Open House : Consolidated Financial Results for the Three Months Ended December 31, 2021

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

February 14, 2022

Consolidated Financial Results for the Three Months Ended December 31, 2021

(Under Japanese GAAP)

Company name: Listing: Securities code: URL: Representative: Inquiries:

Scheduled date to file quarterly securities report: Supplementary material on financial results: Holding of quarterly financial results briefing:

Open House Group Co., Ltd. Tokyo Stock Exchange 3288 https://openhouse-group.co.jp/ir Masaaki Arai, President and CEO

Kotaro Wakatabi, Senior Managing Director and CFO February 14, 2022

Yes

None

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended December 31, 2021 (October 1, 2021-December 31, 2021)

(1) Consolidated operating results (cumulative)			(% indicate year-on-year changes)
	Revenue		Operating income	Ordinary income	Profit attributable to
		owners of parent
Three months ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
December 31, 2021	235,255	51.7	35,041	80.7	35,418	71.5	22,653	52.6
December 31, 2020	155,119	22.2	19,394	33.6	20,647	47.0	14,842	51.6

(Note) Comprehensive income: For the three months ended December 31, 2021: ¥26,057million [83.8%] For the three months ended December 31, 2020: ¥14,174 million [38.5%]

Basic earnings

Diluted earnings

per share

per share

Three months ended

Yen

Yen

December 31, 2021

179.63

179.13

December 31, 2020

117.96

117.46

(2)

Consolidated financial position

Total assets

Net assets

Equity-to-asset ratio

As of

Millions of yen

Millions of yen

%

December 31, 2021

885,694

364,026

35.0

September 30, 2021

879,913

347,143

33.4

(Reference) Equity:

As of December 31, 2021

¥ 309,736 million

As of September 30, 2021

¥ 293,809 million

2.

Cash dividends

Annual dividends per share

1Q-end

2Q-end

3Q-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY 2021

－

50.00

－

62.00

112.00

FY 2022

－

FY 2022 (Forecast)

62.00

－

62.00

124.00

(Note) Revisions to the forecast of cash dividends most recently announced: None

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Open House Group Co., Ltd. (3288)

3. Forecast of Consolidated Operating Results for FY2022 (October 1, 2021-September 30, 2022)

								(% indicate year-on-year changes)
								Profit attributable to	Basic
	Revenue		Operating income	Ordinary income	earnings
		owners of parent
								per share
	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
2Q (Cumulative)	446,700	22.7	56,900	36.7	55,800		37.1	35,900	9.6	284.66
Full year	920,000	13.5	112,000	10.8	108,900		11.6	72,000	3.5	570.91
(Note) Revision to the forecast of consolidated results most recently announced:	None

*Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes
3. Changes in accounting policies, changes in accounting estimates, and restatement

1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes

(ii)	Changes in accounting policies due to other reasons:	None
(iii)	Changes in accounting estimates:	None
(iv)	Restatement:	None

(4) Number of issued shares (common shares)

1. Total number of issued shares at the end of the period (including treasury shares)

As of December 31, 2021	126,117,000 shares
As of September 30, 2021	126,117,000 shares

1. Number of treasury shares at the end of the period

As of December 31, 2021	3,441 shares
As of September 30, 2021	3,441 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended December 31, 2021	126,113,559 shares
Three months ended December 31, 2020	125,824,224 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Consolidated business forecasts are based on assumptions from information available to management at the time of disclosure and those deemed to be reasonable. Actual results may differ significantly from forecast due to various unpredictable reasons.

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Open House Group Co., Ltd. (3288)

	Consolidated Quarterly Financial Statements
	1）Consolidated Quarterly Balance Sheets
								(Millions of yen)
							End of FY2021	End of FY2022 1Q
							(as of September 30, 2021)	(as of December 31, 2021)
	Assets
		Current assets
			Cash and deposits				337,731	328,874
			Trade accounts receivable and contract assets				1,929	2,199
			Real estate for sale				90,402	82,525
			Real estate for sale in process				337,726	359,352
			Operating loans				36,878	40,610
			Other				26,421	23,063
			Allowance for doubtful accounts				(362)	(389)
			Total current assets		830,727	836,236
		Non-current assets
			Property, plant and equipment	21,297	21,828
			Intangible assets				3,031	3,090
			Investments and other assets		24,856	24,539
			Total non-current assets				49,185	49,458
		Total assets			879,913	885,694
	Liabilities
		Current liabilities
			Notes payable - trade				1,166	1,253
			Trade accounts payable				20,850	23,497
			Electronically recorded obligations - operating				4,713	3,893
			Short-term borrowings				104,684	113,020
			Current portion of bonds payable				242	242
			Current portion of long-term borrowings				57,142	47,426
			Income taxes payable				18,239	9,677
			Provisions				4,695	2,679
			Other				44,503	42,401
			Total current liabilities			256,237	244,092
		Non-current liabilities
			Bonds payable	10,605	10,605
			Long-term borrowings				264,502	265,767
			Provision for share awards				257	256
			Retirement benefit liability				311	320
			Asset retirement obligations				150	160
			Other				705	466
			Total non-current liabilities			276,532	277,576
		Total liabilities			532,769	521,668
	Net assets
		Shareholders' equity
			Share capital	19,939	19,939
			Capital surplus				29,068	29,047
			Retained earnings				244,248	259,177
			Treasury shares				(0)	(0)
			Total shareholders' equity		293,256	308,164
		Accumulated other comprehensive income
			Valuation difference on available-for-sale securities	12	11
			Foreign currency translation adjustment				540	1,560
			Total accumulated other comprehensive income			552	1,572
		Share acquisition rights				551	522
		Non-controlling interests	52,782	53,767
		Total net assets				347,143	364,026
	Total liabilities and net assets		879,913	885,694

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Open House Group Co., Ltd. (3288)

2）Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income Consolidated Quarterly Statements of Income

							(Millions of yen)
					Three months ended		Three months ended
					December 31, 2020		December 31, 2021
					(From October 1, 2020		(From October 1, 2021
					to December 31, 2020)		to December 31, 2021)
	Net sales	155,119		235,255
	Cost of sales	126,925	184,620
	Gross profit	28,194		50,635
	Selling, general and administrative expenses	8,799	15,594
	Operating profit	19,394		35,041
	Non-operating income
			Interest income		2		2
			Dividend income	11	715
			Rental income from buildings		34		30
			Share of profit of entities accounted for using		1,928	429
			equity method
			Foreign exchange gains		－		196
			Other	25	62
			Total non-operating income		2,003		1,437
	Non-operating expenses
			Interest expenses		573		916
			Commission expenses	31	111
			Foreign exchange losses		83		－
			Other	63	32
			Total non-operating expenses		751		1,059
	Ordinary profit	20,647	35,418
	Profit before income taxes	20,647		35,418
	Income taxes	5,799	10,379
	Profit	14,847		25,038
	Profit attributable to non-controlling interests	5	2,384
	Profit attributable to owners of parent	14,842		22,653

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Open House Group Co., Ltd. (3288)

Consolidated Quarterly Statements of Comprehensive Income

					(Millions of yen)
			Three months ended		Three months ended
			December 31, 2020		December 31, 2021
			(From October 1, 2020		(From October 1, 2021
			to December 31, 2020)		to December 31, 2021)
	Profit		14,847		25,038
	Other comprehensive income

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

	8		(1)
	(684)	1,018
	3
		2
	(672)	1,019
	14,174		26,057
	14,169
		23,672
	5	2,384

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Open House Group Co., Ltd. (3288)