Daiwa House Industry : Nov. 20, 2018 Notice of the Purchase of Treasury Stock through the Off-Auction Own Shares Repurchase Trading System (ToSTNeT-3)

News Release (Translation only)

November 20, 2018

Company:Daiwa House Industry Co., Ltd. (Code number: 1925,Representative: Contact:

First Section of the Tokyo Stock Exchange) Keiichi Yoshii, President and COO

Yuji Yamada, Senior Executive Officer General Manager, IR [e-mail]

Notice of the Purchase of Treasury Stock through the Off-Auction Own Shares Repurchase

Trading System (ToSTNeT-3)

Daiwa House Industry Co., Ltd. hereby announces that we have determined the specific method of acquiring our treasury stock as we announced on November 8, 2018 based on the provisions in Article 156 of the Companies Act applied in place of the provisions in Article 165, Paragraph 3 of that act.

1. Acquisition method

Shares are to be acquired at the closing price (including closing special quote) of 3,464 yen on November 20, 2018. The transaction will be conducted by a consigned agent at 8:45am November 21, 2018 via the Tokyo Stock Exchange off-auction own share repurchase (ToSTNeT-3) system. No changes will be made pertaining to the transaction system or transaction time.

2. Transaction details

(1) Type of shares to be acquired	Common shares of Daiwa House Industry Co., Ltd. stock
(2) Total number of shares to be acquired	2,300,000 shares (maximum) (Representing 0.35% of total shares outstanding (excluding treasury stock))
(3) Total acquisition price	10,005 million yen (maximum)
(4) Announcement of results	Announcement of acquisition results to be announced subsequent to the 8:45am transaction.

(Note 1) No changes will be made to the number of shares to be acquired. Further, this transaction may be canceled in part or in whole due to market conditions or other factors.

(Note 2) Shares will be purchased upon receipt of a sell order corresponding to the number of shares scheduled for purchase.

End

(Reference) Details of resolution concerning acquisition of treasury stock (announced November 8, 2018)

(1) Type of shares to be acquired	Common shares of Daiwa House Industry Co., Ltd. stock
(2) Total number of shares to be acquired	2,300,000 shares (maximum) (Representing 0.35% of total shares outstanding (excluding treasury stock))
(3) Total acquisition price	10,005 million yen (maximum)
(4) Transaction status	(As of November 20, 2018) ・Total shares acquired 0 shares ・Total acquisition price 0 yen

(Note) The 511,500 shares in the Employee Stock Ownership Plan (E-Ship®) held by the Nomura Trust and Banking Co., Ltd. (Daiwa House Industry Employees Shareholders Association Trust Account) and the 112,968 shares in the Directors Stock Delivery Trust held by the Japan Trustee Services Bank, Ltd. (trust account) are not included in the above treasury stock number.

Disclaimer:

This English translation has been prepared for general reference purposes only. The Company shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese text of the press release dated November 20, 2018.

2