Sekisui Q3 Report 2022

Net Sales: 912.2 billion yen (+8.8%), Operating profit: 62.4 billion yen (+8.7%), Ordinary profit: 73.4 billion yen

(+16.9%), Profit Attributable to Owners of Parent: 52.8 billion yen (+314.7%)

With regard to the market conditions in the first three quarters of fiscal 2022, automobile production was higher than the level of the same period of the previous year despite effects from reduced production resulting from the shortage of semiconductors. Smartphone shipments remained far below the level of the same period of the previous year due to the impact of inventory adjustments that continued from the second quarter, mainly in China. The number of domestic housing starts was down slightly year-on-year. Under these circumstances, sales increased due to expanded sales of highvalue-added products and further improvement of selling prices in addition to positive effects from foreign exchange rates.

Although higher prices of raw materials, fuel, and component parts continued, the company recovered by improving selling prices, expanding sales of high-value-added products, and reducing costs. There were also positive effects from foreign exchange rates, resulting in a substantial increase in each stage of profit. From the third quarter of the fiscal year under review, the company has changed its classification of reportable segments. The details are described in “(4) Notes to Consolidated Financial Statements (Segment Information)” of “2.

Consolidated Financial Statements and Notes.” For the year-on-year comparisons below, the figures for the corresponding period of the previous fiscal year have been reclassified according to the revised segment classification.

[Housing Company]

Net Sales: 389.1 billion yen (+4.3%), Operating Profit: 21.4 billion yen (+0.2%)

In the first three quarters of fiscal 2022, the Housing, Housing Renovation, Real Estate, and Town and Community Development businesses each posted higher sales, resulting in an overall increase in sales, but operating profit remained flat year-on-year due to the impact of surging prices for component parts. As for orders received in the Housing business, the number of houses ordered decreased year on year due to the impact of COVID-19, etc. Orders received in the Housing Renovation business increased year on year due to expanded sales of storage batteries, etc.