Sekisui House : Company Presentation for FY2025

Company Presentation for FY2025

March 6, 2025

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 capital

DX and data

Products and services

Growth investments

Our core competencies

Technical capabilities	Construction capabilities	Customer base	1

Further Strengthening Our Customer Base, a Core Competency

Corporate Philosophy: Love of Humanity

Eliminating the post-war housing shortage and protecting the lives and wealth of residents

Core competency

Core competency

Customer-First

DNA

Main focus: 98% of homes are custom-built

Responding thoroughly to customer needs

Core competency

Technical capabilities

• Durability
• Seismic resistance functions
• Comfort-relatedperformance
• Environmental performance

・

・

・

Construction capabilities

• Foundation and erecting work Sekisui House Construction Group
  * Transitioned to a holdings company structure in February 2024
• Primary construction work

Sekisui House Association (approx. 2,900 companies nationwide)

Primary work constructors (approx. 330 full-time staff nationwide)

• Educational training centers and training schools

Customer base

• Sekisui House Support Plus, an after-sales service specialization business
  We will add value to our after-sales service with a solid foundation of 12 divisions, 30 customer service centers and over 1,000 employees in charge of after-sales service
  Towards becoming Japan's top housing concierge
• Sha Maison PM, a rental property management specialization business
  With over 700,000 units under management across Japan and a strong occupancy rate, we will deliver added value in the rental property management business via enhanced services for owners and tenants

Towards becoming Japan's top property management company

• Sekisui House Real Estate, a real estate and brokerage specialization business
  We will strengthen the acquisition and sale of real estate, launching a detached housing business for first-time buyers, while offering wide-ranging support for owners from home relocation to asset inheritance

• Transplant technologies to U.S. and Australian single-family homes, expand SHAWOOD (make Sekisui House technologies the global de facto standard)
• Expand the Skeleton and Infill Business

(Grade 3 seismic resistance, making "direct joint construction method" widely available)

Towards the top regional real estate company with a focus on housing

• Sekisui House GM Partners, a condominium for sale management specialization business We will provide high-qualityand attractive services to increase owners' asset value as well as enhance the brand value of GRANDE MAISON condominiums in select areas

Further strengthening the GRANDE MAISON brand

2

Progress in Sixth Mid-Term Management Plan

3

M.D.C. Holdings, Inc. (MDC).

Progress in Sixth Mid-Term Management Plan (1)

We project record-high net sales and operating profit in the final year of the Sixth Mid-Term Management Plan (2025), driven by stable growth in Japan and growth in the U.S. business with the addition of

■ Net Sales	■ Operating profit	(¥ billion)												4,500.0
															4,000.0	4,058.5
														3,107.2
													2,928.8
										2,415.1	2,446.9	2,589.5					362.0
													320.0	331.3
								2,159.3	2,160.3
							2,026.9
					1,912.7	1,858.8							270.9
				1,805.1							261.4
1,488.3	1,530.5	1,613.8									230.1
									205.2
							184.1	195.5	189.2	186.5
				131.9	146.5	149.6
	70.8		86.1
56.3
2010	2011		2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2024	2025
															Revised Plan		（Plan）
														announced in Sep.
1st Plan		2nd Plan		3rd Plan		4th Plan		5th Plan		6th Plan

Establishment	Acceleration of Profit
of lean	growth through
earnings base	business expansion

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

4

Progress in Sixth Mid-Term Management Plan (2)

■ Sixth Mid-Term Management Plan [announced in March 2023]					(¥ billion)
					FY2023			FY2024	FY2025	Three-year total
	Net Sales				3,080.0		3,270.0	3,676.0	10,026.0
	Operating Profit				265.0		275.0	318.0	858.0
	Ordinary Profit				259.0		269.0	311.0	839.0
	Profit attributable to owners of parent			193.0		196.0	214.0	603.0
	EPS		(yen)		295.05		303.35	331.20	-
	ROE				11.6
						％		Stably creating 11% or more (FY2025: Around 12%)
■ Plan for FY2025 and the results for FY2023 and FY2024 [announced in March 2025]			(¥ billion)
					FY2023			FY2024	FY2025 (plan)	Three-year total
	Net Sales				3,107.2		4,058.5	4,500.0	11,665.8
		Excluding effect of consolidation of MDC		3,107.2		3,469.0	3,668.8	10,245.2
	Operating Profit			270.9		331.3	362.0	964.3
		Excluding effect of consolidation of MDC		274.0*		316.1	314.0	904.3
	Ordinary Profit			268.2		301.6	339.0	908.8
	Profit attributable to owners of parent			202.3		217.7	232.0	652.0
	EPS		(yen)		309.29		335.95	357.97	-
	ROE				％		％	％	-
				11.9		11.7	11.9

* Reflecting the temporary expenses related to the acquisition of MDC (approximately 3.1 billion yen) recorded in FY2023 5

FY2024 Earnings by Segment (YoY, Compared to revised plan announced in Sep. 2024)

																				(¥ billion)
			FY2023 Results			FY2024 Results				YoY				Compared to revised plan
											announced in Sep. 2024
		Net sales	Operating	Operating	Orders	Order	Net sales	Operating	Operating	Orders	Order	Net sales	Operating	Operating	Orders	Order		Net sales	Operating	Operating
		profit	profit	backlog	profit	profit	backlog	profit	profit	backlog		profit	profit
			margin			margin			margin				margin
Built-to-Order Business	Detached houses	471.0	41.0	8.7%	465.6	229.9	479.0	46.0	9.6%	479.1	230.0	8.0	5.0	0.9p	13.4	0.0		6.0	2.5	0.4p
Rental housingand	524.1	78.0	14.9%	550.2	516.4	544.9	81.7	15.0%	592.3	563.8	20.8	3.7	0.1p	42.1	47.4		(5.0)	(1.2)	(0.1)p
	commercialbuildings
	Architectural/	274.6	12.9	4.7%	300.3	401.2	325.0	15.2	4.7%	324.7	401.0	50.3	2.3	0.0p	24.4	(0.2)		5.0	0.2	0.0p
	civil engineering
	Subtotal	1,269.8	131.9	10.4%	1,316.2	1,147.7	1,349.0	143.0	10.6%	1,396.2	1,194.9	79.2	11.0	0.2p	79.9	47.1		6.0	1.5	0.1p
SuppliedHousing Business	Rental housing	646.5	50.1	7.8%	646.5	-	687.1	56.8	8.3%	687.1	-	40.5	6.6	0.5p	40.5	-		14.6	3.8	0.4p
	management
	Remodeling	174.9	23.4	13.4%	173.0	34.6	183.8	26.6	14.5%	186.0	36.7	8.8	3.1	1.1p	12.9	2.1		(1.6)	1.6	1.0p
	Subtotal	821.5	73.6	9.0%	819.6	34.6	870.9	83.4	9.6%	873.1	36.7	49.4	9.7	0.6p	53.4	2.1		12.9	5.4	0.5p
	Real estate and	288.4	25.8	9.0%	306.8	60.8	356.0	28.9	8.1%	367.6	72.3	67.6	3.1	(0.9)p	60.7	11.5		(0.9)	(2.0)	(0.6)p
Development Business	brokerage
Condominiums	109.4	17.5	16.0%	121.0	88.9	102.4	14.6	14.3%	136.0	122.5	(6.9)	(2.8)	(1.7)p	15.0	33.5		0.4	2.6	2.5p
	Urban	135.1	22.4	16.6%	137.6	2.5	124.0	26.6	21.5%	133.4	12.0	(11.1)	4.2	4.9p	(4.2)	9.4		25.0	9.1	3.8p
	redevelopment*
	Subtotal	533.0	65.8	12.4%	565.5	152.3	582.5	70.2	12.1%	637.1	206.9	49.5	4.4	(0.3)p	71.5	54.5		24.5	9.7	1.3p
Overseas Business	511.0	48.8	9.6%	520.0	236.1	1,278.5	78.9	6.2%	1,172.4	338.0	767.4	30.0	(3.4)p	652.3	101.9		11.5	(9.0)	(0.7)p
Other*	11.1	1.6	14.6%	11.1	0.5	14.0	2.4	17.5%	14.0	1.0	2.8	0.8	2.9p	2.8	0.4		1.0	0.4	2.1p
Eliminations and	(39.4)	(51.0)	-	(36.1)	(19.4)	(36.6)	(46.8)	-	(40.3)	(23.1)	2.8	4.2	-	(4.1)	(3.7)		2.3	3.1	-
back office
	Total	3,107.2	270.9	8.7%	3,196.4	1,552.0	4,058.5	331.3	8.2%	4,052.6	1,754.5	951.3	60.4	(0.5)p	856.1	202.5		58.5	11.3	0.2p
＊ Some segments of consolidated subsidiaries previously included in "Other" have been moved to the Urban Redevelopment Business. Therefore, the figures for the previous fiscal year are shown post reclassification..		6

FY2025 Earnings Plan by Segment

				Net sales		Operating Profit
			FY2024	FY2025		FY2024	FY2025
			Results	Plan		YoY	Results	Plan	YoY
	Built-to-Order Business	Detached houses	479.0	487.0		7.9	46.0	48.0		1.9
Rental housing and	544.9	564.0		19.0	81.7	87.0		5.2
		commercial buildings
		Architectural/	325.0	312.0		(13.0)	15.2	15.0		(0.2)
		civil engineering
		Subtotal	1,349.0	1,363.0		13.9	143.0	150.0		6.9
	SuppliedHousing Business	Rental housing	687.1	702.0		14.8	56.8	63.5		6.6
	management
		Remodeling	183.8	187.0		3.1	26.6	26.0		(0.6)
		Subtotal	870.9	889.0		18.0	83.4	89.5		6.0
		Real estate and	356.0	394.0		37.9	28.9	31.0		2.0
	Development Business	brokerage
Condominiums	102.4	110.0		7.5	14.6	15.0		0.3
		Urban	124.0	41.0		(83.0)	26.6	2.5		(24.1)
		redevelopment
		Subtotal	582.5	545.0		(37.5)	70.2	48.5		(21.7)
	Overseas Business	1,278.5	1,737.0		458.4	78.9	125.0		46.0
	Other*	14.0	15.0		0.9	2.4	2.6		0.1
	Eliminations and	(36.6)	(49.0)		(12.3)	(46.8)	(53.6)		(6.7)
	back office
		Total	4,058.5	4,500.0		441.4	331.3	362.0		30.6

Operating Profit margin

FY2024	FY2025
Results	Plan		YoY
9.6%	9.9％		0.3p
15.0%	15.4％		0.4p
4.7%	4.8％		0.1p
10.6%	11.0％		0.4p
8.3%	9.0％		0.7p
14.5%	13.9％		(0.6)p
9.6%	10.1％		0.5p
8.1%	7.9％		(0.2)p
14.3%	13.6％		(0.7)p
21.5%	6.1％		(15.4)p
12.1%	8.9％		(3.2)p
6.2%	7.2％		1.0p
17.5%	17.3％		(0.2)p
-	-		-
8.2%	8.0％		(0.2)p

Orders

FY2024	FY2025
Results	Plan		YoY
479.1	488.0		8.8
592.3	605.0		12.6
324.7	313.0		(11.7)
1,396.2	1,406.0		9.7
687.1	702.0		14.8
186.0	190.0		3.9
873.1	892.0		18.8
367.6	403.0		35.3
136.0	106.0		(30.0)
133.4	29.0		(104.4)
637.1	538.0		(99.1)
1,172.4	1,797.0		624.5
14.0	16.0		1.9
(40.3)	(49.0)		(8.6)
4,052.6	4,600.0		547.3

(¥ billion)

FY2025 Plan

(announced in MMP*)

	Operating	Operating
Net sales	profit
	profit	margin
495.0	51.0	10.3%
577.0	89.0	15.4%
296.0	14.5	4.9%
1,368.0	154.5	11.3%
682.0	53.0	7.8%
200.0	30.0	15.0%
882.0	83.0	9.4%
332.0	28.5	8.6%
100.0	12.0	12.0%
90.0	7.0	7.8%
522.0	47.5	9.1%
927.0	93.0	10.0%
12.0	1.0	8.3%
(35.0)	(61.0)	-
3,676.0	318.0	8.7%

＊ Some segments of consolidated subsidiaries previously included in "Other" have been moved to the Urban Redevelopment Business. For the initial plan for fiscal 2025 at the time of formulating the Sixth Med-Term Management Plan (MMP)	7
announced in March 2023, the figures prior to the reclassification are displayed.

Progress in Key measures by business

8

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

Despite a weak detached housing market, orders remain strong, backed by high-value added proposals unique to custom homes.

The order backlog at the end of FY2024 is projected to remain at the same level year-on-year, with further improvements to profit margin.

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

End of each FY Order backlog

FY2023 Orders：¥465.6 bn

FY2025 Earnings Plan (Figures in parentheses indicate year-on-year of change)

Net Sales	Operating profit	Gross profit	Operating profit
margin	margin

¥487.0 bn	¥48.0 bn	24.4%	9.9%
（+1.7%）	（+4.2%）	（+0.4p）	（+0.3p）

Monthly orders（YoY based on preliminary Figures)

	FY2025
FY2024 Orders：¥479.1 bn（+2.9%）	Orders plan

¥235.3 bn						¥229.9 bn							¥230.0 bn
						10%	13%			16%			11%
										8%
2%				2%		5%		2%	4%	5%
		0%			0%			0%
As of Jan. 31, 2023	-3% -6% -3%				-2%	1% As of Jan. 31, 2024	-3%					-2%	As of Jan. 31, 2025
Order backlog	-5%	-9%		Order backlog					Order backlog
	-11%
Feb. Mar. Apr. May. Jun	Jul. Aug. Sep.	Oct.	Nov. Dec. Jan.	Feb. Mar.	Apr. May.	Jun	Jul. Aug.	Sep. Oct.	Nov. Dec. Jan.
		FY2023							FY2024

¥488.0 bn

（+1.9%）

～

9