Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q1 FY2018 Earnings Presentation
32 slides from Tokyu Fudosan's earnings presentation, August 2018
Slide 1: Financial Highlights FY2018 First Quarter
Financial Highlights FY2018 First Quarter (First Three Months) Ended June 30, 2018 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: FY2018 Q1 Operating Results
FY2018 Q1 (First Three Months) Operating Results Both revenue and profit decreased due to a fall in the number of condominiums, despite solid performances in individual segments. Q1 First Three Months Full-year (ended June 30) (ended March-31) Compared to the same period （\ billion） Progress last ye
Slide 4: FY2018 Q1 Segment performance
FY2018 Q1 (First Three Months) Segment performance Progress was made in line with the full-year forecast, although the rate of progress was low in a number of segments. Q1 First Three Months Full-year (ended June 30) (ended March-31) Compared to the same period （\ billion） Progress FY2018 last year
Slide 5: Summary of balance sheets
Summary of balance sheets Assets and liabilities increased, due mainly to an increase in Real estate for sale. FY2017 FY2018 （\ billion） As of Mar-31, As of June 30, Compared to the end of the previous fiscal year Comparison 2018 2018 Cash and deposits 62.8 77.7 14.9 □Real estate for sale Real estat
Slide 6: Urban Development(1) FY2018 Q1
Urban Development(1) FY2018 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2018: Decreases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 55.1 54.7 (0.4) 23.4% Leasing (Office build
Slide 7: Urban Development(2) Vacancy Rate and Rent
Urban Development(2)Vacancy Rate and Rent As of June 30, 2018 Vacancy rate 0.5% (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 ¥25,000 26,090 24,510 24,410 23,600 23,850 23,770 24,930 23,270 25,050 22
Slide 8: Urban Development(3) Major projects Greater Shibuya Area
Urban Development(3)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
Slide 9: Urban Development(4) Major projects
Urban Development(4)Major projects Floor space ： thousand ㎡ Higashi Ikebukuro Osakashi Naniwaku Takeshiba District Kudanminami Chayamachi B-2 Block Shibuya Nampeidai Cinema Complex motomachi Hotel Development Plan ** 1-chome Project ** Urban Redevelopment Project ** Project** Project ** Chiyoda-ku T
Slide 10: 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. Hokkaido Projects acquired solar power plant：2PJ wind power plant：2PJ Properties in operation: 11 Projects under development
Slide 11: Residential(1) FY2018 Q1
Residential(1) FY2018 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2018: Decreases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 27.9 13.1 (14.8) 11.3% Condominiums 24.7 6.5 (18.
Slide 12: Residential(2) Change in the indexes for condominium sales
Residential(2)Change in the indexes for condominium sales For the fiscal year ending March 31, 2019, high-end properties will increase, although the number of units estimated will decrease. FY FY2016 FY2017 FY2018 Forecast FY2019 Forecast No. of units sold Total 1,560units Total 1,627units Total 1,2
Slide 13: Property Management(1) FY2018 Q1
Property Management(1) FY2018 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2018: Increases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 33.6 37.7 4.0 21.6% Condominium 23.
Slide 14: 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 301,841
Slide 15: Real Estate Agents(1) FY2018 Q1
Real Estate Agents(1) FY2018 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2018: Increases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 18.4 21.3 2.8 19.7% Real-estate sale
Slide 16: Real Estate Agents(2) Performance indicators
Real Estate Agents(2)Performance indicators in sales agency operations Revenue increased due to solid performances in the retail business and wholesale business. FY2018 Q1 Highlights Retail Wholesale Total No. of transactions 5,510 222 5,732 □Retail (Result) ・Revenue increased due to growth both in
Slide 17: Wellness(1) FY2018 Q1
Wellness(1) FY2018 Q1(First Three Months) Q1: Increases in both revenue and profit FY2018: Increases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 21.2 23.2 2.1 18.4% Operation of resort facilities*
Slide 18: 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 June 2018 Tok
Slide 19: Tokyu Hands FY2018 Q1
Tokyu Hands FY2018 Q1(First Three Months) Q1: Increases in both revenue and profit FY2018: Increases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 22.9 23.0 0.1 23.3% Operating profit 0.0 0.3 0.2 49.
Slide 20: Innovation Business(1) FY2018 Q1
Innovation Business(1) FY2018 Q1(First Three Months) Q1: Decrease in revenue and Increase in profit FY2018: Increases in both revenue and profit First Quarter FY2017 FY2018 Comparison Progress First Three Months (\ billion) Q1(Apr-Jun) Q1(Apr-Jun) Operating revenue 9.5 7.0 (2.5) 14.4% Renovation / c
Slide 21: Innovation Business(2) Overseas operations
Innovation Business(2)Overseas operations Business expansion mainly in Indonesia and America 〈Indonesia〉 〈America〉 BRANZ BSD Puri Botanical project 425 Park Avenue Condominiums, Total number of units: Condominium, Total number of units: about 3,000 units scheduled about 600 units scheduled To be com
Slide 22: Reference
Reference 21 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 23: Reference① Progress in the Medium-term Management Plan
Reference① Progress in the Medium-term Management Plan (Operating profit/Net profit*) Operating Profit Net income* Medium-term Management Plan Residential 2017-2020 120 Real-Estate Agents Innovation business ¥billion Tokyu Hands 93.0 Wellness 100 Property Management 8.5 Urban Development 77.5 80.0 E
Slide 24: Reference② Trends in equity and interest-bearing debt
Reference② Trends in equity and interest-bearing debt Rating Institution: Japan Credit Rating Agency, Ltd. Long-term：A- (Positive) Short-term：J-1 Equity ¥billion Interest-bearing Debt 1,400 Debt Equity ratiio 15.0× Debt/EBITDA ratio 12.8 1,200 12.7 11.7 11.7 11.2 11.4 12.0× 1,000 EBITDA multiple 1,3
Slide 25: Reference③ Return to Shareholders
Reference③ Return to Shareholders Annual dividend for the fiscal year ending March 31, 2019, will be raised to 15.5 yen, representing the sixth consecutive increase. 16Yen Dividend*（Year-end） 14Yen Dividend*（Interim） 12Yen 8.0 7.5 10Yen 6.5 6.5 8Yen 5.0 6Yen 4.5 3.5 3.5 4Yen 7.5 6.5 7.0 5.0 5.5 2Yen
Slide 26: Reference④ Market value appraisal for leased properties
Reference④ Market value appraisal for leased properties ＊As of Mar-31, 2018 On the back of a brisk real estate market, unrealized profit of leased properties increased. FY2016 FY2017 （\ billion） Comparison Remarks Mar-2017 Mar-2018 ■Market value at the end of the fiscal year is calculated by our com
Slide 27: Reference⑤ ESG management
Reference⑤ ESG management ESG management to realize sustainable growth and the enhancement of corporate value Environment Corporate governance 〈FY2020 KPI〉 Selected as global ESG index 〈FY2020 KPI〉 Rate of attendance at the board of CO2 emissions：▲25% reduction directors' meeting ：100％ CASBEE/DBJ en
Slide 28: Reference⑥ Total floor area and AUM transition
Reference⑥ Transition in total floor area and AUM transition (As of Mar-31, 2018) 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 988.6 1,000 Commercial facilities API* Office building CRR** 1,548 1,580 Private REITs, etc. 787.3 1,458 800 355.4 1,500 1,438 644.1 192.9 600
Slide 29: Reference⑦ Major office buildings
Reference⑦ Major office buildings(Urban Development segment) As of the end of March 2018, the Company holds 60 buildings, located mainly in four wards in central Tokyo. No. of Total floor notes Area Major properties[Building] Year built buildings space * Shibuya Center Place 1983 7 Shibuya Dogenzaka
Slide 30: Reference⑧ Major commercial facilities
Reference⑧ Major commercial facilities(Urban Development segment） As of the end of March 2018, the Company operates 23 locations in the Tokyo area and 8 locations in Kansai and other regions. No. of Major properties Total floor Area Year built notes facilities [Commercial facilities] space * Tokyu P
Slide 31: Reference⑨ Major facilities (Wellness business)
Reference⑨ Major facilities (Wellness business) ＊As of Mar-31, 2018 Manage diverse resort facilities throughout the country Number of Number of facilities rooms Name of facilities Teteshina Ito Tateshina Resort VIALA annex Arima Rokusai Katsuura Hakone Myojindai Hakone Koshien Atami Izusan 24 2,578
Slide 32: Tokyu Fudosan Holdings
& TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — Q1 FY2018 Earnings Presentation on 6ix