DAIWA HOUSE INDUSTRY CO., LTD. FUTURE LANDSCAPE -
CELEBRATING THE JOYS OF LIFE.
Creating the fundamental societal infrastructure and lifestyle culture rooted in regeneration, ensuring a world where we live together in harmony embracing the Joys of Life
FY2022
Presentation on Management Policies
May 15, 2023
Daiwa House Industry Co., Ltd. Code No: 1925 (Prime market of the Tokyo Stock Exchange)
© 2023 Daiwa House Industry Co., Ltd. All rights reserved.
(Transcription)
I am Yoshii, President and CEO of Daiwa House Industry. Thank you very much for taking the time out of your very busy schedule to attend our briefing today. I would like to explain the progress of the 7th mid‐term management plan announced in May of last year.
Index
- 7th Mid-Term Management Plan First year summary and future policy
• | FY2022 Performance and Business Summary | P.4 |
• | FY2023 Full Year Plan | P.5 |
• | Progress of 7th Mid-Term Management Plan | P.6 |
• Capital Policy and Shareholder Return | P.7 | |
• | Basic Policy FY2023 | |
P.8〜10 | ||
Progress on focal themes
1 | Evolve revenue model
• Progress in overseas business | P.12〜14 | |
• | Carbon-neutral strategy | P.15〜16 |
• Expand a circular value chain | P.17 | |
2 | Optimize management efficiency | ||
• | Portfolio optimization | P.18 |
• | Strengthen cost competitiveness | P.19 |
3 | Strengthen management base | ||
• | Digital Transformation | P.20 |
• | Enhance governance | P.21 |
• Increase the value of our human capital | P.22 |
- Appendix１
Progress of the strategies by business segment - Single-FamilyHouses Business
- Rental Housing Business
- Condominium Business
- Commercial Facilities Business
- Logistics, Business & Corporate Facilities Business
- Environmental & Energy Business
-
Appendix２
Carbon Neutral & Human Capital Indicators
© 2023 Daiwa House Industry Co., Ltd. All rights reserved. | 2 |
(Index)
7th Mid-Term Management Plan First year summary and future policy
© 2023 Daiwa House Industry Co., Ltd. All rights reserved. | 3 |
First, I would like to summarize the last fiscal year, the first year of the 7th mid‐ term management plan, and discuss our future policy.
FY2022 Performance and Business Summary
In FY2022, net sales and operating income increased to 4 trillion 908.1 billion yen (YOY +10.6%) and
368.7 billion yen (YOY +11.0%). Operating income improved in the hotel operation business, and overseas business centered in the U.S. Single-FamilyHouses Business contributed significantly.
FY2022 Results
FY2021 | FY2022 | |||||
(¥ billion) | Net sales | OP income*1(Ratio) | Net sales | OP income*1(Ratio) | ||
Single-Family | 784.8 | 38.3 (4.9％) | 910.0 | 46.6 | (5.1％) | |
Houses | ||||||
Rental | 1,052.5 | 96.6 (9.2％) | 1,149.4 | 109.7 | (9.5％) | |
Housing | ||||||
Condominiums | 379.9 | 9.7 (2.6％) | 484.3 | 40.8 | (8.4％) | |
Commercial | 1,038.5 | 124.1 (12.0％) | 1,092.1 | 132.9 (12.2％) | ||
Facilities | ||||||
Logistics, Business | ||||||
1,079.2 | 125.5 (11.6％) | 1,130.2 | 99.6 | (8.8％) | ||
& Corporate | ||||||
Facilities | ||||||
Environment & | 161.0 | 5.2 (3.3％) | 188.6 | 6.2 | (3.3％) | |
Energy | ||||||
Other | 63.0 | -5.9(-) | 81.8 | 5.4 (6.7％) | ||
businesses | ||||||
Total | 4,439.5 | 332.2 (7.5％) | 4,908.1 | 368.7 (7.5％) | ||
*1 Total OP income is calculated excluded the effect of actuarial gains and losses related to retirement benefits (hereinafter referred to as "Actuarial differences").
*2 Stanley Martin Holdings, LLC / Trumark Companies, LLC / CastleRock Communitiles, L.P.
Summary of FY2022
❶Recovering from the COVID-19 pandemic
- Urban hotels occupancy rate increased to 84%Average daily Rate increased to 9,285 yen
- Vacancy rate of commercial facilities: 0.8%
❷Progress in overseas business
-
3 companies*2 in the U.S. grew and contributed even in a severe environment.
Deliveries︓6,010 units -
Deliveries of condominiums in China already sold-out progressed smoothly.
Deliveries︓1,285 units
❸Smooth progress in sale of development properties
- Sales and profits exceeded revised plan announced in Nov. 2022, although there was a rebound decline from FY2021
© 2023 Daiwa House Industry Co., Ltd. All rights reserved. | 4 |
FY2022 was the first year of the five‐year journey of the 7th mid‐term management plan. Despite a very difficult environment, thanks to the hard work of our employees and the support of our stakeholders, we got off to a good start with net sales of JPY4,908.1 billion, up 10.6% from the previous year.
All segments, with the exception of the Logistics, Business & Corporate Facilities Business, which was significantly affected by the previous year's reactionary decline from the sale of development properties and the sharp rise in the price of materials, achieved an increase in income. In overseas operations, continued progress in the Single‐Family Houses Business in the US and the Condominiums Business in China, among others, contributed to our business performance.
FY2023 Full Year Plan
We expect net sales of 4 trillion 920 billion yen, and operating income of 380 billion yen (+11.2 billion
yen excluding Actuarial differences) , resulting in increasing sales and profits.
Forecasts for FY2023
FY2022 (Results) | FY2023 (Forecasts) | ||||||
(¥ billion) | Consolidated | For overseas | Consolidated | For overseas | |||
Net sales | 4,908.1 | 673.9 | 4,920.0 | 540.0 | |||
OP income | 368.7 | 52.9 | 380.0 | 20.0 | |||
(Excluded Actuarial differences) | |||||||
Net income *1 | 240.2 | - | 250.0 | - | |||
(Excluded Actuarial differences) | |||||||
Annual dividend | 130 yen | - | 135 yen | - | |||
per share | |||||||
Dividend payout ratio | 35.6% | - | 35.6% | - | |||
計 | |||||||
(Excluded Actuarial differences) |
*1 Net income attributable to owners of the parent excluded amortization of actuarial differences
Topics
- We expect to increase sales and profits due to increasing sale of development properties and expanding the businesses and improving the profitability of domestic subsidiaries.
- For overseas business, although recent orders have been strong in the U.S. Single-Family Houses Business, we expected result in lower sales due to the effect of slowdown in the U.S. housing market in 2022.
- We expect of improving cost-of-sales ratio due to initiatives of reducing costs such as centralizing purchasing for the Group and others in addition to pass the price to customers.
© 2023 Daiwa House Industry Co., Ltd. All rights reserved. | 5 |
For the current fiscal year, we plan to increase both sales and profit, with net sales of JPY4,920 billion and operating income of JPY380 billion, excluding the impact of actuarial differences in retirement benefit accounting. We aim to achieve the plan by recovering orders mainly in the construction‐related business, growing the hotel management business considering inbound demand, and further accelerating efforts to improve the cost ratio.
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Daiwa House Industry Co. Ltd. published this content on 18 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2023 06:28:07 UTC.
