Note:

Please note that this document is a Japanese-English translation of the summary of the official announcement inJapanese “Kessan Tanshin” for reference purposes only.

Summary of Consolidated Financial Results
for the First Quarter Ended September 30, 2018 〔Based on Japanese GAAP〕
February 14, 2018
Company name:Open House Co., Ltd.

Stock exchange listings:
Code Number:
URL:
Representative:
Scheduled date of quarterly securities report filing:
Supplementary materials for quarterly financial results:
Quarterly results briefing meeting :Tokyo Stock Exchange, First section3288
http://openhouse-group.com/irMasaaki Arai, President and CEO
February 14, 2018
YesNo
(Million yen, rounded down)

1.

Consolidated Financial Results for the First Quarter Ended September 30, 2018
(October 1, 2017 to December 31, 2017)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Three months ended
Million yen%
Million yen%
December 31, 201776,461
9.0
9,633
11.3
December 31, 2016
70,135
14.9
8,652
1.7
(Note) Comprehensive income: Three months ended December 31, 2017
Three months ended December 31, 2016
EPSThree months ended
December 31, 2017
December 31, 2016

Profit attributable toowners of parent

Ordinary income
Million yen%

9,391
7.0
8,779
5.4
¥ 6,522 million (12.2%)¥ 5,812 million ( 8.2%)

Million yen

%

6,517
5,738

13.6
6.9

Diluted EPS
Yen

Yen

116.82102.19115.95101.67(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
December 31, 2017
264,350
87,94833.1
September 30, 2017
256,736
83,37932.3(Reference) Shareholders’ equity: As of December 31, 2017
¥ 87,540 million
As of September 30, 2017 ¥ 82,970 million

2.

Dividends

Annual dividends per share
1Q-end2Q-endYen―
FY 2017―
FY 2018
FY 2018 (Forecast)(Note) Revision of the latest dividend forecast: No

3.

3Q-end

Yen
30.00
46.00

Year-end

Yen

Total―

Yen
35.00

Yen
65.00

―

46.00

92.00

Forecast of Consolidated Operating Results for FY2018(October 1, 2017 to September 30, 2018)(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

2Q (Cumulative)
165,000 11.2
20,300
11.3
Full year
380,000 24.7
44,70018.8(Note) Revision of the latest consolidated results forecast: No

19,70043,50010.5
20.4

13,60030,00016.7
21.0

243.77537.73

Revenue
Million yen%Open House Co., Ltd. (3288)

EPS

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*Notes:(1) Significant changes in consolidated subsidiaries during the period(Changes in specific subsidiaries resulting in a change in the scope of consolidation): None
(2) Adoptions of special accounting methods in presentation of quarterly financial statements: Yes(3) Changes in accounting policies, changes of accounting estimates, and revisions and restatementsⅰ) Changes in accounting policies in accordance with changes in accounting principles: Noneⅱ) Changes in accounting policies other than the above:

Noneⅲ) Changes in accounting estimates:

Noneⅳ) Revisions and restatements:

None(4) Number of shares issued and outstanding (common stock)ⅰ) Number of shares issued at period-end (including treasury stock)
December 31, 2017:57,463,600 shares

September 30, 2017:57,463,600 shares

September 30, 2017:

1,673,194 sharesⅱ) Treasury stock at period-end
December 31, 2017:

1,673,240 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
December 31, 2017:

55,790,393 shares

December 31, 2016:

56,157,363 shares* This quarterly financial results report is not subject to quarterly review procedure based on the Financial Instruments andExchange Act.
* Notes regarding forward-looking statements:
Consolidated business forecasts are based on assumptions from information available to management at the time ofdisclosure and those deemed to be reasonable.
Actual results may differ significantly from forecast due to various unpredictable reasons.

Open House Co., Ltd. (3288)

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Consolidated Quarterly Financial Statements1）Consolidated Quarterly Balance Sheets(Million yen)

End of FY 2017(as of September 30, 2017)

End of FY 2018 1Q(as of December 31, 2017)

AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Real estate for sale
Real estate for sale in process
Operating loans
Other
Allowance for doubtful accounts
Total current assets

90,910925
19,542
125,351
6,056
5,820
(178)
248,429

82,185906
26,665133,549
7,510
6,531
(170)
257,177

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets

3,113
1,299
3,841
8,255

3,135
1,244
2,744
7,124

51
256,73649
264,350

10,652
41,854
562
8,696
5,205
2,113
13,52982,613

9,813
48,416562
11,806
2,998
1,261
12,84487,702

1,993
88,6411279
1790,743

1,863
86,7281275
1888,698173,357

176,401

4,032
5,934
76,038(3,102)82,902

4,032
5,934
80,603(3,102)
87,466

Other comprehensive incomeNet unrealized holding gains/losses on securities
Foreign currency translation adjustment

860

1063

Accumulated other comprehensive income
Subscription rights to shares

68408

73408

83,379256,736

87,948264,350

Deferred assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payable
Reserves
OtherTotal current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity

Total net assets
Total liabilities and net assets

Open House Co., Ltd. (3288)

3|2）Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
Consolidated Quarterly Statements of Income(Million yen)Three months ended
December 31, 2016
(From October 1, 2016
to December 31, 2016)

Three months ended
December 31, 2017
(From October 1, 2017
to December 31, 2017)

Revenue

70,13576,461

Cost of revenue

57,406

61,799Gross profit

12,728

14,661

Selling, general and administrative expenses

4,076

5,027

Operating income

8,652

9,633

10

Non-operating income
Interest income
Dividends income

20House rent income

1123

Other

376

29

Total non-operating income

390

53

212

258

Non-operating expenses
Interest expenses
Commission fee

81

Other

41

36

262

296

Ordinary income

Total non-operating expenses

8,779

9,391

Income before income taxes

8,779

9,391

Income taxes-current

3,041

2,873

Profit5,738

6,517

Profit attributable to owners of parent

5,738

6,517

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)Three months ended
December 31, 2016
(From October 1, 2016
to December 31, 2016)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

Three months ended
December 31, 2017
(From October 1, 2017
to December 31, 2017)

5,738

6,517

3701274

4

5,812

6,522

5,812

6,522

Open House Co., Ltd. (3288)

5|3) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Notes on Significant changes in consolidated subsidiaries during the period)
Not applicable
Although it is not applicable for changes in important subsidiaries during the period, Open House Texas Property
Management LLC and Open House Ohio Realty & Investments LLC which are non-consolidated companies havebeen included in the scope of consolidation as its importance has increased for this first quarter.
(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Tax expenses is calculated by multiplying income before income taxes by an effective tax rate that was reasonably
estimated by applying tax effect accounting to estimated income before income taxes for the fiscal year ended
September 2018 including the first quarter under review.
(Segment and Other Information)【Segment Information】
Ⅰ. FY2017 1Q (From October 1, 2016 to December 31, 2016)
1. Information on revenue, income or loss, and other items by reportable segment（Million yen）
Amount Recorded onAdjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single-family
Condominiums
homes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal

47,136

1,570

21,333

95

70,135―

70,135

―

―

3―

3(3)

―

Total

47,136

1,570

21,336

95

70,138(3)

70,135

Segment Income (Loss)

6,615(184)2,442

08,873(221)8,652Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥(221)million for segment income includes intersegment elimination of ¥0 million and corporate expenses of ¥(221)
million that is not distributed to the reportable segments. Corporate expenses are primarily general and administrative expenses
that do not belong to the reportable segments.
2. Segment income (loss) has been adjusted to operating income described in consolidated quarterly statements of income.

Ⅱ. FY2018 1Q (From October 1, 2017 to December 31, 2017)
1. Information on revenue, income or loss, and other items by reportable segment（Million yen）Amount Recorded onAdjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single-family
Condominiums
homes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal

44,341

4,487

25,2852,347

76,461―

76,461

―

―

5―

5(5)

―

Total

44,341

4,487

25,291

2,347

76,466(5)

76,461

Segment Income (Loss)

5,603

121

3,737

389

9,852

(218)

9,633

Open House Co., Ltd. (3288)

6|Intersegment revenueand transfers

(NOTE)
１. Adjustment of ¥ (218) million for segment income includes intersegment elimination of ¥5 million and corporate expenses of¥ (224) million that is not distributed to the reportable segments. Corporate expenses are primarily general and administrative
expenses that do not belong to the reportable segments.
2. Segment income (loss) has been adjusted to operating income described in consolidated quarterly statements of income.
2. Notes relating to changes in reportable segments etc.
The Group has changed its reportable segments from this first quarter. The brokerage business, single-family homes
business, and Open House Architect has be consolidated to establish a new segment, the single-family homes related
business with the aim of strengthening the business model - a comprehensive system from purchase and construction tointermediacy. The Group designated four segments: single-family related business, condominiums business, property resales
business and others as reportable segments.
Segment information for the three months ended September 2017 on a consolidated basis was prepared based on thereportable segments applied for the three months ended September 2018.

Open House Co., Ltd. (3288)

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