Akatsuki Corp. Introduction to Akatsuki Corp.

Transcription

1 Introduction to 1

2 Akatsuki Corp. Akatsuki Securities Inc. Leadway Ltd. Total Estate Group EW Asset Management Co., Ltd. My Trunk Ltd. Securities Services Gold Trading Real Estate Restoration (Renovation) Development of Nursing housing Mini self-storage room operator 2

3 1. Achievement in the past 5 years 2. Introduction to our subsidiaries 3. Earning forecast in FY03/ Our 3-year Plan 3

4 Achievements in the past 5 years ( ) 4

5 5 years ago in 2011 Kurokawa Kitoku Financial Group ( Currently known as ) <Securities Business> <Real Estate business> Akatsuki Securities, Inc Yutaka Shoji Co., Ltd. My Trunk Ltd. 5

6 Objectives in 2011 To strengthen the Securities Business => Enlarged the revenue from the Securities section. To incubate another Core Business => Stabilized earnings for the whole group. To enlarge our Capital => Increased Shareholders Equity as part of our Capital. 6

7 From Akatsuki Financial Group, Inc. (Currently known as ) <Securities Business> <Real Estate Business> Akatsuki Securities, Inc. Yutaka Shoji Co., Ltd. My Trunk, Ltd. EW Asset Management Co,.Ltd. Nihon Securities Journal Inc. Nihon Securities Journal Research Inc. Total Estate, Ltd. Total Tec Co., Ltd. Global Investment Management Inc. Trade Lab Co., Ltd. Total Estate Jyutaku Hanbai Wealth Management, Inc Leadway, Ltd Capital Solution, Inc Richesse Management, Ltd. Hotel W Management Osaka Minami 7

8 Present < Securities Business > <Real Estate Business> My Trunk, Ltd. EW Asset Management Co., Ltd. Akatsuki Securities, Inc. Leadway, Ltd Total Estate, Ltd. Total Tec Co., Ltd. Total Estate Jyutaku Hanbai 8

9 Transition of Our Business Composition (Sales) Real Estate Business 5% Securities Business 95% Others 5% Real Estate Business 80% Securities Business 15% 8 Times FY03/2012 : 29 billion FY03/2018(Forecast):218 billion 9

10 Growth of Shareholders Equity (Million Yen) 10,000 Dividend and Stock buy-back 8,000 6,000 3 Times 1,501 4,000 7,476 8,977 2,000 3,

11 Growth of Book Value Per Share (Million Yen) Dividend and Stock buy-back Times ROE (Return On Equity) 15%

12 Stock Performance and Book Value Per Share (yen) Book Per Share Stock Price Present PBR * (*) Price Book-Value Ratio : Stock price/book Per Share 12

13 Introduction to our subsidiaries 13

14 Akatsuki Securities, Inc. 14

15 Akatsuki Securities, Inc. Started as the Guild of Money-Exchangers One of the Opened Member of Osaka-Stock Exchange years 15

16 Akatsuki Securities, Inc. Client Assets (Yen Trillion) 2 trillion and above Total 256 companies * 0.5~2trillion 0.5 Trillion and less (about 200 companies) Small size Local Brokerage houses (*) Source :FACT BOOK 2016(Japan Securities Dealers Association) 16

17 Akatsuki Securities, Inc. Branch Location Osaka Osaka Shiga Nagahama Saitama Niiza Shiki Hyogo Kakogawa Akou Tokyo Main Branch Kanagawa Hiratsuka Musashikosugi Mie Matsuzaka Shizuoka Iwata Chiba Narita Youkaichiba 17

18 Akatsuki Securities, Inc. Diversified Marketing Channel Acquisition of Nakaizumi Securities(Iwata, Shizuoka) Akatsuki Securities, Inc. Nakaizumi Securities, Inc. 18

19 Akatsuki Securities, Inc. Diversified Marketing Channel Amount of Partnered IFA * Rank Sep/2012 Rank May/2017 Securities Company Number of Partnership Securities Company Number of Partnership 1 SBI Ace Ace SBI Mitsubishi UFJ Mitubishi UFJ 86 4 PWM 85 4 PWM 85 5 SMBC Nikko 66 5 Rakuten 62 6 Takagi 60 6 Akatsuki Securities 46 7 Hibiki 46 7 Securites Japan 43 8 Nissan Century 37 8 Nissan Century 43 9 Super Fund 35 9 Takagi Securites Japan Super Fund Aizawa 藍澤 ニュース 6 19 Tokai Tokyo 4 20 Air's 4 20 Traders 3 21 Akatsuki Securities 0 21 Sankyo 3 (*) IFA: Independent Financial Advisors which have business alliance with securities companies 19

20 Akatsuki Securities, Inc. We have lowered the break-even point due to streamlining of our operations (%) Revenue/expense of our customer assets 2.7 Oprating Profit Ordinary Expense (*) Operating expense: Operating Expense of Securities Business 20

21 Akatsuki Securities, Inc. Shareholders Equity(Dividend Included*) (Million Yen) 6, ,040 4, ,000 2,587 3,095 4,382 5,033 5,101 4, (*) Dividend: dividend minus equity increase. 21

22 Wealth Management, Ltd. Since Dec 2016, it was no longer a subsidiary and excluded from consolidation 22

23 Wealth Management, Ltd. (formerly known as Dreamvisor HD) Acquisition of Dreamvisor HD Financial Media Services Nihon Securities Journal Withdrawal from Financial Media Services 23

24 Wealth Management, Ltd. (formerly known as Dreamvisor HD) Started Real Property Finance business to strengthen its hotel business Dojima Hotel Ibis Styles Osaka 24

25 Wealth Management, Ltd. (formerly known as Dreamvisor HD) Shareholder s Equity (million Yen) 3,000 2,500 2,000 1,500 1, Started real property services business グループ会社化 Acquisition Withdrawal from financial media business 1,182 1,198 1,639 2, *1 *2 divested portion of our stake in Wealth Management (*1) Only FY 03/2013, accounting term is 9 month. (*2) Due to sell its stock and exclusion of our subsidiary in Oct/2016, we used financial result in Dec/

26 EW Asset Management (Management of Healthcare Fund) 26

27 EW Asset Management Co., Ltd. (Management of Health Care Fund) One of the biggest private senior housing development funds in Japan EW Asset Management Nursing Housing Management Nursing Housing Operator Lease Invest / Develop Health Care Fund Invest 27

28 EW Asset Management Co., Ltd. (Management of Health Care Fund) (Kanagawa)Assisted Living Sajima Operator :ZEN Wellness (Saitama)Assisted Living Kawagoe Operator: ZEN Wellness 28

29 EW Asset Management Co., Ltd. (Management of Health Care Fund) (Hyogo)Irise Ohgi Operator:Hasegawa Care Service (Tokyo)Sunrise Vila Nishi-Kasai(Temporary name) Operator : LIKE Carenext 29

30 EW Asset Management Co., Ltd. (Management of Health Care Fund) (Osaka)Royal Residence Gotenyama Ⅱ Operator: Social welfare Research Institute (Osaka)Heart land Hirakata Operator :Kawashou 30

31 EW Asset Management Co., Ltd. (Management of Health Care Fund) Historical and Projected * adjusted net asset (Million Yen) 5,000 Selling Profit or Loss Adjusted Net Aseet 4,000 1,000 or more 3,000 3,400 3,300 3,300 3,300 3,400 3,600 3,700 2, (*) Assume we divested all the properties from FY03/2020 to FY03/

32 Total Estate Group 32

33 Total Estate Group Acquisition of Total Estate Group (Jul/2017) 33

34 Total Estate Group Business model Purchase Renovation Sale Individual Family 34

35 Total Estate Group To enhance property value through renovation Before After 35

36 Total Estate Group Rank Ranking of secondhand condos and apartments investment by value in Japan in 2016 * No. of transactions 1 Intellex (Listed with First Section of Tokyo) 1,393 2 Daikyo Group(Listed with First Section of Tokyo) 1,236 3 Fuji Corporation (Listed with First Section of Tokyo) 1,214 4 Total Estate (Unlisted) FJ Next(Listed with First Section of Tokyo) e grand (Listed with Second Section of Tokyo) Haseko Real Estate(Unlisted) Starmica(Listed with First Section of Tokyo) Fstage (Unlisted) Mugen Estate(Listed with First Section of Tokyo) 368 (*) Source: The Remodeling Business Journal, Existing House Market Datebook

37 Total Estate Group Sales and Profit before tax (Million Yen) Sales Profit before Tax 30,000 25,000 20, ,000 10,000 21,200 26,700 23, , Number of transactions

38 Earning forecast in FY03/

39 Earning forecast in FY03/2018 (Unit:Million Yen, %) FY 03/2017 Results FY 03/2018 Forecast Increase/ decrease Sales 4,312 21, % Operating Profit Ordinary Profit Profit Attributable to owners of parent 458 1, , % 239 1, % 39

40 Earning forecast in FY03/2018 Breakdown of Sales (Million Yen) 20,000 Total Estate Group* Consolidation 15,000 10,000 5, ,312 Akatsuki Corp 1,100 Akatsuki Securities 3, EW Asset management My Trunk ,000 21,800 (*) The sale of Total Estate Group is estimated by calculation in 9-month sale from Jul/2017 to Mar/

41 Earning forecast in FY03/2018 Breakdown of Profit attributable to owners of parent (Million Yen) 1,600 1,400 1,200 1, Akatsuki Corp EW Asset Akatsuki Management Securities Ordinary Profit Taxes and etc *1 Total Estate Group *2 (*1) Corporate Taxes, etc. and profit attributable non-controlling interests (*2) 9-month numbers from Jul/2017 to Mar/ Profit attributable to owners of parent 1,100 1,100 41

42 Our 3-year plan 42

43 Our 3-year plan 1.Akatsuki Securities, Ltd. Expansion of customer s asset Striving to provide high quality investment intelligence and services 2. Total Estate Group Strengthen the procurement system Optimization of financial status 3. EW Asset Management Co., Ltd. Commencement of divesture of holdings Launch the 2 nd health care fund 43

44 Our 3-year plan Sales (Projection) (Million Yen) 45,000 30,000 45,000 15, ,321 21,

45 Our 3-year plan Breakdown of Sales (Projection) (Million Yen) 60,000 50,000 40,000 Total Estate Group Consolidation 30,000 20,000 Akatsuki Securities EW Asset Management My Trunk 45,000-41,000 51,000-45,000 10, ,800 4,000-3,500 1,

46 Our 3-year plan Profit Attributable to Owners of Parent (Projection) (Million Yen) 3,000 2,000 1, ,500 1,

47 Our 3-year plan Consolidated Shareholders Equity (Projection) *1 (Million Yen) 15,000 *2 10,000 5,000 7,475 10,100 *2 14, (*1) We calculated with estimating 17 billion capital increase by exercising 75% of shareholder-assigned share option. (*2) Amount of dividend and stock buy-back are included. 47

48 Our 3-year plan Consolidated Book Value Per Share (Projection) (Yen) * (*) We calculated with estimating 17 billion capital increase by exercising 75% of shareholder-assigned share option. 48

49 Disclaimer The information set out in this presentation (the Presentation ) has been produced by (the Company ) and is being made available to recipients for information purposes only. It does not constitute, nor is it intended to be an offer to sell, or an invitation to subscribe for, or purchase, any securities in the Company. The information set out in this Presentation has not been independently verified and may be subject to updating, completion, revision and amendment. The Presentation does not purport to summarize all the conditions, risks and other attributes of an investment in the Company. The content of this Presentation is not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own professional advisors for any such matters and advice. The information contained in this Presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase the securities discussed herein in any jurisdiction. This presentation contains certain forward-looking information and statements. Such forward-looking information and statements are based on the current, estimates and projections of the Company or assumptions based on information currently available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give assurance to the correctness of such information and statements. These forward-looking information and statements can generally be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as "targets", "believes", "expects", "aims", "assumes", "intends", "plans", "seeks", "will", "may", "anticipates", "would", "could", "continues", "estimate", "milestone, forecast, projection or other words of similar meaning and similar expressions or the negatives thereof. By their nature, forwardlooking information and statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements that may be expressed or implied by the forward-looking information and statements in this presentation. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the Company's actual financial condition or results of operations could differ materially from that or those described herein as anticipated, believed, estimated or expected. Any forward-looking information or statements in this presentation speak only as at the date of this presentation. Except as required by applicable laws, the Company does not intend, and expressly disclaims any obligation or undertaking, to publicly update, correct or revise any of the information included in this presentation, including forward-looking information and statements, whether to reflect changes in the Company's expectations with regard thereto or as a result of new information, future events, changes in conditions or circumstances or otherwise on which any statement in this presentation is based. Given the aforementioned uncertainties, recipients are cautioned not to place undue reliance on any of these forward-looking statements.