may 10, 2016 summary of consolidated financial … 10, 2016 summary of consolidated financial...
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May 10, 2016
Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (FY3/16) [Japanese GAAP]
Company name: Sanyo Homes Corporation Listing: Tokyo Stock Exchange, First Section Securities code: 1420 URL: http://www.sanyohomes.co.jp/ Representative: Yasusuke Tanaka, Executive Director & Chairman of the Board Contact: Fumio Matsumoto, Member of the Board, Senior Managing Director, General Manager of Administration Division Tel: +81-(0) 6-6578-3403 Scheduled date of Annual General Meeting of Shareholders: June 28, 2016 Scheduled date of filing of Annual Securities Report: June 29, 2016 Scheduled date of payment of dividend: June 9, 2016 Preparation of supplementary materials for financial results: Yes Holding of financial results meeting: Yes (for analysts)
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for FY3/16 (April 1, 2015 – March 31, 2016)
(1) Consolidated results of operations (Percentages shown for net sales and incomes represent year-on-year changes)
Net sales Operating income Ordinary income Profit attributable to
owners of parent Million yen % Million yen % Million yen % Million yen %
FY3/16 47,720 (9.6) (55) - (76) - (297) - FY3/15 52,804 (8.9) 1,500 (44.5) 1,410 (43.1) 729 (47.5) Note: Comprehensive income (million yen) FY3/16: (257) (-%) FY3/15: 741 (down 46.6%)
Net income per
share Diluted net
income per share Return on equity
Ordinary income on total assets
Operating income on net sales
Yen Yen % % %
FY3/16 (23.61) - (1.9) (0.2) (0.1) FY3/15 57.82 - 4.8 3.2 2.8 Reference: Equity in earnings of affiliates (million yen) FY3/16: - FY3/15: -
(2) Consolidated financial position Total assets Net assets Equity ratio Net assets per share
Million yen Million yen % Yen
As of Mar. 31, 2016 51,753 15,183 29.3 1,203.13 As of Mar. 31, 2015 41,914 15,630 37.3 1,238.53 Reference: Shareholders’ equity (million yen) As of Mar. 31, 2016: 15,183 As of Mar. 31, 2015: 15,630
(3) Consolidated cash flow position
Cash flows from
operating activities Cash flows from
investing activities Cash flows from
financing activities Cash and cash equivalents
at end of period Million yen Million yen Million yen Million yen
FY3/16 (9,306) (804) 9,903 4,491 FY3/15 (4,775) 579 580 4,699 2. Dividends Dividend per share
Total dividends
Dividend payout ratio
(consolidated)
Dividend on equity
(consolidated) 1Q-end 2Q-end 3Q-end Year-end Total
Yen Yen Yen Yen Yen Million yen % %
FY3/15 - 0.00 - 15.00 15.00 189 25.9 1.2 FY3/16 - 0.00 - 15.00 15.00 189 - 1.2 FY3/17 (forecasts) - 0.00 - 15.00 15.00 21.0 3. Consolidated Forecast for FY3/17 (April 1, 2016 – March 31, 2017)
(Percentages represent year-on-year changes)
Net sales Operating income Ordinary income Profit attributable to
owners of parent Net income per share
Million yen % Million yen % Million yen % Million yen % Yen
First half 33,900 72.5 520 - 340 - 300 - 23.77 Full year 72,400 51.7 1,700 - 1,300 - 900 - 71.32
* Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in
the scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, and others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None
(3) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Mar. 31, 2016: 12,620,000 shares As of Mar. 31, 2015: 12,620,000 shares
2) Number of treasury shares at the end of the period
As of Mar. 31, 2016: - shares As of Mar. 31, 2015: - shares
3) Average number of shares outstanding during the period
FY3/16: 12,620,000 shares FY3/15: 12,620,000 shares
Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for FY3/16 (April 1, 2015 – March 31, 2016)
(1) Non-consolidated results of operations (Percentages represent year-on-year changes) Net sales Operating income Ordinary income Net income
Million yen % Million yen % Million yen % Million yen % FY3/16 44,502 (11.3) (111) - (129) - (395) - FY3/15 50,191 (8.9) 1,510 (40.8) 1,415 (39.2) 745 (42.9)
Net income per share Diluted net income per share
Yen Yen FY3/16 (31.30) - FY3/15 59.08 -
(2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share
Million yen Million yen % Yen As of Mar. 31, 2016 50,837 14,817 29.1 1,174.10 As of Mar. 31, 2015 41,094 15,401 37.5 1,220.41 Reference: Shareholders’ equity (million yen) As of Mar. 31, 2016: 14,817 As of Mar. 31, 2015: 15,401
* Indication of audit procedure implementation status
This report is exempted from audit procedures based on the Financial Instruments and Exchange Act. At the time of disclosure, the audit procedures for the financial statements have not been completed.
* Cautionary statement with respect to forward-looking statements and other special items
Forecasts regarding future performance in this report are based on assumptions judged to be valid and information available to the Company at the time this report was prepared. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to “Analysis of Results of Operations” on page 2 for forecast assumptions and notes of caution for usage.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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Contents of Attachments
1. Analysis of Results of Operations and Financial Position 2
(1) Analysis of Results of Operations 2
(2) Analysis of Financial Position 4
(3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years 4
(4) Business Risks 5
2. Corporate Group 8
3. Management Policies 10
(1) Basic Management Policy 10
(2) Targeted Performance Indicators 10
(3) Challenges 10
4. Basic Approach to the Selection of Accounting Standards 11
5. Consolidated Financial Statements 12
(1) Consolidated Balance Sheet 12
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income 14
Consolidated Statement of Income 14
Consolidated Statement of Comprehensive Income 15
(3) Consolidated Statement of Changes in Equity 16
(4) Consolidated Statement of Cash Flows 18
(5) Notes to Consolidated Financial Statements 19
Going Concern Assumption 19
Significant Accounting Policies in the Preparation of Consolidated Financial Statements 19
Changes in Accounting Policies 21
Segment and Other Information 21
Per Share Information 24
Subsequent Events 24
6. Other Information 25
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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1. Analysis of Results of Operations and Financial Position
(1) Analysis of Results of Operations
For the current fiscal year ended March 31, 2016, Japanese economy recovered gradually as corporate capital
investments started to pick up thanks to the effect of continued economic stimulus measures and monetary easing by
the Japanese government and the Bank of Japan. However, slowdown of the economies of China and other emerging
markets and reduction in oil price have led to the rapid appreciation of yen and drop in stock prices since the
beginning of 2016. We will continue to pay attention to the development of the world economy going forward.
Japan’s housing sector seemed to firm up with the new house-building starts increasing 4.6% year-on-year to
920,000 units. This increase was owed to an expansion of the tax-free limit on monetary gifts for buying a residence,
an expansion of the reduction range of interest rate on Flat 35S, and the effect of housing acquisition support
measures by the government, such as energy-saving housing points system.
Amid such environment, with a tagline of “Housing with satisfaction to people and the earth,” Sanyo Homes Group
strives for the following: promoting initiatives to solve customers’ issues related to “housing” and “living” in
response to changes in socioeconomic situations; protecting our customers’ safety and comfort as well as the global
environment; and becoming a company contributing to society.
In the current fiscal year, orders received were 51,947 million yen, an increase of 4.4% year on year, and the order
backlog was 23,037 million yen, up 22.5% year on year, thanks to recovery from a drop in demand following the
rush to make purchases before the April 2014 consumption tax hike as well as the government support through
continuous low-rate mortgages. Our move toward large-scale projects also contributed to the increase in orders,
including Japan’s first multi-generation condominium building “San Four-Leaf Town Sakuranomiya (Miyakojima-ku,
Osaka),” facilitated with 183 units for families, 104 units for seniors, a child care center and a rehabilitation center.
In contrast with the solid orders received and orders backlog, net sales for the current fiscal year significantly went
down below the level of the previous fiscal year due to sluggish sales in the housing business in the fourth quarter
and postponement of a significant consultation project in the condominium business to the next fiscal year.
As a result, net sales for the current fiscal year decreased 9.6% from one year earlier to 47,720 million yen.
Operating loss was 55 million yen (compared with operating income of 1,500 million yen in the same period of the
previous fiscal year), ordinary loss was 76 million yen (compared with ordinary income of 1,410 million yen in the
same period of the previous fiscal year), and loss attributable to owners of parent was 297 million yen (compared
with profit attributable to owners of parent of 729 million yen in the same period of the previous fiscal year), which
reflected recognition of impairment loss on non-current assets of 166 million yen as an extraordinary loss.
Overview by Segment
1) Housing Business
In the housing sector, we are working for the development and proposal of safe and secure long-term high-quality
housing that are friendly to the global environment. In April 2015, we started selling “life style KURASI’ TE HUG”
which is targeting for a family to do the housework and child-rearing in a single household, and we also started
selling “life style KURASI’TE HAGUKUMI” which is targeting for a family to do the housework and child-rearing
with parents. Furthermore, we started in July 2015 selling “life style KURASI’TE superior” which is targeting for a
customer who is considering rebuilding of or relocation from old quake-resistance standards housing.
In the asset utilization sector, there has been a growing interest among land owners in effective use of their
properties since the revision to the inheritance taxes. We are taking advantage of this opportunity by operating a
nationwide Land Utilization Club for landowners and strengthening cooperation with financial institutions to
facilitate matching of landowners with business operators. As a result of proactively expanding proposal activities
for rental housing and care and welfare facilities, we have achieved increases in orders received and orders backlog.
In the residential remodeling and existing home sales businesses, we anticipate a significant expansion of the
pre-owned housing market going forward and thus promote the “Home Dock,” which offers a range of services such
as building structure and earthquake resistance diagnosis, renovation and after-sales supports. We also promote “San
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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Sumai Ring,” which covers the distribution of existing houses. Furthermore, we were involved in the residential
renewal and resale business, in which we buy existing houses and resell them with more value added.
Despite such efforts, however, sales in this segment for the current fiscal year were 23,088 million yen, down 13.7%
from one year earlier and operating loss was 246 million yen (compared with operating income of 662 million yen in
the same period of the previous fiscal year). This was mainly due to a slow sales of houses built for sale and a
prolonged construction period due to large-scale orders. 2) Condominium Business
In the fiscal year ended March 2016, we promoted sales of “San Four-Leaf Town,” a series of large multi-purpose
complexes. One of them is “San Four-Leaf Town Sakuranomiya,” which was completed in September 2016. We
have successfully sold its entire units for families and 80% of the units for seniors. “SANMAISON Kyoto Nijo
Gekkocho Gate” (Chuo-ku Kyoto), a 49-unit condominium in a prime location of the city of Kyoto with strict
building codes, was sold out upon completion. Further, two SANMAISON projects started their sales in a growing
population area in Fukuoka city: “SANMAISON Jiromaru Eldo (Sawara-ku, Fukuoka),” a 48-unit condominium;
and “SANMAISON Kyudai-Gakkentoshi Eldo (Nishi-ku, Fukuoka),” a 116-unit condominium.
We have another business line in which we purchase company housing structures or apartment buildings to renovate
and resell them as condominiums. We successfully sold “SANRENO Sakasegawa Nogami (Takarazuka city,
Hyogo),” an 89-unit condominium building qualified as “R3 Housing Standard” by Renovation Housing Promotion
Council, and also “SANRENO Ichigaya Sadoharacho (Shinjuku-ku, Tokyo),” which was converted into a 7-unit
condominium from an apartment building. Two other renovation projects in a fine convenient housing district in the
city of Yokohama went out for sale during the fiscal year: a 22-unit condominium “GRACENEST Tsunashima
(Kohoku-ku, Yokohama)” and a 17-unit condominium “SANRENO Aobadai (Aoba-ku, Yokohama).”
Despite such efforts, however, sales in this segment were 24,244 million yen, down 5.4% from one year earlier and
operating income was 1,110 million yen, down 39.0% from one year earlier. This was mainly because of
postponement of a significant consultation project in the condominium business to the next fiscal year. 3) Other Businesses
Sales in this segment for the current fiscal year, which consists primarily of sales from lifestyle support services,
decreased 6.5% from one year earlier to 388 million yen and operating income was 8 million yen (compared with
operating loss of 44 million yen in the same period of the previous fiscal year). Forecasts for the next fiscal year
In Japan’s housing sector, we expect an on-going recovery in the market in the fiscal year ending March 31, 2017
underpinned by the government’s continuous support to buy houses, various tax benefits, and low-rate mortgages,
despite concerns for another consumption tax hike and soaring construction costs.
Under such circumstances, in November 2015, Sanyo Homes Group formulated a mid-term business plan ending
March 31, 2018. According to the business plan, the next fiscal year ending March 31, 2017, or the second year of
the plan, is the year to further expand our core business in response to socioeconomic changes and also proactively
develop new businesses related to “housing” and “living.” We are dedicated to become a comprehensive housing
lifestyle idea provider that can lead our customers to the best possible life.
In the fiscal year ending on March 31, 2017, as we planned in the mid-term management plan, we forecast net sales
of 72,400 million yen, up 51.7% year on year, operating income of 1,700 million yen (compared with operating loss
of 55 million yen in the same period of previous fiscal year), ordinary income of 1,300 million yen (compared with
ordinary loss of 76 million yen in the same period of previous fiscal year), and profit attributable to owners of parent
of 900 million yen (compared with loss attributable to owners of parent of 297 million yen in the same period of
previous fiscal year).
Note: Forecasts are based on information currently available to the Company. Actual performance may differ from
these forecasts for a number of reasons.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Total assets increased 9,838 million yen from the end of the previous fiscal year to 51,753 million yen at the end of
the current fiscal year on a consolidated basis. The main factors were increases of 2,754 million yen in real estate for
sale and 6,806 million yen in costs on real estate business.
Total liabilities increased 10,285 million yen from the end of the previous fiscal year to 36,569 million yen. The
main factors were increases of 10,093 million yen in short and long-term loans payable and 457 million yen in
advances received, and decreases of 259 million yen in accrued expenses and 259 million yen in income taxes
payable.
Total net assets decreased 446 million yen from the end of the previous fiscal year to 15,183 million yen. The main
factor was a decrease of 487 million yen in retained earnings. As a result, the equity ratio was 29.3%.
2) Cash Flows
Cash and cash equivalents (hereafter “net cash”) decreased 208 million yen from the end of the previous fiscal year to
4,491 million yen at the end of the current fiscal year on a consolidated basis. This net decrease of 208 million yen can
be explained by operating activities that used net cash of 9,306 million yen, investing activities that used net cash of
804 million yen, and financing activities that provided net cash of 9,903 million yen.
A summary of cash flows and major components are as follows.
Cash flows from operating activities
For the fiscal year ended March 31, 2016, net cash used in operating activities totaled 9,306 million yen (compared
with net cash used of 4,775 million yen in the previous fiscal year). The main factors were loss before income taxes of
222 million yen, a 9,493 increase in inventories, a 262 million decrease in accrued expenses, which were partially
offset by a 402 million yen increase in notes and accounts payable-trade and a 457 million yen increase in advances
received. Cash flows from investing activities
For the fiscal year ended March 31, 2016, net cash used in investing activities totaled 804 million yen (compared with
net cash provided of 579 million yen in the previous fiscal year). The main factors were net payments into time
deposits of 600 million yen and purchase of property, plant and equipment of 114 million yen. Cash flows from financing activities
For the fiscal year ended March 31, 2016, net cash provided by financing activities totaled 9,903 million yen
(compared with net cash provided of 580 million yen in the previous fiscal year). The main factors were a 10,093
million yen increase in long and short-term loans payable (net) and cash dividends paid of 189 million yen.
(3) Basic Policy for Profit Distribution, and Dividends in the Current and Next Fiscal Years
The distribution of earnings to shareholders is one of our highest priorities. The basic policy is to pay a consistent
dividend to shareholders while retaining sufficient earnings for sustaining growth and building a sound infrastructure
for our operations.
Regarding the profit distribution for the current fiscal year, we will follow the above policy and pay the dividend of
15 yen per share in light of the past record and earnings forecast for the next fiscal year although we reported loss for
the current fiscal year. We have made this decision because we are keen on ensuring the shareholder return on a
long-term basis while improving the financial soundness through increasing shareholders’ equity. As for the dividend
for the next fiscal year, we plan to maintain the same level as the current fiscal year, i.e., 15 yen per share.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(4) Business Risks
1) Changes in the operating environment
The operations of the Sanyo Homes Group are vulnerable to changes in markets associated with the group’s business
activities, movements in prices of raw materials, building materials and land, changes in interest rates and residential
property taxes, the ongoing issue over another consumption tax hike, the level of employment, and other items.
Uncertainties involving external factors may have an effect on our results of operations and financial condition.
2) Declines in value of real estate and other property and equipment
In the condominium business, we buy land for the development and sale of condominiums in four major
metropolitan areas of Japan. A downturn in Japan’s real estate market may have an effect on our results of operations
and financial condition. Furthermore, a drop in the market value of real estate or the rental rates may create the need
to lower the book value of real estate owned by group companies.
In addition to the real estate, there are non-current assets owned by group companies which are subject to the
impairment requirements. This may have an effect on our results of operations and financial condition.
3) Higher cost of raw materials and building materials
If there is a significant increase in the cost of steel, lumber or other primary materials used to construct residential
buildings, the price of building materials and other items we purchase would increase. This may have an effect on
our results of operations and financial condition.
4) Debt
We require funds to support the increase in inventory assets resulting from real estate development and other
activities in our growing condominium business. To procure these funds, we use loans from financial institutions. At
the end of March 2016, debt (excluding lease obligation) totaled 23,710 million yen, which was 45.8% of total assets.
For loans, we use short-term and long-term loans in consideration of the risk of an increase in interest rates. If there
is an increase in the cost of fund procurement activities caused by higher interest payments, there may be an effect
on our results of operations and financial condition.
5) Soil contamination
The Soil Contamination Countermeasures Act requires landowners to perform tests for soil contamination caused by
hazardous substances designated by laws and regulations and landowners must submit contamination reports and
remove any contamination, as the case may be.
Prior to purchasing land for development, we examine the site’s history and perform a soil contamination
investigation. If there is contamination, we either do not purchase the site or we have the contamination removed.by
a specialized contractor. However, these preliminary examinations cannot identify soil contamination in some
instances. Furthermore, even when we find contamination, the landowner may be unable to fulfill its responsibility
to correct the problem. As a result, when contamination is discovered at a site that has been purchased, we may need
to revise the development schedule, pay additional expenses, recognize an asset retirement obligation or incur other
expenses. These events may have an effect on our results of operations and financial condition.
6) Seasonality
We recognize sales by using the percentage-of-completion method for single-family houses and when ownership is
transferred to the buyer for condominiums. Due to the wishes of customers, ownership of completed properties is
mostly transferred somewhere between August and September or between February and March. As a result, a large
percentage of sales is usually recorded in the second and fourth quarters of each fiscal year. The following table
shows quarterly financial highlights for the fiscal years that ended in March 31, 2015 and March 31, 2016.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(Thousands of yen)
19th period (Apr. 1, 2014 – Mar. 31, 2015)
1st Quarter Apr. 1, 2014 – Jun. 30, 2014
2nd Quarter Jul. 1, 2014 - Sep. 30, 2014
3rd Quarter Oct. 1, 2014 – Dec. 31, 2014
4th Quarter Jan. 1, 2015 – Mar. 31, 2015
Full year
Net sales 8,458,324 12,226,144 7,519,671 24,600,023 52,804,164
Operating income (loss) (510,500) 639,067 (848,039) 2,220,190 1,500,716
Ordinary income (loss) (544,597) 629,703 (859,597) 2,185,203 1,410,712
Profit (loss) (362,723) 392,269 (570,208) 1,270,409 729,747
20th period (Apr. 1, 2015 – Mar. 31, 2016)
1st Quarter Apr. 1, 2015 – Jun. 30, 2015
2nd Quarter Jul. 1, 2015 - Sep. 30, 2015
3rd Quarter Oct. 1, 2015 – Dec. 31, 2015
4th Quarter Jan. 1, 2016 – Mar. 31, 2016
Full year
Net sales 5,806,152 13,849,608 9,608,207 18,456,502 47,720,472
Operating income (loss) (1,164,713) 397,025 (607,160) 1,319,699 (55,149)
Ordinary income (loss) (1,176,939) 376,774 (623,766) 1,347,763 (76,167)
Profit (loss) (811,913) 246,008 (426,572) 694,553 (297,923)
7) Quality assurance
The Sanyo Homes Group has an extensive quality management system in its housing business that is based on the
certified performance of manufactured homes and the ISO9001 standard for quality management systems. If there is
an expense caused by an unforeseen defect or some other problem involving quality, there may be significant
expenses for repairs and severe damage to the group’s reputation. These events may have an effect on our results of
operations and financial condition.
8) Natural disasters
An earthquake, typhoon or other natural disaster may result in significant expenses for a number of reasons. For
example, there may be expenses to repair machinery and equipment at group companies or for emergency response
activities such as building inspections. A natural disaster may also interrupt production activities due to the time
needed to repair or replace damaged machinery and equipment. These events may have an effect on our results of
operations and financial condition.
9) Laws and regulations
The operations of the Sanyo Homes Group require the following major licenses and permits: Construction Business
License, Building Lots and Buildings Business Operator License and Architect Office Registration. In addition,
group companies must comply with environmental and recycling laws and regulations and must submit reports
concerning problems involving products in accordance with the amended Consumer Product Safety Act. Moreover,
group companies must purchase insurance or make a deposit as stipulated by the Act on Assurance of Performance
of Specified Housing Defect Warranty.
We are strengthening our corporate governance and compliance systems for compliance with these laws and
regulations. However, there may be future amendments or terminations of existing laws and regulations or the
establishment of new laws or regulations, or an unlikely incidence of the violation of a law or regulation. If such an
event happens, there may be restrictions on our business activities that affect our results of operations and financial
condition. At this time, the Sanyo Homes Group is not in violation of any terms that would result in the cancelation
of the following licenses.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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Licenses and Permits
Name Company
name Number and expiration
Law or regulation
Condition for cancelation
Construction Business License (Special Construction Business License)
Sanyo Homes Corporation
Sanyo Reform Corporation
Minister of Land, Infrastructure, Transport and Tourism License (Special-23) No. 19226, expires Aug. 5, 2016 (renewed every 5 years)
Minister of Land, Infrastructure, Transport and Tourism License (Special-23) No. 19226, expires Jun. 9, 2018 (renewed every 5 years)
Osaka Prefectural Governor License (Special-22) No. 116905, expires Jul. 15, 2020 (renewed every 5 years)
Construction Business Act
Violation of provisions of Article 29 of the Construction Business Act
Construction Business License (Ordinary Construction Business License)
Sanyo Reform Corporation
Osaka Prefectural Governor License (Ordinary-23) No. 116905, expires Jul. 15, 2020 (renewed every 5 years)
Construction Business Act
Violation of provisions of Article 29 of the Construction Business Act
Building Lots and Buildings Business Operator License
Sanyo Homes Corporation
Minister of Land, Infrastructure, Transport and Tourism Certificate (3) No. 6105, expires Dec. 19, 2020 (renewed every 5 years)
Building Lots and Buildings Transaction Business Act
Violation of provisions of Articles 66 and 67 of the Building Lots and Buildings Transaction Business Act
Architecture Office Registration
Sanyo Homes Corporation
Sanyo Reform Corporation
Sanyo Homes Community Corporation
Osaka Prefectural Governor Registration (3) No. 18657 and others expire Sep. 19, 2020 (renewed every 5 years)
Osaka Prefectural Governor Registration (2) No. 20219, expires May 20, 2018 (renewed every 5 years)
Osaka Prefectural Governor Registration (1) No. 23994, expires May 24, 2017 (renewed every 5 years)
Act on Architects and Building Engineers
Violation of provisions of Article 26 of the Act on Architects and Building Engineers
Condominium Management Business Registration
Sanyo Homes Community Corporation
Minister of Land, Infrastructure, Transport and Tourism License (2) No. 063480, expires Dec. 11, 2018 (renewed every 5 years)
Act on Advancement of Proper Condominium Management
Violation of provisions of Article 33 of the Act on Advancement of Proper Condominium Management
10) Protection of personal information
The Sanyo Homes Group uses a large volume of personal information about customers and other individuals in
association with its business activities. We constantly use measures throughout all group companies to protect
personal information. If there is a leak or other problem involving this information, there may be severe damage to
the public’s trust in the Sanyo Homes Group, which could have an effect on our results of operations and financial
condition.
11) Construction of condominiums
The Sanyo Homes Group uses a compliance system and other activities to prevent litigation, complaints and other
problems. At this time, there are no lawsuits that could have a significant effect on results of operations.
In the past, there have been lawsuits and other demands in the condominium business, such as those developed from
a complaint from people who live near a condominium building constructed by a group company. Similar lawsuits
and complaints may occur in the future. Depending on the nature and outcomes of these actions, there may be an
effect on our results of operations and financial condition.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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2. Corporate Group
The Sanyo Homes Group consists of Sanyo Homes and three consolidated subsidiaries. The primary businesses of
these companies are the housing business (design, construction supervision, subcontracting and sales for the housing,
asset utilization and residential remodeling businesses) and the condominium business (development, sale, rental and
management of condominiums). All activities reflect the corporate slogan “for the best life” with the goal of
becoming a comprehensive housing lifestyle idea provider that can lead our customers to the best possible life.
Major business activities of the group are as follows.
Housing business
In this business, we design, supervise construction, perform subcontracting and sell prefabricated houses and
buildings for the asset utilization business that use components manufactured in our factories. We also perform these
activities for residential remodeling. This business is mainly in four major metropolitan areas of Japan: Tokyo,
Nagoya, Osaka and northern Kyushu (Kitakyushu and Fukuoka). Consolidated subsidiary Sanyo Reform operates
mainly in the Osaka area. This company does designs, construction supervision and subcontracting for home
remodeling and constructs houses and buildings for the asset utilization business.
Condominium business
We develop, sell and rent condominiums located mainly in four major metropolitan areas of Japan. Consolidated
subsidiary Sanyo Homes Community manages condominiums and provides other services.
Other businesses
Consolidated subsidiary Sanyo Homes Community provides a variety of lifestyle support services that enable people
to lead their lives with confidence and convenience. An insurance agent and child care business are two main
activities. Consolidated subsidiary San Advance operates daytime rehabilitation service centers in the region
surrounding Osaka, Kobe and Kyoto for elderly residents.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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The business operations of the Sanyo Homes Group in a flowchart format are shown below.
Housing business
Custom
ers
Design, construction, and undertaking of construction works contracts
Asset utilization
Design, construction, undertaking of construction works contracts, and sales
Housing
Residential remodeling
Design, construction, and undertaking of construction works contracts
Condominium business
Development, sales, rental and management
Other businesses
Lifestyle support services
Sanyo H
omes C
orporation
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Sanyo Homes Corporation (1420) Financial Results for FY3/16
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3. Management Policies
(1) Basic Management Policy
We are dedicated to responding to the wants of customers as housing professionals with the goal of heightening
customer satisfaction by creating comfortable spaces and offering ideas for exciting and fulfilling lives.
To accomplish this goal, we are taking the following actions.
(a) Become a distinctive company that our customers require
We aim to be a distinctive company that the society needs through engaging ourselves in the businesses that are
expected to grow in light of our country’s social condition and demography in the future, namely “residential
renewal and resale,” “life support” and “frontier (eco energy, OEM and overseas)” businesses on top of our core
businesses consisting of “condominiums,” “housing,” “asset utilization,” and “renovation.”
(b) Base all activities on the spirit of “for the best life”
We have a strong commitment to being a source of “the best life” for our customers during their entire lives and for
residences they need in each stage of their lives. We will move even faster to evolve into a comprehensive housing
lifestyle idea company that customers can rely on for good housing and living, including the associated know-how
and services.
(c) Develop and utilize “Eco & Safety” technologies
We will use our expertise in eco technologies involving energy creation, storage and conservation. We will also use
new activities that incorporate “passive eco” measures for making people’s lives more pleasant. Going forward, ZEH
(zero energy house), which the government is also promoting, will be our standard. For safety, we have technologies
that no competitor can match for resistance to earthquakes and other natural disasters and we will develop a security
service that uses HEMS (Home Energy Management System).
(2) Targeted Performance Indicators
We use net sales and ordinary income as the performance indicators that reflect the growth of the entire Sanyo
Homes Group. We place priority on ROE (return on equity) to measure efficiency of our activities and on the equity
ratio as an indicator to measure the financial soundness.
(3) Challenges
As the working age population is shrinking in Japan, the housing sector expects a long-term downturn in the market
for new houses and also an increase in the number of vacant or abandoned houses. It is essential for such a society
with decreasing population to start trying to solve these inevitable issues.
Amid such environment, in November 2015, Sanyo Homes Group developed a mid-term business plan ending
March 31, 2018 to address the following: to reorganize business portfolios in response to changes in socioeconomic
situations, including shrinking population and households, declining birth rate and aging society, different family
styles, and changes in urban structure; to create a new business structure under which business portfolios are
incorporated into the original region-based operation; and to successfully conduct business by fully understanding
our customer’s need. Furthermore, we will continuously develop and enhance the “Team Management System”
introduced in April 2015 to improve efficiency by working in smaller teams, to speed up communication between
sales and back-office staff, and to swiftly implement business strategies as markets change.
In addition to above, Sanyo Homes Group established a joint venture with one of the leading companies in Vietnam,
where the economy and housing market are expected to grow in the future, and started developing condominiums
with our know-how as a comprehensive housing lifestyle idea provider. We are dedicated to explore new markets
going forward, including Vietnam.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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4. Basic Approach to the Selection of Accounting Standards
The Sanyo Homes Group will continue to prepare consolidated financial statements based on generally accepted
accounting principles in Japan for the time being to permit comparisons with prior years and with the financial data
of other companies.
We will take suitable actions with regard to the application of international accounting standards by taking into
account associated factors in Japan and other countries.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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5. Consolidated Financial Statements
(1) Consolidated Balance Sheet (Thousands of yen)
FY3/15
(As of Mar. 31, 2015) FY3/16
(As of Mar. 31, 2016)
Assets
Current assets
Cash and deposits 7,899,298 8,291,031
Notes receivable, accounts receivable from completed construction contracts and other
1,180,461 1,025,176
Real estate for sale 11,587,841 14,342,046
Costs on uncompleted construction contracts 99,489 146,292
Costs on real estate business 16,932,937 23,738,951
Other inventories 248,928 135,347
Prepaid expenses 505,658 481,484
Deferred tax assets 285,589 320,810
Other 251,660 516,654
Allowance for doubtful accounts (11,320) (11,738)
Total current assets 38,980,544 48,986,057
Non-current assets
Property, plant and equipment
Buildings and structures, net 748,959 578,358
Land 189,102 194,006
Other, net 75,961 69,555
Total property, plant and equipment 1,014,022 841,920
Intangible assets
Software 22,876 14,375
Other 3,932 3,932
Total intangible assets 26,809 18,308
Investments and other assets
Investment securities 496,556 501,088
Deferred tax assets 527,445 463,075
Other 885,637 965,858
Allowance for doubtful accounts (16,813) (23,203)
Total investments and other assets 1,892,825 1,906,819
Total non-current assets 2,933,657 2,767,047
Total assets 41,914,202 51,753,104
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(Thousands of yen)
FY3/15
(As of Mar. 31, 2015) FY3/16
(As of Mar. 31, 2016)
Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts and other
7,122,456 7,524,495
Short-term loans payable 3,250,000 6,580,000
Current portion of long-term loans payable 2,482,000 4,080,000
Accrued expenses 760,174 500,234
Income taxes payable 314,538 55,001
Advances received on uncompleted construction contracts
740,133 843,567
Advances received 720,519 1,178,250
Provision for bonuses 328,386 128,750
Provision for warranties for completed construction 145,319 126,600
Other 757,630 795,562
Total current liabilities 16,621,159 21,812,461
Non-current liabilities
Long-term loans payable 7,885,000 13,050,000
Deferred tax liabilities - 4,089
Provision for directors’ retirement benefits 163,434 179,176
Net defined benefit liability 1,392,785 1,299,613
Other 221,583 224,282
Total non-current liabilities 9,662,803 14,757,161
Total liabilities 26,283,962 36,569,623
Net assets
Shareholders’ equity
Capital stock 5,945,162 5,945,162
Capital surplus 3,611,796 3,611,796
Retained earnings 6,073,655 5,586,431
Total shareholders’ equity 15,630,614 15,143,390
Accumulated other comprehensive income
Remeasurements of defined benefit plans (374) 40,090
Total accumulated other comprehensive income (374) 40,090
Total net assets 15,630,239 15,183,480
Total liabilities and net assets 41,914,202 51,753,104
Sanyo Homes Corporation (1420) Financial Results for FY3/16
14
(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income (Thousands of yen)
FY3/15
(Apr. 1, 2014 – Mar. 31, 2015) FY3/16
(Apr. 1, 2015 – Mar. 31, 2016)
Net sales 52,804,164 47,720,472
Cost of sales 41,930,160 38,642,558
Gross profit 10,874,004 9,077,913
Selling, general and administrative expenses 9,373,287 9,133,062
Operating income (loss) 1,500,716 (55,149)
Non-operating income
Interest income 16,616 15,079
Commission fee 17,646 17,719
Rent income 39,337 40,141
Penalty income 27,336 39,468
Other 24,937 27,473
Total non-operating income 125,874 139,882
Non-operating expenses
Interest expenses 149,231 144,615
Other 66,647 16,285
Total non-operating expenses 215,879 160,900
Ordinary income (loss) 1,410,712 (76,167)
Extraordinary income
Gain on sales of non-current assets 2,730 5,228
Subsidy income - 15,493
Total extraordinary income 2,730 20,722
Extraordinary losses
Loss on retirement of non-current assets 7,214 558
Impairment loss 78,010 166,219
Total extraordinary losses 85,224 166,778
Profit (loss) before income taxes 1,328,218 (222,223)
Income taxes-current 321,550 60,287
Income taxes-deferred 276,920 15,412
Total income taxes 598,470 75,700
Profit (loss) 729,747 (297,923)
Profit (loss) attributable to owners of parent 729,747 (297,923)
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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Consolidated Statement of Comprehensive Income (Thousands of yen)
FY3/15
(Apr. 1, 2014 – Mar. 31, 2015) FY3/16
(Apr. 1, 2015 – Mar. 31, 2016)
Profit (loss) 729,747 (297,923)
Other comprehensive income
Remeasurements of defined benefit plans, net of tax 12,174 40,464
Total other comprehensive income 12,174 40,464
Comprehensive income 741,922 (257,458)
Comprehensive income attributable to Comprehensive income attributable to owners of parent
741,922 (257,458)
Comprehensive income attributable to non-controlling interests
- -
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(3) Consolidated Statement of Changes in Equity
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
(Thousands of yen)
Shareholders’ equity Accumulated other comprehensive
income Total net
assets Capital stock
Capital surplus
Retained earnings
Total shareholders’
equity
Remeasurements of defined benefit
plans
Total accumulated other
comprehensive income
Balance at beginning of current period
5,945,162 3,611,796 5,532,144 15,089,103 (12,549) (12,549) 15,076,554
Cumulative effects of changes in accounting policies
1,063 1,063 1,063
Restated balance 5,945,162 3,611,796 5,533,207 15,090,167 (12,549) (12,549) 15,077,617
Changes of items during period
Issuance of new shares
-
Dividends of surplus
(189,300) (189,300) (189,300)
Profit attributable to owners of parent
729,747 729,747 729,747
Net changes of items other than shareholders' equity
12,174 12,174 12,174
Total changes of items during period
- - 540,447 540,447 12,174 12,174 552,622
Balance at end of current period
5,945,162 3,611,796 6,073,655 15,630,614 (374) (374) 15,630,239
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
(Thousands of yen)
Shareholders’ equity Accumulated other comprehensive
income Total net
assets Capital stock
Capital surplus
Retained earnings
Total shareholders’
equity
Remeasurements of defined benefit
plans
Total accumulated other
comprehensive income
Balance at beginning of current period
5,945,162 3,611,796 6,073,655 15,630,614 (374) (374) 15,630,239
Cumulative effects of changes in accounting policies
Restated balance 5,945,162 3,611,796 6,073,655 15,630,614 (374) (374) 15,630,239
Changes of items during period
Issuance of new shares
-
Dividends of surplus
(189,300) (189,300) (189,300)
Loss attributable to owners of parent
(297,923) (297,923) (297,923)
Net changes of items other than shareholders' equity
40,464 40,464 40,464
Total changes of items during period
- - (487,223) (487,223) 40,464 40,464 (446,758)
Balance at end of current period
5,945,162 3,611,796 5,586,431 15,143,390 40,090 40,090 15,183,480
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(4) Consolidated Statement of Cash Flows (Thousands of yen)
FY3/15
(Apr. 1, 2014 – Mar. 31, 2015) FY3/16
(Apr. 1, 2015 – Mar. 31, 2016)
Cash flows from operating activities
Profit (loss) before income taxes 1,328,218 (222,223)
Depreciation 137,435 132,243
Impairment loss 78,010 166,219
Increase (decrease) in provision for bonuses (23,756) (199,636)
Interest income (16,616) (15,079)
Interest expenses 149,231 144,615
Loss (gain) on sales of property, plant and equipment (2,730) (5,228)
Decrease (increase) in notes and accounts receivable-trade 2,000,819 150,004
Decrease (increase) in inventories (1,581,356) (9,493,439)
Increase (decrease) in notes and accounts payable-trade (4,999,691) 402,039
Increase (decrease) in advances received on uncompleted construction contracts
(38,388) 103,434
Increase (decrease) in advances received 35,756 457,731
Increase (decrease) in accrued expenses (1,943) (262,747)
Other, net (856,186) (221,763)
Subtotal (3,791,199) (8,863,832)
Interest and dividend income received 12,640 10,154
Interest expenses paid (150,940) (140,830)
Income taxes paid (846,198) (312,441)
Net cash provided by (used in) operating activities (4,775,697) (9,306,948)
Cash flows from investing activities
Payments into time deposits (3,300,000) (3,800,000)
Proceeds from withdrawal of time deposits 4,150,000 3,200,000
Purchase of property, plant and equipment (171,291) (114,560)
Proceeds from sales of property, plant and equipment 2,730 5,839
Other, net (101,817) (95,758)
Net cash provided by (used in) investing activities 579,621 (804,478)
Cash flows from financing activities
Net increase (decrease) in short-term loans payable 2,020,000 3,330,000
Proceeds from long-term loans payable 5,938,000 13,510,000
Repayments of long-term loans payable (7,108,000) (6,747,000)
Redemption of bonds (80,000) -
Cash dividends paid (188,954) (189,035)
Other, net (803) (803)
Net cash provided by (used in) financing activities 580,241 9,903,160
Net increase (decrease) in cash and cash equivalents (3,615,833) (208,266)
Cash and cash equivalents at beginning of period 8,315,132 4,699,298
Cash and cash equivalents at end of period 4,699,298 4,491,031
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Accounting Policies in the Preparation of Consolidated Financial Statements
1. Scope of consolidation
All subsidiaries are included in the consolidation.
Number of consolidated subsidiaries: 3
Names of consolidated subsidiaries:
Sanyo Reform Corporation
Sanyo Homes Community Corporation
San Advances Corporation
2. Application of the equity method
(1) Number of equity-method affiliates: -
(2) A non-equity method affiliate (e-kurashi Co., Ltd.) is not accounted for by the equity method, since it does not
have a material impact on net income/loss (equity in earnings) and retained earnings (equity in earnings) on a
consolidated basis, and the total amount as a whole does not have a material impact to the consolidated financial
statements.
3. Fiscal year-end of consolidated subsidiaries
The fiscal year of the consolidated subsidiaries ends on the closing date of consolidated financial statements.
4. Significant accounting standards
(1) Valuation criteria and methods for significant assets
1) Securities
i. Held-to-maturity debt securities
Stated at cost determined by the amortized cost method (straight-line method).
ii. Available-for-sale securities
Securities without market quotations
Stated at cost determined by the moving-average method.
2) Inventories
i. Real estate for sale, costs on uncompleted construction contracts, and costs on real estate business Stated at cost determined by the specific-identification method. (The carrying value on the balance sheet is written
down to reflect declines in profitability.)
ii. Other inventories (Finished goods, semi-finished goods, work in process, and raw materials)
Stated at cost determined by the moving-average method. (The carrying value on the balance sheet is written
down to reflect declines in profitability.)
(2) Depreciation and amortization method for significant depreciable assets
1) Property, plant and equipment (excluding lease assets)
Declining-balance method, except for buildings (excluding building fixtures) acquired on or after April 1, 1998 on
which depreciation is calculated by the straight-line method.
The useful lives of principle assets are summarized as follows:
Buildings and structures 3 to 47 years
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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2) Intangible assets (excluding lease assets)
Straight-line method.
Amortization of software for internal use is calculated by the straight-line method over a period of 5 years.
3) Lease assets
The straight-line method is applied over the lease period used as the useful lives of the assets with no residual
value.
(3) Accounting for significant allowance
1) Allowance for doubtful accounts
To prepare for credit losses on receivables, an allowance equal to the estimated amount of uncollectible
receivables is provided for general receivables based on the historical write-off ratio, and bad receivables based on
a case-by-case determination of collectibility.
2) Provision for bonuses
To provide for accrued bonuses for employees and corporate officers, an allowance is provided at the amount
based on the estimated bonus obligations in the current fiscal year.
3) Provision for warranties for completed construction To prepare for expenses to fulfill the Company’s obligations concerning any defects in buildings that have been sold, an allowance is provided based on actual repair expenses at completed construction projects in the past and on estimated repair expenses for specific buildings.
4) Provision for directors’ retirement benefits
To prepare for directors’ (including corporate officers) retirement benefits, an allowance is provided for the
aggregate amount payable at the end of the fiscal year pursuant to the internal rules on directors’ retirement
benefits.
The portion of this allowance for corporate officers, which was 115,000 thousand yen as of March 31, 2016, is included in provision for directors’ retirement benefits.
(4) Accounting method for retirement benefits
1) Method of attributing estimated retirement benefits to periods
In calculation of retirement benefit obligations, the benefit formula basis is used for attributing estimated
retirement benefits to period before the end of the current fiscal year.
2) Amortization of actuarial gain or loss
Actuarial gain or loss is amortized and charged to expense in the year following the fiscal year in which such gain
or loss is recognized by the straight-line method over a certain period (principally eight years) which is within the
estimated average remaining years of service of the eligible employees.
3) Adoption of simplified methods in small enterprise Some of our consolidated subsidiaries use simplified method (which assumes a company’s benefit obligation to be equal to the benefits payable assuming the voluntary retirement of all employees at fiscal year-end) to calculate net defined benefit liability and retirement benefit expenses.
(5) Recognition of significant revenues and expenses
Recognition criteria for recording amount and cost of completed construction contracts
1) Contracted work of which the outcome by the end of the current fiscal year can be reliably estimated
The percentage-of-completion method (with the percentage of completion estimated on the cost-to-cost basis)
2) Other contracted work
The completed-contract method
(6) Cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand and bank deposits which can be withdrawn at any time and
short-term investments with the duration of three months or less which can be easily converted to cash and are
exposed to little risk of change in value.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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(7) Other significant matters
Accounting for consumption taxes
National and local consumption taxes are accounted by the tax-exclusion method. Non-deductible national and local
consumption taxes are recorded as expenses in the current fiscal year.
Changes in Accounting Policies
Application of the Accounting Standard for Business Combinations, etc.
The Company has applied the “Accounting Standard for Business Combinations” (Accounting Standards Board of
Japan (ASBJ) Statement No. 21, September 13, 2013), “Accounting Standard for Consolidated Financial Statements”
(ASBJ Statement No. 22, September 13, 2013), “Accounting Standard for Business Divestitures” (ASBJ Statement
No. 7, September 13, 2013), etc. from the current fiscal year. Accordingly, difference arising from changes in the
Company’s ownership interests in subsidiaries in cases where control is retained is recognized in capital surplus, and
the acquisition costs in connection with business combinations are recognized as expenses in the fiscal year in which
they arise. Regarding business combinations that take place on or after the beginning of the current fiscal year, the
Company has revised the method to reflect reviewed allocation of the acquisition costs arising from determination of
the provisional accounting treatment on the consolidated financial statements to which the date of the business
combination belongs. In addition, the presentation of profit and other items has been revised, and the minority
interests item has been renamed non-controlling interests. For consistency with these changes, the consolidated
financial statements for the previous fiscal year have been reclassified.
The Company has adopted these accounting standards, etc. from the beginning of the current fiscal year, in
accordance with the transitional accounting treatments set forth in Article 58-2 (4) of the Accounting Standard for
Business Combinations, Article 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and
Article 57-4 (4) of the Accounting Standard for Business Divestitures.
There is no impact on the consolidated financial statements.
Segment and Other Information
Segment information
1. Overview of reportable segment
The reportable segments of the Group are constituent units of the Company for which separate financial information
is available and for which the Board of Directors conducts a regular review for the purposes of determining the
allocation of management resources and evaluating business performance.
The Company establishes a manufacturing and sales structure by each product and service and conducts business
operations based on a comprehensive strategy for all products and services.
Consequently, based on the types of business activities, the
re are two reportable segments by products and services: the Housing business and the Condominium business. The
Housing business includes designs, construction supervision and contracting, sales and other activities for housing,
asset utilization and residential remodeling. The Condominium business includes the development, sales, rental,
management and other activities for condominium buildings. 2. Calculation methods for net sales, profits or losses, assets, and other items for each reportable segment
The accounting method used for reportable business segments is generally the same as the methods listed in
“Significant Accounting Policies in the Preparation of Consolidated Financial Statements.”
Profits for reportable segments are operating income figures. Inter-segment sales and transfers are determined in the
same manner as for general transactions based on market prices.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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3. Information related to net sales, profit or loss, assets, and other items for each reportable segment
FY3/15 (Apr. 1, 2014-Mar. 31, 2015) (Thousands of yen)
Reportable segment
Other (Note 1)
Total Adjustment
(Note 2)
Amounts shown on consolidated financial statements (Note 3)
Housing business
Condominium business
Subtotal
Net sales
Sales to external customers
26,761,215 25,627,913 52,389,129 415,035 52,804,164 - 52,804,164
Inter-segment sales or transfers
566,428 3,423 569,852 35,111 604,963 (604,963) -
Total 27,327,643 25,631,337 52,958,981 450,146 53,409,127 (604,963) 52,804,164
Segment profit (loss) 662,717 1,821,163 2,483,881 (44,058) 2,439,822 (939,105) 1,500,716
Segment assets 6,338,891 25,907,591 32,246,482 43,165 32,289,648 9,624,553 41,914,202
Other items
Depreciation and amortization
110,967 15,057 126,025 4,349 130,375 7,060 137,435
Increase in property, plant and equipment and intangible assets
159,571 8,413 167,984 12,163 180,147 800 180,947
Notes: 1. Other segment represents the businesses which are not included in any of the reportable segments and mainly consist of the lifestyle support services.
2. Adjustments to segment profit and assets are as follows. (1) The negative adjustment of 939,105 thousand yen to segment profit includes company-wide costs that are not
allocated to any of the reportable segments. Company-wide costs consist of general and administrative expenses that cannot be attributable to any of the reportable segments.
(2) The 9,624,553 thousand yen adjustment to segment assets includes company-wide assets that are not allocated to any of the reportable segments. Corporate assets mainly include excess working capital, working capital and other assets not attributable to any of the reportable segments.
(3) The 7,060 thousand yen adjustment to depreciation and amortization includes depreciation of company-wide assets that cannot be allocated to reportable segments.
(4) The 800 thousand yen adjustment to increase in property, plant and equipment and intangible assets is capital expenditures not attributable to any of the reportable segments.
3. Segment profit and assets are adjusted with operating income and total assets shown on the consolidated financial statements.
FY3/16 (Apr. 1, 2015-Mar. 31, 2016) (Thousands of yen)
Reportable segment
Other (Note 1)
Total Adjustment
(Note 2)
Amounts shown on consolidated financial statements (Note 3)
Housing business
Condominium business
Subtotal
Net sales Sales to external customers
23,088,210 24,244,003 47,332,214 388,257 47,720,472 - 47,720,472
Inter-segment sales or transfers
139,260 4,179 143,440 21,416 164,857 (164,857) -
Total 23,227,471 24,248,183 47,475,654 409,674 47,885,329 (164,857) 47,720,472
Segment profit (loss) (246,963) 1,110,910 863,947 8,669 872,616 (927,765) (55,149)
Segment assets 5,773,224 35,644,625 41,417,850 100,275 41,518,125 10,234,978 51,753,104
Other items
Depreciation and amortization
83,617 20,558 104,175 4,034 108,210 24,032 132,243
Increase in property, plant and equipment and intangible assets
5,989 2,940 8,929 59,325 68,255 44,948 113,203
Notes: 1. Other segment represents the businesses which are not included in any of the reportable segments and mainly consist of the lifestyle support services.
2. Adjustments to segment profit and assets are as follows. (1) The negative adjustment of 927,765 thousand yen to segment profit or loss includes company-wide costs that are
not allocated to any of the reportable segments. Company-wide costs consist of general and administrative
Sanyo Homes Corporation (1420) Financial Results for FY3/16
23
expenses that cannot be attributable to any of the reportable segments. (2) The 10,234,978 thousand yen adjustment to segment assets includes company-wide assets that are not allocated to
any of the reportable segments. Corporate assets mainly include excess working capital, working capital and other assets not attributable to any of the reportable segments.
(3) The 24,032 thousand yen adjustment to depreciation and amortization includes depreciation of company-wide assets that cannot be allocated to reportable segments.
(4) The 44,948 thousand yen adjustment to increase in property, plant and equipment and intangible assets is capital expenditures not attributable to any of the reportable segments.
3. Segment profit and assets are adjusted with operating income and total assets shown on the consolidated financial statements.
Related information
1. Information by product and service
Omitted because the same information is presented in the segment information.
2. Information by region
(1) Sales
Not applicable because there are no sales to external customers outside Japan. (2) Property, plant and equipment
Not applicable because there are no property, plant and equipment outside Japan.
3. Information by major customer
Omitted because no sales to external customer account for 10% or more of consolidated sales on the consolidated statement of income. Information related to an impairment loss on non-current assets for each reportable segment FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
(Thousands of yen)
Housing business Condominium business Other Elimination or
corporate Total
Impairment loss 78,010 - - - 78,010
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016) (Thousands of yen)
Housing business Condominium business Other Elimination or
corporate Total
Impairment loss 166,219 - - - 166,219
Information related to amortized amounts and the unamortized balance of goodwill for each reportable segment
Not applicable. Information related to gain on bargain purchase for each reportable segment
Not applicable.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
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Per-share Information (Yen)
FY3/15
(Apr. 1, 2014 – Mar. 31, 2015) FY3/16
(Apr. 1, 2015 – Mar. 31, 2016)
Net assets per share 1,238.53 1,203.13
Net income (loss) per share 57.82 (23.61)
Notes: 1. Diluted net income per share is not presented because there are no latent shares. 2. The basis of calculating the net assets per share is as follows:
FY3/15
(As of Mar. 31, 2015) FY3/16
(As of Mar. 31, 2016)
Total net assets (Thousands of yen) 15,630,239 15,183,480
Deduction on total net assets (Thousands of yen) -
[of which, non-controlling interests (Thousands of yen)] [-] [-]
Net assets at the end of the fiscal year applicable to common stock (Thousands of yen)
15,630,239 15,183,480
Number of shares of common stock used in calculation of net assets per share (Shares)
12,620,000 12,620,000
3. The basis of calculating the net income (loss) per share is as follows:
FY3/15
(Apr. 1, 2014 – Mar. 31, 2015) FY3/16
(Apr. 1, 2015 – Mar. 31, 2016)
Net income per share
Profit (loss) attributable to owners of parent (Thousands of yen)
729,747 (297,923)
Profit not attributable to common shareholders (Thousands of yen)
- -
Profit (loss) attributable to common shareholders of parent (Thousands of yen)
729,747 (297,923)
Average number of shares outstanding (Shares) 12,620,000 12,620,000
Subsequent Events
Not applicable.
Sanyo Homes Corporation (1420) Financial Results for FY3/16
25
6. Other Information
1) Orders Received
Orders received in FY3/16 are broken down by segment as follows. (Thousands of yen)
Operating segment Orders received Year-on-year (%) Order backlog Year-on-year (%)
Housing business 23,260,453 88.7 11,083,751 101.6
Condominium business 28,298,656 122.3 11,953,506 151.3
Other 388,257 93.6 - -
Total 51,947,367 104.4 23,037,257 122.5
Notes: 1. Inter-segment transactions have been eliminated. 2. The above amounts do not include consumption taxes. 3. No order backlog is shown in the other segment because net sales are the same as the orders received.
Orders received by region are as follows. (Thousands of yen)
Kanto area Chubu area Kinki area Kyushu area Total
11,094,123 9,204,990 24,893,535 6,754,717 51,947,367
2) Sales
Sales in FY3/16 are broken down by segment as follows.
Operating segment Sales (Thousands of yen) Year-on-year (%)
Housing business 23,088,210 86.3
Condominium business 24,244,003 94.6
Other 388,257 93.6
Total 47,720,472 90.4
Notes: 1. Inter-segment transactions have been eliminated. 2. The above amounts do not include consumption taxes. Sales by region are as follows. (Thousands of yen)
Kanto area Chubu area Kinki area Kyushu area Total
14,797,313 9,909,925 16,227,040 6,786,191 47,720,472
This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation.