オープンハウスグループ（3288） – [Delayed]Consolidated Financial Highlights for the Second Quarter Ended September 30,2022

2017-2020FY2022 2Q TopicsBusiness Business performanceperformanceFY2022 2Q FY2022 2Q Achieved record highs in revenue and income for the second quarter. Actual¥ 445.4 billion [ 25.1% YOY ] Revenue:Operating income:¥ 59.9 billion [ 44.2% YOY ] Profit attributable to owners of parent : ¥ 39.5 billion [ 20.7% YOY ] FY 2022 2Q Forecast¥ 446.7 billion ¥ 56.9 billion¥ 35.9 billion Aiming to achieve record highs in revenue and income for the tenth Upward revision Upward revision of consolidated of consolidated financial forecastfinancial forecastFY2022FY2022consecutive year.Revenue:Operating income:Ordinary income:Revised Forecast¥ 935 billion ［15.4% YOY]¥ 116 billion [14.7% YOY]¥ 115 billion [17.8% YOY]Previous Forecast¥ 920 billion¥ 112 billion¥ 108.9 billion Revised up the financial forecasts for U.S. real estate business and PRESSANCE Details of Details of upward revisionupward revisionCORPORATIONU. S. real estate business:Pressance Corporation:Revised Forecast¥ 65.3 billion [44.6% YOY]]¥ 142.5 billion [ -Previous Forecast52 billion¥¥ 140.8 billion2Shareholder Returnoutstanding shares.outstanding shares.1. Details of Acquisition(1) Total number of shares to be acquired(2) Total amount for share acquisition(3) Acquisition period(4) Acquisition method(cid:1) The Company decided to acquire and cancel its treasury shares, worth ¥30 billion in total or about 6% of its total number of (cid:1) The purpose is to enhance shareholder value by having agile management of capital policy and reducing the number of 7,500,000 shares (maximum)(5.94% of total number of shares outstanding)¥ 30 billion (maximum)May 16, 2022 to September 30, 2022Purchases through Off-Auction Own Share Repurchase Trading(ToSTNeT-3) of the Tokyo Stock Exchange or open marketpurchases on the Tokyo Stock ExchangeMasaaki Arai, who is the President and CEO of the Company, agreed to sell up to 2.7 million shares* out of the shares to be acquired this time in a bid to mitigate the impact on the market that may be caused by the acquisition.*It is equivalent to the percentage of shares held by Mr. Arai out of the total number of shares outstanding (excluding treasury shares) as of the end of March 2022.2. Details of Cancellation(1) Number of shares to be cancelled(2) Scheduled date of cancellationAll shares acquiredSeptember 30, 20223Business performance and shareholders return(cid:1) Aiming to achieve record highs in revenue and income for the tenth consecutive year since its listing in (cid:1) Revenue expanded 10 times, operating income was up 11 times, and dividend per share grew 20 times FY2013(compared with FY2013).Revenue (¥ billion)Operating income (¥ billion)Dividend per share9,3508,1051,0111,1605,4035,759124.00621112.0080.002,47231325.003,04637632.503,90747349.0057763.009691016.251,12113710.001,79321315.00FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022*Since the Company executed a two-for-one stock split in FY2015 and FY2019, the stock price and dividend are calculated on the assumption that the stock split took place in FY2013.4Corporate Philosophy and Our MissionCorporate Philosophy1. Remain committed to pursuing “Houses that customers want” honestly and constantly.2. Attract a wide range of motivated people and create an organization that rewards3.Increase performance and expand the scale of our business, and be a real estateresults.company needed by society.Our MissionSupplying Affordable Housing in the Tokyo Metropolitan Area*For more details, please refer to the page 42-44 5SustainabilityViews on SustainabilityThe OPEN HOUSE Group promotes sustainability aiming to contribute to the realization ofa sustainable society through our business activities while achieving sustainable corporategrowth.ESGMaterial IssuesEnvironmentEnvironmental conservationProduct safety and security, and customer satisfactionSocialTalent developmentWork-style reformsSupply chain managementGovernanceCompliance6Key initiatives and external evaluations in FY 2022November 2021March 2022Signed on to TCFDCertified as DX Business Operator by METI**the Ministry of Economy, Trade and Industry of JapanJanuary 2022April 2022Signed the UN Global CompactSince 2022 the Company has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labor, the environment, and anti-corruption.February 2022April 2022Included in “FTSE Blossom Japan Sector Relative Index”Concluded a Positive Impact Finance Agreement with Mizuho Bank, Ltd.Loan amount: ¥ 10 billionReceived rating of BBB by MSCI ESG Ratings7FY2022 2Q Consolidated Financial SummaryOverview of Consolidated Income Statement(cid:1) Achieved record highs in revenue and income for the second quarter. FY2021 2Q<2020/10-2021/3>FY2022 2Q<2021/10-2022/3> Actual% of revenueActual% of revenue(Million yen)Inc.(Dec.)Revenue363,945-455,411-25.1%Operating incomeOrdinary incomeProfit attributable to owners of parent41,61440,69932,75111.4%11.2%59,99813.2%44.2%61,62713.5%51.4%9.0%39,5308.7%20.7%9Performance by segment (Revenue/Operating income)(cid:1) All segments saw both revenue and operating income increases.(cid:1) The Property Resales business and the U.S. Real Estate business, in particular, were robust.FY2021 2Q <2020/10-2021/3>FY2022 2Q <2021/10-2022/3> Actual RatioActual RatioRevenueSingle-family homes related business CondominiumsProperty resalesOthers (including U.S. real estate business)Pressance CorporationAdjustmentsOperating IncomeSingle-family homes related business CondominiumsProperty resalesOthers (including U.S. real estate business)Pressance CorporationAdjustments 363,945235,2034,64455,58919,62949,492(613)41,61432,910(816)6,1252,1172,160(883)100.0%64.6%1.3%15.3%5.4%13.6%-11.4%14.0%-11.0%10.8%4.4%-455,411260,77111,46776,20536,27771,827(1,138)59,99835,9534199,1304,56410,985(1,055)(Million yen)Inc.(Dec.)25.1%10.9%146.9%37.1%84.8%–44.2%9.2%-49.1%115.6%–100.0%57.3%2.5%16.7%8.0%15.8%-13.2%13.8%3.7%12.0%12.6%15.3%-Actual % of revenueActual % of revenueInc.(Dec.)* Since Pressance Corporation was included in the scope of consolidation from the second quarter of FY2021, full-year revenue and operating income is not indicated.10Single-family homes related business as a whole(cid:1) The average price of single-family homes for 2022 rose due to high demand.(cid:1) New condominium prices continued to go up due to high demand and low supply.Revenue (¥billion)Operating income (¥billion)235.2260.7186.432.935.920.8FY2020 2Q FY2021 2Q FY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2Q19/10-20/3FY2021 2Q 20/10-21/3FY2022 2Q21/10-22/3Inc. (Dec.)9080706050403053.3945.41Changes in the average price for new condominiums in Tokyo’s 23 wards and average price for our single-family homes (built-for-sale)Average price for new condominiums in Tokyo’s 23 wards 67.3266.2970.89 71.4272.86(Million yen)84.0785.7577.1243.3244.7744.3543.4843.8843.3142.0646 .03Average price for our single-family homes (built-for-sale)201120122013201420152016201720182019202020212022Source: MLIT, “Monthly marketing report of lands”Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes are for the period Oct.–Sep.Condominium prices for 2021 are for the Oct.–Sep. period. Prices of our homes for 2021 are for the Jan. 2021-Dec. 2021 period, and for 2022 are for the Oct. 2021-Mar. 2022 period in Tokyo metropolitan area. Changes in the number of new condominiums supplied in Tokyo’s 23 wardsRevenue (¥million)186,467235,203 260,77110.9%30,00028,340 Gross profit (¥million)30,36045,00249,91610.9%20,00019,410 19,398 20,774 18,472 14,764 16,017 15,957 13,737 13,290 10,911Gross profit margin16.3%19.1%19.1% 0.0pt10,000Operating income (¥million)20,89632,91035,9539.2%0Operating income margin11.2%14.0%13.8% (0.2)pt20112012201320142015201620172018201920202021Source: MLIT, “Monthly marketing report of lands”Fiscal years: ： Calendar-year basis for the Jan–Dec period11Single-family homes related business (Revenue by Sub-business Segment / Number delivered)Revenue / Gross profit (¥million)Number delivered / Unit price (¥million)FY2020 2Q19/10-20/3FY2021 2Q20/10-21/3FY2022 2Q21/10-22/3FY2020 2Q19/10-20/3FY2021 2Q20/10-21/3FY2022 2Q21/10-22/3Open House Development(Sale)RevenueGross profit119,996148,797168,707Built-for-sale houses 20,14628,83933,489Lands Gross profit margin 16.8%19.4%19.9%Built-to-order housesBuilt-for-sale houses(unit price)Lands (unit price)Hawk One(Sale)RevenueGross profitGross profit margin 17.8%18.9%11,12112,223Lands 6,40914.4%Built-to-order housesSales (unit price) *44,48362,62864,636Built-for-sale houses 1,0801,3111,211* Sales (unit price) : Average unit price of built-for-sale houses and landsOpen House Architect(Construction)RevenueGross profitGross profit margin 27,67927,57130,3573,23011.7%3,73613.6%2,7489.1%Built-to-order housesexcept number delivered to OHDNumber delivered to OHD 1,3321,3341,384797832812121,2961,27175242.941.8641538.41,7341,64684340.040.61573742.31,6241,89185243.245.11707645.9Single-family homes related business (Sales trend)(cid:1) Sales of single-family home remained high due partly to strong sales in the Kansai region launched in October 2021.(cid:1) Sales of rental single-family homes for funds also made a positive contribution.44.1%36.6%32.1%24.2%2.7%4.1%13.8%2,603 2,456 2,478 2,576 2,464 2,447 2,668 4,000YOY sales increase (contact basis)6.9%3,00010.0%14.7%Number of contracts2,0001,0001,788 2,048 2,181 Japan’s first state of emergencyApril 7 to May 2101Q2Q3Q4Q1Q2Q3Q4Q1Q2QFY2020FY2021FY2022Scope： Combined number of built-for-sale houses and lands of Open House Development and Hawk One, not included number of built-to-order houses.13Single-family homes related business (Contract unit price)(cid:1) Contract unit price also remains high44434241403938373635Contract unit price (million yen)43.643.343.243.755.0%41.441.340.339.939.439.8%39.039.9%Japan’s first state of emergencyApril 7 to May 2137.8%34.6%36.2%37.7%37.4%35.0%43.0%41.4%39.3%Land Ratio50.0%45.0%40.0%30.0%1Q2Q3Q4Q1Q2Q3Q4Q1Q2QFY2020FY2021FY2022Scope： Combined number of built-for-sale houses and lands of Open House Development and Hawk One, not included number of built-to-order houses. 14Single-family homes related business (Open House-brokerage)(cid:1) In April 2022, Nishinomiya sales center was opened as the third sales center in the Kansai region.Number of sales centers of each areaNishinomiya sales center opened in April 2022FY2018 FY2019FY2020FY202120/10-21/9As of 2022.5.13171032—–19125411—21127432—231325148544—85442113242495764TokyoKanagawaAichiSaitamaFukuokaChibaOsakaHyogoGunmaTotal15Condominiums Businessconcentrated in 4Q.(cid:1) The contract rate of condominiums scheduled to be delivered during the current fiscal year was 95%; actual deliveries will be(cid:1) Purchases also progressed smoothly in the Tokyo metropolitan area, looking toward regrowth in FY2022.Revenue (¥billion)Gross profit (¥billion)Gross profit margin (%)Number delivered11.42.88.54.61.71.120.124.924.913218560FY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QRevenue (¥million)Gross profit (¥million)Gross profit margin Operating income (¥million)Operating income marginNumber deliveredUnit price (¥million)FY2020 2Q19/10-20/3FY2021 2Q20/10-21/3FY2022 2Q21/10-22/38,5331,71720.1%(47)-13264.14,6441,15524.9%(816)-6068.911,4672,85424.9%4193.7%18560.6Inc. (Dec.)146.9%147.0%0.0pt–125(8.3)― Major condominiums delivered in FY2022 ― NameUnitsAverage priceOpen Residencia Takanawa THE HOUSE (Tokyo)Open Residencia Yokohama (Kanagawa)Open Residencia Meieki Minami THE COURT (Nagoya)Open Residencia Yakuin Minami (Fukuoka) 34866245¥ 110 million¥ 50 million¥ 30 million¥ 30 million16Property Resale Business(cid:1) Sales were robust on the back of strong demand for investment property.(cid:1) Accelerated growth by utilizing its overwhelming amount of information on properties in metropolitan areas.Revenue (¥billion)Gross profit (¥billion)Operating income (¥billion )Number delivered5555.576.28.18.95.56.112.99.1111131160FY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2Q 19/10-20/3FY2021 2Q 20/10-21/3FY2022 2Q 21/10-22/3Inc. (Dec.)Breakdown of properties owned (as of the end of March 2022)By property size*By useBy locationRevenue (¥million)55,06055,589Gross profit (¥million)Gross profit margin Operating income (¥million)Operating income marginNumber deliveredUnit Price (¥million)8,14414.8%5,53610.1%1114878,94216.1%6,12511.0%13141676,20512,91917.0%9,13012.0%16046137.1%44.5%0.9pt49.1%1.0pt29441127N=1451073415N=1459627N=145891712TokyoKanagawaKansai, Chubu, KyushuOther≤¥100 MIL>¥100 MIL≤¥500 MIL >¥500 MILCondminiumOffice buildingComplex building＊Based on book values as of the end of March 202217Other Segment (U.S. Real Estate Business )(cid:1) Providing U.S. real estate to Japanese investors through one-stop services.(cid:1) Sales remained healthy due to strong demand for pure investment and asset diversification by corporations and wealthy individual investors.Revenue (¥billion)Gross profit (¥billion)Operating income (¥billion )Number delivered36.27.519.611.92.73.91.22.14.5414220564FY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2QFY2021 2QFY2022 2QFY2020 2Q 19/10-20/3FY2021 2Q 20/10-21/3FY2022 2Q 21/10-22/3Inc. (Dec.)Revenue (¥million)11,91119,62936,277Gross profit (¥million)2,7383,9967,538Gross profit margin 23.0%20.4%20.8%Business model-One-Stop ServiceOur service for the administration of local properties and support for sales.Selection of propertiesOffering of properties that our local offices selected for domestic wealthy investorsOperating income (¥million)1,2212,1174,564115.6%Administration of propertiesFundingOperating income margin10.3%10.8%12.6%Number delivered*Multi family homes included above2205414556414* Figures for U.S. Real Estate Business are shown..Support for the whole process from conclusion of an agreement to the end of a transactionPurchase processIntroduction of financial institutions, and loans from our Group company are also available. 1884.8%88.6%0.4pt1.8pt1509Other Segment (U.S. Real Estate Business )(cid:1) The business grew steadily against the backdrop of the growing U.S. market.(cid:1) Holding the No. 1 position among Japanese companies in terms of the number of transactions and the volume of U.S. properties the Company handles. Number DeliveredScheduling to sell a cumulative total of 3,350 buildings by the end of current fiscal year.960Report of tax reformDecember 2019803704489394* Economic growth caused by population growth (demand growth)U.S. vs. Japan nominal GDP trends(US$ Billion)20,894 19801990200020102020Source: “National Account (GDP)” Cabinet Office of Japan Upward trend of real estate pricesU.S. vs. Japan trends of real estate price indices154.277.3100.05,058 212.0103.5FY2018FY2019FY2020FY2021FY2022199520002005201020152020Source：“S&P CoreLogic Case-Shiller Home Price Indices” Japan Real Estate Institute19Pressance Corporation(cid:1) Pressance Corporation was included in the scope of consolidation in January 2021(cid:1) Both revenue and gross profit exceeded previous forecastRevenue (¥billion)Operating Income (¥billion)71.810.949.42.1Actual by ProductsProductsStudio-type condominiumFamily-type condominiumFY2021 2QFY2022 2QFY 2021 2QFY 2022 2QTotalFY2021 2Q21/1-21/3FY2022 2Q21/10-22/32,0393392,3781,5887022,290Chukyo regions Condominiums for investment Condominiums for families Management of condominiumsFY2021 2Q 21/1-21/3FY2022 2Q 21/10-22/3ComplementaryAreasarea Strong in the Tokyo metropolitan Strong in the Kinki, Tokai and Revenue (¥million)Gross profit (¥million)Gross profit margin Operating income (¥million)Operating income margin49,4926,64713.4%2,1604.4%71,82718,76326.1%10,98515.3%Complementary Products Single-family homes Condominiums Property resales U.S. real estate MajorSynergiesmetropolitan areaproperties Single-family home business to tap into Kansai region Develop a business line of new condominiums for investment in the Tokyo 20* Since Pressance Corporation was included in the scope of consolidationfrom the second quarter of FY2021, full-year actual is not indicated. Develop a real estate fund business managing primarily residential Breakdown of SG&A Expenses, Non-Operating Income / ExpensesFY2021 2Q 2020/10-2021/3FY2022 2Q2021/10-2022/3ActualActual% of revenue% of revenueInc. (Dec.)(Million yen)FY2021 2Q 2020/10-2021/3FY2022 2Q 2021/10-2022/3ActualActual% of revenue% of revenueInc. (Dec.)SG&A expenses24,2296.7% 31,5936.9%7,364Non-operating income2,0820.6% 3,7090.8%1,627Personnel expenses7,3362.0% 9,8932.2%2,5571,4480.4%4950.1%(952)Share of profit of entities accounted for using equity methodSales commissions2,7520.8% 3,6730.8%921Dividend income110.0% 1,6560.4%1,645Office maintenance cost2,4140.7% 3,1900.7%775Other6230.2% 1,5570.3%934Advertising expenses1,6690.5% 1,8550.4%186Non-operating expenses2,9970.8% 2,0810.5%(915)Promotion expenses6660.2%8660.2%199Interest expenses1,3710.4% 1,7040.4%333Others9,3902.6% 12,1142.7%2,723Commission expenses3210.1%2570.1%(63)Dividend income from U.S. real estate casesForeign exchange profit 999 million yenOther1,3040.4%1180.0%(1,186)21Consolidated Balance SheetSep 30, 2021 Mar 31, 2022Inc. (Dec.)Current assets830,727905,81475,086Cash and deposits337,731375,71037,979InventoriesOthers428,129476,11147,98264,86753,991(10,875)Non-current assets49,18548,909(275)Property, plant and equipmentIntangible assetsInvestments and other assets21,29721,8783,0313,005580(26)24,85624,026(830)Sep 30, 2021 Mar 31, 2022Inc. (Dec.)(Million yen)Liabilities532,769569,58536,815Current liabilities256,237280,94624,708Non-current liabilities276,532288,63912,107Net Assets347,143385,13837,994Shareholders’ equity293,256325,25632,0001,1044,5213,416Valuation and translation adjustmentsNon-controlling interestsTotal liabilities and net assetsDeferred assets—52,78255,3602,577Total assets879,913954,72374,810＜Safety index＞D/E ratioNet D/E ratio*(times) Sep 30, 2021 Mar 31, 2022Inc. (Dec.)1.50.3(0.1)(0.1)Equity ratioCurrent ratio 879,913954,72374,810Sep 30, 2021Sep 30, 2022Inc. (Dec.)33.4%324.2%34.5%322.4%1.1 pt(1.8) pt*Net debt/equity ratio:(loans payable + corporate bonds-cash & deposits) / net assetsNet D/E ratio one time or less/Equity ratio 30% or moreInvestment capacity Solid financial structure22Inventory DetailsFY2019(Sep 30, 2019)FY2020(Sep 30, 2020)FY2021(Sep 30, 2021)FY2022 2Q(Mar 31, 2022)RatioInc. (Dec.)Single–family homes related140,560148,676170,389CondominiumsProperty resales OthersTotalPressance Corporation35,06553,69120,735-36,33936,44515,825-53,49654,68123,452126,109428,129188,61178,67058,18228,803121,84239.6%16.5%12.2%6.0%25.6%250,054237,287476,111100.0%411.3417.3428.1441.8476.1(Million yen)18,22225,1743,5015,350(4,266)47,982250.0237.2239.6(Billion yen)Single–family homes relatedCondominiumsProperty resalesOthers35.053.620.7FY19 4Q140.5FY20 4Q148.6FY21 1Q139.9FY21 2Q138.5FY21 3Q141.2FY21 4Q170.3FY22 1Q180.8FY22 2Q188.6Pressance Corporation—-150.7–136.1–126.1-36.336.415.8-41.245.512.851.657.712.759.962.717.153.454.623.457.653.328.4121.478.658.128.8121.823Consolidated Statement of Cash FlowsFY2021 2Q＜2020/10-2021/3＞FY2022 2Q＜2021/10-2022/9＞Main factors(Million yen)- Booking of income before income taxes- Increase in inventories – Payment of income taxes ,etc1,844- Collection of loans receivable- Purchase of shares of subsidiaries, etc.21,410- Increase in loans payable – Dividend payment, etc. Cash flows from operating activities31,74611,701Cash flows from investing activitiesCash flows from financing activitiesEffect of exchange rate changes on cash and cash equivalentsNet increase (decrease) in cash and cash equivalents25,25034,2589812,29492,23637,250Cash and cash equivalents at beginning of period219,218334,506Cash and cash equivalents resulting from change in scope of consolidation199728Cash and cash equivalents at end of period311,654372,48524Consolidated Business Performance Forecasts for FY2022Consolidated Business Performance Forecasts(cid:1) Based on the first-half results, the second-half forecast is conservative and the full-year forecast was revised upward.(cid:1) Aiming to achieve record highs in revenue and income for the tenth consecutive year.Substantial growth of 16.1% if excluding the impact of negative goodwill in the previous fiscal year(Million yen)FY2021(2020/10-2021/9)FY2022 Previous forecast(2021/10-2022/9)FY2022 Revised forecast(2021/10-2022/9)ActualInc. (Dec.)Forecast Inc. (Dec.)Forecast Inc. (Dec.)Revenue810,54040.7%920,000935,000+15.4%+15,000Operating income101,10362.7%112,000Ordinary income97,59026.2%108,900116,000+14.7%115,000+17.8%Profit attributable to owners of parent 69,58217.0%72,0003.5%75,700+8.8%EPS* (yen)552.40 ―570.91Annual dividends per share (yen)112.00 32.00124.0012.0012.00Payment ratio 600.15124.0020.7%――Shareholder Return20% or morePayout ratio20.3%―21.7%13.5%10.8%11.6%――Revised Amount+4,000+6,100+3,70026Consolidated Business Forecasts (Revenue by business segment)(cid:1) The forecasts of U. S. real estate business and pressance corporation were revised upwardFY2021(2020/10-2021/9)FY2022 Previous forecast(2021/10-2022/9)FY2022 Revised forecast(2021/10-2022/9)ActualInc. (Dec.)Forecast Inc. (Dec.)Forecast Inc. (Dec.)Revenue810,54040.7%920,000Single-family homes related business446,95917.7%513,700Condominiums47,147(18.9)%62,000Property resales123,0619.7%151,50013.5%14.9%31.5%23.1%935,000513,70062,000151,500Others (U.S. real estate business)45,15973.5%52,00015.1%65,30044.6%13,300Pressance Corporation149,337Adjustments(1,126)――140,800―――142,500―* Since Pressance Corporation was included in the scope of consolidation from the second quarter of FY2021, full-year increase/decrease is not indicated.(Million yen)Revised amount15,000――――1,7002715.4%14.9%31.5%23.1%――Consolidated Business Performance Forecasts (Revenue by Sub-business Segment/Number delivered)Revenue (¥billion) FY2020 (19/10-20/9)ActualFY2021 (20/10-21/9)ActualFY2022(21/10-22/9)PlanNumber deliveredFY2020 (19/10-20/9)ActualFY2021 (20/10-21/9)ActualFY2022(21/10-22/9)PlanOpen House DevelopmentLands Built-for-sale houses Built-to-order houses116.6108.023.6138.7128.126.6152.8 Built-for-sale houses 152.3 Lands 30.8 Built-to-order housesOpen House Architect55.557.866.8Hawk One87.0105.3124.0Lands 2,8042,6451,5974,1581,5352,06314539230501123,3963,0881,8144,2651,6342,15029282292827243,6903,7302,0704,7401,8602,4403601703409802028Built-to-order housesNumber delivered toOHDBuilt-for-sale houses Built-to-order housesHomesMulti family homes included aboveCondominiums Property resales 58.1112.247.1123.062.0 Units151.5 Buildings1,2241,0811,210U.S. real estate business 26.045.165.2The Mid-term Business Plan(cid:1) No change to the final year (FY2023) forecast – to be reviewed at the end of the current fiscal year.Profit/Loss PlanRevenue1200Operating income1000800(Billion yen)6004002000810.5101.1935.0116.01,050.0125.015014013012011010090FY2021 ActualFY2022 ForecastFY2023 PlanFY2021(2020/10-2021/9)FY2022(2021/10-2022/9)FY2023(2022/10-2023/9)(Million yen)ActualInc. (Dec.)Forecast Inc. (Dec.)PlanInc. (Dec.)RevenueOperating incomeOrdinary incomeProfit attributable to owners of parent 810,540101,10397,59069,58240.7%62.7%26.2%17.0%935,000116,000115,00075,70015.4%1,050,00012.3%14.7%17.8%8.8%125,000120,00080,0007.8%4.3%5.7%Substantial growth of 16.1% if excluding the impact ofnegative goodwill in the previous fiscal year30Plan by Business Segment(cid:1) No change to the final year (FY2023) forecast – to be reviewed at the end of the current fiscal year.FY2021(2020/10-2021/9)FY2022(2021/10-2022/9)FY2023(2022/10-2023/9)ActualInc. (Dec.)Forecast Inc. (Dec.)PlanInc. (Dec.)(Million yen)Revenue810,54040.7%935,00015.4% 1,050,00012.3%Single-family homes related businessCondominiumsProperty resalesOthers (including U.S. real estate business)446,95917.7%513,70014.9%561,5009.3%47,147(18.9)%62,00031.5%100,00061.3%123,0619.7%151,50023.1%157,5004.0%45,15973.5%65,30044.6%60,800(6.9)%Pressance CorporationAdjustments149,337(1,126)――142,500―――170,20019.4%――* Since Pressance Corporation was included in the scope of consolidation from the second quarter of FY2021, full-year increase/decrease is not indicated.31Quantitative GoalsNumber of units of single family homes deliveredNumber of employees(home)14,00012,00010,0008,0006,0004,0002,0000(unit)2,5002,0001,5001,000500012,680 11,230 10,073 9,126 8,080 4,000 4,505 4,956 2,874 924 976 4,800 4,300 4,092 FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22planFY23planNumber of units of condominiums delivered *2,876 2,642 2,263 2,080 2,0001,522 1,258 1,099 1,224 1,210 1,081 949 802 1,000530 631 547 405 311 304 487 FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22planFY23plan＊Excluding number of units of Pressance CorporationFY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22planFY23plan32(person)6,0005,0004,0003,0000DX (Digital Transformation)DX Structure to Support the Group’s Growth Encouraging internalized DX led by the in-house IT Department. Building a DX structure composed of 50 diverse engineers.Approach to the DX structureAiming to build IT department that does not rely on externalparties, establish an in-house development system.In-house engineers are in charge of the scope ranging fromsystem planning and development to operation.Certified as DX Business Operator by METI on March 2022The DX Certification is an initiative by the Japanese government thatcertifies companies prepared to promote DX through such steps asformulating a management vision and adopting strategies and systems.System development and operation flowIT department InterviewFieldsIssuesDevelopmentOperationResolution of issuesBusiness efficiency improvement Proposal ofsolutionsProvision of systemsDX structure composed of 50 engineers in totalIT Department25 in-house engineers1/3 are foreign engineersInstructionReport(Cooperative Company)Offshorelaboratory development(Vietnam, etc.)25 engineersOur IT department received the 38th IT Award(Management Area) for 2020 sponsored by theJapan Institute ofInformation Technology.Establishment of an in-house IT organizationstructured for Developers’ eXperience washighly evaluated.34Implementing online contracting procedures for the U.S. Real Estate business(cid:1) The contracting procedures were put online.(cid:1) Managed to both improve customer convenience and reduce working hours. Target: U.S. real estate businessThe online system is available for the overall contracting procedures for purchasing and selling of real estate in the U.S. MeritsProvision of investment opportunitiesImprovement of operational efficiencyPastDistant customers had difficulties in accessing property informationContracting procedures relied on mailing and business tripsDigitalizationEnabling customers to complete necessary procedures from anywhereMaking the most of electronic signatures and emailingBenefitsCreation of investment opportunities and streamlining of contracting procedures4,000 hours a year- Reduction of expenses by approx. – Reduction of working hours by approx. ¥9 million a year35SustainabilitySustainability InitiativesViews on SustainabilityThe OPEN HOUSE Group promotes sustainability aiming to contribute to the realization of a sustainable society through ourbusiness activities while achieving sustainable corporate growth.Key InitiativesNovember 2019Sustainability Committee was established, and materiality (material issues) was identified.October 2020Office for Promoting Women’s Empowerment was established, and the promotion system was improved.December 2020Two female directors and one female audit and supervisory board member took office(no less than 30% of the board members ).April 2021General incorporated association Japan Wood-Housing Association was founded.September 2021Gunma Crane Thunders* signed the UN’s Sports for Climate Action Framework.* A professional basketball team in the J1 League run by Gunma Pro Basketball Commission Co., Ltd .37Key initiatives and external evaluations in FY 2022November 2021March 2022Signed on to TCFDCertified as DX Business Operator by METI**the Ministry of Economy, Trade and Industry of JapanJanuary 2022April 2022Signed the UN Global CompactSince 2022 the Company has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labor, the environment, and anti-corruption.February 2022April 2022Included in “FTSE Blossom Japan Sector Relative Index”Concluded a Positive Impact Finance Agreement with Mizuho Bank, Ltd.Loan amount: ¥ 10 billionReceived rating of BBB by MSCI ESG Ratings38(Practical Example 1) The Positive Impact Finance(cid:1) Took out a loan that was in compliance with the Principle for Positive Impact Finance*1 from Mizuho Bank, Ltd.(cid:1) Obtained a third-party opinion*2 from Japan Credit Rating Agency, Ltd. (JCR).Overview of LoanThe Company received recognition for the following efforts and initiatives :ImpactKPISDGsLoan Amount¥ 10 billionLenderMizuho Bank, Ltd.Loan Period10 yearsResidenceResource efficiency/safety/energyUse of LoanLong-term operating fundsClimate/atmosphereSales of single-family home related businesses(Provide highly convenient homes at affordable prices)Use of high-performance thermal insulatorReduction rate of greenhouse gas emissionsPromotion of tree-plantingIssue DateFebruary 28, 2022WasteInitiatives for promotion of waste recycling*1 Principle for Positive Impact FinanceA common financial framework to achieve the SDGs that was announced in 2017 by the Positive Impact Working Group, a group of UN Environment Finance Initiative (UNEP FI) banking and investment members.*2 Third-party opinionAn opinion on compliance with the Principle for Positive Impact Finance and the Basic concept of impact finance developed by the Impact Finance Task Force, which was established in accordance with Paragraph 2 (4) of the Guidelines for Establishment of the ESG Finance High-Level Panel of the Ministry of Environment.Holistic and sound economyInitiatives for women empowermentHealth and sanitationManufacturing and provision of products that have seismic resistance and durabilityEmployment/security for individuality and peopleBiodiversity and ecosystem servicesStopping harassmentPercentages of workers completing health checks and stress checksPromotion of the ONE TREE, MAKE A FOREST PROJECT39(Practical Example 2) MSCI ESG Ratings(cid:1) The Company became a new constituent in ESG indices.Characteristics of index- An ESG composite index, which employs themagnitude of environmental burden andevaluation of managementtoward climatechange risks, in addition to the FTSE Russell’sESG ratings.- The index is constructed by selecting companieswith a high gender diversity score, which iscalculated based on data disclosed in accordancewith the Act on Promotion of Women’sParticipation and Advancement in the Workplace.- Based on carbon emission data, the index increasesthe investment weight of companies in the sameindustry with high carbon efficiency, and those thatdisclose information on their greenhouse gas emissions.Number of constituents4943521,825(cid:1) Received rating of BBB by MSCI ESG RatingsAbout MSCI ESG RatingThe MSCI ESG Rating is a seven-point evaluation system ranging from the highest rank of AAA to thelowest rank of CCC, based on an analysis of the environmental, social and governance initiatives and riskmanagement capabilities of more than 8,500 companies worldwide.The Company’s rating trend～2020B2021BB2022BBB40(Practical Example 3) Regional Co-creation (B1 league Gunma Crane Thunders)(cid:1) Started CSR activity “CRANE THUNDERS ONGAESHI” (September 2021)(cid:1) Signed to Sports for Climate Action Framework (September 2021)Key Activities from February to April 2022ONGAESHI WOMEN AWARDS 2022- Recognizing women who thrive in local communities- Cooperating with local companies to promote women’s empowermentOrganizing a food drive- Collecting unopened food of households and donating them to food banks- Contributing to local community aid and reduction of food lossUsed book collection project-Carrying out a used book collection project at a Gunma Crane Thunders home game- Using the total funds raised for philanthropy41Social Issues around Housing Purchases House price growth of the major cities of the world accelerated Affordability continues to worsen. Rising condominium prices in central TokyoChanges in the average price for new condominiums in Tokyo’s 23 wards and average price for OHD’s single-family homes (built-for-sale house)UBS Global Real Estate Bubble IndexIndex scores for the housing markets of select cities, 2021 (Millions of yen)90VancouverSan FranciscoLos AngelesFrankfurtAmsterdamLondonTorontoNew YorkParisBostonStockholm MoscowWarsawMunichZurichDubaiGenèveMiamiMilanoMadridTel AvivBubble risk (>1.5)Overvalued (0.5 to 1.5)Fair valued (-0.5 to 0.5)Under valued (-1.5 to -0.5)Source: UBS Global Wealth Management CIO807060504030TokyoHong KongSydneySydneyAverage price for new condominiums in Tokyo’s 23 wards 85.7546.03Average price for OHD’s single-family homes (built-for-sale)2013201420152016201720182019202020212022Source: “Condominium Market Trend in Greater Tokyo Area” by the Real Estate Economic Institute Co., Ltd.Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes are for the Oct–Sep period.42Social Issues around Housing Purchases Double-income households account for 70% of the total Many of the houses are over 40 years old and obsoleteTrends in double-income households/households with full-time housewives (nationwide)Building stock of wooden single-family homes by construction period（10 thousand households)Double-income households(thousand homes)68.5%1,000600200Households with full-time housewivesOur service areasFukuoka CitySaitama cityNagoya cityKawasaki cityYokohama cityTokyo’s 23 ward579443646801362371,5001,0005000About 25% of existing wooden homes were built over 40 years ago.1,721111121183197434675198019851990199520002005201020152020Source: “White Paper on Gender Equality 2020”, Cabinet Office, Government of JapanLabor force survey, the Ministry of Internal Affairs and CommunicationsSources:“Housing and Land Survey in 2018” by the Ministry of Internal Affairs and CommunicationsBefore 19801981 or later(building age)43Contribution to SDGs through business activities01 Affordable housing supply in great locations02 Town development for younger 03 Compact wooden houses with low generationsenvironmental burdenPercentage of our single-family home buyers by age*Land price￥90millionLand priceLand priceLand price￥ 30million ￥ 30million ￥ 30millionTotal floor spaceTotal floor space50s and above10%40s26%20s16%30s48% Effective use of limited premises Total floor space secured by building three stories Comfortable living space even in a compact size realized by know-how and technical capabilities based on our experience Easy to change specifications to suit lifestyles, such as adding a workspace Older homes tend to be lived in by elderly residents 90% of purchasers are in their 20–40s. Contributing to revitalization of local communities Locations in central Tokyo close to stations contribute to the continued employment of women in dual-earner/child-rearing households* Ages of householders of our customers that contracted from January to December 2019. Thermal insulation performance equivalent to the highest grade 4 (Top Runner Standard) Providing comfortable living as well as contributing to decarbonization Resistance against disasters (earthquakes, fires, etc.) can be improved by rebuilding old houses Compared with large-scale development such as earthworks, the impact on nature from wooden construction in residential areas is minimal44To realize a sustainable society Identified key issues (materiality) based on the level of interest of stakeholders and the priorities to the Company.ESGKey IssuesInitiativesEnvironmentEnvironmental conservation Support for TCFD Established the Japan Wood Housing Association Open House ForestProduct safety and securityPromoting customer satisfaction Build and strengthen the system for promoting customer satisfactionSocialTalent developmentWork-style reforms Raising the starting salaries of new graduates Utilization of a diverse workforce Enhance productivity utilizing IT Support for using childcare facilities and support system for balancing work and child rearing Consultation desk to support women’s empowerment and work-life balanceSupply Chain Management Share sustainability guidelines with business partnersGovernanceCompliance Participation in the U.N. Global Compact Strengthening the audit system Invite female talent to join the board as an external director and a corporate auditor45Reference materialsThe population has been concentrating and number of households has been increasing in urban areasNet migration into urban citiesNumber of households in large cities(persons)100,00080,00060,00040,00020,0000-20,000-40,000-60,000-80,000-100,000(thousand households)2,5002,0001,5001,0005000Tokyo 23wardsYokohama CityKawasaki CityNagoya CityOsaka CitySaitama CityFukuoka City5,210(thousandhouseholds）5,0001,7534,0003,0002,0001,0001985198919931997200120052009201320172021（year）198519901995200020052010201502020（year）Source: MIC, “Report on Internal Migration in Japan based on Basic Resident Register” Source: MIC, “Population Census of Japan” 47Double-income households and child-rearing households are turning their eyes to urban areas, where they can reduce commuting timeTrends in double-income households/households with full-time housewives (nationwide)Changes in attitude toward work among women (nationwide)Double-income households1,24063.7Women should continue working even after having children（10 thousand households)1,114 1,000949 921 600614 200(%)706050403020100Households with full-time housewives571Women should stop work after having children and return to work when the children have grown upWomen should work until they have children19.7Women should work until they are marriedWomen should not have a job19801985199019952000200520102015202019921995200020022004200720092012201420162019Source: “White Paper on Gender Equality 2020”, Cabinet Office, Government of JapanLabor force survey, the Ministry of Internal Affairs and CommunicationsSource: “White Paper on Gender Equality 2020,” Cabinet Office, Government of Japan48The number of households in urban areas is expected to continue increasing, despite a total population decline in JapanFuture population and household estimates for JapanFuture household estimates for urban areas (index)（million people/million households）(Number of people per household)人口世帯数世帯人員PopulationHouseholdsNo. of people per household1241261211271281281271251231191151111173.4 3.2 3.0 2.8 2.7 2.6 2.5 2.4 2.3 2.3 2.2 2.2 2.2 474441383450525354545352511.0130125120115110105100955.04.03.02.00.014012010080604020NationwideTokyo 23 wardsYokohama CityKawasaki CityNagoya CitySaitama CityFukuoka City128 121 120 119 109 107 98 19801990200020102020203020402010201520202025203020352040Sources: 1980-2015︓“2015 Population Census”, Statistics Japan2015-2040︓” Population Projection for Japan, 2018 projection ”, “Household Projections for Japan , 2018 projection ”, the National Institute of Population and Social Security Research Number of people per household was calculated by dividing the total population by number of households.Sources: Numbers of households by city were projected with reference to “Household Projection for Japan (National Projection)” and “Population Projection for Japan by Prefectures” for 2018 projection, published by the National Institute of Population and Social Security Research, and were converted to indicators with actual results of 2010 set at 100. 49The pace of income recovery is faster for people in urban areas, showing promise for growth in spending power Household income and individual income(Tokyo’s 23 wards)Household income and individual income(nationwide)Household income 7,0006,753 7,264 Household income (¥ thousand)9,0007,065 4,413 8,0007,0006,0005,0004,0003,0002,0008,989 (¥ thousand)8,0004,965 4,0003,644 6,0005,0003,0002,000Individual incomeIndividual income3,512 2000200520102015202020002005201020152020Source: Annualized based on the actual monthly income of households (working families) with two-or-more person household, obtained from the report “Family Income and Expenditure Survey,” the Ministry of Internal Affairs and CommunicationsCalculated by diving taxable income by the number of taxpayers, based on data obtained from the report “Survey of Taxation of Municipal Inhabitant Taxes, etc.” by the Ministry of Internal Affairs and Communications50Single-family homes are attracting attention for their stable prices in contrast to condominiums, whose prices have increasedChanges in the average price for new condominiums in Tokyo’s 23 wards and average price for our single-family homes (built-for-sale)(¥ million)90807060504030Average price for new condominiums in Tokyo’s 23 wards 7,712 7,089 7,142 7,286 6,732 6,629 8,293 5,853 5,995 5,339 5,283 Average price for our single-family homes (built-for-sale)4,541 4,391 4,489 4,283 4,332 4,477 4,435 4,348 4,388 4,331 4,206 20112012201320142015201620172018201920202021Source: MLIT, “Monthly marketing report of lands”Fiscal years: Condominium prices are on a calendar-year basis. Prices for our homes are for the period October – September . Condominium prices for 2020 are for the January – December period. Prices of our homes for 2020 are for the October 2019- September 2020 period. 51Price gaps between condominiums and single-family homes have occurred due to the difference between construction costs and land costConstruction costs per ㎡ (in Tokyo)Land price by use (in Tokyo’s 23 wards)（¥ thousand / ㎡）CondminiumsSingle-family homes326298291318308304306350300250200150249226212213(index)14513512511510595CommercialResidential14114113911912312212012811310711511010710410310210010010099991741721711711731731731731741731702011201220132014201520162017201820192020202120112012201320142015201620172018201920202021Source: MLIT “Housing Starts”The average construction cost per ㎡ was calculated by dividing the estimated construction cost by the total floor area.Data for ready built wooden single-family homes were used for single-family homes and data for RC and SRC apartment buildings were used for condominiums.Source: MILT “Prefectural Land Price” The standard land price as of July 1 each year is determined by prefectural governors.The land price index of each year was calculated by using the rate of change from the land price by use in 2011, which was indexed to 100.52Options available for consumers are decreasing due to the increase in condominium prices and decrease in number of new condominiums suppliedNumber and average price of new condominiums supplied in Tokyo’s 23 wards(thousand units)Number of units supplied (left axis)Average price of units supplied (right axis)(¥ million)5040302010039.14 61.228.34 52.8320022003200420052006200720082009201020112012201320142015201620172018201920202021Source: MILT, “Monthly Report of Real Estate Market Trend”82.9313.3 90807060504053Contract ratios have been declining with the increase in prices of new condominiumsTrends of average prices of new condominiums andratios of the first month’s sales to total sales in Tokyo’s 23 wardsAverage prices (left axis/ ￥million)平均価格Percentage of the firs month’s sales to total sales (right/ percentage)初⽉契約率(¥million)11,0009,0007,0005,0003,000(%)90807060504030201 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 14 7 10 1201120122013201420152016201720182019202020212022Source: “Monthly Report of Real Estate Market Trend” published by Land General Information Library of the Ministry of Land, Infrastructure, Transport and Tourism. 54Prices of condominiums are less likely to fall sharply as the market is oligopolistic and dominated by major real estate companiesTrends in the market share of seven major real estate companies in new condominiums in the Tokyo metropolitan area46.3%33.4%50%45%40%35%30%25%20%15%10%5%0%19.8%24.7%20022003200420052006200720082009201020112012201320142015201620172018201920202021Source: The share of new condominium sales in the Tokyo Metropolitan area in “Condominium Market Trends” by Real Estate Economic Institute Co., Ltd. ＊Seven major real estate companies: Sumitomo Realty & Development, Daikyo, Tokyu Land, Tokyo Tatemono, Nomura Real Estate Holdings, Mitsui Fudosan, Mitsubishi Estate55The house price to income ratio has increased, with a significant difference between annual income of single-family home purchasers and condominium purchasers(multiple)8.07.57.06.56.05.55.0House price to income ratio and household income of single-family home purchasers (in Tokyo)House price to income ratio and household income of condominium purchasers (in Tokyo)(¥ thousand)(multiple)8.0(¥ thousand)7.87.7House price to income ratio年収倍率Household income世帯年収7.37.47.47.47.57.06.910,000House price to income ratio年収倍率Household income世帯年収7.57.57.57.26.96.66.66.76.56.68,934 6.56.38,390 8,357 8,448 8,395 8,240 8,0006.08,308 8,141 8,317 8,301 7.57.05.56,862 6,771 6,498 6,576 6,623 6,568 6,595 6,625 6,604 6,451 201120122013201420152016201720182019202020112012201320142015201620172018201920206,0005.0Source: “Customer Survey on Flat 35 Users” by Japan Housing Finance AgencyCompiled using data of housing loans approved from April through March of the following year Single-family homes: New home purchase funds (detached house, etc.); Condominiums: New condominium purchase funds (apartment buildings)Household income is the total of income of home loan applicants and income of his or her spouse or other person(s) living in the same householdHome price to income ratio is calculated based on the total necessary funds including funds on hand.10,0008,0006,00056Among the people who purchased condominiums, the percentage of people in their 50s has been on the rise whereas that of people in their 30s has been on the declineAge distribution of single-family home purchasers (in Tokyo)Age distribution of condominium purchasers (in Tokyo)100%3%6%5%7%6%8%6%9%5%7%5%9%6%8%5%9%5%8%26%25%28%28%28%28%28%28%28%6%11%27%4%8%26%60s or more50s40s30s20s7%7%9%7%8%9%8%6%8%10%11%12%12%13%15%12%13%13%26%26%27%29%28%27%28%28%24%40%53%50%49%48%49%46%46%45%45%43%51%47%46%44%43%42%39%40%41%39%80%60%20%0%11%13%10%10%10%12%13%13%13%14%10%10%10%9%8%9%11%12%11%16%20112012201320142015201620172018201920202011201220132014201520162017201820192020Source︓ Japan Housing Finance AgencyCompiled using data of housing loans approved from April through March of the following year.Single-family homes: New home purchase funds (detached house, etc.); condominiums: new condominium purchase funds (apartment buildings)57Open House has been steadily acquiring shares in the single-family homes market in urban areas by adopting a dominant strategyThe number of new single-family housing starts in our service areasThe Group’s market share by service area(thousand unites)2523.2Tokyo 23 wardsYokohama citySaitama cityFukuoka cityKawasaki cityNagoya cityTokyo Metropolitan area18.115.37.96.13.53.610.910.211.88.46.44.43.57.25.43.43.219.716.218.718.618.018.118.817.615.115.215.114.214.812.116.111.37.67.55.63.53.06.13.62.910.410.76.55.27.25.43.43.611.37.35.93.82.93.02.820%15%10%2017.51513.06.28.04.13.410503.4%3.6%5%2.6%2.8%0%Tokyo 23 wardsKawasaki cityYokohama cityNagoya citySaitama cityTokyo Metropolitan area21.4%19.2%13.0%12.3%13.0%13.3%11.4%10.5%10.3%9.7%12.0%10.3%8.7%7.9% 7.6%9.0%8.1%8.6% 8.4%5.7%7.2%5.6%4.5%2.9%6.9%6.0%3.1%3.5%4.0%2.6% 2.6%0.5%0.3%0.6%0.2%0.7%2.7%201320142015201620172018201920202021FY2013FY2014FY2015FY2016FY20170.0%FY2018FY2019FY2020FY2021Sources: “Construction Statistics”, “Housing Starts”, the Ministry of Land, Infrastructure, Transport and Tourism.Calculated by dividing number of properties delivered in each period of the Group by the number of construction starts by area in each year. Until FY2018: Only Open House Development is includedFrom FY2019: Hawk One is included.FY2021 figures are estimates divided by the number of housing starts by area in 2020 due to the period for statistical.58Housing stock that can be used as land for development is available in large volumesBuilding stock of wooden single-family homes by construction periodHousing situation in Japan(thousand homes)Our service areasFukuoka CitySaitama cityNagoya cityKawasaki cityYokohama cityTokyo’s 23 ward44579364680136237About 25% of existing wooden homes were built over 40 years ago.1,5001,00050001,721111121183197434675 The average age of homes rebuilt in Japan is37.0 years. *1 The average site area per single-family home lot in Tokyo’s 23 wards in 1988 was 40.3 tsubo (1,431.6 sq. ft). *2 The average site area of single-family homes developed by Open House is 17-18 tsubo (600-640 sq. ft), enabling it to build two homes per single-family home lot.Before 19801981 or laterSources:“Housing and Land Survey in 2018” by the Ministry of Internal Affairs and CommunicationsSources:*1 “Customer Survey Report on the Purchase of Detached Houses in the Fiscal Year 2017” by Japan Federation of Housing Organizations*2 “Housing and Land Survey in 1988” by the Ministry of Internal Affairs and Communications59Outstanding loans have been increasing although new loans financed to the real estate industry have declined slightly（¥ trillion）New loans financed to the real estate industry 9.9 9.2 10.2 8.3 6.8 8.4 7.0 7.7 7.7 8.2 9.6 10.1 10.7 12.7 12.3 11.6 11.6 11.0 11.1 2003200420052006200720082009201020112012201320142015201620172018201920202021Outstanding loans financed to the real estate industry and year-on-year change thereofOutstanding loans (right axis / ¥ trillion)Year-on-year change of loan balance (left axis / %)（¥ trillion）914.1％9080706050401412108642025%20%15%10%5%0%-5%-10%3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 122003200420052006200720082009201020112012201320142015201620172018201920202021Source: “Loans by borrower” published by the Bank of Japan60The ratio of outstanding loans financed to the real estate industry to total loans has increasedRatio of outstanding loans financed to real estate industry to total loans16.7%14.6%14.7%3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 122003200420052006200720082009201020112012201320142015201620172018201920202021Source: “Loans by borrower” published by the Bank of Japan(％ points)Lending Attitude of Financial institutions (Diffusion index of “Accommodative” – “Severe”)(%)17%16%15%14%13%12%11%50403020100-10-20-30-403 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 122003200420052006200720082009201020112012201320142015201620172018201920202021Source: “Short-Term Economic Survey of Enterprises in Japan” published by the Bank of Japan61系列1系列2系列3Demand for property resale transactions is strong as shown by an increase in rent price and a decline in returns from property resale transactions(Yen per tsubo)Trends of office rentals and vacancy ratios in TokyoAverage vacancy ratio (%)Average rent price (yen per tsubo)1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 1 4 7 10 120052006200720082009201020112012201320142015201620172018201920202021 2022Source: MIKI OFFICE REPORT TOKYOEarnings yields (%) of property resale deals 系列1系列7系列9系列11系列2系列3(%)108642025,00020,00015,00010,0005,0000(%)765431041041041041041041041041041041041041041041041041020052006200720082009201020112012201320142015201620172018201920202021Source: Japan Real Estate Institute, “The Japanese Real Estate Investor Survey”62Independent companies have been maintaining stronger financial health than zaibatsu groupsZaibatsu groupIndependent companiesCapital adequacy ratiosCapital adequacy ratios50%40%30%20%10%0%210(multiple)3200320042005200620072008200920102011201220132014201520162017201820192020Note: “Zaibatsu” means a financial conglomerateNet debt-equity ratios and long-term interest ratesNet debt-equity ratios and long-term interest ratesZaibatsu group(left axis)Independent companies (left axis)Long-term interest rates (10-year JGB) (right axis)200320042005200620072008200920102011201220132014201520162017201820192020Companies surveyed: Seven real estate companies of zaibatsu groups, and 25 independent companies which are listed on the real estate industry of the Tokyo Stock Exchange and hold total assets of ￥100 billion or aboveLong-term interest rates: Actuals as of March 31 of every year, Net debt-equity ratio: (Borrowing+ Corporate bonds- Cash/deposits) / Net assets Source: Weighted average numbers calculated based on the actual figures reported in companies’ annual security reports 38.9%30.0%3.02.01.00.0-1.01.630.4763https://openhouse-group.co.jp/ir/en/This document contains forward-looking statements concerning future business performance. These statements include company forecasts based on 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 reliability of such information.This document is provided for informational purposes only. It does not constitute a solicitation to invest.――Disclaimer ――