Management Interview

I would like to express my sincere gratitude to our shareholders and investors for their continued support.

Review of consolidated earnings for the fiscal year ended March 31, 2023

For the fiscal year ended March 31, 2023, the second year of the Medium-Term Management Plan, we continued to strive to improve profitability of our mainstay new condominium apartments. Our sales showed strong growth supported by favorable supply-demand balance in the real estate market for property to live and product development (quality of property). As a result, while net sales was almost flat year over year at ¥79,286 million (down 0.3% year over year), profit significantly increased year over year with operating income of ¥8,425 million (up 25.9% year over year), ordinary income of ¥7,280 million (up 27.9% year over year), and profit attributable to owners of parent of ¥4,557 million (up 48.5% year over year). The key indicator ROE was 13.8% (up 3.6 points year over year).

Consolidated earnings forecast for the fiscal year ending March 31, 2024

Based on the sales forecast for new condominium apartments and a plan to increase the number of income-producing property to sell in the Real Estate Investment business, we forecast consolidated earnings for the fiscal year ending March 31, 2024 to be net sales of ¥90,000 million (up 13.5% year over year), operating income of ¥8,600 million (up 2.1% year over year), ordinary income of ¥7,500 million (up 3.0% year over year), and profit attributable to owners of parent of ¥4,800 million (up 5.3% year over year), an increase in both net sales and profit from the fiscal year ended March 31, 2023.

Shareholder return

For the fiscal year ended March 31, 2023, as business performance exceeded the initial forecast, we decided to pay year-end dividend per share of ¥28 (increase of ¥7 from FY3/22 and increase of ¥4 from initial forecast), making annual dividend per share ¥52 (increase of ¥16 year over year). We plan to pay annual dividend per share for the fiscal year ending March 31, 2024 of ¥55, an increase of ¥3 year over year.

Sustainability initiatives

We are promoting various initiatives to integrate business strategy and ESG strategy as set out in the Medium-Term Management Plan. As for the initiatives for Environment, as part of our efforts toward our goal announced in April 2022 to “make all new condominiums for sale meet the requirements for ZEH-M Oriented or higher by FY2030,” we started sales of our first project “Duo Hills Fushimi,” our first property certified as “ZEH-M Oriented.”
As for the goal to “obtain DBJ Green Building certification for new rental property,” the construction of “Duo Flats Kawaguchi Namiki” which obtained the certification (plan certification) started in June 2022. As for the initiatives for Society, we are promoting initiatives such as for human resource development and active participation of women toward human resource management.
We will continue to pursue ESG-oriented management and aim to enhance medium- to long-term corporate value.

We look forward to your continued support.

Eiichi Ogawa
President and Representative Director, Executive Officer
Hoosiers Holdings Co., Ltd.