SEKISUI HOUSE, LTD. Consolidated Financial Results for FY2023 (February 1, 2023 through January 31, 2024)
March 7, 2024
Company name | : Sekisui House, Ltd. | (URL https://www.sekisuihouse.co.jp/english/) | ||||||||||
Listed exchanges | : Tokyo, Nagoya | |||||||||||
Stock code | : 1928 | |||||||||||
Representative | : Yoshihiro Nakai, Representative Director of the Board, President, Executive | |||||||||||
Inquiries | : Hiroyuki Kawabata, Operating Officer, Head of Investor Relations Department | |||||||||||
Tel +81 6 6440 3111 | ||||||||||||
Date of scheduled general shareholders' meeting | : April 25, 2024 | |||||||||||
Date of scheduled payment of dividends | : April 26, 2024 | |||||||||||
Date of scheduled filing of securities report | : April 26, 2024 | |||||||||||
Supplementary explanatory documents | : Yes | |||||||||||
Earnings results briefing | : Yes (for institutional investors and analysts, in Japanese) | |||||||||||
(Amounts are rounded down to the nearest million yen) | ||||||||||||
1. Consolidated Results for the FY2023 (February 1, 2023 through January 31, 2024) | ||||||||||||
(1)Consolidated Financial Results | (% figures represent changes from the same period of the previous year.) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | |||||
Year ended January 31, 2024 | 3,107,242 | 6.1 | 270,956 | 3.6 | 268,248 | 4.3 | 202,325 | 9.6 | ||||
Year ended January 31, 2023 | 2,928,835 | 13.1 | 261,489 | 13.6 | 257,272 | 11.8 | 184,520 | 19.9 |
(Note) Comprehensive income: Year ended Jan. 2024: ¥ 243,596 million ((7.4)%) Year ended Jan. 2023: ¥262,931 million (16.8%)
Profit per share | Fully diluted | Return on equity | Ordinary income | Operating profit | |
profit per share | ratio to total assets | ratio to net sales | |||
¥ | ¥ | % | % | % | |
Year ended January 31, 2024 | 309.29 | 309.19 | 11.9 | 8.4 | 8.7 |
Year ended January 31, 2023 | 276.58 | 276.46 | 11.9 | 8.9 | 8.9 |
(Reference) Equity in earnings of affiliates: | Year ended Jan. 2024: ¥ 1,900 million | Year ended Jan. 2023: ¥(2,087) million | ||||||||||||||
(2)Consolidated Financial Position | ||||||||||||||||
Total assets | Net assets | Equity capital ratio | Net assets per share | |||||||||||||
¥ millions | ¥ millions | % | ¥ | |||||||||||||
As of January 31, 2024 | 3,352,798 | 1,794,052 | 52.3 | 2,707.90 | ||||||||||||
As of January 31, 2023 | 3,007,537 | 1,667,546 | 54.3 | 2,466.04 | ||||||||||||
(Reference) Equity capital* | As of January 31, 2024: ¥1,754,585 million As of January 31, 2023: ¥1,632,830 million | |||||||||||||||
(3)Consolidated Cash Flows | ||||||||||||||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |||||||||||||
equivalents as of end of | ||||||||||||||||
operating activities | investing activities | financing activities | ||||||||||||||
period | ||||||||||||||||
¥ millions | ¥ millions | ¥ millions | ¥ millions | |||||||||||||
Year ended January 31, 2024 | 15,683 | (69,124) | 6,483 | 292,901 | ||||||||||||
Year ended January 31, 2023 | 125,464 | (165,409) | (155,780) | 332,747 | ||||||||||||
2. Cash Dividends | ||||||||||||||||
Dividends per share (¥) | Total | Dividend | Dividends | |||||||||||||
dividends | ||||||||||||||||
payout ratio | to net assets | |||||||||||||||
1st quarter | 2nd quarter | 3rd quarter | Year-end | Annual | (annual) | |||||||||||
(Consolidated) | (Consolidated) | |||||||||||||||
(¥ millions) | ||||||||||||||||
Year ended January 31, 2023 | - | 52.00 | - | 58.00 | 110.00 | 73,091 | 39.8 | 4.7 | ||||||||
Year ended January 31, 2024 | - | 59.00 | - | 64.00 | 123.00 | 79,931 | 39.8 | 4.8 | ||||||||
Year ending January 31, | - | 62.00 | - | 63.00 | 125.00 | 39.9 | ||||||||||
2025 (Forecast) | ||||||||||||||||
3. Consolidated Results Forecast for FY2024 (February 1, 2024 through January 31, 2025)
(% figures represent changes from the same period of the previous year.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit | |||||
owners of parent | per share | ||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ | |
Year ending January 31, | 3,342,000 | 7.6 | 280,000 | 3.3 | 262,000 | (2.3) | 203,000 | 0.3 | 313.30 |
2025 | |||||||||
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
* Notes
(1)Changes in significant subsidiaries during the period (changes in specific subsidiaries that caused a change in scope of consolidation): Applicable
New Consolidated Companies: －
Excluded: 1 company Sekisui House No.1 (Shenyang) Co., Ltd.
(2)Changes in accounting policies, accounting estimates and restatements
- Changes in accounting policies due to amendment of accounting standards: Applicable
- Changes in accounting policies due other than (i): Not applicable
- Changes in accounting estimates: Not applicable
- Restatements: Not applicable
(3)Number of shares outstanding (common stock) | ||||||||||||||||||
(i) Number of shares outstanding at the end of each period (including treasury stock): | ||||||||||||||||||
As of Jan. 31, 2024: 662,862,666shares | As of Jan. 31, 2023: 684,683,466shares | |||||||||||||||||
(ii) Number of treasury stock at the end of each period: | ||||||||||||||||||
As of Jan. 31, 2024: 14,911,673shares | As of Jan. 31, 2023: 22,557,150shares | |||||||||||||||||
(iii) Average number of shares outstanding in each period: | ||||||||||||||||||
Year ended Jan. 2024: 654,153,670 shares | Year ended Jan. 2023: 667,154,964shares | |||||||||||||||||
(Reference) Summary of non-consolidated financial results | ||||||||||||||||||
Non-Consolidated Results for the FY2023 (February 1, 2023 through January 31, 2024) | ||||||||||||||||||
(1)Non-Consolidated Financial Results | (% figures represent changes from the same period of the previous year.) | |||||||||||||||||
Net sales | Operating profit | Ordinary profit | Net income | |||||||||||||||
¥ millions | % | ¥ millions | % | ¥ millions | % | ¥ millions | % | |||||||||||
Year ended January 31, 2024 | 1,283,433 | 6.6 | 89,777 | 22.9 | 157,460 | 18.6 | 131,332 | 14.0 | ||||||||||
Year ended January 31, 2023 | 1,203,804 | 4.6 | 73,038 | (3.1) | 132,806 | 7.8 | 115,222 | 19.7 | ||||||||||
Net income | Fully diluted Net | |||||||||||||||||
per share | income per share | |||||||||||||||||
¥ | ¥ | |||||||||||||||||
Year ended January 31, 2024 | 200.71 | 200.65 | ||||||||||||||||
Year ended January 31, 2023 | 172.66 | 172.59 | ||||||||||||||||
(2)Non-Consolidated Financial Position | ||||||||||||||||||
Total assets | Net assets | Equity capital ratio | Net assets per share | |||||||||||||||
¥ millions | ¥ millions | % | ¥ | |||||||||||||||
As of January 31, 2024 | 1,557,919 | 938,436 | 60.2 | 1,447.77 | ||||||||||||||
As of January 31, 2023 | 1,496,839 | 920,510 | 61.5 | 1,389.67 | ||||||||||||||
(Reference) Equity capital | As of January 31, 2024: ¥938,335 million | As of January 31, 2023: ¥920,376 million |
- This consolidated financial results repot are outside the scope of review by a certified public accountant or an audit firm.
- Notes Regarding the Appropriate Use of Results Forecasts and Other Important Matters
Descriptions regarding forward-looking statements, etc. contained in these materials are based on information currently available to the Company and certain assumptions judged reasonable. The Company makes no warranty as to the feasibility of its projections. Future results may differ materially from projections due to various factors. For the assumptions underlying the earnings forecast, please see "(1) Information Regarding Consolidated Business Results (Future Outlook)" in "1. Overview of Consolidated Business Results, etc." of the Attached Material on page 7.
(Obtaining supplementary explanatory documents)
The Company plans to hold a briefing for institutional investors and analysts on March 7, 2024. Relevant financial explanatory documents to be handed out at the briefing will be posted on our official website on the same day.
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023 | ||
TABLE OF CONTENTS OF THE ATTACHED MATERIALS | ||
1. Overview of Consolidated Business Results, etc.------------------------------------------------------------------------------------- | 7 | |
(1) | Information Regarding Consolidated Business Results--------------------------------------------------------------------------- | 7 |
(2) | Information Regarding Consolidated Financial Conditions---------------------------------------------------------------------- | 13 |
2. Basic Approach to the Selection of Accounting Standards------------------------------------------------------------------------------ | 13 | |
3. Consolidated Financial Statements ---------------------------------------------------------------------------------------------------------- | 14 | |
(1) | Consolidated Balance Sheets -------------------------------------------------------------------------------------------------------------- | 14 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ---------------------- | 16 |
(Consolidated Statements of Income) ---------------------------------------------------------------------------------------------------- | 16 | |
(Consolidated Statements of Comprehensive Income)------------------------------------------------------------------------------ | 17 | |
(3) | Consolidated Statements of Changes in Net Assets ------------------------------------------------------------------------------- | 18 |
(4) | Consolidated Statements of Cash Flows ------------------------------------------------------------------------------------------------ | 20 |
(5) | Notes to Consolidated Financial Statements------------------------------------------------------------------------------------------ | 22 |
(Notes Regarding Assumption of Going Concerns) --------------------------------------------------------------------------------- | 22 | |
(Changes in accounting policies) --------------------------------------------------------------------------------------------------------- | 22 | |
(Notes to Consolidated Statements of Income) --------------------------------------------------------------------------------------- | 22 | |
(Segment Information)------------------------------------------------------------------------------------------------------------------------ | 23 | |
(Per Share Information) ---------------------------------------------------------------------------------------------------------------------- | 26 | |
(Significant Subsequent Event) ------------------------------------------------------------------------------------------------------------ | 27 |
3
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
Appendix 1: Results summary for the year ended January 31, 2024 | ||||||||||||||
¥ millions | ||||||||||||||
Consolidated | FY2022 | FY2023 | YOY (%) | FY2024 forecast | YOY (%) | |||||||||
Net sales | 2,928,835 | 3,107,242 | 6.1 | 3,342,000 | 7.6 | |||||||||
Gross profit | 584,297 | 623,745 | 6.8 | 661,000 | 6.0 | |||||||||
Operating profit | 261,489 | 270,956 | 3.6 | 280,000 | 3.3 | |||||||||
Ordinary profit | 257,272 | 268,248 | 4.3 | 262,000 | (2.3) | |||||||||
Profit attributable to owners | 184,520 | 202,325 | 9.6 | 203,000 | 0.3 | |||||||||
of parent | ||||||||||||||
Total orders | 2,809,277 | 3,196,437 | 13.8 | 3,370,000 | 5.4 | |||||||||
Total order backlog | 1,447,787 | 1,552,023 | 7.2 | 1,580,023 | 1.8 | |||||||||
Key management indicators | ||||||||||||||
Consolidated | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | ||||||||
forecast | ||||||||||||||
Earnings per share (¥) | 205.79 | 181.18 | 227.37 | 276.58 | 309.29 | 313.30 | ||||||||
Book-value per share (¥) | 1,852.62 | 1,948.12 | 2,184.36 | 2,466.04 | 2,707.90 | 2,816.00 | ||||||||
Dividends per share (¥) | 81.00 | 84.00 | 90.00 | 110.00 | 123.00 | 125.00 | ||||||||
Operating profit margin | 8.50% | 7.62% | 8.89% | 8.93% | 8.72% | 8.4% | ||||||||
ROE | 11.54% | 9.53% | 10.99% | 11.88% | 11.95% | 11.3% | ||||||||
ROA * | 8.78% | 7.30% | 8.60% | 9.08% | 8.74% | 8.2％ | ||||||||
* ROA: Return on Assets = (Operating profit + Interest and Dividends received+ Equity in earnings of affiliates) / Total assets
4
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
Appendix 2: Segment breakdown for the year ended January 31, 2024
<>＞（reference page 23）
Due to a review of reportable segments, the following reportable segments will be changed from the fiscal year ended January 2024. The breakdown by segment for the fiscal year ended January 31, 2023 shows figures after reclassification.
(1) Net Sales | ¥ millions | ||||||||||||
FY2022 | FY2023 | YOY(%) | FY2024 | YOY(%) | |||||||||
Forecast | |||||||||||||
Built-to-order Business | Detached houses | 476,416 | 471,056 | (1.1) | 473,000 | 0.4 | |||||||
Rental housing and | 506,307 | 524,121 | 3.5 | 550,000 | 4.9 | ||||||||
commercial buildings | |||||||||||||
Architectural / | 267,317 | 274,653 | 2.7 | 313,000 | 14.0 | ||||||||
civil engineering | |||||||||||||
Subtotal | 1,250,040 | 1,269,832 | 1.6 | 1,336,000 | 5.2 | ||||||||
Supplied Housing Business | Rental housing management | 617,245 | 646,588 | 4.8 | 672,500 | 4.0 | |||||||
Remodeling | 166,975 | 174,996 | 4.8 | 185,500 | 6.0 | ||||||||
Subtotal | 784,221 | 821,584 | 4.8 | 858,000 | 4.4 | ||||||||
Development Business | Real estate and brokerage | 221,040 | 288,456 | 30.5 | 357,000 | 23.8 | |||||||
Condominiums | 97,110 | 109,450 | 12.7 | 96,500 | (11.8) | ||||||||
Urban redevelopment | 86,130 | 133,073 | 54.5 | 86,000 | (35.4) | ||||||||
Subtotal | 404,281 | 530,980 | 31.3 | 539,500 | 1.6 | ||||||||
Overseas Business | 521,124 | 511,055 | (1.9) | 638,000 | 24.8 | ||||||||
Other Businesses | 9,454 | 13,230 | 39.9 | 13,000 | (1.7) | ||||||||
Eliminations and back office | (40,287) | (39,440) | － | (42,500) | － | ||||||||
Consolidated | 2,928,835 | 3,107,242 | 6.1 | 3,342,000 | 7.6 | ||||||||
(2) Operating profit and Operating profit margin | ¥ millions | ||||||||||||
FY2022 | FY2023 | YOY(%) | FY2024 | YOY(%) | |||||||||
Forecast | |||||||||||||
Detached houses | 41,474 | 41,065 | (1.0) | 42,500 | 3.5 | ||||||||
8.7% | 8.7% | 9.0% | |||||||||||
Built-to-order Business | Rental housing and | 78,016 | 82,000 | 5.1 | |||||||||
74,450 | 4.8 | ||||||||||||
civil engineering | 4.4% | 4.7% | 4.8% | ||||||||||
commercial buildings | 14.7% | 14.9% | 14.9% | ||||||||||
Architectural / | 11,826 | 12,904 | 9.1 | 15,000 | 16.2 | ||||||||
Subtotal | 127,751 | 131,986 | 3.3 | 139,500 | 5.7 | ||||||||
10.2% | 10.4% | 10.4% | |||||||||||
Rental housing management | 47,585 | 50,180 | 5.5 | 53,000 | 5.6 | ||||||||
7.7% | 7.8% | 7.9% | |||||||||||
Supplied Housing Business | |||||||||||||
Remodeling | 22,431 | 23,482 | 4.7 | 25,000 | 6.5 | ||||||||
13.4% | 13.4% | 13.5% | |||||||||||
Subtotal | 70,016 | 73,663 | 5.2 | 78,000 | 5.9 | ||||||||
8.9% | 9.0% | 9.1% | |||||||||||
Real estate and brokerage | 17,531 | 25,857 | 47.5 | 31,000 | 19.9 | ||||||||
7.9% | 9.0% | 8.7% | |||||||||||
Development Business | Condominiums | 17,532 | 11,500 | (34.4) | |||||||||
13,762 | 27.4 | ||||||||||||
14.2% | 16.0% | 11.9% | |||||||||||
Urban redevelopment | 5,130 | 21,430 | 317.7 | 12,500 | (41.7) | ||||||||
6.0% | 16.1% | 14.5% | |||||||||||
Subtotal | 36,424 | 64,821 | 78.0 | 55,000 | (15.2) | ||||||||
9.0% | 12.2% | 10.2% | |||||||||||
Overseas Business | 73,854 | 48,898 | (33.8) | 56,500 | 15.5 | ||||||||
14.2% | 9.6% | 8.9% | |||||||||||
Other Businesses | 1,890 | 2,654 | 40.4 | 2,000 | (24.6) | ||||||||
20.0% | 20.1% | 15.4% | |||||||||||
Eliminations and back office | (48,448) | (51,067) | － | (51,000) | － | ||||||||
Consolidated | 261,489 | 270,956 | 3.6 | 280,000 | 3.3 | ||||||||
8.9% | 8.7% | 8.4% | |||||||||||
5 |
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
(3) Orders | ¥ millions | |||||
FY2022 | FY2023 | YOY(%) | FY2024 | YOY(%) | ||
Forecast | ||||||
Detached houses | 470,227 | 465,691 | (1.0) | 485,000 | 4.1 | |
Built-to-order Business | Rental housing and | 520,570 | 550,222 | 5.7 | 580,000 | 5.4 |
commercial buildings | ||||||
Architectural / | 257,667 | 300,313 | 16.6 | 293,000 | (2.4) | |
civil engineering | ||||||
Subtotal | 1,248,465 | 1,316,227 | 5.4 | 1,358,000 | 3.2 | |
Supplied Housing Business | Rental housing management | 617,245 | 646,588 | 4.8 | 672,500 | 4.0 |
Remodeling | 170,153 | 173,044 | 1.7 | 185,500 | 7.2 | |
Subtotal | 787,399 | 819,632 | 4.1 | 858,000 | 4.7 | |
Real estate and brokerage | 230,218 | 306,875 | 33.3 | 357,000 | 16.3 | |
Development Business | Condominiums | 88,279 | 121,019 | 37.1 | 104,000 | (14.1) |
Urban redevelopment | ||||||
71,330 | 135,623 | 90.1 | 86,000 | (36.6) | ||
Subtotal | 389,829 | 563,518 | 44.6 | 547,000 | (2.9) | |
Overseas Business | 418,510 | 520,047 | 24.3 | 636,000 | 22.3 | |
Other Businesses | 9,518 | 13,193 | 38.6 | 13,000 | (1.5) | |
Eliminations and back office | (44,445) | (36,182) | － | (42,000) | － | |
Consolidated | 2,809,277 | 3,196,437 | 13.8 | 3,370,000 | 5.4 | |
(4) Order backlog | ¥ millions | |||||
As of | As of | YOY(%) | As of | YOY(%) | ||
January 31, 2025 | ||||||
January 31, 2023 | January 31, 2024 | |||||
forecast | ||||||
Detached houses | 235,362 | 229,996 | (2.3) | 241,996 | 5.2 | |
Built-to-order Business | Rental housing and | 490,349 | 516,450 | 5.3 | 546,450 | 5.8 |
commercial buildings | ||||||
Architectural / | 375,637 | 401,297 | 6.8 | 381,297 | (5.0) | |
civil engineering | ||||||
Subtotal | 1,101,349 | 1,147,744 | 4.2 | 1,169,744 | 1.9 | |
Supplied Housing Business | Rental housing management | － | － | － | － | － |
Remodeling | 36,557 | 34,605 | (5.3) | 34,605 | 0.0 | |
Subtotal | 36,557 | 34,605 | (5.3) | 34,605 | 0.0 | |
Real estate and brokerage | 42,400 | 60,819 | 43.4 | 60,819 | 0.0 | |
Development Business | Condominiums | 77,420 | 88,989 | 14.9 | 96,489 | 8.4 |
Urban redevelopment | － | － | ||||
2,550 | 2,550 | 0.0 | ||||
Subtotal | 119,820 | 152,358 | 27.2 | 159,858 | 4.9 | |
Overseas Business | 212,319 | 236,143 | 11.2 | 234,143 | (0.8) | |
Other Businesses | 407 | 579 | 42.4 | 579 | 0.0 | |
Eliminations and back office | (22,666) | (19,408) | － | (18,908) | － | |
Consolidated | 1,447,787 | 1,552,023 | 7.2 | 1,580,023 | 1.8 | |
- Order backlog of the Hubble Group, LLC, which was made a consolidated subsidiary during the consolidated fiscal year under review, and its subsidiaries are included in the results of the Overseas Business.
- Order backlog of AIDA Co., Ltd, which was made a consolidated subsidiary during the consolidated fiscal year under review, and its subsidiaries are included in the results of the Other Business. (Order backlog as of Jan. 31, 2024 and each item as of Jan. 31, 2025 forecast)
6
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
1. Overview of Consolidated Business Results, etc.
- Information Regarding Consolidated Business Results (Overview of Business Results Overall)
The fiscal year under review saw a slowdown of rise in prices, but tight monetary policies in various countries continued due to the impact of global inflation. In addition to geopolitical risks, the impact of trends in price conditions and the international capital market continued to require close observation. Under these circumstances, the United States and some countries have shown an increase in individual consumption and employment, indicating signs of economic recovery.
There is an ongoing weakening of domestic new housing starts, attributable in part to post-COVID-19 changes in consumption behavior and higher construction costs. In the Unites States, new housing starts continue to be in an adjustment phase and the stock of second-hand houses continues to be in decline due to rising long-term interest rates. There is also strong latent demand for housing on the back of chronic shortages of housing supply with respect to the increasing population, leading to signs of recovery following a drop in mortgage rates after peaking in October 2023.
In this business climate, with the aim of achieving the Global Vision for 2050 of making home the happiest place in the world, the Group has actively promoted various high added-value proposals that integrate technologies, lifestyle design and services based on the fundamental policy of stable growth in Japan and proactive growth overseas stipulated in the Sixth Mid-Term Management Plan (fiscal 2023 to 2025).
For the consolidated fiscal year under review, Sekisui House showed net sales of ¥3,107,242 million (up 6.1% year on year), operating profit of ¥270, 956 million (up 3.6% year on year), ordinary profit of ¥268,248 million (up 4.3% year on year), and profit attributable to owners of parent of ¥202,325 million (up 9.6% year on year).
The Company has decided to acquire (hereafter, the "acquisition") all shares of American Homebuilding business operator M.D.C. Holdings, Inc. (head office: Colorado, United States; hereafter, "MDC") via SH Residential Holdings, LLC (hereafter, "SHRH"), a subsidiary of the United States business control company Sekisui House US Holdings, LLC (hereafter, "SHUSH"), and concluded a merger agreement with MDC for this acquisition dated January 18, 2024 (dated January 17, 2024 in Denver, United States). In order to achieve "proactive growth" overseas in line with its Global Vision, this merger agreement will help promote Sekisui House technologies such as providing high added value through housing technologies and lifestyle proposals developed in Japan.
Results and other achievements by business model are outlined below.
Classification of business segments has been changed from this fiscal year, and comparisons and analysis are based on the revised classification from the fiscal year under review.
Built-to-Order Business
Detached houses
During the fiscal year under review, the business showed net sales of ¥ 471,056 million (down 1.1% year on year) and operating profit of ¥ 41,065 million (down 1.0% year on year), soaring material prices continuing from the previous fiscal year.
The business has made efforts in 2nd- and 3rd-range mid- to high-end products, along with 1st range products, in order to deepen pricing range-specific strategies and strengthen our detached house brand. Orders remained strong in the Business, driven by positive reception to high-value-added proposals such as Green First ZERO for net zero energy houses (ZEH), the Family Suite with its large living room, the next-generation indoor environment control system SMART-ECS, and the PLATFORM HOUSE touch smart home service that operates in tandem with home layout.
In addition, "life knit design," a new design proposal system that offers housing design closely aligned with the sensibilities of the residents, was launched in Japan in June, 2023 with the aim of strengthening the attachment to high-quality housing
7
Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
stocks and providing customers houses where happiness grows in an era of 100-year lifespan. To boost interior proposals aimed at having customers gain a sense of attachment as part of these efforts, we acquired all the common stock of order- made wooden furniture manufacturer AIDA Co., Ltd. effective December 2023, which, combined with the buyout of MARUHON INC., an interior design building materials manufacturer, in 2022, boosted our capability for integrated interior design proposals of "space and design," "construction materials" and "furniture." In addition to offering this system nationwide, we have also begun operating our "SI Business,* which is aimed at contributing to the formation of high-quality housing stocks in Japan by broadly disseminating the technology for safe, secure earthquake resistance that Sekisui House has cultivated since its founding. It is the first joint construction business of its kind in the industry, in which Sekisui House Construction undertakes construction of the foundations and structural frames of wooden houses, which are then built by local partner companies, and in which partner companies are also primarily responsible for the exterior and interior design.
*Skeleton and infill: A construction method involving clearly distinct building skeletons (building frames) and infill (interiors, room layouts, etc.)
Rental housing and commercial buildings
During the fiscal year under review, the business showed net sales of ¥ 524,121 million (up 3.5% year on year) and operating profit of ¥ 78,016 million (up 4.8% year on year).
To supply high-value-added properties based on our area-specific strategies and further enhance the Sha Maison brand, the business concentrated on expanding sales of three- and four-story rental houses built using an original Sekisui House construction method, and on the proliferation of Sha Maison ZEH net zero energy rental housing. With photovoltaic panels connected to each residence, Sha Maison ZEH has been well received as a method for selling electricity, appealing to residents' ethical orientation and letting them experience the merits of saving on utility costs. Among orders for rental housing, ZEH housing comprised 76% of the number of orders for rental housing.
In addition to these high added-value proposals, the Company's urban area-focused price leader strategy, which achieves high occupancy and rent rates, has successfully led to ongoing strong orders.
Orders in the corporate real estate (CRE) and public real estate (PRE) businesses remained strong through greater land purchases for increasing income-producing real estate and strengthening proposals for ESG solutions.
Architectural / civil engineering
During the fiscal year under review, the business showed net sales of ¥274,653 million (up 2.7 % year on year), and operating profit of ¥12,904 million (up 9.1 % year on year).
Both architectural and civil engineering businesses had strong orders owing to the increase in profitability from securing additional modification construction in the architectural business, as well as the return of appetite for capital investment in the private sector.
Supplied Housing Business
Rental housing management
During the fiscal year under review, the business showed net sales of ¥646,588 million (up 4.8% year on year), and operating profit of ¥50,180 million (up 5.5% year on year).
The business steadily increased the number of housing units under management through the supply of high-quality, high- performance Sha Maison rental housing built in prime locations. The business maintained high occupancy rates and rent prices, which in turn contributed to higher earnings, by providing excellent services that include the creation of a blockchain- based, one-stopmove-in process for residents, and the strengthening of relations and diverse solutions aimed at maximizing asset value for owners.
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Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
Remodeling
During the fiscal year under review, the business showed net sales of ¥174,996 million (up 4.8% year on year), and operating profit of ¥23,482 million (up 4.7 % year on year), with favorable orders in the previous fiscal year and stable construction progress contributing to increased earnings.
To enhance the asset value of housing stock and extend its life, the business focused on proposal-based remodeling such as remodeling proposals that update how people live and environment-based remodeling with thermal insulation renovation and introduces latest energy-conserving,energy-producing, and energy-storing equipment, etc. In rental housing, the business is also making efforts in remodeling proposals that enhance asset value to maintain high occupancy rates and high rental prices. Under such initiatives, orders remained favorable.
Development Business
Real estate and brokerage
During the fiscal year under review, the business showed net sales of ¥ 288,456 million (up 30.5% year on year), and operating profit of ¥ 25,857 million (up 47.5% year on year), with steady progress in sales of real estate centered on residential land by Sekisui House Real Estate companies contributing to increased earnings.
While focusing on strengthening information routes to increase inquiries from customers, the business also actively purchased prime residential land in line with area-specific marketing and made efforts with activities aimed at customers who are considering purchase beginning with land acquisition, resulting in continued favorable orders.
Condominiums
For the consolidated fiscal year under review, the business showed net sales of ¥109,450 million (up 12.7% year on year), and operating profit of ¥17,532 million (up 27.4% year on year).
The completion of the delivery of Grande Maison Ohori Koen The Tower (Chuo-ku, Fukuoka City) and steady progress with the delivery of Grande Maison Mizonokuchi no Mori (Takatsu-ku, Kawasaki City), among others, contributed to higher income thanks to the as-scheduled progress of deliveries.
The business also carefully selected development sites to further enhance the Grande Maison brand of high-value-added condominiums in commercial districts in Tokyo, Nagoya, Osaka, and Fukuoka, and made all units ZEH for properties sold from 2023 in order to contribute to decarbonization in the household sector. These initiatives were well-received, with sales at Grande Maison Kitahorie Residence (Nishi-ku, Osaka City) and Grande Maison Fukuoka The Central Luxe (Chuo-ku, Fukuoka City) remaining strong.
Urban Redevelopment
During the fiscal year under review, the business showed net sales of ¥133,073 million (up 54.5% year on year), and operating profit of ¥21,430 million (up 317.7% year on year).
Earnings increased due to steady progress in the sales of properties as planned. The occupancy rate of Sekisui House Group properties, such as Prime Maison rental housing, also remained strong. In addition, the operation of owned hotels has shown a recovery trend mainly with urban type hotels.
Overseas Business
During the fiscal year under review, the business showed net sales of ¥511,055 million (down 1.9% year on year), and operating profit of ¥48,898 million (down 33.8% year on year).
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Sekisui House, Ltd. (1928) Consolidated Financial Summary for FY2023
In the United States, the Homebuilding Business and the Master-planned Community Business were affected by a decrease in order backlog associated with the rise in mortgage rates during the previous fiscal year, but orders remained on a recovery trend under strong demand for new high-quality housing. Furthermore, Woodside Homes Company, LLC, a subsidiary in the United States, acquired Hubble Group, LLC, a housing sales company in Idaho, to further expand our housing sales area and extend the outreach of the Sekisui House technologies. To promote the SHAWOOD business, a model building was opened in Sommers Bend (California) in November 2023 and sales was started in January 2024. Number of visitors and orders are showing favorable progress. In the Multifamily Business, delivery of St. Andrews (Los Angeles) and The Society Margo building (San Diego, third building out of a total of four buildings) were completed as planned.
In Australia, although there was a decline in the number of detached houses sold, there was smooth progress in the condominium development business, with the delivery of a portion of the commercial West Village (Brisbane) building property, and of condominiums at Melrose Park (Sydney), in addition to other planned development properties.
In Singapore, the transfer of equity interest in the Waterway Point commercial facility in Punggol was completed.
In China, the transfer of equity interest in the Le Meridien Shenyang Heping hotel was completed in September 2023, and liquidation of Sekisui Housing (Taicang) Co., Ltd. was completed in December of the same year, as part of progress towards the completion of business in China.
Other
During the fiscal year under review, Other Businesses showed net sales of ¥ 13,230 million (up 39.9% year on year), and an operating profit of ¥2,654 million (up 40.4% year on year).
ESG Management
With the aim of becoming a leading company in ESG management, and with "Helping resolve environmental issues through residences," "Making employees' autonomy a growth driver," and "Innovation and communication" set as fundamental policies in the Sixth Mid-Term Management Plan, the Sekisui House Group is advancing its own form of ESG management with participation by all employees.
In terms of the environment, the ratio of ZEH detached houses against total new housing starts in fiscal 2022 hit a new record high of 93%, while also promoting ZEH in housing complexes including Sha Maison rental housing and Grande Maison condominiums. Furthermore, we started a demonstration experiment of first hydrogen housing for housing manufacturers (according to our studies) that generates, stores, and makes use of hydrogen at home with the aim of achieving zero carbon in preparation for its commercialization in the summer of 2025. We have also begun incorporating electric vehicles with zero CO2 emissions into our Group business vehicle fleet in efforts aimed at rapidly achieving a 75% reduction in CO2 emitted by our business activities, which is one of our greenhouse gas reduction targets. To contribute to the preservation of biodiversity through the housing business, the Company strengthened proposals that integrate housing and exteriors in custom detached houses and rental housing. It also further advanced the Gohon no ki landscaping project that proposes tree planting focusing on native tree species with a high affinity with the local climate, birds, butterflies, and other natural features, as well as signed a partnership agreement with Think Nature Inc. to cooperate in achieving net increase in biodiversity and standardization of calculation method through the use of biodiversity big data and AI.
With regard to promoting the active participation of female employees, one of our key management strategies, we continued and promoted the Sekisui House Women's College training for female managerial candidates begun in 2014, alongside the creation of role models for career development (Number of female employees in managerial positions as of the end of January 2024: 336). Regarding our childcare leave program begun in 2018 for male employees with children under the age of three, we continued to maintain 100% utilization of one-month or longer leaves across the Group. We also implemented IKUKYO.PJT, a project in which companies and organizations that agree with the promotion of male childcare leave consider
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Sekisui House Ltd. published this content on 07 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2024 06:05:37 UTC.
