Sekisui House : has Expanded to Oregon and Washington; Holt Homes Becoming a Wholly Owned Subsidiary of Sekisui House US Holdings NEW

January 20, 2022

Sekisui House, Ltd.

The Sekisui House Group has Expanded to Oregon and Washington;

Holt Homes Becoming a Wholly Owned Subsidiary of Sekisui House US Holdings

－Promoting the Realization of Safety, Peace of Mind, and Comfort,

Sekisui House Transfers Technologies Cultivated in Japan－

Sekisui House US Holdings, LLC, a U.S. subsidiary of Sekisui House, Ltd., acquired the business and related land assets of Holt Homes (collectively. the Holt Homes Group, "Holt"), which sells custom detached houses in the suburbs of Portland, Oregon, making it a wholly owned subsidiary. With this transaction, the Sekisui House Group has expanded its homebuilding business area from the current four U.S. states to include Oregon and Washington.

Holt is one of the top homebuilders in the Portland, Oregon area, which is one of the nationʼs fastest growing housing markets (the city ranked second in building permits issued in 2021). Holtʼs position as a leading regional residential land developer is backed by its strong vertical business model of building and selling homes on prime residential land that it owns and develops, which has enabled it to capture a solid share of a growing market and achieve both high profitability and customer satisfaction.

Detached Homebuilding Business Expansion Area

Holtʼs Custom Detached House Products

The Sekisui House Group celebrated its 60th anniversary in 2020, and, looking to the next 30 years, we have set a vision of making home the happiest place in the world. To realize this vision, we are promoting the adoption of Sekisui House technologies, such as offering high added value through our housing construction technologies and lifestyle proposals developed in Japan.

In the United States, Sekisui House made Woodside Homes Company, LLC ("Woodside") a wholly owned subsidiary in 2017 and has been developing its homebuilding business in Utah, California, Arizona, and Nevada. Since becoming a wholly owned subsidiary, Woodside has received Sekisui House technologies, and has experienced its significant growth as a customer-centric premium brand.

The Group aims to supply 10,000 houses per year globally in FY2025, and this acquisition has expanded its business to the northwestern part of the West Coast. In addition, Sekisui House technologies will be shared with Holt in order to facilitate a shift from price-based sales to value-based sales and to improve the construction process, thereby providing high added value to customers and enhancing corporate value.

1. Holt Homes Group

Holt is a custom detached home and land development company that owns and operates approximately 4,800 lots in 31 communities, primarily in the Portland area. In 2017, Holt launched its custom detached houses sales business and delivered 84 units in the first year. The number of units delivered in 2021 will be approximately 700, which is a significant increase. In the Portland area, where the development approval process is strict, affecting competitors in their supply of residential land, Holt has a competitive advantage in terms of the number of residential land lots it owns as well as its profitability. Given the rising cost of living in the San Francisco Bay Area, the Portland area is attracting a growing number of large corporations and high- tech start-up companies, and demand for housing is expected to grow.

2. Company Profile

• Holt Homes Group Profile

Name	Holt Homes Group
Head Office	Vancouver, Washington
President	Greg Kubicek (Holt CEO)
Business Activities	Sale of detached houses; development and sale of residential land
Establishment	2017
Personnel	116 employees
Total Assets	US$426 million
Net Assets	US$234 million
	FY12/2020 (Holt results*)	FY12/2021 (Holt plan*)
Net Sales	US$252 million	US$362 million
Operating Income	US$23 million	US$45 million
Cumulative Number of	450 houses	695 houses
Houses Built

• Figures for 2021 and beyond are estimates at the time of acquisition and have not yet been officially confirmed.

3. Impact on Business Performance

Holtʼs inclusion as a consolidated subsidiary of Sekisui House from the current fiscal year (ending January 31, 2022) will exert minimal impact on Sekisui Houseʼs consolidated financial results. Business plans for the next fiscal year (ending January 31, 2023) will be announced in early March.

Inquiries:	Sekisui House, Ltd. Public Relations Office.
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