For the Fiscal Year Ended September 30, 2022

Annual Financial Summary 2022

Open House Group Co., Ltd.
2-7-2 Marunouchi, Chiyoda-ku, Tokyo(Securities Code: 3288)

Corporate Profile
Open House Co., Ltd. changed its trading name to Open House Group Co., Ltd. (hereinafter the “Company”) on
January 1, 2022. At the same time, it completed an absorption-type company split by separating its business divisions
into another company to become a pure holding company.
The Company and its 41 subsidiaries and associates (39 consolidated subsidiaries and 2 equity method affiliate;
hereinafter collectively with the Company, the “Group”) are engaged in the following businesses:
As the Company falls under the category of “specified Listed Company, etc.,” in the criteria for considering a material
fact to be of minor importance in the insider trading regulations, the numerical criteria provided in correlation to thesize of the listed company are determined based on calculations on a consolidated basis.
(1) Single-family homes related businessIn the single-family homes related business, the Group has established an integrated system from purchase of landand construction to brokerage and sales in order to consistently ensure a stable and efficient supply of affordable
single-family homes in urban areas.
(2) Condominiums businessIn the condominiums business, the Group is engaged in the development and sale of newly-built condominiums. We
develop and offer compact condominiums targeted principally at single- or two-person households, which show ahigh preference for condominiums, in convenient and valuable locations mainly in urban areas in Tokyo metropolitan,
Nagoya and Fukuoka areas.
(3) Property resale businessIn the property resale business, the Group is engaged in the purchase, management and sale of real estate forinvestment. We mainly purchase income-generating real estate properties such as small office buildings and rental
condominiums in Tokyo metropolitan area and, after increasing their asset value through such means as leasing andrenovation, resell them to wealthy individuals and operating companies as real estate for investment.
(4) Others
In others segment, the Group is mainly engaged in the U.S. real estate business, through which we sell U.S. real estate
properties and offer related services, including consulting, property management and financial services, to wealthyclass of customers residing in Japan.
(5) PRESSANCE CORPORATIONPRESSANCE CORPORATION Co., Ltd. (hereinafter “PRESSANCE CORPORATION”) is engaged in the planning,development and sale of studio type condominiums (for rent for single persons for investment) and condominiums
for families (for family use). This segment operates its business mainly in Kansai, Tokai, Kanto, and Okinawa areas.
Note: PRESSANCE CORPORATION is listed on the Standard Market of the Tokyo Stock Exchange.

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I. Summary of Selected Financial Data (Consolidated)
Fiscal year

22nd business 23rd business
term
term

24th businessterm

25th businessterm

26th business
term

Sept. 2019

Sept. 2020

Sept. 2021

Sept. 2022

Sept. 2018Year end
Net sales(Millions of yen)390,735

540,376575,951

810,540

952,686

Ordinary profit(Millions of yen)

46,052

54,92877,357

97,590121,166

Profit attributable toowners of parent(Millions of yen)

31,80639,40759,491

69,582

77,884Comprehensive income(Millions of yen)

32,09638,54058,812

74,483

94,793

Net assets(Millions of yen)

113,486

138,067

233,695

347,143

395,702

Total assets(Millions of yen)

393,367

445,904

569,038

879,913

1,031,174

Net assets per share(Yen)

960.22

1,246.15

1,855.66

2,329.72

2,802.19

Earnings per share (EPS)(Yen)

285.08351.22525.36552.40626.24

Diluted earnings per
share (Diluted EPS)

(Yen)

282.88349.11522.37550.41624.87

Equity ratio

(%)

27.0

30.9

41.0

33.4

32.7

Return on equity (ROE)

(%)

33.6

32.3

32.1

26.4

24.7

(Times)

9.82

7.33

7.23

11.98

7.82

(10,017)

14,344

48,79350,123(16,353)(12,582)(4,800)(24,054)

23,541(4,367)50,696

7,186

59,43040,58824,694

118,978

135,345219,218

334,506

346,080

2,263

2,642

2,876

4,087

4,493

248

240

242

286

351

Price earnings ratio
Net cash provided by(used in) operating
activities
Net cash provided by(used in) investing
activities
Net cash provided by(used in) financing
activities
Cash and cash
equivalents at end of
periodNumber of employees
Average number of
temporary employees(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

(Persons)

1. Starting with the 23rd business term, the Group has applied ASBJ Statement No. 29 “Accounting Standard for Revenue Recognition” and ASBJ
Guidance No. 30 “Implementation Guidance on Accounting Standard for Revenue Recognition.” Accordingly, the figures for the 23rd business term
represent results after applying the said standard.
2. The number of employees represents the number of persons in employment (excluding individuals seconded form the Group (the Company and its
consolidated subsidiaries) to companies outside the Group and including individuals seconded from companies outside the Group to the Group), andthe average number of temporary employees (including temporary employees staffed from staff agencies) for each fiscal year is excluded from thenumber of employees and shown in parentheses. The Group temporarily employs individuals planned to be regularly employed in April to provide
them with training before they formally join the Group. However, they are not included in the average number of temporary employees above.
3.The Company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. Net assets per share, EPS and Diluted EPS
were calculated assuming the stock split was conducted at the beginning of the 21st business term.

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II.CEO Message
Consolidated financial results for the fiscal year ended September 30, 2022
Record high net sales and profit for the tenth consecutive year.
As for the consolidated financial results for the fiscal year ended September 30, 2022, the Group achieved significant
growth with net sales of 952.6 billion yen (up 17.5% year on year) and ordinary profit of 121.1 billion yen (up 24.2%
year on year). The final figure for net sales further exceeded the forecast of 935.0 billion yen, which had been revised
upward from the initial forecast net sales of 920.0 billion yen. In addition to strong performances of owner-occupied
real estate in our core businesses, including the single-family homes and condominiums businesses, investment realestate, including the property resale and U.S. real estate businesses, was also strong, contributing to significant growth.
Despite rising materials prices, sales in the single-family homes and condominiums businesses were strong owing tohigh demand for home purchases in urban areas. In the property resale business, acquisition demand from wealthy
individuals and operating companies with many financial assets remained high due to the continuation of easy
monetary policy. In the U.S. real estate business as well, despite the temporary impact of the sharp fall in the yen,demand increased from operating companies and wealthy individuals aiming to diversify their assets by holding realestate in the United States as dollar-denominated assets. As a result, each segment achieved increases in sales andprofit.
The Company has posted new record high net sales and income for ten fiscal years in a row since listing its shareson the First Section of the Tokyo Stock Exchange in September 2013. In that time, the Company has achieved steady
growth, with net sales increasing 10-fold, operating profit 12-fold, and dividends per share 20-fold.
Initiatives for the fiscal year ending September 30, 2023
We aim to achieve net sales of 1.1 trillion yen
In the fiscal year ending September 30, 2023, the Group aims to achieve net sales of 1.1 trillion yen (up 15.5% year
on year) by further expanding its businesses in all segments.
In the owner-occupied single-family homes related business, we will further strengthen our marketing in the Kansaiarea, where we started marketing in the previous fiscal year, as well as in our existing markets in the Tokyo
metropolitan area and the Nagoya and Fukuoka areas. We will also continue to grow by leveraging our integrated
production and sales structure, which encompasses land procurement, construction, and sales and is the strength of
the Group. In the condominiums business, we will aim to achieve a major increase in net sales over the previous
fiscal year by focusing on condominiums with compact room layouts targeted at single- or two-person households inhighly convenient locations in urban areas.
High demand is expected in the property resale business, which handles real estate for investment purposes, due tothe continuation of the easy monetary policy. In the U.S. real estate business in others segment, we will strengthen
the sales of secondhand single-family homes and other properties in the U.S. to Japanese corporations and wealthy
individuals as pure investment products mainly for diversified asset allocation.

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PRESSANCE CORPORATION will focus on the development and sale of studio type condominiums in the Tokyo
metropolitan area as well as its existing areas including Kansai area, leveraging the ample real estate informationcollected by the Group.
Through the above initiatives, we once again aim to achieve record high net sales and income for the eleventh
consecutive year in the fiscal year ending September 30, 2023.
Shareholder return
Acquisition of treasury shares and dividends
From May 19 to August 1, 2022, the Company acquired treasury shares with a total value of 30.0 billion yen, thelargest share acquisition that the Company has ever undertaken. A total of 5,796,800 shares were acquired, accounting
for 4.81% of the total number of issued shares (excluding treasury shares). All the acquired treasury shares were thencancelled on August 31, 2022. The Company has set forth the flexible acquisition of treasury shares as part of its
capital policy in the Mid-term Business Plan “Ikouze 1 cho, 2023!” - “Jump to 1 trillion, 2023!” and believes that theacquisition and cancellation of treasury shares described above will lead to the enhancement of shareholder value
through the improvement of capital efficiency.
The Company also recognizes the return of profits to shareholders as a key management issue and has adopted a basic
policy of ongoing payments of stable dividends, while taking into account future business development, thestrengthening of the Company’s financial position and other factors. Internal reserves will be put toward the future
expansion of business.
Based on the plan mentioned above, the full-year dividend for the fiscal year ended September 30, 2022 is 129 yen
per share (consisting of an interim dividend of 62 yen per share and a year-end dividend of 67 per share), an increaseof 17 yen per share from the previous fiscal year. The payout ratio increased by 0.3 percentage points from theprevious fiscal year to 20.6%.
Furthermore, the Company plans to pay a full-year dividend for the fiscal year ending September 30, 2023 of 154
yen per share (consisting of an interim dividend of 72 yen per share and a year-end dividend of 82 per share), an
increase of 25 yen per share from the previous fiscal year. The year-end dividend consists of the ordinary dividendof 72 yen and a special dividend of 10 yen to commemorate the tenth anniversary of the Company’s listing on theTokyo Stock Exchange and the achievement of 1 trillion yen in net sales.
The payout ratio increased by 1.0 percentage points from the previous fiscal year to 21.6%.
The Company was founded and commenced the trading and brokerage of newly-built single-family homes in
September 1997, and in September 2022, it marked the 25th anniversary of the Company’s foundation. We extend
our heartfelt appreciation for the support of our shareholders that has enabled us to reach this milestone.
Open House Group will make an all-out effort to achieve further growth. Therefore, we sincerely ask our shareholders
for their continued and further support for the Group.

Masaaki Arai, President & CEO, Open House Group Co., Ltd.

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III. Management’s Analysis and Discussion of Financial Position, Operating Results and Cash Flows(1) Overview of operating results, etc.
The overview of the Group’s financial position and operating results for the fiscal year ended September 30, 2022 is
as follows:(i) Financial position and operating resultsa. Financial position(a) Assets
As of September 30, 2022, the Group posted total assets of 1,031,174 million yen, a year-on-year increase of 151,261
million yen.
This was mainly due to an aggregate increase of 128,976 million yen in real estate for sale and real estate for sale andan increase in cash and deposits of 11,574 million yen.
(b) Liabilities
Total liabilities amounted to 635,472 million yen, a year-on-year increase of 102,703 million yen.
This was mainly due to an aggregate increase of 71,783 million yen in short-term borrowings, long-term borrowings(including current portion of long-term borrowings), and bonds payable an increase in trade accounts payable of
10,370 million yen.
(c) Net assets
Net assets amounted to 395,702 million yen, a year-on-year increase of 48,558 million yen.
This was mainly due to an increase in retained earnings of 42,037 million yen and an increase in foreign currencytranslation adjustment of 10,893 million yen.
b. Operating results
For the fiscal year ended September 30, 2022, the Group posted net sales of 952,686 million yen (up 17.5% year onyear), operating profit of 119,358 million yen (up 18.1 %), ordinary profit of 121,166 million yen (up 24.2%) andprofit attributable to owners of parent of 77,884 million yen (up 11.9%).
The overview of operating results by segment is as follows:5(Single-family homes related business)
In the single-family homes related business, net sales stood at 516,554 million yen (up 15.6% year on year), andoperating profit increased significantly to 63,014 million yen (up 1.2 %).
Strong sales continued, driven by continued demand from customers requiring working place at home under the newlifestyle spreading amid the COVID-19 pandemic, resulting in double-digit growth in net sales. The increase inoperating profit was slower than that of net sales, due to a decline in the profit margin compared with the previous
fiscal year resulting from rising cost of sales caused by the impact of skyrocketing materials prices, among otherfactors.
(a) Brokerage (Open House)
In July 2022, the Company opened Chigasaki Sales Center in Chigasaki-shi, Kanagawa Prefecture and Rokkomichi
Sales Center in Kobe-shi, Hyogo Prefecture. As such, with 66 sales centers in nine prefectures, namely Tokyo,
Kanagawa Prefecture, Aichi Prefecture, Saitama Prefecture, Fukuoka Prefecture, Chiba Prefecture, Osaka Prefecture,
Hyogo Prefecture and Gunma Prefecture, we have striven to strengthen our sales capabilities.
(b) Sale of single-family homes in urban areas (Open House Development)
The Company offers newly-built single-family homes and land subdivision sales in the Tokyo metropolitan area andthe Nagoya, Fukuoka, and Kansai areas. Sales were strong in the fiscal year ended September 30, 2022 on the backof active demand for single-family homes in urban areas.
As a result, net sales stood at 336,497 million yen (up 14.4% year on year).
(c) Sale of single-family homes in quasi-urban areas (HAWK ONE)The Group focuses on the sale of newly built-for-sale houses, especially in quasi-urban areas in the Tokyo
metropolitan area. Sales remained strong driven.
As a result, net sales stood at 125,352 million yen (up 19.0% year on year).
(d) Built-to order house (Open House Architect)
In addition to steady growth in built-to-order houses for built-for-sale housing corporations in the Tokyo metropolitanarea, the number of built-to-order houses entered into by the Group has also grown. As a result, net sales including
intra-group transaction stood at 67,495 million yen (up 16.8% year on year).

6

(Condominiums business)
In the condominiums business, the Group offers newly-built condominiums for sale in urban areas in Tokyo’s
23 wards, Aichi Prefecture and Fukuoka Prefecture.
Amid steady sales, the delivery of properties, which had been concentrated in the fourth quarter of the fiscal
year, was completed according to plan, and financial performance was strong.
As a result, net sales stood at 62,362 million yen (down 33.6% year on year), and operating profit amounted to
10,654 million yen (down 63.7%).

(Property resale business)
In the property resale business, sales were strong even as financial institutions proceeded with the filtering ofinvestors and properties, owing to high demand for properties such as rental condominiums and office buildings
to be purchased for investment purposes by operating companies and wealthy individuals, who are the Group’s
target customers.
As a result, net sales stood at 154,104 million yen (up 25.6% year on year), and operating profit amounted to
17,669 million yen (up 43.8%).

(Others)
In others segment, high investment demand for U.S. real estate for asset diversification purposes contributed tostrong sales.
As a result, net sales stood at 74,330 million yen (up 65.7% year on year), and operating profit amounted to
8,205 million yen (up 56.8%).

(PRESSANCE CORPORATION)PRESSANCE CORPORATION focused on selling condominiums for investment and condominiums forfamilies in good locations in Kinki area (its main sales area), Tokai and Chukyo areas, and the Tokyo
metropolitan area, as well as in the downtown areas of regional hub cities including Okinawa.
As a result, net sales stood at 145,324 million yen (year-on-year change is not presented as this segment has
been newly established in the fiscal year ended September 30, 2021 following the conversion of PRESSANCECORPORATION to a consolidated subsidiary), and operating profit amounted to 20,727 million yen (year-onyear change is not presented for the same reason as above).

7

(ii) Cash flows
Cash and deposits (hereinafter “net cash”) as of September 30, 2022 increased by 11,574 million yen year on year to
346,080 million yen.
(Cash flows from operating activities)
Net cash used in operating activities amounted to 16,353 million yen (compared to net cash provided of 50,123
million yen in the previous fiscal year).
This was mainly due to profit before income taxes of 120,988 million yen and an increase in accounts payable of
13,833, which was more than offset by an increase in inventories of 116,798 million yen and income taxes paid of
36,969 million yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 4,367 million yen (compared to net cash used of 23,541 million yen
in the previous fiscal year).
This was mainly due to an aggregate purchase of property, plant and equipment and investment securities of 6,343
million yen and payments of leasehold and guarantee deposits of 1,934 million yen, which were more than offset byproceeds from collection of loans receivable of 5,166 million yen.
(Cash flows from financing activities)
Net cash provided by financing activities amounted to 24,694 million yen (compared to net cash provided of 40,588
million yen in the previous fiscal year).
This was mainly due to net cash provided of 71,997 million yen from the sum of proceeds from borrowings andrepayments of borrowings, which was more than offset by purchase of treasury shares of 30,000 million yen anddividends paid of 15,648 million yen.

8(2) Results of production, orders received and sales(i) Results of production
As the Group’s production results are approximately the same as the results of sales, for details, refer to “Results ofsales.”(ii) Results of orders received
The status of orders received for built-to order houses during the fiscal year ended September 30, 2022 is as follows:
Orders received(Millions of yen)

YoY change

Single-family homes related business

78,533

PRESSANCE CORPORATION

142,146

Segment

Order backlog(Millions of yen)

YoY change
(%)

4.0

58,57510.8－

90,503

5.9(%)

Notes: 1. The information on segments other than the above is omitted as the nature of services offered through suchsegments is not fit to describe the status of orders received.
(iii) Results of sales
For details of the results of sales, refer to the description of operating results by segment in “(1) Overview of operating
results, etc.”

9(3) Management’s analysis and discussion of operating results, etc.
Management’s recognition, analysis and discussion of the Group’s operating results, etc. are as follows.
Any forward-looking statements in the following discussion are based on the judgment of management as of
September 30, 2022.
(i) Recognition, analysis and discussion of financial position and operating results
a. Recognition, analysis and discussion of operating results, etc.
During the fiscal year ended September 30, 2022, the Japanese economy showed signs of recovery in personal
consumption, capital expenditures, and the employment situation, amid rising corporate and consumer price indexes
against a background of the sharp depreciation of the yen and the worldwide sharp rise in commodity prices. Further,even while construction costs are rising due to skyrocketing timber prices, housing demand remains high, and housing
construction remains firm. In addition, although some weakness can be seen among small and medium-sizedenterprises, corporate earnings appear to be recovering on the whole, and economic conditions are picking up slowly.
In the real estate industry, in which the Group operates, the national average standard land prices of both commercial
and residential areas turned upward in the land price survey conducted in 2022. This was in response to the recovery
of demand for housing, stores, and other properties as economic activity returned to normal after being weakened by
the impact of the COVID-19 pandemic. In residential areas, there was strong housing demand in urban centers andareas providing convenient lifestyles. In commercial areas as well, the recovery was due to factors such as strong
demand for stores and offices, owing to a recovery in personal consumption.
Under such business environment, the Group worked to achieve the management targets set by the Mid-term Business
Plan “Ikouze 1 cho, 2023!” - “Jump to 1 trillion, 2023!” (from the fiscal year ended September 30, 2021 to the fiscal
year ending September 30, 2023). In the fiscal year ended September 30, 2022, in addition to strong performances ofowner-occupied real estate in our core single-family homes related business and condominiums business, investment
real estate, including the property resale and U.S. real estate businesses, was also strong, contributing to significant
growth.
b. Analysis of operating results(a) Net sales
Net sales for the fiscal year ended September 30, 2022 increased by 142,146 million yen year on year to 952,686
million yen (up 17.5% year on year).
This was mainly due to an increase of 32,900 million yen to 155,961 million yen (up 26.7% ) in the property resale
business, in addition to an increase of 69,594 million yen to 516,554 million yen (up 15.6%) in net sales from thesingle-family homes related business.

10(b) Cost of sales, gross profit
Cost of sales for the fiscal year ended September 30, 2022 increased by 112,892 million yen year on year to 768,117
million yen (up 17.2% year on year), while gross profit increased by 29,253 million yen to 184,568 million yen (up18.8%). Gross profit margin increased by 0.2 percentage points to 19.4% (compared to 19.2% in the previous fiscal
year).
This was mainly due to the increase in gross profit margin by 2.7 percentage points to 26.3% (23.6% for the previous
fiscal year), driven by the strong sales from the condominiums business.
(c) Selling, general and administrative expenses, operating profit
Selling, general and administrative expenses increased by 10,998 million yen year on year to 65,210 million yen (up20.3% year on year) while selling, general and administrative expense ratio increased by 0.1 percentage points to
6.8% (compared to 6.7% in the previous fiscal year).
Although selling, general and administrative expenses increased due mainly to an increase of 4,170 million yen inlabor costs to 21,157 million yen (compared to 16,987 million yen in the previous fiscal year) as a result of an increasein personnel accompanying the expansion of business, the selling, general and administrative expense ratio remainedroughly flat due to productivity being maintained at the same level as the previous fiscal year.
Operating profit increased by 18,254 million yen year on year to 119,358 million yen (up 18.1%).
The operating profit margin was unchanged from the previous fiscal year at 12.5%.
(d) Non-operating income and expenses, ordinary profit
Non-operating income decreased by 5,817 million yen year on year to 8,291 million yen (up 235.2% year on year),while non-operating expenses increased by 496 million yen year on year to 6,482 million yen (up 8.3%).
This was mainly due to the recording of 5,069 million yen in foreign exchange gains, an increase of 4,631 million
yen, due to the impact of the yen’s depreciation.
As a result, ordinary profit increased by 23,576 million yen year on year to 121,166 million yen (up 24.2% year onyear). In addition, ordinary income margin decreased by 0.7 percentage points to 12.7% (compared to 12.0% in theprevious fiscal year).
(e) Extraordinary income or loss, profit attributable to owners of parent
Profit attributable to owners of parent increased by 8,302 million yen year on year to 77,884 million yen (up 11.9%
year on year). In addition, ratio of profit to net sales decreased by 0.4 percentage points to 8.2% (compared to 8.6%
in the previous fiscal year). This was mainly due to 4,380 million in profits as a result of the recording of extraordinary
income or loss, which consists of a gain on bargain purchase of 15,475 million yen and a loss on step acquisitions of
11,095 million yen, both of which arose from the conversion of PRESSANCE CORPORATION to a consolidated
subsidiary in the previous fiscal year.

11

(ii) Objective indicators to assess the achievement of management policies, strategies and targets
The Group formulated the Mid-term Business Plan “Ikouze 1 cho, 2023!” - “Jump to 1 trillion, 2023!” (from October
2020 to September 2023). In formulating the Plan, we initially set the net sales target at 800.0 billion yen for the
fiscal year ending September 30, 2023, the final year of the Plan. However, we raised the target by 300.0 billion yen
to 1.1 trillion yen through three upward revisions, reflecting the strong business progress for the fiscal year ended
September 30, 2021. In terms of capital policy, we maintain the initial targets of ROE of 20.0%, equity ratio of 30.0%,
and dividend payout ratio of 20.0% or more. The financial results and the progress status against the targets for the
fiscal year ended September 30, 2021, the first year of the Mid-term Business Plan, are as follows:
Net sales were 952,686 million yen (achievement rate of 134.2% against the initial target of 710,000 million);
operating profit was 119,358 million yen (153.0% against 78,000 million yen); ROE was 24.7% (exceeding the target
by 4.7 percentage points); equity ratio was 32.7% (exceeding the target by 2.7 percentage points); and dividend
payout ratio was 20.6% (exceeding the target by 0.6 percentage points), exceeding the targets in all indicators.
(iii) Capital resources and funding liquidity
The Group’s capital requirements are primarily to fund the acquisition of commercial land and properties,
construction works, investments to expand its business and working capital in each segment.
The resources of these funds include shareholders’ equity, interest-bearing debt through borrowings from financial
institutions and the issuance of corporate bonds as well as cash flows from operating activities. Besides that, theGroup strives to secure a wide range of funding means suitable for various uses of funds.
(iv) Significant accounting policies and estimates
The Group’s consolidated financial statements are prepared in accordance with accounting principles generally
accepted in Japan. In preparing these consolidated financial statements, the Group makes estimates and assumptions
that affect reported amounts of assets and liabilities at the balance sheet date and those of income and expenses during
the reporting period. With respect to these estimates, the Group makes estimates by making assumptions andgathering information based on historical experience and other factors considered reasonable under the circumstances.
However, actual results may differ from these estimates due to the uncertainty inherent in these estimates.

12

IV. Mid-term Business Plan
“Ikouze 1 cho, 2023!” - “Jump to 1 trillion, 2023!”
In order for the Group to grow continuously, based on the core single-family homes related business, towardachieving the net sale target of 1 trillion yen for the fiscal year ending September 30, 2023, the final year of the Midterm Business Plan “Ikouze 1 cho, 2023!” - “Jump to 1 trillion, 2023!,” we worked to further increase our market
shares in existing business areas, including Tokyo metropolitan, Nagoya and Fukuoka areas, as well as expanded thesingle-family homes related business to tap into the Kansai region.
In other business areas, in order to achieve synergy with PRESSANCE CORPORATION, we will integrate theGroup’s strong purchasing power in the Tokyo metropolitan area with PRESSANCE CORPORATION’s planningand sales capabilities to develop a business line of new condominiums for investment in the Tokyo metropolitan area.
Besides that, we will also proactively pursue M&As opportunities and make strategic investments, and develop our
new business, the real estate fund business which primarily manages residential properties.

Major initiatives for achieving the Mid-term Business Plan
Strategies

Major initiatives- Continued growth based on single-family
homes business- Further expansion of shares in existing areas- Single-family homes business to tap into Kansai region- Synergies with PRESSANCECORPORATION- Develop a business line of new condominiums forinvestment in the Tokyo metropolitan area

- M&A Strategic Investment- Proactive M&A and strategic investments- New Business- Develop a real estate fund business primarily managing
residential properties

13

V. Sustainability(1) Approach to sustainability efforts
The Group promotes “sustainable efforts” aiming to contribute to realizing a sustainable society through its
business activities while achieving sustainable corporate growth. Guided by the Group’s corporate philosophy of“Committed to pursuing ‘Houses that customers want’ honestly and constantly,” the Group is working to createshared value, which means to pursue both social and business value, in practice by providing single-family homes
in urban areas at an affordable price so that ordinary working people can have houses in urban areas. The Groupalso identifies material issues based on the stakeholders’ interest as well as the Group’s priority and moves forwardwith initiative to address such issues.

ESG

Material Issues

Relevant SDGs

Environment

Environmental conservation

Product safety and security,
Promoting customer
satisfaction

Talent development
SocialWork-style reforms

Supply chain management

GovernanceCompliance14(2) Decarbonization Project
The Company is seriously addressing the problem of climate change as part of efforts to tackle its material issue of“environmental conservation.” Through the Open House Group Decarbonization Project, we are proceeding withdecarbonization initiatives that will be effective across the entire value chain.
(i) Started offering renewable energy electricity to purchasers of single-family homes
In October 2020, switch to renewable energy sources for electricity services provided to customers through our
subsidiary, OuchiLink Co.,Ltd.
Contributed to the reduction of Scope 3 emissions, which account for 70% of our emissions.
(ii) Launched solar power generation business, contributing to energy creation
In November 2022, owning solar power plants throughout Japan through subsidiary company (SPC) that operates
solar power plants.
Portfolio

Nationally distributed, all operational solar power plants(20 locations)

Panel Capacity

15.4MW

Estimated annual
power generation

Approx. 20 million kWh (equivalent to the annual electricity

Total Investment

Approx. ¥ 6 billion

consumption of 4,100 general households)(iii) As a purveyor of wooden houses, the Group contributes to the establishment of the “fell-use-plant-grow” cycle
for timber through forest conservation activities. We also conduct awareness-raising activities through employee
training. Through these activities, we strive to solve the issues of Japan-grown timber by contributing to themaintenance and restoration of the multiple functions of Japan’s forests (reduction of greenhouse gases, watershed
conservation and biodiversity preservation).
(iv) Addition of Scope 3 emissions to GHG emissions reduction targets
Based on our Decarbonization Project initiatives in October 2022, the Company set new targets for the reduction of
Scope 3 emissions. Through the further promotion of the Decarbonization Project, we continue aiming to achieve
our GHG emissions reduction targets and contribute to the realization of a sustainable society.

New <GHG (greenhouse gas) emission reduction targets>
Scope 1, 2 and 3:
Reducing 46% of GHG emissions by 2030 compared to FY 2018
Set a goal to achieve net-zero emissions by 2050
Target: Single family homes related business operated by OH and
OHD
Scope 1,2,3：
Scope 1: Emissions from the business activities of the subject
company (direct emissions)
Scope 2 Emissions from the use of energy supplied by othercompanies (indirect emissions)
Scope 3: Emissions from other business activities (indirect emissions
such as material procurement and emissions from the use of homes
after sale15

VI. Corporate Governance[Information about corporate governance, etc.](1) [Overview of corporate governance](i) Basic approach to corporate governance
Under the Group’s corporate philosophy of “Committed to pursuing ‘Houses that customers want’ honestly andconstantly,” the Company aims to be a real estate company needed by society. To this end, we believe that it isimportant to make efforts to establish and improve our organizational structure to ensure the appropriateness oforganizational management and thereby establish an organizational foundation to achieve the Group’s sustainablegrowth and maximization of corporate value in the medium- to long-term. Based on such recognition, the Company
discloses the “Basic Policy on Corporate Governance,” which was formulated to set forth its basic approach to andpolicy on corporate governance.
Regarding this policy as the Group’s highest code of corporate governance, the Company will manage its businessbased on this policy, while fully taking into account the purpose and background of the Corporate Governance Code.
(ii) Overview of corporate governance structure and reasons for adoption of this structure(a) Overview of corporate governance structure
The Company’s corporate governance structure is as follows:
General Meeting of Shareholders
Election and removalElection and removal

Nomination andCompensation Committee

Consultation/
recommReporting/Direction
Sustainability Committee

Risk Management
Committee

Election and removal

Audit

Audit

Audit & Supervisory
Board

Cooperation

Board of Directors

Reporting

Cooperation

Direction／Reporting【business execution】

Cooperation
Internal Audit Office

President & CEO
Direction/
ReportingDirection/
ReportingExecutive officers
Direction/
Reporting

audit

Audit

Business departments andsubsidiaries

16

Accounting Auditor

Appointment
and dismissal

Reporting<Board of Directors and Executive Officer system>
With Masaaki Arai, President & CEO, as the Chairman, the Board of Directors of the Company consists of a total ofnine Directors, of which six are internal Directors (Masaaki Arai, Kazuhiko Kamata, Kotaro Wakatabi, Hitoshi
Imamura, Ryosuke Fukuoka and Hiroshi Munemasa) and three are Outside Directors (Hitoshi Ishimura, Yuko Omae
and Maoko Kotani). As a management decision-making body, the Board of Directors deliberates and makes decisions
on management policies and other important management matters based on the Board of Directors Rules, andsupervises the execution of duties by Directors. In addition to regular meetings held once a month, the Board of
Directors holds meetings as needed and has lively discussions over various issues related to the Company’s businessactivities.
The Company’s Articles of Incorporation limit the number of Directors to the minimum necessary from theperspective of pursuing swift decision-making and full management function of the Board of Directors
simultaneously. The Board of Directors helps management make quick and drastic decisions based on such a structure.
The Company also adopts the Executive Officer system to increase flexibility and efficiency in both management
decision-making and business execution and delegates business execution to Executive Officers. Executive Officers
are responsible for practical execution of business in accordance with basic management policies and business plans
resolved by the Board of Directors.
<Audit & Supervisory Board>
With Koichi Matsumoto, Full-time Audit & Supervisory Board Member, as the Chairman, the Audit & Supervisory
Board consists of three Outside Audit & Supervisory Board Members (Koichi Matsumoto, Yuzo Toyama and Mieko
Hosaka), and, in addition to regular meetings held, in principle, once a month, holds meetings as needed. Among themembers, two Audit & Supervisory Board Members (Koichi Matsumoto and Yuzo Toyama) are Outside Audit &Supervisory Board Members with extensive knowledge and insight into finance and accounting as well as a wealthof experience as auditors. Such member composition ensures an objective and neutral supervisory structure.
In accordance with audit policies and plans drawn up and formulated by the Audit & Supervisory Board at the
beginning of the fiscal year, Audit & Supervisory Board Members conduct audits of the execution of duties byDirectors from a standpoint independent from Directors through their attendance at the Board of Directors’ meetingsand interviews with Directors and other officers on the status of business operations. Through information exchange,
shared recognition and cooperation with the Internal Audit Division and Accounting Auditor, the Audit & Supervisory
Board also strives to strengthen its auditing function by supplementing operational audits and accounting audits.
Further, the Audit & Supervisory Board assesses the appropriateness of the Accounting Auditor in accordance withthe “Standards for Appointment and Evaluation of Accounting Auditor,” and determines the details of a proposal
concerning matters including the election of the Accounting Auditor to be submitted at a general meeting ofshareholders.

17<Nomination and Compensation Committee>
With Outside Director Hitoshi Ishimura as Chair, the Nomination and Compensation Committee consists of a totalof three members, with Outside Director Yuko Omae and Senior Managing Director Kotaro Wakatabi serving as theother two members. The purpose of the Committee, which the Company has established voluntarily, is to contributeto the enhancement of corporate governance in the Group as a whole. In addition to deliberating on the nominationof key executives and employees of the Group, the Nomination and Compensation Committee is authorized to decideon the amounts of compensation, etc. for individual Directors of the Company, and it supplements the decisionmaking by the Board of Directors from an objective stance that is somewhat removed from the execution of theCompany’s business.
<Internal Audit Division>
The Internal Audit Division (four staff members), which is placed directly under the President, conducts internal
audits on the legality and appropriateness of the operation of internal systems and business executions in all aspectsof management, in accordance with an internal audit plan and other such documents drawn up and formulated at the
beginning of the fiscal year.
In principle, the Internal Audit Division conducts internal audits of all departments of the Group and reports theresults to each Group company’s President & Representative Director and departments subject to the audits. The
Internal Audit Division also gives improvement instructions to departments subject to the audits and monitors theirimprovement on an ongoing basis. Furthermore, the Internal Audit Division strives to strengthen its internal audit
function by supplementing internal audits through information exchange, shared recognition and cooperation with
Audit & Supervisory Board Members and the Accounting Auditor.
<Accounting Auditor>
The Company has appointed Deloitte Touche Tohmatsu LLC as its Accounting Auditor, and certified public
accountants (CPAs) from the auditing firm conduct audits in a fair manner under the Companies Act and the Financial
Instruments and Exchange Act of Japan. Additionally, CPAs from the said auditing firm also conduct accounting
audits of the Company’s significant subsidiaries.
The Accounting Auditor reports the audit plans and audit results to the Audit & Supervisory Board and Internal Audit
Division as needed to ensure cooperation within the three-way audit system in which the Audit & Supervisory Board,Internal Audit Division and Accounting Auditor mutually cooperate each other.

(b) Reasons for adoption of this structure
The Company believes that swift decision-making is especially important in appropriately adapting to the businessenvironment surrounding the Group and consistently enhancing its corporate value. The Company adopts the current
corporate governance structure from the perspective of ensuring the transparency and fairness of management by
establishing an objective and neutral management monitoring function while enabling flexible decision-making by
taking into account the Group’s business size and business plans.

18

(2) [Remuneration for officers](i) Matters related to determination of the remuneration amount for officers or the calculation method(a) Details of the policy on determining the remuneration amount for officers or the calculation method and thedetermination method thereof
At its meeting held on February 12, 2021, the Board of Directors of the Company set the policy on determining thedetails of remuneration of individual Directors. With regard to remuneration of individual Directors for the fiscal year
under review, the Board of Directors has confirmed that the procedure for determining the details of remuneration,and such details thereby determined were consistent with the policy.
a. Remuneration for Directors
Remuneration of Directors consists of monetary remuneration and share-based remuneration. From the perspectiveof their role and independence, Outside Directors are not evaluated based on their performance for the determinationof the amount of monetary remuneration paid to them. Share-based remuneration is not paid to Outside Directors andAudit & Supervisory Board Members.
In order to strongly motivate Directors to achieve financial targets for every single fiscal year, we adopt a policy tomake flexible and fluid decisions concerning the monetary remuneration using indicators, consolidated ordinary
profit and consolidated profit, for the previous fiscal year, taking into account the details of Directors’ duties, the stateof execution of their duties and their responsibilities.
As for the share-based remuneration, we adopt a policy to grant shares with a restriction on transfer (hereinafter“restricted shares”) to Directors every fiscal year with an aim to motivate them to further contribute to increasing theCompany’s corporate value over the medium- to long-term by sharing the benefits and risks of share price fluctuations
with shareholders.
The amounts of remuneration are determined upon resolution by the Board of Directors within the maximum limitof the total amount resolved at a general meeting of shareholders.
b. Remuneration for Audit & Supervisory Board Members
Remuneration for Audit & Supervisory Board Members consists of monetary remuneration.
The amount of remuneration is determined in discussions among Audit & Supervisory Board Members within the
maximum limit of the total amount resolved at a general meeting of shareholders.
(b) Policy on determining the remuneration amount for officers or the calculation method by position
The Company divides Directors into three categories - Director with specific title, full-time Director (excluding thosewith specific titles; the same applies hereinafter in this section) and part-time Director - and Audit & Supervisory
Board Members into two categories - full-time Audit & Supervisory Board Member and part-time Audit &Supervisory Board Member. The specific amounts of remuneration for officers are determined within thepredetermined maximum amount for each category.
In addition to monetary remuneration, share-based remuneration is paid to Directors with specific titles as necessary.
Meanwhile, monetary remuneration and share-based remuneration are paid to full-time Directors whereas only
monetary remuneration is paid to part-time Directors.

19(c) Details of resolutions on remuneration for officers at general meetings of shareholdersa. The followings are resolutions on remuneration for officers passed at past general meetings of shareholders. The
Company stipulates in its Articles of Incorporation that the number of Directors shall be up to twelve.
i. The total amount of remuneration for Directors to be paid for a fiscal year was resolved to be up to 1,500 million
yen per year (of which up to 200 million yen per year is for Outside Directors; excluding employee’s salary portion)(24th Ordinary General Meeting of Shareholders held on December 23, 2020).
ii. The total amount of monetary compensation claims to be paid as remuneration in restricted shares for Directors(excluding Outside Directors) was resolved to be set at up to 200 million yen per year, separately from the amountresolved in i (21st Ordinary General Meeting of Shareholders held on December 20, 2017).
b. The amount of remuneration for Audit & Supervisory Board Members was resolved to be up to 100 million yen
per year at the 6th Ordinary General Meeting of Shareholders held on December 26, 2002. In addition, the Company
stipulates in its Articles of Incorporation that the number of Audit & Supervisory Board Members shall be up to four.
(ii) Amendment of policy on determining the details of remuneration of individual Directors
Surmising the remuneration in the fiscal year ending September 30, 2023 and beyond, the Company resolved theamendment of the policy on determining the details of remuneration of individual Directors at a meeting of the Boardof Directors on September 29, 2022. The main details of the policy on determining the details of remuneration ofindividual Directors after amendment are as follows (unchanged sections have been omitted).
(a) Details of the policy on determining the remuneration amount for officers or the calculation method and thedetermination method thereof
a. Remuneration for Directors
Remuneration for Directors consists of monetary remuneration and share-based remuneration. From the perspectiveof their role and independence, Outside Directors are not evaluated based on their performance for the determinationof the amount of monetary remuneration paid to them. Share-based remuneration is not paid to Outside Directors andAudit & Supervisory Board Members.
The Company has adopted a policy of flexible and fluid determination of monetary remuneration, based on the fixedamounts in the remuneration table calculated according to position, duties and responsibilities, and skills, and on
performance indicators for consolidated ordinary profit and consolidated net profit and financial indicators such as
ROE and capital equity ratio in the previous fiscal year, as a strong motivation to achieve single-year financial results.
Factors such as the content of the officers’ duties, the status of their execution of operations, and their responsibilities
are also taken into account.
For the share-based remuneration, the Company has adopted a policy of granting share remuneration-type stock
options to Directors every fiscal year, with an index of 10% of monetary remuneration as necessary, with an aim tofurther motivate them to contribute to increasing the Company’s corporate value over the medium- to long-term by
sharing the benefits and risks of share price fluctuations with shareholders.
The Nomination and Compensation Committee, the majority of whose members are Outside Directors, is delegatedby the Board of Directors to make the decisions regarding individual amounts of remuneration, in line with the policy
for determination decided in the Board of Directors after prior deliberation by the Nomination and Compensation
Committee.
(b) Policy on determining the remuneration amount for officers or the calculation method by position
The Company divides Directors into three categories - Director with specific title, full-time Director (excluding thosewith specific titles; the same applies hereinafter in this section) and part-time Director - and Audit & Supervisory
Board Members into two categories - full-time Audit & Supervisory Board Member and part-time Audit &Supervisory Board Member. The specific amounts of remuneration for officers are determined within thepredetermined maximum amount for each category.
Within the above categories, in addition to monetary remuneration, share-based remuneration is paid to Directors
with specific titles and full-time Directors as necessary. Only monetary remuneration is paid to part-time Directors.
20

(iii) Remuneration amounts for officers(a) Total amount of remuneration by officer category, total amount of remuneration by type of remuneration andthe number of eligible officers
Total
Total amount of remuneration by type of remuneration
amount of(Millions of yen)remuneration
Base
Share-based
Retirement(Millions ofBonusesremuneration remuneration
benefitsyen)

Officer category
Director(excl. Outside Director)
Audit & Supervisory
Board Member(excl. Outside Audit &Supervisory Board
Member)

908

863

44

–

–

6

–-

–

–

–

–

0

89

89

–

–

–

6

Outside officer
Notes:

Number of eligible
officers(Persons)

1

The Board of Directors resolved to leave the decisions on remuneration for Directors for the fiscal year ended September 30, 2022, including decisions
on the total amount of remuneration and specific remuneration allocation” entirely to the Representative Director, and these decisions are made basedon the said resolution.
Specifically, the authority to determine the evaluation and allocation of remuneration to each Director based on businesses and operations under hisor her charge was delegated to the Representative Director because he is the most suitable person to evaluate each Director while reviewing theperformance of the Company as a whole from a high-level perspective.
The decisions on the remuneration for Audit & Supervisory Board Members are made in discussions among Audit & Supervisory Board Members.
2. The target figures of the indicators used for calculating the monetary remuneration paid in the fiscal year ended September 30, 2022 were projectedconsolidated financial results for the same fiscal year, including ordinary profit of 108,900 million yen and profit of 72,000 million yen. Meanwhile,the consolidated financial results for the same fiscal year were ordinary profit of 121,166 million yen and profit of 77,884 million yen.
3. Base remuneration consists of monetary remuneration, and share-based remuneration consists of restricted share-based remuneration.
4. In addition to the above, the Company covers the rent for company housing of two Directors. The amount covered in the fiscal year ended September
30, 2022 was 15 million yen.

(b) Total amount of consolidated remuneration by officer and type of remuneration

Name

MasaakiArai
Kazuhiko
KamataKotaroWakatabiTotalamount ofconsolidated
remuneration(Millions ofyen)Amount of consolidated remuneration by type of remuneration(Millions of yen)
Officercategory

456

Director

203

Director

163

Director

Company
categoryBaseremuneration

Restricted
share-based
remuneration

456

–

–

–

180

23

–

–

151

12

–

–

ReportingentityReportingentityReportingentityRetirement
benefits

Bonuses

Note: 1. The above table only includes those who received consolidated remuneration of 100 million yen or more.
2. Base remuneration consists of monetary remuneration, and share-based remuneration consists of restricted
share-based remuneration.
3.In addition to the above, the Company covers the rent for company housing of two Directors. The amount coveredin the fiscal year ended September 30, 2022 was 15 million yen..

21

VII. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of September 30, 2021

As of September 30, 2022

AssetsCurrent assets
Cash and deposits
Trade accounts receivable
Trade accounts receivable and Contract assets

337,731349,305

1,929

―
2,198

Real estate for sale
Real estate for sale in process―
90,402
337,726

95,717461,388

Operating loans
Other36,87826,421

43,26230,128

Allowance for doubtful accounts
Total current assets

(362)

(344)

830,727

981,656

5,815(2,079)6,357(2,417)

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

3,735

3,939

Real estate for rent
Accumulated depreciation

Buildings and structures, net

15,479(1,025)

15,149(1,035)

Real estate for rent, net

14,454

14,113

2,418

2,277

Land
Other
Accumulated depreciation
Other, net

1,913

2,217

(1,223)(1,424)689

792

21,297

21,123

Intangible assets
Investments and other assets

3,031

2,925

Investment securities
Deferred tax assets

13,171
6,272

13,271
5,150

Other
Allowance for doubtful accounts

5,430
(18)

7,066
(18)

Total investments and other assets

24,85625,470Total property, plant and equipment

Total non-current assets
Total assets

22

49,18549,518879,913

1,031,174

(Millions of yen)
As of September 30, 2021

As of September 30, 2022

Liabilities
Current liabilities
Notes payable - trade
Trade accounts payable

1,166
20,8501,238
31,220Electronically recorded obligations - operating
Short-term borrowings

4,713
104,684

8,104
144,309

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

242
57,142242
39,262

Income taxes payable
Advances received

18,23926,953

20,292Contract liabilities
Guarantee deposits received

―
1,768

―
35,854
2,789

3,655

4,669

1,039

1,139

Provision for bonuses
Provision for warranties for completed
construction
Other

15,781

20,373

256,237

309,495

10,605
264,502

10,363314,784

Deferred tax liabilities
Provision for share awards

121
257

Retirement benefit liability
Asset retirement obligations

311
150

―
―
318
211

Other

583

298

276,532

325,976

532,769

635,472

Share capital
Capital surplus

19,93929,06820,07019,882Retained earnings
Treasury shares

244,248(0)286,286(18)

Total shareholders' equity

293,256

326,221

12

(34)

540

11,434552

11,399

Share acquisition rights
Non-controlling interests

551
52,782474
57,606

Total net assets

347,143

395,702879,913

1,031,174

Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive income

Total liabilities and net assets

23

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(Consolidated Statements of Income)(Millions of yen)
Fiscal year ended
September 30, 2021

Fiscal year ended
September 30, 2022

Net sales
Cost of sales

810,540
655,224

952,686
768,117Gross profit

155,315

184,568

Selling, general and administrative expenses

54,211

65,210Operating profit

101,103

119,358

Non-operating income
Interest income

17

170

13
149

1,853
174

437

5,069

1,395

383

458

638

2,473

8,291

1,362
3,118

1,942
3,531

869
635

601
407

5,986

6,482

97,590121,166

Gain on bargain purchase

15,475―

Total extraordinary income

15,475―

11,095―
119

Dividend income
Rental income from buildings
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Loss on valuation of investment securities
Interest expenses
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

Extraordinary losses
Loss on step acquisitions
Loss on sale of shares of subsidiaries and associates

―
―

58

11,095

178

Profit before income taxes

101,970

120,988

Income taxes - current
Income taxes - deferred

29,843(611)

35,9391,110

Total income taxes

29,23237,050

Profit72,73883,937

Profit attributable to non-controlling interests

3,156

6,053

Profit attributable to owners of parent

69,582

77,884

Impairment losses
Total extraordinary losses

24

(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
September 30, 2021
ProfitFiscal year ended
September 30, 2022
72,738Other comprehensive income
Valuation difference on available-for-sale securities

83,9379(45)

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

1,731

10,888

3

12

1,744

10,855Comprehensive income

74,483

94,793Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

71,32988,749

3,153

6,043

25

(3) Consolidated Statements of Changes in Equity
Fiscal year ended September 30, 2021
(Millions of yen)

Shareholders’ equity

Balance at beginning of period

Retainedearnings

Treasury shares

Total
shareholders'equity234,666

Share capital

Capital surplus

19,741

28,877

151

151

302

46

46

93

186,047(0)Changes during period
Issuance of new shares - exercise of shareacquisition rights
Issuance of restricted shares
Dividends of surplus
Profit attributable to owners of parent
Change in scope of consolidation
Change in ownership interest of parent due
to transactions with non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period(11,330)(11,330)

69,582

69,582

(50)

(50)

(7)

(7)

197

190

58,201―

58,59019,93929,068244,248(0)

293,256

Accumulated other comprehensive
incomeValuation
Total
Foreigndifference
accumulated
currency
on availableothertranslation
for-salecomprehensi
adjustment
securities
ve income7(1,195)(1,188)

Shareacquisitionrights217

Non-controlling
Total net assetsinterests―

Changes during period
Issuance of new shares - exercise of shareacquisition rights

233,695302
93Issuance of restricted shares(11,330)

Dividends of surplus
Profit attributable to owners of parent

69,582

Change in scope of consolidation
Change in ownership interest of parent due
to transactions with non-controlling interests
Net changes in items other thanshareholders' equity(50)

Total changes during period
Balance at end of period

(7)
4

1,736

1,741

333

52,78254,857

4

1,736

1,741

333

52,782

113,447

12

540

552

551

52,782

347,143

26

Fiscal year ended September 30, 2022
(Millions of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus Retained earnings Treasury shares

19,93929,068

75

75

54

54

244,248(0)

Total
shareholders'equity293,256

Changes during period
Issuance of new shares - exercise of shareacquisition rights
Issuance of restricted shares

151
109

Dividends of surplus(15,648)(15,648)

Profit attributable to owners of parent

77,88477,884Purchase of treasury shares
Cancellation of treasury shares(9,467)

Change in scope of consolidation

Balance at beginning of period(30,000)

29,982―

316

Change in ownership interest of parent due
to transactions with non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period(20,514)(30,000)

316

151

151

130

(9,185)42,037(17)32,96420,07019,882286,286(18)

326,221

Accumulated other comprehensive
incomeValuation
Total
Share acquisition Non-controlling
difference Foreign
accumulate
rightsinterests
oncurrency
d otheravailable- translation
comprehens
for-sale adjustment
ive income
securities
12
540
552
551
52,782

Total net assets

347,143

Changes during period
Issuance of new shares - exercise of shareacquisition rights
Issuance of restricted shares

151
109

Dividends of surplus(15,648)

Profit attributable to owners of parent

77,884Purchase of treasury shares(30,000)

Cancellation of treasury shares―

Change in scope of consolidation

316

Change in ownership interest of parent due
to transactions with non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

151
(47)

10,893

10,846

(77)

4,824

15,593(47)

10,893

10,846

(77)

4,824

48,558(34)

11,434

11,399474

57,606

395,70227

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
September 30, 2021

Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based payment expenses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for share awards
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in retirement benefit liability
Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on step acquisitions
Gain on bargain purchase
Interest and dividend income
Foreign exchange losses (gains)
Interest expenses
Amortization of bond issuance costs
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Decrease (increase) in operating loans receivable
Increase (decrease) in contract liabilities
Increase (decrease) in guarantee deposits received
Increase (decrease) in deposits received
Decrease (increase) in advance payments to suppliers
Other, net
SubtotalInterest and dividends received
Dividends received from entities accounted for using equity
methodInterest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Loan advances
Proceeds from collection of loans receivable
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates
Proceeds from purchase of shares of subsidiaries resulting inchangein scopeforof consolidation
Payments
investments in capital of subsidiaries andassociates
Repayment from investment in capital of subsidiaries andaffiliates
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

28

Fiscal year ended
September 30, 2022

101,970
953
223
745
47
7
41
(16)
－
1,362
(1,395)
11,095(15,475)
(31)
(213)
3,118
24
(826)
(24,945)
2,036
585
5,682
284
(321)
(2,493)
1,545
84,00726－(3,090)(30,819)
50,123

120,988
1,375
205
1,014
(257)
(17)
99
7
119
1,942
(383)
－
－
(2,024)(4,346)3,531－
92(116,798)
13,833(6,384)
7,307
802
4,224
(1,136)(2,303)
21,8922,024
207(3,508)(36,969)(16,353)(125)(1,786)
94
(381)
(735)
373
(7,644)54(403)－
35,256－－(1,688)254
274
23,541(0)(3,139)28(487)(1,171)
5,166(3,203)－－17－(3,174)
3,107(1,934)268
156(4,367)

(Millions of yen)
Fiscal year ended
September 30, 2021
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from exercise of employee share options
Purchase of treasury shares
Repayments to non-controlling shareholders
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

29

Fiscal year ended
September 30, 2022

275,146(280,633)
171,704(123,820)
9,957
(242)
193
－
－
－
(11,330)(388)
40,588809

262,358(212,514)
197,430(175,277)
－
(242)
98
(30,000)(1,182)668(15,648)(997)
24,694
6,858

115,063
219,218

10,832
334,506

224

741

334,506

346,080

VIII. Issuance, Redemption or Acquisition of Shares
Changes in the total number of shares issued, share capital, etc.
Date

Change in the
total number ofshares issued

Balance of thetotal number ofshares issued(Shares)(Shares)

Change inshare capital

Balance ofshare capital(Millions of yen)

(Millions of yen)

Change inlegal capitalsurplus

Balance oflegal capitalsurplus(Millions of yen)

(Millions of yen)February 14, 2018
Note 29,300

57,472,900

29

4,061

29

3,845

February 15, 2018 toSeptember 30, 2018
Note 1

39,60057,512,500

32

4,094

32

3,877

October 1, 2018 toNovember 30, 2018
Note 140,00057,552,500

63

4,158

63

3,941

February 14, 2019
Note 3

9,100

57,561,600

19

4,178

19

3,961

February 15, 2019 toMarch 31, 2019
Note 1

33,20057,594,800

27

4,205

27

3,988

April 5, 2019
Note 4

8,100

57,602,900

16

4,221

16

4,004

15,60057,618,500

13

4,234

13

4,017

57,618,500

115,237,000

-

4,234

-

4,017

21,200115,258,200

8

4,242

8

4,026

25,500115,283,700

40

4,283

40

4,066

72,800115,356,500

32

4,315

32

4,098

9,617,200

124,973,700

14,31018,625

14,31018,408684,600

125,658,300

1,019

19,644

1,019

19,427

160,800

125,819,100

97

19,741

97

19,524

21,600125,840,700

819,7508

19,53322,700125,863,400

46

19,79646

19,579253,600

126,117,000

142

19,939142

19,722

18,700126,135,700

54

19,99454

19,777

149,000

126,284,700

75

20,07075

19,853(5,796,800)

120,487,900－

20,070－19,853

April 6, 2019 to
September 30, 2019
Note 1
October 1, 2019
Note 5October 1, 2019 to
December 31, 2019
Note 1February 5, 2020
Note 6
February 6, 2020 toMarch 31, 2020
Note 1
July 28, 2020
Note 7
August 25, 2020
Note 8August 26, 2020 to
September 30, 2020
Note 1
October 1, 2020 to
December 31, 2020
Note 1February 10, 2021
Note 9February 11, 2021 toSeptember 30, 2021
Note 1February 10, 2022
Note 10February 11, 2022 to
May 22, 2022
Note 1
August 31,2022
Note 1130

Notes: 1. The increase was due to the exercise of share acquisition rights.
2. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 6,320 yen
Additional paid-in capital: 3,160 yen
3. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 4,265 yen
Additional paid-in capital: 2,132.5 yen
4. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 3,990 yen
Additional paid-in capital: 1,995 yen
5. The increase was due to a 2-for-1 stock split.
6. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 3,175 yen
Additional paid-in capital: 1,587.5 yen
7. The increase was due to the issuance of new shares for public offering (primary offering)
Issue price: 3,104 yen
Paid-in amount: 2,976 yen
Additional paid-in capital: 1,488 yen
8. The increase was due to a third-party allotment with compensation (capital increase through a third-party allotment
associated with a secondary offering of the Company’s shares by way of over-allotment)
Issue price: 2,976 yen
Additional paid-in capital: 1,488 yen
Allottee: SMBC Nikko Securities Inc.
9. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 4,100 yen
Additional paid-in capital: 2,050 yen
10. The increase was due to the issuance of new shares with compensation for the purpose of granting restricted share-based
remuneration.
Issue price: 5,860 yen
Additional paid-in capital: 2,930 yen
11. The decrease was due to the cancellation of treasury shares.

31

IX. Transactions with Directors, Officers or Major Shareholders
1. Related party transactions(1) Transactions between the reporting entity of the consolidated financial statements (hereinafter the “reporting entity”) and its
related parties
Fiscal year ended September 30, 2021

Type

Officer of a
subsidiary

Name ofcompany orindividual

Yasuhito Hidaka

Capital or
Description of
investment
Locationbusiness or(Millions ofoccupation
yen)

－

－

President &Representative
Director of
the Company’s
subsidiary

Ratio of voting
rights holding(held) (%)

Relationshipwith therelated party

Summary oftransaction(Held)
Direct: 0.1

Exercise ofstock option
rightsExercise ofstock option
rights (Note)

Transaction
amount(Millions of
yen)

48

Items

Balance at
end ofperiod(Millions of
yen)

－

－

Note: The above table presents the exercise of stock option rights granted based on resolutions of the Board of Directors on
October 3, 2014 and May 15, 2015. The “Transaction amount” column presents the amount obtained by multiplying thenumber of shares granted with the exercise of stock option rights by the paid-in amount.

Fiscal year ended September 30, 2022

Type

Officer

Officer of a
subsidiary

Name ofcompany orindividual

Capital or
Description of
investment
Locationbusiness or(Millions ofoccupationyen)

Masaaki Arai－－

Yasuhito Hidaka

－

－

－

－

Officer of a

Rakutosubsidiary

Kuroyanagi

President &Representative
Director of
the Company
President &Representative
Director of
the Company’s
subsidiary
Director of
the Company’s
subsidiary

Transaction
Summary ofamounttransaction (Millions ofBalance at
end ofperiodRatio of voting
rights holding(held) (%)

Relationshipwith therelated party(Held)
Direct: 36.3

Purchase oftreasurysharesPurchase oftreasuryshares (Note.1)

8,699

－

－

(Held)
Direct: 0.0

Exercise ofstock option
rightsExercise ofstock option
rights (Note.2)

48

－

－

(Held)
Direct: 0.0

Exercise ofstock option
rightsExercise ofstock option
rights (Note.2)

11

－

－

Items

(Millions of
yen)

yen)

Note: 1. The purchase of treasury shares was conducted on May 19, 2022 on ToSTNeT-3, the system for transactions for thepurchase by listed companies of their own shares, based on a resolution of the Board of Directors on May 13, 2022.
The value of the transaction is based on the closing price on May 18, 2022.
2. The above table presents the exercise of stock option rights granted based on resolutions of the Board of Directors on
October 3, 2014 and May 15, 2015. The “Transaction amount” column presents the amount obtained by multiplying thenumber of shares granted with the exercise of stock option rights by the paid-in amount.

32

(2) Transactions between consolidated subsidiaries of the reporting entity and its related parties(i) Officers and major shareholders (limited to individuals) of the reporting entity, etc.

Fiscal year ended September 30, 2021
Capital or

Name of company
investment
Type
Location(Millions ofor individualyen)

Officer Kazuhiko Kamata－－

Description ofbusiness or
occupation

Ratio of voting
rights holding(held) (%)

Executive Vice
President of theCompany(Held)
Direct: 0.1

Relationshipwith therelated party

Summary oftransaction

Sale of realestateSale of realestate (Note)

Transaction
amount(Millions of
yen)

86

Items

Balance at
end ofperiod(Millions of
yen)

－

－

Note: The transaction was conducted on general terms equivalent to those prevailing in arm’s length transactions.

Fiscal year ended September 30, 2022
Capital or
Description ofName of company
investment
Type
Locationbusiness or(Millions ofor individual
occupationyen)

Officer Kazuhiko Kamata－

Ratio of voting
rights holding(held) (%)

Relationshipwith therelated party

Transaction
Summary ofamounttransaction (Millions of

Items

Balance at
end ofperiod(Millions of
yen)

yen)

－

Executive Vice
President of theCompany(Held)
Direct: 0.1

Sale of realestateSale of realestate (Note)

114

－

－

(Held)
Direct: 0.2

Sale of realestateSale of realestate (Note)

41

－

－

(Held)
Direct: 0.0

Sale of realestateSale of realestate (Note)

45

－

－

Officer Kotato Wakatabi－－

SeniorManaging
Director and
CFO of theCompany

Officer Hitoshi Munemasa－－

Director of theCompany

Note: The transaction was conducted on general terms equivalent to those prevailing in arm’s length transactions.

33

(ii)

Officers and major shareholders of significant subsidiaries of the reporting entity (limited to individuals), etc.

Fiscal year ended September 30, 2021
Name ofcompany orindividual

Type

Officer of a
subsidiary

Officer of a
subsidiary

Takaya Ito

Hajime Yazu

Closerelative ofClose relative of
an officer
Keiji Takamasu
of asubsidiary

Capital orinvestment
Location(Millions of
yen)

－

－

－

Description ofbusiness or
occupation

Ratio of voting Relationshiprights holding with the related(held) (%)
party(Held)－

Director of
the Company’s
subsidiary－

Director of
the Company’s
subsidiary(Held)
Direct: 0.0

－

－

－

Direct: 0.0

Sale of realestateLending offunds

Sale of realestateSummary oftransaction

Transaction
amount(Millions

Items

of yen)Balance at
end ofperiod(Millionsof yen)Sale of realestate (Note)

90

－

－

Lending offunds (Note)－

Operating
loans

70

Receipt ofinterest (Note)

1

－

－

Sale of realestate (Note)

68

－

－

Note: The transaction was conducted on general terms equivalent to those prevailing in arm’s length transactions.

Fiscal year ended September 30, 2022

Type

Name ofcompany orindividual

Officer of a
subsidiary Kenta Kikuchi

Officer of a
subsidiary

Hajime Yazu

Capital orinvestment
Location(Millions of
yen)

－

－

－

－

Description ofbusiness or
occupation
President &Representative
Director of
the Company’s
subsidiary

Director of
the Company’s
subsidiary

Ratio of voting Relationshiprights holding with the related(held) (%)
party(Held)
Direct: 0.2(Held)
Direct: 0.0

Officer of a
subsidiary

Officer of a
subsidiary

RakutoKuroyanagi

Kenichiro
KimuraKatsuhiko
Tamura

－

－

－

－

－

－

Director of
the Company’s
subsidiary(Held)
Direct: 0.0

Director of
the Company’s
subsidiary(Held)
Direct: 0.0

Auditor of
the Company’s
subsidiary(Held)
Direct: 0.0

Transaction
amount(Millions

Items

of yen)of yen)Sale of realestate (Note)

80

－

－

Sale of realestateSale of realestate (Note)

45

－

－

Lending offunds (Note)

29

Operating
loans

99

Receipt ofinterest (Note)

2

－

－

Sale of realestate (Note)

44

－

－

Lending offunds (Note)－

Operating
loans

25

Receipt ofinterest (Note)

0

－

－

Lending offunds (Note)－

Operating
loans

27

Receipt ofinterest (Note)

0

－

－

Lending offunds (Note)－

Operating
loans

21

Receipt ofinterest (Note)

0

－

－

Lending offunds

Lending offunds

Lending offunds

Lending offunds

Note: The transaction was conducted on general terms equivalent to those prevailing in arm’s length transactions.

34

Balance at
end ofperiod(Millions

Sale of realestateSale of realestateOfficer of a
subsidiary

Summary oftransaction

Ⅹ. History
Month/Year

Events

September 1997

Founded under the name of Open House Co., Ltd. and commenced the trading and brokerage of newly-built
single-family homes.

September 1997

Opened the Head Office in Shibuya-ku, Tokyo

October 1997

Concluded a franchise agreement with “CENTURY 21 REAL ESTATE OF JAPAN LTD.”

February 2001

Commenced the sale of newly-built single-family homes built by the Company itself.

August 2001

Registered as First-class Architect Office [No. 46671 registered by Governor of Tokyo].

September 2001

Acquired all the stake in Souken Build Ltd. and converted it to a wholly-owned subsidiary. (Converted Souken
Build Ltd. to a stock company in July 2002 and changed the trading name to Tomari Build Co., Ltd. in August
2004.)

October 2006

Changed the trading name of Tomari Build Co., Ltd. to Open House Development Co., Ltd.

March 2007
August 2007

Opened “Mizonokuchi Sales Center” in Takatsu-ku, Kawasaki-shi, Kanagawa Prefecture and commenced
operations in Kanagawa Prefecture.
Acquired all the shares in Ito-pia Business Net Co., Ltd. from Itochu Corporation and converted it to a whollyowned subsidiary (after the acquisition, held a 67% stake and acquired 100% stake in September 2010) andchanged the trading name to IB Net Co., Ltd.

October 2008

Commenced the sale of condominiums through Open House Development Co., Ltd.

January 2010

Opened “Marunouchi Office” in Marunouchi, Chiyoda-ku, Tokyo (relocated a part of the Head Office functions).

September 2010

Acquired all the stake in IB Net Co., Ltd. and converted it to a wholly-owned subsidiary.

September 2010

Launched Open House Realty & Investments, Inc. in California, the U.S.

September 2010

Launched Wangjia Architectural Design Consulting (Shanghai) Co., Ltd. in Shanghai, China.

October 2011

Launched OH Real Estate Management Co., Ltd. in Marunouchi, Chiyoda-ku, Tokyo.

September 2012

Terminated the franchise agreement with “CENTURY 21 REAL ESTATE OF JAPAN LTD.”

January 2013

Relocated the Head Office to Marunouchi, Chiyoda-ku, Tokyo.

September 2013

Listed on the First Section of The Tokyo Stock Exchange.

January 2015

Acquired shares of Asakawa Home Co., Ltd. and converted it to a wholly-owned subsidiary.

October 2016

Changed the trading name of Asakawa Home Co., Ltd. to Open House Architect Co., Ltd.

October 2016

Opened “Sakae Sales Center” in Naka-ku, Nagoya-shi, Aichi Prefecture and commenced operations in Aichi
Prefecture.

December 2016

Opened “Open House Group Shibuya Showroom” for single-family homes in Shibuya-ku, Tokyo.

September 2017

Opened “OPENHOUSE GINZA SALON” in Chuo-ku, Tokyo.

September 2017

Opened “Nagoya Mansion Gallery” in Naka-ku, Nagoya-shi, Aichi Prefecture.

35

Month/Year
October 2017
July 2018

EventsOpened “Urawa Sales Center” in Urawa-ku, Saitama-shi, Saitama Prefecture and commenced operations in
Saitama Prefecture.
Acquired shares of HAWK ONE CORPORATION and converted it to a subsidiary (ratio of voting rights
holding: 69.7% including voting rights acquired in August 2018).

October 2018

Converted HAWK ONE CORPORATION to a wholly-owned subsidiary through a stock exchange.

January 2019

Opened “Tenjin Sales Center” in Chuo-ku, Fukuoka-shi, Fukuoka Prefecture and commenced operations inFukuoka Prefecture.

March 2019

Opened “NAGOYA SALON” in Nakamura-ku, Nagoya-shi, Aichi Prefecture.

March 2019

Opened “Iidabashi Mansion Gallery” in Shinjuku-ku, Tokyo.

July 2019

Opened “Motoyawata Sales Center” in Ichikawa-shi, Chiba Prefecture and commenced operations in Chiba
Prefecture.

May 2020

Acquired shares of PRESSANCE CORPORATION Co., Ltd. and converted it to an equity-method affiliate(ratio of voting rights holding: 31.9%)

November 2020

Opened “Tenjin Mansion Gallery” in Fukuoka-shi, Fukuoka Prefecture.

January 2021

Acquired additional shares of PRESSANCE CORPORATION Co., Ltd. and converted it to a consolidated
subsidiary (ratio of voting rights holding: 64.45%)

March 2021

Changed the trading name of OH Real Estate Management Co., Ltd. to Open House Real Estate Co., Ltd.

October 2021

Launched the brokerage business in the Kansai area, opened “Umeda Sales Center” in Kita-ku, and “Tennouji
Sales Center” in Abeno-ku, Osaka-shi, Osaka Prefecture."

January 2022

Shifted to a pure holding company structure, and changed the company name from Open House Co., Ltd. toOpen House Group Co., Ltd.

April 2022

Transition to the Prime Market in Tokyo Stock Exchange.

January 2023

The head office relocated to JP Tower in Marunouchi, Chiyoda-ku, Tokyo.

36

XI. Corporate Data
Basic Information (as of September 30, 2022)
Company name:Business inauguration:
Listed market:
Listed:Business year:
Capital stock:
Number of employees:
Head office:Telephone:
Consolidated subsidiaries:

Open House Group Co., Ltd.
(Note) In January, 2022, Shifted to a pure holding company
structure and changed the company name to the above.
September 1997
The Prime Market of Tokyo Stock Exchange(Securities Code: 3288)
September 2013
From October 1 to September 30
20,070 million yen
4,493 persons (Consolidated)
2-7-2 Marunouchi, Chiyoda-ku, Tokyo(Note) In January 2023, The head office relocated to the above
location.
+81-3-6213-0776
Open House Co., Ltd.
Open House Development Co., Ltd.
Open House Real Estate Co., Ltd.
Open House Architect Co., Ltd
HAWK ONE CORPORATIONIB Net Co., Ltd
PRESSANCE CORPORATION Co., Ltd.
Open House Realty & Investments, Inc.
Open House Texas Realty & Investments LLC
Other 31 companies

Directors and Audit & Supervisory Board Members (as of September 30, 2022)
President & CEO
Executive Vice President
Senior Managing Director,CFO
Senior Managing Director
Director, Senior Managing Executive Officer
Director
Outside Director*
Outside Director*
Outside Director*
Outside Audit & Supervisory Board Member (Full-time) **Outside Audit & Supervisory Board Member**Outside Audit & Supervisory Board Member*** Outside Director ** Outside Audit & Supervisory Board Member

37

Masaaki Arai
Kazuhiko Kamata
Kotaro Wakatabi
Hitoshi Imamura
Ryosuke Fukuoka
Hiroshi Munemasa
Hitoshi Ishimura
Yuko Omae
Maoko Kotani
Koichi Matsumoto
Yuzo Toyama
Mieko Hosaka

Stock Status (as of September 30, 2022)
Total number of authorized shares:

325,200,000 shares

Total number of issued shares:

120,487,900 shares

Number of shareholders:

8,377

Major shareholders (Top 10)
Name

Number of shares held

Shareholding ratio(excluding treasury
shares) (%)

Masaaki Arai

38,237,200

31.73

The Master Trust Bank of Japan, Ltd. (Trust Account)

12,429,300

10.31

10,315,600

8.56

5,620,000

4.66

3,769,500

3.12

2,492,220

2.06

2,099,480

1.74

2,004,000

1.66

1,483,156

1.23

1,428,600

1.18

Ichigo Trust PTE Limited(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited Tokyo branch)
SMBC Trust Bank Ltd. (Trustee of Regulated Securities
in Trust)
Custody Bank of Japan, Ltd. (Trust Account)
STATE STREET BANK AND TRUST COMPANY
510312(Standing proxy: Mizuho Bank, Ltd.)STATE STREET BANK AND TRUST COMPANY
510311(Standing proxy: Mizuho Bank, Ltd.)
Hitoshi Imamura(Standing proxy: Mizuho Securities Co., Ltd.)STATE STREET BANK CLIENT OMNIBUS OM04
(Standing proxy: The Hongkong and Shanghai Banking
Corporation Limited Tokyo branch)
STATE STREET BANK WEST CLIENT-TREATY
505234(Standing proxy: Mizuho Bank, Ltd.)

Notes: 1. 5,500,000 shares out of 5,620,000 shares held by SMBC Trust Bank Ltd. as a trustee of regulated securities in trust
pertain to a trust agreement between Masaaki Arai, President & CEO of the Company, as the settlor and beneficiary,and SMBC Trust Bank Ltd. as the trustee, the purpose of which is the management of shares. Therefore, the numberof shares effectively held by Masaaki Arai is 73,737,200 shares and the shareholding ratio is 36.30%.
2. The Company holds 3,485 shares as treasury shares.

* This Annual Financial Summary is translated into English for the convenience of readers outside Japan and the information containedin this report is based on statutory materials in Japanese which are prescribed by Tokyo Stock Exchange and voluntary IR materials.
* While every best effort has been made to provide a translation meeting the quality standards required of professionals, the Company
does not guarantee it is 100% accurate. Therefore, please verify the original Japanese text for any final judgments made based on thisinformation.

38