Financial Highlights of FY 2020/3 up to the 3rd Quarter
Pressance Corporation Co., Ltd.

Released in February 2020

JPX Section Code: 3254.T• JPX Nikkei Index 400 component• JPX Nikkei Mid and Small Cap Indexcomponent

Consolidated Income Statement Summary• Sales and operating profit up to the third quarter of FY 2020/3 increased respectively by 32.1% and by 18.3% YoY• Earnings: Progressed as planned at the beginning of this fiscal year
• Dividends: Expected to be in line with the forecast at the beginning of this fiscal year, 26 yen/share at end of the fiscal year
and 52 yen/share for full year (DPS increases by 11.5 yen annually from the previous fiscal year)*On a cumulative andconsolidated basis

FY'18/3 3Q
Results
Ratio to(million yen)sales

FY'19/3 3Q
Results
Ratio to(million yen)
sales

FY'20/3 3Q
Results
Ratio to(million yen)sales

YoY(%)

A

FY'20/3 Annual Forecast
Forecasts
Ratio
Progress(million yen) to sales
RateA/B

B

101,024 100.0% 138,987 100.0% 183,588 100.0% 132.1% 209,219 100.0%

87.7%

Cost of Sales

73,692

72.9%99,618

71.7% 136,241

Gross Profit

27,33127.1%

39,36828.3%

47,346

SG&A Expenses

10,44010.3%

12,526

9.0%

Operating Profit

16,891

16.7%

26,842

Ordinary Profit

16,557

16.4%

Net Income

11,247

11.1%

Sales

Attributable to O wne rs of Pare nt

74.2% 136.8% 154,940

74.1%

87.9%

25.8% 120.3%

54,278

25.9%

87.2%

15,582

8.5% 124.4%

21,746

10.4%

71.7%

19.3%

31,763

17.3% 118.3%

32,531

15.5%

97.6%

26,44719.0%

31,274

17.0% 118.3%

31,429

15.0%

99.5%

17,93312.9%

21,041

11.5% 117.3%

21,520

10.3%

97.8%

• Year-on-Year change:• 3Q FY2019/3: Legend Biwako, our largest-scale condo (486 units), contributed to a significant increase in sales.
• 3Q FY2020/3: Sales further increased substantially due to an expansion of studio condo sales (up 44,600 million yen)
• Gross profit rate declined by 2.5 points due to a rise in the cost of sales and changes in product mix• Operating profit up by 4,921 million yen: An increase in gross profit of 7,977 million yen surpassed the increase in SG&Aexpenses of 3,056 million yen that preceded sales such as advertising, real estate technology related and personnel expenses.
• Progress on annual plan: • Sales concentrated up to 3Q (87.7% progress), restraining SG&A expenses. The progress rate of profit ateach stage is higher than that of sales.
1Sales by Core Products in the Condominium Sales Business
FY'18/3 3Q
Results
No. of units
Core Products

Units

FY'19/3 3Q
Results
AmountYoY(%)

Millionyen

No. of units

YoY(%)Units

YoY(%)

FY'20/3 3Q
Results
AmountMillionyenNo. of units

YoY(%)Units

YoY(%)

FY'20/3
Annual Forecast
AmountMillion yen
AAmount

YoY(%)

Million yenB

Progress rate(%)

A/B

Studio Condos

1,651 115.1% 28,350 114.3% 1,883 114.1%

34,202 120.6% 2,568 136.4%

50,679 148.2%

70,901

71.5%

Family Type
CondosCondo Building

1,293 125.4% 45,177 133.4% 1,839 142.2%

68,933 152.6% 1,907 103.7%

71,221 103.3%

74,75795.3%

1,086 145.6% 17,073 173.4%

10,872

22,147 203.7%

24,715

89.6%

19,292 109.5%

18,292105.5%

4,213 131.2% 93,345 136.2% 5,467 129.8% 131,634 141.0% 6,446 117.9% 163,340 124.1% 188,666

86.6%

Sales *
Hotel SalesTotal⚫

183

NA2,74470.4%

980 535.5%

63.7% 1,178 154.0%

17,625 642.3%

793

80.9%

Year-on-Year change: Sales increased due to continued brisk dealings; up by 979 units (17.9% up), with the amount up by 31,706
million yen (24.1% up)• Studio Condo:
Up by 685 units (36.4% up), with sales up by 16,476 million yen (48.2% up)• Family-type condo:
Up by 68 units, with sales up by 2,287 million yen (exceeding the result of 3Q FY2019/3, whichsignificantly increased from 3Q FY2018/3)• Condominium building Sales:• Hotel Sales:

⚫

NA765

Up by 413 units (54.0% up), with sales up by 11,275 million yen (103.7% up)
Six properties delivered by the end of the 3rd quarter FY2020/3. Sales: Up by 1,666 million yen

Progress on annual plan: Sales made good progress up to 3Q, achieving 86.6% of the annual sales plan.
• Properties have been successfully delivered as planned.
• Progress has been made successfully on studio condos as planned up to 3Q.
* Condominium building sales: Wholesaling a whole or part of a condo building to other condominium retail dealer2Consolidated Balance Sheet Summary(million yen)

Current Assets
Real estate for sale
Real estate for sale in process
Non-current Assets
Total Assets

As of March 31, 2018
Results
Composition
ratio(million yen)
92.6%
227,161
4.6%
11,275
73.5%
180,461
7.4%
18,237100.0%
245,399

As of March 31, 2019
Results
Composition
ratio(million yen)
92.9%
280,591
3.2%
9,603
74.6%
225,302
7.1%
21,350100.0%
301,942

As of December 31, 2019
Results
Composition
Changeratio(million yen)(million yen)
93.4%
288,316
7,724
4.4%
13,677
4,073
73.8%
227,733
2,431
6.6%
20,238▲ 1,111100.0%
308,555
6,612

Current Liabilities
Short-term liabilities with interest
Non-current Liabilities
Long-term liabilities with interest
Total Liabilities
Total Net Assets
Total Liabilities and Net Assets

67,53740,473
102,689
102,021
170,226
75,172
245,399

82,91654,467
124,407
123,619
207,323
94,618301,942

79,49956,429113,220
112,372192,720
115,834
308,555

00

27.5%
16.5%
41.8%
41.6%
69.4%
30.6%
100.0%

00

27.5%
18.0%
41.2%
40.9%
68.7%
31.3%
100.0%

000

25.8%▲ 3,416
18.3%
1,962
36.7% ▲ 11,186
36.4% ▲ 11,246
62.5% ▲ 14,602
37.5%
21,215100.0%
6,612

Major factors of change: Changes from the end of March 2019
• Current Assets:
Real estate for sale up by 4,073 million yen, Real estate for sale in process up by 2,431 million yen• Non-current Assets: Real estate for rent (net) down by 2,065 million yen (new holdings: 1 property; transferred to Realestate for sale: 4 properties)• Liabilities:
Bank loans payable down by 5,784 million yen, and advances received down by 4,488 million yen
due to an increase in delivered properties.
Accounts payable (including electronically recorded obligations) down by 2,430 million yen, bonds
with share acquisition rights (exercise of rights) down by 3,500 million yen• Total Net Assets:
Recorded net income of 21,041 million yen* As for inventory in the red frame in the matrix above, refer to the next page for details.
3Land Inventory as of December 31, 2019
Breakdown of the numbers in the red frameon the previous page
Real Estate for Sale
Land Costs in the Condominium Biz A
Other Land Costs
Construction Costs
Real Estate for Sale in Process
Land Costs in the Condominium Biz B
Other Land Costs
Construction Costs
Core Products
Land Costs in the Condominium Biz A + B
Studio Condominiums
Family-type Condominiums
Condominium Building Sales
Hotel Sales

Amounts(million yen)

13,677
3,709
441
9,525
227,733
159,359
21,501
46,871
Amounts(million yen)

Land inventories in the condo business(million yen)
161,954 167,791

174,517

163,069

134,210 141,727

'18/9

Units

'18/12

'19/3

'19/6

'19/9

'19/12

Volume of procured land associated with sales plans

163,069 24,903
61,459 12,367 Equivalent to the sales volume for more than next 2 years
74,649 7,370 Equivalent to the sales volume for more than next 2 years
19,840 4,307 Equivalent to the sales volume for more than next 2 years－7,119859✓ Land inventory includes the lands procured and registered as the company properties.
(In addition to the numbers above, there are 15 buildings with 1,075 units for which land sales contracts have been completed but
payment has not been settled. Of these, Studio condos 1,008 units, Family-type condos 67 units.)✓ The sum of land costs in the condominium business (included in total inventory) of A + B of 163,069 million yen is obtained byaggregating real estate for sale (13,677 million yen) and real estate for sale in process (227,733 million yen) recorded in thebalance sheet for 3Q FY 2020/3, minus other land costs (441 million yen + 21,501 million yen = 21,943 million yen) andconstruction costs (9,525 million yen + 46,871 million yen = 56,397 million yen).
* Other Land Costs include acquisition-related costs for planned company-owned hotels, land scheduled for sale and house sales.
4Outstanding Contracts & Prospects for Achievement of Condo Sales Plan FY 2020/3 (as of Dec. 31, 2019)
Outstanding Balance of Contracts as of December 31, 2019
Total Outstanding
Balance of contracts

Breakdown by delivery timing
During FY'20/3
FY'21/3 or later

A + B

Scheduled Delivery A Scheduled Delivery B
Units
Units
AmountAmountUnits

Amount(million yen)StudioFamily-type
Condo Bldg. Sales
Hotel Sales(million yen)

1,868
1,827
1,863
570

34,60966,502
29,524
13,856937
130200-17,473931
4,685 1,697
2,650 1,663
570

17,136
61,817
26,873
13,856

63

7,772

43

5,549

2,223

Other Types of Housing and Other
Real Estate

Total(million yen)

6,191 152,265 1,31020

30,358 4,881 121,906

Progress on Annual Sales Plan FY'20/3
Sales Resultsin 3Q, FY'20/3

Units

StudioFamily-type
Condo Bldg. Sales
Hotel Sales
Other Types of Housing andOther Real Estate

TotalCAmounts(million yen)Orders Scheduledfor Delivery and toBe Posted as Sales
within FY'20/3 AUnitsAmounts

As of end of the 3rd quarter of FY 2020/3(December 31, 2019),
the sum of 3Q sales results and received
orders to be posted as sales during FY 2020/3
has already achieved

103.5%of the annual sales forecast.
Outstanding orders: The sum of property
contract proceeds in the following status.
• Buildings under construction and yet to bedelivered• Completed sales contracts• Uncompleted transfer of property(before buyers’ registration)
Normally, outstanding orders are transferred tosales when properties are completed anddelivered to customers.

(million yen)

Sales Results & Sales
to Be Posted as of theend of 3Q FY'20/3
D=C+A
Units
Amounts(million yen)

Progress to Annual Sales Plan
as of the end of 3Q FY20'/3

Amount(million yen)
EE
Progress rate(%)
D/E

50,679 ＋
71,221
22,147
19,292937
130200-17,473 ＝
4,685
2,650-

3,505
2,037
1,378
793

68,15275,906
24,79819,292

14,050

43

5,549

202

19,59912,035

96.1%
101.5%
100.3%
105.5%
162.8%

6,605 177,391

1,310

30,358

7,915

207,750

200,702103.5%

2,568
1,907
1,178
793
159

÷

70,90174,757
24,715
18,292

5Average condominium price (Comparison of the Tokyo Metropolitan Area and Kinki Area Markets)

Tokyo’s wards(Tokyo metropolitan area)

Tokyo metropolitan
area average

Average market prices by area

Market unit price/m2 by area

(million yen)(thousand yen)

70.89

71.42

72.86

59.08

58.71

59.80

1,138
1,083

859

Kinki area average

38.3638.44

38.66

Osaka City

35.66

35.52

36.79

2017

2018

2019725630

2017869772

1,123879805

65968020182019• Price trends in the Kinki area:
Both the average price and unit price/m2 are estimated to remain within the range of actual demand.
• Average monthly contract closing rate in Kinki area is 74.1%:
Exceeding the boom-or-bust threshold of 70%, with continued strong demand.
Source: “Tokyo Metropolitan Area Condominium Market Trends” and “'Trends in the Condominium Market in the Kinki Area” - Summaryof 2019 - published by Real Estate Economic Institute Co., Ltd., on January 22, 2020.
Note) • Figures do not include studio condos for the Tokyo metropolitan area, but include those for the Kinki area.
• Amount shows the sales price including consumption tax• Data for the Tokai and Chukyo areas has not been published (as of the end of January 2020).

6

Pressance Corporation Co., Ltd.

(Note) Prospective numbers listed in the earnings outlook and other materials are based on information
available at the time of disclosure and largely contain uncertain factors. The actual results may bedifferent depending on changes in business.

<For inquiries, contact>
IR Section of Business Planning Dept.,
Pressance Corporation
TEL: 06-4793-1650 (main)
FAX: 06-4793-1651
E-mail: psc@pressance.co.jp