investor briefing document for the six months ended ... · 1)* date of completion building building...

Copyright (C) 2018 UNIZO Holdings Company, Limited All Rights Reserved.

Investor Briefing Document

for the Six Months Ended September 30, 2018

November 9, 2018 First Section, Tokyo Stock Exchange

Securities Code: 3258

Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this

translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or

any other forms of damages arising from the translation.


1

Disclaimer

Use of This Document

This document contains forecasts, plans for the future, management targets, etc. relating to the company

and its business group. These forward-looking statements are based on current assumptions concerning

future events and trends that may prove to be inaccurate. Actual results may differ materially from the

statements in this document as a result of various factors.

Unless otherwise noted, the financial data contained in this document are presented in accordance with

generally accepted accounting principles in Japan. The company disclaims any obligation to revise forward-

looking statements that have been made to reflect future events or other developments except as required

by disclosure rules.

This document does not constitute, and is not intended as, a solicitation to subscribe for or a solicitation to

purchase or sell any securities, nor does it form the basis for any contract or commitment whatsoever.


Agenda

2

1. Company Profile ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P3

2. Overview of Business Results ・・・・・・・・・・・・・・・・・・・・・・・・・ P8

3. Real Estate Market Conditions ・・・・・・・・・・・・・・・・・・・・・・・・Ｐ16

4. Real Estate Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ21

5. Hotel Market Conditions ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P26

6. Hotel Business ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P30

7. Capital Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Ｐ35


3

1. Company Profile


4

History

Sept. 1959 Daisho Fudosan Company, Limited founded

June 1972 Company name changed to Jowa Kosan Company, Limited

Mar. 2004 Group reorganized and Jowa Holdings Company, Limited launched. Transitioned to holding company structure

June 2009 Listed on 2nd Section, Tokyo Stock Exchange

Feb. 2011 Listed on 1st Section, Tokyo Stock Exchange

July 2015 Company name changed to UNIZO Holdings Company, Limited

Name UNIZO Holdings Company, Limited

Established September 1, 1959

Headquarters 2-10-9 Hatchobori, Chuo-ku, Tokyo

Capital Stock 32,062.88 million yen

Employees 402 (Group), 99 (Parent)

Representative Tetsuji Kosaki, President and CEO

Business Lineup

Real Estate Business (Office Leasing), Hotel Business

Shares Issued 34,220,700 shares

Unit of Trading 100 shares

Shareholders 32,823

Credit Rating JCR long-term senior credit rating BBB+ (stable)

(Announced on October 30, 2017)

Major Shareholders

Shares Held (1,000 shares)

Ownership Percentage

The Kyoritsu Co., Ltd. 1,476 4.31%

The Master Trust Bank of Japan, Ltd. (Trust Account) 1,415 4.14%

NIPPON STEEL KOWA REAL ESTATE CO., LTD. 1,383 4.04%

NITTO BOSEKI CO., LTD. 1,301 3.80%

SUGA Co., Ltd. 1,136 3.32%

Japan Trustee Services Bank, Ltd. (Trust Account No.9) 1,090 3.19%

Japan Trustee Services Bank, Ltd. (Trust Account) 957 2.80%

IBJ Leasing Company, Limited 883 2.58%

TOKO ELECTRICAL CONSTRUCTION CO., LTD. 640 1.87%

Japan Trustee Services Bank, Ltd. (Trust Account No.5) 553 1.62%

(as of September 30, 2018)

1. Company Profile

1-1 Company Profile


14,934 (+14.8%)

21,924 (+46.8%)

27,841 (+27.0%)

33,163 (+19.1%)

39,586 (+19.4%)

52,462 (+32.5%)

56,500 (+7.7%)

0

10,000

20,000

30,000

40,000

50,000

60,000

2013/3(comparative information)





2018/3(results)

2019/3(forecast)

Continued increase in revenue from operations

5

*

1. Company Profile

1-2 Change in Operating Results (Revenue from Operations)

*Announced on Oct. 2, 2018

(Millions of Yen)


5,013 (+12.7%)

6,898 (+37.6%)

8,987 (+30.3%)

11,381 (+26.6%)

13,802 (+21.3%)

17,570 (+27.3%) 18,000 (+2.4%)

3,625 (+24.3%)

5,721(+57.6%)

7,514 (+31.4%)

9,276 (+23.4%)

10,497 (+13.2%)

11,500 (+9.6%)

12,300 (+6.9%)

2,137 (+35.6%)

3,074 (+43.8%)

4,318 (+40.5%)

7,015 (+62.5%) 6,621 (-5.6%)

8,488 (+28.2%)

10,100 (+19.0%)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000






2018/3(results)

2019/3(forecast)

Operating Income Ordinary Income Net Income(Millions of Yen)

*

6

Continued increase in income

1. Company Profile

1-3 Change in Operating Results (Income)



5,013

(+12.7％)

6,898

(+37.6％)

8,987

(+30.3％)

11,381

(+26.6％)

13,802

(+21.3％)

17,570 (+27.3%)

8,382 (+43.7%)

9,762 (+16.5%)

2,189

(+27.0％)

3,674

(+67.8％)

4,915

(+33.8％)

6,866

(+39.7％)

8,207

(+19.5％)

10,776 (+31.3%)

4,953 (+34.1%)

6,011 (+21.4%)

7,203

(+16.7％)

10,573

(+46.8％)

13,902

(+31.5％)

18,248

(+31.3％)

22,009

(+20.6％)

28,347 (+28.8%)

13,336 (+40.0%)

15,773 (+18.3%)

0

5,000

10,000

15,000

20,000

25,000

30,000

2013/3(comparativeinformation)





2018/3(results)

2018/3 1H(results)

2019/3 1H(results)

Operating Income Depreciation Expense

*EBITDA ＝ Operating Income + Depreciation and Amortization

(Millions of Yen)

7

EBITDA*

Operating income has increased, and together with growth in depreciation expense, EBITDA

has increased

1. Company Profile

1-4 Change in Operating Results (EBITDA)


8

2. Overview of Business Results


(Millions of Yen)

29,191 4,571 +18.6% 24,619 29,200

9,762 1,380 +16.5% 8,382 9,700

6,689 841 +14.4% 5,848 6,600

2,705 2,145 +383.0% 560

6,375 2,265 +55.1% 4,110 6,300

Ordinary income

Six months ended

Sept. 30, 2017

Six months ending

Sept. 30, 2018

(2017/4-9)

Results (b)

(2018/4-9)

Results forecast*

Six months ended Sept. 30, 2018

Revenue from

operations

Operating

income

(2018/4-9)

Results (a)

Percentage change

(c) / (b)

Fiscal year ending

Mar. 31, 2019

Results forecast*

(Assumptions)

1. JPY interest rates in Oct. 2018-Mar. 2019 period: flat

2. USD interest rates in Oct. 2018-Mar. 2019 period: +0.5%

3. FX rate in Oct. 2018-Mar. 2019 period: JPY/USD 110

Extraordinary

income (loss)

56,500

18,000

12,300

10,100Net income attributable

to owners of the parent

company

Change

(a) - (b) = (c)

Achieved year-on-year increase in revenue and income

9


Revenue from operations +18.6% (year-on-year), operating income +16.5% (year-on-year),

Ordinary income +14.4% (year-on-year), net income +55.1% (year-on-year)


2-1 Consolidated Statement of Income for the Six Months Ended Sept. 30, 2018 (Apr. 2018 – Sep. 2018)


Unless there is a change in the business environment, for the time being, no capital raising

via new-share issuance by public offering and assets to be acquired within extent of cash

inflows from investing activities

10


2-2 Revision in Plan for New Investments in the Fiscal Year Ending March 31, 2019

In current business environment, difficult to expand assets via new investments, thus plan

for new investments revised

Portfolio will be managed mainly through capital recycling

Apr.-Sept.

Results

12,465Real Estate (Japan) 7,700 2,734 15,000

Real Estate (overseas) 10,000 - 50,000Hotel 14,600 9,731 15,000

New investments 80,00032,300

Fiscal year ending

Mar. 31, 2019

Original forecast

Fiscal year ending

Mar. 31, 2019

Revised forecast*

(Millions of Yen)



7,809

8,908

0

2,000

4,000

6,000

8,000

10,000

12,000

Six months endedSept. 30, 2017 (2017/4-9)


Operating Income

19,786

22,830

0

5,000

10,000

15,000

20,000



Revenue from Operations

+15.4％

11

+14.1％

Revenue and income increased in real estate business

In Japan and overseas, properties acquired in the fiscal year ended March 31, 2018 made full-year contributions and intensive efforts

were made in leasing vacant space and increasing rents; revenue from operations increased (+15.4% year-on-year); operating

income also increased (+14.1% year-on-year).

(As of Sept. 30, 2018) *Average of all company-owned properties, including those newly acquired by Sept. 30, 2018

Average vacancy rate: Japan 0.3%, Overseas 8.7%, Total 5.2%

Average rents: Japan 16,724 yen/month・tsubo, Overseas 51.38 USD/year ・sqft

(Millions of Yen) (Millions of Yen)


2-3 Results by Segment - Real Estate Business


1,062

1,217

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800



Operating Income

4,937

6,488

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000



Revenue from Operations

12

Revenue and income increased in hotel business

+31.4％

+14.6％

Even though occupancy rates and revenue per room at existing hotels weakened slightly, hotels opened in the fiscal years ending

March 31, 2018 and March 31, 2019 made contributions to revenue; revenue from operations increased (+31.4% year-on-year). Also,

even though preparation costs for new hotel openings were incurred and hotels opened in the fiscal year ending March 31, 2019 were

not yet profitable, hotels opened in the fiscal year ended March 31, 2018 made full-year contributions; operating income increased

(+14.6% year-on-year).

(Six months ended Sept. 30, 2018) *All UNIZO hotels, including newly opened locations

Occupancy rate: 73.0%, ADR: 9,407 yen, ratio of inbound guests: 29.0%

(Millions of Yen) (Millions of Yen)


2-4 Results by Segment - Hotel Business


(Millions of Yen)

March 31, 2018 September 30, 2018 Change

(b) (a) (a) - (b)

Cash and deposits 46,115 38,431 (7,683)While maintaining funds for new investments, loans

payable partially repaid

Total current assets 53,212 45,915 (7,297)

Property and equipment 657,947 669,680 11,732New investments and effects of a weaker Japanese

yen

Investments and other

assets17,300 18,181 881

Total fixed assets 685,254 696,481 11,226

738,467 742,397 3,929Total assets

Reason

13


2-5 Consolidated Balance Sheet - Assets


14


2-6 Consolidated Balance Sheet - Liabilities & Net Assets

(Millions of Yen)

March 31, 2018 September 30, 2018 Change

(b) (a) (a) - (b)

Interest-bearing debt*1 620,880 599,090 (21,790) Repayments of loans payable

Total liabilities 651,564 627,028 (24,535)

Capital stock 26,163 32,062 5,899

Capital surplus 26,078 31,978 5,899

Retained earnings 35,195 40,429 5,234Net income of \6,375 million, dividends paid of \1,140

million

Accumulated other

comprehensive income(747) 10,667 11,415

Total net assets 86,903 115,368 28,465

738,467 742,397 3,929

11.7% 15.5% + 3.8pt

177,324

Rental office bldgs. and

other properties for lease 113,769

Hotels & other (inc. golf course) 63,555

Unrealized gains*3

Reason

Equity ratio*2

Total liabilities and net assets

\11,798 million raised via public offering

*1 Interest-bearing debt: Short-term loans payable + Current portion of long-term loans payable + Long-term loans payable + Corporate bonds

*2 Equity ratio: Total equity ÷ Total assets

*3 Unrealized gains: Difference between book value and appraised value for commercial real estate as of March 31, 2018. Calculation basis: Rental office buildings and other properties for lease,

self-operated hotels (and a golf course).


(Millions of Yen)

Six months ended

Sept. 30, 2017

(2017/4-9)

Six months ended

Sept. 30, 2018

(2018/4-9)Reason

Cash flows from operating activities 14,760 6,363

Income before income taxes 6,409 9,395

Depreciation and amortization 4,953 6,011

Increase (decrease) in security and

guarantee deposits received from tenants816 (2,831)

Income taxes paid (1,295) (2,956)

Other, net 4,018 (10)

Cash flows from investing activities (64,190) 5,931

Purchases of property and equipment (69,874) (13,451)

Proceeds from sales of property and

equipment5,385 17,996

Cash flows from financing activities 80,005 (23,547)

Net increase (decrease) in short-term loans

payable(12,924) 230

Proceeds from long-term loans payable 89,673 27,215

Repayment of long-term loans payable (36,866) (61,576)

Proceeds from issuance of corporate bonds 29,849 -

Proceeds from issuance of common stock 11,224 11,724

Dividends paid (950) (1,140)

443 3,568

31,019 (7,683)

40,402 46,115

71,584 38,431

(Reference)

9,064 12,386Net income + Depreciation

Effects of exchange rate changes on cash and

cash equivalents

Net increase (decrease) in cash and cash

equivalents

Cash and cash equivalents at beginning of the

period

Cash and cash equivalents at the end of the period

Acquisition and sale of property and equipment in

step with capital recycling efforts

15


2-7 Consolidated Statement of Cash Flows


16

3. Real Estate Market Conditions


19,754 19,998 19,310

17,954

17,577

17,844

19,406

21,998 22,186

18,978

17,585 16,932 16,572 16,207

16,95317,692

18,54019,173

20,108

3.2

4.0

7.4

8.1

6.1

4.2

2.9 2.7

4.7

8.1

8.9 9.0 8.7

7.3

5.5

4.0

3.6

3.1 2.6

0

1

2

3

4

5

6

7

8

9

0

5,000

10,000

15,000

20,000

25,000

2000/12 2001/12 2002/12 2003/12 2004/12 2005/12 2006/12 2007/12 2008/12 2009/12 2010/12 2011/12 2012/12 2013/12 2014/12 2015/12 2016/12 2017/12 2018/6

Avg. Asking Rent

Avg. Vaqcancy Rate

17

Vacancy rates decline even further, supply-demand balance continues to improve;

upward trend in rents continues


3-1 Office Market Conditions in Tokyo’s 5 Central Wards (Avg. Asking Rent and Avg. Vacancy Rate)

(Yen per month per tsubo)

Source: Miki Shoji Co., Ltd. * Tokyo’s five central wards: Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward, Shibuya Ward Average asking rent: Average asking monthly rent per tsubo (3.3 m2)

(%) Office Market Conditions in Tokyo’s 5 Central Wards

(Avg. Asking Rent, Avg. Vacancy Rate)


56 55

83

100 108 104

114 118

183

92

119

74

99

36

72

91

125

216

121

77

154

119

65

86 85

117

175

58

87

109 97

69

146

99

168

5242

0

50

100

150

200

Completed Properties

Properties Under Planning and Construction

18

Change in Supply of Large Office Buildings in the 23 Wards of Tokyo

Historical

average supply

1,020,000m2/year*

Supply in 2018 and 2020 expected to be large


3-2 Change in Supply of Large Office Buildings in the 23 Wards of Tokyo

Source: Mori Building Co., Ltd. (Jan.-Feb. 2018 survey, office buildings in Tokyo 23 wards

with a total floor area of more than 10,000 m2)

*Historical average supply from 1986 to 2017 (32 years)

(10,000m2)

(Calendar year)


Source: Jones Lang Lasalle (JLL)

19

43.8

53.0

70.1 72.1

55.2 53.3

57.4

61.2

64.1

67.6

71.5

73.0 75.5 75.1 75.3

7.1

6.1

7.1

10.2

13.1

11.9

10.4

11.2

11.1

9.5 9.6

10.4 8.8 8.5

8.1

0

2

4

6

8

10

12

14

0

10

20

30

40

50

60

70

80

2005/12 2006/12 2007/12 2008/12 2009/12 2010/12 2011/12 2012/12 2013/12 2014/12 2015/12 2016/12 2017/12 2018/3 2018/6

Avg. Asking Rent

Avg. Vacancy Rate

（US$/sqft/year）

*JLL has revised its calculation methods, and data above for 2017/12 onward

reflects this change

Recently, supply-demand balance improvement is continuing, but pace of

increase in rents is slowing

* * *


3-3 Office Market Conditions in Manhattan, New York (Avg. Asking Rent and Avg. Vacancy Rate)

(%) Office Market Conditions in Manhattan, New York



20

42.5

45.6

49.9 51.2

47.6 50.4

52.2 52.8

53.0 52.7

54.7 55.5

59.5 60.0 60.1

7.5

6.7

7.7

8.9

13.6

12.2

11.0

11.8

12.2 12.4

11.9 12.0 12.0

11.0 11.1

0

2

4

6

8

10

12

14

16

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0 Avg. Asking Rent

Avg. Vacancy Rate

（US$/sqft/year）

Recently, supply-demand balance improvement is continuing, but pace of

increase in rents is slowing


3-4 Office Market Conditions in Washington D.C. (Avg. Asking Rent and Avg. Vacancy Rate)

(%) Office Market Conditions in Washington D.C.


Source: Jones Lang Lasalle (JLL)


21

4. Real Estate Business


37 84

131

263

389 389

81 106 162

205

256

280

311

311 281

81 106

162

242

340

411

574

701 671

0

100

200

300

400

500

600

700

2011/3 2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2018/9

Rentable Area (Japan)

Renable Area (US)

Rentable Area

(Thousand m2) Rentable Area of UNIZO properties

22

(2018/9)

Tenants

in Japan

665

Tenants

in US

346

Total

Number of

Tenants

1,011

7,224 thousand

sqft

(3,030 thousand

sqft)

(4,193 thousand

sqft)

7,548 thousand

sqft

(3,357 thousand

sqft)

(4,191 thousand

sqft)

6,185 thousand

sqft

(3,354 thousand

sqft)

(2,831 thousand

sqft)

4,428 thousand

sqft

(3,017 thousand

sqft)

(1,410 thousand

sqft)

3,669 thousand

sqft

(2,762 thousand

sqft)

(907 thousand

sqft)

2,613 thousand

sqft

(2,212 thousand

sqft)

(400 thousand

sqft)

Through continued capital recycling efforts, executed investments in

prime income-generating properties and sales of properties


4-1 Rentable Area of UNIZO Properties


23

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

1 UNIZO Yaesu Building Chuo Ward, Tokyo 22,692 244,254 Oct. 1967

2 UNIZO Yaesu 2-Chome Building Chuo Ward, Tokyo 2,421 26,063 Dec. 1993

3 UNIZO Edobashi Building Chuo Ward, Tokyo 5,695 61,308 Dec. 1986

4 UNIZO Kodemmacho Building Chuo Ward, Tokyo 3,707 39,907 Apr. 1983

5 UNIZO Suitengu Building Chuo Ward, Tokyo 3,374 36,327 Oct. 1992

6 UNIZO Horidome 2-Chome Building Chuo Ward, Tokyo 9,977 107,395 Nov. 1966

7 UNIZO Kakigaracho 1-Chome Building Chuo Ward, Tokyo 1,619 17,433 Aug. 1991

8 UNIZO Nihonbashihoncho 1-Chome

Building Chuo Ward, Tokyo 1,562 16,818 Feb. 1999

9 Morita Building Chuo Ward, Tokyo 4,542 48,898 Dec. 1989

10 UNIZO Nihonbashi Tomizawacho

Building Chuo Ward, Tokyo 2,303 24,792 Apr. 1988

11 UNIZO Nihonbashihoncho 3-Chome

Building Chuo Ward, Tokyo 3,262 35,118 Feb. 1974

12 UNIZO Hatchobori Building Chuo Ward, Tokyo 4,819 51,881 Mar. 1993

13 UNIZO Kakigaracho Kitajima Building Chuo Ward, Tokyo 1,837 19,781 Nov. 1992

14 UNIZO Ningyocho 3-Chome Building Chuo Ward, Tokyo 1,933 20,815 Apr. 1989

15 UNIZO Nihonbashi Tomizawacho

Yowa Building Chuo Ward, Tokyo 1,490 16,044 Mar. 1986

16 UNIZO Ningyocho Forest Building Chuo Ward, Tokyo 2,395 25,787 Jan. 1989

17 UNIZO Nihonbashi Hisamatsucho

Building Chuo Ward, Tokyo 1,668 17,954 June 1988

18 UNIZO Ningyocho First Building Chuo Ward, Tokyo 3,586 38,602 May 1993

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

19 UNIZO Shinkawa 1-Chome Building Chuo Ward, Tokyo 1,543 16,614 Dec. 1989

20 UNIZO Higashinihonbashi Building Chuo Ward, Tokyo 2,631 28,321 Apr. 1991

21 UNIZO Horidomecho 1-Chome Building Chuo Ward, Tokyo 1,676 18,041 Feb. 1988

22 UNIZO Hisamatsucho Kiyosubashidori

Building Chuo Ward, Tokyo 4,115 44,296 July 1989

23 Daisan Sakurabashi Building Chuo Ward, Tokyo 8,855 95,316 Sept. 1992

24 UNIZO Higashinihonbashi 1-Chome

Building Chuo Ward, Tokyo 2,175 23,413 Sept. 1987

25 UNIZO Shinkawa Eitaidori Building Chuo Ward, Tokyo 4,031 43,397 Sept. 1987

26 UNIZO Iwamotocho 2-Chome Building Chiyoda Ward,

Tokyo 1,935 20,834 Sept. 1991

27 Resona Kudan Building Chiyoda Ward,

Tokyo 3,202 34,467 Aug. 1984


Tokyo 4,037 43,455 Apr. 1983

29 UNIZO Ochanomizu Building Chiyoda Ward,

Tokyo 1,878 20,216 Sept. 1988

30 UNIZO Iwamotocho Building Chiyoda Ward,

Tokyo 2,877 30,972 Oct. 1986

31 Kojimachi-odori Building Chiyoda Ward,

Tokyo 15,015 161,624 Jan. 2012

32 UNIZO Higashikanda 1-Chome

Building

Chiyoda Ward,

Tokyo 5,474 58,928 Jan. 1994

33 UNIZO Kandaogawamachi 3-Chome

Building

Chiyoda Ward,

Tokyo 2,023 21,781 Jan. 2010

34 UNIZO Kudankita 1-Chome Building Chiyoda Ward,

Tokyo 1,748 18,816 Feb. 1993

35 UNIZO Kandanishi Fukudacho Building Chiyoda Ward,

Tokyo 1,698 18,278 Feb. 1996

36 UNIZO Iwamotocho Sakae Building Chiyoda Ward,

Tokyo 577 6,220 Aug. 1992

*1 Names of properties above are as of Sept. 30, 2018. *2 Rentable area is rounded down to the nearest whole number.

Total of 101 buildings, rentable area of 671,163m2; 7,224,351sqft (as of Sept. 30, 2018)


4-2 Company-Owned Properties (1)


24

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

55 UNIZO Kagurazaka Building Shinjuku Ward,

Tokyo 2,366 25,468 Mar. 1992

56 UNIZO Takadanobaba Building Shinjuku Ward,

Tokyo 1,160 12,486 Oct. 1991

57 UNIZO ebisu422 Shibuya Ward, Tokyo 1,217 13,109 Mar. 1993

58 sarugaku Shibuya Ward, Tokyo 839 9,041 Sept. 2007

59 UNIZO Harajuku Building Shibuya Ward, Tokyo 827 8,902 June 1998

60 Yanase Shibuya Building Shibuya Ward, Tokyo 4,223 45,458 Oct. 1988

61 UNIZO Nishishinjuku Building Shibuya Ward, Tokyo 883 9,506 Nov. 2007

62 UNIZO Yoyogi 1-Chome Building Shibuya Ward, Tokyo 1,140 12,280 Nov. 1988

63 UNIZO Hatagaya 2-Chome Building Shibuya Ward, Tokyo 1,957 21,065 June 1991

64 UNIZO Hatsudai Building Shibuya Ward, Tokyo 1,343 14,465 Feb. 1992

65 UNIZO Hongo 4-Chome Building Bunkyo Ward, Tokyo 2,723 29,310 Oct. 1987

66 UNIZO Koishikawa Building Bunkyo Ward, Tokyo 2,162 23,278 Oct. 1991

67 UNIZO Edogawabashi Building Bunkyo Ward, Tokyo 3,472 37,379 Oct. 1992

68 UNIZO Koishikawa Urban Building Bunkyo Ward, Tokyo 2,410 25,942 July 1987

69 UNIZO Otowa 1-Chome Building Bunkyo Ward, Tokyo 4,373 47,080 Apr. 2008

70 UNIZO Hongo 1-Chome Building Bunkyo Ward, Tokyo 4,467 48,092 Dec. 1987

71 UNIZO Hongo 2-Chome Building Bunkyo Ward, Tokyo 1,091 11,753 Feb. 1991

72 UNIZO Myogadani Building Bunkyo Ward, Tokyo 7,460 80,303 July 1972/

Feb. 1979

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

37 UNIZO Suidobashi Building Chiyoda Ward,

Tokyo 1,958 21,084 Aug. 1992

38 UNIZO Kandakajicho 3-Chome

Building

Chiyoda Ward,

Tokyo 2,162 23,279 Feb. 1991

39 UNIZO Uchikanda 1-Chome Building Chiyoda Ward,

Tokyo 1,237 13,315 Feb. 2008

40 UNIZO Iwamotocho 3-Chome Building

South Annex

Chiyoda Ward,

Tokyo 1,556 16,751 July 1987

41 UNIZO Higashikanda 3-Chome

Building

Chiyoda Ward,

Tokyo 1,389 14,957 Oct. 1988

42 UNIZO Kandasudacho 2-Chome

Building

Chiyoda Ward,

Tokyo 1,154 12,422 Mar. 1993


Tokyo 1,728 18,608 Apr. 1983

44 UNIZO Shibadaimon 2-Chome Building Minato Ward, Tokyo 4,844 52,148 Apr. 1987

45 UNIZO Nogizaka Building Minato Ward, Tokyo 2,175 23,421 May 1983

46 Resona Shimbashi Building Minato Ward, Tokyo 2,850 30,680 Sept. 1978

47 UNIZO Shiba 2-Chome Building Minato Ward, Tokyo 2,225 23,957 Dec. 1988

48 UNIZO Shiba 4-Chome Building Minato Ward, Tokyo 4,635 49,895 July 1990

49 UNIZO Nishishimbashi 3-Chome

Building Minato Ward, Tokyo 2,696 29,023 Feb. 1986

50 UNIZO Hamamatsucho 1-Chome

Building Minato Ward, Tokyo 857 9,229 July 1986

51 UNIZO Oi 4-Chome Building Shinagawa Ward,

Tokyo 1,940 20,882 May 1993

52 UNIZO Omori Building Shinagawa Ward,

Tokyo 1,479 15,920 Mar. 1990

53 UNIZO Takadanobaba Kanzan

Building

Shinjuku Ward,

Tokyo 3,177 34,205 July 1993

54 UNIZO Takadanobaba 4-Chome

Building

Shinjuku Ward,

Tokyo 3,026 32,572 Mar. 1988






25

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

87 440 Ninth Avenue*3 Manhattan,

New York City, USA 37,264 401,117 1927

88 321 West 44th Street Manhattan,

New York City, USA 22,657 243,881 1928

89 40 West 25th Street Manhattan,

New York City, USA 12,655 136,226 1913

90 24-28 West 25th Street Manhattan,

New York City, USA 12,371 133,170 1911

91 370 Lexington Avenue*3 Manhattan,

New York City, USA 29,247 314,816 1928

92 685 Third Avenue Manhattan,

New York City, USA 60,478 650,988 1960/1975

93 1201 Connecticut Avenue Washington D.C., USA 17,435 187,678 1940

94 50 F Street Washington D.C., USA 19,668 211,715 1985

95 820 First Street Washington D.C., USA 27,103 291,741 1990

96 1100 First Street Washington D.C., USA 32,420 348,967 2009

97 1030 15th Street Washington D.C., USA 30,783 331,348 1964/2008

98 425 Third Street Washington D.C., USA 21,992 236,727 2007

99 1325 G Street Washington D.C., USA 28,298 304,601 1969

100 1341 G Street Washington D.C., USA 12,110 130,352 1903

101 1111 19th Street Washington D.C., USA 25,124 270,434 1979

Name*1 Location

Rentable

Area

(m2)*2

Rentable

Area

(sqft)*2

Date of

Completion

73 Ueno Suzunoya Honten Building Taito Ward, Tokyo 6,800 73,197 Mar. 1990

74 Ueno Toso Building Taito Ward, Tokyo 2,417 26,018 Aug. 1981

75 UNIZO Suehirocho Building Taito Ward, Tokyo 2,509 27,013 Mar. 1984

76 UNIZO Asakusabashi 4-Chome

Building Taito Ward, Tokyo 2,478 26,673 Sept. 1986

77 UNIZO Kitaueno 2-Chome Building Taito Ward, Tokyo 3,551 38,229 May 1992

78 UNIZO Nakaokachimachi Building Taito Ward, Tokyo 1,189 12,799 Dec. 1988

79 UNIZO Shimokitazawa Building Setagaya Ward,

Tokyo 1,246 13,420 June 2008

80 UNIZO Kamata 5-Chome Building Ota Ward, Tokyo 6,642 71,504 May 2010

81 UNIZO Kichijoji Building Musashino City,

Tokyo 1,686 18,150 Nov. 2007

82 UNIZO Naruse Building Machida City, Tokyo 3,428 36,909 Mar. 1993

83 UNIZO Tachikawa Building Tachikawa City,

Tokyo 4,879 52,524 Dec. 1992

84 UNIZO Center Minami Building Tsuzuki Ward,

Yokohama 4,728 50,894 Oct. 1998

85 UNIZO Musashikosugi Building Nakahara Ward,

Kawasaki 8,272 89,045 May 2008

86 UNIZO Wako Building Wako, Saitama Pref. 2,113 22,745 Oct. 1995



*3 Please see “Notice of Transfers of Fixed Assets at Consolidated Subsidiaries and

the Recording of Extraordinary Income (Loss)” release dated Oct. 2, 2018




26

5. Hotel Market Conditions


8,346 8,350

6,789

8,611

6,218

8,358

10,363

13,413

19,737

24,039

28,691

23,469

0

5,000

10,000

15,000

20,000

25,000

30,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Overseas Visitors to Japan*1 31,766

（Estimate）*2 (Thousands of people)

*1 Source: Japan National Tourism Organization (JNTO)

*2 2018 Estimate: 31,766 thousand people = Results for Jan.-Sept. 2018 + Results for Oct.-Dec. 2017 X 1.107 (Jan.-Sept. 2018 average growth rate: +10.7%)

Overseas visitors to Japan have increased significantly; likely to reach 31 million in 2018

27


5-1 Overseas Visitors to Japan

(Calendar year)

Results for

Jan.-Sept. 2018


551 800 966 1,380 2,285 2,506 2,868

15,437 16,178

17,435

18,049

18,845 18,342 18,283

15,989

16,979

18,402

19,430

21,130 20,849

21,152

0

5,000

10,000

15,000

20,000

25,000

2011 2012 2013 2014 2015 2016 2017

Guests at Business Hotels

Japanese Guests

Overseas Guests

(Calendar year)

+216

+177

+254

+147

-68 -83

-194

-156

-15

+108

-46

-107

-79 -80

+181

+250 +266

+207

+126

+54 +40

+1

+38

+103 +82

+138

+87

+114

-300

-200

-100

0

+100

+200

+300

YoY Change Quarterly from 2015 Onward

Japanese Guests

Overseas Guests

(Quarter)

Even though overseas guests continue to increase, Japanese guest numbers are

falling; overall guest numbers have plateaued

(10,000 Guests)

Japanese Guests

-0.59 million guests

Overseas Guests

+3.62 million guests

(10,000 Guests)

28


5-2 Market Conditions for Business Hotels (Japanese and Overseas Guests)

Source: Hotel and Tourism Statistics Survey, Ministry of Land, Infrastructure, Transport and Tourism


33

56

92

83 86

68

55

50

44

38

35

39

32

26 21

20

26

27

38 42

37 39

32 29

26 25

34

29

45

71

106 109

20

40

60

80

100

120(Thousands of rooms)

Continued increase in plans for new or expanded hotel capacity,

based on increased demand from overseas visitors to Japan

Confirmed Plans for New or Expanded Hotel Capacity (Thousands of rooms)

Source: HOTERES (Nationwide Hotel Openings) 29

*Business hotels, city hotels, resort hotels, ryokans operated by commercial operators (capsule hotels not included)

Confirmed Plans for New or Expanded Hotel* Capacity (confirmed plans as of Dec. each year [June for 2018] for hotels planned to open within a few years)


5-3 Plans for New or Expanded Hotel Capacity

(Calendar year)


30

6. Hotel Business


A hotel brand that enables sales in a high price range and maximizes profitability by

increasing added value through luxurious interiors, exteriors, facilities, and fixtures

A hotel brand that enables sales in a middle price range and maximizes profitability by

providing an ample level of highly convenient facilities and fixtures

A hotel brand that enables sales in a low price range and maximizes profitability by

strategically selecting the most necessary facilities and fixtures

Brand concept re-formulated to promote thorough development of the three brands

31

In order to achieve high profitability and continued growth, the UNIZO Group provides hotels with reasonably

priced rooms for business travelers and tourists, focusing on features that ensure a pleasant and convenient stay.


6-1 Brand Concept


8 10 10 11 12

14

20 23

5 6 6

11

16

11

9

3,225 3,502

3,752

4,915

7,121 7,456

7,708

1,544 1,938 1,938

2,439 2,663

3,035

4,326

5,022

8

15 16

17

23

30 31

32

0

5

10

15

20

25

30

35

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2012/3 2013/3 2014/3 2015/3 2016/3 2017/3 2018/3 2018/9

Hotels in Planning and Development State

Hotels in Operation

Rooms Including Those in Planning andDevelopment Stage

Rooms in Operation

(As of September 30, 2018)

Number of UNIZO Owned and Operated Hotels and Rooms

Number of hotels and rooms expanding steadily

32

(Rooms) (Hotels)


6-2 Number of UNIZO Owned and Operated Hotels and Rooms


*1 Opening period and number of rooms subject to change

*2 Provisional name

UNIZO INN Express

Accelerating nationwide development under three brands

Name Location Opened Rooms

1 HOTEL UNIZO Ginza-itchome Chuo Ward, Tokyo Jan. 2015 305

2 HOTEL UNIZO Ginza-nanachome Chuo Ward, Tokyo June 2016 224

3 HOTEL UNIZO Shimbashi Minato Ward, Tokyo Oct. 1978 233

4 HOTEL UNIZO Shibuya Shibuya Ward, Tokyo May 2010 186

5 HOTEL UNIZO Kyoto Shijo Karasuma Shimogyo Ward, Kyoto Oct. 2014 281

6 HOTEL UNIZO Osaka Umeda Kita Ward, Osaka Apr. 2018 220

7 HOTEL UNIZO Osaka Yodoyabashi Chuo Ward, Osaka Apr. 2009 333

8 HOTEL UNIZO Osaka Shinsaibashi Chuo Ward, Osaka Jan. 2018 186

9 HOTEL UNIZO Fukuoka Tenjin Chuo Ward, Fukuoka Oct. 2007 159

10 HOTEL UNIZO Hakataeki Hakataguchi Hakata Ward, Fukuoka Sept. 2018 217

11 HOTEL UNIZO Yokohamaeki-West Nishi Ward, Yokohama Nov. 2018*1 156*1

12 HOTEL UNIZO Nagoya Ekimae Nakamura Ward, Nagoya Summer 2019*1 210*1

13 HOTEL UNIZO Kyoto Karasuma Oike*2 Nakagyo Ward, Kyoto Summer 2020*1 312*1

Name Location Opening Rooms

1 UNIZO INN Express Morioka Moriokaeki-Nishi Dori,

Morioka Apr. 2018 259

2 UNIZO INN Express Kanazawa Ekimae Horikawa Shinmachi,

Kanazawa Apr. 2019*1 392*1

3 UNIZO INN Express Hakodate Ekimae Wakamatsucho,

Hakodate Spring 2019*1 277*1

4 UNIZO INN Express Kagoshima Tenmonkan Higashi Sengokucho,

Kagoshima Summer 2019*1 295*1

5 UNIZO INN Express Osaka Minami Honmachi*2 Chuo Ward, Osaka Spring 2021*1 503*1

Name Location Opened Rooms

1 UNIZO INN Sapporo Chuo Ward, Sapporo Jan. 2016 224

2 UNIZO INN Sendai Aoba Ward, Sendai Dec. 1973 250

3 UNIZO INN Asakusa Taito Ward, Tokyo July 1992 121

4 UNIZO INN Kandaeki-West Chiyoda Ward, Tokyo Aug. 2017 219

5 UNIZO INN Hatchobori Chuo Ward, Tokyo July 2003 148

6 UNIZO INN Kanazawa Hyakumangoku Dori Oyamamachi, Kanazawa Nov. 2017 220

7 UNIZO INN Nagoya Sakae Naka Ward, Nagoya May 2014 252

8 UNIZO INN Nagoya Sakae Higashi Naka Ward, Nagoya Feb. 1983 148

9 UNIZO INN Kyoto Kawaramachi Shijo Nakagyo Ward, Kyoto July 2017 242

10 UNIZO INN Shin-Osaka Yodogawa Ward, Osaka Mar. 2018 225

11 UNIZO INN Kobe Sannomiya Chuo Ward, Kobe Jan. 2018 199

12 UNIZO INN Hiroshima Naka Ward, Hiroshima Sept. 1985 171

13 UNIZO INN Osaka Kitahama Chuo Ward, Osaka Summer 2019*1 291*1

14 UNIZO INN Hiroshima Ekimae*2 Minami Ward, Hiroshima Spring 2020*1 250*1

33

HOTEL UNIZO UNIZO INN

: Planned hotels (as of Sept. 30, 2018)




6-3 UNIZO Group's Hotels (List)


34


6-4 UNIZO Group's Hotels (Map)


35

7. Capital Policy


Interim

Fiscal year ended March 31,

2016 35


2017 35


2018 40

Fiscal year ending March 31,

2019 40 40 (forecast) 80 (forecast)

40 80

40 75

35 70

Year-End Annual

36

1. Basic policy: Consistent and stable cash dividend payments by maintaining a balance

between stable cash dividends and robust shareholders’ equity

Cash dividends per share (¥)

2-1. Paid year-end dividend of ¥40 (¥80 for the full year) for the fiscal year ended March 31,

2018, up ¥5 year-on-year

2-2. For the fiscal year ending March 31, 2019, interim dividend to be ¥40; year-end

dividend forecast to be ¥40

7. Capital Policy

7-1 Dividends


37


For IR Information

38

UNIZO Holdings Company, Limited

Investor Relations Department

TEL : 03-3523-7536

FAX : 03-3523-7543

URL : https://www.unizo-hd.co.jp/en

investor briefing document for the six months ended ... · 1)* date of completion building building...

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