Note:

Please note that this document is a Japanese-English translation of the summary of the official announcement inJapanese “Kessan Tanshin” for reference purposes only.

Summary of Consolidated Financial Results
for the Third Quarter Ended September 30, 2018 〔Based on Japanese GAAP〕
August 14, 2018
Company name:Open House Co., Ltd.

Stock exchange listings:
Code Number:
URL:
Representative:
Scheduled date of quarterly securities report filing:
Supplementary materials for quarterly financial results:
Quarterly results briefing meeting :Tokyo Stock Exchange, First section3288
http://openhouse-group.com/irMasaaki Arai, President and CEO
August 14, 2018
YesNo
(Million yen, rounded down)

1.

Consolidated Financial Results for the Third Quarter Ended September 30, 2018
(October 1, 2017 to June 30, 2018)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Ordinary income

Nine months ended
Million yen%
Million yen%
Million yen%
June 30, 2018
261,048
23.5
31,58824.3
30,562
26.1
June 30, 2017
211,427
17.2
25,41412.4
24,244
11.1(Note) Comprehensive income: Nine months ended June 30, 2018
¥ 21,397 million (35.2%)
Nine months ended June 30, 2017
¥ 15,821 million (13.0 %)EPS
Nine months ended
June 30, 2018
June 30, 2017

Profit attributable toowners of parent
Million yen%

21,366
15,762

35.6
12.8

Diluted EPS
Yen

Yen

382.86281.60379.88280.00(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
June 30, 2018309,449
100,346
32.3
September 30, 2017
256,736
83,37932.3(Reference) Shareholders’ equity: As of June 30, 2018
¥ 99,952 millionAs of September 30, 2017¥ 82,970 million

2.

Dividends

Annual dividends per share
1Q-end2Q-endYen――

FY 2017
FY 2018
FY 2018 (Forecast)(Note) Revision of the latest dividend forecast: No

3.

3Q-end

Yen
30.00
46.00

Year-end

Yen――

Forecast of Consolidated Operating Results for FY2018(October 1, 2017 to September 30, 2018)

TotalYen
35.00

Yen
65.00

52.00

98.00

(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

Full year
380,000 24.7
47,50026.3(Note) Revision of the latest consolidated results forecast: No

46,00027.3

31,70027.8

568.14

Revenue
Million yen%Open House Co., Ltd. (3288)

EPS

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*Notes:(1) Significant changes in consolidated subsidiaries during the period(Changes in specific subsidiaries resulting in a change in the scope of consolidation): None
(2) Adoptions of special accounting methods in presentation of quarterly financial statements: Yes(3) Changes in accounting policies, changes of accounting estimates, and revisions and restatementsⅰ) Changes in accounting policies in accordance with changes in accounting principles: Noneⅱ) Changes in accounting policies other than the above:

Noneⅲ) Changes in accounting estimates:

Noneⅳ) Revisions and restatements:

None(4) Number of shares issued and outstanding (common stock)ⅰ) Number of shares issued at period-end (including treasury stock)June 30, 2018:57,502,300 shares

September 30, 2017:57,463,600 shares

September 30, 2017:

1,673,194 sharesⅱ) Treasury stock at period-end
June 30, 2018:

1,673,280 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
June 30, 2018:

55,807,111 shares

June 30, 2017:

55,973,249 shares* This quarterly financial results report is not subject to quarterly review procedure based on the Financial Instruments andExchange Act.
* Notes regarding forward-looking statements:
Consolidated business forecasts are based on assumptions from information available to management at the time ofdisclosure and those deemed to be reasonable.
Actual results may differ significantly from forecast due to various unpredictable reasons.

Open House Co., Ltd. (3288)

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Consolidated Quarterly Financial Statements1）Consolidated Quarterly Balance Sheets(Million yen)

End of FY 2017(as of September 30, 2017)

End of FY 2018 3Q(as of June 30, 2018)

AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Real estate for sale
Real estate for sale in process
Operating loans
Other
Allowance for doubtful accounts
Total current assets

90,910925
19,542
125,351
6,056
5,820
(178)
248,429

84,785
1,297
38,239157,782
11,3877,889（166）
301,216

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets

3,113
1,299
3,841
8,255

3,442
1,148
3,598
8,189

51
256,73643
309,449

10,652
41,854
562
8,696
5,205
2,113
13,52982,613

12,68160,375562
20,666
5,064
1,667
14,979115,996

1,993
88,6411279
1790,743

1,582
91,42113
69
19
93,106173,357

209,103

4,032
5,934
76,038(3,102)82,902

4,085
5,986
92,883(3,103)99,852

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

860

1484

Total accumulated other comprehensive income
Subscription rights to shares

68408

99
394

83,379256,736

100,346
309,449

Deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payable
Provision
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
OtherTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

Total net assets
Total liabilities and net assets

Open House Co., Ltd. (3288)

3|2）Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income(Million yen)

Nine months ended
June 30, 2017
(From October 1, 2016
to June 30, 2017)

Nine months ended
June 30, 2018
(From October 1, 2017
to June 30, 2018)

Revenue

211,427

261,048

Cost of revenue

172,842

213,108

Gross profit

38,58547,940Selling, general and administrative expenses

13,171

16,351

Operating income

25,414

31,5881020

Dividends income

314House rent income

4278

Foreign exchange gains

224

―

Other

103

68

Total non-operating income

382

182

Interest expenses

635

813

Commission fee664

48

Foreign exchange losses―

206

Non-operating income
Interest income

Non-operating expenses

Other252

139

1,552

1,207

Ordinary income

24,24430,562

Income before income taxes

24,24430,562

Income taxes

8,482

9,196

Profit15,762

21,366

Profit attributable to owners of parent

15,762

21,366

Total non-operating expenses

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)

Nine months ended
June 30, 2017
(From October 1, 2016
to June 30, 2017)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

Nine months ended
June 30, 2018
(From October 1, 2017
to June 30, 2018)15,762

21,366

356

62459

30

15,82121,397

15,821

21,397

Open House Co., Ltd. (3288)

5|3) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Tax expenses is calculated by multiplying income before income taxes by an effective tax rate that was reasonably
estimated by applying tax effect accounting to estimated income before income taxes for the fiscal year ended
September 2018 including the third quarter under review.
(Change in scope of consolidation and application of the equity method)
From the first quarter for FY2018, Open House Texas Property Management LLC and Open House Ohio Realty &Investments LLC, which were non-consolidated subsidiaries of the Company, have been included in the scope ofconsolidation as those importances have increased.
(Segment and Other Information)【Segment Information】
Ⅰ. Nine months ended June 30, 2017 (October 1, 2016 to June 30, 2017)
Information on revenue, income or loss, and other items by reportable segment（Million yen）
Amount Recorded onAdjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single-family
Condominiums
homes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal

133,754

9,262

67,813597

211,427―

211,427

―

―

507

―

507

(507)

－Total133,754

9,262

68,321597

211,935(507)

211,427

Segment Income (Loss)

16,404

760

8,947

(1)

26,111(697)

25,414

Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥(697)million for segment income (loss) includes intersegment elimination of ¥(6)million and corporate expenses of¥(690) million that is not distributed to the reportable segments. Corporate expenses are primarily general and administrative
expenses that do not belong to the reportable segments.
2. Segment income (loss) has been adjusted to operating income described in consolidated quarterly statements of income.

Ⅱ. Nine months ended June 30, 2018 (October 1, 2017 to June 30, 2018)
Information on revenue, income or loss, and other items by reportable segment（Million yen）
Amount Recorded onAdjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single-family
Condominiums
homes related
Revenue
Revenue from OutsideCustomers
Intersegment revenueand transfers
Total
Segment IncomeProperty
resales

OthersTotal

151,690

21,05878,5509,748

261,048―

261,048――

22―

22(22)―

151,690

21,05878,5729,748

261,070(22)

261,048

18,848

2,205

9,610

1,570

32,234(646)

31,588(NOTE)
１. Adjustment of ¥ (646) million for segment income includes intersegment elimination of ¥31 million and corporate expenses of¥ (678) million that is not distributed to the reportable segments. Corporate expenses are primarily general and administrative
expenses that do not belong to the reportable segments.
2. Segment income has been adjusted to operating income described in consolidated quarterly statements of income.
Open House Co., Ltd. (3288)

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2. Notes relating to changes in reportable segments etc.
The Group has changed its reportable segments from this first quarter. The brokerage business, single-family homes
business, and Open House Architect has be consolidated to establish a new segment, the single-family homes related
business with the aim of strengthening the business model - a comprehensive system from purchase and construction tointermediacy. The Group designated four segments: single-family related business, condominiums business, property resales
business and others as reportable segments.
Segment information for the nine months ended September 2017 on a consolidated basis was prepared based on thereportable segments applied for the nine months ended September 2018.

Open House Co., Ltd. (3288)

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