Open House Group Co., Ltd.
Financial Results for the Second Quarter of the Fiscal Year Ending in September 2024
Conference Call and Financial Briefing Summary
The sales contracts for single-family homes have bottomed out, showing signs of◼

recovery (an increase of 15.6% compared to the same period last year, excluding
Meldia, a 4.2% increase). The strength of our in-house sales capabilities, coupled withinventory disposal ahead of other companies, has proven successful.
Large-scale provisions for conservative allocation of property resale (-4.9 billion yen),◼

a one-time impairment loss.
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Despite the weakening yen, the flow of investment in U.S. real estate remains robust.

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Pressance Corporation also exceeded its first-half plan.

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Steady execution of Meldia's PMI, leveraging the Group’s strong sales force.

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Significant increase in non-operating income, and an increase in special profit fromnegative goodwill, resulting in increased net profit for the second quarter.
With a focus on shareholder returns and EPS improvement, additional◼

implementation of a 10 billion yen share buyback is planned for the second half.
Additionally, there is a plan to advance the implementation of the next fiscal year's
20 billion yen buyback.
Conference Call for Analysts & Institutional Investors
Date and Time: May 15, 2024, 5:00 PM
Speaker: Kotaro Wakatabi, Senior Managing Director, CFO
Q&A:[Q. 1] Although the first-half performance has exceeded expectations, are there any plans torevise upward the full-year performance forecast?
[A.1] We haven't revised the full-year performance forecast. Considering the lower-thanexpected utilization rate of property resale in the first half, we see the first-halfoutperformance as a buffer.
[Q.2] What is the outlook for the gross profit margin for the full year in the single-family
home-related business?
[A.2] Given the continued disposal of inventory assets, it's challenging for the gross profit
margin to exceed the anticipated 15% for the full year. However, there are signs ofrecovery in sales contracts.

[Q.3] What are the reasons behind the recovery in sales contracts?
[A.3] Demand for single-family homes varies between urban centers and rural areas.
Inventories tend to be higher as you move further away from urban centers, and it
takes time to adjust supply and demand. Therefore, our company is consciously
sourcing more from central areas with higher demand.
[Q.4] I would like to hear about the trends in sales contracts by region, excluding Meldia andrental single-family homes.
[A.4] The Tokyo metropolitan area is performing well, but the Kansai region is experiencing
significant inventory adjustments, leading to a slowdown in growth rates. Rental singlefamily homes are decreasing, partly due to the investment timing of the buyer Kenedix.
[Q.5] What is the outlook for inventory assets and procurement in the single-family homerelated business for the next fiscal year?
[A.5] We anticipate better results for the next fiscal year as inventory adjustments areexpected to be completed.
[Q.6] I would like to inquire about the situation regarding impairments incurred in large-scale
projects of property resale.
[A.6] Impairments incurred in large-scale projects are temporary and have beenconservatively allocated. We have already progressed discussions on sales methods
and other related matters.
[Q.7] What are the factors leading to the allocation of impairments in property resale: adecline in income outlook or an increase in cap rates due to rising interest rates?
[A.7] We don't uniformly decide based solely on income returns. We also consider investor
purchase preferences and seek opinions from auditing firms to make judgments.
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[Q.8] Are there any changes in the attributes that contribute to the decrease in the numberof properties worth over 1 billion yen in property resale?
[A.8] The decrease in the number of properties worth over 1 billion yen does not reflect anychanges in investor attributes. Sales targeting inbound demand are also progressing
well and constitute approximately 20% of our portfolio.
[Q.9] How will the progress of Meldia's PMI be in the future?
[A.9] We are progressing with the replacement of inventory assets acquired in the past andreviewing procurement areas.
[Q.10] What is the nature of the 3.5 billion yen gain on the sale of investment securities?
[A.10] The gain on the sale of investment securities is related to the sale of unlisted stocks.
We consider it as income obtained through proactive engagement in M&A activities.

Consolidated Financial Highlights briefing
Date and Time: May 22, 2024 (Wednesday), 9:30 AM
Speakers: Masaaki Arai, President & CEO
Kotaro Wakatabi, Senior Managing Director, CFOManagement Policy and Environmental Awareness◼

Progress of Inventory Adjustment in Single-Family Home BusinessAlthough we have passed the worst period, the adjustment period for inventory still
continues to some extent, and it will take up this entire fiscal period.
Customer enthusiasm for purchasing remains high, and we're seeing a rebound in newcontract signings, which gives us optimism for improvement in the upcoming fiscal year.
Looking ahead, we anticipate ongoing competition, which may pose challenges
particularly for mid-sized companies. However, we believe there will be opportunities
after the inventory adjustment period ends.

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Investment Property Outlook
While long-term interest rates are rising, financial institutions maintain an aggressive
lending stance. As long as the current lending environment persists, the buoyancy of thereal estate investment market is expected to continue.
Investment in central urban area condominiums continues to attract funds frominvestors and wealthy individuals, leading to continued price increases. Althoughimpairments incurred in large-scale projects, these are viewed as individual andtemporary occurrences. For the U.S. business, the demand for real estate from wealthy
Japanese individuals seeking dollar assets remains strong, with continued growth
anticipated. We already manage a team of 200 local employees in the United States.
Given the difficulty for competitors to replicate our model, we believe we have acompetitive advantage over the next few years and aim to further expand our presence.

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Progress in Reformation of Governance and Compliance
The separation of sales activities from contract operations has had a significant impact.
A specialized department handling contract operations ensures proper explanations tocustomers, resulting in a decrease of approximately 30% in contract cancellations
compared to the previous period. Strengthening the quality management system forsingle-family homes has led to a reduction in the number of reported defects at the timeof delivery. We will continue to refine our internal management systems and focus oncontinuous improvement.

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Strengthening Recruitment Efforts
Labor shortages remain a significant challenge, and increasing the number of sales
representatives directly correlates with higher net sales for our company. While we faceddifficulties last year, we anticipate nearly double the recruitment this year. We haveassigned top sales personnel from each business unit to oversee recruitment efforts, andPresident Arai himself is committed to this initiative, resulting in a significant increase inrecruitment.

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Future M&A Strategy
Regarding Meldia, we believe we have made a successful M&A deal. While we receive
numerous inquiries for M&A discussions, our stance is not to acquire high-priced entities
but rather those that align with our company's vision. Our strength lies in swift decisionmaking, and we are recognized for our ability to make quick decisions. We aim toproactively pursue M&A opportunities by identifying promising ventures and executing
them promptly.

<Q&A>[Q.1] The gross profit margin for the single-family home-related business is lower thanexpected. What are the reasons for this, and what are the prospects for the gross profit
margin for the coming fiscal year?
[A.1] The prices of newly acquired land have not decreased as much as anticipated, which isa contributing factor. However, by acquiring land at prices lower than the current
inventory, the gross profit margin will gradually improve. Additionally, actively sellingto progress inventory adjustment can also increase market share. While it's premature
to discuss next year's outlook, we believe we have overcome the worst in terms of sales.

[Q.2] Considering the balance changes in inventory assets for the single-family home-related
business, what is the appropriate inventory level?
[A.2] Regarding the appropriate inventory level for inventory assets, we believe we need toincrease procurement and continue purchasing moving forward.
[Q.3] Regarding future branch expansions.
[A.3] We aim to strengthen our presence in the Kansai region. While we currently operate in
Ota City, Gunma Prefecture, we have realized an oversupply situation, acknowledging
the difficulty of conducting business in rural areas. We believe it's crucial to operate indensely populated areas.
[Q.4] Regarding the outlook for the condominium business from the next fiscal year onwards,
land acquisition, and rising construction costs.
[A.4] We sell compact condominiums in urban areas where demand is strong, but due tolimited supply, selling prices are increasing, and profit margins are expected to remainunchanged.
[Q.5] Is it possible to catch up with the absorption rate of net sales for property resale in thesecond half, despite it being low compared to the plan?
[A.5] We believe that the current inventory status and product strength meet the necessaryrequirements for catching up.
[Q.6] Can you give us more details regarding the properties where impairments wererecorded in the property resale business?
[A.6] We are not particularly adept at long-term business ventures, and while we attempted
ventures outside our expertise, they did not go as initially planned, resulting in therecording of impairments. We are already progressing discussions on sales methods.
[Q.7] Future outlook for impairments in the property resale business.
[A.7] Significant impairments are temporary. There may be minor impairments in the future,but they will be within the margin of error.
[Q.8] Regarding future M&A activities, what is the outlook?
[A.8] There are M&A opportunities emerging in the United States. Our policy is not to acquire
high-priced entities but to purchase those that align with our vision. We are considering
companies in the U.S. real estate business where synergy effects can be expected.

[Q.9] Regarding future resource allocation for wealthy clientele businesses.
[A.9] We have allocated resources in line with upgrading governance and compliance levels,
limiting resources available for wealthy clientele businesses. However, we plan tofurther focus on this area, expanding into U.S. real estate, NOT A HOTEL, and propertyresale.
[Q.10] Future policies for the RC business.
[A.10] Our RC business is comparable in scale to mid-sized general contractors, at 40 billion
yen. We aim to utilize the construction functions of the group further to contribute to
the development of our business.
[Q.11] Future developments for Meldia's apartment business.
[A.11] It is a high-profit margin business, and we aim to continue expanding it in the future.
We will manage the business period and handle construction through Open House
Architect.
[Q.12] Regarding talent acquisition, is there a policy shift towards focusing more on hiring
new graduates rather than experienced hires? What are the reasons for this?
[A.12] While we will continue with experienced hires, there are instances where the mindsetof experienced employees from other companies, based on their norms, does not alignwith our company culture. Therefore, we intend to strengthen our recruitment of new
graduates in the future. We aim to actively hire individuals who aspire to grow alongwith our company.
[Q.13] What is the background behind the increase in recruitment numbers?
[A.13] The increase in recruitment numbers is due to direct involvement from the president
himself, who has taken leadership in this initiative.