The percentage figures for breakdown of net sales and operating income by segment
- Note: Net sales and Operating income by segment include intragroup transactions between segments
Single-Family Houses Business
In the Single-Family Houses Business segment, we earnestly addressed our role as a home builder to build our customers' homes and pursued community-based business projects to expand sales.
In the domestic business, the business division-based system started its full-scale operation in April 2021. Based on our founder’s spirit, “Don’t do things because they will make a profit, but because they will be of service to society,” we defined the mission of our single-family houses business as “Create ‘lasting happiness’ through housing.” In addition, under the vision of “LiveStyle Design―Transforming home from a place to return to a place to ‘live’―,” and staying in close to the life of each customer, we will design “the way they can truly live their lives” to help customers pursue their lifestyle goals. Based on the new organizational system and the mission and vision, we have been proactively working to resolve our customers' issues and propose new values with our rich product lineup and proposals for living that cater to changes in society and people’s lives. The lineup includes “Lifegenic” which offers a fun and easy home designing experience online, and “Comfortable workplace” and “Connecting work pit” as a proposal of our unique telework style, as well as “Kaji Share House” that helps facilitate sharing of household chores among family members.
“Kaji Share House” won the second “Japan Child Care Advocate Grand Prize” sponsored by JCFS in July 2021. Going forward, we will work to reform the value chain under the business division-based system including relevant Group companies. Building on “Homes of Daiwa House” as our fundamental, we strive to propose values that respond quickly to the changes in life stages of customers, including suggestions on furniture, finding homes for families, home renovations, relocation, and sale, in addition to providing new housing.
In our overseas operations, the sales of the Box Hill project, which is currently progressing in the suburbs of Sydney in Australia, remained strong, despite the impact of a strict lockdown on the construction progress. In the United States, both Stanley Martin Holdings, LLC and Trumark Companies, LLC performed well, supported by growing demand for housing in suburban areas due to lifestyle changes caused by COVID-19. Also, futures price of timber has stabilized, and concerns for a steep rise in prices of lumber and other materials started to clear. In September 2021, Daiwa House USA Holdings Inc. made CastleRock Communities LLC its subsidiary, Stanley Martin Holdings, LLC entered into a business transfer contract with Avex Homes, LLC and its associated companies, in an effort to further expand our business areas.
As a result, net sales for this segment amounted to 273,867 million yen (+12.6% year on year), while operating income came to 13,321 million yen (+64.7% year on year).
Rental Housing Business
In the Rental Housing Business segment, we have been proposing and supporting rental housing management that leads to the maximization of the asset value for owners through the provision of homes of choice for residents where they may want to continue living in for a long time. In a social situation where face-to-face meetings became difficult due to the impact of COVID-19, we held regular online seminars to increase opportunities for owners to receive information and deepen understanding of the latest trends in land use, rental housing markets, etc. We also encouraged the utilization of “Green Housing Point System,” a measure to support housing acquisition, and promoted proposals of non-residential properties and sales of rental properties for inheritance tax purposes.
Due to relocation hesitancy of tenants during the COVID-19 pandemic, Daiwa Living Management Co., Ltd. maintained a high occupancy ratio mainly in properties coming equipped with Internet access, which were highly demanded by tenants.
As a result, net sales for this segment amounted to 496,966 million yen (+6.1% year on year), while operating income came to 45,285 million yen (+16.1% year on year).
In the Condominiums Business segment, we have provided high value-added condominiums that offer not only the asset value for society and customers but also considerations to the SDGs and contribution to society, while reducing environmental impact. We also strove to provide our condominium building management service through an integrated system to support a safe residential experience for customers, with peace of mind.
In the domestic business, sales of “PREMIST TOWER Shin-Sapporo” (Hokkaido Pref.), a condominium selected as the Company’s first "ZEH-M Superhigh-rise” building by the Ministry of Economy, Trade and Industry, are steadily progressing, thanks to its excellent traffic convenience of a direct connection to the station and the enhanced urban functions enabled by a large-scale complex development.
Also, sales of “PREMIST Ounoyama Park” (Okinawa Pref.) are steadily progressing owing to the adoption of new sales approach, such as giving an online tour to customers outside the prefecture, in addition to using virtual reality (VR) to reproduce the living space and publishing on the website extensive information about the property, instead of a physical show apartment.
In our overseas operations, in mainland China where the spread of COVID-19 was contained at a relatively early date, the construction of “Grace Residence in Nantong, Jiangsu” and “Grace Residence in Changzhou, Jiangsu,” is proceeding smoothly towards their handover, with all of their units sold out.
As a result, net sales for this segment amounted to 152,658 million yen (+14.3% year on year), while operating income of 2,806 million yen was recorded which compares with an operating income of 234 million yen for the corresponding quarter of the previous fiscal year.
Existing Homes Business
In the Existing Homes Business segment, we worked to strengthen the relationship with owners of single-family houses and rental housing constructed by the Company through building inspections. We also strengthened our efforts to propose renovations required for extended warranty. At the same time, to our corporate customers, we focused on proposing maintenance of their business assets and sought to increase orders.
Also, in our Livness business, we worked to inject greater vitality into the market for good-quality previously-owned homes and also held online seminars as a new form of marketing under the COVID-19 pandemic.
In the single-family house division, we expanded our Livness business premises to 62 locations nationwide to meet the needs of a wide range of customers, particularly owners.
As a result, net sales for this segment amounted to 64,245 million yen (+12.9% year on year), while operating income came to 4,741 million yen (+18.3% year on year).
Commercial Facilities Business
In the Commercial Facilities Business segment, we designed and proposed that matched tenant corporations' strategic needs and also took into account the impact of the COVID-19 pandemic. We offered various plans to make the best of the particular characteristics of each region and meet a wide range of needs.
In particular, we strengthened our efforts in the field of large-scale projects. Also, for customers looking for options in the purchase of real estate for investment purposes, we took steps to expand our services by strengthening strategies to encompass land acquisition, construction, and leasing-out to tenants.
We opened “iias Kasugai” as a development plan of a large-scale shopping mall with 60 tenants in Kasugai City, Aichi Prefecture in October 22, 2021, and a large-scale renewal of the shopping center “ALPARK” (planned to be fully renovated and reopened in the spring of 2023, with 160 stores) operated by our group company, Daiwa House Realty Mgt. Co., Ltd. In these ways, we combine and utilize our management assets to develop multipurpose facilities that meet our customers' needs.
However, due to a decrease in sales of development properties, etc., net sales for this segment amounted to 393,815 million yen (-5.0% year on year), while operating income came to 62,335 million yen (-9.4% year on year).
Logistics, Business and Corporate Facilities Business
In the Logistics, Business and Corporate Facilities Business segment, 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 utilize their assets most effectively.
In the field of logistics facilities, we began construction of 9 facilities nationwide, leveraging our extensive experience and know-how to provide the essential back-up to our customers’ logistics strategies. Particularly notable among these newly commenced projects is the “DPL Kuki Miyashiro” in Saitama Prefecture.
In the field of medical and nursing care facilities, we targeted hospitals whose existing facilities are showing signs of aging and which do not meet current earthquake resistance standards, making proposals for reconstruction or relocation. We also strengthened our lineup of solutions to meet the management needs of healthcare corporations, such as those operating homes for senior citizens or multipurpose nursing care facilities.
In the field of support for offices, manufacturing plants, and so on, we have strengthened our efforts to promote commercialization of and attract companies to the industrial parks developed by Daiwa House. We also held ZEB online seminars to promote energy-efficient buildings toward helping realize a decarbonized society.
Daiwa House Property Management Co., Ltd. manages and operates mainly the logistics facilities developed by Daiwa House. It entered into new property management (PM) and building management and maintenance (BM) contracts with a total of 19 logistics facilities, including “D Project Tsukuba Yatabe” (Ibaraki Pref.) and “DPL Misato II” (Saitama Pref.), bringing the cumulative number of buildings under its management to 188, or approximately 6.46 million square meters.
As a result, net sales for this segment amounted to 492,867 million yen (+5.2% year on year), while operating income came to 56,671 million yen (+8.4% year on year).
In the logistics business, Daiwa Logistics Co., Ltd. is further strengthening its infrastructure by embarking on the development of new logistics bases in Ichinomiya City, Aichi Prefecture; Saitama City, Saitama Prefecture; Higashi-Osaka City, Osaka Prefecture; and Hiroshima City, Hiroshima Prefecture, while working to increase operational productivity at logistics sites through digitalization.
In the IT business of Daiwa LogiTech Inc., sales and profit rose mainly due to an increase in projects related to automated equipment, as investments by client companies remained robust.
In the logistics business, sales and profit also increased as a result of accommodating an increase in cargo volume experienced by client companies with the expansion of floor space of warehouses, amidst the booming EC logistics market on the back of growing stay-at-home consumption.
In the fitness club business, Sports Club NAS Co., Ltd. opened “Sports Club NAS Higashi Omiya (Annex)” (Saitama Pref.).
However, due to a decrease in contract work in the environmental energy business, etc., net sales for this segment amounted to 243,946 million yen (-1.7% year on year), while operating income came to 4,303 million yen (-42.0% year on year).
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.