Message from the Management
-- To all our shareholders and investors --

In the results for FY2025, the final year of the 7th Medium-Term Management Plan, net sales, operating income, ordinary income, and net income all reached record highs.

In the fiscal year ended March 31, 2026, the global economy maintained moderate growth, mainly in major economies; however, the outlook remained uncertain due to trade policy developments and geopolitical risks such as deterioration in the Middle East situation since February 2026. In the Japanese economy, while consumer spending remained resilient against the backdrop of improved employment and income conditions, the impact of factors such as inflation, interest-rate trends and exchange rate fluctuations lengthened the time required for a full-fledged recovery.

In the domestic housing market, the number of new constructions starts from April 2025 to March 2026 decreased year on year overall, as owner-occupied housing, rental housing, and built-for-sale houses all decreased. In the general construction market, the total floor area of new constructions starts decreased year on year as offices, stores, factories and warehouses decreased, resulting in a year-on-year decrease in the overall.

Amid this operating environment, the Daiwa House Group recorded consolidated net sales of 5,576,861 million yen (+2.6% year on year) for the fiscal year ended March 2026. Operating income came to 614,879 million yen (+12.6% year on year), ordinary income came to 571,971 million yen (+10.9% year on year), while net income attributable to owners of the parent amounted to 350,568 million yen (+7.8% year on year). The Group achieved its net sales and operating income targets for the fiscal year ending March 31, 2027, which was planned as the final fiscal year in the 7th Medium-Term Management Plan, one year ahead of schedule.
Operating income above includes 115,675 million yen gain on amortization of actuarial differences for retirement benefits, etc., and operating income excluding actuarial differences, etc. amounted in 499,203 million yen (+12.2% year on year).

We have decided to postpone the announcement of the 8th Medium-Term Management Plan, which is scheduled to start from the fiscal year ending March 31, 2027, because we need time to assess the business environment outlook.

The Daiwa House Group will continue to strive for sustainable enhancement of corporate value and creation of shareholder value with the aim of "Creating the fundamental societal infrastructure and lifestyle culture rooted in regeneration, ensuring a world where we live together in harmony embracing the Joys of Life".

We look forward to the continued support and encouragement of our shareholders, investors and all other stakeholders.