Results for Q3, FY March 2018
Takamatsu Construction Group Co.,Ltd.
Securities Code ：1762
February 14, 2018

Forward-looking statements in this material is based on the information available to management at the time this report wasprepared. Actual results may differ significantly from this statement for number of reasons. In addition, this document isprepared as an information providing material to be used as a reference for investment decisions, and is not intended to ask
nor to request to purchase / sell our shares.

Our Market Environment Recognition towards March 2020 andGrowth Image of Takamatsu Construction Group
This page from “Mid Term Plan to March 2020”

Environment
Recognition
Positive Factors■ We foresee three consecutive years ofdomestic construction investment
exceeding 50TJPY. (FY Mar 2018 thru FYMar 2020)■ We foresee high level of household #s to
be maintained in Tokyo-Nagoya-Osaka
Areas as well as continued high level of
new residence construction start-ups.
■ We foresee continued tight market forTokyo Metro Area’s construction of
condominiums for rental purposes.

TCG HP>IR Information>IR Library>Financial Statement Presentation Materials> Analysis Material, FY ended March 2017>Mid Term Plan to March 2020

Negative Factors■ Domestic construction investment will
start to shrink after 2020, which is our final
year of Mid-Term Plan. Population
decrease will also accelerate.
■ Construction labor cost will increase as #of workers decrease.
■ There is risk of rapid decline of market for
condominiums for rental purpose due tointerest rate hike and / or decrease ofoccupancy rate.
■ Decrease of overall construction start-ups

Growth Image of Takamatsu Construction Group Towards FY Mar. 2020
1. We will create an organization which realizes expansion of orders and continued growth forconstruction of Tokyo Metropolitan condominiums for rental purpose as our core growth segment.
2. On the other hand, for civil engineering and government related businesses where we foresee flator negative growth for future years, we will aim to realize steady growth of market share as wellas to maintain high profit margins.
3. We will create management basis that enables realization of both of the above.
2©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

By-Segment・By-Group Split (Consolidated)17/12(16/12)

64.2 +21%（53.2）

112.2 △1%（112.9）
112.8 +13%（99.5）

4.1+3%（4.0）

5.5△8%（6.0）

Revenue
Op.Income17/12(16/12)

89.0
85.1
5.5（101.2）（78.1） （7.7）△12% +9%△28%

Real Estate

73.8 △2%（75.3）

4.9
79.0
84.4
（77.5）（65.8） （3.5）+42%+9% +20%

ArchitectureM’s

17/12(16/12)

Asunaro Aoki Construction

Mirai
Construction

Aoki
MarineToko
GeotechAsunaroRoad

Niigata
Mirai

ShimadaGumi

Nakamura
Shaji

KongoGumi

Takamatsu Estate（ Tokyo）

JP HomeTakamatsu
Techno Service(Tokyo)

Takamatsu Estate（ Osaka）

SuminoeKogei

Takamatsu
Techno Service(Osaka)

Takamatsu
CorpOrders

Civil Engineering

1. Orders decreased by 0.9% to 185.9BJPY, increase in civil engineering but decrease in architecture.
2. Revenue increased by 15.6% to 176.5BJPY. Civil engineering increased by 20% due to strong Asunaro Aoki revenue,
while architecture also grew by 9% due to strong Takamatsu Group results.
3. 7.2% decrease in Op. Income. While architecture fell short vsLY due to LY’s highly profitable projects,civil engineering increased by 42% due to increased revenue.
Orders Revenue Op.Income
Takamatsu Construction Group
17/12
17/12
17/12
Takamatsu Group
Asunaro Aoki Group(16/12)(16/12) (16/12)

12.4
12.4
0.8（8.7） （8.7） （0.6）+43% +43%+20%
185.9 △0.9%（187.5）
176.5+15.6%（152.6）
8.9△7.2%（9.6）
Unit : Billion JPY

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

©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

3

Results for Q3, FY 2018 March (April thru December 2017, Consolidated)
1. Orders:

Slight decrease of △0.9% vsLY.

2. Revenue:

Significant increase of +15.6%vsLY. Increase for 6 consecutive years of Q3 as well as
5 consecutive record highs of Q3.

：

1. Profits

Due to LY’s highly profitable projects, Operating Income, Ordinary Income and Net Earnigs
fell short vsLY by △7.2%, △7.2% and △7.0%, respectively.

Unit : Billion JPY

FY2017/Mar Q3

FY2018/Mar Q3

Orders

187.5

185.9

△0.9%Revenue

152.6

176.5

15.6%

Gross Profit（% vs Revenue）

22.723.6（14.9%）（13.4%）

9.6

8.9（6.3%）（5.1%）

9.6

8.9（6.3%）（5.1%）

5.1

4.7（3.4%）（2.7%）

Item (In Billion JPY)

Operating Income（% vs Revenue）
Ordinary Income（% vs Revenue）
Net earnings attributable to controllinginterest（% vs Revenue）+/- （％）

3.7%
△7.2%
△7.2%
△7.0%
4

©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

By-Group Orders, Revenue and Operating Income (Consolidated)
1. Orders:Came very close to LY despite lack of large orders that were present in LY.

2. Revenue:

Significant increase vsLY. Likely to overshoot revenue target of 240BJPY.

3. Profits：

Although Takamatsu Group’s operating income increased vsLY, Asunaro Aoki Group’s operating
income decreased from 6.0BJPY to 5.5BJPY due to LY’s highly profitable projects.

Op.Income %

300
300

7%

Orders / Revenue（BJPY）

250
250

150
150

6.3%

75.3

Revenue

5%

185.9

152.6

10010073.8

176.5 5.1%

99.5

○112.2Q3, 2017/Mar FY
Actual

76.3

112.8

8.9
4.1

161.1

ActualTakamatsu Gr.

6.2
154.0

137.9

5.5

Q3, 2018/Mar FY

5.5%

7.4

Full Year, 2017/Mar FY
Actual

25.0
20.0

90.0

Op.
Income

12.9

6.000

240.0

106.0

96.0

64.2

9.6
4.0

112.9

Op.Income（BJPY）

214.1

53.2

5050

6.0% 260.0

256.4

6%

200200 187.5

30.0

Orders

13.3

15.0

7.1

10.0

150.0
AsunaroAoki Gr.

5.0
7.0

Full Year, 2018/Mar FY0Plan

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

©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

5By-Quarter Revenue and Operaring Income and Its Outlook (vs. 3 year average, Consolidated)
1. The following shows by-quarter revenue & operating income of TCG for the past three year average and FY March 2018.
→ Upper figures of current year Q4 show announced annual estimate minus Q1 thru Q3 actuals.
→ Lower figures show probable figures.
2. Concerning our Q4 operating income, Takamatsu Group is likely to undershoot the target, while Asunaro Aoki is likely toovershoot.
3. Thus, we believe we can reach our target operating income of 13.9MJPY.

100
100

3 yr. avg FY Mar.2018
Actual（FY Mar2015～FY Mar 2017）

Q4Q4Q3Q2Q1

3 yr. avg FY Mar.2018 3 yr. avg FY Mar.2018 3 yr. avg FY Mar.2018（FY Mar2015（FY Mar2015
ActualActualActual～FY Mar 2017）～FY Mar 2017）（FY Mar2015～FY Mar 2017）

10.0

Orders / Revenue（BJPY）

Op.Income（BJPY）

80
80

Annual est.
minus
Q1～Q340
40

59.4

52.5

Revenue

42.8

49.3

20.5

Takamatsu Gr. 14.6

2020

Asunaro 28.2
Aoki Gr.

00

1.2
0.5
0.8

3.5

2.8

Op.
Income

1.9
32.2

1.1
1.0

32.7

53.3

20.9

16.6

1.2
1.7

900

64.5

69560
60

8.063.42.3

1.4
1.7

20.6

3.5

3.0
35.7

38.6

22.7

17.6

1.5

58.5

41.8

1.5
2.2

Probable

69.0?

172

25.7
⇣
29.0?

3.0
37.8

1.9
1.3

37.1
⇣
40.0?

4.4 6.0
4.4
3.0
⇣
2.6

1.5
⇣
1.9

4.0
2.0

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

©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.

0 6

Occupancy Rate of Condos for Rental Purpose built by Takamatsu Corp and Managed byTakamatsu Estate
1. Both Tokyo and Osaka Areas maintaining more than 95% occupancy rate.

100.0%
99.0%
98.0%
97.0% Osaka & Nagoya
95.8%

96.0%

95.3%

95.0% 95.1%
94.0%

Tokyo

95.1%

95.6%
95.5%

96.3%
95.6%

95.1%
95.0%

96.0%

95.7%

95.1%95.1%

95.4%

95.4%

17/3

17/6

17/9

17/12

93.0%
92.0%
91.0%
90.0%
16/3
Definition:

16/6

16/9

16/12

“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 quarter7©2017 TAKAMATSU CONSTRUCTION GROUP CO., LTD.