Presentation Material. for the 1st Quarter of FY2017 (Ending December 31, 2017)

Transcription

1 Presentation Material for the st Quarter of FY07 (Ending December 3, 07)

2 Disclaimer This material has been translated from a portion of the Japanese original for reference purposes only. In the event any discrepancy arises between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation, nor for direct, indirect, or any other form of damages that may arise from using this translation. This English version includes some explanatory notes. The utmost care is applied to the information provided in this material; nevertheless, the accuracy and completeness of this information is not guaranteed. Please be aware that content may be changed or withdrawn without advance notice. This material contains the current plans, beliefs, and forecasts concerning the business performance of the Tokyo Tatemono Group. These forecasts do not encompass all factors for future performance and include risks and uncertain factors that may affect future performance. Actual results may differ materially from these forecasts due to various factors. Tokyo Tatemono Co., Ltd All Rights Reserved.

3 Contents Executive Summary p. 4 I. Business Results for the Q of FY07 () Consolidated Statements of Income p. 6 () Consolidated Balance Sheet p. 7 (3) Business Results by Segment p. 8 II. Quarterly Segment Data () Commercial properties p. 5 () Residential development p. 6 (3) Real estate solution services & Other p. 7 III. Reference Material () Medium-term Business Plan (05-09) p. 9 () Financial Indicators & Investment Plans p. 0 (3) Large Redevelopment Projects Underway p. (4) Major Condo Projects p. Tokyo Tatemono Co., Ltd All Rights Reserved. 3

4 Executive Summary Business Results for FY07 Q Despite the increase in revenue and income for the commercial properties business due to steady growth of building leasing revenue, overall revenue and income decreased owing to a decrease in the number of condo units sold. In FY07, since sales of large-scale condos with high margins, including Brillia Towers Meguro and Brillia THE TOWER TOKYO YAESU AVENUE, are expected to concentrate in the fourth quarter, the achievement rate versus full-year earnings projections are in line with the company s expectations as of present. Topics The nickname of the area that includes Toshima Project (working name) has been determined as Hareza Ikebukuro. It has been determined that TOHO CINEMAS will be the tenant for the cinema complex in the office building. Showrooms of redeveloped residences, Brillia Tower Yoyogi Park CLASSY and Brillia Tower Yokohama Higashikanagawa," which are scheduled to be sold in 09, opened. Grapes Tateishi, a residence for elderly people with service, opened in February. Tokyo Tatemono Group s first three Ohayo Child Care centers were opened. Tokyo Tatemono Co., Ltd All Rights Reserved. 4

5 I. Business Results for the Q of FY07

6 I. Business Results for the Q of FY07 () Consolidated Statements of Income Revenue and income down due to decrease in the number of condo sales posted. 3 Unit: Billion yen FY07 Q FY06 Q Increase/ Decrease Revenue from operations (.6) Commercial properties Residential development (.) Real estate solution services (.0) Other Operating income (0.9) Commercial properties Residential development (0.4).3 (.7) Real estate solution services.0.0 (0.0) Other (0.0) (0.0) (0.0) Elimination/Corporate (.6) (.7) 0. Non-operating income Non-operating expenses Recurring income (.3) Extraordinary income 0..0 (.9) Extraordinary loss Income before tax (3.3) Profit attributable to owners of the parent.4 * Full-year forecasts* Achievement rate % * With regard to dividend income upon acquiring properties from a SPC, a large amount of deferred income taxes arose for income before tax due to a difference between accounting and tax treatment. Tokyo Tatemono Co., Ltd All Rights Reserved % (0.5) (7.5) % % *Announced on February 6, 07 3 Main factors for increase/decrease Decrease in number of condo sales posted Decrease in property sales in the real estate solution service segment Increase in building leasing revenue Main factors for increase/decrease Decrease in number of condo sales posted Increase in building leasing revenue Main factors for increase/decrease Absence of gain on sales of fixed assets posted in the previous fiscal year

7 I. Business Results for the Q of FY07 () Consolidated Balance Sheet Real estate for sale and interest-bearing debt increased, expanding both assets and liabilities. Unit: Billion yen End of FY07 Q End of FY06 Increase/ Decrease Total assets,350.3, Current assets Cash and deposits Operating accounts receivable, trade Real estate for sale Other current assets Fixed assets,09.6, Property and equipment Intangible assets.0.4 (0.3) Investments and other assets (0.) Total liabilities, Interest-bearing debt Other liabilities (5.9) Total net assets (.) Shareholder s equity (0.5) Capital Capital surplus Retained earnings (0.5) Treasury stock (0.0) (0.0) (0.0) Accumulated other comprehensive income (0.8) Non-controlling interests Breakdown of increase/decrease Real estate for sale Increase Cost transfer Others billion billion -.8 billion Main factors for increase/decrease Expense for Toshima Project (working name) Completion of Grapes Yoga and Grapes Tateishi Breakdown of increase/decrease Non-consolidated billion Subsidiaries billion Equity capital ratio 3.4% As of end-06 4.% Debt Equity Ratio.4X As of end-06.3x Tokyo Tatemono Co., Ltd All Rights Reserved. 7

8 I. Business Results for the Q of FY07 (3) Business Results by Segment (i) Commercial properties business Revenue and income increased due to ending of free rent periods and contribution from buildings operated full year. Unit: Billion yen FY07 Q FY06 Q Increase/ Decrease Revenue from operations Building leasing Sales of real estate Full-year forecasts Achievement rate % % - - Breakdown of increase/decrease New operations - Full-year operations + 0. billion Existing buildings +.8 billion Sale, reconstruction, etc billion Building management service, etc (0.8) Dividends Operating income % 0.5 9% 9.0 6% Main factors for increase/decrease Decrease in construction sales, etc billion Average rent and occupancy rate [Ownership/Consolidated SPC total] (Yen) Average rent (Left axis) Occupancy rate (Right axis) (%) 3, ,000 9,40 9,39 9,48 8,9 9, ,934 8,99 8, , , New and full-year operations New operations Not applicable Full-year operations Minami Semba Building (Acquired in April 06) Otemachi Financial City Grand Cube (Completed in April 06) Shijo SET Building (Acquired in September 06) Kyobashi Edogrand (Completed in October 06) FUNDES Jimbocho (Completed in November 06),500 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/ * Excluding commercial buildings, hotels and land and buildings for redevelopment * Calculated based on lease contract period. The portion of free rent is averaged out over the entire contract period for tenants leasing an area of a certain size. Tokyo Tatemono Co., Ltd All Rights Reserved. 8

9 I. Business Results for the Q of FY07 (3) Business Results by Segment (i) Commercial properties business Number of large buildings owned around Tokyo Station, and development pipeline secured for the future. Building Construction completed JA Building / Keidanren-Kaikan Otemachi Financial City Grand Cube Apr Otemachi Financial City North Tower 0 Otemachi 7 4 The Otemachi Tower 04 5 Tokyo Tatemono Muromachi Building Tokyo Tatemono Dai3 Muromachi Building 97 7 Nihonbashi TI Building 0 8 Tokyo Tatemono Nihonbashi Building 05 9 Nihonbashi First Building Shin-Gofukubashi Building 977 Tokyo Tatemono Yaesu Building 0 NTA Nihonbashi Building Tokyo Station Nihonbashi 8 3 Tokyo Tatemono Headquarters Building 99 4 Yaesu MEG Building Kyobashi YS Building Kyobashi Edogrand Oct Kyobashi 5 Hatchobori 8 7 Tokyo Square Garden 03 8 Empire Building Sep. 07 (plan) Construction completed in or before 0. Construction completed between 0 and 04. Scheduled for completion during period of medium-term business plan (05-09) Redevelopment area 9 0 Urban redevelopment PJ of Yaesu -chome East Area in front of Tokyo Station Yaesu -chome North District Nihonbashi -chome and block Tokyo Tatemono Co., Ltd All Rights Reserved. 9

10 I. Business Results for the Q of FY07 (3) Business Results by Segment (ii) Residential development business Revenue and income down due to decrease in the number of condo sales posted. Unit: Billion yen FY07 Q FY06 Q Increase/ Decrease Revenue from operations (.) Sales of condominiums (7.3) Sales of residential houses - 0. (0.) Other sales - 3. (3.) Full-year forecasts Achievement rate % % Main factors for increase/decrease Condo unit price million (FY06 Q: 6.84 million) Number of condo units sold 7 units (FY06 Q: 79 units) Gross margin 7.4% (FY06 Q: 8.8%) House leasing % * Contract progress rate corresponding to,000 condos planned to be posted during full year Fee from sales agency services (0.).0 5% as end of Q: 85% Residential management service, etc..5.7 (0.) Operating income (0.4).3 (.7) 4.0 8% 7.0 (3%) Main factors for increase/decrease Absence of sold share in condo project - 3. billion Condominium units sold by area Inventory of completed condominiums Jan.- Mar. 06 Jan.- Mar. 07 Other 9% Tokyo Other Tokyo Metropolitan areas Kansai and others 89 units (including units contracted) 3 wards of Tokyo 9% Other 43% 3 wards of Tokyo 57% /6 05/9 05/ 06/3 06/6 06/9 06/ 07/3 Tokyo Tatemono Co., Ltd All Rights Reserved. 0

11 I. Business Results for the Q of FY07 (3) Business Results by Segment (iii) Real estate solution services business Revenue was down due to a decrease in property sales. Operating income remained flat due to sales of higher-margin properties compared to the previous fiscal year. Unit: Billion yen FY07 Q FY06 Q Increase/ Decrease Initial forecasts Achievement rate Revenue from operations (.0) Brokerage (0.) Real estate purchase & resale* (.3) % 4.0 0%.0 5% Main factors for increase/decrease Decrease in property sales Decreased-. billion Management service, etc Parking lot business Operating income.0.0 (0.0) 3.5 6% 0.5 4% 4.0 6% Main factors for increase/decrease Impact of M&A deals billion (October 06) *The business mainly improves the added value of acquired real estate for the purpose of resale. Parking lot business: Number of parking spaces and occupancy rate* (Vehicles) 80,000 70,000 60,000 No. of parking spaces Occupancy rate ,77 6,743 63,67 63,70 60,907 58, ,546 65,04 (%) , , , ,000 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/3 0 * Occupancy rates are calculated excluding some parking lots newly acquired. Tokyo Tatemono Co., Ltd All Rights Reserved.

12 I. Business Results for the Q of FY07 (3) Business Results by Segment (iv) Other Despite increase in revenue with the conversion of TRIM into a consolidated subsidiary, income did not increase, affected by the required startup costs for a number of residences for elderly people with service. Unit: Billion yen FY07 Q FY06 Q Increase/ Decrease Revenue from operations Initial forecasts * Achievement rate 4.0 9% Main factors for increase/decrease Contribution from facilities opened in FY billion Leisure business * (0.0) Senior business * Other Operating income (0.0) (0.0) (0.0) 5.0 0% 3.0 6% 6.0 4% (0.5) 9% *: Business reorganization was implemented on January, 07. Leisure & Senior business, which was a segment consolidating the leisure business and senior housing business, now specializes in senior business, and the leisure business is now independently operated under a new Leisure business segment. The figures are presented in accordance with the business reorganization. *: The breakdown of the full-year forecast is modified in line with the aforementioned business reorganization. Main factors for increase/decrease Impact of converting Tokyo Realty Investment Management, Inc. (TRIM), an asset management company of Japan Prime Realty Investment Corporation, into a consolidated subsidiary billion Grapes Tateishi <Opened in February 07> By separating care floor and residence floor, the facility allows residents to choose their lifestyles based on the degree of required nursing care and changes in health conditions Mitigates concerns for the future since switching rooms without causing major changes in living environment is possible even when further nursing care becomes necessary. A full-time concierge is on duty to propose lifestyle support plans in cooperation with the jointly-established nursing care center and local medical institutions. A jointly established senior day care services facility, the first to be operated by a group company of Tokyo Tatemono, offers services to both neighboring residents and Grapes Tateishi residents. Exterior Rooftop terrace Tokyo Tatemono Co., Ltd All Rights Reserved.

13 I. Business Results for the Q of FY07 (3) Business Results by Segment (iv) Other List of facilities (Facilities in red were acquired in FY07, Facilities in blue began operations in FY07, Facilities with a "*" are under development) Residences for elderly people with service <<Properties owned by Tokyo Tatemono>> Grapes Asakusa Grapes Fujimino Grapes Omori-nishi Grapes Felicity Totsuka Grapes Kawasaki Shinmachi Grapes Season Totsuka Grapes Tsujido Nishikaigan Grapes Tateishi * Grapes Yoga (operations slated to start in 07) * Grapes Setagayachitosedai (operations slated to start in 07) * Grapes Shonantsujido (operations slated to start in 07) * Grapes Hachioji-shi Bessho -chome PJ (working name) (operation start date to be determined) * Kita Aoyama 3-chome Urban Development Project (operations slated to start in 00) Grapes Yoga (Image of exterior) Total 7 facilities <<Properties managed by Tokyo Tatemono>> Kosha Heim Chitose Karasuyama Grapes Garden Nishi-arai Daishi Grapes J Higashi Ikebukuro * Kosha Heim Hirao (operations slated to start in 07) Kosha Heim Hirao (Image of exterior) Private nursing homes <<Properties owned by Tokyo Tatemono>> * Private nursing home plan for Daikyo-cho (working name) (operations slated to start in 07) <<Properties managed by Tokyo Tatemono>> Adonis Plaza Omiya Sans Souci Kita-Urawa Sans Souci Owada Total 4 facilities Sans Souci Owada Hikarigaoka Higashi Kurume Konandai Shiki Hana Koganei Tama Mogusa Ooimachi Ofuro no Osama Ebina Seya Sagamihara Kouza-Shibuya Ekimae Machida Total facilities Ofuro no Osama (Machida) Pet-Friendly Hotels (Regina Dog Club) Regina Resort Fuji Regina Resort Hakone Ungaiso Regina Resort Izu Murin Regina Resort Karuizawa Mikage Yosui * Regina Resort Tateshina (operations slated to start in 07) * Regina Resort Kyu-Karuizawa (working name) (operations slated to start in 07) * Biwako Nagahama (name pending) (operations slated to start in 08) * Hakone-machi (name pending) (operations slated to start in 08) * Kamogawa (name pending) (operation start date to be determined) Total 9 facilities Regina Resort Tateshina Tokyo Tatemono Co., Ltd All Rights Reserved. 3

14 II. Quarterly Segment Data

15 II. Quarterly Segment Data () Commercial properties business Commercial properties business 04/6 04/9 04/ 05/3 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/3 Number of buildings Ownership Consolidated SPC Rentable space (Unit: thousand m ) Ownership Consolidated SPC Vacancy rate 5.7% 5.4% 4.8% 7.4% 5.7% 5.5% 5.0% 4.4% 4.3% 3.3% 3.7% 3.5% Ownership 6.3% 6.5% 5.% 9.3% 6.7% 6.7% 5.8% 5.3% 5.% 4.% 4.0% 4.0% Consolidated SPC 4.9% 3.9% 4.% 3.% 3.5%.6% 3.%.0%.0%.3%.6%.9% [Ownership/Consolidated SPC total] Average rent (Unit: yen/tsubo) 9,8 9,509 9,04 8,608 8,50 8,9 9,40 9,9 8,934 8,99 9,39 9,48 Tokyo Tatemono Co., Ltd All Rights Reserved. 5

16 II. Quarterly Segment Data () Residential development business Residential development business 04/6 04/9 04/ 05/3 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/3 Number of units sold (cumulative) , ,089, Number of condo units sold , ,087, Housing and residential land Others Gross margin ratio of condo sales (cumulative) 6.6% 7.8% 7.% 5.0% 4.% 3.6%.7% 8.8% 7.3% 8.8% 0.9% 7.4% Inventory of completed condos Of which, contracted Condo units supplied (cumulative) Condo units contracted (cumulative) , ,379, , ,48, Number of condo buildings for rent Number of managed condo units 49,306 49,998 5,40 5,969 50,430 49,979 49,484 5,036 5,93 5,749 53,00 54,733 Tokyo Tatemono Co., Ltd All Rights Reserved. 6

17 II. Quarterly Segment Data (3) Real estate solution services business & Other Real estate solution services business Real estate brokerage business: Number of brokerage deals (cumulative) 04/6 04/9 04/ 05/3 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/ Of which, sales (cumulative) Of which, rentals (cumulative) Parking lots: Number of locations ,88,94,306,334,30,336,340,579,564 Number of parking spaces 46,35 46,633 46,48 57,654 58,659 60,77 6,743 60,907 63,67 63,70 65,546 65,04 Other Occupancy rate* 39.0% 39.6% 4.7% 4.4% 4.9% 4.4% 4.3% 40.9% 4.0% 4.4% 44.% 40.5% 04/6 04/9 04/ 05/3 05/6 05/9 05/ 06/3 06/6 06/9 06/ 07/3 Residences for elderly people with service Of which, owned Owned units* Of which, operated Operated units* Private nursing homes Of which, operated Operated units *: Occupancy rates are calculated excluding some parking lots newly acquired. *: Includes some jointly owned properties. Data after the end of December 04 have been revised taking into account Tokyo Tatemono s ownership in these residences. Tokyo Tatemono Co., Ltd All Rights Reserved. 7

18 III. Reference Material

19 III. Reference Material () Medium-term Business Plan (05-09) Steadily progressed towards goal of operating income of 50 billion yen by 09. Revised breakdown for 09 operating income based on progress in the two years from launch. Image of operating income growth (Unit: billion yen) Previous plan Current plan Commercial properties business Residential development business 3rd domain (Real estate solution services business & Other) rd domain 4.0 bn 7.0 bn Residential development Initial plan Revisions at start of FY07 In addition to posting goodwill amortization reflecting M&A, senior housing business and leisure business underperformed. 9.0 bn 5.0 bn Brisk sales of properties in prime locations in central Tokyo. Thanks also to rich land bank, likely to outperform initial forecast Commercial properties 3.0 bn 34.0 bn In addition to stable growth of leasing revenue, stock of real estate for sale increased 04 (Actual) 05 (Actual) 06 (Actual) 07 (Forecast) 09 (Goal) Tokyo Tatemono Co., Ltd All Rights Reserved. 9

20 III. Reference Material () Financial Indicators & Investment Plans Outlook for financial indicators toward achievement of the goal 05-end 06-end Debt Equity Ratio Within 3 times.3x.3x Interest-bearing debt / EBITDA multiple Within 3 times 3.4X 3.0X (Reference) ROE (%) 5.6% 6.4% Medium-term Business Plan: Investment plans (Unit: billion yen) Fixed assets Gross investment Return Net investment Commercial properties Parking lot Leisure/Senior Other Subtotal Real estate for sale Gross investment Return Net investment Condominiums Other Subtotal Total Tokyo Tatemono Co., Ltd All Rights Reserved. 0

21 III. Reference Material (3) Large Redevelopment Projects Underway Large redevelopment projects underway in prime locations, including Yaesu and Ikebukuro. Urban redevelopment PJ of Yaesu -chome East Area in front of Tokyo Station Large redevelopment project in front of Tokyo Station, including Tokyo Tatemono Headquarters Building Construct a large bus terminal that connects Tokyo with international airports and regional cities Introduce functions that will enhance Tokyo s global competitive edge, including conference halls and medical facilities Strengthen regional BCP functions and capabilities to prevent disasters Urban planning decided on September 8, 05 [Total floor space] A block: about,000 m² B block: about 8,000 m² [Main uses] A block: offices, shops, etc. B block: offices, shops, medical facilities, bus terminal, conference halls, etc. [No. of floors] A block: floors above ground, 3 below B block: 54 floors above ground, 4 below [Construction start] October 00 (planned) [Completion date] March 04 (planned) Toshima Project (working name) Complex development on the former Toshima Ward Office site under cooperation with the government Expand Ikebukuro s function as an urban subcenter by constructing large office buildings Construct more theaters, including a cinema complex, and commercial facilities Create activity in the Ikebukuro area and contribute to communicating a new culture Construction launched in December 06. The nickname of the redevelopment area has been decided as Hareza Ikebukuro [Total floor space] Former ward office site : about 64,000 m² Former public hall site : about 0,000 m² [Total area] Former ward office site : 3,637.5 m² Former public hall site : 3,049.6 m² [Construction start] December 06 [Completion date] New hall scheduled for spring 09 Private-sector facilities scheduled for spring 00 Tokyo Tatemono Co., Ltd All Rights Reserved.

22 III. Reference Material (4) Major Condo Projects Projects in prime locations in central Tokyo are scheduled for completion in each fiscal year during the period of the medium-term business plan. Major projects expected to post sales Total number of units sold Number of units sold by Tokyo Tatemono Land bank by area Brillia THE TOWER TOKYO YAESU AVENUE Brillia Towers Meguro (South Residence) Brillia Towers Meguro (North Residence) Brillia Tower Ueno Ikenohata Brillia Tower Yoyogi Park CLASSY 95 7 Ichibancho Project (working name) Other 5% Other Tokyo Metropolitan areas % Tokyo excluding 3 wards 7% 3 wards of Tokyo 66% Total: about 7,000 units (Working name) Shirokane -chome Redevelopment Project Total no. of units: about,00 units (As of March 3, 07) (Including,000 units scheduled to be sold in 07) Brillia THE Tower TOKYO YAESU AVENUE Brillia Towers Meguro Brillia Tower Ueno Ikenohata Brillia Tower Yoyogi Park CLASSY 30 floors above ground Total of 387 units South: 38 floors above ground North: 40 floors above ground 66 units for sales (out of total 940) 36 floors above ground Total of 36 units 9 floors above ground Total of 95 units Tokyo Tatemono Co., Ltd All Rights Reserved.

23 MEMO Tokyo Tatemono Co., Ltd All Rights Reserved. 3