Financial Highlights

(Millions of yen)

  FY2016 FY2017 FY2018
 
Net sales Full year 3,512,909 3,795,992 4,000,000(Forecasts)
1Q 798,470 817,439 902,396
Operating income Full year 310,092 347,141 354,000(Forecasts)
1Q 61,708 72,827 75,332
Ordinary income Full year 300,529 344,593 352,000(Forecasts)
1Q 60,023 74,284 77,059
Net income attributable to
owners of the parent
Full year 201,700 236,357 237,000(Forecasts)
1Q 39,761 50,642 52,410
Total assets Full year 3,555,885 4,035,059 -
1Q 3,198,293 3,605,107 4,023,746
Net assets Full year 1,329,901 1,513,585 -
1Q 1,193,936 1,347,233 1,514,900
Net assets ratio Full year 36.8% 36.5% -
1Q 36.9% 36.6% 36.6%
Net income per share (yen) Full year 304.14 355.87 356.45(Forecasts)
1Q 59.94 76.31 78.83
Book-value per share (yen) Full year 1,971.66 2,218.17 -
1Q 1,781.10 1,987.26 2,217.22

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 on the marketing of three models: the xevoΣ (zevo sigma), a single-family house, which offers resistance against repeated strong earthquakes as well as extra comfort thanks to its external wall thermal insulation system and the spaciousness provided by its 2.72-meter-high ceilings; the xevo GranWood, a wooden house; and the “skye”, a single-family house that comes in three-, four-, and five-story versions. In addition to single-family houses, we also expanded our menu of housing models, including dual-purpose houses, which feature a portion that can be rented out to a tenant or used as a retail outlet by the owner.

We also put more effort into marketing the “Kaji Share House” (Chore-Sharing House), a single-family model targeting the increasing number of dual-income households, which incorporates various ideas to help cut the time required to do housework and reduce the mental stress involved, and the D's box, a new type of home-delivery locker designed to reduce the need for re-delivery, an urgent task in logistics services. In these ways, we strengthened our efforts to address social issues.

As a result, net sales for this segment amounted to 69,468 million yen (-11.2% year on year), while operating income came to 818 million yen (-71.9% year on year).

Rental Housing Business

In the Rental Housing Business segment, during the period under review, 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.

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 launched the Séjour Cube-II and Séjour Ott’s Cube-III rental housing building models. These feature a unique zigzag external shape arranged in what we call the Flying Geese pattern, making best use of the configuration of the site. We also began marketing the Du-Smica (*1), a type of rental housing targeting dual-income households, the number of which has been increasing in recent years, featuring various ingenious ideas to help residents make the most of the space available when tidying up and cut down on the time required for housework. In these and other ways, we worked to expand both our product lineup and the menu of specifications that will be attractive to prospective tenants.

Our Silent Hybrid Slab 50 (*2), a sound-insulating floor system has been employed in a lightweight steel-beam structure for Daiwa House’s rental housing products since 2012. It has been very well received on the market and has been certified by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) in accordance with the provisions of the Housing Quality Assurance Act relating to countermeasures against “heavy-weight floor impact sound,” under the special evaluation method (*3) as Grade 5 (the highest possible grade, equivalent to LH-50 grade). This is the first such certification received by a Japanese home maker.

As a result, net sales for this segment amounted to 241,840 million yen (+2.4% year on year), while operating income came to 19,350 million yen (-3.7% year on year).

*1. We have incorporated the additional concepts of “making housework easier” and “easier tidying up” to the existing features (“safety & security,” “storage space,” “beauty,” and “design”) of our “SW” (Safety and Security ‘S’ for Women ‘W’) rental housing products aimed at female tenants and anti-crime features.

*2. Jointly developed and joint certification acquired with M-Tec Co., Ltd. Further improved and certified following initial launch.

*3. Under the Japanese housing performance indication system, evaluation of indicated performance is carried out according to the official Evaluation Method Standards, but for the evaluation of housing employing special structures, which are not covered by the Evaluation Method Standards, certification is conducted by MLIT on a case-by-case basis as an exception to the normal evaluation procedure. Regarding countermeasures against “heavy-weight floor impact sound,” the Evaluation Method Standards assume a ferroconcrete structure, and as there are no performance evaluation standards for the boundary floor separating the housing units above and below used in our lightweight steel-frame structures, we were issued with certification under a special evaluation method.

Condominiums Business

In the Condominiums Business segment, during the period under review, we worked to expand our supply net over the entire country and to design and develop condominium buildings that will provide a high degree of added value for both our customers and society as a whole.

In condominium sales in the Tokyo area, the sale of units in our PREMIST Mizonokuchi (Kanagawa Pref.) went off very smoothly, thanks to the twin attractions of a location giving easy access to central Tokyo and the overall daily living convenience offered by the development's immediate environment.

In Hiroshima, we commenced the sale of units in the PREMIST Aioi-dori Riverside project, which faces Aioi-dori (a famous street close to the center of Hiroshima) on one side and the Temma River on the other side. This was just one of a number of our marketing drives in regional cities.

Group member Cosmos Initia Co., Ltd. commenced the sale of units in the Initia Urayasu Grand Place (Chiba Pref.). This condominium development offers a minimum of 70 sq.m. of space in all living units, which also feature multifunctional “family closets.” Additionally, the common-use space features a book-sharing corner and a “sneaker laundry,” among other attractions. Thanks to these features, the project has enjoyed favorable sales.

As a result, net sales for this segment amounted to 44,417 million yen (+15.0% year on year). Operating loss came to 659 million yen, which compares with an operating loss of 800 million yen for the corresponding quarter of the previous fiscal year.

Existing Homes Business

In the Existing Homes Business segment, during the period under review, we maintained our policy of strengthening our relationship with the owners of single-family houses and rental housing built by the Company by means of regular inspections (including a maintenance and renovation diagnosis service). In particular, we strengthened our lineups of renovation proposals for owners of homes approaching the end of their warranty period, including warranty extensions, as well as renovation and maintenance proposals for corporate owners of properties. This initiative succeeded in expanding our orders.

We also held nationwide seminars for home owners and our corporate business partners regarding our new Groupwide “Livness” brand—an existing home sale and purchase service—to improve the circulation of pre-owned housing. This was one of a number of measures to meet the wide range of user needs in the field of existing homes, including buying, selling, and renovation.

As a result, net sales for this segment amounted to 23,571 million yen (+3.8% year on year), while operating income came to 3,132 million yen (+36.9% year on year).

Commercial Facilities Business

In the Commercial Facilities Business segment, during the period under review, 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. We also took a number of measures to expand the scope of our business. In particular, we strengthened our efforts in the field of large-scale projects such as hotels and commercial buildings. Also, for customers looking for options in the purchase of real estate for investment purposes, we took steps to expand our services to encompass land acquisition, construction, and leasing-out to tenants. Thanks to these moves, our level of order receipts held firm.

As a result, net sales for this segment amounted to 153,456 million yen (+16.0% year on year), while operating income came to 27,172 million yen (+19.9% 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 field of logistics facilities, during the term we commenced construction of new facilities at seven sites around Japan. We also started operation of the Intelligent Logistics Center PROTO within one of our existing logistics facilities. PROTO is a new type of logistics sharing model (*1) that fully leverages AI, IoT, and robotics technologies.

In the area of medical and nursing care facilities, we marketed proposals for the rebuilding of hospitals that had been built prior to the introduction of the current earthquake-resistance standards, as well as proposals for the construction of homes for senior citizens. In addition, we also became involved in the construction of nurse training facilities to address the serious problem of a shortage of qualified nursing staff.

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 (*2) standards, ahead of the mandatory introduction of the HACCP system.

Daiwa House Industry also collaborated with the municipality of Kawasaki (Kanagawa Pref.) in the KING SKYFRONT (*3). This project—whose urban development theme is to attract large numbers of companies and talented people, and to facilitate exchange—aims to be an international strategic base which will group together leading-edge companies and research institutions in the life sciences field. The construction of a hotel and two research-use buildings is completed as the primary development stage.

As a result, net sales for this segment amounted to 248,320 million yen (+25.3% year on year), while operating income came to 29,995 million yen (+3.7% year on year).

*1. This sharing model allows three companies – airCloset, Inc. (engaged in online services), waja Co., Ltd. (operation of e-commerce and e-commerce logistical support), and Tokyo Otaku Mode Inc. (e-commerce, online media and online services) – to share the same space, with the same staff, equipment and system.

*2. 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.

*3. This project is being constructed on the site of a former factory of Isuzu Motors. Daiwa House acquired Section A in June 2014. A hotel and five research-use buildings are to be constructed, with completion scheduled for fiscal 2021.

Other Businesses

During the period under review, in our home centers business, Royal Home Center Co., Ltd. opened the Royal Home Center Adachi-Shikahama (Tokyo). This facility houses both the Royal Pro Working store (offering an extensive lineup of products to meet the needs of construction-site staff) and Animal City, a pet store that handles more than 240 different types and breeds of pets. Our nationwide network of 59 stores continues to offer customers an array of useful information relating to everyday life, as well as proposals for home improvement.

In our resort hotel business, Daiwa Royal Hotel City Co., Ltd. (established in June 2017 as a subsidiary of Daiwa Resort Co., Ltd.) opened two new-style establishments in Osaka City under the brand name Daiwa Royal Hotel D-CITY, catering particularly to the preferences of Japanese female guests as well as tourists from overseas. During the same term, the Daiwa Royal Hotel Grande Kyoto was opened as the company's new flagship hotel.

In our fitness club business, Sports Club NAS Co., Ltd. opened the Sports Club NAS Nishi-Kasai (Tokyo), featuring the company's first women-only floor under the name of BEAUTY AREA.

As a result, net sales for this segment amounted to 149,217 million yen (+6.8% year on year), while operating income came to 5,783 million yen (-15.1% 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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