Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q2 FY2020 Earnings Presentation
60 slides from Tokyu Fudosan's earnings presentation, November 2020
Slide 1: Financial Highlights FY2020 Second Quarter (First Six Months)
Financial Highlights FY2020 Second Quarter (First Six Months) Ended September 30, 2020 TOKYU FUDOSAN HOLDINGS CORPORATION Code︓3289
Slide 2: Forward-looking statements notice
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantl
Slide 3: Contents
Contents • Trends in Results and Polices of FY2020 Earnings Forecasts ・・・・・ 3 • Overview of the FY2020 Second Quarter (First Six Months) Ended September 30, 2020 and Forecast for the Fiscal Year Ending March 31, 2021 ・・・・・ 5 • Reference ・・・・・ 39 2 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All r
Slide 4: Trends in Results and Policies of FY2020 Earnings Forecasts
Trends in Results and Polices of FY2020 Earnings Forecasts The Medium-Term Management Plan made good progress, but the business environment changed dramatically in the final year. (fiscal year ending March 2021) ■Assumptions for the forecast for the fiscal year ending March 31, 2021 Business activit
Slide 5: Activity policy for the fiscal year ending March 2021
Activity policy for the fiscal year ending March 2021 The Company will overhaul its business to ensure sustainability and will formulate a long- term management policy, considering a paradigm shift. Environmental recognition ・Continuing a behavioral pattern, assuming coexistence with the coronavirus
Slide 6: Overview of the FY2020 Second Quarter and Forecast for FY ending March 2021
Overview of the FY2020 Second Quarter (First Six Months) Ended September 30, 2020 and Forecast for the Fiscal Year Ending March 31, 2021 5 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 7: FY2020 Q2 Financial Highlights
FY2020 Q2 Financial Highlights Both revenue and profit decreased in the second quarter of FY2020 Revised the Forecast for FY2020 <Results of the FY2020 Second Quarter Ended September 30, 2020> ¥383.9 billion in operating revenue, ¥17.0 billion in operating profit and ¥0.6 billion in profit attributa
Slide 8: FY2020 Q2 (First Six Months) Operating Results
FY2020 Q2 (First Six Months) Operating Results Declines in revenue and profit, reflecting the effects of the spread of the coronavirus, chiefly in the BtoC business. Q2 First Six Months Full-year (ended Sep-30) (ended Mar-31) Compared to the same period （\ billion） FY2020 Progress last year FY2019 F
Slide 9: FY2020 Q2 (First Six Months) Segment performance
FY2020 Q2 (First Six Months) Segment performance Both revenue and profit increased in the Urban Development segment. Both revenue and profit decreased in the other 6 segments. 〈Changes in revenue〉 Residential （¥billion） (20.8) Property Management FY2019 FY2020 Comparison Urban (14.4) 2Q 2Q Developme
Slide 10: FY2020 Q2 Summary of balance sheets
FY2020 Q2 (First Six Months) Summary of balance sheets Increases in both assets and liabilities, mainly reflecting expansion of property and equipment, intangible assets and procurement of necessary capital. FY2019 FY2020 FY2019 FY2020 （\ billion） As of Mar-31, As of Sep-30, （\ billion） As of Mar-31
Slide 11: Summary of Cash Flows
Summary of Cash Flows Cash provided by financing activities was spent on investment in non-current assets (cash flow from investing activities) and investment in inventories (cash flow from operating activities). FY2019 FY2020 （\billion） Main factors for changes Q2(Apr-Sep) Q2(Apr-Sep) Profit before
Slide 12: FY2020 Earnings Forecasts
FY2020 Earnings Forecasts Both revenue and profit are likely to fall due to the spread of the coronavirus. FY2019 FY2020 Initial Projected Compared to the same period Full-year（\ billion） Mar-2021 Comparison Mar-2020 Forecast Change last year Forecast Operating revenue 963.2 895.0 (68.2) 930.0 (35.0
Slide 13: FY2020 Forecast (Segment performance)
FY2020 Forecast (Segment performance) Both revenue and profit are expected to decrease due to the spread of the coronavirus. Urban Residential Development +3.7 〈Changes in revenue〉 +7.4 Property （¥billion） Management Real Estate (5.8) Wellness FY2019 FY2020 Agents (24.5) Comparison (11.4) Results Fo
Slide 14: Urban Development(1) FY2020 Q2
Urban Development(1) FY2020 Q2(First Six Months) Q2: Increases in both revenue and profit FY2020: Increase in revenue and Decrease in profit <sales of properties including Second Quarter FY2019 FY2020 Compared to the same buildings for investors> Comparison First Six Months（\ billion） Q2(Apr-Sep) Q2
Slide 15: Urban Development(2) Vacancy Rate and Rent
Urban Development(2) Vacancy Rate and Rent As of September 30, 2020 Average office rent 28,090 yen (Month/Tsubo) Vacancy rate 0.8% (Tenants actually moving in and out, including Office buildings and Commercial facilities) (¥/Month/Tsubo) 12% ¥30,000 Tsubo ≅ 3.3㎡ 29,220 28,090 27,730 27,090 26,610 26
Slide 16: Urban Development(3) Major projects
Urban Development(3) Major projects Kudanminami 1-chome Project** West Shinsaibashi Asakusa 2-chome Tokyo PortCity Takeshiba Chiyoda-ku 2-chome Project** Chayamachi B-2 Block Place Office/Commercial Osaka Sapporo Susukino Ekimae Minato-ku Urban Redevelopment Taito-ku Floor space︓68 Hotel Complex Dev
Slide 17: Urban Development(4) Major projects in the Greater Shibuya area
Urban Development(4)Major projects in the Greater Shibuya area Several projects are ongoing in the Greater Shibuya area. Harajuku Sta. Redevelopment Project Commercial facility Office building Meiji jinguumae Sta. Properties owned by Activia Properties Inc. Properties joint capital investment with N
Slide 18: Urban Development(5) Tokyo PortCity Takeshiba
Urban Development(5) Major projects <Tokyo PortCity Takeshiba> Both office tower and residence tower were completed. Office tower opened in September and the pedestrian deck partially started operation. [Office tower] High-rise bank 6F Office lobby Office Middle layer bank 2F Minato Yokocho Office t
Slide 19: Urban Development(6) Smart buildings in Tokyo PortCity Takeshiba
Urban Development(6) Smart buildings in Tokyo PortCity Takeshiba Obtaining and using data in real time, visualizing and optimizing information and providing value to stakeholders. Inputting data that can be obtained in real time [Human flow data] [Weather information] [Traffic information] [degree o
Slide 20: Urban Development(7) Renewable energy business
Urban Development(7) Renewable energy business Investment made progress. Properties in operation rose. Projects acquired (As of Sep-30, 2020) <Investments in Properties in Operation, Investments in Properties made decision, and Number of Projects in Operation> Investments in properties in operation
Slide 21: Urban Development(8) Logistics facilities business
Urban Development(8) Logistics facilities business Developing logistics facilities to expand asset types in the cyclical reinvestment business. Projects acquired (As of Sep-30, 2020) Description of a project Properties in operation: 9 LOGI’Q Miyoshi Total floor area︓71 thousand ㎡ Projects under deve
Slide 22: Residential(1) FY2020 Q2
Residential(1) FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Increase in revenue and Decrease in profit Second Quarter FY2019 FY2020 Compared to the same Comparison First Six Months(\ billion) Q2(Apr-Sep) Q2(Apr-Sep) period last year Operating revenue 50.5 29.7 (20.8)
Slide 23: Residential(2) Trends in condominium sales indicators
Residential(2) Trends in condominium sales indicators The contract ratio was 76%. (As of September 30, 2020) Accounting year FY2018 FY2019 FY2020 Forecast No. of units sold Total 1,266units Total 1,680units Total 1,625units Contract ratio 50%→57%→76% 32%→57%→73%→90％ 54%→66%→82%→90％ (Beginning-of-yea
Slide 24: Property Management(1) FY2020 Q2
Property Management(1) FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Second Quarter FY2019 FY2020 Compared to the same Comparison First Six Months（\ billion） Q2(Apr-Sep) Q2(Apr-Sep) period last year Operating revenue 96.2 81.7 (14.4
Slide 25: Property Management(2) Stock of properties
Property Management(2) Stock of properties As of September 30, 2020 Number of condominiums under management increased, and number of buildings under management decreased due to the liquidation of unprofitable projects. 〈Trend in stock of comprehensive condominium management and facility management i
Slide 26: Real Estate Agents(1) FY2020 Q2
Real Estate Agents(1) FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Second Quarter FY2019 FY2020 Compared to the same Comparison First Six Months（\ billion） Q2(Apr-Sep) Q2(Apr-Sep) period last year Operating revenue 59.4 55.7 (3.7)
Slide 27: Real Estate Agents(2) Performance indicators in sales agent
Real Estate Agents(2) Performance indicators in sales agent Fewer transactions mainly due to store closures and shorter opening hours. FY2020 Q2 Highlights Retail Wholesale Total No. of transactions 11,215 423 11,638 □Retail ・Both the number of transactions and the average handling (Rate of change Y
Slide 28: Wellness(1) FY2020 Q2
Wellness(1) FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Second Quarter FY2019 FY2020 Compared to the same period Comparison First Six Months（\ billion） Q2(Apr-Sep) Q2(Apr-Sep) last year Operating revenue 54.4 35.2 (19.2) Impact of
Slide 29: Wellness(2) Management system and Major projects
Wellness(2) Management system and Major projects Integrated operators of hotels and other wellness facilities to strengthen sales capabilities and improve productivity as Tokyu Resorts & Stays. Tokyu Stay Osaka-Hommachi Urban style hotel Opened in February 2020 Tokyu Stay Okinawa Naha Urban style ho
Slide 30: Tokyu Hands FY2020 Q2
Tokyu Hands FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit Second Quarter FY2019 FY2020 Compared to the same Comparison First Six Months (\ billion) Q2(Apr-Sep) Q2(Apr-Sep) period last year Existing stores (47.3)%, due to store Opera
Slide 31: Initiatives in Wellness and Tokyu Hands segments
Initiatives in Wellness and Tokyu Hands segments Assuming coexistence with the coronavirus, the Company promoted new initiatives in the Wellness segment and structural reform in the Tokyu Hands segment. <Wellness segment> Strengthen efforts to capture domestic demand on the Strengthen revenues from
Slide 32: Innovation Business(1) FY2020 Q2
Innovation Business(1) FY2020 Q2(First Six Months) Q2: Decreases in both revenue and profit FY2020: Decreases in both revenue and profit <BRANZ Simatupang> Second Quarter FY2019 FY2020 Compared to the same Comparison First Six Months (\ billion) Q2(Apr-Sep) Q2(Apr-Sep) period last year Operating rev
Slide 33: Innovation Business(2) Overseas operations
Innovation Business(2) Overseas operations 17 projects are in progress in the United States. ＊As of Sep-30, 2020 <425 Park Avenue> 〈America〉 New York Office building redevelopment project 47 stories above ground with 2 basements Scheduled to be completed in FY2020 Seattle(4) Portland(1) New York(1)
Slide 34: Trends in equity and interest-bearing debt
Trends in equity and interest-bearing debt Rating Institution: Japan Credit Rating Agency, Ltd. Long-term︓A (Stable) Short-term︓J-1 Medium-Term Management Plan 2017-2020 [¥billion] 1,600 20.0× Equity Interest-bearing Debt 1,480.0 Debt Equity ratiio Debt/EBITDA ratio 16.9 1,400 16.0× 1,200 12.8 1,000
Slide 35: Hybrid financing
Hybrid financing Planning to start hybrid financing to improve financial soundness and capital efficiency and for sustainable growth investment. Overview of hybrid financing <D/E Ratio transition> ■ Funds to be raised: （times） 100 billion yen (bonds and loans) 2.8 D/E ratio ■Bond maturity: D/E ratio
Slide 36: Issuance of sustainability bonds
Issuance of sustainability bonds Planning to issue sustainablity bonds earmarked for initiatives for solving environmental and social issues. The sustainability bonds, which leverage the Group’s efforts on environmental and social issues, will be the first in Japan combined with hybrid bonds (only 4
Slide 37: Return to Shareholders
Return to Shareholders Emphasizing shareholder returns and maintaining stable dividends, the Company will pay dividends per share of 16.0 yen for the fiscal year ending March 31, 2021, the same amount as for the previous fiscal year. Medium-Term Management Plan 2017-2020 16Yen 15.5 16.0 16.0 Dividen
Slide 38: Development of Business to Address Social Issues
Development of Business to Address Social Issues 〈Evolution of lifestyle creation〉 “Lifestyle Creation 3.0” fuses different aspects of everyday life: living, working and playing. * From the 2019 Integrated Report 37 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 39: Development of Business to Address Social Issues: Diversification of working styles
Development of Business to Address Social Issues〈Diversification of working styles〉 Developing workspaces that leverage our diverse assets. City center Suburban area Local area Center office Flexible office* Resort facilities （Workation） Exclusive space Office building of Hotel (Individual rooms) TO
Slide 40: Reference
Reference 39 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 41: Value creation story(1) Process for value creation
Value creation story(1) Process for value creation The Company accurately identifies social issues that are changing with the times and Social Value (Outcomes) To Become a Corporate Group that Continues to Create Value creates unique value, leveraging its three strengths. In this process, the Compan
Slide 42: Value creation story(2) Value provided
Value creation story(2) Value provided Promoting sustainable growth by increasing the satisfaction of every stakeholder. Corporate value is the sum total of the levels of satisfaction of all of our stakeholders Local and Social Satisfaction We contribute to a sustainable society through efforts such
Slide 43: Basic Policy for Increasing Shareholder Value and Corporate Value(1)
Basic Policy for Increasing Shareholder Value and Corporate Value(1) Aim to increase EPS and ROE in an effort to increase shareholder value by growing earning power while maintaining financial discipline. Business portfolio strategy Increase Increase Asset Utilization Type Business shareholder value
Slide 44: Basic Policy for Increasing Shareholder Value and Corporate Value(2)
Basic Policy for Increasing Shareholder Value and Corporate Value(2) The Company needs to improve ROA, which emphasizes business efficiency. BS for FY2019 Breakdown of assets by segment Ended Mar-2020 Property Management Real Estate Agents 127.1 98.3 Total assets ¥2,487.4 billion Wellness 273.3 Toky
Slide 45: Basic Policy for Increasing Shareholder Value and Corporate Value(3)
Basic Policy for Increasing Shareholder Value and Corporate Value(3) Basic policy regarding financial and capital policies. BS for FY2019 D/E ratio and EBITDA multiple Ended Mar-2020 • Maintain financial disciplines, controlling the D/E ratio and the EBITDA multiple, Total assets while considering r
Slide 46: Breakdown of Results by Segment
Breakdown of Results by Segment Operating Profit Net profit* Residential 120 Real-Estate Agents Innovation business ¥billion Tokyu Hands Medium-term Management Plan 2017-2020 Wellness Property Management 90 77.5 80.2 79.3 Urban Development 73.2 7.6 5.4 8.5 Elimination 68.8 9.7 13.9 44.0 63.3 7.0 13.
Slide 47: Major Effects of the Spread of the Coronavirus in FY2020
Major Effects of the Spread of the Coronavirus in FY2020(Initial Supposition) Effects are assumed mainly in the BtoC business. It is assumed that business activities will be constrained significantly in the first quarter and will recover gradually from the second quarter. Segment Effect on business
Slide 48: Summary of balance sheets as of Mar-31, 2020
Summary of balance sheets ＊As of Mar-31, 2020 FY2019 FY2019 （\ billion） As of Mar-31, （\ billion） As of Mar-31, 2020 2020 Cash and deposits 97.6 Interest-bearing Debt 1,361.0 Real estate for sale 658.0 Deposits 260.5 Property and equipment, Trade payables etc. 106.5 1,192.7 Intangible assets Goodwil
Slide 49: Market value appraisal for leased properties
Market value appraisal for leased properties Unrealized profit of leased properties increased thanks to the firm real estate market. FY2018 FY2019 （\ billion） Comparison Remarks Mar-2019 Mar-2020 Carrying Value 816.1 834.5 18.3 ■Market value at the end of the fiscal year is calculated by our company
Slide 50: Distribution of Office Buildings (Urban Development segment)
Distribution of Office Buildings (Urban Development segment) For the portfolios, Owns 88% of office buildings in 4 central wards, centering on Shibuya ward.(As of September 30, 2020) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 684thousand ㎡（88%） 48buildings 609thousand ㎡（79%） 27buildi
Slide 51: Office market in Shibuya
Office market in Shibuya The vacancy rate in the Shibuya-ku rose, and that tends to be highly volatile. However, vacancy rates within the Group remain at a low level and the contract cancellation notices is also unchanged from the year-ago level. (see Page14) Assumed Causes of High Volatility in Shi
Slide 52: Commercial facilities
Commercial facilities ＊As of Mar-31, 2020 Developing commercial facilities in convenient areas, primarily in the Tokyo metropolitan area and the Kinki area. Features of our commercial facilities Locations that are commercially busy and convenient in terms of transportation Tokyu Plaza Ginza Q Plaza
Slide 53: Transition in total floor area and AUM transition
Transition in total floor area and AUM transition AUM expand steadily. 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion 2,000 API** 1,523.6 Commercial facilities CRR*** 1,467.2 1,500 Office building Private REITs, etc. 1,624 1,251.9 1,458 1,484 1,500 1,438 1,427 760.7 715.5 988.
Slide 54: Major office buildings (Tokyo Metropolitan area)
Major office buildings (Urban Development segment) As of the end of September 2020, the Company holds 57 buildings, located mainly in four wards in central Tokyo. No. of Total floor Area Major properties[Building] Year built Remarks buildings space * Shibuya Dogenzaka Tokyu 1983 13 Unosawa Tokyu 198
Slide 55: Major commercial facilities (Urban Development segment)
Major commercial facilities (Urban Development segment） As of the end of September 2020, the Company operates 25 locations in the Tokyo area and 7 locations in Kansai and other regions. No. of Major properties Total floor Area Year built Remarks facilities [Commercial facilities] space * Tokyu Plaza
Slide 56: Major facilities (Wellness segment)
Major facilities (Wellness segment) Manage diverse facilities throughout the country. (As of September 30, 2020) Number of Number of Name of facilities facilities rooms Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsuura Madarao Nasu VIALA annex Kyoto Hamanako Tateshina Annex Kyu
Slide 57: Sustainable Management
Sustainable Management The Company is promoting initiatives for sustainable growth and has continued to be selected as constituents of major domestic and overseas ESG indexes. Selected for inclusion in the FTSE 4good Index Series for eleventh consecutive year in July 2020. <Major initiatives> ・E (en
Slide 58: Initiatives Related to Climate Change
Initiatives Related to Climate Change Examining expected climate change risks and related business opportunities and promoting the use of renewable energy. <Following TCFD’s recommendations> ・We are examining expected climate change risks and related business opportunities and are building a governa
Slide 59: Corporate Governance
Corporate Governance Building a governance system to ensure soundness and transparency and expedite decision-making. <Members of the Board of Directors> Directors:13 (independent outside directors:4, Corporate Governance Structure of which female independent outside director:1） Tokyu Fudosan Holding
Slide 60: Tokyu Fudosan Holdings
& TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — Q2 FY2020 Earnings Presentation on 6ix