Making the Custom-Built Homes Business a Core Business

「In the custom-built housing business, orders remained solid due to stronger product proposals tailored to customer needs and enhanced customer-attraction activities. As a result, the number of homes delivered exceeded the previous year's level, and revenue also increased.」

「In the custom-built housing business, we worked to maintain order price levels and improve production efficiency, while focusing on strategic order-taking activities and improving the profitability of projects already ordered.」

「By targeting early orders, early construction starts and early deliveries, we will respond to changing customer values and behavior, further strengthen the earnings base of our core custom-built housing business and improve its profitability.」

「In the custom-built housing business, we worked to maintain order price levels and improve production efficiency, while focusing on strategic order-taking activities and improving the profitability of projects already ordered. However, conditions became challenging as construction material prices rose sharply and shortages of construction engineers and labor continued.」

「In the custom-built housing business, the number of homes delivered was at the same level as in the previous year, but contract unit prices rose due to stronger approaches to customers rebuilding their homes and orders for large projects, resulting in higher revenue. Profitability also improved as costs were appropriately passed through to prices across the board for purchased materials, while selling, general and administrative expenses were controlled through greater operating efficiency and thorough cost reductions proved effective, securing higher revenue and profit.」

「In the custom-built housing business, the number of homes delivered was at the same level as in the same quarter of the previous year, but contract unit prices rose due to stronger approaches to customers rebuilding their homes and orders for large projects, resulting in higher revenue.」

「In the custom-built housing business, the number of homes delivered was below the same quarter of the previous year due to the impact of construction schedule adjustments. However, we continued working to increase orders, strengthen our approach to customers rebuilding their homes, raise unit prices by winning large projects, and strengthen our ability to propose plans that appropriately address diverse customer needs.」

「Regarding handovers of custom-built homes, earlier construction starts and improvements in construction schedules enabled projects to be completed without delays, resulting in revenue above the same period of the previous year.」

「Regarding handovers of custom-built homes, earlier construction starts and improvements in construction schedules enabled projects to be completed without delays, resulting in revenue above the same period of the previous year. As a result, 75 properties were handed over, up 4 year on year, revenue was ¥1,688.707 million, up 14.1%, and the operating loss was ¥8.654 million, compared with an operating loss of ¥20.885 million in the same period of the previous year.」

「Regarding orders, the company worked to increase the number of properties ordered, raise the average order value by strengthening its approach to customers rebuilding their homes and securing large-scale projects, and improve its ability to propose plans that appropriately address diverse customer needs.」

「Regarding orders, the company worked to increase the number of properties ordered, raise the average order value by strengthening its approach to customers rebuilding their homes and securing large-scale projects, and improve its ability to propose plans that appropriately address diverse customer needs. However, stronger sales operations, including additional personnel, increased selling, general and administrative expenses, resulting in an operating loss.」

「In the custom-built housing business, the company worked to expand orders by establishing a customer-acquisition structure based at housing showrooms and improving its in-house customer-acquisition capabilities through stronger web marketing. Handovers initially proceeded generally as planned against an order backlog above the level of prior fiscal years, but the number of properties handed over fell below the previous fiscal year as construction schedules were adjusted because the effects of the wood shock persisted.」

「In the custom-built housing business, the company is working to expand orders by strengthening its customer-acquisition structure based at housing showrooms, conducting online sales consultations and using search advertising to diversify customer touchpoints and capture rising demand for detached homes.」

「In the custom-built housing business, orders remained strong, centered on three-story homes in Tokyo. Although handovers increased year on year, the number remained below the current fiscal year's sales plan because some handovers were delayed by shortages and late delivery of housing equipment. Selling, general and administrative expenses also increased as sales operations were strengthened, including through additional personnel. As a result, 50 properties were handed over, up 6 year on year, revenue was ¥991.228 million, up 15.2%, and the operating loss was ¥19.322 million, compared with operating profit of ¥9.523 million in the same period of the previous year.」

「In the custom-built housing business, three-story homes in Tokyo drove overall orders, and handovers generally progressed as planned against a strong order backlog, resulting in higher revenue. However, stronger sales operations, including additional personnel, increased selling, general and administrative expenses, resulting in an operating loss. As a result, 29 properties were handed over, up 1 year on year, revenue was ¥579.029 million, up 21.0%, and the operating loss was ¥2.177 million, compared with operating profit of ¥12.418 million in the same period of the previous year.」

「In the custom-built housing business, three-story homes in Tokyo drove overall orders, resulting in 128 properties ordered, 28 more than in the same period of the previous year.」

「Since the spread of COVID-19, the company has promptly adopted measures such as online customer acquisition and online consultations, while actively developing sales through offline media, including its traditional focus on magazines and leaflet distribution. These efforts to attract new customers increased properties handed over by 27 year on year and revenue by ¥316.349 million. However, the operating profit declined by ¥1.391 million year on year because of a higher cost ratio and increased selling, general and administrative expenses, including additional personnel to expand and grow the business. As a result, in the custom-built housing business, 67 properties were handed over, up 27 year on year, revenue was ¥1,439.649 million, up 28.2%, and operating profit was ¥24.347 million, down 5.4%.」

「In the custom-built housing business, the number of properties ordered increased by 20 year on year to 67, up 42.6%, while the number handed over increased by 21 to 44. The company worked to strengthen the sales capabilities of personnel hired in the previous and preceding fiscal years to address the decline in housing demand after the consumption tax increase and lower profitability caused by rising construction costs. In response to fewer visitors to housing showrooms and the cancellation of events resulting from the spread of COVID-19, the company also focused on attracting customers through online open houses, consultations and seminars, while working to identify demand for homes suited to the “new normal” based on the assumption that families would spend more time together.」

「Orders during the cumulative first-quarter period totaled 20 properties, and the number and value of orders were slightly below the same period of the previous year. The number of properties sold and revenue exceeded the same period of the previous year as handovers generally proceeded as initially planned. As a result, in the custom-built housing business, the number of properties handed over increased by 18 year on year to 28, revenue was ¥478.357 million, up 57.4% year on year, and operating profit was ¥12.418 million, compared with an operating loss of ¥10.955 million in the same period of the previous year.」

「Orders in the current fiscal year totaled 100 properties and ¥2,003.034 million, representing year-on-year increases of 21.9% in properties and 20.2% in value. At the end of the current fiscal year, the order backlog stood at 91 properties and ¥1,930.804 million.」

「As the custom-built housing business is a young business segment, the marginal benefit of expanding its workforce became a significant asset. Four fiscal years ago, the segment generated annual revenue of less than ¥400 million, but in the current fiscal year it has grown to a scale exceeding ¥1.7 billion. Its scale has increased 4.5-fold over these 4 years. The segment has already become self-sustaining, and from the current fiscal year it has progressed to a structure capable of generating segment profit as of the end of the second quarter.」

「In the custom-built housing business, the number of properties ordered increased by 11 year on year to 47, up 30.6%, while the number handed over declined by 4 to 23. Although the number handed over in the first half declined year on year, orders had progressed to a level that would allow the company to record revenue of ¥1.7 billion for the full year, well above the previous fiscal year's revenue of ¥1,447 million, reflecting strong orders.」

「Orders in the custom-built housing business had reached slightly more than ¥1.6 billion against the current fiscal year's revenue target of ¥1.7 billion, representing progress of more than 95% toward the annual plan.」

「The custom-built housing business has achieved revenue growth for 6 consecutive periods since its launch. The company also opened a model home at the Musashi-Kosugi showroom in November 2017, which helped raise corporate awareness. In terms of profit, depreciation expenses for model homes and personnel expenses increased. As a result, revenue was ¥1,447.978 million, up 15.2% year on year, and operating profit was ¥26.280 million, compared with an operating loss of ¥9.930 million in the same period of the previous year.」

「In the custom-built housing business, the increase in sales personnel, stronger advertising and the effect of a permanent showroom opened in November 2017 increased the number of properties handed over by 5 year on year. As a result, revenue was ¥1,023.634 million, up 6.7% year on year, and the operating loss was ¥1.643 million, compared with operating profit of ¥134 thousand in the same period of the previous year.」

「In the custom-built housing business, the increase in sales personnel, stronger advertising and the effect of a permanent showroom opened in November 2017 lifted the number of properties ordered by 9 year on year to 37 and the number handed over by 4 to 27.」

「With the increase in sales personnel, stronger advertising and the effect of a permanent showroom opened in November 2017, the number of properties ordered increased by 5 from the same period of the previous year to 19.」

「In the custom-built housing business, the company worked to improve its ability to make proposals to prospective customers and increase orders. In addition, the number of properties handed over and revenue increased as a result of measures implemented from the previous fiscal year, including an increase in sales personnel and the opening of the Shibuya store. In terms of profit, depreciation expenses for model homes and personnel expenses increased, but the effect of a lower selling, general and administrative expense ratio as a result of higher revenue began to emerge. Revenue was ¥1,256.976 million, up 81.1% year on year, and the operating loss was ¥9.930 million, compared with a loss of ¥39.887 million in the previous fiscal year.」

「In the custom-built housing business, the company worked to improve its ability to make proposals to prospective customers and increase orders. In addition, as the increase in sales personnel and the opening of the Shibuya store, among other measures implemented from the previous fiscal year, began to reduce the selling, general and administrative expense ratio as sales increased, revenue was ¥959.714 million, up 124.8% year on year, and segment profit was ¥134 thousand, compared with a loss of ¥29.679 million in the same period of the previous year.」

「From the first quarter, the company changed its presentation method to report the custom-built housing business as a reportable segment because its quantitative significance had increased.」

「In sales, the company worked to improve its ability to make proposals to prospective customers with the aim of increasing the number of properties sold. In construction, margins improved as the company thoroughly managed costs and construction and pursued further cost reductions. In addition, the opening of the Shibuya store increased orders in the Tokyo area, while the number of properties handed over during the cumulative first-quarter period also increased,」

「The company is working to strengthen the business so that it becomes one of its principal businesses over the medium to long term.」