FY2023

(February 1, 2023 through January 31, 2024)

- Summary of Consolidated

Financial Results -

  1. Overview
  2. Financial Position
  3. State of Cash Flows, State of Investment
  4. Segment Information

Built-to-Order Business

Supplied Housing Business

Development Business

Overseas Business

5. Full-Year Plan for FY2024

March 7, 2024

Fundamental Policy of the Sixth Mid-Term Management Plan

The Sekisui House Global Vision

M a k e h o m e t h e h a p p i e s t p l a c e i n t h e w o r l d

Propose happiness through the integration of

Become a leading company

Make Sekisui House technologies

technologies, lifestyle design and services

in ESG management

the global de facto standard

✓ Introducing the "life knit design" concept that

✓ Helping solve environmental issues through

✓ Entering the southeastern United States

interweaves lifestyles

residences

✓

Expanding the sale of our SHAWOOD products,

✓ Creating value through data-driven DX

✓ Making employee autonomy a growth driver

which leverages safety, comfort, and design

✓ Offering PLATFORM HOUSE, health services, and

✓ Innovation and communication

✓ Engraining such lifestyle design as our lifestyle proposal

lifestyle services

capabilities, customer engagement, and brands

Stable Growth in Japan and Proactive Growth Overseas

Utilizing Management Resources and Enhancing Value

Human capitalDX and data Products and services Growth investments

Our core competencies

Technical capabilities

Construction capabilities

Customer base

1

Review the composition of segments

  • We introduced management methods for each individual business to further enhance the link between the business strategy and organization. We revised the composition of segments from fiscal 2023.
    This document includes figures for the previous year (fiscal 2022) presented on the basis of the new segments.

Old ( -FY2022)

New (FY2023-)

Overview

Main companies

Built-to-order business

① Buildings

Built-to-order business

Custom detached

Detached houses

Sales of built-to-order and built-for-sale houses (including exteriors)

Sekisui House*

houses

① Sekisui House

Sekisui House noie

Exterior

Rental housing

Rental housing and

Contracting and selling rental housing (Sha Maison) and commercial

Sekisui House*

Exterior

commercial buildings

and office buildings (including exteriors)

(1)

Architectural/civil

Architectural/civil

Design and construction of conventionally built structures

② Konoike Construction Group

Konoike Construction Group

engineering

engineering

Design and construction for civil engineering

Supplied housing business

Supplied housing business

(2)

① Rental housing management

Real estate

Rental housing

Leasing and management operations for rental housing (Sha Maison)

Sekisui House Real Estate Group

management fees

management

Remodeling

Remodeling

Remodeling of housing built by the Company (detached houses and rentals)

Sekisui House Remodeling*

Remodeling of properties in general

Sekisui House Real Estate Group*

Development business

② Brokerage

Development business

(3)

② Land

Houses for sale

Real estate and

Brokerage and sales of land for housing and existing homes

Sekisui House

brokerage

Brokerage and sales of real estate (land, buildings) for profit

Sekisui House Real Estate Group

Sekisui House Real Estate Group

Condominiums

(4)

Condominiums

Development, sales and management of condominiums

Sekisui House

- Affiliate subsidiaries

Urban redevelopment

(4)

Urban redevelopment

Development and management of hotels and other properties, mainly

Sekisui House

in urban areas /Regional Trip Base

- Affiliate subsidiaries

Overseas business

Overseas business

Overseas subsidiaries

(5)

Other businesses

Other businesses

Domestic subsidiaries

* Including Sekisui House Construction companies as a subcontractor

  1. Architectural/civil engineering: ① Changed Sekisui House's built-to-order business to "rental housing and commercial buildings." ② No change of Konoike Construction's built-to-order business from "architectural/civil engineering."
  2. Real estate management fees: ① Changed the rental housing management business to "rental housing management." ②Brokerage business changed to "real estate and brokerage."

(3) Houses for sale:

① Changed the building business to "detached houses." ② Changed the land business to "real estate and brokerage."

  1. Condominiums, Urban redevelopment: ◯ The real estate business handled by the Sekisui House Real Estate Group became "real estate and brokerage."

(5) Other businesses:

◯ Changed exteriors to "detached houses" and "rental housing and commercial buildings" depending on the building applications.

2

1. Overview

  • In the first year of the Sixth Mid-Term Management Plan, net sales exceeded ¥3 trillion, and record high profit was achieved for the 3th consecutive year.
  • Annual dividends increased ¥13 year on year (¥5 higher than planned) to ¥123, achieving an increase in dividends for the 12th consecutive year.

(￥ billion)

FY2022

FY2023

Amount

YOY

(22/2-23/1)

(23/2-24/1)

changed

Net sales

2,928.8

3,107.2

178.4

6.1%

Gross profit

584.2

623.7

39.4

6.8%

Gross profit margin

19.9%

20.1%

0.2p

－

SG&A

322.8

352.7

29.9

9.3%

Operating profit

261.4

270.9

9.4

3.6%

Operating profit margin

8.9%

8.7%

(0.2p)

－

Non-operating income/expenses

(4.2)

(2.7)

1.5

－

Ordinary profit

257.2

268.2

10.9

4.3%

Extraordinary income

17.2

26.6

9.4

54.9%

Extraordinary losses

6.7

5.9

(0.8)

(12.1%)

Profit attributable to

184.5

202.3

17.8

9.6%

owners of parent

EPS (yen)

276.58

309.29

Main components of non- operating income/ expenses

・Foreign exchange gains or losses: ¥4.2 billion (up ¥5.0 billion YOY) ・Interest expenses: ¥12.3 billion (up ¥7.0 billion YOY)

・Share of profit/ loss of entities accounted for using equity method: ¥1.9 billion (up ¥3.9 billion YOY)

Main components of extraordinary income

・Gain on sales of shares of subsidiaries and associates in China (Sale of hotel property): ¥1.7 billion ・Gain on liquidation of subsidiaries and affiliates in China: ¥9.7 billion ・Gain on sales of shares of subsidiaries and associates in Singapore: ¥8.2 billion

Main components of extraordinary losses

・Loss on business liquidation：

¥4.0 billion

3

1. Overview

  • Net sales and all types of profit were higher than the initial plan thanks to the balanced business portfolio.
  • ROE was 0.3 points higher than planned.

Consolidated Results

(￥ billion)

FY2022

FY2023

FY2023

Amount

Change(%)

Results

Initial plan

Results

changed

Net sales

2,928.8

3,080.0

3,107.2

27.2

0.9%

Operating profit

261.4

265.0

270.9

5.9

2.2%

Ordinary profit

257.2

259.0

268.2

9.2

3.6%

Profit attributable to

184.5

193.0

202.3

9.3

4.8%

owners of parent

ROE(%)

11.9%

11.6%

11.9%

0.3p

－

Operating profit of Each Business Model

(￥ billion)

FY2022

FY2023

FY2023

Amount

Change(%)

Results

Initial plan

Results

changed

Built-to-Order Business

127.7

136.0

131.9

(4.0)

(3.0%)

Supplied Housing

70.0

73.0

73.6

0.6

0.9%

Business

Development Business

36.4

57.0

64.8

7.8

13.7%

Overseas Business

73.8

49.0

48.8

(0.1)

(0.2%)

4

1. Overview by Business model

Net sales

2,928.8

3,107.2

511.0

(10.0)

521.1

+126.6

530.9

404.2

821.5

+37.3

784.2

1,250.0

1,269.8

+19.7

FY2022

FY2023

(22/2-23/1)

(23/2-24/1)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business

■ Overseas Business

Operating profit

261.4

270.9

48.8

(24.9)

73.8

64.8

+28.3

36.4

73.6

+3.6

70.0

127.7

131.9

+4.2

FY2022

FY2023

(22/2-23/1)

(23/2-24/1)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business

■ Overseas Business

(¥ billion)

Orders

3,196.4

2,809.2

520.0

+101.5

418.5

+173.6

563.5

389.8

819.6

+32.2

787.3

1,248.4

1,316.2

+67.7

FY2022

FY2023

(22/2-23/1)

(23/2-24/1)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business

■ Overseas Business

5

2. Financial Position

Consolidated Balance Sheet

Assets

3,007.5

2,093.8

913.6

3,352.7

2,496.9

855.8

[Main changes]

＋428.4

Real estate for sale increased. （including the impact of exchange rate fluctuations of ¥71.4 billion）

Liabilities and net assets

(¥ billion)

3,007.5

3,352.7

[Main changes]

1,044.6

1,138.0

＋166.7

Interest-bearing debts

increased

420.7

295.3

（including the impact of

exchange rate fluctuations

of ¥37.2 billion）

1,667.5

1,794.0

FY2022

FY2023

(Jan. 31, 2023)

(Jan. 31, 2024)

■ Total current assets ■ Total non-current assets

FY2022

FY2023

(Jan. 31, 2023)

(Jan. 31, 2024)

■ Total current liabilities ■ Total non-current liabilities ■ Total net assets

Real estate for sale by segment

(¥ billion)

FY2022

FY2023

Amount

(Jan. 31, 2023)

(Jan. 31, 2024)

changed

Real estate for sale *

1,435.4

1,863.9

428.4

Detached houses / Rental

6.6

9.2

2.5

housing and commercial buildings

Real estate and brokerage

239.0

327.4

88.4

Condominiums

203.6

227.8

24.2

Urban redevelopment

30.9

60.4

29.4

Overseas

955.0

1,238.8

283.8

* Total of Buildings for sale, Land for sale in lots and Undeveloped land for sale.

State of Interest-bearing Debts

FY2022

FY2023

Amount

(Jan. 31, 2023)

(Jan. 31, 2024)

changed

Interest-bearing debts (¥ billion)

607.1

774.9

167.7

D/E ratio (times)

0.37

0.44

0.07

Equity capital ratio

54.3%

52.3%

(2.0p)

6

3. State of Cash Flows, State of Investment

State of Cash Flows

(¥ billion)

FY2022

FY2023

Amount

(22/2-23/1)

(23/2-24/1)

changed

Cash flows from operating activities

125.4

15.6

(109.7)

Cash flows from investing activities

(165.4)

(69.1)

96.2

Free cash flow

(39.9)

(53.4)

(13.4)

Cash flows from financing activities

(155.7)

6.4

162.2

Cash and cash equivalents at end of period

332.7

292.9

(39.8)

[Main changes]

•Decrease (increase) in inventories: Previous period ¥(38.4) billion, Current period ¥(217.9) billion

•Increase (decrease) in short-term loans, net: Previous period ¥ 37.3 billion, Current period ¥155.8 billion

State of Investment

(¥ billion)

FY2022

FY2023

Amount

FY2024

(22/2-23/1)

(23/2-24/1)

changed

Full-year plan

Capital expenditures

95.3

86.7

(8.6)

100.0

Depreciation

26.7

27.7

1.0

29.0

7

FY2023
(23/2-24/1)
Gross profit margin
Net sales (¥ billion)

4. Segment Information (Built-to-Order Business)

  • In the detached houses business, we achieved net sales and operating profit similar to the previous year by implementing our three-brand strategy and high-value-added proposals. Gross profit margin also improved.
  • In the rental housing and commercial buildings business, sales and profit increased. Orders were strong, mainly for Sha Maison ZEH and corporate orders for rental buildings.
  • In the architectural/civil engineering business, sales and profit increased. Gross profit margin continued to improve due to better profitability. The environment for orders improved.

FY2022

FY2023

Amount

YOY

FY2022

Change

(22/2-23/1)

(23/2-24/1)

Changed

Detached houses

476.4

471.0

(5.3)

(1.1%)

Rental housing and commercial

506.3

524.1

17.8

3.5%

buildings

Architectural/civil engineering

267.3

274.6

7.3

2.7%

Total

1,250.0

1,269.8

19.7

1.6%

Operating profit (¥ billion)

FY2022

FY2023

Amount

YOY

(22/2-23/1)

(23/2-24/1)

Changed

Detached houses

41.4

41.0

(0.4)

(1.0%)

Rental housing and commercial

74.4

78.0

3.5

4.8%

buildings

Architectural/civil engineering

11.8

12.9

1.0

9.1%

Total

127.7

131.9

4.2

3.3%

(22/2-23/1)

22.8% 23.3% 0.5p

24.4% 24.1% (0.3p)

10.0% 10.4% 0.4p

20.7% 20.8% 0.1p

Operating profit margin

FY2022

FY2023

Change

(22/2-23/1)

(23/2-24/1)

8.7%

8.7%

0.0p

14.7%

14.9%

0.2p

4.4%

4.7%

0.3p

10.2%

10.4%

0.2p

  • Main businesses comprising each segment (the underlined businesses were incorporated after the revision to segment composition)

Detached houses

Sales of built-to-orderandbuilt-for-salehouses (includingexteriors)

[Main companies: Sekisui House, Sekisui House noie]

Rental housing and commercial buildings

Contracting and selling rental housing (Sha Maison) and commercial and office buildings(IncludingRC contracted by Sekisui House) (includingexteriors)

[Main companies: Sekisui House]

8

Architectural/civilengineering

Design and constructionof conventionallybuiltstructures, Design and constructionfor civil engineering

[Main companies: KonoikeConstruction Group]

4. Segment Information (Built-to-Order Business)

Orders (¥ billion)

FY2022

FY2023

Amount

YOY

(22/2-23/1)

(23/2-24/1)

changed

Detached houses

470.2

465.6

(4.5)

(1.0%)

Rental housing and commercial

520.5

550.2

29.6

5.7%

buildings

Architectural/civil engineering

257.6

300.3

42.6

16.6%

Total

1,248.4

1,316.2

67.7

5.4%

Order backlog (¥ billion)

FY2022

FY2023

Amount

(Jan. 31, 2023)

(Jan. 31, 2024)

changed

235.3

229.9

(5.3)

490.3

516.4

26.1

375.6

401.2

25.6

1,101.3

1,147.7

46.3

ASP per building (¥ million)

FY2022

FY2023

Amount

(22/2-23/1)

(23/2-24/1)

Changed

Detached houses

46.19

49.55

3.36

(Excluding ready built houses)

Rental housing (Sha Maison)

141.61

165.43

23.82

  • Detached houses

Ratio of Green First ZERO (ZEH): 91% (April through January)

Ratio of three- and four-story housing (in value): 10. 1%

  • Rental housing (Sha Maison) Ratio of Sha Maison ZEH: 76%

Ratio of three- and four-story housing (in value): 90.9%

  • Gross profit margin of Architectural/civil engineering Architectural: 9.2%
    civil engineering: 12.2%

9

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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 06:05:38 UTC.