Businessperformance<FY2020 3Q>

Performance
forecasts< FY2020 >PublicOffering Both revenue and income achieved record highs for the third
quarter. Sales of single-family homes were robust amid thepromotion of a “new lifestyle.”
Revenue:¥ 383.5billion〔 4.6% YOY〕

Operating income:¥ 53.2 billion〔56.1% YOY〕

Profit attributable to owners of parent :¥ 41.8 billion〔71.1% YOY〕

 The Company forecasts further record highs in revenue andincome for the eighth consecutive year
Revenue:¥ 570.0 billion〔 5.5% YOY〕

Operating income:¥ 77.0 billion〔40.2% YOY〕

Profit attributable to owners of parent :¥ 59.0 billion〔49.7% YOY〕

 The Company conducted a public offering totaling 44.6 billion
yen, aimed at strengthening financial capabilities andimproving the strength and flexibility of its financial position
for future growth.

→ Eyeing Open House Group Revenue of One Trillion Yen Number of brokerage transactions, which is a leading indicator, remained strong in July,making year-on-year growth of 55.5%.
 Customers who want work space tend to re-acknowledge the utility value of single-family
homes.
YOY increase rate in number of brokerage transactions and new members registered *new members registerednumber of brokerage transactions

91.0%

52.3%

55.5%

June

July

61.9%

53.0%
29.0%

96.5%

32.3%
17.7%

43.0%

19.6%
(39.1)%

1Q

2Q

April

May
FY2020＜Background ＞
 An increase in hours spent at home with families has led to more opportunities to talk about home.
 An increase in teleworking has caused greater interest in single-family homes with a large numberof rooms.
 A shift from urban areas to the suburbs has been limited due to such factors as convenience,
lifestyles, education, and medical services.
*Since the posting of revenue from brokerage transactions takes 3 to 4 months, contracts that exceeded plan in/after May will be reflected in revenue
in the next fiscal year.

 Conduct a public offering totaling 44.6 billion yen with a dilution ratio of 8.2％ * Through equity financing, strengthen financial capabilities and improve strength andflexibility of financial position for future growthOpen House Group Growth Strategy
Aim for further growth based on coreSingle-Family Homes Related Business

Expand business through M&A

Implementing Equity Financing
Strengthen financial capabilities

Improve the strength and flexibilityof financial position

 Strengthen financial capabilities to enable the Company to invest in high-growthbusinesses Secure financial capabilities by repaying a portion of interest-bearing debt

 The Company aims to promptly achieve 1 trillion yen in revenue
as an independent general real estate company.
*(The dilution ratio was calculated based on the number of new shares issued, including approx. 2.0 billion yen third-party allotment inconnection with over allotment scheduled for late August.) Both revenue and income achieved record highs for the third quarter.
 In line with the acquisition of shares of Pressance Corporation, the Company posted16,322
million yen in equity method in earnings of affiliates.
(Million yen)

FY2019 3Q

FY2020 3Q<2018/10-2019/06>
Actual<2019/10-2020/06>% ofrevenue

ActualInc.(Dec.)% ofrevenue

Revenue

366,608―

383,551―

4.6%

Operating income

36,3859.9%

38,445

10.0%

5.7%

Ordinary income

34,105

9.3%

53,241

13.9%

56.1%

Profit attributable toowners of parent

24,484

6.7%

41,896

10.9%

71.1%

 The single-family home related business boosted operating results while other segments
also made progress on schedule.

 Sales in the condominiums business in FY2020 have grown steadily despite a year-on-year
decline since completion of construction concentrates in the fourth quarter.
(Million yen)

FY2019 3Q

FY2020 3Q<2018/10-2019/06＞<2019/10-2020/06>

ActualActualRatio

Inc.(Dec.)

Ratio

Revenue

366,608

100.0%

383,551

100.0%

4.6%

Single-family homes related business

246,932

67.4%

274,021

71.4%

11.0%

Condominiums

26,508

7.2%

12,8483.3%(51.5)%

Property resales

74,89320.4%

80,169

20.9%

7.0%

Others (including U.S. real estate business)

18,316

5.0%

16,5894.3%(9.4)%

(41)

―

(77)

―

―

% of revenue

Inc.(Dec.)

Adjustments

Actual% of revenue

ActualOperating Income

36,3859.9%

38,445

10.0%

5.7%

Single-family homes related business

22,8359.2%

28,969

10.6%

26.9%

Condominiums

3,863

14.6%

489

3.8%

(87.3)%

Property resales

8,217

11.0%

8,444

10.5%

2.8%

Others (including U.S. real estate business)

2,197

12.0%

1,402

8.5%

(36.2)%

Adjustments

(728)

―

(859)

―

―

 In addition to an increase in price and a decline in the number of new condominiums supplied, thepercentage of compact condominiums has been on the rise.
 Amid the promotion of a new lifestyle, families tend to have higher demand for single-family homes.
Changes in the average price for new condominiums in Tokyo’s 23
wards and average price for our single-family homes (built-for-sale)

Operating income (¥billion)

Revenue (¥billion)(Million yen)

246.9

90

28.9

274.0

80

22.8

70

18.8

151.6

Average price for new condominiums
in Tokyo’s 23 wards

60
50

43.32
45.41

40
30
FY18 3Q

FY19 3Q

FY20 3Q

FY18 3Q

FY19 3Q

FY20 3Q

FY2018 3Q FY2019 3Q FY2020 3Q
17/10-18/6

18/10-19/6

19/10-20/6

Inc.
(Dec.)

Revenue (¥million)

151,690

246,932

274,021

11.0%

Gross profit(¥million)

28,161

37,23744,08918.4%

Gross profit margin

18.6%

15.1%

16.1%

2011

44.77

44.35

81.90
72.86

70.89

67.32

53.39

71.42

66.29

43.88 44.04

43.48

Average price for our single-family homes (built-for-sale)
2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes are for the period
October – September. Condominium prices for 2020 are for the January – June period.
Prices of our homes for 2020 are for the October 2019- June 2020 period in Tokyo metropolitan area.

Changes in the number of new condominiums suppliedin Tokyo’s 23 wards

28,34030,00020,00020,774

19,410 19,398

18,472

1.0pt

YoY change
for Jan-Jun(29.6)%
14,764 16,017 15,957 13,737

10,000Operating income (¥million)

18,84822,83528,96926.9%

Operating income margin

12.4%

9.2%

10.6%

1.3pt

3,845
0
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: ： calendar-year basis for the January – December period, January-Junefor FY2020 only In line with an increase in teleworking, there are growing needs for work space.
 With a large number of rooms and easy renovation, the utility value of single-family homes is
expandable.
＜Examples of construction ＞

Installation of a study room by effectively using asmall space such as at the end of the hallway

Comfortably staying at home on a rooftop balcony!
Suitable for refreshing yourself while teleworking andenjoying family time Despite the impact of the novel coronavirus, the number of brokerage transactions increased steadily,up 18.2% year on year.
 The Company intends to open seven new sales centers in FY2020 to operate a total of 49 sales centers.
Number brokered and YOY increase rate in each quarter
29.8%

29.1%
30.1%
21.6%
21.8%
19.6%

26.3%
25.2%

＜ Tokyo region＞

18.2%
17.7%

20.0%

963 1,053 1,249 1,115 1,171 1,370 1,521 1,440 1,401 1,612 1,798
1Q
FY18

2Q

3Q

4Q

1Q
FY19

2Q

3Q

4Q

1Q
FY20

2Q

3Q

No. of sales centers of each area
16/10-17/9

17/10-18/9

18/10-19/9

As of
2020.8.14

Tokyo

16

17

19

21

Kanagawa Prefecture

7

10

12

12

Aichi Prefecture

2

3

5

7

Saitama Prefecture

―

2

4

4

Chiba Prefecture

―

―

1

2

FY2017FY2018FY2019Fukuoka
Ropponmatsu
TenjinFukuoka Prefecture

―

―

1

3

Opened in FY2019

Total

25

32

42

49

Opened in FY2020

Ohashi＜Fukuoka region＞

Aichi Tokyo
Sakae Gokiso Motoyama
Aratamabashi Kanayama
Osone

Honjin＜Nagoya region＞

 As a result of experiencing no impact of the novel coronavirus in the construction process,numbers delivered have steadily grown.
Revenue (¥billion)

126.9

FY18 3Q

178.4

154.9

FY19 3Q

Gross profit (¥billion)

FY20 3Q

23.8

24.6

FY18 3Q

FY19 3Q

Lands

Built-to-order houses

Others

Total

29.7

18.8%

FY18 3Q

FY20 3Q

Number delivered

15.9%

16.7%

2,634

FY19 3Q

FY20 3Q

FY18 3Q

3,848

3,302

FY19 3Q

FY20 3Q

79,784

Inc.
(Dec.)
18.6%

1,574

1,888

314

43.3

42.7

42.3

(0.5)

Revenue (¥million)

70,26670,90981,00914.2%

Number delivered

1,621

1,728

1,960

232

Unit Price(¥million)

43.3

41.0

41.3

0.3

Revenue (¥million)

12,324

16,356

17,226

5.3%

Number delivered

866

1,167

1,172

5

Unit Price(¥million)

14.2

14.0

14.7

0.7

Revenue (¥million)

457

427

442

Revenue (¥million)

126,908
23,886

154,960
24,629178,469
29,779

3.5%
15.2%

18.8%

15.9%

16.7%

0.8pt

2,634

3,302

3,848

546

FY2018 3Q

By type of sale
Built-for-sale houses

Gross profit margin (%)

17/10-18/6

Revenue (¥million)

43,852

Number delivered

1,013

Unit Price(¥million)

Gross profit (¥million)
Gross profit margin
Number delivered (builtfor-sale houses + lands)

FY2019 3Q
18/10-19/6

67,263

FY2020 3Q
19/10-20/6

20.9%

Open House Architect Number of contracts with corporations in the Tokyo metropolitan area as well as OHD contracts
have steadily grown.
 Established No. 1 positions by the number of properties delivered under single-family homes
construction contracts to corporations in the Tokyo metropolitan area
Revenue (¥billion)

28.3

FY18 3Q

32.8

Number delivered to OHD

39.7

Number delivered

1,055

953

2,114

594

FY19 3Q

FY20 3Q

FY18 3Q

FY19 3Q

FY2018 3Q FY2019 3Q
17/10-18/6 18/10-19/6

FY20 3Q

FY18 3Q

FY2020 3Q
19/10-20/6

Inc.
(Dec.)

Revenue (¥million)

28,38832,82539,77621.2%

Gross profit (¥million)

3,329

3,672

4,520

23.1%

Gross profit margin

11.7%

11.2%

11.4%

0.2pt

Number delivered

2,114
594

2,518
953

3,033
1,055

515
102

* Number delivered to OHD* Number delivered refers to the number of properties delivered under singlefamily homes construction contracts to corporations.
Number delivered to OHD on the lower line

2,518

FY19 3Q

3,033

FY20 3Q

Composition ratio of OHD contracts
37.8%
28.1%

FY18 3Q

FY19 3Q

34.8%

FY20 3Q

 Gross profit margin improved thanks to effects of the improved purchasing standard.
 Sales of properties with a scheduled delivery in the fourth quarter made progress on schedule.

Revenue (¥billion)
65.5

63.1

Number of brokerage transactions on Hawk One’s Unitsin each Open House Sales Center (contract basis)

Gross profit margin (%)
12.3%

14.2%

FY2020 3Q (2019/10-2020/06)

10 units and more

Under 10 units＜Tokyo area＞
Urawa

Musashiurawa

FY19 3Q

FY20 3Q

Revenue (¥million)
Gross profit (¥million)

FY19 3Q

FY20 3Q

FY2019 3Q
18/10-19/6

FY2020 3Q
19/10-20/6

Inc.
(Dec.)

65,521

63,127(3.7)%

8,055

8,973

11.4%

Noborito

Number delivered*Including Lands, Built-to-order houses

Number of sales*Contract basis

Number delivered
Number delivered to OHD

12.3%
1,673

14.2%
1,647

1.9pt
(26)

Kinshicho-kita

OJi
ShibuyaSasazuka
Sakurashinmachi

Mizonokuchi

Gross profit margin

Shinkoiwa

Kichichoji
SengawaJiyugaoka

KamataMotosumiyoashi

Shin-Kawasaki

Tunashima

299

1,650
481

49

Kawasaki

182

Tsurumi
Hodogaya

Yokohama
Kamiooka

Kinshicho-minami
NishikasaiooimachiMusashikosugi

Shin-Yokohama

1,601

Urayasu

Nippori

Ikebukuro

NakanoMotoyawata

Kitasenju
AkabaneNerimaKameari

Urawachuo

Kawaguchi＜Nagoya area＞
HonjinSakae

Osone
Motoyama
GokisoKanayama

Aratama New condominiums located in very convenient urban centers have highdemand and sales are steadily growing.
 The business is making progress on schedule toward the fourth quarter,
in which construction completion concentrates.

Revenue (¥billion)

Gross profit (¥billion)

26.5

Operating income (¥billion )

6.5

21.0

4.7

390

380

3.8

12.8

Number delivered

214

2.2

2.7

0.4
FY18 3Q

FY19 3Q

FY20 3Q

FY18 3Q

FY19 3Q

FY18 3Q

FY20 3Q

FY2018 3Q FY2019 3Q FY2020 3Q
17/10-18/6 18/10-19/6 19/10-20/6

Inc.
(Dec.)

Revenue (¥million)

21,05826,508

12,848(51.5)%

Gross profit (¥million)

4,707

6,531

2,782

(57.4)%

Gross profit margin

22.4%

24.6%

21.7%

(3.0)pt

Operating income (¥million)

2,205

3,863

489

(87.3)%

Operating income margin

10.5%

14.6%

3.8%

Number delivered

380

390

Unit price(¥million)

55.2

67.5

FY19 3Q

FY20 3Q

FY18 3Q

FY19 3Q

FY20 3Q― Major condominiums delivered in FY2020 ―Name

Units Average priceOpen Residencia Yotsuya (Tokyo)

21¥90million

Open Residencia Yoyogi-koen (Tokyo)

38¥90million(10.8)pt

Open Residencia Sakurayama (Nagoya)

36¥40million

214

(176)

103

¥30million

59.5

(8.0)

Open Residencia Shirokibara Station Front(Fukuoka) Demand is growing steadily, backed by investors who eye the current
situation as a good opportunity for investments.
 Since the Company focuses on rental condominiums in metropolitan
areas, there is only a minor impact of the novel coronavirus.

Revenue (¥billion)
78.5

FY18 3Q

74.8

FY19 3Q

Gross profit (¥billion)

80.1

12.8

FY20 3Q

FY18 3Q

11.7

FY19 3Q

FY2018 3Q FY2019 3Q FY2020 3Q
17/10-18/6 18/10-19/6 19/10-20/6

Operating income (¥billion )Number delivered
209

12.0
9.6

FY20 3Q

Revenue (¥million)

78,57274,89380,1697.0%

Gross profit (¥million)

12,813

11,702

12,0122.6%

Gross profit margin

16.3%

15.6%

15.0%

(0.6)pt

Operating income (¥million)

9,610

8,217

8,444

2.8%

Operating income margin

12.2%

11.0%

10.5%

(0.4)pt

Number delivered

209

182

164

(18)

Unit Price(¥million)

368

400

478

78

164

8.2

FY18 3Q

Inc.
(Dec.)

182

8.4

FY19 3Q

FY18 3Q

FY20 3Q

FY19 3Q

FY20 3Q

Breakdown of properties owned (as of the end of Jun 2020)
By property size*

By useBy location

7

5
34

31
Ｎ=97
61

Ｎ=97
6

≤¥100 MIL

Condminium>¥100 MIL≤¥500 MIL

Office building>¥500 MIL

Complex building＊Based on book values at the end of Jun 2020.

57

34

Ｎ=97

51

5
Tokyo
Kanagawa
Kansai, Chubu, Kyushu
Other

(U.S. Real Estate Business Abundant achievements, especially in the management of properties in
the local site, have made the Company differentiate from othercompanies.
 Sales grew steadily as a net investment for both corporations andindividuals.
Revenue (¥billion)
18.3

16.5

FY20 3Q

2.1

3.6

2.2

FY19 3Q

FY18 3Q

FY19 3Q

FY18 3Q

291

258

1.5

FY20 3Q

FY2018 3Q FY2019 3Q FY2020 3Q
17/10-18/6 18/10-19/6 19/10-20/6

1.4

FY19 3Q

FY20 3Q

FY18 3Q

FY19 3Q

FY20 3Q

Business model-One-Stop Service

Inc.
(Dec.)

Revenue (¥million)

9,748

18,316

16,589(9.4)%

Gross profit (¥million)

2,255

3,784

3,659

(3.3)%

Gross profit margin

23.1%

20.7%

22.1%

1.4pt

Operating income (¥million)

1,570

2,197

1,402 (36.2)%

Operating income margin

16.1%

12.0%

8.5%

(3.5)tNumber delivered *

258

451

291

(160)

multi family homes
included above

―

4

9

5

* Figures for U.S. Real Estate Business are shown..

Number delivered
451

3.7

9.7

FY18 3Q

Operating income (¥billion)

Gross profit (¥billion)

Our service for theadministration of local
properties andsupport for sales.

Selection ofproperties

Administration ofproperties
Support for the wholeprocess fromconclusion of anagreement to the endof a transaction

Purchaseprocess

Offering ofproperties that
our local offices
selected

Funding

Introduction offinancial institutions,and loans from ourGroup company arealso available.

(Million yen)

FY2019 3Q

FY2020 3Q

2018/10-2019/06

2019/10-2020/06

Actual% ofrevenue

SG&A expenses

22,967

6.3%

6.3%

1,378

Personnel expenses

6,695

1.8%

2.0%

786

Share of profit ofentities accounted forusing equity method*

Sales commissions

3,708

1.0%

0.9%

(411)

Others

Office expenses

2,614

0.7%

0.7%

252

Advertisingexpenses

1,618

0.4%

0.5%

Promotion expenses

1,036

0.3%

Others

7,294

2.0%

Actual% ofrevenueInc.
(Dec.)FY2019 3Q

FY2020 3Q

2018/10-2019/06

2019/10-2020/06

Actual% ofrevenue320

0.1%

4.4% 16,482――

4.3% 16,322

320

0.1%

0.1%

159

Non-operating
expenses

2,600

0.7%

0.5%

(593)

120

Interest expenses

1,339

0.4%

0.4%

343

0.2%

(247)

Commission expenses

764

0.2%

0.1%

(572)

2.1%

878

Others

497

0.1%

0.0%

(364)

Non-operating
income*Breakdown:

Negative goodwill of PressanceCorporation
Profit/loss of Pressance Corporation
attributable to the Company

Actual% ofrevenueInc.
(Dec.)

13,7082,614

(Million yen)Sep 30,2019

Jun 30,2020

Inc.
(Dec.)

Current assets

424,766

474,62249,855

Liabilities

307,837

54,901

Cash and deposits

135,354

150,662

15,307

Current liabilities

162,348

32,753Inventories

250,054

280,30230,248Non-current liabilities

145,488

22,147

Others39,35743,656

4,299

Non-current assets

21,10660,05038,944

Property, plantand equipment

Net Assets

138,067

33,893

4,990

5,091

100
Shareholders’ equity

33,983

3,456

3,166

138,263

Intangible assets(290)

Investments andother assets

12,65951,792

39,133

Valuation andtranslation adjustments

(196)

(89)

31

26

(5)
Total liabilities and net
assets445,904

88,795

Deferred assets

445,904

Total assets

534,699

88,795

Jun 30, 2020

Inc. (Dec.)

Sep 30,2019

Jun 30,2020

Inc.
(Dec.)＜Safety index＞(times)Sep 30, 2019

Sep 30, 2019

Jun 30, 2020

Inc. (Dec.)

D/E ratio

1.8

0.0pt

Equity ratio

30.9%

1.2pt

Net D/E ratio*

0.8

0.1pt

Net equity ratio**

44.4%

0.3pt

* Net debt/equity ratio: (loans payable + corporate bonds – cash & deposits) / net assets,** Net equity ratio ：Equity ratio ／(total assets－ cash & deposits）

(Million yen)

End of FY2017(Sep 30, 2017)

End of FY2018(Sep 30, 2018)

End of FY2019(Sep 30, 2019)

End of 3Q FY2020(Jun 30, 2020)

Single–family homes related

61,667

137,991

140,560

155,31855.4%

14,758

Condominiums

40,291

43,32235,06554,32419.4%

19,258Property resales

38,87142,87353,69149,062

17.5%(4,629)Others

4,064

9,084

20,735

21,632

7.7%

896

Total

144,894

233,272

250,054

280,338

100.0%

30,284

233.2

256.6

253.6

265.0

250.0

254.0

(Ratio)270.1

Inc. (Dec.)

280.3

144.8

(Billion yen)

FY17 4Q
61.6

FY18 4Q
137.9

FY19 1Q
143.3

FY19 2Q
139.8

FY19 3Q
142.3

FY19 4Q
140.5

FY20 1Q
144.9

FY20 2Q
146.3

FY20 3Q
155.3

Condominiums

40.2

43.3

45.6

45.1

45.5

35.0

39.0

45.0

54.3

Property resales

38.8

42.8

55.7

52.5

57.2

53.6

45.5

54.4

49.0

Others

4.0

9.0

12.0

16.0

19.9

20.7

24.6

24.3

21.6

Single–family homes related Revisions were made by incorporating the investment profit (including negative goodwill) ofentities accounted for using equity method arising from the acquisition of PressanceCorporation’s shares and adverse impacts from the novel coronavirus.
(Million yen)

FY2019FY2020(2018/10-2019/9)*1＜Revised＞ FY2020 *2(2019/10-2020/9)(2019/10-2020/9)

ActualInc. (Dec.)

Forecast

Inc. (Dec.)

Difference

Forecast

Inc. (Dec.)

Revenue

540,37638.3%

600,000

11.0%(30,000)

570,000

5.5%

Operating income

57,78122.1%

65,50013.4%(3,500)62,000

7.3%

Ordinary income

54,92819.3%

63,00014.7%

14,00077,00040.2%

Profit attributable toowners of parent

39,40723.9%

44,10011.9%

14,90059,00049.7%

EPS (yen)351.22―398.92――533.45―

Annual dividends per share
(yen)

63.00

14.00

80.00

17.00

―

80.00

―

Payout ratio

17.9%

―

20.1%

―

―

15.0%

*3

*1 Forecasts for FY2020 were announced on February 14, 2020. *2 Revised forecasts for FY2020 were announced on May 15, 2020.
*3 The dividend payout ratio excluding profit earned through the acquisition of Pressance Corporation’s shares is 21.1％―

 The Company aims to primarily establish complementary relationships
with the affiliate by focusing on regional and product developments.

Pressance Corporation
Operating areas

Major sales items

Strong in the Kinki, Tokai and
Chukyo regions

Strong in the Tokyo metropolitan
area

Condominiums (for the purpose ofSingle-family homes

Operating in areas ranging from the Tokyo
metropolitan area to Kyushu

investments or living by families)in addition, management of rents, buildings, etc

Condominiums: 7,120 units
Numbers delivered Hotels, other housing, etc.: 1,041 units(Actual results as of FY ended March, 2020)<Overview >Open House

Operating in the Tokyo metropolitan area, Osaka,
Nagoya, Fukuoka
in addition, condominiums, property resales
business, etc.

Single-family homes: 8,146 buildings
Condominiums: 949 units(Actual results as of FY ended September 2019)

Name : Pressance Corporation Co., Ltd.
Location: 1-2-27 Shiromi, Chuo-ku, Osaka city
Date of establishment: October 1, 1997
Name and title of the representative : Yutaka Doi, President and Representative Director
Number of Employees : 665 (as of March 2020)
Capital : 4,290 million yen（as of March 31, 2020)
Lines of business:
Planning, development and sales of condominiums for investment and condominiums for families
Stock exchange listing: First Section of the Tokyo Stock Exchange（code:3254）

 The Company acquired Pressance Corporation’s shares accounting for 31.9% of theaggregate number of voting rights, and converted Pressance Corporation to its equitymethod affiliate.
(Million yen)

FY2019(2018/4-2019/3)
ActualInc. (Dec.)

FY2020(2019/4-2020/3)
ActualInc. (Dec.)First half of FY2021(2020/4-2020/9)
Forecast

Inc. (Dec.)

Revenue

160,58019.8%

224,01139.5%

102,288(18.4)%

Operating income

27,11833.2%

32,60920.2%

16,080(32.1)%

Ordinary income

26,531

33.6%

31,985

20.6%

15,469(33.9)％

Profit attributable toowners of parent

18,29633.0%

21,892

19.7%

10,665(31.9)％

Total assets

301,942

56,543

310,779

8,837

Net assets

94,61819,446116,690

22,071 Impacts by the novel coronavirus on actual demand for singe-family homes related andcondominium businesses are deemed temporary.
 Impacts on property resales business and other investment-related real estate businesses are
forecast with a conservative viewpoint.
(Million yen)

FY2019FY2020 *1＜Revised＞ FY2020 *2(2018/10-2019/9)(2019/10-2020/9)(2019/10-2020/9)

ActualInc. (Dec.)

Forecast

Inc. (Dec.)

Difference

Forecast

Inc. (Dec.)

Revenue

540,37638.3 600,000

11.0%(30,000)

570,000

5.5%

Single-family homes
related business

340,52863.0 390,000

14.5%(12,000)

378,000

11.0%

Condominiums

60,956

11.3

58,000(4.9)%―

58,000(4.9)%

Property resales

108,41020.1 125,000

15.3%(15,000)

110,000

1.5%

Others (including U.S.
real estate business)

30,5385.7

27,000(11.6)%(3,000)24,000(21.4)%

(57)

―

0

―

―

0

―

Adjustments*1 Forecasts for FY2020 were announced on February 14, 2020.
*2 Revised forecasts for FY2020 were announced on May 15, 2020.

 Customer needs are changing amid the promotion of a new lifestyle.

 The Company proposes functions that customers want from housing from the perspectives
unique to single-family homes.
Wash hands immediately!

Abundant storage space

Work space for teleworking

Responding to needs to wash your hands rightafter arriving home by installing a washbasin on
a traffic line from the entrance to the living room.

Securing abundant storage
space by effectively using
the attic, etc.

Providing a calm and functional spaceby effectively using sloping ceilings
and a window.

Contribution to resolving social issues:

Guided by the corporate philosophy of “Committed to pursuing 'Houses that customers want’ honestly and constantly”,
the Group has engaged in business with the mission to leave Japan as a place where ordinary working people can havehouses in urban areas to the next generation. The Group believes that providing houses that balance convenience, agood living environment, and price in urban areas at an affordable price will lead to creating not only business values
but also social values.
Note: The aforementioned examples are some of the examples including options, and are not equipped in all houses as standard functions.

 The Company has developed and started operating a fully automated online flyer creation
system that is available in a contact-free manner.
 The use of AI/RPA has improved work efficiency (reduced time needed for creating flyers by 2,880
hours/year and time needed for screening by 900 hours).

Flyer creation flow

Persons in charge communicate
names of subject properties to AI
with voice or text.

RPA collects information necessary for
flyers, AI creates flyers and outputs themin PDF format in 2-3 minutes, and a QR
code will be issued after obtaining
approval for advertisement screening.

Purpose of development of the system:

Customers are able to check flyers
in a contact-free manner byreading a QR code with theirsmartphone.

There has been a culture in the real estate industry to directly hand out paper-based flyers that advertise properties tocustomers. In order to enable customers to feel safe when they look for their houses in a new lifestyle, the Company has
developed a system that uses contact-free digital flyers through tablet devices and other tools. In addition, hours that are
freed up by improving work efficiency will be used to provide further services in the future.

 Holding of Spring Break Picture Contest with the theme of “Future Dream” targeting
elementary-schools students

 Bringing the joy of engaging in activities to children by receiving 1,101 applications.

Background to activities:

The Company held a picture contest with the theme, “Future Dream” with the intent to encourage elementary-school
students, who study hard for their future dreams during the spring break that became longer than usual due to theprevention of the spread of the novel coronavirus, and had received 1,101 applications. The Company also heard thatelementary students seemed to enjoy drawing while thinking about their own future. The Company will keep on
encouraging people who work hard.

Results:

Application period: March 23, 2020 (Monday) - April 30, 2020 (Thursday)
Applicants: A total of 1,101 applications from children ranging from new first graders of elementary schools to new first
graders of junior high schools.
Award winners: On May 24 (Sun), a travel coupon worth 1 million yen was presented to a total of seven awardees one
person from each grade, after conducting a strict examination.

 As part of activities to contribute to local communities, the Company distributed a total of
10,000 bottles of Yakult (a probiotic milk beverage) to children and after-school program staff.
 The program was implemented in cooperation with governmental agencies, Yakult
Headquarters, and others.

Background to activities:

In line with the spread of the novel coronavirus, schools have taken various measures, such as temporary closure,staggered attendance, and shortening school hours. As a result, the daily lives of children and after-school program staff
have changed dramatically. The Company implemented this program with the goal of cheering for everyone throughsports and lactobacilli beverages by making the most of its relationships with The Tokyo Yakult Swallows, a team whose
top sponsor is the Company.
The Company will continue to actively conduct activities that contribute to local communities with close ties with theCompany’s business.

Overview of Yakult distribution:

Schedule: June 24, 2020 (Wednesday) – July 3, 2020 (Friday)
Distributed to: Approx. 90 locations in total, including all after-school clubs in Shibuya-ku, all after-school programs in
Nakano-ku, after-school programs located near the Company’s Sales Centers, children’s centers,
and children’s cafeterias.
No. of beverages distributed: 10,000 bottles of “Yakult 400LT”

 The profit goal for the final year was revised upward after three revisions since the formulation of the MidTerm Business Plan in November 2017.
 Fiscal year ending September 30, 2020: Revenue: ¥500 billion → ¥570 billion; profit attributable to ownersof parent: ¥40.0 billion → ¥59.0 billion.
600

540.3

Total revenue
Others77.0

Property resales

400

Condominums

390.7

Single-family homes related
Profit attributable to owners of parent

59.0

247.2

40

179.3

200

39.4

112.1

96.9

FY2013

80

60

54.9

304.6

Ordinary Income(¥ billion)

570.0

20

FY2014FY2015FY2016FY2017FY2018FY2019FY2020 plan

Single-family homes
related

61.1

69.2

116.7

155.0

187.3

218.5

340.5

378.0

Condominiums

27.1

25.7

20.0

19.0

26.4

49.3

60.9

58.0

Property resales

6.9

16.5

41.7

72.8

88.9

107.4

108.4

110.0

Others

1.7

0.6

0.7

0.4

1.8

15.4

30.5

24.0

Total revenue

96.9

112.1

179.3

247.2

304.6

390.7

540.3

570.0

Ordinary income

9.1

12.8

20.2

29.1

36.1

46.0

54.9

77.0

Profit attributable toowners of parent

5.6

7.7

12.6

18.7

24.7

31.8

39.4

59.0

2013.9-2017.9
Revenue

CAGR:33.1%

2017.9-2020.9
Revenue

CAGR:23.2%

0Basic policies
 We strive to become a real estate company that is needed by society by achieving sound operating performance and businessexpansion through the continued offering of products that customers demand.
 We aim to further raise the corporate value by optimizing business portfolios focused on the single-family homes related business.

Initiatives(1) Bolstering of competitiveness of the single-family homes related business as the Company’s mainstay
 Expansion of business development⇒ 1. Expanded the business area to Saitama Prefecture, the Fukuoka area, and Chiba Prefecture and boosted the market
share in the existing business areas.
 Strengthening of functions for development and construction⇒ 2. The number delivered by the Group as a whole increased to the 9,000-unit level annually.
 Enhancement of the Group management (⇒ 3. Improved asset and sales efficiency through selling Hawk One properties through the Company’s brokerage.
(2) Formation of business portfolios reflecting changes in external environment
 Bolstering of the condominiums business⇒ 4. Expanded condominium development in Nagoya.
 Sustainable growth of property resales business⇒ 5. Made conservative projections temporarily, but results exceeded the previous year’s results.
 New business development⇒ 6. Business performance of the U.S. real estate business increased significantly.
(3) Strengthening of the management base to underpin corporate growth Recruitment of resources ⇒7. Hiring of new graduates: 298 persons in April 2019 and 279 persons (planned) in April 2020.
 Development of human resources for business management⇒ 8. Produced representative director of subsidiary and recruited outside
 Innovation on work style and enhancement of diversity⇒9. Improved productivity through the use of IT that leads to reduced working hours.
 Initiatives for sustainability ⇒ 10. Disclosed our approach to sustainability and the status of initiatives for sustainability.

Capital policies

Establishment of both capital efficiency and financial soundness

 Maintenance of high capital efficiency (Targeting the level of 30% ROE)
 Maintenance of sound financial strength to assure financial safety (Maintaining the capital adequacy ratio at or above 30%)
 Strengthening of shareholders return (Gradual increase in the dividend payout ratio, targeting the level of 20% for the fiscal year ending
September 30, 2020) Sustaining high capital efficiency (ROE: 30% level)
 Maintaining strong financial condition to ensure the safety of financial aspects (Equity
ratio: 30% or above)(billion yen)

300

250

38.4%

Equity ratio

Equity ratio: 30% or above

36.8%

200

29.2%
ROE

29.9%

150

25.2%

23.2%

31.1%

33.8%

33.6%

32.3%

27.0%

* Equity ration that reflect the share exchange
executed on October 1, 2018 : 28.8%

40

32.3%
30.9%

137.7
20

106.1

100

50

(%)

ROE: 30% level

82.9

29.9

37.0

47.4

63.7

Equity capital
00FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020plan

 We plan to gradually increase the dividend payout ratio, targeting 20% in the fiscal year
ending September 30, 2020.
 We will flexibly buy back shares with comprehensive consideration given to financial
strength, business performance, stock prices, etc.
* The dividend payout ratio excluding profit earned throughthe acquisition of Pressance Corporation’s shares is 21.1％

(yen)

200

17.2%
14.5%

13.5%

15.1%

¥49.0015.0%
10Dividends per shares¥32.50¥25.00

8.7%

¥6.25

¥80.00¥63.00

100

20

17.9%

14.7%

Payout ratio¥10.00(%)¥15.000

0FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020plan<Assumptions made in calculating indicator per share>
The stock splits (two-for-one stock split on June 28, 2013 and two-for-one stock split on July 1, 2015) are assumed to have been executed in the
beginning of the fiscal year ended September 30, 2013.
The dividends per share figures on page 3 of this presentation material are before the implementation of the stock splits for the two-for-one stock split on
October 1, 2019 (as of September 30, 2019) and based on different preconditions from the dividends per share figures on this page.
Figures in and after the fiscal year ending September 30, 2020 are calculated based on the number of shares (total number of shares issued – treasury
shares) as of September 30, 2019.

(units)

Number of units of Single family homes delivered

10000

9,026

8,146

8000
6000
4000
2000

2,874
924

976

FY13

FY14

4000

4,956
4,000 4,505

3000
2000

FY15

FY16

FY17

FY18

FY19

FY20
plan

1,099
1000

Number of units of condominiums delivered

1500

1,232
802

1000

547
500

405

311

304

949

530

631

FY13

FY14

FY14

FY15

FY16

1,522

FY15

FY16

FY17

FY17

FY18

FY19

FY20
plan

289
183

200

209

298

212
48

47
FY14

279

200

255

74

130

131

FY16

FY17

90

0

0
FY13

FY20
plan

400

108
25

FY19

248

400
300

FY18

Number of new graduates hired

Number of resale properties delivered(properties)

3,000

0

(persons)

FY13

1,258

487

0

100

2,642
2,263

0

(units)Number of employees(persons)

FY15

FY16

FY17

FY18

FY19

FY20
plan

FY13

FY14

FY15

FY18

FY19

FY20
plan

――Disclaimer ――This document contains forward-looking statements concerning future business performance. These statements include company
forecasts based on information available at the time of publication and involve potential risks and uncertainties. They do notconstitute a guarantee of future results. The information provided herein is subject to change without notice; no guarantees areprovided with regard to the accuracy or reliability of such information.
This document is provided for informational purposes only. It does not constitute a solicitation to invest.