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 Third Quarter Ended September 30, 2019 〔Based on Japanese GAAP〕
August 14, 2019
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
https://openhouse-group.co.jp/ir
Masaaki Arai, President and CEO
August 14, 2019
YesNo
(Million yen, rounded down)

1.

Consolidated Financial Results for the Third Quarter Ended September 30, 2019
(October 1, 2018 to June 30, 2019)(1) Consolidated operating results (Cumulative)
Revenue(% figures indicate year-on-year change)

Operating income

Ordinary income

Nine months ended
Million yen%
Million yen%
Million yen%
June 30, 2019366,608
40.4
36,38515.2
34,105
11.6
June 30, 2018
261,048
23.5
31,58824.3
30,562
26.1(Note) Comprehensive income: Nine months ended June 30, 2019
¥ 23,612 million [ 10.3％]
Nine months ended June 30, 2018
¥ 21,397 million [ 35.2％]
EPS
Nine months ended
June 30, 2019
June 30, 2018

Profit attributable toowners of parent
Million yen%

24,484
21,366

14.6
35.6

Diluted EPS
Yen

434.57382.86Yen

431.97379.88(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
June 30, 2019
418,707125,315
29.9
September 30, 2018393,367
113,486
27.0(Reference) Shareholders’ equity: As of June 30, 2019
¥ 124,995 million
As of September 30, 2018
¥ 106,156 million

2.

Dividends

Annual dividends per share
1Q-end2Q-endYen――

FY 2018
FY 2019
FY 2019 (Forecast)(Note) Revision of the latest dividend forecast: Yes

3Q-end

Yen
46.00
60.00

Year-end

Yen――Total

Yen
52.00

Yen
98.00

66.00

126.00Open House Co., Ltd. (3288)

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3.

Forecast of Consolidated Operating Results for FY2019(October 1, 2018 to September 30, 2019)(% figures indicate year-on-year change)

Operating income

Ordinary income

Profit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

Full year
530,000 35.6
56,50019.4(Note) Revision of the latest consolidated results forecast: Yes

53,70016.6

38,20020.1

678.01

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:Yesⅲ) 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, 2019:57,602,900 shares

September 30, 2018:57,512,500 shares

September 30, 2018:

2,235,080 sharesⅱ) Treasury stock at period-end
June 30, 2019:

1,876,471 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
June 30, 2019:

56,341,585 shares

June 30, 2018 :

55,807,111 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 2018(as of September 30, 2018)
AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Real estate for sale
Real estate for sale in process
Operating loans
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-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
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 stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

End of FY 2019 3Q(as of June 30, 2019)

119,053
1,291
47,238186,033
14,244
10,127(172)
377,818

105,453
324
71,518
193,542
22,9627,163(154)
400,810

5,474
3,515
6,517
15,50840
393,367

4,864
3,532
9,467
17,86333
418,707

4,557
14,803
111,583532
18,756
9,713
2,728
19,730
182,405

4,171
16,19590,075372
21,3725,250
2,195
21,300160,933

1,461
95,619300
92
097,475279,880

1,210
130,848312
88
0132,459
293,392

4,094
4,481
103,324(6,102)
105,798

4,221
8,193
119,706(6,610)125,509

15
342
358
388
6,941
113,486
393,3678(522)(513)
319―
125,315
418,707

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, 2018
(From October 1, 2017
to June 30, 2018)

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

Revenue

261,048366,608

Cost of revenue

213,108

307,256

Gross profit

47,94059,352

Selling, general and administrative expenses

16,351

22,967

Operating income

31,58836,385Interest income

2056

Dividends income

1420

House rent income

78113

Other

68

129

Total non-operating income

182

320

813

1,339

Commission fee

48764

Other

345

497

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income

1,207

2,600

30,562

34,105―773

Extraordinary incomeGain on sales of non-current assets
Total extraordinary income―773

30,562

34,878

Income taxes

9,196

10,393

Profit21,36624,484

Profit attributable to owners of parent

21,36624,484

Profit before income taxes

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)

Nine months ended
June 30, 2018
(From October 1, 2017
to June 30, 2018)
ProfitOther comprehensive income

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

21,36624,484

Valuation difference on available-for-sale securities
Foreign currency translation adjustment624(6)(865)

Total other comprehensive income30(872)

21,397

23,612

21,397

23,612Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent

Open House Co., Ltd. (3288)

5|3) Notes to Consolidated Quarterly Financial Statements(Notes on Going Concern Assumptions)Not applicable(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 2019 including the third quarter under review.

(Changes in accounting policies)(Application of the Accounting Standard for Revenue Recognition)
As ASBJ Statement No. 29 Accounting Standard for Revenue Recognition (March 30, 2018) (hereinafter referred to as
the "Accounting Standard for Revenue Recognition) and ASBJ Guidance No. 30 Implementation Guidance on
Accounting Standard for Revenue Recognition (March 30, 2018) became applicable from the beginning of theconsolidated fiscal year starting on and after April 1, 2018, the Accounting Standard for Revenue Recognition andother related standards have been applied from the beginning of the first quarter under review. And the Company
satisfies a performance obligation and, hence, recognizes revenue when it transfers a promised asset (such as a goodor a service) to the customer.
By the adoption of this accounting policy, the commission recognized when the property purchase agreement has
been formed is recognized as revenue when the property is delivered. The brokerage commission recorded asadvanced received, and it is recognized as contract liability.
As a result, compared with the method used in the previous fiscal year, the introduction of the new method had theeffect of increasing revenue, operating income, ordinary income, and net income before income taxes by ¥151
million each for the third quarter of the current fiscal year under review. And retained earnings decreased by ¥1,853
million at the beginning of the period.
At the end of the current consolidated third quarter, operating accounts receivable decreased by ¥1,897 million, andcontract liability which was included in “Other” in “Current Liabilities” increased by ¥792 million.

(Additional Information)(Application of Partial Amendments to Accounting Standard for Tax Effect Accounting)
In relation to the application of ASBJ Statement No. 28 Partial Amendments to Accounting Standard for Tax EffectAccounting (February 16, 2018) from the beginning of the first quarter of the consolidated fiscal year under review,the method of presentation is changed that “deferred tax assets” is presented in the category of “Investment andother assets”, and “deferred tax liabilities” is presented in “Non-current liabilities”.

Open House Co., Ltd. (3288)

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(Segment and Other Information)【Segment Information】
Ⅰ. Nine months ended June 30, 2018 (October 1, 2017 to June 30, 2018)
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

151,690

21,05878,5509,748

261,408―261,048――

22―

22(22)―

151,690

21,05878,5729,748

261,070(22)

261,048

18,848

2,205

9,610

1,570

32,234(646)

31,588(NOTE)
１. Adjustment of ¥(646)million for segment income includes intersegment elimination of ¥31 million and corporate expenses of¥(678) 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. Nine months ended June 30, 2019 (October 1, 2018 to June 30, 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-family
Condominiums
homes related
Revenue
Revenue from Outside
Customers
Intersegment revenue
and transfers
TotalSegment 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 expenses of¥ (865) 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.
2. Notes relating to changes in reportable segments,etc.
As the Company has applied the Accounting Standard for Revenue Recognition, and changed the methods of accounting
procedures from for Revenue Recognition the first quarter of the current fiscal year, the method of calculating income or lossby reportable segment has been changed as same.
Compared with prior accounting methods, this application has resulted in a ¥203 million increase in revenue of Single family
homes related business, a ¥51 million decrease in revenue of other, and a ¥203 million increase in segment profit of Single
family homes related business, a ¥51 million decrease in segment profit of other for the current nine-month period.

Open House Co., Ltd. (3288)

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(Important Subsequent Events)（Share split）
The Company, at the meeting of the Board of Directors held on August 14, 2019, has resolved to conduct a sharesplit. Details are as follows.
1. Purpose of the share split
Based on recent movements of the Company’s share price, the share split will be conducted so that the price ofshare-trading unit remains the desirable investment unit standard "between JPY 50,000 and JPY 500,000" asprescribed in Article 445 of TSE Listing Rules. And the share split aims to reduce the price of share-trading unit, toimprove stock liquidity, and expand our investor base.
2. Outline of the share split
1) Method of the share split
Each share of common stock held by a shareholder of record listed on the final shareholder recorded in theshareholder registry as of Monday, September 30, 2019, will be split into 2 shares.
2) Number of shares to be increased from the share split
Total number of shares issued prior to the share split

57,602,900 shares

Number of shares increased by the share split

57,602,900 shares

Total number of shares issued after the share split

115,205,800 shares

Total number of authorized shares after the share split

325,200,000 shares

3) Schedule (planned)
Public notice of record date

September 12, 2019

Record date

September 30, 2019

Effective date

October 1, 2019

Record date of the increased shares

October 1, 20194) Effect on per share information
Per share information of the case given that the stock split had been conducted at the beginning of the priorfiscal year is as follows.
Nine months ended September 30. 2018
Nine months ended September 30. 2019
(From October 1, 2017to June 30, 2018)(From October 1, 2018 to June 30, 2019)
Yen
Yen
EPS
191.43217.28
Diluted EPS

189.94215.99Open House Co., Ltd. (3288)

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