Announcement Regarding Acquisition of Shares of Ausbuild Group (to Make It a Subsidiary), a Residential Land Development and Housing Construction Company Based in Queensland, Australia

Press Release

September 10, 2026 SEKISUI CHEMICAL CO., LTD.

Announcement Regarding Acquisition of Shares of Ausbuild Group (to Make It a Subsidiary), a Residential Land Development and Housing Construction Company Based in Queensland, Australia

SEKISUI CHEMICAL CO., LTD. (here in after "SEKISUI CHEMICAL") announces that it resolved, at a Board of Directors meeting held on September 10, 2026, to acquire a 51% interest in Ausbuild Group Pty Ltd. and Ausbuild Partners Pty Ltd. (collectively referred to as "Ausbuild") of the Ausbuild Group, a residential land development and housing construction company based in Queensland, Australia. The share acquisition will be conducted through SEKISUI HEIM AUSTRALIA AC PTY LTD., a wholly-owned subsidiary of SEKISUI CHEMICAL.

1. Background and purpose of the acquisition

   SEKISUI CHEMICAL's Housing Company has a track record of supplying a cumulative total of more than 68,000 industrialized houses in Japan and possesses high-level housing performance and design, manufacturing, and quality control systems. Under the Accelerate 2028 Medium-term Management Plan (FY2026-2028), SEKISUI CHEMICAL has positioned the overseas expansion of this industrialized housing technology as a medium- to long-term growth strategy and has continued its search for prospective markets and partners for which its industrialization technology can solve local housing issues.

   Queensland, Australia has a high population growth rate-2% annually (in the southeast region)-and the chronic housing supply shortage has become a serious social issue. In addition, housing demand is expected to expand even further in the leadup to Brisbane hosting the Summer Olympic Games in 2032. At the same time, soaring construction labor costs and personnel shortages are becoming more apparent, and the Queensland State Government has expressed interest in modular construction methods,* which can save construction labor and supply housing with short construction periods.

   * Generally referred to in Japan as the "unit construction method." It is a construction method where standardized components are manufactured in advance at special-purpose plants, reducing on-site construction work. SEKISUI HEIM, which the SEKISUI Group supplies in Japan, employs a modular construction method (unit construction method).

   At this time, SEKISUI CHEMICAL reached this decision based on its assessment that acquiring Ausbuild as a subsidiary, which has an established track record of residential land development and housing construction in Queensland and has expressed a high level of interest in SEKISUI CHEMICAL's industrialization technologies, will contribute to expanding the local supply capability of housing in local market.

   1. Full-scale entry into the Australian housing market

      SEKISUI CHEMICAL will leverage Ausbuild's extensive development land and solid sales and construction systems while enhancing synergies between the two companies to contribute to expanding the supply of order-made detached houses and pre-built houses, making a full-scale entry into the Australian housing market. SEKISUI CHEMICAL will position this transaction as the starting point for developing the housing business in Australia, accumulate know-how and networks, and seek to expand business even further.

   2. Expansion of the terrace house and townhouse business using modular construction methods

      SEKISUI CHEMICAL will develop Ausbuild's business using modular construction methods, one of its strengths. In the townhouse (row houses that share walls with adjacent units), business, which is positioned as a growth area, in particular, we will use modular construction methods to supply high-quality housing with short construction periods, thereby enhancing competitiveness. Regarding the deployment of modular construction methods, SEKISUI CHEMICAL will seek to achieve implementation within about three years while encouraging the establishment of relevant legal frameworks.

   3. Rollout of smart technologies and resilience technologies

   Electricity rates in Australia are trending upward, and against a backdrop of a need for electricity conservation, there is high demand for solar power. SEKISUI CHEMICAL will leverage its extensive expertise regarding solar power, storage batteries, and home energy management systems (HEMS) to contribute to the spread of energy-saving homes. We will also use our accumulated highly effective drainage infrastructure technology and water storage know-how with the aim of developing residential land that is resilient to water-related disasters in Queensland, a state that experiences frequent river and inland flooding in Australia.

2. Overview and Method of the Acquisition

   After establishing an acquisition vehicle (the "SPC") as a local wholly-owned subsidiary of SEKISUI CHEMICAL, SEKISUI CHEMICAL will acquire 51% of the shares of each Ausbuild holding company (Matthew Loney Ausbuild Pty Ltd., Michael Loney Ausbuild Pty Ltd., and Matthew Bell Ausbuild Pty Ltd.) through the SPC.

   
   
   

   An overview of the SPC is as follows.

   (1) Name	SEKISUI HEIM AUSTRALIA AC PTY LTD.
   (2) Location	Brisbane, Queensland, Australia
   (3) Titles and names of representatives	Akira Ikeda, Director Katsuya Nakano, Director Masatoshi Suzuki, Director (note: scheduled to change)
   (4) Description of business	Acquisition and management of the shares of Matthew Loney Ausbuild Pty Ltd., Michael Loney Ausbuild Pty Ltd., and Matthew Bell Ausbuild Pty Ltd.
   (5) Share capital	AU$100
   (6) Date of establishment	August 28, 2026
   (7) Major shareholder and ownership ratio	SEKISUI HEIM AUSTRALIA HC PTY LTD. 100%
   (8) Relationships between SEKISUI	Capital relationship	100% ownership through SEKISUI HEIM AUSTRALIA HC PTY LTD.

   CHEMICAL and said company	Personnel relationship	Two officers will be seconded from SEKISUI CHEMICAL
   	Business relationship	Not applicable.
   (9) Consolidated operating results and consolidated financial positions of said company for the last three years	The SPC was recently established, and therefore, has no finalized most-recent fiscal year.

3. Overview of the counterparty to the acquisition of shares

1. Overview of Ausbuild Group Pty Ltd.

   (1) Name	Ausbuild Group Pty Ltd.
   (2) Location	Brisbane, Queensland, Australia
   (3) Titles and names of representatives	Director Matthew Robert Loney Director Michael Gregory Loney Director Matthew James Bell Director Richard Mark Didcott
   (4) Description of business	Land development, housing construction, etc.
   (5) Share capital	AU$22.5 million
   (6) Date of establishment	November 23, 2015
   (7) Major shareholder and ownership ratio	Matthew Loney Ausbuild Pty Ltd. 33.33% Michael Loney Ausbuild Pty Ltd. 33.33% Matthew Bell Ausbuild Pty Ltd. 33.33%
   (8) Relationships between SEKISUI CHEMICAL and said company	Capital relationship	Not applicable.
   	Personnel relationship
   	Business relationship
   (9) Consolidated operating results and consolidated financial positions of said company for the last three years (AU$1,000, except per-share amounts; figures are rounded down to the nearest unit)
   Fiscal year ended	June 2023	June 2024	June 2025

   Consolidated net assets	AU$50,998	AU$56,677	AU$59,286
   Consolidated total assets	AU$302,587	AU$270,836	AU$343,775
   Net assets per share	AU$3.4	AU$3.7	AU$3.9
   Consolidated net sales	AU$265,867	AU$400,293	AU$382,469
   Profit attributable to owners of parent	AU$16,147	AU$21,029	AU$22,259
   Earnings per share	AU$1.1	AU$1.4	AU$1.5
   Dividend per share	AU$0.1	AU$1.0	AU$1.3

2. Overview of Ausbuild Partners Pty Ltd.