November 8, 2018 Hoosiers Holdings (3284) Second Quarter Fiscal Year Ending March 2019 Explanatory Materials on Financial Results

Transcription

1 November 8, 2018 Hoosiers Holdings (3284) Second Quarter Fiscal Year Ending March 2019 Explanatory Materials on Financial Results

2 Agenda 1. Company information Company overview Group structure History 2. 2Q of FY3/19 highlights Summary of results Income statement (consolidated) Net sales by segment Balance sheet (consolidated) P3 P4 P5 P7 P8 P9 P10 4. Progress status/future prospects Condominium Apartments for Families and Singles (Contract) Condominium Apartments for Families and Singles (Delivery) CCRC (Purchasing) CCRC REIT Energy business M&A P23 P26 P27 P28 P29 P H of FY3/19 topics 5. Dividends plan Condominium Apartments for Families and Singles Area expansion CCRC Houses and Flats Real Estate Investment Property Management and Related Services International businesses P12 P14 P15 P17 P18 P19 P21 Policies on dividends and profit return Purchase of treasury shares in FY3/19 P34 P35

3 1. Company information

4 Company overview Name Hoosiers Holdings Representative Address Employees Tetsuya Hirooka, CEO and President Marunouchi-Nakadori Building, Marunouchi, Chiyoda-ku, Tokyo, Japan 690 (consolidated) (approx. 40% of employees are women) Established April 2013 Hoosiers founded December 1994 Branches Hokkaido, Tohoku, Nagoya, Kyoto, Osaka, Chugoku/Shikoku, Kyushu, Singapore, Portland Listed on First Section, Tokyo Stock Exchange (securities code: 3284) Main businesses Real estate development, continuing care retirement communities (CCRCs), houses and flats, real estate investment, international businesses, energy businesses, etc. (As of November 1, 2018) 3

5 Holding company Hoosiers Holdings Group structure Condominium Apartments for Families and Singles CCRC Hoosiers Corporation Hoosiers Care Design Houses and Flats Hoosiers Avenue Real Estate Investment Hoosiers Asset Management Property Management and Related Services Condominium management Hoosiers Living Service Operation of sports clubs Hoosiers Wellness & Sports International businesses Hoosiers Asia Pacific Pte. Ltd. Hoosiers,Inc. Asset Management Vermilion Capital Management Other businesses Private finance initiative (PFI) business Ideal Environment Advisers Co., Ltd. 4

6 History 1994 Dec. Hoosiers Y.K. established 1995 Began real estate sales contracting business (planning/solutions Jan. sales agent) June Reorganized from limited liability company to joint-stock company Renamed Hoosiers Corporation 2000 Number of condominium units surpassed 1,000 units 2002 Shares listed on JASDAQ market (seven years, 10 months after Oct. establishment) Hoosiers Living Service established 2003 Shares listed on Second Section of Tokyo Stock Exchange (eight Oct. years, 10 months after establishment) Secured top position in number of condominium units supplied in 2004 Saitama Prefecture Shares listed on First Section of Tokyo Stock Exchange (nine years, Sept. nine months after establishment) 2005 Number of condominium units surpassed 5,000 units Secured top position in number of condominium units supplied in Chiba Prefecture 2007 Number of units managed surpassed 5,000 units 2008 Number of condominium units surpassed 10,000 units Secured top position in number of condominium units supplied in Chiba Prefecture 2012 April Tohoku Branch opened Oct. Kyoto Branch opened 2013 April Hoosiers Holdings established Hoosiers Avenue established 2014 Number of units managed surpassed 10,000 units Secured top position in number of condominium units supplied in the Tohoku/Sendai area Jan. AM31 added to Group (Now Hoosiers Asset Management) Began real estate investment business April Hokkaido Branch opened 2015 April Osaka Branch opened; Nagoya Branch opened Ideal Environment Advisers Co., Ltd. established July Hoosiers Care Design established Secured top position in number of condominium units supplied in the 2016 north Kanto area April SPORTS ACADEMY Co., Ltd. added to Group May Kyushu Branch opened Aug. Miyanomori Sports Co., Ltd. added to Group Dec. Crystal Sports Club added to Group 2017 Number of condominium units surpassed 20,000 units May Hoosiers Asia Pacific Pte. Ltd. established in Singapore Began overseas business Sept. Vermilion Capital Management added to Group. Oct. Hoosiers, Inc. established in Oregon, US March Integrated sports club operation companies and changed the name to Hoosiers Wellness & Sports. Executed Japan's first partial-commitment-type rights offering to increase capital to \15.8 billion Nov. Chugoku/Shikoku Branch opened 5

7 2. 2Q of FY3/19 highlights 6

8 Summary of results Consolidated business performance Net sales: Operating income: Ordinary income: Net income: 21,028 million 428 million 507 million 242 million Topics Turned positive as planned Steady progress of contracts FY3/19 full-year performance forecasts Net sales: 88,000 million Increase: 38.9% Operating income: 9,160 million Increase: 25.7% Ordinary income: 8,000 million Increase: 15.3% 7

9 Income statement (consolidated) Million yen 1Q of FY3/19 2Q of FY3/19 Results % Results % Net sales 7, % 21, % Gross profit 1, % 5, % Selling, general and administrative expenses 2, % 4, % Operating income (347) % Ordinary income (129) % Profit attributable to owners of parent (126) % 8

10 Net sales by segment Million yen 1Q of FY3/19 2Q of FY3/19 Results Number of units Results Number of units Total 7,950 21,028 Condominium Apartments for Families and Singles 3,212 4, ,309 11,677 CCRC 1, , Houses and Flats 1, , Real Estate Investment 741 3,080 Property Management and Related Services 1,667 3,777 Other

11 Balance sheet (consolidated) Million yen FY3/18 2Q of FY3/19 Change Current assets 107, ,335 7,053 Cash and deposits 30,493 22,030 (8,463) Real estate for sale 16,471 21,635 5,163 Real estate for sale in process 53,680 64,706 11,025 Non-current assets 27,985 29,306 1,321 Land 8,640 8,597 (42) Buildings 9,629 9,450 (179) Total assets 135, ,718 8,359 Liabilities 92, ,715 8,947 Total interest-bearing debt 79,237 87,905 8,667 (Short-term) interest-bearing debt 24,537 31,345 6,808 (Long-term) interest-bearing debt 54,700 56,559 1,859 Net Assets 42,592 42,003 (588) Total liabilities and net assets 135, ,718 8,359 Equity Ratio 31.4% 29.0% Net equity ratio 40.5% 34.3% * Net equity ratio= Shareholders equity / (total assets cash and deposits, etc.) 10

12 3. 1H of FY3/19 topics 11

13 Condominium Apartments for Families and Singles Start sales of redevelopment project Duo Hills Kushiro First project in eastern Hokkaido area, next to Sapporo and Hakodate Sales in the first month: 25 contracts (35% of total units) Duo Hills Kushiro (Kushiro City, Hokkaido, 70 units) Getting off to a good start significantly exceeding the plan 12

14 Condominium Apartments for Families and Singles Appointed as Business Partner in the redevelopment project in Omote-cho, Okayama City First redevelopment project in Chugoku/Shikoku area *Architectural rendering Focusing on Chugoku/Shikoku area in future 13

15 Area expansion Advancing into key regional cities with populations of approx. 200,000 or more Target 131 cities Now 68 cities (As of October 31, 2018) * 61 cities as of March 31, 2018 Growing to cover all cities in Japan 14

16 CCRC Started sales in the popular area along JR Chuo Line Duo Scene Toyoda (Hino City, Tokyo, 118 units) Duo Scene Kunitachi (Kokubunji City, Tokyo, 228 units) Supplying a total of 1,300 units in Duo Scene series 15

17 CCRC Development within the same area having synergy effect Buyer of condominiums = Facility users Tomorrow PLAZA (eight minutes on foot from Toyoda Station on the JR Chuo Line) Duo Scene Toyoda (Hino City, Tokyo, 118 units) Potential customers = Customers using services related to daily life Realization of ideal CCRC 16

18 Houses and Flats Started sales of good location series Duo Avenue Inokashira-koen (Mitaka City, Tokyo, 6 blocks) Duo Avenue Suginami Takaido (Suginami-ku, Tokyo, 4 blocks) Duo Avenue Yokohama Yamate (Yokohama City, Kanagawa Prefecture, 12 blocks) Upward trend for houses in good location 17

19 Real Estate Investment Enhancing leasing/fee-based businesses Acquired You Life Maison Minaminokaze Acquired Casa Bianca Higashiokazaki Acquisition of CCRC assets Acquisition of lease properties Prepare for listing CCRC REIT 18

20 Property Management and Related Services Acquired and opened new sports facilities Miyanomori Sports Club Eniwa Branch (Eniwa City, Hokkaido) ALICE SPORTS CLUB (Nakano-ku, Tokyo) Attract potential customers for condominiums 19

21 Property Management and Related Services Membership of sports facilities (Members) 46,000 44,000 42,000 40,000 38,000 36,000 34,000 Mar Mar Sep With a view to 50,000 members 20

22 International businesses First overseas JV investment project with a Japanese leading company Japanese company ~Started the second condominium project in Bangkok~ Overseas local company RISE Phahon - Inthamara (Supplied by All Inspire Development in the past) 21

23 4. Progress status/future prospects 22

24 Condominium Apartments for Families and Singles (Contract) FY Beginning of FY 365 Steady increase in contracts End of 2Q 538 3/ contracts (Monthly average: 29 units) FY 3/ , contracts (Monthly average: 71 units) Significant increase in contracts 23

25 Condominium Apartments for Families and Singles (Contract) Steady increase in contracts (vs. FY3/19 delivery plan) End of 2Q 1,108 units/1,315 units 84.3% progress 24

26 Condominium Apartments for Families and Singles (Contract) Progress of condominium contracts (Number of contracts to delivered units) 207 Need contracts to achieve the target (vs. 1,315 units of condominiums to be delivered) Need 52 contracts/month on average (for four months until January 2019) Target achievement is within the range 25

27 Condominium Apartments for Families and Singles (Delivery) Number of condominium units to be delivered (Units) Q 2Q 3Q 4Q *Excluding CCRC condominiums To be delivered mainly in 2H 26

28 CCRC (Purchasing) pipeline Purchasing land for large-scale project in Omiya Total units 2,000 units (Number of units to be completed) Establish a structure to supply 400 units/year until FY3/22 27

29 CCRC REIT CCRC REIT will go public in FY3/20 Lease-type CCRC condominiums Sports clubs (34 existing facilities) Multipurpose CCRC facility (Tomorrow PLAZA) PFI Hospitals/Clinics Meeting demand for lease-type CCRC condominiums 28

30 Energy business Started construction of the biomass power plant in Kamisu Toward expansion of stock business Output: approx. 40 MW Construction started in October 2018 Scheduled to start operation in FY3/20 29

31 Energy business Wind power generation business Initiatives for renewable energy business Expansion of stock business Matsumae Wind Power Plant (Matsumae-gun, Hokkaido/5 wind turbines) 30

32 M&A Acquisition of business of JAPAN ICOM Co., Ltd. CLARS KAITA MINAMITAISHOMACHI (Aki-gun, Hiroshima Prefecture, 39 units) CLARS TOWER MATSUYAMA EKIMAE (Matsuyama City, Ehime Prefecture, 92 units) CLARS KURE HONDORI (Kure City, Hiroshima Prefecture, 70 units) CLARS KAWAGUCHICHO (Fukuyama City, Hiroshima Prefecture, 59 units) Expanding purchase in Chugoku/Shikoku area CLARS SANBANCHO (Matsuyama City, Ehime Prefecture, 81 units) CLARS NOGAMICHO (Fukuyama City, Hiroshima Prefecture, 39 units) 31

33 M&A Chugoku/Shikoku Branch opened Osaka Branch Opened: April 2015 Chugoku/Shikoku Branch Opened: November 2018 Kyoto Branch Opened: October 2012 Hokkaido Branch (Sapporo) Opened: April 2014 Tohoku Branch (Sendai) Opened: April 2012 Nagoya Branch Kyushu Branch (Fukuoka) Opened: May 2016 Opened: April 2015 Expanding purchase of good location rooted in regional community 32

34 5. Dividends plan 33

35 Policies on dividends and profit return FY3/16 FY3/17 FY3/18 FY3/19 Net income (Million yen) 1,835 3,357 4,564 5,200 (planned) Dividends per share (planned) Interim: 12; year-end: 13 Total dividends (Million yen) ,455 (planned) Payout Ratio 22.7% 19.7% 20.2% 27.8% Purchase of treasury shares (Million yen) 1, (planned) Total return ratio 77.4% 29.0% 26.5% 37.4% Targeting market capitalization of 100 billion 34

36 Purchase of treasury shares in FY3/19 Total number of shares that may be acquired 625,000 shares (maximum) (1.08% of total shares issued and outstanding [excluding treasury shares]) Acquired 586,100 shares Total purchase cost 500,000,000 (maximum) Acquired 450,266,800 Acquisition period May 15, March 31, 2019 Acquired 94% of the total number of shares *Completed on November 1 To further increase profit return to shareholders 35

37 Purchase of treasury shares in FY3/19 Class of shares to be acquired Total number of shares that may be acquired Total purchase cost Acquisition period Acquisition method Common stock 1,500,000 shares (maximum) (2.61% of total shares issued and outstanding [excluding treasury shares]) 1,000,000,000 (maximum) November 9, March 31, 2019 Purchase at market on the Tokyo Stock Exchange Message to the market 36

38 Contact us: IR inquiries Hoosiers Holdings PR/IR Office; tel URL Opinions, forecasts, statements regarding future outlook, and other forward-looking statements in this document are estimates based on the information available at the time this document was prepared. They are subject to significant change due to uncertainties in future economic conditions, the competitive climate, and extent of the success of new services. Please note that actual business performance, strategies, and other results and aspects may differ substantially from that described in this document. No reproduction, duplication, or reuse of this document is permitted without prior consent.