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.

(Correction) Partial Correction on July 31, 2020
Summary of Consolidated Financial Results
for the Second Quarter Ended September 30, 2020〔Based on Japanese GAAP〕
May 15, 2020
Company name:Open House Co., Ltd.

Stock exchange listings:
Code Number:
URL:
Representative:
Scheduled date of quarterly securities report filing:
Scheduled starting date of dividend payments:
Supplementary materials for quarterly financial results:
Quarterly results briefing meeting :Tokyo Stock Exchange, First section
3288
https://openhouse-group.co.jp/ir
Masaaki Arai, President and CEO
May 15, 2020
June 11, 2020
YesNo
(Million yen, rounded down)

1.

Consolidated Financial Results for the Second Quarter Ended September 30, 2020
(October 1, 2019 to March 31, 2020)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Ordinary income

Six months ended
Million yen%
Million yen%
Million yen%March 31, 2020
261,922
7.9
27,035
13.6
26,091
17.6
March 31, 2019242,84642.9
23,79713.0
22,19310.0(Note) Comprehensive income: Six months ended March 31, 2020
¥ 18,367 million [ 16.0％]
Six months ended March 31, 2019
¥ 15,836 million [ 15.3％]
EPS
Six months ended
March 31, 2020
March 31, 2019

Profit attributable toowners of parent
Million yen%

18,136
16,132

12.4
15.1

Diluted EPS
Yen

164.03142.84Yen

163.02141.96(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. EPS and Diluted EPS
calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%March 31, 2020
491,687
152,92431.0
September 30, 2019445,904
138,067
30.9(Reference) Shareholders’ equity: As of March 31, 2020
¥ 152,634 million
As of September 30, 2019
¥ 137,754 million

2.

Dividends

Annual dividends per share
1Q-end2Q-endYen――FY 2019
FY 2020
FY 2020 (Forecast)(Note) Revision of the latest dividend forecast: No

3Q-end

Yen
60.00
40.00

Year-end

TotalYen―

Yen
66.00

Yen
126.00

―

40.00

80.00

The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. Though the dividend per sharefor 2019 is shown the actual amount without considering the stock split, the divided forecast per share for FY2020 is the amount after
the stock split. So, annual dividend per share for FY2019, if calculated on after-stock-split basis, would be ¥63, the dividend forecast for
FY 2020 is an increase of 17 yen per share from the previous fiscal year.
Open House Co., Ltd. (3288)

1|3.

Forecast of Consolidated Operating Results for FY2020(October 1, 2019 to September 30, 2020)(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

Full year
570,000
5.5
62,0007.3(Note) Revision of the latest consolidated results forecast: Yes

77,00040.2

59,00049.7

533.59

Revenue
Million yen%EPS

The Company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019. The forecast information
about EPS for FY2020 is provided after taking the stock split into consideration.

*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)
March 31, 2020:

115,356,500 shares

September 30, 2019:

115,237,000 shares

September 30, 2019:

4,694,502 sharesⅱ) Treasury stock at period-end
March 31, 2020:

4,694,502 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
March 31, 2020:

110,571,232 shares

March 31, 2019:112,948,077 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 FY2019(as of September 30, 2019)
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

End of FY2020 2Q(as of March 31, 2020)

135,354
498
70,457
179,596
28,924
10,167(232)

157,100
980
67,362
202,767
34,6478,349(219)

424,766

470,987

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

4,990
3,456
12,659

5,007
3,237
12,427

Total non-current assets

21,106

20,672

Deferred assets

3127

445,904

491,687

4,257
16,91389,933372
12,976
11,461
3,336
23,097

4,151
18,82997,048292
19,5037,933
3,370
21,518

Total current liabilities

162,348

172,646

Non-current liabilities
Bonds payable
Long-term loans payable
Net defined benefit liability
Asset retirement obligations

1,089
143,972
326
100

968
164,701
346
101

Total non-current liabilities

145,488

166,117

307,837

338,763

4,234
8,206
134,629(8,806)

4,315
8,287
149,118(8,806)

Total assets
Liabilities
Current liabilities
Notes payable
Operating accounts payable
Short-term loans payable
Current portion of bonds
Current portion of long-term loans payable
Income taxes payable
Provision
OtherTotal liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

138,263

152,914

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Total shareholders’ equity

8(517)

5(285)

Total accumulated other comprehensive income(508)(279)

Subscription rights to shares
Total net assets
Total liabilities and net assets

312289138,067

152,924445,904

491,687

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)Six months ended
March 31, 2019
(From October 1, 2018
to March 31, 2019)

Six months ended
March 31, 2020
(From October 1, 2019
to March 31, 2020)

Revenue

242,846

261,922

Cost of revenue

203,986

218,778

Gross profit

38,85943,143

Selling, general and administrative expenses

15,062

16,108Operating income

23,79727,035Interest income

3659

Dividends income

190

House rent income

7971

Foreign exchange gains

―

109

Other

86

166

Total non-operating income

221407

Interest expenses

878

1,069

Commission fee

737

180

Other

209

101

Non-operating income

Non-operating expenses

Total non-operating expenses

1,825

1,350

22,19326,091Gain on sales of non-current assets

772―

Total extraordinary income

772―

Profit before income taxes

22,96626,091

Income taxes

6,833

7,954

Profit16,132

18,136

Profit attributable to owners of parent

16,132

18,136

Ordinary income
Extraordinary incomeOpen House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)Six months ended
March 31, 2019
(From October 1, 2018
to March 31, 2019)
ProfitSix months ended
March 31, 2020
(From October 1, 2019
to March 31, 2020)

16,132

18,136(6)(2)

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(289)

231

Total other comprehensive income

(296)

229

15,836

18,365

15,836

18,365Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

Open House Co., Ltd. (3288)

5|3）Consolidated Quarterly Statements of Cash Flows（Millions of yen）

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Increase (Decrease) in allowance for doubtful accounts
Increase (Decrease) in net defined benefit liability
Increase (decrease) in provisionInterest and dividend income
Foreign exchange loss (gain)
Loss (gain) on sales of non-current assets
Interest expense
Commission for syndicated loans
Decrease (Increase) in notes and accounts receivable-trade
Decrease (Increase) in inventoriesIncrease (Decrease) in notes and accounts payable-trade
Decrease (Increase) in operating loans
Increase (Decrease) in advances received
Increase (Decrease) in guarantee deposits received
Increase (Decrease) in deposits received
OtherSubtotal
Interest and dividend income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of intangible fixed assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Payments for investments in capital
Collection of investments in capital
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Payment for commission for syndicated loans
Proceeds from exercise of stock options
Purchase of treasury stock
Cash dividend paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Six months ended
March 31, 2019
(From October 1, 2018
to March 31, 2019)

Six months ended
March 31, 2020
(From October 1, 2019
to March 31, 2020)

22,966252
16185(56)30(772)878653(218)(21,452)820(5,228)
1,581
98(3,208)450(3,011)52(870)(5,818)(9,649)26,091254(16)
19
34(59)
(61)
―
1,069
―
(552)
(19,912)
1,809(5,722)2,557
182(3,305)(1,590)798
53(1,068)(8,479)(8,696)(5,983)
5,507
(619)
(96)
1,668
(567)
―
510
(0)
3(293)
22
16
169

(652)
―
(425)
(50)
―
(1,968)
984
1,560
―
0
(382)
66
(32)
(901)

82,173(104,404)
68,416(35,972)
(281)
(653)
112
(1,819)(2,874)
4,696(164)(4,947)
118,978
114,031

160,679(153,607)
105,141(77,843)
(201)
―55
―
(3,647)30,576
114
21,092
135,345
156,438

Open House Co., Ltd. (3288)

6|4) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(Changes in significant subsidiaries during the period)
Not applicable(Significant changes in consolidated subsidiaries during the period)
Not applicable(Adoption of Special Accounting Methods for Preparation of Quarterly Consolidated Financial Statements)
Tax expenses is calculated by multiplying profit before income taxes by an effective tax rate that was reasonably
estimated by applying tax effect accounting to estimated profit before income taxes for the fiscal year ended
September 2020 including the second quarter under review.
(Segment and Other Information)【Segment Information】
Ⅰ. Six months ended March 31, 2019 (October 1, 2018 to March 31, 2019)
Information on revenue, income or loss, and other items by reportable segment（Million yen）
Amount Recorded on
Adjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

Reportable Segment
Single-familyCondominiums
homes related
Revenue
Revenue from Outside
Customers
Intersegment revenueand transfers
Total
Segment Income

Property
resales

OthersTotal

164,959

20,76846,587

10,531

242,846―

242,816

―

―

26―

26

(26)

―

164,959

20,76846,613

10,531

242,872(26)

242,846

15,008

3,305

4,908

1,070

24,293(495)

23,797(NOTE)
１. Adjustment of ¥(495)million for segment income includes intersegment elimination of ¥78 million and corporate expenses of¥(573) 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 has been adjusted to operating income described in consolidated quarterly statements of income.

Ⅱ. Six months ended March 31, 2020 (October 1, 2019 to March 31, 2020)
Information on revenue, income or loss, and other items by reportable segment（Million yen）
Amount Recorded on
Adjustments
Consolidated(Note 1)
Quarterly Statementsof Income (Note 2)

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

Propertyresales

OthersTotal

186,467

8,533

55,031

11,889261,922―

261,922

―

―

28

21

50

(50)

―

Total

186,467

8,533

55,06011,911

261,972(50)

261,922

Segment Income (Loss)

20,896

(47)

5,536

1,221

27,607(572)

27,035(NOTE)
１. Adjustment of ¥ (572) million for segment income includes intersegment elimination of ¥331 million and corporate expenses of¥ (904) 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 has been adjusted to operating income described in consolidated quarterly statements of income.

Open House Co., Ltd. (3288)

7|

(Important Subsequent Events)(Conclusion of Capital and Business Alliance Agreement and Addition of Equity-Method Affiliate through Acquisition ofShares)
At the Board of Directors' meeting held on April 6, 2020, we decided to form a capital and business alliance(hereinafter referred to as the "capital and business alliance") with Pressance Corporation Co., Ltd. (hereinafter referred toas "Pressance Corporation"), and entered into a capital and business alliance agreement on the same day.
At the same Board of Directors’ meeting on April 6, 2020, we also decided to acquire shares of stock of PressanceCorporation. We signed a stock transfer agreement on the same day and completed the acquisition on May 8, 2020.
1.

Capital and Business Alliance(1) Purpose of the agreement
The corporate philosophy is “Committed to pursuing 'Houses that customers want' honestly and constantly.” Basedon this, the Open House Group is engaged in the Single-family homes related business, the Condominiums businessand the Property resales business mainly in the Tokyo metropolitan area as major businesses, aiming to be a realestate company that is needed by society.
Meanwhile, Pressance Corporation, since its foundation, has focused on realizing a more comfortable and affluent
lifestyle for residents by delivering high-value condominiums with the emphasis on convenient locations. In addition,with its corporate philosophy, "Lighting up a corner," in mind, Pressance Corporation, as an independent
condominium developer, works to develop condominiums from urban condominiums to family condominiums byleveraging its unique development capabilities. It has expanded its businesses in a wide range of areas from the Tokyo
metropolitan area to Kyushu. In particular, it has supplied a large number of condominiums in the Kinki, Tokai andChukyo areas.
We formed the capital and business alliance with Pressance Corporation based on the belief that it will help tomaximize profit for both companies as well as customers, shareholders, employees, business partners and otherstakeholders thereof. This can result from creating a business synergy by combining the management resources andknow-how of both companies and thereby mutually supplementing the regions in which we operate and expanding
the product lineups.
(2) Details of the agreement1)

Details of the business alliance
We will further discuss and finalize the details of the business alliance with Pressance Corporation. Also, we plan

to strengthen cooperation in the areas of "Regional supplement," "Product supplement," "Maintenance andmanagement of rental properties and properties for sale," and "Cost reduction."2) Details of the capital alliance
We entered into an agreement with two major shareholders, the largest and second-largest shareholders ofPressance Corporation. In it, we decided to acquire from each of the parties concerned a total of 20,621,100sharesof Pressance Corporation off-market on a negotiation basis (hereinafter referred to as the "share acquisition").
After the share acquisition, Open House now holds 31.91% (rounded off to two decimal places) of the shares ofPressance Corporation, and Pressance Corporation has become an equity method affiliate of Open House.
(3) Overview of the counterparty of the agreement
1

Name

Pressance Corporation Co., Ltd

2Location

1-2-27 Shiromi, Chuo-ku, Osaka

3

Name and title of the representative

Yutaka Doi, President and Representative Director

4Lines of business

Planning, development and sales of condominiums for investment
and family condominiums

5Capital

4,290 million yen (As of March 31, 2020)

Open House Co., Ltd. (3288)

8|

2. Addition of Equity-Method Affiliate through Acquisition of Shares(1) Purpose
As described in 1. above, we entered into a capital and business alliance agreement with Pressance Corporation on
April 6, 2020.
By making Pressance Corporation an equity-method affiliate, we believe the business alliance between these twocompanies will help us build a stronger complementary business relationship. Accordingly, we determined the shareacquisition.
(2) Counterparty of the share acquisition
Pacific Co., Ltd. and Mr. Shinobu Yamagishi(3) Company whose shares Open House acquired1) Name:Pressance Corporation Co., Ltd.

2) Location:

1-2-27 Shiromi, Chuo-ku, Osaka3) Name and title of the representative:

Yutaka Doi, President and Representative Director

4) Lines of business:
Planning, development and sales of condominiums for investment and condominiums for families
5) Capital:

4,290 million yen

6) Date of establishment:

October 1, 1997

(4) Number of shares acquired, cost of acquisition and percentage of ownership after the acquisition
Number of shares acquired:
Cost of acquisition:

20,621,100 shares

22,683 million yen

Percentage of ownership after the acquisition:

31.91%(5) Financing
The share acquisition is financed by borrowing from Sumitomo Mitsui Banking Corporation.

Open House Co., Ltd. (3288)

9|