Overview of NCN <7057> Business.
1. Wooden seismic design business With its unique SE construction system that incorporates the rafter construction method, which was the mainstream in steel-frame and reinforced concrete (RC) construction and advanced structural calculations to ensure the seismic resistance of wooden buildings, the company offers SE construction method through a network of about 600 SE construction method registered construction shops (general contractors) nationwide to achieve seismic-resistant wooden buildings with high seismic resistance.
(1) Residential sector (SE construction method): Structural calculation sheets are shipped at the design stage to registered construction stores that have received orders for wooden buildings using the SE construction method, and structural processed products are sold during the construction stage. The company receives registration fees and monthly membership fees from registered construction stores. The SE construction method is a cutting-edge wooden structure technology that combines high seismic resistance and large space. High-quality structural composite lumber, which maintains a constant strength and high-quality, is adopted for the wood used in the SE construction method's structural frames. One of the advantages is that the structure has fewer cross-sectional deficiencies by using SE metal fittings to connect columns and beams. In addition, the use of column base fittings, which are fittings that are used to improve the pull-out strength, in the connection part between the most fragile parts, such as columns and foundations, during a major earthquake helps to improve the pull-out resistance. Although the high strength of the wood and connecting fittings is a significant factor, the primary reason why the SE construction method is earthquake-resistant is that it is structurally calculated. Like steel-frame and RC construction, the SE construction method guarantees the sale of houses with high asset value by conducting structurally calculated numerical verifications for wooden houses. The adoption of the SE construction method in houses has resulted in zero partial or total collapses during major earthquakes.
a) Network development (residential sector network development): In order to further promote the spread of high seismic resistance wooden houses using the SE construction method, the company strives to acquire registered construction stores and strengthen the network. The number of SE construction method registered construction shops is planned to be 606 for the March 2024 year-end and 36 more than the previous year for the March 2025 year-end, and membership revenues are steadily increasing. "Juuryoukibone no Ie (Spacious Wooden-frame House)" is a general term for high asset value houses built using the SE construction method by "Juuryoukibone no Ie Premium Partners," which is a general contractor chosen from among the 606 SE construction method registered construction shops. Through DX promotion, the company utilizes partnerships with registered construction shops to promote digital showrooms using YouTube and promotions that incorporate Instagram.
b) House maker support (OEM supply): The company provides OEM support of the SE construction method to partner companies that sell standardized homes such as house makers (including major house makers). When partner companies sell standardized homes, the company ships structural calculation sheets and sells structural processed products. "Hi no Ie (Sun House)" provided by MUJI HOUSE, equity method applied affiliated company that provides "Mujirushi Ryohin no Ie (MUJI Home)" does not need a hallway and is a one-floor house, making it in high demand as a vacation-home rental property for two-location living, as well as for accommodations such as Villa. Furthermore, MUJI HOUSE is engaged in a project to promote local revitalization based on housing complex renovations, along with the Urban Renaissance Agency (UR).
(2) Large-scale wooden building (non-residential) division: The company provides the SE construction method to wooden buildings with a total floor area of 500 m2 or more in the large-scale wooden building (non-residential) division. In a climate where the need for large-scale wooden building construction that requires structural calculations is increasing due to the enforcement of the "Wood Utilization Promotion Law in Public Buildings" (October 2010) and the "Wood Utilization Promotion Law in Buildings Aimed at Achieving Decarbonization Society and Others" (revised in October 2021), the company has expanded its business by applying its seismic design expertise for wooden buildings to large-scale wooden building construction. Large-scale wooden buildings have the advantage of being lightweight compared to steel-frame and RC construction, and can reduce construction costs and construction time.
a) Woodshop network (residential sector network deployment):
The company strives to acquire registered construction shops and strengthen the network, in order to further promote the spread of highly earthquake-resistant wooden houses using the SE construction method. The number of SE construction method registered construction shops is planned to be 606 for the March 2024 year-end and 36 more than the previous year for the March 2025 year-end, and membership revenues are steadily increasing. "Juuryoukibone no Ie (Spacious Wooden-frame House)" is a general term for high asset value houses built using the SE construction method by "Juuryoukibone no Ie Premium Partners," which is a general contractor chosen from among the 606 SE construction method registered construction shops. Through DX promotion, the company utilizes partnerships with registered construction shops to promote digital showrooms using YouTube and promotions that incorporate Instagram.
b) House maker support (OEM supply): The company provides OEM support of the SE construction method to partner companies that sell standardized homes such as house makers (including major house makers). When partner companies sell standardized homes, the company ships structural calculation sheets and sells structural processed products. "Hi no Ie (Sun House)" provided by MUJI HOUSE, equity method applied affiliated company that provides "Mujirushi Ryohin no Ie (MUJI Home)" does not need a hallway and is a one-floor house, making it in high demand as a vacation-home rental property for two-location living, as well as for accommodations such as Villa. Furthermore, MUJI HOUSE is engaged in a project to promote local revitalization based on housing complex renovations, along with the Urban Renaissance Agency (UR).
The company provides the SE construction method to wooden buildings with a total floor area of 500 m2 or more in the large-scale wooden building (non-residential) division. In a climate where the need for large-scale wooden building construction that requires structural calculations is increasing due to the enforcement of the "Wood Utilization Promotion Law in Public Buildings" (October 2010) and the "Wood Utilization Promotion Law in Buildings Aimed at Achieving Decarbonization Society and Others" (revised in October 2021), the company has expanded its business by applying its seismic design expertise for wooden buildings to large-scale wooden building construction. Large-scale wooden buildings have the advantage of being lightweight compared to steel-frame and RC construction, and can reduce construction costs and construction time.
In the field of large-scale wooden construction (non-residential), the company offers SE construction method for wooden construction with a floor area of 500m2 or more. With the enforcement of the "Law on Promotion of Use of Wood in Public Buildings and Others" (October 2010) and the "Law on Promotion of Use of Wood in Buildings and Others for Achieving a Decarbonized Society" (revised in October 2021), the demand for construction of large-scale wooden buildings that require structural calculation has been increasing. The company is promoting business expansion by applying seismic design expertise of wooden buildings to large-scale wooden buildings. Compared to steel frame or reinforced concrete construction, large-scale wooden buildings have the advantage of being lightweight and having reduced construction costs and construction time.
The colleague's business field is a growing field due to environmental issues such as forest conservation and global warming, and the promotion of the woodenization of buildings worldwide etc. To accelerate growth, the company has established a structural design business for large-scale wooden non-residential buildings in addition to the top share in the development of wooden pre-cut CAD with Net Eagle Co., Ltd., which handles structures other than SE Construction Method. In February 2020, a joint venture company, Mokkouzo Design Co., Ltd., was established, and in October of the same year, a Japan's first large-scale wooden matching platform business was launched that connects general contractors, design offices, and pre-cut factories. In addition to providing structural design support and processing support, Mokkouzo Design is also working to create an advertising campaign for general contractors and design offices by establishing a production system through the composition of the pre-cut factory network, providing one-stop service from structural design to production design. In structural design support, the company proposes construction methods (SE construction method, traditional axial method, 2×4 method, composite material method, CLT method, etc.) according to the purpose and scale of the building and conducts structural calculations by utilizing its structural calculation know-how of more than 25,000 buildings in other methods in order to expand its share in the large-scale wooden building market.
*1 Traditional axial method: A method that simplifies and develops traditional Japanese methods.
*2 CLT: Thick panels in which layers of boards are stacked and adhered with the fiber direction perpendicular to each other.
(Writer: FISCO analyst Tomoichi Murase)