Daito Trust Construction Co., Ltd. · TSE:1878

Daito Trust Construction — 2Q FY2010 Earnings Presentation

26 slides from Daito Trust Construction's earnings presentation, November 2010

  1. Slide 1: 2Q Financial Highlights, Year ending March 31, 2011

    2Q Financial Highlights, Year ending March 31, 2011 Contents Ⅰ.2Q Financial Results ・・・・・・・・・・・ ・ ・ ・ ・ ・ 3 Ⅱ.Orders received & Countermeasures for 2nd half ・・・ ・ 10 Ⅲ.Occupancy rate & Countermeasures for 2nd half ・・・・ 20 Ⅳ.Topics ・・・・・・・・・・・・・・・・・・・ ・ ・ ・ ・ 27 Ⅴ.Appendix ・・・・・・・・・・・・・・・・・・・ ・ ・ ・ 3

  2. Slide 2: 2Q Financial Results: Income summary

    Ⅰ. 2Q Financial Results Ⅰ-1 Income summary Increase in sales and income Net sales Operating income (¥ billions) (¥ billions) 600 ¥472.9bln 50 454.0 (+4.2% y/y) ¥33.4bln 430.7 40 (+22.5% y/y) 400 27.3 30 22.9 20 200 Plan Plan ¥462.3bln 10 ¥21.3bln 0 0 08/9 09/9 10/9 08/9 09/9 10/9 Ordinary income Net

  3. Slide 3: Income summary: factors of increase; Construction segment

    Ⅰ-2 Income summary – Factors of the increase in operating income ■Reasons for the increase in operating income exceeded the original plan drastically By Sales Increase in sales on construction completion ¾Nicety of process control from start to completion <¥4.1bln> ¾Secure of construction subcontrac

  4. Slide 4: Income summary by segment (Real estate)

    Ⅰ-4 Income summary by segment (Real estate) (¥billions) 2Q FY09 2Q FY10 (year on year) Because of the revision of accounting standard by “management approach”, Net sales 238.7 268.2 (+12.4%) segment of “building and repairs” of Daito Building Management is changed from “Construction” to “Real estate

  5. Slide 5: Financial forecast

    Ⅰ-6 Financial forecast No change in financial forecasts Net sales Operating income (\billions) ¥1,023.9bln (\billions) 1,200 100 ¥72.0bln 954.8 972.6 (+5.3% y/y) 1,000 80 70.3 71.1 (+1.2% y/y) 800 60 600 40 400 200 20 0 0 09/3 10/3 11/3(plan) 09/3 10/3 11/3(plan) Ordinary income Net income (\billion

  6. Slide 6: Orders received & backlog

    Ⅱ-1 Orders received & backlog (semiannual comparison) ◇Orders received ¥234.6bln(107.3% y/y) (108.4% to 2nd half of last year) ◇Orders received backlog ¥466.4bln(96.5% y/y) (106.4% to the end of last year) Orders received Orders received backlog (\billions) (\billions) Percentage of completion basis

  7. Slide 7: Channels of orders received; Cancellation rate & unit price

    Ⅱ-3 Channels of orders received (semiannual comparison) Orders received Orders received by Repeat & Introduction from New customers Number y/y Number y/y (Number) ( y/y ) (Number) ( y/y ) 3,000 118.6% 3,000 116.0% 116.2% 110.7% 120% 120% 102.0% 103.7% 2,500 2,500 98.9% 92.5% 2,096 100% 100% 86.5% 85

  8. Slide 8: Comparison with FY2009; Orders received plan

    Ⅱ-5 Comparison with FY2009 Compared with 1st half of FY2009 Compared with 2nd half of FY2009 ¥15.9bln (Increase) ¥18.2bln (Increase) ① Number + ¥18.9bln ① Number + ¥20.3bln (3,426 → 3,686) (3,357 → 3,686) ② Cancellation + ¥6.7bln ② Cancellation + ¥4.8bln (20.5% → 17.4%) (20.0% → 17.4%) ③ Unit price

  9. Slide 9: Status of 1st half strategies; Countermeasures for 2nd half

    Ⅱ-7 status of the 1st half of strategies Good chance for expansion of orders received Rental market environment Countermeasures End of Stable demands Workforce reduction to change of temporary increase for the use of land in peer companies loan standards in moving out Original Expanding sales net Re

  10. Slide 10: Countermeasures for 2nd half - Unit price UP

    Ⅱ-9 Countermeasures for 2nd half - 2 Unit price UP Grip with 【Information exchange・Exchange event】 Financial „ Briefing session for lease business institution „ Forum 2010 「Activation of local business from leased housing」 Expansion of „ To resume an order for a mansion with day-service Plan variati

  11. Slide 11: Tenancy agreement; Rent basis occupancy rate

    Ⅲ-1 Tenancy agreement ◇Number of tenancy agreement 91,790(116.7% y/y) Residential use Commercial use (Number) ( y/y ) (Number) ( y/y ) 100,000 200% 3,000 200% 89,402 76,604 2,500 2,388 80,000 75,016 1,972 2,068 150% 2,000 150% 60,000 116.7% 1,500 115.5% 110.1% 104.9% 40,000 102.1% 100% 1,000 91.8% 1

  12. Slide 12: Rate of moving out; Occupancy rate plan

    Ⅲ-3 The rate of moving out Residential Commercial use use 3.2% 3.2% 2.8% 2.8% 2.4% 2.4% 2.0% 2.0% 1.6% 1.6% 1.2% 1.2% 0.8% 0.8% Apr. May Jun. Jul. Aug. Sep. Apr. May Jun. Jul. Aug. Sep. FY2006-2008Ave. FY2009 FY2010 FY2006-2008Ave. FY2009 FY2010 23 Ⅲ-4 Occupancy rate plan Occupancy rate for resident

  13. Slide 13: Tenancy agreement plan; Countermeasures for 2nd half

    Ⅲ-5 Tenancy agreement plan ◇Tenancy agreement plan 215,000(119.2% y/y) Required tenancy agreement for a plan ⇒123,210 Residential use:119,998 Commercial use:3,212 FY08 171,846 FY09 180,314 FY10 215,000 150,000 123,210 101,642 100,000 94,858 91,790 76,988 78,672 50,000 0 08/9 09/3 09/9 10/3 10/9 11/3

  14. Slide 14: Topics: Plant factory

    Ⅳ. Topics Ⅳ-1 Plant factory Plant factory(Cultivation of Shiitake mushroom - Sales) „ To use managed properties for business use (warehouses or factories, about 100tsubo) To „ To start cultivation & shipping at Kasama-shi, Nationwide Ibaraki Pre. from September. „ To promote employment of people wit

  15. Slide 15: Nursery business; Electric aggregator business

    Ⅳ-2 Nursery business Development of a mansion with nursery school „Reinforcement of orders received for urban areas (medium-rise apartment) Strategic apartment for a city designated by ordinance and urban areas „Improvement in added value on apartment and service for tenants Grand Award only to tena

  16. Slide 16: Appendix: Non-consolidated statement of income

    Ⅴ. Appendix Ⅴ-1 Non-consolidated statement of income (¥ millions) 2Q FY10 2Q FY09 year on year plan (year) Net sales 207,722 219,258 - 5.3% 474,700 Construction 194,859 199,575 - 2.4% 448,700 Real estate & others 12,863 19,683 - 34.6% 26,000 Gross profit 71,881 71,897 - 0.0% 160,300 Construction 74,

  17. Slide 17: Financial summaries of major subsidiaries

    Ⅴ-2 Financial summaries of major subsidiaries ①(Construction) ( ¥ millions ) Construction business Daito Construction Daito Steel 2Q FY10 2Q FY09 year on year plan (year) 2Q FY10 2Q FY09 year on year plan (year) Net sales 1,644 6 - 5,300 1,381 1,535 - 10.0% 3,152 Gross profit 48 2 - 281 46 87 - 47.1

  18. Slide 18: Subsidiaries (Others); Sales structure of Real estate business

    Ⅴ-4 Financial summaries of major subsidiaries ③(Others) ( ¥ millions ) Other business Care Partner Gaspal D. A. D. (M) 2Q 2Q y/y plan 2Q 2Q y/y plan 2Q 2Q y/y plan FY10 FY09 (year) FY10 FY09 (year) FY10 FY09 (year) Net sales 3,062 2,674 +14.5% 6,069 7,225 6,685 +8.1% 16,326 1,029 893 +15.2% 1,800 Gr

  19. Slide 19: SG&A expenses; Financial conditions

    Ⅴ-6 Selling, general and administrative expenses (¥ billion) 2Q FY09 2Q FY10 (year on year) SG&A expenses 55.1 54.4 (- 1.3%) SG&A ratio 12.1% 11.5% [- 0.6p] [ ]: Difference from previous year (\billions) 50% 60 55.9 55.1 \54.4bln 40% 40 30% 13.0% 20% 12.1% 11.5% 20 10% 0 0% 08/9 09/9 10/9 SG&A expen

  20. Slide 20: Cash flows; Number of employees

    Ⅴ-8 Cash flows Cash flow provided by Net income before taxes, Operating activities 14.5 Payment for income taxes Cash flow used in Acquisition of securities Investing activities -12.3 Redemption of securities Cash flow used in Financing activities -11.7 Payment for dividend Cash and cash equivalents

  21. Slide 21: Construction started units & Daito's share

    Ⅴ-10 Number of construction started units & Daito’s share Number of construction started units 300,000 20% 241,209 14.8% 15.5% 15% 200,000 9.8% 151,947 146,316 10% 100,000 5% 0 0% 08/9 09/9 10/9 Number of construction started units(Apr.-Sep.) Daito's share(Apr.-Sep.) (Ministry of Land, Infrastructur

  22. Slide 22: Orders received by area; Orders received by repeat

    Ⅴ-12 Orders received by area (\billions) 80 100% 70 75.7 75% 60 +40.8% 50% +31.5% +30.8% +20.4% (57.3) Daito’s Ave. 50 -1.3% +15.5% 25% +7.3% (-4.8%) +2.9% 40 -12.2% -9.0% 0% 30 36.5 -25% 33.2 20 26.5 -50% 18.7 18.7 10 14.6 -75% 5.0 7.7 0 -100% ) on gi ai ku o o i ku u hu u nk nt aid st ok k re ho i

  23. Slide 23: Rent basis occupancy rate

    Ⅴ-14 Rent basis occupancy rate Rent basis occupancy rate 100% 98% 96% 94% 92% Residential use Commercial use 90% 06/3 06/9 07/3 07/9 08/3 08/9 09/3 09/9 10/3 10/9 Rent basis occupancy rate 06/9 07/9 08/9 09/9 10/9 year on year Residential use (%) 96.3% 95.9% 95.6% 93.8% 94.5% +0.7p Commercial use (%

  24. Slide 24: Units under management; Customer's financing channel

    Ⅴ-16 Number of units under management & aggregate amount of rent Residential use Commercial use Managing units Rent Managing units Rent (thousands) (¥billions) (thousands) (¥billions) 700 50 500 10 598 620 600 552 35.8 40 400 7.1 8 500 31.1 33.6 6.7 6.5 30 300 6 400 300 20 200 4 200 10 100 2 100 39.

  25. Slide 25: Market environment

    Some 370,000 new leased housing units Ⅴ-18 Market environment 1 – to be required each year from now on Rebuilding, Maintenance of Continuous new demolition and cull of + the number of supply is required ! leased housing leased housing ¾Aging properties are demolished and culled. ¾The number of house

  26. Slide 26: Daito Trust Construction contact and disclaimer

    1.Disclaimer of warranties for the contents Daito pays careful attention about the information carried on this homepage. However, Daito can not offer the guarantee about the accuracy, reliability, safety, etc. Please recognize the information about future forecast that Daito may offer is prediction

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