.

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results¥13.7 billion¥112.1 billion＋35.0%YOY＋15.6%YOY

FY2012FY2013＋48.3%YOY

FY2014¥63.3 billion¥12.8 billion

FY2012FY2013＋40.3%YOY

FY2014＋28.8%YOY

FY2012FY2013

FY2013

FY2014FY2012FY2013

FY2014FY2012¥7.7 billion

FY2013

FY2014¥100.5 billion＋23.6%YOY

FY2012＋37.1%YOY

FY2014FY2012FY2013¥37.0 billion

FY2014＋19.1%YOY

FY2012FY2013631

FY2014

4

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results（Million yen）

96,999

SG&A Expenses

115,000

115,000

17,001

17.5%

18.7%

6,816

7.0%

6.5%

10,185

10.5%

12.3%

12,20013,700

9.5%

11.5%

11,00012,600

5.8%

6.9%

6,700

7,700

239.07274.75Non-operating income

318

Non-operating expenses

1,324
9,179

Extraordinary income

0

Extraordinary expenses－5,661287.82*＊EPS for FY2013 is calculated based on the average number of shares during the fiscal year
EPS calculated based on the total number of outstanding shares at the end of FY2013: 202.00 yen•.

 Net sales, operating income, ordinary income and net income were all at record-high levels.
 Revenue exceeded ¥100 billion for the first time, however, decreased slightly from the forecast.
— Despite sales of single-family homes remained stronger than expected, the delivery of some properties in FY2014
was postponed until FY2015, due to unexpected prolonged construction period.
5

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results（Million yen）

4,704

+21.7%

5,730

△0.0%

94,082+15.6%

111,640△2.6%

58,628+12.7%

69,720△5.2%

27,136△5.4%

25,000

+2.6%

6,968

+137.2%

16,220+1.9%

1,349△65.2%

700△33.0%

369+3.1%

360+4.4%△2,157－△2,730－96,999＋15.6%

115,000△2.5%

Real estate financing
1.4％

 All 3 business segments
performed as planned.

Real estate financing
0.3％

Real estate brokerage
4.7％

14.4%

7.0%

27.4%

Real estate brokerage
5.0％

57.6%

59.1%

22.3%

94.9%

94.7%

Real estate sales
6OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results

 Establishment of 4 new brokerage offices in FY2014 contributed the growth of number of sales, revenue
and income Our firm’s brokerage business remained consistent pre and past the forecasted consumption tax hike.
 By increasing revenue, the ratio of fixed costs decreased and operating income margin improved.
Operating income(57.2

FY2012

19.8

47.0

41.9

14.6

12.4

FY2013

FY2014FY2012FY2013

FY2014

Operating income margin
1,828
1,477

34.6%

1,248
31.1%

29.6%

FY2012FY2013

FY2012FY2014FY2013

FY2014FY2012FY2013

FY2014

Revenue （¥million）

4,193

4,704

5,728

+21.7％

Operating income （¥million）

1,240

1,464

1,987

+35.7％

Operating income margin

29.6%

31.1%

34.6%

+3.5P

Units sold (unit)

1,248

1,477

1,828+3517

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results Our bold land purchases for development enable our firm to establish a solid system with a constant supply of properties.
 Despite sales of single-family homes remained stronger than expected, the delivery of some properties in FY2014 waspostponed, until FY2015, due to unexpected prolonged construction period.
 Some properties ongoing scheduled for delivery in FY2014 have been postponed until the following year.
These properties will be a contributing factor in FY2015 business performance.

661.0

100.8

586.2

83.5

457.7

13.159.7

FY2012FY2013

FY2014FY2012FY2013

FY2012FY2014FY2012FY2013

FY2014

Revenue （¥million）

45,77558,628

66,100＋12.7％

Gross profit （¥million）

5,974

8,358

10,080＋20.6％

Gross profit margin

13.1%

14.3%

15.2%

＋1.0P

Units sold (unit)

891

1,186

1,367＋181

14.3

FY201315.2

FY2014

1,1861,367891

FY2012FY2013

FY2014

8OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results Given our diligence at the development phase of the process, our revenue decreased slightly.
 Gross profit margin improved, due to sales strategies based on real estate market conditions, central
areas of cities and the development of properties; putting more emphasis on urban lifestyles.

271.3

256.6

59.4

56.8

25.8

547

23.2
21.0

113.1

FY2012405

29.1

FY2013

FY2014FY2012240

FY2013

FY2012FY2014FY2012FY2013

FY2014

Revenue （¥million）

11,31627,13625,661△5.4％

Gross profit （¥million）

2,913

5,689

5,944

＋4.5％

Gross profit margin

25.8%

21.0%

23.2%

＋2.2P

Units sold (unit)

240547405△142Major projects delivered in FY2014

UnitsFY2013

FY2014FY2012FY2013

FY2014

Average price

9OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results

 After 3 years steady growth, from start-up, it has emerged as our 3rd core business due to inflow offunds into real estate investment market.
 Expanding business continuously by acquiring knowledge

165.2
35.8
69.6

FY2012

22.7

15.9

18.8

48
22.9

4.2FY2013

FY2014

Revenue （¥million）
Gross profit （¥million）
Gross profit margin
Units sold (unit)

6FY2012FY20122521.7FY2013

FY2013

FY2014FY2012FY2013

FY2014FY2012FY2013

FY2014FY2014

1,888

6,968

16,528＋137.2%

427

1,594

3,586＋124.9%

22.7%

22.9%

21.7%

△1.2P

62548＋2310

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results

Non-operating income・ Non-operating expenses
FY2013

FY2013

FY2014% ofRevenue% ofRevenue

Changes

6,816

7.0%

6.5％

＋431

Personnel expenses

1,732

1.8%

1.7%＋165

Advertising expenses

941

1.0%0.8%△28Promotion expenses

909

0.9%0.4%△427（Million yen）

790

0.8%

0.8%

＋112

Taxes and dues

503

0.5%

0.7%

＋226

1,939

2.0%

2.1%

＋383

Other

 Increase in personnel costs is a result of redeveloping current
infrastructure for future business growth.
 Decrease in promotional expenses is due to improvement of out
brand recognition via television commercials and listing on TSE
 Decline in SGA Ratio from 7.0% to 6.5%

% ofRevenue（Million yen）

Lease payments

FY2014
Changes% ofRevenue

318

0.3％0.2％△137

Interest income
Dividends income

30.0％0.0％＋5

Rentals received

120.0％

0.0％＋12Foreign exchange gain

257

0.3％

0.1％

△138

Insurance income

7.

0.0％

0.0％

＋11

Other

37

0.0％

0.0％

△28

1,324

1.4%

0.9％

△279

Interest expenses

895

0.9%0.7％△100Commission

263

0.3%0.1％

△133

Other

165

0.2%

0.1％

△45 Decrease in foreign exchange gain due to continuing
depreciation of the yen against the U.S. dollar Decrease in interest expenses and commission due toimprovement of creditworthiness as a listed company
on the First Section of the TSE

11OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results（Million yen）

Sep 30, 2013

Sep 30, 2014

Changes

Sep.30, 2013

Sep.30, 2014

Changes

76,286＋21,909

48,105＋15,424

Cash and cash equivalents

26,077＋348

Current liabilities

35,655＋10,613Inventories

42,730＋20,637

Long-term liabilities

12,450＋4,810Other

7,478＋922
29,963＋7,083

1,748＋609

Shareholders’ equity

30,005＋7,083

Tangible fixed assets

315＋405

Capital stocks

3,972＋10Intangible fixed assets

205

△44

Capital surplus

5,873＋101,227＋248

Retained earnings

20,159＋7,062

33△10Accumulated othercomprehensive income△41078,069

22,50878,06922,508Investments and other assets
Deferred assets

BPS

1290.84 yen

Equity Ratio

36.8％

ROE

23.2％

 Increase in inventories is from steady property purchases.
 Increase in interest-bearing debt is mainly for purchasing properties
to increase our inventories
 Increase in net assets is a result of profit increase.

12OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results（Million yen）

4,219

△15,602△463△2,157

12,696△201118△3416,570△17,995

9,279＋16,570

25,850△1,424— Increase of net income before income taxes— Increase in inventories, etc.
— Increase of time deposits— Purchases of tangible fixed assets, etc.
— Increase of bank loans payable— Payments for redemption of bonds, etc.

13

OPEN HOUSE CO.,LTD.

FY2014 Consolidated Financial Results

Proportion

Resale properties
15.8%

Others0.5%

21,476

50.3%

55.4%

+13,604

14,309

33.5%

21.6%

△626

6,741

15.8%

22.2%

+7,349

203

0.5%

0.8%

+311

42,730100.0%

100.0%+20,637

Resale properties
22.2%
Single –family homes
50.3％

Condominiums
33.5%

Condominiums
21.6%

Proportion

Others0.8%

Single –family homes
55.4％

09/2011
09/201209/2013

24.0
39.5
42.7

12/201354.2

03/201456.0

06/201465.9

09/201463.3

14

OPEN HOUSE CO.,LTD.

Business Performance Forecast for FY2015

OPEN HOUSE CO.,LTD.

+29.3%+14.2%+12.6%+17.2%+15.1%

The above forecast for FY 2015 does not include the financial numbers of Asakawa Home to be acquired on January 15. 2015.

16

OPEN HOUSE CO.,LTD.

Business Performance Forecast for FY2015

Single –family homes

Condominiums

Resale properties

Pursuing stable and sustained growth

Making careful decisions
based on real estate market conditions

Accelerating business growth with taking
advantage of current financial
environment
17

OPEN HOUSE CO.,LTD.

Business Performance Forecast for FY2015―(NOTE) Breakdown of annual dividends per share: FY2014
FY2015common dividend of 35 yen and commemorative dividend of 5 yen
common dividend of 40 yen

18

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

Our initiatives toward next stage

Operating results and financial position
Net income (￥100 million)

Revenue (￥100 million)

FY2011FY2012FY2011FY2012FY2013*Total assets (￥100 million)

Net assets (￥100 million)

FY2011FY2011FY2012(Million yen)

Asakawa Home will become a consolidated subsidiary of OpenHouse after completing the acquisition of all the shares as ofJanuary 15, 2015.
Mr. Mikio Hikita plans to assume the duties of CEO (afteracquisition), after his assumption of office as Senior Advisor ofOpen house, starting November 13, 2014
*Mr. Hiroyuki Hosobuchi , CEO (currently) of Asakawa Home
plans to assume the position of chairman without executive
power.

FY2013*FY2013*

FY2012FY2013*

FY2011FY2012FY2013 *Changes

Revenue

30,27029,69730,858+3.9％

Net income

944

812

1,041+28.2％

Total assets

14,014

14,44916,525+20.75

Net assets

3,950

4,743

5,769+10.26* Jan 31, 2013 to Dec 31, 2013
20

OPEN HOUSE CO.,LTD.

Our initiatives toward next stage

Area strategy
Asakawa Home head office,sales offices and brunches

Product strategy
Asakawa Home
housing exhibition

Open House
Brokerage officesSales rankings by business categoryof home builders < FY2012>
By built-for-sale

By built-to-order

Source: “TACT 2013.10” by JSK

Rankings of the supply of new housesin the Tokyo metropolitan area <FY2012>
Ranking Before Acquisition

Ranking After Acquisition＋(Estimated by Open House)21OPEN HOUSE CO.,LTD.

Our initiatives toward next stage

Business model

Built-for-sale

Built-to-order

Advantage

Sales forces :property purchases and brokerage service

Construction

Main business areas

Tokyo’s 23 wards, Kawasaki and Yokohama

Tama area, Tokyo metropolitan areaUnits for construction per year

Approximately 1000units

Approximately 2200 units

Synergy effects from the acquisition
Tokyo’s 23 wards

Consideration of collaboration withAsakawa Home in a development
project of small/medium sizedcondominium

Tama area

Acceleration of expansion sales
areas along the Chuo Line withcollaborating effectively withAsakawa Home

＊Tama area consists of the 26 cities and three towns
except Tokyo's 23 wards in Tokyo.

In Tokyo 23’s wards, increasing sales amount of singlefamily homes with leveraging Asakawa Home‘sstrength based on construction business.
Kawasaki・Yokohama

Expanding sales network to the Tokyo metropolitan area
Reduction of construction costs (through joint purchasing and product development)

22

OPEN HOUSE CO.,LTD.

Our initiatives toward next stage

FY2013

 Expanding business infrastructure

47.0

FY2014

 Planning to open new brokerage office＊an increase of one or two more offices the previous year

57.2

(Forecast)wards in Tokyo.

FY2013

 Reduction of construction period and construction cost

661.0

FY2015900.0(Forecast)

FY2013271.3

FY2014256.6

 Leveraging Asakawa Home's strength based on construction
business Focusing on urban-type projects in central areas of cities where
there is a steady demand Developing efficient sales strategy based on future market trends

200.0

FY2015(Forecast)

FY2014

 The decrease in supply and the increase in sales price of new
condominiums creates more business opportunities.

586.2

FY2014FY2013

 Planning to enter into the Tama area along the Chuo Line
＊Tama area consists of the 26 cities and three towns except Tokyo's 23

71.5

FY2015 Cultivating and expanding our business model for resale
properties

69.6

 Expanding business areas to Osaka and Nagoya

165.2＊Planed to open Osaka branch
FY2015(Forecast)

300.0
23

OPEN HOUSE CO.,LTD.

Our initiatives toward next stage

Early achievement of ¥200 billion in sales through the effective utilization of existing
management resources

Single-family
homesBrokerage

Condominiums

Resale properties

continues to be a major driving force
behind our growth and evolution.

secure stable earnings and sustain
corporate growth by adopting
portfolio management.
―Adapting to the changes in businessenvironment

FY201524

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Number of Net-migration for major cities

Number of the households change of ku-area of Tokyo

personmillion household

80,0006
Ku-area of Tokyo

60,000540,000

20,00040
3-20,000

Ku-area of Tokyo
Yokohama-shi-40,000

2

Kawasaki-shi
Nagoya-shi-60,000

1

Osaka-shi-80,000

Kobe-shi
Fukuoka-shi
0-100,000
1985

1989

1993

1997

2001

2005

2009

2013

1985

1989

1993

1997

2001

Year

Source: Ministry of Internal Affairs and Communications“Report on Internal Migration in Japan”

2005

2009

2013
Year

Source: Statistics Division Bureau of General Affairs
26

OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Building Construction Cost Index : Construction cost120

Condominium (SRC)110

House (wood)

1009080

1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7
2005

2006

20072008

20092010

2011

2012

2013

2014

2005 average＝100
Source：Construction Research Institute “Monthly Report on Construction Price Index”
27OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Changes in average price of newly built condominiums and initial month sales contract rate <Tokyo’s 23 wards>%

10 thousand yen

8,000

initial month sales contract rate

9088.0% (2014.1 )

7,000

80

6,000

70

5,00060

4,000503,000

40average price of newly built condominiums

2,00030

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 82011

2012

2013

2014

Source：MILT “ Monthly marketing report of lands”
28

OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Changes in the vacancy rate and average rent from advertising of large buildings < Tokyo’s five central wards>

yen/ tsubo =3.3m²

25,0009.43% (2012.6 )%vacancy rate

1020,000

815,000

610,000

4
Average rent from advertising (yen/tsubo =3.3m²）

5,000
01
2005

712006712007712008712009712010712011712012721201371201474201310420140

Source: Miki Shoji Co., Ltd. “Tokyo (5 Central Wards) Office Building Market Research Reports”

Change in market cap rate of class A building and residential property%

76

Nihonbashi/class A building

Roppongi/class A building

Nishi-shinjyuku/class A building

Southern Tokyo/ Standard Single

Southern Tokyo/ Standard multifamily

54310200542006

10420071042008

104200910

Source：Japan Real Estate Institute “The Japanese Real Estate Investor Survey”

42010

104201110420121029

OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Change in “Amounts outstanding of loans and bills discounted” and “New loans for fixed investment”（Domestically Licensed Banks）
Outstanding of loans¥100 million

New loans¥100 million

700,000

40,000

Amounts outstanding of loans and bills discounted

600,000

30,000500,000

20,000400,000

10,000New loans for fixed investment
300,000

03

6

9 12 32003

69 12 3

2004

69 12 32005

69 12 32006

69 12 32007

69 12 32008

69 12 32009

69 12 32010

69 12 32011

69 12 32012

69 12 3

2013

62014

15%
10%

Amounts outstanding of loans and bills discounted (YOY%)
5%
0%
-5%

New loans for fixed investment (YOY%)-10%
3

69 12 3

2003

69 12 3

2004

69 12 32005

69 12 32006

69 12 32007

Source： Bank of Tokyo “Loans and Bills Discounted by Sector”

69 12 32008

69 12 32009

69 12 32010

69 12 32011

69 12 32012

69 12 3

2013

62014

30

OPEN HOUSE CO.,LTD.

<Reference> Market Trends

Diffusion index of "Accommodative" minus "Severe“％ point

40Construction

30
20All industries

100

Real Estate-10-20-30-40
3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6
2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Source：Bank of Tokyo “TANKAN”
31

This document and reference materials may contain forward-looking statements, but please understand that actual results
may differ significantly from these forecasts due to various factors.
This document is prepared for the purpose of information only, and subject to change without notice.