Sekisui 02

Presentation of Financial ResultsPresentation of Financial Resultsfor 2Q of FYfor 2Q of FY20020088

(Fiscal Year Ending March 31, 2009)(Fiscal Year Ending March 31, 2009)

28 October, 200828 October, 2008

Naotake Okubo, PresidentNaotake Okubo, PresidentSekisui Chemical Co., Ltd.Sekisui Chemical Co., Ltd.

-1 -SEKISUI CHEMICAL GROUP

Summary of Profit and LossSummary of Profit and Loss

FYFY20020088 The FirstThe First--half Resultshalf Results

1.58.0-8.417.99.5Net Income

FY2007FH Actual

0

0.6

0.4

5.1

Difference

7

19.0

19.0

468.0

FY2008FH Plan

0

0.2

-0.7

4.9

Differencefrom thePlan

77Dividend（yen / share）

467.8472.9Net Sales

19.2

18.3

FY2008FH Actual

18.5Recurring Income

17.9Operating Income

(Billions of yen)


17.9

-0.2

-1.2

11.6

1.4

6.2

Ope.Inc.

467.8

-12.3

23.1

137.3

109.0

210.8

Net Sales

FY2007FH Actual

468.0

-14.0

23.0

141.0

110.0

208.0

Net Sales

0.4

-0.0

0.6

-0.9

-1.7

2.4

Ope.Inc.

Difference FY2008FH Previous Plan

19.0

0.0

-1.0

12.5

-0.5

8.0

Ope.Inc.

0.0-0.2-12.3Eliminated orNot Attributed

5.117.3472.9Total

-0.1-0.623.0Others

3.910.7141.2HPP

0.2-0.3109.2UIEP

1.18.6211.9Housing

Net SalesOpe.Inc.Net Sales

FY2008FH Actual

Net Sales & Operating Income by CompanyNet Sales & Operating Income by Company

FYFY20020088 The FirstThe First--half Resultshalf Results

*UIEP: Urban Infrastructure & Environmental Products Company*HPP: High Performance Plastics Company

(Billions of yen)


4.5

0.3

-0.6

0.0

-1.1

5.9

Ope.Inc.

37.3

-2.9

1.5

13.5

9.3

16.0

Sales

Difference

989.0

-28.0

49.0

295.0

245.0

428.0

Sales

FY2008Previous Plan

54.0

-

-1.5

28.0

7.5

20.0

Ope.Inc.

958.7

-24.1

48.5

280.5

233.8

420.0

Sales

FY2007Actual

-0.3--27.0Eliminated orNot attributed

43.047.5996.0Total

-1.4-2.050.0Others

24.524.5294.0HPP

6.15.0243.0UIEP

14.120.0436.0Housing

Ope.Inc.

Ope.Inc.Sales

FY2008Revised Plan

FY2008 Annual PlanFY2008 Annual Plan

SHFHSHFHSHFHSH PlanFH

8088 7077Dividend（yen / share）

FY2008 Previous PlanDifferenceFY2007FY2008

(Billions of yen)Net Sales & Operating Income by CompanyNet Sales & Operating Income by Company


Recovery of the housing orders- Successful differentiation achievedby appealing the high performance features

- Realization of good effect by the wide-areasales system introduced in FY2007

Hard struggling caused by the deterioratedbusiness environment at domestic and abroad- The continued soaring in raw materials pricecompressed the profitability beyond our assumption

- The hardship in securing quantity caused by thedecreased demands for construction and IT etc.

Positive implementation of strategic investments- Progressing the positive expansion ofstrategic business fields

- Progressing the basis-development for exploitingthe new frontiers of growth

Housing orders received in number ofstructures : FH2008 105% year-on-yearRatio of installation of photovoltaicgeneration systems FH2008: 50%

Interlayer film business:Decision on the increase of productioncapacity in Japan and China

Pipe restoration business:Acquired the company of piperestoration business in Europe (July)

Delay in price-shifting in certainbusinesses and productsagainst the soaring raw materials prices

FYFY20020088 TheThe Summary of FHSummary of FH


Reinforcing Profitability under the Severe External EnvironmentReinforcing Profitability under the Severe External Environment

Complete shifting of the rises price of raw materials to the selling price Intensive reduction of costs by the Manufacturing Development Innovation

- Realizing the cost reduction of 7 billion yen (prospect for FY2008) by means of multiple activities:“productivity improvement”, “quality improvement” and “Elimination of claims & construction mistakes”

Fixed cost reduction by promoting the structural reform & the streamlining of organization- Personnel reduction & shifting to growth fields and implementing the elimination and integration of sales bases (UIEP)- Starting the unified management of production & sales in Kyushu (Oct. Housing)- Retiring from the low-profitability business （Oct. HPP）

Making Strategic Moves and Further Growth for Priority ExpansionMaking Strategic Moves and Further Growth for Priority Expansion of High Value Added Businessesof High Value Added Businesses

Increasing the market share by expanding sales of high-performance housing- Housing order-taking in number of structures for SH of FY2008 is to be 100% year-on-year- Putting on market the new houses pursuing highly-industrialized specifications in the name of “CRESCASA”

Reinforcing the world-wide basis of the pipe restoration business and materializing thebusiness- Structuring the world-wide value-chain by acquiring the European enterprise.; Realizing the synergy with SPR Americasand SPR Americas and Heitkamp.

Further expansion of interlayer film business, and entering into overseas markets withmedical business- Further increase in sales of high-performance interlayer film with new products- Structuring the basis for overseas expansion of ADME & Tox. research business

Decision of increasing the production capacity of the IT related products (High value-added tape & film)- Establishing the new production base (Taga Plant) for the clean sheet & film for optical and electronics fields

Priority Measures for the SH of FY2008Priority Measures for the SH of FY2008


High Performance Plastics Company-1Prospect for FY2008Prospect for FY2008

-2.2-3.1

-13.6

0

10.4

2.16.4

-15

-10

-5

0

5

10

15

Total Fixed Cost ForeignExchange

etc.

Reinforcing profitability- Strict implementation ofproduct price increase

- Strengthening the purchasingpower

Strict implementation of thestructural reform of low-profitbusinesses- Transfer of Sign Systembusiness

- Expanding the high-valuedproducts

Depression of construction related businessDepression in IT related business

Impact of soaringraw material prices

Quick response to the high-pricedraw materials

FY2008 Revised Annual Plan :FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year)

Increase inSellingPrice

Sales Quantity& Composition

RawMaterials

CRetc.

(Billions of yen)

FY2008 Previous Plan

We will maintain and enhance the profitability, despite the influence of highly-priced raw materialsand the deterioration of market in and out of Japan (Building related and IT-related business)

AT: In the decrease in automotive production, the interlayer film business has been favorably expandedowing to the effect of the increased production capacity.However, the profitability came down under the influence of high-priced raw materials.

IT: Even under the influence of the deteriorated liquid-crystal market situation we secured the sales turnoveron the same level as previous year, owing to the increase in sales of the growth-expected products.

MD: Profitability was improved by selection and concentration.Diagnostics regent remained on the same level, and Pharmaceuticals and ADME & Tox. research showedthe growth.


27.029.7

31.7

37.138.5

74.3 72.567.857.6

33.6

37.8

24.4

44% 48% 49% 49%

0

50

100

150

200

FY2006 FY2007 FY2008 FY2008

109.0[45.6]

MD

A

IT

AT

134.5[65.1]

[27.3] [33.0][35.5]

[12.6][14.3]

[15.0][ 5.7]

[17.8][17.9]

144.0144.4[68.5]

Business ExpansionBusiness Expansion

40.850.2 54.6

32.0

40.745.0

22.2

26.228.0

54.8

42.0

27.4

39%42% 42%43%

0

50

100

150

FY2006 FY2007 FY2008 FY2008

94.9

117.0124.3127.6

Expansion of overseas businesswith ADME & Tox. Research(Licensing-out to XenoTech LLC.in U.S.)

Taga Plant (IT products mainproduction base) newlyestablished

Overseas SalesOverseas Sales

Priority expansion of high-value-added products. Further exploitation of growth frontiers.

High Performance Plastics Company-2

Sales in the Strategic Business FieldsSales Ratio in Strategic Business Fields

[ within HPP Company ](Billions of yen)

Previous Plan

Note: Figures in [ ] are the result in FH

Revised Plan

Percentage ofOverseas Salesto Total Sales

Increasing production capacityof interlayer film in Japan and China.(Operation staring in Oct. 2009)New product of interlayer film is to beput on market(Wedge-shaped film integrated in acar roof)

(Billions of yen)

Previous PlanRevised Plan

Operating IncomeRatio: 57%

America

Europe

Asia


0.20.8

-4.5

-0.9

-1.1

2.5 -0.5

1.4

-0.1

-7.5

-5

-2.5

0

2.5

5

Total Fixed Cost

The delayed recovery of housing startsThe stagnation of overseas demands

Prospect for FYProspect for FY20020088Despite severe environment for attaining the quantity due to the delayed housing starts recovery, the stagnantdemand in the world recession, we are reinforcing the profit earning constitution by promoting efficiency.

Urban Infrastructure & Environmental Products Company-1

We had hard fights of sales quantity in mainly core business by the delayed housing startsrecovery

Against the soaring raw material prices in the FH, the shifting to the selling price wasdelayed in the general purpose PVC products.

As a result of acquiring the pipe restoration business company in Europe, each of thecompanies in the three priority business fields attained the sale turnover on thelevel of 10 billion yen in terms of annual sales.

FY2008 Revised Annual Plan :FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year)

NewlyConsolidatedSubsidiaries

(Japan) (Overseas) (Japan) (Overseas)

Increase inSelling Price

SalesQuantity

Raw Materials

CR etc.


Reinforcing the profitability ofdomestic business

- Completion of price increase- Finishing-up of the structuralreformationReorganization of sales system and Personnelshift to the growth areas

- Expansion of the growth productsAccelerating the exploitation ofthe growth frontiers

- Stronger-tackling the Stock Business- Effective utilization of the acquiredbasis (M&A)


Promotion of Portfolio ReformationPromotion of Portfolio Reformation

5.4

13.4 14.56.6

10.1

17.5

6.911.5<0.3>0.9

1.2

1.2

10.8<8.6>

5.5

16.8<1.1>

14.8<3.6>6%

8%

15%16%

13%

0

10

20

30

40

50

FY2005 FY2006 FY2007 FY2008 FY2008

Functional MaterialsPipe RestrationWater Environment 29.4

39.1

12.9

18.2

37.5

<3.2>

<0.8>

<1.2>

Pursuing the M&A synergy

Allen + KDX(Sheet business）

Heitkamp + SSPRA +CPT(Pipe restoration business）

0.3

20.4

5.1

45.7

0.8

17.3

5.1

143.7

PreviousAnnualPlan

0.0

9.0

1.9

20.9

-1.0

5.2

0.5

66.1

FH

FY2008

0.3

20.4

4.8

42.7

0.9

22.6

2.9

141.9

RevisedAnnualPlan

1.1-2.7140.868.8SalesWater Supply &

Drainage,BuildingMaterial,

Home Techno

Core-1.9-2.04.82.5Ope.

Income

RevisedAnnualPlan

FH

0.1

0.2

0.0

2.4

-0.3

2.0

AnnualFH

-0.1

8.8

1.8

18.6

-0.7

3.2

FY2007

Ope.Income

Ope.Income

Ope.Income

0.20.1

0.519.9SalesAqua System,RoofingMaterials

Strength-eningBases

-0.35.1

-0.543.2SalesPlant Materials（Sheet Business

etc.）InfrastructureCompositeMaterials

（RCP・FFU etc.）

Expansion

0.60.4

11.810.8SalesEnvironmentalCivil

Engineering(Aged piperestoration)

Growth

Difference fromPrevious Year

Portfolio

Net Sales and Operating Income Plan by PortfolioNet Sales and Operating Income Plan by Portfolio(Billions of yen)

Overseas SalesOverseas Sales< > Effect by newly consolidated subsidiaries

Urban Infrastructure & Environmental Products Company-2

(Billions of yen)

PreviousPlan

RevisedPlan

Percentage ofOverseas Sales


Prospect for FY2008Prospect for FY2008FH Housing orders (structures): 105% year-on-year

Living Environment business Sales: 107% year-on-year

5.9

-3.9

6.6-0.1 -1.62.1 2.8

-5

0

5

10

Total Fixed Cost 39

50

5455 55

43

54 5350

56

46

30

40

50

60

70

FH2005 FH2006 FH2007 FH2008

Tiled exterior wallPhotovoltaic generation systemsWarm Airy

(%)

Housing orders was favorable in FH, therefore annual operating income plan may be achievable

Further implementing the differentiationby appealing high performance features

Capturing deeply into the pricevolume zone

Growth of Living Environment businessand further improvement in profitability

- FH Actual: Ratio of houses with photovoltaic generation systems129% year-on-year

- SH Plan: Warm Airy 104％ year-on-year- FH: Newly launched models “bj new” and “Grand To You WS”

enjoying with good reputation- SH: The new model to be on market “CRESCASA” aiming at the

order increment- FH Actual: Sales of priority materials 114％ year-on-year- SH Plan: Sales of priority materials 116％ year-on-year

SH Housing orders (structures): 100% year-on-yearLiving Environment business Sales: 107% year-on-year

HousingHousing CompanyCompany--11

FY2008 Revised Annual Plan :FY2008 Revised Annual Plan : Analysis of Operating Income (year-on- year) RRatio ofatio of HHighigh--PPerformanceerformanceSSpecificationspecifications InstallationInstallation

Increase in Sales ofLiving Environ.

Housing SalesFactor

HousingMaterials

LivingEnviron.

(Billions of yen) Housing

CR etc.



‘Parfait’ series

“bj new” (launched in Apr.)“bj” series FH 117% year-on-year

“Grand To You WS” (launched in May)“Grand To You” series FH 130% year-on-year

IncreasingIncreasingour share byour share bycapturing thecapturing thevolume zonevolume zone

Thoroughlyimplementing

the differentiation withthe high performance

“The productsgiving customersthe feeling of

cost-performance”The lineups completed

“Domani” series

“Desio” series

“Grand To You” series

New model for apartment;“Letoit Duet”

(Launched in Sep.)

Highly Industrialized Product“CRESCASA” on salethroughout Japan in Oct.

<Prospect on Market Environment>- The market may remain stagnant mainly in the rebuilding of houses.- The customers’ desire for houses may probably step back due to the lack in incentives and the unfavorable business outlook.

(The anxiety over the future, caused by the increasing financial crises originated in USA, and the depression of real estate business)

“The Warm-Heim Campaign” will be expanded and implemented from Nov. 2008 to Feb. 2009

CRESCASA

Strategies for capturing orders for SHStrategies for capturing orders for SH20082008

HousingHousing CompanyCompany--22

DemandDemandCreationCreation

Rebuilding

New Construction

Complex HousingReinforcing the sales system

with exclusive staff

TargetedMarket

Parfait MasterDesign 2.0

High performanceapartments, LETOIT series

Tiledexterior wall

Specs. forDifferentiation

Warm

Airy

Warm

Airy

Products Strategy

Zero

Utility

Cost

Zero

Utility

Cost

““Make it visibleMake it visible””IndicatingIndicatingPerformancePerformanceof each houseof each house

Naofumi NegishiNaofumi NegishiDirector , CFODirector , CFO

The Financial ResultsThe Financial Resultsfor thefor the FFirstirst HHalf of FY 2008alf of FY 2008


8

130

As of March 31, 2008

8Affiliates

+2 Newly consolidatedsubsidiaries

-2 Separated, Integration130Consolidated

Companies

DifferenceAs of Sep. 30, 2008

Heitkamp -0.2-0.2OperatingIncome

+2.2 Allen +1.1 [consolidated from 2Q of FY2007],Heitkamp +1.1Net Sales

FH2008 Financial ResultsFH2008 Financial Results

Number of Consolidated SubsidiariesNumber of Consolidated Subsidiaries

Influence of Difference in the Number of ConsolidatedInfluence of Difference in the Number of Consolidated SubsidiariesSubsidiaries(Billions of yen)

Note: Influence on net sales and operating income for FH2008



-8.417.99.5Net Income

-7.613.15.5Corporate Income Tax etc.0.20.10.4Income for Minority Shareholders

077Dividend（yen / share）

-23.623.6-Extraordinary Income

-15.831.215.4Income before Income Taxes

1.0-0.50.5Investment Income or Loss by Equity Method

-7.211.03.8Extraordinary Expenses

0.618.519.2Recurring Income-0.81.20.4Other Non-operating Income & Expenses

0.417.918.3Operating Income-5.4116.4111.0Selling, Gen. & Admin. Expense

-1.4%28.7%27.3%Gross Income Rate-5.0134.3129.3Gross Income of Sales5.1467.8472.9Net Sales

DifferenceFH2007FH2008(Billions of yen)Summary of Profit and LossSummary of Profit and Loss

*2.9

*0.6

* Excluding the influence from newly consolidated subsidiaries


-0.00.0-0.2-12.3-0.2-12.3Eliminated or NotAttributed

0.45.117.9467.818.3472.9Total

0.6-0.1-1.223.1-0.623.0Others

-0.93.911.6137.310.7141.2HPP

-1.70.21.4109.0-0.3109.2UIEP

2.41.16.2210.88.6211.9Housing

Ope. Inc.Net SalesOpe. Inc.Net SalesOpe. Inc.Net SalesDifferenceFH2007FH2008

Net Sales and Operating Income by CompanyNet Sales and Operating Income by Company

FH2008 Net Sales and Operating Income by CompanyFH2008 Net Sales and Operating Income by Company

*UIEP : Urban Infrastructure & Environmental Products Company*HPP : High Performance Plastics Company

(Billions of yen)


-0.9

2.8 3.4

0.4

-9.1

4.2

-10

-5

0

5

Total Sales Factor

(Billions of yen)

Analysis of Operating Income (year-on- year)

FixedCost

5.1*2.9

Net SalesDifferenceFH2007FH2008

17.9Ope. Inc.

0.4* 0.6

467.818.3472.9Total Company

Ope. Inc.Net SalesOpe. Inc.Net Sales

* Excluding the influence from Newly consolidated subsidiaries

(Billions of yen)

FH2008 Total Company Net Sales & Operating IncomeFH2008 Total Company Net Sales & Operating Income

CR etc.

Raw Materials,Housing Materials

ForeignExchange


1.1

3.3[1.4]

-2.2Net Sales

DifferenceFH2007FH2008

6.2

1.1[0.8]

5.1Ope. Inc.

0.8[0.6]

45.5[31.4]

1.9[1.4]

48.8[32.8 ]

LivingEnvironment[Fami-S only]

1.6165.36.7163.1House Sales

2.4210.88.6211.9Total

Housing Ope. Inc.Net SalesOpe. Inc.Net Sales

2.4

-1.2

3.7

-2.2

-0.2

1.01.3

-5.0

-2.5

0.0

2.5

5.0Housing

LivingEnvironment

CR etc.

(Billions of yen)


Fixed CostTotal


Housing SalesFactor

HousingMaterials

(Billions of yen)

FH2008 Net Sales and Operating IncomeFH2008 Net Sales and Operating Income byby CompanyCompany

Decrease in Sales -1.0Composition etc. -1.2


0.7

-2.5-1.7

0.7

-0.2

0.7

-1.1

-5.0

-2.5

0.0

2.5

Total

0.2*-2.0

Net Sales


1.4

Ope. Inc.

-1.7*-1.5

109.0-0.3109.2UIEP


(Billions of yen)





FixedCost

CR etc.Raw

Materials

SellingPrices

(Billions of yen)

FH2008 Sales and Operating IncomeFH2008 Sales and Operating Income byby CompanyCompany


-0.9-1.4

-5.4

-0.9

2.9

1.0

2.9

-7.5

-5.0

-2.5

0.0

2.5

5.0

Total

ForeignExchange

3.9

Net Sales


11.6

Ope. Inc.

-0.9137.310.7141.2HPP


(Billions of yen)




CR etc.Raw

Materials Fixed Cost

(Billions of yen)

FH2008 Sales and Operating IncomeFH2008 Sales and Operating Income byby CompanyCompany


1.0-0.50.5Investment Incomeand Expenses byEquity Method

Misc. Income

Misc. Exp.

Received(Sekisui HousePaid

Remarks on mainDifference

-0.3

-0.0-0.3-0.9-1.2

MiscellaneousIncome and Expensesetc.

0.2

-0.5

Difference

0.7

2.0

FH2007

0.9Total

-0.4-0.4 )0.1

1.6Financial Income andExpenses

FH2008


(Billions of yen)NonNon--operating Income & Expenseoperating Income & Expense


-4.16.92.8Structural Improvement Expenses

-0.50.5-Proceeds from Business Transfer

-3.13.1-Loss on Revaluation of Inventories(Lower-of-Cost-or-Market Method)

-7.211.03.8Total Extraordinary Expenses

0.5-0.5Loss on Valuation of Equity Securitiesfor Nonconsolidated and Affiliates

-23.123.1-Gain on Sale of Investments in Securities

-23.623.6-Total Extraordinary Income

-0.51.00.6Loss on Sale or Disposal of Property, Plantand Equipment

-16.4

Difference

12.6

FH2007

-3.8Total Extraordinary Income and Expenses

FH2008

(Billions of yen)


Extraordinary Income and ExpensesExtraordinary Income and Expenses


782.9

36.3

133.2

27.4

243.5

27.5

116.2

168.4

30.3

As of Mar. 31,2008

12.8

-0.5

6.6

-1.0

6.3

3.3

8.4

-11.5

1.2

Difference

249.8Tangible FixedAssets

26.5Intangible FixedAssets

139.8Investment Securities

124.6Inventories

30.8Other Current Assets

795.7Total Assets

35.8Investments & OtherAssets

156.9Account Receivableon Sales

31.5Cash & Deposits

As of Sep. 30,2008

(Billions of yen)


Balance Sheets (Assets)Balance Sheets (Assets)

Housing work in progress +4.6Products inventories +1.3

Receipt of goods +11.7Depreciation -13.5Influence of Foreign Exchange -2.3Lease accounting applied + 10.5

Nonconsolidated subsidiary’s stocks+8.5

Other investments, sellout andredemption -2.0


0.0-10.8-10.8Treasury Stock

-3.17.54.4Other Net Assets

-1.8368.9370.7Total Net Assets

782.9

9.8

-0.9

154.1

209.4

413.9

92.1

321.8

As of Mar. 31,2008

12.8

-0.4

0.0

5.3

-0.0

11.0

13.6

-2.5

Difference

209.3Capital Stock etc.

159.3Retained Earnings

-0.9Unrealized Holding Gainon Securities

425.0Total Liabilities

795.7Total Liabilities, Net Assets

9.4Minority Shareholders’Interests

105.7Interest Bearing Liabilities

319.3No Interest BearingLiabilities

As of Sep. 30,2008

(Billions of yen)


Balance Sheets (Liabilities &Balance Sheets (Liabilities & NetNet Assets)Assets)

Current net income +9.5Dividend payment -4.2

Foreign currency translationadjustment - 3.2

Loan payable -3.6Commercial paper +6.0Lease accounting applied +11.3


2.0

31.1

0.9

-4.9

-21.1

27.4

FH2008

38.2Free Cash Flow= Cash Flows from Operating Activities+ Cash Flows from Investing Activities- Dividends Paid

34.7Cash & Cash Equivalents at End of Term

7.1Net Increase (Decrease) in Cash & CashEquivalents

-36.3Cash Flows from Financing Activities

29.6Cash Flows from Investing Activities

13.0Cash Flows from Operating Activities

FH2007

(Billions of yen)


Consolidated Cash FlowsConsolidated Cash Flows


-1.14.23.1 [0.1]0.23.33.5 [0.1]UIEP

-2.017.015.0 [1.8]3.913.817.7 [3.0]Total

0.40.20.5 [0.0]-0.00.30.3 [0.0]Eliminated orNot Attributed

0.30.91.1 [0.1]0.30.81.1 [0.2]Others

-1.58.67.1 [0.5]1.76.78.4 [0.9]HPP

-0.03.23.1 [1.2]1.72.74.4 [1.7]Housing

DifferenceFH2007FH2008DifferenceFH2007FH2008

Capital ExpenditureDepreciation

* ( ) : the amount influenced by the change of depreciation method


Depreciation and Capital ExpenditureDepreciation and Capital Expenditure(Billions of yen)


FY2008FY2008 ProfitProfit PlanPlan

0.20.70.9Income for minority shareholders

0

-1.3

-7.5-8.7-7.5-23.67.52.1

0.9

4.5-3.2

-0.9%1.337.3

Difference

23.6-Extraordinary Income

24.323.0Net Income

15

19.945.017.2

38.5-5.0

0.6

43.0229.828.5%272.8958.7

FY2007

12.4Corporate income tax etc.

1.4Income/Loss from investment inEquity Method companies

36.3Income before tax9.7Extraordinary Loss

15Dividend （yen/share）

46.0Recurring Income-2.9Other Non-operating income/Expense

47.5Operating Income226.5Sales and Gen. & Admin. Expenses

27.5%Sales Income Rate274.1Gross Income of Sales996.0Net Sales

FY2008

(Billions of yen)

*26.6

* Excluding the influence from newly consolidated subsidiaries


0.3-2.9-0.3-24.1--27.0Eliminated orNot Attributed

4.537.343.0958.747.5996.0Total

-0.61.5-1.448.5-2.050.0Others

0.013.524.5280.524.5294.0HPP

-1.19.36.1233.85.0243.0UIEP

5.916.014.1420.020.0436.0Housing

Ope. Inc.Net SalesOpe. Inc.Net SalesOpe. Inc.Net SalesDifferenceFY2007 ActualFY2008 Plan

FY2008 Plan Net Sales and Operating IncomeFY2008 Plan Net Sales and Operating Income

(Billions of yen)

Net Sales and Operating Income by CompanyNet Sales and Operating Income by Company


6.3

-2.0

20.3

-22.0

4.5 1.9

-25.0

-12.5

0.0

12.5

25.0

Total Sales Factor Fixed Cost

37.3*26.6

Net SalesDifferenceFY2007 ActualFY2008 Plan

43.0Ope. Inc.

4.5958.747.5996.0Total Company


(Billions of yen)


Forecast Analysis of Operating Income (year-on- year)

(Billions of yen)

FY2008 Plan Total Company Sales and Operating IncomeFY2008 Plan Total Company Sales and Operating Income

CR etc.

Raw Materials,Housing Materials

ForeignExchange


5.9

-3.9

6.6

-0.1-1.6

2.1 2.8

-5.0

-2.5

0.0

2.5

5.0

7.5

Total Fixed Cost

436.0

100.0[67.4]

336.0Net Sales

FY2008 Plan

20.0

3.5[2.5]

16.5Ope. Inc.

420.0

93.3[63.5]

326.7Net SalesFY2007 Actual

14.1

3.0[2.1]

11.1Ope. Inc.

16.0

6.7[3.9]

9.3Net Sales

Difference

5.9

0.5[0.4]

5.4Ope. Inc.

LivingEnvironment[Fami-S only]

House Sales

Total

Housing

(Billions of yen)


HousingSales Factor

HousingMaterials

Housing

LivingEnvironment

CR etc.

(Billions of yen)


FY2008 Plan Sales and Operating Income by CompanyFY2008 Plan Sales and Operating Income by Company

Increase in Sales +3.2Composition etc. -3.3


0.3

-4.5

-1.1

2.5

0.21.4

-1.0

-5.0

-2.5

0.0

2.5

5.0

Total

9.3*-0.7

Net Sales

DifferenceFY2007 ActualFY2008 Plan

6.1

Ope. Inc.

-1.1233.85.0243.0UIEP


(Billions of yen)




FixedCost

CR etc.

RawMaterials

Selling Prices

(Billions of yen)




-2.0-3.1

-13.6

0.0

10.4

2.1

-0.2

6.4

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

Total Fixed Cost

13.5*12.8

Net Sales

DifferenceFY2007 ActualFY2008 Plan

24.5

Ope. Inc.

0.0280.524.5294.0HPP


(Billions of yen)

(Billions of yen)





CR etc.

RawMaterials

NewlyConsolidatedSubsidiariesForeign

Exchange



0.026.026.0Research &DevelopmentExpenses

7.030.037.0 [6.0]Depreciation

4.035.039.0 [4.0]Capital Expenditure

DifferenceFY2007FY2008

FY2008 PlanFY2008 Plan

* [ ]: the amount influenced by Lease accounting applied

(Billions of yen)


FY2008 PlanFY2008 Plan

27.0

53.0

54.0

989.0

FY2008Previous Plan

23.0

46.0

47.5

996.0

FY2008Revised Plan

-1.324.3Net Income

7.538.5RecurringIncome

4.543.0OperatingIncome

37.3958.7Sales

DifferenceFY2007Actual

(Billions of yen)


Disclaimer: This presentation may contain forward-lookingstatements. Such forward-looking statements are based on currentexpectations and beliefs and are subject to a number of factorsand uncertainties that could cause actual results to differmaterially from those expressed or implied by such statementsdue to changes in global economic, business, competitive marketand regulatory factors.


Housing Company Resultｓ and Plan1. Main Data in Housing Business

Annual

Housing complex

Detached houses

Living Environment

Housing

Land

Real Estate

Interior-ExteriorRefurbishing

SHSH Plan AnnualFHAnnual PlanFH

34343435343436Referral sales ratio(%)37363636353536Replacement ratio(%)

2,4192,370-2,5362,400-2,463Sales staff (No. of person)465438-45541.6-41.6Exhibition places(Unit:structure)

135.9131.7131.8131.6--131.7Floor Space(m2)

716734731735--739Price<Sales subsidiaries:DetachedHo.>/Tsubo(3.3m2) (thou. yen)

29.529.329.229.3--29.5Price<Sales subsidiaries:Detached Ho.>/unit>(Mil.yen)

2) Main data4,1804,2502,3501,9004,3002,4001,9002,3502,0501,0501,0002,0001,050950Two-U8,4708,0504,0504,0008,5004,4504,050Heim10,82010,1005,1005,00010,5005,5005,00015,00014,3507,4506,90014,8007,9006,9001) Number of houses sold (units)

Others

23.224.213.011.227.213.913.35.85.62.63.05.42.72.761.863.532.231.467.434.632.890.793.347.845.5100.051.248.813.614.47.17.315.57.77.8326.1312.3154.3158.0320.5165.2155.4Houses339.7326.7161.4165.3336.0172.9163.1430.5420.0209.1210.8436.0224.1211.9Sales ( Billions of yen )

Consolidated

FY2006FY2007FY2008

* Replacement ratio and Referral sales ratio are based on the receipt of orders.

2. Housing Orders (Millions of yen)

AnnualSHFH

2%156,700-4%194,1568%

199,356-11%151,500

FY2006

-1%150,0003%

199,5290%

192,8292%

156,700

New orders

Balance at the endGrowth rate

Sales of houses


-－2%-8%-4%11%Growth rate-－153,000144,300-158,400159,400

-1%-3%-5%-1%3%7%-1%393,684381,432189,086192,346393,398202,521190,8774%-2%3%-6%4%2%6%Growth rate392,184384,432197,786186,646398,798201,521197,277-－-8%-1%-10%2%Growth rate-－144,300150,000-159,400153,000Backlog at beginning

FY2007FY2008

FY2006Annual

Sales by our company

Our share in Detached houses=B/A


3.0%3.2%3.4%3.1%3.1%3.4%2.8%10,82010,1005,1005,00010,5005,5005,000Detached house sales by our co.=B15,00014,3507,4506,90014,8007,9006,900

356,557313,803148,972162,831340,000160,320179,680Privately-owned houses(included in above (=A)

1,285,2461,035,598502,310533,2881,130,000549,220580,780Housing starts

FY2007FY20083. Housing Starts

55%52%50%55%52%54%50%Tiled exterior wall (Heim type JX)

FY2006Annual

Warm Airy


49%55%64%46%62%69%56%87%88%89%87%90%89%91%Totally electrified model

51%43%45%43%53%55%50%Photovoltaic generation systems

FY2007FY2008

(in units)

*The housing starts in FH of FY2008 and the above “Detached house sales” are based on a prospect.4. Ratio of High-Performance Specifications Installation

Sekisui 02

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