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 Second Quarter Ended September 30, 2018 〔Based on Japanese GAAP〕
May 15, 2018
Company name:Open House Co., Ltd.

Stock exchange listings:
Code Number:
URL:
Representative:
Scheduled date of quarterly securities report filing:
Scheduled date of dividends:
Supplementary materials for quarterly financial results:
Quarterly results briefing meeting :Tokyo Stock Exchange, First section
3288http://openhouse-group.com/ir
Masaaki Arai, President and CEO
May 15, 2018
June 12, 2018
Yes
Yes（for institutional investors and analysts, in Japanese)(Million yen, rounded down)

1.

Consolidated Financial Results for the Second Quarter Ended September 30, 2018
(October 1, 2017 to March 31, 2018)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Ordinary income

Six months ended
Million yen%
Million yen%
Million yen%March 31, 2018
169,923
14.5
21,05615.5
20,16913.1
March 31, 2017
148,368
26.6
18,23720.3
17,82921.3(Note) Comprehensive income: Six months ended March 31, 2018
¥ 13,740 million (17.4%)
Six months ended March 31, 2017
¥ 11,705 million (24.1%)
EPS
Six months ended
March 31, 2018
March 31, 2017

Profit attributable toowners of parent
Million yen%

14,017
11,651

20.3
23.6

Diluted EPS
Yen

Yen

251.24207.80249.27206.67(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%March 31, 2018299,893
95,25831.6
September 30, 2017
256,736
83,37932.3(Reference) Shareholders’ equity: As of March 31, 2018
¥ 94,864 million
As 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: Yes

3.

3Q-end

Yen
30.00
46.00

Year-end

Yen

Total―

Yen
35.00

Yen
65.00

―52.0098.00

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

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)
March 31, 2018:57,502,300 shares

September 30, 2017:57,463,600 shares

September 30, 2017:

1,673,194 sharesⅱ) Treasury stock at period-endMarch 31, 2018:

1,673,240 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
March 31, 2018:

55,796,138 shares

March 31, 2017:

56,072,765 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 2Q(as of March 31, 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

98,127
1,014
29,684148,461
8,932
6,249
(173)
292,297

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

3,461
1,201
2,886
7,550

51
256,73646
299,893

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

11,60656,899562
21,196
6,813
2,224
13,308112,610

1,993
88,6411279
1790,743

1,712
90,20313
73
21
92,023

173,357

204,634

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

4,085
5,986
88,103(3,102)
95,072

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

86015(223)

Total accumulated other comprehensive income
Subscription rights to shares

68408(208)394

83,379256,736

95,258299,893

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
OtherTotal current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
Other
Total 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)Six months ended
March 31, 2017
(From October 1, 2016
to March 31, 2017)

Six months ended
March 31, 2018
(From October 1, 2017
to March 31, 2018)Revenue

148,368

169,923

Cost of revenue

121,535

138,196

Gross profit

26,832

31,727

Selling, general and administrative expenses

8,595

10,670Operating income

18,237

21,056

4

11

Dividends income

213

House rent income

2347

Foreign exchange gains

205

―

Other

96

45

Total non-operating income

330

118

Interest expenses

421

529

Commission fee

107

37

Foreign exchange losses

―

355

Other

209

82

Total non-operating expenses

738

1,005

Ordinary income

17,82920,169

Income before income taxes

17,82920,169

Income taxes-current

6,178

6,151

Profit11,651

14,017Profit attributable to owners of parent

11,651

14,017

Non-operating income
Interest income

Non-operating expenses

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)Six months ended
March 31, 2017
(From October 1, 2016
to March 31, 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

Six months ended
March 31, 2018(From October 1, 2017
to March 31, 2018)

11,651

14,017251

6(284)

53(277)

11,705

13,74011,705

13,740Open House Co., Ltd. (3288)

5|3）Consolidated Quarterly Statements of Cash Flows（Millions of yen）

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in net defined benefit liability
Increase (decrease) in provisionInterest and dividend income
Foreign exchange loss (gain)
Interest expense
Decrease (Increase) in notes and accounts receivable-tradeDecrease (Increase) in inventories
Increase (Decrease) in notes and accounts payable-trade
Decrease (Increase) in operating loans
Increase (Decrease) in advances received
Increase (Decrease) in guarantee deposits received
Increase (Decrease) in deposits received
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits

Six months ended
March 31, 2017
(From October 1, 2016
to March 31, 2017)

Six months ended
March 31, 2018
(From October 1, 2017
to March 31, 2018)17,829
173
(16)
065
(6)
(125)
421
(97)
(7,866)727
252
148(840)(871)(1,050)8,743
6(424)(6,067)
2,257

20,169
202
(5)
0111
(24)
165
529
(91)
(33,887)
953(2,875)2,762(50)(2,002)(1,540)(15,581)24(539)(3,774)(19,871)―(2,139)Proceeds from withdrawal of time deposits
Purchase of Purchase of property, plant and equipment
Purchase of intangible fixed assets
Purchase of investment securities

―
(496)
(89)
―

Proceeds from redemption of investment securities

―
(949)

2,139
(306)
(6)
(150)
1,001

Payments of loans receivable from subsidiaries and associates
Payments for investments in capital

―
(100)

Collection of investments in capital
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payableRedemption of bonds
Proceeds from exercise of share options
Purchase of treasury shares
Cash dividend paid
Other―
1(173)
14
41(1,652)
49,324(40,163)
37,481(35,173)(301)
52(1,256)(2,809)(7)59,609(44,565)
43,946(29,880)
(281)
32
(0)
(1,952)―

Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7,147
281
8,034
67,50875,543

26,909(457)
7,217
90,91098,127

Open House Co., Ltd. (3288)

290(117)14116376|4) 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 second 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. Six months ended March 31, 2017 (October 1, 2016 to March 31, 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

90,026

7,713

50,437

191

148,368―

148,368

―

―

8―

8(8)

―

Total

90,026

7,713

50,446

191

148,377(8)

148,368

Segment Income (Loss)

11,289

863

6,495

15

18,663(426)

18,237

Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥(426)million for segment income includes intersegment elimination of ¥0 million and corporate expenses of ¥(426)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.

Ⅱ. Six months ended March 31, 2018 (October 1, 2017 to March 31, 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
Condominiumshomes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal

102,566

11,51350,8894,953

169,923―

169,923――

13―

13(13)―

Total

102,566

11,51350,903

4,953

169,937(13)

169,923

Segment Income (Loss)

13,513

927

6,248

809

21,498(441)

21,056

Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥ (441) million for segment income includes intersegment elimination of ¥15 million and corporate expenses of¥ (457) 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.
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 six months ended September 2017 on a consolidated basis was prepared based on thereportable segments applied for the six months ended September 2018.

Open House Co., Ltd. (3288)

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