Daiwa House Industry : May 12, 2023 Financial Results

Summary of Financial Results (Unaudited)

for the Fiscal Year Ended March 31, 2023 [Consolidated]

(From April 1, 2022 to March 31, 2023)

[Japanese GAAP]

		May 12, 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: [e-mail]
Scheduled Date of Ordinary General Meeting of Shareholders: June 29, 2023
Scheduled Date of Filing Securities Report:	June 29, 2023
Scheduled Date of Commencement of Dividend Payment:	June 30, 2023
Supplemental documents for the financial results provided:	Yes
Results briefing for the term under review provided:	Yes (for institutional investors and securities analysts)

(Amounts below one million yen are omitted)

1. Consolidated Results of Operation for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 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
Fiscal year ended:	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%
March 31, 2023	4,908,199	10.6	465,370	21.4	456,012		21.2	308,399	36.9
March 31, 2022	4,439,536	7.6	383,256	7.3	376,246		11.4	225,272	15.5

Note: Comprehensive income: Fiscal year ended March 31, 2023: 352,742 million yen (31.1%)
	Fiscal year ended March 31, 2022: 269,148 million yen (25.9%)
	Basic net income	Diluted net income	Return on equity	Ordinary income to	Operating income
	per share	per share	(ROE)	total assets ratio	to net sales ratio
Fiscal year ended:	Yen	Yen	%	%	%
March 31, 2023	469.12	―	14.3	7.8	9.5
March 31, 2022	343.82	―	11.7	7.1	8.6
(Reference) Equity in earnings of affiliates
Fiscal year ended March 31, 2023: 844 million yen; Fiscal year ended March 31, 2022: -6,810 million yen

(2) Consolidated Financial Conditions

	Total assets	Net assets	Net assets ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
March 31, 2023	6,142,067	2,388,914	37.2	3,466.86
March 31, 2022	5,521,662	2,111,385	36.6	3,081.07

(Reference) Net assets ratio = (Net assets - Non-controlling interests)/Total assets×100

(Net assets - Non-controlling interests): March 31, 2023: 2,284,212 million yen; March 31, 2022: 2,020,157 million yen

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents,
	operating activities	investing activities	financing activities	end of the year
Fiscal year ended:	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2023	230,298	(505,181)	287,452	346,154
March 31, 2022	336,436	(467,423)	24,427	326,250

Summary of Financial Results for the Fiscal Year Ended March 31, 2023

Daiwa House Industry Co., Ltd. (code #1925)

2. Dividends

		Dividend per share		Total	Dividend	Dividends to
	End of	End of	End of	Fiscal
	Annual	dividends	payout ratio	net assets ratio
	1st quarter	2nd quarter	3rd quarter	year-end	(annual)	(consolidated)	(consolidated)
	(June 30)	(Sept. 30)	(Dec. 31)	(Mar. 31)
Fiscal year:	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
ended March 31,	-	55.00	-	71.00	126.00	82,611	36.6	4.3
2022
ended March 31,	-	60.00	-	70.00	130.00	85,653	27.7	4.0
2023
ending March 31,	-	63.00	-	72.00	135.00		35.6
2024 (forecasts)

Note: Breakdown of annual dividend forecast for the fiscal year ended March 2022

Ordinary dividend: 116 yen

Commemorative dividend: 10 yen (For the 100th anniversary of the birth of Nobuo Ishibashi, our founder)

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	379.44
March 31, 2024

Note: Amortization of actuarial differences for retirement benefits is not expected in the above operating income.

Notes:

1. Changes in Significant Subsidiaries for the Fiscal Year under Review (This refers to changes in specified subsidiaries associated with changes in the scope of consolidation): None
2. Changes in Accounting Policies Applied, Changes in Accounting Estimates and Retrospective Restatement

1. Changes in accounting policies applied due to amendment of accounting standards: Yes
2. Changes in accounting policies due to reasons other than 1): None
3. Changes in accounting estimates: None
4. Retrospective restatement: None

Note: Please refer to the section of "3. Consolidated Financial Statements and Main Notes (5) Notes (Changes in Accounting Policies)" of "the Attached Material" on page 20 for the details.

(3) Number of Issued and Outstanding Shares (Common Stock)
1)	Number of shares at the end of the fiscal year (including treasury stock)
		As of March 31, 2023	666,290,951 shares	As of March 31, 2022	666,238,205 shares
2)	Number of treasury stock at the end of the fiscal year
		As of March 31, 2023	7,419,650 shares	As of March 31, 2022	10,570,077 shares
3)	Average number of shares for the fiscal year
		Fiscal year ended	657,404,560 shares	Fiscal year ended	655,199,010 shares
		March 31, 2023	March 31, 2022

Note: For the number of shares used as the basis of calculating basic net income per share (consolidated), please refer to the section of "3. Consolidated Financial Statements and Main Notes (5) Notes to Consolidated Financial Statements, Per Share Information" of "the Attached Material" on page 25 for the details.

Summary of Financial Results for the Fiscal Year Ended March 31, 2023

Daiwa House Industry Co., Ltd. (code #1925)

(Reference) Summary of Non-Consolidated Results of Operation Non-Consolidated Results of Operation for the Fiscal Year Ended March 31, 2023 (From April 1, 2022 to March 31, 2023)

(1) Non-Consolidated Business Results				(% figures represent year-on-year changes)
		Net sales		Operating income		Ordinary income		Net income
	Fiscal year ended:	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
	March 31, 2023	2,006,066		1.5	231,631		-3.8	261,696		2.7	205,293	24.1
	March 31, 2022	1,976,165		6.0	240,657		6.3	254,870		-11.6	165,381	-9.4
		Basic net income	Diluted net income
		per share		per share
	Fiscal year ended:			Yen			Yen
	March 31, 2023			312.28			―
	March 31, 2022			252.41			―
(2) Non-Consolidated Financial Conditions
		Total assets		Net assets		Net assets ratio		Net assets per share
	Fiscal year ended:	Millions of yen	Millions of yen			%		Yen
	March 31, 2023	3,876,635	1,677,463			43.3		2,545.97
	March 31, 2022	3,464,449	1,560,626			45.0		2,380.21

(Reference) Net assets ratio = (Net assets - Non-controlling interests)/Total assets×100

(Net assets - Non-controlling interests): March 31, 2023: 1,677,463 million yen; March 31, 2022: 1,560,626 million yen

• 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 earnings forecasts)

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.

For the suppositions that form the assumptions for earnings forecasts, please refer to the section of "1. Qualitative Information Regarding Consolidated Results for the Fiscal Year under Review (4) Future Outlook" on page 10 of "the Attached Material."

(Obtaining supplementary explanatory materials)

The Company plans to hold a briefing for institutional investors and securities analysts on May 12, 2023. Relevant financial statements to be handed out at the briefing will be posted on our official website at the same time.

Summary of Financial Results for the Fiscal Year Ended March 31, 2023

Daiwa House Industry Co., Ltd. (code #1925)

Contents of the Attached Material

1. Qualitative Information Regarding Consolidated Results for the Fiscal Year under Review	4
(1)	Earnings Results	4
(2)	Financial Conditions	8
(3)	Cash Flow Position	9
(4)	Future Outlook	10
2. Basic Approach to Selection of Accounting Standards	10
3. Consolidated Financial Statements and Main Notes	11
(1)	Consolidated Balance Sheets	11
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	13
	Consolidated Statements of Income	13
	Consolidated Statements of Comprehensive Income	15
(3)	Consolidated Statements of Changes in Net Assets	16
(4)	Consolidated Statements of Cash Flows	18
(5)	Notes to Consolidated Financial Statements	20
	Notes on Premise of Going Concern	20
	Changes in Accounting Policies	20
	Segment Information	21
	Per Share Information	25
	Significant Subsequent Events	26

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Summary of Financial Results for the Fiscal Year Ended March 31, 2023

Daiwa House Industry Co., Ltd. (code #1925)

Key Performance Indicators

1. Performance Indicators

	Fiscal year	Fiscal year	Fiscal year	Fiscal year	Forecasts for
	fiscal year
	ended	ended	ended	ended
Fiscal years	ending
March 31,	March 31,	March 31,	March 31,
	March 31,
	2020	2021	2022	2023
	2024
Net sales (millions of yen)	4,380,209	4,126,769	4,439,536	4,908,199	4,920,000
Cost of sales (millions of yen)	3,510,002	3,299,886	3,574,853	3,953,004	―
Selling, general and administrative	489,091	469,761	481,425	489,824	―
expenses (millions of yen)
Operating income (millions of yen)	381,114	357,121	383,256	465,370	380,000
Ordinary income (millions of yen)	367,669	337,830	376,246	456,012	354,000
Net income attributable to owners of the	233,603	195,076	225,272	308,399	250,000
parent (millions of yen)
Basic net income per share (yen)	351.84	297.18	343.82	469.12	379.44
Return on equity (ROE) (%)	14.1	11.0	11.7	14.3	―
Ordinary income to total assets ratio (%)	8.2	7.0	7.1	7.8	―
Dividend per share (yen)	115	116	126	130	135
(of which interim dividend per share)	(55)	(50)	(55)	(60)	(63)
Total annual dividends (millions of yen)	76,375	75,892	82,611	85,653	―
Dividend payout ratio (%)	32.7	39.0	36.6	27.7	35.6
Dividends to net assets ratio (%)	4.6	4.3	4.3	4.0	―
Total assets (millions of yen)	4,627,388	5,053,052	5,521,662	6,142,067	―
Net assets (millions of yen)	1,773,388	1,893,504	2,111,385	2,388,914	―
Net assets ratio (%)	37.3	36.3	36.6	37.2	―
Net assets per share (yen)	2,600.82	2,805.09	3,081.07	3,466.86	―
Depreciation (millions of yen)	75,207	78,403	100,328	113,464	116,000
Net increase in property, plant and	373,851	372,904	425,807	518,143	480,000
equipment and intangible assets
(millions of yen)
Cash flows from operating activities	149,651	430,314	336,436	230,298	―
(millions of yen)
Cash flows from investing activities	(317,273)	(389,980)	(467,423)	(505,181)	―
(millions of yen)
Cash flows from financing activities	169,128	102,731	24,427	287,452	―
(millions of yen)
Cash and cash equivalents, end of year	276,068	416,321	326,250	346,154	―
(millions of yen)

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