Tosei Corporation TSE:8923

Tosei : Presentation Materials for the First Nine Months of the Fiscal Year 2024（PDF 4936KB）

Published

Source: MarketScreener

Financial Results for the First Nine Months of the Fiscal Year 2024

Tosei Corporation

Tokyo Stock Exchange, Prime Market Code : 8923

Singapore Exchange, Mainboard Code : S2D

October 7, 2024

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

Index

Revision of Full-year Forecasts for FY2024

(Appendix) Overview of Tosei Group

…

P.27

Revision of Full-year Forecasts for FY2024

…

P.3

Group Overview

…

P.28

Full-year Forecasts and 3Q(9M) Progress by Segment

…

P.4

History of Tosei

…

P.29

Overview of Results for the First Nine Months of FY2024

Tosei Group's Mission

…

P.30

FY2024 3Q(9M) Highlights

…

P.5

Long-Term Vision 2032

…

P.31

FY2024 3Q(9M) Overview

…

P.6

Keywords about Tosei

…

P.33

Business Results by Segment

…

P.7

Business Overview

…

P.34

Summary of Balance Sheet (Consolidated)

…

P.15

Medium-Term Management Plan

…

P.40

Inventories

…

P.17

Fixed Assets

…

P.19

Borrowings from Financial Institutions

…

P.20

Overview of Segment P/L (Consolidated)

…

P.21

Summary of Cash Flow Statements (Consolidated)

…

P.23

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

2

Revision of Full-year Forecasts for FY2024

Profit for the period 3Q(9M) ¥11,238M. Achieved the full-year plan ¥11,209M ahead of the schedule due to profit margin of the sales of properties exceeding the initial expectation in the Revitalization Business and the Hotel Business performing well

Revised full-year forecasts mainly due to strategic partial revision of sales plan in the Revitalization Business to the following fiscal year or later Dividend forecast increased to ¥77 (up ¥4)

FY2024 Full-year Forecasts

Previous Forecasts [A]

Revised Forecasts [B]

Change

Reference:

(¥million)

(announced on Jan. 12, 2024)

(announced on Oct. 7, 2024)

[B-A]

(%)

FY2023 Result

Revenue

92,116

81,921

-10,195

-11.1%

79,446

Operating Profit

17,702

18,187

+485

+2.7%

16,254

Profit Before Tax

16,500

17,000

+500

+3.0%

15,310

Profit for the Year

11,209

11,723

+514

+4.6%

10,507

(Owners of the Parent)

Earnings per Share

231.72

242.07

+10.35

-

219.74

(EPS) (¥)

Dividend per Share (¥)

73

77

+4

-

66

Payout Ratio

31.5%

31.8％

-

-

30.0%

ROE

13.0%

13.6%

-

-

13.6%

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

3

Full-year Forecasts and 3Q(9M) Progress by Segment

FY2024 Initial Forecasts

FY2024 Revised Forecasts

Change

(announced on Jan. 12, 2024)

(announced on Oct. 7, 2024)

(¥million)

[A]

Composition Ratio

[B]

Composition Ratio

[B-A]

%

Profit Margin

Profit Margin

Revenue

92,116

100.0%

81,921

100.0%

-10,195

-11.1％

Revitalization Business

45,889

49.8%

36,472

44.5%

-9,417

-20.5%

Development Business

18,650

20.2%

17,422

21.3%

-1,228

-6.6%

Rental Business

7,979

8.7%

8,121

9.9%

+142

+1.8%

Fund and Consulting Business

6,943

7.5%

6,897

8.4%

-45

-0.7%

Property Management Business

8,558

9.3%

8,677

10.6%

+119

+1.4%

Hotel Business

5,537

6.0%

5,970

7.3%

+433

+7.8%

Internal Transactions

-1,441

-

-1,640

-

-198

-

Gross Profit

34,150

37.1%

34,883

42.6%

+732

+2.1%

Revitalization Business

9,171

20.0%

9,050

24.8%

-120

-1.3%

Development Business

6,249

33.5%

6,417

36.8%

+168

+2.7%

Rental Business

4,114

51.6%

4,365

53.8%

+251

+6.1%

Fund and Consulting Business

6,591

94.9%

6,486

94.0%

-104

-1.6%

Property Management Business

3,021

35.3%

3,125

36.0%

+103

+3.4%

Hotel Business

5,384

97.2%

5,843

97.9%

+459

+8.5%

Internal Transactions

-381

-

-406

-

-25

-

Operating Profit

17,702

19.2%

18,187

22.2%

+484

+2.7%

Revitalization Business

6,181

13.5%

5,828

16.0%

-352

-5.7%

Development Business

5,030

27.0%

5,194

29.8%

+163

+3.3%

Rental Business

3,727

46.7%

3,983

49.0%

+256

+6.9%

Fund and Consulting Business

3,931

56.6%

3,845

55.8%

-85

-2.2%

Property Management Business

841

9.8%

1,047

12.1%

+206

+24.5%

Hotel Business

1,538

27.8%

1,944

32.6%

+405

+26.4%

Corporate Expenses, etc.

-3,547

-

-3,657

-

-109

-

Profit Before Tax

16,500

17.9%

17,000

20.8%

+500

+3.0%

Income Tax Expenses

5,290

-

5,271

-

-18

-

Profit for the Year

11,209

12.2%

11,728

14.3%

+518

+4.6%

Owners of the Parent

11,209

-

11,723

-

+514

-

Non-controlling Interests

-

-

4

-

+4

-

EPS（¥）

231.72

242.07

+10.35

ROA

6.4%

ROE

13.0%

*

The green portion shows gross profit margin and operating profit margin

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

FY2024 3Q(9M)

Progress Ratio

against Revised

Composition Ratio

Full-year

Profit Margin

Forecasts

69,419

100.0%

84.7%

33,498

48.3%

91.8%

14,975

21.6%

86.0%

5,910

8.5%

72.8%

5,314

7.7%

77.0%

6,386

9.2%

73.6%

4,580

6.6%

76.7%

-1,245

-

-

29,044

41.8%

83.3%

8,463

25.3%

93.5%

5,905

39.4%

92.0%

3,160

53.5%

72.4%

5,003

94.1%

77.1%

2,333

36.5%

74.7%

4,479

97.8%

76.7%

-302

-

-

17,055

24.6%

93.8%

5,931

17.7%

101.8%

5,061

33.8%

97.4%

2,906

49.2%

73.0%

3,101

58.4%

80.7%

933

14.6%

89.1%

1,565

34.2%

80.5%

-2,445

-

-

16,090

23.2%

94.7%

4,851

-

-

11,238

16.2%

95.8%

11,234

-

-

4

-

-

231.96

4

FY2024 3Q(9M) Highlights

Revenue ¥69.4B (up 4.1% YoY), profit before tax ¥16.0B (up 17.6% YoY), profit for the period ¥11.2B (up 20.0% YoY) Progress ratio against the revised full-year forecasts is revenue 84.7%, profit before tax 94.7%, profit for the period 95.8%

Revenue

Operating Profit

■ 1Q ■ 2Q ■ 3Q ■ 4Q

■ 1Q ■ 2Q ■ 3Q ■ 4Q

（¥million）

(revised

（¥million）

(revised

18,187 forecast)

000

79,446

81,921 forecast)

18,000

16,254

17,055

000

70,953

16,000

2,153

12,736

69,419

13,514

1,804

(3Q(9M))

000

YoY

16,020

11,801

14,000

1,933

YoY

000

13,848

+4.1%

2,358

5,315

12,000

000

11,380

22,749

10,000

1,798

5,735

+18.0%

000

21,809

Progress Ratio

against

17,236

8,000

3,672

Progress

000

Revised Full-

6,000

Ratio

000

year Forecasts

9,585

31,052

34,868

4,000

6,781

5,685

93.8%

000

26,315

84.7%

2,000

0

0

FY2022

FY2023

FY2024

FY2022

FY2023

FY2024

3Q(9M)

3Q(9M)

Profit Before Tax

Profit for the Year/Period

■ 1Q ■ 2Q ■ 3Q ■ 4Q

(revised

■ 1Q ■ 2Q

■ 3Q ■ 4Q

ROE

Operating Profit by Segment and Stable Business Ratio

■ Revitalization

■ Rental

■ PropertyManagement

Stable

■ Development

■ Fund and Consulting

■ Hotel

Business

(Stock Business)

（¥million）

49.2%

43.6%

Stable

16,254

17,055

Business Ratio

22,000

43.0%

13,514

990

1,565

* Calculated without head

18,000

813

933

office expenses, etc.

878

4,555

3,101

FY2024

14,000

3,218

Revised Target

3,232

2,906

3,041

49.5%

10,000

1,036

5,061

2,958

6,000

6,102

8,877

5,931

2,000

-315

-3,251

-2,445

(Head office expenses etc.)

-2,000

-2,369

FY2022

FY2023

FY2024

3Q(9M)

Fixed Cost Coverage by Profit from Stock Business

■ Fixed Cost ■ Stable (Stock) Business Gross Profit

（¥million）

17,000 forecast)

12.5%

13.6%

13.6% (forecast)

15,310

16,090

14%

14%

14%

13%

13%

13%

13%

13%

13%

13%

13%

13%

13%

12%

12%

12%

12%

1,631

1,718

(3Q(9M))

11,728

(revised12%

12%

12%

12%

12%

12%

14%

11%

11%

3%

11%

2%

11%

11%

1%

11%

0%

11%

12,753

12,000

10,508

forecast)9%

8%

7%

6%

5%

4%

3%

1,606

（¥million）

2%

1%

0%

2,237

5,180

1,176

11,238-1%

2%

3%

4%

5%

6%

7%

8%

10,000

8,607

1,143

(3Q(9M))9%

10%

1%

2%

YoY

3%

1,515

1,201

4%

5%

5,584

3,623

6%

7%

8,000

1,431

8%

9%

20%

1%

2%

3%

4%

5%

6%

+17.6%

7%YoY

8%

3,580

1,068

9%

3,746

30%

1%

2%

6,000

3%

4%

.0%

5%

6%

7%

8%

9%

40%

1%

2%

2,482

+203%

4%

9,191

Progress

5%

6%

7%

8%

9%

50%

1%

2%

4,000

3%

4%

5%

6,488

Ratio

6,439

Progress6%

5,420

7%

8%

9%

60%

1%

2%

3%

2,000

3,625

4,416

4%Ratio

5%

6%

7%

8%

9%

70%

94.7%

1%

2%

（¥million）

118.3%

16,957

125.2%

106.5%

14,336

14,672

12,589

11,81811,717

Fixed Cost

Coverage Ratio

  • Stable Business Gross Profit
    / Fixed Cost

3%

4%

5%

6%

7%

8%

0

959%

.8%

80%

FY2022

FY2023

FY2024

FY2022

FY2023

FY2024

3Q(9M)

3Q(9M)

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

FY2022

FY2023

FY2024

3Q(9M)

  • Stable Business Gross Profit: The sum of gross profit (net of effects of internal transactions) of the 4 Stable Business (Rental, Fund & Consulting, Property Management, and Hotel)
  • Fixed Cost = Selling, general and administrative expenses - property selling expenses +
    interest expenses5

FY2024 3Q(9M) Overview

FY2023 3Q(9M)

FY2024 3Q(9M)

YoY

(¥million)

Composition ratio

Composition ratio

%

Revenue

66,710

100.0%

69,419

100.0%

+2,709

+4.1%

Cost of Revenue

42,197

63.3%

40,375

58.2%

-1,822

-4.3%

Gross Profit

24,512

36.7%

29,044

41.8%

+4,531

+18.5%

Selling, General and

10,201

15.3%

11,503

16.6%

+1,302

+12.8%

Administrative Expenses

Property Selling Expenses

1,055

1.6%

1,024

1.5%

-31

-3.0%

Expenses Excluding Above

9,145

13.7%

10,479

15.1%

+1,333

+14.6%

Other Income

216

0.3%

86

0.1%

-130

-60.3%

Other Expenses

78

0.1%

571

0.8%

+492

+625.6%

Operating Profit

14,449

21.7%

17,055

24.6%

+2,605

+18.0%

Financial Income

197

0.3%

273

0.4%

+75

+38.4%

Financial Costs

968

1.5%

1,238

1.8%

+269

+27.9%

Profit Before Tax

13,679

20.5%

16,090

23.2%

+2,411

+17.6%

Income Tax Expense

4,314

-

4,851

-

+537

-

Profit for the Period

9,364

14.0%

11,238

16.2%

+1,874

+20.0%

Owners of the Parent

9,364

-

11,234

-

+1,869

-

Non-controlling Interests

0

-

4

-

+4

-

Comprehensive Income for the Period

9,627

14.4%

11,391

16.4%

+1,763

+18.3%

EPS (¥)

196.51

231.96

+35.45

+18.0%

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

6

Revitalization Business

ComponentRatio

Operating Profit

30.4%

Revenue ¥33.4B (down 19.5% YoY), operating profit ¥5.9B (down 27.3% YoY)

Sold 33 whole buildings (decrease 3 properties YoY), out of which 2 properties were sold to Tosei Reit

Sold 89 pre-owned condo units (decrease 1 unit YoY), out of which 34 units were in our focus area, the central 3 wards of Tokyo and Toyosu area

Revenue/Gross Profit Margin

Example of Sold Properties

■ Whole Building to General Customers ■ Whole Building to Tosei Reit

■ Pre-owned Condo Units Gross Profit Margin

Gross Profit Margin* of Sold Properties

FY2023

FY2024 3Q(9M)

Pre-owned Condo Units

16.2％

18.2％

Whole Building

24.8％

28.3％

Total

22.8％

25.1％

* Excluding valuation loss and reversal of valuation loss under LCM

24.0% 26.3% 20.3% 21.1% 28.6% 22.3% 22.7%

28,000

(¥million)

23,717

FY2024 3Q(9M)

24,000

3,708

FY2023

GPM 25.3%

20,000

GPM 23.5%

15,487

16,000

10,299

13,911

3,637

12,000

20,008

2,454

7,579

5,939

3,686

4,613

8,000

4,098

3,245

2,006

9,298

4,000

7,845

8,164

4,333

2,297

3,932

0

1,801

FY2023

FY2023

FY2023

FY2023

FY2024

FY2024

FY2024

1Q

2Q

3Q

4Q

1Q

2Q

3Q

(¥million)

FY2023

FY2023

FY2024

FY2024 Revised

FY2024 Initial

3Q(9M)

3Q(9M)

Forecasts

Forecasts

Revenue

41,596

47,535

33,498

36,472

45,889

Gross Profit

9,928

11,183

8,463

9,050

9,171

Operating Profit

8,156

8,877

5,931

5,828

6,181

No. of Sales

90

106

89

-

163

(pre-ownedcondounits)

No. of Sales

36

45

33

-

50

(whole building,other)

  • Gross profit includes the following valuation loss and reversal of valuation loss under LCM: FY2023; +¥365M, FY2024 3Q(9M); +¥48M

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

Shinjuku-ku, building complex

Yokohama-shi,income-generating apt.

(office/apartment)

(sold to Tosei Reit)

Chuo-ku, vacant office

Setagaya-ku, vacant office

7

Development Business

ComponentRatio

Operating Profit

26.0%

Revenue ¥14.9B (up 113.5% YoY), operating profit ¥5.0B (up 307.2% YoY)

Sold logistics facility "T's Logi Ome" and commercial facility "T'S BRIGHTIA Jiyugaoka" in 1Q Sold wood-frame rental apartment "T's Cuore UkimafunadoⅠ " in 3Q

Revenue/Gross Profit Margin

Example of Sold Properties

■ Detached House/Land Lot/ Housing Construction

■ Condominium

■ Whole Building

(Rental Apt./Commercial Facility/ Logistics Facility)

Gross Profit Margin1 of Sold Properties

FY2023

FY2024 3Q(9M)

Property for End Users2

27.2％

29.1％

Whole Building

31.9％

38.6％

Total

29.4％

37.4％

Gross Profit Margin

1 Excluding valuation loss and reversal of valuation loss under LCM

2 Condo, detached house etc.

31.5%

38.4%

49.4%

41.1%

17,000

28.7%

30.2%

15,000

14.1%

13,034

13,000

FY2023

FY2024 3Q(9M)

11,000(¥million)

GPM 29.4%

GPM 39.4%

9,000

7,000

4,644

12,772

5,000

3,000

1,752

2,154

617

1,300

641

827

154

160

232

232

261

288

1,000

2,335

1

1,300

924

352

455

FY2023

FY2023

FY2023

FY2023

FY2024

FY2024

FY2024

1Q

2Q

3Q

4Q

1Q

2Q

3Q

(¥million)

FY2023

FY2023

FY2024

FY2024 Revised

FY2024 Initial

3Q(9M)

3Q(9M)

Forecasts

Forecasts

Revenue

7,014

7,246

14,975

17,422

18,650

Gross Profit

2,100

2,133

5,905

6,417

6,249

Operating Profit

1,242

1,036

5,061

5,194

5,030

T's Logi Ome

T'S BRIGHTIA Jiyugaoka

(logistics facility)

(commercial facility)

No. ofSales

49

52

21

-

63

(detachedhouse,etc.)

No. ofSales

21

21

-

-

-

(condominium)

No. of Sales

2

2

3

-

2

(whole building)

T's Cuore UkimafunadoⅠ

(wood-frame rental apt.)

THE Palms Court Denenchofu

(detached house for high-end customer)

* Gross profit includes the following valuation loss and reversal of valuation loss

under LCM:

8

FY2023; +¥5M, FY2024 3Q(9M); +¥361M

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

Development Business -Future Development Plan-

Development Project Schedule (holding/scheduled to be completed)

Completed

Logistics Facility ・T's Logi Sano

Condominium

・THE PALMS Kashiwa

・THE PALMS Chiba-chuo

・THE PALMS Nishi-chofu

Rental Apartment ・THE PALMS Higashi-ōi

・THE PALMS Kinshicho

・THE PALMS MachidaⅡ

Wood-frame Rental

・T's Cuore Shiinamachi

Apartment

・T's Cuore UkimafunadoⅡ

・T's Cuore Yotsugi

・T'S BRIGHTIA KichijojiⅡ Rental Office/ ・T'S BRIGHTIA Oyamadai

・T'S BRIGHTIA JiyugaokaⅡ

Commercial Facility ・Monzennakacho Tosei Building ・Kojimachi Tosei Building

Detached House

  • Projects and names are subject to change
  • Hotels held as fixed assets are not included

FY2024 4Q

FY2025

FY2026 and after

No. of Buildings

Expected Disposition Value

1 building

¥6,500M

・Tanmachi, Yokohama-shi PJ

2 buildings

・Kozukue, Yokohama-shi PJ

¥7,780M

・Toyotama-kita,Nerima-ku PJ

・Kamirenjaku, Mitaka-shi PJ

・Higashi-ogu,Arakawa-ku PJ

17 buildings

・Isogo, Yokohama-shi PJ

・Kamirenjaku, Mitaka-shi PJⅡ

・Miyazaki, Kawasaki-shi PJ

・Yono, Saitama-shi PJ

・Haramachida, Machida-shi PJ

・Ojima, Koto-ku PJ

・Nakano, Nakano-ku PJ

¥23,654M

・Shinmaruko, Kawasaki-shi PJ

・Yagisawa, Nishitokyo-shi PJ

・Nagasaki, Toshima-ku PJ

・Minamiota, Yokohama-shi PJ

24 buildings

・Shimo, Kita-ku PJ

・Nogata, Nakano-ku PJ

・Shibamata, Katsushika-ku PJ

・Haginaka, Ota-ku PJ

・Jiyugaoka, Meguro-ku PJ

・Kamiishiwara, Chofu-shi PJ

・Mitsukyo, Yokohama-shi PJ

・Koenji-minami,Suginami-ku PJ

・Anamori-Inari,Ota-ku PJ

・Minami-Nagasaki,Toshima-ku PJ

¥5,619M

・Daita, Setagaya-ku PJ

and 7 other projects

・Morino, Machida-shi Office PJ

7 buildings

・Asakusa, Taito-ku Office PJ

¥12,706M

385 units

¥26,975M

51 buildings + 385 units

Total

¥83,236M

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

9

Progress of Acquisitions -Acquisition Amount and Inventories-

Acquired and delivered properties (51 whole buildings, 78 pre-owned condo units, 125 units worth land lots for detached houses) worth ¥59.4B in expected disposition value

Including the contracted not yet delivered properties of ¥14.1B, reached ¥73.5B worth of properties against full-year target (progress rate 73.6%) Acquired 25 income-generating offices etc. (expected disposition value approx. ¥12.9B) in 3Q(9M), through business succession support

Trends in Annual Acquisition Amounts (expected disposition value)

Example of Acquired Properties

Revitalization: Stripes, Development: Filled

■ Detached House, Land Lot

■ Land Lot etc.

  • Whole Apt./Rental Apt./Wood-frameRental Apt.■ Office

■ Condominium

■ Pre-ownedCondoUnits

  • Logistics Facility
  • Hotel
  • CommercialFacility

Delivered + Contracted1

¥73.5B

Delivered

¥59.4B

FY2024

Acquisition Target

¥100B

(delivery basis)

100,000

(¥million)

80,841

80,000

3,842

3,226

12,107

1,018

60,000

3,810

1,502

487

7,939

40,000

10,307

1,999

20,000

34,599

0

92,831

13,464

8,080

1,519

7,780

53,150

17,220

7,211

4,414

3,392

1,482

25,620

10,828

10,207

1,181

1,538

14,074

17,963

(Delivered + Contracted)

73,587

(Delivered)

59,413

Detached House,

Land Lot

10,312

Rental Apt./

Wood-frame Apt.

9,025

Logistics Facilities

768

Land Lot etc.

1,199

Pre-owned

Condo Units

13,611

Whole Apt.

10,211

Commercial

Facility

5,364

Office

8,920

Development

¥19.3B

（down 15.6％ YoY）

Revitalization

¥40.0B

（up 1.5％ YoY）

Kawasaki-shi, vacant bldg

Chiba-shi, income- generating office (acquired through business succession support)

TOPICS Progress of Acquisitions Utilizing M&A

Track Record 21PJs

Acquisition of company/business 4PJs

Acquisition of properties through

real estate M&A/business succession support 17PJs, 88 properties

＜Executed in FY2024＞

2PJs (real estate holding company in Chiba-shi and Nakano-ku)Income-generating apartments/offices etc. 25 properties,

expected disposition value ¥12.9B

＜To be executed＞

Real estate holding company in Yokohama-shi

FY2021

FY2022

FY2023

FY2024 3Q(9M)

1 Contracted: Properties before delivery but already contracted

* For more details on the inventories (expected disposition value), please see PP.17-18

Copyright © 2024 TOSEI CORPORATION, All Rights Reserved.

Income-generating apartment 1 property, expected disposition value ¥1.4B

10