DAIKYO INCORPORATED : 4Q FACT SHEETS

FACT SHEETS
For the Year Ended March 31, 2017
(Unaudited)
Fact Sheets for the year ended March 31, 2017	････ 1
Reference Data	････ 6
DAIKYO INCORPORATED
May 15, 2017

DAIKYO INCORPORATED

May 15, 2017

Forecast
Year ended Mar 31		2013	2014	2015	2016	2017	Year-on-year	2018
Net sales		302,610	333,813	317,154	334,853	325,360	△ 9,492	340,000
Gross profit		48,635	49,388	48,209	48,042	49,591	1,548
Selling, general and administrative expenses [SG&A]		26,533	32,478	30,084	29,723	29,067	△ 656
Operating income Operating margin		22,101 7.3%	16,910 5.1%	18,124 5.7%	18,318 5.5%	20,523 6.3%	2,204 0.8pp	19,000 5.6%
Other income		701	696	484	547	486	△ 60
Interest income	171	97	70	98	41	△ 56
Dividend income	21	20	20	24	30	6
Other expenses		2,532	1,959	1,906	1,772	1,041	△ 730
Interest expense	1,444	912	665	475	271	△ 204
Ordinary income Ordinary income to net sales ratio		20,270 6.7%	15,646 4.7%	16,703 5.3%	17,093 5.1%	19,967 6.1%	2,874 1.0pp	18,000 5.3%
Extraordinary income		605	11,694	104	63	38	△ 25
Extraordinary loss		765	2,597	187	153	593	440
Income before income taxes		20,111	24,744	16,619	17,003	19,412	2,409
Income taxes - current		2,562	7,424	2,835	4,507	4,671	163
Income taxes - deferred		2,011	△ 3,473	1,627	△ 132	696	829
Net income		15,537	20,792	12,155	12,628	14,044	1,416
Net income attributable to noncontrolling interests		2	2	1	-	-	-
Profit attributable to owners of parent		15,535	20,790	12,154	12,628	14,044	1,416	12,000

Consolidated Statements of Operations

(Millions of yen)

Retroactive treatment has been applied to the figures displayed for the year ended March 31, 2014.

Consolidated Financial Position (Millions ofyen)

As of Mar 31			2013	2014	2015	2016	2017	Change from 2016
Current assets			236,152	246,755	275,319	226,557	235,913	9,355
Cash and deposits		116,033	96,622	96,540	87,343	89,736	2,392
Inventories		94,559	101,421	113,678	104,972	115,990	11,017
Real estate for sale	20,836	15,018	39,609	38,909	45,885	6,975
Real estate for sale in progress	57,021	78,611	60,628	48,227	43,622	△ 4,605
Real estate for development projects	16,701	7,790	13,440	17,834	26,482	8,647
Others		25,559	48,711	65,100	34,241	30,187	△ 4,054
Fixed assets			39,289	51,057	49,290	48,036	41,986	△ 6,049
Property and equipment		15,878	17,966	17,826	18,480	14,516	△ 3,964
Others		23,411	33,091	31,463	29,555	27,469	△ 2,085
Total assets			275,442	297,812	324,610	274,594	277,899	3,305
Liabilities			144,127	152,826	168,121	108,503	100,036	△ 8,466
Notes and accounts payable		33,949	30,103	36,180	17,767	20,283	2,516
Interest-bearing debt		69,164	63,646	57,324	38,484	28,930	△ 9,554
Others		41,014	59,076	74,616	52,251	50,821	△ 1,429
Net assets			131,314	144,986	156,488	166,090	177,863	11,772
Shareholders' equity		131,142	145,785	156,001	166,022	177,461	11,439
Valuation and translation adjustments		147	△ 826	487	68	401	333
Noncontrolling interests		24	27	-	-	-	-
Total liabilities and net assets			275,442	297,812	324,610	274,594	277,899	3,305

Retroactive treatment has been applied to the figures displayed for as of March 31, 2014.

Shareholders' equity ratio*

47.7%

48.7%

48.2%

60.5%

64.0%

3.5pp

* Shareholders' equity ratio = (net assets - share subscription rights - noncontrolling interests)/ total assets

Interest-bearing Debt (Millions of yen)

As of Mar 31	2013	2014	2015	2016	2017	Change from 2016
Short-term borrowings	19,903	20,166	22,417	10,110	7,931	△ 2,179
Bonds due within one year	-	-	5,000	-	2,000	2,000
Bonds	7,000	7,000	2,000	2,000	-	△ 2,000
Long-term borrowings	42,180	36,417	27,870	26,361	18,987	△ 7,374
Other interest-bearing debt	79	62	37	13	12	△ 1
Total interest-bearing debt	69,164	63,646	57,324	38,484	28,930	△ 9,554
Debt to equity ratio*	0.53	0.44	0.37	0.23	0.16	△ 0.07

* Debt to equity ratio = interest-bearing debt/ (net assets - share subscription rights - noncontrolling interests)

Fact Sheets

1 for the year ended March 31, 2017

DAIKYO INCORPORATED

May 15, 2017

Assets, Capital Expenditures, Depreciation (Millions of yen)

As of Mar 31	2013	2014	2015	2016	2017	Change from 2016
Assets	275,442	297,812	324,610	274,594	277,914	3,320
Capital expenditures	5,641	2,020	1,336	1,691	654	△ 1,037
Depreciation	851	1,595	1,811	1,885	1,767	△ 117

Capital investment includes intangible fixed assets.

Retroactive treatment has been applied to the figures displayed for as of March 31, 2014.

Consolidated Statements of Cash Flows (Millions of yen)

Year ended Mar 31	2013	2014	2015	2016	2017	Year-on-year
Net cash provided by (used in) operating activities	46,523	20,220	20,079	△ 11,330	15,229	26,559
Net cash provided by (used in) investing activities	△ 6,586	△ 25,560	△ 11,034	18,683	△ 1,606	△ 20,289
Net cash provided by (used in) financing activities	△ 24,905	△ 14,069	△ 8,994	△ 21,500	△ 12,217	9,282
Effect of exchange rate changes on cash and cash equivalents	19	59	61	△ 49	△ 12	36
Cash and cash equivalents at end of year	115,706	96,413	96,526	82,329	83,722	1,392

Financial Data (Millions of yen)

As of Mar 31	2013	2014	2015	2016	2017
EBITDA	23,874	19,568	20,999	21,268	23,354
Net income per share (yen)	33.25	43.32	14.37	14.94	16.63
Fully diluted net income per share (yen)	18.24	24.42	14.27	14.83	16.49
Ordinary income to net sales ratio	6.7%	4.7%	5.3%	5.1%	6.1%
ROE	12.5%	15.3%	8.0%	7.8%	8.2%
ROA	7.8%	5.9%	5.8%	6.1%	7.4%
Shareholders' equity ratio	47.7%	48.7%	48.2%	60.5%	64.0%
Net assets per share (yen)	214.99	167.69	181.42	192.86	206.88
ICR (times)	32.9	21.8	30.0	-	55.4

Retroactive treatment has been applied to the figures displayed for as of March 31, 2014.

* EBITDA = operating income + depreciation + depreciation for goodwill

ROE = net income/ average of (net assets - share subscription rights - noncontrolling interests) at the beginning and at the end of the period ROA = operating income / average of total assets at the beginning and at the end of the period

Shareholders' equity ratio = (net assets - share subscription rights - noncontrolling interests)/ total assets ICR = operating cash flow / interest payments

Fact Sheets

2 for the year ended March 31, 2017

Results by Segment (Millions ofyen)

DAIKYO INCORPORATED

Forecast
2018
177,000
11,300
65,000
3,900
102,000
7,100
△ 4,000
△ 3,300
340,000
19,000

May 15, 2017

Year ended Mar 31		2013	2014	2015	2016	2017	Year-on-year
Real Estate Management	Net sales	122,620	158,257	151,246	162,821	163,339	518
	Operating income	8,317	9,724	8,218	9,664	10,684	1,020
Real Estate Brokerage	Net sales	23,183	36,632	48,492	54,904	62,249	7,345
	Operating income	1,223	2,388	2,938	3,233	3,449	216
Real Estate Development and Sales	Net sales	158,899	142,765	120,712	122,211	104,684	△ 17,526
	Operating income	14,923	7,863	10,121	8,667	8,987	320
Eliminations or Corporate	Net sales	△ 2,092	△ 3,841	△ 3,298	△ 5,083	△ 4,913	170
	Operating income	△ 2,362	△ 3,065	△ 3,154	△ 3,246	△ 2,598	648
Total	Net sales	302,610	333,813	317,154	334,853	325,360	△ 9,492
	Operating income	22,101	16,910	18,124	18,318	20,523	2,204

Retroactive treatment has been applied to the figures displayed for the year ended March 31, 2014.

In accordance with the change in segment classification, the above change has been reflected in the figures in the year ended March 31, 2016.

Real Estate Management Breakdown of Net Sales (Millions of yen)

Year ended Mar 31	2013	2014	2015	2016	2017	Year-on-year
Condominium management	44,285	52,925	53,198	54,062	54,067	5
Building and facility management	25,757	27,199	28,478	30,030	31,011	981
Contract work	46,923	67,972	61,273	69,609	68,918	△ 690
Other	5,654	10,160	8,296	9,120	9,342	222
Total	122,620	158,257	151,246	162,821	163,339	518

In accordance with the change in segment classification, the above change has been reflected in the figures in the year ended March 31, 2016.

Number of Condominium Units Managed

As of Mar 31	2013	2014	2015	2016	2017	Change from 2016
Number of condominium units managed	443,471	516,658	526,131	530,095	531,957	1,862
Number of condominium associations	8,012	9,305	9,436	9,510	9,536	26

Sales of Contract Work (Millions of yen)

Year ended Mar 31		2013	2014	2015	2016	2017	Year-on-year
Contract work		46,923	67,972	61,273	69,609	68,918	△ 690
Condominium-related	33,625	39,177	37,544	37,862	46,328	8,465
Building and facility-related	8,674	22,445	22,618	30,325	20,867	△ 9,458
Others	4,623	6,349	1,110	1,421	1,722	301

In accordance with the change in segment classification, the above change has been reflected in the figures in the year ended March 31, 2016.

Volume of Contract Work Orders (Millions of yen)

As of Mar 31		2013	2014	2015	2016	2017	Change from 2016
Volume of contract work orders		15,753	23,666	30,492	25,050	28,339	3,289
Condominium-related	12,731	16,378	16,097	19,020	20,344	1,323
Building and facility-related	2,333	6,607	14,299	5,915	7,847	1,931
Others	688	680	95	113	148	34

In accordance with the change in segment classification, the above change has been reflected in the figures as of March 31, 2016.

Fact Sheets

3 for the year ended March 31, 2017