securities code: 1878 nine months financial … · landowners remain robust. in addition,...

TopicsShareholder Benefit PlanCorporate Data/Officers/Information for Shareholders

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ P06・・・・・・・・・・・ P10

・・・・・・ P11

To Our ShareholdersFinancial Highlights(Consolidated) & Dividend PlanConsolidated financial statementConsolidated Business Overview by Segment

・・・・・・・・・・・・・・・ P01

・・・・・・・・・・・・・・・・・・・・・・・・ P03・・・ P04

・・・・・・・・・・・・・・・・・・・・・・・・・ P05

CONTENTS

December 31, 2016(Consolidated)

FY2016 (April 1, 2016 ▶ December 31, 2016)

rd Term43Nine Months

(3rd quarter) ended

Securities code: 1878

To Our Shareholders

Since its foundation in 1974 as a firm that specializes in the effective use of land, the Daito Group has undertaken rental housing construction and management on behalf of landowners and provided optimal residences and services to potential tenants.As a result of our accumulated achievements in accordance with our principle of putting the customer first, the number of units managed by the Daito Group in rental buildings reached one million on January 1, 2017. The Daito Group is deeply grateful for the support of its shareholders, owners, tenants, and other stakeholders.“Entrusted with land that was built on or with land to build on”: The Daito Group reaffirmed the tremendous significance of this motto, which is incorporated into the group name in the form of “Trust,” and we will continue to undertake new challenges and advance in tandem with society so that we can remain a corporate group that is truly trusted by custom-ers.

“Entrusted with land that was built on or with land to build on”The number of units managed by the Daito Group in rental buildings reached one million.

During the nine months ended December 31, 2016, improvement was seen in employment and income, and as a result, the Japanese economy recovered at a moderate pace. The outlook for the future, however, has become uncertain as a result of the rapid decrease in value of the yen and developments in the stock market precipitated by the withdrawal of the United Kingdom from the European Union and the results of the United States presidential election.In the rental housing sector, housing starts in the Daito Group’s principal field of leased housing saw 14th consecutive month in December 2016, increasing by 2.2% on a year on year basis.Against a backdrop of inheritance tax reforms in January 2015 and construction capital procurement costs remaining at stable low levels, asset succession needs of landowners remain robust. In addition, population aging and delaying of marriage

are expected to result in an increase in single-person households, and tenant demand for rental housing is forecast to remain healthy. Companies that support rental housing must continue to provide one-stop services necessary for the construction and management of rental properties based on demand forecasts and highly convenient rental housing that meets diversifying tenant needs.In the construction market, the tight labor conditions since the Great East Japan Earthquake are expected to ease, but uncertainty remains regarding labor supply and demand as a result of the full-scale construction of infrastructure in conjunction with holding the Tokyo Olympics and Paralympics. Future issues for the Company are securing appropriate building construction profits, reinforcing construction structures, and ensuring quality.

Domestic economy and rental housing industry

Supported by a strong market environment, asset succession needs and tenant demand are expected to remain robust.

The Daito Group achieved record highs in nine-month consolidated revenue and all profit indicators in the nine months ended December 31, 2016. The Group reported consolidated net sales of 1,105,479 million yen (up 5.3% year on year), operating income of 106,166 million yen (up 21.0%), ordinary income of 109,378 million yen (up 20.1%), and quarterly net income attributable to owners of the parent company of 74,062 million yen (up 23.6%).There are no changes to the projected results for the full year announced on Octo-ber 17, 2016.Construction orders received, an indicator of future performance, were 460,703 million yen (down 2.7% year on year), and the construction order balance was

873,007 million yen (up 5.4%). The Group will continue its efforts to achieve its plans.Occupancy rates, indicators of the health of the real estate business, were 96.2% for residential use (up 0.2 points year on year) and 98.4% for commercial use (up 0.3 points). Thus, the Group continues to maintain high occupancy rates.Reaching one million units under management was a single milestone, and the Daito Group will continue to provide valuable products and services to owners and tenants.We look forward to the continued support of our shareholders and investors.

January 2017

Consolidated operating results for the nine months ended December 31, 2016

Record highs were achieved for revenue and all profit indicators.

Number of Units Managed by the Daito Group

Number of Units Managed by Major Japanese Management Companies

Source: Zenkoku Chintai Jutaku Shimbun weekly newspaper, July 25, 2016 issue

Rank Company Results

Number of Units Managed by Major American Management Companies

Greystar Real Estate Partners, LLC

Lincoln Property Company

Pinnacle

Equity Residential

WinnCompanies

413,679 units

165,251 units

134,725 units

109,540 units

98,817 units

Source: NMHC 2016 Top 50 Largest Apartment Managers

1

2

3

4

5

I would like to express my gratitude to our sharehold-ers and investors for their continued support.The operating results and efforts of the Daito Group for the nine months ended December 31, 2016 (from April 1, 2016 to December 31, 2016) are reported on the right.


1

2

3

4

5

Daito Group

Sekisui House, Ltd.

Leopalace21 Corporation

Daiwa Living Co., Ltd.

Starts Group

923,624 units

565,471 units

561,961 units

462,997 units

437,153 units

Reference Information Urban Renaissance Agency

Approximately 740,000 units

50units1975

1,000units1981

20,000units1989

100,000units1993

150,000units1996

200,000units1998

300,000units2002

800,000units2013

January 1, 2017

One Million Units Reached!

1974Daito Sangyo established in Nagoya City, Aichi Prefecture

1978Name changed from Daito Sangyo to Daito Construction

1988Name changed from Daito Construction to Daito Trust Construction

1980Daito Kyosaikai established

1995New Crestall 24 launched

1992Daito Trust Construction shares listed on the First Section of the Tokyo Stock Exchange

1999Daito Building Management begins operations

200724-hour e-Heya Support Center established

2006Lease Management Trust System launchedDaito Owners Association established

500,000units2007

1970s ̶ 80s 1990s

Naomi KumakiriPresident and Representative Director, Chief Executive Officer 2000s

0

20

40

60

80

100

2017201520132011200920072005200320011999199719951993199119891987198519831981197919771974

(10,000 units)

［year］

01

To Our Shareholders

Since its foundation in 1974 as a firm that specializes in the effective use of land, the Daito Group has undertaken rental housing construction and management on behalf of landowners and provided optimal residences and services to potential tenants.As a result of our accumulated achievements in accordance with our principle of putting the customer first, the number of units managed by the Daito Group in rental buildings reached one million on January 1, 2017. The Daito Group is deeply grateful for the support of its shareholders, owners, tenants, and other stakeholders.“Entrusted with land that was built on or with land to build on”: The Daito Group reaffirmed the tremendous significance of this motto, which is incorporated into the group name in the form of “Trust,” and we will continue to undertake new challenges and advance in tandem with society so that we can remain a corporate group that is truly trusted by custom-ers.

“Entrusted with land that was built on or with land to build on”The number of units managed by the Daito Group in rental buildings reached one million.

During the nine months ended December 31, 2016, improvement was seen in employment and income, and as a result, the Japanese economy recovered at a moderate pace. The outlook for the future, however, has become uncertain as a result of the rapid decrease in value of the yen and developments in the stock market precipitated by the withdrawal of the United Kingdom from the European Union and the results of the United States presidential election.In the rental housing sector, housing starts in the Daito Group’s principal field of leased housing saw 14th consecutive month in December 2016, increasing by 2.2% on a year on year basis.Against a backdrop of inheritance tax reforms in January 2015 and construction capital procurement costs remaining at stable low levels, asset succession needs of landowners remain robust. In addition, population aging and delaying of marriage

are expected to result in an increase in single-person households, and tenant demand for rental housing is forecast to remain healthy. Companies that support rental housing must continue to provide one-stop services necessary for the construction and management of rental properties based on demand forecasts and highly convenient rental housing that meets diversifying tenant needs.In the construction market, the tight labor conditions since the Great East Japan Earthquake are expected to ease, but uncertainty remains regarding labor supply and demand as a result of the full-scale construction of infrastructure in conjunction with holding the Tokyo Olympics and Paralympics. Future issues for the Company are securing appropriate building construction profits, reinforcing construction structures, and ensuring quality.

Domestic economy and rental housing industry

Supported by a strong market environment, asset succession needs and tenant demand are expected to remain robust.

The Daito Group achieved record highs in nine-month consolidated revenue and all profit indicators in the nine months ended December 31, 2016. The Group reported consolidated net sales of 1,105,479 million yen (up 5.3% year on year), operating income of 106,166 million yen (up 21.0%), ordinary income of 109,378 million yen (up 20.1%), and quarterly net income attributable to owners of the parent company of 74,062 million yen (up 23.6%).There are no changes to the projected results for the full year announced on Octo-ber 17, 2016.Construction orders received, an indicator of future performance, were 460,703 million yen (down 2.7% year on year), and the construction order balance was

873,007 million yen (up 5.4%). The Group will continue its efforts to achieve its plans.Occupancy rates, indicators of the health of the real estate business, were 96.2% for residential use (up 0.2 points year on year) and 98.4% for commercial use (up 0.3 points). Thus, the Group continues to maintain high occupancy rates.Reaching one million units under management was a single milestone, and the Daito Group will continue to provide valuable products and services to owners and tenants.We look forward to the continued support of our shareholders and investors.

January 2017

Consolidated operating results for the nine months ended December 31, 2016

Record highs were achieved for revenue and all profit indicators.

Number of Units Managed by the Daito Group

Number of Units Managed by Major Japanese Management Companies

Source: Zenkoku Chintai Jutaku Shimbun weekly newspaper, July 25, 2016 issue


Number of Units Managed by Major American Management Companies

Greystar Real Estate Partners, LLC

Lincoln Property Company

Pinnacle

Equity Residential

WinnCompanies

413,679 units

165,251 units

134,725 units

109,540 units

98,817 units

Source: NMHC 2016 Top 50 Largest Apartment Managers

1

2

3

4

5

I would like to express my gratitude to our sharehold-ers and investors for their continued support.The operating results and efforts of the Daito Group for the nine months ended December 31, 2016 (from April 1, 2016 to December 31, 2016) are reported on the right.


1

2

3

4

5

Daito Group

Sekisui House, Ltd.

Leopalace21 Corporation

Daiwa Living Co., Ltd.

Starts Group

923,624 units

565,471 units

561,961 units

462,997 units

437,153 units

Reference Information Urban Renaissance Agency

Approximately 740,000 units

50units1975

1,000units1981

20,000units1989

100,000units1993

150,000units1996

200,000units1998

300,000units2002

800,000units2013

January 1, 2017

One Million Units Reached!

1974Daito Sangyo established in Nagoya City, Aichi Prefecture

1978Name changed from Daito Sangyo to Daito Construction

1988Name changed from Daito Construction to Daito Trust Construction

1980Daito Kyosaikai established

1995New Crestall 24 launched

1992Daito Trust Construction shares listed on the First Section of the Tokyo Stock Exchange

1999Daito Building Management begins operations

200724-hour e-Heya Support Center established

2006Lease Management Trust System launchedDaito Owners Association established

500,000units2007

1970s ̶ 80s 1990s

Naomi KumakiriPresident and Representative Director, Chief Executive Officer 2000s

0

20

40

60

80

100

2017201520132011200920072005200320011999199719951993199119891987198519831981197919771974

(10,000 units)

［year］

02

0

500

1,000

1,500

2,000

54.1

82.489.7 91.5

101.0

72.4 75.487.7

106.1118.0

56.3

85.575.0

93.3

78.4

95.8 91.0105.5 109.3

122.0

67.2

56.155.251.6

34.3

46.4 50.259.9

74.082.1

　　 3rd quarter　　 Full business year　　 Full-year plan

431

648583

693 634710 766

863964

1,051

233

190177165 238

199185170159

0

25

50

75

100［%］

80.0%80.1%82.8%80.0%

50.0%

80.0%80.1%82.8%80.0%

50.0%50.0%50.1%52.8%50.0%50.0% 50.0%50.1%52.8%50.0%50.0%

(projected)288

　　 3rd quarter　　 Full business year　　 Full-year plan 　　 3rd quarter　　 Full business year　　 Full-year plan

　　 3rd quarter　　 Full business year　　 Full-year planPayout ratio　　 Total shareholder return ratio

Mid term　　Term end　　Term-end plan

(billions of yen)

0

35

70

105

140(billions of yen)

0

35

70

105


2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

819.2

1,152.41,259.6

1,353.1 1,411.6

915.5991.2 1,049.6 1,105.4

1,498.0

0

25

50

75


2017/3(43rd Term)

2016/3(42nd Term)

2015 /3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

350

700

1,050

1,400(yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015 /3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

150

300

450

600(yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015 /3*(41st Term)

2014/3(40th Term)

2013/3(39th Term)

* The FY2015 annual dividend includes a commemorative dividend of ¥20 to celebrate the Company’s 40th founding anniversary.

Financial Highlights (Consolidated) & Dividend Plan

¥1,105.4 billion　　(+5.3 % YoY) ¥106.1 billion　　(+21.0 % YoY) ¥109.3 billion　　(+20.1 % YoY)

¥74.0billion　　(+23.6 % YoY) ¥964.93　　(+25.8 % YoY) ¥526.00(Plan) 50.0%(Plan)80.0%(Plan)

Ordinary incomeNet sales Operating income

Net income attributable to owners of the parent

Net income per share Dividends per share

Total shareholder return ratioPayout ratio


03

0

500

1,000

1,500

2,000

54.1

82.489.7 91.5

101.0

72.4 75.487.7

106.1118.0

56.3

85.575.0

93.3

78.4

95.8 91.0105.5 109.3

122.0

67.2

56.155.251.6

34.3

46.4 50.259.9

74.082.1


431

648583

693 634710 766

863964

1,051

233

190177165 238

199185170159

0

25

50

75

100［%］

80.0%80.1%82.8%80.0%

50.0%

80.0%80.1%82.8%80.0%

50.0%50.0%50.1%52.8%50.0%50.0% 50.0%50.1%52.8%50.0%50.0%

(projected)288

　　 3rd quarter　　 Full business year　　 Full-year plan 　　 3rd quarter　　 Full business year　　 Full-year plan

　　 3rd quarter　　 Full business year　　 Full-year planPayout ratio　　 Total shareholder return ratio

Mid term　　Term end　　Term-end plan

(billions of yen)

0

35

70

105


0

35

70

105


2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

819.2

1,152.41,259.6

1,353.1 1,411.6

915.5991.2 1,049.6 1,105.4

1,498.0

0

25

50

75


2017/3(43rd Term)

2016/3(42nd Term)

2015 /3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

350

700

1,050

1,400(yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015 /3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

150

300

450

600(yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015 /3*(41st Term)

2014/3(40th Term)

2013/3(39th Term)

* The FY2015 annual dividend includes a commemorative dividend of ¥20 to celebrate the Company’s 40th founding anniversary.

Financial Highlights (Consolidated) & Dividend Plan

¥1,105.4 billion　　(+5.3 % YoY) ¥106.1 billion　　(+21.0 % YoY) ¥109.3 billion　　(+20.1 % YoY)

¥74.0billion　　(+23.6 % YoY) ¥964.93　　(+25.8 % YoY) ¥526.00(Plan) 50.0%(Plan)80.0%(Plan)

Ordinary incomeNet sales Operating income


Net income per share Dividends per share

Total shareholder return ratioPayout ratio


Consolidated financial statement

Assets declined by 33.8 billion yen year on year due to paymentof cash dividends and incomes taxes and other factors. Liabilities decreased by 54.4 billion yen as a result of factors including payment of unpaid income taxes and repayment of long-term loans. Further, assets increased by 20.6 billion yen year on year despite the payment of cash dividends due to the recording of quarterly net income attributable to owners of the parent and other factors.

479,621248,927728,548

281,883198,143480,026

253,25429,06034,540

206,509△16,857△7,151

3532,065

248,522728,548

433,860260,837694,697

234,382191,173425,555

277,96029,06034,540

244,013△29,654△11,251

3842,048

269,142694,697

△19,676

△85,637

△44,385

△435

△150,135

255,551

105,415

11,424

△11,073

△63,106

△3,698

△66,454

182,631

116,176

The Daito Group achieved record highs for revenue and all profit indicators.This result is attributable to steady construction progress in the construction business, an increase in rental income in the real estate business, and an increase in the number of users of the Guarantor-free Service. In other business, individual Group companies contributed to revenue and profits through increases in the number of users of day services, an increase in the number of insurance policies handled for owners and tenants, and other factors.Furthermore, gross profit was up as a result of factors including improved profitability in the construction business resulting from price reforms and reductions in labor and materials costs, and a decline in unit purchase prices in the LP gas supply business.

1,049,688861,317188,371100,63787,733

4,222895

91,06151

21390,89830,92559,973

4859,924

1,105,479892,791212,687106,520106,166

4,3121,100

109,37831

326109,083

34,92974,154

9174,062

Net cash provided by operating activities was 11.4 billion yen as a result of factors including the recording of 109 billion yen in net income before taxes and other adjustments as well as payment of income taxes and higher trade receivables due to an increase in construction in process.

1. Cash flows from operating activities

Net cash used in investing activities was 11 billion yen, a result attributable to factors including acquisition of solar panels and purchase of software in relation to development of new systems.

2. Cash flows from investing activities

(Millions of yen)Consolidated income statement

(Millions of yen)Consolidated balance sheet

(Millions of yen)Cash flow statement

Assets

Liabilities

Net assets

Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Translation differences in accordance with the cash and cash equivalents

Increase or decrease in cash and cash equivalents

Cash and cash equivalents at beginning of year

Quarter-end balance of cash and cash equivalents

Net sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Operating income

Non-operating income

Non-operating expense

Ordinary income

Extraordinary income

Extraordinary loss

Before taxes and other adjustments quarter profit

Income taxes

Net income

Net income attributable to non-controlling interests


Account item Account item Account item

Current assets

Noncurrent assets

Total assets

Current liabilities

Noncurrent liabilities

Total liabilities

Shareholders' equity

Capital stock

Capital surplus

Retained earnings

Treasury stock

Accumulated othercomprehensive income

Stock acquisition right

Non-controlling interests

Total Net Assets

Total liabilities and net assets

Nine months ended December 31, 2016From April 1, 2016 to December 31, 2016


First nine months of the fiscal year ending March 31, 2017

(As of December 31, 2016)

Preceding fiscal year(March 31, 2016)



Net cash used in financing activities was 63.1 billion yen as a result of factors including payment of cash dividends and repayment of long-term loans.

As a result of the above, the quarter-end balance of cash and cash equivalents for the nine months ended December 31, 2016 was 116.1 billion yen, down 66.4 billion yen from the end of the previous fiscal year.

3. Cash flows from financing activities

04

Topics

The Daito Group placed first in the “2017 Rental Housing Brokerage Ranking by Number of Units” announced by Zenkoku Chintai Jutaku Shimbun weekly newspaper company for the seventh consecutive year.The newspaper surveys real estate companies nationwide and prepares the ranking based on the responses. Rental housings brokered by Housecom Corporation, a Group company, are also included in the Daito Group’s ranking.The Daito Group will continue to support comfortable living by customers through the provision of high-quality products and services that meet residence and lifestyle needs.

“2017 Rental Housing Brokerage Ranking by Number of Units”197,969 Units, No. 1 for 7th Consecutive Year

1

2

3

4

5

2011 2012 2013 2014 2015 2016

Daito Trust Construction Co., Ltd.19.34






Able Inc.17.79

Able Inc.16.54

Able Inc.15.33

minimini Corporation15.50


Able Inc.15.29

Able Inc.15.85




Able Inc.15.16

Able Inc.14.45



Joguchi Atom Co., Ltd.5.32

House Mate Group5.27



Token Corporation6.29


Housemate Partners Co., Ltd.6.71





Housecom Corporation6.43



Daito Group19.79

2017

Source: 2017 Rental Housing Brokerage Ranking by Number of Units, Zenkoku Chintai Jutaku Shimbun weekly newspaper

Number of Rental Housing Units Brokered (10,000 units)

95

100

92.5

97.5

0

10

20

30

40

25

0

50

75

100［%］

25

0

50

75

100［%］

2016/122015/122014/122013/122012/12

328.422.8

32.8

14.0 15.6 17.1 17.3 16.4

5.9 6.6 7.0 7.3 8.8

3.5 4.0 5.3 6.3 6.9

0.8 1.0 1.1 0.8 1.1

33.5 36.6 37.8 37.6

7.4 8.610.4 11.0 12.5

25.728.4 29.3

33.3

35.1 32.6 29.7 29.4 31.8115.2

126.6 126.3 130.8 145.3

387.8425.8 444.1 457.7

494.8 448.1 466.8 473.4 460.7

739.9 768.6 799.2 828.4 873.0

95.8

95.496.1

96.5

95.9

97.8

96.0

98.1

96.2

98.4

(billions of yen)

0

100

200

300

400

500

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

(billions of yen)

0

700

600

500

400

300

200

100

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

5

0

10

15

［%］

467.9

26.3 32.9 39.0 46.4 54.7

5.66.6 7.3 8.1

8.9

501.9536.9

576.1614.3

20(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

10

20(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

5

10(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

［％］

Consolidated Business Overview by Segment

Completed construction contracts increased by 3.0% year on year to 457.7 billion yen as a result of steady progress in construction against a backdrop of a healthy balance of orders received, and the gross profit margin increased by 2.4 points to 31.8% due to factors including profit improvement resulting from a price revision. The balance of orders received decreased by 2.7% to 460.7 billion yen. The construction order balance rose by 5.4% to 873.0 billion yen.

41.4％¥457.7 billion 55.6％¥614.3 billion 3.0％¥33.3 billion

Completed construction contracts/Gross profit/Gross profit margin

Net sales increased by 6.6% year on year to 614.3 billion yen, and the gross profit margin increased by 0.8 points to 8.9% as a result of factors including higher rental revenue attributable to an increase in the number of managed properties and an increase in the number of users of the Guarantor-free Service. Key indicators remained at healthy levels: the number of tenants recruited increased by 6.2% to 185,843, and occupancy rates as of December 31 were 96.2% (up 0.2 points year on year) for leased residential properties and 98.4% (up 0.3 points) for leased commercial properties.

Occupancy rate, leased residential properties/Occupancy rate, leased commercial properties

Occupancy rate, leased residential propertiesOccupancy rate, leased commercial properties

Net sales/Gross profit/Gross profit margin

Net sales increased by 13.7% year on year to 33.3 billion yen as a result of factors including an increase in the number of users in the childcare and day service business, an increase in the number of insurance sales handled for owners and tenants, and an increase in the number of electric power supply units. On the other hand, the gross profit margin fell by 0.2 points year on year to 37.6%. The number of childcare facilities increased to 76 (up 3 year on year), and the number of day service facilities increased to 11 (up 5 year on year), and we continue to build the foundations for further increases in profits.


(YoY) +3.0％(YoY) +13.7％

(YoY) +6.6％

(YoY) -2.7％

(YoY) +5.4％

(YoY) +2.4P

(YoY) +0.3P

(YoY) +0.2P

(YoY) +0.8P

(YoY) -0.2P

■ Completed construction contracts ■ Gross profit Gross profit margin

0

0

Construction orders received

Construction order balance■ Net sales ■ Gross profit

■ Net sales ■ Gross profit

Real estate business

Other business

Construction business

Salescompositionratio



■ Net sales ■ Gross profit Gross profit margin ■ Net sales ■ Gross profit Gross profit margin

300


2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

1,000

2,000(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

Net sales/Gross profit, LP gas supply business

Net sales/Gross profit, day service/childcare business

05

Topics

Gaspal Corporation, the Daito Group company, won the Director-General for Commerce, Distribution and Industrial Safety Policy Award of Ministry of Economy, Trade and Industry̶the highest honor for excellence in safety by an LP gas distributor̶for the fourth consecutive year. Gaspal was chosen from among approximately 19,000 companies nationwide as a distributor that made outstanding contributions to LP gas safety. Gaspal will continue its efforts to raise safety levels even further so that it can provide safety and security to all of its customers.

New Disaster Response MeasuresThe mobile terminals used for inspection and i n ves t i ga t ion were new ly equ ipped w i th a function to receive gas emergency information. As a result , personnel wil l be able to quickly acquire damage information and so on in the event of a natural disaster.

Gaspal Wins the Director-General for Commerce, Distribution and Industrial Safety Policy Award of Ministry of Economy, Trade and Industry for 4th Consecutive Year

A mobile terminal

The awards ceremony at the Josui Hall held on October 27, 2016Gaspal Managing Director Okazaki

The award certificate

Topics

The Daito Group placed first in the “2017 Rental Housing Brokerage Ranking by Number of Units” announced by Zenkoku Chintai Jutaku Shimbun weekly newspaper company for the seventh consecutive year.The newspaper surveys real estate companies nationwide and prepares the ranking based on the responses. Rental housings brokered by Housecom Corporation, a Group company, are also included in the Daito Group’s ranking.The Daito Group will continue to support comfortable living by customers through the provision of high-quality products and services that meet residence and lifestyle needs.

“2017 Rental Housing Brokerage Ranking by Number of Units”197,969 Units, No. 1 for 7th Consecutive Year

1

2

3

4

5

2011 2012 2013 2014 2015 2016







Able Inc.17.79

Able Inc.16.54

Able Inc.15.33



Able Inc.15.29

Able Inc.15.85




Able Inc.15.16

Able Inc.14.45



Joguchi Atom Co., Ltd.5.32






Housemate Partners Co., Ltd.6.71








Daito Group19.79

2017

Source: 2017 Rental Housing Brokerage Ranking by Number of Units, Zenkoku Chintai Jutaku Shimbun weekly newspaper

Number of Rental Housing Units Brokered (10,000 units)

95

100

92.5

97.5

0

10

20

30

40

25

0

50

75

100［%］

25

0

50

75

100［%］

2016/122015/122014/122013/122012/12

328.422.8

32.8

14.0 15.6 17.1 17.3 16.4

5.9 6.6 7.0 7.3 8.8

3.5 4.0 5.3 6.3 6.9

0.8 1.0 1.1 0.8 1.1

33.5 36.6 37.8 37.6

7.4 8.610.4 11.0 12.5

25.728.4 29.3

33.3

35.1 32.6 29.7 29.4 31.8115.2

126.6 126.3 130.8 145.3

387.8425.8 444.1 457.7

494.8 448.1 466.8 473.4 460.7

739.9 768.6 799.2 828.4 873.0

95.8

95.496.1

96.5

95.9

97.8

96.0

98.1

96.2

98.4

(billions of yen)

0

100

200

300

400

500

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

(billions of yen)

0

700

600

500

400

300

200

100

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

5

0

10

15

［%］

467.9

26.3 32.9 39.0 46.4 54.7

5.66.6 7.3 8.1

8.9

501.9536.9

576.1614.3

20(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

10

20(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

0

5

10(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

［％］

Consolidated Business Overview by Segment

Completed construction contracts increased by 3.0% year on year to 457.7 billion yen as a result of steady progress in construction against a backdrop of a healthy balance of orders received, and the gross profit margin increased by 2.4 points to 31.8% due to factors including profit improvement resulting from a price revision. The balance of orders received decreased by 2.7% to 460.7 billion yen. The construction order balance rose by 5.4% to 873.0 billion yen.

41.4％¥457.7 billion 55.6％¥614.3 billion 3.0％¥33.3 billion

Completed construction contracts/Gross profit/Gross profit margin

Net sales increased by 6.6% year on year to 614.3 billion yen, and the gross profit margin increased by 0.8 points to 8.9% as a result of factors including higher rental revenue attributable to an increase in the number of managed properties and an increase in the number of users of the Guarantor-free Service. Key indicators remained at healthy levels: the number of tenants recruited increased by 6.2% to 185,843, and occupancy rates as of December 31 were 96.2% (up 0.2 points year on year) for leased residential properties and 98.4% (up 0.3 points) for leased commercial properties.

Occupancy rate, leased residential properties/Occupancy rate, leased commercial properties

Occupancy rate, leased residential propertiesOccupancy rate, leased commercial properties


Net sales increased by 13.7% year on year to 33.3 billion yen as a result of factors including an increase in the number of users in the childcare and day service business, an increase in the number of insurance sales handled for owners and tenants, and an increase in the number of electric power supply units. On the other hand, the gross profit margin fell by 0.2 points year on year to 37.6%. The number of childcare facilities increased to 76 (up 3 year on year), and the number of day service facilities increased to 11 (up 5 year on year), and we continue to build the foundations for further increases in profits.


(YoY) +3.0％(YoY) +13.7％

(YoY) +6.6％

(YoY) -2.7％

(YoY) +5.4％

(YoY) +2.4P

(YoY) +0.3P

(YoY) +0.2P

(YoY) +0.8P

(YoY) -0.2P

■ Completed construction contracts ■ Gross profit Gross profit margin

0

0

Construction orders received

Construction order balance■ Net sales ■ Gross profit

■ Net sales ■ Gross profit

Real estate business

Other business

Construction business




■ Net sales ■ Gross profit Gross profit margin ■ Net sales ■ Gross profit Gross profit margin

300


2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

1,000

2,000(billions of yen)

2017/3(43rd Term)

2016/3(42nd Term)

2015/3(41st Term)

2014/3(40th Term)

2013/3(39th Term)

Net sales/Gross profit, LP gas supply business

Net sales/Gross profit, day service/childcare business

06

The Company signed a supporting company agreement with the Japan Football Association (JFA) for the Japanese national football team. By acting as a supporting company from November 2016 to December 2022, the Company will share the excitement of fans in Japan while raising recognition of the Company and enhancing its brand.

The Company Signs Supporting Company Agreement with Japan Football Association

What is a Japanese national football team supporting company?

A Japanese national football team supporting company is a sponsor category that supports SAMURAI BLUE (the men’s national team), Nadeshiko Japan (the women’s national team), U-23, U-20, U-17, futsal, and beach soccer teams.

The Japanese national football team supporting company composite logo

Right: Kozo Tashima, President, JFALeft: Naomi Kumakiri, President, Represen-tative Director, and Chief Executive Officer, Daito

Topics

◀Kozo Tashima, the President of JFA during a visit to the Company

The Daito Group was selected for the first time for the Climate A List, the highest assessment, in the CDP Climate Change Report 2016, a summary of results of a corporate survey on climate change conducted by the Carbon Disclosure Project (CDP). This year, a total of 193 companies worldwide including 22 Japanese companies were selected for the Climate A List.The Daito Group will actively continue its measures to reduce environmental impact and to disclose environmental information to contribute to the formation of a sustainable society.

Climate Change MeasuresThe Daito Group Selected for the First Time for the Climate A List, the Highest Assessment by the CDP

What is the Climate A List?

Based on the responses received from companies, the CDP evaluates the level of climate change response, information disclosure, and other activities and selects companies that implement best practices in environmental management fields for inclusion in the Climate A List.

What is the CDP?

The CDP is an international non-profit organization established in 2000 in the United Kingdom to conduct activities for the creation of a sustainable economy. The CDP represents 827 institutional investors with total assets under management in excess of 100 trillion USD and evaluates the climate change measures such as reducing greenhouse gas emissions as well as information disclosures by more than 5,000 companies around the world (500 companies in Japan).

Construction Companies in the Current Climate A List

Daito Trust Construction Co., Ltd.

Taisei Corporation

Toda Corporation

Sumitomo Forestry Co., Ltd.

Kajima Corporation

Topics

The Government Pension Investment Fund (GPIF) released information on it equity and other holdings as of the end of March 2016(announced November 25, 2016). The GPIF’s holdings of the Company’s shares had a total market value of 95.5 billion yen, and of the 2,120 equities held by the GPIF, the Company was ranked 75th* in terms of market value. This is believed to reflect that value placed on the Company as a long-term, stable investment.Going forward, the entire Daito Group will continue its efforts to increase corporate value so that it can meet the expectations of its shareholders.

The Company’s Shares Selected for Inclusion in GPIF Equity Holdings

What is the GPIF?

The GPIF is an independent administrative institution that manages and invests pension funds under consignment from the Minister of Health, Labour and Welfare. The GPIF establishes an asset composition allocation (portfolio) made up of bonds, equities, and other assets from a long-term perspective and invests and manages funds with distrib-uted investment as its core principle. The GPIF is also tasked with ensuring the liquidity (cash and so on) necessary for pension and other payments and efficiently managing cash.

GPIF Domestic Equity Holdings (Major Construction and Housing Manufacturers)

Topics

Company Market Value of Equity Holdings¥149.4 billion¥109.1 billion¥95.5 billion¥62.6 billion¥59.5 billion¥59.5 billion¥46.7 billion¥16.8 billion¥5.1 billion

* Excerpted from “Portfolio Holdings by Asset Category as of March 31, 2016” released by the GPIF on November 25, 2016.

Daiwa House Industry Co., Ltd.Sekisui House, Ltd.Daito Trust Construction Co., Ltd.Taisei CorporationObayashi CorporationKajima CorporationShimizu CorporationSumitomo Forestry Co., Ltd.PanaHome Corporation

(In order of aggregate market value)

07

The Company signed a supporting company agreement with the Japan Football Association (JFA) for the Japanese national football team. By acting as a supporting company from November 2016 to December 2022, the Company will share the excitement of fans in Japan while raising recognition of the Company and enhancing its brand.

The Company Signs Supporting Company Agreement with Japan Football Association

What is a Japanese national football team supporting company?

A Japanese national football team supporting company is a sponsor category that supports SAMURAI BLUE (the men’s national team), Nadeshiko Japan (the women’s national team), U-23, U-20, U-17, futsal, and beach soccer teams.

The Japanese national football team supporting company composite logo

Right: Kozo Tashima, President, JFALeft: Naomi Kumakiri, President, Represen-tative Director, and Chief Executive Officer, Daito

Topics

◀Kozo Tashima, the President of JFA during a visit to the Company

The Daito Group was selected for the first time for the Climate A List, the highest assessment, in the CDP Climate Change Report 2016, a summary of results of a corporate survey on climate change conducted by the Carbon Disclosure Project (CDP). This year, a total of 193 companies worldwide including 22 Japanese companies were selected for the Climate A List.The Daito Group will actively continue its measures to reduce environmental impact and to disclose environmental information to contribute to the formation of a sustainable society.

Climate Change MeasuresThe Daito Group Selected for the First Time for the Climate A List, the Highest Assessment by the CDP

What is the Climate A List?

Based on the responses received from companies, the CDP evaluates the level of climate change response, information disclosure, and other activities and selects companies that implement best practices in environmental management fields for inclusion in the Climate A List.

What is the CDP?

The CDP is an international non-profit organization established in 2000 in the United Kingdom to conduct activities for the creation of a sustainable economy. The CDP represents 827 institutional investors with total assets under management in excess of 100 trillion USD and evaluates the climate change measures such as reducing greenhouse gas emissions as well as information disclosures by more than 5,000 companies around the world (500 companies in Japan).

Construction Companies in the Current Climate A List


Taisei Corporation

Toda Corporation

Sumitomo Forestry Co., Ltd.

Kajima Corporation

Topics

The Government Pension Investment Fund (GPIF) released information on it equity and other holdings as of the end of March 2016(announced November 25, 2016). The GPIF’s holdings of the Company’s shares had a total market value of 95.5 billion yen, and of the 2,120 equities held by the GPIF, the Company was ranked 75th* in terms of market value. This is believed to reflect that value placed on the Company as a long-term, stable investment.Going forward, the entire Daito Group will continue its efforts to increase corporate value so that it can meet the expectations of its shareholders.

The Company’s Shares Selected for Inclusion in GPIF Equity Holdings

What is the GPIF?

The GPIF is an independent administrative institution that manages and invests pension funds under consignment from the Minister of Health, Labour and Welfare. The GPIF establishes an asset composition allocation (portfolio) made up of bonds, equities, and other assets from a long-term perspective and invests and manages funds with distrib-uted investment as its core principle. The GPIF is also tasked with ensuring the liquidity (cash and so on) necessary for pension and other payments and efficiently managing cash.

GPIF Domestic Equity Holdings (Major Construction and Housing Manufacturers)

Topics

Company Market Value of Equity Holdings¥149.4 billion¥109.1 billion¥95.5 billion¥62.6 billion¥59.5 billion¥59.5 billion¥46.7 billion¥16.8 billion¥5.1 billion

* Excerpted from “Portfolio Holdings by Asset Category as of March 31, 2016” released by the GPIF on November 25, 2016.

Daiwa House Industry Co., Ltd.Sekisui House, Ltd.Daito Trust Construction Co., Ltd.Taisei CorporationObayashi CorporationKajima CorporationShimizu CorporationSumitomo Forestry Co., Ltd.PanaHome Corporation

(In order of aggregate market value)

The Company began displaying architectural models at the Archi-Depot Museum, Japan’s only specialized museum dedicated to architectural models. The exhibit, a first for the rental housing industry, began on December 1, 2016. The museum is exhibiting winning entries from the “Leased Housing Competition” that the Company held as well as collaborative projects created with renowned architects.The Company hopes to deepen interest in and knowledge of architecture among future generations of architects by exhibiting winning entries from contests that it holds and new product models in the future.

Models Displayed at Archi-Depot Museum, a First for the Rental Housing Industry

Days of OperationHours

Admission feeAddress

Average number of visitorsOfficial website

Tuesday to Sunday (closed Mondays; if Monday is a national holiday, the museum will be closed the following Tuesday)11:00 to 21:00 (entry is permitted until one hour before closing time)General: 1,000 yen　High school and younger students and under 18 years old: 500 yenFirst floor, Warehouse Terrada Main Storage Center, 2-6-10, Higashi-Shinagawa, Shinagawa-ku, TokyoApproximately 3,000 visitors per monthhttp://archi-depot.com/

Overview of the Archi-Depot Museum

Views of the exhibit at the Archi-Depot Museum

Topics

08

Nationwide broadcast of “e-Heya Song Winter Version”, a new commercial for e-Heya Net featuring Hinako Sakurai, as in past commercials, began on December 26, 2016. Appearing for the first time are Fuku Suzuki and Hachiro Ika. The commercial has enigmatic song lyrics and a melody that sticks in your head once you hear it. The visuals include clay animation portraying the actors, creating a commercial that conveys feelings of hospitality and warmth.

New Commercial for e-Heya NetNationwide Broadcast of “e-Heya Song Winter Version” Begins!

Topics

Image of the new commercial

The commercial uses clay animation to convey feelings of hospitality and warmth

Nationwide broadcast of new DK PLANET series television commercial for DK SELECT began on January 20, 2017. Hiroshi Tamaki and Fumino Kimra once again appear in the commercial. A total of four episodes “̶Woman’s Heart Version”, “Flexible Layout Version”, “Heat Insula-tion Version”, and “Free Renewals Version”̶ have been broadcast.The commercials focus on conveying the message of “selecting rental housing based on the brand” and highlight four features unique to the Company rental housing that meet diverse lifestyle needs.

New Commercial for DK SELECTBroadcast of 4 Episodes of DK PLANET Series Begin!

Topics

Woman’s Heart Version

Flexible Layout Version

Heat Insulation Version

Free Renewals Version

09

Daito Trust Construction Co., Ltd.Corporate Planning Division

For inquiries regarding the shareholder benefit plan:

In December 2015, we made certain changes and expansions to the shareholder benefit plan, in consideration of utilizationresults and the opinions of shareholders.The plan applies to shareholders as of March 31, 2016, and the following benefits are available, according to the number ofshares held and the period of holding.

＋ ¥10,000 ＋ ¥10,000

＋ ¥1,000 ＋ ¥1,000Plus

Plus

* Support fund for activities geared toward areas recovering from disasters, and to regional revitalization

Barley tea manufactured by Care Partner Co., Ltd.

50% discount ticket for one-night stay at The Strings By InterContinental Tokyo

50% discount ticket for three-night stay at Le Méridien Kuala Lumpur (Malaysia)

Natural spring water from Azumino in Shinshu

When making referrals, please contact us at the following contact number.* 1.1% of construction contracts (compared with the normal rate of 1%)* ¥11,000 regardless of the amount of rent (compared with the normal rate of ¥10,000)

* Shareholders who wish to receive their free ticket by postal mail: please contact us at the following contact number.

Gift certificates Donation to theDaito Group Mirai Fund


Tea

Donation to theDaito Group Mirai Fund*

water

Gift certificates

1 2 3 4 5

A

a b c d

B

¥300,000 rebate on a construction contract

¥300,000 rebate on the urchase of acondominium unit

10% increase inreferral awards

Free option facilities granted in a construction contract (up to the value of ¥300,000)

One free ticketfor leasebrokeragecommission

1 2 3 4

Shareholder Benefit Plan Search

(Note 1) (Note 1) (Note 1)

Expansion

Expansion

Expansion

Expansion

Shareholder Benefit Plan

or more shares, with shares held for 1 year or longer

100

or more shares, with shares held for 3 years or longer

300

All shareholders holding or more shares

100

Inquiries are accepted from 10:00 to 17:00 excluding Saturdays, Sundays, publicholidays and company holidays during summer and winter* Please provide us with your shareholder number, name, address, and telephone number when you contact us. Complimentary tickets will be sent to the registered address.

100 to 299 shares300 to 499 shares500 to 999 shares1,000 or more shares

・・・・・・・・・・ ¥1,000・・・・・・・・・・ ¥3,000・・・・・・・・・・ ¥5,000・・・・・ ¥10,000

Gift certificates are granted in accordance with the number of shares held as follows


・・・・・・・・・・ ¥1,000・・・・・・・・・・ ¥3,000・・・・・・・・・・ ¥5,000・・・・・ ¥10,000

Donations can be made in accordance with the number of shares held as follows

* Same amount regardless of number of shares held * Same amount regardless of number of shares held


(350 ml X 24 bottles) (350 ml X 24 bottles)

Shareholders as of March 31Either A or B (right)

is available (once a year)

Shareholders as of March 31One of a, b, c or d is available(once a year)

Shareholders as of March 31One of 1, 2, 3 or 4 is available(once a year)

Shareholders as of both

March 31 and September 30All of ①. through ⑤. (right) may be selected

(twice a year)

: +81-3-6718-9068: +81-3-6718-9069

TELFAX

Eligibility

Eligibility

Eligibility

Eligibility

(Note 2) (Note 2)

(Note 1) Your name must be in the shareholders registry as of the contract date.　• Shareholders as of March 31, 2016: Applicable to contracts concluded from April 1, 2016 to September 30, 2016　• Shareholders as of September 30, 2016: Applicable to contracts concluded from October 1, 2016 to March 31, 2017

(Note 2) • Transport expenses to the hotel shall be borne by the shareholder　• Room availability is subject to confirmation

10

Daito Trust Construction Co., Ltd.Corporate Planning Division

For inquiries regarding the shareholder benefit plan:

In December 2015, we made certain changes and expansions to the shareholder benefit plan, in consideration of utilizationresults and the opinions of shareholders.The plan applies to shareholders as of March 31, 2016, and the following benefits are available, according to the number ofshares held and the period of holding.

＋ ¥10,000 ＋ ¥10,000

＋ ¥1,000 ＋ ¥1,000Plus

Plus

* Support fund for activities geared toward areas recovering from disasters, and to regional revitalization

Barley tea manufactured by Care Partner Co., Ltd.

50% discount ticket for one-night stay at The Strings By InterContinental Tokyo

50% discount ticket for three-night stay at Le Méridien Kuala Lumpur (Malaysia)

Natural spring water from Azumino in Shinshu

When making referrals, please contact us at the following contact number.* 1.1% of construction contracts (compared with the normal rate of 1%)* ¥11,000 regardless of the amount of rent (compared with the normal rate of ¥10,000)

* Shareholders who wish to receive their free ticket by postal mail: please contact us at the following contact number.



Tea

Donation to theDaito Group Mirai Fund*

water

Gift certificates

1 2 3 4 5

A

a b c d

B

¥300,000 rebate on a construction contract

¥300,000 rebate on the urchase of acondominium unit

10% increase inreferral awards

Free option facilities granted in a construction contract (up to the value of ¥300,000)

One free ticketfor leasebrokeragecommission

1 2 3 4

Shareholder Benefit Plan Search

(Note 1) (Note 1) (Note 1)

Expansion

Expansion

Expansion

Expansion

Shareholder Benefit Plan

or more shares, with shares held for 1 year or longer

100

or more shares, with shares held for 3 years or longer

300

All shareholders holding or more shares

100

Inquiries are accepted from 10:00 to 17:00 excluding Saturdays, Sundays, publicholidays and company holidays during summer and winter* Please provide us with your shareholder number, name, address, and telephone number when you contact us. Complimentary tickets will be sent to the registered address.


・・・・・・・・・・ ¥1,000・・・・・・・・・・ ¥3,000・・・・・・・・・・ ¥5,000・・・・・ ¥10,000

Gift certificates are granted in accordance with the number of shares held as follows


・・・・・・・・・・ ¥1,000・・・・・・・・・・ ¥3,000・・・・・・・・・・ ¥5,000・・・・・ ¥10,000

Donations can be made in accordance with the number of shares held as follows



(350 ml X 24 bottles) (350 ml X 24 bottles)

Shareholders as of March 31Either A or B (right)

is available (once a year)

Shareholders as of March 31One of a, b, c or d is available(once a year)

Shareholders as of March 31One of 1, 2, 3 or 4 is available(once a year)

Shareholders as of both

March 31 and September 30All of ①. through ⑤. (right) may be selected

(twice a year)

: +81-3-6718-9068: +81-3-6718-9069

TELFAX

Eligibility

Eligibility

Eligibility

Eligibility

(Note 2) (Note 2)

(Note 1) Your name must be in the shareholders registry as of the contract date.　• Shareholders as of March 31, 2016: Applicable to contracts concluded from April 1, 2016 to September 30, 2016　• Shareholders as of September 30, 2016: Applicable to contracts concluded from October 1, 2016 to March 31, 2017

(Note 2) • Transport expenses to the hotel shall be borne by the shareholder　• Room availability is subject to confirmation

Corporate Data


June 20, 1974

29,060,991,263 yen

2-16-1, Konan, Minato-ku, Tokyo 108-8211 Japan

221

180

10,328

(1) Design and construction of apartments, condominiums, rental retail buildings, factories, warehouses, and office buildings (2) Real estate brokerage such as tenant recruiting, building maintenance, and property management including contracting arrangements

Corporation Name

Established

Capital

Head Office

Branch Offices

Lease Brokerage Branch Offices

Employees

Business Activities

(As of December 31, 2016) Officers (As of December 31, 2016)

Naomi KumakiriHitoshi KadouchiKatsuma KobayashiShuji KawaiKanitsu UchidaKei TakeuchiYukio DaimonKazuhiko SaitoShinichi MarukawaTakeshi NakagawaYujiro SasamotoToshiaki YamaguchiMami Sasaki

President and Representative Director, Chief Executive Officer

Directors Audit & Supervisory Board Member Executive Officers

Corporate Data/Officers/Information for Shareholders

Vice President and Representative DirectorManaging DirectorManaging DirectorDirectorDirectorDirectorDirectorDirectorDirectorDirector (Outside)Director (Outside)Director (Outside)

Standing Audit & Supervisory Board Member (Outside)Audit & Supervisory Board Member (Outside)Audit & Supervisory Board Member (Outside)Audit & Supervisory Board Member (Outside)

Masayasu UnoHideo HachiyaKazumitsu FutamiKazuo Fujimaki

Shuichi OgawaTakuya IshiiShoji YamadaMasayoshi TanakaHiromichi OnoSachio WashiTakashi SuzukiEiji OkamotoKazunori FukudaFumiaki NakagamiYoshihiro MoriEiji KawaharaMasafumi TateMasayuki KoishikawaKouichi Nakamura

Senior Executive OfficerSenior Executive OfficerSenior Executive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive OfficerExecutive Officer

Information for Shareholders

Public notices shall be electronically posted on the Company’s website.http://www.kentaku.co.jp/ir/koukoku.htmlHowever, in the case where electronic public notice is not available due to an accident or other unavoidable reasons, a notice shall be blished in the Nihon Keizai Shimbun.

Method of public notices

Share transfer procedures

For more information, please contact the securities company where you maintain an account.

Shareholders using a securities company

For more information, please contact Stock Transfer Agency Division, Mitsubishi UFJ Trust and Banking Corporation.

Shareholders who hold shares recorded in a special account

0I20-232-7I I

7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, JapanMitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Division

Inquiries are accepted from 9:00 to 17:00 excluding Saturdays, Sundays and public holidays

Information about the “Social Security and Tax Number System” for shares

Under the Social Security and Tax Number System (*), as a new form of social infrastructure, an Individual Number is allocated to every citizen, for more accurate and coordinated handling of personal information shared across multiple administrative organs.

Concerning security safeguards, scope of usage, and provision of Individual Numbers•Strict legal protection measures have been established for the handling of Individual Numbers.•Usage of Individual Numbers is limited to offices dealing with social security, taxation, and disaster control.•Individual Numbers can be provided on request only for social security and taxation matters.

(*) Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure (Act No. 27 of May 31, 2013)

Use of Individual Numbers in stock-handling servicesAs stipulated by law, shareholders’ Individual Numbers will be stated in payment records and provided to tax offices.

* Payment records related to dividends* Payment records related to stock assignment transactions including purchase requests for shares of less than one trading unit

Principal payment records

Your Individual Numbers given out by your municipality will be needed for taxation procedures relating to shares. For this reason, it will be necessary for shareholders to submit their Individual Numbers to their securities companies and other entities that they transact with.

How the System works

From October 2015

Notification of Individual Numbers beginsNotification from municipality of residence, sent to address registered on resident’s card

From January 2016

Individual Numbers come into useUse of Individual Number in tax returns, declarations and other legal reports for submission to tax offices

From January 2017

Information sharing among administrative organs of Japan begins (planned)

From July 2017

Information sharing extends to local and public organizations, etc. (planned)

Securities code 1878

Fiscal year April 1 to March 31

General Meeting of Shareholders June

Record dateEx-rights Date: March 31Year-end dividend: March 31Interim dividend: September 30

Trading unit 100 shares

Stock exchange listing

Tokyo Stock Exchange (1st Section)Nagoya Stock Exchange (1st Section)

Transfer agent and special account management institution

1-4-5, Marunouchi, Chiyoda-ku, Tokyo, JapanMitsubishi UFJ Trust and Banking Corporation

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Head office 2-16-1, Konan, Minato-ku, Tokyo 108-8211, JapanTEL: +81-3-6718-9111http://www.kentaku.co.jp

securities code: 1878 nine months financial … · landowners remain robust. in addition,...

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