.

OPEN HOUSE CO.,LTD.

FY2015 3Q Topics
3Q Highlights
 Revenue and income continued to post record highs (3Q cumulative).
Revenue:¥ 121.7 billion (+67.4% YOY)
Operating income: ¥ 12.7 billion (+50.2% YOY) Single-family homes showed continued steady growth, with revenue in this sector growing by 44.1%
YOY.
 Property resales experienced dramatic growth, with revenue in this sector growing by 274.6% YOY.
 Contracts were concluded for all condominium units scheduled for delivery during the 4Q (225 units).
 Asakawa Home, made a consolidated subsidiary in January 2015, contributed to business expansion.

Property Purchases
 Proactively purchasing properties and building sites to achieve further company growth Inventory at the end of 3Q: ¥93.8 billion (+¥30.4 billion from the end of the previous period)

Shareholder Benefit Program Adopting a new Shareholder Benefits Program Shareholders will receive benefits in home purchasing, etc. (basis date for benefits: September 30, 2015)2

Ⅰ. FY2015 3Q Consolidated Summary

4Ⅱ. Consolidated Business Performance Forecasts for FY2015

15

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary

 Revenue increased significantly in FY2015 3Q, exceeding FY2014 full-year revenue (¥112.1 billion)in the last three quarters.
 Business performance progressed according to plan. Revenue reached 70% and operating income
64% of forecast figures. The condominium business was strong, with contracts concluded for all
condominium units scheduled for delivery during the 4Q (225 units).
（Million yen）

FY2014 3Q

FY2015 3Q

YOY%% of Revenue% of Revenue

13,730

18.9%

17.6%

5,239

7.2%

7.1%

8,490

11.7%

10.5%

Non-operating income

780.1%

0.2%

197.7%

Non-operating expenses

802

1.1%

0.7%

7.3%

7,766

10.7%

10.0%

4,625

6.4%

6.2%

72,737

SG&A Expenses

65.5%

4

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary The real estate brokerage and single-family home businesses maintained steady growth.
 The property resale business achieved significant growth based on energetic progress in thepurchase and sale of properties.
 Asakawa Home, made a consolidated subsidiary in January 2015, also contributed to businessexpansion (consolidated accounting period: January - June).
（Million yen）

FY2014 3Q

YOY%
4,132

29.2%

70,28068.9%

46,39644.1%

14,853(66.6%)

8,624

274.6%

--405

59.3%

283

2.7%

(1,959)-72,73767.4%
5

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary The Kichijoji brokerage office and Jiyugaoka brokerage
office opened in April 2015 and July 2015, respectively,bringing the total number of offices to sixteen.
 Despite the consumption tax hike, the number brokered ineach quarter increased significantly YOY.

Revenue (¥million)

Operating income margin

Operating income (¥million)

1,675

1,861

5,338

34.9%

34.2%

1,411

4,132
3,510

Number brokered

1,323
1,097

1,117
31.8%

FY13 3Q

FY14 3Q

FY15 3Q

FY13 3Q

FY14 3Q

FY13 3Q

FY15 3Q

2013 3Q

2014 3Q

2015 3Q

Inc.(Dec.)

Revenue （¥million）

3,510

4,132

5,338

29.2%

Operating income （¥million）

1,117

1,411

1,861

31.9%

Operating income margin

31.8%

34.2%

34.9%

0.7%

Number brokered

1,097

1,323

1,675352

FY14 3Q

FY15 3Q

FY13 3Q

FY14 3Q

FY15 3Q

Number brokered in each quarter and YOY change (%)
123.7%

116.4%

4024181Q
FY20142Q

121.8%

132.9%

503505

505

3Q

4Q

1Q
FY2015125.6%

135.9%
119.7%

568602

2Q

3Q
6

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary

 Ensuring continued steady growth by maintaining steady purchases of scarce residentialbuilding sites in urban locations.
 As prices of new condominiums rise, single-family homes continue to hold a price advantage,
resulting in strong sales of single-family homes.
Revenue(¥million)

Number delivered
1,341

66,85640,805

FY13 3Q

46,396

FY14 3Q

FY15 3Q

948

822

FY13 3Q

FY14 3Q

FY15 3Q¥million

70

2013 3Q

By type of salebuilt-for-salehouseslands

built-toorder houses

Total

Revenue（¥million)
Number delivered <a>
Revenue（¥million)

2014 3Q 2015 3Q

Inc.(Dec.)

15,81615,16426,264

73.2%

353

357

608

251

20,727

26,48634,002

28.4%

469

591

733

142

Revenue（¥million)

4,261

4,745

6,590

38.9%

Number delivered

289

310

449

139

Revenue（¥million)

40,80546,396

66,856

44.1%

822

948

1,341

393

Number delivered <b>

Number delivered <a>+<b>

Changes in the average price for new condominiums
in the 23 wards of Tokyo and average pricefor our single-family homes (built-for-sale)
Average price for new condominiums in the 23 wards

60

62.30

53.39
50

43.20
40

30

45.41
Average price for our single-family homes (built-for-sale)

2011

2012

2013

2014

2015*Source: MLIT “Monthly marketing report of lands”
Condominium prices are on a calendar-year basis. Prices for our homes arefor the October- September period.
* For 2015 only, condominium prices are for January - June. Prices for oursingle-family homes are for the period of October 2014 - June 2015.

7

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary

 Conclusion of sales contracts has proceeded smoothly.
Contracts were concluded on all units scheduled for delivery during the 4Q (225 units).
 Land prices and construction costs remain high.
We will maintain a course of business development based on careful decision-making.
Revenue (¥million)

Number delivered

14,853

225

975,161

FY13 3Q

854,956

FY14 3Q

FY15 3Q

FY13 3Q

FY14 3Q

FY15 3Q

Projects delivered in FY2015 3Q

UnitsMedian price range

Open Residencia Shinjuku-yochomachi

19¥50million

UnitsMedian price range

Major projects to be sold in FY15 3Q

2013 3Q

2014 3Q

2015 3Q

Inc.(Dec.)

Open Residencia Higashinakano

18¥50million

Revenue（¥million）

5,161

14,853

4,956(66.6%)

Open Residencia Ebisu The House

25¥90million

Number delivered

97225

85(140)Open Residencia Nihonbashi Mitsukoshimae

19¥50million

Open Residencia Yoga

18

¥60million

8

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary The real estate investment market has continued to grow, backed by the BOJ’s monetary easingpolicies.
 Property resales demonstrated strong growth, thanks to the proactive purchase and sale ofproperties.

Revenue

Number delivered(¥million)
32,311

79

2013 3Q

2014 3Q

2015 3QInc.(Dec.)

Revenue （¥million）

4,669

8,624

32,311

274.6%

Number delivered

162779

52

27

8,624

16

4,669

FY13 3Q FY14 3Q FY15 3Q

FY13 3Q FY14 3Q FY15 3Q

Breakdown of properties owned (as of the end of FY2015 3Q)
By property size*
15By use

1426

By location
1339
8N=85N=85

N=85511356≤¥100 MIL>¥100 MIL ≤¥500 MIL

20>¥500 MIL

* Based on book values at the end of FY2015 3QCondminium

Office building

Complex building

TokyoKanagawa

Other Kanto area

Kansai and Chubu area

9OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary

 Steady growth in contracts, particularly in construction contracting to real estate companies
 Contracts increased for subcontracting to Asakawa Home by Open House Development,
contributing to a stable future supply of single-family homes.
January-June period January-June periodof 2014of 2015

Operating results for FY2015 3Q cumulative(From January 1, 2015 to June 30, 2015)

Revenue¥ 13,903 million

Number delivered (built-to-order houses)

963

Unfilled subcontracting orders received
from Open House Development

Construction completed

1,006

1,284

Building sales collaboration (sales began August 2015)<Belleza Bunkyo Sengoku-Asakawa Home brand condominium>

December 31, 201468

June 30, 2015

188

Seller/constructor : Asakawa Home
Sales collaboration (sales representative) : Open House Development

188
68

2014.12.31

2015.06.30
10

OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary（Million yen）S&G expenses

Non-operating income and expenses

FY2014 3Q% ofRevenue

7.2％

7.1%

1,414

1.9%

2.1%

Sales commissions

453

0.6%

1.0%

General expenses

716

1.0％

0.9％

Advertisingexpenses

650

0.9%

0.7%

Promotion
expenses

350

0.5%

1,654

2.3%

OthersInc.(Dec.)% of
Revenue

5,239
Personnel
expenses

FY2014 3Q

Inc.(Dec.)

78

0.1％

0.2%

Foreign exchange gain

34

0.0%

0.1%

Others

43

0.1%

0.1%

802

1.1％

0.7%

Interest expenses

604

0.8%

0.6%

0.3%

Commissions

108

0.1%

0.1%

2.2%Others

890.1%

0.1%

 The increase in S&G expenses was attributable to factors
such as growth in personnel and general expenses
associated with hiring new employees, office openings, andgrowth in sales costs due to increased sales in property
resale business, as well as to procedures required to makeAsakawa Home a consolidated subsidiary.

 The increase in non-operating expenses was due to factors
such as increased balance of long- and short-term debt,
despite lower interest rates, due to the company’s improved
credit rating.
11OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary(Million yen)Sep 30,2014

Current assets

June 30,
2015

Sep 30,2014

Inc.(Dec.)

98,196

Liabilities

63,530Cash and cash equivalents

26,426

Current liabilities

46,269Inventories

63,368Long-term liabilities

17,261Others8,401

Fixed assets

2,358

Tangible fixed assets

720

Intangible fixed assets

161

Investments and other assets
Deferred assets
Total assets

Net assets
Shareholders’ equity
Other accumulatedcomprehensive income

June 30,
2015

Inc.(Dec.)

37,04737,088(41)

1,47623100,577

 The increase in assets was due to various factors,including increased inventories after making Asakawa
Home a consolidated subsidiary and the proactive
acquisition of properties and building sites in the realestate sales business.

Total liabilities andnet assets

100,577

 Liabilities increased due to fundraising, primarily throughborrowing to make Asakawa Home a consolidated
subsidiary and to purchase properties and commercial
building sites in the real estate sales business.

12OPEN HOUSE CO.,LTD.

I. FY2015 3Q Consolidated Summary(Million yen)Sep. 30, 2013

(Ratio)Sep. 30, 2014
<A>

(Ratio)June 30, 2015
<B>

(Ratio)Inc. (Dec.)<B>-<A>

Single–family homes

21,47650.3%

35,08055.4%

42,434

45.2%

7,354

Condominiums

14,30933.5%

13,683

21.6%

16,583

17.7%

2,900

Property resales

6,741

15.8%

14,09022.2%

26,33428.1%

12,244

Asakawa Home－－－－

8,026

8.6％

8,026

Others

203

0.5%

513

0.8%

437

0.5%

(76)

42,730100.0%

63,368100.0%

93,815100.0%

30,447

Total

874.4
659.6

633.6

938.1

722.7

542.3

560.4

2013.9.30214.7

2013.12.31
259.2

2014.3.31
300.1

2014.6.30
335.2

2014.9.30
350.8

2014.12.31
370.0

2015.3.31
399.5

2015.06.30
424.3

Condominiums

143.0

163.6

137.7

167.7

136.8

160.3

146.1

165.8

Resale properties

67.4

114.9

117.7

151.9

140.9

186.6

244.8

263.3

Asakawa Home－－－－－－

78.1

80.2

427.3

(100 million yen)

Single –family homes13

Ⅰ. FY2015 3Q Consolidated Summary

4

Ⅱ. Consolidated Business Performance Forecasts for FY2015

15

OPEN HOUSE CO.,LTD.

Ⅱ. Consolidated Business Performance Forecasts for FY2015

 We revised our forecasts upward twice in February and May 2015 following the announcementof initial FY2015 forecasts in November 2014.
 Since business performance has progressed according to plan through 3Q, current businessperformance forecasts remain unchanged.

FY2013

FY2015FY2014

Actual results

Actual results

YOY(%)

Forecast

YOY(%)

Revenue（million yen）

96,999112,14515.6%

175,000

56.0%

Operating income (million yen)

10,185

13,74635.0%

20,00045.5%

Ordinary income (million yen)

9,179

12,882

40.3%

19,00047.5%

Net income (million yen)

5,661

7,763

37.1%

12,00054.6%

Annual dividends per share (yen) *1

25.00

40.00 *2

15.00

60.00

20.00

12.50

20.00

7.50

30.00 *3

10.00

287.82275.50－420.95－143.91137.75－210.48

－

8.7

14.5

<Post-stock split>
EPS (yen)<Post-stock split>
Payout ratio (%)

14.3(NOTE) The company undertook a 2-for-1 split of common stock with an effective date of July 1, 2015. *1
Breakdown for dividends: Common dividend ¥35.00, commemorative dividend ¥5.00 *2
Ordinary dividend ¥30.00 (pre-stock split: ¥60.00)*3
15OPEN HOUSE CO.,LTD.

Ⅱ. Consolidated Business Performance Forecasts for FY2015(Million yen)

FY2013

FY2014

Actual results

Actual results

FY2015YOY%

Forecast

YOY%

Real estate brokerage

4,704

5,728

21.7%

7,300

27.4%

Real estate sales

94,082

108,760

15.6%

170,800

57.0%

Single–family homes

58,628

66,10012.7%

90,00036.2%

Condominiums

27,136

25,661(5.4%)

20,000(22.1%)

Property resales

6,968

16,528137.2%

41,000148.0%－－－

19,500－

1,349

469

(65.2%)

300(36.1%)

369

376

3.1%

400

6.2%

(2,157)(2,720)－(3,500)－96,999

112,14515.6%

175,000

56.0%

Asakawa Home**
OthersReal estate financing
Adjustments

Total16OPEN HOUSE CO.,LTD.

Ⅱ. Consolidated Business Performance Forecasts for FY2015

ObjectThe stock split was intended to increase the liquidity of company stock and to create amore advantageous environment for investors.

Summary

One share of common stock was split into two shares of common stock (effective date:July 1, 2015).

Total number of issued
shares after stock split

57,400,000 shares

Basic policy on dividends:

Our basic policy is to maintain stable dividends while duly accounting formatters such as future business development and ensuring adequate strengthin our financial base. Dividend payout ratio:10－20%

Summary:

Dividends were increased twice alongside two upward revisions in businessperformance forecasts.
Annual dividends per sharecommemorative dividend

Pre-stocksplit¥ 5.00¥ 25.00¥ 35.00¥ 60.00¥ 40.00¥ 50.00

Post-stocksplit¥ 30.00

Common dividend
FY2013
ActualFY2014
ActualInitial Forecast(Nov. 2014)

FY2015
Revised Forecast(Feb. 2015)

Revised Forecast(May 2015)17

OPEN HOUSE CO.,LTD.

Ⅱ. Consolidated Business Performance Forecasts for FY2015

Purposes of adopting a new Shareholder Benefits Program
To express gratitude for continued shareholder support for the company and to make company stock more attractive
to investors, thereby increasing the numbers of shareholders who hold company stock for the long term, as well as toprovide shareholders with opportunities to more broadly understand the group’s businesses

Summary
1. Eligible shareholders

Those owning one or more trading units (100 shares) of company stock as recorded on the shareholders’ register asof September 30 of each year2. Details of benefits
Details of benefits

Less than 3 years’continuous holding

3 or more years’continuous holding(i) Benefits when purchasing homes brokeredby the company or sold by the group¥100,000 cash back

¥300,000 cash back(ii) Quo Card

¥3000-yen card

¥5000-yen card

3. Start of this program

The Shareholder Benefits Program will be implemented on the first basis date of September 30, 2015.

18

OPEN HOUSE CO.,LTD.

Ⅱ. Consolidated Business Performance Forecasts for FY2015

 Ordinary income ratio: 10%; ROE: 20%; equity ratio: 30%
 We continue to maintain a course of strategic investment targeting growth while maintaining abalance between financial soundness and capital efficiency.
(Million yen)

FY2013

FY2014 3Q

FY2014FY2015 3Q

FY2015(Forecast)

Revenue

96,99972,737112,145

121,733

175,000

Ordinary income

9,179

7,766

12,882

12,121

19,000Net income

5,661

4,625

7,763

7,571

12,000Total assets

78,06991,846

100,577

146,800―

Net assets

29,96333,91237,04742,509―Ordinary income ratio

9.5%

10.7%

11.5%

10.0%

10.9%

ROE

25.2%

―

23.2%――Equity ratio

38.4%

36.9%

36.8%

28.9%

―19

――Disclaimer ――This document contains forward-looking statements concerning future business performance. These statements include
company forecasts based on information available at the time of publication and involve potential risks and uncertainties.
They do not constitute a guarantee of future results. The information provided herein is subject to change without notice; noguarantees are provided with regard to the accuracy or reliability of such information.
This document is provided for informational purposes only. It does not constitute a solicitation to invest.