Sekisui House : FY2024 Financial Results Summary

FY2024

(February 1, 2024 through January 31, 2025)

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 FY2025

March 6, 2025

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	1

1. Overview

• We achieved record high net sales and profit, with sales exceeding ¥4 trillion.
• All businesses saw increased sales and profits from the consolidation of MDC and growth from existing businesses.
• Annual dividends increased ¥12 year on year (¥6 higher than planned) to ¥135, achieving an increase in dividends for the 13th consecutive year.

				(￥ billion)
	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	changed
Net sales	3,107.2	4,058.5	951.3	30.6%
Gross profit	623.7	785.9	162.2	26.0%
Gross profit margin	20.1%	19.4%	(0.7p)	－
SG&A	352.7	454.6	101.8	28.9%
Operating profit	270.9	331.3	60.4	22.3%
Operating profit margin	8.7%	8.2%	(0.5p)	－
Non-operating income/expenses	(2.7)	(29.7)	(27.0)	－
Ordinary profit	268.2	301.6	33.3	12.4%
Extraordinary income	26.6	24.3	(2.3)	(8.8%)
Extraordinary losses	5.9	20.3	14.3	241.7%
Profit attributable to	202.3	217.7	15.3	7.6%
owners of parent

Gross profit

・Loss on evaluation land and buildings for sale: ￥(17.5) billion

Main components of Loss on evaluation land and buildings for sale

・Multifamily business in U.S.A: ￥(11.2) billion

Main components of non- operating income/expenses

・Interest expenses: ¥33.6 billion (up ¥21.2 billion YOY)

・Foreign exchange gains or losses: ¥3.5 billion (down ¥0.7 billion YOY)

Extraordinary income

・Gain on sale of investment securities: ¥19.3 billion

Extraordinary losses

・Acquisition related expenses: ¥18.2 billion

EPS (yen)	309.29	335.95	2

1. Overview

• Net sales and all types of profit were higher than the plan thanks to the balanced business portfolio.

				Consolidated Results		(￥ billion)
		FY2023		FY2024 Plan	FY2024	Amount	Change(%)
		Results		Announced in Sept.	Results	changed
Net sales	3,107.2		4,000.0	4,058.5	58.5	1.5%
Operating profit	270.9		320.0	331.3	11.3	3.6%
Ordinary profit	268.2		288.0	301.6	13.6	4.7%
Profit attributable to	202.3		209.0	217.7	8.7	4.2%
owners of parent
ROE(%)	11.9%		11.7%	11.7%	0.0p	－
		Operating profit of Each Business Model		(￥ billion)
		FY2023	FY2024 Plan	FY2024		Amount	Change(%)
		Results	Announced in Sept.	Results		changed
	Built-to-Order Business	131.9	141.5	143.0		1.5	1.1%
	Supplied Housing	73.6	78.0	83.4		5.4	7.0%
	Business
	Development Business	65.8	60.5	70.2		9.7	16.2%
	Overseas Business	48.8	88.0	78.9		(9.0)	(10.3%)

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1. Overview by Business model

Net sales

			4,058.5
3,107.2			1,278.5	+767.4
	511.0
				582.5	+49.5
	533.0
				870.9	+49.4
	821.5
				1,349.0	+79.2
	1,269.8
	FY2023		FY2024
(23/2-24/1)		(24/2-25/1)
■ Built-to-Order Business ■ Supplied Housing Business
■ Development Business	■ Overseas Business

Operating profit

	331.3
270.9	78.9	+30.0
48.8
65.8	70.2	+4.4
73.6	83.4	+9.7
131.9	143.0	+11.0
FY2023	FY2024
(23/2-24/1)	(24/2-25/1)

■ Built-to-Order Business ■ Supplied Housing Business

■ Development Business ■ Overseas Business

(¥ billion)

Orders

				4,052.6
3,196.4			1,172.4	+652.3
		520.0
		637.1	+71.5
		565.5
					873.1	+53.4
		819.6
						+79.9
					1,396.2
		1,316.2
		FY2023		FY2024
(23/2-24/1)		(24/2-25/1)
	■ Built-to-Order Business ■ Supplied Housing Business
	■ Development Business	■ Overseas Business

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2. Financial Position

Consolidated Balance Sheet

Assets

[Main changes]

＋975.3

Liabilities and net assets

(¥ billion)

[Main changes]

4,808.8

3,352.7

3,712.1

Real estate for sale increased.

（including the impact of exchange rate fluctuations of ¥151.9 billion）

Main change of the total amount, the increase from the acquisition

3,352.7

4,808.8

1,555.6

＋1,102.4

Interest-bearing debts increased

（including the impact of exchange rate fluctuations

2,496.9

of MDC.

＋181.4

1,138.01,234.6

420.7

of ¥93.9 billion）

Main change of the total amount, the increase from the acquisition of MDC.

			1,096.7
	855.8
	FY2023		FY2024
	(Jan. 31, 2024)		(Jan. 31, 2025)

■ Total current assets ■ Total non-current assets

Intangible assets increased.

Main change of the total amount, the increase from "Goodwill " and "Trademark rights" by the acquisition of MDC.

1,794.0	2,018.5
FY2023	FY2024
(Jan. 31, 2024)	(Jan. 31, 2025)

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

Real estate for sale by segment		(¥ billion)
		FY2023	FY2024	Amount
		(Jan. 31, 2024)	(Jan. 31, 2025)	changed
	Real estate for sale *	1,863.9	2,839.2	975.3
	Detached houses / Rental	9.2	9.4	0.2
	housing and commercial buildings
	Real estate and brokerage	327.4	387.6	60.1
	Condominiums	227.8	265.0	37.2
	Urban redevelopment	60.4	9.5	(50.8)
	Overseas	1,238.8	2,167.4	928.5

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

State of Interest-bearing Debts

	FY2023	FY2024	change
	(Jan. 31, 2024)	(Jan. 31, 2025)
Interest-bearing debts (¥ billion)	774.9	1,877.4	1,102.4
D/E ratio (times)	0.44	0.96	0.52
taking into account	0.44	0.86	0.42
hybrid bonds (times)
Equity-to-asset ratio	52.3%	40.8%	(11.5p)

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3. State of Cash Flows, State of Investment

State of Cash Flows			(¥ billion)
		FY2023	FY2024	Amount
		(23/2-24/1)	(24/2-25/1)	changed
	Cash flows from operating activities	15.6	62.8	47.2
	Cash flows from investing activities	(69.1)	(697.6)	(628.5)
	Free cash flow	(53.4)	(634.8)	(581.3)
	Cash flows from financing activities	6.4	720.9	714.4
	Cash and cash equivalents at end of period	292.9	390.3	97.4

[Main changes]

•Purchase of shares of subsidiaries resulting in change in scope of consolidation: Previous period ¥(14.6) billion, Current period ¥(557.0) billion

•Proceeds from long-term borrowings: Previous period ¥55.5 billion, Current period ¥464.5 billion Proceeds from issuance of bonds: Previous period ¥30.0 billion, Current period ¥352.5 billion

State of Investment				(¥ billion)
		FY2023	FY2024	Amount	FY2025
		(23/2-24/1)	(24/2-25/1)	Changed	Full-year plan
	Capital expenditures	86.7	99.8	13.1	95.0
	Depreciation	27.7	35.2	7.4	37.0

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

• The Detached Houses Business saw increased sales and profits. We have continued to make high-added value proposals, thus increasing ASP and leading to an improved profit margin. Orders also remained strong.
• In the Rental Housing and Commercial Buildings Business, sales and profit increased, thanks to an enhanced shipment structure and steady construction progress. Orders also remained strong.
• The Architectural/Civil Engineering Business saw increased sales and profit due to on-track construction progress, securing steady orders through expanded proposal capabilities.

Net sales (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	Changed
Detached houses	471.0	479.0	8.0	1.7%
Rental housing and commercial	524.1	544.9	20.8	4.0%
buildings
Architectural/civil engineering	274.6	325.0	50.3	18.3%
Total	1,269.8	1,349.0	79.2	6.2%

Operating profit (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	Changed
Detached houses	41.0	46.0	5.0	12.2%
Rental housing and commercial	78.0	81.7	3.7	4.8%
buildings
Architectural/civil engineering	12.9	15.2	2.3	17.9%
Total	131.9	143.0	11.0	8.4%

Gross profit margin

FY2023	FY2024	Change
(23/2-24/1)	(24/2-25/1)
23.3%	24.0%	0.7p
24.1%	24.1%	0.0p
10.4%	9.9%	(0.5p)
20.8%	20.7%	(0.1p)

Operating profit margin

FY2023	FY2024	Change
(23/2-24/1)	(24/2-25/1)
8.7%	9.6%	0.9p
14.9%	15.0%	0.1p
4.7%	4.7%	0.0p
10.4%	10.6%	0.2p

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

Orders (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	changed
Detached houses	465.6	479.1	13.4	2.9%
Rental housing and commercial	550.2	592.3	42.1	7.7%
buildings
Architectural/civil engineering	300.3	324.7	24.4	8.1%
Total	1,316.2	1,396.2	79.9	6.1%

Order backlog (¥ billion)

FY2023	FY2024	Amount
(Jan. 31, 2024)	(Jan. 31, 2025)	changed
229.9	230.0	0.0
516.4	563.8	47.4
401.2	401.0	(0.2)
1,147.7	1,194.9	47.1

	ASP per building (¥ million)
	FY2023	FY2024	Amount
	(23/2-24/1)	(24/2-25/1)	Changed
Detached houses	49.55	52.48	2.93
(Excluding ready built houses)
Rental housing (Sha Maison)	165.43	193.15	27.72

• Detached houses

Ratio of three- and four-story housing (in value): 9.9%

〈Reference〉 Ratio of Green First ZERO (ZEH): 95%(FY2023)

*Final results (-March 2025) will be disclosed in the Value Report and other publications with completion of the report to the government.

• Rental housing (Sha Maison) Ratio of Sha Maison ZEH: 77%
  Ratio of three- and four-story housing (in value): 90.7%
• Gross profit margin of Architectural/civil engineering Architectural: Previous period 9.5%, Current period 9.3% Civil engineering: Previous period 12.4%, Current period 11.5%

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4. Segment Information (Supplied Housing Business)

• We saw increased sales and profit in the Rental Housing Management Business. The number of units under management increased and the occupancy rate remained high since we supply high-quality buildings in good locations and provide high-value added proposals that take a tenant-first approach.
• The Remodeling Business saw increased sales and profit as well as an improved profit margin. We continued promoting the environment- based and proposal-based remodeling of detached houses as well as remodeling proposals focused on maintaining or improving the asset value of rental housing. Orders also remained strong.

Net sales (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	changed
Rental housing management	646.5	687.1	40.5	6.3%
Remodeling	174.9	183.8	8.8	5.1%
Total	821.5	870.9	49.4	6.0%

Operating profit (¥ billion)

	FY2023	FY2024	Amount	YOY
	(23/2-24/1)	(24/2-25/1)	changed
Rental housing management	50.1	56.8	6.6	13.2%
Remodeling	23.4	26.6	3.1	13.4%
Total	73.6	83.4	9.7	13.3%

Gross profit margin

FY2023	FY2024	Change
(23/2-24/1)	(24/2-25/1)
14.2%	14.5%	0.3p
25.4%	26.2%	0.8p
16.6%	17.0%	0.4p

Operating profit margin

FY2023	FY2024	Change
(23/2-24/1)	(24/2-25/1)
7.8%	8.3%	0.5p
13.4%	14.5%	1.1p
9.0%	9.6%	0.6p

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