Financial Highlights of FY 2019/3 up to the 2nd Quarter

Pressance Corporation Co., Ltd.
Released in November 2018

JPX Section Code: 3254.T• “JPX Nikkei Index 400” component• “JPX Nikkei Mid and Small Cap Index”
componentConsolidated Income Statement Summary
 Sales increased by 83.2%, operating profit by 134.6% year on year With strong sales, results are steadily in line with forecasts. Compared to the same period last fiscal year,

both sales and profits have increased significantly【millions of yen】

Sales
Cost of Goods Sold
Gross Margin
SG&A expenses
Operating Profit
Ordinary Profit
Net Income
Attributable to share holde rs
of pare nt company

FY 2017/March2Q
Ratio
Amounts
to salesFY 2018/March2Q
Ratio
Amounts
to sales

61,498 100.0%
43,663 71.0%
17,834 29.0%
9.5%
5,836
11,997 19.5%
11,910 19.4%

66,241 100.0% 121,350 100.0% 183.2%
48,127 72.7% 86,788 71.5% 180.3%
18,114 27.3% 34,562 28.5% 190.8%
7.2% 123.3%
7,126 10.8%
8,784
10,987 16.6% 25,777 21.2% 234.6%
10,726 16.2% 25,583 21.1% 238.5%

152,471 100.0%110,820 72.7%
41,650 27.3%
17,108 11.2%
24,541 16.1%
23,661 15.5%

8,059

7,239

16,132Year-on-Year change:

Progression on annual plan:

13.1%

10.9%

FY 2019/March
2QRatio
YoYAmountsAto sales （％）

17,402

14.3% 240.4%

FY 2019/March
Forecast (Full year) Progression
RateRatio
AnnualA/B
Forecast B
to sales

10.6%

79.6%
78.3%
83.0%
51.3%
105.0%
108.1%
107.9%• Sales increased 55,108 million yen, and the COGS ratio reduced by 1.2 points due to thedifferences in the product mix ratio• Gross margin increased 16,448 million yen, covering increase in SG&A expenses (mainly salescommission and payroll cost) of 1,658 million yen, and operating profit resulted in a substantial
increase of 14,789 million yen
Progression rate on annual sales plan 79.6 %, annual operating profit plan 105.0 %,annual net income plan 107.9 % Large portion of annual sales posted in 1st /2nd Q while SG&A expenses are periodicallyallocated, achieving high progression rate on annual profit plan1

Sales by Main Products in Condominium Sales Business
FY 2017/March
2 Q Results
No. of units
unit

YoY（％）FY 2018/March
2 Q Results

AmountMillion Yen

YoY（％）

No. of units
unit

AmountYoY（％）

Million Yen

FY2019/MarchAnnualForecast

FY 2019/March
2 Q Results
No. of units

YoY
（％）

unit

AmountYoY（％）

Million Yen

AProgression
Rateon
AnnualForecast

AmountYoY（％）

million yen(%)

B

A/B

Studio Condo

1,361

121.6% 23,633

132.0% 1,300

95.5% 22,330

94.5% 1,638

126.0%

29,780133.4%

41,951

71.0%

Family TypeCondo
Condo Building
Sales ※

832

67.3% 27,01670.1%

680

81.7% 23,889

88.4% 1,639

241.0%

61,985259.5%

74,02783.7%

565

244.6%

7,540

262.0%

823

145.7% 13,378

177.4%

503

61.1%

7,392

55.3%

13,083

56.5%

1,053

NA980

1361.1%

17,6251673.4%

15,429114.2%

192.5% 144,492

80.8%

72

Hotel Sales
Total

2,758

106.6% 58,189

98.1% 2,875

NA

104.2% 60,651

104.2% 4,760

165.6% 116,784

Year-on-Year change: Increase due to strong sales; Units: +1,885, amount: +56,133 million yen• Studio condo: Increased by 338 units and 7,450 million yen in sales (Pressance Itachibori Park City total 148 units and others)• Family-type condo: Increased significantly by 959 units and 38,096 million yen in sales (Legend Biwako total 486 units and others)• Condominium building sales: Decreased compared to FY2018/3, but as planned. Number of units -320, sales -5,986 million yen• Hotel sales: One property delivered as of 2nd Q FY2018/3 ⇒ Seven properties as of 2nd Q FY2019/3. Sales +16,572 million yen
Progression on annual sales plan: Soundly progressed as planned that large portion of sales and profits is posted in 1st and 2nd Q• Studio & Family-type condo: As planned, large number of properties has been successfully delivered• Condominium building sales: Sales are posted as planned• Hotel sales: Sales expansion from this fiscal year progressing steadily. This term’s sales plan has been completed. One delivery planned
for the following fiscal year was sold ahead of schedule.
※ Condominium building sales : Wholesaling a whole or part of condo building to other condominium retail dealer.
2Changes in Results and Forecasts by Each Quarter (Sales) FY2019/Mar.: good progress, large sales amount had been posted during the 1st and 2nd Q as planned
 FY2018/Mar.: sales were evenly posted in each quarter(1) Cumulative sales of each quarter, comparing
FY2019/Mar. with FY2018/Mar.

(2) Sales proportion in each quarter

Cumulative Sales FY2018/3 results
Cumulative Sales FY2019/3 results & plans

150,000

152,471（million yen）

134,059

134,05924.6%

121,350
101,024

4Q

81,514

100,000

26.1%
2Q results

26.0%

2Q

50,00022.7%

1Q

35,799plan2Ｑ20.4%
3Q+4Q plan

3Q

66,241

1Ｑ

152,471(Annual Forecast)(million yen)

3Ｑ

4Ｑ

53.5%
1Q results

26.7%
0

FY2018/3
Results

FY2019/3
Results & Plans* Condominium sales are posted when condos are constructed and delivered to customers. It may be unevenly posted due to timing ofland acquisition, development plan and/or construction period.

3

Consolidated Balance Sheet Summary
As of March 31, 2017
Results(million yen)

As of March 31, 2018
Component
ratio

Component
ratio

Change(million yen)

227,161

92.6%

242,193

92.6%

15,031

7.7%

11,275

4.6%

17,737

6.8%

6,461

122,17465.9%

180,46173.5%

169,961

65.0%(10,500)

Non-current Assets

13,497

7.3%

18,237

7.4%

19,407

7.4%

1,169

Total Assets

185,307100.0%

245,399

100.0%

261,600

100.0%

16,201

Current Liabilities

49,43826.7%

67,53727.5%

56,567

21.6%(10,969)

25,41013.7%

40,473

16.5%

33,78912.9%(6,683)76,25341.1%

102,68941.8%

110,357

42.2%

7,667

75,69140.8%

102,02141.6%

109,629

41.9%

7,607

Total Liabilities

125,69167.8%

170,226

69.4%

166,924

63.8%(3,301)

Total Net Assets

59,61532.2%

75,172

30.6%

94,67536.2%

19,503

Total Liabilities and Net Assets

185,307100.0%

245,399

100.0%

261,600

100.0%

16,201real estate for salereal estate for sale in process

short-term liabilities with interest

Non-current Liabilities
long-term liabilities with interest

171,81092.7%

14,324As of September 30, 2018
Results(million yen)

Current Assets

Component
ratio

Results(million yen)

Changes from the end of March 2018
 Current Assets:
Real estate for sale in process +10,500 million yen (due to the large increase in delivered properties),
Real estate for sale +6,461 million yen
 Non-current Assets: Condo property for rent purpose (net amount) +409 million yen (new holdings: +3 buildings, transfer to real estate
for sale: -2 buildings)
 Liabilities:
Accounts payable (including electronically recorded obligations) -3,286 million yen, income taxes payable +4,306
million yen, owing to banks +3,824 million yen, advances received -6,035 million yen (due to increase in deliveredproperties), bonds with share acquisition rights (exercise of rights) -2,900 million yen Total Net Assets:
Net income +17,402 million yen With the adoption and application of the Partial Amendment to Accounting Standard for Tax Effect Accounting from the first three months of the fiscal year,Current Assets and Non-current Assets as of the previous fiscal year end above are retroactively adjusted.
* Please check the next page about the details for real-estate related inventory in current assets (numbers in red frame in the matrix).

4Land Inventory as of September 30,2018
Breakdown of the number in red frameon the previous page
Real Estate for Sale

Amount(million yen)

Land Cost for Condominium biz A

4,265
1,116
12,356

Other Land Cost
Construction Cost

Real Estate for Sale in Process
Land Cost for Condominium biz B
Other Land Cost
Construction Cost

Land Cost for Condo biz

A + B

Studio Condominium
Family-Type Condominium
Condominium building Sales
Hotel Sales

17,737

Land inventories of condo business(million yen)

78,861

89,182102,055 106,172

116,662 119,255

134,210

169,961
129,945
15,90324,113'17/3

Amount(million yen)Units134,21021,04743,33766,967
13,421
10,485

9,159
7,312
3,116
1,460

'17/6

'17/9

'17/12

'18/3

'18/6

'18/9

Volume of procured lands compared with sales plans

Equivalent to the sales volume for about next 3 years
Equivalent to the sales volume for about next 3 years
Procured the lands for scheduled delivery up to March 2021
Procured the lands for scheduled delivery up to March 2021

 Land inventory includes the lands procured and registered as the company properties.
 (In addition to the numbers above, other inventories whose sales contracts are completed but payment have not been settled are 60 buildings
with 5,233 units. Of these, Studio condos 3,441 units, Family-type condos 1,792 units.)
 A + B Land cost for condominium biz (a part of inventory),134,210 million yen, is the total of real estate for sale (17,737 million yen) andreal estate for sale in process (169,961 million yen) that appear in the balance sheet in the financial statements as of September 30,2018 lessother land cost (1,116+15,903=17,019 million yen) and construction cost (12,356+24,113=36,469 million yen).
* Other Land Cost includes acquisition-related costs for used real estates biz and house sales.

5Outstanding Contracts & Prospects for Achievement of Condo Sales Plan FY ‘19/3 (as of Sep. 30, ‘18)
■ Outstanding Balance of Contracts as of September 30, 2018

StudioFamily-type
Condo Bldg. Sales
Hotel Sales
Total

Total Outstanding
Balance of contracts
A+B
Units
Amount(¥ million)
1,439
27,891
1,441
52,385
1,448
20,385694
19,080
5,022
119,742

Breakdown by delivery timing
During FY 2019/3
FY 2020/3 or later
Scheduled Delivery A Scheduled Delivery B
Units
AmountUnitsAmount(¥ million)(¥ million)
614
11,271
825
16,620281
9,787 1,160
42,597376
5,053 1,072
15,331
00
694
19,0801,271
26,112 3,751
93,630

UnitsAmounts(¥million)

98.9%of the annual sales plan
Outstanding Orders: Total amount of thefollowing items:• Under construction• Completed sales contracts• Undelivered property

Outstanding order transfers to sales whenproperties are delivered to customers.

■Progress on Sales Plan FY2019/3
Sales in 2Q,FY2019/3
CCondominium Sales Business
As of the end of the 2nd Q of this term(September 30, 2018), the combined
amount of sales results and sales to beposted during this fiscal year achieved

During FY 2019/3
Scheduled Delivery
A
Units

Outstanding Orders
Firm Scheduled Delivery
D=C+AAmounts(¥million)

UnitsAmounts(¥million)

Progress to
Annual Sales PlanE
Annual Plan Secured Sales(¥million)
Rate (%)
E
D/E
41,951
97.9%

Studio1,638

29,780 ＋614

11,271 ＝

2,252

41,052 ÷

Family-type

1,639

61,985

281

9,787

1,920

71,772

74,027

Condo Bldg. Sales

503

7,392

376

5,053

879

12,446

13,083

Hotel Sales980

17,62500980

17,625

15,4294,760 116,784

1,271

26,112

6,031

142,897

144,492

Total

97.0%
95.1%
114.2%
98.9%
6

Secured Sales Rate on annual sales plan in condominium sales business (as of the first day of each quarter) As of October 1st 2018, secured sales rate on annual sales plan is 98.9% (condominium sales business) Due to sound sales, secured sales rates of FY2019/03 are at a higher level than the past two fiscal years

Trends for “Current term secured sales rate in condominium sales business (line graph, %)” on 1st day of each quarter“Balance of orders for sales in and after next fiscal year (stacked bar chart, million yen)” on last day of each quarter
StudioFamily
FY '17/3

77.9%

88.1%

60%

65.3%

14,53013,661
27,25620%

Previous
FY

98.4%

250,000

150,000

100,000

19,08015,33150,00042,597
16,6200

2,991

1Q(million yen)

200,000

90.2%¥93,630 mil¥58,440 mil

40%

99.2%

98.2%

78.9%

70.8%

Hotel
FY '19/3

98.9%

93.1%

100%

80%

Building sales
FY '18/3

2Q

3Q

4QFollowing
FYSales Results to 2nd Q + Outstanding balance of orders planned to deliver in FY2019/Mar. (as of end of 2nd Q)* Secured sales rate =Annual Sales Plan (Net Sales)7Topic of Hotel Business9 hotels delivered, 10 hotels under development, 1 company-owned hotel, 1 renovating hotel = 21 hotels in total
Hotel operating pattern * Patterns may be changed due to changes of plans in terms of the number of units and/or completion schedule
A: To be sold to hotel business companies (with specific sales destinations/candidates)
19 properties
B: To be owned by Pressance, and its operation will be outsourced to a hotel operating company 2 properties
Address

Operating pattern

FY 2018 endedin March

1 Osaka-city, Naniwa-ku, Inari

Delivered Apr. '17

JR Namba

2 Osaka-city, Naniwa-ku, Motomachi

Delivered Oct. '17

JR Namba

FY 2019
ending inMarch

1 Osaka-city, Chuo-ku, Minamisemba
2 Osaka-city, Chuo-ku, Hiranomachi

Delivered Apr. '18

Shinsaibashi on Subway Midosuji Line

Delivered Apr. '18

Kitahama on Subway Sakaisuji Line

3 Osaka-city, Yodogawa-ku, Nishimiyahara
4 Osaka-city, Naniwa-ku, Shikitsuhigashi

Delivered Jul. '18

JR Shin-Osaka

Delivered Jul. '18

Daikokucho on Subway Midosuji Line

5 Kyoto-city, Nakagyo-ku, Tenjinyamacho
6 Kyoto-city, Shimogyo-ku, Gojo-Omiyadori

Delivered Sep. '18

Shijo on Subway Karasuma Line

Delivered Sep. '18

Ohmiya on Hankyu Kyoto Line

7 Kyoto-city, Higashiyama-ku, Yasakadori
8 Kobe-city, Chuo-ku, Gokodori

B(delivery FY '20)

Kiyomizugojo on Keihan Line

Delivered Sep. '18

JR S annomiya

1 Akita-city, Nakadori 3chome *2 Hiroshima-city, Naka-ku, NoborichoB(delivery FY '21)

Akita on Akita-Shinkansen, JR Uetsu-honsen

FY 2020
ending inMarchFY 2021
ending inMarch

Closest Railway Station

A

Ebisucho on Hiroshima Dentetsu

3 Osaka-city, Chuo-ku, Minamihonmachi
4 Kyoto-city, Shimogyo-ku, Aburanokojidori

A

Hommachi on Subway Midosuji LineA

Gojo on Subway Karasuma Line

5 Fukuoka-city, Hakata-ku, Kamikawabatamachi
6 Kyoto-city, Minami-ku, Nishikujozaocho

A

Nakasukawabata on Subway Hakozaki LineA

JR Kyoto

7 Kyoto-city, Nakagyo-ku, Oicho

A

Marutamachi on Subway Karasuma Line

1 Yokohama-city, Naka-ku, Onoecho
2 Naha-city, Nishi 2chomeAJR Kannai

A

Asahibashi on Yui Rail

3 Osaka-city, Naniwa-ku, Motomachi 2chome
4 Osaka-city, Chuo-ku, Sennichimae

AJR Namba

A

Subway Midosuji/Nankai Line Namba* renovation# ofrooms

72
111
124
116
120
300
63
122
7
135
234
126
174
166
204
120
12277
240
300
182

8

Topics in one-room (studio type) condominium businessChanges in the occupancy rate & the number of studio condominiums under our rental management
Kinki area # of managing units
Tokai Chukyo area occupancy rate
(Occupancy rate)
98.88%

99%

Tokai Chukyo area # of managing units
Kinki area occupancy rate(# of managing units)98.56%

98.47%

Other area # of managing units

98.46%

35,00098.45%

98.13%

97.89%
97.65%
97.79%
30,00097.62%
97.64%
97.51%
97.50%
98.38%
98.24%
98.19%
97.34%
97.86%
97.73%
97.78%
97.70%
97.68%
97.80%
97.38% 97.25%
25,00097.23%
97.08%
96.83%
96.89%

97.64%

98%
97.99%

97%

96.49%

96%

20,000

95%

94%

93%

3,230 3,343 3,550

3,690 3,789 3,795

4,106 4,200 4,340 4,456

4,703 5,002

9,557 9,833 9,900
8,236
7,769
8,110
8,024
7,259 7,335

9,906 10,358'14/12'17/3

10,391

5,277 5,315

11,884

12,1925,710 5,932

13,025

12,997

15,00010,000

5,000

92%

0

'15/3

'15/6

'15/9

'15/12

'16/3

'16/6

'16/9

'16/12

'17/6

'17/9

'17/12

'18/3

'18/6

'18/9

The company’s condominiums located in the central area of large cities can yield stable investment returns(= monthly rent revenue) due to high occupancy rates.
 A factor for strong sales of the company’s studio condominiums
 The occupancy rate for all properties under our rental management as of September 30, 2018 was 97.82%
9

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>
Management headquarters
Pressance Corporation
TEL: 06-4793-1650 (main)
FAX: 06-4793-1651
E-mail: psc@pressance.co.jp