The Story of Value Creation Contributing to Society through BusinessShareholder Value Creation Enhancing the Value of the Endless HeartManagement Structure Data Section 86 (FY) (FY) (FYE) 0.49 8.8 2016 2016 2016 1,971 310.0 640.6 1,329.9 0.42 7.6 2015 2015 2015 243.1 491.9 1,762 1,181.9 0.51 6.4 2014 2014 2014 180.3 1,678 563.5 1,112.8 0.40 6.1 2013 2013 2013 163.5 992.6 393.5 Group Integrated Report 2017 1,496 0.51 6.4 2012 2012 2012 734.8 128.0 1,267 374.7 0.58 6.2 2011 2011 2011 657.8 114.9 383.6 1,135 Net assets (¥ billion) Net assets per share (yen) Interest-bearing debt (excl. lease obligations) (¥ billion) Debt-equity ratio (times) Operating income margin (%) 0.62 5.2 87.6 2010 2010 2010 635.1 395.5 1,095 Operating income (¥ billion) Rental Housing ■ Condominiums ■ Single-Family Houses ■ ■ Commercial Facilities ■ Existing Home Business Facilities ■ Logistics, Business and Corporate ■ Other Businesses ■ Adjustment Operating income and operating income margin Operating income ratio Interest-bearing debt and debt-equity Net assets and net assets per share (FY) (FY) (FY) 5.9 16.3 2016 2016 2016 201.7 3,555.8 3,512.9 3.3 2015 2015 2015 9.1 103.5 3,192.9 3,257.8 4.1 11.2 2014 2014 2014 117.1 2,810.7 3,021.0 4.1 11.9 2013 2013 2013 102.0 2,700.3 2,665.9 3.0 9.5 66.2 2012 2012 2012 2,007.9 2,371.2 1.7 5.1 33.2 2011 2011 2011 1,848.7 2,086.0 1.4 Total assets (¥ billion) ROA (%) Net income attributable to owners of the parent (¥ billion) ROE (%) 4.4 27.2 1.7% to 0.8% in fiscal 2015, the Company posted extraordinary losses of ¥84.9 billion. As a result, the ROE dropped to approximately five points. 2010 2010 2010 1,934.2 1,690.1 (¥ billion) Rental Housing ■ Condominiums ■ Single-Family Houses ■ ■ Commercial Facilities ■ Existing Home Business Facilities ■ Logistics, Business and Corporate ■ Other Businesses ■ Adjustment Note: By changing the discount rate used to calculate retirement benefit obligations from By changing the discount rate used to calculate retirement benefit obligations from Note: Net sales Net income attributable to owners of the parent and return on equity (ROE) Total assets and return on total assets (ROA) 92 8.8 5.9 196 2.04 1.37 30.2 1.62 36.8 0.49 0.32 20.5 16.3 1,971 10.51 137.5 164.4 3,196 (¥ million) 39,770 80,086 304.14 2016 721,312 411,220 640,671 287,691 310,092 300,529 201,700 (343,643) 3,555,885 2,129,297 1,329,901 1,308,290 ¥3,512,909 80 7.6 3.3 9.1 172 1.94 1.26 51.2 1.80 35.9 0.42 0.26 19.8 1,762 20.24 136.5 164.8 3,166 37,191 156.40 2015 278,497 632,417 389,316 491,964 243,100 233,592 103,577 (202,447) (130,185) 3,257,805 2,109,310 1,181,986 1,170,278 ¥3,192,900 60 6.4 4.1 145 1.91 1.21 33.8 1.41 36.6 0.51 0.29 19.2 11.2 1,678 13.34 138.7 158.3 2,371 34,903 177.74 2014 139,465 129,202 540,868 360,516 563,530 180,352 202,628 117,133 (235,027) 3,021,007 1,565,858 1,112,817 1,105,628 ¥2,810,714 50 6.1 4.1 129 1.89 1.26 31.0 1.17 37.0 0.40 0.18 18.8 11.9 1,496 10.87 127.2 161.2 1,751 32,628 78,451 161.08 2013 110,131 507,903 344,326 992,686 986,518 393,568 163,576 176,366 102,095 (240,439) 2,665,946 1,156,397 ¥2,700,318 35 6.4 9.5 3.0 113 1.62 1.35 30.6 1.44 30.9 0.51 0.17 20.7 1,267 15.89 136.8 189.4 1,820 30,361 66,274 114.52 (28,633) 2012 164,247 415,771 287,746 734,883 733,623 374,788 128,024 145,395 (140,736) 2,371,238 1,091,856 ¥2,007,989 25 89 6.2 5.1 1.7 1.66 1.84 43.6 0.96 31.5 0.58 0.20 20.6 1,135 19.07 133.7 188.9 1,094 57.36 27,130 33,200 (28,766) 2011 656,314 248,771 379,952 264,996 657,891 657,111 383,625 114,955 108,506 (117,226) 2,086,097 ¥1,848,797 20 77 4.4 1.4 5.2 2.14 1.60 42.5 0.93 0.39 32.8 0.62 20.0 1,095 21.70 47.09 174.8 197.3 1,022 26,310 27,267 87,697 79,049 (83,594) (77,834) 2010 613,119 127,957 635,186 634,151 395,556 337,213 249,516 1,934,236 ¥1,690,151 2 1 Earnings per share (EPS) Cash dividends* Book-value per share (BPS) Number of group companies Consolidated to non-consolidated net sales ratio (times) Consolidated to non-consolidated net income ratio (times) Dividend payout ratio (%) Price earnings ratio (PER) (times) Price to book value ratio (PBR) (times) Number of employees (FYE)* Market capitalization Stock prices (FYE) (yen) Per share of common stock (yen): Net cash provided by operating activities Net cash used in investing activities Net cash provided by (used in) financing activities Net assets ratio (%) Interest-bearing debt Debt-equity ratio (times) Net debt-equity ratio (times) Current ratio (%) Fixed ratio (%) Return on total assets (ROA) (%) Total assets Net assets Net assets excluding non-controlling interests Operating income Operating income margin (%) Ordinary income Net income attributable to owners of the parent Return on equity (ROE) (%) Gross profit Gross margin (%) Selling, general and administrative expenses Fiscal Year Net sales *1 Cash dividends for fiscal 2015 include a commemorative dividend of ¥10 to mark the 60th anniversary of the Company’s foundation. *1 Cash dividends for fiscal 2015 include a commemorative dividend of ¥10 to mark the 60th anniversary of the Company’s *2 Regular employees only. Data Section Highlights Financial Daiwa House Group Integrated Report 2017

Data Section 85 6 Data Section Non-Financial Highlights (CSR Self-Assessment Indices)

Customers Stakeholders around the Daiwa House Group Fiscal 2016 results/CSR Self-Assessment Indices Progress rate graph by stakeholder The Story of Value Creation (fiscal 2016 results against fiscal 2018 targets) As a Group that co-creates value for individuals, communities and people’s lifestyles, the Daiwa Priority issues Full FY2018 FY2016 Rate of Customers House Group has, since the time of its founding, upheld the fundamental concept of “co-cre- Community Shareholders Target stakeholder (The most important Indices residents points targets results progress 100.0% priority issues) 48.8% ating a brighter future” together with the stakeholders, who play important roles in its business Foundation of 80.0% ● Customers CSR operations, and has built good relations with many stakeholders based on this concept. 3 (1) 7 175 170 83 48.8% 60.0% management Employees ● Employees 4 (2) 10 250 247 113 45.7% 40.0% 69.0% Business 20.0% 45.7% Employees ● Business partners 3 (2) 8 200 193 126 65.3% partners 0.0% ● Society Community residents 2 (1) 5 125 125 85 68.0% Business ● Environment 6 (1) 11 225 223 167 74.9% Contributing to Society through Business Environment Environment partners ● Foundation of 74.9% 65.3% CSR management 8 (–) 8 200 187 129 69.0% FY2016 results Expanding our stakeholders Total 26 49 1,175 1,147 703 61.3% Community 68.0% FY2018 targets residents

● Customers ● Employees ● Business partners ● Community residents ● Shareholders Priority issues relating to stakeholders Number of Number of employees Number of Number of partner Number of Among the 26 priority issues, the following shows only the 20 indices of the seven top priority issues. For the other indices Daiwa Family Club (Regular employees only) partner companies organizations for shareholders Point allotment members community co-creation and method used to assess the CSR Self-Assessment Indices, please see the “Sustainability Report 2017.” in the CSR activities Self-Assessment ● Customers Indices Shareholder Value Creation The most important FY2018 FY2016 FY2016 220,754 39,770 4,653 977 43,983 Indices priority issues targets results (results/targets) Customer (owner) satisfaction (single-family houses)*1 80% or above 68.3% 15 pts/25 pts (as of March 31, 2017) Long-term efforts to Long-term viewpoint evaluations (single-family houses)*1 100% 96.4% 20 pts/25 pts earn trust Setting of CSR Self-Assessment Indices Questionnaire evaluation after taking residence (single-family houses)*1 70% or above 62.3% 20 pts/25 pts In fiscal 2006, the Group implemented a unique CSR Self-Assessment *1 Of the individual indices for the five business segments (single-family houses, rental buildings, condominiums, Management Plan, we aim to meet our performance targets for fiscal commercial facilities and logistics, business and corporate facilities), it only shows the one for the single-family houses segment. Index as a means of visualizing its efforts in the building its relationship 2018 and reinforce our management foundation by managing prog- ● Employees with stakeholders, and since then, it has been proceeding with the The most important FY2018 FY2016 FY2016 ress annually using the 26 priority issues (of which seven are the most Indices priority issues targets results (results/targets) Enhancing the Value of Endless Heart PDCA cycle to achieve that goal. important priority issues) and 49 indices in six fields, which were revised Degree of satisfaction of employees to overall human resources training 85pts 67 pts 10 pts/22 pts In fiscal 2016, along with the start of the Fifth Medium-Term according to the plan. Develop human resources Evaluation of OJT 80% 85.9% 15 pts/15 pts Rate of acquisition of professional qualifications by young employees 20% 14.8% 5 pts/15 pts The most important priority issues are preceded by the double circle symbol ( ). Create work environments Acquisition rate of male absence from work for child-rearing 50% 32.9% 5 pts/25 pts and systems where a diverse range of employees Number of female managers 160 108 0 pts/25 pts Building a trusting relationship with stakeholders (Society) Coexistence of environmental sustainability and corporate profitability can work flexibly Rate of employees with disabilities 2.30% 2.19% 10 pts/25 pts ● • Provide high quality products Prevention of global warming Business partners The most important FY2018 FY2016 FY2016 Customers Long-term efforts to earn trust • Harmony with the natural environment Indices priority issues targets results (results/targets) • (Preservation of biodiversity)

Proper communication with customers Management Structure Training of in-house employees (Purchasing Department)*2 95% 95% 17 pts/17 pts Environment • Conservation of natural resources Encourage business Evaluation of business partners and purchasing work based on in-house criteria 4.5 pts or above 4.2 pts 20 pts/25 pts • • Water resource conservation partners in CSR efforts Provide a safe and healthy work environment Rate of response of self-checks based on the Business Partner Code of Conduct 70% 15.2% 0 pts/25 pts • Prevention of chemical pollution Develop human resources Improve labor conditions Number of employees trained on-site 500 214 3 pts/25 pts • Prevention of soil contamination and ensure human Employees Create work environments and systems where Number of labor accidents -20% -20.6 25 pts/25 pts a diverse range of employees can work flexibly resources for construction subcontractors Number of partner company members 4,800 4,653 19 pts/25 pts • Provide employment opportunities for *2 Of the individual indices for Purchasing/Design and Construction Department, it only shows the one for Purchasing Department. exceptional human resources ● Community residents The most important FY2018 FY2016 FY2016 Creating a CSR mindset and strengthening our management system Indices • Fair competition priority issues targets results (results/targets) Active involvement in, and Business Encourage business partners in CSR efforts • Transparency Collaboration with NPOs and NGOs 50% 42.6% 15 pts/25 pts

collaboration with other Data Section Participation rate in Endless Donations 25% 36.9% 25 pts/25 pts partners Improve labor conditions and ensure human • Ethical conduct parties for local community Amount conversion of community co-creation activities by branch offices 300 million yen 148 million yen 5 pts/25 pts resources for construction subcontractors • Stakeholder engagement development Foundation • Creation of a CSR mindset ● Environment of CSR Active involvement in, and collaboration management • Risk management The most important FY2018 FY2016 FY2016 with other parties for local community Indices • Safety priority issues targets results (results/targets) Community development Rate of decrease from the fiscal 2005 figure in CO2 residents • Human rights awareness-raising Business activities 55% reduction 53.7% reduction 19 pts/25 pts • Contribute to the community by sharing busi- Prevention of global emissions per unit of sales • Handle human rights issues warming ness knowledge gleaned through experience Products and services Contribution to CO2 reduction (thousand t-CO2) 4,700 4,960 25 pts/25 pts

87 Daiwa House Group Integrated Report 2017 Daiwa House Group Integrated Report 2017 88 Data Section

Principal Subsidiaries and Associated Companies (as of July 1, 2017)

JAPAN Overseas The Story of Value Creation

Daiwa House Industry Co., Ltd. Daiwa Energy Co., Ltd. Frameworx, Inc. DH (Dalian) Administrative Management PT Daiwa Manunggal Logistik Properti ● Housing/ Commercial construction/ ● New power generation business & ESCO business ● Development of logistics systems Consulting Center Co., Ltd. ● Development, operation & management of Urban development, etc. ● Outsourced services logistics facilities Eneserve Corporation Fujita Corporation Daiwa Lease Co., Ltd. ● Electrical equipment maintenance checks & ● General construction/ Real estate Dalian Dahezhongsheng Estate Co., Ltd. PT Daiwa Tetra Manunggal Konstruksi ● Building & vehicle leasing/ Land utilization/ Retail sale of electricity ● Real estate development ● Construction Development & operation of commercial Cosmos Initia Co., Ltd. facilities/ Environmental greening, etc. Contributing to Society through Business Daiwa Lantec Co., Ltd. ● Real estate sales/ Dalian Yihe Property Management Co., Ltd. Daiwa House Malaysia Sdn. Bhd. ● Ground survey & reinforcement/ Construction Real estate rental & agency services ● Real estate management ● Single-family house market research, R&D into DesignArc Co., Ltd. & exterior construction production of housing by industrialized methods ● Interior items/ Housing materials/ Rental Cosmos More Co., Ltd. Dalian Civil Aviation Hotel Co., Ltd. Daiwa House Life Support Co., Ltd. ● Office relocation/ Construction of showrooms ● Management & operation of hotels KD Living, Inc. Daiwa Logistics Co., Ltd. ● Management & operation of fee-based nursing for condominiums ● Rental housing ● Transportation/ Warehouse & storage care facilities for the elderly Tianjin Jiuhe International Villa Co., Ltd. Cosmos Life Support Co., Ltd. ● Management of serviced Daiwa Living California Inc. Daiwa Living Management Co., Ltd. Osaka Marubiru Co., Ltd. ● Total management of real estate ● Rental housing ● Businesses related to rental housing ● Management of hotels/ Daiwa House (Wuxi) Real Estate Rental of commercial facilities Daiwa House Parking Co., Ltd. Development Co., Ltd. Daiwa Living Australia Pty Ltd Shareholder Value Creation Daiwa Living Co., Ltd. ● Parking lot operation & management/ ● Real estate development ● Serviced apartments ● Management & operation of rental housing Nishiwaki Royal Hotel Co., Ltd. Real estate sales & rental ● Hotels Daiwa House (Changzhou) Real Estate Fujita (China) Construction Co., Ltd. Daiwa Estate Co., Ltd. Daiwa Cosmos Construction Co., Ltd. Development Co., Ltd. ● Construction ● Real estate agency Sports Club NAS Co., Ltd. ● Large-scale condominium renovation work ● Real estate development ● Fitness clubs Fujita Research Daiwa Living Utilities Co., Ltd. Daiwa House Property Management Co., Ltd. Daiwa Baoye (Wuxi) Property Management ● Research into overseas construction technology ● Retail sale of electricity and gas Daiwa House Asset Management Co., Ltd. ● Maintenance management of buildings used Co., Ltd. ● Asset management of an investment for logistics facilities and healthcare facilities ● Real estate management Fujita Corporation Vietnam corporation Enhancing the Value of Endless Heart Daiwa LifeNext Co., Ltd. ● Construction/ Real estate development ● Management of condominiums & buildings/ HeartOne Trust Co., Ltd. Shanghai Hebao Property Service Co., Ltd. Daiwa House Real Estate Investment Moving services ● Property management trust business ● Real estate management Fujita Philippines Construction and Management Co., Ltd. Development, Inc. ● Asset management of an investment Global Community Co., Ltd. Daiwa Living Stay Co., Ltd. Baoye Daiwa Industrialized House ● Construction corporation/ Real estate investment advisory ● Management of condominiums & buildings ● Hotels/ Serviced apartments Manufacturing Co., Ltd. ● Production & sale of industrialized house parts Fujita Engineering India Pvt., Ltd. Daiwa House Financial Co., Ltd. and materials Daiwa Information Service Co., Ltd. Fine Co., Ltd. ● Construction ● Credit card operations ● Land utilization/ Development & operation of ● Sale of commodities for daily use, household Daiwa House California Inc. commercial facilities furnishings, others Fujita Corporation Singapore Pte. Ltd. Daiwa House Insurance Co., Ltd. ● Real estate development ● Investment business ● Nihon Jyutaku Ryutu Co., Ltd. Non-life insurance agency Smart Clinic Inc. Management Structure Daiwa House Texas Inc. ● Real estate agency & property management ● Planning and operation of medical malls Fujita Corporation (M) Sdn. Bhd. services/ Appraisals/ Renovation work Daiwa CoreFactory Co., Ltd. ● Real estate development ● Construction ● Manufacture of housing parts & materials Daiwa Royal Co., Ltd. Daiwa House Guam Co., Ltd. Fujita Integral Mexico S.A. de C.V. ● Rental of commercial facilities/ Hotels Shinwa Agency Co., Ltd. ● Construction ● Construction/ Environment-related business/ ● Advertising & travel agency Real estate development Royal Home Center Co., Ltd. Daiwa House Australia Pty Ltd Media Tech Inc. ● DIY/ Gardening/ Interior items ● Real estate development Fujita Corporation (Thailand) Ltd. ● Data systems/ Data services ● Construction Daiwa House Reform Co., Ltd. Daiwa House Vietnam Co., Ltd. Daiwa Homes Online Co., Ltd. ● ● Renovation design & execution/ Industrial park development/ Outsourced services Cosmos Australia Pty Ltd Data Section ● Real estate agency Property inspection ● Real estate development/ Tourism services Daiwa House Real Estate Development D.U-NET Co., Ltd. Co., Ltd. Daiwa Resort Co., Ltd. (Daiwa Royal Hotels) Stanley-Martin Communities, LLC ● ISP business ● Rental factories ● Resort hotels ● Single-family housing

Daiwa Royal Golf Co., Ltd. Double-D Co., Ltd. PT Daiwa House Indonesia ● Golf course operations ● Planning, development and operation of ● Oversight of business operations in Indonesia information technology

89 Daiwa House Group Integrated Report 2017 Daiwa House Group Integrated Report 2017 90 Data Section

Share Information (as of March 31, 2017) Corporate Data (as of June 29, 2017)

Authorized 1,900,000,000 shares Shareholdings by shareholders Corporate name: Daiwa House Industry Co., Ltd. Branches: 48 The Story of Value Creation Number of Equity Issued 666,238,205 shares Shares Founding: April 5, 1955 (Established: March 4, 1947) Factories: 10 shareholders stake (%) Number of shareholders 43,983 Paid-in capital: ¥161,699,201,496 Research center: Central Research Laboratory (Nara) ■ Financial institutions 207 284,377,455 42.68 43,983 Employees: Training centers: Nara, Osaka and ■ Foreign investors 820 232,873,314 34.95 39,770 (as of March 31, 2017) Thousands Equity Number of shareholders (consolidated) Overseas offices/ Shanghai (China) Principal shareholders 1 2 ■ Individuals and others 41,539 71,615,577 10.75 of shares* stake* (%) 666,238,205 shares Securities traded: Representative offices: Taipei (Taiwan) ■ Other corporations 1,366 62,767,981 9.42 Securities code: 1925 The Master Trust Bank of , Ltd. (trust account) 43,200 6.48 Johor Bahru (Malaysia) ■ Securities companies 50 14,531,727 2.18 Head office: 3-3-5 Umeda, Kita-ku, Osaka 530-8241, Japan Jakarta (Indonesia) Japan Trustee Services Bank, Ltd. (trust account) 32,807 4.92 ■ Treasury stock 1 72,151 0.01 Phone: +81-6-6346-2111 Bangkok (Thailand) Contributing to Society through Business Sumitomo Mitsui Banking Corporation 16,117 2.42 Tokyo Head office: 3-13-1 Iidabashi, Chiyoda-ku, Manila (Philippines) Tokyo 102-8112, Japan Hanoi (Vietnam) The Bank of Tokyo-Mitsubishi UFJ, Ltd. 15,470 2.32 Shareholdings by scale Phone: +81-3-5214-2111 Gurgaon (India) Daiwa House Industry Employee Shareholders Number of Equity Offices (32): Nagoya Yokohama Yangon (Myanmar) 12,528 1.88 Shares Association shareholders stake (%) Hokkaido Yokohama-kita Contact: Daiwa House Industry Co., Ltd. STATE STREET BANK AND TRUST COMPANY 505001 12,464 1.87 ■ 10 million or more 8 156,693,283 23.52 Sendai Atsugi IR Department, Management 43,983 ■ 1 million or more 106 340,246,338 51.07 Fukushima Kanazawa Administration Headquarters Japan Trustee Services Bank, Ltd. (trust account 5) 12,160 1.83 Number of shareholders Phone: +81-6-6342-1400 ■ 100 thousand or more 308 101,468,494 15.23 Tsukuba Niigata 666,238,205 shares Fax: +81-6-6342-1419 Nippon Life Insurance Company 11,944 1.79 ■ 10 thousand or more 1,168 30,887,405 4.64 Ibaraki Gifu Utsunomiya Okazaki e-mail: STATE STREET BANK AND TRUST COMPANY 505225 9,558 1.43 ■ 1 thousand or more 15,595 31,026,792 4.66 [email protected] Gunma Yokkaichi Shareholder Value Creation ■ 1 hundred or more 22,500 5,747,531 0.86 Japan Trustee Services Bank, Ltd. (trust account 1) 8,982 1.35 Saitama Shiga Website: http://www.daiwahouse.com/English ■ Less than 1 hundred 4,298 168,362 0.03 Saitama-nishi Kyoto *1 Number of shares held is rounded down to the nearest thousand. *2 Equity stake is calculated excluding 72 thousand shares of treasury stock. Note: Equity stake shows the percentages of the total outstanding shares. Saitama-higashi Sakai Chiba Kobe Kashiwa Okayama Keiyo Hiroshima Joto Fukuoka Trends in share price of Daiwa House Industry and TOPIX Market capitalization ranking Musashino Kita-Kyushu (home-building/construction/real estate sectors) Daiwa House Industry’s share price TOPIX value at end of month Enhancing the Value of Endless Heart Market capi- (yen) Securities Company name talization*5 4,000 4,000 code (¥ billion) 3,000 3,000 1 8802 Co., Ltd. 2,790.1 Board of Directors, Audit & Supervisory Board and Executive Officers (as of June 29, 2017) 2,000 2,000

1,000 1,000 Daiwa House 2 1925 2,571.0 Industry Co., Ltd. 0 0 Board of Directors Audit & Supervisory Board Executive Officers Chairman and CEO Takeo Higuchi* Audit & Supervisory Tatsushi Nishimura Shoji Tanaka Moritaka Noumura 2012 2013 2014 2015 2016 (FY) 3 8801 Co., Ltd. 2,512.7 President and COO Naotake Ono* Board Members Kenji Hirata Naoki Hayashi Michikazu Sora 2012 2013 2014 2015 2016

Executive Vice Presidents Tamio Ishibashi* Kuniaki Matsumoto Naoki Nishioka Toshiya Nagase Management Structure Market capitalization*3 (¥ million) 1,091,857 1,156,398 1,565,860 2,109,310 2,129,297 Sumitomo Realty & 4 8830 1,591.5 Katsutomo Kawai* Outside Audit & Kazuhiro Iida Yukikazu Kataoka Yoshinori Hashimoto TSR*4 (%) 69.56 -1.04 38.83 36.90 3.85 Development Co., Ltd. Director and Senior Takeshi Kosokabe* Supervisory Board Yukinori Kuwano Kazuhiro Kotaka Tetsuro Wada Share price high (yen) 1,899.0 2,330.0 2,467.5 3,654.0 3,367.0 Daito Trust Construction Members 5 1878 1,432.8 Managing Executive Kazuto Tsuchida* Shonosuke Oda Shigeki Ochiai Kazunori Nibe Share price low (yen) 967.0 1,592.0 1,673.0 2,326.0 2,500.5 Co., Ltd. Officers Osamu Fujitani Isao Mizutani Shinji Fujita *3 At the fiscal end of year *5 Based on closing price on July 31, 2017 *4 Total shareholder return Fukujiro Hori Managing Executive Officers Yoshin Minagawa Hirotaka Najima Keiichi Yoshii Keigo Okada Kenji Kinoshita Hiroshi Kono Hitoshi Fukushima Director and Managing Takashi Hama Mikio Sasaki Takaki Hiromori Yoshito Iki Yuichi Sugiura Inclusion of Daiwa House Industry in ESG indices Executive Officers Makoto Yamamoto Mototsugu Takai Keisuke Shimonishi Takafumi Nakao Hideharu Hashimoto ESG indices adopted by the GPIF Other major ESG indices Yoshiaki Tanabe Kohei Yamasaki

Hirotsugu Otomo Data Section Tatsuya Urakawa Senior Executive Officers FTSE: ESG rating Kazuhito Dekura Shinichi Hirose Kyoji Kato 3.7 (out of 5.0) Yoshinori Ariyoshi Eiichi Shibata Koji Harano Outside Directors Kazuyoshi Kimura Masaharu Chiba Hirofumi Hama

MSCI: ESG rating Yutaka Shigemori Tetsuya Tamura Takashi Miyatake AA (seven levels from Yukiko Yabu Yasuo Nakamura Kazuhiro Tada AAA to CCC) Yuji Yamada Nobuhito Ishibashi For details of what is included and a description about the logos used, please access the URL link on the right: http://www.daiwahouse.com/English/sustainable/csr/performance_data/evaluation/ * Representative Director Nobuya Ichiki

91 Daiwa House Group Integrated Report 2017 Daiwa House Group Integrated Report 2017 92 Editorial Postscript

Taking on all challenges, now and in the future

Thank you for reading the whole of our report.

It has been our wish that all our stakeholders—particularly our shareholders and investors—should understand the cor- porate philosophy and corporate DNA of the Daiwa House Group, which have been passed on from one generation of management to the next. It is a story that binds past, present, and future into one narrative of how we have continually addressed society’s needs ever since the foundation of Daiwa House Industry. For this reason, we began publishing this Integrated Report in 2016. The present report—the second to be published—focuses on the three “bases” that are crucial to the Daiwa House Group’s value creation with the aim of giving the reader a fully satisfactory explanation of our growth potential.

Our history is one of constantly taking on one new challenge after another. The founder of Daiwa House industry, Nobuo Ishibashi—motivated by the desire to help Japanese society develop in the period immediately following WWII—set up the Company in 1955 with a mere 18 employees, aiming to bring about the “industrialization of construction.” Many years later, having reached the major milestone of ¥1 trillion in annual sales, and on the brink of our 50th anniversary, our founder, Nobuo Ishibashi, passed on to us the “dream” of becoming a corporate group with annual sales of ¥10 trillion by 2055—the 100th anniversary of the Company’s founding. Having inherited our founder’s inspiration, we will pursue this dream with unwavering determination, and we will continue to move forward with undiminished vigor.

In closing, on behalf of the Daiwa House Group, I would like to express my sincere appreciation for the support and encouragement we have received from our stakeholders. I hope that the present report proves effective in deepening understanding of our operations going forward, and leads to your continued support for our efforts into the future.

Calligraphy (the Chinese character for “dream”) by Takeo Higuchi

The word “dream” encompasses a wide range of meanings. When we go to sleep at night, we dream. We also often refer to the past as “seeming like a dream.” But for us, these definitions of the word can be put to one side. When we use the word “dream,” which to us is very important, we are referring to hopes for the future. Having a dream makes people work to realize it. Few people are talented by nature, and excellent staff must be sought out. To be good at seeing through surface appearances to understand another person’s true nature and capabilities is the mark of a real business manager; without talent, nobody can successfully manage a company. As for the staff members, each of them, too, must nurture a dream in their breast. Companies grow by feeding off the dreams of their members. To live is to dream, and you must never give up on your pursuit of your dream.

Our founder, Nobuo Ishibashi

Yuji Yamada The photograph that forms the background to the calligraphy shown above is of the blossoms of the white mountain Senior Executive Officer cherry trees that grow in the slopes of Mt. Yoshino near Nobuo Ishibashi’s home town in Nara Prefecture. As well as General Manager, Finance Department and protecting these trees, with which our founder had strong emotional ties, we also conducts cherry tree preservation IR Department activities all over Japan so as to pass them on to succeeding generations.

93 Daiwa House Group Integrated Report 2017 Daiwa House Group Integrated Report 2017 94