7. business strategies future direction for business segments · we will strengthen our involvement...

18© DAIWA HOUSE INDUSTRY CO., LTD All rights reserved.May, 2005

Commercial facilities

Commercial facilities

Home centers

Rental housing

Single-family houses

Home renovations

Market G

rowth R

ate

Company Sales Growth Rate（FY2002-2004）

0％

Active injection of management resources

※ The size of the circles is relative to sales turnover for FY2004

Expand added value

Generate synergies with other business segments

Fitness clubs-20％ -10％ 10％ 20％

10％

-10％

7. Business Strategies－Future Direction for Business Segments

Resort

Condominiums

Distribution and medical and nursing care facilities


7. Business Strategies－Single-Family House (Contracting) Business

We will improve our brand image and realize high added value for customers by providing customer-oriented products and services.

Step up involvement with lifestyle choice products

We will consolidate our cutting-edge know-how in the following 7 areas –earthquake absorbing, health and comfort, burglary-prevention, insulation, safety, and security (Long-Term Guarantee System) – to develop and sell products that offer lifestyle choices.We will release new products to commemorate our 50th anniversary in FY2005 centering on “health.”

Promote improvements in business management efficiency

Improve brand image

We will rebuild our housing brand around the concept “Be Fair.”① Provide customers with reliable information that will help them make

decisions, by providing objective information and by being accountable. ② Provide customers with the freedom to make choices that suit their tastes

and styles. ③ Actively consider neighborhood appearance, environmental and disaster-

prevention requirements and fulfill our corporate social responsibility.

Establish an “Endless Partnership”

We will close 50 non-profitable locations out of our 313 display sites. We will establish a broad-based construction system to level out differences between plants.

Reliability Support 21ｃ（Long-Term Guarantee System）

Burglar-proof houses

①Multi-layered glass②Sub-lock reinforced

window frames③Window shutters④Double-lock entrance⑤High-performance dimple key⑥1-key, 4-locks system⑦Anti-burglar porch light⑧Intercom system

長期保証「安心のサポートシステム・21c」

長期保証「安心のサポートシステム・21c」

希望により40年以降も診断・保証

希望により40年以降も診断・保証

５年目５

年目１０年目１０年目

２０年目２０年目

３０年目３０年目

４０年目４０年目

５０年目５０年目

６０年目６０年目充

実した点検と診断

充実した点検と診断

安心の保証

安心の保証

部位毎に詳細耐久

性能調査を行い、

耐久診断書を作成

部位毎に詳細耐久

性能調査を行い、

耐久診断書を作成

定期点検の実施と

耐久性能診断書の作成

(20年目・30年目は有償)

定期点検の実施と

耐久性能診断書の作成

(20年目・30年目は有償)

診断書をもとに

メンテナンス項目と

保証年数を提示

診断書をもとに

メンテナンス項目と

保証年数を提示

初期保証躯体構造20年、防水10年

初期保証躯体構造20年、防水10年

10年毎のメンテナンス(有償)実施により保証更新

10年毎のメンテナンス(有償)実施により保証更新

Long-term guaranteeReliability Support System 21c

Optional checks and guarantee for longer terms

Thorough inspections

and assessments

Guarantee system

5th year

10th year

20th year

30th year

40th year

50th year

60th year

Regular inspections conducted and a durability performance assessment report prepared. (Provided for a fee in the 20th and 30th year)

Detailed durability performance checks will be carried out on each individual part and a durability performance report prepared.

Initial guaranteeFrame structure 20 years; Water-proofing 10 years.

Guarantee extended with maintenance conducted every 10 years (for a fee).

Maintenance items and guarantee period indicated based on assessment report.


Establishing an “Endless Partnership”

We will establish an “Endless Partnership” that will offer a support system catered to tenant needs

and systems for maintaining strong asset value.

Complaint-handling

Inquiries

Daiwa Family Club

Midori-no-tsudoienvironmental associations

Regular inspections

House health check-ups

Follow-up visits

Royal Home CenterRenovation advice

Complaint-handling

Inquiries

Daiwa Family Club

Midori-no-tsudoienvironmental associations

Regular inspections

House health check-ups

Follow-up visits

Royal Home CenterRenovation advice

Asset Management and House Assessment ～To maintain asset value～Asset Management and House Assessment ～To maintain asset value～

InspectionsInspections

Maintain,Manage and

OperateRecycle ReuseCustomer Center

TEL

WEB

Magazine

Visits

MaintenanceMaintenance

RenovationRenovation

Rental HousingRental

Housing

Moving

Repurchasing

Moving

Repurchasing

RebuildingRebuilding

Daiwa ServiceImprovements/repairsHouse cleaningﾞGardening

Daiwa ServiceImprovements/repairsHouse cleaningﾞGardening

Daiwa LivingTenant recruitmentTenant managementTemporary leases

Daiwa LivingTenant recruitmentTenant managementTemporary leases

NihonJyutakuRyutu

RelocationSales agent

NihonJyutakuRyutu

RelocationSales agent

Good appraisals

Custom

er

Build

Daiwa HouseRebuilding plans

Daiwa HouseRebuilding plans

Daiwa HouseReliability Support 21ｃ

Daiwa HouseReliability Support 21ｃ

Daiwa HouseProduct development

Daiwa HouseProduct development

Daiwa HouseRenovations

Royal Home CenterSupply of materials

Daiwa HouseRenovations

Royal Home CenterSupply of materials

Daiwa ServiceMoving

Daiwa ServiceMoving

In-stores


7. Business Strategies－Single-Family House (subdivision) Business

We offer homes that will retain strong asset value through a comprehensive system ranging from streetscape development through to maintenance and management, under our basic aim of working

together with customers to create better neighborhoods.

Royal City Iogi Ⅱ

Bell Park Kobe

Packaging of popular plans and expansion nationwide

We will establish a system to facilitate efficient development and sales by packaging popular plans that incorporate high added value, including those that offer software-interior design options.

Strengthen land acquisition and bolster customer base

Establish “Better Community System”

We will establish a system to facilitate maintenance, with operational and management operations to be carried out on a neighborhood level and to maintain asset value through collaboration with other group companies (Daiwa Service, Nihon Jyutaku Ryutu, etc.) even after the customer has bought their house.

Strengthen our framework for providing solutions to customers that suit their lifestyles and living areas

We will establish a broad-based sales system that will enable us to offer solutions to customers to suit their lifestyle and commuting needs in large urban centers.

We will establish a land information center that will acquire sites such as idle corporate land. We will seek to bolster our customer base by increasing our Floral Avenue Club membership base (10,000 members in three years).


7. Business Strategies－Condominium Business

We will make use of our sales locations dotted around the country to actively expand

development in favorable locations.

Ｄ’Graford Morioka Eki-Mae Towers

Ｄ’Granse Narishiro

Nationwide condominium releases in 04

2,756Recruit Cosmos10th

2,935TOKYU LAND CORPORATION9th

3,025MITSUBISHI ESTATE8th

3,715TOWA REAL ESTATE

DEVELOPMENT7th

3,877DAIWA HOUSE INDUSTRY6th

4,270Anabuki Construction5th

4,559Sumitomo Realty & Development4th

4,598Nomura Real Estate

Development3rd

4,962Mitsui Fudosan2nd

9,023Daikyo1st

Source: Real Estate Economic Institute

※Statistics from Jan. 2004 – Dec. 2004

Strengthen asset value support through D’s Bridge

We will strength collaboration with group companies (Daiwa Service, Nihon Jyutaku Ryutu, etc.) and provide services that will help to maintain asset values of condominiums by acting as sales and leasing agents and by being involved in renovations.

（D’s Bridge condominiums 16,000→30,000）

Expand redevelopment and multi-business operations through collaboration with official agencies

We will bolster our land-buying strength through collaboration with local governments and public companies. We will increase our number of sales locations from 28 to 35 to expand our network of quality information centers nationwide, and we will also actively expand developments in favorable, central locations in regional areas.

Strengthen product development for real-estate securitization

Expand sales efficiency by expanding membership of our Friendship Club

Establish a special department to handle investment property development. Promote the development of our compact city-type condominiums range, “Ivan”.

We will expand Friendship Club membership from 48,000 to110,000.


We will establish specialized sales offices in the Tokyo Metropolitan Area, Nagoya Area and the Kinki Area with the aim of supplying 4,000 new residences in urban areas in the next three years. We will also strengthen marketing efforts to companies and government-affiliated enterprises.

We will strengthen our involvement in single-house-type dwellings with a large living area and maisonette-type dwellings. We will expand rental housing that offers high added value through the inclusion of furniture and appliances, etc.

We will strengthen our support system for property management and asset management by owners (DAPS).We will strength D-Room Chintai, which involves mediation with Daiwa House rental housing tenants. We will increase the number of properties under Daiwa Living’s management from 112,000 to 200,000.

City-type high-rise rental apartments“Royal Parks Ogikubo”Expand high-rise rental housing in city areas

Expand rental housing for single adults and newlyweds.

Strengthen involvement in tenant mediation, asset management and property management

Develop investment rental housing in favorable locations

7. Business Strategies－Rental Housing Business

We will concentrate resources in urban areas, etc. where market growth is anticipated to expand our business.

「DAPS」Daiwa Apartment House Partnership System

「家賃・入居者管理」から賃貸住宅建築・運営の代行まで幅広くサポート

経営サポート

長期にわたる定期的な点検と診断に基づく、メンテナンスを提案

施設管理サポート

オーナー向け研修会やコンサルティングなど資産管理をサポート

資産管理サポート

「家賃・入居者管理」から賃貸住宅建築・運営の代行まで幅広くサポート

経営サポート

長期にわたる定期的な点検と診断に基づく、メンテナンスを提案

施設管理サポート

オーナー向け研修会やコンサルティングなど資産管理をサポート

資産管理サポート

Asset management support including owner information sessions and consulting services.

Extensive support ranging from rent and tenant management to rental housing building and management assistance.

Maintenance solutions based on inspections and assessments carried out regularly over extended periods of time.

Asset Management Support

Management Support

Property Management Support


7. Business Strategies－Home Renovation Business

By strengthening our relationships with our building customers and strengthening collaboration with group companies, we are aiming to see a 60% increase in sales in the next three years.

Develop concept-based packaged products

We will develop and expand our sales of concept-oriented products centering around burglar-proof homes, easy access, energy-saving, and health features.

Increase orders from customers who have built with us

Through the “Endless Partnership”, we establish in the housing business, we will monitor the changes in our tenants’ lives and provide them with suitable renovation options. – We will use D-SMART※ customer information to strengthen

relationships with tenants. – We will work together with Royal Home Centers to ascertain

renovation needs and strengthen options for such.

“Intelligence Toilet” provides simple

daily health check-ups.

Home renovation example

Establish a low-cost system

We will hire retired engineers under renovation specialist contracts and establish a low-cost sales system.

New health-oriented concept-based products

Before After

※ D-SMART is a company-wide shared enterprise resource system designed to achieve three goals – to protect information, to increase the efficiency of operations and management, and to provide customer satisfaction.

Body fat measurement

Weight measurement

Urine sugar measurement

Blood pressure measurement


ＬＯＣ System

7. Business Strategies－Commercial Facilities Business

We will further promote the LOC system, our strongpoint, and aim to be a partner to our tenant companies and provide them with comprehensive support.

Together with Daiwa Information Services and Daiwa Royal, we will expand operational management, maintenance management, and salespromotion, especially for shopping centers and other complex-type facilities.

Through our broad-based relationships with tenants, we will strengthen development of large-scale commercial facilities such as shopping centers.

Especially for large-scale facilities, we will get involved in converting properties, getting new tenants in, remodeling and expansions, and cater to the low cost requirements of tenants.

At the expiration of leases, etc., we will take the opportunity to actively promote renovations or expansions that will add value to stores.

Number of leases due to expire for properties we built

(No.)

Strengthen property management business

Strengthen developer business (large-scale commercial facilities)

Strengthen conversion business

Use business opportunities that arise upon the expiration of contracts for properties we built

0

700

1,400

2005 2006 2007 2008 2009 2010 2011 2012 2013

契約満了物件

累計

Approx.15,000

Land owner

Contract with a reliable company

Secure land and building required

Tenant company

Desire to make use of land

Land use proposal

Intermediary

Daiwa House Industry

Desire to open shop

Provide location information

15,000

10,000

5,000

0

Properties for which lease contractshave been concludedTotal number of properties


7. Business Strategies－Distribution and medical and nursing care Facilities Business

We will seek to expand sales by providing consulting services, calling on the know-how in distribution and medical and nursing care facilities that we have accumulated

through the building of many such facilities.

Promote development business through real-estate investment and SPC method

Strengthen development of large-scale, high-performance distribution centers

We will provide distribution processing centers for large distributors and wholesalers. We will seek to strategically strengthen our relationships with the 105 distribution companies nationwide that we already have dealings with.

Strengthen solutions offered to suit the increasingly multi-functional needs of medical and nursing care facilities

We will provide small-scale, multi-functional residence facilities. We will seek to rebuild our business, shifting our focus from conventional nursing facilities to fee-based care-for-the-aged homes. We will utilize the operational knowledge accumulated by the Silver Age Research Center, and provide consulting services on building multi-functional care facilities.

（High-performance distribution center）

（Multi-functional facilities）

Distribution facilities built: 1,100

Medical and nursing care facilities built :1,500

Distribution facilities

Medical and nursing care facilities


7. Business Strategies－Resort Business

In addition to increasing the number of repeat visitors by creating group synergies, we are also seeking to enhance facilities and services for longer-stay visitors.

Civil Wedding

We will enhance and expand sales and marketing systems overseas to increase the number of visitors from the Asia region and America.

（Most overseas visitors currently come from Asia. Around 280,000 visitors come from overseas.)

Use the group’s customer base to expand patronage

We will offer options to suit the needs of customers to expand patronage by targeting single-family house and condominiums tenants, Land Owners’ Association members, Condominium Friendship Club members, and Fitness Club members.

Increase the number of users by improving service aspects

We will expand the range of hotel wedding services available (non-religious civil weddings with receptions held on the Venus Patio, etc.)We will improve services on golf courses that cater to seniors to increase usage rates on weekdays. We will seek to expand and improve services and facilities in order the expand the potential resort customer base.

Attract more customers from overseas

Guest Satisfaction Ratings

Kitakyushu-Yahata Royal Hotel

Kashihara Royal Hotel

Amanohashidate Miyazu Royal Hotel

Tonami Royal Hotel

Shinsyu-Matsushiro Royal Hotel

Royton Sapporo

Beppuwan Royal Hotel

Kajikaso Royal Hotel

Oizumikogen Yatsugatake Royal Hotel

Shikabe Royal Hotel85～89

Kushimoto Royal Hotel90+

Source: JTB Accommodation Survey (April 2003 – April 2004)Around 7,600 properties surveyed （Of which 110 scored over

90, and 385 scored between 85-90)


7. Business Strategies－Home Center Business

We will make operations more efficient and establish home centers in suburban areas of city centers.

Improve the cost structure of existing stores

Establish home centers in city suburbs

We will create special home centers in suburban areas and establish a competitive edge through these. Through strengthening group collaboration, we will strengthen interior decoration and renovation businesses through our home center business. We will make most stores either 1,000 tsubo or 3,000 tsubo in size. (1 tsubo =3.3m2.)For our 3,000-tsubo class stores, we will establish a new type of business by remerchandising these stores. – We will cater to both professional needs and BIY (Buy it yourself）

needs.

We will improve sales efficiency by improving store operations. We will seek to improve purchasing and distribution efficiency. We will promote work efficiency improvements through the use of IT.

Royal Home Center Tsukaguchi

Daiwa House Group Mid-Term Management Plan

Note:

All forward-looking statements made in relation to results or business operations provided in this document were current at the time of printing. However, please note that forward-looking statements were prepared based on company information and may involve potential risks and uncertainties. Therefore, please be aware that actual future

conditions may differ greatly from those outlined in the forward-looking statements provided herein, as there are various changeable factors involved.

7. business strategies future direction for business segments · we will strengthen our involvement...

Documents