Sekisui House : First Quarter of FY2024 Financial Results Summary

First Quarter of FY2024

(February 1, 2024 through April 30, 2024)

1. • Summary of Consolidated Financial Results -
2. Overview
3. Financial Position
4. State of Cash Flows, State of Investment
5. Segment Information

Built-to-Order Business

Supplied Housing Business

Development Business

Overseas Business

5. Full-Year Plan for FY2024

June 6, 2024

Fundamental Policy of the Sixth Mid-Term Management Plan

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

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(￥ billion)

1. Overview

• Sales and profit increased in Japan and overseas, with net sales setting a new record high. Large contributions came from domestic property sales and the U.S. homebuilding business.
• Compared to the full-year plan targets, the Company progressed 23% toward the net sales target and 26% toward the operating profit target.
• The impacts of making MDC Holdings. Inc. (hereinafter, MDC) into a subsidiary will be reflected in the balance sheet of the first quarter. This

will be reflected in the profit and loss statement in the second quarter results.

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	changed
Net sales	708.2	777.0	68.7	9.7%
Gross profit	138.0	161.0	22.9	16.7%
Gross profit margin	19.5%	20.7%	1.2p	－
SG&A	82.3	89.3	7.0	8.5%
Operating profit	55.7	71.7	15.9	28.7%
Operating profit margin	7.9%	9.2%	1.3p	－
Non-operating income/expenses	(2.6)	(0.7)	1.9	－
Ordinary profit	53.0	70.9	17.8	33.7%
Extraordinary income	8.9	0.1	(8.7)	(98.7%)
Extraordinary losses	0.3	0.2	(0.1)	(36.3%)
Profit attributable to	41.9	50.4	8.4	20.3%
owners of parent

Main components of non- operating income/ expenses

・Foreign exchange gains or losses: ¥3.3 billion (up ¥2.6 billion YOY)

・Interest expenses: ¥4.7 billion (up ¥2.2 billion YOY)

Main components of extraordinary income

・Gain on sales of shares of associates in Singapore in the same period previous year: ¥8.2 billion

EPS (yen)	63.33	77.83	2

1. Overview by Business model

Net sales

708.2		777.0
		117.8	+16.0
	101.8
		148.0	+22.8
	125.1
				212.1	+10.9
	201.1
				304.2	+14.7
	289.4
	FY2023		FY2024
(23/2-23/4)		(24/2-24/4)
■ Built-to-Order Business ■ Supplied Housing Business
■ Development Business	■ Overseas Business

Operating profit

71.7

55.7			10.7	+6.4
	4.3
	17.2			23.7	+6.4
	19.3			20.6	+1.2
	27.0				(1.7)
			25.3
	FY2023		FY2024
(23/2-23/4)		(24/2-24/4)
■ Built-to-Order Business ■ Supplied Housing Business
■ Development Business	■ Overseas Business

		(¥ billion)
	Orders
	990.4
	180.8	+70.5
756.2
110.2	199.8	+39.0
160.8	216.1	+10.4
205.6
287.7	398.1	+110.3
FY2023	FY2024
(23/2-23/4)	(24/2-24/4)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business ■ Overseas Business

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2. Financial Position

Consolidated Balance Sheet

Assets

4,463.3

3,352.7

3,393.2

2,496.9

[Main changes]

＋737.6

Real estate for sale increased.

（including the impact of exchange rate fluctuations of ¥73.1 billion）

Of the total amount, the increase from the acquisition of MDC amounts to ¥576.5 billion.

＋178.8

Intangible assets increased.

Liabilities and net assets

4,463.3

3,352.71,955.5

1,138.0

420.7 664.6

1,794.01,843.1

(¥ billion)

[Main changes]

＋1,006.4

Interest-bearing debts increased

（including the impact of exchange rate fluctuations of ¥41.3 billion）

Of the total amount, the increase from the acquisition of MDC amounts to ¥873.5 billion.

855.8	1,070.0
FY2023	FY2024 1Q
(Jan. 31, 2024)	(Apr. 30, 2024)

■ Total current assets ■ Total non-current assets

Of the total amount, the increase from "Goodwill " and "Trademark rights" by the acquisition of MDC amounts to ¥177.5 billion.

FY2023	FY2024 1Q
(Jan. 31, 2024)	(Apr. 30, 2024)

■ Total current liabilities ■ Total non-current liabilities ■ Total net assets

Real estate for sale by segment		(¥ billion)
		FY2023	FY2024 1Q	Amount
		(Jan. 31, 2024)	(Apr. 30, 2024)	changed
	Real estate for sale *	1,863.9	2,601.5	737.6
	Detached houses / Rental	9.2	11.1	1.9
	housing and commercial buildings
	Real estate and brokerage	327.4	374.7	47.2
	Condominiums	227.8	245.7	17.8
	Urban redevelopment	60.4	27.8	(32.5)
	Overseas	1,238.8	1,942.0	703.1

* Total of Buildings for sale, Land for sale in lots and Undeveloped land for sale.

State of Interest-bearing Debts

	FY2023	FY2024	Amount
	(Jan. 31, 2024)	(Apr. 30, 2024)	changed
Interest-bearing debts (¥ billion)	774.9	1,781.4	1,006.4
D/E ratio (times)	0.44	0.99	0.55
Equity capital ratio	52.3%	40.3%	(12.0p)

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3. State of Cash Flows, State of Investment

State of Cash Flows			(¥ billion)
		FY2023	FY2024	Amount
		(23/2-23/4)	(24/2-24/4)	changed
	Cash flows from operating activities	(49.4)	(65.1)	(15.6)
	Cash flows from investing activities	(9.8)	(555.5)	(545.6)
	Free cash flow	(59.3)	(620.6)	(561.2)
	Cash flows from financing activities	28.4	710.5	682.1
	Cash and cash equivalents at end of period	303.0	387.7	84.7

[Main changes]

•Purchase of shares of subsidiaries resulting in change in scope of consolidation: Current period ¥(516.7) billion

•Increase (decrease) in short-term loans, net: Previous period ¥16.0 billion, Current period ¥662.2 billion

State of Investment				(¥ billion)
		FY2023	FY2024	Amount	FY2024
		(23/2-23/4)	(24/2-24/4)	changed	Full-year plan
	Capital expenditures	22.2	33.9	11.6	100.0
	Depreciation	7.1	6.3	(0.7)	29.0

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4. Segment Information (Built-to-Order Business)

• In the detached houses business, sales and profit decreased due to a drop in the order backlog at the end of the previous fiscal year, but orders were strong due to the promotion of high-value-added proposals.
• In the rental housing and commercial buildings business, sales and profit increased. Orders were also strong, mainly for Sha Maison ZEH and corporate orders for rental buildings.
• In the architectural/civil engineering business, progress on large-scale projects contributed to an increase in sales. New order acquisitions were

strong due to an expansion in order channels.	Gross profit margin
Net sales (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	Changed
Detached houses	105.8	100.8	(4.9)	(4.7%)
Rental housing and commercial	125.6	128.6	3.0	2.4%
buildings
Architectural/civil engineering	57.9	74.6	16.6	28.8%
Total	289.4	304.2	14.7	5.1%

Operating profit (¥ billion)

	FY2023	FY2023	Amount	YOY
	(23/2-23/4)	(23/2-24/1)	Changed
Detached houses	6.2	4.6	(1.5)	(25.3%)
Rental housing and commercial	17.8	18.0	0.2	1.5%
buildings
Architectural/civil engineering	3.0	2.6	(0.3)	(12.8%)
Total	27.0	25.3	(1.7)	(6.3%)

FY2023	FY2024	Change
(23/2-23/4)	(24/2-24/4)
22.4%	22.3%	(0.1p)
23.6%	23.8%	0.2p
11.6%	8.8%	(2.8p)
20.8%	19.6%	(1.2p)

Operating profit margin

FY2023	FY2024	Change
(23/2-23/4)	(24/2-24/4)
5.9%	4.6%	(1.3p)
14.2%	14.0%	(0.2p)
5.3%	3.6%	(1.7p)
9.4%	8.3%	(1.1p)

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4. Segment Information (Built-to-Order Business)

Orders (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	changed
Detached houses	112.6	119.1	6.5	5.8%
Rental housing and commercial	122.5	142.3	19.7	16.1%
buildings
Architectural/civil engineering	52.5	136.6	84.0	159.9%
Total	287.7	398.1	110.3	38.3%

Order backlog (¥ billion)

FY2023	FY2024	Amount
(Jan. 31, 2024)	(Apr. 30, 2024)	changed
229.9	248.2	18.2
516.4	530.1	13.6
401.2	463.2	61.9
1,147.7	1,241.6	93.8

	ASP per building (¥ million)
	FY2023	FY2024	Amount
	(23/2-23/4)	(24/2-24/4)	Changed
Detached houses	49.55	52.51	2.96
(Excluding ready built houses)
Rental housing (Sha Maison)	165.43	184.86	19.43

• Detached houses

Ratio of Green First ZERO (ZEH): 92% (April)

Ratio of three- and four-story housing (in value): 7.9%

• Rental housing (Sha Maison) Ratio of Sha Maison ZEH: 81%

Ratio of three- and four-story housing (in value): 90.6%

• Gross profit margin of Architectural/civil engineering Architectural: Previous period 10.3%, Current period 8.6% Civil engineering: Previous period 13.9%, Current period 8.6%

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4. Segment Information (Supplied Housing Business)

• In the rental housing management business, sales and profit increased. Units under management increased and occupancy rates stayed high thanks to the supply of high-qualityresident-first buildings in favorable locations.
• In the remodeling business, sales and profit increased. We continued to promote environment-based and proposal-based remodeling for detached houses as well as renovation proposals to maintain and improve asset value for rental housing.

Net sales (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	changed
Rental housing management	161.2	171.9	10.6	6.6%
Remodeling	39.9	40.1	0.2	0.7%
Total	201.1	212.1	10.9	5.4%

Operating profit (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	changed
Rental housing management	14.6	15.6	1.0	7.4%
Remodeling	4.7	4.9	0.1	4.0%
Total	19.3	20.6	1.2	6.5%

Gross profit margin

FY2023	FY2024	Change
(23/2-23/4)	(24/2-24/4)
15.2%	15.2%	0.0p
24.4%	25.4%	1.0p
17.0%	17.2%	0.2p

Operating profit margin

FY2023	FY2024	Change
(23/2-23/4)	(24/2-24/4)
9.1%	9.1%	0.0p
12.0%	12.4%	0.4p
9.6%	9.7%	0.1p

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4. Segment Information (Supplied Housing Business)

Orders (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-23/4)	(24/2-24/4)	changed
Rental housing management	161.2	171.9	10.6	6.6%
Remodeling	44.3	44.1	(0.1)	(0.4%)
Total	205.6	216.1	10.4	5.1%

Order backlog (¥ billion)

FY2023	FY2024	Amount
(Jan. 31, 2024)	(Apr. 30, 2024)	changed
－	－	－
34.6	38.5	3.9
34.6	38.5	3.9

Rental housing management :

Number of units under management / Occupancy ratio

	FY2023	FY2024	Change
	(Jan. 31, 2024)	(Apr. 30, 2024)
Number of units under	708	712	4
management (thousand)
Occupancy ratio	97.7%	98.2%	0.5p

Remodeling Business - Sales Breakdown (¥ billion)

	FY2023	FY2024	Change
	(23/2-23/4)	(24/2-24/4)
Houses built by us	18.2	16.9	(1.3)
Rental housing built by us	13.4	14.6	1.2
Houses not built by us	4.2	4.5	0.3
Other	3.9	3.9	(0.0)

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