Sekisui House : Second Quarter of FY2023 Financial Results Summary

Second Quarter of FY2023

(February 1, 2023 through July 31, 2023)

1. • Summary of Consolidated Financial Results -
2. Overview
3. Financial Position
4. State of Cash Flows, State of Investment
5. Segment Information

Built-to-Order Business

Supplied Housing Business

Development Business

Overseas Business

〈Reference〉

Full-Year Plan for FY2023

September 7, 2023

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

• The second quarter of the first year of the Sixth Mid-Term Management Plan saw record high net sales. We reached 48% of the plan for annual net sales.
• Despite a year-on-year decrease in profit due mainly to the Overseas business, backed by a balanced business portfolio, we made steady progress toward record-high annual profit.

				(¥ billion)
	FY2022	FY2023	Amount	YOY
	(22/2-22/7)	(23/2-23/7)	changed
Net sales	1,423.6	1,462.4	38.8	2.7%
Gross profit	301.6	293.3	(8.2)	(2.7%)
Gross profit margin	21.2%	20.1%	(1.1p)	－			Main components of non-
							operating income/ expenses
SG&A	155.2	168.4	13.2	8.5%
		・Foreign exchange gains or losses:
Operating profit	146.4	124.9	(21.5)	(14.7%)			¥2.3 billion (down ¥0.0 billion YOY)
		・Interest expenses: ¥5.1 billion (up
Operating profit margin	10.3%	8.5%	(1.8p)	－			¥3.4 billion YOY)
		・Share of profit/ loss of entities
Non-operating income/expenses	1.2	0.3	(0.9)	(73.7%)			accounted for using equity method:
		¥1.9 billion (up ¥3.8 billion YOY)
Ordinary profit	147.6	125.2	(22.4)	(15.2%)
							Main components of
Extraordinary income	8.3	10.7	2.4	29.2%
							extraordinary income
Extraordinary losses	2.7	0.9	(1.8)	(67.6%)			・Gain on sales of shares of
							subsidiaries and associates in
Profit attributable to
104.0	92.4	(11.5)	(11.1%)			Singapore: ¥8.2 billion
owners of parent
EPS (yen)	155.06	140.31			3

1. Overview by Business model

Net sales

1,423.6	1,462.4
		201.7		(39.9)
241.6
		248.5		＋60.7
187.7
	409.4	＋18.6
390.8

	619.0		618.8	(0.2)

FY2022	FY2023
(22/2-22/7)	(23/2-23/7)
■ Built-to-Order Business ■ Supplied Housing Business
■ Development Business	■ Overseas Business

Operating profit

146.4

	124.9
46.1
	12.4		(33.7)
		33.8		＋13.7
20.1
36.1	38.3	＋2.1

	67.0			(1.9)
		65.1

FY2022FY2023

(22/2-22/7)(23/2-23/7)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business ■ Overseas Business

			(¥ billion)
	Orders
1,450.0	1,593.9
	266.1		+15.3
250.7
			＋86.3
	286.7
200.3
		410.1		＋15.6
394.4

619.2

645.7

+26.4

FY2022FY2023

(22/2-22/7)(23/2-23/7)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business ■ Overseas Business

4