Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — 2Q FY3/2015 Earnings Presentation
27 slides from Daito Trust Construction's earnings presentation, November 2014
Slide 1: 2Q Financial Highlights, Year ending March 31, 2015
2Q Financial Highlights, Year ending March 31, 2015 Contents Ⅰ．2Q Financial Results ・・・・・・・・・・・・・・・ 3 Ⅱ．Financial Forecasts & Countermeasures for 2nd half ・・ 21 Ⅲ．Shareholders return ・・・・・・・・・・・・・・・ 33 Ⅳ．Topics ・・・・・・・・・・・・・・・・・・・・・ 35 Ⅴ．Appendix ・・・・・・・・・・・・・・・・・・・・ 38
Slide 2: 1H Financial Results summary①
Ⅰ. 2Q Financial Results Ⅰ- 1 1H Financial Results summary① Sales and each profits updated the highest record Net sales Operating Income （\billions） （\billions） ¥52.7bn 800 ¥658.7bn 60 48.7 （+8.2% YoY） 607.1 （+8.5% YoY） 600 546.5 37.2 40 400 Planned 20 200 Planned ¥632.1bn ¥40.9bn 0 0 1H FY3/13 1H FY
Slide 3: 1H Financial Results summary②; Results by segment (Construction)
Ⅰ- 2 1H Financial Results summary② －Factors of increased sales and income ＜comparison with the original plan＞ ■The reasons why operating income exceeded the original plan（+¥11.8bn） Details Reasons Gross profit ・ Increase the amount of completed work by moving up the +¥7.5bn of construction schedule
Slide 4: 1H Results by segment (Real estate, Others)
Ⅰ- 4 1H Financial Results by segment ( Real estate ) （¥billions） 1H FY3/14 1H FY3/15 （YoY） Net sales 332.2 355.3 （+6.9%） Gross profit 21.8 26.8 （+23.2%） Gross profit 6.6% 7.6% ［+1.0ｐ］ margin [ ]：Difference from previous same period （\billions） （\billions） 400 ¥355.3bn 30 ¥26.8bn 309.7 332.2 21.8 300
Slide 5: SG&A expenses; B/S summary
Ⅰ- 6 Selling, general and administrative expenses （¥billions） 1H FY3/14 1H FY3/15 （YoY） SG&A expenses 64.1 66.4 （+3.7%） SG&A ratio 10.6% 10.1% ［△0.5ｐ］ [ ]：Difference from previous same period （\billions） 80 50% 64.1 64.1 ¥66.4bn 40% 60 30% 40 Planned 20% 11.7% 10.6% 10.1% ¥68.6bn 20 10% 0 0% 1H FY3/
Slide 6: Cash flows; Orders received and Orders in hand
Ⅰ- 8 Cash flows ・Net income before income taxes in 2Q FY3/15 Cash flow provided by ・Payment for corporate taxes 6.8 Operating activities ・Disposition and redemption of securities Cash flow used in ・Decreasing of money trust(residential deposit) Investing activities 3.9 ・Purchase of PP&E (Solar power
Slide 7: Orders received by area; Business staffs and orders per rep
Ⅰ– 10 Orders received by area \billions YoY 120 60% Daito’s Nationwide 100 104.3 Ave. 40% △3.3% 80 +5.2% 20% （+12.0%） +5.0% -2.1% -0.4% -2.3% 60 -3.8% 0% -15.7% -12.3% (83.3) -8.4% 40 -20% 41.9 40.8 36.7 20 23.6 -40% 22.1 15.1 12.8 7.2 0 -60% n) ai i eg to ido u ku u u su nk io ok y ok k l r an iko
Slide 8: Important indicators from orders received; Cancellation rate and unit price
Ⅰ- 12 Important indicators from orders received （Year on year） ◇Rate of medium-rise 19.5%（ +0.8p YoY ） ◇Rate of rebuild 32.0%（ +2.6p YoY ） Rate of medium-rise※1 Rate of rebuild※2 40% 40% 32.0% 29.4% 30% 30% Total rebuild rate 18.7% 19.5% 20% 20% Rebuild ratio in which orders from Daito’s existing cu
Slide 9: Tenancy agreement
Ⅰ- 14 Tenancy agreement ◇ New Tenants 115,536（ +4.5％ YoY ） ・Residential use 113,860（ +4.8％ YoY ） ・Commercial use 1,676（ △12.8％ YoY ） Residential use Commercial use Number YoY Number YoY 120,000 113,860 300% 2,500 300% 108,594 100,000 2,000 1,922 1,676 80,000 200% 200% 1,500 60,000 111.4% 104.8% 1,00
Slide 10: Rent basis occupancy rate
Ⅰ- 16 Rent basis occupancy rate Residential use Commercial use 96.0%（ ±0.0p YoY） 97.4%（ ＋1.3p YoY ） Residential use Commercial use Occupancy Occupancy rate rate 100% 100% 97.4% 96.0% 96.0% 96.1% 90% 90% 80% 80% 70% 70% 1H FY3/14 1H FY3/15 1H FY3/14 1H FY3/15 Rent basis occupancy rate ＝１－（ rent guara
Slide 11: Financial Forecasts: No change in FY3/15 original plan
Ⅱ. Financial Forecasts & Countermeasures for 2nd half Ⅱ- 1 No change in FY3/15 original plan We maintain current original plan for FY3/15 Net sales Operating Income （\billions） ¥1,345.0bn （\billions） ¥91.0bn 1,500 1,259.6 （+6.8% YoY） 100 89.7 （+1.4% YoY） 1,152.4 82.4 1,200 80 Progress 900 Progress 6
Slide 12: Plan of completed construction; Labor cost of public works
Ⅱ- 2 The plan of completed construction ＜Plan of completed construction＞ ◇Plan for FY3/15 ¥584.0bn（ +7.1% YoY ） Sales of construction Gross profit margin （\billions） 600 ¥584.0bn ¥545.3bn 50% 500 ¥489.5bn 40% 35.2% 400 32.1% 30.3% 30% 300 ¥285.0bn ¥258.1bn Progress Progress Of 1H Progress ¥221.8bn 2
Slide 13: Orders received plan; Reinforcement of 2H operation①
Ⅱ- 3 Orders received plan for FY3/15 ＜Plan of orders received and orders in hand ＞ ◇ Orders received<FY3/15> （¥670bn） ¥630.0bn（ +0.7% YoY ） ◇Orders in hand<FY3/15> ¥799.0bn（ +2.3% YoY ） Orders received Orders in hand ¥780.6bn ¥799.0bn ¥731.2bn ¥654.9bn ¥625.8bn ¥630.0bn ¥335.1bn ¥315.3bn ¥304.9bn Pr
Slide 14: Reinforcement of 2H operation②③
Ⅱ- 5 Reinforcement of 2H 3/15 operation② ２．Hold seminars and consultation of inheritance property nationally Newly-organized company：Daito Mirai Trust Company Limited ＜Service contents＞ ●Inheritance property consulting service ●Real-estate management trust service ＜Business start＞ October 2nd, 2014～
Slide 15: Reinforcement of 2H operation④; Tenancy plan
Ⅱ- 7 Reinforcement of 2H 3/15 operation④ Oct.2014 ４．Serviced rental housing for the aged『Elder Garden』 Sale ●RC apartment / the plan with a day-care facility three-storied ●wooden 2×4 method / all dwelling unit type two-storied （exterior） （exterior） 《Scheme chart》 《fulfilling services by “Care Partn
Slide 16: Increasing responses and enforcing sales
Ⅱ- 9 Increasing responses and enforcing sales １．The measure of increasing responses (inquiries) ①New TV commercials Jul. Feb. 2014～ Aug.～ Nov.～ 2015～ 「Destined mails」 「A lost whale」 「NANMANDABU」 ②Application of SNS Original free stamps《Iiheya Rabbit》 Great Popularity Frequency of stamps Line ranking
Slide 17: Shareholders return
Ⅲ. Shareholders return Ⅲ Buy-back of own share and dividend ■ Return to shareholders of FY 3/14 Buy-back of own Dividend payout ratio share/retirement ５０％ ３０％ Gross return Total ¥27.6bn ＋ Total ¥16.6bn ＝ ８０％ Annual dividend ¥347 （Buy-back of own share completed mid-term 170yen（11/13 paid） in Sep 5th
Slide 18: Topics: Reinforcing construction systems
Ⅳ．Topics Ⅳ- 1 Effort at reinforcing construction systems 【２×４panel production】 Start of enlargement line operations＜2 partner factories＞ Mumazu-city in Shizuoka Our partner panel factories: Started from Jul. 2014 Increase production Mita-city in Hyogo 600 ridges /year Started from Sep. 2014 （annual
Slide 19: Foundation of new power company Daito Energy
Ⅳ- 2 The foundation of new power company “Daito Energy”(PPS) Supply of economical powers to tenants ⇒ ＵＰ of property value ＋ ＵＰ of occupancy convinience 【Photovoltaic facility】 Installation status & power scale The PPS structure of our groups 140 15,000 130 120 13,000 Power scale(MW) 102 Installatio
Slide 20: Non-consolidated statement of income; subsidiaries (construction)
Ⅳ- 1 Non-consolidated statement of income ＜3/2015＞ （¥millions） 1H FY3/15 1H FY3/14 YoY Plan(full-year) Net sales 293,845 266,858 +10.1% 605,800 Construction 285,239 258,311 +10.4% 584,500 Real estate & others 8,606 8,547 +0.7% 21,300 Gross profit 84,377 84,529 △0.2% 174,200 Construction 85,059 85,47
Slide 21: Sales structure of Real estate business
Ⅳ– 3 Sales structure of Real estate business＜3/2015＞ （¥millions） 1H FY3/13 1H FY3/14 1H FY 3/15 Amount （Ratio） Amount （Ratio） Amount （Ratio） YoY Whole-building lease ※1 283,406 (91.5%) 305,521 (92.0%) 327,379 (92.2%) +7.2% Building and repairs ※２ 15,053 (4.8%) 15,097 (4.5%) 14,938 (4.2%) △1.1% Broke
Slide 22: Financial summaries of major subsidiaries (Others)
Ⅳ- 5 Financial summaries of major subsidiaries (Others-1) ＜3/2015＞ （¥millions） Other business （Financial business） Daito Finance D.T.C plan plan 1H FY3/15 1H FY3/14 YoY (full-year) 1H FY3/15 1H FY3/14 YoY (full-year) Net sales 506 486 +4.0% 881 1,509 1,662 △9.2% 3,159 Gross profit 302 292 +3.2% 505
Slide 23: Number of employees; 1H FY3/15 Orders comparison
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 3,000 9,000 2,000 8,000 1,000 7,000 0 6,000 1H FY3/14 1H FY3/15 FY3/15(plan) 1H FY3/14 1H FY3/15 YoY FY3/15(plan) Total employees 9,610 9,994 +
Slide 24: Channels of orders received; Orders by repeat
Ⅳ– 9 Channels of orders received Orders received by Orders received from Repeat & Introduction new customers Nunmber YoY Number YoY Number YoY Number YoY 3,500 3,500 108.7% 120% 120% 106.8% 3,000 99.7% 98.9% 98.8% 3,000 93.7% 94.6% 100% 100% 87.8% 86.3% 2,500 2,336 2,430 2,311 2,401 2,500 2,317 82.0
Slide 25: Number of construction starts & Daito's share
Ⅳ– 11 Number of construction starts & Daito’s share Number of Daito’s share construction starts 160,000 145,520 146,727 30% 130,250 120,000 15.8% 16.4% 16.5% 20% 80,000 10% 40,000 0 0% 8/12 8/13 8/14 Number of construction starts(Apr.-Aug.) Daito's share(Apr.-Aug.) (Ministry (Ministry of Land,ofInfr
Slide 26: Rent basis occupancy rate; Units under management
Ⅳ- 13 Rent basis occupancy rate Rent basis occupancy rate 100% Residential Commercial 98% 96% 94% 92% 90% Sep/10 Mar/11 Sep/11 Mar/12 Sep/12 Mar/13 Sep/13 Mar/14 Sep/14 Rent basis 2010 2011 2012 2013 2014 occupancy rate YoY (Sep.) (Sep.) (Sep.) (Sep.) (Sep.) Residential use (%) 94.5% 96.0% 96.1% 96.
Slide 27: Customer's financing channel
Ⅳ- 15 Customer’s financing channel Shares of financial institutions ( Construction starts basis) 60% Japan Housing 48% Finance Agency Others, 2.1% Agricultural/ 6.9% 36% Fisheries Cooperative 7.1% 24% City banks 12.6% 12% 0% Shinkin banks 15.5% Regional banks FY3/12 FY3/13 FY3/14 1H FY3/15 55.8% Reg
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