DAIKYO INCORPORATED : 2Q FACT SHEETS

FACT SHEETS

For the Six Months Ended Septermber 30, 2018

(Unaudited)

････ 1
■ Fact Sheets for the year ended March 31, 2018	････ 11
■ Reference Data	････ 22
DAIKYO INCORPORATED
October 26, 2018

■ Fact Sheets for the six months ended Septermber 30, 2018

DAIKYO INCORPORATED

October 26, 2018

(Millions of yen)

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Net sales	126,369	169,500	146,628	133,640	130,645	△ 2,994
Gross profit	15,759	25,890	20,960	16,884	16,717	△ 167
Selling, general and administrative expenses [SG&A]	14,801	15,091	14,367	15,334	15,552	217
Operating income Operating margin	957 0.8%	10,798 6.4%	6,592 4.5%	1,550 1.2%	1,165 0.9%	△ 385 △ 0.3pp
Other income Interest income Dividend income	280	284	318	192	214	22
	31	Reference 50	Data 27	10	11	0
	12	14	20	19	21	2
Other expenses Interest expense	820	669	578	368	355	△ 12
	363	247	143	111	85	△ 26
Ordinary income Ordinary income to net sales ratio	417 0.3%	10,414 6.1%	6,332 4.3%	1,373 1.0%	1,023 0.8%	△ 350 △ 0.2pp
Extraordinary income	39	27	-	0	0	0
Extraordinary loss	140	39	31	4	678	673
Income before income taxes and minority interests	316	10,402	6,300	1,368	344	△ 1,024
Income taxes - current	871	2,276	1,594	834	1,444	609
Income taxes - deferred	△ 1,939	1,149	704	△ 116	△ 799	△ 682
Net income	1,385	6,976	4,001	650	△ 300	△ 951
Net income attributable to noncontrolling interests	1	-	-	-	△ 2	△ 2
Profit attributable to owners of parent company shareholders	1,383	6,976	4,001	650	△ 297	△ 948

Consolidated Statements of OperationsConsolidated Financial Position

As of Sep 30		2014	2015	2016	2017	2018
Current assets		224,984	233,531	216,368	214,983	217,531
Cash and deposits	78,779	94,598	74,823	60,505	52,965
Inventories Real estate for sale Real estate for sale in progress Real estate for development projects	112,670	108,802	112,554	128,405	138,475
	21,313	42,340	37,100	43,241	47,029
	82,284	50,421	59,297	65,071	69,498
	9,073	16,040	16,156	20,092	21,946
Others	33,533	30,130	28,990	26,073	26,091
Fixed assets		50,367	49,413	46,379	44,468	42,257
Property and equipment	17,987	18,523	18,388	14,695	15,208
Others	32,379	30,889	27,990	29,773	27,048
Total assets		275,351	282,944	262,748	259,452	259,789

Liabilities		130,621	121,937	95,224	87,085	86,965
Notes and accounts payable	20,905	21,601	14,677	12,789	16,629
Interest-bearing debt	58,822	51,823	34,860	29,208	24,275
Others	50,893	48,512	45,686	45,087	46,060
Net assets		144,730	161,007	167,523	172,366	172,823
Shareholders' equity	145,232	160,373	167,421	171,929	172,108
Valuation and translation adjustments	△ 531	634	101	437	708
Minority interests	28	-	-	-	7
Total liabilities and net assets		275,351	282,944	262,748	259,452	259,789

Shareholders' equity ratio*

52.6%

56.9%

63.8%

66.4%

66.5%

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

Retroactive treatment has been applied to the figures displayed for as of September 30, 2016, as of September 30, 2017 and as of March 31, 2018

Interest-bearing Debt

As of Sep 30	2014	2015	2016	2017	2018
Short-term borrowings	28,867	10,380	11,909	9,129	6,610
Bonds due within one year	-	5,000	-	2,000	-
Bonds	7,000	2,000	2,000	-	-
Long-term borrowings	22,906	34,421	20,942	18,070	17,660
Other interest-bearing debt	49	22	9	9	5
Total interest-bearing debt	58,822	51,823	34,860	29,208	24,275

Debt to equity ratio*

0.41

0.32

0.21

0.17

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

(Millions of yen)

Mar 31, 2018	Change from Mar 2018
234,085	△ 16,553
90,135	△ 37,170
113,538	24,936
49,748	△ 2,718
47,174	22,323
16,614	5,331
30,411	△ 4,320
42,331	△ 73
14,895	313
27,436	△ 387
276,417	△ 16,627

96,061	△ 9,095
21,698	△ 5,069
26,503	△ 2,228
47,858	△ 1,797
180,356	△ 7,532
179,723	△ 7,615
632	76
-	7
276,417	△ 16,627

65.2%

1.3pp

(Millions of yen)

Mar 31, 2018	Change from Mar 2018
7,827	△ 1,217
-	-
-	-
18,670	△ 1,010
6	△ 1
26,503	△ 2,228

0.14

0.15

△ 0.01

1

Fact Sheets for the six months ended September 30, 2018

DAIKYO INCORPORATED

Results by Segment

(Millions of yen)Forecast

October 26, 2018

6 Months		Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Real Estate Management	Net sales	71,601	75,970	75,597	77,519	75,769	△ 1,749
	Operating income operating income margin	3,235 4.5%	4,219 5.6%	4,320 5.7%	4,174 5.4%	4,153 5.5%	△ 20 0.1pp
Real Estate Brokerage	Net sales	20,336	26,251	28,833	29,419	31,080	1,661
	Operating income operating income margin	568 2.8%	1,835 7.0%	1,138 3.9%	1,239 4.2%	1,769 5.7%	529 1.5pp
Real Estate Development and Sales	Net sales	35,821	69,844	44,339	29,963	26,071	△ 3,892
	Operating income operating income margin	△ 1,239 △3.5%	6,327 9.1%	2,362 5.3%	△ 2,234 △7.5%	△ 2,672 △10.2%	△ 437 △ 2.7pp
Eliminations or Corporate	Net sales	△ 1,389	△ 2,564	△ 2,141	△ 3,261	△ 2,275	985
	Operating income	△ 1,606	△ 1,583	△ 1,229	△ 1,629	△ 2,085	△ 456
Total	Net sales	126,369	169,500	146,628	133,640	130,645	△ 2,994
	Operating income operating income margin	957 0.8%	10,798 6.4%	6,592 4.5%	1,550 1.2%	1,165 0.9%	△ 385 △ 0.3pp

Apr 2018-

Mar 2019

187,000

13,000

7.0%

65,000

3,900

6.0%

120,000

9,500

7.9%

△ 7,000

△ 4,400

365,000

22,000

6.0%

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	Apr-Sep 2018	Year-on-year
Condominium management	Net sales	33,678	35,754	36,641	37,227	38,269	1,042
	Operating income operating income margin	2,388 7.1%	3,010 8.4%	3,157 8.6%	3,175 8.5%	3,458 9.0%	282 0.5pp
Condominium repair and maintenance work, etc.	Net sales	16,529	14,889	17,335	18,734	14,179	△ 4,554
	Operating income operating income margin	330 2.0%	313 2.1%	417 2.4%	435 2.3%	△ 243 △1.7%	△ 679 △ 4.0pp
Building and facility management	Net sales	21,956	25,846	22,410	22,363	23,941	1,577
	Operating income operating income margin	509 2.3%	887 3.4%	739 3.3%	555 2.5%	921 3.8%	365 1.3pp
Eliminations	Net sales	△ 563	△ 520	△ 790	△ 806	△ 620	185
	Operating income	6	7	7	6	16	9
Total	Net sales	71,601	75,970	75,597	77,519	75,769	△ 1,749
	Operating income operating income margin	3,235 4.5%	4,219 5.6%	4,320 5.7%	4,174 5.4%	4,153 5.5%	△ 20 0.1pp

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.

Number of Segment Employees*

As of Sep 30	2014	2015	2016	2017	2018	Change from Sep 2017
Condominium management	1,823	1,866	1,926	1,972	2,063	91
Condominium repair and maintenance work, etc.	377	381	413	449	494	45
Building and facility management	809	803	874	915	958	43
Total	3,009	3,050	3,213	3,336	3,515	179

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

Mar 31, 2018	Change from Mar 2018
1,947	116
451	43
932	26
3,330	185

2

Fact Sheets for the six months ended September 30, 2018

DAIKYO INCORPORATED

Condominium Management

October 26, 2018

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Total Condominium Management Contract work Other	33,678	35,754	36,641	37,227	38,269	1,042
	26,879	27,351	27,337	27,344	27,835	491
	3,484	4,321	5,219	5,483	5,930	446
	3,314	4,081	4,085	4,399	4,503	104

Number of Condominium Units under management

As of Sep 30	2014	2015	2016	2017	2018	Change from Sep 2017
Number of condominium units under management	520,340	528,530	529,587	531,798	534,645	2,847
Number of condominium associations	9,353	9,482	9,506	9,546	9,592	46

Mar 31, 2018	Change from Mar 2018
534,715	△ 70
9,592	0

Fluctuations in Contract Work Orders, Sales and Backlog of Orders

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Orders	3,715	5,005	5,633	5,888	6,307	418
Sales	3,484	4,321	5,219	5,483	5,930	446
Backlog of orders*	1,246	1,776	2,089	2,286	2,334	48

*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	Apr-Sep 2018	Year-on-year
Net sales Contract work Other	16,529	14,889	17,335	18,734	14,179	△ 4,554
	16,324	14,630	17,042	18,586	14,057	△ 4,529
	205	258	292	147	121	△ 25

(Millions of yen)

Mar 31, 2018	Change from Mar 2018
-	-
-	-
1,958	376

Fluctuations in Contract Work Orders, Sales and Backlog of Orders (1)(2)

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Orders Repair and maintenance work in intra-group market Repair and maintenance work in external market Other(3)	16,803	18,100	26,467	21,342	23,056	1,713
	-	15,644	21,802	16,299	15,079	△ 1,220
	-	585	1,053	1,673	1,610	△ 62
	-	1,869	3,611	3,369	6,366	2,996
Sales Repair and maintenance work in intra-group market Repair and maintenance work in external market Other(3)	16,324	14,630	17,042	18,586	14,057	△ 4,529
	-	11,371	14,194	15,249	11,369	△ 3,880
	-	685	488	1,194	1,046	△ 148
	-	2,574	2,359	2,142	1,641	△ 500
Backlog of Orders(4) Repair and maintenance work in intra-group market Repair and maintenance work in external market Other(3)	18,306	24,285	29,780	26,718	30,167	3,449
	-	19,194	25,083	19,015	20,405	1,389
	-	182	956	1,191	1,967	775
	-	4,908	3,741	6,511	7,794	1,283

Notes:

(Millions of yen)

Mar 31, 2018	Change from Mar 2018
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
21,168	8,998
16,695	3,709
1,403	563
3,070	4,724

(1)Following changes to the classification of construction work and the relevant properties, amounts have been changed and posted accordingly for the six months ended September 30, 2015, 2016 and 2017.

(2)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."

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

(4)The backlog of orders is the balance at the end of the fiscal period.

3

Fact Sheets for the six months ended September 30, 2018

DAIKYO INCORPORATED

Building and facility management

October 26, 2018

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Total Building and facility management Contract work Other	21,956	25,846	22,410	22,363	23,941	1,577
	13,816	14,641	15,180	15,612	15,778	165
	7,767	10,972	7,028	6,543	7,953	1,410
	371	233	200	208	209	1

Backlog of Annual Contracted

As of Sep 30	2014	2015	2016	2017	2018	Change from Sep 2017
Backlog of annual contracted	27,926	29,092	29,509	31,168	30,503	△ 664

(Millions of yen)

Portfolio of facilities under management (as of March 31, 2018)

Fluctuations in Contract Work Orders, Sales and Backlog of Orders

6 Months	Apr-Sep 2014	Apr-Sep 2015	Apr-Sep 2016	Apr-Sep 2017	Apr-Sep 2018	Year-on-year
Orders	7,119	9,257	7,985	8,531	7,551	△ 979
Sales	7,767	10,972	7,028	6,543	7,953	1,410
Backlog of orders*	3,774	6,884	3,997	4,535	9,400	4,864

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

Mar 31, 2018	Change from Mar 2018
30,706	△ 202

(Millions of yen)

Mar 31, 2018	Change from Mar 2018
-	-
-	-
9,801	△ 401

4

Fact Sheets for the six months ended September 30, 2018