LEOPALACE21 CORPORATION
Name of Company Listed: Leopalace21 Corporation Stock Listing: Tokyo Stock Exchange
Code Number: 8848 Location of Head Office: Tokyo
(URL: http://eg.leopalace21.com)
Representative: Position: President and CEO Name: Eisei Miyama
Name of Contact Person: Position: Executive Officer Name: Bunya Miyao
Telephone: +81-3-5350-0216
Scheduled Date of Filing of Quarterly Report: February 13, 2015 Scheduled Date of Commencement of Dividend Payments: - Supplemental Explanatory Material Prepared: Yes
Results Briefing Held: None
(1) Consolidated financial results (Amounts less than one million yen are omitted) (The percentage figures indicate rate of gain or loss compared with the same period last year)
Net sales | Operating income | Recurring income | Net income | |||||
Nine months ended December 31, 2014 | Million yen 350,756 | % 2.1 | Million yen 9,513 | % 8.7 | Million yen 8,637 | % 20.3 | Million yen 7,856 | % 22.7 |
Nine months ended December 31, 2013 | 343,465 | 4.1 | 8,750 | 74.0 | 7,178 | 22.8 | 6,402 | 26.9 |
Note: Comprehensive income: As of December 31, 2014: 9,442 million yen (-9.0%); As of December 31, 2013: 10,376 million yen (276.7%)
Net income per share | Diluted net income per share | |
Nine months ended December 31, 2014 Nine months ended December 31, 2013 | Yen 29.89 29.77 | Yen - - |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Equity per share | |
As of December 31, 2014 As of March 31, 2014 | Million yen 285,905 287,459 | Million yen 116,011 104,860 | % 40.6 36.5 | Yen 441.25 398.78 |
Reference: Shareholders' equity: As of December 31, 2014: 115,993 million yen; As of March 31, 2014: 104,829 million yen
2. Dividend StatusDividend per share | |||||
(Base date) | End of 1st quarter | End of 2nd quarter | End of 3rd quarter | End of FY | Annual |
FY ended March 31, 2014 | Yen ― | Yen 0.00 | Yen ― | Yen 0.00 | Yen 0.00 |
FY ending March 31, 2015 | ― | 0.00 | ― | ||
FY ending March 31, 2015 (Estimated) | 0.00 | 0.00 |
(The percentage figures for full year indicate rate of gain or loss compared with the previous FY, while those for the interim period indicate rate of gain or loss compared with the same term in the previous FY)
Net Sales | Operating income | Recurring income | Net income | Net income per share | |||||
FY ending March 31, 2015 | Million yen 493,500 | % 4.8 | Million yen 14,500 | % 6.0 | Million yen 13,000 | % 12.3 | Million yen 12,000 | % (21.2) | Yen 45.65 |
－ 1 －
4. Other
(1) Changes in major subsidiaries during the period (Change in specific subsidiaries as a result of a change in the scope of consolidation): None
(2) Use of accounting procedures specific to the preparation of quarterly financial statements: Yes
(3) Changes in accounting policies, changes in accounting estimates, restatements
(i) Changes in accounting policies accompanying revision of accounting standards, etc.: Yes
(ii) Changes in accounting policies other than (i) above: None
(iii) Changes in accounting estimates: None
(iv) Restatements: None
(4) Total number of outstanding shares (Common stock)
(i) Total number of outstanding shares at term end (Including treasury stock)
As of December 31, 2014: 267,443,915 shares, As of March 31, 2014: 267,443,915 shares
(ii) Total treasury stock at term end
As of December 31, 2014: 4,569,430 shares, As of March 31, 2014: 4,569,210 shares
(iii) Average number of outstanding shares during the period
For the nine months ended December 31, 2014: 262,874,609 shares
For the nine months ended December 31, 2013: 215,034,863 shares
Indication regarding the status of quarterly review procedures:
These financial statements are not subject to quarterly review procedures under the Financial Instruments and Exchange Act. The review of these financial statements in accordance with the Financial Instruments and Exchange Act completed at the time of disclosure.
Note on the proper use of the business forecasts contained in this report, and other disclaimers: (Note on the business forecasts and other forward-looking statements)
The business forecasts and other forward-looking statements contained in this report are based on information currently available to the
Company and on certain assumptions that Leopalace21 has judged to be reasonable. Readers should be aware that a variety of factors might cause actual results to differ significantly from these forecasts.
(Method for the acquisition of supplemental explanatory material)
Supplemental Explanatory Material on quarterly financial statements is scheduled to be posted on the Company's homepage on February
6, 2015.
－ 2 －
【Table of Contents】
1. Qualitative Information on Financial Results for the Nine Months Ended December 31, 2014 .......................... 4(1) Qualitative Information on Consolidated Business Results ......................................................................................................4 (2) Qualitative Information on Consolidated Financial Position .....................................................................................................5 (3) Qualitative Information on Consolidated Results Forecast.......................................................................................................6
2. Matters Relating to Summary Information (notes) ................................................................................................. 6(1) Changes in Significant Subsidiaries during the Cumulative Third Quarter Under Review........................................................6 (2) Application of Accounting Methods Specific to the Preparation of Quarterly Consolidated Financial Statements ............................6 (3) Changes in Accounting Policy, Changes in Accounting Estimates, Restatements ...................................................................6
3. Consolidated Financial Statements ......................................................................................................................... 7(1) Consolidated Balance Sheets ..................................................................................................................................................7 (2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income ........................................9
Consolidated Statements of Operations ...................................................................................................................................................... 9
Consolidated Statements of Comprehensive Income ............................................................................................................................... 10 (3) Notes Regarding Consolidated Financial Statements ............................................................................................................ 11 (Notes Regarding the Premise of the Company as a Going Concern)...................................................................................................... 11
(Note Regarding Significant Changes in Shareholders' Equity) ................................................................................................................ 11 (Segment Information) ............................................................................................................................................................................... 11
(Business Combination, etc.)..................................................................................................................................................................... 12
－ 3 －
1. Qualitative Information on Financial Results for the Nine Months Ended December 31, 2014
(1) Qualitative Information on Consolidated Business Results
(Million yen)
Net sales | Operating income | Recurring income | Net income | |
Nine months ended December 31, 2014 | 350,756 | 9,513 | 8,637 | 7,856 |
Nine months ended December 31, 2013 | 343,465 | 8,750 | 7,178 | 6,402 |
change | 7,290 | 762 | 1,459 | 1,454 |
During the first nine months of the consolidated fiscal year under review, although weakness can be seen in individual consumption due to the increase in consumption tax, a continuing recovery in the Japanese economy was evidenced primarily by the improvement in corporate earnings, employment, and income.
In the rental housing industry, new housing starts of leased units followed a decreasing trend compared to the previous year, due to negative effects of the rush demand from consumption tax increase. To achieve stable occupancy rates against the increasing number of vacant houses in the market, housing supply in selected areas and high-quality housing and services are required.
Under these conditions, the Leopalace21 Group aims to build solid management strength focusing on the core businesses, made up of leasing and construction, based on the Medium-term Management Plan "EXPANDING VALUE" announced in May 2014. In addition, the Group aims to establish new businesses that will contribute to future growth.
As a result, consolidated net sales for the first nine months of the fiscal year under review came to
¥350,756 million (up 2.1% year-on-year). Consolidated operating income was ¥9,513 million (up 8.7%), consolidated recurring income was ¥8,637 million (up 20.3%) and consolidated net income was ¥7,856 million (up 22.7%).
The Group's Construction business has many building construction contracts stipulating completion in the fourth quarter, which is when demand for rental apartments is highest. In the Leasing business, the number of apartments under management is increasing as apartments are completed so seasonal fluctuations put a
preponderance of earnings into the fourth quarter.
(Actual figures by segment)
(Million yen)
Net sales | Operating income (loss) | |||||
Nine months ended December 31, 2013 | Nine months ended December 31, 2014 | change | Nine months ended December 31, 2013 | Nine months ended December 31, 2014 | change | |
Leasing Business | 288,568 | 296,353 | 7,785 | 11,277 | 15,146 | 3,868 |
Construction Business | 40,758 | 37,694 | (3,063) | 608 | (1,855) | (2,463) |
Elderly Care Business | 7,631 | 7,978 | 347 | (446) | (380) | 66 |
Hotels & Resort Business | 5,478 | 6,546 | 1,068 | (625) | (690) | (64) |
Others | 1,028 | 2,182 | 1,153 | 193 | 280 | 87 |
Adjustments | - | - | - | (2,256) | (2,987) | (731) |
Total | 343,465 | 350,756 | 7,290 | 8,750 | 9,513 | 762 |
－ 4 －
(i) Leasing Business
The occupancy rate at the end of the third quarter of the consolidated fiscal year under review was 85.69% (up 1.57 points from the same period last year) and the average occupancy rate for the period was 85.96% (up
2.07 points from the same period last year).
In the Leasing business, to establish stable profits led by occupancy improvement, the Group implemented measures such as tenant recruitment utilizing direct leasing offices, franchises, and local real estate brokers, as well as expanding tenant services including "Room Customize" and security system installations. In addition, the Group further strengthened sales against corporate and foreign clients as well as reduced costs by reviewing routine property management tasks.
The number of units under management at the end of the third quarter of the consolidated fiscal year under review was 552,000 (increasing 4,000 from the end of last fiscal year), and the number of direct offices was
188 (increasing 4). The number of franchise offices was 143 (decreasing 21).
As a result of the above, net sales amounted to ¥296,353 million (up 2.7% year-on-year), and operating income was ¥15,146 million (up 34.3% year-on-year).
(ii) Construction Business
Orders received during the first nine months of the consolidated fiscal year under review were ¥66,756 million (up 4.3% from the same period last year) and the orders received outstanding at the end of the third quarter stood at ¥64,962 million (up 14.0% from the end of the same period last year).
In the Construction business, the Group aimed to improve profitability by focusing apartment supply in the three metropolitan areas where solid leasing demand is anticipated, as well as installing "non-sound floors" which improve sound insulation and developing products targeting females and young tenants. The Group also expanded construction variations to meet various land usage needs and has begun restructuring construction methods. However, the influence of worker shortage and cost increase in construction materials cannot be avoided.
As a result, net sales came to ¥37,694 million (down 7.5% year-on-year), and operating loss was ¥1,855 million (compared to an operating income of ¥68 million in the same period of the last fiscal year).
(iii) Elderly Care Business
Net sales were ¥7,978 million (up 4.6% year-on-year), and operating loss was ¥380 million (improving ¥66 million year-on-year). In the Elderly Care business, which was positioned as a growth strategy area in the Medium-term Management Plan, the Group will open new facilities in collaboration with the Construction business.
(iv) Hotels & Resort Business
Net sales of resort facilities in Guam and hotels in Japan were ¥6,546 million (up 19.5% year-on-year), and the operating loss was ¥690 million (an increase of ¥64 million in loss year-on-year).
(v) Other Businesses
In other businesses such as the small-claims and short-term insurance business, the solar power generation business, and the finance business, net sales were ¥2,182 million (up 112.2% year-on-year), and
the operating income was ¥280 million (up 45.2% year-on-year).
(2) Qualitative Information on Consolidated Financial Position
(Million yen)
Total assets | Total liabilities | Net assets | |
As of December 31, 2014 | 285,905 | 169,894 | 116,011 |
As of March 31, 2014 | 287,459 | 182,598 | 104,860 |
change | (1,553) | (12,704) | 11,150 |
Total assets at the end of the third quarter of the fiscal year under review decreased ¥1,553 million from the end of the previous fiscal year, to ¥285,905 million. This was mainly attributable to an increase of ¥8,999 million in machinery, equipment, and vehicles related to the solar power generation business, and ¥1,938
－ 5 －
million in leased assets, as well as a decrease of ¥8,561 million in cash and cash equivalents, ¥2,266 million in prepaid expenses, ¥886 million in other current assets (deposit etc.), and ¥818 million in construction in progress.
Total liabilities decreased ¥12,704 million from the end of the previous fiscal year, to ¥169,894 million. This primarily reflected an increase of ¥3,475 million in customer advances for projects in progress and ¥5,534 in interest-bearing debt, as well as a decrease of ¥3,135 million in accounts payable for completed projects,
¥12,369 million in long and short term advances received, ¥2,918 million in reserve for apartment vacancy loss, and ¥1,193 in retirement benefit liabilities.
Net assets were up ¥11,150 million from the end of the previous fiscal year, to ¥116,011 million, chiefly due to a decrease of ¥1,513 million in negative foreign currency translation adjustments balance and an increase of
¥9,565 million in retained earnings from net income and application of accounting policies related to retirement
benefits.
The ratio of shareholders' equity to assets rose 4.1 points from the end of the previous fiscal year, to
40.6%.
(3) Qualitative Information on Consolidated Results Forecast
Consolidated results forecasts announced in the consolidated financial statements published on May 9,
2014 remain unchanged.
The results forecasts are the estimates of the Company based on information available at the time of announcement of this document. Actual results may differ materially from these forecasts due to various factors.
(1) Changes in Significant Subsidiaries during the Cumulative Third Quarter Under Review
Not applicable
(2) Application of Accounting Methods Specific to the Preparation of Quarterly Consolidated Financial Statements
Tax expenses are calculated by multiplying net income before income taxes by a reasonably estimated effective tax rate, after applying the tax effect accounting to net income before income taxes for the consolidated fiscal year that includes the third quarter under review.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, Restatements
(Changes in Accounting Policies)
(Application of accounting policies related to retirement benefits)
The Company has applied section 35 of the "Accounting Standard for Retirement Benefits" (ASBJ Statement No. 26, May 17, 2012) and section 67 of the "Guidance on Accounting Standard for Retirement Benefits" (ASBJ Guidance No. 25, May 17, 2012) since the end of the subject third quarter. Calculation methods of retirement benefit obligations and service costs have been revised, and the attribution method for projected retirement benefits has been changed from the service period basis to the projected benefit method. Also, the method of determining discount rates has been changed from a method utilizing the discount rate based on an approximation of average remaining years of service of employees to a method utilizing multiple discount rates corresponding to each payment possibility period of retirement benefits.
In accordance to the transitional measures stated in section 37 of the "Accounting Standard for Retirement Benefits," the effected amount due to changes in the calculation method of retirement benefit obligations and service costs are included in retained earnings as of the end of the subject third quarter.
As a result, liability for retirement benefit has decreased ¥1,708 million and retained earnings has increased by the same amount as of the end of the subject third quarter. Effect on operating income,
recurring income, and income before taxes and minority interests is insignificant.
－ 6 －
3. Consolidated Financial Statements
(1) Consolidated Balance Sheets
(Million yen)
December 31, 2014 | March 31, 2014 | |
|
Current assets
Cash and cash equivalents Trade receivables Accounts receivable for completed projects Operating loans Marketable securities Real estate for sale/property inventories Payment for construction in progress Raw materials and supplies Prepaid expenses Deferred tax assets Other accounts receivable Other Allowance for doubtful accounts Total | 66,205 4,898 1,379 1,220 582 37 1,359 513 4,413 4,147 1,914 4,593 (189) | 74,767 5,490 1,651 1,429 350 - 501 464 6,679 4,147 1,584 5,479 (221) |
|
Current assets
Cash and cash equivalents Trade receivables Accounts receivable for completed projects Operating loans Marketable securities Real estate for sale/property inventories Payment for construction in progress Raw materials and supplies Prepaid expenses Deferred tax assets Other accounts receivable Other Allowance for doubtful accounts Total | 91,075 | 102,324 |
Fixed assets Property, plant and equipment Buildings and structures (Net) Machinery, equipment, and vehicles (Net) Land Leased assets (Net) Construction in progress Other (Net) Total Intangible assets Investments and other assets Investment securities Long-term loans Bad debt Long-term prepaid expenses Deferred tax assets Others Allowance for doubtful accounts Total | 56,476 12,950 82,206 7,106 2,894 782 | 57,073 3,950 81,800 5,167 3,712 797 |
Fixed assets Property, plant and equipment Buildings and structures (Net) Machinery, equipment, and vehicles (Net) Land Leased assets (Net) Construction in progress Other (Net) Total Intangible assets Investments and other assets Investment securities Long-term loans Bad debt Long-term prepaid expenses Deferred tax assets Others Allowance for doubtful accounts Total | 162,416 | 152,503 |
Fixed assets Property, plant and equipment Buildings and structures (Net) Machinery, equipment, and vehicles (Net) Land Leased assets (Net) Construction in progress Other (Net) Total Intangible assets Investments and other assets Investment securities Long-term loans Bad debt Long-term prepaid expenses Deferred tax assets Others Allowance for doubtful accounts Total | 6,894 | 6,601 |
Fixed assets Property, plant and equipment Buildings and structures (Net) Machinery, equipment, and vehicles (Net) Land Leased assets (Net) Construction in progress Other (Net) Total Intangible assets Investments and other assets Investment securities Long-term loans Bad debt Long-term prepaid expenses Deferred tax assets Others Allowance for doubtful accounts Total | 7,023 549 1,312 3,186 12,503 2,927 (2,117) | 7,257 562 1,420 3,719 12,152 3,037 (2,153) |
Fixed assets Property, plant and equipment Buildings and structures (Net) Machinery, equipment, and vehicles (Net) Land Leased assets (Net) Construction in progress Other (Net) Total Intangible assets Investments and other assets Investment securities Long-term loans Bad debt Long-term prepaid expenses Deferred tax assets Others Allowance for doubtful accounts Total | 25,385 | 25,996 |
Total fixed assets | 194,696 | 185,100 |
Deferred assets | 132 | 34 |
Total assets | 285,905 | 287,459 |
－ 7 －
(Million yen)
December 31, 2014 | March 31, 2014 | |
|
Current liabilities
Accounts payable Accounts payable for completed projects Short-term borrowings Bonds due within one year Lease obligations Unpaid expenses Accrued expenses Accrued income taxes Advances received Customer advances for projects in progress Reserve for employees' bonuses Reserve for warranty obligations on completed projects Reserve for fulfillment of guarantees Other Total | 2,565 8,993 24,625 1,460 2,119 13,126 178 553 38,016 8,717 2,093 365 578 3,926 | 2,685 12,128 2,940 560 1,575 16,001 2 998 45,051 5,242 - 231 582 4,560 |
|
Current liabilities
Accounts payable Accounts payable for completed projects Short-term borrowings Bonds due within one year Lease obligations Unpaid expenses Accrued expenses Accrued income taxes Advances received Customer advances for projects in progress Reserve for employees' bonuses Reserve for warranty obligations on completed projects Reserve for fulfillment of guarantees Other Total | 107,321 | 92,560 |
Long-term liabilities Bonds Long-term debt Lease obligations Long-term advances received Lease/guarantee deposits received Deferred tax liabilities Reserve for apartment vacancy loss Retirement benefit liabilities Other Total | 4,240 4,508 5,807 22,294 8,165 135 6,434 8,856 2,129 | 920 27,077 4,154 27,628 8,492 135 9,352 10,050 2,226 |
Long-term liabilities Bonds Long-term debt Lease obligations Long-term advances received Lease/guarantee deposits received Deferred tax liabilities Reserve for apartment vacancy loss Retirement benefit liabilities Other Total | 62,572 | 90,037 |
Total liabilities | 169,894 | 182,598 |
|
Shareholders' equity
Common stock Capital surplus Retained earnings Treasury stock Total | 75,282 51,501 (6,223) (3,660) | 75,282 51,501 (15,788) (3,660) |
|
Shareholders' equity
Common stock Capital surplus Retained earnings Treasury stock Total | 116,899 | 107,334 |
Accumulated other comprehensive income (loss) Net unrealized gains on "other securities" Foreign currency translation adjustments Remeasurements of defined benefit plans Total | 404 (603) (706) | 427 (2,116) (815) |
Accumulated other comprehensive income (loss) Net unrealized gains on "other securities" Foreign currency translation adjustments Remeasurements of defined benefit plans Total | (906) | (2,504) |
Share subscription rights Minority Interests | 18 - | 18 13 |
Total net assets | 116,011 | 104,860 |
Total liabilities and net assets | 285,905 | 287,459 |
－ 8 －
(2) Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income
Consolidated Statements of Operations
(Million yen)
Nine months ended December 31, 2014 (Apr. 2014-Dec. 2014) | Nine months ended December 31, 2013 (Apr. 2013-Dec. 2013) | |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 350,756 296,837 | 343,465 294,030 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 53,918 | 49,434 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 44,405 | 40,684 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 9,513 | 8,750 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 28 75 90 234 | 31 56 - 177 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 427 | 265 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 862 340 100 | 1,174 433 231 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 1,303 | 1,838 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 8,637 | 7,178 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 6 | 0 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 6 | 0 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | ||
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 0 230 163 | - 6 132 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 394 | 139 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 8,249 | 7,038 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 405 | 636 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | 7,843 | 6,402 |
Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividend income Property tax refund Other Total Non-operating expenses Interest expenses Commission fee Other Total Recurring profit Extraordinary income Gain on sales of property, plant and equipment Total Extraordinary losses Loss on sales of property, plant and equipment Loss on disposal of property, plant and equipment Impairment loss Total Income before taxes and minority interests Income taxes Income before minority interests Minority stockholders loss | (13) | - |
Net income | 7,856 | 6,402 |
－ 9 －
Consolidated Statements of Comprehensive Income
(Million yen)
Nine months ended December 31, 2014 (Apr. 2014-Dec. 2014) | Nine months ended December 31, 2013 (Apr. 2013-Dec. 2013) | |
Income before minority interests Other comprehensive income (loss) Net unrealized gains on "other securities" Translation adjustments Remeasurements of defined benefit plans Share of other comprehensive income of associates Total Comprehensive income (Breakdown) Comprehensive income attributable to shareholders of the parent entity Comprehensive income attributable to minority interests | 7,843 (22) 1,511 108 1 | 6,402 (138) 4,111 - 0 |
Income before minority interests Other comprehensive income (loss) Net unrealized gains on "other securities" Translation adjustments Remeasurements of defined benefit plans Share of other comprehensive income of associates Total Comprehensive income (Breakdown) Comprehensive income attributable to shareholders of the parent entity Comprehensive income attributable to minority interests | 1,598 | 3,973 |
Income before minority interests Other comprehensive income (loss) Net unrealized gains on "other securities" Translation adjustments Remeasurements of defined benefit plans Share of other comprehensive income of associates Total Comprehensive income (Breakdown) Comprehensive income attributable to shareholders of the parent entity Comprehensive income attributable to minority interests | 9,442 | 10,376 |
Income before minority interests Other comprehensive income (loss) Net unrealized gains on "other securities" Translation adjustments Remeasurements of defined benefit plans Share of other comprehensive income of associates Total Comprehensive income (Breakdown) Comprehensive income attributable to shareholders of the parent entity Comprehensive income attributable to minority interests | 9,455 (13) | 10,376 - |
－ 10 －
(3) Notes Regarding Consolidated Financial Statements
(Notes Regarding the Premise of the Company as a Going Concern) There are no relevant items.
(Note Regarding Significant Changes in Shareholders' Equity) There are no relevant items.
(Segment Information)
(Million yen)
Reportable Segment | Others (Note 1) | Total | Adjustments (Note 2) | Consolidated Total (Note 3) | |||||
Leasing Business | Construction Business | Elderly Care Business | Hotels & Resort Business | Segment Total | Others (Note 1) | Total | Adjustments (Note 2) | Consolidated Total (Note 3) | |
Net sales (1) Sales to customers (2) Inter-segment sales and transfers | 288,568 360 | 40,758 4,057 | 7,631 - | 5,478 1,882 | 342,436 6,299 | 1,028 77 | 343,465 6,377 | - (6,377) | 343,465 - |
Total | 288,929 | 44,815 | 7,631 | 7,360 | 348,735 | 1,106 | 349,842 | (6,377) | 343,465 |
Segment earnings (or loss) | 11,277 | 608 | (446) | (625) | 10,813 | 193 | 11,007 | (2,256) | 8,750 |
Notes: 1. The "Others" classification is the business segment not included in reportable segments, and comprises such businesses as the small-claims and short-term insurance business, solar power generation business and financing businesses.
2. The segment earnings (or loss) adjustment of (¥2,256) million includes (¥338) million in inter-segment eliminations and (¥1,917) million in corporate expenses not allocated to reportable segments. Corporate expenses consist mainly of general administrative expenses for administrative departments that are not part of reportable segments.
3. Segment earnings (or loss) are adjusted to the operating loss figure on the Consolidated Statements of Operations.
(Million yen)
Reportable Segment | Others (Note 1) | Total | Adjustments (Note 2) | Consolidated Total (Note 3) | |||||
Leasing Business | Construction Business | Elderly Care Business | Hotels & Resort Business | Segment Total | Others (Note 1) | Total | Adjustments (Note 2) | Consolidated Total (Note 3) | |
Net sales (1) Sales to customers (2) Inter-segment sales and transfers | 296,353 460 | 37,694 9,159 | 7,978 - | 6,546 2,083 | 348,573 11,702 | 2,182 98 | 350,756 11,800 | - (11,800) | 350,756 - |
Total | 296,814 | 46,853 | 7,978 | 8,629 | 360,276 | 2,280 | 362,557 | (11,800) | 350,756 |
Segment earnings (or loss) | 15,146 | (1,855) | (380) | (690) | 12,220 | 280 | 12,501 | (2,987) | 9,513 |
Notes: 1. The "Others" classification is the business segment not included in reportable segments, and comprises such businesses
as the small-claims and short-term insurance business, solar power generation business and financing businesses.
2. The segment earnings (or loss) adjustment of (¥2,987) million includes (¥932) million in inter-segment eliminations and (¥2,054) million in corporate expenses not allocated to reportable segments. Corporate expenses consist mainly of general administrative expenses for administrative departments that are not part of reportable segments.
3. Segment earnings (or loss) are adjusted to the operating income figure on the Consolidated Statements of Operation.
－ 11 －
(Business Combination, etc.)
i Business Combination through Acquisitions 1. Outline of the business combination
(1) Name of the acquired company and its business activities
Name of the acquired company: WING MATE CO., LTD. Business activities: Travel business
(2) Major reasons for the business combination
WING MATE CO., LTD. is a travel agency that provides services of overseas business trip arrangements and business travel management for corporations. It does business with more than
1,300 corporations, including government and municipal offices. On the other hand, in the Leasing business section of Leopalace21, more than 50% of the tenants are corporate tenants and services related to rental housing is provided to approximately 45,000 corporations in Japan.
By adding WING MATE CO., LTD. as a group company, Leopalace21 has started overseas business trip arrangements and business travel management as one of our new services. In addition, Leopalace21 aims to obtain the opportunity of providing rental houses to the corporate customers of WING MATE CO., LTD.
(3) Effective date of the business combination
October 31, 2014
(4) Legal structure of the business combination
Stock acquisition
(5) Name of the company subsequent to the business combination
No change
(6) Percentage of voting rights acquired by Leopalace21
100%
(7) Primary basis for determining the acquirer
Due to the fact that Leopalace21 has acquired WING MATE CO., LTD. through stock acquisition with cash considerations.
Since the deemed acquisition date is set as December 31, 2014, the business performances of the acquired company is not included in the Consolidated Statement of Operation of the subject cumulative third quarter period.
3. Acquisition cost of the acquired company and its details
Consideration
for the acquisition
The market value of the common stock of WING MATE
CO., LTD. on the business combination date ¥65 million
Direct costs required for
acquisition Advisory costs, etc. 16
Acquisition cost 81
4. Amount, source, method and period of goodwill amortization
(1) Amount of goodwill
¥3 million
Since the allotment of the acquisition cost is not complete, a provisional accounting process has been conducted based on available and rational information.
(2) Source of goodwill
Due to the acquisition cost exceeding the market value of net assets on acquisition date.
(3) Method and period of goodwill amortization
One-time amortization
－ 12 －
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