fiscal year ended december 31, 2013 results briefing · fiscal year ended december 31, 2013 results...
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Fiscal Year Ended December 31, 2013 Results BriefingFebruary 20th, 2014
ES-CON Japan Ltd.
Copyright ©2014 ES-CONJAPAN Ltd., All Rights Reserved 1
Table of Contents
Consolidated P/L summaryConsolidated B/S summaryResults by segment
Progress of Medium-Term Plan 2016Business strategyReal Estate Trading BusinessReal Estate Renting BusinessES-CON’s strengthsInquiries
Actions in FY ended December 31, 2013
Performance in the year ended December 31, 2013 (19th
term)
Medium-Term Plan 2016 and future business strategy
・・・ P. 4・・・ P. 5・・・ P. 6
・・・ P. 8・・・ P. 9・・・ P. 10, 11・・・ P. 12, 13・・・ P. 14・・・ P. 15
・・・ P. 2
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Creation of new condominium brand “Le JADE” in Tokyo area
Work begins on Le JADE Kami-Kitazawa2013Jan
“Suke-san Udon”, “au Shop” and “SoftBank Shop” opened in Fukuoka KasugaProject
Neverland Namba Park Air sold out
Lawsuit ended with settlement
“Chanpon Hibiki” and “Hanakoume” opened in Fukuoka Kasuga Project
Transfer of fixed assets (Fukuoka Kasuga)
Raffine Joyo Station The First sold out
New business site purchased (Minamichioka, Minato-ku)
“One Karubi+” opened in Fukuoka Kasuga Project
Work begins on Neverland Himeji The Station Front
Neverland Abeno Nishi Tanabe sold out
Neverland Abeno Showacho Brahms sold out
New business site purchased (Higashimukojima, Sumida-ku)
Work begins on new condominium sales project in cooperation with Nissei build Kogyo Co., Ltd.
Rights offering (non-commitment type/free assignment of listed share warrants)
Creation of first city-type new condominium Le JADE IX in Kansai
Creation of management company (subsidiary: ES-CON PROPERTY Ltd.)
New business site purchased (Nakazakicho, Akashi)
Sale of commercial development site (Omine Minamimachi, Hirakata)
Introduction of system linking condominium system and parking system jointly developed by three companies in Japan-first at Le JADE IX
Bond extinguishment (first unsecured bonds)
Le JADE Esaka preliminary briefing held
Work begins on Le JADE Shimomeguro
Neverland Himeji The Station Front first term sold out
Started taking requests for materials on Neverland Bentencho Hagukumi Town
Commissioned sales of Wazac Edogawa/Funabori
Neverland Kawaguchi Honcho MELDIA sold out
Leaf Create Feel City sold out
Rights offering implemented (exercise rate: 98.2%)
Feb
Mar
Apr
May
Jun
Jul
Aug New Medium-Term Business Plan established – “Make The One for 2016”
Le JADE Kami-Kitazawa sold out
Sale in progress for the sale of real estate (Hirano, Koto-ku)
Neverland Bentencho Hagukumi Town sales commenced
Neverland Himeji The Station Front sold out
Sept
JADE Higashi Toyonaka I/II sold out
The Neverland Akashi Harbor Gate sales commenced
Profitable real estate acquired (Higashinada-ku, Kobe)
Oct
Dec
Issuance of paid stock options
Neverland Himeji The Station FrontLe JADE Kami-Kitazawa Le JADE IX
Neverland Bentencho Hagukumi Town
Grand Le JADE KYOTO KAWARAMACHI
Neverland Namba Park Air
(Fukuoka Kasuga: One Karubi+)
Le JADE Shimomeguro
The Neverland Akashi Harbor Gate
Main actions in FY2013
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Performance in the year ended December 31, 2013 (19th term)
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Consolidated P/L summary for year ended December 31, 2013
(million yen)
Full year ended Dec2013
(current term)
Full year ended Dec2012
(previous term)
Amount ofincrease/d
ecrease
Compared withsame period inprev ious year
(%)
Full year ended Dec2013
( Initial forecast)
Differencebetween
forecast/actualresults
13,558 10,184 3,374 133.1% 11,700 1,858
1,703 1,642 61 103.7%
1,844 1,504 340 122.6% 1,720 124
Operating profit ratio 13.6% 14.8% -1.2point - 14.7% -1.1point
1,200 860 340 139.6% 920 280
499 0 499 -
0 459 -459 -
1,905 392 1,513 485.0% 910 995
31.14 7.72 23.42 403.4%
Extraordinary loss
Extraordinary income
Net income per share
Net sales
Net income
Marketing expenses/generalmanagement expenses
Operating income
Ordinary income
YOY sales increase of 33% thanks to condominium sales changing to favorable conditions, sales of real estate in Commercial Development Business, etc.
Point 1
Point 2
Point 3
Likewise in terms of income, there was a YOY increase of 22% in operating income and a 39% YOY increase in ordinary income
There was a 385% YOY increase in net income thanks to appropriation of special income of 420 million yen from settlement of lawsuit, etc.
Point1
Point2
Point3
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Consolidated B/S summary for year ended December 31, 2013(million yen)
FY ended Dec2013
(current term)
FY ended Dec2012
(previous term)
Amount ofincrease/decrease
15,947 16,900 -953
4,161 2,234 1,927
2,050 5,716 -3,666
Real estate for sale in progress 7,898 8,055 -157
Fixed assets 27,615 29,007 -1,392
Tangible fixed assets 26,693 28,202 -1,509
Intangible fixed assets 17 11 6
904 792 112
43,695 45,910 -2,215
Current liabilities 8,978 8,718 260
Short-term borrowings 280 570 -290
6,814 6,521 293
557 607 -50
Fixed liabilities 25,128 32,979 -7,851
Bonds 1,115 1,822 -707
Long-term debt 22,903 29,941 -7,038
Total liabilities 34,107 41,697 -7,590
Shareholders' equity (total) 9,587 4,212 5,375
43,695 45,910 -2,215
21.9% 9.2% +12.7 points
Long-term debt to be repaidwithin one year
Capital Adequacy Ratio
Bonds scheduled within one year
Investments and other assets
Total assets
Current assets
Cash and deposits
Real estate for sale
Total liabilities and net assets
Point1
Housing Sales Business changed to favorable conditions, while real estate for sales decreased
Point 1
Point 2
Point 3
Net Interest-Bearing Liabilities decreased by 7.7 billion yen
Shareholders’ equity increased by 5.3 billion yen YOY thanks to rights offeringCapital adequacy ratio improved to 21.9%
Point 2
Point 3
Point 3
Point2
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Results by segment
Increase in income thanks to condominium sales changing to favorable conditions, sales of real estate in Commercial Development Business, etc.
Point 1
Point 2
Point 3
Contributed to profit as business with stable profits
Contributed to profit as business with high profit ratio thanks to company’s strengths, including planning and business construction
Condominium sales Contract/sale results
No. of properties(residences)
Amount (millionyen)
No. of properties(residences) Amount (million yen) No. of completed
houses (residences)Amount
(million yen)
FY ended Dec 2012(previous term) 194 5,495 75 1,971 166 4,769
FY ended Dec2013
(current term)316 10,036 167 5,232 224 6,775
Contracts agreed during term Balance of contracts at end of term Sales results
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Medium-Term Business Plan 2016 and future business strategy
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Progress of Medium-Term Plan “Make The One for 2016”
20142nd year
2015
2016Final year
Maximization of corporate value and returns to shareholders
Establishment of firm management foundation able to withstand all kinds of economic environments
Target
2013 (results)1st year of Medium-Term Plan
Establish position as Integrated Real Estate Development EnterpriseMake free use of strengths of linked development/management system for Housing, Commercial
Development, and PMCatching up with planning of selected products
Strengthen Planning & Sales Division to propose what lies ahead in terms of quickly diversifying customer needs
Establishment of corporate entity resilient against changing market conditionsPromotion of business management with awareness of optimum balance between three
businesses: “Real Estate Development”, “Real Estate Renting”, and “Real Estate Planning agency Consulting”
Construction of strong business management systemFurther enhance precision of P/L management for each Business Division and implement strict
controlsChange into challenging group
All employees to become challengers, changing into an enterprise group that resolutely engages in new business areas without neglecting daily self-development
Aim to increase equity and improve financial structure by means of rights offering. Capital adequacy ratio to reach 21.9%.
First resumption of dividends in six years, since year ended December 31, 2007.
In the second year of the Medium-Term Plan “Make The One for 2016”, which is also to be commemorated as the 20th anniversary year of ES-CON Japan’s founding, the company will aim to promote sound business.
Dividend 1 yen 2 yen
Results from year ended December 31,
2013Per shareForecast for year
ending December 31, 2014
(Units: million yen)
*ROIC (Ratio Of Invested Capital): Operating income after tax/(Shareholders’ equity + Net Interest-Bearing Liabilities)
Q2 Full year
Capital Adequacy Ratio 21.9% 30.0% min.ROE (Return On Equity) 27.7% 12.0% min.ROA (Return On Assets) 2.7% 3.6% min.ROIC (Return On Inv ested Capital)* 4.5% 5.8% min.EPS (Net income per share) 31.14 yen 22 yen min.BPS (Shareholders' equity per share) 137.14 yen 190 yen min.Dividend payout ratio 3.2% 24.0% min.
(Units: million yen)
Net sales 13,558 3,120 17,600 17,700~20,000
18,500~22,500
Real Estate Trading Business 10,991 1,960 15,050 15,200~17,500
16,000~20,000
Real Estate Renting Business 2,234 1,100 2,250 2,200 2,300Real Estate Planning Agency ConsultingBusiness 331 60 300 300 300
Operating income 1,844 510 2,300 2,200~2,600
2,300~2,800
Ordinary income 1,200 160 1,600 1,500~1,850
1,700~2,100
Net income 1,905 170 1,550
20th term (ending Dec 2014)19th term (endingDec 2013) (actual
results)
21st term (endingDec 2015)
22nd term (endingDec 2016)
Management goals andperformance plan
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ES-CON Japan’s business strategy2014 (20th term)Le JADE IX (Kansai)Neverland Himeji The Station Front (Kansai)Le JADE Esaka (Kansai)Neverland Bentencho Hagukumi Town (Kansai)Le JADE Shimomeguro (Kanto)Le JADE Higashi-Mukojima (Kanto)Housing Project in Suginami-ku, Tokyo (Kanto)
332residences
2015 (21st term)The Neverland Akashi Harbor Gate (Kansai)Grand Le JADE KYOTO KAWARAMACHI(Kansai)Project in Tsurumi-ku, Yokohama (Kanto)Housing Project in Suginami-ku, Tokyo (Kanto)
400residences
2016 (22nd term)500
residences
Garden Mall SeiwadaiGarden Mall Minami-SenriAEON Minami-SenriHotel Vista Premio KyotoHakuyukai Kuzuha HospitalFukuoka Kasuga ProjectProject in Higashinada-ku, Kobe
Profitable real estate currently owned
Plans for Renovation Business, etc.
Promotion of multifaceted business development, including Condominium Sales, Housing, Renovation and Commercial Facilities, etc.Pursuing product planning with proposals for things that lie ahead of customer needs
Continued focus on business with stable income
Focus on expansion of business in renting high-yield commercial sites
Aiming to further increase value of assets by strengthening leasing activities
Taking into account the time period and special characteristics of properties, etc., and aiming to optimize assets by means of asset replacement, etc.Planning and business
construction as greatest strengths, and enabling development of various businesses. Aiming for differentiation from other companies
Continued focus on businesses with high-profit ratio in short-term requiring little prior investment
Synergy effects
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Real Estate Trading Business
Neverland Sakasegawa NogamiNeverland Nishinakajima-MinamigataNeverland Kawaguchi Hommachi MELDIALeaf Create Feel CityNeverland Namba Park AirNeverland Abeno Nishi TanabeNeverland Abeno Showacho BrahmsJADE Higashi Toyonaka (residential)
Neverland Sakasegawa NogamiLe JADE IXNeverland Himeji The Station FrontLe JADE EsakaNeverland Bentencho Hagukumi TownLe JADE ShimomeLe JADE Higashi-MukojimaProject in Suginami-ku, Tokyo (residential)
Neverland Sakasegawa NogamiNeverland Nishinakajima-MinamigataNeverland Momoyama EgzesNeverland Awaza AliveNeverland Kawaguchi Hommachi MELDIA
Fukuoka Kasuga residential area
Nihonbashikabuto-cho Tokiwa, Urawa-ku, etc.
Itachibori Fukuoka Kasuga commercial
area Omine-cho, Hirakata Matsue, Edogawa Kabuki-cho, Shinjuku Uematsu-cho, Shimogyo-ku, etc.
Housing
Other
Using ES-CON Japan’s strengths in business construction, speed and ideas, to actively develop multifaceted businesses in real estate, not only in Housing sales but also in Commercial Facilities, etc.
Creating value that is unique in the world, based on the key phrase: “Make The One”
Development of Housing Sales and Renovation Business in both Kansai and Kanto areas, and expansion of business areas
(Units: million yen)
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Lineup of ES-CON Japan developments
Le JADE Esaka
Location: Chuo-ku, OsakaAccess: 2 mins walk from Matsuyamachi Station on Nagahori Tsurumi-ryokuchi LineTotal no. of residences: 76 (plus 1 management office)Opening: End of November, 2014
Location: Suita, OsakaAccess: 8 mins walk from Esaka Station on Midosuji LineTotal no. of residences: 43 (plus 1 management office)Opening: End of September, 2014
Location: Shimomeguro, Meguro, TokyoAccess: 12 mins walk from Musashi-Koyama Station on Tokyo Meguro LineTotal no. of residences: 21Opening: End of July, 2014
Le JADE Shimomeguro
Le JADE IX
Neverland Bentencho Hagukumi TownLocation: Minato-ku, OsakaAccess: 9 mins walk from Bentencho Station on Chuo LineTotal no. of residences: 112Opening: End of December, 2014
Neverland Himeji The Station FrontLocation: Himeji, Hyogo PrefectureAccess: 2 mins walk from Himeji Station on JR Sanyo Main Line/Sanyo Shinkansen LineTotal no. of residences: 55Opening: End of November, 2014
Le JADE Higashi-MukojimaLocation: Sumida-ku, TokyoAccess: 6 mins walk from Higashi-Mukojima Station on Tobu Skytree LineTotal no. of residences: 36 (plus 1 management office)Opening: End of December, 2014
Grand Le JADE KYOTO KAWARAMACHILocation: Nakagyo-ku, KyotoAccess: 4 mins walk from Kawaramachi Station on Keihan Kyoto LineTotal no. of residences: 135 + store (plus 1 management office, 1 meeting room, 1 owner’s room, and 1 owner’s salon)Opening: End of December, 2015
▼ The Neverland Akashi Harbor Gate
Location: Akashi, Hyogo PrefectureAccess: 8 mins walk from Akashi Station on JR Kobe LineTotal no. of residences: 149 (plus 1 management office, 1 meeting room, and 1 kids’ room)Opening: End of October, 2015
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Real Estate Renting Business
Aiming to improve value of assets owned and optimize assets, focusing on this area as a secondary profitable business
Aiming for further improvement of asset value by securing rental income of around 2 billion yen per year, strengthening leasing activities, and cultivating know-how in PM Business, etc.
Aiming to optimize asset contents by replacing owned assets
Owned assets(million yen) 29,805 26,594
(Units: million yen)
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Lineup of assets owned by ES-CON Japan
AEON Minami-Senri Hotel Vista Premio KyotoGarden Mall Minami-SenriGarden Mall Seiwadai Hakuyuka Kuzuha HospitalLocation: Suita, OsakaAccess: 1 min walk from Hankyu Minami-Senri Station
Location: Kawanishi, Hyogo PrefectureAccess: 1 min walk from Seiwadai Chuo Station on Hankyu Bus
Location: Nakagyo-ku, KyotoAccess: 5 mins walk from Keihan Kyoto Sanjo Station
Location: Suita, OsakaAccess: 10 mins walk from Hankyu Minami-Senri Station
Location: Hirakata, OsakaAccess: 7 mins walk from Keihan KuzuhaStation
Fukuoka Kasuga ProjectLocation: Kasuga/Onojo, Fukuoka PrefectureAccess: Approx. 5 mins by car from JR Hakata-Minami Station
1. K’s Denki
8. Showa Shell Sekiyu 11. Kura-Zushi
Lineup of tenants opened to date
17. One Karubi+
2. Nafco 3. MrMax SC
15. Suke-san Udon 16. Chanpon Hibiki14. Hanakoume13. Konpiramaru
12. DoCoMo Shop7. Mini-Stop
6. Shimamura5. Avail4. UNIQLO
10. SoftBank9. au
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The future of ES-CON Japan
Integrated Real Estate
Development Business
Condominium Business
PM
Condominium Management
Planning Consulting
Investment Consulting
Housing Business
Renovation
Commercial Developments
Development of multi-faceted real estate-related businesses, constructing a management system that be maneuvered with flexibility to deal with changes
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Tokyo Head Office4th floor, Uchikanda 282 Building, 2-15-9, Uchikanda, Chiyoda-ku, Tokyo 101-0047
Osaka Head Office13th floor, Meiji Yasuda Life Building, 4-1-1, Fushimimachi, Chuo-ku, Osaka-shi, Osaka 541-0044
http://www.es-conjapan.co.jp
13th floor, Meiji Yasuda Life Building
4-1-1, Fushimimachi, Chuo-ku, Osaka-shi, Osaka
Public Relations and Investor Relations Officer of Administrative
Department, Management Division
Tel.: 06-6223-8055
E-mail: [email protected]
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