Results for Q3, FY March 2019
Takamatsu Construction Group Co.,Ltd.
Securities Code ：1762
February 13, 2019

To our shareholders:If you wish to exchange further information with us,
please do not hesitate to contact us at…
E-mail : ir@takamatsu-const.co.jp
Phone : Hiro Izutsu, IR, Takamatsu Construction Group Co.,Ltd.
81-(0)80-5773-9637

Results for Q3, FY 2019 March (Consolidated)
1. Orders：
2. Revenue：＋17.3% vs previous Q3. Record high Q3.
△0.9% vs previous Q3, mainly due to Takamatsu Corp’s delays of construction start-up
and procurement.
3. Op. Income： Gross profit decreased due to the above, plus Asunaro Aoki’s shortfall of gross profit %
caused by backrush of previous year’s highly profitable architecture items.
Decrease of gross profit as well as increase of SG&A resulted in △33.3% operating income
shortfall vs. previous year. Shortfall vs. previous year for ordinary income and net earnings
were △33.1% and △33.0%, respectively.
Unit : Billion JPY
Item (In Billion JPY)
FY2018/Mar Q3
FY2019/Mar Q3+/- （％）
Orders

185.9

218.0＋17.3%

Revenue

176.5

174.8△0.9%

Gross Profit（% vs Revenue）

23.6

22.4（12.9%）△4.7%

5.9（3.4%）△33.3%

5.9（3.4%）△33.1%

3.2（1.8%）△33.0%

Operating Income（% vs Revenue）
Ordinary Income（% vs Revenue）
Net earnings attributable to controlling interest（% vs Revenue）（13.4%）

8.9（5.1%）

8.9（5.1%）

4.7（2.7%）

1©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

By-Segment・By-Group Split (Consolidated)
1. Orders increased by 17.3% to 218.0 BJPY. Architecture grew significantly vs last year due to strong Asunaro Aoki Gr.(large size apartments and PFI),
while civil engineering came close to previous Q3.
2. Revenue was 174.8BJPY, shortfall of △0.9% vs previous Q3. Civil engineering +0.6%, architecture △7.7% vs. previous Q3. Takamatsu G grew by +1.7%
while Asunaro Aoki G was △2.8% due to offset of increased civil engineering and decreased architecture.
3. Op. income was 5.9BJPY, shortfall of 2.9BJPY vs. previous Q3, out of which, shortfall of Asunaro Aoki G was 2.3BJPY (Architecture △0.8BJPY,civil engineering △1.0BJPY, others △0.5BJPY).

M’s

65.3 ＋1.7%（64.2）

123.4 ＋9.9%（112.2）109.6 △2.8%（112.8）

3.4 △17.5%（4.1）

3.2 △41.2%
（5.5）

79.5
3.9
84.4（84.4）（79.0） （4.9）+0.0% +0.6% △21.1%

116.8
78.5
3.6（89.0）（85.1） （5.5）+31.1% △7.7% △34.7%

16.8
16.8
1.0
73.8
（12.4）（12.4） （0.8）
62.9
1.5+35.5% +35.5% +31.3%
218.0+17.3%（185.9）Real Estate※Order（BJPY）※Revenue（BJPY）※Op. Income（BJPY）

Orders Revenue Op.Income
18/12
18/12
18/12
(17/12)(17/12) (17/12)

Architecture

22.7
23.3
0.2

Asunaro Aoki Construction

Mirai
Construction

Aoki
MarineTokoGeotech

AsunaroRoad

Niigata
Mirai

ShimadaGumi

Mibu
Corporation

18/12(17/12)

94.7 ＋28.2%（73.8）

Nakamura
Shaji

Op.Income

Kongo
Gumi

18/12(17/12)

JP Home

Revenue

Suminoe
Kogei

18/12(17/12)

Takamatsu
Estate（ Tokyo）
Takamatsu
Estate（ Osaka）

OrdersTakamatsu
Techno Service(Tokyo)
Takamatsu
Techno Service(Osaka)

Takamatsu
CorpU T
S C
A G

70.2
43.7
2.0

18.5
16.1
1.1

Civil Engineering

Takamatsu Construction Group
Asunaro Aoki Group
Takamatsu Group

174.8 △0.9%（176.5）5.9 △33.3%（8.9）

Unit: Billion yen. The sum of Op.Income of each segments doesn’t match with the total due to admin costs.

©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

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By-Group Orders, Revenue and Operating Income (Consolidated)
1. Orders ： Record high Q3 order. Both Takamatsu G and Asunaro Aoki G increased vs previous Q3.
2. Revenue ： Slight shorfall vs previous Q3. Growth of Takamatsu G is due to M&A of Mibu Corporation, without Mibu,Takamatsu G also showed shortfall vs previous Q3. Asunaro Aoki G showed shortfall vs previous Q3.
3. Op.Income ： Shortfall of △2.97BJPY vs previous Q3. Takamatsu G △0.72BJPY, Asunaro Aoki G △2.30BJPY.
Shortfall of △1.7BJPY vs plan of 7.6BJPY. Takamatsu G △0.9BJPY, Asunaro Aoki G △0.9BJPY.
4. Op.Income % ： 3.4%, shortfall vs plan of 4.1%。Shortfall of 1.7pt vs previous Q3 of 5.1%.

Q3, 2018/Mar FY Actual
6% 2500250
5.1%
Orders／Revenue
5% （BJPY）

Op.Income %2004% 2000
185.9
Takamatsu Gr.
3%1500 73.8
2% 15050050Orders

218.0

Revenue
Plan

64.2

8.9

94.7

3.4%

Op.Income

65.3

Op.Income（BJPY）

12174.8

70.7

154.1%（Plan）

183.2 Actual

176.5
642

Plan

7.6

4.1

1000
100
Asunaro Aoki
Gr.

Q3, 2019/Mar FY Actual

9Actual

5.9 6

4.3

112.2

123.4

112.8
5.500
単位：億円。

3.4112.5 109.6

34.1

3.20

管理部門費・連結調整等があり、営業利益のグループごとの合算値は全社合計と一致しない。

©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

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Explanation of Shortfall of Operating Income vs. Last Year (Consolidated)
1. Operating income decreased by 2.97BJPY, from previous year’s 8.94BJPY to 5.96BJPY.
2. Gross profit decreased by 1.1BJPY accompanied by revenue decrease of 0.9% (1.6BJPY).
3. Takamatsu G’s gross profit increased by 0.54BJPY. Although Takamatsu UNconsolidated’s GP decreased both in terms of revenue
variance as well as GP% variance, Takamatsu G increased its GP due mainly to Mibu that entered the Group through M&A.
4. Asunaro Aoki G’s GP decreased by 1.65BJPY. Asunaro Aoki UNconsolidated decreased its GP by 0.91BJPY due to backrush of previousyear’s highly profitable architectures. Concerning 0.74BJPY shortfall of AAG GP variance of “other companies”, most is from shortfallof Mirai Construction vs previous year.
5. SG&A increased by 1.87BJPY. Out of which….
→SG&A of Mibu and TCG USA was 0.99BJPY, both new to the Group from this fiscal year. Excluding the two companies,
the increase was 0.88BJPY vs previous year.
→SG&A increase of Takamatsu G (excl. Mibu) = 0.36BJPY, of which, Takamatsu UNconsolidated = 0.32BJPY, of which 0.48BJPY was personnel.
→SG&A increase of Asunatro Aoki G = 0.64BJPY, of which, Asunaro Aoki UNconsolidated was 0.42BJPY, of which, 3.0BJPY was personnel.
9.5

0.57

9.0
8.5

Unit : Billion JPY

△0.75

1.08

0.89

△

8.0

0.16

△△0.74

0.22

△

TK

7.5

TK(Non(Nonconsol.) consol.)GP%
Rev.
variance variance7.0
6.5Mibu
GP

TKG

5.5

8.94

Last Q3Op.Income(=TKG)

AAG

0.01
△(Non(NonGPGPconsol.)consol.)varianceofvariance ofGP%
Rev.
other
othercompaniesvariance variance companies+0.54
Takamatsu Group

6.0AAAA△1.65

0.90
△0.36

12.70.64△△+0.01

Mibu TKG AAG
Asunaro Aoki Group
Others (TKG) （Excl.Mibu）(=AAG)△1.10

Gross Profit Variance

△0.03
TCG
others

1.87

SG&A Variance

5.96

Current Q3
Op.Income©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

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By-Group・By-Quarter Revenue & Op.Income Outlook (Consolidated)
1. Concerning Q3, both Takamatsu G and Asunaro Aoki G showed shorfall vs previous year for revenue and op. income.
2. Takamatsu UNconsolidated’s delays of construction start-up and materials procurement were the main reasons of revenue shortfall.
3. Q3 op. income showed significant shortfall vs plan due to GP shortfall and SG&A increase.
4. In Q4, we foresee significant improvement of revenue and operating income due to planned completion of many constructions.
5. However, we need to revise our annual op.income forecast of 15BJPY to 13BJPY, resulting in shortfall vs previous op.income of13.6BJPY.

100

Q1

FY 2018/3
ActualQ3

Q2
FY 2019/3
Actual

FY 2018/3
ActualFY 2019/3
Actual

FY 2019/3
FY 2018/3
ActualActual（Left = Q2 Plan）

Orders／Revenue（BJPY）

Revenue

Revenue
Revenue

20
Asunaro Aoki
Gr.

059.4

54.1

52.5

Takamatsu Gr.

40

Right=Q3Plan
Red=Full year Plan）

10268.0→260.0Op.Income（BJPY）

3.4

Op.
Income

1.9
1.1
1.0

60.1

33.6

8

38.6

0.8
0.8
0.2

36.9
2.2

60.5

92.3

Op. 27027.0
22.7 Income 21.5

3.5

1.3
1.7

28.0

13.6

41.8

1.5 42.0

2.2

39.0

2.3
1.2

2.2

8.3→7.7

40.3 42.7

4.6

2.9

44.5

7.62.2

1.3

2.04

157.0
→152.0

153.4

40.66

4.0 4.3

4.1

7.0

2.7

1.4

84.8
Revenue
15.0→13.0 8
245.1 111.0
7.4
7.1
68.5 Op. →108.0
Income69.0

64.5

20.9 Op.
23.2
Income

20.5

20.5

32.2

(Left=Q2Plan

85.1

8060

FY 2018/3
Actual（Purple =Full year）

Q4 FY 2019/3

42.3

7.7→6.3

2

3.05

3.6

Unit : BJPY. Op.Income #s inside bars don’t match with the total due to admin (TCG unconsolidated)costs.

©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

05

By-Group Orders, Revenue and Operating Income and Its Outlook(Annual & Consolidated)
1. Orders continue to be tight, previous forecast of 280BJPY will be raised to 300BJPY.
Takamatsu G forecast raised from 120BJPY to 136BJPY.
2. Revenue forecast will be lowered from previous forecast of 268BJPY to 260BJPY centering around Takamatsu.
3. Op.income will be lowered from previous 15BJPY to 13BJPY due to Q3 shortfall.
→ Takamatsu G op.income lowered from 8.3BJPY to 7.7BJPY, while asunaro Aoki G lowered from 7.7BJPY to 6.3BJPY.
4. Dividend per share will be maintained at 60JPY, although our net earnings will be lowered from 8.3BJPY to 7.2BJPY.

300.0

300300Orders／Revenue（BJPY）

Op.Income %5.1%

250 5%
250

Orders

200 4%
200
185.9
150 3%
150
73.8

254.8

Revenue

Revenue

176.5
64.2

94.7
Op.Income

106.4 92.3
3.4%
174.8

4.1
5.500
FY 2018/3 3Q
Actual123.4 109.6

5.9
Takamatsu
3.4
Gr.

Asunaro Aoki
Gr.

FY 2019/3 3Q
Actual
単位：億円。

136.0

108.0

148.6 153.4

Op.Income（BJPY）

2520

Op.
Income

13.6

65.3

8.9
112.2 112.830
260.0 5.0%

245.1 5.6%

218.0

100 2%
10050501%

Orders

13.0

7.0
164.0 152.0

7.71510Takamatsu Gr.

57.6

3.2
FY 2018/3
Actual

6.3
FY 2019/3
Revised Forecast

管理部門費等があるため、営業利益のグループごとの合算値は全社合計と一致しない。

©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

Asunaro Aoki
Gr.

06

Occupancy Rate of Condominiums Built by Takamatsu Corp.
1. Occupancy rate is continuing to show above 95% for both Tokyo and Osaka+Nagoya for December 2018.
2. We believe rental condominium market is continuing to be tight for Tokyo and Osaka+Nagoya.
3. Although there are views that occupancy rate will drop for Tokyo, Osaka and Nagoya, we believe
Takamatsu Corp. is remote from this view since Takamatsu Corp. concentrates in urban and near-station
locations of the three cities, where population is still increasing.
100.0%
99.0%
98.0%
97.0%
96.0%
95.0%
94.0%
93.0%
92.0%
91.0%
90.0%

Osaka & Nagoya

95.7%

96.0%

96.0%

95.1%

95.6%

96.0%
FY Mar.2019
FY Mar.2018
FY Mar.2017

Jun.
Definition:

96.4%

Sep.

Dec.

Mar.

100.0%
99.0%
98.0%
97.0%
96.0%
95.0%
94.0%
93.0%
92.0%
91.0%
90.0%

Tokyo

95.8%

96.2%

95.5%

95.1%

95.4%

95.4%

96.9%

FY Mar.2019
FY Mar.2018
FY Mar.2017

Jun.

Sep.

Dec.

Mar.

“Osaka and Nagoya” = Osaka, Kyoto and Hyogo Prefectures plus Nagoya City.
“Tokyo”= Tokyo, Kanagawa, Saitama and Chiba Prefectures“Occupancy Rate” = (Number of occupied condo apartments built by Takamatsu Corp and managed by Takamatsu Estate at the end ofeach quarter) divided by (Number of condo apartments built by Takamatsu Corp and managed byTakamatsu Estate at the end of each quarter©2019 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

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