2nd JPMC Group’s Financial Results · JPMC brand logo3 circles+ α In cooperation with JPMC...
Transcript of 2nd JPMC Group’s Financial Results · JPMC brand logo3 circles+ α In cooperation with JPMC...
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2nd Quarter of Fiscal Year Ending December 2019
JPMC Group’s Financial Results
Q2 FY12/19Consolidated Financial Results
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JPMC Results Briefing
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Overview of Q2 of FY 2019
The number of units under management increased steadily.From the end of the previous term, it rose by 3,972 (5.3%) to 79,057.
Shareholder returns
The acquisition of treasury shares (536,300 shares, 599 million yen) was completed.
Occupancy rate remained high, standing at 91.8%.(Average occupancy rate in 2018 was 91.4%.)
Thanks to the growth of recurring revenue, the sales in Q2 increased for 8 consecutive terms since listing. Both sales and operating income achieved the targets.
The interim dividend for fiscal 2019 was 17.5 yen/share as expected in the announcement.
Consolidated Financial Results for Q2 FY12/19
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(Million yen) FY12/18Q2
FY12/19Q2
YoY change YoY (%)
Vs. full-year
forecasts(%)
Net sales 20,649 21,304 655 3.2% 43,300
49.2%
Operating income 1,277 1,192 -84 -6.7% 2,200
54.2%
Ordinary income 1,284 1,195 -88 -6.9% 2,200
54.3%
Net income attributable to owners of parent
888 823 -65 -7.4% 1,500
54.9%
Net income per share (yen) 49.04 45.63 -3.41 -7.0%
Consolidated Financial Results for Q2 FY12/19
Financial Highlights (consolidated)
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Consolidated Statement of Cash Flows
(Million yen) FY12/18Q2
FY12/19Q2
YoY change
Operating cash flow 391 405 14
Investing cash flow -80 -19 60
Financing cash flow -158 -1,095 -936 Acquisition of treasury stock
Increase in cash and cash equivalents 152 -709 -861
Beginning balance 4,700 5,170 470
Ending balance 4,852 4,460 -391
Consolidated Financial Results for Q2 FY12/19
(Million yen) FY12/18Q2
FY12/19Q2
FY12/19Forecast
Vs. forecast(%)
Income from real estate 19,730 20,103 40,952 49.1%
Income from real estate incidental business
574 938 1,950 48.1%
Guarantee of delinquency 157 199 442 45.2%
Insurance business 240 563 1,161 48.6%
JPMC Hikari 176 175 347 50.5%
Other income 344 262 398 65.9%
Net sales 20,649 21,304 43,300 49.2%
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Stock
Flow
Consolidated Sales
Consolidated Financial Results for Q2 FY12/19
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Status of Key Indicators
Income from real estate FY12/19Target
FY12/19Q2 Results
Vs. forecast(%)
Number of units under management at the end of the period (units)
80,000 79,057 98.8%
Net increase in number of units under management (units) 5,000 3,972 79.4%
Average occupancy rate (%) 91.0 91.8 ー
Revenue from real estate incidental business
Number of new delinquency guarantees (cases) 11,000 4,373 39.8%
Number of new insurance contracts (cases) 42,000 20,890 49.7%
Consolidated Financial Results for Q2 FY12/19
Japan Property Management Center
Co., Ltd.
Subleasing/Rental Management
To become a leading PropTech company!Property Management Technology
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Three keywords for improving corporate value
To grow the top line by seizing chances
To become a leading PropTech companyAI × ICT = Property Management Technology
Differentiation from the real estate business
Emphasis on the growth of sustainable, stable recurring revenue, rather than short-term profits
Utilization of AI To tackle problems with management of rental housingBy utilizing our partner network, we will reform the rental housing industry.
Business administration without using BS
To become a leading PropTech companyAI × ICT = Property Management Technology
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基調講演
11Source: the Ministry of Internal Affairs and Communications, Statistical survey on housing and land in 2013 *Researched by our company
To reform the Japanese rental housing market with PropTech
No. of units managedabout 1 million*
No. of units managedabout 100,000
Japanese rental housing marketAbout 22.81 million units
PropTech
To solve problems with Property Managementwith AI×ICT!
AI call centerAI assessmentAI occupant screeningAutomatic production of contractsJPMC Hikari
JPMC Partner manages about 1 million units, and together with our company, it occupies a share of about 5% in the Japanese rental housing market. This scale is comparable to that of the largest prefabricated house maker. We offer PropTech-based solutions, to reform the Japanese rental housing market!
基調講演
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To streamline business processes with PropTech
(Minutes) (Minutes) (Minutes) (Minutes)
Preparation of agreement
with one-click
Automatic rent assessment
by AI
Reduce timewith speech recognition
technology
Automatic reviewby AI
To work on the streamlining of back-office processes with PropTech
*Researched by our company
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Operation of serviced housing
for elderlyConstruction Renovation Management Brokerage
Construction of serviced housing
for elderly
FurusapoPartner
ConstructionPartner
Renovation Partner
J’s Partner E-VEST Partner
Silver Partner
Number of partners
1,407 companies nationwide
Utilization of Partner Networks
*As of the end of July 2019. Including associate partners.
基調講演
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Owners
Occupants
JPMC brand logo
3circles + αIn cooperation with JPMC partners, we form a large circle under the theme of “rental housing,” and keep providing owners and occupants with wealth, peace of mind, safety, and stability.
The logo was infused with the above mentionedambition of our company.
イーベストパートナー
Brand logo
To grow the top line by seizing chances
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■Vs. Market■Vs. Prefab house
manufacturers■Vs. Business sentiment
Market scale
Rental housing
22.81 million units
Annual revenue from rents
About 15 trillion yen
Rental housing accounts for 37.6% of all housing units in Japan. It constitutes social infrastructure. From the number of rental housing units, the annual revenue from rents can be estimated to be over 15 trillion yen. This market is huge.
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Market scale
2015 2020 2025 2030 2035 2040 2045
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120
115
110
105
100
(Million people)
Japan's Future Population Trends (Nationwide)
102,210 thousand people
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Future Population Changes
Change in households2000 2030
Total No. of households: 46.78 million
Total No. of households: 53.48 million
BreakdownNo. of single households: 12.91 millionNo. of two-person households (married couples only): 8.83 millionNo. of other general households: 25.04 million
BreakdownNo. of single households: 20.25 million (up 7.34 million)No. of two-person households (married couples only): 11.13 million (up 2.29 million)No. of other general households: 22.10 million (down2.94 million)
Due to the trend toward nuclear families, the number of one/two-person households is estimated to increase by 9.63 million by 2030.
(Source: National Institute of Population and Social Security Research, Overview of estimation of the number of households in Japan (nationwide) 【in Jan. 2018】)
Expected change in the population
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396,404 buildings
(Buildings)
450,000
400,000
300,000
200,000
350,000
250,000
150,000
New construction starts for rental housing (nationwide)
2013 2014 2015 2016 2017 2018
Current Condition of Rental Housing Market
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Daito Trust Construction16.5%
Daiwa House
12.7%
Sekisui House12.2%
Others33.7%
Rati of prefab house manufacturers
75.1 %
396,404 buildings
2020*According to our research
Current Condition of Rental Housing Market
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To grow the top line by seizing chances
■Vs. Market■Vs. Prefab house
manufacturers■Vs. Business sentiment
Ethics in construction vanished away.22
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Sublease of ethics in construction
OwnersPrefabricated home maker
Let’s build housing, because the sublease system ensures returns.
Securing profitsby cutting down onconstruction cost
Post-prefabricated home maker
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Super sublease of ethics of living
Professionals in rental will manage real estate on behalf of owners, so there will be no worries.
Securing profits for ownersand our company throughrental housing management
Post-prefabricated home maker
Owners
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Difference from prefabricated home makers
Prefabricated home makers
Construction Sublease, management,and investment
Securing profits for makers by cutting down on construction costs
Securing profits forowners and our companythrough “rental management only”
Rental management with super sublease(construction will not be conducted)
Recurring-revenue business model that allows sustainable growth!
Profit
Profit
Difference from prefabricated home makers
Prefabricated home makers Business model
focused on constructionSetting of rents
with reference toconstruction costs
Ethics of construction
Business model focused on rental management
Ethics of living
Setting of appropriaterents considering
the market environment
An overwhelmingly high occupancy rate achieved!
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Problems with the sublease of prefabricated home makers
They do not want to disclose profits
Guaranteed rents
Revenue from
rentsRevenue from
rents
Owners’ income affected by revision to rents
For profit-earning real estate
Profit of prefabricated home makers
Lossmargin
For money-losing real estate
Income and expenditure in a black box
They do not want to disclose deficits
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Prefab house manufacturers
Construction & RenovationManagement&Brokerage&Serviced housing for elderly
Subleasing
Post-Prefab House Manufacturers
Logic of building
Vertical integration of construction companies
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Prefab house manufacturersLogic of living
Construction & RenovationManagement&Brokerage&
Serviced housingfor elderly
サブリースLogic of living
Super subleasing
Management
Management of serviced housing
for elderly
Construction
Renovation
Constructionof serviced housing
for elderly
Post-Prefab House Manufacturers
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Operation of serviced housing
for elderlyConstruction Renovation Management Brokerage
Construction of serviced housing
for elderly
FurusapoPartner
ConstructionPartner
Renovation Partner
J’s Partner E-VEST Partner
Silver Partner
Number of partners
1,407 companies nationwide
JPMC Partners
*As of the end of July 2019. Including associate partners.
基調講演
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Owners
Occupants
JPMC brand logo
3circles + αIn cooperation with JPMC partners, we form a large circle under the theme of “rental housing,” and keep providing owners and occupants with wealth, peace of mind, safety, and stability.
The logo was infused with the above mentionedambition of our company.
イーベストパートナー
Brand logo
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■Vs. Market■Vs. Prefab house
manufacturers■Vs. Business sentiment
To grow the top line by seizing chances
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4,7875,246
6,035
7,007 6,862
8,535
4,968
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2007 2008 2009 2010 2011 2012 2013
Net increase in the number of leased units
Economic Downturn would be an Opportunity!
AbenomicsEconomic recovery
(Units)
Lehman ShockRecession
3,552
6,505
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
2018 2019
(Units)
Post-Prefab House Manufacturers
Vs. previous year approx. 183%
6,505 units
Comparison on a half-year basis (January - June) 34
Trends in the number of new housing orders
73,000
75,000
77,000
79,000
81,000
1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月
2018年 2019年
Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Monthly Trends in the Number of Units Under Management
[units]
In the period of the current mid-term plan, the company focuses on the increase of units under management.The number of units under management started growing again!
The company has already achievedthe target for this term: 80,000 units!!
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Jan.
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Variation in the number of rental units under management
Mid-term Management Plan
In order to develop a structure for growth, we strengthened our recurring-revenue business by expanding the platform and the resources of sales staff, and increased the number of rental units under management to over 100,000 early.
48,715
56,819
66,275
73,165 74,277 75,085
80,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Over 100,000 units
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Ranking Company name Number of houses
1st SOMPO care groups 7,678
2nd Cofan, Institute of Studies 5,983
3 ジ・アメニティサービス 4,753
4th Vatty 3,822
5th Central Bank Group 3,199
6th La Charite 1,904
7th Sekiwa Grand Mast 1,738
8th Yamame Medical Co., Ltd. 1,709
9th Gold Age 1,504
10th Welloff 1,483
Number of elderly housing units
Ranking
33rd Japan Property Management Center 152 buildings 5,145 units
Ranked rd Plan
Including plans to open as of the end of July 2019
152 buildings 5,145 units
Source: Housing for the Elderly ShinbunAugust 7, 14, 2019 Issue "Elderly Housing Ranking 2019"
*Calculated based on the number of managed units as of the end of March 2019.
902 1,129 1,553
2,142 2,609
3,177
4,200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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Over 10,000 units
Leasing of rental housing for the elderly is proceeding steadily.We will manage 10,000 housing units by the end of 2022, aiming to be Japan's No. 1 in the number of rental housing for elderly.
Trends in the number of rental housing for elderly
Medium-term Management Plan (Rental Housing for Elderly)
※ we call our services “Furusapo” collectively that sublease Rental Housing for Elderly
Measures to accelerate growth of the Furusapo businessUtilization of Japan Housing Finance Agency
JPMC provides bridge financing for rental housing for the elderly.After the property is completed, you will receive lump-sum repayment at the loan is provided by Japan Housing Finance Agency.
30%
Timing of financingof the Japan Housing Finance Agency
30% 30% 10%
Loan approval
Sale of land
Start of construction
Com
pletion offram
ework
Com
pleting
Final loan
Sale of land
JPMC’s bridging financefor land-only
Rental Housing for Elderly
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Measures to accelerate growth of the Furusapo business“Furusapo Renaissance”
6420 108(Million)
12 6 4 2 010 8
10510095908580757065605550454035302520151050
Aged2017
127.09 million people2055
91.93 million people
Source: National Institute of Population and Social Security Research website
Revitalize company dormitories and student dormitories, where demand is declining, to rental housing for the elderly
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Rental Housing for Elderly
Scheduled to be opened in April 2020
One of the largest facilities in Tokyo with 156 units
Conversion work of an empty company dormitory for singles in Tokyo
Rental Housing for Elderly
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Kit for constructing housing for seniors with services under the supervision of JPMC
Anyone can build housing for seniors with services just like a plastic model.
JPMC Furusapo Kit
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JPMC Furusapo Center Depo
Development of parts and materials that can be constructed easily and at low cost by the two-by-four methodMass-produced Furusapo package
Conventional complex procedures, knowledge, and special skills are unnecessary! It is possible to realize construction easily.
JPMC Furusato Kit
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Anyone can build highly profitable housing for seniors with services just by combining parts just like a plastic. model!!*Schematic diagram of JPMC Furusapo Center Depo
2nd floor
1st floor
Residential room package
Restroom package
Staircase set
Cafeteria package
Elevator
Example of use of materials of JPMC Center Depo
Structural members (2×4 construction method) Siding (Moenexcelado 16) Other available materials
Anyone can build housing for seniors with services by using the materials of JPMC Center Depo and JPMC’s know-how to construct it!
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential room
Residential roomResidential
room
Residential room
Sanitary room
Washing room
Machine-aided bathroom
Undressing room
Sanitary room
Washing room
Staff room
Visiting nursing care
Clerical office Windbrea
k room KitchenPassage
PantryWaiting room
warehouseTea room
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Trends in Stock Income
Focus on growth of stock businessesGrowth in stock income leads to stable and sustainable top-line growth
18,760
19,879 20,305
21,042
8.8%
9.5%
10.4% 10.4%
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
2016年 2017年 2018年 2019年 2020年 2021年 2022年
ストック収入(単位:百万円) 利益率
Comparison on a half-year basis (January - June)
Stock income (million yen) Profit rate
Differentiation from the real estate industry
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Existing traditional Japanese inn business
Our Business Model
Investment Management
President of traditional Japanese inn
Our Business Model
Investors/fundsHoshino Resorts
Investment Management
President of traditional Japanese inn
Existing traditional Japanese inn business
Investment Management
Existing leasing operations
Investment Management
Apartments and condominiums’
Owner
Our Business Model
Apartments and condominiums’
Owner
Our Business Model
JPMC+Partners
Partners
ManagementInvestment
OwnerApartments and condominiums’
Investment Management
Existing leasing operations
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Differentiation from the real estate business
General realty(Business administration
using BS)
(Business administration without using BS)
Start from zero at the beginning of each fiscal year
Start from the number of units under management accumulated in the previous year
Totally different business model from the general real estate business
Investment/procurement
Operation/sale Profit
Improvement in asset value
ProfitOperation
Achieve high ROE while maintaining the equity ratio!
自己資本比率
38.0%45.2%
42.4%
37.0%44.2% 49.1%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2013年 2014年 2015年 2016年 2017年 2018年
30.5% 30.3% 33.0%38.9% 41.7%
37.9%
ROE
45.2% 42.4% 38.0% 37.0% 44.2% 49.1%
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Shareholders' equity ratio
Appendix
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Smart Leasing
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基調講演
The age of smart intermediary business will come. Strengths of our company as a “real estate provider”
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フォレントで
探すVisit to
a real estate firmPreview of rooms
with a real estate firm
To sign a contractat a real estate firm
平均訪問数
3.5店舗平均内見数
9.1件探し始めて平均
44日で契約Average number of
firms visited:
1.6
Average number oftimes of preview
3.1
Contracts signed in
18.7days on average
after starting search
Search with a smartphone
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Near future of the rental field【Future】
Search with a smartphone
To contact a real estate firm
by LINE
Preview by yourself
To sign a contractin a website
The age of smart intermediary business will come.56
Managementfirm
Customers use a smartphone or a tablet PC to search for housing.
Request preview by LINE
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Properties UnlockingSmart key
Managementfirm
Preview by yourself
Google map
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z
IT-based explanation of important items at home
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Cloud
Electronic payment
Five major brands covered
Customers can sign a contract by using a credit card without
visiting a shop.
Allocating resources to sales and proposals
In-house work
Sales force
In-house work
Sales force
Use of AI and IoT
By promoting the use of AI and IoT to lay the foundation to support business growth, we aim to create a "small backyard" that allows it to allocate personnel more heavily to its sales force while maintaining the current ratio of in-house staff.
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In order to facilitate two-way communication within the company,we use Internal SNS as Salesforce and communications tools
Acceleration of internal communication speed
Use of SNSImproving communication speed
Use of Cloud SystemsPromoting efficient communicationamong managements and sales staffs
Development of human resources
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Disclaimer
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This material contains forward-looking statements regarding the future performance of the Company and its consolidated subsidiaries, as well as plans and targets.These forward-looking statements are based on information available at the time of preparation and certain subjective assumptions regarding uncertain factors. They involve inherent risks and uncertainties, and there can be no guarantee that these forward-looking statements will be realized as described in the statements.
Actual results may differ from these forecasts due to changes in economic conditions, market trends, and the business environment.
Although the contents of this document are subject to great care, with respect to all matters relating to this document, with respect to novelty, validity, usefulness, fitness for a particular purpose, functionality, and safety,Please note that we are unable to provide any warranties.
These materials are not intended to solicit investment.Any final investment decision is the sole judgment and responsibility of the user.