Sekisui Q1 Report 2022

Consolidated Business Results

Net Sales: 282.2 billion yen (+13.5%), Operating Profit: 13.8 billion yen (+24.5%),

Ordinary Profit: 21.3 billion yen (+63.7%), Profit Attributable to Owners of Parent: 14.5 billion yen (+16.3%)

In the first quarter of fiscal 2022, the automobile market was weaker than expected due in part to the reduced production resulting from parts shortages. On the other hand, a certain level of recovery from the impact of COVID-19 was seen in the markets for semiconductor-related products, housing, and building materials. Along with expanded sales of high-added value products, due to the weakening of the yen, sales increased substantially. Although the surge in the prices of raw materials, fuel, and parts continued longer than expected, efforts such as the improvement of selling prices, the expansion of sales of high added value products, and cost cutting led to a substantial increase in operating profit in all of our business segments. Ordinary profit and profit attributable to owners of parent increased significantly due in part to the effects of foreign exchange rates.

[Housing Company]

Net Sales: 115.6 billion yen (+9.6%), Operating Profit: 2.8 billion yen (+132.8%)

In the first quarter of fiscal 2022, despite the surge in parts prices and effects from delivery delays, both sales and profit increased due to factors such as firm orders for housing and renovation business, effects from the leveling of sales, and growth in the Real Estate business and the Town and Community Development business.

[Urban Infrastructure and Environmental Products Company]

Net Sales: 48.9 billion yen (+10.9%), Operating Profit: 1.4 billion yen (+279.9%)

In the first quarter of fiscal 2022, effects from the surge in raw material prices remained. Nevertheless, sales increased thanks to the completion of delayed projects that continued from the previous fiscal year as well as improved selling prices, with operating profit reaching a record high.