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 First Quarter Ended September 30, 2019 〔Based on Japanese GAAP〕
February 14, 2019
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
https://openhouse-group.com/irMasaaki Arai, President and CEO
February 14, 2019
YesNo
(Million yen, rounded down)

1.

Consolidated Financial Results for the First Quarter Ended September 30, 2019
(October 1, 2018 to December 31, 2018)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Three months ended
Million yen%
Million yen%
December 31, 2018
105,029
37.4
9,305
(3.4)
December 31, 201776,461
9.0
9,633
11.3
(Note) Comprehensive income: Three months ended December 31, 2018
Three months ended December 31, 2017EPS
Three months ended
December 31, 2018
December 31, 2017

Profit attributable toowners of parent

Ordinary income
Million yen%

Million yen%

8,155
(13.2)
5,742
9,391
7.0
6,517
¥ 5,308 million [ (18.6)％]¥ 6,522 million [ 12.2％](11.9)
13.6

Diluted EPS
Yen

Yen

101.50116.82100.86115.95(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
December 31, 2018
401,266
113,48928.2
September 30, 2018393,367
113,486
27.0(Reference) Shareholders’ equity: As of December 31, 2018¥
113,154 million
As of September 30, 2018¥
106,156 million

2.

Dividends

Annual dividends per share
1Q-end2Q-endYen――FY 2018
FY 2019
FY 2019 (Forecast)(Note) Revision of the latest dividend forecast: No

3.

3Q-endYen
46.00

Year-end

Yen――60.00

Forecast of Consolidated Operating Results for FY2019(October 1, 2018 to September 30, 2019)

TotalYen
52.00

Yen
98.00

61.00

121.00(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

2Q (Cumulative)
225,000 32.4
22,000
4.5
Full year
510,000 30.5
54,00014.2(Note) Revision of the latest consolidated results forecast: No

20,50051,5001.6
11.8

15,00037,000

7.0
16.3

265.12653.96

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:Yesⅲ) 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)
December 31, 2018:57,552,500 shares

September 30, 2018:57,512,500 shares

September 30, 2018:

2,235,080 sharesⅱ) Treasury stock at period-end
December 31, 2018:

1,138,771 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
December 31, 2018:

56,578,444 shares

December 31, 2017 :

55,790,393 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)

AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Real estate for sale
Real estate for sale in process
Operating loans
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Deferred assets
Total assets
Liabilities
Current liabilitiesNotes payable
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
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

End of FY 2018(as of September 30, 2018)

End of FY 2019 1Q(as of December 31, 2018)

119,053
1,291
47,238186,033
14,244
10,127(172)
377,818

100,069
117
64,730191,961
17,613
10,299(170)
384,621

5,474
3,515
6,517
15,50840
393,367

5,745
3,730
7,131
16,60638
401,266

4,557
14,803
111,583532
18,756
9,713
2,72819,730
182,405

4,297
15,502
87,953482
20,4593,165
1,700
19,252
152,812

1,461
95,619300
92
097,475279,880

1,381
133,188306
880134,964
287,777

4,094
4,481
103,324(6,102)
105,798

4,158
8,130
104,339(3,398)113,229

15
342
358
388
6,941
113,486
393,367

12(87)(75)
334―
113,489
401,266

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)Three months endedDecember 31, 2017
(From October 1, 2017
to December 31, 2017)

Three months ended
December 31, 2018
(From October 1, 2018
to December 31, 2018)

Revenue

76,461

105,029

Cost of revenue

61,79988,556Gross profit

14,661

16,473

Selling, general and administrative expenses

5,027

7,167

Operating income

9,633

9,305

016

Non-operating income
Interest income
Dividends income

01

House rent income

2344

Other

2930

Total non-operating income

5393

258

409

Commission fee

1670

Other

36

163

Non-operating expenses
Interest expenses

296

1,243

Ordinary incomeTotal non-operating expenses

9,391

8,155

Income before income taxes

9,391

8,155

Income taxes

2,873

2,412

Profit

6,517

5,742

Profit attributable to owners of parent

6,517

5,742

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)Three months ended
December 31, 2017
(From October 1, 2017
to December 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

Three months ended
December 31, 2018
(From October 1, 2018
to December 31, 2018)

6,517

5,742

12(3)
(430)

4(433)

6,522

5,308

6,522

5,308

Open House Co., Ltd. (3288)

5|3) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(Notes on significant changes in the amount of shareholders’ equity)
The company delivered 1,357,909 shares in treasury stock thorough the share exchange by which the Company
became the sole parent company of Hawk One and Hawk One became the wholly-owned subsidiary of the Company
effective October 1, 2018. As a result, capital surplus increased by ¥3,585 million and treasury stock decreased by¥3,707 million at the end of the current consolidated first quarter,
The Company also bought back shares based on the resolution at the Board of Directors meeting held on November
20, 2018. As a result, treasury stock increased by ¥1,003 million at the end of the current consolidated first quarter.
(Changes in significant subsidiaries during the period)
Not applicable(Changes in Accounting policies)(Application of the Accounting Standard for Revenue Recognition)
As ASBJ Statement No. 29 Accounting Standard for Revenue Recognition (March 30, 2018) (hereinafter referred to as
the "Accounting Standard for Revenue Recognition) and ASBJ Guidance No. 30 Implementation Guidance onAccounting Standard for Revenue Recognition (March 30, 2018) became applicable from the beginning of theconsolidated fiscal year starting on and after April 1, 2018, the Accounting Standard for Revenue Recognition andother related standards have been applied from the beginning of the first quarter under review. And the Company
satisfies a performance obligation and, hence, recognizes revenue when it transfers a promised asset (such as a goodor a service) to the customer.
By the adoption of this accounting policy, the commission recognized when the property purchase agreement has
been formed is recognized as revenue when the property is delivered. The brokerage commission recorded asadvanced received, and it is recognized as contract liability.
As a result, compared with the method used in the previous fiscal year, the introduction of the new method had theeffect of increasing revenue, operating income, ordinary income, and net income before income taxes by ¥8 million
each for the first quarter of the current fiscal year under review. And retained earnings decreased by ¥1,853 million at
the beginning of the period.
At the end of the current consolidated first quarter, operating accounts receivable decreased by ¥1,271 million, andcontract liability which was included in “Other” in “Current Liabilities” increased by ¥927 million.
(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 2019 including the first quarter under review.
(Segment and Other Information)【Segment Information】
Ⅰ. Three months ended December 31, 2017 (October 1, 2017 to December 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

44,341

4,487

25,2852,347

76,461―

76,461

―

―

5―

5(5)

―

Total

44,341

4,487

25,291

2,347

76,466(5)

76,461

Segment Income (Loss)

5,603

121

3,737

389

9,852

(218)

9,633

Open House Co., Ltd. (3288)

6|Intersegment revenueand transfers

(NOTE)
１. Adjustment of ¥(218)million for segment income includes intersegment elimination of ¥5 million and corporate expenses of ¥(224)
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. Three months ended December 31, 2018 (October 1, 2018 to December 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
Condominiums
homes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal

78,995

6,504

13,0296,498

105,029―

105,029――

10―

10(10)―

Total

78,995

6,504

13,0406,498

105,040(10)

105,029

Segment Income (Loss)

7,189

620

915

841

9,567

(261)

9,305

Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥ (261) million for segment income includes intersegment elimination of ¥42 million and corporate expenses of¥ (304) 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.
2. Notes relating to changes in reportable segments etc.
As the Company has applied the Accounting Standard for Revenue Recognition, and changed the methods of accounting
procedures from for Revenue Recognition the first quarter of the current fiscal year, the method of calculating income or loss
by reportable segment has been changed as same.
Compared with prior accounting methods, this application has resulted in a ¥33 million decrease in revenue of Single family
homes related business, a ¥24 million increase in revenue of other, and a ¥33 million decrease in segment profit of Single
family homes related business, a ¥24 million increase in segment profit of other.

(Important Subsequent Events)
The Company resolved at a meeting of its Board of Directors held on January 18, 2019, to issue new shares (the“Issuance of NewShares”) as restricted stock compensation, and completed the payment on February 14, 2019.
1. Outline of the Issuance(1) Payment dateFebruary 14, 2019(2) Class and number of shares to be issued

9,100 shares of common stock of the Company(3) Issue price

4,265 yen per share(4) Total issue price of shares to be issued

38,811,500 yen(5) Allottees

3 Directors, Member of Board (excluding Outside Directors) 9,100 shares(6) OtherIssuance of New Shares to be allotted is conditioned on the securities
registration statement taking effect in accordance with the Financial
Instruments and Exchange Act.

2. Purpose and Reasons for the Issuance
At a meeting of the Board of Directors held on November 14, 2017, the Company has resolved to introduce a restricted stockcompensation plan (hereafter the “Plan”) as a new compensation plan for the Company’s directors (excluding outside directors),
for the purpose of providing further incentive to them to increase the stock price and the corporate value of the Company byfurther sharing the benefits and risks of stock price fluctuations with shareholders. Moreover, at the 21st Ordinary General
Meeting of Shareholders held on December 20, 2017, approval was given for the total amount of monetary compensation
Open House Co., Ltd. (3288)

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claims to be paid as remuneration in connection with the restricted shares to the Company’s directors (excluding outsidedirectors) based on the Plan to be set at no more than 200 million yen per year, and for the maximum amount of the total
number of restricted shares to be allocated to the Company’s directors (excluding outside directors) in each fiscal year to be set
at 70,000 shares. Approval was also given for setting the restricted period for the restricted shares at a period between 3 years
and 5 years.

Open House Co., Ltd. (3288)

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