FY2016 3Q Topics
Business performance Revenue and operating income for FY2016 3Q set new record highs
Revenue:¥180.4 billion (+48.2% YOY)
Operating income:¥ 22.6 billion (+77.3% YOY)
Profit attributable to owners of parent¥ 13.9 billion (+84.6% YOY) The single-family homes business was steady in performance, in part due to price advantages generated by rising prices
for condominiums.
 Backed by the BOJ’s monetary easing policies, the property resale business posted significant performance growth.
 The condominium business marked strong performance both in sales of properties and acquisition of land in highdemand urban locations.
 Contracts awarded to Asakawa Home Co., Ltd. were strong.

Business expansion
 Launch of urban-type residence business in the Nagoya area .
 We will start brokerage, single-family homes and condominiums businesses in October 2016.

Funds for growth Ten-year unsecured long-term loans payable totaling ¥20 billion were taken out in July2016.
 These borrowings will be used as growth funds for performing flexible operations.
2Open House Co., Ltd.

(Million yen)

FY2015 3Q
Actual[Reference]FY2016 3Q% ofrevenue

Actual% ofrevenue

Revenue

121,733――Gross profit

21,423

17.6%

18.7%

SG&A expenses

8,673

7.1%

6.1%

Operating income

12,749

10.5%

12.5%

Non-operating income

232

0.2%

Non-operating expenses

861

Ordinary income
Profit attributable toowners of parent

YOY%

FY2015

Actual27.8%

12,0150.1%(33.7%)

310

0.7%

0.5%

10.0%

1,315

12,121

10.0%

12.1%

7,571

6.2%

7.7%

 Revenue and income for FY2016 3Q set record highs.
 In addition, FY2016 3Q results surpassed FY2015 full-year results.
4Open House Co., Ltd.

Performance by segment (revenue, operating income) All segments posted an increase in both revenue and operating income.
(Asakawa Home and Others were excluded.) *Segments were revised from FY2016 1Q to reflect growth in business scales.

 The property resale business achieved outstanding growth, while the single-family homes businessstayed on a solid upward trend, and the condominiums business returned to profitability.
FY2015 3Q
ActualRevenue(Million yen)

FY2016 3Q
Ratio

ActualRatio

YOY%

121,733

100.0%

180,434

100.0%

48.2%

Brokerage

5,338

4.4%

6,219

3.4%

16.5%

Single-family homes

67,00255.0%

89,862

49.8%

34.1%

Asakawa Home

14,72012.1%

25,653

14.2%

Condominiums

4,988

4.1%

9,660

5.4%

93.7%

Property resales

32,39426.6%

55,880

31.0%

72.5%

714

0.6%

343

0.2%

(51.9%)(3,424)―(7,185)――

OthersAdjustments

ActualOperating income% of revenue

Actual% of revenue

―

*2

YOY%

12,74910.5%

22,607

12.5%

77.3%

Brokerage

1,861

34.9%

2,180

35.1%

17.1%

Single-family homes

5,6388.4%

9,766

10.9%

73.2%

Asakawa Home

396

2.7%

1,083

4.2%

Condominiums

(72)

―

1,003

10.4%

―

Property resales

4,911

15.2%

8,606

15.4%

75.2%

Others

116

16.4%

108

31.5%

(7.4%)

Adjustments

(102)

―

(140)

―

―

*3

*1 FY2015 3Q results were revised to reflect the restructuring of business segments in FY2016 1Q.
*2 Increase (decrease) in YOY for Asakawa Home is not shown because Asakawa Home was made a consolidated subsidiary in January 2015.
*3 Operating income for Asakawa Home reflects a deduction of amortization of goodwill recorded on the acquisition of Asakawa Home equity.

*2―5Open House Co., Ltd.

 The Nerima Sales Center opened in April 2016, bringing the total number of sales centers toeighteen to expand the brokerage business.
 Numbers brokered in each quarter continued to grow from the previous year.

Revenue (¥million)

Gross profit (¥million)

6,219

3,955

5,338

FY2016 3Q

FY2015 3Q

Number brokered

2,180

FY2016 3Q

FY2015 3Q FY2016 3Q

FY2015 3Q

FY2016 3Q

5,338

6,219

16.5%

Gross profit（¥ million）

3,327

3,955

18.9%

Gross profit margin

62.3%

63.6%

1.3%

Operating income （¥ million）

1,861

2,180

17.1%

Operating income margin

34.9%

35.1%

0.2%

Number brokered

1,675

1,904

229

FY2015 3Q

FY2016 3Q

Number brokered in each quarter and YOY change

Inc.(Dec.)

Revenue （¥ million）

1,904

1,675

1,861

3,327

FY2015 3Q

Operating income(¥million)

402

418

1Q
FY20142Q

503505

505

3Q

4Q

1Q
FY2015568602575

590606

2Q

3Q

4Q

1Q
FY2016

2Q

708

3Q
6Open House Co., Ltd.

 The price advantage due to rising prices of new condominiums has contributed to the steady
performance of single-family homes.
 The number of deliveries of built-for-sale housing substantially increased, attributable to thestrengthening of construction functions through collative work with Asakawa Home, etc.
Revenue (¥million)

Gross profit (¥million)

89,86267,002

Number delivered

Operating income (¥million)

15,904

9,766

10,853

1,341

5,638

FY2015 3Q

FY2016 3Q

By type of sale

FY2015 3Q

FY2016 3Q

FY2015 3Q

FY2015 3Q FY2016 3Q Inc.(Dec.)

Built-for-sale Revenue (¥million)
housesNumber delivered

26,26440,231

53.2%608899

291

Revenue (¥million)

34,00240,912

20.3%

Lands

Number delivered

733

866

133

Revenue (¥million)

6,590

8,548

29.7%

449

554

105

Revenue (¥million)

146

169

16.3％

Revenue (¥million)

67,002

89,862

34.1%

Gross profit (¥million)

10,853

15,90446.5%

Gross profit margin

16.2%

17.7%

1.5％

Operating income (¥million）

5,638

9,766

73.2％

Operating income margin

8.4%

10.9%

2.5%

Number delivered

1,341

1,765

424

Built-toorder houses Number delivered
OthersTotal(built-for-sale houses + lands）

FY2015 3QFY2016 3Q

1,765

FY2016 3Q

Changes in the average price for new condominiums in Tokyo’s 23 wardsof Tokyo and average price for our single-family homes (built-for-sale)
70

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

60

30

67.82

53.39

50
40

(Million yen)

43.32

44.75

45.41
Average price for our single-family homes (built-for-sale)
2011

2012

2013

2014

2015

2016

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: Condominium prices are on a calendar-year basis. Prices for ourhomes are for the period October – September .
* Condominium prices for 2016 are for the January - June period.
Company results shown for 2016 are for October 2015-June 2016.
Open House Co., Ltd.

7 Deliveries on construction contracts have been carried out smoothly as scheduled, and the number of construction
contracts is growing steadily. (Number of contracts for apartment construction: 104 (as of July 31, 2016).)
 Asakawa Home Co., Ltd. is to change its company name to Open House Architect Co., Ltd. in October 2016.
This change is intended to improve people’s recognition of the company as well as to clarify its position as amember of Open House Group companies.
Gross profit (¥million)

Revenue (¥million)

Operating income (¥million)

Number delivered

25,6533,520
14,7202,078

968396FY2015 3Q

FY2016 3Q

FY2015 3Q

FY2016 3Q

FY2015 3Q *1

FY2016 3Q

Revenue （¥ million）

14,72025,653Gross profit (¥ million)

2,078

3,520

Gross profit margin

14.1%

13.7%

Operating income （¥ million） *2

396

1,083

Operating income margin

2.7%

4.2%

968

1,811

Number delivered*3*1 Increase (decrease) in YOY for Asakawa Home is omitted because Asakawa Home wasmade a consolidated subsidiary in January 2015.
*2 Operating income for Asakawa Home reflects a deduction of amortization of goodwill
for Asakawa Home.
*3 Number delivered refers to the number of properties delivered under single-family
homes construction contracts.

1,819

1,083

FY2015 3Q

FY2016 3Q

Number ofall Company contracts

FY2015 3Q

FY20163Q

Number ofOHD contracts included left

2,012
1,767341
Up 13.9%

FY2015 3Q

FY2016 3Q

197

FY2015 3Q

Up 73.1%

FY2016 3Q

Shows total numbers of construction contracts awarded through 3Q (October–June)for each term.
8Open House Co., Ltd.

 Strong demand for condominiums in prime urban locations generated
favorable sales. (Contracts for 300 condominiums scheduled to be delivered by
the end of this fiscal year were already concluded.) We will accelerate the development of condominiums with the leverage of ourGroup’s abundant information on real estate in prime urban areas.
Revenue (¥million)

Gross profit (¥million)

2,186

9,660
4,988

Number delivered

Operating income (¥million)

1,003

145
85987
(72)

FY2015 3Q

FY2015 3Q

FY2016 3Q

FY2016 3Q

FY2015 3Q

FY2015 3Q

FY2016 3Q

Inc. (Dec.)

Revenue （¥ million）

4,988

9,660

93.7%

Gross profit (¥ million)

987

2,186

121.4%

Gross profit margin

19.8%

22.6%

2.8%

Operating income （¥ million）(72)

1,003―

Operating income margin

―

10.4％

―

Number delivered

8514560

FY2016 3Q

FY2015 3Q

FY2016 3Q

Major condominiums delivered in FY2016
NameUnits

Average priceOpen Residencia Nakameguro-Besshozaka

15¥70million

Open Residencia Ebisu The House

25¥90million

Open Residencia Nihonbashi-Mitsukoshimae

19¥50million

Open Residencia Ikejiri-Ohashi

45¥40million
9Open House Co., Ltd.

 On the back of the BOJ’s monetary easing policies, the property resale business is seeing strong demand
for revenue-generating properties and its operating results achieved significant growth.
 We will step up the personnel structure, aiming to become a top independent player in the property
resale business.
Revenue (¥million)

Gross profit (¥million)

55,88011,03732,394FY2015 3Q

6,478

135

4,911

FY2015 3Q

FY2016 3Q

Number delivered

8,606

FY2016 3Q

FY2015 3Q

FY2016 3Q

Inc. (Dec.)

Revenue （¥ million）

32,39455,88072.5%

Gross profit (¥ million)

6,478

11,03770.4%

Gross profit margin

20.0%

19.8%(0.2%)

Operating income （¥ million）

4,911

8,606

75.2%

Operating income margin

15.2%

15.4%

0.2%

7913556

Number delivered

Operating income (¥million)

FY2015 3Q

79

FY2016 3Q

FY2015 3Q

FY2016 3Q

Breakdown of properties owned (as of the end of June 2016)
By property size*

By useBy location

12221435

Ｎ＝10571

Ｎ＝10519≤¥100 MILCondminium>¥100 MIL≤¥500 MIL

Office building>¥500 MIL

Complex building

51

1813

Ｎ＝10560

Tokyo
Kanagawa
Kansai and Chubu area
Other Kanto area, etc.

10(＊Based on book values at the end of June 2016)
Open House Co., Ltd.

(Million yen)

SG&A
expenses

8,673

7.1%

6.1%

Non-operating
income232

0.2％

Personnel
expenses

2,531

2.1%

1.8%

Foreignexchange gain

135

0.1%

Sales
commissions

1,177

1.0%

1.0%

Others

97

0.1%

0.1%

Non-operating
expenses

861

0.7%

0.5%

Interest expenses

678

0.6%

0.3%

Commissions

111

0.1％

0.0%

Generalexpenses
Advertisingexpenses
Promotion
expenses
Others

1,117

0.9%

0.7%

0.1%

――

788

0.6%

0.5%

345

0.3%

0.3%

Foreignexchange loss

――

0.1%

2,713

2.2%

1.8%

Others

71

0.1%

0.1%

Factors contributing to higher SG&A expenses:‐ The percentage of SG&A expenses to revenue declined byensuring the increased ratio of SG&A expenses will
become lower than the increased ratio of revenue.

Factors contributing to lower non-operating expenses:‐ Interest expenses declined due to an improvement in ourcredibility and lower market interest rates in spite of risinginterest-bearing debts.

11Open House Co., Ltd.

(Million yen)

Current assets

156,535

Liabilities

114,837

Cash and cash
equivalents

43,330Current liabilities

67,037

Inventories

102,614Long-term liabilities

47,799Others

10,590

Fixed assets

5,834

Net assets

47,609Tangible fixed
assets2,799

Shareholders’ equity

47,505Intangible fixed
assets1,490

104

Investments andother assets

Other accumulatedcomprehensive income

1,544

Total liabilities and net
assets162,447

Deferred assets
Total assets

76
162,447

 Assets increased mainly due to rising cash and cash equivalents
and investments and other assets, in addition to increased
inventories resulting from forward-looking purchases of land andproperties.

 Liabilities increased due to increasing loans payable and other factors.
 Shareholder equity increased due to various factors, among them theaccumulation of net assets based on the recording of profit
attributable to owners of parent .
12Open House Co., Ltd.

(Million yen)

End of FY2015<A>

End of FY2016 3Q<B>

Inc. (Dec.)<B>-<A>End of FY2013

End of FY2014

21,47635,08046,74147,467

41.9%

725

Asakawa Home－－

7,756

8,522

7.5％

766

Condominiums14,309

13,683

13,101

19,02716.8 %

5,926

Property resales

6,741

14,09034,586

37,663

33.3%

3,077

203

513

428

553

0.5%

124

42,73063,368102,614113,235

100.0%

10,620Single–family homes

Others
Total

87.4

42.7

(Billion yen)

Single –family homes

54.2

56.0

65.9

93.8

102.6(Ratio)

102.1

107.9

113.2

72.2

63.3

FY13 4Q FY14 1Q FY14 2Q FY14 3Q FY14 4Q FY15 1Q FY15 2Q FY15 3Q FY15 4Q FY16 1Q FY16 2Q FY16 3Q
21.4
25.9
30.0
33.5
35.0
37.039.942.4
46.7
45.7
47.8
47.4

Asakawa Home―――Condominiums

14.3

16.3

13.7

16.7

13.6

Property resales

6.7

11.4

11.7

15.1

14.0

―

― 7.8

8.0

7.7

7.8

7.4

8.5

16.0

14.6

16.5

13.1

16.6

18.1

19.0

18.6

24.4

26.3

34.5

31.2

33.9

37.6

―

Open House Co., Ltd.

13

 The full-year performance and dividend forecasts revised in May 2016 will remain unchanged.
 We will strive to set record highs in revenue and operating income for the fourth consecutive year.

(Million yen)

FY2015FY2016

Actual results

Revised forecast

Revenue
Operating income
Ordinary income
Profit attributable to owners of parent
EPS (yen)

Annual dividends per share (yen)Payout ratio

15Open House Co., Ltd.

 Our goal is to achieve continuing revenue growth exceeding 20% in the Brokerage, Single-familyHomes, Asakawa home, and property resales segments.
 Management resources are allocated in accordance with market conditions. The single-family homerelated business represents the central business pillar.
(Million yen)

179,317

245,000

36.6%Brokerage

7,255

9,000

24.0%

Single-family homes

91,644119,000

29.9%

Asakawa Home

23,12236,800*2Condominiums

20,095

18,400(8.4%)

Property resales

41,71971,00070.2%825700(15.2%)(5,344)(9,900)―

Revenue

OthersAdjustments―*1 FY2015 results have been revised to reflect the restructuring of business segments in FY2016.
*2 Increase (decrease) YOY for Asakawa Home is not shown because Asakawa Home was made a consolidated subsidiary in January 2015.
16
Open House Co., Ltd.

 Ordinary income ratio: 10%; ROE: 20%; equity ratio: 30%
 We continue to maintain a course of strategic investment that targets growth while
maintaining a balance between financial soundness and capital efficiency.
(Million yen)

17Open House Co., Ltd.

 We plan to distribute annual dividends of ¥50.00 per share for FY2016 (+¥20.00 YOY) We will continue to provide the shareholder benefits program which was adopted with arecord date of September 30, 2015.
Annual dividends per share
FY2014 Actual

FY2015 Actual

FY2016 Forecast

Annual dividends per share (yen)

20.00

30.00

50.00

Payout ratio

14.5%

13.5%

15.7%

(1) Dividend policy
While recognizing profit distribution to shareholders as a critical management task, we will ensure we maintain stable dividends withconsideration given to future business development and strengthening our financial standing.
(2) Increase in dividends
In May 2016, we revised the forecast for annual dividends to ¥50.00 from ¥40.00 (increased dividends) in conjunction with the upwardrevision of profit attributable to owners of parent.
* Annual dividends per share is calculated by assuming that the common stock split on a one-to-two basis effective July 1, 2015 wasexecuted at the beginning of FY2014.

Shareholder Benefits Program
Details of benefits

Less than 3 years’ continuousholding

3 or more years’continuous holding

Benefits when purchasing homes brokered by thecompany or sold by the group¥100,000 cash back

¥300,000 cash back¥3000-yen card

¥5000-yen card

Quo Card(1) Purposes

To express gratitude for continued shareholder support for the company and to provide shareholders with opportunities to more
broadly understand the group’s businesses(2) Eligible shareholders
Those owning one or more trading units (100 shares) of company stock as recorded on the shareholders’ register as of September 30of each year
Open House Co., Ltd.

18

 We will launch the urban-type residence business including single-family homes and condominiums
businesses in the Nagoya area.
 The scope for the business expansion is set at the group level, including the already operated property
resale business and a tie-up with Asakawa Home.
Rationale for business expansion in the Nagoya area:
Given the stable trend of the current economy and the outlook for future growth including a launch of Linear Chuo Shinkansen
trains, etc., the Nagoya region is expected to have potential for generating strong demand for housing in the central districts.
Newly opened offices:
New offices—the Sakae Sales Center of Open House Co., Ltd., and Nagoya Branch of Open House Development Co., Ltd.—will
start operations in October 2016.
Activities in the Nagoya area:
July 2013: Established Nagoya Branch of Asakawa Home Co., Ltd. and undertook the construction of single-family homes, andother businesses.
October 2015: Opened Nagoya Office of Open House Development Co., Ltd. and launched property resale business.
[Reference: Aichi Prefecture’s economic indicators, etc.]
Ranking

manufacturing workers(thousand people)

Unemployment rate*by area(%)

Increase in thenumber of households
Annual average(thousand people)

Annual income(million yen)

two-income households(thousand household)

1Aichi

913 Tokai

2.6 Tokyo

6.235 Tokyo

60 Tokyo2Tokyo714 Hokuriku

2.7 Kanagawa

5.443 Kanagawa

27 Kanagawa

873

3Osaka653 Kitakanto・Koshinetsu

3.2 Aichi

5.406 Saitama

25 Aichi803

4Kanagawa

479 Chugoku

3.2 Osaka

5.281 Aichi

25 Osaka

789

5Saitama

477 Shikoku

3.2 Chiba

4.877 Chiba

18 Saitama

743WholeJapan

Source

Total

9,188

2014 Economic Census－ Statistics Bureau

Average2015 Labor Force Survey－ Statistics Bureau

3.4

Average

4.8922015 Basic Survey on Wage
Structure － MHLW

Total

291

1,212

Total

12,9702010-2015 Population Census－ 2012 Employment Status Survey－ Statistics Bureau
Statistics Bureau
Open House Co., Ltd.

 Took out 10-year unsecured long-term loans payable totaling ¥20 billion in July 2016 The said funds will be used as growth funds for performing flexible operations.

Overview ofthe long-term loans payable

The syndicate loan payable

The term loan payable

Aggregate amount¥17.9billion¥2.1billion

Borrowing period

Ten years(July 2016-July 2026)

Ten years(July 2016-July 2026)

Arranger and Agent

Sumitomo Mitsui Banking Corporation―

Participating Financial institutions/Lenders

Total of 17 financial institutions including
Sumitomo Mitsui Banking Corporation

Resona Bank, Limited

Features ofthe long-term loans payable

DetailsTerm, condition, repayment method, etc.

10 years, fixed interest rates, lump-sum repayments at maturity

Security

Unsecured

Use of funds

Business funds (entire business)

Open House Co., Ltd.

――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.