Heiwa Real Estate Co., Ltd. · TSE:8803
Heiwa Real Estate — H1 FY2013 Earnings Presentation
28 slides from Heiwa Real Estate's earnings presentation, Nov 12, 2012
Slide 1: Financial Results for First Half of Fiscal Year ending March 31, 2013
HEIWA REAL ESTATE CO., LTD. Security Code: 8803 Financial Results for First Half of Fiscal Year ending March 31, 2013 HEIWA REAL ESTATE CO., LTD. 2012.11.12
Slide 2: Contents
CONTENTS 1. Highlights for First Half of Fiscal Year ending 3. Our Business Strategy and Future Initiatives March 31, 2013, and Business Performance HEIWA REAL ESTATE’s Medium- to Long-term Vision P. 17 Trends The Nihonbashi Kabutocho & Kayabacho Redevelopment Project—A Stepping Stone for Further Gr
Slide 3: 1. Highlights for First Half and Business Performance Trends
1. Highlights for First Half of Fiscal Year ending March 31, 2013, and Business Performance Trends
Slide 4: Highlights for First Half of Fiscal Year ending March 31, 2013 (1)
Highlights for First Half of Fiscal Year ending March 31, 2013 (1) Results for first half of fiscal year ending March 31, 2013: Flat year on year Decline in D/E ratio: Stabilization of financial position (millions of yen) (millions of yen) (millions of yen) Operating revenue Ordinary income Inte
Slide 5: Highlights for First Half of Fiscal Year ending March 31, 2013 (2)
Highlights for First Half of Fiscal Year ending March 31, 2013 (2) Key topics first half of fiscal year ending March 31, 2013 Leasing Business Ichibancho Heiwa Building in operation throughout the fiscal year Maintained high occupancy rates for office buildings and residential properties Con
Slide 6: Consolidated Financial Results for First Half of Fiscal Year ending March 31, 2013
Consolidated Financial Results for First Half of Fiscal Year ending March 31, 2013 Consolidated financial results for first half of fiscal year ending March 31, 2013 Year-on-year 1H of FY ended 1H of FY ending Year-on-year Progress against percentage change March 31, 2012 March 31, 2013 change for
Slide 7: Information by Segment—Leasing Business
Information by Segment—Leasing Business Revenue increase due to new buildings coming into FY ending FY ended FY ended 1H of FY ending operation and the start of new tenancies: March 31, 2013 March 31, 2011 March 31, 2012 March 31, 2013 (Forecast) 550 million yen Vacancy rate [buildings] 1–1.9% (%)
Slide 8: Changes in Percentage of Annual Rent Revenue Accounted for by Tokyo Stock Exchange
Changes in Percentage of Annual Rent Revenue Accounted for by Tokyo Stock Exchange Changes in Percentage of Annual Rent Revenue Accounted for by Tokyo Stock Exchange 1H of FY ended Mar. 2012 26.2% 73.8% FY ended Mar. 2007 28.8% 71.2% FY ended Mar. 2002 39.6% 60.4% FY ended Mar. 1997 57.7% 42.3% 0% 2
Slide 9: Information by Segment—Real Estate Development Business
Information by Segment—Real Estate Development Business Recorded distributions received from HEIWA REAL ESTATE REIT, INC. as “development real estate revenue” Operating revenue (millions of yen) Operating income (millions of yen) 1,000 800 600 400 200 0 0 50 100 150 200 250 396 Management fee 407
Slide 10: Information by Segment—Housing Development Business
Information by Segment—Housing Development Business Number of units sold: 105 units (compared with 143 units for the same period a year ago) Construction completed for: Sakurazutsumi Teien Terrace, GRANSYMPHONIA (Toda Koen), The Park House Shinjuku Tower, and South All City (Ootori, Sakai-city,
Slide 11: Balance Sheet Status (1)
Balance Sheet Status (1) Status of assets Housing Housing Housing Leasing Leasing Leasing 0.3 billion yen 0.3 billion yen 0.4 billion yen Inventories Housing Inventories Housing Inventories 23.1 billion yen Development 19.9 billion yen Development 27.0 billion yen 7.9 billion yen 5.4 billion yen Hou
Slide 12: Balance Sheet Status (2)
Balance Sheet Status (2) Status of interest-bearing debt D/E ratio: 2.39 times Short term 15.0 billion yen Short term 16.8 billion yen Short term 12.4 billion yen The 7th Convertible Bond matured in June 2012: 16.2 billion yen Long term Long term 126.3 billion yen The 7th Straight Bond Long term
Slide 13: 2. Forecasted Results and Medium-term Management Plan
2. Forecasted Consolidated Financial Results for Fiscal Year ending March 31, 2013, and Medium-term Management Plan
Slide 14: Forecasted Consolidated Financial Results for Fiscal Year ending March 31, 2013
Forecasted Consolidated Financial Results for Fiscal Year ending March 31, 2013—Second Year of Medium-term Management Plan FY ending March 31, 2013 FY ended March 31, 2012 - – Second Year of Medium- First Year of Medium-term Year-on-Year Year-on-Year (%) term Management Plan Management Plan (Forecas
Slide 15: Forecast by Segment
Forecast by Segment Leasing Business FY ending Revenue increase due to the launch of the FY ended Year-on-Year March 31, 2013 Year-on-Year March 31, 2012 (%) operation of a new building, new tenants moving (Forecast) in, etc.: 1.2 billion yen Operating revenue (millions of yen) 21,189 18,000 (3,18
Slide 16: Dividends and Numerical Targets under Medium-term Management Plan 2013
Dividends and Numerical Targets under Medium-term Management Plan 2013, “Groundwork for the Future” Dividend FY ending FY ended FY ended FY ended FY ended FY ended March 31, 2013 March 31, 2008 March 31, 2009 March 31, 2010 March 31, 2011 March 31, 2012 (Forecast) *1 Net income per share (yen) 25.5
Slide 17: 3. Our Business Strategy and Future Initiatives
3. Our Business Strategy and Future Initiatives
Slide 18: Medium- to Long-term Vision
HEIWA REAL ESTATE’s Medium- to Long-term Vision Grow into a real estate company featuring enhanced urban development capabilities Re-examination of urban area functions ⇒ Business opportunity Strengthen our value-added creation capabilities by leveraging our urban area development projects Achieve
Slide 19: Redevelopment Project—A Stepping Stone for Further Growth
The Nihonbashi Kabutocho and Kayabacho Redevelopment Project— A Stepping Stone for Further Growth The first step towards entering a new stage Hop Step Jump The Nihonbashi Kabutocho and Kayabacho redevelopment project Japan-wide initiative Use as the stepping stone the redevelopment of the Nihonbas
Slide 20: Capital and Business Alliance with the Tokyo Shoken Building
The Nihonbashi Kabutocho and Kayabacho Redevelopment Project— Capital and Business Alliance with the Tokyo Shoken Building Incorporated Create new added value in the Kabutocho area by adding three facilities symbolizing Japan’s securities industry to the list of properties under our management and
Slide 21: Redevelopment Project—To a New Stage
The Nihonbashi Kabutocho and Kayabacho Redevelopment Project— To a New Stage Fully realize the potential of Nihonbashi Kabutocho and Kayabacho From a securities industry district… HEIWA REAL ESTATE’s strengths and Owner of the Tokyo Stock Exchange Building Relationship with the securities indust
Slide 22: Redevelopment Project—Collaboration with Mitsubishi Estate
The Nihonbashi Kabutocho and Kayabacho Redevelopment Project— Collaboration with Mitsubishi Estate Co., Ltd. HEIWA REAL ESTATE’s needs Mitsubishi Estate Favorable views on joint development in the Nihonbashi Kabutocho area Strengthen development capabilities Superior track record in redevelopmen
Slide 23: Real Estate Development Business—Medium- to Long-Term Growth Driver
Real Estate Development Business—Medium- to Long-Term Growth Driver Establish a value chain including a REIT Strengthen value chain to serve as a medium- to Raise the value of properties and assign them to long-term growth driver the REIT Enhance the supply of properties Raise property value S
Slide 24: Leasing Business—Distribution of Our Stock Exchange Buildings and Future Strategy
Leasing Business—Distribution of Our Stock Exchange Buildings and Future Strategy The Company’s core business is its Leasing Our asset holdings and future reinforcement areas Business, which mainly comprises the leasing of stock exchange buildings located across Japan Location where the stock exch
Slide 25: Leasing Business—New External Growth Case Examples
Leasing Business—New External Growth Case Examples New development in the Sendai area Generated a sense of liveliness, Ichibancho Heiwa Bldg. creating a new land mark Location: 3-6-1 Ichibancho, Aoba-ku, Sendai-city Site area: 1,737.99 m2 Adopted an all-building LED lighting Total floor area: 11,079
Slide 26: Housing Development Business—Condominium Sale Business
Housing Development Business—Condominium Sale Business Acquire the land for the construction of a 67-unit condominium in Oshiage (a standalone project) Rigorous selection of properties and the provision of safety and security Name GRANSYMPHONIA Sakurazutsumi Teien Terrace The Park House Shinjuku
Slide 27: Enhance Our Environmental Contributions
Enhance Our Environmental Contributions Supply environmentally-friendly buildings amid an industry environment Acquired the DBJ Green Building Certification that requires individual players to contribute to the environment Sustainable building assessments carried out by SMBC CentRise The Tokyo
Slide 28: Reference: Leasing Business—Distribution of Main Asset Holdings
Reference: Leasing Business—Distribution of Main Asset Holdings [Kinki] The Osaka Securities Exchange Bldg. Osaka Heiwa Bldg. Hotel Brighton City Osaka Kitahama HEIWA REAL ESTATE Kitahama Bldg. Ito-Yokado Higashiosaka SC Kyoto Shoken Bldg. DAIMARU Kyoto Store (West) Kyodo Bldg. DAIMARU Kyoto Sto