Investor Meeting Presentation
for the Three Months ended June 30, 2015
Leopalace21 Corporation
This document and reference materials may contain forward-looking statements, but please understand that actual results may differ significantly from these forecasts due to various factors.
-1-1. About Leopalace21
1-1 Business Model 4
1-2-1 Results Trend 5
1-2-2 Highlights of Results Trend 6
2. FY16/3 Q1 Results
2-1 Highlights of Results 8
2-2-1 Summary of Results (Sales & Gross Profit) 9 2-2-2 Summary of Results (Operating Profit & Net Income) 10 2-3 Results of Business Segments 11
3. FY16/3 Q1 Overview of Business (Leasing)
3-1 Overview of Leasing Business 13
3-2 Main Indicators 14
3-3-1 Indicator(Occupancy Rate) 15 3-3-2 Indicator(Occupancy by Group) 16 3-3-3 Indicator(Shares of Occupied Units by Group) 17 3-3-4 Indicator(Occupied Units by Industry) 18 3-3-5 Indicator(Foreign Tenants) 19 3-4-1 Acquiring Individual Tenants (Office Expansion) 20 3-4-2 Acquiring Individual Tenants (Room-Customize) 21 3-4-3 Acquiring Individual Tenants (Tenant Services) 22 3-4-4 Enhancing Property Value(Security Systems) 23
Contents
4. FY16/3 Q1 Overview of Business (Construction)
4-1 Overview of Construction Business 25
4-2 Main Indicators 26
4-3-1 Indicator(Orders and Sales) 27 4-3-2 Indicator(Offices and Apartment Completion by Area) 28 4-4-1 Example(Ideal Land Usage) 29
4-4-2 Example(New Brand) 30
4-4-3 Example(High-quality Apartments) 31 4-4-4 Example(Non-sound System) 32 4-4-5 Example(Elderly Care Facilities and Stores) 33 4-4-6 Example(Built-to-order homes) 34
5. FY16/3 Q1 Overview of Business (Others and New)
5-1 Others (Elderly Care Business) 36 5-2 Others (Domestic Hotels Business) 37
5-3 Others (Resort Business) 38
-2-Contents (cont.)
Appendix 1. Corporate Data
App.1-1 Corporate Profile 45
App.1-2-1 Quarter Comparison 46
App.1-2-2 Results of Leopalace21 Group 47 App.1-3-1 Indicator (Occupancy by Group) 48 App.1-3-2 Indicator (Foreign Tenants) 49 App.1-3-3 Indicator (Occupancy Rates by Building Age) 50 App.1-3-4 Indicator (Contract Type) 51 App.1-3-5 Indicator (Partners Offices and Contracts) 52 App.1-3-6 Indicator (Reserve for Apartment Vacancy Loss) 53 App.1-3-7 Indicator (“Azumi En” Area Disposition) 54 App.1-4-1 Finance (Balance Sheets) 55 App.1-4-2 Finance (Cash / Deposits and Interest-bearing Debt) 56
App.1-4-3 Finance (Cash Flows) 57
App.1-4-4 Finance (Shareholder Composition) 58
Appendix 2. Medium-Term Management Plan “EXPANDING VALUE” App.2-1 Business and Financial Strategies 60
App.2-2 Numerical Targets 61
App.2-3 Dividend Policy 62
Appendix 3. Market Trends
App.3-1 New Housing Starts 64
App.3-2 New Housing Starts (Leased Units) 65
App.3-3 Number of Households 66
-4-1-1
：
Business Model
Leopalace21 is a real estate company with two core businesses: a Construction Business which constructs apartments mainly for single persons, and a Leasing Business which manages these apartments. By strengthening the profitability of the Leasing Business, we are moving forward to establish a stock-based business model capable of generating stable profits.
Business model
1. Construction
Propose construction of apartments to land owners. 2. Master lease
Leopalace21 master leases the constructed apartments and pays a fixed rent to owners, regardless of vacancies. 3. Rent
Leopalace21 attracts tenants for leased apartments. 4. Rental income
Rent received from tenants.
⇒ Prior to the Lehman Collapse (2008), apartment construction
increased supported by rising occupancy demand from the booming secondary industry, especially in rural areas. Growth was led by the Construction Business.
⇒ After the Lehman Collapse, corporations laid off personnel,
and tenant leave increased in cities near corporate factories, deteriorating Leopalace21’s earnings.
⇒ Leopalace21 is shifting to a “Leasing Business-based”
business model, limiting apartment construction to areas of high occupancy demand and cutting leasing costs, as well as implementing property value enhancement measures such as installation of security systems.
Owners
Leopalace21
Leasing Construction
Tenants
2. Master Lease
1.
Construction 4.
Rental Income
277.1 302.7 334.5 342.3 356.6
380.3 383.5 388.7 399.3 411.0
316.1 327.5
359.1
237.0
107.8 62.9 53.3 63.1 61.3 86.0
38.3 42.7
39.5
40.9
19.9 16.2
17.2 19.1 22.5
28.0 631.6 672.9
733.2
620.3
484.3
459.4 454.2 471.0 483.1
525.0 76.0 71.4 50.1 -29.7 -23.6 4.5 7.4 13.6 14.7 19.5 -20 0 20 40 60 80 -200 0 200 400 600 800 FY07/3 (Actual) FY08/3 (Actual) FY09/3 (Actual) FY10/3 (Actual) FY11/3 (Actual) FY12/3 (Actual) FY13/3 (Actual) FY14/3 (Actual) FY15/3 (Actual) FY16/3 (Plan) Leasing Construction Others Operating profit
1-2-1
：
Results Trend
-5-Sales (Billion yen) Operating profit (Billion yen)
Results Trend
*Figures for managed units are as of the end of the final month for each fiscal year *Occupancy rate is the average value for each fiscal year
1-2-2
：
Highlights of Results Trend
-6-Highlights of Results Trend
Before the Lehman Collapse in 2008, Leopalace21’s main profit driver was the Construction Business. After the Lehman Collapse, we shifted our business model through structural reforms, generating profit from the Leasing Business.
(Billion yen) FY07/3 FY08/3 FY09/3 FY10/3 FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 Plan
Net sales 631.6 672.9 733.2 620.3 484.3 459.4 454.2 471.0 483.1 525.0
Leasing 277.1 302.7 334.5 342.3 356.6 380.3 383.5 388.7 399.3 411.0
Construction 316.1 327.5 359.1 237.0 107.8 62.9 53.3 63.1 61.3 86.0
Operating profit 76.0 71.4 50.1 -29.7 -23.6 4.5 7.4 13.6 14.7 19.5
Leasing 7.0 3.0 -1.5 -47.8 -30.0 5.2 8.6 15.5 20.5 21.5
Construction 74.6 73.2 70.1 29.7 11.9 4.3 2.7 2.9 0.2 3.5
Net income 37.3 0.3 9.9 -79.0 -40.8 1.5 13.3 15.2 14.5 16.0
Managed units*
(1,000 units) 38.8 442 506 551 571 556 546 549 554 564
Occupancy rate* 92.8% 92.4% 88.5% 82.3% 80.1% 81.2% 82.9% 84.6% 86.6% 88.0%
-8-2-1
：
Highlights of Results
(Million yen) FY15/3 Q1
Actual
FY16/3 Q1 Plan
FY16/3 Q1 Actual
FY16/3 Full-year Plan
YoY Compared
to Plan
Sales
115,626
121,100
124,524
+8,898
+3,424
525,000
Gross profit
17,051
19,700
20,558
+3,507
+858
88,500
% 14.7% 16.3% 16.5% +1.8p +0.2p 16.9%
SGAE
14,657
16,700
16,337
+1,680
-363
69,000
Operating profit
2,394
3,000
4,221
+1,826
+1,221
19,500
% 2.1% 2.5% 3.4% +1.3p +0.9p 3.7%
Recurring profit
2,175
2,600
3,918
+1,742
+1,318
18,000
% 1.9% 2.1% 3.1% +1.2p +1.0p 3.4%
Net income
2,048
2,000
3,303
+1,255
+1,303
16,000
Highlights of Results
Construction completions were ahead of schedule, which contributed to results exceeding the plan.
-9-2-2-1
：
Summary of Results
(Sales and Gross Profit)
FY15/3 FY16/3 FY15/3 FY16/3
Sales
+3.4 billion yen
compared to plan
Leasing
+1.0 billion yen
Construction
+2.4 billion yen
Gross profit
+0.8 billion yen
compared to plan
Leasing
+0.1 billion yen
Construction
+0.6 billion yen
(Billion yen) (Billion yen)
Q1 Actual 17.0 FY Actual 75.7 Q1 Plan 19.7 Q1 Actual 20.5 FY Plan 88.5 0 20 40 60 80 100
Sales
Gross Profit
-10-2-2-2
：
Summary of Results
(Operating Profit and Net Income)
Net income
+1.3 billion yen
compared to plan
Operating profit
+1.2 billion yen
compared to plan
Leasing
+0.5 billion yen
Construction
+0.5 billion yen
Operating Profit
Net Income
(Billion yen) (Billion yen)
FY15/3 FY16/3 FY15/3 FY16/3
Q1 Actual 2.3 FY Actual 14.7 Q1 Plan 3.0 Q1 Actual 4.2 FY Plan 19.5 0 5 10 15 20 25 Q1 Actual 2.0 FY Actual 14.5 Q1 Plan 2.0 Q1 Actual 3.3 FY Plan 16.0 0 5 10 15 20
-11-2-3
：
Results of Business Segments
Results of Business Segments
(Million yen) FY15/3 Q1
Actual FY16/3 Q1 Plan FY16/3 Q1 Actual FY16/3 Full-year Plan YoY Compared to Plan L e a s in g
Sales 98,530 101,000 102,008 +3,478 +1,008 411,000
Gross profit 14,267 16,000 16,191 +1,924 +191 66,000
Operating profit 4,090 5,000 5,544 +1,454 +544 21,500
C o n s t-ru c tio n
Sales 11,457 13,000 15,423 +3,966 +2,423 86,000
Gross profit 2,232 3,000 3,699 +1,466 +699 20,000
Operating profit -882 -1,000 -463 +418 +537 3,500
E ld e rly C a re
Sales 2,599 2,600 2,677 +78 +77 11,200
Gross profit 129 0 9 -120 +9 0
Operating profit -132 -300 -277 -145 +23 -1,400
H o te ls & R e s o rt
Sales 2,386 3,400 3,159 +773 -241 12,500
Gross profit 1,150 1,400 1,279 +128 -121 4,200
Operating profit 196 200 96 -99 -104 -500
O
th
e
rs
Sales 652 1,100 1,254 +602 +154 4,300
Gross profit 470 500 714 +243 +214 1,700
Operating profit 158 200 286 +128 +86 -100
Adjust-ments Operating profit -1,036 -1,100 -965 +70 +135 -3,500
-13-3-1
：
Overview of Leasing Business
Indicator
Occupancy Rate
Occupancy by Group
Shares of Occupied Units by Groups
Occupied Units by Industry
Foreign Tenants Measures
Office Expansion (for individuals)
Room Customize (for individuals)
Tenant Services (for individuals)
Security Systems (enhancing property value) Owners
Leopalace21
Leasing Construction
Tenants
Master Lease Rental
Income Rent
Leasing Business
-14-3-2
：
Main Indicators (Leasing)
Main Indicators (Leasing)
(Million yen) FY13/3
Actual
FY14/3 Actual
FY15/3 Actual
FY16/3 Plan
Sales
383,574
388,768
399,316
411,000
Gross profit
43,510
54,187
62,763
66,000
Operating profit
8,687
15,567
20,532
21,500
Units under management
(as of the end of FY)
546,204
548,912
554,948
564,000
Occupancy rate (average)
82.94%
84.58%
86.57%
88.00%
Direct offices
(as of the end of FY)
182
184
188
187*
Number of corporate sales
section(as of the end of FY)
46
49
59
48*
Number of employees
(non-consolidated, as of the end of FY)
2,661
2,829
2,989
3,140*
of which, sales employees
1,374
1,512
1,526
1,605*
-15-Occupancy Rate
Apr May Jun Q1
Avg. Jul Aug Sep Oct Nov Dec Jan Feb Mar Avg.
FY13/3 81.77 82.18 82.69 82.21 82.53 82.90 83.13 82.59 82.55 82.29 83.39 84.48 84.81 82.94
FY14/3 83.32 83.67 83.69 83.56 83.50 83.84 84.28 84.23 84.31 84.12 85.61 86.92 87.47 84.58
FY15/3 86.00 86.03 85.96 86.00 85.63 85.78 86.33 86.14 86.10 85.69 87.24 88.65 89.29 86.57
FY16/3 87.88 87.61 87.59 87.70 87.32 87.60
3-3-1
：
Indicator (Occupancy Rate)
Achievement of long-term occupancy and stable rates due to increase in long-term contracts. Average occupancy rate during April to June trended +1.7p year-on-year.
※
Target average occupancy rate for FY16/3: 88.0%
(Occupancy rate = Occupied units / Managed units, %) 80%
82% 84% 86% 88% 90%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
200 300 400 500 600
0 50 100 150 200 250 300
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun
FY09/3 FY10/3 FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY
16/3
Managed units (right axis)
Occupied units (right axis)
70% 80% 90% 100%
-16-Corporate tenants are steadily rising, but increasing the number of individual and student tenants still remains an issue. 1. Promote services attending occupant needs, 2. established “Educational Institution Sales Division” in October 2014.
3-3-2
：
Indicator (Occupancy by Group)
Occupancy rate
Occupied units by Group (Thousand units)
Managed and occupied units (Thousand units)
Occupancy rate Individuals (left axis)
Corporate (left axis)
Students (left axis)
*Figures are as of the end of each month *Reference of p.48
-17-Both occupied units and shares of corporate tenants are steadily increasing due to reinforcement of corporate sales.
3-3-3
：
Indicator (Shares of Occupied Units by Groups)
*Figures are as of the end of each quarter *Reference of p.48
Shares of Occupied Units by Groups
(Thousand units)
43.2% 44.1% 45.2% 47.3% 47.3% 47.4% 47.7%49.4% 49.5% 49.5% 49.4% 51.3% 51.5% 51.4% 51.1% 53.0% 53.3% 42.2% 41.6% 40.3% 38.8%39.3% 39.4% 38.9% 38.0% 38.2% 38.3% 38.3%
37.3% 37.4% 37.4% 37.6% 36.8% 36.8%
14.6% 14.3% 14.5% 13.9% 13.4% 13.3% 13.4% 12.6% 12.3% 12.2% 12.3% 11.4% 11.1% 11.1% 11.3% 10.2% 9.9%
462 464 452 464 460 458 450 463 458 461 461 480 473 476 474 495 488
0% 20% 40% 60% 80% 100%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
FY12/3 FY13/3 FY14/3 FY15/3 FY16/3
42,586 45,227 46,488 24,602 28,976 31,795
29,358 31,786 34,437 36,733 38,015 39,408 14,461 14,792 16,510 34,114 39,017 43,605 44,620 45,775 47,680 226,474 243,588 259,923
2013/6 2014/6 2015/6 43,942 43,472 46,277 47,510
24,632 24,570 29,105 32,022
28,869 30,218 32,995
35,169
35,601 37,380 39,188
40,878 13,445 14,710 14,956 16,635 32,223 35,096 39,783 44,398 40,527 43,262 43,968 45,965 219,239 228,708 246,272 262,577 0 50,000 100,000 150,000 200,000 250,000 300,000
2012/3 2013/3 2014/3 2015/3
-18-3-3-4
：
Indicator (Shares of Occupied Units by Industry)
Shares of Occupied Units by Industry
Leopalace21 will pursue strategies of “expanding major business connections” and “cultivating ‘low-use’ business connections” while diversifying industry types of corporate tenants. Approximately 79.4% (+0.1p compared to the previous fiscal year-end) of listed companies* in Japan use Leopalace21.
*Companies listed on the 1stand 2ndsections of the Tokyo Stock Exchange, regional stock exchanges, and emerging markets
(Units) Other Construction Food service Services Staffing, outsourcing Manufacturing Retail
YoY +4.3% +7.7% +6.6% YoY +7.6% +6.7%
-19-3-3-5
：
Indicator (Foreign Tenants)
Leased Units by Foreign Nationals (Excluding Corporate Contracts)
*Reference of p.49 (Units)
Foreign students are able to make lease contracts through our “LAM (Leopalace Alliance Members) school.” In addition to the openings of overseas offices, we are strengthening our support system for foreign customers after coming to Japan, such as distribution of our service guide, providing customer services via call centers, and holding group gatherings. Foreign customers make up 2.8% of total contracts (5.9% of individual and student contracts). Foreign nationals comprised of students 57% and working-class 43%.
Philippines Overseas
subsidiary Manila
Myanmar 1 office Yangon
Cambodia Overseas
subsidiary Phnom Penh
Thailand Overseas
subsidiary Bangkok
Vietnam Overseas
subsidiary Ho Chi Minh, Ha Noi
Taiwan 1 office Taipei
South
Korea 2 offices Busan, Seoul* China Overseas
subsidiary
Beijing, Dalian, Shanghai, Guangzhou
* Seoul Gangnam and Seoul Jongno unified to Seoul in April 2015
* Operations started in the Philippines (overseas subsidiary) in July 2017
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 J u n S e p D e c M a r J u n S e p D e c M a r J u n S e p D e c M a r J u n S e p D e c M a r J u n S e p D e c M a r J u n
FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY
16/3
China S. Korea Taiwan
Vietnam Thailand Other Southeast Asia
0 50 100 150 200 250 300 350 400
Jun SepDec Mar Jun SepDec Mar Jun SepDec Mar Jun SepDec Mar Jun SepDec Mar Jun
FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY 16/3 (Offices)
Direct Partners
-20-Leopalace21 will recruit tenants through direct offices including 7 overseas and franchise partners. Concerning Leopalace Partners, we will aim for “quality over quantity” and increase contracts through training. 2 direct offices opened during FY14/3 and 4 direct offices opened during FY15/3.
3-4-1
：
Acquiring Individual Tenants (Office Expansion)
Leasing Offices
*Reference of p.52
Direct offices 187 (-1)
of which, domestic 180 (±0)
of which, overseas 7 (-1)
Partners (franchise) 135 (-6)
Total offices 322 (-7)
As of June 30, 2015 (Figures in parentheses represent comparison to March 2015)
* Overseas locations operating foreign real estate brokerage services not included.
-21-3-4-2
：
Acquiring Individual Tenants (Room-Customize)
Custom wallpaper for free on 1 wall. Thumbtacks, shelves, and scribbling on the wall is OK
No cost for restoring room to original state
More than 100 types of wallpaper to choose from, including patterns
Male-to-female ratio of 50:50, higher percentage of females compared to overall occupancy (70:30)
“Room-Customize”
In May 2012, Leopalace21 has started “Room-Customize” as a strategy for acquiring individual tenants. 22,250 contracts have been acquired as of June 30, 2015, and we will continue to promote the image of “Customize = Leopalace.”
Contracts (Cumulative total)
(# of contracts)Contests
Room-Customize Contest
Occupants enter their room-customizing ideas
Wall-art Contest
Winners paint their work on the walls of our showroom
“Nagoya-like Rooms”
Students compete in creating rooms which best represent “Nagoya”
22,250
0 5,000 10,000 15,000 20,000 25,000
Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun FY13/3 FY14/3 FY15/3 FY
-22-3-4-3
：
Acquiring Individual Tenants (Tenant Services)
Services such as the “concierge service,” which satisfy tenants’ demands upon request, overturn common practices of the leasing apartment industry. Services are available through “MY PAGE,” an exclusive website for our tenants.
MY PAGE matches up the needs of individual and corporate occupants. Individuals are able to use services at a discount price, while
corporations recruit personnel.
Website for Tenants: “MY PAGE”
Tie-up with Corporate Clients
LEONET (Wireless LAN)
Use the web without the hassle of contracting with internet providers. Movies and shows are also available.Wireless LAN services started as of April 2014.
Commity space for land owners, occupants, students, and corporate clients.
Events held in Osaka, Sendai, and Shinjuku.
Community space “L+”
Individual occupants
Corporate clients
Discount services
Recruit personnel
Leopalace Center Shinjuku Hotel Leopalace Sendai
Leopalace Online Shopping
Shopping web site with many everyday-necessities. Products made specially for Leopalace are also available.
L-Club Off
FY15/3 Q1 Actual
FY16/3 Q1 Actual
Cumulative total
Orders
Units 11,260 8,113 256,609
Billion yen 2.31 1.66 43.65
Sales
Units 8,625 8,170 234,971
Billion yen 1.89 1.72 41.44 Security system
-23-3-4-4
：
Enhancing Property Value (Security Systems)
Orders and Sales of Security Systems
Security systems have been installed in 234,971 rooms as of June 30, 2015, equivalent to 42.2% of Leopalace21 apartments. Security cameras have been installed on 6,002 buildings, equivalent to 17.0%.
Business alliances with two major security companies The standard equipment includes fire sensing
systems and emergency systems, in addition to sensors that detect intruders
We anticipate an increase in the percentage of female tenants
We are seeking to meet demand for security in corporate housing
(Large companies emphasize security)
Problem detected
Call subscriber, alert emergency services if necessary 3. Dispatch 2. Assign
dispatch Control
Center Emergency
response
personnel dispatched
-25-4-1
：
Overview of Construction Business
Owners
Leopalace 21
Leasing Construction
Tenants
Master Lease Rental
Income Rent
Construction Business
Indicators
Orders and Sales
Offices and Sales by Area Construction Examples
Ideal Land Usage
New Brand
High-quality Apartments
Non-sound System
Elderly Care Facilities and Stores
-26-4-2
：
Main Indicators (Construction)
Main Indicators (Construction)
(Million yen) FY13/3
Actual
FY14/3 Actual
FY15/3 Actual
FY16/3 Plan
Sales
53,369
63,135
61,312
86,000
Gross profit
13,197
14,972
13,223
20,000
Operating profit
2,747
2,954
210
3,500
Orders
73,006
81,139
87,395
99,000
of which, apartments and
other buildings
55,174
67,446
84,679
99,000
of which, solar powersystems
17,831
13,693
2,715
0
Offices
(as of the and of FY)
52
54
60
62*
Number of employees
(non-consolidated, as of the end of FY)
1,374
1,506
1,638
1,821*
of which, sales personnel
256
363
418
518*
18.1 18.1 20.7 19.2 24.2
14.7 21.7 15.3 20.5
5.9
0.6 0.0 3.5
1.0
2.4
0.9
1.7
0.1
0 10 20 30
Q1 Q2 Q3 Q4
(Billion yen)
Apartments, etc. (including Morizou)
Solar power systems (excluding those generated by Leopalace21 Group)
-27-4-3-1
：
Indicator (Orders and Sales)
Gross Orders
(Billion yen)
FY14/3 FY15/3 FY16/3
Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year Q1 Full-year
Plan
Gross orders received
(Buildings*) 230 237 195 195 857 223 277 237 229 966 214 1,050 (Billion yen) 24.0 22.7 17.1 17.1 81.1 18.7 25.2 22.7 20.6 87.3 20.7 99.0
Orders outstanding
(Billion yen) 50.0 52.8 56.9 44.4 44.4 46.7 57.3 64.9 58.1 58.1 66.8 －
Sales
(Billion yen) 13.8 16.4 10.3 22.3 63.0 11.4 13.1 13.0 23.5 61.1 15.3 86.0
Construction orders for Q1 of FY16/3 trending +10.6% compared to last year. Starting this fiscal year, orders (0.5 billion yen) and sales (0.7 billion yen) from built-to-order homes of our subsidiary Morizou Co., Ltd. are included.
*Built-to-order homes of Morizou and solar power systems installed on existing apartments are not included in “Gross orders received (buildings)”
Orders and Sales (Including Solar Power Systems and Morizou Co., Ltd.)
Tokyo Metropolitan 85 Chubu 16 Kyushu, Okinawa 16 Tohoku 15 Kinki 13 Chugoku 9 Other 5
-28-4-3-2
：
Indicator (Offices and Apartment Completion by Area)
Total 62 offices
(As of June 2015)Tokyo metropolitan: 39 offices Tohoku: 3 offices (Sendai, Kohriyama) Chubu: 4 offices (Aichi) Kinki: 8 offices Chugoku: 2 offices
(Okayama, Hiroshima) Kyushu, Okinawa: 5 offices (Fukuoka, Okinawa) Shikoku: 0 offices Hokuriku, Koshinetsu: 0 offices Hokkaido: 0 offices North Kanto: 1 office (Mito) Osaka 5 offices
Kyoto 1 office Hyogo 2 offices
Tokyo 20 offices Kanagawa 8 offices Saitama 8 offices Chiba 3 offices
Construction Offices
Apartment Completion (FY16/3 Q1)
(Buildings)
Tokyo metropolitan area makes up 53.5%, and the three metropolitan areas (Tokyo, Kinki, and Chubu) make up 71.7% of apartment buildings built.
Leopalace21 will continue to place offices and operate in areas where high occupancy rates can be expected, specifically in the three metropolitan areas (Tokyo, Kinki, and Chubu).
-29-4-4-1
：
Example (Ideal Land Usage)
Elderly care facilities
Apartments
Matching business
between land owners and care facility operators,
addressing the increasing number
of seniors. Products addressing
needs of tenants. Apartments are bulk-leased and managed by Leopalace21.
Built-to-order homes
Stores
Construction of convenience stores, restaurances, and complex buildings with apartments on road-sides and near stations.
Construction of built-to-order homes and house with rooms for rent, in which rent income can be earned.
Leopalace21 proposes the optimal plan fit for the unique conditions of each land.
Proposals including mega-solar power plants and parking lots.
Others
Lang usage
proposions of
Leopalace21
4-4-2
：
Example (New Brand)
-30-“MIRANDA”
“CLEINO”
New apartment brands “MIRANDA” and “CLEINO” announced in May 2015. While maintaining basic installments such as security systems and the industry’s top class sound-insulation, the launch of two unique brands will strengthen competitiveness and renew brand image.
Concept is “plain.”
A “plain-type” apartment brand that fits and matches to each occupant’s needs and lifestyle.
Concept is “decorative.”
-31-4-4-3
：
Example (High-quality Apartments)
Announced in October 2013, “Arma-L tri-EL” is an apartment which integrates the characteristics of our two main products
“DUAL-L” and “Arma-L.” Also, we have announced “L-SECtion,” with installments improving the comfortability of the first floor.
Space is utilized effectively by a “bunk-bed”
(multifunctional bed) which unifies a bed and storage. Improved security and privacy by blocking the line of
sight from the outside with 1.7m “high-position balcony.” Exclusive area 25-31 m2
Three lofts of “DUAL-L” create a luxurious space equivalent to 1LDK
Like the “Arma-L” which was designed to address the needs of female tenants, a dresser is placed in the living space, as well as wall storage and counter-type kitchen.
Addressing Female Needs: “Arma-L tri-EL”
Improving First Floor Comfortability: “L-SECtion”
High-position balcony
-32-4-4-4
：
Example (“Non-sound System”)
From April 2013, Leopalace21 apartments are standardly equipped with sound-insulating “non-sound system,” including noise reduction walls, soundproof drains, and “non-sound floors” which reduce noise levels by two ranks compared to conventional wooden structures.
Upgraded Sound Insulation with “Non-sound System”
Sound-insulating
drainpipes
Installed as a measure against drainage noise. Decreases noise by 15 dB compared to conventional models, providing
environments similar to “libraries or midnight suburbs.”
Non-sound floor
Reduces noise from upper floors. Insulation improved two to three ranks compared to conventional models.
Sound-insulating
walls
Improved sound-insulation quality of walls, providing TLD-45 for wooden structures and TLD-50 for steel frame structures.
Down
15dB
Construction example Cross section Wooden
TLD-45
Wooden structures
Steel
TLD-50
Steel frame structures Wooden
V-model
Down
1/3
Wooden structures V-model (option)
Steel
Down
1/3
Steel frame structures
-33-FY15/3 Q1 Actual
FY16/3 Q1 Actual
Elderly care facilities
Orders
Buildings 3 4
Billion yen 1.09 1.13
Sales
Buildings 9 3
Billion yen 0.95 0.32
Stores
Orders
Buildings 5 2
Billion yen 0.14 0.19
Sales
Buildings 5 1
Billion yen 0.20 0.01
Elderly care facilities (Setagaya-ku, Tokyo)
Stores
（Osaka City, Osaka）
4-4-5
：
Example (Elderly Care Facilities and Stores)
Orders and Sales of Elderly Care Facilities and Stores
4-4-6
：
Example (Built-to-order homes)
-34-Luxury custom-built “Taiga”
Free design house built with top quality kiso-hinoki wood
In addition to the durability of kiso-hinoki wood, ventilation systems prevent deterioration Strong earthquake protection by placing structural control dampers in a balanced manner
Morizou Co., Ltd., a custom-home builder specializing in luxurious homes made with kiso-hinoki wood, has been subsidized as of March 2015.
-36-5-1
：
Others (Elderly Care Business)
Elderly Care Business
Elderly Care Business is positioned as a growth strategy area, planning to open 29 facilities in three years to a total of 90. 2 facilities opened during FY15/3 and 5 facilities will open during FY16/3. Occupancy rate of day-services decreased due to the start of operations on Sundays when we used to be closed.
(Million yen) FY15/3 Q1
Actual
FY16/3 Q1 Plan
FY16/3 Q1 Actual
FY16/3
Full-year Plan
YoY Compared
to Plan
E
ld
e
rly
C
a
re
Sales 2,599 2,600 2,677 +78 +77 11,200
Gross profit 129 0 9 -120 +9 0
Operating profit -132 -300 -277 -145 +23 -1,400
Occupancy rate (Day-service) 73.4% 70.0% 67.3% -6.1p -2.7p 71.7%
Occupancy rate (Short-stay) 96.7% 96.1% 94.5% -2.2p -1.6p 96.3%
Occupancy rate
(Private residential homes, etc.) 94.4% 93.0% 93.1% -1.3p +0.1p 93.7%
-37-5-2
：
Others (Domestic Hotels Business)
Domestic Hotels Business
Occupancy rates improved due to increase in usage by client companies of the leasing business. *Hotel Leopalace Yokkaichi (August 2014) and Hotel Leopalace Niigata (July 2015) sold.
Hotel Leopalace Sendai
Hotel Leopalace Sapporo
Hotel Leopalace Hakata
(Million yen) FY15/3 Q1
Actual
FY16/3 Q1 Plan
FY16/3 Q1 Actual
FY16/3 Full-year Plan
YoY Compared
to Plan
D
o
m
e
s
tic
H
o
te
ls
Sales 562 520 561 -1 +41 1,900
Operating profit -21 -40 -4 +17 +36 -100
Depreciation and amortization 84 73 75 -8 +5 200
Occupancy rate 76.4% 76.7% 77.5% +1.1p +0.8p 81.1%
Although tourists visiting Guam have not increased year-on-year, an increase in usage by leasing business tenants has
increased both occupancy rates and earnings. Usage by soldiers coming to Guam on exercises started from the end of August 2014.
-38-Resort Business (Leopalace Guam)
5-3
：
Others (Resort Business)
*Non-consolidated figures for Leopalace Guam *Q1 of Leopalace Guam is from January to March
Westin Resort Guam
Leopalace Resort Leopalace Resort Country Club
(Thousand U.S. dollars) FY2014/12
Q1 Actual
FY2015/12 Q1 Plan
FY2015/12 Q1 Actual
FY2015/12 Full-year
Plan
YoY Compared
to Plan
L
e
o
p
a
la
c
e
G
u
a
m
Sales $24,718 $26,400 $25,998 +$1,280 -$402 $88,200
Operating profit 5,331 4,100 3,343 -1,988 -757 2,400
Depreciation and amortization 3,555 3,600 3,619 +64 +19 14,600
Occupancy rate (Leopalace Resort) 85.3% 70.1% 70.8% -14.5p +0.7p 59.7%
0 5,000 10,000 15,000
FY14/3 Q1
Q2 Q3 Q4 FY15/3
Q1
Q2 Q3 Q4 FY16/3
Q1 FY12/3 Q2 FY12/3 Q4 FY13/3 Q2 FY13/3 Q4 FY14/3 Q2 FY14/3 Q4 FY15/3 Q2
Owner-invested Roof-lease (SPC) Roof-lease (Leopalace21 Group)
-39-*2.b.”Installments by Leopalace21 Group” are eliminated on a consolidated basis. (Reference of p.41)
-39-5-4-1
：
Others (Solar Power Systems)
Solar power installments started in March 2011. Solar power systems were installed on 12,771 buildings as of June 2015 (about 58% of buildings that can be installed).
Installments by Schemes
Schemes Start FY15/3 FY16/3 Q1
1. Solar power systems installed with apartment
owners’ burden Mar 2011 7,129 （89.1MW） 7,175 （89.9MW）
2. Roof-lease solar power systems Sep 2012 5,227 （83.3MW） 5,596 （88.9MW）
a. SPC and other tie-up installments Feb 2013 1,258 （24.6MW） 1,256 （24.5MW）
b. Installents by Leopalace21 Group
* Dec 2013 3,969
（58.7MW） 4,340 （64.4MW）
3.
Mega-solar power plants utilizing idle land Sep 2013 Tomisato,
Chiba （1.7MW）
Tomisato,
Chiba （1.7MW）
Total: 12,356 （172.4MW） 12,771 （178.8MW）
-40-5-4-2
：
Others (Solar Power Systems by Area)
Solar Power System Installations by Area
(as of June 30, 2015)(Buildings)
Solar power systems are not installed in snowy areas (Hokkaido and Tohoku), areas with volcanic ashes (Kagoshima), and areas on the seashore with risk of salt damage. A third of installments are in the Tokyo metropolitan area , where Leopalace21 apartments are abundant.
Total: 12,771
1,161 413
936
1,601
2,416 262
4,333 1,197
452
0 1,000 2,000 3,000 4,000 5,000
Kyushu, Okinawa Shikoku Chugoku Kinki Chubu Hokuriku, Koshinetsu Tokyo-metro North Kanto Tohoku
Owner-invested
-41-5-4-3
：
Others (Roof-lease Solar Power Systems)
Roof-lease Solar Power Systems by Leopalace21 Group
FY14/3 Actual
FY15/3 Actual
FY16/3 Q1
Actual Cumulative total
Buildings installed
1,114
2,855
371
4,340
Generating capacity
21.4 MW
37.2 MW
5.7 MW
64.4 MW
Buildings which started
generation
680
3,102
522
4,304
Sales from selling generated
power (Billion yen)
0.10
1.46
0.84
2.41
Generated power
2,700 MWh
36,600 MWh
22,000 MWh
61,000 MWh
* Includes Fukushima Pilot Project (67 buildings, 1.2 MW)* Sales from selling generated power is included in “Other Businesses” * Generated power corresponds to each period
¥14.6 billion of the funds raised through public offering (¥24.6 billion) used for installments of roof-lease solar power systems. In addition, roof-lease solar power business by our group company utilizing loans from banks is implemented. Total of 4,400
buildings scheduled to be installed by 1H of FY16/3.
Power Producer and Supplier Leopalace Energy
Leopalace Energy Corporation will supply the electricity generated by Leopalace Power Corporation on apartment rooftops to consumers.
In anticipation of the deregulation of electricity retail in 2016, we plan to supply electricity to our apartments.
Company Profile
Name Leopalace Energy Corporation Capital ¥20 million
Busan Dalian Beijing
Shanghai
Guangzhou
Taipei
Bangkok
Ho Chi Minh Phnom Penh Yangon
Introduce Japanese apartments
Foreign real estate brokerage
Both businesses Ha Noi
Manila Seoul
5-5-1
：
New Businesses (Leasing Business Overseas)
Leopalace21 will expand its leasing business overseas. In addition to introducing Japanese apartments to foreigners, we have started foreign real estate brokerage services in Southeast Asia targeting Japanese individuals and companies. Also, we have entered the Korean market through a leasing management venture with local enterprise. We have started operations in the Philippines as of July 2015, and plan to open a subsidiary in Indonesia during FY16/3.
Leasing Business Overseas
China Beijing, Dalian, Guangzhou, Shanghai South Korea Busan, Seoul*
Taiwan Taipei Thailand Bangkok
Vietnam Ho Chi Minh, Ha Noi Cambodia Phnom Penh
Myanmar Yangon Philippines Manila
Foreign offices, subsidiaries
South Korean JV “Woori & Leo PMC”
Established with South Korea’s largestresidential property management company Woori & Leo PMC will provide South Korea’s
first systematic leasing management services Full-scale operations started after the local law
enactment on February 2014, with 575 managed units as of June 30, 2015
Introduce Japanese apartments to foreigners
Foreign real estate brokerage targeting Japanese
individuals and companies
Traditional
In the future
0 40 80 120 160
'09 '10 '11 '12 '13 '14 '15
5-5-2
：
New Businesses (Overseas Business)
-43-Service Apartments
Acceptance of Foreign Technical Intern Trainees
In addition to introducing Japanese apartments to foreigners and foreign real estate brokerage services in Southeast Asia, we have started construction of service apartment properties. Also, in response to the shortage of construction labor supply, we have begun supporting the acceptance of technical intern trainees by our partnering contractors, in cooperation with the Technical Intern Training Program (TITP). In cooperation with TITP, we support the acceptance of Vietnamese intern trainees by our partnering contractors Trainees receive training in the Japanese language,
construction terminology, and practical construction skills, both in Vietnam and Japan
18 trainees accepted in partnering contractors as of July 2015
Service apartments for employees of Japanese companies sent overseas
First project in Cambodia (construction completion: January 2017; operation start: April 2017)
We are planning to construct service apartments in Vietnam and Myanmar, where there are similar demands
Exterior image (Cambodia) Showroom visits
Construction terminology training Practical construction training
18 Vietnamese technical intern trainees
Official Members of the Japanese Business Association of Cambodia*
Individuals and Other 16.73%
Business Corporations and Other Legal Entities
2.51% Foreign Corporations 50.65% Financial Institutions 25.01% Financial Instruments Business Operations (Securities Companies) 3.39% Treasury Stocks 1.71%
-45-App.1-1
：
Corporate Profile
Corporate Data
(as of June 30, 2015)Shareholder Composition
(as of March 31, 2015)Group Companies
Company Name Leopalace21 CorporationHead Office 2-54-11 Honcho, Nakano-ku, Tokyo TEL. +81-3-5350-0001 (Main Line) Established August 17, 1973
Paid-in Capital ¥75,282 million*1
President President and CEO Eisei Miyama
Operations
Construction, leasing and sales of apartments, condominiums, and residential housing; development and operation of resort facilities; hotel business; broadband business; and elderly care business, etc. Employees 7,759 (consolidated), 6,554 (non-consolidated) Authorized Shares 500,000,000
Outstanding Shares 267,443,915*1
Shareholders 39,197 (as of March 31, 2015)
*1: Increase due to public offering and private placement (overallotment)
H o te ls & R e so rt O th e r L e a si n g C o n st ru -ct io n
Woori & Leo PMC
Leasing management in South Korea
Leopalace21 (Thailand)
Real estate brokerage in Thailand Leopalace Leasing Corporate housing agent Leopalace21 Business Consulting (Shanghai) Tenant recruitment LEOPALACE21 VIETNAM
Real estate brokerage in Vietnam
Plaza Guarantee
Rent guarantee
Leopalace21 (Shanghai) Property Management
Real estate brokerage in Shanghai
Leopalace21 (Cambodia)
Real estate brokerage in Cambodia Leopalace Power Power generation Leopalace Guam Resort Business ASUKA SSI
Tenant contents insurance
Azu Life Care
Elderly care service
Leopalace Energy Power producer and supplier WING MATE Business travel management Leopalace Smile Special subsidiary Morizou Custom-built homes LEOPALACE21 PHILIPPINES INC.
-46-(Million yen)
Q1 Apr – Jun
Q2 Jul – Sep
Q3 Oct – Dec
Q4 Jan – Mar
FY15/3 Actual
FY16/3 Actual
FY15/3 Actual
FY16/3 Plan
FY15/3 Actual
FY16/3 Plan
FY15/3 Actual
FY16/3 Plan
Sales 115,626 124,524 117,411 131,900 117,718 127,000 132,432 145,000
Leasing 98,530 102,008 98,902 102,000 98,921 102,000 102,962 106,000
Construction 11,457 15,423 13,193 23,000 13,043 18,000 23,618 32,000
Elderly Care 2,599 2,677 2,676 2,700 2,702 2,900 2,629 3,000
Hotels & Resort 2,386 3,159 1,872 3,000 2,287 3,100 2,404 3,000
Others 652 1,254 766 1,200 763 1,000 817 1,000
Operating profit 2,394 4,221 3,693 5,000 3,457 3,700 5,217 7,800
Leasing 4,090 5,544 5,471 5,500 5,586 5,000 5,385 6,000
Construction -882 -463 -492 1,000 -480 0 2,065 3,500
Elderly Care -132 -277 -105 -400 -143 -300 -225 -400
Hotels & Resort 196 96 -326 -300 -529 -200 -629 -200
Others 158 286 104 0 18 0 -249 -300
App.1-2-1
：
Quarter Comparison
-47-App.1-2-2
：
Results of Leopalace21 Group
Results for Leopalace21 and Major Subsidiaries
(Million yen) FY15/3 Q1
Actual
FY16/3 Q1 Plan
FY16/3 Q1
Actual YoY Compared
to Plan
Leopalace21 Sales 116,026 118,000 121,521 +5,495 +3,521
OP 1,972 2,400 3,782 +1,809 +1,382
Leopalace Leasing Sales 394 400 489 +95 +89
OP -10 0 2 +13 +2
Plaza Guarantee Sales 867 800 834 -33 +34
OP 30 0 -63 -94 -63
Leopalace Guam Sales 2,521 3,000 3,097 +576 +97
OP 532 400 398 -133 -2
Leopalace Travel Sales 284 800 771 +486 -29
OP -3 0 -7 -3 -7
ASUKA SSI Sales 369 400 396 +26 -4
OP 124 100 96 -27 -4
Leopalace Power Sales 239 600 801 +562 +201
OP 11 0 174 +163 +174
Others & Exclusions
Sales -5,076 -3,023 -3,388 +1,687 -365
-48-FY14/3 FY15/3 FY16/3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Units under management 546,856 547,161 547,978 548,912 550,514 551,545 552,966 554,948 557,017
A. Occupied units 457,683 461,136 460,961 480,110 473,197 476,163 473,862 495,487 487,900
Occupancy rate (average) 83.6% 83.9% 84.2% 86.7%
FY84.6% 86.0% 85.9% 86.0%
88.4%
FY86.6% 87.7%
B. Corporate-occupied units 226,474 228,038 227,580 246,272 243,588 244,967 242,293 262,577 259,923
Corporate share (B / A) 49.5% 49.5% 49.4% 51.3% 51.5% 51.4% 51.1% 53.0% 53.3%
C. Individual-occupied units 175,057 176,782 176,503 179,036 176,885 178,186 178,228 182,142 179,748
Individual share (C / A) 38.2% 38.3% 38.3% 37.3% 37.4% 37.4% 37.6% 36.8% 36.8%
D. Student-occupied units 56,152 56,316 56,878 54,802 52,724 53,010 53,341 50,768 48,229
Students share (D / A) 12.3% 12.2% 12.3% 11.4% 11.1% 11.1% 11.3% 10.2% 9.9%
*Occupancy rate is the average value for each period (full-year or quarter)
*Figures for units under management and occupied units are as of the end of the final month for the relevant period
App.1-3-1
：
Indicator (Occupancy by Group)
-49-(Units)
FY14/3 FY15/3 FY16/3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
China 5,007 5,497 5,654 6,125 5,906 6,297 6,652 7,033 6,320
South Korea 1,441 1,415 1,384 1,298 1,272 1,293 1,325 1,336 1,322
Taiwan 621 642 651 658 613 618 659 747 706
Southeast Asia 915 1,195 1,458 1,833 2,018 2,326 2,571 2,859 2,750
of which,
Vietnam 268 499 723 1,059 1,231 1,496 1,717 1,995 1,886
of which,
Thailand 89 91 97 95 101 102 107 103 99
Others 1,651 1,769 1,845 2,013 1,993 2,133 2,213 2,391 2,388
Total 9,635 10,518 10,992 11,927 11,802 12,667 13,420 14,366 13,486
App.1-3-2
：
Indicator (Foreign Tenants)
Units Occupied by Foreign Tenants (Chintai
Contracts*)
*Figures are as of the end of the final month for the relevant period
93.3% 93.6%
87.7%
93.3% 92.2% 93.8% 92.0%
91.2%
97.7%
92.7%
93.0% 94.3% 91.3% 92.6% 92.9% 94.1% 92.8% 91.6% 94.4% 93.1%
91.1% 89.7% 88.9%
85.8% 89.0% 91.6% 88.6% 89.6% 86.8% 89.2%
70% 80% 90% 100%
Tokyo Saitama Kanagawa Chiba Tokyo Metro
Aichi Osaka Kyoto Hyogo 3-metro areas Under 3 years Under 5 years Total
-50-App.1-3-3
：
Indicator (Occupancy Rates by Building Age)
Occupancy Rates by Building Age
(as of June 30, 2015)Occupancy Rates by Area
(as of June 30, 2015)86.0% 96.9% 97.3% 92.5% 92.7% 89.9% 85.5% 81.4% 87.6%
0% 50% 100%
1 year 2 years 3 years Under 3 years
Under 5 years
5-10 years 10-15 years Over 15 years
-51-1. Chintai(General) Contract
• No deposit or brokerage fee
• Monthly payments
• Contracts for more than one year
2. Monthly Contract
• Equipped with basic furniture and appliances
• No utility cost • One-time payment
• Contracts starting from 30 days
App.1-3-4
：
Indicator (Contract Type)
Tenants by Contract Type
Same period last year
Two Types of Contracts
Due to promotion of long-term tenancies, shares of short-term “monthly contracts” have decreased.(Thousand units) 117 (32%) 108 (26%) 107 (24%) 104 (23%) 114
(24%) (20%)94 79 (17%)
68
(14%) (12%)58 66 (14%)
57 (12%) 254 306
336 357 365 370 384 412 438 407 431 372
414
442 462
478
464 463 480
495 473 488 0 50 100 150 200 250 300 350 400 450 500
'07/3 '08/3 '09/3 '10/3 '11/3 '12/3 '13/3 '14/3 '15/3 '14/6 '15/6
-52-Partner and Direct Offices, and Contracts by -52-Partners
FY14/3 FY15/3 FY16/3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Partner offices 179 172 167 164 152 149 143 141 135
Direct offices (domestic) 176 176 176 176 179 179 180 180 180
Total leasing offices 355 348 343 340 331 328 323 321 315
Contracts by Partners 8,204 8,392 7,972 10,516 6,736 7,079 6,748 9,065 6,317
Leasing Offices by Area
(as of June 30, 2015)Hokkaido Tohoku North
Kanto
Tokyo-metro
Hokuriku,
Koshinetsu Chubu Kinki Chugoku Shikoku
Kyushu, Okinawa
Partner offices 3 6 7 38 9 21 15 13 5 18
Direct offices
(domestic) 9 15 14 48 13 23 25 11 5 17
Total leasing
offices 12 21 21 86 22 44 40 24 10 35
App.1-3-5
：
Indicator (Partners Offices and Contracts)
-53-App.1-3-6
：
Indicator
(Reserve for Apartment Vacancy Loss)
Occupancy Rate
Reserve for Apartment Vacancy Loss
(Billion yen)
Reversal in the reserve for apartment vacancy loss during FY15/3 was ¥4.0 billion due to “profit improvement” and “passage of remaining periods.” (Forecast reversal for full-year was ¥3.3 billion). Forecast reversal for FY16/3 is ¥2.5 billion, and the reversal for FY16/3 Q1 was 0.3 billion yen.
FY13/3 Reversal ¥5.2 bil
(Billion yen, %)
Managed units (1,000 units)
FY15/3 FY16/3 Compared
to FY15/3 Q4 FY15/3 Q4 FY16/3 Q1 Diff.
Q1 Q2 Q3 Q4 Q1
Hokkaido 14 0.3 0.3 0.3 0.3 0.3 -0.05 79% 83% +3.6p
Tohoku 35 0.0 0.0 0.0 0.0 0.0 0.00 94% 94% -0.6p
North Kanto 40 1.0 0.9 0.7 0.6 0.6 -0.01 85% 83% -1.8p
Tokyo-metro 159 1.1 0.9 0.7 0.6 0.5 -0.09 92% 89% -3.4p
Hokuriku, Koshinetsu 41 1.2 1.0 0.8 0.5 0.5 -0.01 84% 85% +0.5p
Chubu 87 3.2 2.9 2.4 2.0 1.9 -0.15 86% 85% -1.0p
Kinki 79 1.0 0.8 0.7 0.7 0.6 -0.04 90% 87% -2.3p
Chugoku 38 0.1 0.1 0.1 0.0 0.0 0.00 91% 90% -1.5p
Shikoku 15 0.3 0.2 0.1 0.0 0.0 0.02 84% 83% -0.7p
Kyushu, Okinawa 49 0.1 0.1 0.1 0.1 0.1 0.00 91% 90% -0.8p
Total 557 8.7 7.8 6.4 5.2 4.9 -0.36 89.3% 87.6% -1.7p FY14/3 Reversal ¥4.5 bil FY15/3 Reversal ¥4.0 bil
-54-App.1-3-7
：
Indicator (“Azumi En” Area Disposition)
Elderly Care Facilities “Azumi En” Area Disposition
(63 as of June 30, 2015)Sekikawa Horigome Ota Tatebayashi Hanyu Kanuma Utsunomiya Yaita Shimodate Yuki Koga Kogachuou Iwai Nogi Shinkoga Tsuchiura Kokinu Yanagisawa Showa Minamisakurai Ina Kitamoto Gyoda Higashimatsuyama Honjyo Chichibu Ome Hirasawa Tatemachi Nakano Yamakita Tsurumaki Tsukuihama Ichihara Ichihara Oyumi Katsuragi Wakaba Ino Takaoka Nakazawa Namikicho Misaki Takatsukashinden Tokiwadaira Sakasai Abiko Takamihara Komakidai Souka Irumagawa Sayama Komuro Mizuho Mihashi Goseki Hanasakinooka Ageo Yoshikawa Gamou Yashio Gunma Saitama Tokyo Kanagawa Chiba Ibaraki
Tochigi (Number of facilities)
T o kyo K a n a g a w a C h ib a S a ita m a T o ch ig i Ib a ra ki G u n m a T o ta l
Facilities which include elderly homes with nursing care services
1 1 1 2 2 7
Facilities which include
residential style elderly homes 1 5 2 3 2 1 14 Day-services and Short-stays 2 1 11 18 1 6 1 40
Group homes 1 1 2
Total 4 3 18 22 6 8 2 63
★ Elderly homes with nursing care services, Day-services, Short-stays
Elderly homes with nursing care services, Short-stays
■ Elderly homes with nursing care services, Day-services
● Elderly homes with nursing care services
★ Residential style elderly homes, Day-services, Short-stays
Residential style elderly homes, Short-stays
● Residential style elderly homes
○ Group homes
▲ Day-services, Short-stays
● Day-services
Legend
▲Kisarazu
“Azumi En Kisarazu” (the first elderly care facility managed by subsidiary “Azu Life Care”) opened on November 1, 2014 and “Azumi En Shimizukoen” opened on March 1, 2015. 5 facilities will open during the second half of FY16/3 (Not only in Kanto but also in Chubu).
-55-App.1-4-1
：
Finance (Balance Sheets)
(Million yen) FY15/3 FY16/3
Q1
A
sse
ts
Cash and cash equivalents 75,221 74,412
Trade receivables 6,254 5,475
Accounts receivables for completed projects 1,714 1,689
Prepaid expenses 3,656 3,384
Deferred tax assets (short-term) 4,447 4,469
Current assets 102,263 99,372
Buildings and structures 59,899 59,140 Machinery, equipment, and vehicles 15,115 16,819
Land 83,289 83,429
Leased assets 7,880 8,898
Intangible fixed assets 8,894 8,758
Long-term prepaid expenses 3,416 3,432 Deferred tax assets (long-term) 14,654 14,705
Non-current assets 205,887 207,121
Total assets 308,274 306,609
(Million yen) FY15/3 FY16/3
Q1 L ia b ilit ie s
Interest-bearing debt (short-term) 24,525 25,056
Accounts payable for completed projects 14,049 9,737
Advances received 40,781 37,748
Current liabilities 116,521 105,402 Interest-bearing debt (long-term) 11,156 18,531 Reserve for apartment vacancy loss 5,280 4,913 Lease/guarantee deposits received 8,019 7,838
Long-term advances received 22,198 20,647
Non-current liabilities 65,279 71,534
Total liabilities 181,801 176,936
N e t a s s e ts
Common stock 75,282 75,282
Capital surplus 51,501 45,235
Retained earnings 427 9,997
Total net assets 126,473 129,672
Shareholders’ equity ratio 41.0% 42.3%
Balance Sheets
46.8
31.4
35.6
31.4
43.5 56.6
74.7 75.2
64.9
74.4
-0.17
-0.41
-0.31 -0.31 -0.24
-0.60 -0.40 -0.20 0.00 0.20 0.40
0 20 40 60 80
FY13/3 FY14/3 FY15/3 FY15/3 Q1 FY16/3 Q1
(Ratio) (Billion yen)
Interest-bearing debt Cash Net DE ratio
-56-App.1-4-2
：
Finance (Cash / Deposits and Interest-bearing Debt)
NDE Ratio
*Net DE ratio = (Interest-bearing debt – Cash) / Shareholders’ equity
Long-term debt increased due to roof-lease solar power system installments (371 buildings installed during Q1).
FY15/3 Q1 FY15/3 Full year FY16/3 Q1
-57-App.1-4-3
：
Finance (Cash Flows)
Cash Flows
Cash outflow from investing activities is mainly due to roof-lease solar power system installments (371 buildings installed during Q1).
(Billion yen) (Billion yen)
73.6 74.5
64.2
40 60 80
Cash and cash equivalents at end of period 7.4
-2.8 -5.4
1.7
-17.5 15.7
-0.3 -3.7
-5.7
-20 -10 0 10 20
Cash flows from financing activities Cash flows from
investing activities Cash flows from
-58-App.1-4-4
：
Indicator (Shareholder Composition)
*Based on number of stock
Shareholder Composition
2011/3 2011/9 2012/3 2012/9 2013/3 2013/9 2014/3 2014/9 2015/3
Individuals and other 60.7% 43.3% 35.2% 33.2% 27.5% 19.8% 20.7% 17.1% 16.7%
Foreign corporations 11.3% 27.8% 35.2% 34.3% 42.8% 48.6% 49.1% 46.8% 50.7%
Trust banks 4.9% 8.4% 8.3% 11.8% 12.8% 17.5% 17.6% 23.6% 23.2%
Financial institutions other than trust banks 3.8% 3.4% 3.4% 3.3% 3.6% 2.5% 1.7% 1.9% 1.9% Business corporations and other legal entities 14.1% 13.0% 12.7% 12.3% 7.8% 7.8% 6.9% 6.6% 2.5%
Securities companies 2.6% 1.4% 2.7% 2.6% 3.5% 1.7% 2.4% 2.3% 3.4%
Treasury stock 2.6% 2.6% 2.6% 2.5% 2.1% 2.1% 1.7% 1.7% 1.7%
0% 50% 100%
Appendix 2.
Medium-term Management Plan “EXPANDING VALUE”
-60-App.2-1
：
Business and Financial Strategies
Business Strategies
Financial Strategies
Leasing Improve occupancy rates by expanding tenant services FY March 2017:
Annual average occupancy rate 89.0%
Construction Expand construction variations based on “ideal land usage” FY March 2017:
Forecast sales ¥100 billion
Elderly Care Open new facilities in collaboration with the Construction business March 2014: 61 facilities
⇒March 2017: 90 facilities Hotels & Resort High quality hospitality to stakeholders
Solar Power
(Other)
Start roof-lease solar power business utilizing funds raised through public offering
FY March 2015:
Installments/generation on 2,900 buildings
Overseas
(Leasing, Other)
Start real estate brokerage services in Asia
Considering development and operations of service apartments
March 2014: 10 locations
⇒March 2017: 20 locations
Basic policy: “Focus on core businesses and challenging itself with new business fields”
Management emphasizing cash flows
Strengthen soundness of financial structure
(Improve shareholders’ equity ratio)
FY March 2017: Shareholders’ equity ratio 48.0% Active reinvesting in growth areas
Resumption of dividends Achieve positive retained earnings (non-consolidated) by stacking up profits
-61-App.2-2
：
Numerical Targets
Medium-term Management Plan “EXPANDING VALUE” Numerical Targets
(Billion yen) FY13/3
Actual
FY14/3 Actual
FY15/3 Plan
FY16/3 Plan
FY17/3 Plan
Sales
4,542
4,710
4,831
5,250
5,400
Operating profit
74
136
147
195
220
Recurring profit
110
115
134
180
210
Net income
133
152
145
160
190
Shareholders’ equity
ratio
22.2%
36.5%
41.0%
45.0%
48.0%
ROE
29.0%
18.7%
12.5%
12.0%
12.3%
EPS (yen)
74.5
67.2
55.2
60.9
71.7
ROA
5.1%
5.5%
4.9%
5.5%
6.0%
Average occupancy
-62-App.2-3
：
Dividend Policy
(Billion yen)
Retained earnings (non-consolidated) as of FY15/3 was -6.2 billion yen, but in order to prepare for the resumption of dividends, a “reduction of legal capital surplus and appropriation of surplus” has been resolved at the ordinary meeting of shareholders held in June 2015.
1,343 1,420
1,5101,5611,485 1,630
1,341
1,1801,226 1,2131,173 1,146 1,1741,193
1,2491,285
1,036 1,039
775 819
841 893 987
880
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
(Thousand units)
Leased units Condominiums House for sale Owner-occupied houses Company housing
-64-App.3-1
：
New Housing Starts
New Housing Starts by Fiscal Year (April to March)
After the Lehman collapse, new housing starts have been on an increasing trend. Due to last minute demand from consumption tax increase, new housing starts in FY2013 has increased 10.5% yoy, however decrease is seen in FY2014 (decreased 10.8% yoy). However, leased units
decreased 3.1% yoy, therefore negative effects from the rush demand with the consumption tax increase is limited.
*Excerpted from “Housing Start Statistics” (Ministry of Land, Infrastructure and Transport)
YoY
-3.1% -21.1%
-7.2%
-11.0% +49.2%
178 186 149
117 126 128 114 102 80 80 97 104 108 113 123 128 112 117 60 39 31 31 36 48 582
687 652
574 564 616
516
444 426 418 442 455 459 467
518 538
431 445
311
292 290321
370 358
0 100 200 300 400 500 600 700 800
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Leased units under 30㎡ Leased units over 30㎡
-65-App.3-2
：
New Housing Starts (Leased Units)
New Housing Starts of Leased Units by Fiscal Year (April to March)
Leased units starts in FY2013 increased 15.3% yoy, following an increase for the first time in four years in the previous fiscal year. It decreased 3.1% yoy, of which leased units over 30㎡ decreased -7.1% yoy, but leased units under 30㎡ increased
+32.9%.
*Excerpted from “Housing Start Statistics” (Ministry of Land, Infrastructure and Transport) (Thousand units)
+32.9% -7.1%
