Medium-term Management Plan
Make NEW VALUE 2021
- New Value Creation through Real Estate Solutions
The Group’s Aims
The Group aims to create new value through real estate solutions, and accumulate social assets that will be inherited by the next generation in order to achieve a stock society.
Background of the Plan
At present, the social and financial environment in which the Group operates is undergoing major changes caused by a globally unprecedented decline in the birth rate and an aging and declining population in Japan, and we are seeing social issues, such as weakening of local communities and worsening living conditions, due to the deterioration of existing stock and an increase in vacant houses, etc. amid accelerating population drift to urban areas. Furthermore, consumers are developing more diverse values, which greatly change our concepts of “insufficiency” and “surplus.”
Against this backdrop, the Daikyo Group formulated a Medium-Term Management Plan covering the five-year period from April 1, 2016 to March 31, 2021 (fiscal 2016 to fiscal 2020), with the aim of “creating new value with real estate solutions, and accumulating social assets that will be passed down to the next generation in order to help realize our vision of a stock society.
- We will engage in management that combines “consistency” with “sustainable growth” while maintaining a profit balance between real estate management (50%) and real estate brokerage/real estate development and sales (50%).
- We will engage in solving social issues and meeting the needs of customers through real-estate solutions, while refining our strengths, which are a business base with a nationwide network, our lifetime relation system, and community involvement with long-term customer contact.
- We will engage in further improving corporate value to achieve sustainable growth, achieving both new investments and shareholder returns.
A Group-wide unified one-stop service framework that “supports customers’ life cycles”
<Development ⇒ Construction ⇒ Sale ⇒ Property Management ⇒ Resident Services ⇒ Sales Brokerage and Leasing ⇒ Remodeling ⇒ Rebuilding and Redevelopment>
1 Expanding Business Domain
- a) Developing demand for repair and maintenance work other than in condominiums under management
- b) Entering the detached house renovation sector
- c) Entering the corporate remodeling sector
2 Utilization of Assets
- a) Investing in leased real estate
- b) Promoting the redevelopment business
3 Promoting Research and Development
- a) Leveraging ICT
- b) Overseas expansion
Profit targets and indicators
|Fiscal year ended March 31, 2016||Fiscal year ending March 31, 2021
(Final year of the plan)
|Operating income||¥18.3 billion||Over ¥28 billion|
Investment plan (total from fiscal 2016 to fiscal 2020)
|Investment field||Invested sum
|Real estate investment||
・Acquisition of assets for the real estate development and real estate brokerage businesses
・Acquisition of assets for the real estate leasing business
|Strategic investment||・M&A, etc., related to condominium management, building management, detached housing brokerage, and repair and maintenance work||¥50 billion|
|Research and development investment||・Research and development regarding remote work, unmanned work, mechanization, and longer-lasting buildings and equipment, etc., using AI, and the IoT, etc.|
Shareholder Return Policy
Our shareholder return policies are “stability,”“continuity,” and “enhancing sustainable returns.”
|Common stock||Fiscal year ended March 31, 2016||Period for the plan|
|Annual dividend||¥3.0||¥60 *1|
|Payout ratio||20.1%||36.2% *2|
*1 On October 1, 2017, the Company has conducted a consolidation of the Company’s shares, which every 10 shares was consolidated into 1 share.
*2 This is calculated based on the total of 840,049,866 shares issued as of September 30, 2016 (excluding treasury stock), and does not take into account the effect of any treasury stock acquisitions that may have occurred from October 1, 2016, onward.