Daito Trust Construction Co., Ltd. · TSE:1878
Daito Trust Construction — Q2 FY2019 Earnings Presentation
28 slides from Daito Trust Construction's earnings presentation, November 2018
Slide 1: Report on Settlement of 2Q of FY ending in March 2019
Report on Settlement of 2Q of FY ending in March 31, 2019 2Q Financial Highlights, Year ending March 31, 2019 1 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Contents Ⅰ．Result in 2Q of FY ending in March 2019・・・ 3 Ⅱ．Key Figures・・・・・・・・・・・・・・・・・ 14 Ⅲ．Financial Forecast ・・・・・・・・・・・・・ 27 Ⅳ．Shareholders
Slide 2: Result in 2Q of FY ending in March 2019: P&L highlights
Ⅰ. Result in 2Q of FY ending in March 2019 3 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. PL Profit &Loss highlights① Consolidated PL Whereas increase in income, decrease in profit for the first time in 6 consecutive years ：YoY ■Net sales ■Operating income （ bn） +2.2% （ bn） △4.2% 800 738.8 782.0 ¥7
Slide 3: Profit & Loss highlights: factors of fluctuations in operating income
Profit & Loss highlights② PL －Factors of fluctuations in operating income＜against last FY＞ Consolidated PL The reason why operating income declined year-on-year (△ 3.3bn） Details Reasons Gross profit of completed ・Decrease in construction completed（¥322.7bn ¥313.3bn） △¥3.00bn construction contracts
Slide 4: Profit & Loss by segment (Construction business)
PL Profit & Loss by segment（Construction business） Construction segment② Major breakdown of the variance (△1.1p) ①Labor cost ±0.0p 2017/9 2018/9 （YoY） ②Material cost △0.3p Gross profit ③Exchange and margin 32.2% 31.1% （△1.1ｐ） imported materials △0.2p ④Recognition of deferred Operating income margin
Slide 5: Profit & Loss by segment (Real estate and other businesses)
PL Profit & Loss by segment（Real estate business） Real estate segment② 2017/9 2018/9 （YoY） Gross profit margin 9.4% 10.0% ［+0.6ｐ］ Operating income margin 4.7% 5.3% ［+0.6ｐ］ ■Gross profit margin・Operating income margin 12% 10.0% 9.2% 9.4% 9% 5.3% 6% 4.5% 4.7% 3% 0% 16/9 17/9 18/9 Gross profit margin O
Slide 6: SG&A expenses and Balance Sheet highlights
Transition of selling, general and administrative PL expenses SG&A Expenses （¥ bn） 2017/9 2018/9 （YoY） SG&A expenses 75.0 77.7 （+3.6%） SG&A expenses ratio to sales 9.6% 9.7% ［+0.1ｐ］ [ ]：Difference from same period in previous tear ■SG&A expenses・SG&A expenses ratio to sales （ bn） Major breakdown of
Slide 7: Cash Flows highlights
Financial Review Cash Flows highlights Consolidated CF Cash and cash equivalents 213.7 at the beginning of FY 19/3 Major breakdown items ・Net income before income tax （ + 79.1bn） ・Payment of income tax, etc. （△ 35.0bn） Cash flows from 31.8 ・Payment of bonus （△ 11.4bn） operating activities Major brea
Slide 8: Orders received and orders in hand
Orders Transition of orders and received orders in hand (Year on Year) Orders received & orders in hand ◆Orders received ¥295.9bn（YoY △3.8%） ◆Orders in hand ¥861.2bn（YoY △0.7%） Orders received Orders in hand （ bn） （ bn） 1,000 400 890.4 867.0 ¥861.2bn 322.6 307.7 ¥295.9bn 800 300 600 200 400 100 200
Slide 9: Sales representatives and mid-rise and rebuild ratios
Item related to Transition of number of sales representatives and orders received amount of orders received per sales representative Efficiency in acceptable of order ◆Number of sales representatives 〈End of Sep.〉 3,419 （＋64 YoY） ◆Amount of order received per sales representative 14.70mn／Month （△¥0.
Slide 10: Average order price, cancellation ratio and order channels
Item related to Transition of Average price of orders received and orders received Cancellation ratio Index② ◆Average price of orders received ¥104.33mn （+¥4.74mn YoY） ◆Cancellation ratio 20.9% （+3.3p YoY） Average price of orders received ※1 Cancellation ratio※2 （ mn） ¥104.33mn 99.59 8,862万円 100 94.
Slide 11: Tenant recruitment and rent-based occupancy rate
Items related to tenant recruitment Transition of number of tenant recruitment Number or tenant recruitment ◆Number of tenant recruitment 148,111（ +7.9% YoY） ●Residential use 146,833（ +8.0% YoY） ●Commercial use 1,278（△6.3% YoY） ◆Tenant recruitment planning 〈full-year〉 304,500（ +2.9% YoY） Residential
Slide 12: Number-based occupancy rate and tenant recruitment
Items related to Transition of Number-based occupancy rate※ tenant recruitment （as of September 30, 2018） Occupancy rate② ◆Residential use units 97.0%（＋0.6p YoY） ◆Commercial use units 97.9%（＋0.3p YoY） Residential use Commercial use 97.5% 97.6% 97.9% 1,400 100% 96.4% 96.4% 97.0% 100% 1,200 36,000 36,
Slide 13: Tenant recruitment efficiency and occupancy by region
Items related to Transition of number of tenant recruitment tenant recruitment per representatives Efficiency of tenant recruitment Tenant recruitment /(person・month) Tenant sales representative（person） 20.0 3,500 15.0 15.1 3,000 15.0 2,500 10.0 2,000 1,626 1,667 1,500 5.0 1,000 0.0 500 17/9 18/9 Nu
Slide 14: Financial Forecasts: Profit & Loss Forecast
Ⅲ. Financial Forecasts 27 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Financial forecast Profit & Loss Forecast There is no change from the forecast Consolidated PL at the beginning of this FY （ ）：YoY ■Net sales ■Operating income （ bn） （ bn） ¥1,640.0bn ¥128.0bn 1,800 （+5.3％） 1,497.1 1,557.0 140 12
Slide 15: Plan of completed construction sales and orders received
Financial Plan of net sales of completed forecasts construction contract Net sales ◆Plan of net sales from completed construction ＜full-year＞ ¥663.0bn（+4.5% YoY） Net sales Gross profit margin （ bn） ¥663.0bn 627.6 600 500 400 322.7 313.3 300 35% 30% 200 32.2% 31.5% 31.1% （Planned 25% 100 29.8%～） 20%
Slide 16: Plan of tenant recruitment and occupancy rate
Full-year forecasts Plan of tenant recruitment and occupancy rate Tenant recruitment and occupancy rate ◆Plan of tenant recruitment＜full-year＞304,500（+2.9% YoY） ◆Plan of occupancy rate＜as of Mar.2019＞ ●Residential use 97.0％（△0.2p YoY） ●Commercial use 98.4％（±0.0p YoY） Number of tenant recruitment Occ
Slide 17: Shareholders return: dividends and treasury stock
Shareholders Result of dividend payment and return acquisition of treasury stock Result & Plan Return to shareholders of FY 2018/3 Acquisition and cancellation of Payout ratio treasury stock 50.0％ 30％ Total 44.0bn Total 26.4bn（Upper limit） Total Return Ratio Annual dividend of 583/share ＋ ※Cancellat
Slide 18: Topics: Award for Excellence in Corporate Disclosure
Received “2018 Award for Excellence Topics in Corporate Disclosure” Ranked No.1 for the 9th time and 8 consecutive years in Construction /Housing /Real Estate sector Ranking records Year Ranking 2018 No.1 2017 No.1 2015 No.1 2014 No.1 2013 No.1 2012 No.1 2010 No.1 2009 No.1 2008 No.2 2007 No.3 2006
Slide 19: Profit & Loss of each segment FY19/3
Profit & Loss of each segment＜FY 1９/3＞ 《Construction business》 （¥ mn） 17/9 18/9 YoY 19/3(plan) YoY (plan) Net sales 322,701 313,365 △2.9% 663,000 +5.6% Gross profit 103,984 97,584 △6.2% 197,300 △0.1% (Gross profit margin) 32.2% 31.1% △1.1p 29.8% △1.7p Operating income 60,088 54,054 △10.0% 105,800 △3
Slide 20: Profit & Loss of major subsidiaries (Construction)
Profit & Loss of major subsidiaries (Construction) ＜FY19/3＞ （¥ mn） Construction business Daito Construction Daito Steel Plan Plan 17/9 18/9 YoY 17/9 18/9 YoY (full-year) (full-year) Net sales 3,845 3,426 △10.9% 8,300 2,406 2,380 △1.1% 5,014 Gross profit 88 155 +76.8% 312 135 134 △1.0% 281 SG&A 64 65
Slide 21: Profit & Loss of major subsidiaries (Real estate)
Profit & Loss of major subsidiaries （Real estate-１）＜FY1９/3＞ （¥ mn） Real estate business Daito Kentaku Partners※１ Daito Kentaku Leasing※２ Plan Plan 17/9 18/9 YoY 17/9 18/9 YoY (full-year) (full-year) Net sales 417,700 441,739 +5.8% 881,700 5,504 10,467 ＋90.2％ 21,700 Gross profit 32,943 35,766 +8.6％ 6
Slide 22: Profit & Loss of major subsidiaries (Financial business)
Profit & Loss of major subsidiaries （Financial business）＜FY1９/3＞ （¥ mn） Financial business Daito Finance House Guard D.T.C Plan Plan Plan 17/9 18/9 YoY (full-year) 17/9 18/9 YoY (full-year) 17/9 18/9 YoY (full-year) Net sales 757 842 +11.1% 1,322 1,081 1,295 +19.8% 2,829 1,675 1583 △5.5% 3,359 Gross
Slide 23: Profit & Loss of major subsidiaries (Other businesses)
Profit & Loss of major subsidiaries （Other businesses-2）＜FY1９/3＞ （¥ mn） Other businesses（Energy business・Foreign business） DAITO ASIA DEVELOPMENT DAITO ASIA DEVELOPMENT Daito Energy (MALAYSIA) SDN. BHD. (MALAYSIA) Ⅱ SDN. BHD. 17/9 18/9 YoY Plan 17/9 18/9 YoY Plan 17/9 18/9 YoY Plan (full-year) (full
Slide 24: Number of construction starts and Daito's share
Number of construction starts & Daito’s share (Year on Year) Number of Daito’s share construction starts 200,000 179,370 176,450 172,718 30% 160,000 20% 120,000 16.4% 15.5% 13.0% 80,000 （29,456 ※ ） （27,291 ※ ） （22,371 ※ ） 10% 40,000 0 0% 16/8 17/8 18/8 Number of construction starts（Apr.-Aug.） Daito'
Slide 25: Transition of rent-based occupancy rate
Transition of rent-based occupancy rate Rent-based occupancy rate 100% 98% 96% 94% 92% Residential use Commercial use 90% 14/3 14/9 15/3 15/9 16/3 16/9 17/3 17/9 18/3 18/9 Rent-based 14/9 15/9 16/9 17/9 18/9 YoY occupancy rate Residential use(%) 96.0% 96.0% 96.3％ 96.3％ 96.6％ ＋0.3p Commercial use(%)
Slide 26: Customer's funds route
Customer’s funds route Resources of finance for construction (loan acceptance basis) FY18/3 1H FY19/3 1H Others, Others, Agricultural/Fisheries Agricultural/Fisheries 2.5% 4.3% Cooperative, 6.8% Cooperative, 6.4% Japan Housing City banks, Finance 9.3% Agency, Regional Regional 12.9% banks, Shinkin b
Slide 27: Disclaimer of warranties for the contents
53 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
Slide 28: Copyright© DAITO TRUST CONSTRUCTION CO., LTD. Copyright© DAITO TRUST CONSTRUCTION CO., LTD.
55 Copyright© DAITO TRUST CONSTRUCTION CO., LTD. 56 Copyright© DAITO TRUST CONSTRUCTION CO., LTD.
Daito Trust Construction — Q2 FY2019 Earnings Presentation on 6ix