Leopalace21 Corporation

Transcription

1 Explanatory Session the Fiscal Year Ended March 27 May 27 Leopalace21 Corporation This document and reference materials may contain ward-looking statements, so please understand that actual results may differ significantly from these ecasts due to various factors.

2 Contents [Results Core Businesses during the Year Ended March 27] Results FY Our Group (Consolidated)... 3 Actual Results FY in Construction and Leasing.. 4 [Outline Fiscal-Year Results] Highlights FY Results (Consolidated & Non-consolidated)... 6 Highlights FY Results Parent & Major Subsidiaries... 7 Outline Balance Sheets and Cash Flows (Consolidated) Prit/Loss Major Segments (Consolidated)... 9 [Earnings Forecasts] Earnings Forecasts (Consolidated & Non-consolidated) Net Sales and Gross Prit Adjusted FY Lag between Contracts and Sales Prit/Loss Forecasts Major Segments (Consolidated) [Status Major Strategic Business Ventures] Residential Business and Silver Business Broadband Business and Leopalace Resort Business.. 16 [Appendix] New Housing Starts New Housing Starts (Units under 3 square meters) Forecasts Number Households by Type... 2 Forecasts Number Single Households Usage Pattern Leopalace21 s One-Room Units and Contract Type) Interest-Bearing Liabilities and Equity Ratio Trend in Shareholders

3 Results Core Businesses during the Year Ended March 27

4 Results and Forecast FY Our Group (Consolidated) - Net sales and prits the FY ended March 27 were both up significantly. Actual Actual Figures Figures and and Forecast Forecast Net Net Sales Sales Actual Actual Figures Figures and and Forecast Forecast Operating Operating Prit Prit & & Recurring Recurring Prit Prit Yen 1 mil 8, 7,67 Yen 1 mil 9 7, 6, , 5, 4,222 4,762 4, , 5 3, 4 2, 3 1, 2 4/3 5/3 6/3 7/3 8/3 (E) Construction 2,25 2,48 1,952 3,161 3,364 Le asing 1,888 2,165 2,496 2,771 3,162 Hotel Resort Other /3 5/3 6/3 7/3 8/3 (E) Operating prit Recurring prit

5 Actual Results and Forecast FY in Construction & Leasing - Construction: Orders the FY ended March 27 totaled 34.6 billion yen, an increase 1.1% year-on-year! - Leasing: Occupancy rates rose by.4 percentage point to 92.8% the FY ended March 27! Trend Trend in in Actual Actual Results Results and and Forecast Forecast Construction Construction Trend Trend in in Actual Actual Results Results and and Forecast Forecast Leasing Leasing Yen 1 mil X 1, Yen 1 mil 4, 5 1,2 1% 3,5 3, 2,5 2, 1,5 1, 5 4/3 5/3 6/3 7/3 8/3 (E) , /3 5/3 6/3 7/3 8/3 (E) 9% 8% 7% 6% 5% Orders received 2,27 2,522 3,94 3,46 3,5 Month-to-month sales ,6 Orders received outstanding 1,57 1,99 2,241 2,486 2,622 Of which, repeat sales Managed units Occupancy rate during FY 88.3% 89.1% 92.4% 92.8% 93.9% 4

6 Outline Fiscal-Year Results

7 Highlights FY Results (Consolidated & Non-consolidated) Consolidated Non-Consolidated (Unit: Yen million) FY ended Mar. 27 FY ended Mar. 26 Change in amount Percentage change FY ended Mar. 27 FY ended Mar. 26 Change in amount Percentage change Net sales 631,68 465, , % 624, , , % Gross prit 156, ,458 45, % 158,31 111,816 46, % Gross prit ratio (%) 24.8% 23.9%.9% % 24.5%.9% - Selling, general & administrative expenses 8,887 7,683 1, % 83,556 72,281 11, % Operating prit 76,7 4,775 35, % 74,745 39,534 35, % Operating prit ratio (%) 12.% 8.7% 3.3% - 12.% 8.7% 3.3% - Recurring prit 73,2 44,151 28, % 74,183 38,752 35, % Recurring prit ratio (%) 11.6% 9.5% 2.1% % 8.5% 3.4% - Net income (loss) 37,358 (16,582) 53,94-39,597 (33,346) 72,944-6

8 Highlights FY Results Parent & Major Subsidiaries (Unit: Yen million) FY ended Mar. 27 FY ended Mar. 26 Change in amount Percentage change Mar. 27 depreciation expenses Mar. 26 depreciation expenses Leopalace 21 Corporation Net sales 624, , , % 2,674 2,679 Recurring prit 74,183 38,752 35, % Net sales 7,878 7, % 1,722 1,612 MDI Guam Recurring prit (loss) (366) 3,545 (3,911) - Foreign exchange gain 219 3,87 (3,651) - TPH Others & exclusion Net sales 1,269 2,199 (93) -42.3% Recurring prit (loss) (57) 3 (87) - Net sales (2,93) (1,556) (537) Recurring prit (loss) (758) 1,824 (2,582) - Net sales 631,68 465, , % 4,557 4,563 Consolidated total Recurring prit 73,2 44,151 28, % Foreign exchange gain 51 4,78 (4,279) - (Note 1) MDI Guam: MDI Guam Corporation (local subsidiary in Guam) (Note 2) TPH: Trianon Palace Hotel de Versailles S.A. (local subsidiary in France) 7

9 Outline Balance Sheets and Cash Flows (Consolidated) Balance Sheets the FY ended March 27 Cash Flows the FY ended March 27 (Unit: Yen million) FY ended Mar. 27 FY ended Mar. 26 Change in amount <Assets> Current assets 186, ,518 23,36 Cash & cash equivalents 75,166 44,612 3,554 Trade receivables & accounts receivable completed projects 9,594 8,114 1,479 Operating loans 8,51 1,426 (1,924) Real estate sale 27,765 7,524 2,241 Payout construction in progress 8,818 35,249 (26,43) Fixed assets 268,19 249,128 19,62 Buildings & structures 8,626 83,666 (3,4) Land 118,255 17,216 11,38 Construction in progress 4,397 1,964 2,433 Total assets 454, ,83 42,16 <Liabilities> Current liabilities 216,914 25,674 11,239 Long-term liabilities 52,12 55,855 (3,734) Total liabilities 269,35 261,53 7,55 <Shareholders' equity> Share capital - 55,64 - Capital surplus - 33,759 - Retained earnings - 53,123 - Total shareholders' equity - 133,622 - Shareholders' equity ratio % - <Shareholders' equity> Share capital 55, Capital surplus 34, Retained earnings 85,7 - - Total shareholders' equity 185, Shareholders' equity ratio 37.% - - (Unit: Yen million) FY ended FY ended Mar. 27 Mar. 26 Cash flows from operating activities 63,38 56,971 Net income bee taxes & adjustments 69,329 (22,743) Depreciation expenses 4,559 4,565 Increase (decrease) in retirement benefit reserves directors 2,986 - Foreign exchange loss (51) (4,78) Equity-method investment loss (income) 2,32 (512) Impairment loss 3,9 65,48 Gain on sales affiliates stock (2,514) (31) Gain on sale affiliates' bonds (1,119) - Decrease (increase) in assets receivable ,237 Decrease (increase) in inventories - (39,212) Decrease (increase) in real estate sale (18,554) - Decrease (increase) in amount paid uncompleted works 26,43 - Decrease (increase) in long-term prepaid expenses (12,366) (7,345) Increase (decrease) in accounts payable (2,571) (1,28) Income taxes paid (4,559) (13,81) Cash flows from investing activities (15,93) (11,266) Payout purchase & proceeds from sale tangible assets (21,822) (12,279) Payout purchase & proceeds from sale affiliates' stock 3,9 - Proceeds from sale affiliates' bonds 2,88 - Cash flows from financing activities (17,18) (47,946) Proceeds from & repayment short-term debt 1,736 (1,814) Proceeds from & repayment long-term debt (9,655) (32,23) Proceeds, repayment & redemption on privately placed bonds (3,441) (1,843) Dividends paid shareholders (4,781) (2,39) Net increase in cash & cash equivalents 3,554 (2,24) Cash & cash equivalents at end period 75,166 44,612 8

10 Prit/Loss Major Segments (Consolidated) (Unit: Yen million) Construction Division FY ended Mar. 27 Sales comparison FY ended Mar. 26 Sales comparison Change in amount Percentage change Net sales 316, ,22 12, % Gross prit 16, % 65, % 4, % Operating prit 74, % 39, % 35, % Leasing Division Net sales 277, ,699 27, % Gross prit 49, % 46, % 3,11 6.5% Operating prit 7,31 2.5% 8,79 3.2% (1,48) -13.% Hotel Resort Division Net sales 1,842 1,869 (26) -.2% Gross prit % % (9) -2.% Operating prit (loss) (2,628) - (2,667) Other Division Net sales 31,187 12,149 19, % Gross prit 4, % 1, % 2, % Operating prit (loss) 1,91 3.5% (393) - 1,485 - *Values each are bee eliminations between segments. 9

11 Earnings Forecasts

12 Earnings Forecasts (Consolidated & Non-consolidated) (Unit: Yen million) FY ending Mar. 28 FY ended Mar. 27 Change in amount Percentage change Leopalace 21 Corporation Net sales 7, 624,553 75, % Gross prit 176,44 158,31 18, % Sales, general &administrative expenses 95,84 83,556 12, % Operating prit 8,6 74,745 5, % Recurring prit 78,6 74,183 4,417 6.% Net income 42,2 39,597 2,63 6.6% MDI Guam TPH Others & exclusion Net sales 8,85 7, % Operating prit 412 (615) 1,27 - Net sales - 1, Operating prit - (68) - - Net sales (2,15) (2,93) (57) - Operating prit 1,188 1,945 (757) - Net sales 76,7 631,68 75, % Gross prit 175,8 156,895 18,95 12.% Consolidated total Operating prit 82,2 76,7 6, % Recurring prit 8, 73,2 6, % Net income 43, 37,358 5, % (Note 1) MDI Guam: MDI Guam Corporation (local subsidiary in Guam) (Note 2) TPH: Trianon Palace Hotel de Versailles S.A. (local subsidiary in France) 11

13 Net Sales and Gross Prit Adjusted FY Lag between Contracts and Sales Yen 1 mil Yen 8, 1 mil Construction Division 7,67 7,67 8, 7, Other Construction Division Division 7, 6,316 Other Division 6,316 6, 6, 4,653 4,762 4,762 5, 4,653 5, 4,188 4, 4, 3, 3, 2, 2, 1, Consolidated Net Sales (unadjusted) YoY growth 11.9% 4/3 4/3 5/3 5/3 6/3 7/3 8/3(E) Yen 1 mil 8, 7, 6, 5, 4, 3, 2, 1, Consolidated Net Sales (adjusted) Construction Division Other Division 4,188 5,23 4,762 4,762 5,23 5,766 5,766 7,67 7,67 YoY growth 22.6% 4/3 5/3 6/3 7/3 8/3(E) Yen 1 mil 2, 1,6 1,2 8 4 Consolidated Gross Prit (unadjusted) Construction Division Other Division 1,57 1,187 1,114 1,568 1,568 1,758 YoY growth 12.% Yen 1 mil Yen 2, 1 mil 1,6 1,2 8 4 Consolidated Gross Prit (adjusted) Construction Division Other Division 1,57 1,57 1,187 1,187 1,282 1,282 1,41 1,41 1,758 1,758 YoY growth 25.5% YoY growth 22.5% 4/3 5/3 6/3 7/3 8/3(E) 4/3 5/3 6/3 7/3 8/3(E) 12

14 Prit/Loss Forecasts Major Segments (Consolidated) (Unit: Yen million) FY ending Mar. 28 Sales comparison FY ended Mar. 27 Sales comparison Change in amount Percentage change Construction Division Net sales 336,4 316,117 2, % Orders received at FY-start 248,6 224,196 24,44 1.9% Orders received during FY 35, 34,66 9, % Gross prit 19,5 32.6% 16, % 2, % Operating prit 74,9 22.3% 74, % 286.4% Leasing Division Net sales 316,2 277,166 39, % Units managed at end-fy 448, ,5 6, % Average units managed during FY 42,43 37,426 49, % Average occupancy rate during FY 93.9% 92.8% 1.1% - Gross prit 6, % 49, % 11, % Operating prit 1,8 3.4% 7,31 2.5% 3, % Hotel Resort Division Net sales 9,4 1,842 (1,442) -13.3% Gross prit 1,32 14.% % Operating prit (loss) (2,) - (2,628) Other Division Net sales 48,4 31,187 17, % Gross prit 8, % 4, % 3, % Operating prit (loss) 3,2 6.6% 1,91 3.5% 2, % *Values each are bee eliminations between segments. 13

15 Status Major Strategic Business Ventures

16 Residential Business and Silver Business Residential Business Results the term ended March 26 Results the term ended March 27 Forecast the term ending March 28 Purchase contracts Sales Revenue million yen 8,34 3,167 5, Value sales contracts concluded million yen 1,566 6,685 17,32 Units sold units Revenue million yen 839 6,974 15,56 Revenue Total units sold units Total revenue Residential Business million yen 1,743 14,15 23,5 *Includes real estate development. Lu Cerna Asumigaoka-Higashi, Chiba City, Chiba Silver Business Results the term ended March 26 Results the term ended March 27 Forecast the term ending March 28 Direct operation Under contract Revenue million yen ,3 Total units as end term units Total value contracts million yen 7,526 6,852 12,6 Units ordered units Revenue million yen 2,417 4,46 7,7 Azumien Minami-Sakurai, Kasukabe City, Saitama 15

17 Broadband Business and Leopalace Resort Business <Broadband Business> Number residential units with broadband installed as the end the term 1, units 千戸 Residential units with broadband installed Residential units 開通戸数 under management 管理戸数 5/3 6/3 7/3 8/3 11/3 (E) 5/3 6/3 7/3 8/3( 計画 ) 11/3( 計画 ) 168, 289, 344, 45, Approx. 6, 5/3 6/3 7/3 8/3 (E) Users 116, 23, 32, 357, Sales (yen) 3.5 bil. 7.4 bil bil bil. Gross prit (loss) on sales (yen) (2.18) bil..44 bil..85 bil. 2. bil. <Leopalace Resort Business (MGC)> (Unit: 1, US dollars) FY 25 FY 26 Q1 results (Jan. - Mar.) Interim results (Jan. - Jun.) Q3 results (Jan. - Sep.) FY 25 resutlts (Jan. - Dec.) Net sales 19,593 35,28 49,419 67,137 Operating prit (loss) 2, , ,627 Depreciation expenses 3,528 7,8 1,629 14,221 Occupancy rate (Leopalace Resort) 72.4% 61.5% 56.3% 57.7% Occupancy rate (Westin) 7.4% 65.5% 65.7% 63.7% Q1 results (Jan. - Mar.) Interim results (Jan. - Jun.) Q3 results (Jan. - Sep.) FY 26 results (Jan. - Dec.) Net sales 19,779 36,49 5,676 67,695 Operating prit (loss) 1, ,252-5,288 Depreciation expenses 3,665 7,329 11,14 14,798 Occupancy rate (Leopalace Resort) 76.% 64.5% 59.2% 59.9% Occupancy rate (Westin) 62.4% 58.3% 58.9% 57.4% Of Of which $422.6 million is is impairment loss. 16

18 Appendix

19 New Housing Starts -New housing starts during the FY under review (supply) reached 1,285,, an increase 2.9%. Growth was driven particularly by the leasing sector, where new supply grew by 3.9%, or 537, units. Single family homes in housing development basically showed a flat trend with an increase.4%. (Based on housing starts statistics the FY March 27, Ministry Land, Infrastructure & Transport) New New Housing Housing Starts Starts (No. (No. use use breakdown) breakdown) X 1, 1,4 1,2 1,145 1,173 1,193 1,249 1,285 1, (Units) 3/3 4/3 5/3 6/3 7/3 Leased units 454,55 458,78 467, , ,943 House with land (after subdivision) 115, , ,43 137, ,394 Apartments 198,432 22,376 27,442 23, ,826 Owner-occupied houses 365,57 373,15 367, , ,7 Company housing 9,539 8,11 9,413 8,515 9,1 Other 1,986 2,122 2,172 1,786 2,283 Compared with FY 6/3: +3.9% +.4% 18

20 New Housing Starts (Units under 3 square meters) -Within new residential household units (left graph), which have been further narrowed down to those under 3 square meters, the year-on-year growth rate is high at 3.8%. The cause this growth can be understood to be from studios, whose share the total leasing market has reached 23.7%. -Further, the right graph shows the number new units supplied in studios (Construction Division) by our company within the new residential leasehold units under 3 square meters. During the term under review our share total supply housing units reached 43.8%. (Based on housing start statistics the FY March 27, Ministry Land, Infrastructure & Transport) Trend Trend in in No. No. New New Residential Residential Leaseholds Leaseholds Overall Overall & Market Market Share Share Units Units under under 3 3 Square Square Meters Meters Trend Trend in in No. No. New New Residential Residential Leaseholds Leaseholds under under 3 3 Square Square Meters Meters & Our Our Market Market Share Share X 1, 6 X 1, New residential lease holds 22.9% 23.6% 24.3% 23.7% 23.7% 3/3 4/3 5/3 6/3 7/ Under 3 m Compared with FY 6/3: +3.9% +3.9% % 39.6% 39.6% 4.4% Under 3 m Our supply units % 3/3 4/3 5/3 6/3 7/3 *Our supply units represents actual units sold. Compared with FY 6/3: % +12.5%

21 Forecasts Number Households by Type - As the decline in births continues, looking at the Japanese population ( which the population decline and graying are key issues) by type household, the segment those living alone amounted to million households in 25, representing 29.5% total households. In 21, there will be million such households, representing 3.3%. Further, estimates in 225, there will be an increase to million households, amounting to 34.6% total households. This signifies that Japanese household composition a huge segment those living alone will be med at high speed. (Based on the 25 Census & 23 Number Households and Future Estimates, National Institute Population) Forecasts Forecasts No. No. Households Households by by Type Type X 1, householders 6, 46,782 49,63 5,139 5,476 5,27 49,643 5, 4, 12,911 (27.6%) 14,457 (29.5%) 15,169 (3.3%) 17,159 (34.6%) 3, 2, 1, 2/1 25/1 21 (E) 215 (E) 22 (E) 225 (E) Singles 12,911 14,457 15,169 15,984 16,663 17,159 Singles parents with kids 3,578 4,112 4,4 4,625 4,75 4,794 Married couples 8,835 9,637 1,421 1,589 1,57 1,291 Married couples with kids 14,919 14,646 14,169 13,517 12,776 11,998 Others 6,539 6,212 5,981 5,761 5,574 5,41 2

22 Forecasts Number Single Households -The following graph is based on a breakdown by age the data single households on page 19. Although there will be a definite decline in the number singles 35 years age and younger living alone the usual purpose one-room units with the falling birthrate, there is a possibility that this decline can be covered by an increase in corporate users, or by targeting those 65 years age and older use hobbies or nursing care. Leopalace21 s share the market under-35 single households was 2.7% in 2, and 6.5% in 25. (Based on the 25 Census & 23 Number Households and Future Estimates, National Institute Population) Forecasts Forecasts No. No. Single Single Households Households X 1, householders 18, 16, 12,911 14,457 15,169 15,984 16,663 17,159 14, 12, 1, 23.5% 26.7% 39.6% 8, Our share units managed 6, 4, 2, 41.1% 2.7% 35.6% 6.5% 2/1 25/1 21 (E) 215 (E) 22 (E) 225 (E) 65 and over 3,32 3,865 4,79 5,664 6,354 6,81 35 to 64 4,577 5,444 5,917 6,161 6,389 6,573 Under 35 5,32 5,148 4,544 4,16 3,921 3, % 21

23 Usage Pattern Leopalace21 s One-Room Units and Contract Type - As a result an expansion in use the Monthly Leopalace Flat, one our main products, there is progress in cultivating a new market. -Based on the diverse needs, new use segments are steadily expanding. (Based on our company data, end-march 27) Breakdown Breakdown Users Users Month-to-Month Month-to-Month Leases Leases No. No. Tenants Tenants by by Contract Contract Type Type Temporary stay to visit hospitalized relation.2% Temporary stay during home renovations /rebuilding.6% Study Training 2.8% Temporary stay betweens moves 1.2%.3% Job assignment away from home.2% Business trips 37.5% Domestic tourism (indivisual).2% General 35.6% Tourism (eigners).% Temporary use ( space) 1.4% Domestic tourism (group).% X 1, Daily use because long commute.4% Living alone.9% Comapany domitories 15.4% Student domitories 3.3% 99/3 /3 1/3 2/3 3/3 4/3 5/3 6/3 7/3 Monthly General

24 Interest-Bearing Liabilities and Equity Ratio -Approximately 11.4 billion yen liabilities were repaid during the FY ended March 27. Total outstanding borrowings as end March 27 stood at 53.1 billion yen. Also, compared with the last FY-end, the equity ratio has increased to 37.%. Trend in Borrowings & Equity Ratio (Consolidated) Yen 1 mil 2,3 4% 1,8 1,3 37.% 35% 3% 25% 8 2% % 1% 5% -7 Borrowings (incl.bonds) 1,83 1,627 1, (Year-on-year comparison borrowings) 3/3 4/3 5/3 6/3 7/3 (142) (23) (54) (442) (114) Equity ratio 16.6% 19.3% 33.% 32.4% 37.% % 23

25 Trend in Shareholders Trend in Shareholders 8% Foreign companies 49.88% 6% 4% Financial institutions 19.49% Individuals, others 24.38% 2% (Of which are trust banks 16.36%) % Corporations 5.28% 3/3 4/3 5/3 6/3 7/3 Financial institutions 16.57% 17.48% 27.84% 27.61% 19.49% (Of which are trust banks) 13.39% 13.93% 22.72% 22.96% 16.36% Corporations 7.68% 6.15% 8.12% 7.43% 5.28% Foreign companies 16.19% 29.43% 28.46% 37.56% 49.88% Individuals, others 58.42% 45.3% 34.35% 26.88% 24.38% 24