Earnings Results Briefing for the Six Months Ended September 30, 2015
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Earnings Results Briefing for the Six Months Ended September 30, 2015 November 6,2015 Takara Leben Co.,Ltd. Contents Summary for The Six months Ended September 30, 2015 ・・・・・・ P 2 Metropolitan area condominium market trends ・・・・・・ P 6 Progress in the business during the first half of the 44th term ・・・・・・ P 8 Topics for The Six months Ended September 30, 2015 & ・・・・・・ P 17 Strategies going forward Year Ending March 2016 Dividends, and ・・・・・・ P 21 Financial Result Forecast for The Year History 1972 Established Takara Komuten Co.,Ltd. 2011 40th anniversary of the founding (the present Takara Leben) Launched sales of detached houses 2012 Introduced New Condominium Brand 1982 Launched real estate leasing business Introduced Corporate character 1988 Established Takara Management Co.,Ltd. Established Yokohama branch (the present Leben Community) Launched real estate management business Made Takara Housing Co.,Ltd. (the present Takara Property Co.,Ltd.) its subsidiary 1994 Launched sales of condominiums "Leben Heim" Rental business management operations 2013 Entry to mega-solar business 2000 Changed company name to "Takara Leben Co.,Ltd." Established Takara Asset Management Co.,Ltd. 2001 Launched financial brokering business Launched investment management business Established Tafuko Co.,Ltd. Esstablished Takara Investments Co.,Ltd. Launched real estate investment business 2003 Listed on the second section of the Tokyo Stock Exchange Made Sunwood Corporation it's associated company 2004 Listed on the first section of the Tokyo Stock Exchange accounted for by the equity method Established AS Partners Co.,Ltd. 2014 Established Hokuriku Office Launched nursing care businesses for seniors Established Tohoku Office 2008 Made Marunouchi Servicer Co.,Ltd. Made Oasis Co.,Ltd.(the present Takara Leben Realnet) its subsidiary its subsidiary Made Nikko kensetsu Co.,Ltd. its subsidiary Released new corporate logo 2015 Made Livenet home Co.,Ltd.(the present Takara Leben Tohoku) its subsidiary 2010 Launched detached housing business (buidt by Takara Leben) Made Jutakujyouhoukan Co.,Ltd. its subsidiary 1 Leben Kotesashi REVOLVE Summary for The Six months Ended September 30, 2015 2 Consolidated Income Statements (Unit Amount=Million yen ) YOY Six months ended Six months ended change September 30, 2014 September 30, 2015 ( % ) Net sales 18,784 26,536 41.3% Operating profit 719 1,812 152.1% Ordinary profit 243 1,461 499.6% Net income 165 875 427.4% 3 Segment Information 【 Net Sales 】 (Unit Amount=Million yen ) Six months Six months ended Ratio ended Ratio September 30, (%) September 30, (%) 2014 2015 Real estate sales business 15,431 82.1% 20,541 77.4% Real estate rental business 896 4.8% 2,107 7.9% Real estate management 1,449 7.7% 1,660 6.3% business 1,007 2,226 Other businesses (selling electric power 5.4% (selling electric power 8.4% in the mega-solar:163) in the mega-solar:429) Total 18,784 100% 26,536 100% 4 Consolidated Balance Sheets (Unit Amount=Million yen ) Year ended March Six months ended YOY change 2014 September 30, 2015 ( % ) Current assets 67,319 68,776 2.2% Cash and cash equivalents 26,281 21,222 △19.2% Inventories 35,345 42,121 19.2% Real estate held for sale 4,901 3,710 △24.3% Real estate for sale under construction 30,444 38,411 26.2% Fixed assets 34,400 41,770 21.4% Total assets 101,738 110,579 8.7% Current liabilities 34,800 35,330 1.5% Notes and accounts payable, trade 10,023 6,249 △37.7% Debts(short-term borrowings, long-term debt within one year) 15,120 20,850 37.9% Fixed liabilities 35,748 44,514 24.5% Long-term borrowings 33,235 41,722 25.5% Total liabilities 70,549 79,845 13.2% Net assets 31,189 30,734 △1.5% Capital 4,819 4,819 ― Other shareholder equity 26,369 25,914 △1.7% Total liabilities and net assets 101,738 110,579 8.7% 5 Leben Moriya THE BRIDGE Metropolitan area condominium market trends 6 Metropolitan area condominium market trends Inner city condominium market trends ■Background (Unit Amount=10 thousand yen ) ・Elected to host the 2020Tokyo Olympics (Reference) Average sales prices in the Tokyo metropolitan and ward areas and Paralympics 6,500 ・The expectations for it to escape deflation 6,000 5,500 by abenomics 5,000 4,500 Sales prices rising 4,000 3,500 Exodus of first-time buyers from the 2009 2010 2011 2012 2013 2014 metropolitan area to the suburbs the Tokyo metropolitan area ward areas (Source: Condominium Market Trends by Real Estate Economic Institute Co., Ltd) Metropolitan area suburbs condominium market trends ■ Background・・・・Decline in the number of developers and supplied units after the Lehman Shock The market environment remained sound as a sustained demand for condominiums continued to be strong. [Types of existing suppliers of built-for-sale suburban condominiums] (i) Suppliers that emphasize proximity to stations and convenience (ii) Suppliers that emphasize locations within 10 minutes of the nearest station and in a good housing environment (iii) Suppliers that emphasize prices (supply at low prices) irrespective of the distance from the nearest station Supply of properties with high specifications in good locations = Differentiation from competitors ⇒ Solid progress in contracts signed 7 LEBEN THE TSUKUBA Progress in the business during the first half of the 44th term 8 Contract Progress・ Delivery Results Contract Progress ■Contract progress ratio (%) Contract progress ratio 100.0 ◆ at the year end of September 30, 2015 ・ 80.0 New built-for-sale condominium business ⇒ 86% (Previous fiscal year83%) 60.0 ・Detached house business 40.0 ⇒ 52% (Previous fiscal year45%) 20.0 at the year end of at the year end of September 30, 2014 September 30, 2015 Solid trend of contracts signed continued from New built-for-sale condominium business the previous period Detached house business Delivery Results ■Delivery progress ratio ◆New built-for-sale condominium business ◆Detached house business ・at the year end of September 30, 2014 ・at the year end of September 30, 2014 ⇒22% ⇒21% ・at the year end of September 30, 2015 ・at the year end of September 30, 2015 ⇒27% ⇒33% Same level of deliveries as the previous period, indicating that a concentration of deliveries is expected to occur in the fourth quarter 9 New built-for-sale condominium business in the metropolitan area Trends in Sales Prices( New built-for-sale condominium ) ■Rise in the exodus of first-time buyers to the suburbs due to the increase in prices in the metropolitan area ■Gap between property prices in areas near suburban stations and the prices of expensive properties offered by the Zaibatsu conglomerates Changes in average selling price Average selling price(FY16/3) ( ) 4,000 Unit Amount=10 thousand yen 3,800 ■Planned・・・3,786 3,600 ■Current・・・3,812 3,400 3,200 3,000 2,800 Comparison with the plan FY2013/03 FY2014/03 FY2015/03 FY2016/03 26 up (Unit Amount=10 thousand yen ) Aim to sell at the highest possible prices within a reasonable pricing range based on the deliberate analysis of market trends 10 Local city strategy(1) Project of the area to advance newly ■Aomori-Yaskata Project ■Kanazawa-Ootemachi Project Address :Yasukata,Aomori-shi Address :Ootemachi,Kanazawa-shi Number of units :39 units (Planned) Number of units :18 units (Planned) ■Fukui-Hinode Project ■Akita-Nakadori Project Address :Nakadori,Akita-shi Address :Hinode,Fukui-shi Number of units :56 units (Planned) Number of units :36 units (Planned) ■Nagaoka-Terashimacho Project Address :Terashima-cho,Nagaoka-shi Number of units :130 units (Planned) ■Hiroshima-Ootemachi Project ■Matsuyama-Itibancho Project Address :Ootemachi,Naka-ku,Hiroshima-shi Address :Ichiban-cho,Matsuyama-shi Number of units :26 units (Planned) Number of units :70 units (Planned) Steady expansion of areas toward the establishment of a system capable of managing 1,000 units per year in regional cities. 11 Local city strategy (2) Comparison of customer attributes ~Metropolitan area vs Local city ~ LEBEN Gotanno LUNA TOWER LEBEN Gotanno LUNA TOWER LEBEN Gotanno LUNA TOWER an annual income contractor age More than 60 or older Less than 4 4% 20-29 years old 10% More than 10 4% or Cash 50-59 years old 19% 13% 7 to 10 40-49 years 30-39 years 23% 4 to 7 old 48% old 26% 53% LEBEN Toyama Sogawa Residence LEBEN Toyama Sogawa Residence an annual income contractor age LEBEN ToyamaSogawa Residence Less than 4 20-29 years old 5% 2% More tha 10 or Cash 30-39 4 to 7 More than 60% years old 21% 60 or older 24% 29% 7 to 10 50-59 years 40-49 years 14% old old 21% 24% (Unit Amount=10 thousand yen ) Active seniors are the main target for properties in local cities 12 Local city strategy (3) Start of new sales – Properties in regional areas ■LEBEN Koriyama PRINCIPAL TOWER ■LEBEN Toyama VALEST TOWER Address:33-1,Tsutsumishita-machi, Address:134,Ushijima-cho,Toyama-shi,Toyama Koriyama-shi,Fukushima Access:3-minutes walk from Toyama Station Access:14-minutes walk from Koriyama on JR Hokuriku Shinkansen Station on JR Tohoku Main Line Number of units :119 units Number of units:71 units ■LEBEN Nagano-Minamichitose ■LEBEN Mito THE PREMIERE : Address 2-2-1,Minamichitose,Nagano-shi, Address:2-5,Minami-machi,Mito-shi,Ibaraki Nagano Access:8-minutes walk from Mito Station : Access 7-minutes walk from Nagano Station on JR Joban Line on JR Hokuriku Shinkansen and Number of units :158 units JR Shinetsu Main Line : Number of units 42 units Solid progress in contracts signed for respective properties 13 Scrap & Build Older properties near stations in the Tokyo metropolitan area ■ Itabashi-ku Project … 1-minute walk from Shin-itabashi Station on Toei Mita Line.