Financial Highlights

(Millions of yen)

  FY2016 FY2017 FY2018
 
Net sales Full year 3,512,909 3,795,992 4,000,000(Forecasts)
Operating income Full year 310,092 347,141 354,000(Forecasts)
Ordinary income Full year 300,529 344,593 352,000(Forecasts)
Net income attributable to
owners of the parent
Full year 201,700 236,357 237,000(Forecasts)
Total assets Full year 3,555,885 4,035,272 -
Net assets Full year 1,329,901 1,513,585 -
Net assets ratio Full year 36.8% 36.5% -
Net income per share (yen) Full year 304.14 355.87 356.52(Forecasts)
Book-value per share (yen) Full year 1,971.66 2,218.17 -

Note: Figures are rounded down to the nearest million yen, with the exception of the net assets ratio, net income per share, and net assets per share.

Net sales

Net sales

Operating income

Operating income

Net income attributable to owners of the parent

Net income attributable to owners of the parent

Total assets

Total assets

Net assets

Net assets

Net assets ratio

Net assets ratio

Net income per share

Net income per share

Book-value per share

Book-value per share

  • Note1: Amounts below 100 million yen are omitted.

The percentage figures for breakdown of net sales and operating income by segment

The percentage figures for breakdown of net sales by segment

The percentage figures for breakdown of operating income by segment

Single-Family Houses Business

In the Single-Family Houses Business segment, during the period under review, we earnestly addressed our role as a home builder and pursued community-based business projects to expand sales.

In our custom-built houses business, we focused marketing efforts on models in our xevoΣ (xevo sigma) single-family house series. These houses offer purchasers many years of dependable earthquake resistance—as well as homes that are comfortably warm in the winter and cool in the summer thanks to our proprietary external wall thermal insulation system—in addition to spacious interiors thanks to the extra-high (2.72 meter) ceilings.

We also focused on sales of single-family houses in our "skye" series—available in 3-story, 4-story, and 5-story versions, and expanded our lineup of house models with the introduction of dual-purpose houses in which a portion of the home can be rented out to a tenant or used as retail premises by the owner. For customers who are particularly discerning about design and specifications, we started up our "PREMIUM GranWood" Project, offering top-quality, fully customized wooden construction houses.

In addition, we put on sale the "Kaji Share House" (Chore-Sharing House), a single-family model for increasing dual-income households that incorporates various ideas to help cut the time required to do housework and reduce the mental stress involved. We also launched on the market the D's box, a new type of home-delivery locker designed to reduce the need for registered mail and package re-delivery. These products are part of our wide-ranging efforts to make a stronger contribution to addressing social issues.

During the period under review, we also made progress toward more fully incorporating the Internet of things (IoT) into our home products. By realizing internet connectivity among various household equipment and appliances, we aim to make our homes even more convenient for their owners and enable a more rewarding lifestyle. To this end, we initiated the "Daiwa Connect Project", under which we plan to expand the lineup of models in our "Connected Homes"* brand.

As a result, net sales for this segment amounted to 385,369 million yen (-1.3% year on year), while operating income came to 21,566 million yen (+11.8% year on year).

* Under the "Connected Homes" concept, we aim to offer a wide range of added value by utilizing data feedback on the way that home owners use the equipment and appliances installed in their homes. Hopefully, this will lead not only to better energy conservation, but also to more efficient performance of household chores and improved health monitoring.

Rental Housing Business

In the Rental Housing Business segment, we worked to strengthen our range of proposals for more effective use of landholdings, making optimal use of our comprehensive services covering everything from initial estimates of site-use potential through planning, design and construction to management support.

During the period under review, we took steps to acquire an expanded volume of orders for large-scale projects, including strengthening our efforts in three-story as well as medium- to high-rise rental housing properties.

We also developed and marketed a number of new products, including the SEJOUR DD-1, a built-for-sale house that a portion of house can be rented out to a tenant. The product comes with an attached dog house. This model is targeted at the residents of rental housing built by the Company and managed by Daiwa Living Co., Ltd.

In our rental housing management business, Daiwa Living expanded the number of options available to rental housing tenants in their D-room+ Optional Services package, which includes an e-book service and a movie choice service, among many others. By offering a wide variety of services to meet tenants' diverse lifestyle preferences, we were able once again to maintain high occupancy rates during the term under review.

As a result, net sales for this segment amounted to 1,030,834 million yen (+5.5% year on year), while operating income came to 106,683 million yen (+13.1% year on year).

Condominiums Business

In the Condominiums Business segment, we are working to offer products with higher added value for both our customers and local communities as a whole.

The sale of home units proceeded smoothly at our PREMIST Hibarigaoka*1 and PREMIST Yoyogi-Koen condominium projects (both in Tokyo), thanks to the combined advantages of easy access to central Tokyo and a lushly green natural environment.

Additionally, the sale of home units at the PREMIST Shonan Tsujido*2 condominium project (Kanagawa Pref.) went off very smoothly, with all 120 units put up for sale in Phase 1 being snapped up on the first day. The success of this marketing effort can be attributed to the fact that we offer residents a "smart" wellness service*3 utilizing IoT and artificial intelligence technologies, as well as the very convenient location of the property.

We also commenced the sale of home units in The Towers Frontier Sapporo*4, a condominium project that is directly connected to a large-scale shopping mall. This was part of our wider policy of focusing construction and sales efforts in provincial cities around Japan.

Group member Cosmos Initia Co., Ltd. embarked on a number of new ventures during the period under review, including the launch of the Japanese real estate industry's first property future-value estimation service employing artificial intelligence (AI) technology. This service, dubbed VALUE AI, is targeted at owners of single-building properties held for investment purposes, as well as customers considering the purchase of such properties. The system is capable of accurately forecasting the future value of real estate through the simulation of various investment plans.

In our condominium management business, Group member Daiwa LifeNext Co., Ltd. worked to provide an enhanced level of services for residents. This included the start-up of the "Online Condominium Association Administrative Meeting Service," which enables residents to hold meetings online using a PC, a smart phone, a tablet computer, or similar device.

As a result, net sales for this segment amounted to 285,051 million yen (+8.4% year on year), while operating income came to 13,328 million yen (-0.8% year on year).

*1. A joint project of Daiwa House Industry Co., Ltd., and Cosmos Initia Co., Ltd.

*2. A joint project among Daiwa House Industry Co., Ltd., Kanagawa Chuo Kotsu Co., Ltd., and Haseko Corporation.

*3. A health promotion service, combined IoT technologies and AI, and support services supervised by Sports Club NAS Co., Ltd. such as exercise proposals and others.

*4. A joint project among Daiwa House Industry Co., Ltd., Sumitomo Realty & Development Co., Ltd., and Daikyo Incorporated.

Existing Homes Business

In the Existing Homes Business segment, we took various steps to expand orders. These included strengthening our relations with owners of single-family houses and rental housing originally built by the Company, by offering property inspection services and also proposing renovation plans to extend home warranty periods. We also worked to expand our business lines, including starting to offer proposals for the renovation and maintenance of corporate-owned properties.

We also started up the new group-wide brand "Livness", which enables us to pool the data on existing housing business by our various member companies. This facilitates the making of renovation proposals as well as property purchase and resale plans to suit the individual requirements of each customer.

As a result, net sales for this segment amounted to 112,148 million yen (+6.2% year on year), while operating income came to 13,228 million yen (+1.1% year on year).

Commercial Facilities Business

In the Commercial Facilities Business segment, we made facility-opening proposals that match the business strategies of corporate tenants, as well as a wide variety of proposals that made optimal use of the unique characteristics of each region and received particularly firm levels of orders. We also took a number of measures to expand the scope of our business. These included focusing management resources on development in urban areas as well as large-scale projects, and the sale of properties to customers looking for real estate to purchase for investment purposes. In these projects, Daiwa House handled everything from land acquisition through construction to leasing out to tenants.

Also, iias-Takao—a large-scale shopping mall within Takao SakuLa City (Tokyo)— was opened. This is a multipurpose complex that incorporates both residences (single-family houses and condominiums) and commercial facilities.

As a result, net sales for this segment amounted to 620,869 million yen (+9.0% year on year), while operating income came to 114,178 million yen (+13.3% year on year).

Logistics, Business and Corporate Facilities Business

In the Logistics, Business and Corporate Facilities Business segment, during the period under review, we worked to enhance the Group's business scope by constructing a variety of facilities to suit the differing business needs of our corporate customers, and by providing total support services that enable customers to most effectively utilize their assets.

In the area of logistics facilities, we commenced construction of 19 new facilities around the country, including DPL Sakado (Saitama Pref.), which when completed will be the largest multi-tenant logistics facility built by Daiwa House Industry in terms of floorspace. Additionally, as well as forming a capital and business alliance with GROUND Inc., which possesses sole distribution rights to the Butler®*1,2 Robotic Logistics System, we also acquired acca international Co., Ltd., a company that possesses know-how in the field of logistics fulfillment support*3 for enterprises in the apparel industry, as a group company. These moves were part of our larger plan to build a next-generation platform that will make full use of advanced technologies to support logistics operations. Going forward, across the entire logistics field we plan to continue developing high value-added, next-generation logistics facilities with the aim of addressing issues that require solutions.

In the field of medical and nursing care facilities, we continued working to strengthen our lineup of solutions to management issues facing healthcare corporations and the operators of such facilities. These include the reconstruction or relocation of hospitals, and the development of projects that combine such facilities with homes for senior citizens.

In the field of production facilities, we held a number of seminars for corporate customers involved in food processing, and have been making proposals for the construction of facilities compliant with HACCP*4 standards, ahead of the mandatory introduction of the HACCP system.

During the period under review, Fujita Corporation enjoyed a steady inflow of orders in both the construction and civil engineering fields thanks to the receipt of orders for large-scale projects. In the Japanese market, Fujita won orders for logistics facilities and infrastructure, among others. Overseas, it won orders for accommodations and automotive-related factories, among others.

As a result, net sales for this segment amounted to 850,214 million yen (+2.6% year on year), while operating income came to 88,915 million yen (+12.6% year on year).

*1. The Butler System involves the use of a robot that moves along the warehouse floor and slides underneath the detachable shelves holding the merchandise, transporting the whole shelf to the operator's station, as opposed to the traditional concept of removing the goods from the shelf and transporting the goods alone. This system facilitates greater labor-saving at logistics facilities.

*2. Butler® is a registered trademark of GROUND Inc.

*3. In the mail-order business, a "logistics fulfillment support" company provides necessary management and control services at all stages of the process from receipt of the order for the goods to their delivery to the customer.

*4. Hazard analysis and critical control points (HACCP) is a systematic preventive approach to food safety in production and preparation processes, in which the dangers posed by contamination by microorganisms at each stage of the process are analyzed and managed.

Other Businesses

In our home centers business, during the period under review Royal Home Center Co., Ltd. opened three more full-lineup home centers including the Royal Home Center Nishinomiya Chuo (Hyogo Pref.), which not only meet the needs of professionals in the construction and interior decoration trades but also appeal to female customers and children. This brings the numbers of home center nationwide to 59. In addition to the sale of hardware, these stores also offer our customers a wide range of information that helps make their daily lives easier, as well as various home renovation proposals.

In our logistics business, during the period under review Daiwa Logistics Co., Ltd. opened three new facilities, notably the Arashiyama Logistics Center (Saitama Pref.) and the Komono Logistics Center (Mie Pref.), bringing the number of centers operated by this company to 82 nationwide. This extensive network of outlets enables the company to fully meet customer needs.

In our fitness club business, during the period under review Sports Club NAS Co., Ltd. opened "RUNNING BASE Osaka Castle"—located within Osaka Castle Park, which is a favorite spot for runners. This facility provides a wide range of support services for local running enthusiasts. This was just one of a number of new business lines initiated by the company.

In our city hotels business, Daiwa Royal Co., Ltd. continued to pursue its policy of opening new hotels that make optimal use of unique regional characteristics and the attractions of each hotel's immediate locality. During the period under review, the company opened the Daiwa Roynet Hotel Fukuoka Nishinakasu (Fukuoka Pref.), located within walking distance of Fukuoka City's Tenjin-Nakasu downtown area.

As a result, net sales for this segment amounted to 637,123 million yen (+24,1% year on year), while operating income came to 23,010 million yen (+36.5% year on year).

Notes:

1. Net sales for each segment include internal (inter-segment) sales and transfers in addition to sales to external customers.

2. The above monetary amounts are exclusive of consumption tax, etc.

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