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 Fiscal Year Ended September 30, 2020〔Based on Japanese GAAP〕

November 13, 2020
Open House Co., Ltd.
Tokyo Stock Exchange, First section
3288
https://openhouse-group.co.jp/ir
Masaaki Arai, President and CEO
December 23, 2020
December 24, 2020
December 24, 2020
Yes
Yes （for institutional investors and analysts, in Japanese)

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

1.

Consolidated Financial Results for the fiscal year ended September 30, 2020
(October 1, 2019 to September 30, 2020)(1) Consolidated operating results(% figures indicate year-on-year change)

Revenue
Million yen

Operating income%

Million yen%

Million yen

FY 2020575,951
6.6
62,1297.5
FY 2019
540,376
38.3
57,781
22.1(Note) Comprehensive income: From October 1, 2019 to September 30, 2020
From October 1, 2018 to September 30, 2019
EPS
FY 2020
FY 2019

Diluted EPS
Yen

525.36351.22

Profit attributable toowners of parent

Ordinary income

ROE

Yen

%

%

51.0
23.9

Operating income
MarginROA%

522.37349.11Million yen

77,35740.8
59,491
54,92819.3
39,407¥ 58,840 million (52.7%)¥ 38,540 million (20.1%)

%

32.0
32.3

%

15.2
13.1

10.8
10.7

(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. EPS and Diluted EPS
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets
September 30, 2020
September 30, 2019
(Reference) Shareholders’ equity:

Million yen

Net assets

569,066445,904
As of September 30, 2020:
As of September 30, 2019:

Million yen

Equity ratio

233,723
138,067¥ 233,505 million¥ 137,754 million

Net assets per share
%

41.0
30.9

Yen

1,855.88
1,246.15(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. Net assets per sharecalculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated Cash Flows
Cash flows fromoperating activities
FY 2020
FY 2019

Million yen

48,793
14,344

Cash flows frominvesting activities
Million yen(24,054)(4,800)Cash flows fromfinancing activities
Million yen

59,4307,186

Cash and cash
equivalents at FY end
Million yen

219,218
135,345

Open House Co., Ltd. (3288)

1|

2.

Dividends
Annual dividends per share
1Q-end2Q-end3Q-endYear-end

Total

Yen
―
―
―

Yen
60.00
40.00
44.00

Yen
―
―
―

Yen
66.00
40.00
44.00

Yen
126.0080.00
88.00

FY 2019
FY 2020
FY 2021(Forecast)

Dividend on
Total dividends Payout ratio
equity(Consolidated)(Annual)(Consolidated)
Million yen
7,022
9,459

%
17.9
15.2
22.1

%
5.7
4.9

(Note) FY2019, the actual dividend amounts are shown. However the divided forecast per shares for FY2020 is the amount after the stock
split as the Company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. So, as annual dividend pershare for FY2019 calculated without considering the stock split is ¥63, the dividend forecast for FY 2020 is an increase of 17 yen per sharefrom the previous fiscal year.

3.

Forecast of Consolidated Operating Results for FY2021(October 1, 2020 to September 30, 2021)
Revenue
2Q (Cumulative)
Full year(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

EPS

Million yen%

Million yen%

Million yen%

Million yen%

Yen289,500
634,000

10.5
10.1

31,50069,00016.5
11.1

32,00070,00022.6(9.5)

23,00050,00026.8(16.0)

182.80397.40(Note) The forecast of consolidated operating results for FY2021 is assumed that Pressance Corporation Co., Ltd., is an equity method
affiliate of the Company. Please refer to Japanese “Kessan Tanshin” on page 5, 1 Review of business results (4) the outlook of futures.

*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) 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:Noneⅲ) Changes in accounting estimates:

Noneⅳ) Revisions and restatements:

None(3) Number of shares issued and outstanding (common stock)ⅰ) Number of shares issued at period-end (including treasury shares)
September 30, 2020:

125,819,100 shares

September 30, 2019:

115,237,000 shares

41 shares

September 30, 2019:

4,694,502 shares

113,240,260 shares

September 30, 2019:112,202,231 sharesⅱ) Treasury shares at period-end
September 30, 2020:ⅲ) Average number of shares issued
September 30, 2020:(Note) The Company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. “Number ofshares issued at period-end”, “Treasury shares at period-end”, and “Average number of shares issued” calculated assuming thestock split were conducted at the beginning of the previous fiscal year.

Open House Co., Ltd. (3288)

2|

[Reference] Non-Consolidated Financial Results for the fiscal year ended September 30, 2020
(October 1, 2019 to September 30, 2020)(1) Non-Consolidated Operating Results
Operating revenue
FY 2020
FY 2019

Million yen(% figures indicate year-on-year change)

Operating income%

12,96012,385

4.6
26.9

EPS
FY 2020
FY 2019

Million yen

Ordinary income
%

227
858

(73.4)
147.0

Million yen

Net income%

25,495
15,54564.0
1.2

Million yen%

25,53915,86461.0
4.3

Diluted EPS
Yen

Yen

225.54141.39224.25140.55(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. EPS and Diluted EPS
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Non-Consolidated Financial Position
Total assets
September 30, 2020
September 30, 2019
(Reference) Shareholders’ equity:

Million yen

Net assets

157,755
97,180
As of September 30, 2020:
As of September 30, 2019:

Million yen

96,83534,481¥ 96,617 million¥ 34,168 million

Equity ratio

Net assets per share
%

61.2
35.2

Yen

767.91309.08(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. Net assets per sharecalculated assuming the stock split was conducted at the beginning of the previous fiscal year.

*This summary of financial statements is exempt from audit procedures required by Financial Instruments and Exchange Act.
* Notes regarding forward-looking statements:
Consolidated business forecasts are based on assumptions from information available to management at the time of
disclosure and those deemed to be reasonable.
Actual results may differ significantly from forecast due to various unpredictable reasons.

Open House Co., Ltd. (3288)

3|

Consolidated Financial Statements1）Consolidated Balance Sheets(Million yen)
FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

Cash and cash equivalents

135,354219,227

Trade accounts receivable

498

620

AssetsCurrent assets

Real estate for sale*2

70,457*2

64,372

Real estate for sale in process*2

179,596*2

172,914

Operating loans*228,924*2

37,463

Other

10,167

12,787

Allowance for doubtful accounts

(232)

(262)

424,766

507,123

Total current assets
Fixed asset
Tangible fixed assets
Buildings and structures
Accumulated depreciation

*2

4,077

*3

(1,359)Buildings and structures, net
Land

*2

Other
Accumulated depreciation*3

Other, net
Total tangible fixed assets
Intangible fixed assets

4,430
*3

(1,578)

2,718

2,851

1,845

1,778

1,183

1,258

(755)

*3

(877)

427

381

4,990

5,010

3,456

3,080

Investments and other assets
Investment securities

*1

7,084

*1

47,282

Deferred tax assets

2,475

3,032

Other

3,121

3,529

Allowance for doubtful accounts

(22)

(18)

Total investments and other assets

12,65953,825

21,106

61,917

Bond issuance cost

31

24

Total deferred assets

31

24

445,904

569,066

Total fixed assets
Deferred assets

Total assets

Open House Co., Ltd. (3288)

4|

(Million yen)

FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

Notes payable-trade

4,257

4,831

Trade accounts payable

16,913Liabilities
Current liabilities

Short-term loans payable*2,*4

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

89,933

17,525*2,*4

103,930

*2,*5

8,912

372
*2,*5

12,976242

Income taxes payable

11,461

10,831

Advances received

14,053

15,531

Guarantee deposits received

1,250

1,248

Provision for bonuses

2,404

2,773

Provision for warranties for completed construction
Other
Total current liabilities

932

998

7,793

9,889

162,348

176,713

1,089

847

Long-term liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations*2,*4,*5

143,972326*2,*4,*5

157,347
328

100

105

145,488

158,628

307,837

335,342

Share capital

4,234

19,741

Capital surplus

8,206

28,877Retained earnings

134,629

186,047

Treasury shares(8,806)(0)Total shareholders’ equity

138,263234,66686Foreign currency translation adjustment(517)(1,166)

Accumulated other comprehensive income(508)(1,160)312

217

138,067

233,723445,904

569,066

Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity

Other comprehensive income
Net unrealized holding gains/losses on securities

Share acquisition rights
Total net assets
Total liabilities and net assets

Open House Co., Ltd. (3288)

5|2）Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Million yen)

Revenue
Cost of revenue

FY2019(From October 1, 2018
to September 30, 2019)
540,376*2

450,715*1

31,879Gross profit
Selling, general and administrative expenses
Operating income

FY2020(From October 1, 2019
to September 30, 2020)
575,951*2

481,638*1

32,18389,661

94,312

57,781

62,12968

70

Non-operating income
Interest income
Dividends income

201House rent income

146

148

Gain on sales of investment securities
Share of profit of entities accounted for using
equity method
Other

―

109

176

240

Total non-operating income

412

18,356

Interest expenses

1,817

2,298

Commission fee

871

224

Share issuance cost

―

327

Other

576

278

3,265

3,128

54,92877,357

Gain on sales of non-current assets

772―

Total extraordinary income

772―

Income before income taxes

55,701

77,357

Income taxes-current

16,942

18,421

Income taxes-deferred

(648)

(555)

Total income taxes

16,293

17,865

Net income

39,40759,491

Profit attributable to owners of parent

39,40759,491―*3

17,786

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Open House Co., Ltd. (3288)

6|

Consolidated Statements of Comprehensive Income(Million yen)

FY2019(From October 1, 2018
to September 30, 2019)
Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

FY2020(From October 1, 2019
to September 30, 2020)

39,40759,491

(7)

(1)

(860)

(663)

―

13

(867)
*1,*2

38,540

(651)
*1,*2

58,840(Profit attributable to)Comprehensive income attributable toshareholders’ of the parent

38,54058,840Open House Co., Ltd. (3288)

7|3）Consolidated Statements of Changes in Shareholders' Equity
FY2019 (From October 1, 2018 to September 30, 2019)(Million yen)
Shareholders’ equity
Share capital
Balance at October 1, 2018

Capital surplus

4,094

Retained earnings

Treasury shares

Total shareholders’equity103,324(6,102)

105,798

4,481

Cumulative effects of changes inaccounting policies
Restated balance(1,853)(1,853)

4,094

4,481

101,471(6,102)103,944

104

104

208

35

35

71

Change of items during the period
Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)
Dividends from surplus(6,249)(6,249)Profit attributable to owners ofparent39,40739,407Purchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2019

3,585

(6,411)(6,411)

3,707

7,292

139

3,724

33,158(2,704)34,318

4,234

8,206

134,629(8,806)138,263

Accumulated other comprehensive income

Balance at October 1, 2018

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

15

342

Total accumulated Subscription Non-controllingrights tootherinterests
sharescomprehensive
income
358

388

6,941

Cumulative effects of changes inaccounting policies
Restated balance

Total net
assets

113,486(1,853)

15

342

358

388

6941

111,633

Change of items during the period
Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)

208
71

Dividends from surplus(6,249)Profit attributable to owners ofparent39,407Purchase of treasury shares(6,411)

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2019

7,292
(7)

(860)

(867)

(75)

(6,941)(7,884)

(7)

(860)

(867)

(75)

(6,941)

26,434

8

(517)

(508)

312

―

138,067

Open House Co., Ltd. (3288)

8|

FY2020 (From October 1, 2019 to September 30, 2020)(Million yen)
Shareholders’ equity
Share capital
Balance at October 1, 2019

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity134,629(8,806)138,263

4,234

8,206

15,32915,32930,658

137

137

275

40

40

80

Change of items during the period
Issuance of new shares
Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)
Dividends from surplus(8,074)(8,074)

Profit attributable to owners ofparent59,49159,491

Purchase of treasury shares
Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2020

5,164

(0)

(0)

8,806

13,97015,507

20,671

51,417

8,806

96,402

19,741

28,877

186,047(0)234,666

Accumulated other comprehensive income

Balance at October 1, 2019

Valuationdifference on
available-for-salesecurities

Foreigncurrencytranslation
adjustment

8

(517)

Total accumulated Subscription
rights toothersharescomprehensive
income(508)

312

Total net
assets138,067

Change of items during the period
Issuance of new shares

30,658Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)

275
80

Dividends from surplus(8,074)

Profit attributable to owners ofparent59,491

Purchase of treasury shares(0)

Disposal of treasury shares

13,970Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2020

(2)

(649)

(651)

(94)

(746)

(2)

(649)

(651)

(94)

95,656

6(1,166)(1,160)217

233,723

Open House Co., Ltd. (3288)

9|４）Consolidated Statements of Cash Flows（Millions of yen）

FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Income before income taxes

55,701

77,357

Depreciation and amortization

517

534

Share-based compensation expenses

39

66

Increase (Decrease) in provision for bonuses

442

368

Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in provision for warranties for completed
construction
Increase (Decrease) in net defined benefit liability

64

25

166

66

25

1

―

(109)

―

(17,786)

(89)

(72)

Cash flows from operating activities

Loss (gain) on sales of investment securities
Share of (profit) loss of entities accounted for using equity
methodInterest and dividends income
Foreign exchange loss (gain)

(17)

18

Interest expense

1,817

2,298

653

―

Commission for syndicate loan
Amortization of bond issuance cost

9

6

Share issuance cost―

327

Decrease (increase) in trade receivables

(320)

(264)

(17,456)

12,516

Increase (decrease) in trade payables

1,809

1,186

Decrease (Increase) in operating loans(14,679)(8,539)

Increase (Decrease) in advances received

2,719

1,508

Increase (Decrease) in guarantee deposits received

(22)

6

Increase (Decrease) in deposits received

47

2,200

Decrease (Increase) in inventories

Other

(919)

(156)

Subtotal

30,50871,561

83

70

Interest and dividend income received
Interest expenses paid

(1,782)(2,244)

Income taxes paid

(14,465)(20,593)

Net cash provided by (used in) operating activities

14,344

48,793

Payments into time deposits(9,039)(1,310)

Proceeds from withdrawal of time deposits

9,118

1,310

Purchase of tangible fixed assets

(938)

(617)

Proceeds from sales of tangible fixed assets

1,823

1

Purchase of intangible fixed assets

(185)

(138)

Purchase of investment securities(5,539)(2,010)

510

2,544

Purchase of shares of subsidiaries and associates―(22,973)

Payments for investments in capital(0)―Collection of investments in capital

30

Payments for lease and guarantee deposits

(434)

(582)

Proceeds from collection of lease and guarantee deposits
Other

46
(120)

162
(440)

(4,800)(24,054)

Cash flows from investing activities

Proceeds from sales and redemption of investment securities

Net cash provided by (used in) investing activities

Open House Co., Ltd. (3288)

10 |（Millions of yen）

FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Cash flows from financing activities
Increase in short-term loans payable

169,917295,859

Decrease in short-term loans payable(191,567)(281,860)

Proceeds from long-term loans payable

123,463

134,341

Repayment of long-term loans payable(80,887)(125,029)

Commission for syndicate loan paid

(653)

―

Redemption of bonds

(532)

(372)

―

30,420130

175(6,425)(0)

Proceeds from issuance of common shares
Proceeds from exercise of share options
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash dividend paid
Other
Net cash provided by (used in) financing activities―

13,970(6,249)(8,074)

(9)

―

7,186

59,430Effect of exchange rate changes on cash and cash equivalents

(364)

(296)

Net increase (decrease) in cash and cash equivalents

16,366

83,872

Cash and cash equivalents at beginning of period

118,978

135,345

Cash and cash equivalents at end of period*

135,345*219,218

Open House Co., Ltd. (3288)

11 |(Notes to Consolidated Balance Sheets)*1
The following items are related to unconsolidated subsidiaries and affiliates.
(Million yen)

FY 2019(as of September 30, 2019)
Other in Investments and other assets

FY 2020(as of September 30, 2020)

247

41,088

4,563

5,151

Investment securities(Stocks)
Other in Investments and other assets(Investments in capital)*2

Pledged assets and secured liabilities

Pledged assets are as follows.
(Million yen)

FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

Real estate for sale46,15739,766

Real estate for sale in process

101,836

96,666

6,963

22,928

Buildings and structures

86

―

Land

471

―

155,516

159,361

Operating loans

Total
Secured liabilities are as follows.

(Million yen)

FY 2019(as of September 30, 2019)
Short-term loans payable

FY 2020(as of September 30, 2020)

71,46967,312Current portion of long-term loans payable

8,777

4,954

Long-term loans payable

45,631

63,928125,878

136,195

Total*3

The accumulated amount of impairment loss is included in the amount of accumulated depreciation.
(Million yen)

FY 2019(as of September 30, 2019)
Accumulated impairment loss
*4

FY 2020(as of September 30, 2020)

105

78

4 consolidated subsidiaries (Open House Development Co., Ltd. and IB Net Co., Ltd., Open House Architect Co., Ltd.,

Hawk One Corporation) have current account overdraft and commitment line agreements, the balance of unexecuted loans
as of the end of the fiscal year under review, based on these agreements, is as follows.
(Million yen)

FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

Total loan commitment

144,000

170,880

Outstanding loans

84,21098,618

Balance of unexecuted loans

59,78972,261*5

Financial restraint clause
The Company concluded contracts for a syndicate loan payable and a term loan payable with financial institutions. 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)

12 |(Notes to Consolidated Statements of Income)*1
Selling, general and administrative expenses account includes the following major items and amounts(Million yen)
FY2020(From October 1, 2019
to September 30, 2020)

FY2019(From October 1, 2018
to September 30, 2019)
Directors' compensations

772

837

5,338

5,951

720

946

Provision of allowance for doubtful accounts

8830

Retirement benefit expenses

105

61

Advertising expenses

2,290

2,308

Rents

3,246

3,620

Taxes and dues

4,103

4,170

Sales commission

4,886

4,265

Salaries
Provision for bonuses*2
The balance of inventories as of the end of the period is the amount after the carrying value is been written down, andthe following appraisal losses are included in the cost of revenue.
FY2019FY2020(From October 1, 2018
(From October 1, 2019
to September 30, 2019)
to September 30, 2020)
906
1,532

*3

Share of profit of entities accounted for using equity method
This includes the amount equivalent to the negative goodwill of 13,708 million yen arising from acquiring the sharesof Pressance Corporation Co., Ltd., and having applied the equity method.

Open House Co., Ltd. (3288)

13 |(Notes to Consolidated Statements of Comprehensive Income)*1
The amount of recycling associated with other comprehensive income(Million yen)
FY2020(From October 1, 2019
to September 30, 2020)

FY2019(From October 1, 2018
to September 30, 2019)
Valuation difference on available-for-sale securities:
Amount recognized during the year

(10)

(2)

Amount of recycling

―

―

Total

(10)

(2)

(860)

(663)

Foreign currency translation adjustment:
Amount recognized during the year
Amount of recycling
Total
Share of other comprehensive income of entities
accounted for using equity method
Amount recognized during the year
Total before income tax effect

―

―

(860)

(663)

―

13

(870)

(652)

Amount of income tax effects
Total other comprehensive income

*2

3

0

(867)

(651)

The amount of income tax effects associated with other comprehensive income(Million yen)
FY2020(From October 1, 2019
to September 30, 2020)

FY2019(From October 1, 2018
to September 30, 2019)
Valuation difference on available-for-sale securities:
Before income tax effect10

Amount of income tax effects(3)0After tax effect adjustment

(7)

(1)

(860)

(663)

(2)

Foreign currency translation adjustment:
Before income tax effectAmount of income tax effects
After tax effect adjustment
Share of other comprehensive income of entities
accounted for using equity method
Before income tax effect

―

―

(860)

(663)

―

13

Amount of income tax effects――

After tax effect adjustment

―

13

(870)

(652)

3

0

(867)

(651)

Total other comprehensive income
Before income tax effectAmount of income tax effects
After tax effect adjustment

Open House Co., Ltd. (3288)

14 |(Notes to Consolidated Statements of Cash Flows)* Reconciliation of balance of “cash and cash equivalents at the end of period” and the amounts of items stated in the
consolidated balance sheet is as follows

FY2019(From October 1, 2018
to September 30, 2019)
Cash and deposits(Million yen)
FY2020(From October 1, 2019
to September 30, 2020)

Restricted deposit

135,354(9)219,227(9)Cash and cash equivalents

135,345219,218

Open House Co., Ltd. (3288)

15 |(Segment Information)
1. The reportable segments of the Group comprise those business units for which separate financial information isavailable, and which are subject to a regular review conducted by the Company’s Board of Directors in order todetermine the allocation of management resources and evaluate their performance.
The Group designated four segments: single-family related business, condominiums business, property resale
business and others as reportable segments.
2.

Method for calculating revenue, income/loss, assets, liabilities, and other items for reportable segments
The accounting policies of reportable segments are generally the same as those described in “Basis of Presenting
the Consolidated Financial Statements.”
Segment income is based on operating income.
Intersegment revenue and transfers are based on market price.

3.

Information on revenue, income or loss, and other items by reportable segment
FY2019 (From October 1, 2018 to September 30, 2019)（Million yen）
Amount Recorded on
Adjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single- family
homes related

Condominium Property resale

OthersTotal

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers

340,528

60,956108,353

30,538

540,376―

540,376

―

―

57

―

57

(57)

―

340,528

60,956

108,41030,538

540,433(57)

540,376

32,62010,815

11,487

3,777

58,701(920)

57,781

Depreciation

444

27

8

7

487

29

517

Amortization of
goodwill

402

―

―

―

402

―

402

Total
Segment Income
Other items(NOTE)
１. Adjustment of ¥(920)million for segment income includes intersegment elimination of ¥237million and corporate expenses of¥(1,157) 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 statements of income.
3. Segment assets are not listed as assets are not allocated to reportable segments.
4. Adjustment for depreciation and amortization refers to depreciation expenses related to corporate assets.

Open House Co., Ltd. (3288)

16 |FY2020 (From October 1, 2019 to September 30, 2020)
Reportable Segment
Single- family
homes related

Condominium Property resale

Others

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

Revenue
Revenue from
Outside Customers
Intersegment
revenue and transfers

379,656

58,169112,154

25,970575,951―575,951

―

―

53

56

110

(110)

―

379,656

58,169112,207

26,027576,061(110)

575,951

40,677

9,608

10,4852,314

63,085(956)

62,129Depreciation

433

30

10

15

489

44

534

Amortization of
goodwill

402

―

―

―

402

―

402

Total
Segment Income
Other items(NOTE)
１. Adjustment of ¥ (956) million for segment income includes intersegment elimination of ¥687 million and corporate expenses of¥ (1,644) 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 statements of income.
3. Segment assets are not listed as assets are not allocated to reportable segments.
4. Adjustment for depreciation and amortization refers to depreciation expenses related to corporate assets.

Open House Co., Ltd. (3288)

17 |(Notes on Significant subsequent events)(Execution of Agreement Concerning Amendments, etc. to Capital and Business Alliance Agreement with PressanceCorporation Co., Ltd., Commencement of Tender Offer against Pressance Corporation Co., Ltd. Shares and Subscriptionof Capital Increase through Third-Party Allotment)
The Company resolved at the Board of Directors meeting held on November 13, 2020 ; (i) to acquire the common
stock (the “Target Company’s Stock”) of Pressance Corporation Co., Ltd.(the “Target Company” ) through a tender offer(the “Tender Offer”) under the Financial Instruments and Exchange Act, );and (ii) to execute an agreement (the“Agreement”) with the Target Company to amend etc. the capital and business alliance agreement between t The
Company and the Target Company dated April 6, 2020,; and (ⅲ)to implement the Tender Offer of the Target Company’s
Stock by combining both the Tender Offer and the Capital Increase through Third-Party Allotment.
1. Overview of Tender Offer
1）Purpose of Purchase, Etc.
The Company holds 20,621,100 shares of common stock of the Target Company (shareholding percentage: 31.82%)
which are listed on the First Section of the Tokyo Stock Exchange, Inc., and the Target Company is its equity-method
affiliate. The Company affirmed that ensuring the Target Company’s credit enhancement and stabilization offinancing by making the Target Company a consolidated subsidiary of the Company through the Transaction, andat the same time, deepening the cooperation between both companies while respecting the independence of theTarget Company’s management promote the capital and business alliance between the two companies andcontribute to the enhancement of the corporate value of both companies , so the Company executed theAgreement with the Target Company on November 13, 2020.
2）Outline of Target Company
Name

Pressance Corporation Co., Ltd.

Location

2-27 Shiromi 1-chome, Chuo-ku, Osaka-shi, Osaka

Name and Title of Representative

Yutaka Doi, President and Representative Director

Contents of Business

Planning, development and sales of condominiums for investment andcondominiums for families

Capital4,380 million yen

Date of Incorporation

October 1, 1997

(As of end of September 2020)

3）Period for Purchase, Etc.
From November 16, 2020 (Monday) through January 14, 2021 (Thursday) (38business day4）Price for Purchase, Etc
1,850 yen per share of common stock5）Number of Share Certificates, Etc. to Be Purchased
Number of shares to be purchased:
19,881,500 shares
Minimum number of shares to be purchased:－sharesMaximum number of shares to be purchased:
19,881,500 shares
6）Aggregate Tender Offer Price:
36,780,775,000 yen(Note) The aggregate tender offer price is calculated by multiplying the number of shares intended to bepurchased in the Tender Offer (19,881,500 shares) by the Tender Offer Price per share (1,850 yen).
2. Overview of Capital Increase through Third-Party Allotment
1）Type of offered shares:
Common stock2）Number of offered shares:
3,508,772 shares3）Amount to be paid:
1,425 yen per share4）Total amount to be paid:
5,000,000,100 yen
5）Payment period:
From January 15, 2021 to January 19, 2021
3．Procurement of funds
Funds of the tender offer and the payment for the Capital Increase through Third-Party Allotment will be applied by
own funds.
4.

Possibility of Delisting and Reasons Therefor
As of the date hereof, the Target Company’s Stock are listed on the First Section of the Tokyo Stock Exchange. The
Target Company’ Stock are not intended to be delisted through the Tender Offer, the Company will conduct theTender Offer by setting the maximum number of shares to be purchased at 19,881,500 shares (shareholding
percentage: 30.68%), and the Company’s Shareholding Percentage after Dilution will be 64.42% at the maximum even
if the payment for the Capital Increase through Third-Party Allotment is made and the Tender Offer is completed.
Therefore, the Target Company’s Stock will remain listed on the First Section of the Tokyo Stock Exchange after thecompletion of the Tender Offer.
Open House Co., Ltd. (3288)

18 |Non-Consolidated Financial Statements
Non-Consolidated Balance Sheets(Million yen)
FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

AssetsCurrent assets
Cash and cash equivalents

31,052

72,288Trade accounts receivable

1,308

1,147

Prepaid expense
Short-term loans receivable from subsidiaries
and associates
Income taxes receivable

260

273

19,40013,557

2,996

4,817

Other

1,755

1,650

Total current assets

56,774

93,735

Buildings

1,232

1,347

Vehicles21

11

Tools, furniture and fixtures

228

216

Total tangible fixed assets

1,482

1,575

Software

116

84

Other

2

2

119

86

368

548

36,067

59,120

43

50

1,602

1,733

Fixed asset
Tangible fixed assets

Intangible fixed assets

Total intangible fixed assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term prepaid expenses
Lease and guarantee deposits received
Other

26

32

Allowance for doubtful accounts

(4)

(4)

Deferred tax assets

668

852

38,77362,33440,37563,996

Bond issuance cost

30

24

Total deferred assets

30

24

97,180157,755

Total investments and other assets
Total fixed assets
Deferred assets

Total assets

Open House Co., Ltd. (3288)

19 |(Million yen)
FY 2019(as of September 30, 2019)

FY 2020(as of September 30, 2020)

Liabilities
Current liabilities
Current portion of bonds

242

242

Current portion of long-term loans payable

2,695

2,757

Accounts payable

1,093

743

Accrued expenses

261

358

Advances received

610

901

Deposits received

89

203

Provision for bonuses

894

1,114

Other
Total current liabilities

196

7

6,082

6,328

Long-term liabilities
Bonds payable

1,089

847

Long-term loans payable

55,52753,745

Total long-term liabilities

56,61654,592

62,69960,9204,234

19,741

Legal capital surplus

4,017

19,524

Other capital surplus

5,947

11,111

Total capital surplus

9,965

30,63635

35

28,731

46,19628,767

46,232

Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares(8,806)(0)Total shareholders’ equity

34,16096,610

Valuation difference on available-for-sale securities

8

6

Total valuation and translation adjustments

8

6

312

217

34,481

96,835

97,180157,755

Valuation and translation adjustments

Share acquisition rights
Total net assets
Total liabilities and net assets

Open House Co., Ltd. (3288)

20 |Non-Consolidated Statements of Income(Million yen)
FY2019(From October 1, 2018
to September 30, 2019)

FY2020(From October 1, 2019
to September 30, 2020)

Operating revenue

12,385

12,960Operating cost

6,074

6,988

Gross operating profit

6,311

5,972

Selling, general and administrative expenses

5,453

5,745

858

227

Operating income
Non-operating income
Interest income

257

196

Dividends income

15,02025,500

Guarantee commission received

152

181

Other

313

714

15,743

26,593

Bad debts expenses

6―Interest expenses

612

754

Interest on bonds

7

6

Amortization of bond issuance cost5

5

Share issuance costs－

327

Guarantee commission

137

130

Commission fee

227

5

Other

59

95

1,056

1,325

Ordinary income

15,54525,495

Income before Income taxes

15,54525,495

Income taxes-current

27

138

Income taxes-deferred

(346)

(182)

Total income Taxes

(319)

(44)

Net income

15,86425,539Total non-operating income
Non-operating expenses

Total non-operating expenses

Open House Co., Ltd. (3288)

21 |Non-Consolidated Statements of Changes in Shareholders' Equity
FY2019 (From October 1, 2018 to September 30, 2019)(Million yen)
Shareholders’ equity
Capital surplus
SharecapitalBalance at October 1, 2018

4,094

Retained earnings
Other retained
earnings

Legalcapitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

3,877

2,118

5,996

35

Retained earnings
brought forward

Cumulative effects of changes inaccounting policies
Restated balance

2,118

5,996

35

Total
retainedearnings

21,801

21,837(2,685)(2,685)

19,115

19,151

TreasurysharesTotalshareholders’equity(6,102)25,825(2,685)

4,094

3,877

(6,102)

23,140

104

104

104

208

35

35

35

71

Change of items during the period

Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)
Dividends from surplus(6,249)(6,249)(6,249)Net income

15,864

15,864

15,864Purchase of treasury shares
Increase by share exchanges
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2019

3,829

3,829

(6,411)(6,411)

3,707

7,536

139

139

3,829

3,968

―

9,615

9,615

(2,704)

11,020

4,234

4,017

5,947

9,965

35

28,731

28,767(8,806)34,160

Valuation and translation adjustments

Balance at October 1, 2018

Valuation difference
on available-for-salesecurities

Total valuation andtranslation adjustments

15

15

Subscription rights toshares

388

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

26,229(2,685)

15

15

388

23,544

Change of items during the period

Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)

208
71

Dividends from surplus(6,249)Net income

15,864Purchase of treasury shares(6,411)

Increase by share exchanges

7,536

Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2019

(7)

(7)

(75)

(82)

(7)

(7)

(75)

10,9378

8

31234,481

Open House Co., Ltd. (3288)

22 |FY2020 (From October 1, 2019 to September 30, 2020)(Million yen)
Shareholders’ equity
Capital surplus
SharecapitalBalance at October 1, 2019

Retained earnings
Other retained
earnings

Total
shareholders’equity(8,806)34,160

Other
capitalsurplusTotal
capitalsurplusLegalretainedearnings

4,234

4,017

5,947

9,965

35

15,32915,32915,32930,658

137

137

137

275

40

40

40

80

Retained earnings
brought forward
28,731

Total
retainedearnings

TreasurysharesLegalcapitalsurplus28,767

Change of items during the period

Issuance of new shares
Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)
Dividends from surplus(8,074)(8,074)

Net income

25,53925,539(8,074)25,539Purchase of treasury shares

Disposal of treasury shares
Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2020

5,164

5,164

(0)

(0)

8,806

13,97015,507

15,507

5,164

20,671―

17,465

17,4658,806

62,45019,741

19,524

11,111

30,63635

46,196

46,232(0)96,610

Valuation and translation adjustments

Balance at October 1, 2019

Valuation difference
on available-for-salesecurities

Total valuation andtranslation adjustments

8

8

Subscription rights toshares312

Total net assets

34,481

Change of items during the period

Issuance of new shares

30,658Issuance of new shares (Exerciseof subscription rights to shares)
Issuance of new shares (Issuanceof restricted shares)

275
80

Dividends from surplus(8,074)

Net income

25,539Purchase of treasury shares(0)

Disposal of treasury shares

13,970Net changes of items other thanshareholders’ equity
Total changes of items during theperiodBalance at September 30, 2020

(1)

(1)

(94)

(96)

(1)

(1)

(94)

62,3536

6

217

96,835

Open House Co., Ltd. (3288)

23 |