Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — Q1 FY2018/3 Earnings Presentation
25 slides from Daito Trust Construction's earnings presentation, August 2017
Slide 1: Report on Settlement of 1Q of FY ending March 2018
Report on Settlement of １Q of FY ending in March 31, 201８ 1Q Financial Highlights, Year ending in March 31, 2018 1 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Contents Ⅰ．Result in 1Q of FY ending in March 2018・・・ 3 Ⅱ．Key Figures・・・・・・・・・・・・・・・・・ 13 Ⅲ．Topics ・・・・・・・・・・・・・・・・・・・ 26 Ⅳ．Appendix ・・・・・・
Slide 2: Profit & Loss highlights
Ⅰ. Results in １Q of FY ending in March 201８ 3 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. PL Profit & Loss highlights Consolidated PL Sales and profits marked new high ：YoY ■Net sales ■Operating income ( bn) ( bn) 377.1bn 40 37.0bn 400 345.9 +21.9% +9.0% 30.4 300 30 200 20 100 10 0 0 16/6 17/6 16/
Slide 3: Profit & Loss by segment (Construction business)
PL Profit & Loss by segment (Construction business) Construction segment ① (¥bn) （単位：bn） 2016/6 2017/6 （YoY） Net sales 130.4 148.0 （+13.4%） Gross profit 40.1 47.7 （+18.9%） Operating income margin 19.8 26.0 （+31.4％） ■Net sales (Percentage of completion method) ■Gross profit ■Operating income ( bn) Un
Slide 4: Profit & Loss by segment (Real estate business)
Profit & Loss by segment PL (Real estate business) Real estate segment ② (¥bn) （単位：bn） 2016/6 2017/6 （YoY） Net sales 203.6 215.3 （+5.8%） Gross profit 20.2 21.6 （+7.3%） Operating income 10.9 11.5 （+5.6%） ■Net sales ■Gross profit ■Operating income ( bn) ( bn) ( bn) ※ 0.74bn 215.3 ※0.70bn 21.6 11.5 203
Slide 5: Profit & Loss by segment (Other businesses)
PL Profit & Loss by segment (Other businesses) Other segments (¥bn) 2016/6 2017/6 （YoY） Net sales 11.85 13.80 （+16.5%） Gross profit 4.70 5.18 （+10.3%） Operating income 2.74 3.08 （+12.2%） ■Net sales ■Gross profit ■Operating income ( bn) ( bn) ( bn) 15.0 13.80 6.0 ※0.02bn 3.08 ※0.85bn ※0.08bn 5.18 3.0
Slide 6: Balance Sheet and Cash Flows highlights
Financial Review Balance Sheet highlights Consolidated BS （¥bn） 2016/6 2017/3 2017/6 Current 337.9 Current 280.7 Current Liabilities （△57.2） Liabilities 245.3 509.7 Liabilities （+92.6） Current 440.1 Current Current （+72.1） Assets （△69.6） 437.6 Assets Assets Fixed 167.9 Fixed 166.1 Fixed Liabilities
Slide 7: Key Figures: Orders received and orders in hand
Ⅱ. Key Figures 13 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Orders Transition of orders received and received orders in hand (Year on Year) Orders received & orders in hand ◆Orders received ¥138.2bn（YoY △4.9%） ◆Orders in hand ¥878.9bn（YoY △2.2%） Orders received Orders in hand ( bn) ( bn) 1,000 8
Slide 8: Sales representatives and mid-rise and rebuild ratios
Orders Transition of number of sales representatives and received orders received per sales representative (Year on Year) Efficiency in receiving orders ◆Number of sales representatives 〈end of Jun.〉 3,438（+33 YoY） ◆Orders received per sales rep ¥13.83 mn/month （△¥0.62 mn YoY） Number of sales Orders
Slide 9: Average order price and cancellation ratio
Orders Transition of average price of orders received received and cancellation ratio (Year on Year) Index ② ◆Average unit price of order received ¥ 95.87mn (YoY +¥3.45mn) ◆Cancellation ratio 18.8% (YoY +2.0p) Average unit price of orders received※1 Cancellation ratio※2 （ mn） 30% 100 92.42 95.87mn 8
Slide 10: Customer financing channel and orders received plan
Orders received Customer’s financing channel Index ④ Shares of financial institutions (Construction starts basis) FY17/3 Full-year FY18/3 1Q Agricultural/Fisherie Agricultural/Fisheries Others, Others, s Cooperative, 5.1% Cooperative, 6.1% 2.0% 2.2% Japan Housing City banks, Finance 9.7% Agency, 9.3
Slide 11: Number of tenancy recruitment and occupancy rate
Tenancy recruitment Number of tenancy recruitment Number of recruitment ◆Number of tenancy recruitment 68,619（+7.1% YoY） ●Residential use 67,931（+7.3% YoY） ●Commercial use 688（△7.4% YoY） Residential use Commercial use Number of tenancy recruitment YoY Number of tenancy recruitment YoY 80,000 1,500 6
Slide 12: Tenancy recruitment by Daito and consigned companies
Tenancy Transition of number of tenancy recruitment recruitment (by Daito itself and by consigned companies) Number of recruitment FY17/3 １Ｑ FY17/3 Full-year FY18/3 1Q By Daito By consigned By Daito By consigned By Daito By consigned itself companies itself companies itself companies 180% 100,000 47
Slide 13: Target of occupancy rate
Tenant recruitment Target of occupancy rate Resetting target Occupancy rate of Occupancy rate of residential use units commercial use units Target in 2018/3 96.9% Target in 2018/3 98.3% Occupancy rate Occupancy rate 98.3% （98.3％） 98% 98% （96.9％） 98.3% 98.3% 98.4% 96.3% 96% 96% 96.2% 96.3% 96.2% 94%
Slide 14: New product REFLA and Lease Management Trust System
Topics New product “REFLA” Sales Strategies Release of collaboration product with renowned architect: REFLA July 2017- Producing “healing” spaces which appeals to all five senses ・ The layout does not hinder sight and wind. ・ The design makes you feel warmth of wood. ・ Living room and outside are in
Slide 15: Lease Management Trust System: high occupancy and low default
Superiority of Topics Lease Management Trust System Management System ② ● High occupancy rate regardless of buildings’ age 98.1% 98.3% 97.6% 97.1% 97.5% 97.9% Number of units under 40 100% 30 75% management 34.8 20 24.8 50% (thousands) 18.4 7.6 10 1.9 25% Occupancy rate 10.1 0 0% 0-5 years 6-10 year
Slide 16: Non-consolidated and subsidiaries Profit & Loss
Non-consolidated Profit & Loss ＜FY18/3＞ （¥mn） 16/6 17/6 YoY Plan（full-year） Net Sales 135,887 151,951 +11.8% 658,800 Construction 130,509 148,033 +13.4% 652,000 Real estate & Others 5,377 3,918 △27.1% 6,800 Gross profit 40,364 47,436 +17.5% 197,700 Construction 39,735 46,579 +17.2% 195,400 Real esta
Slide 17: Sales structure of real estate business
Sales structure of real estate business＜FY18/3＞ （¥mn） 15/6 16/6 17/6 Amount （Ratio） Amount （ratio） Amount （Ratio） YoY Whole-building leases※1 174,102 (91.3%) 185,720 (91.2%) 196,428 (91.2%) +5.8% Building and repairs 8,059 (4.2%) 6,918 (3.4%) 7,708 (3.6%) +11.4% Brokerage of real estate 3,640 (1.9%)
Slide 18: Profit & Loss of major subsidiaries (Real estate-2)
Profit & Loss of major subsidiaries (Real estate-2)＜FY18/3＞ （¥ mn） Real estate business Housecom House Leave 16/6 17/6 YoY Plan 16/6 17/6 YoY Plan (full-year) (full-year) Net sales 2,292 2,463 +7.5% 10,822 2,698 2,557 △5.2% 10,496 Gross profit 2,260 2,400 +6.2% 10,604 2,538 2,401 △5.4% 9,577 SG&A 2,
Slide 19: Profit & Loss of major subsidiaries (Other businesses)
Profit & Loss of major subsidiaries （Other businesses-2）＜FY18/3＞ （¥ mn） Other businesses(Care Business･Gas Supply Business) ※ Consolidated financial statement of Care Partner Gaspal Gaspal Group in this FY. Plan Plan 16/6 17/6 YoY 16/6 17/6 YoY (full-year) (full-year) Net sales 3,471 2,857 △17.7% 11
Slide 20: Number of employees and orders received variance
Transition of number of employees in each business section（major 3 companies） （person） （person） 14,000 5,000 4,000 12,000 3,000 10,000 2,000 8,000 1,000 0 6,000 2016/6 2017/6 2018/3 Plan Sales representatives in construction business Engineers Sales representatives in real estate business Total empl
Slide 21: Orders received in each region
Orders received in each region YoY Orders received (¥bn) 50 50% Daito’s nationwide 40% 48.1 40 ave. 30% -4.9% 20% (39.5) 9.9% 30 10% -0.2% -0.4% -4.9% -8.2% 0% 20 -10% -10.1% -5.0% 22.1 -8.5% (4.1%) -20% 16.1 16.4 10 -21.8% -30% 9.6 10.5 8.7 -40% 1.7 0 4.5 -50% Orders received YoY 41 Copyright© DAIT
Slide 22: Construction starts by area and Daito's share
Number of construction starts by area & Daito’s share Number of Daito’s share construction starts 4,000 Daito’s nationwide 50% ave. 16.8% 3,635 40% 32.6% 32.5% 33.4% 3,000 29.6% 30% 22.0% (2,547) 20% 2,000 1,944 14.4% 10% 13.4% (10.6%) 1,492 10.6% 3.3% 0% 1,000 1,138 991 856 857 -10% 533 0 153 -20%
Slide 23: Rent-based occupancy rate
Rent-based occupancy rate Rent-based occupancy rate 100% 98% 96% 94% 92% Residential Commercial 90% 14/3 14/9 15/3 15/9 16/3 16/9 17/3 Rent-based 13/6 14/6 15/6 16/6 17/6 YoY occupancy rate Residential use(%) 95.9% 96.0% 95.9% 96.2% 96.3％ +0.1p Commercial use(%) 95.8% 96.9% 98.0% 98.3% 98.3％ ±0.0p 4
Slide 24: Number of units under management and aggregate rent
Number of units under management & aggregate amount of rent Residential use Commercial use Managing units Rent Managing units Rent （thousands） （ bn） （thousands） （ bn） 1,000 978 993 90 8.0 923 80 6.4 6.4 6.3 800 59.8 57.3 60 6.0 53.5 60 600 40 4.0 36.8 36.5 36.5 400 30 20 2.0 200 0 0 0 0.0 16/3 17/3
Slide 25: Disclaimer and copyright
49 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 1. Disclaimer of warranties for the contents Daito pays careful attention about the information carried on this documents. However, Daito can not offer the guarantee about the accuracy, reliability, safety, etc. Please recognize the information about
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