Housing Company

Last updated: Sep. 28, 2021

Providing more people with peace of mind, safety, and comfort
through our prominence in high-performance housing and housing-related services

We conduct business based on the principle of providing environmentally friendly
housing for safe and comfortable living for at least 60 years.

Toshiyuki Kamiyoshi
President of Housing Company

A year of significant progress in taking on new challenges and securing a position at the forefront of the times

Amid the ongoing challenges presented by the COVID-19 pandemic, we will refrain from adopting a pessimistic approach while carefully monitoring risk, and work in unison to achieve sustainable growth with a strong resolve.

In-house production in progress inside the Housing production factory /Housing production factory (unit) /Housing production factory (exterior wall)

The Smart Power station series aimed at enabling energy self-sufficiency

Town and community development for disaster prevention and mitigation

Living room, dining room, and kitchen renovation

The housing production factory in Thailand

History of the Housing Company

History in Process Creation

This year marks the 50th anniversary of the launch of our first product SEKISUI HEIM M1 in 1971. From the outset, we have continued to develop a new housing construction business that specializes in the Unit Construction Method, an advanced factory-built approach that enables short construction periods and delivers functions in accordance with design plans. To date, cumulative sales of such residences have exceeded 600,000 units. In 1997, the Company began full-scale sales of housing with solar-power generation systems, and in 2012, it introduced Smart Heim models with standard features such as built-in storage batteries and HEMS*, thereby advancing the development and increased use of energy self-sufficient housing. Utilizing its prominence in technologies to help solve social issues, the Company engages in a wide range of activities. This includes the launch of the Resilience 100 STAY & WORK model in July 2020 that features enhanced capabilities in addressing new lifestyles and resilience functions for an era in which living to the age of 100 is not uncommon.
*HEMS: Smart Heim Navi Home Energy Management System

History of Adaptability

As the number of new housing starts in Japan declined from the late 1990s due to the declining birthrate, aging population, and other social changes, the Housing Company worked to improve its competitiveness while restoring profitability by reorganizing its sales structure thereby strengthening its sales force and reducing costs. The Company has also worked diligently to bolster its Renovation and other Stock businesses and to expand its business overseas. Over the past few years, the Company has made an unwavering commitment to structural reforms in a bid to stay ahead of changes in the business environment. These reforms include investing in automation and integrating the operations of housing production plants in each region to further improve productivity.

Housing Company Future Medium- to Long-term Strategies

Housing Business

Aiming for the top share in the detached housing market

SEKISUI HEIM ensures the stable supply of high-quality (high earthquake resistance, airtightness, and heat insulation) housing through its revolutionary Unit Construction Method, where the vast majority of construction is conducted at the factory. The Unit Construction Method is becoming increasingly advantageous with the aging of craftsmen, labor shortages, and the ongoing upswing in construction labor costs. In addition to developing products that meet smart and resilient needs, as well as demands in line with the new normal, the Company is focusing its resources on subdivision and ready-built houses, where demand is expected to remain stable, particularly from first-time buyers, to capture the volume zone in housing and achieve the top market share in detached houses.

Trends in the no. of detached house starts and the no. of carpenters

* 1 FY2010–FY2020 figures are based on data from the Ministry of Land, Infrastructure, Transport, and Tourism’s FY2020 Survey on Construction Starts ; FY2022 figures reflect the Company’s estimates.
* 2 Source: Ministry of Land, Infrastructure, Transport, and Tourism Housing and Housing Land Subcommittee of the Social Infrastructure Development Council data

Number of detached housing starts by price range

Number of units sold

Stock Business
(Renovation/Real Estate)

Increasing the value of the Company’s prominence in factory-built housing products and passing this on to the next generation

Leveraging the collective strengths of the Group, including after-sales services, renovation, and real estate, the Company launched the purchase and resale BeHeim brand in earnest in fiscal 2020. Under the BeHeim brand, the Company will first visualize the status of housing health by utilizing the prominent high quality and durability of its factory-built housing products, as well as its history of production at the time of new construction, the provision of maintenance information, and others. On top of the Company’s renovation endeavors to increase housing value (ensure comfortable living while maintaining and improving asset value), steps will be taken to clarify options for additional work in a bid to create benefits for both the seller and the buyer through resale. By passing on this value to the next generation, the Company will contribute to revitalization of the local community, reduce the number of vacant houses, and help build a sustainable, recycling-oriented society.

Town and Community Development Business

Nationwide rollout of smart and resilient town and community development

SEKISUI CHEMICAL Group’s unique approach to town and community development brings together safe, secure, and environmentally-friendly SEKISUI HEIM smart technologies, its proprietary HEIM SUITE condominium brand, and the Group’s prominence in disaster-resistant infrastructure materials. By taking full advantage of the know-how cultivated through ASAKA Leadtown, the Company will expand and develop the business nationwide in an effort to achieve Town and Community Development business sales of ¥12.5 billion in fiscal 2022 (¥3.9 billion in fiscal 2020).

Higashi Matsuyama Leadtown (planned)

Sapporo-Hiragishi Leadtown (planned)

Performance Highlights

Fiscal 2020 Results

In fiscal 2020, net sales and operating income declined substantially to ¥485.3 billion and ¥30.5 billion, respectively, due to a downturn in orders for housing and renovation caused mainly by COVID-19. Even under these circumstances, the Housing Company responded flexibly to the pandemic. In the Housing business, steps were taken to develop a sales style and products that meet the needs of the new normal in a timely fashion. In the Renovation business, energies were directed toward strengthening existing sales structures and systems through various measures including the appointment of dedicated staff to oversee periodic diagnosis. In the Real Estate business, the Company ramped up its collaboration with FAMI S (renovation) in a bid to bolster its apartment building renovation as well as purchase and resale. Thanks largely to these efforts, both net sales and operating income essentially recovered to the previous year’s levels in the second half. Together with the full-fledged contributions to earnings from the Town and Community Development business, steady progress was also made in securing future projects, realizing the benefits of ongoing efforts to fortify the business structure and control fixed costs.

Analysis of Operating Income

Outlook for Fiscal 2021

Despite the lingering effects of COVID-19, the Housing Company is targeting a return to the profit levels recorded prior to the pandemic through efforts aimed at increasing net sales in the Housing and Renovation businesses and expanding the Town & Community Development business in fiscal 2021. In the Housing business, the Company will continue to use the Internet to attract visitors and promote proposals that integrate such virtual and real tools as remote negotiations and experience-based showrooms. In addition, the Company will work to increase orders by developing projects commemorating SEKISUI HEIM’s 50th anniversary, promoting the appeal of smart and resilient as well as new normal products, and strengthening land strategies in such areas as subdivision and ready-built houses. In the Renovation business, every effort will be made to strengthen proposal capabilities by further increasing periodic diagnosis quantity and quality while expanding the FamiS Museums and improve productivity.

Grasping Changes in Society (Housing Company Sustainability)

Clean Energy

Smart Power Station: Housing equipped with the three key features of solar power,
storage batteries, and HEMS for energy self-sufficiency

Housing equipped with large-capacity solar power, coupled with storage batteries, helps in reducing CO2 emissions and is certified as products to enhance sustainability by SEKISUI CHEMICAL Group. With its integrated solar panel roof, Smart Power Station is capable of delivering large-capacity solar power even in a standard-sized house. Moreover, storage batteries can be installed to enhance the efficacy of renewable energy use. In fiscal 2020, the ZEH*1 ratio of the Group’s new detached houses sold increased to 85%*2. In addition to solar power generation systems and storage batteries, Smart Power Station can also be linked to electric vehicles while facilitating the installation of drinking water storage systems. In this manner, Smart Power Station enables users to maintain their lifestyles in the event of a lifeline disruption attributable to a natural disaster or other factors, making it an evacuation house that ensures people’s safe and secure lives.

*1 ZEH: Net Zero Energy House
*2 Excluding Hokkaido

Smart House-related Indicators

Climate Change

SMART HEIM DENKI Power Trading Service

SEKISUI CHEMICAL Group has positioned climate change as a priority issue to be addressed. To accelerate society’s efforts to help resolve this issue, the Group has joined the RE100 program and is working toward the shift to renewable energy. As a part of these endeavors, the Housing Company launched the SMART HEIM DENKI service in 2019. Under this service, surplus electricity is purchased from SEKISUI HEIM customers who live in SEKISUI HEIM houses equipped with solar panels, which is then utilized at the Group’s domestic factories and offices. Energies are being directed toward providing an attractive surplus power purchasing service to customers whose electricity is no longer subject to the Feed-in Tariff (FIT) system, and promoting reduction of the Group’s greenhouse gas emissions.

Health and Welfare

Comfortable Air Ventilation and Air-Conditioning Systems

The Housing Company is putting forward proposals that promote a comfortable life with less risk of temperature differences by maintaining a uniform thermal environment throughout the house. In June 2021, the Housing Company developed the new Comfortable Airy T-SAS, which is equipped with an air-conditioning filter that uses the HPP Company’s antiviral agent and a ventilation filter with an enhanced dust removal function, to support a safe and comfortable stay at home even in the event of COVID-19 infection.

Trends in Housing Company products to enhance sustainability sales