DAIKYO INCORPORATED : 2Q FACT SHEETS

FACT SHEETS
For the Six Months Ended September 30, 2017
(Unaudited)
Fact Sheets for the six months ended September 30, 2017	････ 1
Fact Sheets for the year ended March 31, 2017	････ 11
Reference Data	････ 16
DAIKYO INCORPORATED
October 30, 2017

DAIKYO INCORPORATED

October 30, 2017

Forecast
Apr 2017- Mar 2018
340,000
19,000 5.6%
18,000 5.3%
12,000

6 Months		Apr-Sep 2013	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Net sales		154,988	126,369	169,500	146,628	133,640	△ 12,988
Gross profit		22,565	15,759	25,890	20,960	16,884	△ 4,075
Selling, general and administrative expenses [SG&A]		16,194	14,801	15,091	14,367	15,334	966
Operating income Operating margin		6,370 4.1%	957 0.8%	10,798 6.4%	6,592 4.5%	1,550 1.2%	△ 5,042 △ 3.3pp
Other income		374	280	284	318	192	△ 126
Interest income	22	31	50	27	10	△ 16
Dividend income	12	12	14	20	19	△ 1
Other expenses		992	820	669	578	368	△ 209
Interest expense	479	363	247	143	111	△ 31
Ordinary income Ordinary income to net sales ratio		5,752 3.7%	417 0.3%	10,414 6.1%	6,332 4.3%	1,373 1.0%	△ 4,958 △ 3.3pp
Extraordinary income		11,390	39	27	-	0	0
Extraordinary loss		2,237	140	39	31	4	△ 26
Income before income taxes and minority interests		14,905	316	10,402	6,300	1,368	△ 4,931
Income taxes - current		1,732	871	2,276	1,594	834	△ 759
Income taxes - deferred		1,535	△ 1,939	1,149	704	△ 116	△ 821
Net income		11,637	1,385	6,976	4,001	650	△ 3,350
Net income attributable to noncontrolling interests		1	1	-	-	-	-
Profit attributable to owners of parent company shareholders		11,636	1,383	6,976	4,001	650	△ 3,350

Consolidated Statements of Operations (Millions ofyen)

Retroactive treatment has been applied to the figures displayed for the six months ended September 30, 2013

As of Sep 30			2013	2014	2015	2016	2017
Current assets			238,023	224,984	233,531	216,368	217,883
Cash and deposits		94,207	78,779	94,598	74,823	60,505
Inventories		119,431	112,670	108,802	112,554	128,405
Real estate for sale	13,664	21,313	42,340	37,100	43,241
Real estate for sale in progress	88,364	82,284	50,421	59,297	65,071
Real estate for development projects	17,401	9,073	16,040	16,156	20,092
Others		24,384	33,533	30,130	28,990	28,973
Fixed assets			51,360	50,367	49,413	46,379	41,806
Property and equipment		18,211	17,987	18,523	18,388	14,695
Others		33,148	32,379	30,889	27,990	27,111
Total assets			289,384	275,351	282,944	262,748	259,689
Liabilities			152,373	130,621	121,937	95,224	87,323
Notes and accounts payable		23,860	20,905	21,601	14,677	12,789
Interest-bearing debt		69,049	58,822	51,823	34,860	29,208
Others		59,463	50,893	48,512	45,686	45,325
Net assets			137,010	144,730	161,007	167,523	172,366
Shareholders' equity		136,636	145,232	160,373	167,421	171,929
Valuation and translation adjustments		348	△ 531	634	101	437
Minority interests		26	28	-	-	-
Total liabilities and net assets			289,384	275,351	282,944	262,748	259,689

Mar 31, 2017	Change from Mar 2017
235,927	△ 18,043
89,736	△ 29,231
115,990	12,415
45,885	△ 2,644
43,622	21,449
26,482	△ 6,389
30,200	△ 1,227
41,972	△ 166
14,516	179
27,456	△ 345
277,899	△ 18,209

Consolidated Financial Position (Millions ofyen)

100,036	△ 12,713
20,283	△ 7,494
28,930	277
50,821	△ 5,496
177,863	△ 5,496
177,461	△ 5,531
401	35
-	-
277,899	△ 18,209

Retroactive treatment has been applied to the figures displayed for as of September 30, 2013, September 30, 2016 and March 31,2017.

Shareholders' equity ratio*

47.3%

52.6%

56.9%

63.8%

66.4%

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

Interest-bearing Debt (Millions of yen)

64.0% 2.4pp

As of Sep 30	2013	2014	2015	2016	2017
Short-term borrowings	24,367	28,867	10,380	11,909	9,129
Bonds due within one year	-	-	5,000	-	2,000
Bonds	7,000	7,000	2,000	2,000	-
Long-term borrowings	37,603	22,906	34,421	20,942	18,070
Other interest-bearing debt	79	49	22	9	9
Total interest-bearing debt	69,049	58,822	51,823	34,860	29,208

Mar 31, 2017	Change from Mar 2017
7,931	1,198
2,000	-
-	-
18,987	△ 917
12	△ 3
28,930	277

Debt to equity ratio*

0.50

0.41

0.32

0.21

0.17

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

0.16 0.01

Fact Sheets

1 for the six months ended September 30, 2017

DAIKYO INCORPORATED

October 30, 2017

Forecast
Apr 2017- Mar 2018
177,000
11,300
6.4%
65,000
3,900
6.0%
102,000
7,100
7.0%
△ 4,000
△ 3,300
340,000
19,000
5.6%

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Real Estate Management	Net sales	71,601	75,970	75,597	77,519	1,921
	Operating income	3,235	4,219	4,320	4,174	△ 146
	operating income margin	4.5%	5.6%	5.7%	5.4%	△ 0.3pp
Real Estate Brokerage	Net sales	20,336	26,251	28,833	29,419	585
	Operating income	568	1,835	1,138	1,239	100
	operating income margin	2.8%	7.0%	3.9%	4.2%	0.3pp
Real Estate Development and Sales	Net sales	35,821	69,844	44,339	29,963	△ 14,375
	Operating income	△ 1,239	6,327	2,362	△ 2,234	△ 4,596
	operating income margin	△3.5%	9.1%	5.3%	△7.5%	△ 12.8pp
Eliminations or Corporate	Net sales	△ 1,389	△ 2,564	△ 2,141	△ 3,261	△ 1,119
	Operating income	△ 1,606	△ 1,583	△ 1,229	△ 1,629	△ 400
Total	Net sales	126,369	169,500	146,628	133,640	△ 12,988
	Operating income	957	10,798	6,592	1,550	△ 5,042
	operating income margin	0.8%	6.4%	4.5%	1.2%	△ 3.3pp

Results by Segment (Millions ofyen)

In accordance with the change in segment classification, the above change has been reflected in the figures in the six months ended September 30, 2014.

Real Estate Management

For the real estate management business, while the breakdown of net sales is currently disclosed as management, contract work, and other, a breakdown by product and service based on each Group company has been stated in these results briefing materials as condominium management, condominium repair and maintenance work, etc., and building and facility management, from the perspective of enhancing information disclosure.

Overview of Segment Earnings Results (Millions of yen)

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Condominium management	Net sales	33,678	35,754	36,641	37,227	585
	Operating income	2,388	3,010	3,157	3,175	18
	operating income margin	7.1%	8.4%	8.6%	8.5%	△ 0.1pp
Condominium repair and maintenance work, etc.	Net sales	16,529	14,889	17,335	18,734	1,398
	Operating income	330	313	417	435	18
	operating income margin	2.0%	2.1%	2.4%	2.3%	△ 0.1pp
Building and facility management	Net sales	21,956	25,846	22,410	22,363	△ 46
	Operating income	509	887	739	555	△ 183
	operating income margin	2.3%	3.4%	3.3%	2.5%	△ 0.8pp
Eliminations or Corporate	Net sales	△ 563	△ 520	△ 790	△ 806	△ 16
	Operating income	6	7	7	6	△ 0
Total	Net sales	71,601	75,970	75,597	77,519	1,921
	Operating income	3,235	4,219	4,320	4,174	△ 146
	operating income margin	4.5%	5.6%	5.7%	5.4%	△ 0.3pp

Number of Segment Employees*

As of Sep 30	2014	2015	2016	2017	Change from Sep 2016
Condominium management	1,823	1,866	1,926	1,972	46
Condominium repair and maintenance work, etc.	377	381	413	449	36
Building and facility management	809	803	874	915	41
Total	3,009	3,050	3,213	3,336	123

Mar 31, 2017	Change from Mar 2017
1,911	61
420	29
892	23
3,223	113

*The number of employees is the number of full-time permanent employees.

2

Fact Sheets for the six months ended September 30, 2017

DAIKYO INCORPORATED

October 30, 2017

Condominium Management

Overview of Earnings Results (Millions of yen)

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Total		33,678	35,754	36,641	37,227	585
Condominium management	26,879	27,351	27,337	27,344	7
Contract work	3,484	4,321	5,219	5,483	264
Other	3,314	4,081	4,085	4,399	314

Number of Condominium Units under management

As of Sep 30	2014	2015	2016	2017	Change from Sep 2016
Number of condominium units under management	520,340	528,530	529,587	531,798	2,211
Number of condominium associations	9,353	9,482	9,506	9,546	40

Mar 31, 2017	Change from Mar 2017
531,957	△ 159
9,536	10

Fluctuations in Contract Work Orders, Sales and Backlog of Orders (Millions of yen)

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Orders	3,715	5,005	5,633	5,888	255
Sales	3,484	4,321	5,219	5,483	264
Backlog of orders*	1,246	1,776	2,089	2,286	196

Mar 31, 2017	Change from Mar 2017
-	-
-	-
1,880	405

*The backlog of order is the balance at the end of the fiscal period.

Condominium repair and maintenance work, etc.

Overview of Earnings Results (Millions of yen)

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Net sales		16,529	14,889	17,335	18,734	1,398
Contract work	16,324	14,630	17,042	18,586	1,544
Other	205	258	292	147	△ 145

Fluctuations in Contract Work Orders, Sales and Backlog of Orders (Millions of yen)

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Year-on-year
Orders		16,803	18,100	26,467	21,342	△ 5,124
Repair and maintenance work in intra-group market	-	15,644	21,802	16,299	△ 5,503
Repair and maintenance work in external market	-	585	1,053	1,673	619
Other	-	1,869	3,611	3,369	△ 241
Sales		16,324	14,630	17,042	18,586	1,544
Repair and maintenance work in intra-group market	-	11,371	14,194	15,249	1,054
Repair and maintenance work in external market	-	685	488	1,194	706
Other	-	2,574	2,359	2,142	△ 216
Backlog of Orders		18,306	24,285	29,780	26,718	△ 3,062
Repair and maintenance work in intra-group market	-	19,194	25,083	19,015	△ 6,067
Repair and maintenance work in external market	-	182	956	1,191	235
Other	-	4,908	3,741	6,511	2,769

Mar 31, 2017	Change from Mar 2017
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
23,962	2,755
17,965	1,050
713	478
5,283	1,227

※Following changes to the classification of construction work and the relevant properties, amounts have been changed and

posted accordingly for the fiscal year ended in March 2017.

*Orders and sales for condominium units under management are noted as "intra-group market" and orders and sales for condominium units not managed by the Company are noted as "external market."

※ "Other" refers to the amounts for new construction and general contract work other than large-scale repair and maintenance work for condominiums.

*The backlog of orders is the balance at the end of the fiscal period.

Fact Sheets

3 for the six months ended September 30, 2017