February 5, 2016
Name of Listed Company: Daiwa House Industry Co., Ltd. Code No.: 1925
URL: http://www.daiwahouse.com/English/ Listed Exchanges: First section of the Tokyo Stock Exchange Representative: Naotake Ohno, President and COO
Contact: Yuji Yamada, Executive Officer and General Manager, IR Department Phone No.: 06-6342-1400
E-mail to: dh.ir.communications@daiwahouse.jp
Scheduled Date of Filing Quarterly Securities Report: February 9, 2016 Scheduled Date of Commencement of Dividend Payment: -
Supplemental documents for the financial results provided: Yes
Results briefing for the period under review provided: Yes (for institutional investors and securities analysts)
(Amounts below one million yen are omitted)
-
Consolidated Results of Operation for the First Nine Months Ended December 31, 2015 (From April 1, 2015 to December 31, 2015)
-
Consolidated Business Results (% figures represent year-on-year change)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Nine months ended:
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
December 31, 2015
2,242,336
13.5
170,062
46.5
170,826
43.0
119,575
40.2
December 31, 2014
1,976,032
4.2
116,101
11.2
119,423
11.1
85,281
38.6
Note: Comprehensive income: Nine months ended December 31, 2015: 118,856 million yen (4.9%)
Nine months ended December 31, 2014: 113,251 million yen (42.9%)
Basic net income per share
Diluted net income per share
Nine months ended:
Yen
Yen
December 31, 2015
180.71
180.05
December 31, 2014
129.39
―
-
Consolidated Financial Conditions
Total assets
Net assets
Net assets ratio
As of
Millions of yen
Millions of yen
%
December 31, 2015
3,215,982
1,204,641
37.2
March 31, 2015
3,021,007
1,112,817
36.6
(Reference) Net assets ratio = (Net assets - Minority interests)/Total assets×100
(Net assets - Minority interests) is as follows. December 31, 2015: 1,194,920 million yen; March 31, 2015: 1,105,628 million yen
-
Dividends
Dividend per share
End of 1st quarter (June 30)
End of 2nd quarter (Sept. 30)
End of 3rd quarter (Dec. 31)
Fiscal year-end (March 31)
Annual
Fiscal year ended March 31, 2015
Fiscal year ending March 31, 2016
Yen
-
-
Yen
25.00
35.00
Yen
-
-
Yen
35.00
Yen
60.00
Fiscal year ending March 31, 2016 (forecasts)
45.00
80.00
Note: Revision made to the dividend forecast announcement on November 6, 2015: None
Cash dividends (forecasts) for the fiscal year ending March 31, 2016 is comprised of ¥35.00 per share as an ordinary dividend and ¥10.00 per share as the 60th anniversary commemorative dividend.
-
Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2016 (From April 1, 2015 to March 31, 2016)
(% figures represent year-on-year change)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Basic net income per share
Fiscal year ending
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
Yen
March 31, 2016
3,180,000
13.1
240,000
33.1
228,000
12.5
154,000
31.5
232.50
Note: Revision made to the business forecast announcement on November 6, 2015: None
Notes: - Changes in Significant Subsidiaries during the Period under Review (This refers to changes in specified subsidiaries associated with changes in the scope of consolidation): None
- Application of Accounting Methods Unique to the Preparation of the Quarterly Consolidated Financial Statements: None
-
Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective Restatement
- Changes in accounting policies applied due to amendment of accounting standards: Yes
- Changes in accounting policies due to reasons other than 1): None
- Changes in accounting estimates: None
- Retrospective restatement: None
-
Number of Issued and Outstanding Shares (Common Stock)
-
Number of shares at the end of the period (including treasury stock)
As of December 31, 2015 666,238,205 shares As of March 31, 2015 660,421,851 shares
-
Number of treasury stock at the end of the period
As of December 31, 2015 1,627,835 shares As of March 31, 2015 1,619,741 shares
- Average number of shares during the period
-
Presentation of implementing the quarterly review procedures
As of the time when the quarterly financial results are disclosed, the Group have not completed the reviewing (checking) procedures for quarterly consolidated financial statements as laid down by the Financial Instruments and Exchange Law.
- Remarks on appropriate use of forecasted results of operation and other special matters (Notes regarding forward-looking statements)
Qualitative Information regarding Consolidated Results for the First Nine Months under Review 4
Earnings Results 4
Financial Conditions 4
Earnings Forecasts 5
Summary Information (Notes) 5
(1) Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective
Restatement 5
Consolidated Financial Statements 6
Consolidated Balance Sheets 6
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 8
Consolidated Statements of Income 8
Consolidated Statements of Comprehensive Income 9
Notes 10
-
Qualitative Information regarding Consolidated Results for the First Nine Months under Review
-
Earnings Results
The Japanese economy continued to experience a gradual recovery throughout the first nine months of the fiscal year ending March 2016. Government economic policies and lower oil prices have played a part in improved employment environment and higher payrolls. However, the deceleration of the Chinese economy has caused a downward swing in exports and certain production, indicating some weakness.
The housing industry has been experiencing inconsistent performance, repeating an alternating cycle of year-on-year growth and decline in new housing starts in the months since September
2015, despite continued signs of recovery from the lull following the surge in demand in advance of the April 2014 consumption tax rate increase. Although the general construction market has experienced 11 consecutive months of lower year-on-year results since February 2015 for public works construction orders, private construction orders have shown 15 straight months of higher
year-on-year performance since October 2014, owing to increased corporate capital investments caused by a recovery in the domestic manufacturing industry.
In light of these circumstances, the Daiwa House Group expanded its investment plan from the original plan in our Fourth Medium-Term Management Plan (ending March 2016). The Group is actively engaged in real estate development investment and other projects to grow earnings in our core domestic and other businesses.
As another measure toward stronger competitive ability, Daiwa LifeNext Co., Ltd. and Daiwa Service Co., Ltd., both companies dealing mainly in the condominium management business, merged in April 2015. Further, Fujita Corporation and Daiwa Odakyu Construction Co., Ltd. merged in October 2015, serving as yet another measure toward building a strong foundation for growth.
As a result, net sales for the first nine months of the fiscal year ending March 2016 was 2,242,336 million yen (+13.5% year on year). Ordinary income was 170,826 million yen (+43.0% year on year), while net income attributable to owners of the parent amounted to 119,575 million yen (+40.2% year on year).
- Financial Conditions
-
Summary Information (Notes)
-
Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective Restatement
Change in Accounting Policies
(Application of Accounting Standard for Business Combinations)
Beginning with the first three months of the consolidated fiscal year under review, the Company has adopted the Accounting Standard for Business Combinations (ASBJ Statement No. 21, September 13, 2013), the Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013), and the Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September 13, 2013). Under these changes, the Company now records differences due to equity changes in subsidiaries subject to ongoing control to capital surplus. In addition, the Company now records acquisition-related costs as costs in the consolidated fiscal year in which they occurred. With respect to business combinations occurring after the beginning of the first three months of the consolidated fiscal year under review, the Company now revises acquisition cost allocation based on provisional accounting estimates, reflecting these costs in the quarterly consolidated financial statements for the date on which the business combination occurred.
The Company has changed its presentation with respect to quarterly net income, as well as changing the presentation from "minority interests" to "non-controlling interests." To reflect these changes in presentation, the Company has reclassified its financial statements for the first nine months of the prior consolidated fiscal year and its financial statements for the prior consolidated fiscal year.
In accordance with the transitional treatment based on the provisions of section 58-2 (4) of the Accounting Standard for Business Combinations, section 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and section 57-4 (4) of the Accounting Standard for Business Divestitures, the effects of the application of these changes have been applied as of the beginning of the first three months of the consolidated fiscal year under review and for periods thereafter.
As a result, the Company does not expect this transaction to have a material impact on operating income, ordinary income, or income before income taxes for the first nine months of the consolidated fiscal year under review.
- Consolidated Financial Statements
-
Consolidated Balance Sheets
Assets
Current assets
(Millions of yen) As of March 31, 2015 As of December 31, 2015
Cash and deposits 238,776 185,385
Notes and accounts receivable from completed construction contracts and other
244,045 291,577
Short-term investment securities 16 16
Costs on uncompleted construction contracts
31,778 39,565
Real estate for sale 423,869 449,207
Real estate for sale in process
114,915 145,263
Land for development 647 647
Merchandise and finished goods
14,984 16,105
Work in process 6,709 10,496
Raw materials and supplies
5,785 6,874
Other 192,067 211,140
Allowance for doubtful accounts
(3,347) (4,741)
Total current assets 1,270,247 1,351,540
Noncurrent assets
Property, plant and equipment
Buildings and structures
782,817
821,346
Accumulated depreciation
(365,178)
(386,425)
Buildings and structures, net
417,638
434,921
Land
566,139
622,004
Other
199,303
216,297
Accumulated depreciation
(112,960)
(116,468)
Other, net
86,342
99,829
Total property, plant and equipment
1,070,121
1,156,755
Intangible assets
Goodwill
48,136
55,221
Other
32,441
32,112
Total intangible assets
80,578
87,334
Investments and other assets
Investment securities
252,982
274,055
Lease and guarantee deposits
199,562
202,286
Other
150,944
147,726
Allowance for doubtful accounts
(3,430)
(3,715)
Total investments and other assets
600,059
620,353
Total noncurrent assets
1,750,759
1,864,442
Total assets
3,021,007
3,215,982
Liabilities
Current liabilities
(Millions of yen) As of March 31, 2015 As of December 31, 2015
Notes and accounts payable for construction contracts and other
309,261
303,520
Short-term loans payable
70,892
85,476
Current portion of bonds payable
110
10,083
Current portion of long-term loans payable
34,803
38,237
Commercial papers
72,000
120,000
Income taxes payable
27,415
24,974
Advances received
39,732
50,133
Advances received on uncompleted construction contracts
90,487
114,574
Provision for bonuses
39,249
23,528
Provision for warranties for completed construction
6,819
6,820
Asset retirement obligations
1,617
1,640
Other
223,713
231,962
Total current liabilities
916,104
1,010,953
Noncurrent liabilities
Bonds payable
110,595
100,054
Long-term loans payable
275,128
290,482
Long-term lease and guarantee deposited
241,355
245,946
Net defined benefit liability
179,470
184,556
Asset retirement obligations
29,434
31,715
Other
156,100
147,632
Total noncurrent liabilities
992,085
1,000,388
Total liabilities
1,908,190
2,011,341
Net assets
Shareholders' equity
Capital stock
161,699
161,699
Capital surplus
294,632
311,226
Retained earnings
534,639
607,656
Treasury stock
(1,965)
(1,991)
Total shareholders' equity
989,005
1,078,590
Accumulated other comprehensive income
Valuation difference on available-for-sale
securities
84,678
89,385
Deferred gains or losses on hedges
84 (9)
Revaluation reserve for land (457) (217)
Foreign currency translation adjustment
32,318 27,170
Total accumulated other comprehensive income 116,623 116,329
Non-controlling interests 7,149 9,682
Subscription rights to shares 38 38
Total net assets
Total liabilities and net assets
1,112,817 1,204,641
3,021,007 3,215,982
-
Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)
(Millions of yen)
Nine months ended
December 31, 2014
(From April 1, 2014
to December 31, 2014)
Nine months ended
December 31, 2015
(From April 1, 2015
to December 31, 2015)
Net sales
1,976,032
2,242,336
Cost of sales
1,595,613
1,786,899
Gross profit
380,419
455,437
Selling, general and administrative expenses
264,318
285,375
Operating income
116,101
170,062
Non-operating income
Interest income
2,926
2,719
Dividends income
2,498
2,910
Equity in earnings of affiliates
352
-
Miscellaneous income
5,862
3,916
Total non-operating income
11,641
9,546
Non-operating expenses
Interest expenses
3,840
3,714
Taxes and dues
808
1,534
Equity in losses of affiliates
-
415
Miscellaneous expenses
3,669
3,117
Total non-operating expenses
8,318
8,781
Ordinary income
119,423
170,826
Extraordinary income
Gain on sales of noncurrent assets
1,222
545
Gain on sales of investment securities
3,362
4,363
Gain on revision of retirement benefit plan
9,394
-
Gain on step acquisitions
5
4,147
Other
8
-
Total extraordinary income
13,993
9,056
Extraordinary losses
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets Impairment loss
57 41
1,538 620
210 346
Loss on sales of investment securities - 116
Loss on valuation of investment securities Merger expenses
69 187
- 826
Other 64 23
Total extraordinary losses Income before income taxes Income taxes-current
Income taxes-deferred Total income taxes
1,940 2,162
131,477 177,720
30,998 53,656
15,688 4,401
46,686 58,057
Net income 84,790 119,662
Net income (loss) attributable to non-controlling interests Net income attributable to owners of the parent
(490) 87
85,281 119,575
(Consolidated Statements of Comprehensive Income)Net income
Other comprehensive income
(Millions of yen) Nine months ended Nine months ended December 31, 2014 December 31, 2015
(From April 1, 2014 (From April 1, 2015
to December 31, 2014) to December 31, 2015)
84,790 119,662
Valuation difference on available-for-sale securities 26,152 5,042 Deferred gains or losses on hedges 93 (93)
Foreign currency translation adjustment 598 (4,026)
1,616
(1,728)
28,460
(806)
113,251
118,856
113,731
119,042
(480)
(185)
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income Comprehensive income (Comprehensive income attributable to)
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-coutrolling interests
- Notes
Nine months ended
December 31, 2015 661,706,731 shares
Nine months ended
December 31, 2014 659,079,180 shares
Consolidated earnings forecasts are based on assumptions in light of the information available as of the date of announcement of this material and the factors of uncertainty that may possibly impact the future results of operation. These statements do not mean that the Company pledges to realize such statements. Actual results may differ significantly from those presented herein as a consequence of numerous factors such as the financial market, economic conditions, competitor situations and fluctuations in land prices.
Please refer to the section of "1. Qualitative Information regarding Consolidated Results for the First Nine Months under Review (3) Earnings Forecasts" of "the Attached Material" on page 5 for the suppositions that form the assumptions for earnings forecasts.
(Obtaining supplementary explanatory materials)The Company plans to hold a briefing for institutional investors and securities analysts on February 5, 2016. Relevant financial statements to be handed out at the briefing will be posted on our official website at the same time.
Contents of the Attached MaterialNotes on Premise of Going Concern 10
Notes on Significant Changes in the Amount of Shareholders' Equity 10
Total assets as of the end of the consolidated nine-month reporting period was 3,215,982 million yen, an increase of 194,975 million yen compared to the 3,021,007 million yen in total assets at the end of the prior consolidated fiscal year. This result was mainly due to an increase in property, plant, and equipment via acquisitions of investment properties, despite a decrease in cash and deposits.
Total liabilities as of the end of the consolidated nine-month reporting period amounted to 2,011,341 million yen, representing a 103,151 million yen increase compared to the 1,908,190 million yen in total liabilities at the end of the prior consolidated fiscal year. This result was mainly due to the issuance of commercial paper and an increase in advances received on uncompleted construction contracts.
Total net assets as of the end of the consolidated nine-month reporting period amounted to 1,204,641 million yen, representing a 91,824 million yen increase compared to 1,112,817 million yen in total net assets at the end of the prior consolidated fiscal year. This result was mainly due to recording of net income attributable to owners of the parent of 119,575 million yen, offset in part by payments of dividends related to the prior consolidated fiscal year.
(3) Earnings ForecastsThe Company has not revised consolidated earnings forecasts for the fiscal year ending March 2016 subsequent to the forecasts in Announcement of Dividend Payment (Interim Dividend) and Revision of Earnings and Dividend Forecast for the Fiscal Year Ending March 2016, as published on November 6, 2015.
No items to report.
No items to report.
Disclaimer:
This English translation has been prepared for general reference purposes only. The Company shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese text released on February 5, 2016.
Daiwa House Industry Co. Ltd. issued this content on 05 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 05 February 2016 05:39:17 UTC
Original Document: http://www.daiwahouse.com/English/ir/financial_results/pdf/DaiwaHouseFResultFY2015-3Q.pdf