Sekisui House : Consolidated Financial Results for the Third Quarter FY2022

Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2022 Third Quarter

Consolidated Financial Statements Summary

for the Third Quarter of FY2022 (February 1, 2022 through October 31, 2022)

(Japanese Standard)

	December 8, 2022
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
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

• December 14, 2022
• -
• Yes
• Yes (for institutional investors and analysts, in Japanese)

(Amounts are rounded down to the nearest million yen.)

1.		Consolidated Results for the Nine Months Ended October 31, 2022	(February 1, 2022 through October 31, 2022)
		(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	%
		Nine months ended Oct. 31, 2022		2,130,078	15.5	202,499	20.4		202,628	20.1	149,815	29.3
		Nine months ended Oct. 31, 2021		1,844,812	4.3	168,225	24.8		168,649	28.1	115,895	30.3
		(Note) Comprehensive income:
		Nine months ended Oct. 31, 2022: ¥258,272 million (63.4%)	Nine months ended Oct. 31, 2021: ¥158,046 million (96.7%)
					Profit per share	Fully diluted
					profit per share
							¥				¥
		Nine months ended Oct. 31, 2022				224.05				223.97
		Nine months ended Oct. 31, 2021				171.06				170.97
		(2)Consolidated Financial Position
				Total assets			Net assets		Equity capital ratio
					¥ million			¥ million			%
		As of October 31, 2022		3,078,886		1,681,292			52.9
		As of January 31, 2022		2,801,189		1,520,959			52.6
		(Reference) Equity capital	As of October 31, 2022: ¥1,627,786 million	As of January 31, 2022: ¥1,473,940
		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, 2022		-				43.00						-			47.00			90.00
		Year ending Jan. 31, 2023		-				52.00						-
		Year ending Jan. 31, 2023																52.00		104.00
		(forecast)
		(Note) Revised dividend forecast for the quarter under review: None
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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2022 Third Quarter

3. Consolidated Results Forecast for FY2022 (February 1, 2022 through January 31, 2023)

(% 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, 2023	2,930,000	13.1		260,000	13.0	260,000	13.0	174,000	13.1	260.83
(Note) Revised forecast for the quarter under review:	None

Notes

(1)Changes in significant subsidiaries (changes in specific subsidiaries that caused a change in scope of consolidation): Applicable New Consolidated Companies: 1 company Chesmar Holdings, LLC

Excluded: 2 company Sekisui House･Changcheng (Suzhou) Real Estate Development Co., Ltd. Sekisui House (Wuxi) Co., Ltd.

(2)Application of accounting treatment specific to the preparations for consolidated quarterly financial statements: Not applicable

(3)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 Oct. 31, 2022:	684,683,466 shares	As of Jan. 31, 2022:	684,683,466 shares
(ii) Number of treasury stock at the end of each period:
As of Oct. 31, 2022:	22,581,546 shares	As of Jan. 31, 2022:	9,913,593 shares

(iii) Average number of shares outstanding in each period (cumulative quarterly consolidated accounting period): Nine months ended Oct. 31, 2022: 668,668,080 shares Nine months ended Oct. 31, 2021: 677,521,037 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. Qualitative 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 December 8, 2022. 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 FY2022 Third 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 nine months ended October 31, 2021 and 2022 ----------------------------------------------------------------------------------	12
	Consolidated Quarterly Statement of Comprehensive Income
	For the nine months ended October 31, 2021 and 2022 ---------------------------------------------------------------------------------	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 FY2022 Third Quarter

Appendix: Segment breakdown for the Nine Months Ended October 31, 2022

Consolidated
	(1) Net sales			(¥ million)
			Nine months	Nine months
			ended	ended	YOY(%)
			October 31, 2021	October 31, 2022
	Built	Custom detached houses	254,871	259,824	1.9
	Rental housing	276,458	314,690	13.8
	to-
	Architectural/Civil engineering	194,283	218,215	12.3
	Business
	-
	order
	Subtotal	725,613	792,729	9.2
	Supplied Housing Business	Remodeling	111,354	118,240	6.2
	Real estate management fees	437,835	463,254	5.8
		Subtotal	549,190	581,494	5.9
	Development	Houses for sale	134,884	172,551	27.9
	Business	Condominiums	51,326	57,195	11.4
	Urban redevelopment	87,275	118,217	35.5
		Subtotal	273,487	347,964	27.2
	Overseas Business	242,999	350,472	44.2
	Other businesses	53,522	57,416	7.3
	Consolidated	1,844,812	2,130,078	15.5

(2) Operating income and Operating margin

(¥ million)

	Custom detached houses
Built	Rental housing
to-
-
order
Business	Architectural/Civil engineering
	Subtotal
Supplied Housing Business	Remodeling
Real estate management fees
	Subtotal
Development	Houses for sale
Condominiums
Business
Urban redevelopment
	Subtotal

Overseas Business

Other businesses

Eliminations and back office

Consolidated

Nine months	Nine months
ended	ended

October 31, 2021 October 31, 2022

Amount Amount

Operating margin Operating margin

30,696 27,788

12.0% 10.7%

39,505 43,246

14.3% 13.7%

13,350 9,715

6.9% 4.5%

83,552 80,750

11.5% 10.2%

17,458 18,917

15.7% 16.0%

39,284 38,512

9.0% 8.3%

56,742 57,430

10.3% 9.9%

10,639 15,392

7.9% 8.9%

7,275 10,004

14.2% 17.5%

10,976 14,759

12.6% 12.5%

28,891 40,156

10.6% 11.5%

34,026 61,156

14.0% 17.4%

(1,235) (601)

(2.3%) (1.0%)

(33,752) (36,392)

168,225 202,499

9.1% 9.5%

YOY(%)

(9.5)

9.5

(27.2)

(3.4)

8.4

(2.0)

1.2

44.7

37.5

34.5

39.0

79.7

-

-

20.4

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Sekisui House, Ltd. (1928) Consolidated Financial Statements Summary for FY2022 Third Quarter

(3) Orders			(¥ million)
		Nine months	Nine months
		ended	ended	YOY(%)
		October 31, 2021	October 31, 2022
Built	Custom detached houses	270,246	256,403	(5.1)
Rental housing	287,909	322,269	11.9
Business
Architectural/Civil engineering	235,755	207,904	(11.8)
to-
-
order
Subtotal	793,911	786,577	(0.9)
Supplied Housing Business	Remodeling	120,548	127,455	5.7
Real estate management fees	437,835	463,254	5.8
	Subtotal	558,384	590,709	5.8
Development	Houses for sale	155,141	190,063	22.5
Business	Condominiums	60,950	62,698	2.9
Urban redevelopment	79,249	94,414	19.1
	Subtotal	295,341	347,176	17.6
Overseas Business	273,210	374,467	37.1
Other businesses	57,710	58,433	1.3
Consolidated	1,978,557	2,157,365	9.0
(4) Order backlog			(¥ million)
		As of	As of	YOY (%)
		January 31, 2022	October 31, 2022
Built	Custom detached houses	183,865	180,445	(1.9)
Rental housing	378,890	386,469	2.0
Business
Architectural/Civil engineering	434,107	423,796	(2.4)
to-
-
order
Subtotal	996,863	990,711	(0.6)
Supplied Housing Business	Remodeling	33,380	42,595	27.6
Real estate management fees	-	-	-
	Subtotal	33,380	42,595	27.6
Development	Houses for sale	58,114	75,626	30.1
Business	Condominiums	84,991	90,495	6.5
Urban redevelopment
25,057	1,253	(95.0)
	Subtotal	168,163	167,374	(0.5)
Overseas Business	260,455	338,927	30.1
Other businesses	53,710	54,727	1.9
Consolidated	1,512,572	1,594,336	5.4

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