Open House : Summary of Consolidated Financial Results for the Third Quarter Ended September 30, 2022

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.

August 12, 2022

Summary of Consolidated Financial Results

for the Third Quarter Ended September 30, 2022

(Based on Japanese GAAP)

Company name:	Open House Group Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	3288
URL:	https://openhouse-group.co.jp/ir
Representative:	Masaaki Arai, President and CEO
Inquiries:	Kotaro Wakatabi, Senior Managing Director and CFO
Scheduled date to file quarterly securities report:	August 12, 2022
Scheduled starting date of dividend payments:	-
Supplementary material on quarterly financial results:	Yes
Quarterly financial results briefing:	No

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended September 30, 2022 (October 1, 2021 to June 30, 2022)

(1) Consolidated operating results (cumulative)			(Percentages indicate year-on-year changes.)
	Net sales	Operating profit		Ordinary profit	Profit attributable to
		owners of parent
Nine months ended	Millions of		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
yen
June 30, 2022	667,133		14.3	83,969		15.3		87,016	23.0	56,229	10.3
June 30, 2021	583,758		52.2	72,842		89.5		70,720	32.8	51,001	21.7
Note: Comprehensive income For the nine months ended June 30, 2022:	¥ 68,971 million	[27.3%]
	For the nine months ended June 30, 2021:	¥ 54,193 million	[29.6%]
	Basic earnings	Diluted earnings
	per share	per share
Nine months ended			Yen			Yen
June 30, 2022		447.66	446.62
June 30, 2021		405.04	403.48
(2) Consolidated financial position
	Total assets	Net assets		Equity-to-asset ratio
As of	Millions of yen	Millions of yen			%
June 30, 2022		965,462	376,068			33.1
September 30, 2021		879,913	347,143			33.4
Reference: Equity As of June 30, 2022:	¥ 319,675 million
As of September 30, 2021:	¥ 293,809 million

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Open House Group Co., Ltd. (3288)

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	－	62.00
FY 2022 (Forecast)			－		62.00	124.00

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

3. Forecast of consolidated operating results for FY2022 (October 1, 2021 to 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
Full year	935,000	15.4	116,000	14.7	115,000	17.8	75,700	8.8	602.67

Note: Revision to the forecast of consolidated results most recently announced: None

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Open House Group Co., Ltd. (3288)

* 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
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
5. Number of issued shares (common shares)
6. 1. Number of issued shares at the end of the period (including treasury shares)

As of June 30, 2022	126,284,700 shares
As of September 30, 2021	126,117,000 shares

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

As of June 30, 2022	4,687,285 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)

Nine months ended March 31, 2022	125,607,915 shares
Nine months ended March 31, 2021	125,917,025 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 FY 2022 3Q
			(as of September 30, 2021)	(as of June 30, 2022)
Assets
Current assets
Cash and deposits			337,731	309,802
Trade accounts receivable and Contract assets		1,929	1,606
Real estate for sale			90,402	90,691
Real estate for sale in process		337,726	457,614
Operating loans			36,878	37,148
Other			26,421	18,984
Allowance for doubtful accounts		(362)	(381)
Total current assets		830,727	915,467
Non-current assets
Property, plant and equipment	21,297	22,290
Intangible assets			3,031	3,001
Investments and other assets		24,856	24,702
Total non-current assets			49,185	49,994
Total assets			879,913	965,462
Liabilities
Current liabilities
Notes payable - trade			1,166	1,283
Trade accounts payable			20,850	29,079
Electronically recorded obligations - operating		4,713	7,746
Short-term borrowings			104,684	134,572
Current portion of bonds payable		242	242
Current portion of long-term borrowings		57,142	46,649
Income taxes payable			18,239	9,835
Provisions			4,695	3,454
Other			44,503	48,974
Total current liabilities			256,237	281,838
Non-current liabilities
Bonds payable			10,605	10,484
Long-term borrowings			264,502	296,220
Provision for share awards			257	-
Retirement benefit liability			311	338
Asset retirement obligations		150	209
Other			705	302
Total non-current liabilities		276,532	307,555
Total liabilities			532,769	589,393
Net assets
Shareholders' equity
Share capital			19,939	20,070
Capital surplus			29,068	29,350
Retained earnings			244,248	285,145
Treasury shares			(0)	(23,763)
Total shareholders' equity			293,256	310,802
Accumulated other comprehensive income
Valuation difference	on available-for-sale	12	14
securities
Foreign currency translation adjustment		540	8,858
Total accumulated other comprehensive income	552	8,872
Share acquisition rights			551	426
Non-controlling interests			52,782	55,967
Total net assets			347,143	376,068
Total liabilities and net assets			879,913	965,462
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				Open House Group Co., Ltd. (3288)

1. Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income
   Consolidated Quarterly Statements of Income

			(Millions of yen)
		Nine months ended	Nine months ended
		June 30, 2021	June 30, 2022
		(from October 1, 2020 to June	(from October 1, 2021 to June
	30, 2021)	30, 2022)
Net sales		583,758	667,133
Cost of sales		472,153	534,715
Gross profit		111,605	132,418
Selling, general and administrative expenses	38,763	48,448
Operating profit		72,842	83,969
Non-operating income
Interest income		12	84
Dividend income		13	1,748
Rental income from buildings		113	120
Foreign exchange gains	-	3,427
Share of profit of entities accounted for using equity		1,435	407
method
Other		690	500
Total non-operating income		2,266	6,288
Non-operating expenses
Interest expenses		2,248	2,626
Commission expenses		724	370
Loss on valuation of investment securities		917	-
Other		496	245
Total non-operating expenses		4,387	3,242
Ordinary profit		70,720	87,016
Extraordinary income
Gain on bargain purchase		15,475	-
Total extraordinary income		15,475	-
Extraordinary losses
Loss on step acquisitions		11,095	-
Loss on sale of shares of subsidiaries and associates		-	119
Total extraordinary losses		11,095	119
Profit before income taxes		75,100	86,896
Income taxes		22,315	26,254
Profit		52,785	60,641
Profit (loss) attributable to non-controlling interests		1,783	4,412
Profit attributable to owners of parent		51,001	56,229

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Open House Group Co., Ltd. (3288)