Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — Q1 FY3/2014 Earnings Presentation
23 slides from Daito Trust Construction's earnings presentation, August 2013
Slide 1: 1Q Financial Highlights, Year ending March 31, 2014
1Q Financial Highlights, Year ending March 31, 2014 Contents Ⅰ. 1Q Financial Results・・・・・・・ 3 Ⅱ． Key Figures・・・・・・・・・・・ 11 Ⅲ． Topics ・・・・・・・・・・・・・ 23 Ⅳ． Appendix・・・・・・・・・・・・ 27
Slide 2: 1Q Financial Results summary
Ⅰ. 1Q Financial Results Ⅰ-1 1Q Financial Results summary Net sales Operating Income (￥billions) ￥286.4bn (￥billions） （+17.1% YoY） ￥22.0bn 300.0 30.0 244.6 （+130.1% YoY） 224.9 25.0 200.0 20.0 15.0 7.8 9.5 100.0 Plan 10.0 Plan ￥285.2bn 5.0 ￥19.8bn 0.0 0.0 1QFY3/12 1QFY3/13 1QFY3/14 1QFY3/12 1QFY3/13 1
Slide 3: 1Q Financial Results by segment (Construction, Real estate)
Ⅰ-2 1Q Financial Results by segment （Construction） （￥billions） 1QFY3/13 1QFY3/14 （YoY） Net sales 82.5 112.6 （+36.4%） Gross profit 28.4 38.0 （+33.5%） Gross profit margin 34.5% 33.8% ［△0.7ｐ］ [ ]： Difference from previous same period （￥bilions） 120 ￥112.6bn （￥billions) 100 ￥38.0bn 40.0 82.5 46.2 80 75.
Slide 4: Results by segment (Others) and SG&A expenses
Ⅰ-4 1Q Financial Results by segment (Others) （￥billions） 1QFY3/13 1QFY3/14 （YoY） Net sales 7.84 8.72 （+11.3%） Gross profit 2.64 3.03 （+14.8%） Gross profit margin 33.7% 34.7% ［＋1.0ｐ］ [ ]： Difference from previous same period (￥billions) ￥8.72bn （￥billions） 7.84 4.0 8 6.95 ￥3.03bn 3.0 2.64 6 2.43 4 34
Slide 5: Financial conditions and Cash flows
Ⅰ-6 Financial conditions 1Q FY3/14 End of FY3/13 （￥billions） Current 166.7 Current liabilities 213.1 liabilities （△46.4） Current 387.7 Current assets 435.7 assets （△48.0） Noncurrent 215.0 Noncurrent 217.9 liabilities liabilities （△2.9） Total 381.8 Total 431.1 liabilities liabilities Noncurrent 184.6
Slide 6: Key Figures: Orders received and Orders in hand
Ⅱ. Key Figures Ⅱ-1 Orders received and Orders in hand ◇ Orders received ¥136.0bn（△13.2% YoY） ◇ Orders in hand ¥747.1bn（＋12.7% YoY） Orders received Orders in hand （¥billions） （¥billions） 200.0 800.0 739.9 747.1 178.4 731.2 694.9 159.5 160.2 700.0 662.9 156.6 150.0 136.0 600.0 500.0 100.0 400.0 300.0
Slide 7: Cancellation rate, unit price and important indicators of orders
Ⅱ-2 Cancellation rate and Unit price of orders received ◇ Unit price ¥81.37mn.（+¥5.79mn. YoY） ◇ Cancellation rate 21.6%（ +8.7p YoY） （￥mn） Unit price※2 Cancellation rate※1 100 60% 79.93 80.43 81.37 80 75.58 76.05 50% 40% 60 30% 40 21.6% 20% 15.8% 16.7% 12.9% 20 9.6% 10% 0 0% 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4
Slide 8: Orders received target of FY3/14
Ⅱ-4 Orders received target of FY3/14 ◇ Orders received target of FY3/14 ￥670.0bn(+2.3% YoY） Full-year Orders Quarter Orders （￥billions） （￥billions） 608.7 654.9 ￥670.0bn 400 600 335.0 335.0 500 300 400 178.4 200 300 164.4 156.6 159.5 160.2 141.2152.2150.7 136.0 200 100 100 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 9: Focus on the metropolis and tenancy agreements
Ⅱ-6 Focus on the metropolis② Power up of presentation tools Power up of design ・Hiring 4 interior coordinators. Visualized presentation tools ・Adding new space to our showroom, by using building models or dioramas land owners rental housing combined with there own homes. ・Collaboration with 27 archi
Slide 10: Tenancy agreements per rep. and enforcing tenancy sales force
Ⅱ-8 Tenancy agreements per rep. ◇Tenancy agreements per rep. 15.1/rep,month（+1.9 YoY） （persons） （agreements） 20.0 Exclusive duty trader More 2,000 15.1 structure Efficient sales 14.0 15.0 13.2 1,500 1QFY 1QFY 1QFY 1,173 1,223 1,206 3/12 3/13 3/14 10.0 1,000 Tenant sales rep. 1,173 1,223 1,206 ①Exclu
Slide 11: Zero deposit plan and occupancy rate targets
Ⅱ-10 The brand-new plan to reduce initial cost of tenants “Zero deposit ＆ Fixed cleaning cost plan” started from April and welcomed by tenants, since this scheme will reduces their initial costs. For example among tenants agreement from April to June, this scheme consist of 53.8％ of whole agreement.
Slide 12: Topics: Renewal of TV commercials
Ⅲ. Topics Ⅲ-1 Renewal of TV commercial for land owners and for tenants Maximizing the potential of rental housing. Corporate TV commercial （From November 1, 2012） New New You can meet nice and suitable rooms We present the future for you. by our network, sometimes dramatic. TV commercial for land ow
Slide 13: Building Keeper System and new condominiums
Ⅲ-2 “Building Keeper System” has started（From June, 2013） “Inspection by experts of construction” － For keep and improve quality－ ＝ More satisfaction of owners Regular building inspections by dual experts Regular Inspections Inspections report by experts of by experts of construction ＋ property engi
Slide 14: Appendix: Non-consolidated statement of income
Ⅳ. Appendix Ⅳ-1 Non-consolidated statement of income （￥millions） 1Q FY3/14 1Q FY3/13 YoY plan (full-year) Net sales 116,831 86,891 +34.5% 560,500 Construction 112,651 82,667 +36.3% 542,800 Real estate & others 4,179 4,223 △1.0% 17,700 Gross profit 37,177 27,517 +35.1% 180,000 Construction 37,811 28,
Slide 15: Financial summaries of major subsidiaries (Construction, Real estate)
Ⅳ-2 Financial summaries of major subsidiaries （Construction） （￥millions） Construction business Daito Construction Daito Steel plan plan 1Q FY3/14 1Q FY3/13 YoY (full-year) 1Q FY3/14 1Q FY3/13 YoY (full-year) Net sales 1,042 1,165 △10.5% 5,350 890 723 +23.1% 4,254 Gross profit 12 △39 － 75 43 29 +48.3
Slide 16: Sales structure of Real estate business; subsidiaries (Others)
Ⅳ-4 Sales Structure of Real estate business （￥millions） 1QFY3/12 1QFY3/13 1QFY3/14 4Amount （Ratio） Amount （Ratio） Amount （Ratio） YoY Whole-building lease ※1 128,978 (90.4%) 140,782 (91.3%) 151,894 (92.0%) +7.9% Building and repairs 7,276 (5.1%) 7,758 (5.0%) 7,550 (4.5%) △2.7% Brokerage 2,891 (2.0%)
Slide 17: Subsidiaries (Others - 2) and number of employees
Ⅳ-6 Financial summaries of major subsidiaries （Others - 2） （￥millions） Other business (Other) Care Partner Gaspal D. A. D. (M) plan plan plan 1QFY3/14 1QFY3/13 YoY (full-year) 1QFY3/14 1QFY3/13 YoY (full-year) 1QFY3/14 1QFY3/13 YoY (full-year) Net sales 2,175 1,883 +15.5% 8,675 4,997 4,436 +12.6% 23
Slide 18: Orders received by area; sales representatives and efficiency
Ⅳ-8 Orders received by area （￥billions） 60% 50 40% 40 43.4 Daito’s 20% Nationwide Ave. 30 +0.3% -17.3% -7.7% -8.2% △13.8% -13.1% 0% -19.8% -2.4% （-18.7%） -22.5% 20 23.3 -20% (32.1) -45.6% 16.9 17.0 10 -40% 10.6 9.7 3.5 5.0 5.5 0 -60% ai n) o ku i ku tu yu u nk id ok k gio s ho iko us To Ki ka ine ug
Slide 19: Orders comparison and channels of orders received
Ⅳ-10 1Q FY3/13 Orders Comparison with 1Q FY3/12Q ¥20.6bn (Decrease) （￥billions) ①Number of orders (projects) △￥19.5bn 156.6 （2,226 → 1,986 projects） 150 △￥20.6bn ¥136.0bn. Decrease ②Per project price rise ＋￥12.9bn （avg. ￥75.58mn→ ￥81.37mn) ③ Cancellation △￥14.1bn 100 （12.9% → 21.6%） ④ Building & rep
Slide 20: Orders by repeat customers; construction starts and Daito's share
Ⅳ-12 Orders received by repeat （￥billions） 80.3 ¥81.4bn 80 74.1 60 49.7% 51.9% 49.2% 40 20 0 1QFY3/12 1QFY3/13 1QFY3/14 Orders recieced by repeaters Repeate ratio Number of orders received by repeat from our existing customers ※ Repearte ratio ＝ Total number of orders received 39 Ⅳ-13 Number of cons
Slide 21: Construction starts by area; rent basis occupancy
Ⅳ-14 Number of construction starts by area & Daito’s share Housing starts :Units Market share 2,500 46.3% 50% 2,355 35.9% 40% 2,000 30.8% 29.3% 30% Daito’s 19.8% 10.8% Nationwide 1,500 11.1% (8.2%) 1,476 12.1% 20% Avg. 15.7% 1,000 11.4% 10% (1,617) 917 964 0% 500 733 729 636 -10% 330 422 0 -20% i ku
Slide 22: Occupancy rate by area; units under management
Ⅳ-16 Occupancy rate by area (Residential use : As of June end) YoY △0.3p △0.2p △0.2p +0.1p +0.6p △0.3p △0.7p +0.5p △0.5p 100% 95.4% 98.4% 96.0% 94.9% 95.0% 95.8% 96.6% 96.3% 96.3% 98.6% 96.2% 96.1% 97.3% 95.8% 96.8% Daito’s 95.7% 94.8% 94.4% nationwide Ave. 95.9% 50% 0% i i ido ku n to es tu ka nk o
Slide 23: Customer's financing channel
Ⅳ-18 Customer’s financing channel Shares of financial institutions （Construction starts basis） 60% Agiricultual 40% Cooperativ Others; Japan e; 9.9% 1.6% Housig Finance Agency; 20% 4.8% Shinkin banks; 13.1% Reginal 0% banks; 3/11 3/12 3/13 6/13 56.3% Regional banks City banks; City banks 14.3% Shink
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