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

Daito Trust Construction — 3Q FY2019/3 Earnings Presentation

27 slides from Daito Trust Construction's earnings presentation, February 2019

  1. Slide 1: 3Q Financial Highlights, Year ending March 31, 2019

    3Q Financial Highlights, Year ending March 31, 2019 1 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Contents 2 Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

  2. Slide 2: Consolidated PL

    3 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. PL Consolidated PL YoY Net sales Operating income 1,159.2 ¥1,175.6bn 120 111.6 ¥105.0bn 1,200 1,105.4 106.1 +1.4% 5.9% 900 90 600 60 300 30 0 0 16/12 17/12 18/12 16/12 17/12 18/12 Ordinary income Net income attributable to parent 120 109.3 115.3 ¥108.7

  3. Slide 3: Construction segment PL

    PL Construction segment ¥ bn Net sales 466.9 443.1 5.1% Gross profit 149.3 137.3 8.0% Operating income 84.0 71.6 14.7% Net sales (Percentage of completion method) Gross profit Operating income Under construction Construction completed 180 500 457.7 466.9 443.1 149.3 137.3 100 150 145.3 82.2 84.0 400

  4. Slide 4: Real estate segment PL

    PL Real estate segment ¥ bn Net sales 650.6 691.8 +6.3% Gross profit 59.4 67.8 +14.2% Operating income 28.9 36.6 +26.7% Net sales Gross profit Operating income 67.8 36.6 691.8 700 650.6 59.4 614.3 60 600 54.7 30 28.9 26.7 500 40 400 20 300 200 20 10 100 0 0 0 16/12 17/12 18/12 16/12 17/12 18/12 16/1

  5. Slide 5: Other segments and SG&A expenses

    PL Other segments ¥ bn Net sales 41.76 40.65 2.7% Gross profit 14.40 15.92 +10.6% Operating income 7.95 7.77 2.2% Net sales Gross profit Operating income 41.76 40.65 15.92 40 15 14.40 7.95 7.77 8 33.36 12.53 6.54 30 6 10 20 4 5 10 2 0 0 0 16/12 17/12 18/12 16/12 17/12 18/12 16/12 17/12 18/12 9 Copyr

  6. Slide 6: Financial Review: Consolidated BS and CF

    Financial Review Consolidated BS ¥ bn 296.2 240.7 254.5 +41.7 55.5 509.8 456.4 428.3 +81.5 53.4 249.7 261.6 171.6 +78.1 +11.9 545.9 502.3 426.1 +119.8 43.6 333.1 361.5 285.3 +47.8 +28.4 297.0 315.6 287.5 +9.5 +18.6 842.9 842.9 817.9 817.9 713.7 713.7 25.0 25.0 +129.2 +129.2 40.7% 35.6 % 38.8% ¥3,880

  7. Slide 7: Orders received and orders in hand

    13 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Orders received Orders received & orders in hand Orders received ¥442.4bn 1.9% YoY (in 3Q alone) ¥146.5bn +2.2% YoY Orders in hand ¥870.6bn +1.3% YoY 500 460.7 451.1 ¥442.4bn ¥870.6bn 800 400 600 300 400 200 143.3 146.5 138.0 100 200 0 0 16/12 17/12 1

  8. Slide 8: Orders received in each region

    Orders received Orders received in each region Orders received ¥ bn YoY 100% 160 Daito’s nationwide 80% 140 average 60% 1.9% 120 23.4% 132.2 29.6% 40% 12.1% 100 (108.7) 3.8% 20% 22.9% 0% 80 -14.3% 74.2 -6.5% -7.7% -20% 60 -16.9% 67.7 -40% 40 (-17.3%) 54.8 -60% 34.3 20 25.2 28.4 -80% 5.4 19.5 0 -100%

  9. Slide 9: Mid-rise ratio, rebuild ratio, average price, cancellation

    Item related to orders received Index Mid-rise ratio 21.2% 1.3p YoY Rebuild ratio 41.0% +4.7p YoY 40% 41.0% 40% 36.3% 30% 31.7% 21.8% 22.5% 21.2% 30% Total rebuild ratio 20% Daito APT rebuild ratio 20% breakdown 10% 7.0% 8.6% 10% 4.2% 0% 0% 16/12 17/12 18/12 16/12 17/12 18/12 17 Copyright© DAITO TRU

  10. Slide 10: Number of tenant recruitment

    Item related to orders received Index 4,500 220% 4,000 200% 180% 3,500 160% 3,000 140% Order received 2,500 YoY 120% 102.1% 104.1% 102.5% 96.6% 100.1% 2,000 91.0% 100% 103.4% 82.6% 88.0% 97.6% 98.7% 1,505 1,174 86.4% 87.9% 80% 1,500 996 1,122 82.4% 1,203 1,121 62 68 1,095 43 60% 1,000 499 657 513 56

  11. Slide 11: Occupancy rate

    Items related to tenant recruitment Occupancy rate Residential use 96.6% +0.2p YoY Commercial use 98.6% +0.3p YoY Occupancy rate Occupancy rate 100% 100% 98.4% 98.3% 98.6% 96.2% 96.4% 96.6% 90% 90% 80% 80% 70% 70% 16/12 17/12 18/12 16/12 17/12 18/12 Rent basis as occupancy rate = 100% - {(Lease fee

  12. Slide 12: Number of recruitment and efficiency

    Items related to tenant recruitment Number of recruitment 47.8 180% 52.2 % 100,000 % 160% 140% Number of 80,000 YoY recruitment 111.5% 109.0% 106.4% 111.6% 104.2% 109.6% 109.2% 106.6% 106.5% 110.4% 120% 103.9% 105.4% 101.2% 101.5% 60,000 100% 52,329 45,778 80% 40,000 37,948 39,493 32,996 33,227 34,2

  13. Slide 13: Occupancy rate in each region

    Items related to tenant recruitment Occupancy rate in each region Daito’s nationwide average 96.6% 100% 94.5% 95.9% 96.7% 96.4% 97.2% 96.9% 96.4% 94.4% 97.1% 75% 50% 25% 0% Occupancy rate as of December 2017 Occupancy rate as of December 2018 25 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 26 Copyr

  14. Slide 14: Financial forecast

    Financial forecast Consolidated PL YoY Net sales Operating income ¥1,640.0bn ¥128.0bn 1,557.0 +5.3 126.3 +1.3 1,500 1,497.1 120.1 120 111.6 1,175.6 106.1 105.0 1,200 1,105.4 1,159.2 90 Q 900 Q Q Q progress Q Q progress 60 progress progress progress rate 600 progress rate rate 88.4 rate rate rate 71.

  15. Slide 15: Full-year forecasts: occupancy rate

    Full-year forecasts Occupancy rate Occupancy rate Occupancy rate 98.5% 98.6% 98.6% 98.4% 98% 98% 97.0% 98.3% 98.3% 98.3% 98.4% 96.4% 96.5% 96.6% 97.2% 96% 96.3% 96.4% 96% 96.3% 94% 94% 92% 92% FY 18/3 FY 19/3 FY 18/3 FY 19/3 90% 90% 29 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 30 Copyright© DAIT

  16. Slide 16: Shareholders return / Topics: ROOFLAG

    Shareholders return 31 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Topics ROOFLAG, Exhibition place of Future Rental Housing, is intended to be built in Shinonome, Tokyo in 2020 The exhibition space specialized in rental housing, which provides an opportunity to experience future lifestyle. The tr

  17. Slide 17: Appendix: segment financial tables

    Appendix 33 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Construction business ¥ mn 17/12 18/12 19/3 plan YoY plan Net sales 466,920 443,114 5.1% 663,000 +5.6% Gross profit 149,315 137,384 8.0% 197,300 0.1% (Gross profit margin) 32.0% 31.0% 1.0p 29.8% 1.7p Operating income 84,062 71,673 14.7% 105,8

  18. Slide 18: Construction, Real estate & Others tables

    ¥ mn Plan 17/12 18/12 YoY (full-year) 473,476 447,289 5.5% 665,600 Construction 466,917 444,710 4.8% 663,000 Real estate & Others 6,559 2,579 60.7% 2,600 147,949 139,946 5.4% 196,500 Construction 145,796 138,669 4.9% 194,800 Real estate & Others 2,152 1,277 40.7% 1,700 85,435 88,061 +3.1% 134,500 62

  19. Slide 19: Real estate business revenue breakdown

    ¥ mn 16/12 17/12 18/12 Amount (Ratio) Amount (Ratio) Amount (Ratio) YoY Whole-building leases 1 562,219 (91.5%) 594,518 (91.4%) 628,778 (90.9%) +5.8% Building and repairs 21,095 (3.4%) 21,368 (3.3%) 24,060 (3.5%) +12.6% Brokerage of real estate 11,737 (1.9%) 11,297 (1.7%) 12,789 (1.8%) +13.2% Rent g

  20. Slide 20: Financial business

    ¥ mn Plan Plan 17/12 18/12 YoY 17/12 18/12 YoY (full-year) (full-year) 7,878 9,372 +19.0% 12,732 7,287 7,896 +8.4% 11,355 7,362 8,855 +20.3% 11,745 7,057 7,397 +4.8% 10,909 2,029 2,294 +13.0% 3,852 6,650 7,063 +6.2% 9,813 5,332 6,561 +23.0% 7,893 407 334 17.8 1,096 5,335 6,568 +23.1% 7,897 411 344 1

  21. Slide 21: Segment tables

    ¥ mn 17/12 18/12 YoY Plan 17/12 18/12 YoY Plan (full-year) (full-year) 16,868 18,216 +8.0% 27,231 8,808 9,272 +5.3% 11,736 7,140 8,026 +12.4% 11,873 1,182 1,169 1.1 1,173 4,783 5,010 +4.8% 7,032 680 751 +10.3 1,023 2,356 3,015 +28.0% 4,840 501 418 16.7 150 2,194 2,752 +25.4% 4,425 502 409 18.5 150 1

  22. Slide 22: Employees and sales representatives

    person person 5,000 14,000 13,000 4,000 12,000 3,000 11,000 2,000 10,000 1,000 9,000 0 8,000 2017/12 2018/12 2019/3(plan) Sales representatives in construction business Engineers Sales representatives in real estate business Total employees right axis Total employees 13,397 13,636 +239 14,220 (3 mai

  23. Slide 23: Number of construction starts and Daito's share

    Number of construction starts Daito’s share 15,000 50% Daito’s nationwide 12,000 ave. 14.3% 36.7% 40% 28.1% 30% 10,913 23.8% 9,000 16.9% 24.5% 15.8% 20% (8,282) 6,000 6,930 10% 9.9% 11.0% 5,858 4.0% (8.2%) 0% 3,000 4,451 2,673 3,052 3,129 -10% 626 2,036 0 -20% Number of construction starts Apr.-Aug.

  24. Slide 24: Units under management

    80 90 8 1,000 800 60 6 60 600 40 4 400 30 20 2 200 0 0 0 0 17/12 18/3 18/12 17/12 18/3 18/12 Number of units under management Number of units under management Agregate amount of rent(monthly ave.) Agregate amount of rent(monthly ave.) 47 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. FY18/3 FY19/3 3Q

  25. Slide 25: Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

    49 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 50 Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

  26. Slide 26: Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

    51 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 52 Copyright© DAITO TRUST CONSTRUCTION CO., LTD.

  27. Slide 27: Disclaimer of warranties for the contents

    53 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

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