Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q1 FY2024 Earnings Presentation
59 slides from Tokyu Fudosan's earnings presentation, Aug 6, 2024
Slide 1: Financial Highlights FY2024 First Quarter
Securities Code: 3289 WE ARE GREEN Create Value for the Future Financial Highlights FY2024 First Quarter (First Three Months) Ended June 30, 2024 August 6, 2024 @ TOKYU FUDOSAN HOLDINGS
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 Group. Actual performance may significantly
Slide 3: Contents
| Contents | * Progress of Medium-Term Management Plan and eee ee 5 Initiatives to Enhance Corporate Value * Summary of the FY2024 First Quarter cee ee 44 (First Three Months) Ended June 30, 2024 * Segment Overview p00 90 Ay * Initiatives for Co-Creation with Partners and ee eee AT Utilization of Re
Slide 4: Highlights
| Highlights | Operating profit: 31.6 billion yen (YoY (2.9) billion yen) Net profit*: 18.9 billion yen (YoY (6.4) billion yen) Financial results for the Q1 under Decreased year on year due to lower gain on sales of assets, despite strong review condominium, real-estate sales agent, and hotel busine
Slide 5: Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value
Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value © TOKYU FUDOSAN HOLDINGS CORPORATION 5, I
Slide 6: Progress of Medium-Term Management Plan (Financial Targets)
| Progress of Medium-Term Management Plan (Financial Targets) | rreelte Achieved all financial targets for the medium-term management plan ending FY2025 two years ahead of schedule. io irom! ROE 7.3% 8.9% Pp 9.6% 9.0% 9% ROA 4.1% 4.1% > 4.2% 4.2% 4% EPS ¥67.21 ¥90.10 Pp ¥96.40 ¥98.27 ¥90 or more Ope
Slide 7: Financial targets and profit trajectory
2.5x ¥150.0 billion 2.3x 2.2x 2.2x or less or more 2.1x 2.1x 2.0x or less ¥130.0 billion ¥120.2 billion ¥120.0 billion ¥110.4 billion 10% or more 9.6％ 9.0％ 9％ ¥83.8 billion ¥75.0 billion 7.3％ or more ¥68.5 billion ¥70.0 billion ¥65.0 billion ¥56.5 billion 5.7％ ¥48.2 billion 5％ or more 4.2％ 4.2％ ¥35.
Slide 8: ROE, EPS and dividends
[Yen] 9.6% 9.0% 100 10% EPS (yen) ROE（%） 7.7% 7.3% 98.27 80 7.1% 7.3% 7.3% 96.40 8% 6.6% 6.7% 5.7% 60 67.21 6% 57.80 56.84 51.77 53.70 3.7% 40 47.18 48.84 4% 41.45 20 30.13 2% 0 0% 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 Forecast [Yen] 40 60% Dividend（Year-end） 53.1% 35 32.0 Dividend（
Slide 9: Quantitative evaluation of business portfolio
Asset-utilizing business Human capital-utilizing business Prior to March 2022 ~ March 2023 March 2024 Quantitative evaluation Infrastructure and industry Investment management Offices Offices Commercial facilities Residential Hotels Real estate brokerage Leisure Rental housing service, etc. Commerci
Slide 10: Progress in business portfolio management
| Progress in business portfolio management@) (from FY2023) | For the businesses identified for “revise and advance”, continue to drive transformation and growth, focusing on improving efficiency. While continuing to monitor the impact of decreased tenant interest in Gammercralfacilitice opening new
Slide 11: ► • • • • • • • • • • • • •
► • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 12: Share price, BPS and ROE
1,300yen 10.0% Share price BPS FY2023: 9.6% ROE Forecast ROE 1,200yen FY2024 (Forecast) 9.0% 9.0% 1,100yen 8.0% 1,000yen FY2022: 7.3% Share price on July 31: 1,095yen BPS： 1,079.21yen 900yen 7.0% FY2019: 6.7% 800yen FY2021: 5.7% 6.0% 700yen 600yen 5.0% 500yen 4.0% 400yen FY2020: 3.7% 300yen 3.0% 201
Slide 13: PBR = ROE x PER
PBR↑ ＝ ROE↑ × PER↑ 5.7% 7.3% 9.6% 9.0% 10% or more • • • • • • • • × ¥83.8 ¥110.4 ¥120.2 ¥130.0 ¥150.0 billion billion billion billion billion or more ¥35.1 ¥48.2 ¥68.5 ¥70.0 ¥75.0 billion billion billion billion billion or more •••
Slide 14: Summary of the FY2024 First Quarter
Summary of the FY2024 First Quarter (First Three Months) Ended June 30, 2024 © TOKYU FUDOSAN HOLDINGS CORPORATION
Slide 15: FY2024 Major business environment
| FY2024 Major business environment | Being under uncertain conditions, pay close attention to changes in the business environment but assume that there will be no significant environmental changes in the near future. The Shibuya area, where the Company holds numerous properties, continues to perfor
Slide 16: Q1 results summary
FY2023 FY2024 FY2024 (¥ billion) Comparison FY2023 Progress note Q1 Q1 Forecast** Operating Revenue 253.1 267.2 14.1 1,103.0 1,130.0 23.6% Operating profit 34.5 31.6 (2.9) 120.2 130.0 24.3% □Extraordinary income Non-operating income 1.4 1.1 (0.3) 4.1 － － FY2023: Profit on sales of affiliated Non-ope
Slide 17: Results by segment
FY2023 FY2024 FY2024 (¥ billion) Comparison FY2023 Progress Q1 Q1 Forecast Operating revenue 253.1 267.2 14.1 1,103.0 1,130.0 23.6% Urban Development 87.2 78.0 (9.2) 365.4 371.0 21.0% Strategic Investment 24.6 25.1 0.5 108.0 103.7 24.2% Property Management & Operation 76.7 80.2 3.4 371.5 356.0 22.5%
Slide 18: Operating profit change by segment
• • • • • • • Real Estate Elimination Urban Agents (0.4) Development Property +3.1 (2.8) 34.5 Strategic Management & Operation Investment +2.8 31.6 (5.6) 24/3 25/3 Q1 Q1
Slide 19: Balance sheet
FY2023 FY2024 FY2023 FY2024 (¥ billion) Comparison (¥ billion) Comparison Mar 31, 2024 Jun 30, 2024 Mar 31, 2024 Jun 30, 2024 Cash and deposits 246.6 151.7 (94.9) Interest-bearing Debt 1,590.1 1,583.0 (7.1) Real estate for sale* 909.8 923.5 13.7 Deposits 315.8 285.2 (30.6) Property and equipment, 1,
Slide 20: Business segments
•• Urban Development Property Management & Operation •• Strategic Investment Real Estate Agents ·······•
Slide 21: Carrying value and market value of properties
FY2021 FY2022 ¥ billion Comparison Remarks March 2022 March 2023 Carrying Value 732.6 749.5 16.9 □Market value at the end of the fiscal year is calculated by our company mainly according to the "standards for appraisal of real estate". Market value 1,032.4 1,158.0 125.6 □The properties to be develop
Slide 22: Cash flows and capital investment
(¥ billion) FY2021 FY2022 Main factors for changes Net cash provided by (used in) +70.2 billion yen of profit before income taxes +44.5 billion yen of depreciation 94.7 156.5 (29.8) billion yen for deposits received for consignment sales operating activities (24.5) billion yen for consignment sales
Slide 23: FY2024 Analysis of segment performance forecast
| FY2024 Analysis of segment performance forecast | Plan to increase profit by 9.8 billion yen YoY due to improved margins for condominiums and increased earnings from hotels and Real Estate Agents business. -Infrastructure & Industry business (7.3) billion yen (Decrease in sales of logistics, etc.)
Slide 24: Gain on asset sales and real estate for sale
Real Estate Agents Office/Commercial, etc. Rental housing/Land Property Management&Operation Overseas [¥ billion] Infrastructure&Industry Wellness Residencial Other Infrastructure&Industry 60 Rental housing Office/Commercial 50.9 50.0 [¥ billion] 1,000 909.8 50 1.9 44.4 3.0 90.0 792.3 3.9 800 754.1
Slide 25: Equity, interest-bearing debt and D/E ratio
Equity Interest-bearing Debt D/E ratio Debt/EBITDA ratio Revised D/E ratio [¥billion] 1,650.0 20.0× • 1,590.1 1,600 • 1,478.8 1,482.9 1,421.7 1,400 1,361.0 1,289.8 16.0× 14.5 1,210.4 1,200 1,137.9 11.7 11.6 11.4 12.0× 1,000 11.2 10.7 9.3 9.4 9.4 800 684.6 750.1 631.8 8.0× 583.3 596.7 600 561.4 442.3
Slide 26: Segment Overview
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Slide 27: Urban Development
FY2023 FY2024 (¥ billion) Comparison note Q1 Q1 [¥ billion] Operating revenue 87.2 78.0 (9.2) 280.0 229.0 Urban Development 51.2 34.4 (16.8) Newly operated +3.1 , Lost revenue for properties sold 240.0 (0.1) , Existing facilities +0.2, Sales of assets (19.3) 200.0 177.2 (the sale) 26.7 7.4 (19.3) 12
Slide 28: Office rent and vacancy rate
Rent (¥/Month/Tsubo) Tsubo ≅ 3.3㎡ Vacancy Rate 12% ¥32,000 30,240 29,560 29,750 28,760 28,740 28,180 28,220 28,560 ¥30,000 26,790 10% ¥28,000 24,410 24,500 23,270 23,770 24,210 ¥26,000 8% 22,190 ¥24,000 ¥22,000 6% •• ....]••••r...7.. ··1·• ・j' ••··....,... ··• •: 5.15% ¥20,000 •·.. 5.7% 4.8% ¥18,000
Slide 29: Urban Development Major projects
| Urban Development ® Major projects (Offices/Commercial facilities, etc.) | Other projects Chayamachi B-2/B-3 Blocks Redevelopment Project Osaka Commercial/office/accommod ation ete Total floor space: 31 Scheduled for completion in FY2028 Project for Using Land at Tokyo Institute of Technology's Ta
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Slide 32: I I Prese~靡嘉靡terials
I I Prese~靡嘉靡terials • • • • • • • • • • •
Slide 33: Tokyu Plaza Harajuku Harakado
Facility name Tokyu Plaza Harajuku “Harakado” Completion August 31, 2023 Opening April 17, 2024 Site area Approx. 3,085㎡ Total floor space Approx. 19,894㎡ Joint operator Tokyo Metro Co., Ltd. Operator Tokyu Land Corporation
Slide 34: Residential: condominium sales
Accounting year FY2022 FY2023 FY2024 Forecast No. of units sold 1,369 1,280 996 (Q1 : 280) Average price per unit (million yen) 70 70 85 (Q1 : 99 million yen/unit) Contract obtaining rate 58%→79%→90%→102% 82%→87％→94%→102% 74%→84% (Beginning-of-year Q1 Q2 Q3) Year-end inventory of completed units* 20
Slide 35: Condominium properties in planning
Units: Number of units indicates the figure prior to equity conversion. Properties in planning stage include non-condominium units.
Slide 36: Strategic Investment
FY2023 FY2024 (¥ billion) Comparison note [¥ billion] Q1 Q1 100.0 88.5 Operating revenue 24.6 25.1 0.5 79.1 Infrastructure & Industry 21.4 22.2 0.8 Sales of assets (3.1), Renewable energy in operation+0.8[7.3], 80.0 ReENE +3.3[3.5] (the sale) 13.9 10.8 (3.1) 33.2 60.0 58.6 Asset management 2.4 2.0 (
Slide 37: Renewable energy facilities
Solar Power Plant In operation 70 (1,039.3MW) Under development 23 (72.5MW) Rooftop solar project, 1 ( 101.8MW) etc 1,111 properties nationwide Wind Power Plant In operation 7 (247.0MW) Under development 7 (192.2MW) Biomass power plant In operation 2 ( 56.5MW) 北海道 Under development 3 ( 54.0MW) Other
Slide 38: ReENE investment and gross profit
ReENE » ~ >· [Investment: ¥ billion] [Gross profit: ¥ billion] Secured facility investment amount (including before 399.1 400 depreciation and under development) 14 Facilities in operation Investment (before depreciation) Profit from electricity sales (gross profit) 348.1 350 12 304.4 300 285.9 264.
Slide 39: Logistics facilities
Property name Location Total floor area Completion Logiport Nagoya Nagoya-shi, Aichi 355 thousand ㎡ July 2023 LOGI’Q Minami Ibaraki Ibaraki-shi, Osaka 162 thousand ㎡ January 2024 T-LOGI'Q Fukuoka Island City Fukuoka-shi, Fukuoka 148 thousand ㎡ January 2024 Kashiwa Shonan PJ Kashiwa-shi, Chiba 33 tho
Slide 40: Overseas investment balance
-...~.~ [¥ billion] US Indonesia others 300.0 approx.247 250.0 approx.235 approx.198 approx.37 approx.40 200.0 approx.25 approx.31 approx.33 150.0 approx.25 100.0 approx.167 approx.174 approx.148 50.0 0.0 23/3 24/3 24/6
Slide 41: Property Management & Operation
FY2023 FY2024 (¥ billion) Comparison note Q1 Q1 Operating revenue 76.7 80.2 3.4 [¥ billion] Management +0.5, Construction +0.2, Leasing conference 226.0 Property management 45.8 46.7 0.9 250.0 rooms, etc. +0.2 212.0 Hotel +3.0, Tokyu Sports Oasis fitness business Wellness 28.6 31.1 2.5 200.0 consoli
Slide 42: Property management units and projects
•Under comprehensive management •Under facility management 800,000 304,220 314,197 303,930 343,203 339,087 341,277 342,352 600,000 400,000 525,313 525,694 527,673 524,688 506,154 480,255 477,274 200,000 20/3 21/3 22/3 23/3 24/3 24/6 25/3 Plan Total units 829,533 839,891 831,603 867,891 845,241 821,5
Slide 43: Hotels and resorts: RevPAR and rooms
100.0% ¥20,000 RevPAR ADR • Occupancy Rate 90.0% ¥18,000 [Rooms] 9,297 80.0% ¥16,000 10,000 9,232 9,107 9,247 8,860 70.0% ¥14,000 7,902 8,162 1,206 1,177 1,307 1,307 8,000 1,206 7,279 842 890 60.0% ¥12,000 842 6,000 50.0% ¥10,000 5,193 5,180 5,180 5,180 4,522 4,904 3,687 4,310 40.0% ¥8,000 4,000 30.
Slide 44: Real Estate Agents
FY2023 FY2024 (¥ billion) Comparison note [¥ billion] Q1 Q1 250.0 218.9 Operating revenue 75.6 88.9 13.3 187.2 10.1 200.0 Retail +1.7, Wholesale (0.4), 6.9 Real Estate Agents 52.3 64.0 11.7 Real estate sales +9.8 150.0 119.1 94.4 Rental housing service 23.4 24.9 1.6 100.0 64.0 52.3 Operating profit
Slide 45: Real estate agents transactions
FY2024 Q1 Retail* Wholesale* Total Highlights Rate of change YoY No. of transactions 7,250 241 7,491 Retail (units) +9.5% ( 1.6)% +9.1% Number of offices: 219 as of March 31, 2024, 223 as of June 30, 2024, with plans to open 8 new offices in FY2024. Amount of transactions 353.2 127.4 480.6 (billion
Slide 46: Rental housing units managed
160 140 120 149 138 140 100 130 117 107 80 21/3 22/3 23/3 24/3 24/6 25/3 Plan [Units: thousand] 107 117 130 138 140 149 (Change from the end of preceding fiscal year) ＋ 14 ＋ 10 ＋ 13 ＋9 ＋1 ＋ 11 60 56 52 48 56 57 57 44 52 48 48 40 21/3 22/3 23/3 24/3 24/6 25/3 Plan* [Units: thousand] 48 48 52 56 57 57
Slide 47: Initiatives for Co-Creation with Partners and Utilization of Regional Resources
Initiatives for Co-Creation with Partners and Utilization of Regional Resources © TOKYU FUDOSAN HOLDINGS CORPORATION 47 I
Slide 48: HAKOZAKI Green Innovation Campus
千年以上にわたり常に更新され続けてきた箱崎のまち。 長い時間の営みが積み重なったこの場所だからこそ、これから百年後の、未来を創る礎があります。 九州大学が発信してきた“新たな価値”を創造し続けることにより、 世界を牽引する、伝統と革新を融合したまちをつくることを宣言します。 HAKOZAKI Green Innovation Campus 世界を牽引する「未来」をつくるまちづくり
Slide 49: Initiatives for Utilization of Regional Resources
| Initiatives for Utilization of Regional Resources | Promoting creation of added value by utilizing regional resources in renewable energy and resort businesses. Concluded an “Agreement on Sustainable Community Planning through the Use of Renewable Energy” with Ishikari City Concluded an “Agreement
Slide 50: Sustainability and DX Initiatives
Sustainability and DX Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 50 nnn nnn nnnnn nner nnn n ncn n cn cncccc crn c ncn nnnnnnnnnnnnnrnnnneceeeeeeeeeeee ener eee
Slide 51: Ensuring of diversity
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Slide 52: Nature dependence and contributions
~ une Dependency Positive impact Negative impact Nature(Animals, plants, mountains, climate…) Regulating/maintenance services Sound forest management Land occupation/use Greenhouse gas Control of sediment runoff absorption Provisioning services Tokyu Fudosan Holdings Prevention of landslides Reducti
Slide 53: CO2 reduction contributions
► ► CO2 Reduction contributions ► ► Emissions through the creation of • • renewable energy, etc. • • • • • •
Slide 54: *1 Tokyu Land Corporation *2. Com bined total of the five m ain business
*1 Tokyu Land Corporation *2. Com bined total of the five m ain business com panies (Tokyu Land Corporation, Tokyu Livable Inc., Tokyu Com m unity Corp., Tokyu Housing Lease Corporation, and National Students Inform ation Center, Co., Ltd.)
Slide 55: Corporate Governance
| Corporate Governance Ee Governance Establish a governance system that contributes to ensuring sound and transparent management and strengthening the system for implementing the long-term management policy. «Corporate Governance Structure) «System of Remuneration for Officers) Improved linkage betw
Slide 56: ESG indexes and evaluations
❬ ❭ ●Selected - Not selected Classification Index/Evaluation Description of Evaluation 2019 2020 2021 2022 2023 Evaluating companies’ activities to fulfill their social FTSE 4good responsibilities in terms of environmental, social, and Index Series governance (ESG) aspects Adopted by the GPIF. The i
Slide 57: DX Initiatives
| DX Initiatives | KG ox Our digital transformation focuses on business processes and customer experience. DX Report2023 released (November 2023) Started provision of comprehensive facility management services utilizing digital twin technologies (July 2024) The report disclosed our progress in our G
Slide 58: Status of dialogue with investors and analysts
| Status of dialogue implementation with investors and analysts | We continued engaging with investors and analysts to aid our sustainable growth and build our organization’s value over the long term. IR events organized Main themes of our dialogue with investors and analysts/ main concerns expresse
Slide 59: WE ARE GREEN
WE ARE GREEN @ TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — Q1 FY2024 Earnings Presentation on 6ix