HOME > Investor Relations > SEKISUI Overview >  Housing Company

Housing Company

Last updated: Aug 26, 2016

Shunichi Sekiguchi President of Housing Company

Business Strategies

In the housing business, we aim to increase orders by improving product differentiation, such as with energy self-sufficient smart houses, and increase profit by maximizing the in-factory production ratio to boost cost competitiveness. We plan to increase the Living Environment business by leveraging the features of industrialized products to offer optimized renovation proposals.

Business Overview

The Housing Company has established a unique position in Japan in new housing construction as a specialist in the Unit Construction Method, an advanced factory-built approach that enables short construction periods and delivers functions in accordance with design plans.

Responding to the increasingly sophisticated needs of customers, the Housing business has moved high-performance housing forward, guided by the concepts of environment, reliability, and comfort. It was in particular an early mover in housing with solar-power generation systems, going back to 1997 when it first scaled up such initiatives, and its cumulative sales of such residences exceeded 170,000 units as of the end of 2015.

The company achieved another milestone in April 2012 with the release of its Smart Heim models with standard features such as built-in storage batteries and the Smart Heim Navi Home Energy Management System (HEMS).

In the Living Environment business, it draws on the features of its factory-built housing products and its database of the housing stock it has constructed to offer renovation proposals best suited to the life stage of each homeowner. We are also developing our management of existing home sales, leasing and management, and other housing asset management operations as well as residential services, including the construction and operation of housing with support services for senior citizens. In addition, the company is expanding its new construction housing operation overseas.

Housing Company product

1.2.3.In-house production in progress inside the Housing Unit Factory   4.A housing unit being installed   5.The Smart Power Station series is aimed at enabling energy self-sufficiency  6.7.8.come as standard features for the Smart Heim series)   6.A large-capacity solar power generation system   7.The e-Pocket large-capacity storage battery system  8.The Company's Smart Heim Navi Consulting HEMS  9.The housing production factory in Thailand  10.Kitchen renovation   11.Bath renovation

Press Releases on Housing Company's Topics
G Series, a Commemorative Product to Celebrate the 45th Anniversary of Sekisui Heim Launched

G Series, a Commemorative Product to Celebrate the 45th Anniversary of Sekisui Heim Launched

  • Jul. 2015GREENSHIFT! Newly Launched in the Renovation Business amid the Growing Trend toward Energy Self-Sufficient Housing
  • Aug. 2015V to Heim System Series, which Effectively Links Solar Housing to Plug-In Hybrid Electric Vehicles and further Accelerates Growth toward Energy Self-Sufficiency in the Housing Business Launched for the First Time in the Industry
  • Sep. 2015Details of Developments in Heim Garden, a New Brand in the Senior Residence Business Announced
  • Feb. 2016Renewal Work on the Sekisui Heim Production Plant Completed in the Kinki Area
  • Apr. 2016G Series, a Commemorative Product to Celebrate the 45th Anniversary of Sekisui Heim Launched
Performance Highlights

*Please see the presentation materials for the most recent business plan and results.

Fiscal 2015 Performance

Decline in sales and profit owing mainly to the slump in orders in fiscal 2014 and the first half of fiscal 2015

The Housing Company incurred a downturn in sale and profit in fiscal 2015. In specific terms, net sales came to 473.4 billion yen, a decrease of 20.7 billion yen compared with the previous fiscal year. Operating income totaled 36.4 billion yen, down 4.9 billion yen year on year. The company was unable to avoid a downturn in sales and profit in the first half of the fiscal year under review. This was largely due to the insufficient order backlog at the start of the term as a result of the slump in orders in fiscal 2014. Amid the recovery in orders, the Housing Company took steps to control non-essential fixed costs. On this basis, operating income in the second half of fiscal 2015 amounted to 20.1 billion yen, coming close to the record level of 20.6 billion yen reported for the second half of fiscal 2014. Taking each of these factors into consideration, the order backlog as of the start of fiscal 2016 exhibited a positive turnaround.

Analysis of Operating Income for FY2015 (year-on-year)


Shift in housing orders from a self-sufficiency concept to a recovery trends

Turning to order activities in fiscal 2015, excessive concerns following a review of the energy feed-in tariff (FIT) system introduced the previous year had a temporary negative impact on the smart house market. Agains this backdrop, the Housing Company took thoroughgoing steps to promote an energy self-sufficiency concept thereby alleviating any dependence on revenues from the sale of electric power by making the most of the unique high in-factory production ratio features of its products.

During the fiscal year under review, the Housing Company vigorously pushed forward a series of initiatives. In addition to the introduction of new products, the company undertook a variety of activities including simultaneous nationwide sales promotions. Through factory tours and other initiatives, the Housing Company also effectively differentiated itself from competitors. Drawing on the underlying strength of demand from first-time buyers, the company actively marketed properties with houses built for sale. Thanks to the success of these measures, orders exhibited a modest recovery. As a result, the year-on-year decline in orders was held to 5% for the first half of the fiscal year under review. This improved to a year-on-year increase of 5% in the second half. Looking at the order backlog at the start of fiscal 2016, the Housing Company reported a positive turnaround and increase for the first time in four business terms on an interim basis.

Orders for Smart Power Station homes, an iconic smart house product that combines solar power generation, storage battery, and home energy management system (HEMS) features increases 4% compared with the previous fiscal year. In specific terms, orders decreased 12% in the first half and surged 26% in the second half. Orders for properties with houses built for sale climbed 9% year on year.

In January 2016, the Housing Company launched the GRAND TO YOU f series of high cost performance Smart Power Station homes as a part of its built-for-sale housing activities. The company has also initiated measures aimed at further increasing the volume orders in the next fiscal year.


Downturn in solar power generation systems offset by renovation product and real estate business activitiesin the Living Environment business

In the renovation business, the Housing Company was successful in conducting sales promotions of packaged products (baths, vanities, toilets, and related products) aimed at bolstering its lineup of mainstay products (including the new release of storage batteries) and upgrading and expanding customer proposals. However, net sales declined 5% compared with the previous fiscal year as the 12% year-on-year increase in renovation products failed to offset the drop in solar power generation systems reflecting excessive concerns following the review of the FIT system in similar fashion to the housing business. Buoyed by efforts to strengthen the company’s focus on periodic diagnosis activities, the renovation of old houses continues to increase. As such, these activities provide a stepping-stone for capturing additional orders in the next fiscal year.

Meanwhile, the company's real estate activities (leasing and management, rental management, and existing home sales), which are included in the Living Environment business, exhibited steady trends. Net sales for the fiscal year under review grew 10% compared with the previous fiscal year. Looking at net sales of the Living Environment business as a whole, results for both the first and second halves were essentially unchanged compared with the previous fiscal year.


Fiscal 2016 Plan

Promoting inherently unique “Sekisui Heim” strengths to further boost profit

In fiscal 2016, the Housing Company’s goals are to become Japan's No. 1 provider of smart houses and to return to its original unit product approach. The company's competitive advantage stems from the high fundamental functions of its unit housing and product strengths of its smart houses. By implementing measures that make the most of its unique Sekisui Heim features, the Housing Company is targeting a return to increased profit.

In addition, the business environment in which the company operates is experiencing favorable trends as the focus on self-sufficiency continues to mount. This is largely attributable to growing interest in energy efficiency against the backdrop of a negative interest rate environment and liberalization of the electricity sector. Taking into consideration each of these factors, net sales in fiscal 2016 are projected to reach 494 billion yen, an increase of 20.6 billion yen. Operating income is forecast to come in at 38 billion yen, up 1.6 billion yen year on year.

Analysis of Operating Income for FY2016 (year-on-year)


Incorporating the attributes of geographic regions and customers to enhance product development capabilities in the Housing business

The Housing Company is introducing products to the market that are tailored to the needs of each region and customers. At the same time, the company is expanding sales of smart houses. In January 2016, the Housing Company launched the GRAND TO YOU f series of detached houses for regional areas and other detached houses with increased security features. Targeting the urban market, the company released the G series of detached houses that boast strengthened zero energy home (ZEH) features and a sophisticated design in April 2016. Financial initiatives including the negative interest rate policy adopted by the Bank of Japan are motivating first-time buyers to purchase a new home. In an effort to capitalize on this positive operating environment, the Housing Company will introduce 2,400 subdivisions of marketable properties, an increase of 26% compared with the previous fiscal year. In addition, the company will increase the number of sales personnel by 250 as a part of efforts to boost its marketing capabilities.

Buoyed by the introduction of new products and the pickup in demand, coupled with aggressive efforts to market land with houses built for sale and an increase in the number of sales personnel, the Housing Company is targeting a 5% improvement in order in the fiscal 2016.

Moving forward the company will continue to advance the Factory Efficiency and Presentation Upgrade Plan, an initiative that commenced in fiscal 2014. Efforts will also be made to conduct simultaneous tours across the company's nationwide network of plants in order to promote the high level of housing production quality management as well as the growing attractiveness and cutting-edge appeal of the company's manufacturing facilities. In addition to placing considerable weight on campaigns as well as the Sekisui Heim Series 45th anniversary and other events, energies will be channeled toward continuously increasing orders.


Returning to our roots in unit housing while undertaking a review of production and supply structures and systems

Steps will be taken to initiate structural reforms in the Housing business that look beyond fiscal 2017. Trends in personnel expenses, which continue to hover at a high level, have extended through to the housing construction frontline. After reducing on-site construction by 15% compared with fiscal 2013 over the past two years, the Housing Company will look to achieve a reduction of 30% by the end of fiscal 2016. The company will endeavor to further distinguish itself by returning to the original unit product approach and maximizing the in-factory production ratio. Moreover, the Housing Company will fine tune its production and supply systems for the perspective of total optimization in anticipation of a further drop in housing starts in the not too distant future.


Rolling out measures to capture renovation orders in line with the age of each building in the Living Environment business

In the renovation business, the Housing Company mainly targets customers residing in Sekisui Heim homes. Buoyed by robust trends in new housing starts, the volume of the company's newly sold homes reach a peak around the 1990s. These properties are now entering a renovation phase with an effective age of between 15 and 25 years. The Housing Company is marketing new renovation product packages that encompass large-scale expansions and renovation, water-related facilities, and exterior work to customers residing in homes in this effective age bracket. By leveraging product packages, the company is lifting the unit price per renovation project and improving operating efficiency.

From a marketing perspective, the Housing Company is introducing 60 new sales personnel while adhering strictly to a sales policy that focuses on each commercial products and home construction years' category. At the same time, the company is conducting education and training to strengthen its customer relations structure and boost proposal capabilities. Through these means, and by making the most of the Famis 20th anniversary campaign to increase customer contact, the Housing Company is working to expand orders.

In the real estate business, which is enjoying robust conditions, the Housing Company is endeavoring to further expand sales by taking on unmanaged rental properties and increasing the number of staff for real-estate transactions.

Drawing on the underlying strengths of these initiatives, the Living Environment business as a whole is targeting in increase in net sales of 3% compared with fiscal 2015.


Housing Company and Market Data

Year-start Backlog/New Housing Orders

Number of Houses Sold/Differentiated Tool Load Ratio

Market Data