Company Overview FY

Transcription

1 Company Overview FY JASDAQ Code:899 Shinoken Group Co., Ltd. President Director and CEO Hideaki Shinohara Index Segments and Main Subsidiaries 2 Consolidated Result Highlights 3 Balance Sheet Highlights 4 Ratios for each Business segments 5 Business Segment Result Highlights 6 Real Estate Sales Business 7 Real Estate Management Related Business 11 General Contractor Business 13 Energy Business 14 Elderly Care Business 15 Other Business 18 Growth Strategy 19 New 3-year Business Forecast 25 Establishing Tokyo HQ and office transfer 26 Shareholder Returns 27 Reference Materials 28 Disclaimer Shinoken Group Co., Ltd. All Rights Reserved 1

2 Business Segments Real Estate Management Related Business Rental Management Condominium Management Guarantee of Rent etc. Small-amount Short-term insurance Shinoken Facilities and Main Subsidiaries Real Estate Sales Business Apartment Sales / Condominium Sales Shinoken Produce Shinoken Harmony Listed Affiliated Companies Properst (19.4%) JASDAQ:Stock Code 3236 Something HD(21.2%) JASDAQ: Stock Code 148 Shinoken Amenity Mansion Life Shinoken Communications JICC SSI (5%) General Contractor Business Contracts for Corporate, Individual and Government related customers and Shinoken Ogawa Construction Ogawa Building Shinoken Group (Holding Company) Energy Business Retail of LP Gas / Electricity SK Energy (Fukuoka) SK Energy Nagoya SK Energy Tokyo Established June 5, 199 Capital JPY 1,55.62 million (As of Dec 31, 217) Headquarters Tenjin, Chuo-ku, Fukuoka-shi (Building Name: Acros Fukuoka) Number of Employees 866 (Entire Group as of As of Dec 31, 217) Locations Domestic : Tokyo, Fukuoka, Nagoya, Osaka, Sendai and Sapporo Overseas : Hong Kong, Shanghai, Singapore and Indonesia Elderly Care Business Possess & Run Serviced Housing for the Elderly Day Service / Group Home Shinoken Wellness Other Business Overseas business SKG INVEST ASIA(HONG KONG) SHINOKEN REAL ESTATE (SHANGHAI) PT. Shinoken Development (Indonesia) Shinoken & Hecks Pte. Ltd. (Singapore)(34%) OGAWA Construction Rep Office (Indonesia) 25 SK Energy Sendai SK Energy Osaka Friend Apple Care Companies 218 Shinoken Group Co., Ltd. All Rights Reserved 2

3 Consolidated Result Highlights Exceeded 1 Billion Net Sales, 1 Billion Ordinary Income 8th consecutive year of Growth in Sales and Profit 6th consecutive year of Record High Profit Net Sales Operating Income Ordinary Income FY Result 15,936 Mil (Forecast : 15, Mil) YoY13.3% FY Result 12,92 Mil (Forecast : 11,7 Mil) YoY122.2% FY Result 12,21 Mil (Forecast : 11, Mil) YoY123.3% Profit Attributable To Owners of Parent FY Result 8,489 Mil (Forecast : 7,8 Mil) YoY127.4% (Million ) (Million ) (Million ) (Million ) 125, 15, 15, 12,5 1, 81,294 15,936 12,5 1, 1,57 12,92 12,5 1, 9,895 12,21 1, 8,489 75, 5, 25, 39,724 55,7 7,5 5, 2,5 4,74 6,86 7,5 5, 2,5 4,32 6,448 7,5 5, 2,5 2,886 4,447 6, Shinoken Group Co., Ltd. All Rights Reserved 3

4 Balance Sheet Highlights Assets Liabilities Net Assets 9,972 Mil 18,699 Mil Increase from end of FY (JPY Million) Cash and Deposits 13,524 23,52 9,978 Real Estate for Sale 26,624 28,631 2,7 Costs on Real Eestate Business 15,336 19,285 3,949 Other Inventories Property, plant and equipment 6,143 6, Other Assets 1,638 12,649 2,11 Total Assets 72,273 9,972 18,699 Current portion of bonds Short-term Loans Payable 15,98 23,611 7,72 Bonds 1,596 1, Long-term Loans Payable 2,24 22,4 2,375 Total of Liabilities with interest 37,962 48,521 1,558 Other Liabilities 15,761 16,6 316 Total Liabilities 53,724 64,582 1,857 Total Net Assets 18,548 26,39 7,841 Total Liabilities and Net Assets 72,273 9,972 18,699 Capital adequacy ratio 25.6% 29.% 3.4pt Figures less than JPY 1 Million are rounded down in the (JPY Million) section. 64,582 Mil 1,857 Mil Increase from end of FY Previous Fiscal Year ( ) Current Fiscal Year ( ) 26,39 Mil 7,841 Mil Increase from end of FY Comparison 218 Shinoken Group Co., Ltd. All Rights Reserved 4

5 Ratios for each Business segments in the Consolidated Result 75.1% 76.7% Real Estate Sales Business Net Sales Profits Segment Profits (Adjusted amounts are not shown) 9.7% 1.1% Real Estate Management Related Business FY % 1.3% Other Business 1.2%.6% Elderly Care Business 1.1% 1.5% Energy Business 12.8% 9.8% General Contractor Business 218 Shinoken Group Co., Ltd. All Rights Reserved 5

6 Business Segment Result Highlights Real Estate Sales Business Real Estate Management Related Business General Contractor Business Growth in both Sales and Profit Growth in both Sales and Profit Growth in both Sales and Profit Net Sales & Profit ( Million) 9, 75, 6, 45, 3, 15, 79,578 59, % 14.2% 9,337 11, Profit Ratio 3.% 25.% 2.% 15.% 1.% 5.%.% Net Sales & Profit ( Million) 12, 1, 8, 6, 4, 2, 1,229 8, % 14.6% 1,173 1, Profit Ratio 3.% 25.% 2.% 15.% 1.% 5.%.% Net Sales & Profit ( Million) 15, 12,5 1, 7,5 5, 2,5 13,532 11, % 1.7% 1,448 1, Profit Ratio 3.% 25.% 2.% 15.% 1.% 5.%.% 1,5 1, Energy Business Growth in both Sales and Profit Net Sales & Profit ( Million) % 136 1, % Profit Ratio 3.% 25.% 2.% 15.% 1.% 5.%.% 1,5 1, Elderly Care Business Growth in Sales, Decrease in Profit (Due to the initial costs for new facility) Net Sales & Profit ( Million) 1, % 1, % Profit Ratio 3.% 25.% 2.% 15.% 1.% 5.%.% Other Business Growth in both Sales and Profit Net Sales & Profit ( Million) 97.7% % Profit Ratio 15.% 125.% 1.% 75.% 5.% 218 Shinoken Group Co., Ltd. All Rights Reserved 6

7 Real Estate Sales Business Apartments that Shinoken Provides1 Basic Philosophy : For office workers to achieve land through usage of rent income Areas that can achieve Continuous High Occupancy =Steady Rent Income Within 1 minutes walking distance from a train station Single household population shows a growth trend Still more land that can be cultivated Purchase and hold prime condition land, and sell together with the Apartment building Tokyo Area (Tokyo, Kanagawa, Chiba) Kansai Area (Kyoto, Osaka, Kobe) Sendai Nagoya Fukuoka 218 Shinoken Group Co., Ltd. All Rights Reserved 7

8 Real Estate Sales Business Apartments that Shinoken Provides2 Both New Standard BRICK & New Standard PLATFORM won the award for Design, Functionality and Concept Projects(Partial) FY Share of each area (FY216.12) Projects(Partial) Kansai (Kyoto, Osaka, Kobe) 16.2% (13.4%) Sendai 8.4% (9.1%) Fukuoka 13.2% (17.9%) Tokyo 29.3% (24.3%) Nagoya 32.8% (35.3%) 218 Shinoken Group Co., Ltd. All Rights Reserved 8

9 Real Estate Sales Business Condominiums that Shinoken provides Projects(Partial) Purchasing decent land within the Capital area, Planning and Developing Condominiums for single households Since Condominiums are relatively lower price than Apartments, they work as introductory products for the investors. FY Condominium Sales Newly Built and Second Hand Our new strategy in Minato, Chiyoda, Chuo wards, etc. Renovation Condominium Second Hand 1.5% Condominium Sales Takes place in Tokyo Newly-Built 89.5% For Lower Prices Carefully selecting High- Quality establishments that are old but high demand for renting out Not a mare Repair Full-Renovation Initiated by Shinoken Meets both needs of both Owner and Tenant Good Location and High Revenue Potential Ideal as a Condominium for Investment 218 Shinoken Group Co., Ltd. All Rights Reserved 9

10 Real Estate Sales Business Results for Apartments and Condominiums Apartment:Steadily growing, under our policy to continuously boost new sales Condominium:Moving as planned, under our policy to keep annual sales at a certain level Net Sales Profit ( Million) 7, 6, 5, 4, 3, 2, 1, 17.2% Profit Ratio 23,759 13,287 1,838 13,664 4,152 5, % 15.7% Apartment Net Sales Condominium Net Sales Segment Profit 41,47 Transition of the profit ratio It is due to the increase of Apartment sales. Each profit ratio for Apartment and Condominium are the same 61, % 17,715 18,29 9,337 11, :Profit Ratio=(Segment Profit) (Apartment Net Sales+Condominium Net Sales) 2:Due to our recent changed of Segment classification, Net Sales and Segment Profit for 14/12 and 15/12 are based on Rough Estimate. Profit Ratio 1 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% Order Backlog:Continuously adding up as potential sales within FY 218 or further future FY Result FY Result YoY Apartments 51,16 Mil 56,115 Mil 19.6% Condominiums 2,999 Mil 1,76 Mil 56.8% 218 Shinoken Group Co., Ltd. All Rights Reserved 1

11 Real Estate Management Related Business Rental Management/Condominium Management Number of Cases (Cases) 3, 2, 1, 15,31 3,114 Steady increase in accordance with sales Rental Management (Left) 18,261 Condominium Management (Right) 3,75 22,21 4,687 27,358 +5,337 from end of FY216 5, from end of FY216 (Cases) 8, 6, 4, 2, Occupancy Rate 1.% 99.% 98.% 97.% 96.% 95.% Nearly 98%, Including the rooms from our Establishment era FY217 FY216 FY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec FY217 Average Occupancy 97.97% FY216 Average Occupancy 97.32% FY215 Average Occupancy 97.13% 218 Shinoken Group Co., Ltd. All Rights Reserved 11

12 Real Estate Management Related Business Guarantee of Rent etc. Providing support for both Owner and Residence in case of payment delinquencies Achieving new customers and higher collection rate, by service improvement ans expansion Delinquency rate (Right) (%) (Cases) 25, 2, 15, 1, 5, 11,86 Steady Increase according to Number of Management Cases 686 Cases (Left) 14,58 21,6 +4,476 from end of FY216 Guaranteed amount (Right) 17,124 1, from end of FY216 1, ( Million) 2,5 2, 1,5 1, Shinoken Group Co., Ltd. All Rights Reserved 12

13 General Contractor Business OGAWA Construction established 199. Continuously making good progress in achieving construction orders from new customers, Including corporate/individual/government agencies due to strengthening of sales activities. ( Million) ( Million) 25, External Sales 5, Sales within Shinoken G Total 2, Net Sales Segment Profit 18,41 4, Total (Left) (Right) 15,97 Total 15, 13,4 3, Total 1, 1,98 13,532 11,741 9,382 1,44 1,452 2, 1,69 8,798 5, 518 1, 4,18 4,228 4,58 1, FY214 was a Nine-month irregular closing period Order Backlog: Expected to be recorded as Net Sales within FY or after Result Result YoY Order Backlog 9,266 Mil 11,535 Mil 124.4% 3% Shinoken Ogawa Net Sales by Clients 7% External 3% Others Shinoken Condominium Contractor 7% Ogawa 218 Shinoken Group Co., Ltd. All Rights Reserved 13

14 Energy Business LP Gas Supply and Retail of Electricity For Apartments / Condominiums sold by Shinoken. Retail of Electricity started in Apr. 217 Selling LP Gas and Electricity as a package will simplify procedures, lower costs, thus be the benefit of the residents. Increased value will ultimately be the benefit of the owners. ( Million) 1,5 13,41 15,569 LP Gas Supply (Right) 2,498 Electricity Supply (Right) 26,849 +6,351 from end of FY216 6,269 (Cases) 3, 25, 2, 15, 1, 5, ( Million) 3 1,2 Net Sales (Left) Segment Profit (Right) 1, Due to our recent changed of Segment classification, Net Sales and Segment Profit for 14/12 and 15/12 are based on Rough Estimate. 218 Shinoken Group Co., Ltd. All Rights Reserved 14

15 Elderly Care Business Ju-Life Plan Providing a solution for Aging Population and Room Vacancies Life Support Service Practical usage of vacant rooms in existing Apartments/Condominiums originally aimed for younger users Emergency Call Food Delivery Homes possible to be provided with safety and low price for elderly people to rent, by coordinating with caretaking/medical/catering vendors etc. Buzzer Vacancy Vacancy Daily Handy Service Keep Watch Day Service Visit Diagnosis Visit Dentistry Visit Massage 24H Operator handles 24H 365Days under thoroughly organized care system 218 Shinoken Group Co., Ltd. All Rights Reserved 15

16 Elderly Care Business Housing with Services for the Elderly, Day Service and Home Help, Care Management Housing with Services for the Elderly Own and run 3 facilities with a total of 32 rooms in Tokyo and Fukuoka Day Service and Home Help, Care Management Own and run 2 facilities in Tokyo and Fukuoka Providing Visit care and Home care service. Housing with Services for the Elderly Housing with Services for the Elderly 32 rooms Occupancy(As of Dec.31, 217) 97.6%(Actual) 99.6%(Applied) Housing with Services for the Elderly Tokyo (Itabashi-ku) Ju-Life Takashimnadaira 46 Rooms Fukuoka City (Higashi-ku) Ju-Life Aqua-Villa Kashiihama 21 Rooms Largest scale in Kyushu Day Service Home Help, Care Management Fukuoka Prefecture (Kasuya-gun) Applife Higashi Fukuoka Housing with Services for the Elderly Tokyo (Itabashi-ku) Ju-Life Tokiwadai 55 Rooms First Tokyo Promotional Business Housing with Services for the Elderly with Secure Medical / Longterm Care Services in Itabashi-ku Day Service Home Help, Care Management Applife Takashimadaira Acquired No.1 Ranking Among Popular Facilities in Home s Care, Japan s Largest Portal Site 218 Shinoken Group Co., Ltd. All Rights Reserved Same Building as Ju-Life Takashimadaira 16

17 Elderly Care Business Group Home and Multifunctional Small Group Home Group Home Own and run 7 facilities with a total of 144 rooms in Tokyo, Osaka and Fukuoka Multifunctional Small Group Home Own and run 2 facilities in Osaka and Fukuoka Total 144 rooms Occupancy(As of Dec.31, 217) 97.9%(Actual) Group Home Group Home Multifunctional Small Group Home Fukuoka City Friend Kasumigaoka Tokyo (Itabashi-ku) Friend Takashimadaira Group Home Group Home Group Home Group Home Group Home Multifunctional Small Group Home Higashiosaka City Friend Higashiosaka Osaka City (Nishinari-ku) Friend Tengachaya Osaka City (Tennoji-ku) Friend Tennoji Osaka City (Tennoji-ku) Friend Fudegasaki Osaka City (Chuo-ku) Friend Osaka Chuo 218 Shinoken Group Co., Ltd. All Rights Reserved 17

18 Other Business Overseas Business China and Singapore : Real Estate / Rental Brokerage Indonesia: Construction and Real Estate Development Singapore Real Estate / Rental Brokerage Shinoken & Hecks Real Estate / Rental Brokerage Rental brokerage for Japanese expats Real Estate sales for local wealthy consumers China Real Estate / Rental Brokerage SHINOKEN REAL ESTATE (SHANGHAI) Rental brokerage for Japanese expats Real Estate sales for local wealthy consumers Indonesia Construction OGAWA Construction Rep Office Advisary to Local General Contractors JO for Government/Private projects Real Estate Development, Planning, Sales PT. Shinoken Development Indonesia Apartment Development 218 Shinoken Group Co., Ltd. All Rights Reserved 18

19 Growth Strategy Expanding business proactively with two growth strategies as pillars Thus further strengthening business bases Real Estate Sales Business Real Estate Management Related Business General Contractor Business Energy Business Elderly Care Business Other Business Growth Strategy 1 Strengthen Existing Business Strengthen sales and New business With a focus on Domestic Real Estate Strengthen the stock business Through acceleration of sales Growth Strategy 2 Formulate Overseas Business & Domestic/Overseas M&A Establish Overseas Business Model Implement M&A To strengthen business bases and expand business fields Real Estate Sales Business Real Estate Management Related Business General Contractor Business Energy Business Elderly Care Business Other Business 218 Shinoken Group Co., Ltd. All Rights Reserved 19

20 Growth Strategy1 Real Estate Fund ~Shinoken Asset Managemen~ 2 of our Harmony Terrace Apartments in central Tokyo, with the scale of 3 Billion Central Tokyo Area 2 units 3 Billion Compose Profit Asset Management Invest Dividend Investor Image Further acceleration in our Existing Business Areas Planning to compose 3~5 Billion scale fund Every year Fukuoka Nagoya Osaka Sendai Tokyo Compose Profit Asset Management Investment by Crowd Funding Dividend Domestic and Foreign Institutional and Individual Investors 218 Shinoken Group Co., Ltd. All Rights Reserved 2

21 Growth Strategy2 Formulate Overseas Business ~Indonesia~ Office set up in Wisma 46, the landmark building in Central Jakarta PT. Shinoken Development Indonesia Ogawa Corporation Indonesia Office 24 th Floor 218 Shinoken Group Co., Ltd. All Rights Reserved 21

22 Growth Strategy2 Formulate Overseas Business ~Indonesia~ Localizing Shinoken s apartment brand Harmony Terrace to Indonesia Project #1 Conceptual drawing Project #2 Conceptual drawing Project #3 Conceptual drawing Project #4 Land Project #1 Construction Site Project #5 Land 218 Shinoken Group Co., Ltd. All Rights Reserved 22

23 Growth Strategy2 Formulate Overseas Business ~Indonesia~ Acquiring our business partner contractor Mustika Highway Construction Mustika holds experience in Infrastructure related projects, business with Japanese companies, and will aim to obtain more new project orders in the growing Indonesian market of 26 million population Power Plant Construction 218 Shinoken Group Co., Ltd. All Rights Reserved 23

24 Growth Strategy2 Formulate Overseas Business ~Indonesia~ Accelerating our Indonesian Business by acquiring Mustika Developing an Integrated system from Development to Construction within the central Jakarta Area Formulating the same Stock Business Structure as in Japan Purchasing Land Construction Completion / Handover Management Leasing Follow-up Developing a primary source of revenue in the highly growing Indonesian Market 218 Shinoken Group Co., Ltd. All Rights Reserved 24

25 New 3-year Business Forecast Through our careful examination of the Business environment, and our forecast of continuous positive growth trend in our business, we have revised our medium term business plan and set a new 3-year Business Forecast FY ( Million) 15, Resutts New Forecast Latest Resutt Previous Plan 15, ( Million) 2, Consolidated Net Sales Plan: 15, Mil Result: 15,936 Mil 1.8% Achievement 13, 11, Net Sales (Left) Ordinary Income (Right) 12, 115, 15, , 125, 14,5 15,8 17,5 15, Consolidated Ordinary Income Plan: 1,5 Mil Result: 12,21 Mil 116.2% Achievement 9, 7, 81,294 9,895 12,21 13,2 11,5 12,5 12,5 1, Further Goals to Achieve 1Net Income over 1, Mil 2Capital Adequacy Ratio over 4% 3Virtually Debt-Free Management 5, 3, 55,7 6, <Current> 218 Shinoken Group Co., Ltd. All Rights Reserved 25 7,5 5,

26 Establishing Tokyo Head Office and office transfer Changing our Tokyo Office to Tokyo Head Office, Initiating double Head Office system and Office transfer to Nippon Life Hamamatsucho Crea Tower 2 th floor Purpose Further business expansion in the capital area Strengthening the force of Sales, Gathering/Dispatching information, IR activities Obtaining a wide range of employees Conceptual drawing(outer North-West Corner) 218 Shinoken Group Co., Ltd. All Rights Reserved 26

27 Shareholder Returns Continuing our special dividend scheme since FY Ordinary Dividends Mid-term 3. Term-end 3. Total 6. Special Dividends Special Dividends 6. or 12. Ordinary Income in FY Initial Forecast : 13,2 Mil If Over 14,52 Mil (1% increase) : 6. If Over 15,84 Mil (2% increase) : 12. FY or 66. or 72. ( ) 円 円 円 円 Special Dividends 円 218 Shinoken Group Co., Ltd. All Rights Reserved Ordinary Devidends 普通配当 Special Dividends 6. 円 Memorial Dividends + 1. Forecast ( ) 各期の 1 株当たりの配当額は株式分割を考慮した値 Ordinary Dividends 33. Ordinary Devidends

28 Reference Materials 218 Shinoken Group Co., Ltd. All Rights Reserved 28

29 Reference Materials : Small-amount Short-term Insurance JICC SSI (Small-amount Short-term Insurance) For Residents to Live in their Rooms without worries Developed Original products (First in Japan) for the Residents and started selling them in Jul Solitary Death Insurance Stalker Expense Insurance Pet Expense Insurance Home Helper Expense Insurance Covers expenses for: Repairs and cleaning of stains/soiled interiors in order to return the room to its original state Covers expenses for: Necessary costs upon dealing with stalkers; such as Cameras (to provide proof) or lawyer fees etc. Covers expenses for: Expenses for Pet hotels or other expenses related to the death or injury and damage of/caused by a pet Covers expenses for: Expenses for home helpers to temporarily come and assist with house work when necessary For Owners to Rent out their Rooms without worries Developed Original product Rent management support insurance and started selling it from Sep. 215 Insurance for Restoration Covers expenses for: Restoring the state of the Room to its original condition Cleaning / deodorizing, Maintenance Cleaning up of mementos of the deceased after Becoming a property that experienced an accident Limit of the amount to be paid: 6 Months worth of rent Loss Insurance for Rental Income, etc. Covers expenses for: Loss of rental income Costs for taking care of soiled parts that occur from Becoming a property that experienced an accident Limit of the amount to be paid: 3% of 3 years (36 months) worth of rent Actual compensation : 1.8 months worth of rent 218 Shinoken Group Co., Ltd. All Rights Reserved 29

30 Reference Materials: Business Environment Real 不動産販売事業 Estate Sales Business Expecting 入居率の安定 と 投資需要 が将来に亘って望める continuous Stable Occupancy Investment Demands Numbers of single households show an upward trend in the 5 areas where Shinoken operates. Positive factor upon making decisions for Real Estate Investments Trends in Single-person Households (The Main Target of Shinoken) (Unit: 1, Households) 7, 6, 5, 4, 6,232 6,526 6,713 6,821 6,833 6,738 Elderly Care Business Long-Term demand expected until the middle of this century and beyond Population of Elderlies over age 65 is forecasted to increase until it reaches Million in 242, and decrease from then on Ratio of Elderlies is forecasted to increase every year until 25, reaching 38.8% in 25 (Unit: 1, People) Projections for Trends in the Population Ratio of the Elderly (65 and Over) in Japan (Percentage of Population) 3, Under 65 (Left) 65 and Over (Left) 65 and Over Ratio (Right) 2, 16, 4. 1, , 12, 35. Fukuoka Osaka Aichi Tokyo Miyagi Trends in Population and Single-person Households (National Total) (Unit: Million Households) (Unit: Million People) , 8, 6, 4, 2, Non-single-person Households Single-person Households Population 218 Shinoken Group Co., Ltd. All Rights Reserved 3

31 DISCLAIMER This document includes estimations that are based on presumptions, forecasts and plans concerning the future of Shinoken business using March 3, 218 as the date of reference. Thus, actual business results may greatly differ from any estimations contained herein due to a variety of unforeseen reasons and circumstances such as economic trends and the changing states of business environments. For Inquiries Please Contact Investor Relations Shinoken Group Co., Ltd. Investor Relations Dept. TEL: WEB: Shinoken Group Co., Ltd. All Rights Reserved 31