Daito Trust Construction Co., Ltd. · TSE:1878

Daito Trust Construction — 2Q FY3/2018 Earnings Presentation

31 slides from Daito Trust Construction's earnings presentation, November 2017

  1. Slide 1: Report on Settlement of 2Q of FY ending March 2018

    Report on Settlement of 2Q of FY ending in March 31, 201８ 2Q Financial Highlights, Year ending in March 31, 2018 1 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Contents Ⅰ．Result in 2Q of FY ending in March 2018・・・ 3 Ⅱ．Key Figures・・・・・・・・・・・・・・・・・ 14 Ⅲ．Financial Forecast ・・・・・・・・・・・・・ 27 Ⅳ．Sharehold

  2. Slide 2: Profit & Loss highlights①

    Ⅰ. Results in 2Q of FY ending in March 201８ 3 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. PL Profit & Loss highlights① Consolidated PL Sales and each profit set a new record for 5 consecutive fiscal years. ：Y o Y ■Net Sales ■Operating income +5.8% +10.2% （ bn） Revised plan （ bn） Revised plan ¥782.

  3. Slide 3: Profit & Loss highlights②

    PL Profit & Loss highlights② －Factors of fluctuations in operating income＜against the original plan＞ Consolidated PL The reasons why operating income exceeded the original plan (+ 14.7bn） Details Reasons Gross profit of completed ・Increase in construction completed, construction contracts improvemen

  4. Slide 4: Profit & Loss by segment (Construction business)

    PL Profit & Loss by segment (Construction business) Construction segment ② Major breakdown of the variance (＋0.5p) 2016/9 2017/9 （YoY） ① Labor cost ±0.0p Gross profit ② Material cost ±0.0p margin 31.7% 32.2% （+0.5ｐ） ③ Exchange △0.1p Operating ④ Recognition of deferred income margin 17.9% 18.6% （+0.7

  5. Slide 5: Profit & Loss by segment (Real estate business)

    Profit & Loss by segment PL (Real estate business) Real estate segment ② 2016/9 2017/9 （YoY） Gross profit margin 9.2% 9.4% （+0.2ｐ） Operating income margin 4.5% 4.7% [ ]：前年同期との差 （+0.2ｐ） ■Gross profit margin・Operating income margin 12% 9.2% 9.4% 8.3% 9% 6% 4.5% 4.7% 3.6% 3% 0% 15/9 16/9 17/9 Gross pro

  6. Slide 6: Transition of SG&A expenses and Balance Sheet highlights

    Transition of selling, general and administrative PL expenses SG&A Expenses （¥ bn） 2016/9 2017/9 （YoY） SG&A expenses 71.7 75.0 （+4.6%） SG&A expenses ratio to sales 9.7% 9.6% ［△0.1ｐ］ [ ]：Difference from same period in previous year ■SG&A expenses・SG&A expenses ratio to sales ( bn) 80 71.7 75.0 40% Ma

  7. Slide 7: Cash Flows highlights

    Financial Review Cash Flows highlights Consolidated CF Cash and cash equivalents at the 200.1 beginning of FY 18/3 Major breakdown items ・Net income before income tax （＋¥81.7bn） ・Payment of income tax, etc. （△¥33.0bn） Cash flows from 6.3 ・Payment of bonus （△¥20.3bn） operating activities ・Rent uncoll

  8. Slide 8: Transition of orders received and orders in hand

    Orders Transition of orders received and received orders in hand (Year on Year) Orders received & orders in hand ◆ Orders received ¥307.7bn（YoY △4.6%） ◆Orders in hand ¥867.0bn（YoY △2.6%） ●Orders received（full-year） ¥683.0bn（YoY +4.2%） Orders received Orders in hand Plan(full-year) （ bn） （ bn） ¥683.0

  9. Slide 9: Sales representatives and orders received per representative

    Items related to Transition of number of sales representatives and orders received amount of orders received per sales representative Efficiency in acceptance of order ◆Number of sales representatives 〈End of Sep.〉 3,355 （△28 YoY） ◆Amount of orders received per sales representative ¥15.40mn／Month （△

  10. Slide 10: Average price of orders received and cancellation ratio

    Items related to Transition of Average price of orders received and orders received Cancellation ratio Index② ◆ Average price of orders received ¥99.59mn （+¥5.05mn YoY） ◆Cancellation ratio 17.6% （+1.8p YoY） Average price of orders received ※1 Cancellation ratio ※2 （ mn） 30% ¥99.59mn 94.54 8,862万円 10

  11. Slide 11: Transition of number of tenant recruitment

    Items related to tenant recruitment Transition of number of tenant recruitment Number of tenant recruitment ◆Number of tenant recruitment 137,275（+5.5% YoY） ●Residential use 135,911（+5.5% YoY） ●Commercial use 1,364（△3.2% YoY） ◆Tenant recruitment planning (full-year) 298,000（+5.9% YoY） Residential us

  12. Slide 12: Number-based occupancy rate

    Items related to Transition of Number-based occupancy rate※ tenant recruitment (as of September 30, 2017) Occupancy rate② ◆Residential use units 96.4%（±0.0p YoY） ◆Commercial use 97.6%（ +0.1p YoY） Residential use Commercial use 100% 100% 95.9% 96.4% 96.4% 1,400 37,000 97.2% 97.5% 97.6% 1,200 36,608 9

  13. Slide 13: Efficiency of tenant recruitment and regional occupancy rate

    Items related to Transition of number of tenant recruitment tenant recruitment per representatives Efficiency of tenant recruitment Tenant recruitment/(person・month) Tenant sales representative（person） 20.0 18.6 20.7 2,500 16.7 16.5 Except former 15.0 rent 2,000 appraisal 1,469 section 1,209 1,500 1

  14. Slide 14: Profit & Loss Forecast

    Ⅲ. Financial Forecasts 27 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Financial forecasts Profit & Loss Forecast Consolidated PL There is no change from the forecast at the beginning of this FY ( ) ：Y o Y ■Net sales ■Operating income （ bn） （ bn） ¥1,585.0bn ¥124.0bn 1,800 1,411.6 1,497.1 （+5.9％） 14

  15. Slide 15: Plan of net sales and orders received

    Financial Plan of net sales of completed forecasts construction contract Net sales ◆Plan of net sales from completed construction ＜full-year＞ ¥652.0bn (+4.5% YoY) Net Salas ( bn） Gross profit margin 623.9 600 ¥652.0bn 55% 500 45% 400 309.2 322.7 300 35% 200 31.7% 31.7% 32.2% （Planned 25% 100 30.6%～）

  16. Slide 16: Strategy for receiving orders from new customers

    Construction Strategy for receiving orders from Business new customers Sales strategy① Divided ‘sales assistance’ and ‘support of existing Revised incentive system customer’ from sales representatives’ tasks Start trial in large branches at FY18/3 2H for acquiring new customers Whole sales activity

  17. Slide 17: Plan of tenant recruitment and occupancy rate

    Full-year Plan of tenant recruitment and Forecast occupancy rate Tenant recruitment and occupancy rate ◆Plan of tenant recruitment ＜full-year＞ 298,000(+5.9% YoY) ◆Plan of occupancy rate ＜as of Mar.2018＞ ●Residential use 96.9％ (±0.0% YoY) ●Commercial use 98.3％ (±0.0% YoY) Number of tenant recruitment

  18. Slide 18: Reinforce ability of tenant recruitment

    Tenant recruitment Multi-language service／sales strategy Reinforce ability of tenant recruitment ② Multi-language service increased traffic Powerfully promote TV ad Provide services in 5 languages (English, Chinese, Korean, Spanish and Portuguese) E-heya Net TV ad E-heya Cat series 120,000 106,162 A

  19. Slide 19: Shareholders return

    Shareholders Result of dividend payments and return acquisition of treasury stock Result & Plan Return to shareholders of FY 2017/3 Payout ratio Acquisition and cancellation of treasury stock 50.0% 30% Total Total ¥41.1bn Total ¥24.7bn（Upper limit） ※Cancellation on Mar. 31, 2018 (Plan) Return Ratio

  20. Slide 20: Topics: DK SELECT Security

    Topics 『DK SELECT Security』 Security brand New security service brand “DK SELECT Security” has released (on October 16th) DK SELECT Security developed by Daito Trust does not allow stranger to “approach” and ”enter”, and “guards your home firmly in emergency”. （Below is an example. Specifications, e

  21. Slide 21: Profit & Loss of each segment

    Ⅵ. Appendix 41 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Profit & Loss of each segment ＜FY18/3＞ 《 Construction business 》 （¥ mn） 16/9 17/9 YoY 18/3(plan) Y o Y(Plan) Net sales 309,293 322,701 +4.3% 652,000 +4.5% Gross profit 98,151 103,984 +5.9% 199,300 +0.8% (Gross profit margin) 31.7% 32.2% +0

  22. Slide 22: Non-consolidated Profit & Loss

    Non-consolidated Profit & Loss ＜FY18/3＞ （¥ mn） 16/9 17/9 YoY Plan（full-year） (Published Value difference) Net Sales 320,109 328,137 +2.5% 658,800 Construction 309,318 322,697 +4.3% 652,000 Real estate & Others 10,790 5,440 △49.6% 6,800 Gross profit 99,058 103,625 +4.6% 197,700 Construction 97,640 10

  23. Slide 23: Sales structure of real estate business

    Sales structure of real estate business＜FY18/3＞ （¥ mn） 15/9 16/9 17/9 Amount （Ratio） Amount （ratio） Amount （Ratio） YoY Whole-building leases※１ 349,659 (91.4%) 372,623 (91.3%) 394,153 (91.1%) +5.8% Building and repairs 15,817 (4.1%) 14,047 (3.4%) 14,502 (3.4%) +3.2% Brokerage of real estate 7,221 (1.

  24. Slide 24: Profit & Loss of major subsidiaries (Real estate-2)

    Profit & Loss of major subsidiaries (Real estate-2)＜FY18/3＞ （¥ mn） Real estate business House Leave Housecom 16/9 17/9 YoY Plan 16/9 17/9 YoY Plan (full-year) (full-year) Net sales 4,845 5,187 +7.1% 10,496 4,617 4,909 +6.3% 10,822 Gross profit 4,536 4,858 +7.1% 9,577 4,539 4,780 +5.3% 10,604 SG&A ex

  25. Slide 25: Profit & Loss of major subsidiaries (Other businesses-1)

    Profit & Loss of major subsidiaries （Other businesses-１）＜FY18/3＞ （¥ mn） Other businesses(Gas Supply Business・Care Business) ※ Consolidated financial statement of Gaspal Gaspal Group in this FY. Care Partner Plan Plan 16/9 17/9 YoY (full-year) 16/9 17/9 YoY (full-year) Net sales 10,738 10,664 △0.7% 2

  26. Slide 26: Transition of number of employees

    Transition of number of employees in each business section（major 3 companies） （person） （person） 5,000 14,000 4,000 12,000 3,000 2,000 10,000 1,000 0 8,000 2016/9 2017/9 2018/3 Plan Sales representatives in construction business Engineers Sales representatives in real estate business Total employees（

  27. Slide 27: Orders received from repeaters; construction starts

    Transition of orders received from repeater （¥ bn） 250 215.6 225.6 200 191.7 150 100 59.1% 61.3% 65.5% 50 0 15/9 16/9 17/9 Amount of orders received from repeater Composition ratio of repeat Number of orders received by repeat from repeater ※Composition ratio of repeat ＝ Total number of orders recei

  28. Slide 28: Construction starts by area; rent basis occupancy rate

    Number of construction starts by area & Daito’s share Number of Daito’s share construction starts Daito’s nationwide ave. 50% 8,000 15.5% 8,131 40% 29.6% 6,000 26.2% 25.4% 30% (5,940) 29.2% 18.8% 15.4% 20% 4,000 4,204 13.5% 10% 11.5% 3,784 (9.5%) 3,411 4.1% 0% 2,000 2,307 1,923 1,728 -10% 1,384 0 41

  29. Slide 29: Customer's financing channel

    Number of units under management & aggregate amount of rent Residential use Commercial use Achieved 1 million Managing units residential units under Rent Managing units Rent （thousands） （ bn） （thousands） （ bn） management 978 1,007 90 1,000 923 80 8 6.4 6.4 6.3 800 60.1 57.3 60 6 53.5 60 600 40 4 36.

  30. Slide 30: Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

    59 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 60 Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

  31. Slide 31: Disclaimer

    61 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. １. Disclaimer of warranties for the contents Daito pays careful attention about the information carried on this documents. However, Daito can not offer the guarantee about the accuracy, reliability, safety, etc. Please recognize the information about

Daito Trust Construction — 2Q FY3/2018 Earnings Presentation on 6ix