Sekisui House : Consolidated Financial Results for the Second Quarter FY2023 NEW

Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2023 Second Quarter

Consolidated Financial Statements Summary

for the Second Quarter of FY2023 (February 1, 2023 through July 31, 2023)

(Japanese Standard)

	September 7, 2023
Company name	: Sekisui House, Ltd. (URL https://www.sekisuihouse.co.jp)
Listed exchanges	: Tokyo, Nagoya
Stock code	: 1928
Representative	: Yoshihiro Nakai, Representative Director of the Board, President, Executive Officer,CEO
Inquiries	: Atsushi Yoshida, Executive Officer, Head of Investor Relations Department
	Tel [phone]

Filing date of quarterly securities report

Date of scheduled payment of dividends Quarterly earnings supplementary explanatory documents

Quarterly earnings results briefing

• September 13, 2023
• September 29, 2023
• Yes
• Yes (for institutional investors and analysts, in Japanese)

														(Amounts are rounded down to the nearest million yen.)
1. Consolidated Results for the Six Months Ended July 31, 2023		(February 1, 2023 through July 31, 2023)
	(1)Consolidated Financial Results						(% figures represent changes from the same period of the previous year.)
					Net sales		Operating income	Ordinary income	Profit attributable to
							owners of parent
					¥ million	%		¥ million	%		¥ million	%		¥ million	%
		Six months ended Jul. 31, 2023		1,462,443	2.7		124,918	(14.7)		125,239	(15.2)	92,494	(11.1)
		Six months ended Jul. 31, 2022		1,423,642	16.3		146,428	33.5		147,651	32.6	104,068	43.4
		(Note) Comprehensive income:
		Six months ended Jul. 31, 2023: ¥158,878 million (-17.8%) Six months ended Jul. 31, 2022: ¥193,336 million (66.3%)
					Profit per share		Fully diluted
						profit per share
							¥						¥
		Six months ended Jul. 31, 2023				140.31						140.27
		Six months ended Jul. 31, 2022				155.06						155.00
	(2)Consolidated Financial Position
				Total assets				Net assets			Equity capital ratio
					¥ million				¥ million					%
		As of July 31, 2023		3,276,606		1,760,458			52.6
		As of January 31, 2023		3,007,537		1,667,546			54.3
		(Reference) Equity capital	As of July 31, 2023: ¥1,722,150 million		As of January 31, 2023: ¥1,632,830 million
2. Cash Dividends
										Cash dividends per share
				End of first		End of second		End of third		Year-end		Annual
				quarter			quarter			quarter
				¥				¥						¥			¥			¥
		Year ended Jan. 31, 2023			－				52.00						－			58.00		110.00
		Year ending Jan. 31, 2024			－				59.00
		Year ending Jan. 31, 2024														－			59.00		118.00
		(forecast)
		(Note) Revised dividend forecast for the quarter under review: No

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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2023 Second Quarter

3. Consolidated Results Forecast for FY2023 (February 1, 2023 through January 31, 2024)

(% figures represent changes from the same period of the previous year.)

	Net sales			Operating income	Ordinary income	Profit attributable to	Profit
			owners of parent	per share
	¥ millions	%		¥ millions	%	¥ millions	%	¥ millions	%	¥
Year ending January 31, 2024	3,080,000	5.2		265,000	1.3	259,000	0.7	193,000	4.6	295.05
(Note) Revised forecast for the quarter under review:	No

Notes

(1)Changes in significant subsidiaries (changes in specific subsidiaries that caused a change in scope of consolidation): Not applicable

New Consolidated Companies: -

Excluded: -

1. Application of accounting treatment specific to the preparations for consolidated quarterly financial statements: Not applicable
2. Changes in accounting policies, accounting estimates and restatements

1. Changes in accounting policies due to amendment of accounting standards: Applicable
2. Changes in accounting policies due other than (a): Not applicable
3. Changes in accounting estimates: Not applicable
4. Restatements: Not applicable

(4)Number of shares outstanding (common stock)

(i) Number of shares outstanding at the end of each period (including treasury stock):

As of Jul. 31, 2023:	662,862,666 shares	As of Jan. 31, 2023:	684,683,466 shares
(ii) Number of treasury stock at the end of each period:
As of Jul. 31, 2023:	11,318,304 shares	As of Jan. 31, 2023:	22,557,150 shares

(iii) Average number of shares outstanding in each period (cumulative quarterly consolidated accounting period):

Six months ended Jul. 31, 2023: 659,228,882 shares

Six months ended Jul. 31, 2022: 671,152,160 shares

• This quarterly financial results report is exempt from quarterly review.
• 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 "(3) Information Regarding Consolidated Results Forecast" in "1. Quarterly Qualitative Analysis" of the "Attached Material" on page 9.

(Obtaining supplementary explanatory documents)

The Company plans to hold a briefing for institutional investors and analysts on September 7, 2023. Relevant financial explanatory documents to be handed out at the briefing will be posted on our official website on the same day.

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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2023 Second Quarter

	TABLE OF CONTENTS OF THE ATTACHED MATERIAL
1. Quarterly Qualitative Analysis ---------------------------------------------------------------------------------------------------------------------	6
(1)	Information Regarding Consolidated Business Results ---------------------------------------------------------------------------------	6
(2)	Information Regarding Consolidated Financial Conditions ----------------------------------------------------------------------------	9
(3)	Information Regarding Consolidated Results Forecast ----------------------------------------------------------------------------------	9
2. Consolidated Quarterly Financial Statements and Notes ------------------------------------------------------------------------------------	10
(1)	Consolidated Quarterly Balance Sheet --------------------------------------------------------------------------------------------------------	10
(2)	Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income----	12
	(Consolidated Quarterly Statement of Income)
	For the six months ended July 31, 2022 and 2023-----------------------------------------------------------------------------------------	12
	Consolidated Quarterly Statement of Comprehensive Income
	For the six months ended July 31, 2022 and 2023-----------------------------------------------------------------------------------------	13
(3)	Notes to Consolidated Quarterly Financial Statements-----------------------------------------------------------------------------------	13
	(Notes Regarding Assumption of a Going Concern)-----------------------------------------------------------------------------------------	13
	(Notes on significant changes in the amount of shareholders' equity) ------------------------------------------------------------------	13
	(Changes in accounting policies) --------------------------------------------------------------------------------------------------------------------	13

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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2023 Second Quarter

Appendix: Segment breakdown for the Six Months Ended July 31, 2023
Consolidated
	(1) Net sales				(¥ million)
					Six months ended		Six months ended	YOY (%)
					July 31, 2022		July 31, 2023
	Built-to-order Business	Detached houses	240,858		231,454	(3.9)
	Rental housing and commercial buildings	247,003		263,758	6.8
				Architectural / civil engineering			123,628
				131,227		(5.8)
				Subtotal	619,088		618,841	(0.0)
	Supplied Housing Business	Rental housing management	307,431		321,142	4.5
	Remodeling	83,378		88,293	5.9
				Subtotal	390,810		409,435	4.8
	Development Business	Real estate and brokerage	109,697		130,228	18.7
	Condominiums	54,876		49,972	(8.9)
				Urban redevelopment			68,367
				23,203		194.6
				Subtotal			248,568
				187,777		32.4
	Overseas Business	241,662		201,705	(16.5)
	Other businesses	4,008		6,292	57.0
	Eliminations and back office	(19,705)		(22,400)	－
	Consolidated	1,423,642		1,462,443	2.7
	(2) Operating income and Operating margin				(¥ million)
					Six months ended		Six months ended
					July 31, 2022		July 31, 2023	YOY (%)
					Amount		Amount
					Operating margin		Operating margin
				Detached houses	22,976		18,860	(17.9)
				9.5		8.1
	Built-to-order Business	Rental housing and commercial buildings	37,530		39,541	5.4
	5.0		5.4
					15.2		15.0
				Architectural / civil engineering	6,588		6,706	1.8
				Subtotal	67,094		65,107	(3.0)
				10.8		10.5
				Rental housing management	24,914		26,209	5.2
				8.1		8.2
	Business	Housing	Supplied
	Remodeling	11,267		12,112	7.5
				13.5		13.7
				Subtotal	36,181		38,322	5.9
				9.3		9.4
				Real estate and brokerage	9,068		12,499	37.8
				8.3		9.6
	Development Business	Condominiums	10,633		8,363	(21.3)
	2.0		19.0
					19.4		16.7
				Urban redevelopment	472		13,021	－
							33,884	67.9
				Subtotal	20,175
				10.7		13.6
	Overseas Business	46,184		12,476	(73.0)
	19.1		6.2
	Other businesses	820		1,195	45.7
	20.5		19.0
	Eliminations and back office	(24,028)		(26,067)	－
	Consolidated	146,428		124,918	(14.7)
	10.3		8.5
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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2023 Second Quarter

(3) Orders			(¥ million)
			Six months ended	Six months ended	YOY (%)
			July 31, 2022	July 31, 2023
Built-to-	Detached houses	241,071	229,048	(5.0)
Architectural / civil engineering	129,707	144,103	11.1
Business
		Rental housing and commercial buildings	248,514	272,567	9.7
order
Subtotal	619,294	645,719	4.3
Supplied Housing Business	Rental housing management	307,431	321,142	4.5
Remodeling	87,064	88,990	2.2
		Subtotal	394,496	410,132	4.0
Development	Real estate and brokerage	119,781	155,287	29.6
Urban redevelopment	38,103	79,667	109.1
Business
		Condominiums	42,471	51,782	21.9
		Subtotal	200,356	286,737	43.1
Overseas Business	250,784	266,154	6.1
Other businesses	4,008	6,342	58.2
Eliminations and back office	(18,900)	(21,148)	－
Consolidated	1,450,039	1,593,937	9.9
(4) Order backlog			(¥ million)
			As of	As of	YOY (%)
			January 31, 2023	July 31, 2023
Built-to-order Business		Detached houses	235,362	232,956	(1.0)
	Rental housing and commercial buildings	490,349	499,158	1.8
		Architectural / civil engineering
		375,637	396,111	5.5
		Subtotal	1,101,349	1,128,226	2.4
Supplied Housing Business		Rental housing management	－	－	－
	Remodeling	36,557	37,254	1.9
		Subtotal	36,557	37,254	1.9
Development Business		Real estate and brokerage	42,400	67,458	59.1
	Condominiums	77,420	79,230	2.3
		Urban redevelopment	－		－
		11,300
		Subtotal
		119,820	157,989	31.9
Overseas Business	212,319	292,018	37.5
Other businesses	407	457	12.3
Eliminations and back office	(22,666)	(21,415)	－
Consolidated	1,447,787	1,594,530	10.1

• Due to a review of reportable segments, the following reportable segments will be changed from the fiscal year ending January 2024.
• 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.

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