Relo Group, Inc. · TSE:8876
Relo — FY2017 Earnings Presentation
66 slides from Relo's earnings presentation, Jun 2, 2017
Slide 1: Investor Presentation
FY2017/3 Relo Group Investor Presentation Jun 2,1 2017
Slide 2: Overview: 17th year of sales growth, 8th year of record profit
Overview 17th Sales consecutive year of Growth 8 th Record consecutive year of Profit 2
Slide 3: Overview
Overview Decline in the working Work style reform population Japanese companies Strengthen recruitment Improvement in Acceleration of of employees productivity overseas expansion Steady Demand for Outsourcing and Fringe Benefits 3
Slide 4: Overview
Overview (Millions of yen) Rounded down to the nearest million yen FY2017/3 FY2016/3 YoY Change Sales 205,117 183,280 + 11.9% Operating profit 13,264 10,840 + 22.4% Recurring profit 14,238 11,854 + 20.1% Net income 9,151 7,158 + 27.8% EPS （yen）* 61.47 49.26 + 24.8% (Note) The company conducted a 1-f
Slide 5: Consolidated Financial Progress
Consolidated Financial Progress Sales ¥205.1 bn YoY change +11.9% Recurring profit ¥14.2 bn YoY change +20.1% The First Olympic Plan The Second Olympic Plan FY2011/3 FY2015/3 FY2017/3 5
Slide 6: Results & Overview by Segment: Domestic Business
Results & Overview by Segment Domestic Business
Slide 7: Domestic Business Segment
Domestic Business Segment Operating profit Sales ¥167.5 bn Operating profit ¥11.9 bn FY2014/3 FY2015/3 FY2016/3 FY2017/3 +21.5% YoY change 7
Slide 8: Domestic Business Segment
Domestic Business Segment Corporate Housing Management Residential Property Management Corporate Fringe Benefits 8
Slide 9: Domestic Relocation Business
Domestic Relocation Business Operating profit Sales ¥148.3 bn Operating profit ¥6.3 bn YoY change +22.1% FY2014/3 FY2015/3 FY2016/3 FY2017/3 9
Slide 10: Corporate Housing Management
Corporate Housing Management Units under management Implementation of social security and tax number system Small and medium-sized competitors withdrawal 144,447units +23.3% YoY change Favorable New Acquisitions FY2011/3 FY2013/3 FY2015/3 FY2017/3 10
Slide 11: Corporate Housing Management
Corporate Housing Management Moving Follow-up call Proposal of service related to Internet 11
Slide 12: Residential Property Management
Residential Property Management Units under management 7 Block Development 4 Companies Joined Relo Group 50,125 units Expanded YoY +16.5％ change the Revenue Base FY2014/3 FY2015/3 FY2016/3 FY2017/3 12
Slide 13: Residential Property Management
Residential Property Management Shinwa Shoji Advance into Kinki Area (Miyagi) Aim for Rollup Housing Mate (Miyagi) Recrea Life Agent (Osaka) Housing Chofu (Tokyo) 13
Slide 14: Residential Property Management
Residential Property Management FY18/3 2 Companies Already Joined Relo Group Artha (Tokyo) Life Fudosan (Fukuoka) 14
Slide 15: Residential Property Management
Residential Property Management Relo Partners, Limited Tokyo Tokyo Tokyo Kanagawa Saitama Chiba Fukuoka Fukuoka Miyagi Miyagi Miyagi TOHTO Group Chofu Housing Artha Bestus Group Daiko Group Fudosan Yoshida Room Group Life fudosan Group Nakamichi Limited Shinwa Shoji, Housing Mate Human Resource Syst
Slide 16: Corporate Fringe Benefits
Corporate Fringe Benefits Operating profit Sales ¥19.1bn Operating profit ¥5.6 bn YoY +21.0% change FY2014/3 FY2015/3 FY2016/3 FY2017/3 16
Slide 17: Corporate Fringe Benefits
Corporate Fringe Benefits Ranked first in number of Fringe benefit members regional menus Advantage in Local Region Fringe benefit program Membership 5.44 mil YoY change +0.51mil FY2014/3 FY2015/3 FY2016/3 FY2017/3 17
Slide 18: Corporate Fringe Benefits
Corporate Fringe Benefits • Analyzation of customer data • Extraction of withdrawal signs in advance Customer satisfaction improvement Prevention of Unsubscription 18
Slide 19: Corporate Fringe Benefits
Corporate Fringe Benefits E-magazine subscribers Number of accommodation menu users YoY change 1.2times 1.64 mil Usage Rate YoY change +8.8% Grow Steadily FY2014/3 FY2015/3 FY2016/3 FY2017/3 19
Slide 20: Corporate Fringe Benefits
Corporate Fringe Benefits Holding financial management seminars for welfare employees Obtaining Commission Income Improvement of Membership Satisfaction 20
Slide 21: Domestic Business FY2018/3 Projection
Domestic Business FY2018/3 Projection Operating profit Sales ¥184.7 bn Operating profit ¥13.9 bn +16.1% YoY change FY2015/3 FY2016/3 FY2017/3 FY2018/3 21
Slide 22: Results & Overview by Segment: Global Business
Results & Overview by Segment Global Business
Slide 23: Global Business
Global Business Operating profit Sales ¥33.6 bn Operating profit ¥2.5 bn +20.5% YoY change FY2014/3 FY2015/3 FY2016/3 FY2017/3 23
Slide 24: Global Relocation Support
Global Relocation Support Completed global relocation support cases •US presidential election •BREXIT Increase in Cost Consciousness 5,415 households +4.6% YoY change FY2014/3 FY2015/3 FY2016/3 FY2017/3 24
Slide 25: Global Relocation Support
Global Relocation Support Decline in the working population in Japan Increasing Number of Foreign Employee Acceptance Support Manufacturing industry Retail industry Acceptance of skills trainees Recruitment of sales staff for tourist 25
Slide 26: Global Relocation Support
Global Relocation Support Number of RELO-AIRINC indices sold Number of RELO-AIRINC indices sold YoY change +49.9% FY2014/3 FY2015/3 FY2016/3 FY2017/3 26
Slide 27: Global Destination Support
Global Destination Support ・Started in 1954 with a group of Harvard and MIT professors ・Industry pioneer with establishment 50 years ・Transactions with 60 companies of Fortune100 ・High continuity business in 85% of Sales ・Transactions with many relocation companies 27
Slide 28: Global Destination Support
Global Destination Support • Housing brokerage mainly in North America • Service apartment operation US Presidential Election Relocation Stagnation BREXIT within USA 28
Slide 29: Global Destination Support
Global Destination Support Dallas Aggressive business attraction East coast Increase of relocation person engaged in medicine industry San Francisco Detroit Boston Chicago SJ Westchester NY NJ LA Irvine Dallas 29
Slide 30: Global Destination Support
Global Destination Support Number of housing brokerages 1,856 units YoY change +1.3% Number of corporate housing under management 2,901units YoY change +13.1% Number of sales Asset model 76cases YoY change +43.4% Operation of serviced apartment Occupancy rate 78.5% 30
Slide 31: Global Business FY2018/3 Projection
Global Business FY2018/3 Projection Operating profit Sales ¥37.0 bn Operating profit ¥2.9 bn +15.3% YoY change FY2015/3 FY2016/3 FY2017/3 FY2018/3 31
Slide 32: Projection for FY2018/3
Projection for FY2018/3
Slide 33: Consolidated Financial Projection for FY2018/3
Consolidated Financial Projection for FY2018/3 (Millions of yen) Rounded down to the nearest million yen FY2017/3 FY2018/3(P) YoY Change Operating revenue 205,117 226,000 +10.2% Operating profit 13,264 15,500 +16.9% Recurring profit 14,239 16,500 +15.9% Net profit 9,151 10,500 +14.7% EPS （yen） 61.62
Slide 34: Dividends Projection
Dividends Projection 15 consecutive year of th ¥21 dividend increase Dividend amount (Yen/Share) ¥0.75 FY2003/3 FY2005/3 FY2007/3 FY2009/3 FY2011/3 FY2013/3 FY2015/3 FY2017/3 34
Slide 35: Consolidated Balance Sheet, March 2017
2017年3月期末 連結BS (Millions of yen) (Millions of yen) Assets Rounded down to nearest million yen Total liabilities and net assets Rounded down to nearest million yen FY2017/3 FY2016/3 Change FY2017/3 FY2016/3 Change Current assets 56,580 46,442 +10,138 Current liabilities 45,720 35,907 +9,813 Cash and
Slide 36: Consolidated Cash Flow, March 2017
2017年3月期末 連結CF (Millions of yen) Statements of Cash Flow Rounded down to the nearest million yen FY2017/3 FY2016/3 Change Net cash provided by (used in) operating activities 1,023 3,993 (2,970) Income before income taxes and minority interests 13,587 11,172 2,415 Depreciation and amortization 908 81
Slide 37: Investor Presentation FY2017/3
FY2017/3 Relo Group Investor Presentation Jun 2, 37 2017
Slide 38: FY2017/3 Summary: Profit growth of more than 20%
FY2017/3 Summary Profit growth Of more than 20% A new step for the next 50 years 38
Slide 39: AIRINC joined Relo Group
FY2017/3 Summary AIRINC joined RELO Group Started Managing the Global Company 39
Slide 40: Mission and Vision
FY2017/3 Summary Our Mission Support the non-core businesses for people working in the world to help enable them to perform to their full potential Our Vision The Top Global Relocation Company 40
Slide 41: Growth of the Role for Global Companies
FY2017/3 Summary Attracting global companies in countries and regions around the world Creating employment and middle classes Correcting disparity Growth of the Role for the Global Companies 41
Slide 42: Let's Create the World's Largest Group!
FY2017/3 Summary Solving all the problems associated with the movement of people in global companies Let’s Create the World's Largest Group! 42
Slide 43: The Second Start-Up
The Second Start-Up The Second Start-up Stage Second half started The Global Start-up Stage The Second Start-up Stage The First The Second The Third Olympic Plan Olympic Plan Olympic Plan FY2012/3 ~FY2015/3 ~FY2019/3 ~FY2023/3 43
Slide 44: The Second Start-Up
The Second Start-Up Top of Profit Scale & Share at Main Business Strengthen domestic management base The Global Start-up Stage The Second Start-up Stage The First The Second The Third Olympic Plan Olympic Plan Olympic Plan FY2012/3 ~FY2015/3 ~FY2019/3 ~FY2023/3 44
Slide 45: Progress of The Second Olympic Plan
Progress of The Second Olympic Plan FY2019/3 Plan Recurring profit ¥20.0 bn Going smoothly Plan Segment FY15/3 FY19/3 Corporate Housing Management ¥3.3bn ¥5.0bn As planed ¥1.3bn ¥4.7bn Residential Property Management Uncertainty of M&A Corporate Fringe Benefits ¥4.0bn ¥6.8bn Beyond the plan Unsatisf
Slide 46: Corporate Housing Management
Corporate Housing Management The Second Olympic Plan FY15/3 FY19/3 Plan Operating profit ¥3.3 bn ¥5.0 bn 200K units Units under management 100K units Units under management 144,447units FY2011/3 FY2013/3 FY2015/3 FY2017/3 46
Slide 47: Corporate Housing Management
Corporate Housing Management Increase the number of approaches Increase of with brokerage as front products Management Units Management Corporate Housing Management Dormitory / Corporate Housing Brokerage Relocation Corporation Relo Estate Japan 47
Slide 48: Corporate Housing Management
Corporate Housing Management IT Investment Improve Operation Improve Usability of Efficiency Relo-Net Improve Increase Profit Margin Commission Income Increase Profit 48
Slide 49: Residential Property Management
Corporate Housing Management The Second Olympic Plan FY15/3 FY19/3 Plan Operating profit ¥1.2 bn ¥4.7 bn Rising trend for prices of large projects Delay in Progress of M&A 49
Slide 50: Residential Property Management
Residential Property Management Operating profit Existing companies Existing Company Daikou & Room & Yoshida Fudosan New Company with Group Big Growth of 11/3期 13/3期 15/3期 17/3期 both Existing Proceed with M&A Centered and New on SMEs 50
Slide 51: Residential Property Management
Residential Property Management Recurring profit Target ¥4.7bn Companies acquired during FY19/3 Companies acquired during FY18/3 Companies acquired during FY16-17/3 Companies acquired during FY15/3 1.2bn 0.4bn FY2011/3 FY2013/3 FY2015/3 FY2017/3 FY2019/3 51
Slide 52: Residential Property Management
Residential Property Management SMEs founder owner Having a business succession issue Increasing consultation number mainly in local regions Catch up with the Residential Property Management Business Plan 52
Slide 53: Residential Property Management
Residential Property Management The Start of a Brand Strategy 53
Slide 54: Corporate Fringe Benefits
Corporate Fringe Benefits The Second Olympic Plan FY15/3 FY19/3 Plan Operating profit ¥4.0 bn ¥6.8 bn Improve Competitiveness by IT Investment Increase Contracting of SMEs and Local Companies 54
Slide 55: Corporate Fringe Benefits
Corporate Fringe Benefits Growth pace of present Improve operation efficiency by IT investment Hotel Management Business 55
Slide 56: Corporate Fringe Benefits
Corporate Fringe Benefits Units under management Management consignment Possession Management Basis Expansion FY2010/3 FY2012/3 FY2014/3 FY2016/3 Steadily Expanding Hotel Management Business 56
Slide 57: Global Business
Global Business The Second Olympic Plan FY15/3 FY19/3 Plan Operating profit ¥1.5 bn ¥4.0 bn Present issues: Low outsourcing rate of large companies Prospect for accelerating outsourcing against the backdrop of operation efficiency and shortage of workers 57
Slide 58: Global Business
Global Business Front-End Products Pre-Assignment Visa RELO-AIRINC BTM Training Application Index Services Arrangement Support etc.. Strengthening Proposal of Full Services Aiming to Expand Contracting from Existing Customers 58
Slide 59: Global Business
Global Business Relocation Relo Panasonic International New company Excel International Strength: Strength: Acquisition of Expand contracting new clients from Relo existing customers Global Excel External Relocation International sales Support Division Aim for the Potential of Upsell Earning New Pro
Slide 60: Global Business
Global Business Increase Business Opportunities by Expanding Asset Model Area Delegate management Investor Sell house Purchase price Tenant Purchase house placement Rent 60
Slide 61: Global Business
Global Business Visualization of Various Operation Investments Expansion of Transactions with Global Companies Achievement of Plan by Increase Revenue 61
Slide 62: Cross Sell
Cross Sell <Case study> Director in charge of cross cell Insurance Cost reduction of corporate housing review management Corporate Housing Corporate Fringe Global Business Management Benefits Introduce Corporate Fringe Benefits Service Strengthen Sales with Comprehensive Capabilities 62
Slide 63: Forecast of The Second Olympic Plan
Forecast of The Second Olympic Plan FY2019/3 Plan Recurring profit ¥20.0 bn Achievable Plan Segment FY15/3 FY19/3 ¥3.3bn ¥5.0bn As planed Corporate Housing Management Residential Property Management ¥1.3bn ¥4.7bn Catch-up Corporate Fringe Benefits ¥4.0bn ¥6.8bn Beyond the plan Global Business ¥1.5bn
Slide 64: Strengthening Domestic Business, Accelerate Global Expansion
Strengthening Domestic Business Accelerate Global Expansion A Top of Global Relocation Company 64
Slide 65: Contact
Contact Planning and IR Group, Relo Group, Inc. TEL: 03-5312-8704 E-Mail: ir@relo.jp URL : http://www.relo.jp/ The information on this material is provided for informational purposes and should not be construed as a solicitation of an investment in our securities. This material was made based on cur
Slide 66: Relo Group
/) RELO GROUP (Ce: