Hoosiers : Medium-Term Management Plan for FY3/22 to FY3/26

May 2021

Hoosiers Holdings (3284)

Medium-Term Management Plan

for FY3/22 to FY3/26

Table of contents

1. Introduction

1-1. Review of the previous Medium-Term Management Plan

1-2. Business environment

2. Overview of the new Medium-Term Management Plan

2-1. Policies on the new Medium-Term Management Plan

2-2. Integration of business strategy and ESG strategy

2-3. Numerical targets

2-4. Shareholder distributions policy

3. Business portfolio and our strengths3-1. Business portfolio

3-2. Our strengths

3-3. Sustainability of housing demand in regional cities

3-4. Trend of urban redevelopment projects in regional cities

4. Business strategy by segment

4-1. Real Estate Development

(Condominium Apartments and

Houses)

4-2. CCRC

4-3. Real Estate Development + CCRC

4-4. Real Estate Investment

4-5. Property Management and Related Services

4-6. Other businesses (PFI)

5. Sustainability Initiatives

5-1. Promote ESG management

5-2. Specific ESG activities

6. Supplementary material

2

1. Introduction

3

1-1. Review of the previous Medium-Term Management Plan

Robust net sales and ordinary income due to strong sales of Condominium apartments in regional cities contributed to a record high profit in FY3/19.

Steady growth in demand for house to live was reaffirmed although we could not achieve the target due to an increase in fixed costs associated with business diversification and the spread of COVID-19.Strategy focusing on "region, seniors and the wealthy" showed successful results.

Net Sales				Ordinary Income/Profit attributable to owners of parent

（Unit: 100 million yen）

（Unit: 100 million yen）

				1,100	1,150										140
														115
			880
					1,000								80
											60
		600		850						50			100
										85
		500	700										8470
	400	359				64						69	55 2.7
369	898	852					53			46
	802	38	44	30	28	33	45	31	28
		633							18
		527
						14.3	15.3	16.3	17.3	18.3	19.3	20.3	21.3

14.3	15.3	16.3	17.3	18.3	19.3	20.3	21.3
				Actual results		Initial targets
				Revised targets

Ordinary Income

Profit attributable to owners of parent

Initial targets

Revised targets (ordinary income)

・Number of condominium apartments supplied in regional cities increased to approximately 2,500 units during FY3/17 to FY3/21, contributing to a significant growth of net sales and profits

・Total number of condominium apartments for seniors supplied exceeded 2,000 units in FY3/21, becoming the top in the market. Plan to exceed 3,000 units by FY3/26.

・Our unique market approach let to a successful differentiation strategy in area, targets, and manufacturing

	*Profit represents profit attributable to owners of parent.	4

1-1. Review of the previous Medium-Term Management Plan

ROE decreased due to capital increase associated with business diversification and failure to achieve target and impairment loss arising from withdrawal in new businesses.

Our challenge is to secure stable earnings under right-sized level of capital.

Optimization of the capital level has been completed through measures such as capital restructuring (large scale purchase of own shares) at the end of FY3/2021.

ROE				Total distributions ratio

*ROE = Profit attributable to owners of parent ÷ Shareholders' equity (average during the period) × 100

¥40						¥35			1500%
¥30					¥25
¥24	¥24			¥24		1000%
						720%
¥20								548%
										500%
¥10
29%	26%	68%
¥0										0%
17.3	18.3	19.3	20.3	21.3
			Dividends per share		Total return ratio

*Total distributions ratio ＝ (Total dividends ＋Total amount of own shares purchased) ÷ Profit attributable to owners of parent × 100

5