Meiwa Estate Co. Ltd. · TSE:8869
Meiwa Estate — H1 FY03/23 Earnings Presentation
65 slides from Meiwa Estate's earnings presentation, Nov 15, 2022
Slide 1: Financial Results for 1H FY03/23
MEIWA ESTATE Co., Ltd. (8869) Financial Results for 1H FY03/23 November 15, 2022
Slide 2: Table of Contents
Table of Contents Summary of Consolidated Financial Results for 1H FY03/23 P.02 Consolidated Financial Results P.03 Residential Development Business P.08 Real Estate Agency Business P.20 Condominium Management Business P.25 Progress of Five-Year Strategy P.32 Compliance with Continued
Slide 3: Summary of Consolidated Financial Results for 1H FY03/23
Summary of Consolidated Financial Results for 1H FY03/23 In 1H FY03/23, consolidated net sales and profits declined YoY. (This is because the delivery of newly built condominiums is concentrated in Q4 in this fiscal year’s plan). No change has been made to the full-year plan for FY03/23. We expe
Slide 4: Consolidated Financial Results
Consolidated Financial Results
Slide 5: Consolidated Financial Results
Consolidated Financial Results Financial Results for 1H FY03/23 (Consolidated) Due to the concentration of condominium deliveries in Q4, Q2 net sales and profits declined YoY. Net sales: ¥17.6 billion (down ¥6.1 billion YoY) Operating profit: ¥70 million (down ¥1.0 billion YoY) Ordinary loss: ¥0.5
Slide 6: Consolidated Financial Results
Consolidated Financial Results Net sales: ¥17.6 billion (down ¥6.1 billion YoY) Operating profit: ¥70 million (down ¥1.0 billion YoY), Ordinary loss: ¥0.5 billion (down ¥1.2 billion YoY) (Millions of yen) (Millions of yen) Full-year 1H FY03/22 1H FY03/23 Change FY03/23 forecast Progress Change C
Slide 7: Factors Behind Change in Net Sales
Factors Behind Change in Net Sales This fiscal year, condominium completions and deliveries are concentrated in Q4. As a result, both net sales and profits declined YoY in 1H Analysis of factors behind change in net sales Positive Negative (Millions of yen) change change 23,801 Wealth Solution (en
Slide 8: Composition of Net Sales
Composition of Net Sales Composition of consolidated net sales by segment Leasing and (Millions of yen) Related Others 528 155 (3.0%) (0.9%) Condominium Management 2,639 (14.9%) Residential WS 2,062 FY03/23Q2 Development 9,182 (11.7%) 17,684 (51.9%) Real Estate Agency 2,828 (16.0%) Condominium *Cond
Slide 9: Residential Development Business
Residential Development Business
Slide 10: Residential Development Business
Residential Development Business Purchases: ¥41.5 billion (up 37.7％ YoY) Secured ¥180.0 billion worth of properties that will contribute to net sales from Q3 onward. Supply: ¥30.4 billion (up 40.8％ YoY) Steady progress in the supply of properties scheduled to be recorded as net sales from FY
Slide 11: Ref.: Leading Sales Indicators (KPIs) for the Residential Development Business
Ref.: Leading Sales Indicators (KPIs) for the Residential Development Business KPIs are defined as follows. Land purchase Start sales Completion/ Sales contracts contracts (construction permit granted) delivery Purchases Supply Sales Contracts Net Sales Planned sales amount at Sales value of Amoun
Slide 12: Residential Development: Progress Against Full-Year Net Sales Plan (1)
Residential Development Business: Purchases Supply Contracts Net Sales Progress Against Full-Year Net Sales Plan (1) Sales contracts at the end of Q2 amounted to 101% of the full-year net sales forecast Net Sales *Only for new condominiums (Millions of yen) 101% of forecast as Plan of the end- Pla
Slide 13: Residential Development: Progress Against Full-Year Net Sales Plan (2)
Residential Development Business: Purchases Supply Contracts Net Sales Progress Against Full-Year Net Sales Plan (2) Full-year net sales are projected at ¥450.0 billion (up 19% YoY) Net Sales *Only for new condominiums Recorded Contract (Millions of yen) as net sales concluded +19.3% 45,508 Initia
Slide 14: Residential Development Business: Purchases
Residential Development Business: Purchases Supply Contracts Net Sales Purchases Purchases in 1H were strong at ¥41.5 billion (up 37% YoY) *Only for new condominiums Purchases *Based on planned sales price (Millions of yen) +37.7% 41,572 30,187 Q2 27,747 Q2 21,269 Q1 Q1 13,824 8,917 FY03/22 FY03/2
Slide 15: Residential Development Business: Supply
Residential Development Business: Supply Purchases Supply Contracts Net Sales Supply was strong in 1H amounting to ¥30.4 billion (+40.8% YoY) *Only for new condominiums Supply *Based on planned sales price (Millions of yen) +40.8% 30,407 21,596 Q2 18,328 Q2 11,220 Q1 Q1 10,376 12,079 FY03/22 FY03/
Slide 16: Residential Development Business: Properties Supplied in Q2
Residential Development Business: Purchases Supply Contracts Net Sales Properties Supplied in Q2 Kawasaki, Kanagawa Kawaguchi, Saitama Total number of units: 95 Total number of units: 91 Sales launched in July 2022 Sales launched in September 2022 Scheduled to be completed in February 2024 Scheduled
Slide 17: Residential Development Business: Properties Supplied in Q2
Residential Development Business: Purchases Supply Contracts Net Sales Properties Supplied in Q2 Yokohama, Kanagawa Yokohama, Kanagawa Total number of units: 51 Total number of units: 40 Sales launched in September 2022 Sales launched in September 2022 Scheduled to be completed in March 2024 Schedul
Slide 18: Residential Development Business: Properties Supplied in Q2
Residential Development Business: Purchases Supply Contracts Net Sales Properties Supplied in Q2 Fukuoka, Fukuoka Total number of units: 42 Sales launched in September 2022 Scheduled to be completed in March 2024 Copyright © MEIWA ESTATE Co., Ltd. All rights reserved.
Slide 19: Residential Development Business: Sales Contracts
Residential Development Business: Purchases Supply Contracts Net Sales Sales Contracts Sales Contracts in 1H were strong amounting to ¥26.9 billion (+32.7% YoY) *Only for new condominiums Sales Contracts *Based on contract price (Millions of yen) +32.7% 26,986 20,341 Q2 14,995 Q2 11,033 Q1 Q1 11,9
Slide 20: Residential Development Business: Completed Inventory
Residential Development Business: Completed Inventory Completed inventory at the end of Q2 decreased to 14 units Completed inventory *Only for new condominiums -74.1％ 54units 14units As of end-FY03/22 As of end-Q2 FY03/23 Copyright © MEIWA ESTATE Co., Ltd. All rights reserved.
Slide 21: Real Estate Agency Business
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Slide 22: Real Estate Agency Business
Real Estate Agency Business The purchase and resale business continued to grow at a CAGR of 43% Sales: ¥2.4 billion (+24% YoY) The brokerage business continued to grow at a CAGR of 23% Sales: ¥360 million (+12% YoY) In the wealth solution business for high net worth (HNW) individuals, the
Slide 23: Real Estate Agency Business: Purchase and Resale
Real Estate Agency Business: Purchase and Resale Net Sales in 1H expanded to ¥2.4 billion at a CAGR of 43.7% Net Sales (Millions of yen) 2,464 +43.7% 1,857 Q2 1,232 Q2 683 1,193 Q2 753 Q1 Q1 1,173 1,231 Q1 439 FY03/21 FY03/22 FY03/23 *CAGR: Compound annual growth rate Copyright © MEIWA ESTATE Co.,
Slide 24: Real Estate Agency Business: Brokerage
Real Estate Agency Business: Brokerage Net Sales in 1H expanded to ¥363 million at a CAGR of 23.0% Net Sales (fees) (Millions of yen) +23.0% 363 318 Q2 241 Q2 165 169 Q2 119 Q1 Q1 198 Q1 149 121 FY03/21 FY03/22 FY03/23 *CAGR: Compound annual growth rate Copyright © MEIWA ESTATE Co., Ltd. All right
Slide 25: Real Estate Agency Business: Wealth Solution (Entire Condominium for Sale)
Real Estate Agency Business: Wealth Solution (Entire Condominium for Sale) Settlement and delivery of two buildings were completed in Q2 CLIO la belle vie RYOGOKU CLIO la belle vie HANANOKI Total number of units: 35 Total number of units: 28 Sumida, Tokyo Nagoya, Aichi Copyright © MEIWA ESTATE Co.
Slide 26: Condominium Management Business
Condominium Management Business
Slide 27: Condominium Management Business
Condominium Management Business Maintained high customer satisfaction Significant increase in switchovers of condominiums managed by other companies (+888% YoY) Number of units under management as of the end of Q2: 43,963 Net Sales remained strong Copyright © MEIWA ESTATE Co., Ltd. All right
Slide 28: Condominium Management Business
Condominium Management Business MEIWA KANRI has achieved a high level of customer satisfaction Won the SUUMO AWARD 2022 Highly rated in Oricon Customer Excellence Award Satisfaction Ranking Copyright © MEIWA ESTATE Co., Ltd. All rights reserved.
Slide 29: Condominium Management Business: Sales
Condominium Management Business: Sales Net Sales for 1H were ¥2.6 billion Net Sales (Millions of yen) Full-year Full-year plan Full-year Full-year Full-year 5,200 4,910 5,040 4,815 4,819 Q4 Q4 Q4 Q4 1,263 1,228 1,322 1,374 Q3 Q3 Q3 Q3 1,117 1,101 1,241 1,273 Q2 Q2 Q2 Q2 Q2 1H 1,218 1,299 1,353 1,2
Slide 30: Condominium Management Business: No. of Units Under Management
Condominium Management Business: No. of Units Under Management The number of units under management increased to 43,963 as of the end of Q2 No. of units under management 45,000 units Plan 43,471 units 42,676 units 42,230 units end-Q2 41,449 units 43,963 units End-FY03/19 End-FY03/20 End-FY03/21 En
Slide 31: Condominium Management Business: New Management Contracts
Condominium Management Business: New Management Contracts The number of new management contracts expanded No. of units under new management contracts Change in new management contract units +132% +38% Full-year target 636 units 2,300 units Q2 462 units 171 units Q2 1,230 units Q3 onward 154 units
Slide 32: Condominium Management Business: New Management Contracts
Condominium Management Business: New Management Contracts Number of condominiums switching from other management companies increased (9x YoY) No. of units under new management contract (1H) Change in new management contract units Own condominiums (CLIO condominiums) Own condominiums (CLIO condomin
Slide 33: Progress of Five-Year Strategy
Progress of Five-Year Strategy
Slide 34: Summary of the Five-Year Strategy: Basic Policies
Summary of the Five-Year Strategy : Basic Policies The basic policies of the Five-Year Strategy are as follows Strengthen core businesses and expand new business areas Achieve steady business expansion by further strengthening core businesses Expand business portfolio by entering new business
Slide 35: Summary of the Five-Year Strategy: Performance Targets (Consolidated)
Summary of the Five-Year Strategy : Performance Targets (Consolidated) We aim to achieve net sales of ¥100 billion and ordinary profit of ¥6 billion in FY03/27, the final year of the Five-Year Strategy (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Net sales 59 74 84 90 100 Residential
Slide 36: Progress of Residential Development Business
Progress of Residential Development Business We expect to achieve the FY03/23 plan Steady progress is being made in the sale of condominiums that will be recorded as sales in FY03/24 (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Plan Net Sales (Residential 45 55 60 63 66 Development)
Slide 37: Progress of Residential Development Business
Progress of Residential Development Business Steady progress is being made in securing properties for net sale (i.e., purchases) Already secured properties for net sale through FY03/25 (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Plan Net Sales (Residential 45 55 60 63 66 Developmen
Slide 38: Progress of Residential Development Business
Progress of Residential Development Business Completed inventory at the end of Q2 was low at 14 units Completed inventory (units) *Only for new condominiums -74.1％ 54units 14units As of the end-FY03/22 As of the end-Q2 FY03/23 Copyright © MEIWA ESTATE Co., Ltd. All rights reserved.
Slide 39: Completed Inventory
Completed Inventory We strive to sell out inventory as soon as possible, so our completed inventory is small Change in Completed inventory (completed but not contracted units) *Based on planned sales price (Millions of yen) 5,176 Sales slowed from the beginning of 2020 due to growing concerns abou
Slide 40: Progress of Real Estate Agency Business: Purchase and Resale
Progress of Real Estate Agency Business: Purchase and Resale Net sales of Purchase and resale are progressing as planned As of 1H FY03/23, sales including properties under contract have reached 51% of the full-year plan (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Net Sales (Real Es
Slide 41: Progress of Real Estate Agency Business: Purchase and Resale
Progress of Real Estate Agency Business: Purchase and Resale We have already secured the properties required to meet our sales plan for FY03/23 (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Net sales (Real Estate 8.0 10.0 12.0 15.0 18.0 Plan Agency) Purchase and Resale 6.4 8.3 10.5 13.
Slide 42: Progress of Real Estate Agency Business: Purchase and Resale
Progress of Real Estate Agency Business: Purchase and Resale In April 2022, we formed a team dedicated to purchasing in order to strengthen our purchasing activities In 1H FY03/23, the number of units purchased increased by 43.3% YoY Units purchased Purchase and Resale Business +43.3% Number of
Slide 43: Progress of Real Estate Agency Business: Brokerage
Progress of Real Estate Agency Business: Brokerage Net Sales are progressing as planned Net Sales reached 60% of the full-year target as of 1H FY03/23 (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Net Sales (Real 8.0 10.0 12.0 15.0 18.0 Estate Agency) Plan Brokerage 0.6 0.7 0.8 0.9 1
Slide 44: Progress of Real Estate Agency Business
Progress of Real Estate Agency Business We are opening new stores and expanding our workforce (as of March 31, 2022) (as of September 30, 2022) No. of stores July 2022: Newly opened Fukuoka store 9 stores 11 stores August 2022: Newly opened Nagoya store August 2022: Expanded and relocated the Ueno
Slide 45: Progress of Condominium Management Business
Progress of Condominium Management Business Net Sales are progressing as planned Net Sales reached 50% of the full-year target as of 1H FY03/23 (Billions of yen) FY03/23 FY03/24 FY03/25 FY03/26 FY03/27 Net Sales 5.2 5.3 5.5 5.6 5.8 Plan No.of units under 45,000 47,000 49,000 51,000 53,000 manage
Slide 46: Compliance with Continued Listing Criteria (Prime Market)
Compliance with Continued Listing Criteria (Prime Market)
Slide 47: Sustainability
Sustainability We will continue to develop eco-friendly housing and ZEH condominiums. Eco-friendly Eco-friendly Eco-friendly Low-carbon Eco-friendly Low-carbon housing housing housing building housing building CLIO HEIWADAI CLIO YOKOHAMA MITSUZAWA CLIO YOKOHAMA TSUNASHIMA CLIO YOKOHAMA TSUNASHIMA
Slide 48: Sustainability
Sustainability We formed a Sustainability Committee in April 2022 With this, we have established a structure to promote sustainability Sustainability Committee Structure Sustainability Committee Meetings Held Audit & Supervisory Number of times held: 7 (April 1, 2022 - October 31, 2022) Supervis
Slide 49: Sustainability
Sustainability In June 2022, we formulated our Sustainability Policy Basic Sustainability Policy We, the MEIWA ESTATE Group, aim to realize a sustainable society together with our own growth based on trust, co-creation, and empathy, which are the foundations of our corporate philosophy. To this en
Slide 50: Response to Corporate Governance Code
Response to Corporate Governance Code We are continuing to work to raise governance standards The following is an update on the status of our efforts Main items we addressed Status of compliance with Corporate Governance Code (*includes some items we plan to address) Explained 8% • Establish pro
Slide 51: English Disclosures
English Disclosures Launched our English website in November 2022 Began disclosing financial statements and other information in English URL：https://www.meiwajisyo.co.jp/corp/ir/index_en.html Copyright © MEIWA ESTATE Co., Ltd. All rights reserved.
Slide 52: Compliance with Continued Listing Criteria (Prime Market)
Compliance with Continued Listing Criteria ( Prime Market ) Our compliance status as of September 30, 2022 is as follows No. of No. of tradable Total market Ratio of Daily avg. shareholders shares value of tradable shares trading value (units) tradable shares (millions of (billions of yen) yen) Co
Slide 53: Factors to Improve Market Capitalization of Tradable Shares
Factors to Improve Market Capitalization of Tradable Shares To increase market capitalization, we are striving to improve our performance over the medium to long term and to strengthen investor relations activities to expand our shareholder base, including overseas institutional investors Profit S
Slide 54: Measures to Expand Shareholder Base
Measures to Expand Shareholder Base We are taking steps to broaden our shareholder base, including overseas institutional investors Policy Measures • Increase the trade volume to make it easier • (Under consideration) Increase for institutional investors to consider Technical investing in the comp
Slide 55: Strengthening Investor Relations
Strengthening Investor Relations The following is the current status of our IR enhancement measures As of Apr. 2022 As of Nov. 2022 Upcoming • Medium-term plan to be updated Medium-Term Management Plan ○: Published ○: Explained progress on a rolling basis (full year) Financial results briefing △:
Slide 56: Dividends
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Slide 57: Dividends
Dividends At this time, a dividend of ¥35 per share is planned for FY03/23 (Unchanged from previous forecast) Dividends Ordinary Commemorative Dividend dividend dividend 35th anniversary commemorative increase dividend paid ¥30→¥35 ¥35 ¥35 ¥35 ¥30 ¥30 ¥30 ¥5 COVID-19 outbreak ¥15 ¥30 FY03/17 FY03/
Slide 58: Contact
Corporate Planning Dept., TEL +81-3-5489-2620 E-mail IR8869＠meiwajisyo.co.jp Contact MEIWA ESTATE Co., Ltd. *This material is for informational purposes only and is not intended as an offer, solicitation, or sales for any specific product. *This material was prepared based on data as of the date of
Slide 59: Fact Sheet
Fact Sheet == wien
Slide 60: Consolidated Balance Sheet as of the End of Q2 FY03/23
Consolidated Balance Sheet as of the End of Q2 FY03/23 (Millions of yen) End-Q2 Change End-FY03/22 Change FY03/23 (%) Total assets 95,708 97,207 1,498 1.6 Current assets 85,838 86,873 1,034 1.2 Cash and deposits 27,699 17,876 -9,823 -35.5 Real estate for sale 8,867 6,395 -2,472 -27.9 Real estate for
Slide 61: Real Estate Sales Business: Sales Breakdown
Real Estate Sales Business: Sales Breakdown (Millions of yen) 1H FY03/22 1H FY03/23 Full-year FY03/23 Change Change (%) Progress (%) actual actual forecast Sales 20,839 14,361 -6,477 -31.1 55,050 26.1 Condominium 18,243 9,182 -9,060 -49.7 45,000 20.4 Units delivered (375) (169) (-206) -54.9 830 20.4
Slide 62: Residential Development Business: Sales Leading Indicators (KPIs)
Residential Development Business: Sales Leading Indicators (KPIs) (Millions of yen) 1H FY03/22 1H FY03/23 Full-year FY03/23 Change Change (%) Progress (%) actual actual forecast Purchases 30,432 41,857 11,424 37.5 70,000 59.8 Condominium 30,187 41,572 11,384 37.7 70,000 59.4 Land and buildings 244 2
Slide 63: Real Estate Agency Business: Sales Indicators
Real Estate Agency Business: Sales Indicators (Millions of yen) Full-year 1H FY03/22 1H FY03/23 Change Change (%) FY03/23 Progress (%) actual actual forecast Purchase and Resale Units purchased 67 96 29 43.3 150 64.0 Contracts 1,341 2,673 1,332 99.3 7,230 37.0 No. of units 33 54 21 63.6 160 33.8 Bro
Slide 64: Condominium Management Business: Sales Breakdown
Condominium Management Business: Sales Breakdown (Millions of yen) 1H FY03/22 1H FY03/23 Full-year FY03/23 Change Change (%) Progress (%) actual actual forecast Net sales 2,393 2,639 246 10.3 5,200 50.8 Management fees 2,077 2,137 60 2.9 4,200 50.9 Construction-related 302 459 156 51.6 850 54.0 Othe
Slide 65: Note
Note In the Financial Results for Q1 FY03/23 presentation material published that we published on August 8, 2022, we disclosed actual results for purchases (p. 13), supply (p. 14), and sales contracts (p. 18) related to the Residential Development business as the sum of new condominiums and land a