Consolidated Financial Highlights
for the Fiscal Year Ended September 30, 2015

OPEN HOUSE CO., LTD.

OPEN HOUSE CO.,LTD.

Business performance Revenue and income set new record highs for third consecutive year.
Revenue:¥179.3 billion (+59.9% YOY)
Operating income: ¥21.3 billion (+55.0% YOY)
Net income:¥12.6 billion (+62.8% YOY) Single-family home sales continued to grow, in part due to the price advantages
generated by rising prices of new condominiums.
 Property resales grew 2.5-fold YOY.
 Sales of condominiums were also strong, with urban locations proving especially
popular.
 Asakawa Home Co., Ltd. became a consolidated subsidiary in January 2015 andcontributed to business expansion.

Future forecasts
 Drawing on the strength of our portfolio, especially in the greater Tokyo area,
we will strive to set record highs in revenue and income for the fourthconsecutive year.
Revenue:¥240 billion (+33.8% YOY)
Operating income: ¥25 billion (+17.4% YOY)
Net income:¥15.5 billion (+22.7% YOY)
2

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)

FY2014FY2015% of revenue% of revenue

YOY%

Revenue

112,145--

Gross profit

20,994

18.7％

18.6%

SG&A Expenses

7,248

6.5%

6.7%

Operating income

13,746

12.3%

11.9%

180

0.2%

0.2%

71.5%

1,044

0.9%

0.7%

25.9%

Ordinary income

12,882

11.5%

11.3%

Net income

7,763

6.9%

7.0%

Non-operating income
Non-operating expenses

65.8%

 Revenue and income set record highs for the third consecutive year. They have set record highs
every year since the September 2013 IPO.

 The ordinary income ratio of 11.3% surpassed the 10.0% target.
4

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)

Real estate brokerage
Real estate sales
Single-family homes

Condominiums
Property resale
Asakawa Home
OthersReal estate financing
Adjustments
Total

5,728

26.7%

108,760

61.1%

66,10038.4%

25,661(21.9%)

16,528151.8%

-

-

469

54.5%

376

2.0%

(2,720)-112,145

59.9%

 The real estate brokerage and single-family home businesses maintained steady growth.
 The property resale business achieved significant growth through aggressive businessdevelopment.
 Asakawa Home also contributed to business expansion (consolidated accounting period:
January - September).
5

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary The Kawasaki Sales Center opened in October 2014; the Kichijoji Sales Center in April 2015;
and the Jiyugaoka Sales Center in July 2015. These openings brought the total number ofsales centers to sixteen.
 Despite the consumption tax hike, the number brokered in each quarter increased
significantly YOY.
Revenue (¥million)

Operating income (¥million)

Operating income margin

2,492
7,255

34.7%

2,250

1,987

5,728

1,828

34.4%

1,464

4,704

FY2013

Number brokered

1,477

31.1%

FY2014FY2013

FY2015FY2014FY2013

FY2015FY2013

FY2014FY2015

Inc.(Dec.)

Revenue （¥ million）

4,704

5,728

7,255

26.7%

Operating income （¥ million）

1,464

1,987

2,492

25.4%

Operating income margin (%)

31.1

34.7

34.4

(0.3％)

Number brokered

1,477

1,828

2,250

+422

FY2014FY2015FY2013

FY2014FY2015

Number brokered in each quarter and YOY change
123.7%

116.4%

402

418

1Q
FY20142Q

121.8% 132.9% 125.6%

503

505

505

3Q

4Q

1Q
FY2015135.9%

119.7%

113.9%

568

602

575

2Q

3Q

4Q

6

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary

 Sales of single-family homes were strong, in part due to the price advantages generated byrising prices of new condominiums. Gross profit margin also increased.
 Sales of single-family homes maintained their steady growth and drove the group’s businessperformance, backed by strong demand for residences in urban locations.
Revenue (¥million)
91,466
58,628Gross profit margin

Gross profit (¥million)
15,14066,100FY201415.2%

10,080FY2015FY2013

FY2014FY2013

FY2015FY2013 FY2014 FY2015

Built-for-sale Revenue（¥million)
housesNumber delivered

24,23823,55638,382

62.9%

540

550

886

+336

Revenue（¥million)

28,702

36,04744,52923.5%

Number delivered

646

817

964

+147

Revenue（¥million)
Built-toorder houses Number delivered

5,687

6,497

8,554

31.7%

384

426

581

+155

Revenue（¥million)

58,628

66,10091,46638.4%

Gross profit

8,308

10,08015,14050.2%

Gross profit margin (%)

14.2

15.2

16.6

+1.3

Number delivered

1,186

1,367

1,850

+483

Total

(built-for-sale houses + lands）

1,186

1,367

14.2%

By type of sale

Lands

1,850

16.6%

8,308

FY2013

Number delivered

Inc.(Dec.)

FY2014FY2015FY2013

FY2014FY2015

Changes in the average price for new condominiums in the 23 wards ofTokyo and average price for our single-family homes (built-for-sale)(Million yen)

70
60

Average price for new condominiums in the 23 wards
53.39

65.54

50
40
30

45.41

43.32
Average price for our single-family homes (built-for-sale)

2011

2012

2013

2014

2015*

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes
are for the period October 2014 - September 2015.
Condominium prices for 2015 are for the January - September period.

7

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary

 Condominium sales have been proceeding smoothly, with urban locations proving especially
popular.
 We have succeeded in maintaining a certain level of gross profit margin.
Revenue (¥million)

27,13622.9%

25,661FY2014

Number delivered
547

23.2%
20,038FY2013Gross profit margin

Gross profit (¥million)

5,695

FY2013

FY2015

405

5,944

311

4,589

FY201421.0%

FY2013

FY2015FY2014FY2015FY2013

FY2014FY2015Major condominium projects in FY2015 4Q
FY2013

FY2014FY2015

Inc. (Dec.)

Revenue （¥ million）

27,136

25,661

20,038Gross profit (¥ million)

5,695

5,944

Gross profit margin (%)

21.0

Number delivered

547

Name

Units

Average price(21.9%)

Open Residencia Minami-Aoyama 3-chome

33¥90million

4,589(22.8%)

Open Residencia Meguro Aobadai Terrace

29¥80million

23.2

22.9

(0.3)

Open Residencia Sakura-Shinmachi 2-chome

27¥70million

405

311

(94)

Open Residencia Takanawadai

34¥60million

8

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary

 Backed by the BOJ’s monetary easing policies, active trade in revenue-generating properties
helped to drive a rapid expansion of the real estate sales business.
 Revenue has grown 2.5-fold YOY, reaching ¥41.6 billion in just four years since our first
venture into the business.
Revenue (¥million)

Gross profit (¥million)
8,802

41,620

108

22.8%

21.7%
3,586

16,528

21.1%

47
25

1,588

6,962
FY2013

Number delivered

Gross profit margin

FY2014

Revenue （¥ million）
Gross profit (¥ million)

FY2013

FY2014FY2015FY2013

FY2014FY2015

Inc. (Dec.)

6,962

16,52841,620151.8%FY2015

1,588

3,586

8,802

145.4%FY2013

FY2014

22.8

21.7

21.1

(0.6%)

By property size*

19

19

25

47

108

+61

62
Number delivered

FY2014FY2015

Breakdown of properties owned (as of the end of September 2015)

Ｎ＝100

Gross profit margin (%)

FY2013

FY2015

By useBy location

42

34

10
16

Ｎ＝100

Ｎ＝100

14

60

24

≤¥100 MIL

Condminium>¥100 MIL ≤¥500 MIL

Office building>¥500 MIL

Complex building(＊Based on book values at the end of September 2015)

Tokyo
Kanagawa
Kansai and Chubu area
Other Kanto area, etc.

9

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary The performance of Asakawa Home. in its existing business of construction contracting toconstruction companies in the greater Tokyo area improved YOY.

 Open House Development Co., Ltd. (OHD) doubled the subcontracting assigned to Asakawa* OHD：株式会社オープンハウス・ディベロップメント
Home., which contributed to a stable supply of single-family homes for the group.

Made consolidated subsidiary in January 2015
(January - September performance)

Up 24.0%

FY2015

Revenue (¥ million) *1

21,346Gross profit (¥ million) *1

3,067

Gross profit margin (%)

14.4

Number delivered *2

1,543

1,540
2014
Jan. - Sept.

1,910

2015
Jan. - Sept.

*1 Figures for revenue and gross profit include offsetting of internal transactions.
*2 Number delivered is the number of single-family homes subcontracted.

Revised fiscal period for Asakawa Home.
Purpose:The purpose of revising the fiscal period is to make it consistent
with that of Open House, thereby making consolidated business
management more efficient.
Details:
The move shifts the end of the fiscal year from December 31 to
September 30. Thus, FY2015, the transition fiscal year, is ninemonths long (January - September).

Up 15.5%

1,406

1,624

2014
Jan. - Sept.

2015
Jan. - Sept.

Up 113.4%

134
2014
Jan. - Sept.

286
2015
Jan. - Sept.
10

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)

Non-operating income and expenses

SG&A expenses

SG&A
expenses

7,248

6.5%

6.7%

Non-operating
income

180

0.2％

0.2%

Personnel
expenses

1,898

1.7%

2.0%

Foreignexchange gain

119

0.1%

0.1%

Sales
commissions

670

0.6%

0.9%

Others

61

0.1%

0.1%

Generalexpenses

987

0.9%

0.9%

Non-operating
expenses

1,044

0.9%

0.7%

Advertisingexpenses

912

0.8%

0.6%

Interest
expenses

794

0.7%

0.5%

482

0.4%

0.3%

Commissions

129

0.1％

0.1%

2,297

2.0%

2.1%

Others

120

0.1%

0.1%

Promotion
expenses
Others

The increase in SG&A expenses was attributable to factors such as growthin personnel and general expenses associated with hiring new employees,
office openings, and other activities including making Asakawa Home. a
consolidated subsidiary, as well as growth in sales commissions in theproperty resale business due to increased sales of properties.

The increase in non-operating expenses was due to factors such asincreased interest expenses resulting from the rising balance of longand short-term debt and increased commissions, despite lower
interest rates due to the company’s improved credit rating.
11

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)

Current assets

98,196

Liabilities

63,530Cash and cash
equivalents

26,426

Current liabilities

46,269Inventories

63,368Long-term liabilities

17,261Others8,401

Fixed assets

2,358

Net assets

37,047

Tangible fixed
assets720

Shareholders’ equity

37,088Intangible fixed
assets161(41)

Investments andother assets

1,476

Other accumulatedcomprehensive
incomeTotal liabilities andnet assets

100,577

Deferred assets
Total assets

23
100,577

The increase in assets was due to various factors, including making
Asakawa Home. a consolidated subsidiary and increased inventories
through the proactive acquisition of lands and properties in the realestate sales business.

Liabilities increased due to various factors, including making Asakawa
Home. a consolidated subsidiary and raising funds primarily throughborrowing to purchase lands and properties in the real estate sales
business.
12OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)Sep. 30, 2013

(Ratio)Sep. 30, 2014
<A>

(Ratio)Sep. 30, 2015
<B>

(Ratio)Inc. (Dec.)<B>-<A>

Single–family homes

21,47650.3%

35,08055.4%

46,741

45.6%

11,661

Condominiums

14,30933.5%

13,68321.6%

13,101

12.8%

(582)

Property resales

6,741

15.8%

14,09022.2%

34,586

33.7%

20,496

Asakawa Home

－

－

－

－

7,756

7.6％

7,756

Others

203

0.5%

513

0.8%

428

0.4%

(84)

42,730100.0%

63,368100.0%

102,614100.0%

39,246

Total

874.4
659.6

633.6

938.1

1026 .1

722.7

542.3

560.4

2013.9.30
214.7

2013.12.31
259.2

2014.3.31
300.1

2014.6.30
335.2

2014.9.30
350.8

2014.12.31
370.0

2015.3.31
399.5

2015.6.30
424.3

2015.9.30
467.4

Condominiums

143.0

163.6

137.7

167.7

136.8

160.3

146.1

165.8

131.0

Property resales

67.4

114.9

117.7

151.9

140.9

186.6

244.8

263.3

345.8

Asakawa Home

―

―

―

―

―

―

78.1

80.2

77.5

427.3

(100 million yen)

Single –family homes

13OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary(Million yen)

- Recording of income before taxes andminority interests- Increased inventories- Income taxes paid, etc.

Cash flows from operating activities(11,382)(15,216)

Cash flows from investing activities(2,620)1,769- Proceeds from withdrawal of time deposits- Purchase of stock of Asakawa Home., etc.

12,49532,290- Increases in short-term and long-term loans
payable; issuance of bonds- Purchase of treasury stock- Cash dividends paid, etc.

Effect of exchange rate changes on cash
and cash equivalents

83

55

Net increase (decrease) in cash and cash
equivalents(1,424)18,899Cash and cash equivalents at beginningof period

25,85024,426

Cash and cash equivalents at end of
period24,42643,325

Cash flows from financing activities

14

OPEN HOUSE CO.,LTD.

FY2015 Consolidated Summary

Stock split

Purposes: To increase share liquidity and make it easier for investors to invest in the company
Summary: Two-for-one split of common stock with an effective date of July 1, 2015

Dividend increase
Policy:To ensure continuing stable dividends that account for future business development, strengthening financial
standing, and other factors; payout ratio: 10 - 20%
Summary: Increases in dividends announced twice in connection with upward revisions to business performance forecasts in
February and May 2015

Shareholder Benefits Program
Purposes:

To express gratitude for continued shareholder support for the company and to make company stock more
attractive to investors, thereby increasing the number of shareholders who hold company stock for the longterm, as well as to provide shareholders with opportunities to more broadly understand the group’s businesses(Begun with a basis date of September 30, 2015)

Details of benefits

Shares held continuously for lessthan three years

Shares held continuously forthree years or longer(i) Benefits when purchasing homes brokeredby the company or sold by the group100,000 yen cash back

300,000 yen cash back

3,000 yen card

5,000 yen card(ii) Quo card

Share liquidity is improving, as demonstrated
by YoY growth in monthly trading value and number of shareholders.

Trading Value(¥million)

30,00020,00010,000

10,586as of Sept. 2015

Number ofshareholders:
3,241 as of
Sept. 2014

Number ofshareholders

10,000
5,000

0

0
Sep.

2014

Oct.

Nov.

Dec.

Jan.

2015

Feb.

March

April

May

June

July

Aug.

Sep.

OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

Consolidated Business Performance Forecasts for FY2016

 As strong growth continues, revenue in FY2016 is projected to exceed ¥200 billion.
 We expect to record new record highs in revenue and income for the fourth consecutive year
and to continue increasing dividends for the third consecutive year since our IPO.

（単位：百万円）(Million yen)

FY2014
Actual results

FY2015
Actual results

FY2016YOY

Forecast

YOY

Revenue

Operating income
Ordinary income
Net income
EPS (yen)
Annual dividends per
share (yen) *1*2

Payout ratio (%)*1 The company undertook a two-for-one split of common stock with an effective date of July 1, 2015.
Calculations of annual dividends per share and EPS for FY2014 assume that the stock split occurred at the start of that year.
*2 Breakdown of dividends: common dividend ¥17.50, commemorative dividend ¥2.50

17

OPEN HOUSE CO.,LTD.

Consolidated Business Performance Forecasts for FY2016

 We revised our business segments from FY2016 to disclose information reflecting theconditions of each business to better depict growth in the scale of operations within the realestate sales business other than single-family homes.
 We shifted from three segments based on type of business to six segments based on business
management units.
<Before revision to segments><After revision to segments>

5,728

7,255

26.7%

Real estate sales

108,760

175,192

61.1%

Single-family homes

66,10091,466

38.4%

Condominiums

25,661

20,038(21.9%)

Property resales

16,52841,620151.8%Asakawa Home *1-

21,346-

Others

469

720

53.6%

Real estate financing

376

384

2.0%

Adjustments(2,720)(3,514)-

Total

112,145

179,31759.9%

Real estate brokerage*1 Revenue by segment (before revision) includes offsetting of internal transactions.

(Million yen)

Brokerage

7,255

9,000

24.0%

Single-family homes

91,466

115,000

25.7%

Asakawa Home *2

23,12236,00055.7％

Condominiums

20,03818,500(7.7%)

Property resales

41,62071,00070.6%

Others

1,160

1,000

(13.8%)

Adjustments(5,344)(10,500)-

179,317240,000

33.8%

Total

*2 Revenue by segment (after revision) excludes offsetting of internal transactions.

18OPEN HOUSE CO.,LTD.

OPEN HOUSE CO.,LTD.

Future Business Strategies

 Revenue is projected to grow at an annual average of approximately 35% from FY2013 throughFY2016 (forecast).

 Management resources will be allocated in accordance with market conditions. The single-family
home related business represents the central business pillar.
(100 million yen)

Brokerage

47

5%

57

5%

22%

72

4%

27%

90

4%

24%

Single-family homes

586

60%

661

59%

13%

914

51%

38%

1,150

48%

26%

Asakawa Home *1

-

-

-

-

-

231

13%

-

360

15%

56％

Adjustments

(21)

(2%)

(27)

(2%)

-

(53)

(3%)

-

()105

(4%)

-

Single-family homes
total

611

63%

691

62%

13%

1,165

65%

69%

1,495

62%

28%

Condominiums

271

28%

256

23%

(5%)

200

11%

(22%)

185

8%

(8%)

Property resale

69

7%

165

15%

137%

416

23%

152%

710

30%

71%

Others

17

2%

8

1%

(51%)

11

1%

37%

10

0.4%

(14%)

969

100%

1,121

100%

16%

1,793

100%

60%

2,400

100%

34%

Total

*1 Revenue before offsetting internal transactions

OPEN HOUSE CO.,LTD.

Future Business Strategies

 Continue opening several sales centers each year to establish deeper roots in our dominantarea; advance into areas around the 23 wards of Tokyo.

24.0%
26.7%
21.6%

9,000
5,728
FY20147,255

FY2015FY2016 (planned)

FY2015October 2014: Kawasaki Sales Center opened
April 2015: Kichijoji Sales Center opened
July 2015: Jiyugaoka Sales Center opened
Opened in FY2016
October 2015: Shin-Yokohama Sales Center opened(Several sales centers planned to open)
Current operating sales centers (as of November 2015)
Tokyo (23 wards): 11 centers
Tokyo (outside the 23 wards): 1 center
Kanagawa Prefecture: 5 centers
21

OPEN HOUSE CO.,LTD.

Future Business Strategies

 The single-family home business accounted for more than 100 billion yen in revenue this fiscal
year. Our goal is to achieve further growth in this business area.
Leveraging the price advantages generated by rising prices of new
condominiums
25.7%
12.7%

66,100FY2014

 Establishing deeper roots in our dominant area (the 23 wards of Tokyoand the cities of Kawasaki and Yokohama in Kanagawa Prefecture)

38.4%

91,466FY2015

 Advancing into areas around the 23 wards of Tokyo that are experiencing
continuing population growth, thanks to convenient commuting
distances to central Tokyo

115,000

FY2016(planned)

Continuing to grow the single-family home business

FY2014FY2015FY2016(planned)

70

Built-for-sale houses

550

886

1,250

60

Lands

817

964

1,100

50

By type of sale(Million yen)

Average price for new condominiums in the 23 wards

Built-to-order houses

426

581

700

40

Built-for-sale houses＋lands

1,367

1,850

2,350

30

65.54

53.39
43.32
45.41
Average price for our single-family homes (built-for-sale)
2011

2012

2013

2014

2015*

Source: MLIT, “Monthly marketing report of lands”
Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes
are for the period October 2014 - September 2015.
Condominium prices for 2015 are for the January - September period.

22

OPEN HOUSE CO.,LTD.

Future Business Strategies

 Leveraging Asakawa Home’s construction capacity to double number delivered to OHD
Efforts to improve efficiency associated with making Asakawa Home aconsolidated subsidiary Growing the numbers of homes and residence buildings that can be built
under contract by shifting resources from rural to urban areas

55.7%

 Expanding the area for construction under contract with OHD from Kanagawa
Prefecture to include the 23 wards of Tokyo
360

231
FY2015FY2016(planned)

Cutting costs and expenses by standardizing conditions for group clients
Improving efficiency and cutting costs in the contracting business* Revenue before offsetting internal transactions

101.8%Developing an apartment building contracting
business targeting rental property managers
and landowners seeking to put their land to use

FY2014 ranking of wooden housing(Based on survey by Japan Forest Products Journal)
1st place

193.4%

450
223
76
FY2014FY2015FY2016(planned)

Ranking of number of three-story wooden
residences supplied in the Kanto area: 1st place
Kanto builders: Home builders supplying residences chiefly in the
Kanto area
Calculation method: Numbers of homes and residence buildings
supplied by OHD and Asakawa Home totaled for FY2014

23

OPEN HOUSE CO.,LTD.

Future Business Strategies

 Careful business development stressing profitability per project, with a focus on central urban
locations Developing condominiums chiefly in premium areas located nearurban centers-5.4%-21.9%

-7.7%

256
200

FY2014FY2015

 In addition to family-type condominiums, strengthening efforts
targeting compact condominiums for single residents, DINKs, andother potential buyers drawn to condominium living

185

Delivering distinctive condominiums in central urban locations

FY2016(planned)

Condominium prices have risen to levels above those prior to
the financial crisis precipitated by the Lehman Brothers collapse.
7,000
40,0006,120

Average price (10,000 yen)<right axis>

0

Planneddelivery dateOpen Residencia Kagurazaka Namikidori

18

May 2016

Open Residencia Ebisu The House

25

June 2016

Open Residencia Nihonbashi Mitsukoshimae

19

July 2016

Open Residencia Yoyogi The House30

September 2016

6,554
6,000

20,000

Units

Name

5,190

Number of units supplied <left axis>

5,000

4,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*

* For 2015 only: January - September performance
Source: MLIT, “Monthly marketing report on lands”

24OPEN HOUSE CO.,LTD.

Future Business Strategies

 Acquisition of properties through cooperation with single-family and condominium purchasing
staff capable of providing a wide range of information on central urban areas
Trends in revenue and YOY%(¥million) 70.6%

 Closely monitoring factors such as financial conditions, including interest
rates and lending inclinations at financial institutions and trends indemand among real estate investors

70.6%

151.8%
137.2%

 Reducing risks posed by potential price drops by shortening holding
periods, with no major changes in the dimensions, uses, or locations ofproperties held

71,000Continuing to enhance property acquisitions andsales in the property resale business

41,62016,528FY2014FY2015FY2016(planned)

Earnings structure (¥100million)

Revenue

FY2014FY2015FY2016(planned)

165

416

710

By property size*

19=

Property resales

Breakdown of properties owned (as of the end of September 2015)

Gain on sale
(flow)

Sale amount

155

401

690

Ｎ＝100

62

＋
Rental earnings(stock)Rental income
Inventories (averageduring period)

19

9
104

14
243

20
-

By useBy location

42

34

10

16

Ｎ＝100

Ｎ＝100

14

60

24

≤¥100 MIL

Condminium>¥100 MIL ≤¥500 MIL

Office building>¥500 MIL

Complex building

Tokyo
Kanagawa
Kansai and Chubu area
Other Kanto area, etc.

(＊Based on book values at the end of September 2015)

25

OPEN HOUSE CO.,LTD.

Future Business Strategies New business domains to be addressed this fiscal year through portfolio management

Current core businesses

Brokerage(New single-family homes)

Businesses to be addressed
this fiscal year
Built-to-order houses(Individuals)

Single-family homes(Development, subdivision)

Construction contracting(Corporate)

Wooden apartments(Contracting)Condominiums(Development, subdivision)

Property resales

Brokerage(Existing homes, remodeling)(Purchase, sale)26

OPEN HOUSE CO.,LTD.

Future Business Strategies

Target Indicators
 Ordinary income ratio: 10%; ROE: 20%; equity ratio: 30%
 We continue to maintain a course of strategic investment that targets growth while
maintaining a balance between financial soundness and capital efficiency.
(Million yen)27

OPEN HOUSE CO.,LTD.

Future Business Strategies

Strengthening the Management StructureContinuing to strengthen the management structure and enhance corporate governance

Current directors

President and CEO:

Masaaki Arai

Senior Managing Director: Hitoshi Imamura
Director:

Ryosuke Fukuoka

Director (Outside):

Kunichiro Adachi

Newly appointed directors
Director:

Kazuhiko Kamada＜Formerly Representative Director and CEO, Intelligence, Ltd.＞

Director:

Kotaro Wakatabi＜Currently Executive Officer, Corporate Planning Division＞

Director (Outside):

Hitoshi Ishimura＜Formerly Representative Director and Vice President, Resona Bank, Ltd.＞

Plans call for a resolution on the above appointments to be tabled at the regular general meeting of shareholders scheduledfor December 22, 2015.

28

――Disclaimer ――This document contains forward-looking statements concerning future business performance. These statements include
company forecasts based on information available at the time of publication and involve potential risks and uncertainties.
They do not constitute a guarantee of future results. The information provided herein is subject to change without notice; noguarantees are provided with regard to the accuracy or reliability of such information.
This document is provided for informational purposes only. It does not constitute a solicitation to invest.