Open House Group Co., Ltd.
Financial Results for the Third Quarter of the Fiscal year Ending September 2024
Conference Call for Analysts & Institutional Investors
Date and Time: Aug13, 2024, 4:30PM
Speaker: Kotaro Wakatabi, Senior Managing Director, CFO
Conference Call Summary■ In the single-family homes business, sales have bottomed out and an improvement in thegross profit margin is expected in the next fiscal year.
■ In the condominiums business, high sales prices persist in both the Tokyo metropolitanand Kansai regions, while sales remain strong.
■ In the property resale business, the average selling price increased in Q3, and strong
demand from overseas investors persists.
■ In the U.S. real estate business, sales remain robust, and the number of managed properties
has surpassed 5,000.
¥13.7 billion in U.S. real estate loan receivables have been securitized to improve assetefficiency.
■To improve EPS, ¥20 billion in share acquisitions are being executed this fiscal year, with anadditional ¥20 billion planned for the next fiscal year on an accelerated timeline.
■ Following improvements in ESG ratings, the company has also been added to new ESG
indices.

Q&A:[Q.1] Why has the gross profit margin improved in the subdivided business of OHD and Hawk
One, but decreased in the single-family homes business in Q3?
[A.1] The decrease in the gross profit margin in the single-family homes business was mainly
due to increased personnel costs from hiring new graduates in the brokerage division
for OH.
For the next fiscal year, based on the current contracts, a profit margin improvement ofabout 2 percentage points compared to Q3 PL results.
[Q.2] Is the recovery in gross profit margins the same for OHD and Hawk One? What is thebackground for the decline in OHA's margin?

[A.2] OHD and Hawk One are showing similar trends in margin recovery, but OHD in urban
areas is recovering faster. Although OHA's margin decreased in Q3 compared to Q2, it
has improved overall and continues to show good performance in the single-family
homes business.
[Q.3] Is the anticipated 2-point improvement in gross profit margin next fiscal year due toreduced discounts, and are land acquisition prices decreasing?
[A.3] The reduction in discounts is a significant factor in improving the margin. While there
are cases of acquiring high-margin properties, land acquisition prices have not broadly
decreased and remain mixed.
[Q.4] The increase rate in the number of single-family homes sales contracts, excluding
Meldia, is about 2%. Is the demand environment not favorable? Will the number ofcontracts return to double-digit growth next year?
[A.4] The number of sales contracts has improved compared to before, and the demandenvironment is good. While immediate double-digit growth is challenging, there issteady improvement.
[Q.5] What are the forecasts for net sales, number of units, and profit margins for thecondominium business next fiscal year?
[A.5] For OHD's condominiums, as previously stated, the number of units and net sales will
decrease compared to this fiscal year, but profit margins are expected to be maintained
due to higher sales prices in urban areas.
[Q.6] The progress rate in the property resale business is low compared to the full-year plan.
Will the targets be achieved?
[A.6] Significant progress is expected in Q4 with many property handovers including large
properties. However, there might be a slight shortfall from the full-year sales target of¥205 billion. Overall, progress is being made towards achieving the full-year plan.
[Q.7] What happens if the large property resale project is sold for more than the previously
projected amount.
[A.7] Any portion sold for more than the book value after accounting for impairment losses
will be recognized as gross profit.

[Q.8] Regarding the ¥13.7 billion securitization of U.S. real estate business, will similar
schemes continue, and will there be any gains from the transfer of receivables?
[A.8] Securitization improves asset efficiency by moving loans off-the balance-sheet of thefinancial subsidiary. Similar schemes will be used in the future. No temporary gains fromreceivables transfer are expected.
[Q.9] Is the improvement in Meldia's profit margin due to the sale of previously acquired
properties? Will margins improve next fiscal year with Group procurements?
[A.9] The properties delivered up to Q3 were procured before Meldia joined the Group. Dueto project timelines, sales in the first half of the next fiscal year will primarily be frompast procurements.
[Q.10] What is the background for the abolishment of the Group Transformation Promotion
Headquarters?
[A.10] Based on the risk assessments conducted by a third-party organization (Nagasima,Ohno & Tsunematsu Law Offices), improvements have been made to the system andoperations. Consequently, the special project has concluded, and going forward,
each business units and department will manage their own improvement efforts.
[Q.11] With the increased emphasis on compliance and the separation of sales and contracts,
has the previously aggressive sales approach been eliminated due to the safer conductof business activities?
[A.11] Sales activities are now subject to stricter rules and enhanced labor hour managementcompared to before. However, the separation of sales and contracts has also
contributed to ensuring appropriate working hours.