Introduction to Construction and Real Estate Businesses

Transcription

1 Introduction to Construction and Real Estate Businesses March 21st, 2017 Key messages Importance of Real Estate Businesses Business development that is not inferior to competitors Commitment to real estate development Stable and highly profitable business contents A steady profit of more than 20 billion yen & Management assets (total assets + assets under management) 1,200 billion yen Aim for achievement in FY2019 1

2 1. Summary of Our Real Estate Businesses 2. Characteristic of Our Real Estate Businesses 3. Performance 2 1. Summary of Real Estate Businesses1 - Organizations Metal Products Media Division Transportation & Construction System Environment & Infrastructure Media, ICT, Lifestyle Related Goods & Services Mineral Resources, Energy, Chemical & Electronics ICT Business Division Lifestyle & Retail Business Division Food & Agriculture Business Division Materials, Supplies & Real Estate Business Division Planning & Coordination Dept. Materials, Supplies Business Line Real Estate Business Line Mar,

3 1. Summary of Real Estate Businesses2 - History 1919 Established Osaka North Harbour Company (origin of Sumitomo Corporation) 1950 Management of property of Osaka North Harbour Company Ltd and Sumitomo family 1960 Full-fledged participation in office building and condominium business (Sumitomo building, Maison Nishinomiya) 1970 Participation in commercial facility business (Ichihara shopping square) 1980 Expansion of overseas real estate business (600 Third Avenue, SUMMITMAS I) 1990 Development of large mixed-use facilities (Decks Tokyo Beach, Queens Square Yokohama) 2000 Enter into fund business and build-to-suit business, and fund-fledged initiatives of real estate securitization (Fund composition for Commercial and Residence, Harumi Triton Square, The Tokyo Towers) 2010 Participation in private-placement REIT arrangement and logistics real estate development business (Organization of SC Realty Private REIT Inc, SOSiLA series, Terrace Mall Shonan) Projects between brackets are representative Summary of Our Real Estate Businesses 2. Characteristic of Our Real Estate Businesses 3. Performance 5

4 2. Characteristic of Our Real Estate Businesses1 - Full Line UP We provide one-stop services from planning to operation of various products as an integrated real estate developer. 住 Housing 友 Partnership 商 Retail 事 Office Housing Development & Sales Business Housing development and sales business targeted mainly upper middle layer in Japan and overseas Fee & Built To Suit Business Based on Partnership Asset management business for fund and REIT, Development of retail facilities, logistic facilities etc., which is taylormade Retail Facilities Business Development and regeneration of retail facilities in Japan, Development and management consulting of facilities in overseas (China) Office Building Business Development of office buildings and value up of districts mainly Kanda in Japan, Promoting of development and sales business Planning & Development Sumisho Tatemono Sales, agency and management of housing & land, Housing renovation business Sumisho Realty Management Asset management of real estate Sumisho Urban Kaihatsu Planning & development, Operating & Management of retail facilities Sumisho Building Management, S.C. Building Service SC Building Service West, Sumisho Interior International General management and maintenance of property like office building, Design, planning, procurement, construction, trading and sales of interior related Management & Operation 6 2. Characteristic of Our Real Estate Businesses2 - Hands-on Development of comprehensive real estate business - Hands-On Culture of Manufacturing based on real estate business for about 100 years Know-how accumulated in various real estate developments, office, residence, retail and so on Strength as Integrated Trading Company Proposal and development utilizing a large number of merchandise and network as a integrated trading company power Condominium Retail Facilities Office Building BTS Logistic Real Estate 7

5 2.Characteristic of Our Real Estate Businesses3 - Initiatives for Large-Scale Composite Development Projects Queens Square Yokohama (Yokohama, Kanagawa) founded :Jun, 1997 size:36 th floor above ground, underground 5 floor floor area:496,386 m2 use :office, retail facility, hotel Decks Tokyo Beach (Minato-ku, Tokyo) founded :2000 年 (II phase) size:8 th floor above ground floor area:69,000 m2 use : retail facility Harumi Triton Square (Chuo-ku, Tokyo) founded :Oct, 2001 size:44 th floor above ground, underground 4 floor floor area:435,601 m2 use:office, retail facility Mikage Classe Mikage Tower Residence (Hyogo) founded : Feb, 2008 size :(commercial)5 th floor above ground, underground 1 floor floor area:107,900 m2 use:retail facility, condominium GINZA SIX (Chuo-ku, Tokyo) Feb,2003 Organization of town development founded:jan, 2017 floor area:147,900m 2 councils / Discussion started Dec,2011 Urban planning decision One of the largest floor area in Tokyo rental area Creating a commercial space with a sales floor area of approximately 46,000 m2 Functions as a sightseeing base, such as preparing the first tourist bus stop for Ginza Dec,2012 Establishment of redevelopment association, business approval Apr,2014 Construction start Jan,2017 Completion Apr,2017 Commercial facility / Noh-gakudo open 8 2. Characteristic of Our Real Estate Businesses4 - Exercise comprehensive power as a integrated trading company Comprehensive real estate business Service Tenant (value adding) Office Building Retail Facility Condominium BTS, Logistics Real Estate Procurement materials 9

6 2. Characteristic of Our Real Estate Businesses5 - Businesses in overseas As of Mar Atlanta Financial Center Apartment Development (Across the U.S.) (Office Building) Leasing Floor:85,073 m2 Acquisition:2016 Chicago 203N La Salle 中国 ( 蘇州 ) 新和城プロジェクト (Office Building) (Residential development) Leasing Floor:59,000 m2 India (Delhi) Gurugram PJ (Residential development) Number of units:403 Completion of PJ:2017 年 (plan) Acquisition:2014 Number of units:1 st phase 450 (TTL 5,000) PJ start:2016 San Diego 450B st. (Office Building) Leasing floor: 27,000 m2 Acquisition:2013 中国 ( 上海 ) 東 豪園 (Residential development) Number of units:719 Completion of PJ:2017(plan) SUMMITMAS I II (Office Building) Leasing Floor:45,000 m2 Completion:1985, 1992 Shanghai Chamberlee Tomosho (Retail Facility management) Established : 2015 Towne Lake (Residential land development) Number of units:3,000 PJ Start:2004 Miami Tower (Office Building) Leasing Floor:58,000 m2 Acquisition: Summary of Our Real Estate Businesses 2. Characteristic of Our Real Estate Businesses 3. Performance 11

7 3. Performance - Portfolio Assumption Portfolio of various types of business lines Stability Office Building Based on Selling Business Retail Facilities Condominium Based on Rental Business BTS Logistics Real Estate Capital efficiency REIT, Fund business Performance - Total Assets, Net Profit Theme : Profit growth with increased high quality assets and higher overseas ratio (20% as a target) Total Assets (unit: 100 mil. yen) Total Assets (overseas) Total Assets (domestic) Net Profit (Total) Targets for FY Net Profit : 20 bil. yen or more - Total Assets : approx. 650 bil.yen Net Profit (unit: 100 mil. yen) 6,000 Active replacement from low profitability assets to high quality assets 200 4, , 列 * Excluding some one-off large-scale profits (Estimate) (Image) 0 13

8 3. Performance - Net Profit by Business Line Aiming for diversified expansion of portfolio with stable income base (Unit : 100 mil. Yen) 200 Others BTS, Logistics Real Estate and Fund Business Condominium Retail Facilities Office Building (Estimate) 2019 (Image) * Excluding some one-off large-scale profits * Office Building includes condominium business and residential land development business in the U.S Performance - Free Cash Flow Investments have made along with the company policy Investment should be financed with cash generated. (unit : 100 mil. Yen) (Estimate) 4-year total Office Building Retail Facilities Condominium BTS, Logistics Real Estate and Fund Business Others Total 15

9 3. Performance Assets Under Management in Fund/REIT Business Aiming for 1,200 billion yen of total management assets (total assets + assets under management) at the end of FY2019 Assets (unit : 100 mil. yen) 12,000 Assets under management Total Assets Targets for FY Total Assets : approx. 650 bil.yen - Client Assets : approx. 550 bil. yen 8% Ratio of fund business income 6% 8,000 4% 4,000 2% 列 (estimate) (Plan) 0% Performance - Comparison with Competitors Higher profitability and efficiency then major real estate developers, though disadvantage in size Net Profit (FY , Average) Ratio of net income to sales, ROA (FY , average) (unit : 100 bil. yen) 1,000 5% 800 4% R O A 3% 2% Sumitomo Corporation (Real estate business) Company E Company A Company C 200 1% Company D Company B Circle size indicates amount of total assets. 0 Sumitomo Corp. Company A Company B Company C Company Company D E * Excluding some one-off large-scale profits * Financial results are based on the financial statements of the companies. 0% 0% 5% 10% 15% 20% Ratio of net income to sales 17

10 Key messages (reminder) Importance of Real Estate Businesses Business development that is not inferior to competitors Commitment to real estate development Stable and highly profitable business contents A steady profit of more than 20 billion yen & Management assets (total assets + assets under management) 1,200 billion yen Aim for achievement in FY