Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q1 FY2020 Earnings Presentation
48 slides from Tokyu Fudosan's earnings presentation, August 2020
Slide 1: Financial Highlights FY2020 First Quarter
Financial Highlights FY2020 First Quarter (First Three Months) Ended June 30, 2020 TOKYU FUDOSAN HOLDINGS CORPORATION Code︓3289
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, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantl
Slide 3: Contents
Contents • Overview of the FY2020 First Quarter (First Three Months) Ended June 30, 2020 ・・・・・ 3 • Reference ・・・・・ 27 2 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 4: Overview of the FY2020 First Quarter
Overview of the FY2020 First Quarter (First Three Months) Ended June 30, 2020 3 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 5: FY2020 Q1 Operating Results
FY2020 Q1 (First Three Months) Operating Results Declines in revenue and profit, reflecting considerable restriction of business activity in all segments due to the spread of the coronavirus. Q1 First Three Months Full-year (ended Jun-30) (ended Mar-31) Compared to the same period （\ billion） Progre
Slide 6: Effects of the Coronavirus in FY2020 Q1
Effects of the Coronavirus in FY2020 Q1 (First Three Months) Business was affected by the coronavirus mostly to the extent assumed in the earnings forecasts, primarily during the state of emergency. The Group recorded 6.6 billion yen in extraordinary loss on COVID-19 impact*. Segment Effect on busin
Slide 7: FY2020 Q1 Segment performance
FY2020 Q1 (First Three Months) Segment performance Year-on-year decline in profit in all segments. Deterioration in earnings due to the spread of the coronavirus was mostly as assumed at the beginning of the fiscal year. Q1 First Three Months Full-year (ended Jun-30) (ended Mar-31) Compared to the s
Slide 8: FY2020 Q1 Summary of balance sheets
FY2020 Q1 (First Three Months) Summary of balance sheets Increases in both assets and liabilities, mainly reflecting expansion of property and equipment, intangible assets and procurement of necessary capital ahead of schedule. FY2019 FY2020 FY2019 FY2020 （\ billion） （\ billion） As of Mar-31, As of
Slide 9: Urban Development(1) FY2020 Q1
Urban Development(1) FY2020 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2020: Decreases in both revenue and profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) period last year Operating revenue
Slide 10: Urban Development(2) Vacancy Rate and Rent
Urban Development(2) Vacancy Rate and Rent As of June 30, 2020 Average office rent 27,090 yen (Month/Tsubo) Vacancy rate 0.8% (Tenants actually moving in and out, including Office buildings and commercial facilities) 12% ¥30,000 (¥/Month/Tsubo) 29,220 Tsubo ≅ 3.3㎡ 27,730 27,090 26,610 26,790 10% ¥25
Slide 11: Urban Development(3) Major projects
Urban Development(3) Major projects Kudanminami 1-chome Project** West Shinsaibashi Asakusa 2-chome Tokyo PortCity Takeshiba Chiyoda-ku 2-chome Project** Chayamachi B-2 Block Place Office/Commercial Osaka Sapporo Susukino Ekimae Minato-ku Urban Redevelopment Taito-ku Floor space︓68 Hotel Complex Dev
Slide 12: 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 13: Urban Development(5) Tokyo PortCity Takeshiba
Urban Development(5) Major projects <Tokyo PortCity Takeshiba> Both office tower and residence tower were completed. Office tower will open in September. 9F-39F Office floor DIY LOUNGE Green Work Style 〜Feeling close to water and greenery at work〜 Residence tower Housing Floor space︓about 19 thousan
Slide 14: 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 June 30, 2020) Properties made decision, and Number of Projects in Operation> Properties in operation: 33 Investment
Slide 15: 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 June 30, 2020) Description of a project Properties in operation: 9 LOGI’Q Miyoshi Total floor area︓71 thousand ㎡ Projects under dev
Slide 16: Residential(1) FY2020 Q1
Residential(1) FY2020 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2020: Decreases in both revenue and profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months(\ billion) Q1(Apr-Jun) Q1(Apr-Jun) period last year Operating revenue 9.9 1
Slide 17: Residential(2) Trends in condominium sales indicators
Residential(2) Trends in condominium sales indicators The contract ratio was 57%. (As of June 30, 2020) Accounting year FY2018 FY2019 FY2020 Forecast No. of units sold Total 1,266units Total 1,680units Total 1,700units Contract ratio 50%→57% 32%→57%→73%→90％ 54%→66%→82%→90％ (Beginning-of-year→1Q→2Q→3
Slide 18: Property Management(1) FY2020 Q1
Property Management(1) FY2020 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2020: Increase in revenue and Decrease in profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) period last year Operating reven
Slide 19: Property Management(2) Stock of properties
Property Management(2) Stock of properties As of June 30, 2020 Condominiums and buildings under management increased to expand management stock. 〈Trend in stock of comprehensive condominium management and facility management in number of units〉 Comprehensive management Facility management 800,000 30
Slide 20: Real Estate Agents(1) FY2020 Q1
Real Estate Agents(1) FY2020 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) period last year Operating revenue 26.7
Slide 21: Real Estate Agents(2) Performance indicators in sales agent
Real Estate Agents(2) Performance indicators in sales agent Fewer transactions mainly due to store closures and shorter opening hours. FY2020 Q1 Highlights Retail Wholesale Total No. of transactions 4,925 151 5,076 □Retail ・Both the number of transactions and the average handling (Rate of change YoY
Slide 22: Wellness(1) FY2020 Q1
Wellness(1) FY2020 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2020: Increase in revenue and Decrease in profit First Quarter FY2019 FY2020 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 25.7 13.
Slide 23: Wellness(2) Major projects
Wellness(2) Major projects Integration of companies which operate resort facilities, hotels and other wellness facilities and relaunch of business under new name of Tokyu Resorts & Stays. Tokyu Stay Osaka-Hommachi Urban style hotel Opened in February 2020 Tokyu Stay Tokyu Stay Hida-Takayama Tokyu St
Slide 24: Tokyu Hands FY2020 Q1
Tokyu Hands FY2020 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months (\ billion) Q1(Apr-Jun) Q1(Apr-Jun) period last year Existing stores (58.8)%, due to
Slide 25: Innovation Business(1) FY2020 Q1
Innovation Business(1) FY2020 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit First Quarter FY2019 FY2020 Compared to the same Comparison Progress First Three Months (\ billion) Q1(Apr-Jun) Q1(Apr-Jun) period last year Operating revenue 9.
Slide 26: Innovation Business(2) Overseas operations
Innovation Business(2) Overseas operations 18 projects are in progress in the United States. ＊As of Mar-31, 2020 <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)
Slide 27: Development of Business to Address Social Issues
Development of Business to Address Social Issues The Group’s business in response to changes in workstyles and behavioral patterns. Smart City where people flow data and environmental data is analyzed to provide a comfortable environment and realize efficient building management Providing a data dis
Slide 28: Reference
Reference 27 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 29: 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 30: 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 31: 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 while considering
Slide 32: 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 33: 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 34: 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 35: 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 36: Summary of balance sheets
Summary of balance sheets ＊As of Mar-31, 2020 FY2019 FY2019 （\ billion） As of Mar-31, （\ billion） As of Mar-31, 2020 2020 Cash and deposits 97.6 Interest-bearing Debt 1,361.0 Real estate for sale 658.0 Deposits 260.5 Property and equipment, Trade payables etc. 106.5 1,192.7 Intangible assets Goodwil
Slide 37: 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 38: Distribution of Office Buildings
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 June 30, 2020) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 539thousand ㎡（84%） 49buildings 461thousand ㎡（72%） 27buildings K
Slide 39: Office market in Shibuya
Office market in Shibuya The vacancy rate in the Shibuya-ku rose, and that tends to be highly volatile. However, vacancy rates within the Group remain at a low level and the number of contract cancellation notices is also unchanged from the year-ago level. (see Page 9) Assumed Causes of High Volatil
Slide 40: Commercial facilities
Commercial facilities ＊As of Mar-31, 2020 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
Slide 41: Transition in total floor area and AUM transition
Transition in total floor area and AUM transition AUM expand steadily. 〈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. 1,484 1,490 1,200 1,458 1,438 1,427 1,500 715.5 988.6 1,000
Slide 42: Major office buildings (Tokyo Metropolitan area)
Major office buildings (Urban Development segment) As of the end of June 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 43: Major commercial facilities
Major commercial facilities (Urban Development segment） As of the end of June 2020, the Company operates 25 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 44: Major facilities (Wellness segment)
Major facilities (Wellness segment) Manage diverse facilities throughout the country. (As of June 30, 2020) 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 Karu
Slide 45: 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. Selected for inclusion in the FTSE 4good Index Series for eleventh consecutive year in July 2020 <Major initiatives> ・E (env
Slide 46: 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 TCFD’s recommendations> ・We are examining expected climate change risks and related business opportunities and are building a governa
Slide 47: 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 48: Tokyu Fudosan Holdings
& TOKYU FUDOSAN HOLDINGS
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