Value Report 2023

Long-Term Vision andMaterial Issues

Contents

SEKISUI HOUSE

Mechanisms andCatalysts for Creating Value

ESG Management

Mid-Term Management Plan for
Sustainable Growth

Financial Data, Company
Information and Share Information

G: Governance E: Environment S: SocialCore Competencies
Our core competencies are our three greatest strengths—technical capabilities and construction capabilities driven by Sekisui House technologies, and a solid customer base derived from the industry’s highest number ofdwellings built—as well as our unique value chain. This value chain maximizes value that contributes to happiness for customers because the Sekisui House Group handles all processes relating to homebuilding, from basic
R&D to product development, design and technologies, sales, procurement, production, construction and after-sales service. These core competencies are the source of the value we create.

Technical Capabilities

Construction Capabilities Universal design for “comfortable living—now and always” SHEQAS for proven safety and peace of mind, Airkis for a better indoor air quality andother original technologies Green First ZERO and other environmental technologies Original Dyne Concrete and Bellburn exterior wall panel manufacturing technologies Staff with diverse qualifications, including first-class architects and building operation andmanagement engineers Enhanced workforce skills and ability to make proposals through an in-house system ofqualifications (Chief Architect, etc.) New value proposals through the integration of technologies, lifestyle design and services

Customer Base Sekisui House Construction companies, which are wholly owned subsidiaries of Sekisui
House, use a design-build construction system Loyal cooperative system for construction through the Sekisui House Association Enhanced construction capabilities though skills development at educational training
centers and training schools Acquisition of model approval for shortened construction timeframes Enhanced workforce skills and ability to make proposals through an in-house system ofqualifications (Chief Constructor, etc.)

Technologies: Seismic resistance (SHEQAS, Flexible ß System), insulation performance
Lifestyle design: Sekisui House Universal Design, Slow Living housing design, Green First ZERO (ZEH)
Services: Platform House Concept (HED-Net in-home early detection network for acute illnesses,
PLATFORM HOUSE touch) Owners of the 2.62 million dwellings we have built (including those overseas), the most in
the Japanese housing industry An after-sales service system featuring after-sales maintenance through 30 Customer
Service Centers across Japan for customer peace of mind after they take possession of
their houses Long-term relationships with rental housing owners through Sekisui House Real Estatecompanies Owner referrals and a high repeat rate
 Relationships with homeowners through after-sales maintenance, including remodelingand renovation work
 Direct sales / Long-term warranty system (lifetime warranty) Enhanced workforce skills and service capabilities through an in-house system of qualifications (CS Meister, etc.)

Maximizing Customer Value That Contributes to Happiness through Group Synergies
Productdevelopment,
design andtechnologies

Research &development

Sales

Procurement

Production

New Technologies

IoT

AI

Robotics

After-sales
service

Construction

Open Innovation

Blockchain

Advancing and Extending
Our Core Competencies

Industryacademia
collaboration

Investment
in startups

Businessalliances

M&A53

Value Report 2023

Long-Term Vision andMaterial Issues

Contents

SEKISUI HOUSE

Mechanisms andCatalysts for Creating Value

Mid-Term Management Plan for
Sustainable Growth

ESG Management
G: Governance E: Environment S: Social

Financial Data, CompanyInformation and Share Information

ESG Strategy—Technology and R&D Strategy

Technology and R&D Strategy: Sekisui House TechnologySince its founding, Sekisui House has aimed to deliver the highest quality and technology, helping solve the housing-related social issues of each era while growing its technology and R&D efforts. This evolution continues today. Looking at ourhistory in 30-year segments, the Company’s first phase began in 1960 with the realization of pre-engineering processes for reinforced concrete foundations and lightweight steel framing, providing housing that offers safety and peace of mind
at a time of housing shortages in Japan. In the second phase, our technologies for realizing comfort and eco-friendliness in housing grew in response to the emergence of demand for more affluent lifestyles alongside the issue of global warming. We were the first housing manufacturer to adopt next-generation energy-saving specifications as standard and then evolved these features to realize net zero energy houses (ZEH) and adopted the Airkis and other high-quality indoor airsystems. The combination of these technologies with reinforcements to structural framing gave rise to Family Suite, which provides indoor spaces that are spacious and open while comfortable to live in. In addition to greatly improving comfort
and reducing environmental impact through cutting-edge technologies, in the wake of the 1995 Great Hanshin-Awaji Earthquake, we developed the SHEQAS seismic control system and worked to evolve our technologies for safety and peaceof mind based on seismic resistance. In the third phase, we continue to focus on the residential domain, working to solve social issues through the integration of technologies, lifestyle design and services with a focus on health, connectedness and learning as we advance R&D into new technologies with the aim of making home the happiest place in the world.

Services

Phase 3 (2020–)•   Platform House Concept

Health, Connectedness
and Learning(Japanese only)

Sixth Mid-Term Management
Plan Measures

Design R&D

Value to Provide in 2030

Evolved Health,
Connectedness and Learning
Supporting value creation for customers

Providing high added value
LifestyleDesign

Phase 2 (1990–)
Comfort andEco-Friendliness•    Green First houses (Japanese only)•    Slow Living housing design (Japanese only)•    Family Suite (Japanese only)

Environmentaltechnology development•   Airkis (Japanese only)

Evolved Comfort andEco-Friendliness
Creating multidimensional value bycombining technologies

Developed advanced technologies
Technologies

Phase 1 (1960–)
Safety and Peace of Mind

• Pre-engineered housing• Seismic resistance verification•
Long-term warranty system(Japanese only)•   SHEQAS (Japanese only)•    Flexible ß System (Japanese only)•   SHAWOOD construction method (S-MJ system)(Japanese only)

Original technologydevelopment• Large, open spacesEvolved Safety andPeace of Mind
Contributing to society with ourtechnologies for safety and peace of mind

Improved housing performance

TechnologicalFoundations• First-generation CADdeveloped• AES estimate and order system• OES component developmentsystem• SIDECS developed• Strategic individual house database project• CRONOS component development system•   Chief Architect internal certification program(Japanese only)

Building technologicalinformation foundations
and developing technicalpersonnel

Evolved TechnologicalFoundations withdigital transformation (DX)Supporting value creation for customers

87Value Report 2023
SEKISUI HOUSEContentsLong-Term Vision andMaterial Issues

Mechanisms andCatalysts for Creating Value

Mid-Term Management Plan for
Sustainable Growth

ESG Management
G: Governance E: Environment S: Social

Financial Data, Company
Information and Share Information

ESG Strategy—Technology and R&D Strategy

Safety and Peace of Mind

Comfort and Eco-Friendliness

Sixth Mid-Term Management Plan Measures

Sixth Mid-Term Management Plan Measures

Original Technology Development

Environmental Technology Development

Product technologies are crucial to safety and peace of mind. In this area, we advance R&D of original technologies

Looking at lifestyle design in the areas of comfort and eco-friendliness, we will proactively advance R&D into environ-adapted to evolving needs to local conditions.

mental technologies that contribute to the creation of high-quality housing stock and a sustainable society.

Approximately 30% of existing houses in Japan do not meet Japan’s current seismic resistance standards. To

Specifically, we will support the following efforts with technological development: 1. Maintain a high rate of ZEH

address this issue, we have developed a version of the foundation direct joints used in our SHAWOOD wood-among new detached houses, 2. Increase the ZEH rate and promote long-life quality housing measures for Sha

en-frame housing for use in traditional “shaku”-based modules in an effort to increase the seismic resistance of other

Maison rental housing and three- to four-story houses, 3. Promote ZEB for non-housing properties and 4. Promotewooden-frame housing through our skeleton and infill business. In addition to new home construction, we are pro-remodeling of existing houses to realize high thermal insulation performance.

moting and evolving our seismic resistance remodeling technologies for existing wooden-frame houses, such as ourshape memory load-bearing walls introduced in 2022, to contribute to the creation of high-quality housing stock.
Overseas, we aim to create
world-leading high-quality housing
stock by analyzing the characteristicsof the areas where we do business toadvance development aimed atapplying the SHAWOOD construction methods we have developed inJapan as well as Sekisui House technologies for making optimal lifestyle
design proposals.

production, increasing our “material to material” initiatives. At theInsufficient earthquake resistance(5.0 million units)

same time, we will further advance R&D aimed at “house to17%

Before new seismic
resistance standards(8.4 million units)29%

After new seismic
resistance standards(20.8 million units)

From the perspective of promoting a circular economy, we will develop technologies to reuse and recycle leftovermaterials and scraps from new construction sites and factory

house” reuse and recycling in the future. In addition, working
Detached house+
townhouse stock:

toward carbon neutrality, we are implementing R&D of technolo-

29.2

gies to use wood effectively and reduce CO2 emissions from amillion units

variety of other perspectives.

71%

About 30% of existing detached houses inJapan do not meet current seismic resistancestandards, and 17% are deemed to haveinsufficient seismic resistance.

In the area of comfort, we will promote R&D into environmental technologies related to the senses in terms of sound, heat,Foundation Direct Joint

air, light and smell while linking these efforts to health.
Value to Provide in 2030

Value to Provide in 2030

Evolved Safety and Peace of Mind

Evolved Comfort and Eco-FriendlinessSekisui House has led the way in comfort and eco-friendliness for housing and residents by promoting the adoption

Our technologies for safety and peace of mind, including seismic resistance, have continuously grown and developedof technologies for saving, generating and storing energy through its efforts related to ZEH and response to the ther-over our history of more than 60 years and are already highly advanced. We will further reinforce these technologies in

mal insulation performance grades set out in the Housing Quality Assurance Act of Japan.

preparation for increasingly frequent and severe natural disasters to provide safety and peace of mind in housing

In 2030, we aim to provide housing that offers comfort now and always for each individual customer. In terms ofthroughout Japan. At the same time, we will advance the use of our technologies for safety and peace of mind aroundeco-friendliness, we will accelerate initiatives aimed at carbon neutrality and a circular economy as we advance R&D

the world.

aimed at evolving housing to be friendlier to the planet.

88Value Report 2023
SEKISUI HOUSEContents

Long-Term Vision andMaterial Issues

Mechanisms andCatalysts for Creating Value

Mid-Term Management Plan for
Sustainable Growth

ESG ManagementFinancial Data, CompanyInformation and Share Information

G: Governance E: Environment S: Social

ESG Strategy—Technology and R&D Strategy

TechnologicalFoundations

Health, Connectedness and Learning
Sixth Mid-Term Management Plan Measures

Sixth Mid-Term Management Plan Measures

Design R&D

Building Technological Information Foundations and Developing Technical Personnel

In the service aspect of health, connectedness and learning, weAn important aspect of building a next-generation technological platform will be the effective use of technologicalhave launched life knit design, a design concept for housing

data. During the period of the Sixth Mid-Term Management Plan, we will overhaul our technological system foun-where attachment continues to grow over time. The key points ofdations by introducing a next-generation design system and building a technological data platform.

life knit design are (1) Designing spaces with universal beauty that

With our next-generation design system, we aim to increase speed, enhance compatibility with internationalreflects emotions, (2) Providing genuine materials that age beauti-building information modeling (BIM) formats, and expand tutorial functions for human resource development. At

fully over time and (3) Selecting eco-friendly materials. It is a new

the same time, our technological data platform will enable the integrated management of data not only related todesign approach for the era of the 100-year lifespan that provides

sales, design and component surveys, as in the past, but also data extending to R&D, production, distribution

value closely aligned with the sensibilities of residents. By reinforc-and construction. Through the analysis and use of such data, we will realize operational process innovation,enhance quality and improve operational efficiency while providing new value to customers.

ing design capabilities and deepening human attachment tohousing, life knit design will contribute to the creation ofhigh-quality housing stock.

Design concept for housing whereattachment keeps grows over time

To develop human resources to support our technological capabilities, we will expand our human capital andcreate happy work environments for technical personnel. We will

In addition to building design, we are reinforcing landscaping

also promote an autonomous growth program that includes thedesign. We will also examine ways of integrating cutting-edge

use of practical skill sheets to enable employees to understandtechnologies into design methods, such as using digital technolo-

their own abilities and formulate career development routes ingy to provide hands-on virtual simulations of the use of livingline with actual work duties. Furthermore, to increase time spentspaces. Furthermore, under the “Kids First” concept, we will pro-on creative work, we will study the use of digital assistance tech-pose lifestyles and spaces that center children and advance R&D

nologies in design, including the use of AI and other tools tointo product technologies to make these possible, thereby con-streamline routine request procedures.

Development

Maintenance

Sales

Technologicalinformation 3D comprehensive
house datafoundations

Construction

Technology data platform
Distribution

DesignSurveying

Production

tributing to children’s emotional development.
Value to Provide in 2030
Value to Provide in 2030

Evolved Health, Connectedness and Learning

Evolved Technological Foundations with Digital Transformation (DX)
Building on our technological foundations, which comprise our technology data platform and technical personnel

In 2030, Japan is expected to face severe demographic graying, a low birthrate, a declining population and a risingdatabase, we will create new value leveraging DX (IT) in 2030. For example, we will reinforce development capabili-

number of households. To respond to these social conditions, Sekisui House will promote health, connectedness

ties and create sophisticated cost management technologies for price setting through the analysis of product life-and learning through housing from a variety of perspectives, including housing that is rich in feeling and promotes

cycle management (PLM) data; implement high-level human resource development that transcends conventional

well-being with an emphasis on individuality and personalization, as well as housing that offers virtual worlds throughorganizational frameworks; and work to maximize employee happiness by formulating new evaluation methods. In

the integration of evolving digital technologies. By doing so, we aim to make home the happiest place in the world.

these and other ways, we are expanding the ways we approach utilizing our technological foundations.

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