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 Second Quarter Ended September 30, 2019 〔Based on Japanese GAAP〕
May 15, 2019
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.com/ir
Masaaki Arai, President and CEO
May 15, 2019
June 11, 2019
Yes
Yes (for institutional investors and analysts, in Japanese)(Million yen, rounded down)

1.

Consolidated Financial Results for the Second Quarter Ended September 30, 2019
(October 1, 2018 to March 31, 2019)(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, 2019242,84642.9
23,79713.0
22,19310.0
March 31, 2018169,923
14.5
21,05615.5
20,16913.1(Note) Comprehensive income: Six months ended March 31, 2019
¥ 15,836 million [15.3％]
Six months ended March 31, 2018
¥ 13,740 million [17.4％]
EPS
Six months ended
March 31, 2019
March 31, 2018

Profit attributable toowners of parent
Million yen%

16,132
14,017

15.1
20.3

Diluted EPS
Yen

Yen

285.67251.24283.93249.27(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%March 31, 2019
401,444
123,28230.0
September 30, 2018393,367
113,486
27.0(Reference) Shareholders’ equity: As of March 31, 2019
¥ 122,964 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: No

3.

3Q-end

Yen
46.00
60.00

Year-end

Total

Yen―

Yen
52.00

Yen
98.00

―61.00121.00

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

Operating income

Ordinary incomeProfit attributable toowners of parent

Million yen%

Million yen%

Million yen%

Yen

Full year
510,000 30.5
54,00014.2(Note) Revision of the latest consolidated results forecast: No

51,50011.8

37,00016.3

655.17

Revenue
Million yen%Open House Co., Ltd. (3288)

EPS

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*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)
March 31, 2019:57,594,800 shares

September 30, 2018:57,512,500 shares

September 30, 2018:

2,235,080 sharesⅱ) Treasury stock at period-end
March 31, 2019:

1,347,171 sharesⅲ) Average number of shares issued during the period (quarterly consolidated cumulative basis)
March 31, 2019:56,474,038 shares

March 31, 2018 :

55,796,138 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 2Q(as of March 31, 2019)

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

114,585429
56,821
196,788
19,473
6,685(173)394,609

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

5,002
3,644
7,152
15,79935
410,444

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

4,039
16,14189,352452
17,237
7,969
2,913
17,821
155,927

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

1,260
129,58030787
0131,235
287,162

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

4,205
8,177
114,729(4,209)122,902

15
342
358
388
6,941
113,486
393,367

9
52
61
318
―
123,282
410,444

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, 2018
(From October 1, 2017
to March 31, 2018)

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

Revenue

169,923

242,846

Cost of revenue

138,196203,986

Gross profit

31,72738,859Selling, general and administrative expenses

10,67015,062

Operating income

21,056

23,797

Interest income

1136

Dividends income

1319

House rent income

4779

Non-operating income

Other

45

86

Total non-operating income

118

221

529

878

Commission fee

37737

Other

438

209

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary income

1,005

1,825

20,16922,193―772

Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Profit before income taxes―

772

20,16922,966

Income taxes

6,151

6,833

Profit14,017

16,132

Profit attributable to owners of parent

14,017

16,132

Open House Co., Ltd. (3288)

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Consolidated Quarterly Statements of Comprehensive Income(Million yen)Six months ended
March 31, 2018
(From October 1, 2017
to March 31, 2018)
ProfitOther comprehensive income

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

14,017

16,132

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

6(284)(6)(289)

Total other comprehensive income

(277)

(296)

13,74015,836

13,74015,836Comprehensive 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
Income 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 inventories
Increase (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 paidNet 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 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
OtherNet 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, 2018
(From October 1, 2017
to March 31, 2018)

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

20,169
202
(5)
0111
(24)
165
―
529
―
(91)
(33,887)
953(2,875)2,762(50)(2,002)(1,540)(15,581)24(539)(3,774)(19,871)

22,966
252
16
185
(56)
30(772)
878
653
(218)
(21,452)820(5,228)
1,581
98(3,208)450(3,011)52(870)(5,818)(9,649)(2,139)
2,139
(306)
(6)
―
(150)
1,001
(100)
290(117)14
11
637(5,983)
5,507(619)(96)
1,668(567)510(0)3(293)
22
16
169

59,609(44,565)
43,946(29,880)
(281)
―
32(0)
(1,952)
26,909(457)
7,217
90,91098,127

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

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(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 onAccounting 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 ¥193
million each for the second 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 second quarter, operating accounts receivable decreased by ¥1,068 million,
and contract liability which was included in “Other” in “Current Liabilities” increased by ¥859 million.
(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 second quarter under review.
(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 was changed to the presentation of “deferred tax assets” in the category of “Investmentand other assets”, and the presentation of “deferred tax liabilities” in “Non-current liabilities”.

Open House Co., Ltd. (3288)

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(Segment and Other Information)【Segment Information】
Ⅰ. Six months ended March 31, 2018 (October 1, 2017 to March 31, 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

Property
resales

OthersTotal

102,566

11,51350,8894,953

169,923―

169,923――

13―

13(13)―

Total

102,566

11,51350,903

4,953

169,937(13)

169,923

Segment Income (Loss)

13,513

927

6,248

809

21,498(441)

21,056

Intersegment revenueand transfers(NOTE)
１. Adjustment of ¥(441)million for segment income includes intersegment elimination of ¥15 million and corporate expenses of¥(457) 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, 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-family
Condominiums
homes related
Revenue
Revenue from Outside
Customers

Property
resales

OthersTotal164,959

20,76846,587

10,531

242,846―

242,846――26―

26(26)―

Total

164,959

20,76846,613

10,531

242,872(26)

242,846

Segment Income (Loss)

15,008

3,305

4,908

1,070

24,293(495)

23,797

Intersegment revenueand transfers(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.
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 loss
by reportable segment has been changed as same.
Compared with prior accounting methods, this application has resulted in a ¥204 million increase in revenue of Single family
homes related business, a ¥10 million decrease in revenue of other, and a ¥204 million increase in segment profit of Single
family homes related business, a ¥10 million decrease in segment profit of other.

Open House Co., Ltd. (3288)

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(Important Subsequent Events)
The Company resolved at a meeting of its Board of Directors held on March 15, 2019, to issue new shares (the“Issuance of New Shares”) as restricted stock compensation, and completed the payment on April 5, 2019.
1. Outline of the Issuance1) Payment dateApril 5, 20192) Class and number of shares to be issued

8,100 shares of common stock of the Company

3) Issue price

3,990 yen per share4) Total issue price of shares to be issued

32,319,000 yen

5) Allocation to capital

1,995 yen per share6) Total allocation to capital

16,159,500 yen

7) Allottees

3 Executive Officer of the Company 3,300 shares
4 Executive Officer of subsidiaries of the Company 4,800 shares

8) OtherIssuance of New Shares to be allotted is conditioned on the securities
registration statement taking effect in accordance with the Financial
Instruments and Exchange Act.

2. Purpose and Reasons for the Issuance
At a meeting of the Board of Directors held on November 14, 2017, the Company has resolved to introduce a
restricted stock compensation plan (hereafter the “Plan”) as a new compensation plan for the Company’s
executive officer (hereafter the “Eligible officer”), for the purpose of providing further incentive to them toincrease the stock price and the corporate value of the Company by further sharing the benefits and risks of stock
price fluctuations with shareholders.
Based on the resolution passed at its meeting of the Board of Directors of the Company and its subsidiaries heldon March 15, 2019, the Company resolved to allot 8,100 shares of the Company’s common stock as restricted
stock, by granting the Eligible officers monetary compensation claims of 32,319,000 yen as restricted stockcompensation for the business period ending September 2019, and the Eligible officers making in-kind
contribution of all such monetary compensation claims.

Open House Co., Ltd. (3288)

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(Issuance of Stock Acquisition Rights-Stock Options)
The Company resolved at a meeting of its Board of Directors held on April 2, 2019, to issue new shares as stock
options to employees of the Company.
1) Name of Stock acquisition rights to be issued

OPEN HOUSE CO., LTD Stock Acquisition Rights No. 7

2) The date of the Board of Directors resolution

April 2, 20193) Number of individuals with rights

7 employees of the Company

4) Class of shares for stock acquisition rights

Common stock of OPEN HOUSE

5) Number of shares for stock acquisition rights

14,000 shares

6) Payment on exercise of stock acquisition rights

132,700 yen (1,327 yen per share)7) The amount to be paid for the exercise of stockacquisition rights

413,100 yen (4,131 yen per share)

7) Period for exercise of stock acquisition rights

April 3, 2021 to April 2, 2029

8) Allocation to capital when shares are issued on
the exercise of stock acquisition rights

272,900 yen (2,729yen per share)9) Conditions for exercise of stock acquisition

10) Matters related transfer of the stockacquisition rights

1) The grantee shall be Director or employee of the Company or anyof its subsidiaries when he or she exercises the rights. However that
this clause shall not apply to cases where the Board of Directors
finds a justifiable reason for leaving the Company before exercising
the stock options, such as retirement due to the end of theindividual’s duties as a director or auditor.
2) In cases of death, the rights may be exercised by the heir only for aprescribed period of time. In this case, the share subscription rights
can be exercised only within six months from the date of death.
3) The number of the Stock Acquisition Rights that the Right Holder
may exercise during the period from (a) to (c) below shall be limited
to the number prescribed in these provisions. If there are any
fractions less than one unit in the number of the exercisable StockAcquisition Rights, the number shall be rounded down.
a) April 3, 2021 to April 2, 2024
One-thirds of the number of the Stock acquisition Rights allottedb) April 3, 2024 to April 2, 2027
Two-thirds of the number of the Stock acquisition Rights allottedc) April 3, 2027 to April 2, 2029
The rest of the number of the Stock acquisition Rights allotted
Any acquisition of Share Options by transfer will require an approvalof the Board of Directors of the Company by its resolution.

(Repurchase of Treasury Stock)
The Company resolved the repurchase of its own shares pursuant at the meeting of Board of Directors held on
May15, 2019 to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3.
1. Purpose
To enable us to execute a flexible capital policy in response to changes in the business environment
2. Details(1) Class of shares to be repurchased:

Common stock of OPEN HOUSE(2) Method of repurchase:

Market purchase(3) Total number of shares to be repurchased: 1,000,000 shares (maximum)(4) Total repurchase amount:

50 billion yen (maximum)(5) Repurchase period:

From May 16, 2019 to September 30, 2019

Open House Co., Ltd. (3288)

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