Medium-Term Management Plan: Change & Proceed to 2007 (C&P07)
Last updated：May 11, 2005
NTT Urban Development Corporation announces the formation of its new medium-term management plan, Change & Proceed to 2007 (C&P07), for the three years beginning in the fiscal year ending March 31, 2006. Details of the plan are outlined below.
The objectives of the plan are to put in place fundamental strategies for the future growth of NTT Urban Development, which listed its shares publicly in November 2004. The plan also aims to augment customer service levels and set the stage for stable and sustained increases in shareholder value over the medium to long term by applying the expertise the Company has cultivated as a developer.
1. Basic Policies
- Create a platform for stable and sustained increases in corporate value over the long term.
- Create a framework to constantly feed new projects into the development pipeline.
- Expand business opportunities by providing solutions that meet the real estate needs of NTT Group companies.
- By the fiscal year ending March 31, 2008, achieve annual net sales of ¥110.0 billion and ordinary income of ¥18.5 billion, and post year-on-year revenue and profit increases each fiscal year.
2. Performance Objectives for the Fiscal Year Ending March 31, 2008
(1) Financial Targets
| (Reference) | ||
|---|---|---|
| Fiscal year ending March 31, 2008 | Fiscal year ended March 31, 2005 | |
| Net sales | ¥110.0 billion (up 4.6%) | ¥96.1 billion |
| Operating income | ¥22.0 billion (up 8.3%) | ¥17.3 billion |
| Recurring income | ¥18.5 billion (up 11.1%) | ¥13.5 billion |
| Operating margin | 20.0% | 18.0% |
- Note: Figures in parentheses ( ) are compound annual growth rates.
(2) Financial Indicators
| (Reference) | |||
|---|---|---|---|
| Fiscal year ending March 31, 2008 | Fiscal year ended March 31, 2005 | Fiscal year ended March 31, 2004 | |
| Interest-bearing debt | ¥275.0 billion | ¥231.7 billion | ¥278.6 billion |
| Debt to equity ratio | 2.2 times | 2.1 times | 5.8 times |
3. Business Strategies
Development
- Continue with Urbannet Nagoya Building (scheduled for completion in September 2005) and Akihabara UDX (scheduled for completion in March 2006) project development, tenant leasing and property management
- Actively participate in the Otemachi chain redevelopment project
- Determine and participate in new projects following Akihabara UDX
Leasing
- Achieve ¥78.0 billion in segment net sales by the fiscal year ending March 31, 2008
- Engage in solution-based sales to principal clients
- Expand total rentable floor space through the master-lease structure
- Strengthen the platform to expand property management and other non-asset businesses
- Implement further cost reduction measures
Residential Property Sales
- By the fiscal year ending March 31, 2008, expand segment net sales to ¥24.0 billion
- Build up the Wellith brand
- Expand land acquisition sources and diversify development approaches
- Note: These materials include forward-looking statements, which include management's analysis and judgments, based on currently available information. Owing to future changes in the management environment, actual results may differ from expected levels.