Explanatory Session for the Results of the Three Months ended June 2012

Transcription

1 Explanatory Session for the Results of the Three Months ended June 212 August 212 Leopalace21 Corporation This document and reference materials may contain forwardlooking statements, but please understand that actual results may differ significantly from these forecasts due to various factors.

2 Contents Outline of Results Highlights of Results (Consolidated) 3 Summary of Consolidated Results 4 Results of Business Segments (Consolidated)... 6 Summary of Segment Results... 7 Appendix Schedule of Operations of Leopalace Group... 3 Balance Sheets (Consolidated).31 Balance of Cash/Deposits and Interestbearing Debt..32 Trend in Shareholders.. 33 Outline of Businesses Leasing. 1 Construction. 21 Enhancing Property Value (Solar power and security systems)..25 Hotels & Resort 27 Elderly Care..28 1

3 Outline of Results

4 Highlights of Results (Consolidated) (Million yen) 12/3 13/3 YoY % 1H 13/3 Fullyear Sales 15,486 16, % 219,6 463,9 Gross profit 8,155 1,655 +2,5 +3.7% 23,8 6,9 % 7.7% 1.% +2.3p 1.8% 13.1% SGAE 11,987 12, % 25,4 52,9 Operating profit (3,831) (1,421) +2,41 (1,6) 8, % 3.6% 1.3% +2.3p.7% 1.7% Recurring profit (4,885) (3,683) +1,21 (2,6) 6,1 % 4.6% 3.5% +1.1p 1.2% 1.3% Net income (3,798) (4,9) (21) (2,9) 5,5 3

5 Summary of Consolidated Results 1 (1 million yen) Sales 6, 4, 2, 1,54 1H 2,23 4,594 Actual 1,64 1,6 1H 2,196 4,639 Sales YoY +.9 billion Leasing billion Construction (due to restraining units supplied) 3.6 billion 12/3 13/3 Gross profit H Actual H Gross profit YoY billion Leasing + 4. billion (of which, reversal in reserve for vacancy loss 13/3 : 1.4 billion 12/3 : 2.4 billion) Construction 1.7 billion 12/3 13/3 4

6 Summary of Consolidated Results 2 (1 million yen) Operating profit (38) 1H (21) 45 Actual (14) (28) 1H (16) 12/3 13/3 8 Operating profit YoY billion Leasing billion (of which, reversal in reserve for vacancy loss 13/3 : 1.4 billion 12/3 : 2.4 billion) Construction.7 billion Net income H (37) 1H Actual (29) (52) (4) (35) 12/3 13/3 55 Net income YoY.2 billion Operating profit billion Increase in FX loss.2 billion (12/3 : 1.3 billion 13/3 : 1.6 billion) Temporary decrease in profits (Nonoperating and extraordinary profits) 2. billion 5

7 Results of Business Segments (Consolidated) (Million yen) 12/3 13/3 YoY % 13/3 1H Fullyear Leasing Sales Gross profit Operating profit 91,743 5,331 (2,8) 96,97 9, ,353 +4,12 +2, % +75.3% 191,2 19,5 2,2 386,6 45,2 9,5 Construction Sales Gross profit Operating profit 9,57 2,579 (779) 5, (1,551) (3,659) (1,79) (771) 38.2% 69.4% 2, 3,5 (1,5) 6,2 14,4 3, Hotels & Resort Sales Gross profit Operating profit 1, (137) 1, (116) % +17.2% 3,2 9 (5) 6,6 1,9 (1,) Elderly Care & Others Sales Gross profit Operating profit 2, (243) 2, (12) % +65.6% 5, 5 (4) 1,3 1,1 (7) 6

8 Summary of Segment Results (Leasing) (1 million yen) Leasing sales Leasing gross profit 5, 4, 3, 2, 1, 917 3,83 Actual H 1,912 3, Actual H /3 13/3 12/3 13/ (2) Leasing operating profit 52 1H Actual 22 9 (1) 12/3 13/3 95 Factors which lead to operating profit Improvement in occupancy rate (average +1.3p) +.4 billion Reviewing leasing cost (rent, etc.) billion Reversal in reserve for apartment vacancy loss 13/3 1.4 billion 12/3 2.4 billion 7

9 Summary of Segment Results (Construction) (1 million yen) Construction sales Construction gross profit 1, Actual H Actual 7 12/3 13/3 12/3 13/ H Construction operating profit 43 3 Previousyear level maintained Restrained apartments supplied 12/3 117 buildings 1,387 units 5 (7) Actual (15) (16) 1H (15) 12/3 13/3 13/3 72 buildings Sales of solar power systems 12/3 187 buildings 13/3 414 buildings 723 units 8

10 Outline of Businesses

11 Leasing 1. Occupancy Rate 86% 84% 213/3 Target average occupancy rate rate for for 13/3: 83.% 82% 212/3 8% 211/3 78% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Occupancy rate (Occupancy rate = Occupied units / Managed units, %) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg. 211/ / /

12 Leasing 2. Occupancy by Group 5 year trend Occupancy rate 1% 9% Occupied units (Thousand units) Managed units (right axis) Occupied units (right axis) Corporate (left axis) Units (Thousand units) 6 5 Individuals (left axis) 4 8% 1 Occupancy rate 5 Students (left axis) 3 7% *Figures are as the end of the month Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 9/3 1/3 11/3 12/3 13/3 2 11

13 Leasing 3. Occupancy by Group 211/3 212/3 13/3 2Q 3Q 4Q Fullyear Fullyear 2Q 3Q 4Q Units under management 559, , , , ,68 571,98 561,84 556,27 556,546 Occupied units 442, ,85 453, , , ,59 451, ,877 46,231 Occupancy rate (average) 79.9% 79.% 79.2% 82.2% 8.1% 8.9% 8.7% 8.6% 82.6% 81.2% 82.2% Corporateoccupied units 178, , ,415 22, ,441 24,279 24, , ,517 Corporate share (Corporateoccupied units / Occupied units) 4.3% 4.9% 4.7% 42.3% 43.2% 44.1% 45.2% 47.3% 47.3% Individualoccupied units 195,86 196,58 198,7 23, ,89 192, ,4 18, ,47 Individual share (Individualoccupied units / Occupied units) 44.3% 43.8% 43.7% 42.5% 42.2% 41.6% 4.3% 38.8% 39.3% Studentoccupied units 68,173 68,719 7,926 72,315 67,316 66,356 65,56 64,452 61,667 Students share (Studentoccupied units / Occupied units) 15.4% 15.3% 15.6% 15.1% 14.6% 14.3% 14.5% 13.9% 13.4% 1. Occupancy rate is the average value for each period (Fullyear or quarter). 2. Figures for units under management and occupied units are as of the end of the final month for the relevant period. 12

14 Leasing 4. Corporate Sales Strategies: 1. Expand major business connections 2. Cultivate lowuse business connections (Units) 25, Occupied Units by Industry (March) (Units) 25, (June) 2, YoY +1.3% 183,743 22,584 38, % 219,239 4,527 2, +11.9% 178, % 199,441 39, ,517 42,146 Other June YoY +6.7% 15, 1, 5, 37,43 24,36 12,332 29,725 25,288 15,93 28,74 12,872 32,157 27,869 19,638 32,223 13,445 35,61 28,869 24,632 15, 1, 5, 37,849 22,525 11,828 28,788 24,143 15,313 27,813 12,529 31,33 26,44 2,54 31,75 13,545 34,828 27,888 24,96 Construction Food service Retail Services Staffing, outsourcing +14.2% +8.1% +11.3% +5.5% +24.2% 39,596 43,613 43,942 37,813 41,787 42,454 Manufacturing +1.6% 21/3 211/3 212/3 21/6 211/6 212/6 13

15 Leasing 5. Acquiring Individual Tenants Leopalace Partners (Offices) Leasing Offices (Japan) 4 Partners 3 Direct 2 1 Jun Sep Dec Mar Jun Sep Dec Mar Jun 11/3 12/3 13/3 (Offices) Leasing Contracts by Partners Contracts (11/3) Contracts (12/3) Contracts (13/3) Offices (11/3) Offices (12/3) Offices (13/3) (Contracts/month) 7, 6, 5, 4, 3, 2, 1, Jun Sep Dec Mar 211/3 212/3 213/3 Jun Sep Dec Mar Jun Sep Dec Mar Apr May Jun Jul Partner offices Direct offices Total leasing offices Contracts by Partners ,823 5,286 2,73 3,144 3,711 6,196 3,158 2,875 2,848 3,217 14

16 Leasing 6. Acquiring Individual Tenants New Direct Offices New direct offices open (13 new offices planned for 13/3) Last fiscal year, Kichijoji, Shibuya, and Akabane opened in October, Takadanobaba opened in December, and Akihabara opened in February. This fiscal year, 4 offices (Chitose, Nagoya station, Tennoji, Kusatsu) opened in July and 2 offices (Kokubunji, Urawa) opened in August. In order to increase occupancy rates, we will continue to open direct offices in the three metropolitan areas. Kokubunji Tokyo metroarea 94 offices Fuchu New direct 7 offices Existing direct 36 offices Partners 51 offices Kenmap Hibarigaoka Tanashi Chofu Ooizumigakuen Kichijoji Urawa Shimurasakaue Nerima Ikebukuro Shinjuku Akabane Takadanobaba Shibuya Kitasenju Ueno Kameari Akihabara Aoto Shinkoiwa 15

17 Leasing 7. Acquiring Individual Tenants Room Customize Customize your room with RoomCustomize 1. Designer s Choose from among 6 patterns, designed by interiordesigner Makiko Yamaguchi. 2. MyCollection Custom wallpaper for free. Thumbtacks, shelves, and scribbling on the wall is OK! 25 color variations + 35 patterns = 6 types to choose from! 3. Comfort Choose from 4 types of wallpaper with functions such as deodorizing, humidity controlling, and photocatalyst selfcleaning (feecharging). Example of MyCollection You can use the wall as a chalkboard by applying special paint! You can also fix a shelf or draw on the wall, and create your own customized room even in rental apartments! 16

18 Leasing 8. Acquiring Individual Tenants Campaigns 1 month rent off with Moving Support Campaign One month rent off on limited apartments. For individuals who are currently living in apartments other than Leopalace21. From July 1 to July 31, 212. WelcometoJapan Campaign Free one night stay at Leopalace Hotels with a monthly contract. For foreigners. From June 5 to September 3, 212. Friends Discount Campaign Discount on rent for friends applying for the same apartment building For individual tenants (chintai & monthly contracts) From July 1 to September 3, 212 Early Room Reservation Campaign Reserve an apartment for spring; no rent required during the reservation period. For students and new working adults. Until February 28, 213. TripleZero No deposit, reikin, initial rent, and keyexchange fee required. On limited apartments. For individual tenants (chintai contract) 17

19 Leasing 9. Foreign Tenants Foreign tenants temporarily decreased due to the Great East Japan Earthquake, but has bottomed out. In addition to oversea offices, foreign students can make lease contracts through our LAM school. 1, 8, 6, 4, 2, 7,974 Leased Units by Foreign Nationals (excluding corporate contracts) 9,6 8,251 7,838 YoY 8,26 1/3 11/3 12/3 11/6 12/6 China 2,864 4,115 3,993 3,644 3,938 S.Korea 2,525 2,24 1,565 1,636 1,533 Taiwan 1, Other 1,566 1,996 1,956 1,851 2,6 Total 7,974 9,6 8,251 7,838 8,26 LAM LAMSchool スクール System (Leopalace Alliance Members) is a とは system for foreign 当社が従来より運営する 学校 students planning to study in Japan, 法人を通した学生の部屋検索シ enabling them to search for apartments ステムを 外国人留学生が渡日 and make lease contracts through 前に日本国内の部屋を契約でき the internet from their home country. るシステムとしてリニューアル China: 4 offices Beijing, Dalian, Shanghai, Guangzhou South Korea: 3 offices Busan, Seoul Gangnam, Seoul Jongno Taiwan:1 office Taipei Other 18

20 Leasing 1. Contract Type and Usage Pattern (Thousand units) 6 Tenants by Contract Type YoY Breakdown of Users of Monthly Contracts (June 212) Training 2.58% Student dorms 1.9% Corp. dorms 1.79% Other 3.73% General usage 28.64% 1 Business trips 53.17% 5/3 6/3 7/3 8/3 9/3 1/3 11/3 12/3 11/6 12/6 General Monthly Total

21 Leasing 11. Reserve for Apartment Vacancy Loss Due to: 1. Profitability improvement of subject apartments 2. Passage of remaining period there was a reversal of apartment vacancy loss of 1.4 billion yen (reduction in cost) in the subject 1 st quarter. (Apr. 212 June 212). Reserve for Apartment Vacancy Loss (1 million yen) /3 1/6 1/9 1/12 11/3 11/6 11/9 11/12 12/3 12/6 Occupancy rate by area % ()Reserve by area ( 1 million yen) Hokkaido Tohoku North Kanto Tokyo Metropolitan Hokuriku, Koshinetsu Chubu Kinki Chugoku Shikoku 11/ / / / / / Compared to 12/3 (2) (8) (1) 11/6 78% 9% 77% 83% 82% 75% 81% 83% 77% 12/3 75% 93% 81% 85% 78% 8% 84% 86% 78% 12/6 78% 92% 79% 84% 77% 79% 84% 85% 79% Compared to 12/3 +3p p (2)p (1)p (1)p (1)p p (1)p +1p Kyushu, Okinawa % 86% 86% +1p Total (14) 8.9% 83.4% 82.7% (.7)p 2

22 Construction 1. Orders, sales Orders, sales (including solar power systems) Gross orders (1 million yen) Q 3Q 4Q 11/3 12/3 13/3 11/3 12/3 13/3 13/3 (1 million yen) 2Q 3Q 4Q Fullyear Fullyear 2Q 3Q 4Q 1H Fullyear Gross orders received (Buildings) , ,19 (1 million yen) Orders outstanding (1 million yen) 1,788 1,479 1,451 1,22 1,22 1, Sales (1 million yen) ,

23 Construction 2. Offices and Sales by Area By placing offices in areas with high occupancy demand, areas in which we receive orders are narrowed down. Construction offices Total 52 offices (As of Jun. 212) (+1 from Mar. 212) Hokkaido: offices Apartment Construction Sales (13/3 ) (excludes solar power systems) Chugoku.1 Other.3 (Billion yen) Osaka Kyoto Hyogo 4 offices 1 office 2 offices Chugoku: 2 offices Kinki: 7 offices Hokuriku, Koshinetsu: offices Tohoku: 2 offices North Kanto: 1 office Tokyo metropolitan: 33 offices Chubu: 3 offices Kyshu, Okinawa.3 Chubu.2 Kinki.4 Tokyo Metropolitan 2.8 Kyushu, Okinawa: 4 offices Shikoku: offices Tokyo 17 offices Kanagawa 6 offices Saitama 8 offices Chiba 2 offices Tokyo metropolitan area makes up 67% of construction sales Due to narrowing down areas, the three metropolitan areas (Tokyo, Kinki, and Chubu) make up 83% of construction sales 22

24 Construction 3. DualL and DualAlta To celebrate our 4 th anniversary, we have announced products with lofts, one of our strong points. DualL is a twostory wooden apartment announced in May, and DualAlta is a threestory steelframework apartment announced in June. Model apartment (head office) Large storage with doublelofts Built with two lofts facing each other, and combined with the closet, make up a storage area equal to the living space. Higher noise reduction Equipped with noisereduction flooring, walls, and soundproof drainpipes. 7 items of 4 th Anniversary Specs LED lighting Equipped with womenfriendly items, ecofriendly items, and kitchen/bathroom appliances. (Figures are images) Motion sensor lighting (LED) Unitbath color panel Thermofaucets Umbrella stand Indoor clothesline Entrance hook 23

25 Construction 3. Elderly Care Facilities Example of elderly care facility construction: Setagayaku, Tokyo. Operated by a nursing care company (Listed on 1 st Section of Tokyo Stock Exchange) 24

26 Enhancing Property Value 1. Solar Power Systems Orders Sales ,453 kw 13/3 Buildings 2,21 1,951 3, ,7 1,77 1 million yen Buildings 1 million yen Generating capacity 1H 89 1, ,122 kw 12/3 2H 84 2, billion 18,262 kw Reduction in CO 2 emissions per year achieved by solar power systems installed: More than 9% of electricity generated can be sold. Fullyear 173 3, billion 3,385 kw 1,239 tco 2 per year 13/3 73, Japanese cedars Subsidies of JPEC (Japan Photovoltaic Expansion Center) will continue for fiscal year 212 (under 1 kw). Due to the feedintariff law taking effect from July 1, 212, we have started taking orders for large solar power systems (over 1 kw). 1H 4 1, million liters of gasoline Fullyear 65 1,

27 Enhancing Property Value 2. Security Systems Orders Sales 12/3 13/3 13/3 1H 2H Fullyear 1H Fullyear Units 2,76 56,733 76,89 2,933 33, 67, Billion yen Units Billion yen ,344 51,323 6,667 2,237 33, 61, Business alliances with two major security companies. The standard equipment includes fire sensing systems and emergency systems, in addition to sensors that detect intruders. We anticipate an increase in the percentage of female tenants. We are seeking to meet demand for security in company housing. (Large companies emphasize security.) 1.Telephone circuit alert Problem detected 2. Assign 3. Dispatch dispatch Emergency response Control Center personnel dispatched Call subscriber, alert emergency services if necessary. 26

28 Hotels & Resort Business Domestic Hotels Sales (Million yen) Operating profit Depreciation and amortization Occupancy rate 12/3 517 (41) % 13/3 545 (21) % Change (21) +3.1p % +5.4% 16.3% 13/3 1H 1, % Fullyear 2,3 (48) % *Domestic Hotel Business includes 8 hotels (Asahikawa, Sapporo, Sendai, Niigata, Nagoya, Yokkaichi, Okayama, and Hakata) Leopalace Guam Sales ($1,) Operating profit Depreciation and amortization Occupancy rate (Leopalace Resort) Occupancy rate (Westin Resort Guam) 211/12 * $19,61 1,557 3, % 81.8% 212/12 * $19,739 1,878 4,2 77.5% 87.4% Change p +5.6p *Nonconsolidated figures for Leopalace Guam. *Fiscal year of Leopalace Guam ends in December. is from January to March. % +.7% +2.6% +1.3% 212/12 1H Fullyear 31, 63, (8) (1,) 7, 15, 66.6% 7.2% 71.9% 74.% 27

29 Elderly Care Business (Million yen) 12/3 13/3 Change % 13/3 1H Fullyear Sales 2,12 2, % 4,5 9,1 Gross profit (83) (22) 2 Operating profit (259) (187) +71 (45) (81) Occupancy rate (Dayservice) 6.2% 67.7% +7.5p 65.4% 66.2% Occupancy rate (Shortstay) 93.4% 96.6% +3.2p 96.1% 96.7% Occupancy rate (Private residential homes, etc.) 75.1% 82.4% +7.3p 83.2% 84.7% *Elderly care Business includes 58 Azumien facilities in Tokyo and 6 prefectures *Private residential homes include Group homes 28

30 Appendix

31 Schedule of Operations of Leopalace Group (Million yen) 12/3 13/3 Change Sales 13,587 14,77 +1, % Leopalace21 Operating profit Recurring profit (4,362) (4,836) (1,75) (3,341) +2,656 +1,495 FX gain (loss) (156) (171) (15) Sales 1,613 1,566 (47) 2.9% Leopalace Guam Operating profit Recurring profit 128 (1,13) 149 (1,297) +2 (193) +16.2% FX gain (loss) (1,233) (1,445) (212) Domestic Subsidiaries* Sales Operating profit Recurring profit 1, , (283) (284) +19.3% 71.5% 71.7% Others & Exclusions Sales Operating profit Recurring profit (1,4) (1,364) (359) % +28.% *Domestic subsidiaries include Leopalace Leasing, LEOPALACE SSI, Plaza Guarantee, and Leopalace Travel 3

32 Balance Sheets (Consolidated) (Million yen) 12/3 13/3 (Million yen) 12/3 13/3 Cash and cash equivalents 41,477 25,459 Shortterm borrowings 45,75 45,75 Trade receivables 4,541 3,82 Advances received 79,73 7,966 Assets Accounts receivables for completed projects Prepaid expenses Current assets Buildings and structures Land Leased assets Intangible assets Longterm prepaid expenses Fixed assets Total assets 1,4 18,997 83,61 55,116 82,15 2,96 7,79 18, , , ,547 62,3 55,688 82,214 2,61 6,9 14, ,245 24,64 Liabilities Net assets Current liabilities Reserve for vacancy loss Lease/guarantee deposits received Longterm advances received Longterm liabilities Total liabilities Common stock Capital surplus Retained earnings Total net assets Shareholders equity ratio 166,295 19,27 9,853 21,98 64,656 23,951 56,562 33,883 (44,963) 33, % 145,784 17,781 9,472 2,864 61,573 27,358 56,625 33,91 (48,973) 33, % 31

33 Cash/Deposits and Interestbearing Debt (1 million yen) /3 1/3 11/3 12/3 12/3 YoY 13/3 (Times) Interestbearing debt Cash Net DE ratio *Net DE ratio = (Interestbearing debt Cash) / Shareholders equity 32

34 Trend in Shareholders 8% 6% 4% Individuals, other: 35.3% Foreign companies: 34.6% 2% % 6/3 7/3 8/3 9/3 1/3 1/6 1/9 1/12 11/3 11/6 11/9 11/12 12/3 12/6 Corporations: 12.8% Financial institutions: 11.7% Of which, trust banks: 7.9% Financial institutions % 8.1% (of which, trust banks) % 4.9% 4.7% 8.4% 8.6% 8.3% 7.9% Foreign companies Individuals, other Corporations 7.4% 5.3% 5.2% 5.2% 3.8% 3.8% 4.4%