#1O Daiwa HouseⓇ Group Presentation on Management Policies for institutional investors and securities analysts FY2020 2Q November 16, 2020 Daiwa House Industry Co., Ltd. Code No:1925 (First section of the Tokyo Stock Exchange)#2Changes in the Business Environment Caused by COVID-19 and Our Initiatives Strengthen measures for "New Normal" environment to live with COVID-19 placing the highest priority on protecting the lives and health of all our stakeholders Daiwa HouseⓇ | Lifestyle changes • Expansion of working at home Growing demand for suburban housing • Self-restraint in going out Increase in home time Growing demand among consumers choosing to stay at home Acceleration of Digital Transformation (DX) Our initiatives • New products adapted for working at home Strengthening single-family houses and condominiums in suburban areas • Conduct online meetings and webinars Launch of rental housing products with high sound insulation performance Strengthen development of logistics facilities Start data center development © 2020 Daiwa House Industry Co., Ltd. All rights reserved. 1#3Daiwa HouseⓇ Our initiatives for "New Normal" (1) Developing products that cater to new working and living styles Offering also services such as web-based home designing and online housing exhibition tours Providing products adapted for working at home | Online home building Single-family houses products for working at home "Comfortable workplace" and "Connecting work pit" Providing comfortable living spaces and responding to increasing use of delivery services New rental housing product with high sound insulation performance "GRACA" Multifunctional delivery lockers for rental housing that allows residents to pick up packages using smartphones "D-room BOX" © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Online housing exhibition tours and home building simulations at our website Condominiums located in the suburbs of major cities נננננ Condominiums located in the suburbs of major cities "PREMIST Shimura 3-chome" 2#4Our initiatives for "New Normal" (2) Daiwa HouseⓇ Accelerating logistics facility development for which demand is growing due to in-home consumption Strengthening logistics solutions while developing facilities with higher performance Developed area of logistics facilities (Japan) D-project Yokkaichi East DPL Shin-Fuji II DPL Kakegawa III DPL Toyama Imizu D-project Inuyama etc. Hokushinetsu, Chubu 28 buildings (863 thousand m) *As of Sept. 30, 2020, incl. under construction Hokkaido 8 buildings (275 thousand m) D-project Sapporo South II DPL Sapporo Higashi-Kariki DPL Sapporo South D-project Sapporo South V DPL Sapporo Rail Gate etc. | Properties scheduled to be completed DPL Iwate Kitakami II DPL Toyama Imizu (May 2021) DPL Sapporo Rail Gate (May 2022) D-project Nishi-Yodogawa DPL Ibaraki D-project Osaka Ibaraki D-project Kadoma D-project Ibaraki North etc. Kinki 26 buildings (83.5 thousand m) DPL Okayama Hayashima DPL Okayama Airport South D-project Hofu DPL Hiroshima Kan-on D-project Sakaide etc. Chugoku, Shikoku 20 buildings (341 thousand m) D-project Fukuoka Tohara D-project Okinawa Urasoe D-project Fukuoka Umi DPL Fukuoka Airport North DPL Tosu etc. Kyushu 18 buildings (612 thousand m) Tohoku 21 buildings (370 thousand mi) Kanto 149 buildings (5,696 thousand m) DPL Sendai Port DPL Sukagawa DPL Iwate Hanamaki D-project Koriyama etc. DPL Kunitachi Fuchu DPL Misato II D-project Koto Tatsumi D-project Hadano Nakai DPL Utsunomiya DPL Maebashi D-project Jonanjima D-project Inzai DPL Shin-Yokohama DPL Chiba Yotsukaido DPL Urawa Misono etc. Frameworx Daiwa House Group Logistics strategy Network optimization [Nationwide 270 buildings (Total floor area 8.995 million m) 】 ** Hacobu Efficient transport and delivery acca Daima HanCroup DPL Hiroshima Kan-on (Nov. 2021) DPL Shin-Yokohama (Mar. 2022) DPL Tosu (Mar. 2021) DPL Ibaraki North (Aug. 2022) GROUND Logistics robotics MUJn Digitization using blockchains © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Building a system infrastructure to provide optimal route creation through Al Horizontal development of know-how such as proprietary automated warehouse systems Reduce variable delivery costs while maintaining service levels in response to demands for multi-product, multi-frequency delivery 3#5Our initiatives for "New Normal" (3) Daiwa HouseⓇ Started development of Japan's largest data center to capture the demand for digitization, given the progress in digitization among corporations due to COVID-19 | Air Trunk TOK1(Tokyo-one) Data Center © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Location Inzai city, Chiba pref. (in Chiba New Town) Total site area Total floor area Approx. 235,000m Approx. 330,000m From Oct. 2020 to 2030 (scheduled) AIRTRUNK Total construction period It is located on the Shimosa plateau which has a solid ground Japan's largest data center park (maximum 15 buildings) The total floor area is 330,000 square meters, which is equivalent to 7 Tokyo Domes The maximum capacity of electricity that can be supplied: 600MW Inviting an extra-high-voltage substation capable of supplying up to 1,000 MW of electricity within the park. 4#6Real Estate Investments Investment plans for logistics, business and corporate facilities were revised upward to meet changes in customer needs due to COVID-19 Daiwa House Plans for sale were also revised upward while securing new exit options | Real estate investment and sales (xbillion) Investment balance (¥billion) 1,282.7 1,228.6 1,123.0 Rental Housing Logistics, Business & Corporate Facilities Commercial Facilities Overseas 1,077.9 1,025.5 971.9 Initial plan 150.0 350.0 150.0 700.0 50.0 Revied plan 150.0 650.0 50.0 Sixth plan cumulative 96.8 298.5 99.3 502.2 results 7.5 Initial plan Revied plan Sixth plan cumulative results 308.2 © 2020 Daiwa House Industry Co., Ltd. All rights reserved. 400.0 670.0 150.0 1,000.0 eing rente 464.6 550.7 572.9 586.2 622.8 573.1 End of Mar. End of Sept. End of Mar. End of Sept. End of Mar. End of Sept. 2018 2020 2020 2018 2019 2019 Outline of "Daiwa House Logistics Core Fund" Asset size Asset composition ¥300.0 billion (medium-term goal) Logistics facilities (100%) Target property Next-generation logistics facilities and environmentally-friendly logistics facilities developed by Daiwa House Group Date of establishment 2020 years (schedule) Ⓡ 5#7Business Performance Forecasts for FY2020 The dividend amount was revised upward to 110 yen per share in line with the revised earnings forecasts for FY2020 Daiwa HouseⓇ © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Net sales Previous Revised (\billion) Change Forecasts Forecasts 3,650.0 4,000.0 350.0 Operating income 170.0 258.0 88.0 Ordinally income 164.0 243.0 79.0 Net income attribute to 105.0 130.0 25.0 owners of the parent Net income per share (Yen) 159.96 198.05 38.09 Dividend amount (Yen) 90.00 110.00 20.00 Dividend payout ratio 56.9% 55.5% -1.4pt 6#8Strengthen Our Structure for Growth Daiwa HouseⓇ Enhancing governance while optimizing the supply chain and maximizing the value chain of the entire Group | Introduction of the business division-based system | Strengthening value chain for each business Sales Design Construction After-sales service Reform Sale/Rebuilding Board of directors President/ CEO Single-Family Houses Division Rental Housing Division Commercial Facilities Division Logistics, Business & Corporate Facilities Division Condominiums Division Head office of group companies Environment Energy Division Overseas Division © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Related Business Division Single-Family Houses Division Division Rental Housing Commercial Facilities Division Daiwa House Industry DesignArc Daiwa Lantec Daiwa House Reform Nihon Jyutaku Ryutu Sales Design Construction Management Reform Sale/Rebuilding Daiwa House Industry Daiwa Living Management Daiwa House Reform Daiwa House Industry Land development Construction Leasing Daiwa House Industry Management Daiwa Information Service Daiwa Royal Sports Club NAS Royal Home Center 7#9The Next Fiscal Year and Beyond Daiwa HouseⓇ We plan to start a new medium-term management plan based on the division-based system in FY2022 in view of significant changes in the business environment Sixth Medium-Term Management Plan Single-year policy (\billion) 4,380.2 4,000.0 381.1 258.0 233.6 FY2019 © 2020 Daiwa House Industry Co., Ltd. All rights reserved. 130.0 FY2020 Revised Forecasts FY2021 FY2022 Seventh Medium-Term Management Plan (scheduled) Net sales Operating income ■Net income attribute to owners of the parent 8#10ESG Initiatives 1. Work style reform Daiwa HouseⓇ Address social issues by continuing investment in reforming work styles and reinforcing technology infrastructure Promoting digitization to improve work efficiency and safety at construction sites | Digitization of construction sites (image) Smart Control Center (remote control room) Cooperation Construction sites Construction workers Control the construction site remotely by using digital data from the site and cooperating with field workers Site supervisors Smart Control Centers established at 10 locations nationwide Construction site remotely managed at the Smart Control Center © 2020 Daiwa House Industry Co., Ltd. All rights reserved. 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 6#11ESG Initiatives 2. Efforts at Environment Pursuing energy conservation, new energy creation, and reduction CO2 emissions to meet the targets set by the SBT, EP100 and RE100 Daiwa HouseⓇ | Progress of SBT, EP 100 and RE100 | Issuance of Green Bonds Theme KGI 2018 results 2019 results 2020 targets 2030 targets Long-term goals Outline of "Daiwa House Green Bonds" Reduction CO2 Greenhouse gas -26% -32% emissions emissions (SBT) (per sales unit) from FY2015 from FY2015 -30% from FY2015 -45% from FY2015 2050 year Challenge to achieve Net Zero Total amount 20.0 billion yen Issuance date September 2020 Daiwa House Group New Energy conservation (EP100) Energy efficiency (=Consolidated net sales ÷ Energy consumption) 1.27 times 1.34 times from FY2015 from FY2015 1.3 times from FY2015 1.5 times from FY2015 2040 year 2.0 times name) Use of proceeds (creation) New energy Renewable energy generation rate (=Renewable energy 84% 96% 100% 100% (To consuming internally) generation volume + energy creation (RE100) utilization volume) Renewable energy utilization rate (use) (=Renewable energy 0.23% 0.3% 7% 30% 100% utilization volume ÷ energy utilization volume) © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Training Center (tentative Community development with 100% renewable energy Environmentally-friendly logistics facilities 7 AFFORDABLE AND CLEAN ENERGY 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 11 SUSTAINABLE CITIES AND COMMUNITIES 13 CLIMATE ACTION 10#12ESG Initiatives 3. Sustainable town development Expanding Ko "Re"kara City, a suburban multi-use community development, under the banner of our 3 “Re's catchphrase to realize a more sustainable lifestyle Ko "Re" kara City Project Daiwa HouseⓇ 7 AFFORDABLE AND CLEAN ENERGY Re ality Embody future lifestyles promptly* *Making new community development a reality, not just a "dream" Renewable energy Use renewable energy not only for buildings but also for all energy in daily life 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 11 SUSTAINABLE CITIES AND COMMUNITIES Resilience Prepare for emergencies by increasing water and food self-sufficiency First town development with 100% renewable energy "Funabashi Grand Oasis" Funabashi city, Chiba pref. Location Building type Single-family houses, rental housing, condominium, commercial facility Total construction period From Aug. 2018 to Mar. 2021 13 CLIMATE ACTION © 2020 Daiwa House Industry Co., Ltd. All rights reserved. 11#13ESG Initiatives 4. Redevelopment of communities Daiwa HouseⓇ Promoting the creation of attractive communities where residents can continue to live with peace of mind for a long time Attempt to redevelop communities into sustainable ones by increasing the added value of the entire town Livness Town Project 街まるごと七夕まつ PENSAD Daiwa House Group 8 DECENT WORK AND ECONOMIC GROWTH PEN AWBONES リブネスタウン Livness Town 11 SUSTAINABLE CITIES AND COMMUNITIES Town-wide Tanabata Festival that strengthens bonds among residents while avoiding congestion (above) and mobile sales vehicles that make rounds in the complex (below) (Kamigo Neopolis, Kanagawa Pref.) © 2020 Daiwa House Industry Co., Ltd. All rights reserved. Moth orchid cultivation facility for job creation (Midorigaoka Neopolis, Hyogo Pref.) 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO 12#14O Daiwa HouseⓇ Group Disclaimer regarding business forecasts, etc. (Notes regarding forward-looking statements) The above business forecasts are based on information available as of the date of announcement of this material, and are subject to factors of uncertainty that may possibly impact the future results of operations and are not a guarantee of the achievement of those results. The Company's actual results may differ significantly from those presented herein as a consequence of numerous factors such as financial market trends, economic conditions, competitor situations and fluctuations in land prices. End