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, 2016〔Based on Japanese GAAP〕
May 13, 2016
Open House Co., Ltd.
Tokyo Stock Exchange, First section
3288
http://openhouse-group.com/ir
Masaaki Arai, President and CEO
May 13, 2016
Yes
Yes （for institutional investors and analysts, in Japanese)

Company name:
Stock exchange listings:
Code Number:
URL:
Representative:
Scheduled date of quarterly securities report filing:
Supplementary materials for quarterly financial results:
Quarterly results briefing meeting :(Million yen, rounded down)

1.

Consolidated Financial Results for the Second Quarter Ended September 30, 2016
（October 1, 2015 to March 31, 2016）(1) Consolidated operating results (Year-to-date)
Revenue(% figures indicate year-on-year change)

Operating income

Million yen%

Million yen

Profit attributable toowners of parent

Ordinary income%

FY 2016 2Q
117,16349.1
15,16077.2
FY 2015 2Q
78,588
42.9
8,557
13.2
(Note) Comprehensive income: From October 1, 2015 to March 31, 2016
From October 1, 2014 to March 31, 2015

Million yen%

14,697
80.7
8,134
15.0
¥ 9,429 million (85.6%)¥ 5,082 million (20.9%)

Million yen

9,424
5,084%

85.4
20.9

EPS

Diluted EPS
YenYenFY 2016 2Q
166.82
166.22
FY 2015 2Q
88.85―(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of July 1, 2015. EPS calculated
assuming the stock split was conducted at the beginning of the previous fiscal year.
(2) Consolidated Financial Position
Total assets
March 31, 2016
September 30, 2015
(Reference) Shareholders’ equity:2.

Net assets

Million yen

173,877
162,447
As of March 31, 2016
As of September 30, 2015

Equity ratio

Million yen%

54,67147,609¥54,404 million yen¥47,453 million yen

31.3
29.2

Dividends

Annual dividends per share (Yen)
2Q-end3Q-endYear-end
0.00
FY 2015―30.00FY 2016
0.00―
FY 2016 (Forecast)
50.00(Note) Revision of the latest dividend forecast: No
1Q-end――3.

Forecast of Consolidated Operating Results for FY2016(October 1, 2015 to September 30, 2016)
Revenue
Full year

Million yen

%

Total
30.0050.00(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen

Million yen

Million yen%

245,000 36.6
29,00036.1(Note) Revision of the latest consolidated results forecast: No

28,000%38.0

18,000%42.4

Open House Co., Ltd. (3288)

EPS
Yen

318.601|

*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:Yesⅱ) 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, 2016: 57,400,000 shares
September 30, 2015: 57,400,000 sharesⅱ) Treasury stock at period-end
March 31, 2016: 1,215,836 shares

September 30, 2015:813,257 sharesⅲ) Average number of shares issued (cumulative consolidated quarterly periods)
March 31, 2016: 56,497,221 shares
March 31, 2015: 57,226,882 shares(Note）The company conducted a 2-for-1 stock split of common stock with an effective date of July 1, 2015. Number of sharesissued and outstanding (common stock) calculated assuming the stock split was conducted at the beginning of the previous
fiscal year.

* Notes regarding forward-looking statements:
Consolidated business forecasts are based on assumptions from information available to management at the time of disclosureand 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 2015
(September 30, 2015)

End of FY 2016 2Q(March 31, 2016)

AssetsCurrent assets
Cash and cash equivalents

43,33047,002

Accounts receivable, trade
Real estate for sale

628
22,235489
22,392

Real estate for sale in process
Operating loans

80,3795,657

85,5995,834

OtherAllowance for doubtful accounts

4,476
（171）

5,048
（148）

Total current assets

156,535

166,218

Fixed assets
Tangible fixed assets

2,799

2,778

Intangible fixed assets
Investments and other assets

1,490
1,544

1,383
3,427

Total fixed assets

5,834

7,589

76

69

162,447

173,877

Deferred assets
Total assets
Liabilities
Current liabilities
Accounts payable

7,775

8,597

Short-term loans payable
Current portion of long-term loans payable

33,498
7,959

34,76314,229

Current portion of bonds
Income taxes payable

662
5,308

602
5,297

Reserves
Other

1,417
10,415

1,534
10,672

Total current liabilities

67,03775,697Long-term liabilities
Bonds payable

3,137

2,836

Long-term loans payable
Net defined benefit liability

44,276
12

40,509
12

Asset retirement obligations
Other96277

96
53

Total long-term liabilities
Total liabilities

47,79943,508114,837

119,205

Open House Co., Ltd. (3288)

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(Million yen)

End of FY 2015
(September 30, 2015)

End of FY 2016 2Q(March 31, 2016)

Net assets
Shareholders’ equity
Capital stocks

3,982

3,982

Capital surplus

5,883

5,883

Retained earnings

38,711

46,438Treasury stock（1,072）（1,852）

Total shareholders’ equity

47,50554,45185

Foreign currency translation adjustment

（60）

（52）

Accumulated other comprehensive income

（51）

（46）

156

266

Other comprehensive income
Net unrealized holding gains/losses on securities

Subscription rights to shares
Total net assets
Total liabilities and net assets

47,60954,671

162,447

173,877

Open House Co., Ltd. (3288)

4|2）Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income(Million yen)

2Q ended September 30, 2015
(From October 1, 2014
to March 31, 2015)

2Q ended September 30, 2016
(From October 1, 2015
to March 31, 2016)

Revenue

78,588117,163

Cost of revenue

64,75894,791Gross profit

13,82922,372

Selling, general and administrative expenses

5,271

7,212

Operating income

8,557

15,160Non-operating income
Interest income

64Dividends income
Insurance income

29127

Other14584

Total non-operating income163

116

Interest expenses
Commission

437
107

401
15

Other42162

Non-operating expenses

587

579

Ordinary income

Total non-operating expenses

8,134

14,697

Income before income taxes and minority interests

8,134

14,697

Income taxes-current

3,049

5,272

Income before minority interests

5,084

9,424

Profit attributable to owners of parent

5,084

9,424

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)

Net income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securitiesForeign currency translation adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent

2Q ended September 30, 2015
(From October 1, 2014
to March 31, 2015)

2Q ended September 30, 2016
(From October 1, 2015
to March 31, 2016)

5,084

9,424

3(5)

(2)
7(2)

5

5,082

9,429

5,082

9,429

Open House Co., Ltd. (3288)

6|3）Consolidated Quarterly Statements of Cash Flows（Millions of yen）

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Stock based compensation expense
Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in net defined benefit liability
Increase (Decrease) in reserves
Interest and dividend income
Interest expense
Loss (Gain) on sales of securities
Decrease (Increase) in notes and accounts receivable-trade
Decrease (Increase) in inventories
Increase (Decrease) in notes and accounts payable-trade
Increase (Decrease) in loans receivable
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from sales of securities
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Purchase of investment securities
Purchase of shares of subsidiaries in consolidation
Payments for purchase of investments in subsidiaries
resulting in change in scope of consolidation
Payments for investments in capital
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
OtherNet cash provided by (used in) investing activitiesCash flows from financing activities
Proceeds from short-term loans payable
Repayment of short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury stock
Cash dividends paid
OtherNet 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

2Q ended September 30,2015 (From October 1,2014 to March 31, 2015)

2Q ended September 30,
2016 (From October 1,2015 to March 31, 2016)

8,134
135
56
(1)
0292
(9)
437
―
210
(15,798)
42(20)(778)(7,297)8(437)(3,731)(11,457)

14,697
186
109(23)0116(5)401(20)137(5,468)
821
(177)
(198)
10,5785(395)(5,292)
4,895

(75)
3,655
――(210)
(42)
―
(100)

(30)
―(163)
184
(138)
(76)
(1,584)―(1,571)

――
(71)
407
0
1,992(300)
(56)
40(0)
(2,124)29,846(25,504)
32,158(14,498)
2,654
(220)
(1,078)(1,148)(19)
22,19053
12,77824,426
37,20430,601(29,335)
26,469(23,966)―(361)(782)(1,697)
(19)
907
(35)
3,642
43,32546,967

Open House Co., Ltd. (3288)

7|4） Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Pursuant to a resolution passed by the Board of Directors at the meeting held February 15, 2016, the Company haspurchased 402,400 shares of treasury stock. This will raise the amount of treasury stock by 780 million yen in thecumulative term of the consolidated second quarter, bringing the treasury stock to 1,852 million yen at the end of
the consolidated second quarter.
(Segment and Other Information)
Ⅰ FY2015 2Q (October 1, 2014 to March 31, 2015)
Information relating to the amounts of revenue, income and loss by reportable segment（Million yen）
Amount Recorded on
Adjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Brokerage

SinglefamilyHomes

AsakawaHome

Condo

Property
Resales

Others

1,756

44,512

6,912

3,926

21,283

196

78,588

1,639－

556－

－

24

2,219（2,219）

－

Total

3,395

44,512

7,468

3,926

21,283220

80,807（2,219）78,588Segment Income (Loss)

1,171

3,841

175

79

3,308

66

8,643

（85）

8,557

Total

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers－

78,588(Note)
１.

2.

Adjustment of -¥85 million for segment income includes intersegment elimination of ¥15 million and corporate
expenses of -¥101million that is not distributed to the reportable segments. Corporate expenses are primarily generaland administrative expenses that do not belong to the reportable segments.
Segment income has been adjusted to operating income described in consolidated quarterly statements of income.
Ⅱ FY2016 2Q(October 1, 2015 to March 31, 2016)

ⅰ Information relating to the amounts of revenue, income and loss by reportable segment（Million yen）
Reportable Segment

Amount Recorded on
Adjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Brokerage

Singlefamily
Homes

Asakawa
HomeCondo

Property
Resales

Others

1,947

59,13215,0132,385

38,478

206

117,163－

117,163

1,932－

2,278

13－

28

4,253

(4,253)

－

Total

3,879

59,132

17,292

2,398

38,478234

121,416(4,253)

117,163

Segment Income (Loss)

1,327

6,988

729

(321)

6,459

74

15,257(97)

15,160Total

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers(Note)
１.

2.

Adjustment of -¥97 million for segment income includes intersegment elimination of ¥45 million and corporate
expenses of -¥142 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.
Segment income has been adjusted to operating income described in consolidated quarterly statements of income.
ⅱ

Changes in reportable segments

Effective from the first quarter for the current fiscal year, the Company has changed reportable segments to ensure
appropriate disclosure of management information. The former Real Estate Sales Business is divided into four
reportable segments: Single-family Homes; Asakawa Home; Condominiums; Property Resales.
Open House Co., Ltd. (3288)

8|

“Others” refers to business segments not included in reportable segments.
As a result, the Group now has the following six reporting segments: Brokerage, Single-Family Homes, Asakawa
Home, Condominiums, Property Resales, and Others.

Open House Co., Ltd. (3288)

9|