(Correction) Partial Correction on July 31, 2020 Both revenue and income achieved record highs in the first nine-month
operating performance.

Business
performance<FY2019 3Q>

Revenue:¥ 366.6 billion [ 40.4% YOY ]Operating income:¥ 36.3 billion [ 15.2% YOY ]Profit attributable to owners of parent :¥ 24.4 billion [ 14.6% YOY ] Single-family homes related business:
Gross profit margin for the third quarter (April–June) rebounded.
 Condominium business:
Steadily growing operating performance is expected to outperform the full-year forecast.
 Property resales business:
Business has been running better than the forecast, thanks to strong demand from
corporations.
 U.S. Real Estate business:
Meeting needs of wealthy class of domestic customers, the business expects to achieve
greater operating performance than the full-year forecast.

 Performance forecasts were revised upward, mainly driven by steady
growth in property resales and condominium businesses.
Performance
Operating performance stays on a strong uptrend toward achieving record
forecasts revised
highs in revenue and income for seven years in a row.

upwardIncreasing
dividends,
Stock splits

Revenue:
Ordinary income:
Profit attributable to owners of parent :¥ 530.0 billion [ 35.6% YOY ] ← ¥ 510.0 billion¥ 56.5 billion [ 19.4% YOY ] ← ¥ 54.0 billion¥ 38.2 billion [ 20.1% YOY ] ← ¥ 37.0 billion

 Strengthening of shareholder returns

Increasing dividends: Annual dividends per share ¥ 126.00 (¥ 28.00 YOY） ← ¥ 121.00
Stock splits: Ratio of 2-for-1 （Record date: September 30, 2019）
Shareholder benefits program: Will be abolished after implementation of the last plan on
September 30, 2019, the next record date.

 Revenue has significantly increased by 40%, driven by strong performance at single-family
homes related business.
 Both revenue and income achieved double-digit growth, marking record highs in the firstnine-month operating performance.
(Million yen)

FY2018 3Q

FY2019 3Q<2018/10-2019/6><2017/10-2018/6>
Actual% ofrevenue

Actual% ofrevenueInc.
(Dec.)

Revenue

261,048―366,608―

40.4%

Operating income

31,58812.1%

36,385

9.9%

15.2%

Ordinary income

30,562

11.7%

34,105

9.3%

11.6%

Profit attributable toowners of parent

21,366

8.2%

24,484

6.7%

14.6%

 Increases in both revenue and income were driven by actual demand at single-family homes
related and condominiums businesses.
 Revenue from combining property resales and other (U.S. real estate business) businesses
stayed on an uptrend.
(Million yen)
FY2018 3Q

FY2019 3Q<2017/10-2018/6><2018/10-2019/6>

ActualRatio

ActualInc.(Dec.)

Ratio

Revenue

261,048100.0%

366,608

100.0%

40.4%

Single-family homes related business *151,69058.1%

246,932

67.4%

62.8%

Condominiums

21,0588.1%

26,508

7.2%

25.9%

Property resales

78,57230.1%

74,893

20.4%(4.7)%

Others (including U.S. real estate business)

9,748

3.7%

18,316

5.0%

87.9%

(22)

―

(41)

―

―

Adjustments

Actual% of revenue

Actual% of revenue

Inc.(Dec.)

Operating Income

31,58812.1%

36,385

9.9%

15.2%

Single-family homes related business *18,848

12.4%

22,835

9.2%

21.1%

Condominiums

2,205

10.5%

3,863

14.6%

75.1%

Property resales

9,610

12.2%

8,217

11.0%

(14.5)%

Others (including U.S. real estate business)

1,570

16.1%

2,197

12.0%

40.0%

Adjustments

(646)

―

(728)

―

―

* Earnings of Hawk One are included in the single-family homes related business segment from FY2019 1Q.

 High demand for single-family homes has continued, due to rising prices of new condominiums
and a decline in sales of units.
 Sales have grown steadily and number of brokerage transactions increased 21.8% year on year.
Changes in the average price for new condominiums in Tokyo’s 23
wards and average price for our single-family homes (built-for-sale)

Operating income (¥billion)

Revenue (¥billion)(Million yen)

246.9

133.7

80

22.8
16.4

151.6

70

18.8

60

FY17 3Q

FY18 3Q

FY19 3Q

FY17 3Q

FY18 3Q

30

FY19 3Q

16/10-17/6

17/10-18/6

18/10-19/6

Inc.
(Dec.)

Revenue (¥million)

133,754

151,690

246,932

62.8%

Gross profit(¥million)

24,46328,161

37,23732.2%

FY2017 3Q FY2018 3Q FY2019 3Q

Gross profit margin

18.3%

18.6%

15.1%

(3.5)pt

Operating income (¥million)

16,404

18,84822,835

21.1%

Operating income margin

12.3%

12.4%

9.2%

(3.2)pt

44.35

44.77

43.32

76.44
71.42

66.29

67.32

53.39

50
40

70.89

Average price for new condominiums
in Tokyo’s 23 wards

43.47

43.48

45.41
Average price for our single-family homes (built-for-sale)
2011

2012

2013

2014

2015

2016

2017

2018

2019

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes are for the period
October – September. Condominium prices for 2019 are for the January – June period.
Prices of our homes are for the October 2018- June 2019 period.

Number brokered in each quarter*except Hawk One:
13.7%

38.8% 39.7%
26.3%

27.5%
16.8%

17.6%
6.7%

25.8%

26.7%

29.8%

25.2%

21.6%
30.1%

20.0%

606

708

733

742

841

989

929

963 1,053 1,249 1,115 1,171 1370

1Q 2Q
FY16

3Q

4Q

1Q 2Q
FY17

3Q

4Q

1Q 2Q
FY18

590

3Q

4Q

1Q 2Q
FY19

1521
3Q

 Gross profit margin rebounded after hitting the bottom in the second quarter (January–March) and is
expected to move upward further in the fourth quarter (July–Sept.).
 A decline in gross profit margin in the previous year had been due to gross margin mix resulting fromincreased number of built-for-sale houses and higher purchase prices of land.
Revenue (¥billion)

108.1

FY17 3Q

126.9

Gross profit (¥billion)

FY19 3Q

FY17 3Q

23.8

FY18 3Q

Lands

Built-to-order houses
Others

Total

24.6

FY19 3Q

3,302

18.3

18.8

FY17 3Q

FY18 3Q

FY2017 3Q

By type of sale
Built-for-sale houses

Number delivered

154.9
19.8

FY18 3Q

Gross profit margin (%)

15.9

FY19 3Q

FY2018 3Q

16/10-17/6

2,248

FY17 3Q

FY2019 3Q

17/10-18/6

2,634

FY18 3Q

FY19 3Q

Inc. (Dec.)

18/10-19/6

Revenue (¥million)

45,06543,852

67,263

53.4%

Number delivered

1,021

1,013

1,574

561

Unit Price(¥million)

44.1

43.3

42.7

(0.6)

Revenue (¥million)

53,57570,26670,9090.9%

Number delivered

1,227

1,621

1,728

107

Unit Price(¥million)

43.7

43.3

41.0

(2.3)

Revenue (¥million)

9,106

12,324

16,356

32.7%

Number delivered

618

866

1,167

301

Unit Price(¥million)

14.7

14.2

14.0

(0.2)

Revenue (¥million)

438

457

427

Revenue (¥million)

108,184
19,843

126,908
23,886

154,960
24,629(6.6)%
22.1%

18.3%

18.8%

15.9%

(2.9)pt

2,248

2,634

3,302

668

Gross profit (¥million)
Gross profit margin
Number delivered (built-forsale houses + lands)

3.1%

Open House Architect The business engaged in an increasing number of construction contracts
for OHD, while responding to growing demand from general providers forbuilt-for-sale homes in the Tokyo metropolitan district.
 Gross profit margin declined as expected, due to an increase in the numberof houses delivered under OHD contracts that do not incur operating
expenses.
Revenue (¥billion)

26.1

28.3

Number delivered to OHD

Number delivered

953

32.8

2,518

2,114

1,856

Composition ratio of OHD contracts
37.8%
28.1%

594

18.4%

342

FY17 3Q

FY18 3Q

FY19 3Q

FY17 3Q

FY18 3Q

FY19 3Q

FY2017 3Q FY2018 3Q FY2019 3Q

FY17 3Q

Inc.
(Dec.)

16/10-17/6

17/10-18/6

18/10-19/6

Revenue (¥million)

26,16728,38832,825

15.6%

Gross profit (¥million)

3,620

3,329

3,672

10.3%

Gross profit margin

13.8%

11.7%

11.2%

(0.5)pt

*1

1,856
342

2,114
594

2,518
953

404
359

Number delivered*1 Number delivered refers to the number of properties delivered under single-family
homes construction contracts to corporations.
Number delivered to OHD on the lower line

FY18 3Q

FY19 3Q

FY17 3Q

FY18 3Q

FY19 3Q

Number of
all Company contracts

Number of OHD contracts
included left

3,153

1,173

2,353

FY17 3Q

2,590

FY18 3Q

859

21.7%
up

569

FY19 3Q

FY17 3Q

36.6%
up

FY18 3Q

FY19 3Q

The above represents the number of contracts for construction orders
received during the respective fiscal year.

 The number of brokerage transactions in regard to Hawk One’s units by Open House also showedsteady increase.
 Gross profit margin for the third quarter (April–June) rebounded, though the margin for the firsthalf remained low because of special factors.
Number of brokerage transactions on Hawk One’s Unitsin each Open House Sales Center *contract basis

Outline of performance
FY2019 3Q(18/10-19/6)

65,521

Revenue (¥million)
Gross profit (¥million)

8,055

Gross profit margin

12.3%

Number delivered*including land ,built-to-order houses

1,673

Number of Sales*contract basis

Number of brokerage*contract basis

FY2019 3Q (2018/10-2019/6)

10 units and more

＜Tokyo area＞

Urawa

Musashiurawa

1,601

Kichichoji
Sengawa(9 at the same period last year)

1. Evaluation of market value of inventories(FY2019 1Q: October-December 2018)
When consolidating at the end of the previous fiscal year, contracted
inventories were valued at market value according to sales value, andthe amount equivalent to the gain on valuation (¥850 million) wasrecorded under net assets and not under gross profit.
2. Disposal of long-term inventories(FY2019 2Q: January-March 2019)
Long-term inventories (those open for contracts, with over 60 days
after completion of construction) were disposed of in line with thepolicy aimed at improving asset efficiency. As a result, gross profit
margin temporarily declined.

NoboritoMotoyawata
Nippori

AkabaneNerima

(20%YOY)

Special factors in gross profit margin

Urawachuo

Kawaguchi

Nakano299

Under 10 units

Kitasenju
Shinkoiwa

Ikebukuro

Kinshicho-kita
Kinshicho-minami
ShibuyaSasazuka

Nishikasai

Jiyugaoka

Sakurashinmachi

ooimachiMizonokuchi

Musashikosugi

KamataMotosumiyoashi

Shin-Kawasaki
Tunashima

Sakae

KawasakiShin-Yokohama
Hodogaya＜Nagoya area＞

TsurumiYokohama
KamiookaMotoyama

GokisoKanayama

Aratama Ratios of revenue components rose in the fourth quarter (July–Sept.), thepeak period of completing construction.
 The full-year forecast has been revised upward, as actual operating
performance is expected to outperform the initial goal.

Revenue (¥billion)

Gross profit (¥billion)

26.5
4.7

9.2

FY17 3Q

3.8

6.5

21.0

2.2

2.2

FY18 3Q

FY19 3Q

FY17 3Q

Number delivered

Operating income (¥billion )

380

390

FY18 3Q

FY19 3Q

172

0.7
FY18 3Q

FY19 3Q

FY2017 3Q FY2018 3Q FY2019 3Q

FY17 3Q

Inc.
(Dec.)

16/10-17/06

17/10-18/06

18/10-19/06

Revenue (¥million)

9,262

21,05826,50825.9%

Gross profit (¥million)

2,222

4,707

6,531

38.7%

Gross profit margin

24.0%

22.4%

24.6%

2.3pt

Operating income (¥million)

760

2,205

3,863

Operating income margin

8.2%

10.5%

Number delivered

172

Unit price(¥million)

53.7

FY18 3Q

FY19 3Q

FY17 3Q― Major condominiums delivered in FY2019 ―
Name

Units

Average priceOpen Residencia Showa Fukiage(Nagoya)27¥30million

75.1%Open Residencia Aoi(Nagoya)32¥40million

14.6%

4.1pt

Open Residencia Yanaka(Tokyo)19¥60million

380

390

10

55.2

67.5

12.3

Open Residencia Oimach James Saka
(Tokyo)31¥60million

 The business has steadily grown since the second quarter (Jan.–June), after
a temporary decline in delivery in the first quarter.
 The full-year forecast has been revised upward with the expectation of
better performance than the initial goal.

Revenue (¥billion)
78.5
68.3

FY17 3Q

FY18 3Q

Gross profit (¥billion)

74.8

11.6

FY19 3Q

FY17 3Q

12.8

FY18 3Q

FY2017 3Q FY2018 3Q FY2019 3Q

Operating income (¥billion)

Number delivered

9.6

209

11.7

8.9

FY19 3Q

FY17 3Q

Inc.
(Dec.)

16/10-17/06

17/10-18/06

18/10-19/06

Revenue (¥million)

68,321

78,57274,893(4.7)%

Gross profit (¥million)

11,663

12,813

11,702(8.7)%

Gross profit margin

17.1%

16.3%

15.6%

(0.7)pt

Operating income (¥million)

8,947

9,610

8,217

(14.5)%

Operating income margin

13.1%

12.2%

11.0%

(1.3)pt

Number delivered

158

209

182

(27)

Unit Price(¥million)

422

368

400

32

FY18 3Q

8.2

182

158

FY19 3Q

FY17 3Q

FY18 3Q

FY19 3Q

Breakdown of properties owned (as of the end of June 2019)
By property size*

11

27

Ｎ=129

By useBy location

7

30
21

Ｎ=129 78

39

Ｎ=129

64

19

91
≤¥100 MIL

Condminium>¥100 MIL≤¥500 MIL

Office building>¥500 MIL

Complex building＊Based on book values at the end of June 2019.

Tokyo
Kanagawa
Kansai, Chubu, Kyushu
Other

(U.S. Real Estate Business The business has stayed on an uptrend since the third quarter (April–June)following a fall in delivery due to a seasonal factor in the second quarter (Jan.–
March).
 The full-year forecast has been revised upward as actual operating performanceis likely to outperform the initial goal.
Revenue (¥billion)
9.7

Operating income (¥billion)

Gross profit (¥billion)

18.3

1.5

2.2

FY18 3Q

FY19 3Q

FY17 3Q

FY18 3Q

FY19 3Q

FY2017 3Q FY2018 3Q FY2019 3Q
16/10-17/6

17/10-18/6

18/10-19/6

Inc.
(Dec.)

Revenue (¥million)

597

9,748

18,316

87.9%

Gross profit (¥million)

256

2,255

3,784

67.8%

Gross profit margin

42.9%

23.1%

20.7%

(2.5)pt

(1)

1,570

2,197

627

(0.2)%

16.1%

12.0%

(4.1)pt

－

258

451

193

Operating income (¥million)
Operating income margin
Number delivered*

multi family homes* Figures for U.S. Real Estate Business are shown..

258

(0.1)

0.2

FY17 3Q

451

2.1

3.7

0.5

Number delivered

4

FY17 3Q

FY18 3Q

FY19 3Q

FY17 3Q

FY18 3Q

FY19 3Q

Business model-One-Stop Service
Our service for theadministration of local
properties andsupport for sales.

Selection ofproperties

Administration ofproperties
Support for the wholeprocess fromconclusion of anagreement to the endof a transaction

Purchaseprocess

Offering ofproperties that
our local offices
selected

Funding

Introduction offinancial institutions,and loans from ourGroup company arealso available.

(Million yen)

FY2018 3Q

FY2019 3Q

2017/10-2018/6

2018/10-2019/6

Actual% ofrevenue

SG&A expenses

16,351

6.3%

6.3%

6,615

Personnel expenses

4,367

1.7%

1.8%

2,328

Sales commissions

Office expenses

Advertising expenses

Promotion expenses

Others

2,387
2,026
1,388
905
5,274

0.9%
0.8%
0.5%
0.3%
2.0%

Actual% ofrevenueInc.
(Dec.)

1.0%
0.7%
0.4%
0.3%
1.9%

FY2018 3Q

FY2019 3Q

2017/10-2018/6

2018/10-2019/6

Actual% ofrevenue

Non-operating
income

182

0.1%

0.1%

Non-operating
expenses

1,207

0.5%

0.7% 1,393

Interest expenses

813

0.3%

0.4%

525

Commission fee

48

0.0%

0.2%

716

Foreign exchange loss

206

0.1%

0.0%

(59)

Other

139

0.1%

0.1%

210

Actual% ofrevenueInc.
(Dec.)

138

1,320
587
229
130
2,019

(Million yen)Sep 30,2018

Jun 30,2019

Inc.
(Dec.)

Current assets

377,818

400,810

22,992

Liabilities

279,880

13,511

Cash and deposits

119,053

105,453(13,600)

Current liabilities

182,405(21,471)

Inventories

233,272

265,061

31,789Non-current liabilities

97,47534,983

Others25,49230,295

4,803

Non-current assets

15,50817,863

2,355

Property, plantand equipment

Net Assets

113,486

11,828

5,474

4,864

(610)
Shareholders’ equity

19,711

3,515

3,532

105,798

Intangible assets

17

Investments andother assets

6,517

9,467

2,949

Valuation andtranslation adjustments* 7,688(7,882)

40

33

(7)
Total liabilities and net
assets393,367

25,340

Deferred assets
Total assets

393,367

418,707

25,340

Sep 30,2018

Jun 30,2019

Inc.
(Dec.)*Including Non-controlling interests 6,941 million yen＜Safety index＞
Equity ratio

Sep 30,
2018

27.0%

Jun 30,2019

Inc.
(Dec.)

2.9%

(Million yen)

End of FY2016(Sep 30, 2016)

End of FY2017(Sep 30, 2017)

End of FY2018(Sep 30, 2018)

End of FY2019 3Q(Jun 30, 2019)

Single–family homes related

57,633

61,667

137,991

142,320

53.7%

4,329

Condominiums

20,42240,291

43,32245,591

17.2%

2,268

Property resales

38,83838,87142,87357,232

21.6%

14,358Others

651

4,064

9,084

19,917

7.5%

10,833

Total

117,546

144,894

233,272

265,061

100.0%

31,789

256.6

253.6

265.0

233.2

117.5

(Billion yen)

144.8

160.2

178.1

(Ratio)Inc. (Dec.)

196.0

FY16 4Q
57.6

FY17 4Q
61.6

FY18 1Q
74.9

FY18 2Q
78.9

FY18 3Q
93.7

FY18 4Q
137.9

FY19 1Q
143.3

FY19 2Q
139.8

FY19 3Q
142.3

Condominiums

20.4

40.2

41.8

46.2

48.9

43.3

45.6

45.1

45.5

Property resales

38.8

38.8

37.6

46.1

45.4

42.8

55.7

52.5

57.2

Others

0.6

4.0

5.8

6.8

7.8

9.0

12.0

16.0

19.9

Single–family homes related Performance forecasts have been revised upward, backed by solid growth in recent months.
 Forecast for annual dividend has been revised upward 5 yen to 126 yen per share.
(Million yen)

FY2018FY2018 Initial forecast(2017/10-2018/9)

Actual(2018/10-2019/9)

FY2019 Revised forecast(2018/10-2019/9)

Inc. (Dec.)

Forecast

Inc. (Dec.)

Increasefrom initial
forecast

Forecast

Inc. (Dec.)

Revenue

390,73528.3%

510,000

30.5%

20,000530,000

35.6%

Operating income

47,30425.8%

54,000

14.2%

2,500

56,50019.4%

Ordinary income

46,05227.5%

51,500

11.8%

2,200

53,700

16.6%

Profit attributable toowners of parent

31,80628.3%

37,000

16.3%

1,200

38,20020.1%

EPS (yen)570.17―655.17――678.01―

Annual dividends
per share (yen)

98.00

33.00

121.00

23.00

5.00

126.0028.00

Payout ratio

17.2%

―

18.5%

―

18.6%

―

 Forecasts for revenues at property resales, condominiums and U.S. real estate businesses havebeen revised upward, given steady improvement in their performance.
 Single-family homes related business keeps its original goal for revenue of a 55.6% increaseyear-on-year.
(Million yen)
FY2018FY2019 Initial forecast(2017/10-2018/9)

Actual(2018/10-2019/9)

Inc. (Dec.)

Forecast

FY2019 Revised forecast(2018/10-2019/9)

Inc. (Dec.)

Increasefrom initial
forecast

Forecast

Inc. (Dec.)

Revenue

390,73528.3%

510,000

30.5%

20,000530,000

35.6%

Single-family homes
related business*

218,540

16.3%

340,000

55.6%

0

340,000

55.6%

Condominiums

49,38586.5%

57,000

15.4%

3,500

60,50022.5%

Property resales

107,430

20.7%

87,000(19.0)%

14,500101,500(5.5)%

Others (including U.S.
real estate business)

15,409744.2%

26,000

68.7%

2,000

28,000

81.7%

(31)

―

0

―

0

0

―

Adjustments•* To further strengthen the business model — a comprehensive system from purchase and construction to intermediary and sales— the brokerage business, single-family
homes business, and Open House Architect consolidated to establish a new segment, the single-family homes related business from FY 2018, and Hawk One consolidated
to the segment of single –family homes from FY 2019.

 Repurchased shares amounted to 81.6% of the targeted maximum buybacks as of July 31.
 The Company implemented a stock split to improve liquidity by lowering the minimum trading unit.
 The Company will abolish its benefit program to step up measures focused on the fairness of shareholder return.
Repurchase of treasury shares
Repurchase period

From May 16, 2019 to September 30, 2019

Total number of shares to be repurchased

Repurchased number of shares amounted to 815,500 shares oftargeted maximum of 1,000,000 shares (81.6% achievement).
Repurchased amount stood at 3,727 million yen of targetedmaximum of 5,000 million yen (74.5% achievement).

Total repurchase amount(Share buyback status as of July 31)

Share sprit
Method of the share split

Split at the ratio of 2-for-1 for one common stock

Record date

September 30, 2019

Total number of shares issued

57,602,900 shares as of July 31, 2019 (After the share split :115,205,800 shares )Total number of authorized shares 162,600,000shares ( After the share split :325,200,000 shares)
Shareholder Benefits Program
The program will be abolished after the implementation of the last program* with a record date of Sept. 30, 2019.
＊It is scheduled to be delivered in late December 2019.

Details of benefits

Less than 3 years’ continuous holding

3 or more years’ continuous holding

Benefits when purchasing homes brokeredby the company or sold by the group100,000 yen cash back

300,000 yen cash back

3000-yen card

5000-yen card

Quo Card

Eligible shareholders: Those owning one or more trading units (100 shares) of company stock as recorded on the shareholders’ register as of September 30 of each year
Continued holding represents shareholders who have retained one unit (100 shares) or more of the Company’s common shares for not less than 3 years, with the initial
day of reckoning of September 30, 2016.

 Musashiurawa, Kawaguchi, Kanayama in October, Noborito in November in 2018, and Tenjin in January 2019.
Senkawa, Aratamabashi in April, and Oji, Hodogaya, Motoyawata in July 2019.
Opening of Sales Centers

Sengawa sales center

Sales centers in FY2019＜ Tokyo region＞

Aratamabashi Sales centerNo. of sales centers of each area
15/10-16/9

FY2016

16/10-17/9

17/10-18/9

FY2018As of
2019.8.14

Tokyo

13

16

17

19

Kanagawa Prefecture

5

7

10

12

Aichi Prefecture

―

2

3

5

Saitama Prefecture

―

―

2

4

Chiba Prefecture

―

―

―

1

Fukuoka Prefecture

―

―

―

1

Total

18

25

32

42

FY2017

Aichi Tokyo

FukuokaTenjin＜Fukuoka region＞

GokisoSakae
Motoyama

Kanayama

Aratamabashi＜Nagoya region＞

Refer to Presentation material for the Second Quarter Ended September 30, 2014 (P27) Purchasers of single-family homes supplied by Open House can gain greater benefits from the housing loan tax credit(increase in the maximum amount eligible for tax deduction) than purchasers of homes supplied by other real estatecompanies.
 Open House has a business structure with which demand is little affected by consumption tax hikes.
Outline of property(thousand yen)

Open
House

Single-family home inTokyo’s 23 wards home:
Price:
43,000Land:
30,000
Building: 13,000

Amount ofconsumption
tax

Before the tax hike (5%) ①

650

After the tax hike (8%) ②

1,040

Difference (①-②)▲ 390

Total balance

Amount of tax credit(10-year cumulative
amount)2,000  The maximum amount eligible fortax deduction of 20 mil
yen×1%×10 years
3,745  The above maximum amount wasincreased to 40 million yen,
+ 1,745 resulting in a significant increase in
the amount of tax credit.
＋ 1,355  It will be beneficial to purchase homes
after a tax hike.

＜Reference＞

Power
builderSingle-family home insuburban area

Difference

Price:
25,000Land:
15,000
Building: 10,000

Total balance

Custom-built home
Customhome builder Price:
25,000Land:
0
Building: 25,000

Difference
Total balance

▲ 300

+ 205

▲ 95
▲ 750

 The negative impact of a tax hikewill be large even in terms of 10year cumulative impact.

+ 205

▲ 545

 Purchasing after a tax hike will bemoney-losing.

― Assumptions of the above trial calculations ― Consumption tax will be paid in cash, and the entire purchase price of a property will be covered by a housing loan, without taking other miscellaneous expenses into account.
 Payment method: Monthly principal and interest equal payment for 35 years; 12 times a year with no additional payment; interest rates: (Flat 35) Loan-to-value (LTV) ratio of
90% or less: 1.73%, LTV ratio of more than 90%: 2.17%.
 Assuming that eligibility requirements for maximum tax deduction for a housing loan of 40 million yen (for general housing) applicable from April 1, 2014 are met.
 The trial calculations are conducted by applying general prices for each of the above business categories and do not relate to all properties actually distributed in the market.

＜One of CSR Initiatives: The Group helps to promote sports.＞
 While working as an Open House employee, he aims to become a para-athlete at the 2020 Tokyo
Paralympic games.
The 30th Japan Para Athletic Championship in June 2019
Results:
1st in 100-meter sprint
2nd in long jump

He does hard exercise, while engaging in regular work as an
employee.

Junta Kosuda, a 28-year old employee, engages in regular work in
the Property Resale Business Division, while doing athletic exercise
every day, aiming to become a 2020 Tokyo Paralympic athlete.
He also has many accomplishments in snowboard games and was
appointed as an athlete training for the 2022 Paralympic WinterGames in Beijing. He is a promising candidate for going to thegames.

 Open House became Team Sponsor of the Fukuoka SoftBank HAWKS, a professional baseball team.
 Open House invested in the capital of a company which runs the Gunma Crane Thunders, a professional
basketball team.
The Company will boost the Fukuoka region
together with the Fukuoka SoftBank HAWKS.

The Company concluded a team sponsor contract
with the Fukuoka SoftBank HAWKS based in Fukuoka
City in July 2019. The Open House logo will be put on
the players’ helmets in all regular games held in thelatter half of the 2019 season.
The Company launched single-family homes related,condominiums, and property resales businesses inFukuoka City in 2019, and will work on vitalizing the
Fukuoka region with activities as a team sponsor for
the Fukuoka SoftBank HAWKS.

The Company supports Gunma Crane Thunders’
activities together with local people.

In June 2019, Open House acquired the majority ofshares of Gunma Pro Basketball Commission Co., Ltd.,
which runs the Gunma Crane Thunders, making it asubsidiary* of the Company.
*Non-consolidated subsidiary as an entity that would haveno material impact on the Company

The Company will provide support, together withlocal people, for the Gunma Crane Thunders, whichaims to be promoted from the current B2 League tothe B1 League.

600

590.0

Total revenue

510.0

Others80

Property resales
Condominums

400

Ordinary Income

247.2

179.3

37.0

42.5

112.1

96.9

(¥ billion)

51.5

304.6

Profit attributable to owners of parent

200

61.0

390.7

Single-family homes related

FY2013

FY201460

40

20

FY2015FY2016FY2017FY2018FY2019forecast

FY2020plan

Single-family homes
related

61.1

69.2

116.7

155.0

187.3

218.5

340.0

403.0

Condominiums

27.1

25.7

20.0

19.0

26.4

49.3

57.0

60.0

Property resales

6.9

16.5

41.7

72.8

88.9

107.4

87.0

87.0

Others

1.7

0.6

0.7

0.4

1.8

15.4

26.0

40.0

Total revenue

96.9

112.1

179.3

247.2

304.6

390.7

510.0

590.0

Ordinary income

9.1

12.8

20.2

29.1

36.1

46.0

51.5

61.0

Profit attributable toowners of parent

5.6

7.7

12.6

18.7

24.7

31.8

37.0

42.5

2013.9-2017.9
Revenue
CAGR:33.1%

2017.9-2020.9
Revenue
CAGR:24.6%

0Basic policies
 We strive to become a real estate company that is needed by society by achieving sound operating performance and businessexpansion through the continued offering of products that customers demand.
 We aim to further raise the corporate value by optimizing business portfolios focused on the single-family homes related business.

Initiatives(1) Bolstering of competitiveness of the single-family homes related business as the Company’s mainstay

 Expansion of business development areas (Acceleration of business development into new areas including Aichi and Saitama
prefectures, in addition to existing areas) ⇒ ①Expanded the business area to Fukuoka Prefecture Strengthening of functions for development and construction (Shortening of a project period, reduction of construction costs,
improvement in productivity by leveraging IT, etc.)
 Enhancement of the Group management (Further improvement in a comprehensive system from purchase and construction tointermediary and sales as the Company’s advantage) .) ⇒ ②Expanded market share through acquisition of Hawk One(2) Formation of business portfolios reflecting changes in external environment

 Bolstering of the condominiums business (Development focused on promising compact condominiums located in very convenient urban
centers) ⇒ ③Driven by robust business in the Nagoya area Sustainable growth of property resales business (Retention of customers, development of new property portfolios, etc.)⇒ ④Implement a cautious management approach under conservative plans New business development (Full-fledged operation of the U.S. property investment services for the wealthy class of customers, M&A
enhancement, etc.) ⇒⑤Expansion of the U.S. real estate business(3) Strengthening of the management base to underpin corporate growth Recruitment of resources (proactive investment in people, goods and money, set as the top priority for management)⇒⑥Hired 298 new graduates in April 2019

 Development of human resources for business management (Reinforced fostering of next-generation management group) Innovation on work style and enhancement of diversity (Appropriate management of labor hours, support for child-care and nursingcare, and recruitment of non-Japanese or disabled people, etc.)

Capital policies
Establishment of both capital efficiency and financial soundness

 Maintenance of high capital efficiency (Targeting the level of 30% ROE)
 Maintenance of sound financial strength to assure financial safety (Maintaining the capital adequacy ratio at or above 30%)
 Strengthening of shareholders return (Gradual increase in the dividend payout ratio, targeting the level of 20% for the fiscal year ending
September 30, 2020)

Position of the Single-Family Homes Related Business The Open House Group’s presence in the housing industry improved with the increase in thenumber of single-family homes delivered.
 Cumulative total number of single-family homes sold by the Open House Group has exceeded
60,000 units mainly in Tokyo metropolitan area.
Ranking of single-family home sales

Number of single-family homes delivered(unit）

Rank Company name No. of sales

1

10,00044,76310.6%

17,0004.0%2Company IG
Company TH
Company M
Company P
Company SH

13,294

3.1%

3Company IK

12,4923.0%

4Company SK

9,880

2.3%

5

Company A

9,792

2.3%

6

Company D

9,227

2.2%

7

Company T

8,310

2.0%

8

Company SR

7,864

1.9%

9

Company M

6,885

1.6%

10

Company P

5,747

1.4%

Number of housing starts

422,998

8,000
6,000
4,000
2,000
0

2,874
924

976

FY2013

FY2014FY2015

4,000

4,505

4,956

FY2016FY2017FY2018

7,900

9,300

FY2019FY2020Plan

Plan

Note: Calculated by totaling the results and projections of single-family homes delivered by OpenHouse Development, Open House Architect and Hawk One (after offsetting internal transactions andexcluding the results before conversion to consolidated subsidiaries)

Cumulative total number of single-family homes sold by
the Open House Group: Approx. 60,000 units
Our housing stocks are mainly in the Tokyo metropolitan
area where the number of households is expected toincrease.
Note: Calculated by totaling the results of single-family homes sold by Open House Development,
Open House Architect and Hawk One (after offsetting internal transactions and including the results
before conversion to consolidated subsidiaries)

Ratio

Compiled by the Company based on the most recent financial figures disclosed byeach company (For 2017 (partly for 2016), total of the number of contracts and thenumber of single-family homes sold (partly the number of homes ordered forconstruction))“Building Starts / Housing Starts” by Ministry of Land, Infrastructure, Transport andTourism (Number of newly built houses in 2018 (total of possessed houses andhouses built for sale)) Sustaining high capital efficiency (ROE: 30% level)
 Maintaining strong financial condition to ensure the safety of financial aspects (Equity ratio: 30%
or above)(billion yen)

250

38.4%

Equity ratio

Equity ratio: 30% or above

36.8%
33.7%

200

29.2%
ROE

150

25.2%

29.9%

23.2%

31.1%

33.8%
32.3%

40

33.6%

30.0%
27.0%

* Equity ration that reflect the share exchange
executed on October 1, 2018 : 28.8%

122.9

20

106.1

100

50

(%)

ROE: 30% level

300

82.9

29.9

37.0

47.4

63.7

Equity capital
00FY2013

FY2014FY2015FY2016FY2017FY2018FY2019 1H

FY2020plan

 We plan to gradually increase the dividend payout ratio, targeting 20% in the fiscal year ending
September 30, 2020.
 We will flexibly buy back shares with comprehensive consideration given to financial strength,
business performance, stock prices, etc.
(yen)

200

17.2%
14.5%

13.5%

15.1%

14.7%

Dividends per shares

20¥126.00¥98.0010¥65.008.7%¥12.50(%)(Prior to revision:
121.00)

Payout ratio

100

18.5%

20.0%

¥50.00¥20.00¥30.000

0FY2013

FY2014FY2015FY2016FY2017FY2018FY2019plan

FY2020plan<Assumptions made in calculating indicator per share>
1. The stock splits (1,000-for-one stock split on June 28, 2013 and two-for-one stock split on July 1, 2015) are assumed to have been
executed in the beginning of the fiscal year ended September 30, 2013.
2. Figures in and after the fiscal year ending September 30, 2019 are calculated based on the number of shares (total number of sharesissued – treasury shares) as of September 30, 2018.

Number of units of condominiums delivered

Number of employees(persons)(units)

4000

1500

1000

802
547

500

405

900

1,000

3,000

3000

2,263
2000

487
311

304

FY15

FY16

1,099
1000

0

530

631

FY13

FY14

1,258

2,600

1,522

0
FY13

FY14

FY17

FY18

FY19
plan

FY20
plan

Number of resale properties delivered(properties)

FY15

FY16

FY17

FY18

FY19
plan

FY20
plan

Number of new graduates hired(persons)

400

400

300

289

300

183

200

248
210

209

210

200

108
100

25

47

48

0
FY13

FY14

FY15

FY16

FY17

FY18

FY19
plan

FY20
plan

74

130

131

FY16

FY17

90

0
FY13

FY14

FY15

FY18

FY19
plan

FY20
plan

――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.