DAIWA HOUSE INDUSTRY CO., LTD. 
Developing our Businesses
Performance targets by business segment | 41 | ||||
Business Overview | 42 | Chapter5 | |||
Single-Family Houses Business | 43 | ||||
Rental Housing Business | .......... 46 | ||||
Condominiums Business | .......... 48 | ||||
Commercial Facilities Business | 50 | ||||
Logistics, Business and | |||||
Corporate Facilities Business | 52 | ||||
Environment and Energy Business | 54 | ||||
Creating Social Impact | 56 | ||||
Real estate investment | 58 | ||||
The expanding built-for-sale business | .......... 60 |
Daiwa House Group Integrated Report 2023 40
Message from the CEO
Long-Term Vision and the 7th Plan
The Story of the Group's
Value Creation
Message from the CFO | Developing | Environmental Vision |
our Businesses | ||
Strengthening
our Bases
Governance
Financial Results,
Corporate Information
Chapter 5 Developing our Businesses
Performance targets by business segment
In the 7th Medium-Term Management Plan, we aim to expand our business by positioning the Single-Family Houses Business, Commercial Facilities Business, and Logistics, Business and Corporate Facilities Business as the fields for intensive investment. In addition, we enhance our ability to generate cash in the Rental Housing Business and Environment and Energy Business to ensure stable profit growth.
(¥ billion)
Sales | Operating income (operating margin) | ||||||||
FY2022 Results | FY2023 Plan | FY2026 | FY2022 Results | FY2023 Plan | FY2026 | ||||
Single-Family Houses | 876.3 | 840.0 | 1,250.0 | 46.5(5.3%) | 34.0(4.0%) | 100.0(8%) | |||
for overseas | 430.1 | 366.2 | 730.0 | 36.8(8.6%) | 17.6(4.8%) | 75.0(10%) | |||
Rental Housing | 1,183.1 | 1,220.0 | 1,250.0 | 109.7(9.3%) | 117.0(9.6%) | 120.0(10%) | |||
for overseas | 63.8 | 67.8 | 60.0 | 2.7(4.3%) | 6.1(9.0%) | 10.0(17%) | |||
Condominiums | 484.3 | 430.0 | 400.0 | 40.8(8.4%) | 21.0(4.9%) | 25.0(6%) | |||
for overseas | 97.5 | 34.9 | 150.0 | 18.9(19.4%) | 0.2(0.7%) | 18.0(12%) | |||
Commercial Facilities | 1,092.1 | 1,150.0 | 1,250.0 | 132.9(12.2%) | 143.0(12.4%) | 160.0(13%) | |||
for overseas | 1.5 | 2.0 | 25.0 | -1.0(-%) | -1.0(-%) | 5.0(20%) | |||
Logistics, Business and Corporate Facilities | 1,130.2 | 1,190.0 | 1,300.0 | 99.6(8.8%) | 124.0(10.4%) | 160.0(12%) | |||
for overseas | 76.1 | 67.7 | 90.0 | -2.4(-%) | 0.5(0.8%) | 9.0(10%) | |||
Environment and Energy | 188.6 | 140.0 | 170.0 | 6.2(3.3%) | 6.3(4.5%) | 10.0(6%) | |||
for overseas | - | - | 2.0 | -(-%) | -(-%) | 0.2(10%) | |||
Other Businesses | 81.8 | 60.0 | 70.0 | 5.4(6.7%) | 2.0(3.3%) | 5.0(7%) | |||
for overseas | 4.6 | 4.4 | 8.0 | -0(-%) | -0.3(-%) | -2.9(-%) | |||
Total | 4,908.1 | 4,920.0 | 5,500.0 | 368.7(7.5%) | 380.0(7.7%) | 500.0(9%) | |||
for overseas | 673.9 | 540.0 | 1,000.0 | 52.9(7.8%) | 20.0(3.7%) | 100.0(10%) | |||
for sale of development properties | 222.2 | 301.3 | 450.0 | 74.6(33.6%) | 81.7(27.1%) | ||||
for Livness business | 320.7 | Approx. 300 | Approx. 400 | ||||||
Note: Effective from fiscal 2023, Daiwa House Modular Europe was reclassified from the Single-Family Houses segment to the Rental Housing segment. Accordingly, figures for fiscal 2022 | have been restated based on this new classification. | ||||||||
Total operating income excludes the effect of actuarial differences. |
Daiwa House Group Integrated Report 2023 41
Message from the CEO
Long-Term Vision and the 7th Plan
The Story of the Group's
Value Creation
Message from the CFO | Developing | Environmental Vision |
our Businesses | ||
Strengthening
our Bases
Governance
Financial Results,
Corporate Information
Business Overview
The Daiwa House Group has built a portfolio of businesses for continually enhancing the value of fundamental societal infrastructure for a long time to come and creating lifestyle culture rooted in regeneration by leveraging our distinctive strengths to generate cashflow with a circular value chain that creates, fosters, and repeats across time to create once again.
Single-Family Houses | Rental Housing | Condominiums | Commercial Facilities | Logistics, Business and | Environment and Energy | |||||
Corporate Facilities | ||||||||||
Houses sold | Rental housing units sold | ||
Create | In Japan 5,762 units | (in Japan) 32,224 | |
Overseas 6,332 units | Overseas development | ||
properties 13 | |||
Condominium units sold*1 | Construction projects 812*3 | Development site area of | ||
In Japan 3,003 units | logistics projects (accumulated) | |||
Overseas 1,333 units | 319 projects 12,202,977m2 | |||
Renewable energy generation equipment construction results (EPC) 2,706MW
Customers with whom we have | Units under management | Units under management | Leasing floorspace of sublease | |||||
Foster | existing relationships (in Japan) | 649,000 | 379,849 | areas within commercial facilities | ||||
Approx. 440,000 | Occupancy ratio 98% | 6,795,700 m2 | ||||||
Hotels under management 144 | ||||||||
Number of Renovations 53,369 | Number of Renovations 25,420 | Number of redevelopment | Main redevelopment projects | |||||
Revitalize | projects and other projects 46*2 | ALPARK Hiroshima | ||||||
iias Kasugai | ||||||||
Facilities under management (accumulated) (Daiwa House Property Management) 238
Main redevelopment projects Toyama public wholesale market redevelopment project
Renewable energy power plants: development and operating results (IPP)
385 sites 602MW
Note: Figures shown above are the results for FY2022. | Financial Highlights (business segments) P.115 |
*1 Total in Japan is for Daiwa House Industry and Cosmos Initia *2 Including projects for which a rights conversion plan has been approved *3 Number of facilities constructed by Daiwa House Industry (non-consolidated) |
Daiwa House Group Integrated Report 2023 42
Message from the CEO
Long-Term Vision and the 7th Plan
The Story of the Group's
Value Creation
Message from the CFO | Developing | Environmental Vision |
our Businesses | ||
Strengthening
our Bases
Governance
Financial Results,
Corporate Information
Delivering without delay products and services that customers truly need by grasping changes in society and lifestyles
Summary of business
As a pioneer of industrialized construction, we offer living environment based on our evolving, leading-edge technologies. Our flexible and tailored home building is named LiveStyle Design, under which we cater to various needs of residents and fulfill their unique requirements. A place to live in is where they truly live their lives. Staying in close to the life of customers, we work to offer housing as a stage for them to achieve abundance in life.
Sales (¥ billion) | Operating income (¥ billion) | ||||
Domestic | Overseas | Domestic | Overseas | 100.0 | |
1,250.0 | |||||
784.8 | 876.3 | 840.0 | 730.0 | 75.0 | |
46.5 | |||||
430.1 | 366.2 | ||||
38.3 |
Recognition of circumstances
Changes in lifestyles caused by COVID-19
Domestic Progress in initiatives aimed at achieving carbon neutrality Long-term decrease in new housing starts due to declining the number of households
Overseas
(the US)
Continued demand backed by population increase and stable economic growth
Concerns for rising interest rates Labor shortage, soaring material costs
318.0 | 34.0 | ||||||||||||||
520.0 | 23.4 | 36.8 | 17.6 | ||||||||||||
466.8 | 446.2 | 473.7 | 14.9 | 16.3 | 25.0 | ||||||||||
9.7 | |||||||||||||||
2021 | 2022 | 2023 | 2026 (FY) | 2021 | 2022 | 2023 | 2026 (FY) |
Business strategies
Strengthen ZEH proposals and expand wooden products | Expansion of overseas business centering |
Leverage digital tools to expand proposed plans and enhance operational efficiency | on the US |
Strengthen the built-for-sale housing business |
(Plan) | (Plan) | (Plan) | (Plan) |
Note: Effective from fiscal 2023, | Daiwa House Modular Europe was reclassified from the Single-Family Houses | ||
segment to the Rental Housing segment. Accordingly, figures for fiscal | 2022 have been restated based | ||
on this new classification. |
Daiwa House Group Integrated Report 2023 43
Message from the CEO
Long-Term Vision and the 7th Plan
The Story of the Group's
Value Creation
Message from the CFO | Developing | Environmental Vision |
our Businesses | ||
Strengthening
our Bases
Governance
Financial Results,
Corporate Information
Looking back at the first year of the 7th Plan and future outlook
In the first year of the 7th Plan, both sales and earnings increased due to the expansion of the US housing business.
In Japan, despite efforts in community-based business developments, both sales and earnings decreased amid harsh market conditions, reflecting 16 consecutive months of year- on-year declines in the number of owner-occupied housing starts from December 2021 to March 2023.
From January 2023, the Company worked to leverage digital technologies to strengthen its proposal-making capabilities, and it launched new initiatives, such as 3D plans when making initial proposals and the introduction of "LiveStyle Diagnosis" communication tool online. It also developed the industry's first single-familyhouse-specific delivery box equipped with an intercom with 24-hour security camera functionality. We also offer custom-built houses and built-for-sale houses that
sales and earnings in Japan, we expect overall sales and earnings to decline reflecting the impact of a rise in the number of cancellations and a weakening of orders in the US housing business due to mortgage rate hikes in the second half of fiscal 2022. Nevertheless, we see orders in the US housing business in 2023 are on a recovery trend.
Despite the tough market environment in Japan, we endeavoring to strengthen the built-for-sale housing business, expand our lineup of wooden products, and step up our marketing efforts in order to expand future performance.
Our aims in strengthening the built-for-sale housing
Houses sold in Japan (units)
business are to increase profitability by improving operational efficiency and to further expand our customer base and gain market share through providing high-quality housing products to non-landowners at affordable prices.
In regard to expanding wooden products and stepping up our marketing efforts, we see a growing need for wooden houses as customers become more environmentally aware- ness. We will expand our wooden housing product lineup to meet various needs of customers and offer a greater range of solutions tailored to their values.
Houses sold in the US (units)
solve customer issues and address changes in society, thereby expanding our renovation business.
Overseas, we operate the housing business in the smile zone which encompasses the eastern, southern, and western US states, where housing demand is expected to grow due to a rise in employment. During the second half of fiscal 2022, orders received slowed down due to repeated policy rate hikes. Nevertheless, given solid demand, we continued our sales activities and contributed significantly to our business performance, despite partial price adjustments.
In fiscal 2023, despite our forecast for an increase in both
Custom-built houses | Ranked 5th*1 | Equivalent to 18th*2 | |||||
Built-for-sale houses | in Japan | 10,000 | |||||
6,760 | (FY2022) | in the US | |||||
(FY2022) | |||||||
5,762 | 5,800 | ||||||
1,596 | |||||||
1,571 | 1,900 | 6,010 | 5,291 | ||||
4,476 | |||||||
5,164 | 4,191 | ||||||
3,900 | |||||||
2021 | 2022 | 2023 | (FY) | 2021 | 2022 | 2023 | 2026 (FY) |
(Plan) | |||||||
(Plan) | (Plan) | ||||||
*1 FY2022 Major house-builder ranking by Housing Industry News
*2 When the figures for the 3 companies (Stanley Martin, Trumark and CastleRock) in the 2022 total closings on 2023 Builder 100 are combined.
Daiwa House Group Integrated Report 2023 44
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Daiwa House Industry Co. Ltd. published this content on 17 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 October 2023 08:26:33 UTC.
