Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — FY2014 Earnings Presentation
30 slides from Daito Trust Construction's earnings presentation, May 2014
Slide 1: Financial Highlights, Year ended March 31, 2014
Financial Highlights, Year ended March 31, 2014 Contents Ⅰ. Performance FY 2014 ・・・・・・・・・・ 3 Ⅱ. Plan FY 2015 ・・・・・・・・・・・・・・ 21 Ⅲ. Shareholders Return Policy・・・・・・ 33 Ⅳ. Mid-term Plan ・・・・・・・・・・・・・ 36 Ⅴ. Topics・・・・・・・・・・・・・・・・・・ 40 Ⅵ. Appendix・・・・・・・・・・・・・ ・・・ 44
Slide 2: Performance FY2014: Financial highlights
Ⅰ. Performance FY2014 Ⅰ- 1 Financial highlights 1. Increase in sales and income for 6th straight periods Orders received ¥625.8 billions （△ 4.5% YoY） 2. Occupancy rate 96.9% (Residential use in March) （+0.2P YoY） ①Annual dividend（Plan） 347yen(＋23yen) Shareholders ②Buy-back of own share and 16.6bn ye
Slide 3: Income summary and construction segment
Ⅰ- 2 Income summary FY3/14 increased both in sales and incomes for six straight periods Net sales Operating income （\billions） （\billions） ¥1,259.6bn ¥89.7bn 1,400 100 1,152.4 （+9.3% YoY） 81.9 82.4 （+8.9% YoY ） 1,200 1,087.1 80 1,000 800 60 600 40 Planned Planned 400 ¥1,251.0bn 20 ¥88.0bn 200 0 0 FY
Slide 4: Income summary by segment (Real estate, Others)
Ⅰ- 4 Income summary by segment （Real estate） （¥ billions） FY3/2013 FY3/2014 （YoY） Net sales 630.4 677.6 （+7.5%） Gross profit 35.3 45.3 （+28.3%） Gross profit margin 5.6% 6.7% ［+1.1ｐ］ [ ]：Difference from previous year （\billions） （\billions） 700 ¥677.6bn ¥45.3bn 630.4 50 600 589.9 40 35.3 500 30 29.2
Slide 5: SG&A expenses and B/S summary
I – 6 Selling, general and administrative expenses （¥billions） FY3/2013 FY3/2014 （YoY） SG&A expenses 136.0 143.3 （+5.4%） SG&A ratio 11.8% 11.4% ［△0.4ｐ］ [ ]：Difference from previous year （\billions） 150 136.0 ￥143.3bn 50% 132.1 40% 100 30% Plan 12.2% 20% 50 11.8% 11.4% ¥144.7bn 10% 0 0% FY 3/12 3/13
Slide 6: Cash flows and orders received
Ⅰ- 8 Cash flows in FY3/14 Cash flow from Net income before taxes 83.8 Operating activities Money trust of security deposit Cash flow from Purchase of PP&E -59.4 Investing activities (Solar power generation installations) Cash flow from Cash dividend -39.1 Financing activities Repayment of loans Cash
Slide 7: Orders received by area and orders in hand
Ⅰ- 10 Orders received by area (\billions) 220 50% Daito’s Ave. 200 204.4 △4.5% 180 160 25% 140 (160.9) +0.2% +1.5% 120 -2.1% -9.5% 0% 100 -1.5% -5.1% 80 -9.5% -8.4% （-4.0%） 91.7 82.3 81.1 60 -17.3% -25% 40 48.2 45.5 20 30.2 25.1 14.9 0 -50% ） n io i o ku o u ku yu i u eg ka nk nt ts aid ok lr ho iko
Slide 8: Business staffs and analysis of orders received
I – 12 Business staffs and Orders received per sales rep (Quarterly comparison) ◇Sales representatives ＜Term end ＞ 3,325 staffs（+121 YoY ） ◇Orders received per sales rep ＜FY＞ 16.28million / Month（ △700Thousands yen） Sales rep OR /person （person） （millions/person・month） 3,500 3,325 3,261 3,204 3,202
Slide 9: Cancellation rate and new tenants
I – 14 Cancellation rate ◇Cancellation rate［FY］ 18.3％（ +4.6p YoY） Cancellation rate※（FY） Cancellation※（Quarterly） 30% 30% 21.6% 18.3% 20% 18.4% 18.9% 20% 15.8% 16.7% 14.9% 15.0% 13.7% 12.9% 9.6% 10% 10% 0% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY 3/12 3/13 3/14 FY 3/13 3/14 ※ Cancellation rate ＝ the amount of
Slide 10: Rent basis occupancy rate
Ⅰ- 16 Rent basis occupancy rate Residential use 96.9%（+0.2p YoY） Commercial use 96.8%（+1.3p YoY） Residential Use Commercial use 100% 96.8% 96.7% 96.9% 100% 96.8% 94.1% 95.5% 90% 90% 80% 80% 70% 70% FY 3/12 3/13 3/14 FY 3/12 3/13 3/14 ※ Rent basis occupancy rate ＝１－（ rent guarantee for vacant rooms /
Slide 11: Plan FY2015: premise of the plan
Ⅱ. Plan FY2015 Ⅱ- 1 The premise of FY3/15 plan 《The premise of FY3/15 plan》 Focusing on effective utilization of property Orders and the succession planning New building starts with large amount of orders outstanding Construction Expecting higher construction costs due to reconstruction after
Slide 12: Plan income summary and key figures
Ⅱ- 2 Income summary Planning increase both in sales and incomes for seven straight periods Net sales Operating income （\billions） ¥1,345.0bn （\billions） ¥91.0bn 1,400 1,259.6 （+6.8% YoY） 100 89.7 （+1.4% YoY ） 1,200 1,152.4 82.4 80 1,000 800 60 600 40 400 20 200 0 0 FY 3/13 3/14 3/15 FY 3/13 3/14 3/1
Slide 13: Construction sales and gross profit margin plan
Ⅱ- 4 Sales and gross profit margin on construction completed （¥billions） FY3/2014 FY3/2015 （plan） （ YoY ） Net sales 545.3 584.0 （+7.1%） Gross profit 175.2 176.9 （+0.9%） [ ]： Difference from Gross profit margin 32.1% 30.3% ［△1.8ｐ］ previous year ※ Major breakdown of gross profit margin 30.3% （△1.8P ）
Slide 14: Efforts to secure sales; strategy for orders
Ⅱ- 6 Effort to secure net sales and gross profits ② Expansion of production line z To increase production capacity(2×4 panel) by the partner company （Daito support finance for the partner company to increase production capacity) ③Foreign Technical Intern Training Program zTo support partner companie
Slide 15: Consulting for inheritance properties; CRE approach
Ⅱ – 8 Strategy to achieve our plan of ¥670.0 orders received ２. Consulting business for inheritance properties zRegularly scheduled consulting seminars of inheritance properties zSupport services for inheritance properties （Life planning・entrustment・inheritance, etc.） ●inheritance seminar ３．Reinforc
Slide 16: Strategy to recruit new tenants
Ⅱ- 10 Strategy to recruits new tenants of 259,600 units in FY3/15 （FY3/15 end occupancy rate target residential use 96.9%, commercial use 96.8%） １．Increasing sales efficiency ◇ Tenant recruiters ＜Plan FY3/15＞ 1,160（ △6 YoY） ◇ New Tenants per recruiter 18.5/person・month（ +1.1YoY） Number （persons） 20
Slide 17: Shareholders return policy
Ⅲ. Shareholders return policy Ⅲ- 1 Return to shareholders (March.2014) March. 2014 ①Dividend Payout ratio ： ¥347（ pre term+¥23, payout ratio 50%） ※mid-term 170yen, term end 177yen ②Buy-back of own share : ¥16.6bn・1.71mn shares(upper limit) Share retirement ※3/2014 earnings in current term×30% ※Buy-b
Slide 18: Plan for return to shareholders
Ⅲ- 1 Plan for return to shareholders (March.2014) Return to shareholders of FY3/15［Plan］ Annual dividend ¥391（¥+44 YoY） ［Payout ratio 52.7%］ 《breakdown》 ①General dividend ¥371 ［payout ratio ５０．０％］ ②40th anniversary dividend ¥20 ［payout ratio ２．７％］ 35 Ⅳ. Mid-term Plan
Slide 19: Revised mid-term plan
Ⅳ- 1 Revise Mid-term Plan (Net sales, Operating Income) FY 3/18 Plan Net sales 1,608.0bn（ （ vs vs 3/13 3/13 +39.5% +39.5% annual annual growth growth 6.9%） 6.9%） Operating income 112.0bn（ （ vs vs 3/13 3/13 +35.9% +35.9% annual annual growth growth 6.4%） 6.4%） Operating income Net sales (¥billions) (
Slide 20: Financial index (equity ratio, ROE)
Ⅳ- 3 Financial index （ Equity ratio／ROE） ● Financial index： ＲＯＥ over 20％ ● Equity capital Equity ratio ROE 3,000 2,874 2,691 2,515 60% 2,429 2,248 1,912 2,000 37.3% 1,583 32.9% 33.9% 34.4% 34.9% 40% 32.5% 31.0% 1,311 26.4% 26.3% 24.6% 26.6% 25.5% 25.9% 29.6% 27.8% 1,000 20% 19.5% 0 0% FY 3/11 3/12 3
Slide 21: Additional value for tenants; energy generation
Ⅴ – 1 Additional value for tenants Live-Up living service ／ deploy 47 prefectures across the country For our tenants Inform privileges of local store and 3/2015 local information 3/2014 24areas 48areas ● Store information ・restaurants ・laundry ・beauty salon ・hobby（language, sports, etc.） ●Rental inf
Slide 22: Childcare service
Ⅴ-3 Deal with children on waiting lists ／care partner ：childcare service Childcare ／ Opened 2nd Kids Partner in April. 2014 3/2014 3/2017 2places 11places (¥millions) (inst) 401 400 15 300 11 202 10 200 6 5 100 78 38 1 2 0 0 FY 3/14 3/15（plan） 3/16（plan） 3/17（plan） Net sales The number of operation
Slide 23: Non-consolidated statement of income
Ⅳ- 1 Non-consolidated statement of income 〈3 / 2014〉 （¥ millions） FY3/15 FY3/14 FY3/13 YoY (Plan) Net sales 563,343 508,404 +10.8% 605,800 Construction 545,774 490,831 +11.2% 584,500 Real estate & others 17,569 17,573 △0.0% 21,300 Gross profit 172,418 167,763 +2.8% 174,200 Construction 174,406 170,1
Slide 24: Sales structure of real estate business
Ⅳ- 3 Sales Structure of Real estate business 〈3 / 2014〉 （ ¥ millions ） FY3/12 FY3/13 FY3/14 Amount （Ratio） Amount （Ratio） Amount （Ratio） YoY Whole-building lease ※1 533,439 (90.4%) 575,898 (91.4%) 621,832 (91.8%) +8.0% Building and repairs ※２ 30,095 (5.1%) 30,918 (4.9%) 31,081 (4.6%) +0.5% Brokerage
Slide 25: Financial summaries of major subsidiaries
Ⅳ- 5 Financial summaries of major subsidiaries （Others - 1）〈3 / 2014〉 （ ¥ millions ） Other business （Financial business） Daito Finance D.T.C FY3/15 FY3/15 FY3/14 FY3/13 YoY (Plan) FY3/14 FY3/13 YoY (Plan) Net sales 975 1,023 △4.7% 881 3,451 3,134 +10.1% 3,159 Gross profit 580 616 △5.8% 505 1,476 1,2
Slide 26: Number of employees; channels of orders
Ⅳ- 7 Number of employees by each occupations （Non-consolidated） Sales reps Engineers Tenant recruiters Total employees （right axis） 5,000 11,000 4,000 10,000 9,000 3,000 8,000 2,000 7,000 1,000 6,000 0 5,000 3/13 end 3/14 end 3/15 end（plan） 3/13 end 3/14 end （YoY） 3/15 plan Total employees 9,428 9,7
Slide 27: Orders by repeat customers; construction starts
Ⅳ- 9 Orders received by repeat （\billions） 400 \38.10bn 354.80 350 329.60 300 250 52.3% 54.7% 50.9% 200 150 100 50 0 FY 3/12 3/13 3/14 Oreders received by repeat Composition ratio Number of orders received by repeat from our existing customers ※ Composition ratio ＝ Total number of orders received 53
Slide 28: Construction starts by area; occupancy rate
Ⅳ-11 Number of construction starts by area & Daito’s share Number of Share construction starts 18,000 50% 16,000 16,864 40% 34.9% 14,000 30.6% 28.6% 26.4% 30% Daito’s Ave. 12,000 12.5% 16.6% 10,000 16.8% (10.1%) 13.4% 20% 9.2% 16.1% 8,000 8,842 10% 7,719 6,000 (12,056) 6,481 0% 4,000 4,274 4,556 3,7
Slide 29: Units under management; customer financing channel
Ⅳ- 13 Number of units under management & aggregate amount of rent Residential use Commercial use Managing units Rent Managing units Rent (thousands) 805 (￥billions) (thousands) 500 (￥billions) 10 800 747 55 700 694 43.0 46.3 39.8 45 400 8 600 6.5 6.4 6.4 35 500 300 6 400 25 200 4 300 15 200 100 2 5
Slide 30: Daito Trust Construction contact and disclaimer
１．Disclaimer of warranties for the contents Daito pays careful attention about the information carried on this homepage. However, Daito can not offer the guarantee about the accuracy, reliability, safety, etc. Please recognize the information about future forecast that Daito may offer is prediction
Daito Trust Construction — FY2014 Earnings Presentation on 6ix