November 16, 2017 Hoosiers Holdings (3284) Second-Quarter Fiscal Year Ending March 31, 2018: Supplemental Explanatory Materials for Financial Results

Transcription

1 November 16, 2017 Hoosiers Holdings (3284) Second-Quarter Fiscal Year Ending March 31, 2018: Supplemental Explanatory Materials for Financial Results

2 Agenda 1. Company information Company overview Group structure History 2. Highlights of 2Q financial results Summary of results Income statement (consolidated) Progress vs. full-year plans (consolidated) Balance sheet (consolidated) 3. 1H topics P3 P4 P5 P7 P8 P9 P H topics/future progress Real estate development Area expansion Supply conditions International businesses Asset management CCRC business/healthcare REIT Medium-term management plan/trends in business performance 5. Dividend plan P22 P23 P24 P25 P26 P27 P28 Real estate development CCRC business Real estate investment International businesses P12 P14 P16 P18 Policies on dividends and returns from earnings Purchase of treasury stock during this fiscal year P31 P32 PFI business P20

3 1. Company information 2

4 Company overview Name Hoosiers Holdings Representative Tetsuya Hirooka, CEO and President Address Employees Marunouchi-Nakadori Building, Marunouchi, Chiyoda-ku, Tokyo, Japan 519 (consolidated) (approx. 40% women) Established April 2013 Hoosiers founded December 1994 Branches Shares traded on Main lines of business Hokkaido, Tohoku, Nagoya, Kyoto, Osaka, Kyushu, Singapore, Portland First Section, Tokyo Stock Exchange (securities code: 3284) Real estate development (including nationwide urban redevelopment), continuing care retirement communities (CCRCs), real estate investment, international businesses, etc. 3

5 Holding company Hoosiers Holdings Group structure Real estate development CCRCs Single-family residences/ multiunit housing Real estate investment Real estate services International businesses Asset management Hoosiers Corporation Hoosiers Care Design Co. Ltd. Hoosiers Avenue Hoosiers Asset Management Condominium management Hoosiers Living Service Fitness-center operation Sports Academy Co. Ltd. Miyanomori Sports Co. Ltd. Crystal Sports Club Co. Ltd. Hoosiers Asia Pacific Pte. Ltd. Hoosiers,Inc. Vermilion Capital Management Other businesses Private finance initiative (PFI) business IEA Co. Ltd. 4

6 History 1994 April Hoosiers Holdings established. December Hoosiers Y.K. established Hoosiers Avenue established Number of units managed surpasses 10,000. January Entered the subcontracted real estate sales industry (as a planning/proposal sales agent). June Restructured from limited liability company to joint-stock company. Renamed Hoosiers Corporation. Hosts largest listing of condominium units in the Tohoku/Sendai area. January AM31 added to Group. (Now Hoosiers Asset Management) 2000 Number of units sold surpasses 1,000. Entered the real estate investment business April Hokkaido Branch opens. October Shares listed on JASDAQ (seven years and 10 months after founding) Hoosiers Living Service established. April Osaka Branch opens. Nagoya Branch opens IEA Co. Ltd. Established. October September Shares listed on Second Section of Tokyo Stock Exchange (eight years and 10 months after founding) Hosts largest listing of condominium units in Saitama Prefecture Shares listed on First Section of Tokyo Stock Exchange (nine years and nine months after founding). July Hoosiers Care Design Co. Ltd. established. Hosts largest listing of condominium units in the north Kanto area. April Sports Academy Co. Ltd. added to Group Number of units sold surpasses 5,000. May Kyushu Branch opens. Hosts largest listing of condominium units in Chiba Prefecture. August Miyanomori Sports Co. Ltd. added to Group Number of units managed surpasses 5,000. December Crystal Sports Club Co. Ltd. added to Group Number of units sold surpasses 10, Number of units sold surpasses 20,000. Hosts largest listing of condominium units in Chiba Prefecture. May Hoosiers Asia Pacific Pte. Ltd. established in Singapore Began conducting business internationally. April Tohoku Branch opens. October Kyoto Branch opens. September Vermilion Capital Management added to Group. October Hoosiers, Inc., established in Oregon, US. 5

7 2. 2Q FY2018: Highlights of financial results 6

8 Summary of results Consolidated business performance Net sales: JPY34,556 million YoY: 184.4% Operating income: JPY5,176 million YoY: 363.5% Ordinary income: JPY4,941 million YoY: 403.7% Net income: JPY3,353 million YoY: 419.4% Topics FY2018 full-year performance forecasts Already achieved more than 82% of full-year figure targeted in plans (ordinary income) 2Q: Record-high income (ordinary income) Fourfold increase vs. previous period (ordinary income) Net sales: JPY60,000 million Progress vs. full year: 57.6% Operating income: JPY6,500 million Progress vs. full year: 79.6% Ordinary income: JPY6,000 million Progress vs. full year: 82.4% 7

9 Income statement (consolidated) Unit: JPY million 2Q FY2017 2Q FY2018 vs. Previous period Performance % Performance % Change YoY (%) Net sales 18, % 34, % 15, % Gross profit 4, % 9, % 4, % SG&A 3, % 3, % % Operating income 1, % 5, % 3, % Ordinary income 1, % 4, % 3, % Net income attributable to parent company shareholders % 3, % 2, % 8

10 Progress vs. full-year plans (consolidated) Unit: JPY million 1Q FY2018 performance 2Q FY2018 performance Progress vs. full-year plan Full-year plan Net sales 15,911 34, % 60,000 Real estate development 3,148 11, % 22,500 CCRCs 6,908 8, % 13,500 Single-family residences/ multiunit housing 1,578 3, % 8,500 Real estate investment 2,822 8, % 10,000 Real estate services 1,448 2, % 5,500 Operating income 2,569 5, % 6,500 Ordinary income 2,458 4, % 6,000 Net income attributable to parent company shareholders 1,684 3, % 3,900 9

11 Balance sheet (consolidated) Unit: JPY million FY2017 2Q FY2018 Change Current assets 88,329 83,007-5,321 Cash and deposits 21,383 20,259-1,124 Real estate for sale 12,718 11,610-1,107 Real estate for sale in process 47,922 44,623-3,299 Noncurrent assets 16,331 25,867 9,536 Land 6,686 8,466 1,779 Buildings and structures 5,310 10,133 4,822 Total assets 104, ,875 4,214 Liabilities 80,129 81,403 1,274 Total interest-bearing debt 63,625 68,932 5,307 (Short-term) interest-bearing debt 14,888 23,169 8,280 (Long-term) interest-bearing debt 48,736 45,763-2,973 Net assets 24,530 27,471 2,940 Total liabilities and net assets 104, ,875 4,214 Capital ratio 23.4% 25.1% Net capital ratio 29.4% 30.9% * Net capital ratio = Capital / (total assets cash and deposits, etc.) 10

12 3. 1H FY2018 topics 11

13 Real estate development (condominiums) Steady progress in concluding contracts 538/595 units 90.4% progress 12

14 Real estate development (condominiums) Properties completed/delivered in 1H FY2018 Duo Hills Higashi-Kawaguchi (Kawaguchi, Saitama Prefecture; 98 units) Duo Veel Shibuya Hatsudai (Shibuya-ku, Tokyo; 18 units) Duo Hills Sendai Kakyoin The Tower (Sendai, Miyagi Prefecture; 95 units) Contracts concluded at completion: 97.4% (221/227 units) Delivery rate at completion: 91.2% (207/227 units) 13

15 First steps into the CCRC business Tomorrow PLAZA multipurpose health facilities opens on July 28. A base for the city of Hino s integrated community/ human-resources/employment creation strategy Hoosiers Holdings Hoosiers Corporation Hoosiers Care Design Co. Ltd. Hoosiers Asset Management Hoosiers Living Service Sports Academy Co. Ltd. Miyanomori Sports Co. Ltd. Developer, operator Long-term care, community engagement Property management Building management Athletic activities Athletic activities Tamadaira, Hino, Tokyo (eight minutes on foot from Toyoda Station on the JR Chuo Line) Deploying similar businesses nationwide based on the CCRC theme The centerpiece for a healthcare REIT 14

16 First steps into the CCRC business Tomorrow PLAZA multipurpose health facilities open July 28. Condominiums = Developed in house Multipurpose CCRC facility 3,551 people Hospital 5,099 people = REIT = Ideal form of CCRC 15

17 Real estate investment Enhancing leasing/fee-based businesses Enhancing fee-based businesses Sale of Hidaka-Kuratomi Solar Power Plant (Megasolar) Enhancing leasing business Acquisition of Kofu Washington Hotel Plaza Annual power generation: approx. 12 million kwh/year Handling operations/ management under contract Acquisition of lease properties Expanding stable earnings 16

18 Real estate investment Enhancing leasing/fee-based businesses (JPY100 million) 30.0 Trends in net revenue from leasing activities FY2017 2Q FY2018 FY2018 Expanding stable earnings 17

19 Full-scale launch of international businesses Thriving business in the Asia-Pacific area First 500 units of La Casa (tentative name) sold out on first day Vietnam: Ho Chi Minh Projects Skyline Skyline AnGia Skyline (471 condominium units) AnGia Riverside (246 condominium units) Cambodia Project La Casa (tentative name) (2,370 condominium units) ARATA (tentative name) (773 townhouse units) First strategic moves toward full-scale investment 18

20 Full-scale launch of international businesses Condominium development project launched in Bangkok, Thailand Joint development project with a local developer THE EXCEL HIDEAWAY SUKHUMVIT 50 (Total units: 772) First 360 units sold out on first day A strong start for our international businesses 19

21 PFI business Awarded contracts for two new initiatives. May Awarded contract for Harayama Park redevelopment/operation project in Sakai, Osaka Prefecture. September Awarded contract for development and operation of eastern school lunch joint preparation facility in Otsu, Shiga Prefecture. Already awarded two of the three contracts targeted for each year (67% progress). Steady progress on winning new contracts Expanding fee-based businesses 20

22 4. 2H topics/future progress 21

23 Real estate development Nationwide urban redevelopment projects: Community revitalization Utsunomiya PEAKS (Utsunomiya, Tochigi Prefecture, 209 units) Contracts concluded for 100 units in first month of sales Strong progress in concluding contracts in projects for next year 22

24 Area expansion Advancing into key provincial cities with populations of approx. 200,000 or more Target 131 cities Now 59 cities (As of the end of September 2017) * 52 cities as of the end of March 2017 Growing to cover all cities in Japan 23

25 Supply conditions (condominiums) Steady supply Planned total deliveries in FY2019 through FY2021 3,300 units Now 3,300 units Number of units supplied set in goals for medium-term management plan already secured 24

26 International businesses: Advancing into North America North American subsidiary established in Portland, Oregon. Project launched to develop rental residences for seniors based on the CLT* construction method. *Cross-laminated timber Skyline Joint project with regional leader in CLT construction Taking on the challenges posed Securing expertise by eco-friendly construction Growing business development in North American area 25

27 Full-scale entry into asset management business Acquired shares in Vermilion Capital Management Aims to cover the entire range of the real estate investment business Hoosiers Asset Management SPC REIT REIT Development Sale Off-balance sheet Securitization AM VCM Growing fee-based businesses 26

28 Future deployment of CCRC business FY2020: Listing a healthcare REIT CCRC business Condominiums Healthcare REIT Hospitals Clinics Fitness centers Tomorrow PLAZA PFI (29 sites already operating) (P14) Listing a REIT 27

29 Targets under medium-term management plan FY2021 targets Net sales JPY100 billion Ordinary income JPY10 billion 28

30 業績の推移 中期経営計画達成状況 Trends in business performance and progress in achieving the goals of the medium-term management plan Net sales (JPY100 million) 1,200 Net sales performance Net sales target Ordinary income performance Ordinary income target Ordinary income (JPY100 million) 120 1, , FY2014 FY2017 FY2021 Making rapid progress with V-shaped recovery 29

31 5. Dividend plan 30

32 Policies on dividends and returns from earnings FY2015 FY2016 FY2017 FY2018 Net income (JPY million) Dividends per share Total dividends (JPY million) 3,079 1,835 3,357 3,900 (planned) JPY14 JPY14 JPY24 JPY29 (planned) Interim: JPY14; year-end: JPY (planned) Payout ratio 14.0% 22.7% 19.7% 20.5% Purchase of treasury stock (JPY million) 688 1, (planned) Total return ratio 36.1% 77.4% 29.0% 28.2% Targeting market capitalization of JPY100 billion 31

33 Purchase of treasury stock during this fiscal year Types of shares subject to purchase Total number of shares available for purchase Total cost of shares Shares of the company s common stock 460,000 shares (maximum) (1.67% of total shares issued and outstanding [excludes treasury stock]) JPY300,000,000 (maximum) Timing of purchase May 12, 2017 March 31, 2018 Method of purchase Market purchase on the Tokyo Stock Exchange 32

34 Contact us: IR inquiries Hoosiers Holdings PR IR Office tel.: URL Opinions, forecasts, statements regarding future outlook, and other forward-looking statements in this document are estimates based on the information available at the time this document was prepared. They are subject to significant change due to uncertainties in future economic conditions, the competitive climate, and extent of the success of new services. Please note that actual business performance, strategies, and other results and aspects may differ substantially from that described in this document. No reproduction, duplication, or reuse of this document is permitted without prior consent.