Consolidated Financial Highlights
for the First Quarter of FY2024(2023/10-2023/12)

OPEN HOUSE GROUP CO.,LTD.
[3288 TSE]

1Q FY2024 Topics

FY2024 1Q Financial Results Topics◆ Sales and profits increased led by Pressance Corporation in the single-family homes
Business
Performance
1Q FY2024

related businessNet sales
Operating profit
Profit attributable to owners of parents

FY2024 1Q Results¥ 304.8 billion¥ 32.6 billion¥ 32.9 billion[122.8％YoY][106.4％YoY][168.0％YoY]◆ Planning net sales of ¥ 1.3 trillion, profit attributable to owners of parent ¥ 92.5 billion

Financial
Forecasts for
FY2024FY2024 Forecasts

Net sales
Operating profit
Profit attributable to owners of parents

Shareholder
Returns

M&A

Share buybacks
Actual share buybacks¥ 1. 3 trillion¥ 124.0 billion¥ 92.5 billion¥ 10.0 billion¥4.6 billion[113.2％YoY][87.1％YoY][100.5％YoY](Percentage of issued
2.2 Million
shares shares ：1.82％)
1.0◆ Name to be changed from Sanei Architecture Planning to Meldia in March 2024.
◆ Steady progress in establishing a system to normalize management.
2

1. 1Q FY2024 Consolidated Financial Summary

1. 1Q FY2024 Consolidated Financial Summary

Consolidated Statements of Income (Overview)◼ Sales and profits increased in the 1Q as planned and operating profit margin maintained over 10%◼ 12.7 billion yen of gain on negative goodwill was recorded as extraordinary profit due to M&A ofMeldia(¥ Million)

1Q FY2023

1Q FY2024(2022/10-2022/12)
Result(2023/10-2023/12)% of net
sales

Result% of net
sales

Inc.
(Dec.)Net sales

248,198-

304,846- 122.8%

Operating profit

30,66812.4%

32,643

10.7% 106.4%

Ordinary profit

29,51411.9%

32,262

10.6% 109.3%

Net profit
attributable toowners of parent

19,6437.9%

32,994

10.8% 168.0%

Net Sales（¥ Billion）

304.8
235.2

1Q FY2022

248.1

1Q FY2023

1Q FY20244

1. 1Q FY2024 Consolidated Financial Summary

Performance by Segment (Net Sales/Operating Profit)◼ New Segment “Meldia has been added due to the consolidation of the company◼ Net sales and operating profits increased in existing businesses even without the inclusion of“Meldia”(¥ Million)
Net sales
Operating profit¥ Million
1Q FY2024

1Q FY2024

1Q FY2023(2022/10-2022/12)(2023/10-2023/12)

ResultRatio

ResultRatio

248,198

100.0%

304,846

100.0%

122.8%

30,66812.4%

32,64310.7%

106.4%

141,735

57.1%

170,18655.8%

120.1%

16,484

11.6%

17,95910.6%

108.9%

Condominium

3,347

1.3%

3,730

1.2%

111.4%

(432)

-

(731)

-

-

Property resale

44,53317.9%

33,100

10.9%

74.3%

5,429

12.2%

4,257

12.9%

78.4%

Others (including U.S.
real estate business)

19,5297.9%

22,7647.5%

116.6%

2,267

11.6%

2,096

9.2%

92.4%

Pressance
Corporation

39,19915.8%

40,99913.4%

104.6%

6,827

17.4%

8,031

19.6%

117.6%--

37,331

12.2%

-

-

-

1,330

3.6%

-

(147)

-

(3,267)

-

-

91

-

(300)

-

-

Total
Single-family homerelated businessMeldiaAdjustments

1Q FY2023(2022/10-2022/12)

Inc.
(Dec.)(2023/10-2023/12)% of Net
sales

ResultResultInc.
(Dec.)% of Netsales

5

1. 1Q FY2024 Consolidated Financial Summary

Single-family Home Related Business (Overall)◼ Steady demand for single-family homes in urban areas, and sales and operating income are improving◼ Although the gross profit margin has declined as market inventories are in an adjustment phase, theimpact is within the expected range(¥ Million)

1Q FY2022

1Q FY2023

1Q FY2024(2021/10-2021/12) (2022/10-2022/12) (2023/10-2023/12)

Net sales

136,051

141,735

170,186

120.1%

Gross profit

28,33924,92526,740107.3%

Gross profit
marginOperatingprofitOperatingprofit margin

20.8%

21,799
16.0%

17.6%

16,484
11.6%

15.7%

17,959
10.6%

Net Sales (¥ Billion）

Inc.
(Dec.)

136.0

141.7

1Q FY2022

1Q FY2023(1.1)pt

170.1

28.3

1Q FY2024

1Q FY2022

24.9

26.7

1Q FY2023

1Q FY2024

Changes in the average price for new condominiums in Tokyo Metropolitan
and average price for the Company’s single-family homes (built-for-sale)(1.9)pt

108.9%

Operating Profit (¥ Billion)

90
80
70
60
50
40
30

（¥ Million）

Average price for new condominiums in Tokyo Metropolitan
49.29
44.89
2013

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

81.01

46.11

46.90

2022

2023

Average price for our single-family homes (built-for-sale)
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, October of the previous year to September ofthe current year, for our single-family homes, in the Tokyo metropolitan area.

6

1. 1Q FY2024 Consolidated Financial Summary

Single-family Home Related Business (Trends in Sales Contracts)◼ The data from Meldia is included in the total starting from the first quarter◼ Sales contracts recovered and improved to the level as the previous year, even excluding Meldia

YoY sales
increase（Contract basis）

17.3%

13.8%
4.1%

13.4%

7.0%
43.7

5.9%

43.5

43.2

43.2

1.5%
△13.5%

43.3

Excluding
Meldia43.0

Contract
unit price(¥ Million)

Number ofcontracts

10.1%(1.0%)

42.7
42.4

42.1

2,447

2,668

2,766

2,898

2,769

2,914

2,836

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2022

FY2023

2,539

4Q

3,138

Excluding
Meldia2,824

1Q
FY2024

Operating companies：Open House Development Co.,Ltd.（OHD）& Hawk One Corporation（HO）
Scope： Sales (built-for-sale + land), not including contracted work7

1. 1Q FY2024 Consolidated Financial Summary

Condominium Business◼ In the Condominium business, deliveries will be concentrated in the fourth quarter for the fiscal
year ending September 2024
◼ Sales of properties scheduled for delivery above, are progressing smoothly(¥ Million)

1Q FY2022

1Q FY2023

1Q FY2024(2021/10-2021/12) (2022/10-2022/12) (2023/10-2023/12)

Inc. (Dec.)

Net sales

4,374

3,347

3,730

111.4%

Gross profit

1,008

804

684

85.2%

Gross profit
margin

23.1%

24.0%

18.4%

(5.7)pt

Operatingprofit

(118)

(432)

(731)

-

Operatingprofit margin

-

-

-

-

No.
delivered

73

59

68

9

Unit price

59.7

56.6

54.7

(1.8)

Net Sales（¥ Billion）
4.3

1Q FY2022

Gross Profit (¥ Billion)

3.3

3.7

1.0

1Q FY2023

1Q FY2024

1Q FY2022

0.8

0.7

1Q FY2023

1Q 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 〃

Open Residencia Aoi The Place（Nagoya）

42

40 〃

Open Residencia Ohori Nishi（Fukuoka）

25

40 〃

8

1. 1Q FY2024 Consolidated Financial Summary

Property Resale Business◼ The number of deliveries has increased. The wealthy continue to have a surplus of money, andproperty resale business maintains to be active◼ Although sales in the first quarter were lower than the previous year, contracts are steady andare expected to increase from the second quarter onward(¥ Million)

1Q FY2022

1Q FY2023

1Q FY2024(2021/10-2021/12) (2022/10-2022/12) (2023/10-2023/12)

Inc. (Dec.)

Net Sales（¥ Billion）

44.5

41.0

41,06444,533

33,10074.3%

Gross profit

7,232

7,422

6,063

81.7%

Gross profit
margin

17.6%

16.7%

18.3%

1.7pt

Operatingprofit

5,324

5,429

4,257

78.4%

Operatingprofit margin

13.0%

12.2%

12.9%

0.7pt

Scale

69

80

90

10

126

Unit price

578

543

352

1Q FY2022

1Q FY2023

7.4

1Q FY2024

1Q FY2022

1Q FY2023

6.0

1Q FY2024

Breakdown of Properties Owned (Number of Properties as of The End of
December 2024)
35

39
N=200

≤￥100MIL

(191)

7.2

33.1

Net salesNo.
deliveredGross Profit (¥ Billion)>￥100 MIL≤￥500 MIL>￥500 MIL

20

39
11

41

Use

N=200

RegionN=200150
Condominiums
Office buildings
Complex buildings

103

35
Tokyo
Kanagawa
Kansai, Chubu, Kyushu
Other

9

1. 1Q FY2024 Consolidated Financial Summary

Other Segment (U.S. Real Estate Business)◼ A steady increase in transactions with active wealthy individuals with high motivation to invest◼ Strong appetite for diversified investment in dollar assets, regardless of exchange rates(¥ Million)

1Q FY2022

1Q FY2023

1Q FY2024(2021/10-2021/12) (2022/10-2022/12) (2023/10-2023/12)

Net Sales（¥ Billion）

Inc. (Dec.)
17.0

Net sales

17,042

19,52922,764116.6%

Gross profit

3,687

3,992

4,389

109.9%

Gross profit
margin

21.6%

20.4%

19.3%

(1.2)pt

Operatingprofit

2,202

2,267

2,096

92.4%

Operatingprofit margin

12.9%

11.6%

9.2%

(2.4)ptNo.
delivered*No. of buildings
managed*

264
2,710

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

221
3,678

256
4,633

35
955

1Q FY2022

Gross Profit (¥ Billion)

22.7

19.5

1Q FY2023

3.9

4.3

1Q FY2023

1Q FY2024

3.6

1Q FY2024

1Q FY2022

Business Model-One-Stop Service
Our service for theadministration of local
properties and support
for sales.
Admin. ofproperties

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 alsoavailable.

101. 1Q FY2024 Consolidated Financial Summary

Pressance Corporation◼ The demand for condominiums in the Kansai region was just as strong as Tokyo Metropolitanarea, in terms of both investment and actual demand.
Net Sales（¥ Billion）(¥ Million)

1Q FY2022

1Q FY2023

1Q FY2023

Inc. (Dec.)

Net sales

37,02839,19940,999104.6%

Gross profit

10,197

10,520

11,632110.6%

Gross profit
margin

27.5%

26.8%

28.4%

1.5pt

(2021/10-2021/12) (2022/10-2022/12) (2022/10-2023/9)

OperatingprofitOperating Profit（¥ Billion）

37.0

39.1

40.9

1Q FY2022

1Q FY2023

1Q FY2024

10.1

10.5

11.6

1Q FY2022

1Q FY2023

1Q FY2024

Nationwide 2022 Condominium Supply Ranking

6,272

6,827

8,031

117.6%

rank

Company Name

Units

rank

（Units）

Company Name

Units

1

Nomura Real Estate
Development

4,240

6

MITSUBISHI ESTATERESIDENCE

2,153

2

Pressance Corporation

3,760

7

Takara Leben

2,134

3

Mitsui Fudosan Residential

3,420

8

DAIWA HOUSE INDUSTRY

2,022

77

4

Sumitomo Realty &Development

3,109

9

Open House
Development

1,870

(45)

5

ESLEAD CORPORATION

2,214

10

NIPPON STEEL KOWA REAL
1,850
ESTATE

Operatingprofit margin

16.9%

17.4%

19.6%

2.2pt

No. delivered

1,011

1,374

1,406

32

Studio-typecondominiums

619

900

977

Family-typecondominiums

392

474

429

Source: Real Estate Economic Institute (As of 2023.2)

11

1. 1Q FY2024 Consolidated Financial Summary

Meldia◼ For 1Q FY2024, a new segment began after consolidation◼ A smooth start to the full-year plan, aiming for early recovery of profit level¥ Million

1Q FY2024

Net sales (￥ Billion)
Operating income (￥ Billion)

134.0(2023/10-2023/12)

Net sales

37,331Gross profit

3,828

Gross profit margin

10.3%

Operating profit

1,330

Operating profit
margin3.6%

No. delivered

393

Meldia’s Performance Trends

121.0

139.0

144.2

150.0

117.2

11.6

10.5

12.8

8.0

7.4
5.0

Melida's results from September 2023 to November 2023 are consolidated in
1Q FY2024
FY2019FY2020

FY2021

FY2022

FY2023

FY2024…

(forecast)12

1. 1Q FY2024 Consolidated Financial Summary

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

SG&A Expenses

1Q FY2023(2022/10-2022/12)

Non-Operating Income / Expenses

1Q FY2024(2023/10-2023/12)

Result% of net
sales

Result% of net
sales

16,951

6.8%

19,739

6.5%

2,788

Personnel
expenses

5,385

2.2%

7,171

2.4%

1,785

Sales
commissions

1,911

0.8%

2,079

0.7%

167

Officemaintenance
cost

2,033

0.8%

2,081

0.7%

47

SG&A
expenses

Advertisingexpenses

Promotion
expenses
Others

890

542

6,186

0.4%

0.2%

2.5%

1,015
521
6,871

0.3%

0.2%

2.3%

1Q FY2023

Inc.
(Dec.)

124

(21)

684

(2022/10-2022/12)

1Q FY2023(2023/10-2023/12)

Inc.
(Dec.)

Result% of net
sales

Result% of netsales

Non-Operating
income

479

0.2%

1,496

0.5%

1,016

Share of profit ofentities accounted
for using equity
method

112

0.0%

-

-

(112)

Dividend
income

58

0.0%

665

0.2%

607

Other

308

0.1%

830

0.3%

521

Non-operating
expenses

1633

0.7%

1,877

0.6%

243

Interest
expenses

979

0.4%

1,393

0.5%

413

Commission
expenses

19

0.0%

52

0.0%

32

Other

633

0.3%

431

0.1%

(201)

13

1. 1Q FY2024 Consolidated Financial Summary

Consolidated Balance Sheet◼ Maintaining a sound financial position even after consolidation of Meldia◼ Maintaining investment capacity to flexibly respond to M&A opportunities
FY2023

1Q FY2024

Inc. (Dec.)

1,130,769

1,210,322

79,552

Cash and deposits

401,879

354,608(47,271)

Inventories

641,256

742,556

101,299

Others87,633

113,157

25,524Non-current assets

67,89880,94013,041

Property, plant andequipment

28,456

33,8305,374Intangible assets

2,690

2,998

307

Investments andother assets

36,751

44,111

7,359

1,198,668

1,291,262

92,594FY2023

1Q FY2024

Inc. (Dec.)

Consolidated balance sheet

Current assets

Safety index

Total asset

Net D/E ratio

0.4

D/E ratio

1.4

0.7
1.5

(¥ Million)

1Q FY2024

Inc. (Dec.)

718,251

791,31473,062Current liabilities

373,526

424,985

51,458Non-current
liabilities

344,725

366,328

21,603

480,416

499,948

19,532

Shareholders’ equity

401,443

420,392

18,949Valuation andtranslation
adjustments

15,163

10,968(4,195)

Non-controllinginterests

63,80868,587

4,778

1,198,668 1,291,262

92,594FY2023Liabilities

Net assets

Total liabilities andnet assets

FY2023

1Q FY2024

Inc. (Dec.)

0.3

Equity ratio

34.7%

33.3%

(1.3)pt

0.2

Current ratio

302.7%

284.8%(17.9)pt
14

1. 1Q FY2024 Consolidated Financial Summary

Inventory Details(¥ Million)

FY2021

FY2022

FY2023

1Q FY2024

Ratio

Inc. (Dec.)

428,129557,105

641,256

742,556

100.0%

101,299

Single–family home related

170,389

233,979

296,015

273,40936.8%(22,606)

Condominium

53,496

83,63280,44399,43413.4%

18,990Property resale

54,681

72,67888,326

97,596

13.1%

9,269

Other

23,452

45,63943,79847,989

6.5%

4,191

Pressance Corporation

126,109

121,174

132,672

137,140

18.5%

4,467

-

-

-

86, 985

11.7%

86,985Inventory

Meldia Co.
Total
Single–family home related
Condominium
Property resale
Other
Pressance Corporation
Meldia Co.
4,281

4,418

6,099

5,483

5,571

5,802

2,153

2,339

2,564

2,651

6,621

6,412
2,734

4,761

2,977

2,960
994

1,808

1,886

576
533
284
1,214

891
811
391
1,234

836
726
456
1,211

945
682
439
1,171

984
893
363
1,206

1,057

534
546
234
1,261

786
581
288
1,218

949
375
1,261

804
883
437
1,326

4Q
FY2021

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1,703

(¥ 100 million)

7,425

FY2022

FY2023

975
479
1,371
869
1Q
FY2024(forecast)15

2. Consolidated Business Performance Forecasts for FY2024

3. 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)763.72-768.45-

Annual dividends
per share (yen)164.0035.00

166.00

2.00

Payout ratio

21.5%

-

21.6%

-

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

FY202417

3. 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

MeldiaAdjustments18

3. Consolidated Business Performance Forecasts for FY2024

Factors Contributing to Changes in Operating Income
Gross profit(¥ billion)

Gross profit margin

16.7%⇒15.0%

MeldiaSingle-family
homesOperatingprofit

△11.0

Other

Gross profit margin

26.9%⇒20.0%

142.3

Property resales

+3.8

+5.0

+4.7
Pressance
Corporation△1.5
Condominiums△15.6

FY2023Operating profit

SG&A Expenses△3.9

Operatingprofit124.0

FY2024(forecast)19

3. Positioning of FY2024

4. Positioning of FY2024

Positioning of FY2024

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

Reinforce our internal operations in preparation for the next stage

21

4. Positioning of FY2024

PMI (Strengthen the Management)◼ Normalization of Meldia’s management, renewed executive structure and strengthening governance◼ Company name change on March 1, 2024, from Sanei Architecture Planning Co., Ltd. to MELDIA CO.,LTD.
Post

Name

Main concurrent position etc.

President andRepresentative
Director

Kenta Kikuchi

Vide-president
and Director

Rie Chiba

formerpresent

Director

Yoshiaki
Enomotoformer
Sanei Architecture Planning Co.,Ltd. Executive Officer, Head of Corporate Planning Headquarters
present
Sanei Architecture Planning Co.,Ltd. Director, Executive Officer, Head of Corporate Planning
Headquarters

Director

Kotaro Wakatabi

Director

Takayuki
Koshizuka

Auditor

Hirotsugu Torii

Open House Group Co., LTD. Accounting manager of Corporate Planning Headquarters

Executive
Adviser

Terushi Eimoto

Open House Group Co., LTD. Executive Adviser
former
Metropolitan Police Department

Open House Group Co., LTD. Managing Executive Officer
Open House Development Co. LTD, Director Construction Business Manager
Hawk One Corp., Director
Sanei Architecture Planning Co. Ltd. President and Representative Director
Sanei Architecture Planning Co. Ltd. Executive vice-president

Open House Group Co.,LTD. Senior Managing Director, CFO
Pressance Corporation Director
Open House Group Co., LTD. Executive Officer, Head of Management Headquarters

22

4. Positioning of FY2024

PMI (Progress in Recurrence Prevention Measures)◼ External advisor certified that the “Operation of Recurrence Prevention Measures areworking effectively” for Meldia
Sept 2023: Began to implement the operation of recurrence
prevention measures, based on recommendations of an External
AdvisorJan 2024: Received a confirmation/opinion letter from anExternal Advisor stating that “the operation of recurrence
prevention measures are working effectively."⇒ Progress towards regaining new loan support from financial institutions
1. Implementation and operation of recurrence
prevention measures✓ Fostering compliance awareness among
executives and employees✓ Strengthening the monitoring function of theboard of directors, etc.
✓ Establishing routes to share information for
external officers✓ Improving systems for anti-social check2. Thorough recurrence prevention measuresby the “Recurrence Prevention Monitoring
Committee”
3. Confirmation of recurrence prevention
measures by external advisors
4. Blocking targets and relationships with
antisocial organizations monitored by the“Elimination Monitoring Committee”

23

4. Positioning of FY2024

PMI (Strengthen the Sales System)◼ 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

◼ Over 30% of Meldia’s properties
were sold through Open House◼ Meldia Realty to sell properties byOpen House Development and Hawk One
Single-family homes
for saleMediator/agent

MELDIA

Meldia Realty◼ Building a cross collaboration system*100% subsidiary of Meldia

Included in the Group from this quarter
24

4. Positioning of FY2024

PMI (Group Synergy)◼ Announced Pressance Corporation will make Meldia DC as a subsidiary◼ Maximize group synergies through collaboration between the two companies, as both havestrength in the Kansai region
December 2023

May 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

Share Capital

100 million yen (as of September 30, 2023)

Representative

Representative Director and President Kazuya Tanaka

Date of establishment

October 1, 199325

4. Positioning of FY2024

Important Issues (Materiality)

 Governance and Compliance Reform

Enhance Customer Satisfaction
 Strengthen Hiring of Key Talent26

4. Positioning of FY2024◼ Governance and Compliance Reform, Enhance Customer Satisfaction◼ Respond to issues faced and assess risks◼ Restructure our systems to deliver greater customer satisfaction(1)Training for senior management

Conducted training run by outside attorneys forsenior management of OHG and major
subsidiaries.

(2) Regular compliance testing

Conduct regular tests to improve employees’
understanding of compliance(4) Separation of sales operations from contracting
operations
From July 2023, explanation of important contract
details will be performed by a dedicated specialist
department (100% remote operation)(5) Strengthening of quality control systems inconstruction of single-family homes(Strengthened areas(3) Compliance risk assessments

Introduce risk assessments by legal firms forcritical workflows

Site Supervisor
MGR

)

Site
Supervisor(2 Directors
system)Group Leader
or MGR

Quality
Management
Design Dept.

Final Inspection

Corrective
Inspection

Surprise
Inspection

Self-check
Carpentry
Inspection27

4. Positioning of FY2024

Improving Customer Satisfaction◼ Corporate Principles: “All decisions are made by customers”◼ Instill a corporate culture that places customer satisfaction above all else
Majority of customer complaints are related to (1) sales, or (2) construction.
(1) Matters Related to Sales(2) Matters Related to Construction
so farIn the Brokerage Sales
Division, the Customer
Satisfaction Promotion
Office has traditionallyserved as a central
contact point forcustomer response.

The Construction
Division's construction
offices and site
personnel handled
matters on an
individual basis, whichmeant that varied
responses may haveoccurred.

October 2023
Establishment of a single point of contact

Customer Service Department✓ Acknowledge total number of complaints✓ Manage response status of complaints
and time reduction

We have centralized customer service contact point to improve customer convenience28

4. Positioning of FY2024

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)

6,000

4,092

2,263
1,099 1,258

530

1,522

631

2,642

2,876

4,493

4,904

◼ Corporate Philosophy“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 Meldia29

5. Sustainability

5. Sustainability

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

Promotingdecarbonization
for the next
generation

Popularizing
woodenhousesProvidingaffordable housingin
Metropolitan areas

Promotion of
women’s
participation
in workplace

Corporate culture inwhich motivatedpeople can findfulfillment
in their work31

5. Sustainability

Important Issues (Materiality)◼ Promotion of Sustainability(Realization of a Sustainable Society and Company)➢ Maximization of the Value of Human Capital➢ Creation of Safe and Healthy Lifestyles➢ Contribution to a Carbon-free Society

32

5. Sustainability

Maximizing the Value of Human Capital (Diversity)◼ New initiatives to promote women's empowerment
・Established free AMH tests and a pregnancy consultation desk available to our employees and their spouses
・Introduced the "Laurier in the Workplace", an initiative by Kao, to stock sanitary products in workplace washrooms
・Changed the age of eligibility for partial cost subsidies for optional gynecological examinations from 30 and over, to 25
and over.

◼ The “Japan Telework Award” was granted to the Operation Center, which was created as anenvironment where persons with disabilities can work comfortably.
・Received the Honorable Mentions Award in the Social Contribution Category at the ”24th Japan Telework Award” hosted
by the Japan Telework Association.
・Praised for the ability to choose from multiple satellite offices in Hachioji, Yokohama, and Kashiwa as work locations, otherthan the head office.

33

5. Sustainability

Maximizing the Value of Human Capital (Childcare Support)◼ Baby Bonus

Note*
First child: 200,000 yen
Second child: 300,000 yen
Third child: 1,000,000 yen◼ Childcare and Work Balance Support
・Subsidies for babysitting expenses up to
300,000 yen per month◼ Single-Parent Allowance

・50,000 yen per month per household
・Single-parent employees with children underelementary school age are eligible for said allowance◼ Shared Use of Company-Led Childcare
Facilities
・ A system where our Company enters into a joint use
agreement with another company which established andruns childcare facilities, allowing our employees to apply
using their employee’s slot to join these facilities
・ Usually a few spots are kept open, making it possible
to enroll even during the school year34

5. Sustainability

Creation of Safe and Healthy Lifestyles◼ Status of Areas with High Density of Wooden Homes
・ Tokyo has concentrated areas with aging wooden buildings which, in the event of an earthquake, areexpected to suffer major damage from collapses, fires, etc.
・ The Tokyo Metropolitan Government will carry out maintenance projects, etc. and promote earthquakeproofing and fire-resistance of buildings.
Status of Maintenance andPriority Maintenance Areas

Wooden home areas
Approximately 13,000ha

Maintenance areas: 28
Approximately 6,900ha
Priority Maintenanceareas: 53
Approximately 3,200ha

35

5. Sustainability

Creation of Safe and Healthy Lifestyles◼ Improving disaster prevention through redevelopment of single-family homes
・The non-combustible area ratio has improved by replacing non-fireproof buildings with quasi-fireproof buildings
・By setting back, this widens the street allowing access for emergency vehicles

BEFORE

AFTER

36

5. Sustainability

Contribution to a Carbon-free Society◼ Supplying Renewable Energy Electricity
Cumulative number of Ouchi Link
Denki contracts

2,874

5,442

December 2022

December 2023

37

5. Sustainability

Improving Corporate Image◼ Evaluations by rating agencies regarding ESG are improving year by year
◼ Our aim for the future, is to improve the brand image among business-persons

FTSE
Russell

ESGインデックスに採用

ESG Rating history
5
4

3.2

3

2.3

2
1
0

2.6

1.6
0.5
Jun-19Jan-19Jun-20Jan-20Jun-21
Jan-21

Jun-22
Jan-22Jun-23Jan-2338

6. Supplemental Financial Data

7. Supplemental Financial Data

Consolidated Financial Results Trend

40

7. Supplemental Financial Data

Consolidated Financial Results Trend

41

８． Supplemental Market trend

Number of Open House Sales Centers

Region

Kanto

Chubu

Kinki

KyushuTotal

FY 2019

FY2020

FY2021

FY2022

Feb 14.
2024
Present

FY2023

Tokyo

19

21

23

25

26

26

Kanagawa

12

12

13

15

14

14

Saitama

4

4

5

5

6

6

Gunma
Prefect.

１

Chiba

1

2

4

4

4

4

Gunma

-

-

-

1

1

1

Subtotal

36

39

45

50

51

51

Hyogo
Prefect.

Aichi

5

7

8

8

9

9

２

Subtotal

5

7

8

8

9

9

Osaka

-

-

-

2

4

5

Hyogo

-

-

-

2

2

2

Subtotal

-

-

-

4

6

7

Fukuoka

1

3

4

4

5

5

Subtotal

1

3

4

4

5

5

42

49

57

66

71

72

SaitamaPrefect.

６

Chiba
Prefect.

４

Fukuoka
Prefect.

Tokyo

26

５

Osaka
Prefect.

Aichi
Prefect.

９Kanagawa
Prefect.

14

5

42

８． Supplemental Market trend

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)

43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.