Investor Relations

Construction

No.1 in Tokyo Sales of Condominium Remodeling

History
■ Remodeling−Shinchiku Sokkurisan

Sumitomo Realty launched the Shinchiku Sokkurisan full remodeling package in 1996. It has become the top brand in the market with a cumulative total of more than 120,000 units contracted.

■ Custom Homes
We launched the American Comfort line in 1995. To keep up with the needs of the times, we followed this with the J·URBAN line in 2003 and J·RESIDENCE in 2012. We are also enhancing our marketing strength with a nationwide network of over 110 model house units.

Remodeling−Shinchiku Sokkurisan

Key Features

· Sales engineering system: Most of our sales personnel have engineering qualifications.
· Carpenters: We employ carpenters who work exclusively for Sumitomo Realty.
· Fixed price: We provide the customer with a fixed price per unit of floor area, so there are no concerns about additional construction charges.
· No need for temporary moves: We remodel homes while customers continue to live in their homes, which is a major advantage.
· Earthquake resistance: We incorporate earthquake-resistance strengthening measures based on a computerized analysis of the homes as well as measures to prevent damage from termites and moisture.

Custom Homes

Key Features

· Advanced performance: We have developed proprietary earthquake-resistant technologies, namely the New Power Column, New Power Cube and Super Power Wall construction methods, and are actively incorporating these technologies in all our products.
· Top-class equipment and specifications: Leveraging our strengths in the form of our track record in the condominium business and economies of scale as a comprehensive developer, we employ high-grade condominium interior materials as a standard specification.
· Thorough after-sales support: Our homes are backed by a 30-year guarantee, and we have a dedicated customer service line.

Basic Growth Strategy

Further raising our competitiveness by refining our planning, technical and sales capabilities without being bound by conventional thinking

Overview of the Fiscal Year

During the March 2018 fiscal year, both the Shinchiku Sokkurisan remodeling business and custom homes operations showed strong performance, posting record high units contracted, units delivered and revenue from operations. As a result, segment revenue and profit rose on growth in units delivered and improved profit margins.
In the Shinchiku Sokkurisan remodeling business, orders for both detached houses and condominiums increased, contributing to earnings growth. In the custom homes business, housing and facility equipment with stylish exterior designs and specifications befitting high-end condominiums continued to be well-received.

Outlook

In order to achieve continued growth in both revenue and profit, we are responding to customers´ needs by continuing with efforts to expand our product lineup and strengthen our sales and management systems in both the Shinchiku Sokkurisan remodeling business and the custom homes business.
Our March 2019 fiscal year projections are for a 5.1% increase in revenue from operations, to ¥220.0 billion, with an 11.7% rise in operating income, to ¥18.0 billion.