Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — H1 FY2008 Earnings Presentation
28 slides from Daito Trust Construction's earnings presentation, November 2007
Slide 1: Interim Financial Highlights, Year ending March 2008
Interim Financial Highlights, Year ending March 2008 Index I． Interim Financial Results, Year ending March 2008・・・・・・・・・・ 3 II． Orders Received and Tenant Recruitment・・・・・・・・・・・・・・・・・ 15 III．Second-half and Full-year Forecast・・・・・・・・・・・・・・・・・・・・・・ 27 IV．Group Companies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Slide 2: I-1 Income summary
I. Interim Financial Results, Year ending March 2008 I-1 Income summary ◇We attained higher results than our plan released in September 6th. Net sales Operating income (billions of yen) (billions of yen) 400 ¥253.7 bln 50 ¥25.1 bln +5.4% year on year 300 -5.8 bln from plan 40 -7.6% year on year 228.
Slide 3: Non-consolidated income statements; Construction segment summary
I-2 Non-consolidated statements of income millions of yen Interim Interim year on year FY2007 FY2006 Net sales 224,298 223,607 +0.3% Construction 185,355 180,498 +2.7% Non-consolidated building Real estate & other 38,942 43,108 -9.7% management service was decreased because Daito Gross profit 62,895
Slide 4: Major subsidiaries (Construction); Real Estate segment summary
I-4 Financial summaries of major subsidiaries（Construction） millions of yen Construction business Daito Construction Daito Steel Interim Interim Year on Interim Interim Year on FY2007 FY2006 year FY2007 FY2006 year Net sales 6,184 3,753 +64.8% 1,048 711 +47.4% Gross profit 200 461 -56.6% 67 28 +139.
Slide 5: Major subsidiaries (Real estate); Others segment summary
I-6 Financial summaries of major subsidiaries （Real estate） millions of yen Real estate business Daito Building Shanghai Daito Trust Housecome Management Construction Interim Interim Year on Interim Interim Year on Interim Interim Year on FY2007 FY2006 year FY2007 FY2006 year FY2007 FY2006 year Net
Slide 6: Major subsidiaries (Other); SG&A expenses
I-8 Financial summaries of major subsidiaries （Other） millions of yen Other business Daito Asia Daito Kyosaikai Care Partner Gaspal Development (Malaysia) Interim Interim year on Interim Interim year on Interim Interim year on Interim Interim year on FY2007 FY2006 year FY2007 FY2006 Year FY2007 FY20
Slide 7: I-10 Financial Condition; I-11 Cash flows
I-10 Financial Condition End of interim period End of last fiscal year billions of yen Current 148.3 Current 174.2 liabilities （-25.9） liabilities Current 303.4 Long-term 26.6 Current 320.6 Long-term assets （-17.1） liabilities （+2.6） assets 23.9 liabilities Total 174.9 Total liabilities （-23.2） liab
Slide 8: II. Orders Received and Tenant Recruitment
II. Orders Received and Tenant Recruitment II-1 Orders received (non-consolidated) ◇Orders received ¥234.0 billion （+6.2%, year on year） Orders received Average contract value (billions of yen) (millions of yen) 250 \234.0 120 220.2 203.8 200 100 150 83.45 \82.77 80.91 100 80 50 0 60 05/9 06/9 07/9
Slide 9: Upward trend of orders received; Sales efficiency
II-2 Upward trend of orders received (non-consolidated) Orders received Year on year ratio (billions of yen) 70 140.0% 60 120.0% 50 100.0% 40 80.0% 30 60.0% 20 40.0% 10 20.0% 0 0.0% Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. FY2005 2nd half FY2006 FY2007 1st half FY2006 2nd half: Yea
Slide 10: Orders received by regional blocks; Trend of repeat orders
II-4 Orders received (non-consolidated) by regional blocks Orders received (billions of yen) 80 100% 80% 60 64.5 52.1% 60% 33.2% 40% Company 19.7% 18.1% Average (49.1) 20% 6.2% 31.2% 40 18.6% -5.8% -8.4% 0% -10.4% 33.6 34.5 -20% (-10.5%) 31.3 -40% 20 18.2 18.0 -60% 15.4 14.0 -80% 0 4.0 -100% n) io a
Slide 11: Number of tenants recruited; e-Heya Net
II-6 Number of tenant recruited Number of tenant recruited: 70,294 +7.4%, year on year Number of recruited tenants 80,000 70,294 65,448 59,203 60,000 40,000 20,000 0 05/9 06/9 07/9 21 II-7 Number of tenant recruited through online lease brokerage site “e-Heya Net” Number of response through online l
Slide 12: Kyosaikai occupancy rate
II-8 Kyosaikai occupancy rate (comparisons of the end of September) Residential property (Sep.): 95.86% -0.46 point, year on year Commercial property (Sep.): 95.45% -0.08 point, year on year Occupancy rate 100% 96.53% 95.06% 96.31% 95.53% 95.86% 95.45% 90% 80% 70% 60% 50% 05/9 06/9 07/9※ Residential
Slide 13: Regional occupancy rate (residential properties)
II-10 Regional occupancy rate (residential properties) 100% 97.6% 96.1% 95.7% 95.9% 94.5% 98.0% Company 94.6% 96.4% 95.1% 94.4% 96.6% 95% 94.1% 96.5% 96.1% 96.3% Average 95.7% 95.3% 95.9% 94.7% 90% 85% 80% 75% 70% u ku hu ku o ku ki i o ka ts nt id n ho ko go us ne To Ki Ka ka To i Ky hu Sh hi ok s
Slide 14: III. Second-half and Full-year Forecast
III. Second-half and Full-year Forecast III–1 Forecast for the year ending March 2008 No change in the initial plan Net sales Operating income (billions of yen) (billions of yen) 800 ¥664.1bln 100 ¥72.7bln +17.7% year on year +0.1% year on year 564.3 80 72.6 600 538.6 63.7 60 400 40 200 20 0 0 06/3
Slide 15: Plan for 2nd half; Orders received in 2nd half
III-2 Plan for 2nd half of current fiscal year 1．Orders nd 1．Ordersreceived receivedof of22ndhalf halfand andend-year end-yearorder orderbacklog backlog 2．Strategies 2．Strategiesfor forimprovement ofend-year improvementof end-yearoccupancy occupancyrate rate 3．Impact 3．Impactof ofRevised RevisedBuil
Slide 16: Forecast of end-year orders backlog; Strategy for occupancy rate
III-4 Forecast of end-year orders backlog Increase the amount of orders backlog (billions of yen) 600 Orders backlog hovered 500 at near-record level of 400 445.9 471.9 468.9 ¥471.9 bln of fiscal year 442.5 \ 4 6 7 .5 ended March 2005! 300 200 100 0 04/3 05/3 06/3 07/3 08/3 (plan) Orders backlog at
Slide 17: Impact of Revised Building Standard Law of Japan
III-6 Impact of Revised Building Standard Law of Japan (application procedure for screening has been amended) 「Revised Building Standard Law」 Law」started on 20th June. Screening by structural calculation inspection agency became necessary when the builders applied for an approval of construction pla
Slide 18: Measures for making up for ¥10 bln deficit of building completion
III-8 Measures for making up for ¥10 bln deficit of building completion ① ①Promoting Promotingto tocomplete completeconstruction constructionin inthis this current fiscal year current fiscal year (Buildings (Buildingsordered orderedininOctober Octoberand andNovember) November) ②Moving ②Movingforward
Slide 19: IV. Group Companies: Shift to whole-building leasing
IV. Group Companies IV-1 Shift to whole-building leasing September September 2007 2007 February February 2008 2008 April April 2008 2008 Start Start shifting shifting contract contract Kyosai Kyosai to to Whole-bldg. Whole-bldg. lease lease Daito Daito Building Building Management Management 99.6% 9
Slide 20: Change of sales composition; Care Partner status
IV-2 Change of sales composition of each company caused by transition of existing Kyosaikai units to whole-building lease Year ending March 2007: Change of sales Before After Daito Trust Daito Building Daito Daito Trust Daito Building Daito Construction Management Kyosaikai Construction Management K
Slide 21: Gaspal status; Malaysia hotel operation rate
IV-4 Gaspal - Present status and full-year income forecast Trend of LP Gas demand (supplying units） 30,000 Turn to profitability Feb. 2006：Business-suspension Supply: 125,585 units in next fiscal year 25,000 by increasing supply Aug. 2006： Business restart Supply in Sep. 2007： 20,000 17,326 units In
Slide 22: V. Topics: Future expansion and major issues
V. Topics V-1 Future expansion and major issues 1. Further reinforcement & development of construction sales . Strengthening of tenant recruitment for Lease Management Trust System . Expansion to related business 44
Slide 23: Major issues: construction sales; tenant recruitment
V-2 Major issue ① Further reinforcement & development of construction sales 45 V-3 Major issue ② Strengthening of tenant recruitment for Lease Management Trust System 46
Slide 24: Major issue ③ Expansion to related business
V-4 Major issue ③ Expansion to related business 47
Slide 25: VI. Appendix: Trend of number of employees
VI. Appendix VI-1 Trend of number of employees by each profession（non-consolidated） Construction sales Engineers Tenant recruit Total employees (right axis) 5,000 10,000 4,000 8,000 3,000 6,000 2,000 4,000 1,000 2,000 0 0 06/9 07/9 08/3（est） 06/9 07/9 Year on year 08/3 (est) Total employees 7,430 8,
Slide 26: Market share trend & number of construction starts
VI-2 Market share trend & number of construction starts Lease housing starts 300,000 20% 250,000 227,181 213,083 15% 194,829 200,000 9.1% 150,000 8.1% 7.5% 10% 100,000 5% 50,000 0 0% 05/8 06/8 07/8 Lease housing starts (Apr.-Aug.) Daito's share (Apr.-Aug.) The Ministry of Internal Affairs and Commun
Slide 27: Real estate business sales composition; units under management
VI-4 Real estate business – sales composition millions of yen 05/9 06/9 07/9 Amount （Ratio） Amount （Ratio） Amount （Ratio） year on year Brokerage 4,265 (9.7%) 4,782 (10.4%) 5,077 (9.6%) +6.2% Management Service 16,927 (38.6%) 19,147 (41.6%) 17,132 (32.4%) -10.5% Sub-lease ※１ 17,625 (40.2%) 17,088 (37
Slide 28: Diversifying fund-raising channels
V-6 Diversifying fund-raising channels Fund-raising by financial institution (construction start basis) 40% 35% 30% Japan Housing Other Finance Agency※ (3.9%) 25% (11.7%) 20% Regional Banks Securitization (34.5%) 15% (7.7%) 10% Agricultural Cooperatives 5% (8.3%) 0% 05/3 06/3 07/3 07/9 Shinkin Banks
Daito Trust Construction — H1 FY2008 Earnings Presentation on 6ix