Report on Settlement of Accounts for FY ended in March 31 217 Financial Highlights, Year ended in March 31, 217 1 Contents Ⅰ.Results in FY ended in March 31,217 3 Ⅱ.Forecasts of FY ending in March 31,218 24 Ⅲ.Topics 34 Ⅳ.Shareholder Return Policy 36 Ⅴ.Appendix 39 2
Ⅰ. Results in FY ended in March 217 Financial Results, Year ended in March 31,217 3 Results in FY ended in March 217 Highlights of results in FY ended in March 31,217 Highlights 1. Increase in sales and profit for 9 consecutive FY Operating income exceeds 12. bn Marked record high 2. 3. Orders received 655.2 bn ( 5.4% Y o Y) Occupancy rate ( rent basis* 1 ) 96.9%(+.1p Y o Y) ( unit basis* 2 ) 97.9% (+.3p Y o Y) Maintain sound level Shareholder returns 1Annual dividend (Plan) 536 (Dividend increase + 14) 2Acquisition and retirement of treasury stock (Plan) 24.7bn 1.59mn shares 1Payout ratio 5.% + 2Acquisition and retirement of treasury stock 3.% = Total return ratio 8.% 4. ROE 31.2%(+3.8p Y o Y) Acquisition and retirement of treasury stock(actual) 2.2bn 1.22mn shares *1 Rent basis as residential use of March 217 = 1% - {(Lease fee payment for vacant rental housing) / (Aggregate amount of rent [%])} *2 Number basis as residential use at the end of March 217 = (Number of occupancy units) / (Number of units under management) 4
PL Profit & Loss Consolidated PL Net sales 1,5 1,2 9 6 3 1,353.1 1,411.6 1,497.1bn Ordinary income 12 1 8 6 4 2 95.8 15.5 124.5bn Sales and profits marked new high Planned 1,498.bn Planned 122.bn +6.1% +18.% Operating income 12 1 91.5 8 6 4 2 11. 12.1bn Planned 118.bn :Y o Y +19.% Net income attributable to owners of parent 8 6 4 2 56.1 67.2 82.1bn Exceeding 12.bn +22.1% Planned 82.1bn 5 PL Profit & Loss by segment(construction Business) Construction segment 1 ( bn) 216/3 217/3 (Y o Y) Net sales 595.3 623.9 (+4.8%) Gross profit 176.2 197.6 (+12.1%) Operating income 9.2 19.1 (+2.9%) Net sales Gross profit Operating income 623.9 197.6 589.1 595.3 2 6 12 172.5 176.2 19.1 15 9 85.3 9.2 4 Planned Planned 623. bn 1 195.7 bn Planned 6 14.7 bn 2 5 3 6
PL Profit & Loss by segment(construction Business) Construction Segment 2 Gross profit margin Operating income margin 216/3 217/3 (Y o Y) 29.6% 31.7% [+2.1p] 15.2% 17.5% [+2.3p] Gross income margin Operating income margin Major breakdown of the variance (+2.1p) 1 Effect from raise of price +.9p 2 Labor cost +1.p 3 Material cost +.1p 4 Exchange +.1p 5% 4% 3% 2% 1% % 29.3% 29.6% 14.5% 15.2% 31.7% (Planned 31.4%) 17.5% Gross profit margin Operating income margin Major breakdown of the variance (+.3p) 1 Effect from raise of price ±.p 2 Labor cost +.2p 3 Material cost +.1p 4 Exchange ±.p 7 PL Profit & Loss by segment(real Estate Business) Real Estate Segment 1 ( bn) 216/3 217/3 (Y o Y) Net sales 774.8 824.6 (+6.4%) Gross profit 62.6 72.7 (+16.1%) Operating income 22.5 29.6 (+31.5%) Net sales Gross income Operating income 824.6 8 8 723.8 774.8.96bn 72.7.91bn 29.6 3 62.6 25 6 22.5 6 4 2 Planned 825.7bn 4 2 52.2 Planned 71.1bn 2 15 1 5 15.5.31bn Planned 28.6 bn Increase due to the change of accounting period of House Leave Co., Ltd. (from Feb. to Mar.) 8
PL Profit & Loss by segment(real Estate Business) Real Estate Segment 2 Gross profit margin Operating income margin 216/3 217/3 (Y o Y) 8.1% 8.8% [+.7p] 2.9% 3.6% [+.7p] [ ]: 前年同との差 Gross profit margin Operating income margin 12% 9% 7.2% 8.1% 8.8% 6% 3% 2.1% 2.9% 3.6% % Gross Profit Margin Operating income margin 9 PL Other segment Profit & Loss by segment(other Businesses) Financial business Care business Gas supply business overseas Business and the like 216/3 217/3 (Y o Y) Net sales 41.4 48.5 (+17.1%) Gross profit 15.5 15.2 ( 2.%) Operating income ( bn) 8.9 7.4 ( 16.8%) Net sales Gross profit Operating income 5 4.1 41.4 4 48.5.92bn 15 15.5 15.2 14.1.5bn 8.3 8.9 9 7.4.8bn 3 2 1 Planned 49.3bn 1 5 Planned 17.9 bn 6 3 Planned 1.4 bn Increase due to the change of accounting period of Care Partner Co., Ltd. (from Feb. to Mar.) 1
PL SG&A expenses Transition of Selling, General and Administrative expenses ( bn) 216/3 217/3 (Y o Y) SG&A expenses 153.4 165.4 (+7.8%) SG&A expenses ratio to sales SG&A expenses SG&A expenses ratio to sales 16 12 8 4 147.4 153.4 1.9% 11.% [+.1p] 165.4 1.9% 1.9% 11.% SG&A expenses SG&A expenses ratio to sales Planned 166.7 bn % [ ]:Variance from previous FY 4% 3% 2% 1% Major breakdown of the variance (+ 12.bn) 1 Labor cost +3.1bn 2 Advertising & general publicity expenses +5.9bn 3 Other expenses +3.bn 11 Financial Review Consolidated Balance Sheet Consolidated BS End of March 216 End of March 217 ( bn) Current Liabilities 281.8 Current Liabilities 337.9 (+56.1) Current Assets 479.6 Fixed Liabilities 198.1 Current Assets 59.7 ( + 3.1) Fixed Liabilities 167.9 ( 3.1) Fixed Assets 248.9 Total Liabilities Net Assets 48. 248.5 Fixed Assets 271.6 (+22.7) Total Liabilities Net Assets 55.9 (+25.9) 275.4 (+26.9) Total Assets 728.5 Total Liabilities & Net Assets 728.5 Total Assets 781.4 (+52.8) Total Liabilities & Net Assets 781.4 (+52.8) Equity ratio 34.3% Net assets per share 3,243.97 Return on Equity (ROE) 27.4% Acquisition and retirement of treasury stock 1.23mn shares 16.7bn Equity ratio 35.3% Net assets per share 3,63.59 Return on Equity (ROE) 31.2% Acquisition and retirement of treasury stock 1.22mn shares 2.2bn 12
Financial Review Cash Flows Highlights Consolidated CF Cash and cash equivalents at the beginning of FY17/3 Cash flows from operating activities 124. 182.6 Major breakdown items Net income before income tax (+ 123.9bn) Cash flows from investing activities Cash flows from financing activities -72.2-33.4 Major breakdown items Purchase of new software systems ( 12.1bn) Acquisition of debenture( 11.7bn) Purchase of solar power generation panels ( 7.bn) Land acquired for unaccompanied showroom-cum-training institute ( 4.bn) Major breakdown items Payments of dividends ( 36.4bn) Acquisition of treasury stock ( 2.2bn) Repayment of loans ( 17.1bn) Cash and cash equivalents at the end of FY17/3 2.1-2 -15-1 -5 5 1 15 2 25 13 Items related to orders received Transition of Orders received(y o Y comparison ) orders received Amount of Orders received 655.2bn( 5.4% Y o Y) Amount of orders received throughout each FY ( bn) 7 6 5 4 66.4 162.4161.9 142.4 193.7 693. 219.6 181.4 16.2 131.7 145.3 655.2 bn 177.3 Amount of orders received in each quarter ( bn) 138. 194.5 25 2 15 1 5 3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 14
Items related to orders received Amount of orders received in each region Amount of orders received in each region 25 2 [-3.5%] 232.2 224.4 15 1 5 Order received ( bn) [-1.2%] [-34.%] (Metropolitan [(-.6%)] 176.5 7. 38.6 38.6 Hokkaido Tohoku [-5.3%] [-4.5%] 19. [-6.2%] 83.6 45.2 ) [ ]:YoY Chugoku Kinki Tokai Koshinetsu Hokuriku Kanto area Orders received [+1.3%] [+3.5%] 28.8 Shikoku [-3.7%] 79.4 Kyushu Okinawa 15 Items related to orders received Transition of orders in hand(comparison with previous FY) Amount of orders in hand Orders in hand 896.4bn(+.6% YoY ) 1, 8 822.2 891.1 896.4bn 6 4 2 16
Items related to orders received Transition of number of sales representatives and amount of orders received per sales representative Efficiency in acceptance of order Number of sales representatives End of the FY 3,383 ( 37 YoY) Amount of orders received per sales representative throughout the FY 16.35mn/Month ( 1.39mn YoY) Number of sales representatives Amount of orders received ( mn/person month) 4, 3, 2, 1, 3,247 3,42 3,383 16.62 17.74 16.35 3 2 1 Number of sales representatives Amount of orders received per sales representative 17 Items related to orders received Transition of mid-rise ratio and rebuild ratio (comparison with previous FY) Index1 Mid-rise ratio Rebuild ratio 22.2%(+1.7p YoY) 31.7%(+.4p YoY) Mid-rise ratio 1 Rebuild ratio 2 4% 3% 2% 1% 2.2% 2.5% 22.2% 4% 3% 2% 1% 31.% 31.3% 31.7% Total rebuild ratio Daito APT rebuild ratio (breakdown) 3.5% 4.5% 4.5% % % 1 Mid-rise ratio = The number of orders received for APT house with 3 or more stories / Total number of orders received 2 Total rebuild ratio = The number of orders received for rebuilding APT / Total number of orders received Daito APT rebuild ratio = The number of orders received for rebuilding APT built by Daito / Total number of orders received 18
Items related to orders received Transition of Average price of orders received and Cancellation ratio(comparison with previous FY) Index2 Average price of orders received 96.2mn(+ 3.23mn YoY) Cancellation ratio 17.% (+1.5p YoY) Average price of orders received 1 Cancellation ratio 2 ( mn) 1 8 6 88.26 92.79 96.2mn 8,862 万円 3% 2% 15.9% 15.5% 17.% 4 1% 2 % 1 Average price of orders received = Amount of new orders received / Number of orders received 2 Cancellation ratio = Amount of cancellation / Amount of new orders received Orders received = Amount of new orders received Amount of cancellation 19 Items related to tenancy recruitment Transition of number of tenancy recruitment Number of tenancy recruitment Number of tenancy recruitment Residential use Commercial use Residential use 281,476(+5.4% YoY) 278,693(+5.6% YoY) 2,783( 1.6% YoY) Commercial use Number of tenancy recruitment YoY 3, 25,57 264,4 278,693 2, 15.2% 15.6% 15.6% 1, 1% Number of tenancy recruitment YoY 4, 3,334 3, 3,112 2,783 2, 1% 1, 89.6% 93.3% 89.4% Number of tenancy agreements YoY Number of tenancy agreements YoY 2
Items related to tenancy recruitment Occupancy rate Transition of Rent-based occupancy rate (as of March) Continuously maintains sound level of occupancy (residential use:96% commercial use:94%) Residential use units Commercial use 96.9%(+.1p YoY) 98.3%(+.1p YoY) Residential use Commercial use Occupancy ratio 1% 96% 96.7% 96.8% 96.9% 9% Occupancy ratio 1% 97.9% 98.2% 98.3% 94% 9% 8% 8% 7% 7% Rent basis as occupancy rate = 1% - {(Lease fee payment for vacant rental housing) / (Aggregate amount of rent [%])} 21 Items related to tenancy recruitment Transition of Number-based occupancy rate (as of March 31, 217) Occupancy rate Residential use units Commercial use 97.9%(+.4p YoY) 97.6%(+.1p YoY) Residential use 1% 97.4% 97.5% 97.9% 22,5 22,322 22, 9% 21,887 21,5 21, 8% 2,5 2,451 2, 7% 19,5 Occupancy Vacancy rate Number of Vacancy unit unit Number-based occupancy rate Commercial use 1% 1,4 97.2% 9% 97.5% 97.6% 1,2 1, 8% 1,4 865 831 8 6 7% 4 2 6% Occupancy Vacancy rate unit Number of Vacancy unit Number-based occupancy rate Number-based as occupancy rate = (Number of occupancy units) / (Number of units under management) 22
Items related to tenancy recruitment Occupancy rate in each region Rent-based occupancy rate in each region (as of March:Residential use) Daito s Nationwide average 96.9% 1% 95.% 97.2% 96.9% 96.% 97.3% 96.8% 97.4% 96.7% 97.4% 94.8% 97.6% 96.7% 95.9% 97.3% 96.9% 97.2% 97.1% 96.5% 75% 5% 25% % Hokkaido Tohoku Kanto Koshinetsu Hokuriku Tokai Kinki Chugoku Shikoku Kyushu Okinawa Occupancy rate as of March 216 Occupancy rate as of March 217 23 Ⅱ. forecasts for FY ending in March 218 Financial Forecasts, Year ending in March 218 24
Forecasts for FY ending in March 218 Consolidated PL Net sales 1,6 1,2 8 4 1,411.6 Ordinary Income 12 8 4 1,497.1 1,585.bn 16/3 17/3 18/3(plan) 15.5 124.5 Profit & Loss Forecast Forecast increase of sales and income, updating record-high for 1 consecutive FY Operating income +5.9% +3.2% 12 8 4 11. 12.1 124.bn 16/3 17/3 18/3(plan) Net income attributable to owners of parent +2.8% +4.7% 128.bn 1 82.1 86.bn 8 67.2 6 4 2 :Y o Y 16/3 17/3 18/3(plan) 16/3 17/3 18/3(plan) 25 Forecasts for FY ending in March 218 Forecast of completion Forecast of Construction for completion and Gross profit margin ratio in Construction for completion ( bn) 217/3 218/3(plan) (Y o Y) Net sales 623.9 652. (+4.5%) Gross profit 197.6 199.3 (+.8%) Gross Profit margin ratio 31.7% 3.6% 1.1p : Variance from previous FY Net Salas Gross profit margin ratio 595.3 623.9 652.bn 5% 6 4% 4 3% 31.7% 29.6% 3.6% 2 2% 1% 16/3 17/3 18/3(plan) Net Sales Gross Profit margin ratio Major breakdown of the variance ( 1.1p Y o Y) 1Labor cost 1.5p 2Material cost.1p 3Exchange.1p 4Reverse of deferred income (Additional finance to owner from Daito Finance etc.) +.6p 26
Forecast of FY ending in March 218 Forecast of amount of orders received Forecast of orders received Forecast of amount of orders received 683.bn(+4.2% Y o Y) Number of sales representatives <at the end of Mar. 218 forecast> 3,5(+117 Y o Y) Amount of orders received per sales representative 16.5mn (.15mn Y to Y) 8 6 Amount of orders received 693. 655.2 683. Number of sales representatives Amount of orders received per sales representative Number of sales representatives 4, 3, Volume of orders received per sales representative ( mn/month) 3,42 3,383 3,5 2 19 18 4 2, 17.74 17 2 1, 16.35 16.5 16 16/3 17/3 18/3(plan) 15 16/3 17/3 18/3(plan) Number of sales representatives Amount of orders received per sales representative 27 Forecast of FY ending in March 218 Strategy to achieve the forecast of orders received targeting 683.bn 1 Strategy for receiving orders 1.Set up of new branch (scrap and build) Scrap & Build New Construction Tomakomai (Tomakomai-shi, Hokkaido) Komatsu (Komatsu-shi, Ishikawa) Chitose (Chitose-shi, Hokkaido) Kanazawa Minami (Chitose-shi, Hokkaido) Setagaya Minami * (Setagaya-ku, Tokyo-to) Shinjuku * (Shinjuku-ku, Tokyo-to) Hamamatsu Higashi (Iwata-shi, Shizuoka) Kakegawa (Kakegawa-shi, Shizuoka) Nagoyak * (Nagoya-shi, Aichi-ken) Yonago (Yonago-shi, Tottori) Matsue (Matsue-shi, Shimane) T kai * (T kai-shi, Aichi-ken) Kagoshima Higashi (Kirishima-shi, Kagoshima) Kagoshima (Kagoshima-shi, Kagoshima) Anj * (Anj -shi, Aichi-ken) *temporary name 28
Forecast of FY ending in March 218 Strategy to achieve the forecast of orders received targeting 683.bn 2 Strategy for receiving orders 1.Acquiring new customer In every morning:strictly ensure the time for visit new customer In the afternoon:carry out visit potential customer, Strictly ensure to follow-up Increase the number and ability of sales representatives for exploring new customers 2.Continuously holding orders from existing customer Maintain and build up relationship with financial institutions Strengthen cooperation with tax accountants, provide comprehensive asset support to clients Strictly ensure Monthly visit to current customer and carry out Diagnostic service of building rental business 29 Forecast of FY ending in March 218 Strategy to achieve the forecast of orders received targeting 683.bn 3 Strategy for receiving orders Resources of finance for construction (Based on construction start dates) FY16/3 Agricultural/Fisheries Others, Cooperative, 5.6% 農協 漁協, その他 1.5%, Japan 5.6% 1.5% Housing Finance 住宅金融支援機構 Agency,, 7.8% 7.8% Major national 都市銀行 banks,, Regional 11.% banks, 地方銀行 6.%, 6.% 信用金庫 Shinkin, 14.1% banks, 14.1% Agricultural/Fisheries Cooperative, 5.1% Japan Housing Finance Agency, 9.3% Major national banks, 11.4% Shinkin banks, 11.5% FY17/3 Others, 1.9% Regional banks, 6.7% 3
Forecasts of FY ended in March 218 Forecasts of tenancy recruitment and occupancy rate Forecast of tenancy recruitment Number of tenancy recruitment 217/3 218/3 (Plan) (Y on Y) 281,476 298, (+5.9%) Residential use 278,693 295,3 (+6.%) Commercial use 2,783 2,7 ( 3.%) Residential use Commercial use Number of tenancy recruitment 35, 96.8% 96.9% 96.9% 1% 5, 3, 278,693 295,3 264,4 25, 9% 4, 2, 3, 15, 8% 2, 1, 5, 1, 7% 16/3 17/3 18/3(plan) Number of tenancy agreements Occupancy rate Number of tenancy recruitment 1% 98.2% 98.3% 98.3% 9% 3,112 2,783 2,7 8% 7% 16/3 17/3 18/3(plan) Number of tenancy agreements Occupancy rate 31 Forecasts of FY ending in March 218 Strategy for achieving the plan of tenancy recruitment targeting 298, 1 Reinforcement measures for promoting tenancy agreements 1.Reinforce ability of tenant recruitment Pursue efficiency by renewed organizational structure Follow-up marketing to potential tenants by utilizing SNS Explore foreigner market (offer 5 languages in online store) 2.Promote recognition of E-Heya Net brand E-Heya Net SNS site Plan and develop various sales campaign Hold reception meetings of real estate agents Hold E-Heya Net Ladies golf tour Campaign flyer E-Heya Net Ladies poster 32
Forecasts of FY ending in March 218 Strategy for achieving the plan of tenancy recruitment targeting 298, 2 Major 3 companies system Pursue further efficiency by major 3 companies system Conceptual diagram of major 3 companies Daito Kentaku Leasing Response from customer Daito Trust Construction Response from agent Daito Kentaku Partners Former organization Daito Trust Construction Co.,Ltd. Tenant recruitment Tenant recruitment by Daito itself BtoC New tenant recruitment structure Daito Kentaku Leasing Co., Ltd. Daito Kentaku Leasing specializes in tenant recruitment activity. Tenant recruitment by consigning to other companies BtoB Daito Kentaku Partners Co., Ltd. Daito Kentaku Partners, which absorbed appraisal section of Daito Building Management, engages in tenant recruitment through real estate agency and market research. 33 Ⅲ. Topics 34
Topics New corporate branding New Corporate Brand Message Restructuring corporate new brands To Live is to trust. 一人で住むことはできても 一人で生きることはできない 誰もが人生の一部分を 信じられる誰かに託し 託された誰かも 信じてくれたその人ために 人生の一部を費やして こたえている そうやって 楽しみや喜びをふくらまし 悲しみや辛さを小さく分け合う 託したり 託されたりするから 生きていけるんだと思う 一人では生きていけない という幸せがわたしたちにはある これからも その幸せを 守り 育み 広げていきたい 東建託は賃貸住宅通 一人ひとりに そして 家族や街や社会に 暮らしや人生を支える新しい価値を創造していきます Statement It is possible to live alone but no one can live by and for oneself. Everyone trust one s a part of life to believable person And the person entrusted also spends one s part of life for person who is believing. In doing so, we expand joy and pleasure together and share sadness and distress. Trust and entrusted enable everyone to live. We get the happiness that no one can live by and for oneself. Let s continue to keep, bring up and expand the happiness. The Daito Group will create a new value supporting daily lives and life to each person, family and society through The English translation is reference purpose. rental housing. Press Advertising 35 Ⅳ. Shareholder return policy 36
Shareholders return Shareholder return in FY ended in March 217 Planned for FY ended in March 217 Shareholder return out of profit for FY ended in March 217 Total return 8.% Annual dividend per share: 536 (+14 円 YoY Payout Ratio 5.% ) Acquisition and retirement of treasury stock: 24.7bn 1.58mn share 3.% (Current net income s ) Interim dividend 238 Year-end dividend 298) In case of current net income over 1bn and no large cash out demand 37 Shareholders return Shareholder return in FY ending in March 218 Forecast in FY ending in March 218 Shareholder return out of profit for FY ending in March 218 (Forecast) Annual Dividend per share 559(+ 23YoY, Payout ratio 5.% ) Breakdown Interim dividend 279 Year-end dividend 28 Acquisition and retirement of treasury stock cureent net profit s 3.% 当純利益 1 億円超かつ大型の資金需要がない場合 In case of current net profit over 1bn and no large cash out demand ROE Over 2%(Target 3% ) Continue Total return 8% (yen) 1,2 9 6 3 EPS Dividend per share ROE Payout ratio Gross return 8.% 82.8% 8.1% 1,72 1,118 863 8.% 8.% 648 693 71 5.1% 5.% 5.% 5.% 5.% 5.% 52.8% 26.6% 24.1% 27.4% 31.2% 3.% 29.6% (324) (347) (375) (432) (536) (559) 13/3 14/3 18/3(plan) 1% 8% 6% 4% 2% % 38
Ⅴ. Appendix 39 Profit & Loss of each segment <FY17/3> Construction business ( mn) 16/3 17/3 Y o Y 18/3(plan) Y o Y(Plan) Net sales 595,364 623,91 +4.8% 652, +4.5% Gross profit 176,269 197,645 +12.1% 199,3 +.8% (Gross profit margin) 29.6% 31.7% +2.1% 3.6% 1.1p Operating income 9,248 19,143 +2.9% 112,8 +3.4% (Operating income margin) 15.2% 17.5% +2.3% 17.3%.2p Real estate business ( mn) 16/3 17/3 Y o Y 18/3(plan) Y o Y(Plan) Net sales 774,87 824,642 +6.4% 869,7 +5.5% Gross profit 62,611 72,71 +16.1% 76,3 +4.9% (Gross profit margin) 8.1% 8.8% +.7% 8.8% ±.p Operating income 22,527 29,621 +31.5% 32,4 +9.4% (Operating income margin) 2.9% 3.6% +.7% 3.7% +.1p Other businesses ( mn) 16/3 17/3 Y o Y 18/3(plan) Y o Y(Plan) Net sales 41,471 48,551 +17.1% 63,3 +3.4% Gross Profit 15,545 15,24 2.% 2,7 +35.8% (Gross profit margin) 37.5% 31.4% 6.1% 32.7% +1.3p Operating income 8,98 7,472 16.8% 1,9 +45.9% (Operating income margin) 21.7% 15.4% 6.3% 17.2% +1.8p 4
Profit & Loss (Non-consolidated ) <FY17/3> ( mn) FY 216/3 FY 217/3 Y o Y FY 218/3 Plan Net sales 617,377 646,878 +4.8% 658,8 Construction 595,722 623,952 +4.7% 652, Real estate & others 21,64 22,926 +6.1% 6,8 Gross profit 177,316 2,55 +13.1% 197,7 Construction 175,564 196,849 +12.1% 195,4 Real estate & others 1,752 3,7 +111.2% 2,3 S & GA expenses 123,835 131,981 +6.6% 136,2 Operating income 53,481 68,568 +28.2% 61,5 Ordinary Income 8,646 85,422 +5.9% 83, Net income 59,811 59,926 +.2% 6,5 41 Profit & Loss of major subsidiaries(construction Business) <FY17/3> ( mn) Construction Business Daito Construction Daito Steel 216/3 217/3 Y o Y 218/3 Plan 216/3 217/3 Y o Y 218/3 Plan Net sales 6,589 6,664 +1.1% 7, 4,586 4,758 +3.8% 4,841 Gross profit 232 228 1.7% 238 267 244 8.6% 237 S&GA expenses Operating income Ordinary Profit 92 18 +17.4% 12 72 75 +4.2% 78 139 119 14.4% 136 194 168 13.4% 159 21 177 11.9% 21 195 156 2.% 159 Net income 114 26 +8.7% 14 128 12 2.3% 13 42
Sales structure of real estate business <FY17/3> FY 215/3 FY 216/3 FY 217/3 Amount (Ratio) Amount (Ratio) Amount (Ratio) Y o Y ( mn) Lease up of rental housing units 1 664,69 (91.8%) 79,324 (91.5%) 755,2 (91.6%) +6.4% Building and repairs 2 29,695 (4.1%) 28,794 (3.7%) 26,14 (3.1%) 9.7% Brokerage of real estate 14,622 (2.%) 16,213 (2.1%) 17,652 (2.1%) +8.9% Rent Guarantee business 3,688 (.5%) 6,431 (.8%) 9,72 (1.2%) +5.9% Leasing Business 3 5,887 (.8%) 6,55 (.8%) 6,266 (.8%) +3.5% Electricity Business 2,31 (.3%) 4,288 (.6%) 6,119 (.7%) +42.7% Others 3,1 (.4%) 3,7 (.5%) 3,884 (.5%) +5.% Total 723,817 (1.%) 774,87 (1.%) 824,642 (1.%) +6.4% 1 Sub-lease contract in Lease Management Trust System by Daito Building Management. 2 Mainly Shinagawa East One Tower 43 Profit & Loss of major subsidiaries (real estate businesses)<fy17/3> Real estate business Daito Building Management Housecom House Leave ( mn) 216/3 217/3 Y o Y 218/3 Plan 216/3 217/3 Y o Y 218/3 plan 216/3 217/3 Y on Y 218/3 plan Net sales 747,268 792,545 +6.1% 837,815 9,36 1,19 +8.6% 1,822 6,431 9,72 +5.9% 1,496 Gross profit 51,8 56,981 +1.% 59,278 9,2 9,92 +7.8% 1,64 5,986 9,11 +52.2% 9,577 S&GA expenses Operating income Ordinary income 17,196 18,77 +8.8% 2,848 8,391 8,973 +7.% 9,595 754 1,428 +89.4% 2,993 34,64 38,273 +1.6% 38,43 88 946 +16.3% 1,9 5,231 7,681 +46.8% 6,584 35,526 41,875 +17.9% 43,59 1,78 1,177 +9.2% 1,247 5,248 7,692 +46.6% 6,592 Net income 22,4 29,588 +32.1% 31,17 63 757 +21.3% 796 3,33 5,28 +56.4% 4,54 It changed its trade name to Daito Kentaku Partners Co.,Ltd. on April 1, 217. 44
Net Profit & Loss of major subsidiaries (Other businesses-1)<fy17/3> Other business (Financial business) Daito Finance D.T.C House Guard ( mn) 216/3 217/3 Y o Y 218/3 Plan 216/3 217/3 Y o Y 217/3 Plan 216/3 217/3 Y o Y 218/3 Plan Net sales 1,344 1,391 +3.5% 1,26 3,343 3,334.3% 3,362 888 1,964 +121.2% 2,382 Gross profit 992 1,85 +9.4% 931 1,275 1,355 +6.3% 1,345 415 694 +67.2% 1,123 S&GA expenses Operating Income Ordinary Income 131 144 +9.9% 179 15 16 +6.7% 16 449 697 +55.2% 93 861 94 +9.2% 752 1,259 1,338 +6.3% 1,329 33 3-22 859 941 +9.5% 753 1,268 1,353 +6.7% 1,198 33 3-22 Net income 573 659 +15.% 516 1,268 1,353 +6.7% 1,198 33 3-143 45 Profit & Loss of major subsidiaries (Other businesses-2)<fy17/3> ( mn) Other businesses (Care business Gas supply business) Care Partner Gaspal 216/3 217/3 Y o Y 218/3 Plan 216/3 217/3 Y o Y 218/3 Plan Net sales 9,716 11,411 +17.4% 11,11 25,418 23,596 7.2% 24,559 Gross profit 988 1,31 32.6% 1,29 8,984 9,621 +7.1% 1,435 S&GA expenses Operating Income Ordinary income 85 975 +21.1% 99 5,452 5,816 +6.7% 6,314 182 334 +83.5% 3 3,532 3,85 +7.7% 4,121 192 337 +75.5% 295 3,558 3,752 +5.5% 3,864 Net income 125 194 +55.2% 174 2,442 97 6.% 2,648 Consolidated financial statements of Gaspal Group in this FY 46
Net Profit & Loss of major subsidiaries (Other businesses-3)<fy17/3> ( mn) Other businesses (Overseas business Energy business) D.A.D (Malaysia) Daito Energy 216/3 217/3 Y o Y 218/3 Plan 216/3 217/3 Y o Y 218/3 Plan Net sales 2,555 2,69 +2.1% 2,771 3 3,998-19,621 Gross income 1,183 1,144 3.3% 1,279 3 49-2,342 S&GA expenses Operating Income Ordinary income 93 877 5.7% 953 11 784-1,719 253 266 +5.1% 326 7 735-623 1,85 75-264 7 795-272 Net income 1,152 95-238 8 796-263 47 Transition of number of employees in each business section( Major 3 companies ) (person) 5, 4, 3, 2, 1, End of March 216 End of March 217 End of March 218(Plan) Sales representatives in construction business Engineers Sales representatives in real estate business Total employees(right axis) (person) 14, 12, 1, 8, 6, End of March 216 End of March 217 (Y o Y) End of March 218 (Plan) Total employees 12,77 13,17 +247 13,721 Sales representative in construction business 3,42 3,383 37 3,5 Engineers 3,8 3,136 +56 3,4 Sales representative in real estate business 1,145 1,136 9 1,47 48
Number of orders received & channels (Year on Year) FY16/3 FY 17/3 (Number of orders received) 4,5 4, 18% 3,5 16% 3, (Customer referrals : 2.8%) (Customer referrals : 8.2%) (Customer referrals 14% : 7.%) (Customer referrals : 2.7%) 2,5 114.% 113.5% 112.2%12.4% 12% 1.1% 98.1% 92.1% 96.5% 2, 17.6% 1% 83.% 82.7% 98.9% 92.2% 1,569 76.3% 1,446 1,215 1,35 1,245 8.8% 85.8% 8% 1,5 (48) 1,72 1,84 6% 955 1, 696 84 788 886 733 776 689 62 (143) 4% 5 Orders received from repeater Orders received from new customers 2% Repeat 61.4% New 38.6% Repeat 63.4% New 36.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (Y o Y) 22% 2% % FY16/3 FY17/3 FY16/3 FY17/3 49 Transition of orders received from repeater ( bn) 5 4 3 45.2 57.4% 465.1 462.8 61.4% 63.4% 1% 8% 6% 2 4% 1 2% % Amount of orders received from repeater Composition ratio of repeat Composition ratio of repeat= Number of orders received from repeater Total number of orders received 5
Transition of the number of tenant recruitment per sales representatives (Year on Year) Number of tenant recruitment / representatives / m Number of sales representatives In real estate business 2. 17.9 18.8 2.3 2, 15. 1. 1,162 1,136 1,137 1,5 1, 5. 5. Number of tenant recruitment per sales representatives Number of sales representatives in real estate business 51 Transition of rent-based occupancy rate Rent-based occupancy rate 1% 98% 96% 94% 92% Residential use Commercial use 9% 13/9 14/3 14/9 15/3 15/9 16/3 16/9 17/3 Rent-based occupancy rate 12/3 13/3 Y o Y Residential use (%) 96.7% 96.9% 96.7% 96.8% 96.9% +.1p Commercial use (%) 95.5% 96.8% 97.9% 98.2% 98.3% +.1p 52
Transition of number of units under management & aggregate amount of rent Residential use Commercial use Managing units (thousands) Managed rent Managing units (thousands) Managed rent 9 6 864 49.9 923 53.5 978 57.3 6 4 9 6 6.5 6.4 6.4 37.2 36.8 36.5 8 6 4 3 2 3 2 number of units under management aggregate amount of managed rent (monthly average) number of units under management aggregate amount of managed rent (monthly average) 53 54
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