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 Third Quarter Ended September 30, 2020〔Based on Japanese GAAP〕
August 14, 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 section3288
https://openhouse-group.co.jp/ir
Masaaki Arai, President and CEO
August 14, 2020
―YesNo(Million yen, rounded down)

1.

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

Operating income

Nine months ended
Million yen%
Million yen%
June 30, 2020
383,551
4.6
38,445
5.7
June 30, 2019366,608
40.4
36,38515.2(Note) Comprehensive income: Nine months ended June 30, 2020
¥Nine months ended June 30, 2019
¥EPS
Nine months endedJune 30, 2020
June 30, 2019

Profit attributable toowners of parent

Ordinary income
Million yen%

53,24156.1
34,105
11.6
41,828 million [77.1％]
23,612 million [10.3％]

Million yen%

41,89624,484

71.1
14.6

Diluted EPS
Yen

378.80217.28Yen

376.53215.99(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%
June 30, 2020
534,699
171,961
32.1
September 30, 2019445,904
138,067
30.9(Reference) Shareholders’ equity: As of June 30, 2020
¥ 171,670 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

Yen――TotalYen
66.00

Yen
126.0040.00

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)

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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: No

77,00040.2

59,00049.7

533.45

Revenue
Million yen%

EPS

*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)June 30, 2020:

115,356,500 shares

September 30, 2019:

115,237,000 shares

September 30, 2019:

4,694,502 sharesⅱ) Treasury stock at period-end
June 30, 2020:

4,694,502 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
June 30, 2020:

110,601,377 shares

June 30, 2019:112,683,170 shares(Note) The company conducted a 2-for-1 stock split of common stock with an effective date of October 1, 2019.
“Number of shares issued at period-end”, “Treasury stock at period-end “and “Average number of shares issued during
the period “ calculated assuming the stock split was conducted at the beginning of the previous fiscal year.

* 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

End of FY2020 3Q(as of June 30, 2020)

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

150,662971
76,200204,102
35,0477,841(204)

424,766

474,622

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

4,990
3,456
12,6595,091
3,166
51,792

Total non-current assets

21,10660,0503126445,904

534,699

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

4,651
19,788
121,806242
18,806
4,034
2,540
23,232

Total current assets

Deferred assets
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
Other
Total current liabilities

162,348

195,101

Non-current liabilities
Bonds payable
Long-term loans payable
Retirement benefit liability
Asset retirement obligations
Other

1,089
143,972
326
100―

968
166,186356
105
19

Total non-current liabilities

145,488

167,636

307,837

362,738

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

4,315
8,287
168,451(8,806)

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

138,263

172,247

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

Total shareholders’ equity

8(517)

6(583)

Total accumulated other comprehensive income(508)(576)

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

312

290

138,067

171,961445,904

534,699

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)

Nine months ended
June 30, 2019
(From October 1, 2018
to June 30, 2019)

Nine months ended
June 30, 2020
(From October 1, 2019
to June 30, 2020)

Revenue

366,608

383,551

Cost of revenue

307,256

320,759

Gross profit59,352

62,791

Selling, general and administrative expenses

22,967

24,345

Operating income

36,38538,445Interest income

56

63

Dividends income

201House rent income
Gain on sales of investment securities
Share of profit of entities accounted for using equity
method
Other

113

112

―

109

―

16,322

129

194

Total non-operating income

320

16,803

1,339

1,682

764

192

Non-operating income

Non-operating expenses
Interest expenses
Commission expenses
Other

497

132

2,600

2,007

34,10553,241Gain on sales of non-current assets

773―

Total extraordinary income773―Profit before income taxes

34,87853,241

Income taxes

10,393

11,345

Profit24,484

41,896

Profit attributable to owners of parent

24,484

41,896

Total non-operating expenses
Ordinary income
Extraordinary income

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)

Nine months ended
June 30, 2019
(From October 1, 2018
to June 30, 2019)
ProfitNine months ended
June 30, 2020
(From October 1, 2019
to June 30, 2020)

24,484

41,896

Other comprehensive income
Valuation difference on available-for-sale securities(6)(1)

Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method

(865)

(87)

―

20

Total other comprehensive income

(872)

(67)

Comprehensive income

23,612

41,828Comprehensive income attributable toComprehensive income attributable to owners ofparent

23,612

41,828Open 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 change in scope of consolidation or scope of application of equity method)
Pressance Corporation which the Company newly invested in is included in the scope of equity-method applicable
companies from the third quarter of the current consolidated fiscal year.
(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 third quarter under review.
4(Segment and other Information)【Segment Information】
Ⅰ. Nine months ended June 30, 2019 (October 1, 2018 to June 30, 2019)
1. 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
Total
Segment Income

Property
resales

OthersTotal

246,932

26,50874,851

18,316366,608―366,608――41―

41(41)―

246,932

26,50874,89318,316366,650(41)366,608

22,835

3,863

8,217

2,197

37,113(728)

36,385(NOTE)
１. Adjustment of ¥(728)million for segment income includes intersegment elimination of ¥136 million and corporate expensesof ¥(865) million that is not distributed to the reportable segments. Corporate expenses are primarily general andadministrative 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. Nine months ended June 30, 2020 (October 1, 2019 to June 30, 2020)
1.

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

Property
resales

OthersTotal

274,021

12,84880,12816,553

383,551―

383,551

―

―

41

36

77

(77)

―

Total

274,021

12,84880,16916,589383,628(77)

383,551

Segment Income (Loss)

28,969489

8,444

1,402

39,305(859)38,445(NOTE)
１. Adjustment of ¥ (859) million for segment income includes intersegment elimination of ¥493 million and corporate
expenses of ¥ (1,353) million that is not distributed to the reportable segments. Corporate expenses are primarily generaland 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.
2. Information relating to impairment loss on non-current assets or, goodwill, etc. for each reportable segment(Material profit from negative goodwill)
The recorded amount of profit on negative goodwill is ¥13,708 million as investment gain on equity method for the current
consolidated third quarter, as the Company acquired stocks of Pressance Corporation and adopted the equity method.
It is not included segment income because investment gain on equity method by the said event is non-operating income.

Open House Co., Ltd. (3288)

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(Important Subsequent Events)(Issuance of new shares, disposal of treasury shares and secondary offering of shares)
At the meeting of its board of directors held on July 10, 2020, the Company resolved the issuance of new shares, thedisposition of treasury shares, and the issuance of new shares by the third-party allotment to SMBC Nikko Securities
relating to the secondary offering of shares by way of over-allotment as follows. Moreover the payment was completedon July 28, 2020 regarding the issuance of new shares and the disposition of treasury shares..
1.

Issuance of new shares by way of public offering(1) Class and number of shares to be
9,617,200 shares of common stock of the Company, the aggregate ofoffered(i) through (iii) described below(i) 1,814,200 shares of common stock of the Company, issued for purchaseby the Japanese Underwriters in the Japanese Public Offering(ii) 6,531,600 shares of common stock of the Company, issued for purchaseby the International Managers in the International Offering(iii) 1,271,400 shares of common stock of the Company, additionally issued
for purchase by the International Manager upon exercise of the option(2) Amount to be paid
¥2,976 per share(3) Total amount to be paid
¥28,620 million(4) Amount of stated capital to be
The amount of stated capital to be increased: ¥14,310 million
increased and additional paid-in
The amount of additional paid-in capital to be increased : ¥14,310 million
capital to be increased(5) Payment dateJuly 28, 2020

2.

Disposal of treasury shares by way of public offering(1) Class and number of shares to be
4,694,500 shares of common stock of the Company, the aggregate ofoffered(i) and (ii) described below(i) 2,000,000 shares of common stock of the Company, issued for purchaseby the Japanese Underwriters in the Japanese Public Offering(ii) 2,694,500 shares of common stock of the Company, issued forpurchase by the International Managers in the International Offering(2) Amount to be paid
¥2,976 per share(3) Total amount to be paid
¥13,970 million(4) Payment dateJuly 28, 2020

3.

The third-party allotment in connection with the secondary offering by way of over-allotment(1) Class and number of shares to be
684,600 shares of common stock of the Companyoffered(2) Amount to be paid
¥2,976 per share(3) Total amount to be paid
Up to ¥2,037 million(4) Amount of stated capital to beThe amount of stated capital to be increased: Up to ¥1,018 million
increased and additional paid-in
The amount of additional paid-in capital to be increased : Up to ¥1,018
capital to be increased
million(5) Subscription dateAugust 24, 2020
(6) Payment dateAugust 25, 2020

4. Use of proceeds to be raised
The net proceeds in the maximum total amount of¥ 44,285 million obtained from the Japanese offering, theinternational offering and the third-party allotment is intended to be applied to operating capital and the repaymentof existing short term loans payable.

Open House Co., Ltd. (3288)

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