May 15, 2017
Company Name: Leopalace21 Corporation
Representative: Eisei Miyama, President and CEO
Code Number: 8848 (Tokyo Stock Exchange, First Section) Contact: Bunya Miyao, Director
Tel: +81-3-5350-0216
E-mail: ir@leopalace21.com
Notice Concerning Formulation of a New Medium-Term Management Plan "Creative Evolution 2020"Leopalace21 Corporation ("the Group") has created a new three-year Medium-Term Management Plan "Creative Evolution 2020", launching April 2017.
In the new Medium-Term Management Plan "Creative Evolution 2020", the Group will determine its ideal state in the present business environment, and aim to create corporate and social value. The group will achieve this goal by continuing to grow in its core businesses, as well as building a strong growth business structure for future growth.
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Review of the previous Medium-Term Management Plan
The Group's mission is "Creating New Value", and the Group implements business with aim of creating an affluent society with a pleasant lifestyle.
Under the previous medium-term management plan "Expanding Value" announced in May 2014, the Group had been aiming to build a solid management structure by focusing on the leasing and construction businesses while expanding our business territory, based on its fundamental policy of "focusing on core businesses and challenging itself with new business fields".
The group has accelerated growth in the core businesses, especially in the stock-based Leasing Business, and achieved a three-year-total operating and recurring profit of 56 billion yen and 52 billion yen, respectively, which surpassed our initial plan. Also, non-consolidated retained earnings had been negative at the start of the previous plan, but have turned positive and the Group has returned profit to shareholders through dividend payments.
Previous Medium-Term Management Plan
"Expanding Value"
Plan
Actual
Total net sales
Total operating profit Total recurring profit Total net income
1,558.5 billion yen
56.0 billion yen
52.0 billion yen
47.0 billion yen
1,515.1 billion yen
58.8 billion yen
55.7 billion yen
55.1 billion yen
Final year net assets
152.0 billion yen
158.8 billion yen
Average shareholders' equity ratio
44.7%
44.2%
Average ROE
11.4%
13.6%
Average EPS
59.7 yen
70.0 yen
Average ROA
5.2%
5.7%
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Overview of the new Medium-Term Management Plan "Creative Evolution 2020"
① Basic policy
Support continuous growth of core businesses in ways that further increase corporate value while constructing a base for growth areasBusiness Strategies (Cash flow generation for value creation)
Core businesses: Balance apartment supply and management & operation, diversify
Growth businesses: Move the Elderly Care Business and International Business into profit, which are less exposed to the aging, shrinking domestic population
Financial Strategies (Value creation via balance sheet management)
Introduce ROIC as a key indicator
Review asset holdings with a view to enhancing asset and capital efficiency
② Corporate Slogan
③ Plan period April 2017 to May 2020 (three years)
④ Numerical targets (consolidated)
FY March 2017 (Actual) | FY March 2020 (Plan) | |
Net Sales Operating profit Recurring profit Net income Adjusted net income *1 | 520.4 billion yen 22.8 billion yen 21.6 billion yen 20.4 billion yen 18.4 billion yen | 575.0 billion yen 26.0 billion yen 25.5 billion yen 16.0 billion yen 20.0 billion yen |
ROIC *2 Adjusted ROE *3 | 7.1% 12.0% | 8% - 10% Maintain 12% |
A reversal of deferred tax assets is expected during the subject plan period, and therefore the Group will calculate management indices with figures excluding temporary profits and losses.
*1: Adjusted net income = Net income + deferred income taxes
*2: ROIC = After-tax operating profit (NOPLAT) / (interest-bearing debt + net assets)
*3: Adjusted ROE = Adjusted net income / average net assets
Note: Revised business forecasts are calculated based on information available to the Group as of this announcement. Actual results may differ from these forecasts for a variety of reasons.
END
Leopalace21 Corporation published this content on 15 May 2017 and is solely responsible for the information contained herein.
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