Summary of Financial Results (Unaudited)
for the First Three Months of the Fiscal Year Ending March 31, 2024 [Consolidated]
(From April 1, 2023 to June 30, 2023)
[Japanese GAAP]
August 7, 2023
Name of Listed Company: | Daiwa House Industry Co., Ltd. |
Representative: | Keiichi Yoshii, President and CEO |
Code No.: | 1925 |
URL: | https://www.daiwahouse.com/English/ |
Listed Exchanges: | Prime Market of the Tokyo Stock Exchange |
Contact: | Yuji Yamada, Managing Executive Officer and General Manager, IR Department |
E-mail to: dh.ir.communications@daiwahouse.jp |
Scheduled Date of Filing Quarterly Securities Report: | August 8, 2023 |
Supplemental documents for the financial results provided: | Yes |
Results briefing for the period under review provided: | Yes (for institutional investors and securities analysts) |
(Amounts below one million yen are omitted)
1. Consolidated Results of Operation for the First Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
(1) Consolidated Earnings Results | (% figures represent year-on-year change) | |||||||
Net sales | Operating income | Ordinary income | Net income | |||||
attributable to owners | ||||||||
of the parent | ||||||||
Three months ended: | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % |
June 30, 2023 | 1,214,595 | 20.5 | 93,075 | 55.9 | 90,849 | 51.8 | 60,007 | 64.3 |
June 30, 2022 | 1,007,795 | 9.5 | 59,694 | 2.1 | 59,833 | 0.8 | 36,533 | -5.3 |
Note: Comprehensive income: Three months ended June 30, 2023: 73,816 million yen ( | 19.6%) | |||
Three months ended June 30, 2022: 61,711 million yen ( | -4.8%) | |||
Basic net income | Diluted net income | |||
per share | per share | |||
Three months ended: | Yen | Yen | ||
June 30, 2023 | 91.14 | - | ||
June 30, 2022 | 55.72 | - |
- Consolidated Financial Conditions
Total assets | Net assets | Net assets ratio | |
As of | Millions of yen | Millions of yen | % |
June 30, 2023 | 6,239,901 | 2,398,334 | 36.9 |
March 31, 2023 | 6,142,067 | 2,388,914 | 37.2 |
(Reference) Net assets ratio = (Net assets - Non-controlling interests)/Total assets×100
(Net assets - Non-controlling interests) is as follows. June 30, 2023: 2,304,814 million yen; March 31, 2023: 2,284,212 million yen
2. Dividends
Dividend per share | ||||||||||
End of | End of | End of | Fiscal year-end | |||||||
1st quarter | 2nd quarter | 3rd quarter | Annual | |||||||
(Mar. 31) | ||||||||||
(June 30) | (Sept. 30) | (Dec. 31) | ||||||||
Yen | Yen | Yen | Yen | Yen | ||||||
Fiscal year ended March 31, 2023 | - | 60.00 | - | 70.00 | 130.00 | |||||
Fiscal year ending March 31, 2024 | - | |||||||||
Fiscal year ending March 31, 2024 | 63.00 | - | 72.00 | 135.00 | ||||||
(forecasts) | ||||||||||
Note: Revised dividend forecast for the quarter under review: | None |
Summary of Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024
Daiwa House Industry Co., Ltd. (code #1925)
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2024 (From April 1, 2023 to March 31, 2024)
(% figures represent year-on-year change)
Net sales | Operating income | Ordinary income | Net income | Basic net | |||||
attributable to owners | income per | ||||||||
of the parent | share | ||||||||
Fiscal year ending | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen |
4,920,000 | 0.2 | 380,000 | -18.3 | 354,000 | -22.4 | 250,000 | -18.9 | 380.24 | |
March 31, 2024 |
Notes: 1. Revised forecast for the quarter under review: None
2. Amortization of actuarial differences for retirement benefit is not expected in the above consolidated earnings forecasts.
Notes:
- Changes in Significant Subsidiaries during the Period under Review (This refers to changes in specified subsidiaries associated with changes in the scope of consolidation): None
- Application of Accounting Methods Unique to the Preparation of the Quarterly Consolidated Financial Statements: None
- Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective Restatement
- Changes in accounting policies applied due to amendment of accounting standards: None
- Changes in accounting policies due to reasons other than 1): None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Number of Issued and Outstanding Shares (Common Stock)
- Number of shares at the end of the period (including treasury stock)
As of June 30, 2023 | 659,290,951 shares |
As of March 31, 2023 | 666,290,951 shares |
2) Number of treasury stock at the end of the period
As of June 30, 2023 | 2,218,534 shares |
As of March 31, 2023 | 7,419,650 shares |
3) Average number of shares during the period
Three months ended June | 658,421,415 shares |
30, 2023 | |
Three months ended June | 655,670,622 shares |
30, 2022 | |
- This financial results report is not required to be audited by certified public accountants or audit corporations
- Remarks on appropriate use of forecasted results of operation and other special matters
(Notes regarding forward-looking statements)
Consolidated earnings forecasts are based on assumptions in light of the information available as of the date of announcement of this material and the factors of uncertainty that may possibly impact the future results of operation. These statements do not mean that the Company pledges to realize such statements. Actual results may differ significantly from those presented herein as a consequence of numerous factors such as the financial market, economic conditions, competitor situations and fluctuations in land prices.
Please refer to the section of "1. Qualitative Information Regarding Consolidated Results for the Period under Review (3) Earnings Forecasts" of "the Attached Material" on page 5 for the suppositions that form the assumptions for earnings forecasts.
(Obtaining supplementary explanatory materials)
The Company plans to hold a briefing for institutional investors and securities analysts on August 7, 2023. Relevant financial statements to be handed out at the briefing will be posted on our website at the same time.
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Summary of Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024
Daiwa House Industry Co., Ltd. (code #1925)
Contents of the Attached Material | ||
1. Qualitative Information Regarding Consolidated Results for the Period under Review | 4 | |
(1) | Earnings Results | 4 |
(2) Financial Conditions | 4 | |
(3) | Earnings Forecasts | 5 |
2. Consolidated Financial Statements and Main Notes | 6 | |
(1) | Consolidated Balance Sheets | 6 |
(2) | Consolidated Statements of Income and Consolidated Statements of Comprehensive Income | 8 |
Consolidated Statements of Income | 8 | |
Consolidated Statements of Comprehensive Income | 9 | |
(3) | Notes | 10 |
Notes on Premise of Going Concern | 10 | |
Notes on Significant Changes in the Amount of Shareholders' Equity | 10 | |
Significant Subsequent Events | 10 |
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Summary of Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024
Daiwa House Industry Co., Ltd. (code #1925)
1. Qualitative Information Regarding Consolidated Results for the Period under Review
- Earnings Results
During the first quarter of the fiscal year under review, the Japanese economy continued its gradual recovery trend, reflecting the recovery in consumer spending and capital investment amid the transition of the legal status of COVID-19 to Category V Infectious Diseases in May 2023 and the normalization of social and economic activities. However, the outlook for the global economy remains uncertain due to the prolonged war in Russia and Ukraine, global monetary tightening, and other factors. Downside risks to the economy, such as downturns in overseas economies and exchange rate fluctuations, continue to require close attention.
The number of new construction starts in the domestic housing market increased year-on-year for rental housing, however, decreased for built-for-sale houses and owner-occupied houses, resulting in a year-on- year decrease in the overall figure. In the general construction market, as well, the total floor area of new construction starts recorded year-on-year decrease in all categories.
Amid this operating environment, the Group has actively pushed forward various high-value-added proposals and measures to realize a sustainable growth model, including expanding its overseas businesses and stock businesses and leveraging digital transformation to enhance the customer experience, under the three management policies: Evolve revenue model, optimize management efficiency, and strengthen management base in the 7th Medium-Term Management Plan, a five-year plan launched fiscal year 2022.
As a result, the Daiwa House Group recorded consolidated net sales of 1,214,595 million yen (+20.5% year on year) for the first three months of the fiscal year ending March 2024. Operating income came to 93,075 million yen (+55.9% year on year), ordinary income came to 90,849 million yen (+51.8% year on year), while net income attributable to owners of the parent amounted to 60,007 million yen (+64.3% year on year).
(2) Financial Conditions
Total assets as of the end of the consolidated three-month reporting period amounted to 6,239,901 million yen, an increase of 97,834 million yen compared with 6,142,067 million yen in total assets at the end of the previous consolidated fiscal year. This was mainly due to an increase in cash and bank deposits resulting from bank loans and the issuance of commercial paper.
Total liabilities as of the end of the consolidated three-month reporting period amounted to 3,841,567 million yen, an increase of 88,414 million yen compared with 3,753,153 million yen in total liabilities at the end of the previous consolidated fiscal year. The principal reason for this was bank loans and the issuance of commercial paper, to raise funds for the acquisition of inventory assets, real estate for investment and other purposes, despite the decrease in notes and accounts payable for construction contracts due to payments of construction costs and others.
Total net assets as of the end of the consolidated three-month reporting period amounted to 2,398,334 million yen, an increase of 9,419 million yen compared with 2,388,914 million yen in total net assets at the end of the previous consolidated fiscal year. This was mainly due to the recording of a net income attributable to owners of the parent in the amount of 60,007 million yen, despite the payment of dividends to shareholders for the previous fiscal year in the amount of 46,120 million yen. At the end of the term under review, these results were 2,027,054 million yen in interest-bearing liabilities excluding lease obligations among others, and a debt-equity ratio of 0.88 times. After taking the hybrid financing into account, the debt-equity ratio came to 0.78 times*.
- The debt-equity ratio was calculated by taking into account the equity credit of 50 percent employed in establishing the Company's credit rating for the 150 billion yen of publicly offered hybrid bonds (subordinated bonds) issued in September 2019 and 100 billion yen of hybrid loans (subordinated loans) procured in October 2020.
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Summary of Financial Results for the First Three Months of the Fiscal Year Ending March 31, 2024
Daiwa House Industry Co., Ltd. (code #1925)
(3) Earnings Forecasts
Regarding consolidated business performance forecasts for the term ending March 31, 2024, the forecasts issued on May 12, 2023 remain unchanged.
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Disclaimer
Daiwa House Industry Co. Ltd. published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 06:05:51 UTC.