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 Third Quarter Ended September 30, 2016〔Based on Japanese GAAP〕
August 12, 2016
Open House Co., Ltd.
Tokyo Stock Exchange, First section
3288
http://openhouse-group.com/ir
Masaaki Arai, President and CEO
August 12, 2016
Yes
No （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 Third Quarter Ended September 30, 2016
（October 1, 2015 to June 30, 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%

Million yen%

FY 2016 3Q
180,43448.2
22,60777.3
21,81480.0
FY 2015 3Q
121,733
67.4
12,74950.2
12,12156.1(Note) Comprehensive income: From October 1, 2015 to June 30, 2016
¥ 13,995 million (84.6%)
From October 1, 2014 to June 30, 2015
¥ 7,580 million (63.6%)

Million yen

13,974
7,571%

84.6
63.7

EPS

Diluted EPS
YenYen
FY 2016 3Q
247.80246.77FY 2015 3Q
132.79―(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
June 30, 2016
September 30, 2015
(Reference) Shareholders’ equity:2.

Net assets

Million yen

176,767
162,447
As of June 30, 2016
As of September 30, 2015

Equity ratio

Million yen%

59,29147,609¥58,970 million yen¥47,453 million yen

33.4
29.2

Dividends

Annual dividends per share (Yen)
2Q-end3Q-endYear-end
0.00
FY 2015―30.00―FY 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

319.191|

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

September 30, 2015:

813,257 sharesⅲ) Average number of shares issued (cumulative consolidated quarterly periods)
June 30, 2016: 56,393,250shares
June 30, 2015:
57,013,568 shares(Note）The company conducted a 2-for-1 stock split of common stock with an effective date of July 1, 2015. Number of shares issued
and outstanding (common stock) calculated assuming the stock split was conducted at the beginning of the previous fiscalyear.

* 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 3Q(June 30, 2016)

AssetsCurrent assets
Cash and cash equivalents

43,33044,800Accounts receivable, trade
Real estate for sale

628
22,235557
30,618

Real estate for sale in process
Operating loans

80,3795,657

82,617
5,530

OtherAllowance for doubtful accounts

4,476
（171）

4,743
（150）

Total current assets

156,535

168,716

Fixed assets
Tangible fixed assets

2,799

2,833

Intangible fixed assets
Investments and other assets

1,490
1,544

1,409
3,742

Total fixed assets

5,834

7,985

7666

162,447

176,767

Deferred assets
Total assets
Liabilities
Current liabilities
Accounts payable

7,775

9,248

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

33,498
7,959

33,24511,600

Current portion of bonds
Income taxes payable

662
5,308

582
3,976

Reserves
Other

1,417
10,415

1,296
11,851

Total current liabilities

67,03771,801Long-term liabilities
Bonds payable

3,137

2,706

Long-term loans payable
Net defined benefit liability

44,27612

42,807
10

Asset retirement obligations
Other

96
277

102
47

Total long-term liabilities
Total liabilities

47,79945,674

114,837

117,475

Open House Co., Ltd. (3288)

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(Million yen)

End of FY 2015
(September 30, 2015)

End of FY 2016 3Q(June 30, 2016)Net assets
Shareholders’ equity
Capital stocks

3,982

3,982

Capital surplus

5,883

5,883

Retained earnings

38,711

50,987

Treasury stock（1,072）（1,852）

Total shareholders’ equity

47,50559,00183

Foreign currency translation adjustment

（60）

（33）

Accumulated other comprehensive income

（51）

（30）

Other comprehensive income
Net unrealized holding gains/losses on securities

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

156

320

47,60959,291

162,447

176,767

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)

3Q ended September 30, 2015
(From October 1, 2014
to June 30, 2015)

3Q ended September 30, 2016
(From October 1, 2015
to June 30, 2016)

Revenue

121,733

180,434

Cost of revenue

100,309146,738

Gross profit

21,42333,695

Selling, general and administrative expenses

8,673

11,087

Operating income

12,74922,607

Non-operating income
Interest income

75Dividends income
Rent income

318238Other202

107

Total non-operating income232154Interest expenses
Commission fee

678
111

593
24

Foreign exchange loss
Other―
71224
104

Total non-operating expenses

861

947

Ordinary income

12,121

21,814

Income before income taxes and minority interests

12,121

21,814

Income taxes-current

4,550

7,840

Income before minority interests

7,571

13,974

Profit attributable to owners of parent

7,571

13,974Non-operating expenses

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 securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners ofparent

3Q ended September 30, 2015
(From October 1, 2014
to June 30, 2015)

3Q ended September 30, 2016
(From October 1, 2015
to June 30, 2016)

7,571

13,974

15(6)

(4)
26921

7,580

13,995

7,580

13,995

Open House Co., Ltd. (3288)

6|3） 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 third quarter, bringing the treasury stock to 1,852 million yen at the end of theconsolidated third quarter.
(Segment and Other Information)
Ⅰ FY2015 3Q (October 1, 2014 to June 30, 2015)
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

2,767

67,002

13,903

4,988

32,394

677

121,733

2,570

―

816

―

―

36

3,424

（3,424）

―

Total

5,338

67,002

14,720

4,988

32,394714

125,157（3,424）

121,733

Segment Income (Loss)

1,861

5,638

396

(72)

4,911

116

12,852（102）12,749

Total

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers―

121,733(Note)
１. Adjustment of -¥102 million for segment income includes intersegment elimination of ¥50 million and corporate
expenses of -¥153million that is not distributed to the reportable segments. Corporate expenses are primarily generaland 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 FY2016 3Q(October 1, 2015 to June 30, 2016)

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

Amount Recorded onAdjustmentsConsolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Brokerage

Singlefamily
Homes

Asakawa
HomeCondo

Property
Resales

Others

3,083

89,862

21,6609,647

55,877

303

180,434

3,135

―

3,993

133

40

7,185

（7,185）

―

Total

6,219

89,86225,6539,660

55,880343

187,620（7,185）

180,434

Segment Income (Loss)

2,180

9,766

1,083

1,003

8,606

108

22,748（140）

22,607

Total

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers―

180,434(Note)
１. Adjustment of -¥140 million for segment income includes intersegment elimination of ¥77 million and corporate
expenses of -¥218 million that is not distributed to the reportable segments. Corporate expenses are primarily generaland 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 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.
“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)

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Segment information for the first nine months of the previous fiscal year on a consolidated basis was prepared basedon the segment category applied for the same period of the fiscal year under review.

(Significant Subsequent Events)（Syndicated loan and term loan）
Aiming to achieve long-term business growth and improve corporate value at the entire group level, our company
concluded contracts for a syndicate loan payable and a term loan payable totaling ¥20 billion effective July 26, 2016.
This will serve as a stable funding means and enable us to flexibly perform corporate actions while responding to achanging business environment. The entire amounts of the borrowings were executed as stated in the contracts
below.
1. Outline of the syndicate loan payable(1) Aggregate amount:(2) Contract date:(3) Borrowing period:(4) Repayment method:(5) Use of funds:(6) Arranger and agent:(7) Participating financial institutions:(8) Financial restraint clause:

2. Outline of the term loan payable(1) Aggregate amount:(2) Contract date:(3) Borrowing period:(4) Repayment method:(5) Use of funds:(6) Security:(7) Lender:(8) Financial restraint clause:¥17.9 billion
July 26, 201610 years from July 29, 2016 to July 31, 2026
Lump-sum repayment at maturity
Business funds
Sumitomo Mitsui Banking Corporation
Total of 17 financial institutions including Sumitomo Mitsui Banking
CorporationThe contract includes a financial restraint clause with criteria set by certain
indicators that are computed based on the consolidated balance sheet,income statements, etc.

¥2.1 billion
July 26, 201610 years from July 28, 2016 to July 28, 2026
Lump-sum repayment at maturity
Business funds
UnsecuredResona Bank, Limited
The contract includes a financial restraint clause with criteria set by certain
indicators that are computed based on the consolidated balance sheet,income statements, etc.

Open House Co., Ltd. (3288)

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