kudanminami West Shinsaibashi Jimbocho North Asakusa 2-chome Tokyo PortCity Takeshiba 1-chome Project** 2-chome Project** Chayamachi B-2 Block Tokyu Building Place Chiyoda-ku Osaka Minato-ku Urban Redevelopment Chiyoda-ku Taito-ku Office/Commercial Hotel Office Ho
Slide 19: Urban Development(4) Major projects in the Greater Shibuya area
Urban Development(4)Major projects in the Greater Shibuya area Construction of new buildings started in the Shibuya Sakuragaoka Block Redevelopment Plan in October 2019. The conversion of rights for the Jingumae 6-chome Block Urban Redevelopment Project (tentative name) was approved in January 2020.
Slide 20: Urban Development(5) Tokyo PortCity Takeshiba
Urban Development(5) Major projects <Tokyo PortCity Takeshiba> Facilitate the conversion of Takeshiba into a smart city in cooperation with SoftBank Corporation that will use the facility as an office tenant. Office tower Office/Commercial Floor space : about 180 Complete : May, 2020 (Plan) Office t
Slide 21: Urban Development(6) Renewable energy business
Urban Development(6) Renewable energy business Investment made progress. Properties in operation rose. <Investments in Properties in Operation, Investments in Projects acquired (As of March 31, 2020) Properties made decision, and Number of Projects in Operation> Properties in operation: 30 Investmen
Slide 22: Urban Development(7) Logistics facilities business
Urban Development(7) Logistics facilities business Developing logistics facilities to expand asset types in the cyclical reinvestment business. Projects acquired (As of March 31, 2020) Description of a project Properties in operation: 8 LOGIʼQ Miyoshi Total floor area︓71 thousand ㎡ Projects under de
Slide 23: Residential(1) FY2019 and FY2020 Forecast
Residential(1) FY2019 and FY2020 Forecast FY2019: Increases in both revenue and profit FY2020: Decreases in both revenue and profit Profit fell due to a decrease in sales by bulk and a fall in gross margin ratio for condominiums. Compared to the same FY2019 （\billion） FY2018 FY2019 Comparison Compar
Slide 24: Residential(2) Trends in condominium sales indicators
Residential(2) Trends in condominium sales indicators The contract ratio at the beginning of FY2020 was 50%. Accounting year FY2018 FY2019 FY2020 Forecast No. of units sold Total 1,266units Total 1,680units Total 1,700units Contract ratio 32%→57%→73%→90％ 54%→66%→82%→90％ 50% (Beginning-of-year→1Q→2Q→
Slide 25: Property Management(1) FY2019 and FY2020 Forecast
Property Management(1) FY2019 and FY2020 Forecast FY2019: Increases in both revenue and profit FY2020: Increase in revenue and Decrease in profit Sales activities for new construction work were scaled down due to the spread of the coronavirus. Compared to the same FY2019 （\billion） FY2018 FY2019 Com
Slide 26: Property Management(2) Stock of properties
Property Management(2) Stock of properties In FY2019, the number of condominium units under management decreased mainly due to the removal of unprofitable projects. The number of buildings and other facilities under management increased. 〈Trend in stock of comprehensive condominium management and fa
Slide 27: Real Estate Agents(1) FY2019 and FY2020 Forecast
Real Estate Agents(1) FY2019 and FY2020 Forecast FY2019: Increases in both revenue and profit FY2020: Decreases in both revenue and profit Sales agency operations were scaled down due to the spread of the coronavirus. Compared to the same period FY2019 （\ billion） FY2018 FY2019 Comparison Comparison
Slide 28: Real Estate Agents(2) Performance indicators in sales agency operations
Real Estate Agents(2) Performance indicators in sales agency operations In FY2019, the number of transactions increased in retail activities. The number of transactions and the average handling price rose in wholesale activities. FY2019 Highlights Retail Wholesale Total No. of transactions 25,413 1,
Slide 29: Wellness(1) FY2019 and FY2020 Forecast
Wellness(1) FY2019 and FY2020 Forecast FY2019: Decreases in both revenue and profit FY2020: Increase in revenue and Decrease in profit Results were affected by the closure of facilities, the scaling down of operations, and falls in operating rates due to the spread of the coronavirus. Compared to th
Slide 30: Wellness(2) Major projects
Wellness(2) Major projects Tokyu Stay Osaka-Hommachi Urban style hotel Opened in February 2020 Tokyu Stay Tokyu Stay Hida-Takayama Tokyu Stay Hakodate Tokyu Stay Kanazawa Okinawa Naha Musubi no Yu Kyoto Kagami-ishi Hotel Project* Asaichi Akari no Yu Urban style hotel Urban style hotel Urban style ho
Slide 31: Tokyu Hands FY2019 and FY2020 Forecast
Tokyu Hands FY2019 and FY2020 Forecast FY2019: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Results were affected by temporary closings and the scaling down of operations due to the spread of the coronavirus. Compared to the same FY2019 （\ billion） FY2018 FY2019
Slide 32: Innovation Business(1) FY2019 and FY2020 Forecast
Innovation Business(1) FY2019 and FY2020 Forecast FY2019: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit The operation of condominium showrooms in Indonesia was suspended due to the spread of the coronavirus. Compared to the same FY2019 （\ billion） FY2018 FY2019 Co
Slide 33: Innovation Business(2) Overseas operations
Innovation Business(2) Overseas operations 18 projects are in progress in the United States. <425 Park Avenue> 〈America〉 New York Office building redevelopment project 47 stories above ground with 2 basements Scheduled to be completed in FY2020 Seattle(4) Portland(1) New York(1) San Francisco(2) Was
Slide 34: Development of Business to Address Social Issues
Development of Business to Address Social Issues The Groupʼs business in response to changes in workstyles and behavioral patterns. In a smart city, data on the flows of The renewable energy business is The logistics facilities business will people and environmental data will be expected to generate
Slide 35: 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 1,400 15.6 16.0× 1,200 12.8 1,000
Slide 36: Sustainable Management
Sustainable Management The Company is promoting initiatives for sustainable growth and has continued to be selected as constituents of major domestic and overseas ESG indexes. <Major initiatives> ・E (environmental) Following the TCFD recommendations, became a member of RE100 ・S (social) Promoting wo
Slide 37: Issuance of green bonds
Issuance of green bonds Issuance of the Green Bond to spread awareness of our group's environmental initiatives. 〈Issuance Overview〉 Use of proceeds Term 5-year Total amount of issue JPY 10,000 million ・Shibuya Solasta Interest rate 0.190％ ・ReENE Matsumae Wind Farm Pricing Date January 17, 2020 Issu
Slide 38: Return to Shareholders
Return to Shareholders Emphasizing shareholder returns, the Company will pay dividends per share of 16.0 yen for the fiscal year ending March 31, 2021, the same amount as for the previous fiscal year. Medium-Term Management Plan 2017-2020 16Yen 15.5 16.0 16.0 Dividend*（Year-end） 14.5 14Yen Dividend*
Slide 39: Reference
Reference 38 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 40: 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 valu
Slide 41: 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 Tok
Slide 42: 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 ¥2,487.4 billion wh
Slide 43: Breakdown of Results by Segment
Breakdown of Results by Segment Operating Profit Net profit* Residential Real-Estate Agents Innovation business 120 ¥billion Tokyu Hands Medium-term Management Plan 2017-2020 Wellness Property Management 100 Urban Development Elimination 77.5 80.2 79.3 73.2 68.8 7.6 5.4 8.5 80 63.3 9.7 13.9 7.0 13.2
Slide 44: Segment performance・Forecast
Segment performance・Forecast （\ billion) (¥ billion) FY2018 FY2019 FY2019 FY2020 （\ billion） Comparison Comparison Comparison Mar-2019 Mar-2020 Forecast Forecast Operating revenue 901.9 963.2 61.3 930.0 33.2 930.0 (33.2) Urban Development 256.4 292.6 36.2 257.3 35.4 290.0 (2.6) Residential 121.4 136
Slide 45: Distribution of Office Buildings (Urban Development segment)
Distribution of Office Buildings (Urban Development segment) For the portfolios, Owns 84% of office buildings in 4 central wards, centering on Shibuya ward.(As of Mar-31, 2020) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 539thousand ㎡（84%） 49buildings 461thousand ㎡（72%） 27buildings Ka
Slide 46: Superiority of Shibuya as an Office Area
Superiority of Shibuya as an Office Area Rent is rising most steadily in the rest of the five central wards. 〈Falling vacancy rate〉 〈Increasing average rent〉 （2012 figures = 100） （%） Chiyoda-ku Chiyoda-ku 12.0 150.0 Chuo-ku Chuo-ku Minato-ku Minato-ku 145.7 10.0 Shinjyuku-ku 141.2 140.0 Shinjyuku-ku
Slide 47: Commercial facilities
Commercial facilities 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 Ikebukuro Other Area
Slide 48: Transition in total floor area and AUM transition
Transition in total floor area and AUM transition AUM will expand at a more solid pace than expected. 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 1,467.2 Commercial facilities API** Office building 1,400 CRR*** 1,251.9 Private REITs, etc. 1,458 1,484 1,200 1,500 1,438
Slide 49: Major office buildings (Tokyo Metropolitan area)
Major office buildings(Urban Development segment) As of the end of March 2020, the Company holds 60 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 15
Slide 50: Major commercial facilities (Urban Development segment)
Major commercial facilities(Urban Development segment） As of the end of March 2020, the Company operates 24 locations in the Tokyo area and 8 locations in Kansai and other regions. No. of Major properties Total floor Area Year built Remarks facilities [Commercial facilities] space * Tokyu Plaza Kama
Slide 51: Major facilities (Wellness business)
Major facilities (Wellness business) ＊As of Mar-31, 2020 Manage diverse facilities throughout the country. Number of Number of facilities rooms Name of facilities Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsuura Madarao Nasu VIALA annex Kyoto Hamanako Tateshina Annex Kyu Karui
Slide 52: Initiatives Related to Climate Change
Initiatives Related to Climate Change Examining expected climate change risks and related business opportunities and promoting the use of renewable energy. <Following TCFDʼs recommendations> ・We are examining expected climate change risks and related business opportunities and are building a governa
Slide 53: 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 54: Tokyu Fudosan Holdings
& TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — FY2019 Earnings Presentation on 6ix