Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — 1H FY3/14 Earnings Presentation
28 slides from Daito Trust Construction's earnings presentation, November 2013
Slide 1: 2Q Financial Highlights, Year ending March 31, 2014
2Q Financial Highlights, Year ending March 31, 2014 Contents Ⅰ． 2Q Financial Results・・・・・・・・・・・・・ 3 Ⅱ．Orders received & Counter measures for 2H ・ 11 Ⅲ． Occupancy rate & Counter measures for 2H・ 18 Ⅳ． Financial Forecasts ・・・・・・・・・・・・・ 25 Ⅴ． Topics ・・・・・・・・・・・・・・・・・・・・ 31 Ⅵ． Appendix・・・・・・・・・・・・・・・・・・
Slide 2: 2Q Financial Results: Income summary
Ⅰ. 2Q Financial Results Ⅰ-1 Income summary We achieved historical-high both in sales and incomes Net sales Operating income （￥billions） （￥billions） ¥607.1bn ¥ 48.7bn （+11.1% YoY） 60 546.5 （+30.9% YoY） 600 515.9 39.5 37.2 40 400 200 Planned 20 Planned ¥584.7bn ¥38.0bn 0 0 1HFY3/12 1HFY3/13 1HFY3/14 1
Slide 3: Income summary: factors of increased sales and income; Construction segment
Ⅰ-2 Income summary②－Factors of increased sales and income＜to the original plan＞ ■The reason why operating income exceeded the original plan（+10.7bn） Gross profit Front-load of the construction plan of construction ・Increase of sales of construction +7.0bn ＜+6.3billion＞ （・Decline of gross profit marg
Slide 4: Income summary by segment (Real estate); SG&A expenses
Ⅰ-4 Income summary by segment （Real estate） （¥billions） 1H FY3/13 1H FY3/14 （YoY） Net sales 309.7 332.2 （+7.2%） Gross profit 17.5 21.8 （+24.0%） Gross profit 5.7% 6.6% ［+0.9ｐ］ margin [ ]：Difference from same period in previous year （￥billions ） （￥billions ） 350 309.7 ¥332.2bn 25 ￥21.8bn 288.7 300 20
Slide 5: Financial conditions; Cash flows
Ⅰ-6 Financial conditions End of 1H FY 3/14 End of FY 3/13 （￥billions） Current 214.4 Current liabilities 213.1 liabilities （+1.2） Current 447.8 Current 435.7 assets （+12.1） assets Noncurrent 210.8 Noncurrent liabilities liabilities 217.9 （△7.1） Total 425.3 Total liabilities liabilities 431.1 （△5.8） N
Slide 6: Orders received & backlog
Ⅱ. Orders received & Counter measures for 2H Ⅱ-1 Orders received & backlog (Semi-annual comparison) ◇ Orders received ¥ 315.3bn（△6.0% YoY） ◇Orders received backlog ¥ 773.3bn（+11.3% YoY） （+5.8% compared with end of FY3/13） Orders Received Orders backlog （￥billions） （￥billions） 335.1 773.3 315.2 319.7
Slide 7: Analysis of orders received
Ⅱ-2 Analysis of orders received ◇ Medium-rise rate 18.7%（YoY + 2.9p） ◇ Rebuilding rate 29.6%（YoY△1.8p） Medium-rise rate※1 Rebuilding rate※2 40% 31.4% 29.1% 29.4% 29.7% 29.6% 30% 30% Total rebuilding rate 17.6% 18.7% 20% 15.8% 20% 14.6% 14.7% Rebuilding ratio, in which orders from Daito’s existing cu
Slide 8: Reinforcement of 2H FY3/14 operation: sales forces and inheritance approach
Ⅱ-4 Reinforcement of 2H 3/14 operation① １．Reinforcement of sales forces Plan for end of FY3/14 3,300（+98 to 1H 3/14） Orders received per Sales Rep. rep.(\mn/month) 3,500 3,222 3,261 3,204 3,202 3,300 25 3,151 3,000 20 2,500 16.90 17.23 16.76 15 2,000 16.18 16.66 1,500 10 1,000 5 500 0 0 FY 9/11 3/12
Slide 9: Reinforcement of sales for Tokyo Metropolitan area
Ⅱ-6 Reinforcement of 2H 3/14 operation③ ３．Reinforcement of sales for Tokyo Metropolitan area ●Reinforcement of proposal ability ・Collaboration with architect offices (FY3/13: 18 FY9/13: 33 FY3/14Plan: 40offices) ・Using building models or dioramas ●Building model ・Showrooms of land owners’ own homes
Slide 10: Tenancy agreements
Ⅲ-1 Tenancy agreements ◇Tenancy agreements 110,516（111.0% YoY） Residential Use Commercial Use Units YoY Units YoY 108,594 200% 200% 100,000 95,715 97,490 3,000 2,449 150% 2,500 150% 80,000 2,078 107.1% 111.4% 2,000 1,922 101.9% 102.6% 60,000 100% 84.9% 92.5% 100% 1,500 40,000 1,000 50% 50% 20,000 50
Slide 11: Rent basis occupancy rate; strategy for more responses
Ⅲ-3 Rent basis occupancy rate Residential Use 96.0%（YoY△0.1p） Commercial Use 96.1%（YoY＋1.1p） Residential Use Commercial Use Occupancy Occupancy rate rate 100% 100% 96.0% 96.1% 96.0% 95.0% 96.1% 93.3% 90% 90% 80% 80% 70% 70% Sep. end 2011 Sep. end 2012 Sep. end 2013 Sep. end 2011 Sep. end 2012 Sep. e
Slide 12: Strategy for improving service value
Ⅲ-5 Strategy for improving service value (contribution to tenants’ convenience)① Contribution to tenants’ convenience ①「No deposit ＆ Fixed cleaning cost plan」 （Since April 2013） ●Plan to reduce initial costs of tenancy agreement Reputation Fixed cleaning costs by type ※60% of tenants, for Apr-Sep of
Slide 13: Financial Forecasts: no change in FY3/14 plan
Ⅳ. Financial Forecasts Ⅳ-1 No change in FY3/14 original plan We maintain current original plan for FY3/14 Net sales Operating Income （￥billions） ￥1,251.0bn （￥billions） ￥88.0bn 1,300 （+8.6% YoY） 100 （+6.8% YoY） 81.9 82.4 80 1,152.4 1,087.1 Progress 60 ¥48.7bn Progress 1,100 ¥607.1bn of 1H of 1H 40 55
Slide 14: Plan of completed construction; orders received plan
Ⅳ-2 The plan of completed construction ＜Plan of completed construction＞ ◇Plan for FY3/14 ¥542.5bn（+10.8% YoY） Sales of Gross construction profit margin (\billions) 600.0 ¥542.5bn 60% ¥489.5bn 500.0 ¥468.6bn 50% 37.4% 400.0 35.2% 33.0～33.5% 40% 300.0 ¥258.1bn 30% ¥213.8bn ¥221.8bn 200.0 20% Progress
Slide 15: Tenancy agreement plan; occupancy rate forecast
Ⅳ-4 Tenancy agreement plan ＜Plan of tenancy agreement＞ ◇Plan for FY3/14 235,600（+7.1% YoY） 250,000 235,600 235,600 214,357 220,059 220,059 214,357 200,000 150,000 110,516 99,568 98,164 100,000 Progress Progress Progress of 1H of 1H 50,000 of 1H 45.2％ 46.9％ 45.8％ 0 FY3/12 FY3/13 FY3/14(plan) 29 Ⅳ-5 F
Slide 16: Topics: energy and eco efforts, photovoltaic rental houses
Ⅴ. Topics Ⅴ-1【Create energy and “eco” efforts at the rental house field】 Orders trend of rental apartment with photovoltaic panel & roof rental scheme Photovoltaic Placed 836 buildings equipments Power generation about 10.2 mega watt （contains 3000 general families’ electricity use） ●FY3/14 Plan ・Pl
Slide 17: Gaspal safety award; Leased Housing Competition
Ⅴ-2 Gaspal Co., Ltd. was appreciated whose action for Safety and Security Gaspal was elected as「Safety and Fine LP Gas Vendor」by Ministry of Economy, Trade and Industry ●Commendation ceremony（Oct. 24） ●Testimonial Thousand Gaspal Co., Ltd. rooms Supplying LP gas 19.2 200 ●Main business 16.2 Supplyin
Slide 18: Appendix; Cooperation for dormitory in earthquake-suffered areas
Ⅴ-4 Cooperation for constructing the dormitory, that was forwarded by volunteers in the earthquake-suffered areas （Onagawa-cho, Miyagi） The dormitory of educational facility “Onagawa Collaborative School ” was completed (August) ●Onagawa collaborative school（Management：Non-profit organization “Katar
Slide 19: Non-consolidated statement of income; major subsidiaries (Construction)
Ⅵ-1 Non-consolidated statement of income （￥millions） Full year forecast 1H FY3/14 1H FY3/13 YoY (FY3/14) Net sales 266,858 231,372 +15.3% 560,500 Construction 258,311 222,782 +15.9% 542,800 Real estate & others 8,547 8,589 △0.5% 17,700 Gross profit 84,529 76,832 +10.0% 180,000 Construction 85,471 78
Slide 20: Financial summaries of major subsidiaries (Real estate); sales breakdown
Ⅵ-3 Financial summaries of major subsidiaries （ Real estate ） （￥millions） Real estate business Daito Building Management Housecom House Leave Full year Full year Full year 1HFY3/14 1HFY3/13 YoY 1HFY3/14 1HFY3/13 YoY 1HFY3/14 1HFY3/13 YoY forecast forecast forecast Net sales 322,906 300,548 +7.4% 652
Slide 21: Financial summaries of major subsidiaries (Others)
Ⅵ-5 Financial summaries of major subsidiaries （Others - 1） （￥millions） Other business （Financial business） Daito Finance D.T.C Full year Full year 1H FY3/14 1HFY3/13 YoY forecast 1H FY3/14 1HFY3/13 YoY forecast Net sales 486 542 △10.3% 833 1,662 1,402 +18.6% 3,090 Gross profit 292 329 △11.2% 484 747
Slide 22: Income summary by segment (Others); number of employees
Ⅵ-7 Income summary by segment （Others） （¥billions） 1H FY3/13 1H FY3/14 （YoY） Net sales 14.9 16.7 （+12.6%） Gross profit 4.9 5.6 （+14.3%） Gross profit 33.0% 33.5% ［+0.5ｐ］ margin [ ]：Difference from same period in previous year （￥billions ） （￥billions ） 20 ¥16.7bn 6 ¥5.6bn 4.9 14.9 5 4.4 15 13.3 4 10 3
Slide 23: Orders received by area; orders comparison
Ⅵ-9 Orders received by area （￥billions） 120 （in which the Greater Tokyo） 60% 100 Daito’s 40% Nationwide 99.2 avg. △6.3% 80 20% +5.8% (74.4) -0.2% -0.6% 60 -7.8% -6.7% -7.5% -7.9% 0% 40 49.7 -20% -10.5% （-9.3%） 41.8 41.7 20 -29.5% -40% 22.6 24.6 7.9 14.4 12.8 0 -60% i o o u i su u yu u ka nk nt id ok
Slide 24: Channels of orders received; orders by repeaters
Ⅵ-11 Channels of orders received Number of repeat orders Number of orders from new customers Number of projects YoY Number of projects YoY Units % Units % 120.6% 119.2% 3,500 114.0% 117.1% 120% 3,500 108.7% 120% 106.8% 99.7% 98.9% 94.6% 3,000 3,000 100% 100% 87.8% 2,437 2,336 2,430 2,311 2,317 2,500
Slide 25: Number of construction starts and Daito's share
Ⅵ-13 Number of construction starts & Daito’s share (units) 150,000 145,520 30% 127,815 130,250 18.9% 100,000 15.8% 16.4% 20% 50,000 10% 0 0% FY 8/11 8/12 8/13 Rental housing starts(Apr.-Aug.) In which rental housing starts by Daito Trust(Apr.-Aug.) 49 Ⅵ-14 Number of construction starts by area & Dai
Slide 26: Rent basis occupancy rate; occupancy by area
Ⅵ-15 Rent basis occupancy rate Occupancy rate 100% 98% Residential use Commercial use 96% 94% 92% 90% 09/Mar. 09/Sep. 10/Mar. 10/Sep. 11/Mar. 11/Sep. 12/Mar. 12/Sep. 13/Mar. 13/Sep Occupancy rate 09/Sep. 10/Sep. 11/Sep. 12/Sep. 13/Sep. YoY Residential 93.8% 94.5% 96.0% 96.1% 96.0% △0.1p use(%) Comme
Slide 27: Units under management and rent; customers' financing channel
Ⅵ-17 Number of units under management & aggregate amount of rent Residential use Commercial use （thousand （thousand （￥billions） （￥billions） units） units) 800 747 775 60.0 500 10.0 694 42.9 45.4 400 8.0 600 39.7 45.0 6.5 6.4 6.4 300 6.0 400 30.0 200 4.0 200 15.0 100 2.0 38.4 37.9 37.7 0 0.0 0 0.0 FY
Slide 28: Daito Trust Construction contact and disclaimer
55 １．Disclaimer of warranties for the contents Daito pays careful attention about the information carried on this homepage. However, Daito can not offer the guarantee about the accuracy, reliability, safety, etc. Please recognize the information about future forecast that Daito may offer is predicti
Daito Trust Construction — 1H FY3/14 Earnings Presentation on 6ix