 Business has been moving forward in line with the full-year forecast.
Revenue:
Operating income:
Profit attributable to owners of parent :Business
performance<FY2019 1Q>¥ 105.0 billion [ 37.4% YOY ]¥ 9.3 billion [ (3.4)% YOY ]¥ 5.7 billion [ (11.9)% YOY ] Single-family homes related business:
Performance was steady including Hawk One with high demand in urban areas.
 Condominium business:
Performance was strong and contract rate for units to be delivered in this fiscal termachieved 85%.
 Property resales business:
Units to be delivered concentrate from January to March in the first half of the fiscal year.
 U.S. Real Estate business:
Demand to purchase U.S. properties remained high among wealthy class of customers.

 Our goal is to achieve record highs both in revenue and income
for the seventh consecutive year.
Revenue:
Ordinary income:
Profit attributable to owners of parent :¥ 510.0 billion [ 30.5% YOY ]¥ 51.5 billion [ 11.8% YOY ]¥ 37.0 billion [ 16.3% YOY ] Performance in single-family homes related, condominiums, and U.S. real estate businesses steadily

expanded.

 Decrease in profit is mainly due to temporary factors and has been taken into consideration in the
full-year forecast since the beginning of the fiscal year.
U.S. real estate, etc.
Operating income
0.4Single-family homes related
Operating income
2.4

Condominiums
Operating income
0.4(Billion yen)

Hawk One
Market value(0.8) *1
Syndicated loanarrangement fee, etc(0.9) *3
Property resales
Operating income(2.8) *2

FY2018 1Q
Ordinary income

FY2019 1Q
Ordinary income

9.3

8.1

*1. Hawk One Market value

When consolidating Hawk One at the end of the previous fiscal year, contracted inventories were valued at market value according to sales value.
Since the amount equivalent to the gain on valuation of such was directly recorded under net assets, it is not recorded under gross profit for the first quarter.

*2 Property resales

Segment income decreased since the number and price per unit of units to be delivered in the first quarter was below the year-on-year performance (as delivery of units
concentrate from January to March in the first half of the fiscal year).

*3 Syndicate loan arrangement fee, etc.
Commission fee *4(0.66)

Interest expenses(0.15)

Foreign exchange loss, etc(0.13)*4 Syndicate loan arrangement fee (December 2018, 37.2 billion yen), etc.

[Assumption] *1 Market value of Hawk One (0.85billion yen) is included in the above “Single-family homes related operating income +2.4”

 Revenue significantly increased due to consolidation of Hawk One Corporation, etc.
 Although profit decreased in the first quarter due to temporary factors, it is moving forward inline with the full-year forecast.
(Million yen)

FY2018 1Q

FY2019 1Q<2017/10-2017/12>

Actual<2018/10-2018/12>% ofrevenue

ActualInc.(Dec.)% ofrevenue

Revenue

76,461－

105,029－

37.4%

Operating income

9,633

12.6%

9,305

8.9%

(3.4)%

Ordinary income

9,391

12.3%

8,155

7.8%

(13.2)%

Profit attributable toowners of parent

6,517

8.5%

5,742

5.5%

(11.9)%

 Revenue and profit in single-family homes related, condominiums, and U.S. real estate businesses
significantly increased.
 Even under an environment in which revenue decreased in property resales, continued growth isseen from utilizing the advantages of portfolio management.
(Million yen)

FY2018 1Q<2017/10-2017/12>

FY2019 1Q<2018/10-2018/12>

ActualActualRatio

Inc.(Dec.)

Ratio

Revenue

76,461100.0%

105,029100.0%

37.4%

Single-family homes related business *44,341

58.0%

78,995

75.2%

78.2%

Condominiums

4,487

5.9%

6,504

6.2%

45.0%

Property resales

25,291

33.1%

13,04012.4%(48.4)%

Others (including U.S. real estate business)

2,347

3.1%

6,498

6.2%

176.9%

(5)

―

(10)

―

Adjustments
Actual% of revenue

Actual% of revenue

Inc.(Dec.)

Operating Income

9,633

12.6%

9,305

8.9%

(3.4)%

Single-family homes related business *

5,603

12.6%

7,189

9.1%

28.3%

Condominiums

121

2.7%

620

9.5%

412.5%

Property resales

3,737

14.8%

915

7.0%

(75.5)%

Others (including U.S. real estate business)

389

16.6%

841

12.9%

115.7%

Adjustments

(218)

―

(261)

―

―

* Earnings of Hawk One are included in the single-family homes related business sector from October–December period of FY2019.

 Revenue significantly increased due to consolidation of Hawk One.
 The number of brokerage transactions has been moving in line with the plan.

Revenue (¥billion)

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)

80

78.9

7.1

6.6
47.1

70

5.6

60

44.3

Average price for new condominiums
in Tokyo’s 23 wards
67.32
53.39

50
40

43.32

(Million yen)

70.89
71.42

66.29
44.77

44.35

42.30

43.48

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

FY17 1Q

FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

FY19 1Q

16/10-16/12

17/10-17/12

18/10-18/12

Inc.
(Dec.)

47,13644,341

78,99578.2%

FY2017 1Q FY2018 1Q FY2019 1Q
Revenue （¥million）
Gross profit（¥million）

30

9,160

8,436

11,84840.4%

Gross profit margin

19.4%

19.0%

15.0%

(4.0)pt

Operating income (¥million）

6,615

5,603

7,189

28.3%

Operating income margin

14.0%

12.6%

9.1%

(3.5)pt

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 2018 are for the January – December period.
Prices of our homes are for the October 2018- December 2018 period.

Number brokered in each quarter and YOY Change
38.8% 39.7%
26.3%

27.5%
16.8%

17.6%

25.8%

26.7%

6.7%

29.8%

21.6%

25.2%
20.0%

606

708

733

742

841

989

929

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

1Q 2Q
FY16

3Q

4Q

1Q 2Q
FY17

3Q

4Q

1Q 2Q
FY18

590

3Q

4Q

1Q
FY19

 Business performance steadily expanded with high demand for single-family
homes in urban areas.
 Gross profit margin declined, but is expected to improve in the second half ofthe fiscal year with greater accuracy in the purchase and sales plan.
Revenue (¥billion)
38.2

47.2
36.7

Gross profit (¥billion)
7.5

Gross profit margin (%)

7.7

19.7

7.1

Number delivered
994

19.3

800

759

FY17 1Q

FY18 1Q

16.5

FY17 1Q

FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

Inc. (Dec.)

18/10-18/12

15,595

11,666

18,599

59.4%

357
43.7
19,437
443

267
43.7
21,147
492

440
42.3
23,547
554

173
(1.4)
11.3%
62

43.9
3,074
202
15.2

43.0
3,780
262
14.4

42.5
4,987
357
14.0

(0.5)
31.9%
95
(0.5)

108
38,215
7,515
19.7%

138
36,733
7,101
19.3%

89
47,223
7,791
16.5%(35.6)%
28.6%

800

759

994

235

Revenue (¥million)
Number delivered
Revenue (¥million)
Number delivered
Revenue (¥million)
Revenue (¥million)

Total

FY2019 1Q

17/10-17/12

FY19 1Q

Number delivered

Unit Price(¥million)

Others

FY19 1Q

Revenue (¥million)

Unit Price(¥million)

Built-to-order houses

FY18 1Q

FY2018 1Q

16/10-16/12

Unit Price(¥million)

Lands

FY17 1Q

FY2017 1Q

By type of sale
Built-for-sale houses

FY19 1Q

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

9.7%(2.8)pt The number of construction contracts for OHD increased, and thiscontributed to the Group’s single-family homes construction capacity.
 Gross profit margin declined as expected, due to an increase in the numberof houses delivered under OHD contracts that do not incur operating
expenses.
Number delivered to OHD

Revenue (¥billion)

9.0

8.0

10.2

273

FY18 1Q

FY19 1Q

FY2017

757

632

36.1%

609

23.2%

FY17 1Q

16.6%

FY18 1Q

FY2018

FY19 1Q

FY17 1Q

16/10-16/12

17/10-17/12

18/10-18/12

FY2019Inc.(Dec.)

Revenue （¥million）

9,093

8,080

10,27727.2%

Gross profit (¥million)

1,265

955

1,127

18.0%

Gross profit margin

13.9%

11.8%

11.0%

(0.9)pt

*1

632
105

609
141

757
273

148
132

Number delivered

Composition ratio of OHD contracts

141

105

FY17 1Q

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 1Q

FY19 1Q

Number of
all Company contracts
866
710

FY17 1Q

FY18 1Q

Number of OHD contracts
included left

951

422

9.8%
up

282

49.6%
up

FY18 1Q

FY19 1Q

145

FY17 1Q

FY18 1Q

FY19 1Q

FY19 1Q

FY17 1Q

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

 Sales of single-family homes business launched in Tokyo metropolitan district and Nagoya
region, quasi-urban areas, are favorable.
 The number of brokerage transactions in regard to Hawk One’s units by Open House also showedsteady increase.
Purposes
１. Expanding share in the Tokyo metropolitan
district and the Nagoya region

Outline of performance
FY2019 1Q (2018/10-12)＊After adjustingfor effects ofmarket value

Revenue (¥million)

23,347Companies can complement each other in regard toareas and price ranges.

Gross profit (¥million)

2,620

3,472

Gross profit margin

11.2%

14.9％

 HAWK ONE: Quasi-urban areas; average price: ¥38 million
 OHD: Urban areas; average price: ¥44 million

Number delivered574

２. Strengthening construction performance byleveraging advantage of scaleGroup-wide supply of single-family homes would amount to7,900 homes per year.
 HAWK ONE: 2,100 homes
 OHD,OHA: 5,800 homes

３. Improving management efficiency byleveraging the brokerage function
Sales of HAWK ONE properties through the Company’s
brokerage
 HAWK ONE: Sales of homes through local brokers
 OPEN HOUSE: Proactive sales of Hawk One properties*including land (18 units), built-to-order houses (17 units)

Number of brokerage*contract basis

82

When consolidating Hawk One at the end of the previous fiscal year, contacted inventories
were valued at market value according to sales value.
Since the amount equivalent to the gain on valuation of such was directly recorded under
net assets and not under gross profit for the first quarter, gross profit was adjusted.

Outline of share acquisition and share exchange
Acquisition cost:
Approx. ¥27.3 billion(shareholding ratio acquired: 100%)(Cash of approx. ¥20 billion + Simplified share exchange worth ¥7.3 billion)
Events:July 31, 2018 : Shares acquired. Share exchange agreement concluded.
Oct 1, 2018 : Conversion to a wholly-owned subsidiary of the Company .
（Effective date of share exchange)
Goodwill:
Balance as of the beginning for the period is ¥2,655 million.
Amortized on a straight-line basis over a 10-year period Sales were strong for compact condominiums, targeting single- andtwo-person households whose occupants prefer living close to work.
 Performance grew with the commencement of delivery of units in
Nagoya City.

Revenue (¥billion)

Gross profit (¥billion)

Number delivered

Operating income (¥billion ）

6.5
1.5

4.4

124

0.6
90

0.8
1.5

FY17 1Q

0.2
FY18 1Q(0.1)

FY17 1Q

FY19 1Q

FY18 1Q

FY19 1Q

FY17 1Q

Inc.
(Dec.)FY2017FY2018FY2019

Revenue (¥million）

1,570

4,487

6,504

45.0%

Gross profit (¥million)

233

842

1,503

78.4%

Gross profit margin

14.9%

18.8%

23.1%

4.3pt

Operating income （¥million）

(184)

121

620

412.5%(11.8)%

2.7%

9.5%

6.8pt

32

90

124

34

49.1

49.9

52.5

2.6

16/10-16/12 17/10-17/12 18/10-18/12

Operating income margin
Number delivered
Unit price（¥million）

32

0.1
FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

FY19 1Q― Major condominiums delivered in FY2019 ―
Name

Units

Average priceOpen Residencia Aoi

32¥40million

Open Residencia Nagoya Sakae est

20¥30million

Open Residencia Sendagi Hills

28¥60million

Open Residencia Daikanyama the House

22¥90million

 The main customers of the property resales business are businesscorporations and the wealthy class of customers, and the impact oftightening loan standards for real estate investment is limited.
 In the first half of FY2019, sales contracts for units to be delivered thatconcentrate in the second quarter (January to March) are favorable.
Revenue (¥billion)

Gross profit (¥billion)

25.2

4.8

21.3

Operating income (¥billion)
3.7

3.2

13.0

2.4

48

1.7

FY17 1Q

FY18 1Q

FY19 1Q

FY2017

FY17 1Q

FY2018

FY18 1Q

FY19 1Q

FY2019Inc.
(Dec.)

17/10-17/12

18/10-18/12

Revenue (¥million)

21,33625,291

13,040(48.4)%

Gross profit (¥million)

3,262

4,811

1,739

(63.9)%

Gross profit margin

15.3%

19.0%

13.3%

(5.7)pt

Operating income (¥million)

2,442

3,737

915

(75.5)%

11.4%

14.8%

7.0%

Number delivered

48

61

52

Unit Price(¥million)

432

407

239

61

52

0.9

16/10-16/12

Operating income margin

Number delivered(7.8)pt(9)

FY17 1Q

FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

FY19 1Q

Breakdown of properties owned (as of the end of December 2018)
By property size*

22

26

Ｎ=152

By useBy location

12

36
24

Ｎ=152 92

39

Ｎ=152 7526

104≤¥100 MIL

Condminium>¥100 MIL≤¥500 MIL

Office building>¥500 MIL

Complex building(168) ＊Based on book values at the end of December 2018.

Tokyo
Kanagawa
Kansai, Chubu, Kyushu area
Other

(U.S. Real Estate Business Demand for purchasing U.S. properties is strong among the wealthy class ofcustomers.
 Without competitors who provide a one-stop service, the businessperformance of the U.S. real estate business improved rapidly.

Revenue (¥billion)

Operating income (¥billion)

Gross profit (¥billion)

Number delivered

6.4

178
1.3

2.3
0.09
FY17 1Q

0.07
FY18 1Q

FY19 1Q

FY17 1Q

0.8

0.5

60

0.3
0

FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

FY19 1Q

FY17 1Q

FY18 1Q

FY19 1Q

Business model-One-Stop Service
FY2017FY2018FY201916/10-16/12 17/10-17/12 18/10-18/12

Inc.
(Dec.)

Revenue (¥million)

95

2,347

6,498

176.9%

Gross profit (¥million)

75

572

1,350

135.8%

78.9%

24.4%

20.8%

(3.6)pt

Operating income (¥million)

0.9

389

841

452

Operating income margin

0.7%

16.6%

12.9%

(3.7)pt

－

60

178

122

Gross profit margin

Number delivered

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 1Q

FY2019 1Q

2017/10-2017/12

2018/10-2018/12

Actual% ofrevenue

SG&A expenses

5,027

6.6%

6.8%

2,140

Personnel expenses

1,310

1.7%

2.0%

774

Sales commissions

Office expenses

Advertising expenses

Promotion expenses

Others

768
667
356
302
1,622

1.0%
0.9%
0.5%
0.4%
2.1%

Actual% ofrevenueInc.
(Dec.)

1.1%
0.8%
0.4%
0.4%
2.2%

FY2018 1Q

FY2019 1Q

2017/10-2017/12

2018/10-2018/12

Actual% ofrevenue

Non-operating
income

53

0.1%

0.1%

30

Non-operating
expenses

296

0.4%

1.2%

947

Interest expenses

258

0.3%

0.4%

151

Commission fee

1

0.0%

0.6%

669

Foreign exchange loss

5

0.0%

0.1%

93

Other

30

0.0%

0.1%

33

Actual% ofrevenueInc.
(Dec.)

339
168
59
76
722

(Million yen)Sep 30,2018

Dec 31,
2018

Current assets

377,818

384,6216,803

Cash and deposits

119,053

100,069(18,984)

Inventories

233,272

256,692

23,419Others25,492

27,8592,367

Non-current assets

15,50816,606

1,098

Property, plantand equipment

5,474

5,745

270

Intangible assets

3,515

3,730

214

Investments andother assets

6,517

7,131

613

40

38

(2)

Deferred assets
Total assets

393,367

401,226

Inc.
(Dec.)

7,899

Sep 30,2018

Dec 31,
2018

Inc.
(Dec.)

Liabilities

279,880

7,896

Current liabilities

182,405(29,592)

Non-current liabilities

97,47537,489Net Assets

113,4862

Shareholders’ equity

105,798

7,431

Valuation andtranslation adjustments

7,688(7,428)

Total liabilities and net
assets393,367

7,899＜Safety index＞
Equity ratio

Sep 30,
2018

27.2%

Dec 31,
2018

Inc.
(Dec.)

1.2%

 Considering the favorable funding environment, short-term loans were switched to stable longterm loans.
 Financial stability will improve by increasing percentage of long-term funds.
Funding of long-term funds (syndicated loan, etc.)

Purpose:
Implementation of measures in response to change
in business environment
Terms:
10-year loan period, fixed interest rate
Time of funding /AmountDecember 2018¥17.5billion

December 2018¥19.7billion

Change in short term loans, long-term loans
and breakdown of change(Billion yen)

The total of short- andlong-term loans and bonds

227.9

Short-term loans

Arranger / Borrower
Use of funds
Sumitomo Mitsui Banking
Corporation, etc. (total of 10
banks)

243.4

Short-term loans

130.8

Refinancing of Hawk One
share acquisition fund (19.7)

Fund for single-family homes
related business
Sumitomo Mitsui Banking
Corporation, Mizuho Bank, Ltd.,MUFG Bank, Ltd.
Fund for Hawk One shareacquisition

108.8

Long-term loan
Long-term loan

Refinancing of Hawk One
share acquisition fund 19.7

Debt ratio

Fund for single-family homes
related business
17.5

97.0

42.6％

Refinance from short-term to long-term fundEnd of FY2018(Sep 30, 2018)

TOTAL

134.5

Debt ratio

55.3％

37.2

End of FY2019 1Q(Dec 31, 2018)

(Million yen)

End of FY2016(Sep 30, 2016)

End of FY2017(Sep 30, 2017)

End of FY2018(Sep 30, 2018)

End of FY2019 1Q(Dec 31, 2018)

Single–family homes related

57,633

61,667

137,991

143,320

55.8%

5,329

Condominiums

20,42240,291

43,32245,659

17.8%

2,336

Property resales

38,83838,87142,87355,707

21.7%

12,833

Others

651

4,064

9,084

12,004

4.7%

2,919

Total

117,546

144,894

233,272

256,692

100.0%

23,419(Ratio)

233.2

117.5

(Billion yen)

144.8

160.2

178.1

Inc. (Dec.)

256.6

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

Condominiums

20.4

40.2

41.8

46.2

48.9

43.3

45.6

Property resales

38.8

38.8

37.6

46.1

45.4

42.8

55.7

Others

0.6

4.0

5.8

6.8

7.8

9.0

12.0

Single–family homes related The Company aims to achieve record highs in revenue and income for seven consecutive fiscal years.
 The Company aims to become one with revenue of 500 billion yen with a business portfolio based
mainly on actual demand.
(Million yen)

FY2017(2016/10-2017/9)

Actual

FY2018FY2019(2017/10-2018/9)

Actual(2018/10-2019/9)

Inc. (Dec.)

Forecast

Inc. (Dec.)

Revenue

304,651

390,73528.3%

510,000

30.5%

Operating income

37,61747,30425.8%

54,00014.2%

Ordinary income

36,13146,05227.5%

51,500

11.8%

Profit attributable to owners of parent

24,79731,80628.3%

37,00016.3%

EPS (yen)443.41570.17―653.96―

Annual dividends per share (yen)

65.00

98.00

33.00

121.0023.00

Payout ratio

14.7%

17.2%

―

18.5%

―

 With the addition of Hawk One, more than 7,000 single-family homes will be delivered by theGroup as a whole.
 The forecast incorporates further growth in the U.S. real estate business.
(Million yen)

FY2017(2016/10-2017/9)

Actual

FY2018FY2019(2017/10-2018/9)

Actual(2018/10-2019/9)

Inc. (Dec.)

Forecast

Inc. (Dec.)

Revenue

304,651

390,73528.3%

510,000

30.5%

Single-family homes related business*

187,949

218,540

16.3%

340,000

55.6%

Condominiums

26,48049,38586.5%

57,00015.4%

Property resales

88,976

107,430

20.7%

87,000(19.0)%

Others (including U.S. real estatebusiness)

1,825

15,409744.2%

26,00068.7%

Adjustments

(580)

(31)

―

0

―

• 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 will be consolidated to establish a new segment, the single-family homes related business.
• Hawk One will be consolidated from FY 2019 as a new subsidiary.

 Sales centers including Musashiurawa, Kawaguchi and Kanayama in October and Noborito in November
2018 were opened.
 Tenjin Sales Center was opened in Chuo-ku, Fukuoka City, Fukuoka Prefecture in January 2019. Total of
37 sales centers are in operation.
Tenjin Sales Center＜ Tokyo region＞＊showroom (adjacent to the sales center)

No. of sales centers of each area
15/10-16/9

FY2016

16/10-17/9

17/10-18/9

FY2018As of
2019.2.14

Tokyo

13

16

17

17

Kanagawa Prefecture

5

7

10

11

Aichi Prefecture

―

2

3

4

Saitama Prefecture

―

―

2

4

Fukuoka Prefecture

―

―

―

1

Total

18

25

32

37

FY2017

FukuokaTenjin＜Fukuoka region＞

Aichi Tokyo

Sakae
Motoyama

GokisoKanayama＜Nagoya region＞

 Business activities in the Fukuoka region, where there is potential for continued high growth, are planned to
be implemented in FY 2019.
 Following the opening of Tenjin Sales Center for single-family homes, sales of condominiums are planned tobe launched from late February.
No. of households and net migration in Fukuoka City

Household income and individual income of residents of Fukuoka City
thousandhouseholds

thousandpeoplethousand yen

Households / Right

15

Net migration / Left

9

7,000

793 800

7

6,406

6,000

6,055

5,000

0

4,000

433
-15

Household income (nation wide)
Individual income (nation wide)
Household income (Kyushu region)
Individual income (Fukuoka city)

8,000

1985

3,449

3,000

1990

1995

2000

2005

2010

2015

2,000

300

Source: “Report on Internal Migration in Japan based on Basic Resident Register” published by the
Ministry of Internal Affairs and Communications

3,324
2000

2005

2010

2015

Source: Annualized based on the actual monthly income of households (working families) with two-or-more personhousehold, obtained from the report "Family Income and Expenditure Survey," the Ministry of Internal Affairs andCommunications. Calculated by diving taxable income by the number of taxpayers, based on data obtained from thereport "Survey of Taxation of Municipal Inhabitant Taxes, etc." by the Ministry of Internal Affairs and Communications<Reference> Social structure of Fukuoka City (in comparison with other ordinance-designated cities)
Ranking

Population growth rate (2010-2015)

Proportion of people in 20-30 age
group (20-30 age group to all age groups)

Population(thousand people）（thousand people）

Ranking of potential-growth cities(general evaluation)

1

Fukuoka

1,539

5.1% Yokohama

3,725 Tokyo Ku-area

28.2% Tokyo Ku-area

2

Tokyo Ku-area

9,273

3.7% Osaka

2,691 Kawasaki

28.0% Fukuoka

3

Kawasaki

1,475

3.5% Nagoya

2,296 Fukuoka

26.9% Kyoto

4

Sendai

1,082

3.5% Sapporo

1,952 Osaka

25.6% Osaka

5

Saitama

1,264

3.4% Fukuoka

1,539 Sendai

24.9% Kagoshima *Not an ordinance-designated city(0.8)% Tokyo Ku-area

9,273 Average

22.0%

Reference Whole nation
Source127,095

2010-2015 Population Census
Statistics Bureau

2015 Population Census
Statistics Bureau

2015 Population Census
Statistics Bureau

Fukuoka city is ranked firstin the Potential Group2017 Potential-growth cities
Nomura Research Institute We purchased treasury stock to enable us to execute a flexible capital policy in response to changes in thebusiness environment.
 We provide a shareholder benefit program to foster an understanding of the Open House Group’s businesses.
Purchase of treasury stock
Purchase period

November 21, 2018 to March 31, 2019

Aggregate number of shares to be purchased

1,000,000 shares (upper limit)

Aggregate value of shares to be purchased¥4,000 million (upper limit)(For reference) Purchase period(1.77% of the total issued shares (excluding treasury stock))

September 11, 2018 to September 20, 2018

Aggregate number of shares purchased

561,800 shares(1.01% of the total issued shares (excluding treasury stock))

Aggregate value of shares purchased¥2,999 million

The Company disposed of 1,357,909 shares of its treasury stock to be appropriated for a share exchange with Hawk One’s
shareholders on October 1, 2018. The number of treasury stock held by the Company as of January 31, 2019 is 1,155,971 shares.

Details of benefits

Less than 3 years’ continuous
holding

3 or more years’continuous holding

Benefits when purchasing homes brokered by thecompany 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, 2015.

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

31.9

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)⇒⑥Planning to hire 300 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）
10,000
8,000
6,000
4,000
2,000
0

2,874
924

976

FY2013

FY2014FY20154,000

FY20164,505

FY20174,956

FY2018

7,900

9,300

Rank Company name No. of sales

Ratio

1

Company IG

44,763

10.6%

2Company 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%

FY2019FY20208Company SR

7,864

1.9%

Plan

Plan

9

Company M

6,885

1.6%

10

Company P

5,747

1.4%

Number of housing starts

422,472

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)

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 the number ofsingle-family homes sold (partly the number of homes ordered for construction))“Building Starts / Housing Starts” by Ministry of Land, Infrastructure, Transport andTourism(Number of newly built houses in 2017 (total of possessed houses and houses built
for sale))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

 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%
27.0%

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

20

106.1

100

50

(%)

ROE: 30% level

300

82.9

29.9

37.0

47.4

63.7

Equity capital
00FY2013

FY2014FY2015FY2016FY2017FY2018FY2019plan

FY2020planCapital policy
 Sustaining high capital efficiency, with equity capital standing at 106.1 billion yen and ROE at
33.6%, while enhancing shareholders’ equity.
 Only four companies in Japan have equity capital exceeding 100 billion yen with ROE of 30%.
ROE Ranking（¥billion)
No.

150

40%

33.6%

Equity Capital
ROE

33.7%

33.8%

30%

29.9%

100

25.2%

23.2%
106.1
82.9

29.9
0

FY2013

FY2014

1

Resource company C

2OPEN HOUSE

3

EquityCapital(¥billion）

ROE

238.6

36.1%

106.1

33.6%

Software company N

131.1

32.8%

4

Construction company D

294.0

31.0%

5

Food company K

957.8

29.5%

6

Semiconductor manufacturer A

147.5

29.2%

7

Semiconductor manufacturer T

767.1

29.0%

8

Construction company H

295.9

27.1%

9

Communications company M

169.8

26.1%

10

Communications company S

5,184.1

23.7%

20%

50

37

Company name

47.4

FY201510%63.7

FY2016FY2017FY20180%

Target: Top 10 listed companies with equity capital exceeding 100 billion yen ranked by
ROE, excluding companies which had seemingly abnormal value, such as those showing
large fluctuations from the previous year.
Assumption: ROE＝Profit attributable to owners of parent/Average equity capital
Source: Compiled by the Company based on the most recent financial figures disclosed
by each company.

 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%

(%)

20

14.7%

¥121.00

Payout ratio

100

Dividends per shares¥98.0010¥65.008.7%¥12.50

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.

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.

――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.