.

OPEN HOUSE CO.,LTD.

FY2015 2Q Summary

2Q
Highlights

 Revenue and income were at record highs for a six month period.
Revenue for FY2015 2Q YTD¥ 78.5 billion (+42.9% YOY)
Operating income for FY2015 2Q YTD ¥ 8.5 billion (+13.2% YOY) Single-family homes: Revenue increased by + 41.0% YOY
 Resale properties:
Revenue increased by +202.2% YOY
 Condominiums:
The contract ratio of units to be delivered reached 99%

Asakawa home was consolidated as a subsidiary in FY2015 2Q
 Revised upward the previous forecast for FY2015
Revision ofbusiness forecast

Revision ofdividend forecast

Stock Split

Revenue
Operating Income¥166 billion → ¥175 billion (+56.0% YOY)
¥17.4 billion → ¥20.0 billion (+45.5% YOY) Annual dividend per share for FY2015 is planned to pay ¥60, an
increase of ¥10 from the previous forecast. ＊Post-split basis : ¥30

 One share of common stock will be split into two shares ofcommon stock as of June 30, 2015.
2

Ⅰ. FY2015 2Q Consolidated Financial Results

4

Ⅱ. Business Performance Forecast for FY2015

10

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 Revenue and income increased significantly, and achieved record-high for a six month period.

（Million yen）

FY2014 2Q

FY2015 2Q

YOY%% of Revenue% of Revenue

10,940

19.9%

17.6%

3,382

6.2%

6.7%

7,557

13.7%

10.9%

Non-operating income

81

0.1%

0.2%

101.8%

Non-operating expenses

566

1.0%

0.7%

3.6%

7,072

12.9%

10.4%

4,203

7.6%

6.5%

54,993

SG&A Expenses

55.8%

4

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 Revenue of “real estate brokerage” and “real estate sales” increased steadily.
 Sales growth of “single-family homes” and “resale properties” absorbed decline in revenue fromcondominiums due to expected delivery of condominiums specifically in the second half of the
fiscal year.
 “Asakawa Home” was added as a new reportable segment of real estate sales.
（Million yen）

FY2014 2Q* Actual results from January 1, 2015 to March 31, 2015

YOY%
2,572

32.0%

53,42943.4%

31,50541.0%

14,768△73.5%

7,026

202.2%

-

-

129

24.7%

190

0.7%

△1,198-54,99342.9%
5

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 Kawasaki brokerage office opened in October 2014 and expanded sales
operations to 14 brokerage offices in FY2015 2Q.

 Operating income margin improved significantly due to decreasing
fixed cost ratio.
 Units sold, a leading performance indicator of sales has maintained
over 20% YOY growth after consumption tax hike.
Revenue(¥million)
3,395

2,195

Operating income margin

Operating income (¥million)
1,171

2,572

Units sold
1,073

34.5%
32.7%

840

820
684

653
29.7%

FY13 2Q FY14 2Q FY15 2Q

Revenue （¥million）
Operating income （¥million）
Operating income margin
Units soldFY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

2013 2Q

2014 2Q

2015 2Q

Inc./Dec.

2,195

2,572

3,395

32.0%

653

840

1,171

39.5%

29.7%

32.7%

34.5%

+1.9%

684

820

1,073

+253

FY13 2Q FY14 2Q FY15 2Q

Changes in quarterly units sold and Percentage of units soldfrom the same quarter of the precious year
123.7%

121.8%

132.9%

135.9%
125.6%

116.4%

402

418

503

505

505

568

1Q
FY2014

2Q

3Q

4Q

1Q
FY20152Q

6

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results Against a backdrop of increasing rate of net-migration for Tokyo’s 23
wards, Central Tokyo area has a steady demand for residences. Under
such situations, the price of condominiums has been risingcontinuously. As a result, customers who purchase single-family
homes from Open House Group increased because they find ourhomes to be reasonably priced.
Revenue

Gross profit margin

Gross profit (¥million)(¥million)

Units sold

7,068

858

44,421

27,76431,505

4,918

15.6%

3,756

15.9%

558

658

13.5%

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q¥million2013 2Q

2014 2Q

2015 2Q

Inc./Dec.

Revenue （¥million)

27,76431,50544,42141.0%

60

Gross profit（¥million）

3,756

4,918

7,068

43.7%

50

Gross profit margin (%)

13.5%

15.6%

15.9%

+0.3%

40

558

658

858

+200

30

Units soldFY13 2Q FY14 2Q FY15 2Q

70
Average price of newly built condominiums in Tokyo's 23 wards

Average price of single family homes provided by Open House Group
2011

2012

2013

2014

2015*

* Average price from January, 2015 to March, 2015
Source: MLIT “Monthly marketing report of lands”

7OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 For FY2014 2Q, the delivery of condominium units within March 2014
increased due to rush demand in advance of the consumption tax hike.
For this reason, revenue for FY2015 2Q decreased compared with FY
2014 2Q
 The contract ratio of units to be delivered in FY2015 reached 99%

Revenue(¥million)

Gross profit margin

Gross profit (¥million)

14,768

Units sold

224

3,554
24.1%
26.3%

2,563

3,912

742

674

FY13 2Q FY14 2Q FY15 2Q

2013 2Q

2014 2Q

2015 2Q

Inc./Dec.

Revenue （¥million）

2,563

14,7683,912△73.5%

Gross profit（¥million）

674

3,554

742

△79.1%

Gross profit margin (%)

26.3%

24.1%

19.0%

△5.1%

43

224

66

△158

Units sold66

43

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

19.0%

FY13 2Q FY14 2Q FY15 2Q

Major projects delivered in FY15 2Q

Units

Average priceOpen Residencia Yamate127

22¥60million

Open Residencia Asagaya

24¥50million

Open Residencia Bunkyo-sendagi

18¥60million
8

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 Taking advantage of expansion of the real estate
investment fund market, revenue increased by 3 times YOY.
 Opening Osaka office in January 9, 2015.
 Expanding business to Osaka and Nagoya areas.
Revenue

Gross profit margin

Gross profit (¥million)(¥million)

Units sold

4,247
21,233

53

25.5%

7,026

20.0%

18.9%

1,792

20
9

3,229

609

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

FY13 2Q FY14 2Q FY15 2Q

Breakdown of properties owned for resale (as of the end of March 2015)
Number of owned properties=78

2013 2Q

2014 2Q

2015 2Q

Inc./Dec.

Revenue （¥million）

3,229

7,026

21,233202.2%

Gross profit（¥million）

609

1,792

4,247

136.9%

By property
size*

Gross profit margin (%)

18.9%

25.5%

20.0%

△5.5%

48

9

20

53

+33

Units sold

13

17

17

36

By property
type of use
25≧¥100 MILOver ¥100 MIL to ¥500 MIL<¥500 MIL
*Based on book values at the end of March.

Condminium
Office building
Complex building

9

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results

 Operating construction business for real estate companies and builders mainly in the Tokyo
Metropolitan Area, based on the policy of “providing environmentally friendly high-grade, lowcost products”.
 Corporate orders remained firm due to the immaterial impact of the consumption tax hike.
Operating results for FY2015 2Q

Revenue¥ 6,912 million

OrdersPlan to be delivered (from January2015
to September 2015)

Gross profit¥ 991 million

Orders (as of the end of March, 2015)

Gross profit margin14.3 %－ Orders on-handUnits sold *519－ Construction completed

Date of the execution of the share purchase

January 15, 2015

Voting rights holding ratio
Starting date to be included in the scope of
consolidation
Acquisition Price
Goodwill value

100.0%

Build to order in intergroup transactions(monthly average, unit)

Amortization method and period
Amortization of goodwill

Goodwill is evenly amortized over 10 years.

(From January 1, 2015 to March 31, 2015)

1,430
1,688
1,169
519

*Including 44 intergroup transactions(As of the end of December, 2014)(Forecast : from January, 2015 to December, 2015)

January 1, 2015¥7.93 billion

FY2014FY20151226¥1.37 billion¥0.1 billion

10OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results（Million yen）

Non-operating income・ Non-operating expenses

S&G expenses
FY2014 2Q

FY2014 2Q

Inc./Dec.

% of
Revenue

3,382

6.2％

6.7%

Personnel
expenses

910

1.7%

1.9%

Sales commissions

322

0.6%

0.9%

Office rent, utilities
expense, etc.

461

0.8％

0.9％

Advertisingexpenses

384

0.7%

0.6%

Promotion
expenses

268

0.5%

0.2%

1,035

1.9%

2.1%

OthersInc./Dec.

% of
Revenue Increase in S&G expenses is mainly due to financial impact
related to be the 100% consolidation of Asakawa Home; anincrease of personnel cost and newly opened office
expenses and increasing sales commissions in “Resale
properties.

81

0.1％

0.2%

Foreign exchange gain

50

0.1%

0.1%

Others

31

0.1%

0.1%

566

1.0％

0.7%

Interest expenses

410

0.7%

0.6%

Commissions

86

0.2％

0.1％

Others

69

0.1%

0.1%

 Increase in Non-operating expenses is a result of anincrease in short-term and long-term loans despite,banks' lending rates have declined by improving credibility.

11

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results(Million yen)Sep 30, 2014

Current assets

March 31, 2015 Inc./Dec.

Sep 30, 2014 March 31, 2015 Inc./Dec.

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 assets

720

Shareholders’ equity

37,088Intangible fixed assets

161

△41

Investments and otherassetsOther accumulatedcomprehensive
income1,476

Total liabilities andnet assets

100,577

Deferred assets
Total assets

23
100,577

 Increase in “Total assets” is a result of financial impact
related to be the 100% consolidation of Asakawa Home.
 Increase in “Inventories “is from steady purchasing ofboth residential and commercial properties in our “Realestate sales”.

 Increase in liabilities is mainly associated with land andproperty purchases in our “Real estate sales”, and related tobe the 100% consolidation of Asakawa Home.

12

OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results(Million yen)Sep. 30, 2013

(Ratio)Sep. 30, 2014
<A>

(Ratio)Mar. 31, 2015
<B>

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

Single –family homes

21,47650.3%

35,08055.4%

39,953

45.7%

4,873

Condominiums

14,30933.5%

13,683

21.6%

14,611

16.7%

928

Resale properties

6,741

15.8%

14,09022.2%

24,48028.0%

10,389Asakawa Home

－

－

－

－

7,816

8.9％

7,816

Others

203

0.5%

513

0.8%

577

0.7%

63

42,730100.0%

63,368100.0%

87,440100.0%

24,072

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

Condominiums

143.0

163.6

137.7

167.7

136.8

160.3

146.1

Resale properties

67.4

114.9

117.7

151.9

140.9

186.6

244.8

Asakawa Home

－

－

－

－

－

－

78.1

Total

(100 million yen)

Single –family homes

13OPEN HOUSE CO.,LTD.

I. FY2015 2Q Consolidated Financial Results（Million yen）

FY2014 2Q

FY2015 2Q

Cash flows from operating activities△8,931△11,457

Cash flows from investing activities△2,150

1,992— Withdrawal of time deposits.

4,844

22,190— Increase of short term andlong term borrowing due topurchase of treasury stock anddividend payment

44

53

Net increase (decrease) in cash and cash
equivalents△6,193

12,778Cash and cash equivalents at beginning of theperiod25,85024,426

Cash and cash equivalents at end of theperiod19,656

37,204

Cash flows from financing activities

Effect of exchange rate changes on cash andcash equivalents— Increase in inventories

14Ⅰ. FY2015 2Q Consolidated Financial Results

3

Ⅱ. Business Performance Forecast for FY2015

16

OPEN HOUSE CO.,LTD.

Ⅱ. Business Performance Forecast for FY2015

 Previous Forecast released on Feburuary13, 2015
We revised its forecast of consolidated operating results for FY2015 on February 13, 2015.
These revisions are based on recent results, and reflecting the forecast of operating results of “Asakawa
Home” that became a consolidated subsidiary on January 15, 2015.
 Revised Forecast released on May 15, 2015
Based on the performance in the first half, and a review of the forecast in the second half, we revised its
forecast of consolidated operating results for FY 2015 on May 15, 2015.
(Million yen)

FY2015FY2014
Actualresults

Initial Forecast

Previous Forecast

Revised Forecast

released on
2014.11.13

released on
2015.2.13 (A)released on
2015.5.15 (B)Change(B)-(A)

YOY%

Revenue

112,145

145,000

166,000

175,000+9,00056.0%

Operating income

13,746

15,70017,40020,000+2,60045.5%

Ordinary income

12,882

14,50016,30019,000+2,70047.5%

Net income

7,763

9,100

10,30012,000+1,70054.6%

16

OPEN HOUSE CO.,LTD.

Ⅱ. Business Performance Forecast for FY2015

FY2014(Million yen)

Real estate brokerage

FY2015Initial Forecast
2014.11.13

Actual results

Previous Forecast
2015.2.13(A)Revised Forecast
2015.5.15 (B)Change(B)-(A)

YOY%

5,728

7,150

7,150

7,300

+150

27.4%

108,760

141,000

162,000

170,800+8,80057.0%

Single–family homes

66,10090,00090,00090,000-36.2%

Condominiums

25,661

20,00020,00020,000- △22.1%

Resale properties

16,52830,00032,00041,000+9,000148.0%Asakawa Home**--

19,00019,500

+500

-

469

1,000

1,000

300

376

350

350

400

+50

6.2%

△2,720△3,500△3,500△3,500--112,145

145,000

166,000

175,000+9,00056.0%

Real estate sales

OthersReal estate financing
Adjustments
Total△700 △36.1%

17

OPEN HOUSE CO.,LTD.

Ⅱ. Business Performance Forecast for FY2015

 Previous Forecast released on Feburuary13, 2015
We revised the dividend forecast from the annual dividend amount of 40 yen to 50 yen with reflecting recent result
trends and the forecast of operating results of “Asakawa Home” that became a consolidated subsidiary on January 15,
2015.
 Revised Forecast released on May 15, 2015
In view of recent results in performance, annual dividend per share for FY2015 is planned to pay ¥60, an increase of¥10 from the previous forecast released on February 13, 2015. （Post-split basis : ¥30 ）FY2014
Actual(A)

FY2015Initial Forecast

November 13, 2014

Previous Forecast

Revised Forecast

(B)

(C)

Feburuary13, 2015

May 15, 2015

Change(C)-(B)

Inc./Dec.
(C)-(A)

Annual dividends per share (yen)

40.00

50.00

50.00

60.00

+10.00+20.00<Post-split basis>

20.00

20.00

25.00

30.00

+5.00

+10.00Total dividends (million yen)

1,148

1,148

1,435

1,722

+287

+574

275.50314.54359.97419.38137.75157.27179.99209.69

Payout ratio (%)

14.5

12.6

13.9

14.3

Basic policy on profit distribution

Our basic policy is to maintain stable payouts with consideration to futurebusiness development and strengthening our financial base.

Dividend payout ratio

Target 10－20％

EPS (yen)18

OPEN HOUSE CO.,LTD.

Ⅱ. Business Performance Forecast for FY2015

The stock split will be conducted to increase the liquidity of the Company’s stock and provide a moreadvantageous environment for investors.

1. Method of Stock split

One share of common stock will be split into two shares of common stock base on a shareholders list as ofJune 30, 2015.

2. Increase in number of shares from split
1) Total number of issued shares before stock split

28,700,000 shares

2) Increase in number of shares by stock split

28,700,000 shares3) Total number of issued shares after stock split

57,400,000 shares

4) Total number of authorized shares after stock split

162,600,000 shares

3. Schedule
1) Record date of public notice

Monday, June 15, 2015

2) Record date

Tuesday, June 30, 2015

3) Effective date

Wednesday, July 1, 2015

19

This document and reference materials may contain forward-looking statements, but please understand that actual results
may differ significantly from these forecasts due to various factors.
This document is prepared for the purpose of information only, and subject to change without notice.