Consolidated Financial Highlights
for the Third Quarter of FY2024(2023/10-2024/6)

OPEN HOUSE GROUP CO., LTD.

[3288 TSE]FY 2024 3Q Topics

FY2024 3Q Financial Results Topics◆ The 3Q is progressing as expected.
Business
Performance
3Q FY2024

Net sales
Ordinary profit
Profit attributable to owners of parents

FY2024 3Q Results¥ 895.0 billion¥ 84.0 billion¥ 68.5 billion[114.0％YoY][88.9％YoY][111.6％YoY]◆ No changes to the full-year performance forecast as progress is on track with the plan.
Financial
Forecasts for
FY2024FY2024 Forecasts

Net sales
Ordinary profit
Profit attributable to owners of parents

Shareholder
Returns

Sustainability◆ Current treasury share acquisition
Previous Acquisition Record(up to end of April)¥ 1.3trillion¥ 120 billion¥ 92.5 billion[113.2％YoY][87.6％YoY][100.5％YoY]¥ 10 billion 2.5 million shares¥ 9.8 billion 2.2 million shares% of outstanding shares(excl. treasury shares):Eq. to 4% annually◆ With the improvement in ESG ratings, there has been an increase in new inclusions in ESG indices,such as the FTSE Blossom Japan Index and the MSCI Japan ESG Select Leaders Index.
2

FY 2024 3Q Topics

Renewal of Corporate Philosophy
The Group achieved a significant milestone by exceeding ¥1 trillion in sales for the fiscal
year ending September 2023.
As we aim for further expansion in our business and industries, our commitment tounderstanding and meeting our customers’ needs remains paramount.
With this in mind, we have renewed our corporate philosophy to serve as a guiding light for
the Group’s continued growth.

◼ Corporate Mission
To Thoroughly Pursue the Needs of Our Customers and Deliver Valuable Real Estate◼ Business Outlook
Embracing Integrity: Gaining
Society’s Trust Though Market
Engagement

Pursuing Growth with
Innovative Thinking Beyond
Conventions and Common
Practices

Actively Contributing toEnhancing Regional Vitality andCreating Vibrancy in theCommunity3

FY 2024 3Q Topics

Performance Highlights for the Third Quarter of FY 2024
➢ Single-family home sales contracts have bottomed out, and an improvement ingross profit margin is expected for the next fiscal year.
➢ In the Condominiums business, sales are progressing as planned, with deliveries
concentrated in the fourth quarter.
➢ High demand for property resale business continues.
➢ The number of properties under management for U.S. real estate has exceeded
5000 units.
➢ Maintained a healthy financial position with a 35.1% equity ratio and a net debtto-equity ratio of 0.6 times.
➢ Accelerated the three-year share acquisition plan, enhancing shareholder returns
and improving EPS.
4

FY 2024 3Q Topics

Shareholder Return◼ The 40 billion share acquisition plan outlined in the three-year basic policy will be
executed in full over two years.
◼ Additional share acquisition will be determined by the Board of Directors on a case-bycase basis, considering factors such as M&A activities.
Three-Year Medium-Term Management Plan (FY2024～FY2026)
First Year(Acquisition of 20 Billion Yen)

Second Year(Acquisition of 20 Billion Yen)

Nov 2023 to April 2024
(Acquired)
Acquisition amount:
9.8 billion yen
No. of acquired shares:
2.2 million shares

Third Year

• In the third and final year, decisions on
additional share acquisitions will bemade based on factors such as M&A
activity.
May 2024 to Sept 2024
(Current acquisition)
Acquisition amount:
10 billion yen
No. of acquired shares:
2.5 million shares
Nov 2024 to Sept 2025

(Future acquisition)
20 billion yen

5

1. 3Q FY2024 Consolidated Financial Summary

１．3Q FY2024 Consolidated Financial Summary

Consolidated Statements of Income (Summary)◼ Net sales and Profit attributable to owners of parent have consistently exceeded the previous year.
(¥ Million)

3Q FY2023

3Q FY2024(2022/10-2023/6)
Actual(2023/10-2024/6)% ofnet sales

ActualInc. (Dec.)% ofnet sales

785,330-

895,056-

114.0%

Operating profit

96,80912.3%

80,787

9.0%

83.5%

Ordinary profit

94,50912.0%

84,058

9.4%

88.9%

Profit attributable toowners of parent

61,415

7.8%

68,5657.7%

111.6%Net sales7

１．3Q FY2024 Consolidated Financial Summary

Performance by Segment (Net Sales/Operating Profit)◼ The condominium business is progressing as planned, with a concentration of handovers in the fourth quarter.
◼ High demand for the property resale business continues.

Net sales

Operating profit(¥ Million)

3Q FY2023(2022/10-2023/6)

3Q FY2024(2023/10-2024/6)

ResultRatio

ResultRatio

785,330

100.0%

895,056

100.0%

114.0%

96,80912.3%

80,787

9.0%

83.5%

Single-family homerelated business

432,005

55.0%

475,42653.1%

110.1%

49,08011.4%

43,104

9.1%

87.8%

Condominium

39,955

5.1%

24,778

2.8%

62.0%

5,347

13.4%

159

0.6%

3.0%

Property resale

128,317

16.3%

115,696

12.9%

90.2%

15,186

11.8%

8,183

7.1%

53.9%

Others (including U.S.
real estate business)

64,774

8.2%

74,4148.3%

114.9%

7,687

11.9%

8,645

11.6%

112.5%

Pressance
Corporation

121,293

15.4%

116,090

13.0%

95.7%

20,62117.0%

19,141

16.5%

92.8%

Meldia Co.

--

95,956

10.7%

-

-

-

3,873

4.0%

-

(1,015)-(7,305)--(1,113)-△2,320

-

-

Total

Adjustments

3Q FY2024(2023/10-2024/6)

3Q FY2023(2022/10-2023/6)

Inc.
(Dec.)% of Net
sales

ResultResultInc.
(Dec.)% of Netsales

8

１．3Q FY2024 Consolidated Financial Summary

Single-family Home Related Business (Overall)◼ Demand for single-family homes in metropolitan areas remains solid, and net sales have increased.
◼ An improvement of the gross profit margins is anticipated for the next fiscal year.
(¥ Million)

3Q FY2022

3Q FY2023

3Q FY2024(2021/10-2022/06) (2022/10-2023/06) (2023/10-2024/06)

Inc.
(Dec.)Net sales

376,558

432,005

475,426110.1%

Gross profit

70,11074,361

69,962

94.1%

Gross profit
marginOperatingprofitOperatingprofit margin

Net sales (¥ Billion）
432.0

376.5

3Q FY2022

3Q FY2023

Gross profit (¥ Billion)

475.4

70.1

74.3

69.9

3Q FY2024

3Q FY2022

3Q FY2023

3Q FY2024

Changes in the average price for new condominiums in the greater Tokyo area andaverage price for the Company’s single-family homes (built-for-sale)

18.6%

48,58812.9%

17.2%
49,080
11.4%

14.7%

43,1049.1%(2.5)pt

87.8%(2.3)pt

90
80
70
60
50
40
30

Average price for new condominiums in Greater Tokyo Area（¥ Million）

49.29

50.60
42.83

55.18
43.32

58.71

59.80

60.83

62.60

44.77 44.35 43.48

43.88

43.31

42.06

54.90

59.08

62.88

86.18

46.11

46.90

2022

2023

44.89
Average price for our single-family homes (built-for-sale)
2013

2014

2015

2016

2017

2018

2019

2020

2021

Source: Real Estate Economic Institute “Metropolitan Area Condominium Market Trends”
Fiscal year: Calendar year (January-December) for condominiums.
For our detached houses, the period is from October of the previous year to September of the current
year, for the Tokyo metropolitan area.

9１．3Q FY2024 Consolidated Financial Summary

Single-family Home Related Business (Trends in Sales Contracts)◼ Sales increased by 18.2% yoy comparison, showing steady growth.

◼ Sales contracts recovered, even excluding Meldia, there’s an increase of 3.5%.
17.3%

13.8%
YoY sales
increase（Contract basis）

7.0%

4.1%

15.6%

13.4%

10.1%

5.9%

1.5%
△13.5%

43.2

43.7

43.5

43.2

43.3

43.0

42.4

Contract
unit price(¥ Million)

Number ofcontracts

Excluding Meldia(1.0％)＋4.2％ +3.5%

42.1

42.1
43.5

42.7

2,447

2,668

2,766

1Q

2Q

3Q

2,898

4Q

2,769

2,914

1Q

FY2022

18.2%

2,836

2Q

3Q
FY2023

3,138
2,539

4Q

3,390

3,316

Excluding Meldia
2,824
3,062
2,896
1Q

2Q

3Q

FY2024

Operating companies：Open House Development Co.,Ltd. (OHD), Hawk One Corporation (HO), & Meldia Co.,Ltd.
Scope： Sales (built-for-sale + land), not including contracted work10

１．3Q FY2024 Consolidated Financial Summary

Condominium Business◼ Sales are progressing as planned, with deliveries concentrated in the fourth quarter.

3Q FY2022(2021/10-2022/6)

3Q FY2023(2022/10-2023/6)

3Q FY2024(2023/10-2024/6)

Net sales（¥ Billion）

Gross profit (¥ Billion)

39.9

11.0

Million)Inc.(¥(Dec.)

Net sales

24,85839,955

24,77862.0%

Gross profit

5,832

11,007

4,900

44.5%

Gross profit
margin

23.5%

27.5%

19.8%

(7.8)pt

Operatingprofit

1,932

5,347

159

3.0%

24.8

3Q FY2022

3Q FY2023

24.7

5.8

3Q FY2024

3Q FY2022

4.9

3Q FY2023

3Q FY2024

Major Condominiums Delivered in FY2024
Name

Units

Average Price

Open Residence Yutenji（Tokyo）

17

100 million yen

Open Residencia Shimokitazawa Hills（Tokyo）

18

90 〃

Operatingprofit margin

7.8%

13.4%

0.6%

(12.7)pt

Numberdelivered

502

761

501

(260)

Open Residencia Aoi The Place（Nagoya）

42

40 〃

Unit price

49.3

52.3

49.1

(3.2)

Open Residencia Ohori Nishi（Fukuoka）

25

40 〃

11

１．3Q FY2024 Consolidated Financial Summary

Property Resale Business◼ Overseas investors continue to show strong enthusiasm for property resale real estate.

3Q FY2022

3Q FY2023

3Q FY2024(2021/10-2022/06) (2022/10-2023/06) (2023/10-2024/06)(¥ Million)

Net sales（¥ Billion）

Inc. (Dec.)

128.3

107.7

Net sales

107,772

128,317

115,696

90.2%

Gross profit

18,123

20,652

14,36769.6%
3Q FY2022

3Q FY2023

16.1%

12.4%

(3.7)pt

Operatingprofit12,855

15,186

8,183

53.9%

11.9%

11.8%

7.1%

(4.8)pt

Scale
N=231

231

294

281

(13)

145

Unit price

448

423

398

20.0

20.6

18.1

14.3

0.0

16.8%

Numberdelivered

115.6

10.0

Gross profit
marginOperatingprofit margin

Gross profit (¥ Billion)

3Q FY2024

3Q FY2022 3Q FY2023 3Q FY2024

Breakdown of properties owned (Number of properties as of the end of June 2024)37

49≤￥100MIL(26)>￥100 MIL≤￥500 MIL>￥500 MIL

33

49
8

Use
N=231

174
Condominiums
Office buildings
Complex buildings

Region 113
N=231

45

40
Tokyo

Kanagawa

Kansai, Chubu

Other

12

１．3Q FY2024 Consolidated Financial Summary

Other Segment (U.S. Real Estate Business)◼ Investors with high investment enthusiasm, particularly active wealthy individuals, are the coreof our customer base.

◼ Securitized 13.7 billion in U.S. real estate-backed loans, achieving an ‘A’ rating for trust
beneficiary rights from JCR (Japan Credit Rating Agency, Ltd.).
(¥ Million)

3Q FY2022(2021/10-2022/6)

3Q FY2023(2022/10-2023/6)

3Q FY2024(2023/10-2024/6)

Net sales（¥ Billion）

Inc. (Dec.)
54.3

Net sales

54,30464,77474,414114.9%

Gross profit

11,772

13,495

15,664116.1%
3Q FY2022

Gross profit
margin

21.7%

20.8%

21.1%

0.2pt

Operating profit

7,159

7,687

8,645

112.5%

Operating profit
margin

13.2%

11.9%

11.6%

(0.2)pt

Numberdelivered*No. of buildings
managed*

804

814

799

(15)

3,227

4,188

5,000

812

Gross profit (¥ Billion)

74.4

64.7

3Q FY2023

11.7

3Q FY2024

3Q FY2022

13.4

3Q FY2023

15.6

3Q FY2024

Business model-One-Stop Service
Our service for theadministration of local
properties and support
for sales.
Administrationof properties

Support for the wholeprocess from conclusionof an agreement to theend of a transaction

Offering of properties
that our local offices
selected for domestic
wealthy investors

Selection ofproperties

Funding

Purchaseprocess

Introduction of financial
institutions, and loans
from our Group company
are also available.

* Figures for U.S. Real Estate Business are shown.

13

１．3Q FY2024 Consolidated Financial Summary

Pressance Corporation◼ Demand for condominiums in the Kansai region remains steady, for both investment andowner-occupier properties.
(¥ Million)(2021/10-2022/6) (2022/10-2023/6) (2023/10-2024/6)

Inc.
(Dec.)

3Q FY2022 3Q FY2023

3Q FY2024

Net sales

105,116

121,293

116,090

95.7%

Gross profit-

27,02433,05031,885

96.5%

0.2pt
27.5%
* Since Pressance Corporation was included in the
Operating profit
14,766
20,621scopeof consolidationfrom thesecond19,141
quarter of92.8%
Operating profit
FY2021,full-year actual
is not indicated.
14.0%
17.0%
16.5% (0.5)pt
Gross profit margin

25.7%

27.2%

marginActual by products

-

3,281

4,264

3,899

(365)

Net sales（¥ Billion）
105.1

3Q FY2022

Operating profit（¥ Billion）

116.0

121.2

20.6

19.1

3Q FY2023

3Q FY2024

14.7

3Q FY2023

3Q FY2024

3Q FY2022

Nationwide 2023 Condominium Supply Ranking（Units）

rank

Company Name

Units

rank

Company Name

Units

１

Mitsui Fudosan Residential

3,423

6

Takara Leben

1,982

2

Pressance Corporation

3,390

7

ANABUKI

1,773

3

Nomura Real Estate
Development

3,061

8

Open House
Development

1,647

Studio-typecondominiums

2,178

2,912

2,873

(39)

Family-typecondominiums

1,103

1,352

1,026

(326)

4

Sumitomo Realty &Development

2,859

9

ESLEAD

1,607*Since Pressance Corporation became consolidated subsidiary in January 2021, the results for 2Q FY2021 are for thethree months from January to March 2021.

5

MITSUBISHI ESTATERESIDENCE

2,093

10

Hankyu Hanshin Properties
Corp.

1,590

14

１．3Q FY2024 Consolidated Financial Summary

Meldia◼ Implement PMI and aim for an early recovery of profit levels.
Meldia’s Performance Improvement¥ Million

3Q FY2024*1

Net sales (￥ billion)(2023/9-2024/6)

Net sales

95,956Gross profit

11,338Gross profit
margin11.8%

Operatingprofit3,873

Operatingprofit margin

4.0%

No. delivered *2

1,031*1 Consolidated the performance of Meldiafrom Sept 2023 to May 2024, in 3Q FY2024.
*2 Including 76 apartment buildings.

Operating income (￥ billion)

134.0
121.0

10.5

FY2019

139.0

144.2

150.0

117.2

11.6

12.8

8.0

FY20207.4

FY2021

FY2022

FY20235.0
FY2024(Forecast)15

１．3Q FY2024 Consolidated Financial Summary

Breakdown of SG&A Expenses, Non-Operating Profit/Expenses(¥ Million)

SG&A Expenses

3Q FY2023(2022/10-2023/6)

Actual

SG&A expenses
Personnel
expenses
Sales commissions

55,123
17,431
5,313% of net
sales

7.0%

2.2%
0.7%

Non-Operating Income / Expenses

3Q FY2024(2023/10-2024/6)

Actual

65,34623,3846,267% of net
sales

7.3%
2.6%
0.7%

3Q FY2023

Inc.
(Dec.)
10,223
5,952
953(2022/10-2023/6)

3Q FY2024(2023/10-2024/6)

Inc.
(Dec.)

Actual% of netsales

Actual% of netsales

Non-Operating
income

1,624

0.2%

8,720

1.0%

7,095

Gain on sale ofinvestment
securities

144

0.0%

3,518

0.4%

3,374

Dividend income

135

0.0%

1,237

0.1%

1,102

Profit on currency
exchange

298

0.0%

1,247

0.1%

949

Officemaintenance cost

5,866

0.7%

6,309

0.7%

443

Other

1,147

0.1%

2,716

0.3%

1,669

Advertisingexpenses

3,502

0.4%

4,270

0.5%

767

Non-operating
expenses

3,924

0.5%

5,449

0.6%

1,524

Interest expenses

2,912

0.4%

4,078

0.5%

1,165

Commission
expenses

285

0.0%

705

0.1%

420

Other

726

0.1%

665

0.1%

(61)

Promotion
expenses
Others

2,714
20,294

0.3%
2.6%

1,558
23,5550.2%
2.6%(1,155)3,260

16

１．3Q FY2024 Consolidated Financial Summary

Consolidated Balance Sheet◼ Maintain a healthy financial condition with a 35.1% equity ratio even after consolidating Meldia.
◼ Keeping a net D/E ratio of 0.6, ensuring sufficient investment capacity to respond flexibly to M&A opportunities.
(¥ Million)

FY2023

3Q FY2024

Inc. (Dec.)

1,130,769

1,220,782

90,012

Cash and deposits

401,879

357,573(44,305)

Inventories

641,256

754,407

113,150

Others87,633

108,800

21,167

Non-current assets

67,89883,844

15,946

Property, plant andequipment

28,456

31,205

2,749

Intangible assets

2,690

2,992

302

Investments andother assets

36,75149,645

1,198,668
FY2023

Consolidated balance sheet

Current assets

Safety index

Total asset

FY 2023

3Q FY2024

Inc. (Dec.)

718,251

777,699

59,447

Current liabilities

373,526

373,004(522)

Non-current
liabilities

344,725404,695

59,970480,416

526,926

46,510Shareholders’ equity

401,443436,549

35,106

Valuation andtranslation
adjustments

15,16322,4207,256

12,894Non-controllinginterests

63,80867,956

4,147

1,304,626

105,958

Total liabilities andnet assets

1,198,668

1,304,626

105,958

3Q FY2024

Inc. (Dec.)

FY2023

3Q FY2024

Inc. (Dec.)

Liabilities

Net assets

Net D/E ratio

0.4

0.6

0.2

Equity ratio

34.7%

35.1%

0.4pt

D/E ratio

1.4

1.4

0.0

Current ratio

302.7%

327.3%

24.6pt17

１．3Q FY2024 Consolidated Financial Summary

Efforts Towards Financial Stabilization◼ To secure funds on hand to obtain opportunities for growth investments, while also diversifying
fundraising to adapt to changes in the financial environment.
Bond Issuance (12.0 billion yen)

Long-term funding procurement(Business investment capital: 42.9 billion yen)

The 2nd Issuance of Unsecured Bonds

Syndicated Loan
Amount of Loan

37.9 billion yen

LenderChange (Upgrade) of Credit Rating

Sumitomo Mitsui Banking
Corporation (Arranger & Agent)Mizuho Bank, Ltd.
Resona Bank, Limited
The Gunma Bank,Ltd.
San ju San Bank,Ltd.
The Chiba Bank, Ltd.

Period, Interest Rate

10 years, fixed interest rate

Credit Rating
AgencyRating and Investment
Information, Inc.（R＆I）

Long-term Borrowings

After Change

ＢＢＢ

Before Change

ＢＢＢ－

Total Issued Value

12.0 billion yen

Redemption Date

July 2, 2027

Credit rating upgrade, bond issuance registration

Amount borrowing

5 billion yen

Lender

MUFJ Bank, Ltd.

Period, Interest Rate

7 years, fixed interest rate18

１．3Q FY2024 Consolidated Financial Summary

Inventory Details(¥ Million)

Inc. (Dec.)

FY2021

FY2022

FY2023

3Q FY2024

Ratio

428,129557,105

641,256

754,407100.0%

113,150

Single–family home related

170,389

233,979(65,221)53,496

83,63214.8%

30,926

Property resale

54,681

72,67813.9%

16,275

Other (US real estate business)

23,452

45,6397.4%

11,869Pressance Corporation

126,109

121,174

23.7%

46,006--

230,794
111,370
104,601
55,667
178,679
73,294

30.6%

Condominium

296,01580,44388,326
43,798132,672-

9.7%

73,294Inventory

Meldia Co.

Total
Single-family homes related
Condominium
Property resale
Other
Pressance Corporation
Meldia Co.
4,281
1,703

(¥ 100 million)

5,571

5,802

2,339

2,564

6,099
2,651

6,621
2,977

7,425

7,524

7,544

2,734

2,473

2,307

994

1112

1,113

975
479
1,371

945
538

1,046
556

1,602

1,786

869

852

732

6,412

2,960

1,057
949
375
1,261

804
883
437
1,326

534
546
234
1,261

836
726
456
1,211

945
682
439
1,171

984
893
363
1,296

4Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2021

FY2022

FY2023

FY2023

FY2023

FY2023

FY2024FY2024FY202419

2. Consolidated Business Performance Forecasts for FY2024

２．Consolidated Business Performance Forecasts for FY2024

Consolidated Business Performance Forecasts◼ A year that will test our ability to deliver business performance even without a tailwind environment.
◼ Environment which enables us to differentiate ourselves from competitors.
(¥ Million)

Net sales (￥ billion)

FY2023(2022/10-2023/9)

FY2024 Forecasts

Results

Inc. (Dec.)

Forecasts

Inc. (Dec.)

1,148,484

120.6%

1,300,000

113.2%

Operating profit

142,330

119.2%

124,000

87.1%

Ordinary profit

136,927113.0%

120,000

87.6%

Profit attributable toowners of parent

92,050118.2%

92,500100.5%EPS (yen)763.72-775.24-

Annual dividends
per share (yen)164.0035.00

166.00

2.00

Payout ratio

21.5%

-

21.4%

-

Net sales

Operating profit(￥ billion)(2023/10-2024/9)

Annual dividend per share (yen)1,300.0
1,148.4
142.3

124.0

164.00166.00

FY2023

FY202421

２．Consolidated Business Performance Forecasts for FY2024

Consolidated Business Forecasts (Net Sales by Business Segment)(¥ Million)

FY2023

FY2024 Forecasts(2022/10-2023/9)
Results(2023/10-2024/9)

Inc. (Dec.)

Forecast

Inc. (Dec.)

1,148,484

120.6%

1,300,000

113.2%

Single-family home related
business

590,394114.3%

581,000

98.4%

Condominium

124,984

200.4%

90,00072.0%

Property resale

185,018118.6%

205,000

110.8%

88,301118.6%

111,500

126.3%

161,476111.1%

167,000

103.4%--

150,000-(1,692)-(4,500)-

Total

Others (including U.S. realestate business)
Pressance Corporation

MeldiaAdjustments22

3. Sustainability

3．Sustainability

Sustainability
Realization of a Sustainable Society, Made Possible by Open House Group

Promotion of
decarbonization

Boosting
community
vitality

Providingaffordable housingin
Metropolitan areas

SustainablegrowthSocialtrust
Popularizing
woodenhousesPromotion of
women’s
participation
in workplace

Corporate culture inwhich motivatedpeople can findfulfillment
in their work24

3．Sustainability

Important Issues (Materiality)◼Promotion of Sustainability(Realization of a Sustainable Society and Company)➢ Maximizing the Value of Human Capital➢ Realize Healthy and Safe Living➢ Contribution to Decarbonization25

3．Sustainability

Third Party Evaluation◼ Evaluations by ESG rating agencies have improved.
◼ As a result, there has been an increase in new additions to ESG indices.

THE INCLUSION OF OPEN HOUSE GROUP CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN,
DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF OPEN HOUSE GROUP CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES

https://www.lseg.com/en/ftse-russell/indices/ftse4good

https://www.lseg.com/ja/ftse-russell/indices/blossom-japan

https://www.lseg.com/ja/ftse-russell/indices/blossom-japan

ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

26

3．Sustainability

Maximizing the Value of Human Capital（Diversity）
・Established the Work Design Promotion Committee to create an environment where diverse talents can thrive andcontinues to implement various measures.
・Introduced a new ‘Oocyte Cryopreservation Subsidy’ program to support diverse career development for women.
Establishment of the Work Design Promotion Committee in April 2024
Work Design Promotion Committee
Secretariat(Human Resources Dept.)

Women's Empowerment
Promotion Working
Group

Persons with Disability
Employment Promotion
Working Group

Caregivers Support
Promotion Working GroupChildcare Support Measures (example)
Baby Bonus

Promoting Women’s Participation(Support for Balancing Childcare and Work)
Utilization of
Corporate-led Daycare
CenterFertility Support
Concierge System
Free Counseling Services

Babysitter Allowance
Free AMH Test

New “Oocyte Cryopreservation Subsidy” Program
Single-Parent Allowance
We aim to support each employee’s life plans and careerdevelopment while fostering a workplace environmentthat accommodates diverse work styles and encourages
active participation.

Subsidy of up to 400,000 yen for initial costs.
50,000 yen per month per household
27

3．Sustainability

Contribution to Decarbonization and Realize Healthy and Safe Living◼ Promoting decarbonization through the provision of solar power generation facilities
and clean energy for our single-family homes.
Launching a flat-rate service for solar power
generation and energy storage systems.

The number of contracts for Ouchi Link Denki isalso steadily increasing.

・Made possible through a partnership with TEPCO Home
Tech Co., Ltd. (THT)・Providing homes with secure electricity usage even in theevent of a disaster

光発電及び蓄電シテムの定額サービスを開始

2,874
Number of contracts
starting in December 2022

6,627

Cumulative numberof contracts as ofJuly 2024
28

3．Sustainability

Community Co-creation Initiative◼ Initiatives embodying our corporate philosophy of "actively contributing to the vitality of the community andenergizing the town“.
◼ After 5 years since our capital participation aiming to “ignite Gunma through basketball”, we havecontributed to the revitalization of the community.
Gunma Crane Thunders' collaborative efforts through sports for regional co-creation:

The 'carbon-free clean electricity' provided by partner companies

June 2019

Invested in the operating company of Gunma Crane Thunders.
Our motto: 'Igniting Gunma's passion through basketball.'Oct 2023

May 2021

Achieved B” championship and promotion to B1 league, the first B1 club in Gunma Prefecture.

July 2021

Relocated from Maebashi City to Ota City.

During the 23 home games held at OPEN HOUSE ARENA OTA(from October 2023 to March 2024), V-Power Co., Ltd., one of
our partner companies, adds environmental value to theelectricity used. Clean energy utilization is available within
OPEN HOUSE ARENA OTA.

Sept 2021

Initiated the social responsibility activity 'CRANE THUNDERS ONGAESHI.

April 2024

May 2022

Signed the new standards of the United Nations Sports for Climate Action framework.

April 2023

Completed the Ota City General Gymnasium (nickname: OPEN HOUSE ARENA OTA), utilizing
our corporate version of the hometown tax payment system to support local revitalization
efforts.

The coverage will be expanded to encompass the entire Ota
City Sports Park, allowing everyone in the park to utilize clean
energy."Many citizens attending OPEN HOUSE AREA OTA

A basketball-exclusive arena capable of accommodating 5,000 people.

A scheme for providing carbon-free, clean electricity.

29

3．Sustainability

Community Co-creation Initiative◼ Initiatives aimed at contributing to society through regional co-creation in
Minakami Town, Gunma Prefecture.
◼ Completion of sales for NOT A HOTEL MINAKAMI TOJI*, Developed in collaboration
with NOT A HOTEL Inc.

Exterior of NOT A HOTEL MINAKAMI TOJI

Sauna with exclusive access to breathtaking views

An infinity pool surrounding the living room area (Hot water)*As part of the Company's community co-creation initiative, leveraging our relationship with NAH and Minakami Town, we are developing high-end villas that combine the design expertiseof world-renowned architects and creators with the comfort provided by technology such as IoT.

30

4. Positioning for FY2024

4．Positioning for FY 2024

Positioning of FY2024

 PMI(Normalize Management of Meldia)
 Response to Important Issues(Materiality)

Reinforce our internal operations in preparation for the next stage

32

4．Positioning for FY 2024

PMI(Resumption of New Lending Support)◼ Resumption of new lending support from financial institutions to Meldia.
⇒ The establishment of an effective system for preventing recurrence has been completed,and the continuous monitoring of the progress is being evaluated.

Board of Directors

Recurrence Prevention Monitoring
Committee
Confirmation of the progress in implementing measures toprevent recurrence.

Risk Management Committee(Integrated with Elimination Monitoring Committee in May 2024)

Confirmation of contact status with individuals subject toelimination.

We will continue to hold both committees, monthly reports to the Board of Directors on committee
confirmed matters.

⇒ Officers who are not members of the committees will also actively participate in efforts to prevent recurrence.

33

4．Positioning for FY 2024

PMI (Business Outlook for Meldia)◼ Aiming to shorten business turnover periods.
⇒ Shifting from large-scale developments in suburban areas to more compact sites in highly accessible locations.
⇒ Initiate advance sales of land. Subsequently undertake construction to expedite fund recovery and achieve
simultaneous progress in home building.

◼ Strengthening the supply system for new wooden rental apartments.
⇒ Supplying to individual investors and real estate funds, aiming for steady growth.

Single-family homes business

Apartment business34

4．Positioning for FY 2024

PMI(Strengthen the Sales Structure)◼ Build a cross-group collaboration system and improve group-wide sales through cross-selling.
Single-family homes
for saleMediator/agent◼ Official launch in December 2023

◼ Approx. 30% of Meldia’s
Initiated cross-selling
Single-family homes
for saleMediator/agent

MELDIA

Meldia Realty*100% subsidiary of Meldia

properties were sold through OpenHouse

◼ Meldia to sell properties byOpen House Development and Hawk
One
◼ Building a cross-collaboration
systemIncluded in the Group from current FY
35

4．Positioning for FY 2024

PMI(Group Synergy)◼ Pressance Corporation has completed the process of making Meldia DC a subsidiary.
◼ Maximize group synergies through collaboration between the two companies with strength in
the Kansai region.
December 2023

May 24, 2024

100%

64%

100%

64%

(MELDIA )(MELDIA )

60%

20%

80%
(Meldia DC)(Meldia DC)

Company Profile
Company name

MELDIA Development ＆ Construction CO.,LTD.

Business details

Design, construction, and supervision of construction work, sale ofcondominiums and single-family homes, etc.

Main officeOsaka

Capital

101 million yen (as of September 30, 2023)

Representative

Representative Director and President Kazuya Tanaka

Date of establishment

October 1, 1993

36

4．Positioning for FY 2024

Important Issues(Materiality)

 Governance and Compliance Reform
Enhance Customer Satisfaction
 Strengthen Hiring of Key Talent37

4．Positioning for FY 2024

◼ Governance and Compliance Reform, Enhance Customer Satisfaction◼ Conduct a risk assessment regarding harassment etc. at the Group Transformation Promotion
Headquarters.
◼ Proactive measures will be undertaken by the relevant departments to address the issues.
◼ Establish a system to manage the progress on relevant departments’ issues and abolish theexisting headquarters.
Sept 2023

Establishment of the Group
Transformation Promotion HQ.

Nov-Dec 2023

Implementation of a survey onharassment.

Jan-May 2024

Implementation of risk assessment
by law firm.

June 2024

Receipt of risk assessment results.
Relevant departments to takeproactive measures for improvement

August 2024

Abolition of the Group
Transformation Promotion HQ.

Group Transformation
Promotion HQ
Director in Charge(External)①Risk Assessment Group
Nagashima Ohno &Tsunematsu (law firm)・Conduct risk assessments on

power harassment, key
contract flow, andconstruction management
systems.
・Inspect recruitment
processes and update manuals,
among other improvements.

②Transformation
Promotion Group・Establish a department
dedicated to addressing
issues and implementing
improvements.
・Relevant departments totake proactive improvement
measures.
・manage future progresses.

③Main Contact for
Customer Service Inquires
・Establishment of a maincontact for Customer Services
Inquiries.

38

4．Positioning for FY 2024

Enhance Customer Satisfaction◼ Opening of Customer Consultation Center on April 1, 2024
⇒ Previously, inquiries related to sales (single-family homes, condominiums) and construction had separate
contact points⇒ Aim to improve customer satisfaction by centralizing information regarding complaints and inquiries.

39

4．Positioning for FY 2024

Strengthening Human Resource Recruitment◼ Our people are the source of the Group's growth.
◼ Hiring key talent is one of our key management priorities.
Changes in the Number of Personnel(Persons)
5,828
4,904
4,493

4,092

2,642
2,263
1,099 1,258

530

1,522

631

2,876

◼ Corporate Philosophy (Value)“Attract a wide range of motivated people andcreate an organization that rewards results.”◼ The President & CEO Takes the Lead in Hiring
・Assigned top salespeople from each businessdivision to serve as recruiting staff.
・Strengthen motivation to join the company
through interviews with top executives

Note: Includes personnel from Meldia CO.

40

5. Supplemental Financial Data

５． Supplemental Financial Data

Consolidated Financial Results Trend

42

５． Supplemental Financial Data

Consolidated Financial Results Trend

*
*

43

５．Supplemental Financial Data

Single-family Homes Market share◼ Market share in existing areas is still around 11% with room for further expansion
Number of Sales Centers by Area

Market Share in Operating Areas

Trends in Number of New Constructions
100,000

OHG
No. of new constructions

90,000Tokyo
Area
NagoyaArea
Fukuoka
Area

５

51

Nationwide
Approx.

80,000400,000

70,000units

60,000９50,00040,00030,000Operating Areas
Approx. 71,000 units

20,00010,000Kansai
Area

7

Share
Approx.
11%

Units<Source>
Number of new construction starts: Ministry of Land, Infrastructure, Transport and Tourism“Housing Construction Starts Statistics” Single-family homes (owner-owned homes + condominiums)
OHG：OHD, Number of Hawk One buildings delivered (built + contracted)

44https://openhouse-group.co.jp/ir/en/――Disclaimer ――This document contains forward-looking statements concerning future business performance. These statements include company forecasts basedon 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; no guarantees are provided with regard to the accuracy or reliabilityof such information.
This document is provided for informational purposes only. It does not constitute a solicitation to invest.
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.