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DAITO REPORT(April 1, 2013 - March 31, 2014)40th
Fiscal Term
Securities code: 1878
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1
Domestic economy and leased housing market
Increasing construction demand for leased housing
In the fiscal year ended March 31, 2014, the domestic economy saw continued depreciation of the yen and rise in the stock market as well as improvement trend in corporate earnings and employment environment due to such factors as the economic measures taken by the government combined with bold monetary easing policy by the Bank of Japan, and is expected to defeat the deflation and realize a full-fledged recovery.
As for the housing industry, in the field of leased housing in which the Daito Group is focused, housing starts of rental residential properties in the fiscal year under review on a cumulative basis showed a year-on-year increase by 15.3% with 13 consecutive monthly year-on-year increases. On the back of the inheritance tax reform in January 2015, land price increase in the three largest metropolitan areas, an increase in the consumption tax rate, the continuation of the low-interest environment, etc., landowners’ needs for effective asset succession/asset utilization is still robust, and demand is becoming even more higher for the construction of rental residential properties that can be used for tax saving purposes. Accordingly, companies that propose leased housing construction are required to give aging landowners comprehensive asset utilization/management support to “realize amicable and smooth asset succession,” rather than a simple tax-saving proposal.
Naomi KumakiriRepresentative Director and President
Net income ¥55.2 billion (+7.0% YoY) Payout ratio: 50.0%
Total shareholder return ratio: 80.0%
2012(38th Term)FYFYFYFY FY FY2013
(39th Term)
0
20
40
60
80
0
20
40
60
80
100
47.1
(Billions of Yen)
2012(38th Term)
2013(39th Term)
347
0
100
200
300
400
500 (Yen) (%)
297
2014(40th Term)
324
Full-year
Net sales ¥1,259.6 billion (+9.3% YoY)
2012(38th Term)
2013(39th Term)
0
400
800
1,200
1,600 (Billions of Yen)
Ordinary income ¥93.3 billion (+9.1% YoY)(+8.9% YoY) ¥347(+¥23 YoY)
2012(38th Term)
2013(39th Term)
0
30
60
90
120 (Billions of Yen)
1,152.4
2014(40th Term)
2014(40th Term)
Operating income ¥89.7 billion
2012(38th Term)
2013(39th Term)
0
30
60
90
120 (Billions of Yen)
2014(40th Term)
2014(40th Term)
Net income per share ¥693 (+6.9% YoY)
2012(38th Term)
2013(39th Term)
693
0
300
600
900 Payout ratio: 50%Purchase and retirement of treasury stock: 30%
648594
(Yen)
2014(40th Term)
50.0
80.0
50.0 50.0
93.385.5
81.9
Dividends per share
1,259.689.7
82.4 84.2 55.21,087.1 51.6
I would like to express my gratitude to our shareholders and investors for their continued support. The operating results and efforts of the Daito Group for the 40th Fiscal Term (from April 1, 2013 to March 31, 2014) are reported as below.
To Our Shareholders:
Consolidated Financial Highlights
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2
Meanwhile, the total number of households in Japan is forecasted to increase through 2020 due to the increase in the number of single-person households stemming from such factors as the declining birthrate and aging population, the nuclearization of families and the growing tendency for individuals to marry later in life; tenants’ demand for leased housing is thus expected to remain brisk in the future. In recent years, tenants’ needs have been diversifying, and companies engaging in tenant mediation and building management have been required to provide value-added services related to residence and living, such as offering convenience to tenants and handling complaints during the tenancy, there by not merely focusing on improvement of building and residence facilities.
We also expect further growth in domestic construction demand in the future due to the full realization of reconstruction demand following the Great East Japan Earthquake and the hosting of the Olympics in Tokyo. Under these circumstances, the Daito Group is expected to face significant challenges in terms of restraining increasing construction cost, securing labor force, and enhancing construction capability.
Operating results for the fiscal year under review
Revenue and earnings increased for the sixth consecutive year reaching historic highs
Under these circumstances, the Daito Group posted increased revenue and earnings (operating income and ordinary income) on a consolidated basis for the
sixth consecutive year, having recorded net sales in the amount of 1,259,673 million yen (up 9.3% year-on-year), and on the profit front, posted an operating income of 89,780 million yen (up 8.9% year-on-year), ordinary income of 93,335 million yen (up 9.1% year-on-year), and net income of 55,277 million yen (up 7.0% year-on-year) achieving historic highs for the Group.
As a result, the Company will set the annual dividend of 347 yen per share (equivalent to a payout ratio of 50%) including the interim dividend of 170 yen per share which has already been paid.
In addition, the Company was selected for the inclusion in the JPX-Nikkei Index 400 by the Tokyo Stock Exchange and others as one of the “companies with high appeal for investors.”
40th anniversary since foundation
Further explore opportunities in rental apartments
The Company celebrated its 40th anniversary on June 20, 2014 since its foundation. We owe this to the support of our owners, tenants, shareholders and other stakeholders. We will keep on “further exploring opportunities in rental apartments” so that we will continue to be a company that can shape the future for the owners, tenants, and the local communities that we serve.
We look forward to the continued support and guidance of all our shareholders. June 2014
Net income ¥55.2 billion (+7.0% YoY) Payout ratio: 50.0%
Total shareholder return ratio: 80.0%
2012(38th Term)FYFYFYFY FY FY2013
(39th Term)
0
20
40
60
80
0
20
40
60
80
100
47.1
(Billions of Yen)
2012(38th Term)
2013(39th Term)
347
0
100
200
300
400
500 (Yen) (%)
297
2014(40th Term)
324
Full-year
Net sales ¥1,259.6 billion (+9.3% YoY)
2012(38th Term)
2013(39th Term)
0
400
800
1,200
1,600 (Billions of Yen)
Ordinary income ¥93.3 billion (+9.1% YoY)(+8.9% YoY) ¥347(+¥23 YoY)
2012(38th Term)
2013(39th Term)
0
30
60
90
120 (Billions of Yen)
1,152.4
2014(40th Term)
2014(40th Term)
Operating income ¥89.7 billion
2012(38th Term)
2013(39th Term)
0
30
60
90
120 (Billions of Yen)
2014(40th Term)
2014(40th Term)
Net income per share ¥693 (+6.9% YoY)
2012(38th Term)
2013(39th Term)
693
0
300
600
900 Payout ratio: 50%Purchase and retirement of treasury stock: 30%
648594
(Yen)
2014(40th Term)
50.0
80.0
50.0 50.0
93.385.5
81.9
Dividends per share
1,259.689.7
82.4 84.2 55.21,087.1 51.6
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3
Consolidated Statements of Income(Billions of Yen)
2014/3 (40th Term) 2013/3 (39th Term) YoY
Net sales 1,259.6 1,152.4 +9.3%
Operating income 89.7 82.4 +8.9%
Ordinary income 93.3 85.5 +9.1%
Net income 55.2 51.6 +7.0%
Consolidated Balance Sheets(Billions of Yen)
2014/3 (40th Term) 2013/3 (39th Term) YoY
Assets 684.4 617.7 +66.7
Liabilities 462.4 431.1 +31.3
Net assets 222.0 186.5 +35.5
2014/3 (40th Term) 2013/3 (39th Term) YoY
Net assets per share 2,823.23 yen 2,400.55 yen +422.68 yen
Equity ratio 32.9% 31.0% +1.9 percentage points
Return on equity (ROE) 26.6% 29.6% −3.0 percentage points
Consolidated Statements of Cash Flows(Billions of Yen)
2014/3 (40th Term) 2013/3 (39th Term)
Net cash provided by (used in) operating activities 83.8 87.8
Net cash provided by (used in) investing activities -59.4 -10.3
Net cash provided by (used in) financing activities -39.1 -36.2
Cash and cash equivalents, end of year 253.2 264.1
Consolidated Financial Statements
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4
Consolidated Business Overview by Segment
Gross profit margin forcompleted projectsFull-year Full-year (plan) Full-year Full-year (plan)Orders received
2012(38th Term)
2013(39th Term)
2015(41st Term)
2014(40th Term)
670.0 (Plan)
0
200
400
600
800 655.1 625.8(Billions of Yen)
Completed construction contracts
2012(38th Term)
FY FY2013
(39th Term)2015
(41st Term)2014
(40th Term)
0 0
200
400
600
800
489.5
35.2 32.1
(Billions of Yen)
25
50
75
100 (%)
Occupancy rate
12/3 13/3 14/3 15/3
96.9 (Plan)
70
80
90
100 96.8
95.596.8 (Plan)
(%)
Net sales
Completed constructioncontracts
2012(38th Term)
FY
FY
2013(39th Term)
2014(40th Term)
2015(41st Term)
722.2 (Plan)
0
200
400
600
800630.4
677.6589.9
(Billions of Yen)
Net sales
2012(38th Term)
2013(39th Term)
2015(41st Term)
2014(40th Term)
38.8 (Plan)
0
10
20
30
40
50
32.436.6
(Billions of Yen)
Occupancy rate of leasedresidential properties
Occupancy rate of leasedcommercial properties
96.7
96.8
96.9
28.5
611.7
Cons
truc
tion
bus
ines
sR
eal e
stat
e b
usi
nes
sO
ther
bu
sin
ess
+11.4%YoY
468.6
37.4
584.0 (Plan)
Full-year Full-year (plan)
Full-year Full-year (plan)
94.1
¥545.3 billion
Orders received
-4.5%YoY¥625.8 billion
Net sales
+7.5%YoY¥677.6 billion
Occupancy rateLeased residential properties
Leased commercial properties
+0.2 points
YoY96.9%
+1.3 points
YoY96.8%
Net sales
+12.9%YoY¥36.6 billion
Recorded a historic high
Maintained a healthy level
545.3
Higher revenue and profit in the core LP gas supply and daycare service businesses
30.3(Plan)
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Net income ¥59.8 billion (+8.2% YoY) 82.7%
2013(39th Term)
2015(41st Term)
0
20
40
60
80
0
20
40
60
80
100(Billions of Yen)
2013(39th Term)
347
0
100
200
300
400
500 (Yen) (%)
2015(41st Term)
2014(40th Term)
324
Full-year Full-year (plan)
Net sales ¥1,345.0 billion (+6.8% YoY)
2013(39th Term)FY FY FY
FY FY FY
2015(41st Term)
1,345.0(Plan)
0
400
800
1,200
1,600 (Billions of Yen)
Ordinary income ¥94.9 billion (+1.7% YoY)(+1.4% YoY)
¥391 (+¥44* YoY)
2013(39th Term)
2015(41st Term)
0
30
60
90
120 (Billions of Yen)
1,152.4
2014(40th Term)
2014(40th Term)
Operating income ¥91.0 billion
2013(39th Term)
2015(41st Term)
0
30
60
90
120 (Billions of Yen)
2014(40th Term)
2014(40th Term)
Net income per share ¥741 (+6.9% YoY)
2013(39th Term)
2015(41st Term)
693
0
300
600
900
648
(Yen)
2014(40th Term)
741(Plan)
391(Plan)
80.0
50.0
82.7(Plan)
93.385.5
94.9(Plan)
Dividendsper share
1,259.691.0
(Plan)89.782.4
55.2
59.8(Plan)
51.6
Total shareholderreturn ratio
* Including commemorative dividend of ¥20 per share for the Company’s 40th anniversary since its foundation.
5
Outlook for FY2015
Plan to achieve a seventh consecutive fiscal year of increased revenue and earnings (operating income and ordinary income)
In the fiscal year ending March 31, 2015, we anticipate net sales will reach ¥1,345.0 billion (up 6.8% year-on-year). From a profit perspective, we are forecasting operating income to total ¥91.0 billion (up 1.4% year-on-year). Ordinary income is expected to
amount to ¥94.9 billion (up 1.7% year-on-year), and net income to come to ¥59.8 billion (up 8.2% year-on-year), which will mark a seventh consecutive fiscal year of increased revenue and earnings (operating income and ordinary income).
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(1) Payout ratio
50%
(2) Purchase and retirement
of treasury stock30%*
Total shareholder return ratio
80%* Subject to certain conditions
including net income over ¥10.0 billion and no major funding needs.
FY2014
Annual dividend: ¥347 per share (+¥23 YoY, 50% payout ratio)Purchase and retirement of treasury stock: ¥16.6 billion/1,710,000 shares (maximum)* Net income for FY2014 × 30%* To be purchased by March 2015 and retired at the end of March 2015
FY2015 (Plan)
Annual dividend: ¥391 per share (¥+44 YoY, 52.7% payout ratio)
<Breakdown>Ordinary dividend: ¥371 [50.0% payout ratio]Commemorative dividend for the Company’s 40th anniversary since its foundation: ¥20 [2.7% payout ratio]
6
Shareholder Return Policy
Basic Policy for Profit AppropriationThe Company recognizes adequate profit return to shareholders as the most important management matter and practices it. The Company takes the basic policy stance of setting the total shareholder return ratio at 80% of consolidated net income, 50% of which is in the form of dividend and 30% in the form of purchase and retirement of treasury stock unless the Company expects major funding needs going forward.
The Company will resume the purchase and retirement of treasury stock, which was temporarily suspended following the completion of a tender offer of over ¥200.0 billion in March 2011, as we expect the equity ratio to reach 35% based of the financial results for the fiscal year under review and in view of expected future cash flows.
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7
Statement of Income
Net sales: ¥1,608.0 billion Net income: ¥73.3 billionAverage annual growth
+6.9%Average annual growth
+7.3%FY2018 (Plan)
600
300
900
1,500
1,200
1,800
60
20
0 0
40
100
80
120
2014(40th Term)
1,259.6
55.2
(Billions of Yen) (Billions of Yen)
2013(39th Term)
51.6
1,152.4
Net income (actual) Net income (plan)Net sales (actual) Net sales (plan)
2018(44th Term)
2012(38th Term)
47.1
1,087.1
2015(41st Term)
59.8
1,345.0
2011(37th Term)
FY
43.1
1,001.1
2017(43rd Term)
1,520.0
68.8
2016(42nd Term)
1,432.0
64.0
Net sales
¥1,608.0billion
Net income
¥73.3billion
FY 2011(37th Term)
2012(38th Term)
2013(39th Term)
2014(40th Term)
2015(41st Term)
2016(42nd Term)
2017(43rd Term)
2018(44th Term)
Net sales (¥ Billions) 1,001.1 1,087.1 1,152.4 1,259.6 1,345.0 1,432.0 1,520.0 1,608.0Construction business (¥ Billions) 430.2 468.6 489.5 545.3 584.0 624.5 662.5 696.5
Real estate business (¥ Billions) 545.2 589.9 630.4 677.6 722.2 766.2 813.6 865.0
Other business (¥ Billions) 25.6 28.5 32.4 36.6 38.8 41.3 43.9 46.5
Gross profit (¥ Billions) 195.3 214.1 218.4 233.0 240.4 254.0 269.0 284.0Construction business (¥ Billions) 167.0 175.1 172.1 175.2 176.9 187.4 198.8 209.0
Real estate business (¥ Billions) 19.2 29.2 35.3 45.3 49.6 51.7 54.5 58.6
Other business (¥ Billions) 9.0 9.7 10.9 12.4 13.9 15.0 15.8 16.5
Selling, general and administrative expenses (¥ Billions) 121.5 132.1 136.0 143.3 149.4 156.5 164.0 172.0Operating income (¥ Billions) 73.7 81.9 82.4 89.7 91.0 97.5 105.0 112.0Ordinary income (¥ Billions) 78.0 84.2 85.5 93.3 94.9 101.4 108.9 115.9Net income (¥ Billions) 43.1 47.1 51.6 55.2 59.8 64.0 68.8 73.3
Mid-Term Business Plan
The Company has put in place a mid-term business plan which covers the five-year period to the fiscal year ending March 31, 2018. Under this plan, we aim to achieve net sales of ¥1,608.0 billion and net income of ¥73.3 billion in the fiscal year ending March 2018 by securing an average annual growth of 6% or more.
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8
Financial Indicators / Shareholder Return
Shareholders’equity, equity ratio, return on equity (ROE)
Net income per share, payout ratio, total shareholder return ratio
FY 2011(37th Term)
2012(38th Term)
2013(39th Term)
2014(40th Term)
2015(41st Term)
2016(42nd Term)
2017(43rd Term)
2018(44th Term)
Total assets (¥ Billions) 532.9 569.0 617.7 684.4 716.4 730.4 770.6 770.0
(Debt) (¥ Billions) (127.0) (124.5) (110.8) (96.9) (79.9) (63.2) (47.2) (4.8)
Shareholders’equity (¥ Billions) 131.1 158.3 191.2 224.8 242.9 251.5 269.1 287.4
Equity ratio 24.6% 27.8% 31.0% 32.9% 33.9% 34.4% 34.9% 37.3%
Return on equity (ROE) 19.5% 32.5% 29.6% 26.6% 25.5% 25.9% 26.4% 26.3%
Net income per share (¥) 384 594 648 693 741 809 888 965
Cash dividends per share (¥) 229 297 324 347 391 405 445 483
Payout ratio 59.6% 50.0% 50.0% 50.0% 52.7% 50.0% 50.0% 50.0%
Total shareholder return ratio(Including acquisition of own shares*)
526.0% 50.0% 50.0% 80.0% 82.7% 80.0% 80.0% 80.0%
* The Company aims to purchase and retire its treasury stocks on an ongoing basis up to 30% of consolidate net income each year subject to certain conditions including consolidated net income over ¥10.0 billion and no major funding needs going forward.
75
225
150
300
02014
(40th Term)
(Billions of Yen)
20
0
60
40
80(%)
2013(39th Term)
191.2
Shareholders’equity (actual)
Shareholders’equity (plan)
Equity ratio (actual)
2018(44th Term)
2012(38th Term)
158.3
2015(41st Term)
242.9 251.5269.1
287.4
2011(37th Term)FY FY
131.1
2017(43rd Term)
2016(42nd Term)
Equity ratio (plan)
ROE (actual)
ROE (Plan)
224.8
200
400
800
600
1,000
02014
(40th Term)
(Yen)
40
20
80
60
(%)
2013(39th Term)
648
Net income per share (actual)
Net income per share (plan)
Payout ratio (actual)
2018(44th Term)
2012(38th Term)
594
2015(41st Term)
741809
888965
2011(37th Term)
384
2017(43rd Term)
2016(42nd Term)
Payout ratio (plan)
Total shareholder return ratio (actual)
Total shareholder return ratio (Plan)
693
26.326.326.426.425.925.925.525.526.626.6
37.337.334.934.934.434.433.933.932.932.9
29.629.6
31.031.0
27.827.8
32.532.5
19.519.5
24.624.6
80.080.080.080.080.080.082.782.780.080.0
50.050.050.050.050.050.052.752.750.050.0
50.050.0
50.050.050.050.0
50.050.0
526.0526.0
59.659.6
010_0360202982606.indd 8 2014/06/28 3:35:11
Sound insulation performance comparison by structure type (heavy floor impact sound)
LH-55
LH-60
LH-65
LH-70
Modessa IIIchocollat
RC structureEquivalent to the slab thickness of 200 mm
Ordinary leased housing with steel structures
Ordinary leased housing with wooden structures
* Sound insulation performance is higher as the number becomes smaller.A sound-insulating mat is also placed beneath the floor covering
Floor covering
Anti-vibration flooring(Sound-insulating underlay)
Floor beam
Autoclaved lightweight concrete (ALC) panel
Structural surface material
Gypsum board (double tension)
Footboard
Riser
Sound-insulating mat
Sectional view of the floor
Anti-vibration suspended beam
Ceiling joist
Acoustic material
T O P I C S
New Apartment “Modessa III chocollat” on Sale from May 2014
High-performance sound insulation to satisfy the needs of the tenants
Adoption of “high-performance sound insulation stairs” (patent pending)People living below are not bothered by the sound of people living above who use the stairs after they come home. People living above do not have to worry about the sound they make when using the stairs. In this way, they both can lead a comfortable life.
Noise abatement stairs
A
High-performance sound insulation at LH-55We developed and adopted a unique “high-performance sound insulation flooring” structure, which can reduce floor impact sound by a maximum of 2/3.
As a result, floor impact sound is reduced to 1/3 as compared with ordinary wooden leased housing. Its sound insulation performance is comparable to that of apartments adopting RC structures.
Sound insulation flooring (LH-55)
B
*1-2 Fl. residential unit:1LDK (one room/living room/dining room/kitchen): 50.86 m2
*2-3 Fl. residential unit:2LDK (two rooms/living room/dining room/kitchen): 61.82 m2
Modessa III chocollat, a new apartment with
the improved lighting and privacy features has
been on sale from May 2014.
The new apartment features a double
maisonette structure, which places a maisonette
(2-floor structure) on top of another
maisonette. As a result, all units have 2-side
lighting with ample living space. It is also
designed to improve the privacy of tenants, and
propose a cheerful and stylish space for working
women and young couples.
Double maisonette structure Noise abatement system
9
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Daito Topics
“The 2nd Leased Housing Competition” 1st Prize Announced
In February 2014, we held a final screening for the 2nd
Daito Trust Construction “Leased Housing Competition.”
In this competition, new ideas were sought under the
theme of “New Leased Housing Ideas – Redesign Multi-
unit Rental Apartments.”
The first prize was selected from 557 ideas we
received in total from both Japan and overseas (1,217
applications registered), which were more than we
received for the 1st competition. (See the right pictures)
As the value expected from leased housing changes,
we will develop and offer valuable rental apartments
taking advantage of such an opportunity to encounter a
variety of new ideas, in order to further explore
opportunities in rental apartments down the road.
Prize-winning works and winners (titles omitted)1st prize (1 work) [¥3 million prize]“Rental City – Two Rental Techniques”Kosuke Kato (freelance) and Naoki Kato (Shimizu Corporation)
Prize for excellence (2 works) [¥1 million prize + ¥300,000 student grant for each work]“House of a Map”Oka Koimizu (Tokyo Denki University) and Kiyohiro Hori (Graduate School, Tokyo Denki University) “Three-Dimensional Multi-unit Rental Apartments”Itaru Yamamoto (Graduate School, the University of Tokyo)
Special prize (3 works) [¥500,000 prize for each work+ ¥300,000 student grant for one leading work only]“Rental Apartment Plan, Tokyo 2014”Hee Dong Lee (Graduate School, Tokyo University of the Art) and Jae-pil Choi (Tokyo University of the Art) “Life with Rented Tools”Shohei Sugimoto (Graduate School, Kogakuin University), Shota Yamai, and Daiki Okutomi (Graduate School, Nihon University)“Walls Extending Outside Will Become the Interior of the City”Nobuhiko Sawa, Kai Echigo, Kenzo Tanaka, Yoshiyuki Uramoto, and Tomohiro Yoshida (Graduate School, Yokohama National University)
1st prize work and winners
Prize winners
10
011_0360202982606.indd 10 2014/06/27 11:08:03
T O P I C S
“Room Interior & Arrangement Contest”
During the period from December 20, 2013 to January
31, 2014, we held a “Room Interior & Arrangement
Contest” for those who live in Daito rooms.
The contest was highly successful as we received
over 1,640 great ideas for the effective use of a room
including ingenious storage methods and nice color
coordination.
After careful consideration, we selected 19 prize
winners. These ideas provided by our tenants will be
reflected in our new leased housing products and
services to improve the quality of living in rental
apartments.
Prize winners and themes
Gold prize (1 winner) [gift certificates of ¥100,000]
“Handmade Café-style Interior”
Yuko Mama (Tochigi Prefecture)
Silver prize (3 winners) [gift certificates of ¥50,000]
“Handmade Fabric Board”
M.A. (Hyogo Prefecture)
“Using My Favorite Chest and Wagon as a Partition”
Wako (Hyogo Prefecture)
“Brown-tone Living Room with Accessory Display Panels”
anna (Shizuoka Prefecture)
Bronze prize to 5 winners and special prize to 10 winners
Gold prize
“Handmade Café-style Interior”
Close
Open
A window-style shelf to create
a sense of spaciousness
A wooden chest box is converted to a cover
A number of readily
adaptable ideas!
11
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Daito Topics
Activities to Support Restoration - Rainbow Houses in Sendai and Ishinomaki Completed!
As part of our activities to support restoration from the Great East Japan Earthquake, the Daito Group established the
“Daito Group Ashinaga Fund” in May 2012 and the funds are donated to Ashinaga. The donation through March 2014
from both our employees and the Company totaled ¥192 million.
Ashinaga constructs and operates “Rainbow Houses,” which are facilities to help children who lost their parents during
the Earthquake recover from their emotional wounds.
In March 2014, the new Rainbow Houses in Sendai-shi and Ishinomaki-shi, Miyagi were completed. We expect them to
be the facilities to support and encourage the mind of children in the disaster-stricken areas.
The Daito Group will continue to provide long-lasting support activities to the stricken areas.
External view of the Sendai Rainbow House
“Volcano room”
External view of the Ishinomaki Rainbow House
“Chat room”
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T O P I C S
To a nationwide coverage
FY2014
Working as a bridge between tenants and local
community
24areasFY2013
The Company have been providing Live-UP Lifestyle Services since June 2012 to tenants in selected areas in which properties under our management are located. “Live-UP Lifestyle Services” provide information on special benefit services that can be used at local stores and other local money-saving opportunities, and have been very popular among both local shops and tenants. These services are available in 24 areas nationwide as of March 2014. We plan to expand the service coverage area to 48 areas in 47 prefectures in Japan by March 2015.
“Live-UP Lifestyle Services” to Cover 47 Prefectures Nationwide
Website for “Live-UP Lifestyle Services”
13
Localinformation
Connect
Expand
Localcommunity Local shops
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Daito Topics
0
100
200
300
400
500
0
5
10
15
2014FY 2015 (plan) 2016 (plan) 2017 (plan)
381
78
202
401
2
6
11FY2014
2 facilities
FY2017To 11
facilities
Authorized childcare facility
6 to 19
Small-scale childcare facility
20 or more
0 to 2 years old 0 to 5 years old
Capacity
Eligible age
Certified childcare workers and persons
who have the equivalent knowledge and experience
Certified childcare workers only
Staffrequirements
Net sales Number of facilities under operation
Net
sal
es (¥
Mill
ions
)
Num
ber o
f fac
ilitie
s und
er o
pera
tion
“Kids Partner Okurayama” Operation Started!
Our group company Care Partner Co., Ltd. has been providing childcare services since April 2013. In April 2014, it opened its second childcare facility “Kids Partner Okurayama” in Okurayama, Kohoku-ku, Yokohama.
As part of the effort to “reduce the number of children on the waiting list to zero,” the Yokohama City Government started small-scale childcare model business in April 2014. Kids Partner Okurayama is the first small-scale childcare facility under the program.
Small-scale childcare facilities, which are smaller than authorized childcare facilities, are expected to be an effective solution to the issue of children on the waiting list particularly in urban areas where it is difficult to construct medium- to large-scale childcare facilities. The Yokohama City Government requested Care Partner to operate the facility in recognition of the Company’s past operating records.
In order to address the issue of children in the waiting list particularly in large cities and support working women, Care Partner Co., Ltd. will continue to expand the childcare business and increase the number of facilities under its operation to 11 in three years or by the fiscal year ending March 31, 2017.
External view of Kids Partner OkurayamaMany parents and other guardians attended the entrance ceremony.
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TOPICS
The Group started photovoltaic power generation business in August 2012. In this business, the Group leases the roofs of the properties under its management from the owners, installs solar panels at its cost, and sells the power generated by the panels.
The Group pays rents to the owners for leasing their roofs and pays 5% of electric bills to the tenants who supported its power saving efforts.
The number of properties to which solar panels have been installed is steadily increasing. As of March 2014, we have installed solar panels to 3,100 buildings and their combined power generation capacity is 40 megawatts (equivalent to one thermal power plant). This roughly equals to the annual electricity consumption of 12,000 general households.
We aim to have solar panels installed in 8,000 and the power generation capacity is expected to exceed 100 megawatts (equivalent to three thermal power plants) in three years or by the fiscal year ending March 31, 2017.
Energy Creation Initiative (Photovoltaic Power Generation)
Photovoltaic power generation businessEnergy creation challenge to face the next-generation energy issue
Installation, management and operation
Infrastructure improvement mechanism
Eco-friendly activities
Daito Group
Sale of electricity
Electric power company
Payment of roof rents
Energy infrastructure improvement cooperation activities
Return of “activity cost”
“Energy saving” and “eco” cooperation activities
Owners
Tenants
“Energy creation” rental apartments
Install solar panels to 8,000
buildings by the FY2017
15
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Daito Topics
Lights out by 900 facilities of the Daito Group and the Group employees all over Japan!
+Lights out by owners, tenants, and customers/suppliers who support the campaign!
Maximum power saving
effect equivalent to
monthly electricity
consumption of about 5,500 households!!
Tree planting in Tohoku!!
The number of trees converted from the
amount of power saved based on the CO2
absorption capacity of cedar trees!
June 21 (Saturday) and July 7 (Monday)
2 hours from 8:00 p.m. to 10:00 p.m.
Summer Solstice Light Down Cool Earth Day Light Down
Your cooperation for lights out at your home and office will be appreciated.
Lights out at a
maximum of 960,000
places!!
In support of the “Light Down Campaign” by the Ministry of the Environment, the Daito Group is conducting its “Light Down Campaign” in which we encourage employees of our offices and other stakeholders to put out lights for two hours from 20:00 to 22:00 on June 21 (summer solstice) and July 7 (Tanabata).
We are asking the 900 facilities of the Company and houses of 15,000 Group employees as well as the owners of properties under our management (850,000 units), tenants, and other customers/suppliers of the Company for the participation in the “Light Down Campaign.” This campaign could result in light-outs in 960,000 places at a maximum, which would be power saving equivalent to the monthly electricity consumption of about 5,500 households.
The amount of power saved as a result of these concerted light-out efforts will be converted to the number of trees based on the CO2 absorption capacity of cedar trees. We will plant these trees in Tohoku area to support restoration from the earthquake disaster.
This is our first “Light Down Campaign” and we plan to continue this campaign in future years for “environmental protection/tree planting support.” We also look forward to the participation of our shareholders.
For more information, please visit the website http://ld-kentaku.com/.
“Daito Light Down Campaign 2014”“Plant trees by looking up at stars!!”- Maximum power saving equivalent to 5,500 household/month and tree planting support
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Our New “Adjustable Condominium” Units on Sale!The Company is currently proposing a new way of living by offering “Adjustable Condominium” units in Hiratsuka-shi, Kanagawa
(XIXE Shonan Hiratsuka), Arakawa-ku, Tokyo (XIXE Machiya), and Yachiyo-shi, Chiba (XIXE Yachiyo Murakami).
Adjustable Condominium is a condominium unit consisting of a “main space” (2 or 3 bedrooms, living room, dining room,
kitchen) located next to/between “adjustable space(s)”(1 bedroom/kitchen). Space in this property can be flexibly adjusted to suit
different family size and life cycle. For example, the entire space may be connected, or rooms may be separated for own use or
for rent. Rooms not used by the family can be leased to the Daito Group for stable rental revenue. Adjustable Condominium is a
new type of condominium that meets the social needs of the future.
Main space
Adjustable space
Connection space
Conceptual diagram of Adjustable Condominium
Connection space(Patented)
Adjustable room planThe main space and the adjustable space can be easily connected by eliminating the wall between them.
As a unit consisting of 3 bedrooms/living room/dining room/
kitchen (for own use) + another 1 bedroom/kitchen (for rent)The main space and the adjustable space can be separated for use as above by using the connection space as a closet and a wall.
As a unit consisting of 4 bedrooms/living room/
dining room/kitchen(for own entire use)
Can be used as a spacious unit consisting of 4 bedrooms/living room/dining room/kitchen by opening the connection space between the main space and the adjustable space.
Examples of the use of Adjustable Condominium
The main space (consisting of 2 bedrooms/living room/dining room/kitchen) is used by a couple. Adjustable spaces (1 bedroom/kitchen) are for rent.
The main space (consisting of 2 bedrooms/living room/dining room/kitchen) and one adjustable space (1 bedroom/kitchen) are used by a couple with one child. The other adjustable space (1 bedroom/kitchen) is for rent.
The entire space is used by an extended family consisting of three generations.
2LDK 1K1KMainspace
Adjustablespace
Adjustablespace
Rent Used Rent
Used Used Rent
Used Used Used
17
Special Feature
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Movable closet(Adjustable room plan)
In the main space, a movable closet can serve as a wall to separate two rooms. The room plan can be flexibly adjusted to suit the individual life style and realize a living space that can be used interchangeably as 2 bed rooms/living room/dining room/kitchen or as 1 bed room/living room/dining room/kitchen.
The movable closet is placed in the center position. Right size for a child with a space of about 4.4 jo (tatami mat sized) and a closet.
The movable closet is placed at the end. The resulting room of about 10.5 jo (tatami mat sized) can be used as a spacious bedroom for the couple after the child starts to live alone.
2-6 and others, Miyanomae, Hiratsuka-shi, KanagawaSRC (RC in part)B1/13FTotal units: 47 (including 3 units used for retail and office spaces)
6-1490-6, 7, Machiya, Arakawa-ku, TokyoRC10FTotal units: 18
1-12-5, 7, 8, 9, 10, 11, 24, 25, Murakami Minami, Yachiyo-shi, ChibaRC6FTotal units: 20
Scheduled for completion in late
October 2014
Scheduled for completion in mid
January 2015
Scheduled for completion in late December 2015
Adjustable Condominium “XIXE Series” Currently on Sale
Adjustable room plan The room plan can be flexibly adjusted to suit the individual life style.
Please direct any inquiries to:XIXE Apartment Gallery 0120-02-9178 Open: 10:00 – 18:00
Closed on Tuesdays and Wednesdays * You can use mobile and PHS phones for calls.
Mo
vab
le c
lose
t
Mo
vab
le c
lose
t
[When used as 2 bed rooms/living room/dining room/kitchen]Child’s room + couple’s bedroom
[When used as 1 bed room/living room/dining room/kitchen]Couple’s room
Can lease Room leases are supported by the Daito Group
35-year whole building leaseNo rental revenue reduction during the period of
vacancy or rent payment delinquency.
Whole building lease rent is fixed for a long-term periodNo rental revenue fluctuation even if
the market rent falls.
Reduction in restoration costOwner’s restoration cost will be reduced
for 35 years.
XIXE Series 1XIXE Shonan Hiratsuka
XIXE Series 2XIXE Machiya
XIXE Series 3XIXE Yachiyo Murakami
A 6-minute walk along Festa Road from Hiratsuka Station on the JR Tokaido Line and Shonan Shinjuku Line
13 minutes direct from Machiya Station to Otemachi Station on the Tokyo Metro Chiyoda Line
A 2-minute walk from Murakami Station on the Toyo Rapid Railway
18
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The Company celebrated its 40th anniversary on June 20, 2014 since its foundation. We owe this to the support of our owners, tenants, shareholders and other stakeholders.
Taking this as an opportunity to express our gratitude to the continued support of our shareholders, increase the attractiveness of our shares to investors, and to encourage medium- to long-term shareholding, we decided to revamp our shareholder benefit plan.
New Shareholder Benefit Plan
100 or more shares
All of 1 through 5 below are available
• �As of March 31 / September 30
• As of March 31
• As of March 31 If shares are held for 1 year or longer
Either A or B below is available
One of A, B or C below is available
A
A
1
2
3
4
5
B
B CTea or water(350 ml X 24 bottles)* Merchandise of a group company Care Partner Co., Ltd.
Shiitake mushroom(500g)* Produce of a group company Daito Farm Co., Ltd.
Gift certificates* Donation to the Ashinaga Fund¥300,000 rebate
on a construction contract* Available for shareholders who
have concluded a construction contract with the Company.
* 1.1% of construction contracts (compared with the normal rate of 1%)
* 55% of one-month rent (compared with the normal rate of 50%)
* Available for shareholders who have concluded a purchase agreement for a condominium unit with the Company.
10% increase in referral awards
Free option facilities granted in a construction contract (up to the value of ¥300,000)
One free ticket for lease brokerage commission
¥300,000 rebate on the purchase of a condominium unit
Shareholders can choose to donate the same amount as indicated in the table to the left instead of receiving gift certificates.
Gift certificates are granted in accordance with the number of shares held as follows100 to 299 shares ¥1,000300 to 499 shares ¥3,000500 to 999 shares ¥5,0001,000 or more shares ¥10,000
Ashinaga Sendai Rainbow House established for the mental care of the children orphaned in the Great East Japan Earthquake* Donated funds will be used for the construction or
operation of the facilities established for the mental care of the children orphaned in the Great East Japan Earthquake.
Free invitation to the showroom in our head office
(For those who are shareholders as of September 30, 2014 onward)
* Available also under the old shareholder benefit plan
In the case of too many applications, invitations will be limited to those who have been chosen by lot.
19
New Shareholder Benefit PlanFor those who are shareholders as of September 30, 2014 onward
Major expansion
011_0360202982606.indd 19 2014/06/27 11:08:09
I. Discount on brokerage commission
If you wish to receive complementary discount tickets for brokerage commission, please contact us (see the contact information below).
II. Gift certificates
Benefit detailsDiscount on brokerage commission for new tenants
Complementary discount ticket are granted as follows:
Complementary discount ticket
Discount on brokerage commission
1 ticket 50% discount2 tickets 100% discount
Number of shares held Gift certificate worth:
100 to 299 shares ¥1,000300 to 499 shares ¥3,000500 to 999 shares ¥5,0001,000 or more shares ¥10,000
Number of shares held
Complementary discount ticket
100 to 999 shares 1 ticket1,000 to 1,999 shares 2 tickets2,000 to 2,999 shares 3 tickets3,000 or more shares 4 tickets
Gift certificates are granted as follows:
• As of March 31
Shareholder benefit plan for those who are shareholders as of March 31, 2014(For those who are shareholders as of March 31, 2014, the following plan is applicable)
Effective period: July 1, 2014 to December 31, 2014
Please direct any inquires to the new shareholder benefit plan
Daito Trust Construction Co., Ltd. Shareholder Service Section, Corporate Planning Division
Tel 03-6718-9068 Fax 03-6718-9069 Inquiries are accepted from 9:30 to 17:00 excluding Saturdays, Sundays, public holidays and company holidays during summer and winter
* Please provide us with your shareholder number, name, address, and telephone number when you contact us. Complementary tickets will be sent to the registered address.
300 or more shares
If shares are held for 3 years or longer
Either A or B below is available
A B50% discount ticket for one-night stay at the Strings by InterContinental Tokyo
50% discount ticket for three-night stay at Le Meridien Kuala Lumpur (Malaysia)
Shinagawa East One Tower (head office building) 26-32 fl.
New Shareholder Benefit Plan
20
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Please refer to us your friends and acquaintances who are seeking land utilization opportunities or leased housing.
Conclusion of a construction contract
Conclusion of a tenancy agreement through the
mediation of the Company
Refer your friends and acquaintances who are seeking land utilization opportunities.
• �Those who are looking for ways to utilize land effectively
• �Those who are interested in leased housing operations
Refer your friends and acquaintances who are seeking leased housing.
• �Those who are looking for a room for their job relocation or marriage
• �Those who are looking for a retail space to start up or expand business
You will receive 1% of the amount of the construction contract
You will receive 50% of the one-month rent
ContactDaito Trust Construction Co., Ltd.Shareholder Service Section, Corporate Planning Division
Tel 03-6718-9068 Fax 03-6718-9069Inquiries are accepted from 9:30 to 17:00 excluding Saturdays, Sundays, public holidays and company holidays during summer and winter
Notes
* Please note that you may not be entitled to receive a referral award if we had already received an inquiry with regard to land utilization or leased housing from the person you referred.
* Please note that you may not be entitled to receive a referral award under circumstances prescribed in the rules of the Company. For more information, please contact the person in charge at the Shareholder Service Section.
* The maximum amount of a referral award is ¥1 million. For the timing and amount of your referral award, please contact the person in charge at the Shareholder Service Section.
* Information provided by you will be used for the purpose of making a proposal to the person you referred and sending a notice of contract execution, etc.
21
Customer Referral Program
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22
[Directors and Audit & Supervisory Board Members]Representative Director and President Naomi KumakiriRepresentative Director and Executive Vice President Hitoshi KadouchiDirector, Senior Executive Officer Akio InadaDirector, Managing Executive Officer Katsuma KobayashiDirector, Managing Executive Officer Shuji KawaiDirector, Executive Officer Kanitsu UchidaDirector, Executive Officer Kei Takeuchi
[Executive Officers]
Senior Executive Officer Koichi Ebihara
Managing Executive Officer Hirosuke Tanimichi
Managing Executive Officer Takeshi Nakagawa
Managing Executive Officer Takuya Ishii
Executive Officer Hideyuki Nakaita
Executive Officer Hiroshi Sugiyama
Executive Officer Masayoshi Tanaka
(As of June 26, 2014)
Officers
Corporation Name Daito Trust Construction Co., Ltd.
Established June 20, 1974
Capital 29,060,991,263 yen
Head Office 2-16-1, Konan, Minato-ku,Tokyo 108-8211 Japan
Branch Offices 223
Lease Brokerage Branch Offices
209
Employees 9,767
Business Activities (1) Design and construction of apartments, condominiums, rental retail buildings, factories, warehouses, and office buildings
(2) Real estate brokerage such as tenant recruiting, building maintenance, and property management including contracting arrangements
(As of March 31, 2014)
Corporate Data
Director (Outside) Yujiro Sasamoto
Director (Outside) Marcus Merner
Director (Outside) Toshiaki YamaguchiStanding Audit & Supervisory Board Member (Outside) Masayasu UnoAudit & Supervisory Board Member (Outside) Hideo HachiyaAudit & Supervisory Board Member (Outside) Kazumitsu FutamiAudit & Supervisory Board Member (Outside) Kazuo Fujimaki
Executive Officer Yukio Daimon
Executive Officer Shoji Yamada
Executive Officer Hiromichi Ono
Executive Officer Sachio Washi
Executive Officer Kazuhiko Saito
Executive Officer Takashi Suzuki
Executive Officer Eiji Okamoto
Executive Officer Yoshito Ikemoto
Executive Officer Kazunori Fukuda
Executive Officer Shuichi Ogawa
Executive Officer Shinichi Marukawa
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The Company’s Stock
DAITO REPORT(April 1, 2013 - March 31, 2014)40th
Fiscal Term
Securities code: 1878
Fiscal year April 1 to March 31General Meeting of Shareholders
June
Record date Ex-rights Date: March 31Year-end dividend: March 31Interim dividend: September 30
Trading unit 100 sharesStock exchange listing Tokyo Stock Exchange (1st Section)
Nagoya Stock Exchange (1st Section)Securities code 1878Transfer agent and special account management institution
1-4-5, Marunouchi, Chiyoda-ku, Tokyo, JapanMitsubishi UFJ Trust and Banking Corporation
Share transfer procedures
Shareholders using a securities company
For more information, please contact the securities company with which you have opened an account.
Shareholders who hold shares recorded in a special account
For more information, please contact Stock Transfer Agency Division, Mitsubishi UFJ Trust and Banking Corporation.
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JapanMitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Division
0120-232-711 Inquiries are accepted from 9:00 to 17:00 excluding Saturdays, Sundays and public holidays
Method of public noticesPublic notices shall be electronically posted on the Company’s website.http://www.kentaku.co.jp/ir/koukoku.htmlHowever, in the case where electronic public notice is not available due to an accident or other unavoidable reasons, a notice shall be published in the Nihon Keizai Shimbun.
Information for Shareholders
Number of shares authorized Number of shares issued Number of shareholders329,541,100 shares 80,610,279 shares 15,521 shareholders
Name of shareholder Number of shares owned (shares)
Shareholding ratio
The Master Trust Bank of Japan, Ltd. (held in trust) 3,520,400 4.42%Japan Trustee Services Bank, Ltd. (held in trust) 3,350,500 4.21%State Street Bank and Trust Company 505225 1,824,100 2.29%Co-op Suppliers’ Stock Holding 1,640,505 2.06%Sumitomo Realty & Development Co., Ltd. 1,606,700 2.02%The Bank Of New York Non-Treaty JASDEC Account 1,483,730 1.86%Japan Trustee Services Bank, Ltd.(Sumitomo Mitsui Trust Bank re-trust account, SMBC employee retirement benefit trust account)
1,474,800 1.85%
Mellon Bank NA as Agent for Its Client Mellon Omnibus US Pension 1,394,991 1.75%Daito Trust Construction Co., Ltd. Employee Shareholders Association 1,211,853 1.52%JP Morgan Chase Bank 380072 1,057,823 1.33%
(Note) Shareholding ratio is calculated after deducting treasury stock (950,224 shares).
Number of shares and number of shareholders
Principal shareholders
(As of March 31, 2014)Composition of shareholders
Daito Trust Construction Co., Ltd.
950,224 shares
Domestic corporations
4,632,409 shares(5.75%)
(8.88%)
(23.49%) (56.77%)
(1.18%)
(3.93%)
Foreign corporations
45,766,391 shares
Financial institutions
18,935,867 shares
Individuals and others
7,156,998 shares
Securities firms
3,168,390 shares
Head office 2-16-1, Konan, Minato-ku, Tokyo 108-8211, Japan TEL: +81-3-6718-9111
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