Sekisui House : Company Presentation for FY2024

Sekisui House Group

Company Presentation for FY2024

March 8, 2024

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
Slide 1

Progress in Sixth Mid-Term Management Plan

Slide 2

Progress in Sixth Mid-Term Management Plan (1)

Net sales and operating profit in fiscal 2023, the first year of the Sixth Mid-Term Management Plan, exceeded plans and reached record

highs. We plan to also achieve record high net sales and operating profit in fiscal 2024.

500.0

4,000.0
■ Net Sales	■ Operating profit												3,342.0	3,676.0	450.0
(Billions of yen)
3,500.0																		400.0
														3,080.0 3,107.2
＊	Plan: Planned values at the time of formulating Sixth Mid-Term Management Plan (announced in March 2023)			2,928.8
3,000.0
																350.0
2,500.0										2,415.1	2,446.9 2,589.5					318.0	300.0
						2,026.9 2,159.3 2,160.3
2,000.0				1,805.1 1,912.7	1,858.8				261.4	265.0	270.9	280.0		250.0
	1,488.3 1,530.5	1,613.8									230.1						200.0
								205.2
1,500.0							184.1	195.5	189.2	186.5
															150.0
1,000.0				131.9	146.5	149.6
																	100.0
500.0		70.8	86.1															50.0
	56.3
0.0																		0.0
	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2023	2024	2025
														(Plan)		(Initial Plan)	(Plan)

1st Plan	2nd Plan
Establishment	Acceleration of Profit
of lean	growth through
earnings base	business expansion

3rd Plan	4th Plan	5th Plan	6th Plan
Strengthening the synergies in the	Building the foundation for the	Further strengthening core	Stable Growth in Japan and
Group and taking on new challenges	residential‐related business	businesses and
Proactive Growth Overseas
in the residential‐related business	toward BEYOND 2020	embarking on new businesses

Slide 3

Progress in Sixth Mid-Term Management Plan (2)

• Announced in March 2023 - Sixth Mid-Term Management Plan

		FY2023	FY2024	FY2025		Total in three years
Net Sales	(Billions of yen)	3,080.0	3,270.0	3,676.0		10,026.0
Operating profit	(Billions of yen)	265.0	275.0	318.0		858.0
Ordinary profit	(Billions of yen)	259.0	269.0	311.0		839.0
Profit attributable to	(Billions of yen)	193.0	196.0	214.0		603.0
owners of parent
EPS	(yen)	295.05	303.35	331.20		-
ROE		11.6%	Stably creating 11% or more

• Announced in March 2024

		FY2023 Results	FY2024 Initial Plan
Net Sales	(Billions of yen)	3,107.2	3,342.0
Operating profit	(Billions of yen)	270.9	280.0
Ordinary profit	(Billions of yen)	268.2	262.0
Profit attributable to	(Billions of yen)	202.3	203.0
owners of parent
EPS	(yen)	309.29	313.30
ROE		11.9%	11.3%

• Regarding the Initial plan for fiscal 2024, because the acquisition of M.D.C. Holdings, Inc. ("MDC") is not yet complete, we have not reflected the impact of the acquisition in the initial plan.
• Once the acquisition of MDC is complete, we will carefully analyze the impact on consolidated results and announce revisions to the initial plan for fiscal 2024.

Slide 4

FY2023 Results by Segment (YoY, Compared to plan)

			FY2022 Results			FY2023 Results				YoY
		Net sales	Operating	Operating	Orders	Order	Net sales	Operating	Operating	Orders	Order	Net sales	Operating	Operating	Orders	Order
		profit	profit	backlog	profit	profit	backlog	profit	profit	backlog
			margin			margin			margin
Built-to-Order Business	Detached houses	476.4	41.4	8.7%	470.2	235.3	471.0	41.0	8.7%	465.6	229.9	(5.3)	(0.4)	0.0p	(4.5)	(5.3)
Rental housing and	506.3	74.4	14.7%	520.5	490.3	524.1	78.0	14.9%	550.2	516.4	17.8	3.5	0.2p	29.6	26.1
	commercial buildings
	Architectural/	267.3	11.8	4.4%	257.6	375.6	274.6	12.9	4.7%	300.3	401.2	7.3	1.0	0.3p	42.6	25.6
	civil engineering
	Subtotal	1,250.0	127.7	10.2%	1,248.4	1,101.3	1,269.8	131.9	10.4%	1,316.2	1,147.7	19.7	4.2	0.2p	67.7	46.3
SuppliedHousing Business	Rental housing	617.2	47.5	7.7%	617.2	-	646.5	50.1	7.8%	646.5	-	29.3	2.5	0.1p	29.3	-
management
	Remodeling	166.9	22.4	13.4%	170.1	36.5	174.9	23.4	13.4%	173.0	34.6	8.0	1.0	0.0p	2.8	(1.9)
	Subtotal	784.2	70.0	8.9%	787.3	36.5	821.5	73.6	9.0%	819.6	34.6	37.3	3.6	0.1p	32.2	(1.9)
	Real estate and	221.0	17.5	7.9%	230.2	42.4	288.4	25.8	9.0%	306.8	60.8	67.4	8.3	1.1p	76.6	18.4
Development Business	brokerage
Condominiums	97.1	13.7	14.2%	88.2	77.4	109.4	17.5	16.0%	121.0	88.9	12.3	3.7	1.8p	32.7	11.5
	Urban	86.1	5.1	6.0%	71.3	-	133.0	21.4	16.1%	135.6	2.5	46.9	16.3	10.1p	64.2	2.5
	redevelopment
	Subtotal	404.2	36.4	9.0%	389.8	119.8	530.9	64.8	12.2%	563.5	152.3	126.6	28.3	3.2p	173.6	32.5
Overseas Business	521.1	73.8	14.2%	418.5	212.3	511.0	48.8	9.6%	520.0	236.1	(10.0)	(24.9)	(4.6)p	101.5	23.8
Other Businesses	9.4	1.8	20.0%	9.5	0.4	13.2	2.6	20.1%	13.1	0.5	3.7	0.7	0.1p	3.6	0.1
Eliminations and	(40.2)	(48.4)	-	(44.4)	(22.6)	(39.4)	(51.0)	-	(36.1)	(19.4)	0.8	(2.6)	-	8.2	3.2
back office
	Total	2,928.8	261.4	8.9%	2,809.2	1,447.7	3,107.2	270.9	8.7%	3,196.4	1,552.0	178.4	9.4	(0.2)p	387.1	104.2

(Billions of yen)

Compared to plan

	Operating	Operating
Net sales	profit
	profit	margin
(10.9)	(2.9)	(0.4)p
(10.8)	(3.9)	(0.4)p
1.6	2.9	1.0p
(20.1)	(4.0)	(0.1)p
8.5	1.1	0.1p
(4.0)	(0.5)	0.0p
4.5	0.6	0.1p
9.4	2.8	0.8p
(0.5)	1.5	1.5p
9.0	3.4	1.6p
17.9	7.8	1.1p
28.5	(0.1)	(0.6)p
2.2	1.6	11.0p
(5.9)	(0.0)	-
27.2	5.9	0.1p

Slide 5

FY2024 Earnings Plan by Segment

				Net sales		Operating Profit
			FY2023	FY2024		FY2023	FY2024
			Results	Plan		YoY	Results	Plan	YoY
	Built-to-Order Business	Detached houses	471.0	473.0		1.9	41.0	42.5		1.4
Rental housing and	524.1	550.0		25.8	78.0	82.0		3.9
		commercial buildings
		Architectural/	274.6	313.0		38.3	12.9	15.0		2.0
		civil engineering
		Subtotal	1,269.8	1,336.0		66.1	131.9	139.5		7.5
	SuppliedHousing Business	Rental housing	646.5	672.5		25.9	50.1	53.0		2.8
	management
		Remodeling	174.9	185.5		10.5	23.4	25.0		1.5
		Subtotal	821.5	858.0		36.4	73.6	78.0		4.3
		Real estate and	288.4	357.0		68.5	25.8	31.0		5.1
	Development Business	brokerage
Condominiums	109.4	96.5		(12.9)	17.5	11.5		(6.0)
		Urban	133.0	86.0		(47.0)	21.4	12.5		(8.9)
		redevelopment
		Subtotal	530.9	539.5		8.5	64.8	55.0		(9.8)
	Overseas Business	511.0	638.0		126.9	48.8	56.5		7.6
	Other Businesses	13.2	13.0		(0.2)	2.6	2.0		(0.6)
	Eliminations and	(39.4)	(42.5)		(3.0)	(51.0)	(51.0)		0.0
	back office
		Total	3,107.2	3,342.0		234.7	270.9	280.0		9.0

Operating Profit margin

FY2023	FY2024
Results	Plan		YoY
8.7%	9.0%		0.3p
14.9%	14.9%		0.0p
4.7%	4.8%		0.1p
10.4%	10.4%		0.0p
7.8%	7.9%		0.1p
13.4%	13.5%		0.1p
9.0%	9.1%		0.1p
9.0%	8.7%		(0.3)p
16.0%	11.9%		(4.1)p
16.1%	14.5%		(1.6)p
12.2%	10.2%		(2.0)p
9.6%	8.9%		(0.7)p
20.1%	15.4%		(4.7)p
-	-		-
8.7%	8.4%		(0.3)p

Orders

FY2023	FY2024
Results	Plan		YoY
465.6	485.0		19.3
550.2	580.0		29.7
300.3	293.0		(7.3)
1,316.2	1,358.0		41.7
646.5	672.5		25.9
173.0	185.5		12.4
819.6	858.0		38.3
306.8	357.0		50.1
121.0	104.0		(17.0)
135.6	86.0		(49.6)
563.5	547.0		(16.5)
520.0	636.0		115.9
13.1	13.0		(0.1)
(36.1)	(42.0)		(5.8)
3,196.4	3,370.0		173.5

(Billions of yen)

FY2024 Plan

(announced in MMP)

	Operating	Operating
Net sales	profit
	profit	margin
487.0	47.0	9.7%
558.0	86.0	15.4%
291.0	13.5	4.6%
1,336.0	146.5	11.0%
657.0	51.0	7.8%
188.0	27.0	14.4%
845.0	78.0	9.2%
296.0	25.5	8.6%
95.0	11.0	11.6%
96.0	8.0	8.3%
487.0	44.5	9.1%
630.6	54.7	8.7%
12.0	1.0	8.3%
(40.6)	(49.7)	-
3,270.0	275.0	8.4%

• MMP: Sixth Mid-Term Management Plan

Slide 6

Progress in Key measures by business

Slide 7

Built-to-Order Business | Detached houses (1)

Amid a weak detached house market, we captured steady demand by successfully enhancing our three-brand strategy and high-value- added proposals. As evidenced by January orders increasing by 10%, orders were on a recovery track from the latter half of the fiscal year, and the order backlog at the end of fiscal 2023 remained at a similar level as the previous year-end.

Key Measures of the Sixth Mid-Term Management Plan

• Enhancing our three-brand strategy
• Promoting CRM strategy
• Integrating our technologies, lifestyle design and services
• Monthly orders

FY2024 Earnings Plan (Figures in parentheses indicate year-on-year of change)

Net sales	Operating profit	Gross profit	Operating profit
margin	margin
¥473.0 bn	¥42.5 bn	23.7%	9.0%
(+0.4%)	(+3.5%)	(+0.4p)	(+0.3p)

		End of each FY Order backlog		Monthly orders（YoY based on preliminary Figures)	FY2024
			Orders plan
FY2022 Orders：¥470.2 bn		FY2023 Orders：¥465.6 bn	¥485.0 bn
			¥235.3 bn	¥229.9 bn

3%	4%	6%										10%
			2%					2%
1%			0%				0%	1%
						-2%
				-1%		As of Jan. 31, 2023	-3%		-3%		-2%	As of Jan. 31, 2024
				-8%		Order backlog	-6%	-5%	Order backlog
		-11%	-10%-9%			-11%			-9%
		-14%

～

Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.	Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan.
FY2022	FY2023

Slide 8

Built-to-Order Business | Detached houses (2)

By continually promoting high-value-added proposals and other measures, we are steadily advancing lifestyle design proposals, including expanding third-range product orders.

■ Unit price per building and floor area per building	(Millions of yen)
135.9㎡	135.0㎡	137.4㎡	136.2㎡

		46.19	49.55
41.38	42.65

2020

2021

2022

2023

• Ratio of detached houses ZHE

120,000	91%	92%	93%	91%	100%
				(FY2023 Target: 90%)	90%
100,000				80%
			76,509 homes	82,223 homes	70%
80,000		69,163 homes
	60,842 homes			60%
				50%
60,000
					40%

40,000

30%

20%

20,000

10%

• Percentage of orders by sales price range (based on the number of buildings)

		FY2021	FY2022	FY2023
1st range	Less than 30.00	9%	5%	3%
million yen
	30.00 million yen	69%	67%	65%
2nd range	-
	50.00 million yen
3rd range	50.00 million	22%	28%	32%
yen or more

• Adoption rate for each proposal

	FY2021	FY2022	FY2023
SMART-ECS	79%	81%	81%
Family Suite	62%	65%	68%
PLATFORM HOUSE-touch	32%	43%	43%

* Presales of PLATFORM HOUSE-touch were launched in some areas from September 2021 and rolled out nationwide in December.

0

0%

2020	2021	2022	2023
Cumulative Sekisui House ZEH homes		Ratio of detached house ZEH

* For figures related to ZEH detached houses, calculations are based on a 12-month period from April of each year through the following March.(Excluding the fiscal 2023 period, which spanned the 10-month period from April 2023 to January 2024.)

Slide 9