Financial results Presentation For the year ended September 30, 2016

Transcription

1 Financial results Presentation For the year ended September 30, 2016 Laguna Baycourt Club (Scheduled to be opened in Spring, 2019) Resorttrust, Inc. Securities code 4681

2 Section 1: Business Results Summary, Medium- to Long-term Strategy Results Highlights for 2Q FY 2016 Overview of revised plan for FY 2016 Developments in Progress and Strategy for the Medium-term Management Plan Next 40 Plans and Measures Highlights for FY 2016 P.2-4 P.5 P.6 P.7 1

3 Financial Highlights <Difference> Aside from the lower income in the Membership Operation Segment due to a decrease in sales volume of hotel memberships and an increase in sales of unopened properties (higher deferred revenue), income was lower in the Hotel and Restaurant Operation Segment as well due to factors such as weather conditions. Other than the above, foreign exchange losses of 1.04 billion were recorded, contributing to lower ordinary income. <YoY Change> Lower income was due to the transient revenue from the sale of golf club membership recorded during the same period of the previous year (impact on profit: approximately ( 0.9 billion)) Other than the above, principal factors for lower income were a decline in contract amounts due to effects of saturation of Ashiya sales, and forward personnel expenses and rebranding costs incurred in the Hotel and Restaurant Operation Segment. 2

4 Analysis of Operating Income (Before allocating overhead cost ) /9 Targets Membership Segments Before allocating to indirect costs Analysis of Operating Income (Difference) Hotel&Restaurant Segments Before allocating to indirect costs Medical Segments Before allocating to indirect costs Other Segments Before allocating to indirect costs Decrease in other Expenses ( Billions) 2016/9 Results /9 results Membership Segments Before allocating to indirect costs Include Golf Membeship profit 0.90 Analysis of Operating Income (YoY Change) Hotel&Restaurant Before allocating to indirect costs Medical Segments Before allocating to indirect costs Other Segments Before allocating to indirect costs Decrease in other Expenses Include Renovation cost 0.35 *Hotel trusty Nagoya Shirakawa ( Billions) The Company allocates companywide indirect costs proportionately to the ratio of the amount of income before allocation in each segment (for segment income after allocation, see p.11) 2016/9 results 3

5 Contract Values for 2Q Although sales during 2Q (April-September) of FY2016 fell short of initial plans, there were no significant changes to trends and contract amounts are steadily growing year by year, except for FY2015 in which the release of Ashiya was a prominent factor XIV Toba bettei sales began (January 2014) Sales significantly increased as Ashiya Baycourt Club sales began (June 2015) GOLF HIMEDIC Laguna Baycourt Club sales began (August 2016) 0.0 2Q FY2013 2Q FY2014 2Q FY2015 2Q FY2016 Base growth line for hotel membership contract amounts (approximation) 4

6 Overview of revision Target Contract amounts down 2.0 billion ( 36.0 billion to 34.0 billion) Yugawara Rikyu: Lower deferred profits to be realized during FY2016 *Recorded upon opening in March Medical: Higher sales due to strong operations by Kosei Co., Ltd., etc. Cancer Intelligence Care Systems, Inc. newly consolidated (no effect on income for FY2016) Certain costs to decrease, etc., such as indirect costs, etc. (portions linked to sales, etc.) <Assumptions for revised second half plans> Key changes versus initial plans (Second half: Net sales 1.9 billion, operating income down 1.4 billion *versus initial plans) Revised on Oct. 28,2016 5

7 Developments in the Medium- to Long-term Strategy Penetration of Baycourt brand (Urban membership hotel) XIV Toba Bettei opened, the first property to make full use of Wa (Japanese style) Business Fields Expansion Growth Medium-term Management Plan Next 40 Strategic Image Diagram Customer segment Membership Resort Expansion Growth Medical / Senior Life Growth Acquired The Kahala Hotel & Resort Consideration of extended stay facilities (membership) Expand Senior Life Business Increase number of rooms Hotel Trusty Expansion into Hokuriku area In Yokohama, plan to open a Baycourt with general luxury hotel annex (our first) 2015 TAKENAKA CORPORATION, AXS SATOW INC. HIMEDIC Business expands into Nagoya and Kyoto Opening also scheduled in Zhejiang Province, China Expansion Business Area Expand healthcare business (Group investment: 50%) BNCT Business: Scheduled to begin clinical trials ( Cancer Intelligence Care Systems, Inc. newly consolidated in september,2016 ) 6

8 Measures Highlights for Fiscal Year 2016 Trust Garden Tokiwamatsu opened (April 2016) Expansion of healthcare business, made Kosei Co., Ltd. a consolidated subsidiary (May 16, 2016) (Commencement of joint venture with the ORIX Group) Two HIMEDIC bases to open (June, July 2016) Hotel Trusty Nagoya Shirakawa Rebrand open(june 2016) (HIMEDIC Kyoto University Hospital ) (HIMEDIC Nagoya) XIV Yugawara Rikyu to open Laguna d Baycourt Club (March 2017) sales began (August 2016) Motivating work environment (Employee satisfaction) Seeking excellent hospitality (Customer satisfaction) Improved brand strength 7

9 Section 2: Details of Results for 2Q FY 2016 and Targets for Fiscal Year 2016 Topics for Fiscal Year 2016 P. 9 Results Details for 2Q FY2016 P (by segment, contract values, etc.) Outlook for the Fiscal Year 2016 P

10 Topics for Fiscal Year 2016 (1) Opened a private nursery home Trust Garden Tokiwamatsu, in Shibuya Ward, Tokyo.(April 1, 2016) (2) Launch of Healthcare Business Through Joint Venture between ORIX Corporation and the Resorttrust Group. D Made Kosei Co., Ltd. a consolidated subsidiary in May (May 16, 2016) (3) Holding of the Resorttrust Ladies golf championship was held at Grandee Naruto Golf Club 36. (from May 27 to May 29, 2016) (4) Hotel Trusty Nagoya Shirakawa reopened.(june 20, 2016) (5) HIMEDIC Kyoto University Hospital opened.(june 20, 2016) (6) HIMEDIC Nagoya opened.(july 5, 2016) (7) The Dunlop Srixon Fukushima Open was held at Grandee Nasu Shirakawa Golf Club s course d for conservative years. (from July 21 to July 24, 2016) (8) Started Membership Sales for Exclusive Membership Resort 1 LAGUNA BAYCOURT CLUB HOTEL & SPA RESORT.(since August 22, 2016) (9) Acquired the land for a New Hotel at Atami city in Shizuoka Prefecture. (October 27, 2016) (10) Announced Revision of Forecasts and Dividend plan. (October 28, 2016) (11) XIV Yugawara Rikyu is scheduled to be opened.(march, 2017) 9

11 Segment Sales 10

12 Segment Operating Income 11

13 Segment Sales 2 nd Quarter 12

14 Segment Operating Income 2 nd Quarter 13

15 Contract Values of Membership 14

16 Sales of Membership Segment 15

17 Contract Values of Membership 2 nd Quarter 16

18 Sales of Membership Segment 2 nd Quarter 17

19 Sales of Hotel and Restaurant Segment 18

20 19 Operations by category

21 Sales of Hotel and Restaurant Segment 2 nd Quarter 20

22 21 Operations by category 2 nd Quarter

23 Number of Members, 22

24 XIV Yugawara Rikyu scheduled to be opened on March,

25 Consolidated Balance Sheets 24

26 Consolidated Cash Flows 25

27 Outlook for the Fiscal Year

28 Targets for Fiscal Year

29 Net Sales by segment for Fiscal Year

30 Operating Income by segment for Fiscal Year

31 Reference materials 30

32 ReferenceContract Values for each Quarters 1 st Quarter Billions 2 th Quarter Billions Ashiya Baycourt Ashiya Baycourt Golf Laguna Baycourt 2Q FY2013 2Q FY2014 2Q FY2015 2Q FY2016 The impact of starting sales of the new hotel membership 3 rd Quarter Billions Golf 3Q FY2013 3Q FY2014 3Q FY2015 3Q FY2016 Revision Target 4 th Quarter Billions XIV Yugawara Rikyu XIV Toba Bettei Ashiya Baycourt Laguna Baycourt Golf 4Q FY2013 4Q FY2014 4Q FY2015 4Q FY2016 Revision Target 31

33 ReferenceEffects of Deferred Revenue from properties before completion of construction 32

34 ReferenceEffects of Deferred Revenue from properties before completion of construction Deferred until opening of the facility Extra costs such as real estate acquisition tax and opening cost, which usually about billion yen for each XIV hotel, will be added upon openning. XIV Toba Bettei:0.6 billion XIV Yugawara Rikyu:1.5 billion 33

35 Reference Group s Development schedule * Items not yet confirmed are based on plans as of the date NEXT40 was announced (April 2013) There is the Hotel Business Development Plan in Minato Mirai 21 Central District Block 20 MICE Facility Development Business. We plan to open Yokohama Baycourt Club(tentative) and the Standard Hotel with the same place.(spring, 2020) 34

36 Reference Income and Accounting for a Core XIV Facility (Before completion of construction) Total payment (100%) Contract Framework Completion of Construction 60% of sale price received 80% of sale price received 100% of sale price received Security deposit (10%) Member pays deposit upon signing contract Liability incurred when contract signed* 2 *2 After facility opens, sale is amortized. Registration fee (40%) Member pays registration fee upon signing contract Sale recorded when contract signed Real estate cost (50%) Member pays 10% of total payment upon signing contract Member pays 20% of total at framework raising Sale recorded when facility opens Member pays 20% of total upon completion Example: Membership price of 10 million yen Security deposit: 1 million yen Registration fee: 4 million yen Real estate: 5 million yen Total contract amount: 10 million yen Sale amount recorded Contract 1 million yen 4 million yen 1 million yen* 1 6 million yen 4 million yen Framework 2 million yen* 1 2 million yen Completion of Construction 2 million yen* 1 2 million yen *1 The real estate cost is deferred until the facility opens and is treated as revenue after the facility opens. *2 After facility opens, sale is amortized. At Opening 5 million yen* 1 Cost of Sales 3.5 million yen Annual fee: 0.13 million yen Earnings Recorded Balance-sheet liability recorded * 2 Sale recorded (when contract signed) Sale recorded (when facility opens) 35

37 ReferenceStatus of Personnel Expenses in Hotels and Restaurants for Fiscal Year 2016 In preparation for openings following Yugawara, approximately 500 new employees to increase in April in fiscal year 2016 In the current term, although Toba Bettei will contribute to higher revenue, personnel expenses to increase as forward expenses as in the previous term 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, March 31, 2011 <Trends in Personnel Numbers (Non-consolidated, Full-time Employees) in Hotels and Restaurants> March 31, 2012 March 31, 2013 March 31, 2014 March 31, March 31, Hired in April 2016 Approx. 500 persons April 2016 There were no openings in fiscal year 2015, and personnel expenses increased as forward expenses (Year-on-year increase in personnel expenses: approx. 2.0 billion) In fiscal year 2016, personnel expenses are forecast to increase by about 1.0 billion as forward expenses (Scale: Toba Bettei < Yugawara, Ashiya Opened facilities (contributed to revenue. ) Opened in March 2011 Opened in March 2012 Arima Rikyu Karuizawa PASEO, SV (175 rooms) MUSEO (Total 48 rooms) Upon the Great East Japan Earthquake, conducted revision, etc. Opened in March 2016 Toba Bettei (121 rooms) Opening in March 2017 Yugawara Rikyu (187 rooms) Opening in February 2018 Ashiya Baycourt Club (201 rooms) 36

38 Reference HIMEDIC Base Expansion in Fiscal Year 2016 The number of HIMEDIC members was 7,000 persons as of March 31, 2012, and was over 15,000 members as of March 31, Examination capacity (sales inventory) was enriched by openings (3 bases and 4 facilities) from fiscal 2015 to fiscal After openings, fixed costs are high until membership numbers grow (fiscal ), but they contribute to revenue over the medium- to long-term. (Persons) Number of members at year-end (Persons) (%) 28, Capacity estimates (Persons) Number of members at year-end / Capacity (%) , , From fiscal 2017 onward, the number of members relative to capacity will increase, entering a stage where profitability growth will become easier 16,000 12,000 8,000 4,000 5,964 6,328 6,983 8,235 10,523 13,070 15, Higher fixed revenue 500,000 per member per year Continued openings caused fixed costs to rise Fiscal is a stage where profitability can easily decline Medical examination facility operation 0 Mar. 2010Mar. 2011Mar. 2012Mar. 2013Mar. 2014Mar. 2015Mar. 2016Mar. 2017Mar <Existing 3 facilities) 1. Yamanakako (from Jun. 1994), 2. Osaka (from Aug. 2005), 3. The University of Tokyo Hospital (from Nov. 2006) 0.0 Higher fixed costs On the scale of about 1.0 billion to 1.2 billion per facility a year (when operating at full capacity) 37

39 Disclaimer Regarding Forward-looking Statements Any statements in this presentation document, other than those of historical fact, are forward-looking statements about the future performance of Resorttrust, Inc. and its group companies, which are based on management s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts. 38

40 Securities code