DAIKYO INCORPORATED : 3Q FACT SHEETS

FACT SHEETS
For the Nine Months Ended December 31, 2016
(Unaudited)
Fact Sheets for the nine months ended December 31, 2016	････ 1
Fact Sheets for the year ended March 31, 2016	････ 5
Reference Data	････ 10
DAIKYO INCORPORATED
January 26, 2017

Consolidated Statements of Operations (Millions ofyen)

Forecast
Apr 2016- Mar 2017
340,000
20,000 5.9%
19,000 5.6%
14,000

January 26, 2017

9 Months		Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Net sales		210,221	218,417	191,090	238,320	228,099	△ 10,221
Gross profit		32,410	30,238	24,023	33,978	33,948	△ 30
Selling, general and administrative expenses [SG&A]		19,552	23,676	21,971	22,039	21,309	△ 730
Operating income Operating margin		12,858 6.1%	6,562 3.0%	2,051 1.1%	11,939 5.0%	12,639 5.5%	700 0.5pp
Other income		310	520	346	414	436	21
Interest income	65	79	48	78	35	△ 43
Dividend income	21	22	20	23	31	8
Other expenses		1,963	1,473	1,236	1,211	766	△ 444
Interest expense	1,160	703	521	345	207	△ 137
Ordinary income Ordinary income to net sales ratio		11,205 5.3%	5,608 2.6%	1,161 0.6%	11,142 4.7%	12,309 5.4%	1,166 0.7pp
Extraordinary income		-	11,393	39	63	38	△ 25
Extraordinary loss		97	2,297	149	50	40	△ 9
Income before income taxes and minority interests		11,107	14,705	1,052	11,156	12,306	1,150
Income taxes - current		1,464	5,348	1,211	2,483	2,611	127
Income taxes - deferred		1,725	△ 2,014	△ 1,556	1,200	1,404	204
Net income		7,918	11,371	1,396	7,471	8,290	818
Net income attributable to noncontrolling interests		1	2	1	-	-	-
Profit attributable to owners of parent		7,916	11,369	1,395	7,471	8,290	818

Retroactive treatment has been applied to the figures displayed for the nine months ended December 31, 2013

Consolidated Financial Position (Millions ofyen)

As of Dec 31			2012	2013	2014	2015	2016
Current assets			235,684	240,958	232,884	219,962	218,543
Cash and deposits		93,716	93,984	68,752	77,724	71,667
Inventories		108,735	117,924	124,666	109,826	116,043
Real estate for sale	14,627	13,617	27,382	35,780	36,992
Real estate for sale in progress	76,592	95,715	88,509	55,581	54,553
Real estate for development projects	17,515	8,590	8,774	18,464	24,497
Others		33,232	29,048	39,464	32,411	30,832
Fixed assets			39,111	50,641	49,755	48,897	45,863
Property and equipment		16,039	18,157	18,017	18,478	18,315
Others		23,072	32,483	31,738	30,419	27,547
Total assets			274,796	291,599	282,640	268,860	264,406
Liabilities			151,155	154,840	137,822	107,377	92,472
Notes and accounts payable		32,355	26,011	25,436	15,001	15,006
Interest-bearing debt		82,353	70,858	57,564	42,571	29,361
Others		36,446	57,970	54,820	49,804	48,104
Net assets			123,641	136,758	144,817	161,483	171,933
Shareholders' equity		123,524	136,365	145,242	160,866	171,708
Valuation and translation adjustments		93	365	△ 425	616	225
Minority interests		23	26	-	-	-
Total liabilities and net assets			274,796	291,599	282,640	268,860	264,406

Mar 31, 2016	Change from Mar 2016
226,557	△ 8,014
87,343	△ 15,676
104,972	11,071
38,909	△ 1,917
48,227	6,326
17,834	6,662
34,241	△ 3,409
48,036	△ 2,172
18,480	△ 164
29,555	△ 2,008
274,594	△ 10,187
108,503	△ 16,030
17,767	△ 2,760
38,484	△ 9,123
52,251	△ 4,146
166,090	5,842
166,022	5,686
68	156
-	-
274,594	△ 10,187

Shareholders' equity ratio*

45.0%

46.9%

51.2%

60.1%

65.0%

Retroactive treatment has been applied to the figures displayed for as of December 31, 2013

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

Interest-bearing Debt (Millions of yen)

60.5% 4.5pp

As of Dec 31	2012	2013	2014	2015	2016
Short-term borrowings	26,245	22,606	25,877	12,334	7,182
Commercial paper	1,500	-	-	-	-
Bonds due within one year	5,000	-	5,000	-	2,000
Bonds	7,000	7,000	2,000	2,000	-
Long-term borrowings	42,522	41,183	24,648	28,221	20,172
Other interest-bearing debt	85	69	39	16	7
Total interest-bearing debt	82,353	70,858	57,564	42,571	29,361

Mar 31, 2016	Change from Mar 2016
10,110	△ 2,928
-	-
-	2,000
2,000	△ 2,000
26,361	△ 6,189
13	△ 6
38,484	△ 9,123

Debt to equity ratio*

0.67

0.52

0.40

0.26

0.17

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

0.23 △ 0.06

9 Months		Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Real Estate Management	Net sales	87,778	109,752	106,279	114,295	115,064	768
	Operating income	5,479	6,529	4,684	6,531	6,775	244
Real Estate Brokerage	Net sales	16,097	25,187	32,111	39,439	44,575	5,136
	Operating income	366	1,541	1,162	2,456	2,027	△ 428
Real Estate Development and Sales	Net sales	107,417	86,364	54,883	88,170	71,953	△ 16,216
	Operating income	8,625	781	△ 1,462	5,254	5,609	354
Eliminations or Corporate	Net sales	△ 1,071	△ 2,887	△ 2,184	△ 3,584	△ 3,494	90
	Operating income	△ 1,611	△ 2,290	△ 2,333	△ 2,302	△ 1,772	529
Total	Net sales	210,221	218,417	191,090	238,320	228,099	△ 10,221
	Operating income	12,858	6,562	2,051	11,939	12,639	700

Forecast
Apr 2016- Mar 2017
170,000
10,400
66,000
4,600
107,000
7,800
△ 3,000
△ 2,800
340,000
20,000

Retroactive treatment has been applied to the figures displayed for the nine months ended December 31, 2013

In accordance with the change in segment classification, the above change has been reflected in the figures in the nine months ended December 31, 2014.

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

9 Months	Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Condominium management	33,401	39,831	40,125	40,812	40,815	2
Building and facility management	19,207	20,312	21,089	22,458	23,070	611
Contract work	31,086	42,896	39,401	44,595	44,699	104
Other	4,081	6,712	5,663	6,430	6,480	49
Total	87,778	109,752	106,279	114,295	115,064	768

In accordance with the change in segment classification, the above change has been reflected in the figures in the nine months ended December 31, 2014.

Number of Condominium Units Managed

As of Dec 31	2012	2013	2014	2015	2016	Change from Dec 2015
Number of condominium units managed	440,740	514,240	522,254	529,348	530,425	1,077
Number of condominium associations	7,989	9,261	9,392	9,497	9,515	18

Mar 31, 2016	Change from Mar 2016
530,095	330
9,510	5

Sales of Contract Work (Millions of yen)

9 Months		Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Contract work		31,086	42,896	39,401	44,595	44,699	104
Condominium-related	22,834	24,636	23,611	22,932	28,877	5,944
Building and facility-related	4,824	13,787	14,966	20,581	14,543	△ 6,038
Others	3,427	4,471	823	1,081	1,278	197

In accordance with the change in segment classification, the above change has been reflected in the figures in the nine months ended December 31, 2014.

Volume of Contract Work Orders (Millions of yen)

As of Dec 31		2012	2013	2014	2015	2016	Change from Dec 2015
Volume of contract Work orders		17,991	35,881	32,275	32,693	34,511	1,817
Condominium-related	16,106	26,655	17,953	21,979	27,163	5,184
Building and facility-related	1,340	8,292	14,238	10,615	7,252	△ 3,363
Others	544	932	83	98	95	△ 3

Mar 31, 2016	Change from Mar 2016
25,050	9,461
19,020	8,142
5,915	1,336
113	△ 18

In accordance with the change in segment classification, the above change has been reflected in the figures as of December 31, 2014.

Real Estate Brokerage

9 Months		Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Real estate brokerage		4,645	5,599	5,190	5,740	5,973	232
Existing real estate sales		7,898	11,724	14,715	20,762	25,678	4,916
Lease management		3,193	7,017	7,072	7,186	7,283	97
Other		360	846	5,133	5,750	5,639	△ 110
Contract work	-	-	3,800	3,777	3,951	173
Total		16,097	25,187	32,111	39,439	44,575	5,136

Breakdown of Net Sales (Millions of yen)

January 26, 2017

In accordance with the change in segment classification, the above change has been reflected in the figures in the nine months ended December 31, 2014.

Amount of Brokerage Transactions (Millions of yen)

9 Months		Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Number of brokerage transactions		3,912	5,026	4,804	4,817	5,063	246
Condominium	3,724	4,707	4,474	4,501	4,769	268
Total amount of transactions		132,221	116,361	125,545	117,077	125,380	8,303
Condominium	82,331	104,159	103,820	107,324	115,757	8,433
Commission rate		3.5%	4.9%	4.4%	4.9%	4.7%	△ 0.2pp
Condominium	5.1%	5.1%	5.0%	4.9%	4.8%	△ 0.1pp

Results of Existing real estate sales (Condominium) (Millions of yen)

9 Months	Apr-Dec 2012	Apr-Dec 2013	Apr-Dec 2014	Apr-Dec 2015	Apr-Dec 2016	Year-on-year
Condominium units delivered (units) (1)	398	549	680	866	1,016	150
Condominium sales (2)	7,637	11,648	14,578	20,212	24,838	4,626
Gross profit for condominium sales	1,532	2,419	3,010	3,752	4,032	279
Gross profit margin for condominium sales	20.1%	20.8%	20.6%	18.6%	16.2%	△ 2.4pp

Number of sales agreements entered into (units) (3)	429	575	710	860	1,034	174
Amount of net sales of condominium units for which sales agreements are entered into in each period	8,201	12,467	15,642	20,376	25,791	5,414

As of Dec 31	2012	2013	2014	2015	2016	Change from Dec 2015
Inventories (units)	207	394	598	888	1,051	163

Mar 31, 2016	Change from Mar 2016
875	176

Number of Leasing Management Units

As of Dec 31	2012	2013	2014	2015	2016	Change from Dec 2015
Number of leasing management units	25,454	36,389	36,953	37,103	37,417	314

Mar 31, 2016	Change from Mar 2016
37,232	185

Volume of Contract Work (Remodeling) Orders (Millions of yen)

As of Dec 31	2012	2013	2014	2015	2016	Change from Dec 2015
Contract work (remodeling)	-	-	591	761	850	89

Mar 31, 2016	Change from Mar 2016
1,124	△ 273

Number of Brokerage Offices

As of Dec 31	2012	2013	2014	2015	2016	Change from Dec 2015
Number of brokerage offices	39	61	70	64	70	6

Mar 31, 2016	Change from Mar 2016
67	3

Notes:

1. Represents the number of condominium units delivered to customers.

2. Represents the amount of net sales of condominium units delivered to customers.

3. Represents the number of condominium units for which sales agreements are entered into in each period.