This document has been translated from a part of the Japanese original for the convenience of non-Japanese shareholders. In the event of any discrepancy between thistranslation and the Japanese original, the original shall prevail.

August 13, 2021

Consolidated Financial Results
for the First Three Months of the Fiscal Period Ending September 30, 2021
<under J-GAAP>
Company name:
Listing:
Section code:
URL:
Representative:
Contact:

Pressance Corporation Co., Ltd.
First Section of the Tokyo Stock Exchange3254
https://www.pressance.co.jp/
Yutaka Doi, President and Representative Director
Kyosuke Ichikawa, Executive Officer, Deputy General Manager of Management Division,and General Manager of Accounting Department
TEL: +81-6-4793-1650
Scheduled date of filing of quarterly securities report:
August 13, 2021
Scheduled date of start of dividend payment:–
Preparation of supplementary quarterly materials for financial results:
Yes
Holding of quarterly financial results presentation meeting:No(Amounts less than one million yen have been omitted.)1.

Consolidated operating results for the first three months of the fiscal period ending September 30,
2021 (from April 1, 2021 to June 30, 2021)(1) Consolidated operating results
Net sales
Millions of yen
First three months of the fiscal
period ending September 30,
2021
First three months of the fiscal
year ended March 31, 2021
Note: Comprehensive income(Percentages indicate year on year changes
compared to the same period of the previous FY )Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%

53,973 (18.1)

8,642 (27.4)

8,473 (29.2)

5,328 (34.9)

65,901

11,906 (15.4)

11,962 (14.1)

8,181 (14.8)(3.4)

First three months of the fiscal period ending September 30, 2021: 5,345 million yen [(35.1)%]
First three months of the fiscal year ended March 31, 2021: 8,239 million yen [(13.8)%]
Basic earnings per
share
Yen

Diluted earnings per
share
Yen

78.38

78.37

127.19127.15

Total assets
Millions of yen
253,208
268,762

Net assets
Millions of yen
144,428
140,132

First three months of the fiscal
period ending September 30,
2021
First three months of the fiscal
year ended March 31, 2021

(2) Consolidated financial position
As of June 30, 2021
As of March 31, 2021
Reference: Equity
As of June 30, 2021
As of March 31, 2021

143,586 million yen
139,353 million yen

Equity ratio
%
56.7
51.8

2.

Dividends
1st quarter-end
Yen

Annual dividends per share
2nd quarter-end
3rd quarter-end
Year-end
Yen
Yen
Yen

Fiscal year ended―
13.00
March 31, 2021
Fiscal period ending―
September 30, 2021
Fiscal period ending
September 30, 2021―
(Forecast)
Note: Revisions to the dividends forecasts most recently announced: None

3.

Annual total
Yen

―

16.00

29.00

―

16.00

16.00

Forecasts of consolidated operating results for the fiscal period ending September 30, 2021 (from
April 1, 2021 to September 30, 2021)(Percentages indicate year on year changes.)
Basic
Profit attributable to
Net sales
Operating profit
Ordinary profit
earnings
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
95,203―
11,883―
11,415―
7,791―
114.62
Note:
Revisions to the results forecasts most recently announced: None
Note:
Pursuant to the resolution of the Ordinary General Meeting of Shareholders held on June 25, 2021, we have changed
the fiscal year-end from March 31 to September 30. For this reason, year on year changes (percentage) are not stated.

*
(1)

(2)

Notes
Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None

Adoption of specific accounting policies for quarterly consolidated financial statements: Yes(Corporate Income Tax Calculation Standards)
Regarding taxes, a reasonable estimate of the effective tax rate for the projected full-period pretax income forthe current fiscal period, including the actual income figure for the first three months of the fiscal year, has been
arrived at using the tax-effect accounting method.

(3) Changes in accounting policies, changes in accounting estimates and restatement after error corrections
a. Changes in accounting policies due to amendments to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons than a. above: Nonec. Changes in accounting estimates: None
d. Restatement after error corrections: None
(Change in accounting policies)(Adoption of accounting standards for revenue recognition)
The Company adopted the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, revised on
March 31, 2020, hereinafter referred to as the “ASBJ Statement No.29”) and other related standards from the
beginning of the first three months of the fiscal period ending September 30, 2021. In line with these newstandards, the Company recognizes revenue at the point when the control of the promised goods or service istransferred to the customer, in the amount expected to be received in exchange for the goods or service.
For the adoption of the ASBJ Statement No.29 and other related standards, the transitional treatments stipulated
in the proviso of paragraph 84 of the ASBJ Statement No.29 is followed, but there is no impact on the beginningbalance of retained earnings. In addition, this change has no impact on income/loss for the first three months of
the fiscal period ending September 30, 2021 either.
(Adoption of accounting standards for fair value measurement)
The Company adopted the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4,
2019, hereinafter, the “ASBJ Statement No.30”) and other related standards from the beginning of the first threemonths of the fiscal period ending September 30, 2021. In accordance with the transitional treatments stipulated
in paragraph 19 of the ASBJ Statement No.30 and paragraph 44-2 of the “Accounting Standard for Financial
Instruments” (ASBJ Statement No.10, revised on July 4, 2019), the Company applies these new accounting
policies prescribed by the ASBJ Statement No.30 and other related standards to the transactions that occur on
and after the adoption date. This change has no impact on the quarterly consolidated financial statements.

(4)Number of issued shares (common stock)a. Number of issued shares at the end of each period (including treasury shares)
As of June 30, 2021
As of March 31, 2021

68,845,511 shares
68,845,511 sharesb. Number of treasury shares at the end of period
As of June 30, 2021
As of March 31, 2021

866,984 shares
866,984 sharesc. Average number of shares during the period
First three months of the fiscal period ending September 30, 2021
First three months of the fiscal year ended March 31, 2021

67,978,527 shares
64,328,907 shares

Note:
Due to the introduction of the share-based payment type ESOP, a certain number of shares of the Company
held in the trust account is included in the “Number of treasury shares at the end of period” (309,860 sharesfor the 1st quarter of the fiscal period ending September 30, 2021 and 309,860 shares for the fiscal year ended
March 31, 2021). And, a certain number of shares held in the trust account is included in the treasury sharesthat were deducted in the calculation of the “Average number of shares during the period” (309,860 shares forthe 1st quarter of the fiscal period ending September 30, 2021 and 313,320 shares for the 1st quarter of the
fiscal year ended March 31, 2021).
* Review of quarterly financial result reports by public accountants or auditing firms is not required.
* Explanations about the proper use of financial forecasts and other important notes(Caution Concerning Forward-looking Statements)
Forward-looking statements in this document, including the results forecasts, are based on the information
available to the Company at the time of disclosure and on certain assumptions deemed to be practicable by
the Company. These statements do not purport that the Company pledges or ensures to achieve suchstatements. Actual business and other results may differ substantially due to various factors. For preconditions
to the assumptions and other important notes concerning the financial forecasts, please refer to “1. Quarterly
Qualitative Information (3) Explanation for the Forecast of Consolidated Financial Results ending September
30, 2021” on page 2 of the attachment.

(Method of Obtaining Supplementary Materials for Quarterly Financial Results)
Supplementary materials for quarterly financial results are available on the Company’s website on the release
date of this document. (Japanese version only)1. Quarterly Qualitative Information(1) Business Results
During the first three months of the consolidated fiscal period ending September 30, 2021, the Japanese economy
and the business environment remained challenging due to the impact of the COVID-19 pandemic. Although
there are some signs of a pickup, we must pay close attention to the impact of infection trends on the economy
in and outside Japan and fluctuations in the financial and capital markets, etc.
In the real estate industry to which the Group belongs, in addition to the impact of the COVID-19 pandemic,
land costs in cities and construction costs remain elevated. Although these and other factors are causes forconcern, the interest rates on housing loans remain low while the Japanese government’s ongoing measures tohelp homebuyers, such as a mortgage tax breaks, are still on track, contributing to a stable economy. The demandfor condominiums in the center of cities, which is our main supply area, was solid as more people or households
tended to move seeking the convenience of urban living.
In these business circumstances, Pressance Corporation Co, Ltd. (the “Company”) has focused on supplying
condominiums in selected places in the central part of major cities in the Kinki, Tokai/Chukyo, and Tokyo
metropolitan areas, and other core regions including Okinawa, which are our major sales areas.
Under such business conditions, the Company posted the following consolidated performance for the first threemonths of the fiscal period ending September 30, 2021. Net sales amounted to 53,973 million yen (down 18.1%
year on year), operating profit amounted to 8,642 million yen (down 27.4% year on year), ordinary profits
amounted to 8,473 million yen (down 29.2% year on year) and profit attributable to owners of parent amounted
to 5,328 million yen (down 34.9% year on year).
An overview of operating results by business segment is as follows:

Real Estate Sale BusinessIn the real estate sales business, Pressance Loger Shin-Umeda (84 units), a family-type condominium in thePressance Loger series, and Pressance THE KYOTO SUITO (128 units), a Pressance series studio condominium,
have performed favorably.
However, as economic activities remain constrained by the impact of the COVID-19 pandemic, our sales
activities are also affected. In addition, although this is in line with our plan, sales of family-type condominiums
have decreased significantly due to the small number of completed properties.
The sales of studio condominiums amounted to 28,220 million yen (1,675 units), sales of family-typecondominiums amounted to 17,278 million yen (458 units), sales of hotel properties amounted to 4,250 million
yen (180 units), sales of other types of housing amounted to 1,960 million yen (99 units), and businessaccompanying real estate sales amounted to 340 million yen. Total sales of the real estate sales business posted
52,050 million yen (down 18.3% year on year) and segment profit amounted to 8,530 million yen (down 26.4%
year on year).
Since sales from the condominium business, our main business, are recorded on a delivery basis that is later thancompletion, there may be fluctuation in the quarterly sales results depending on the timing of land acquisition,
development plans and/or construction schedules.

Other BusinessWith a decrease in rent revenue related to rent guarantees, the sales of Other business amounted to 1,922 million
yen (down 11.9% year on year), and segment profit amounted to 423 million yen (down 37.3% year on year).
As stated in the “Notice Regarding Changes in Fiscal Year (Fiscal year-end)” disclosed on May 14, 2021,
following the approval of “Partial Amendment of the Articles of Incorporation” at the 24th Ordinary General
Meeting of Shareholders held on June 25, 2021, we have changed the fiscal year-end from March 31 to
September 30. For this reason, the 25th fiscal period, which is the transitional period for changing the fiscal year,
covers 6 months from April 1, 2021 to September 30, 2021.

(2) Financial Position
Current Assets
Total current assets as of the end of the first three months of the fiscal period amounted to 236,302 million yen(down 5.1%), which represents a decrease of 12,737 million yen compared to the end of the previous fiscal year.
This was mainly due to a decrease in inventory of 14,620 million yen.

1

Non-current Assets
Total non-current assets as of the end of the first three months of the fiscal period amounted to 16,905 million
yen (down 14.3%), which represents a decrease of 2,816 million yen compared to the end of the previous fiscal
year. This was due mainly to a decrease in real estate for rent by 1,546 million yen following the transfer of selfowned real estate to inventory and a decrease in loans receivable from subsidiaries and associates by 762 million
yen.

Liabilities
Total liabilities as of the end of the first three months of the fiscal period amounted to 108,779 million yen (down
15.4%), which represents a decrease of 19,850 million yen compared to the end of the previous fiscal year. Thiswas mainly due to a 7,835 million yen decrease in loans payable to financial institutions, a 5,889 million yen
decrease in electronically recorded obligations-operating due to an increase in settlements, and a 4,029 million
yen decrease in income taxes payable due to the payment of income taxes.

Net Assets
Total net assets as of the end of the first three months of the fiscal period amounted to 144,428 million yen (up3.1%), which represents an increase of 4,296 million yen compared to the end of the previous fiscal year. Thiswas principally due to the increase in retained earnings of 4,235 million yen because of the posting of profit
attributable to owners of parent of 5,328 million yen, which offset the cash dividends paid of 1,092 million yen.

Analysis on Cash Flows
Cash and cash equivalents as of the end of the first three months of the fiscal period ending September 30, 2021,
totaled 88,799 million yen (up 1.2%), which represents an increase of 1,090 million yen compared to the end of
the previous fiscal year.
The status and factors in each cash flow for the first three months of the fiscal period ending September 30, 2021,
are as follows:

Cash Flows from Operating Activities
Net cash provided by operating activities came to 10,574 million yen (Compared with 15,857 million yen
provided in the first three months of the previous fiscal year).
This was mainly due to cash inflow resulting from a decrease in inventories by 16,273 million yen following thedelivery of condominiums and the posting of 8,473 million yen in profit before income taxes, while there were
cash outflows as a result of a payment of income tax of 6,620 million yen, a decrease in notes and accounts
payable-trade by 6,144 million yen reflecting an increase in the settlement of electronically recorded obligationsoperating, and other factors.

Cash Flows from Investment Activities
Net cash used in investment activities came to 567 million yen (Compared with 90 million yen used in the first
three months of the previous fiscal year).
This was principally due to cash outflows resulting from the acquisition of non-current assets of 322 million yen
and loans to subsidiaries and associates of 262 million yen.

Cash Flows from Financing Activities
Net cash used in financing activities came to 8,917 million yen (Compared with 11,776 million yen used in thefirst three months of the previous fiscal year).
This was due mainly to cash outflows resulting from the net decrease in loans payable to financial institutions
by 7,835 million yen and the dividend payment of 1,081 million yen.

(3) Explanation for the Forecast of Consolidated Financial Results ending September 30, 2021
Condominium sales, our major business, have a tendency to excessively skew or cause unevenness in specificquarterly results due to the timing of the delivery of condominiums, because condominium sales are to be postedon the basis of delivery of the condominium units. Our business results in the first three months of the fiscal
period ending September 30, 2021 have been making sound progress, and there is no change in our forecasts ofconsolidated financial results released on May 14, 2021 for the fiscal period ending September 30, 2021.

22. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Real estate for sale
Real estate for sale in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Real estate for rent, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for share-based payment
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock:
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

3

As of March 31, 2021

As of June 30, 2021

90,799112
8,538
142,143
152
7,389
(95)
249,040

91,88988
19,844116,218
149
8,203
(92)
236,302

13,738518
14,257149
5,315
19,722
268,762

12,192496
12,689120
4,096
16,905
253,208

280
6,641
4,662
52,318
6,670
5,621
212
4,937
81,344

178
752
3,193
43,217
2,641
4,457
310
4,004
58,75546,469231
3580
47,284
128,629

49,204231
3584
50,023
108,779

6,880
7,882
125,460(883)
139,340

6,880
7,882
129,695(883)
143,575

1
11
13
381
398
140,132
268,762

4
7
11
425
417
144,428
253,208

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)First three months of the fiscal
First three months of the fiscal
year ended March 31, 2021
period ending September 30, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Share of profit of entities accounted for using equity
methodForeign exchange gains
Commission fee
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes
Net income
Profit (Loss) attributable to non-controlling interests
Profit attributable to owners of parent

465,901
48,935
16,966
5,060
11,90653,973
41,21912,753
4,111
8,642

0
0
1

0
1
－

11

－

－
21
240
88
364

0
10
30
68
111

209

182

－

12

14
0
83
307
11,962
11,962
3,786
8,176
(5)
8,181

－
34
50
280
8,473
8,473
3,126
5,347
19
5,328

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)First three months of the fiscal
First three months of the fiscal
year ended March 31, 2021
period ending September 30, 2021
Net income
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 toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

5

8,176

5,347

(1)
46

2
(0)

18

(4)

63
8,239

(1)
5,345

8,245

5,326

(5)

19

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)First three months of the fiscal
First three months of the fiscal
year ended March 31, 2021
period ending September 30, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using
equity method
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Share-based remuneration expenses
Increase (decrease) in provision for bonuses
Increase (decrease) in advances received
Decrease (increase) in consumption taxes refund
receivable
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment securities

11,96266
25－

Purchase of shares of subsidiaries and associates
Payments of loans receivable from subsidiaries andassociates
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Net increase (decrease) in short-term loans payable
Net cash used in financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

6

(1)
209
14

8,473
110
13
(3)
(1)
182
(0)

(11)

12

16,53016,273(3,956)(6,144)60
116(5,435)53
97(1,171)

280

(18)

148
(3,690)16,320
1
(211)
(252)
15,857(707)
227
17,3981(204)(6,620)
10,574

(8)
302
(0)
－

(322)
58
(1)
0

－

(40)

(383)

(262)

(90)

(567)

948
(15,612)
(818)
3,706
(11,776)

8,746(15,112)(1,081)(1,469)(8,917)

0

(0)

3,990
41,68445,674

1,090
87,70988,799

3. Others(1) Actual orders
First three months of the fiscal year ended March 31, 2021 (from April 1, 2020 to June 30, 2020)
Name ofsegment

Realestate salebusiness

Category
Studiocondominiums
Family-typecondominiums
Sale of hotel
property
Sale of othertype of housing
Sale of otherreal estate

Total amount of reportablesegments

Number ofunits

Total amount of contracts
AmountYear on(Millions ofyear (%)
yen)

Year onyear (%)

Outstanding balance of contracts
AmountNumber ofYear onYear on(Millions ofunits
year (%)
year (%)
yen)

785

88.9

12,618

73.1

3,238

96.8

55,761

95.1

381

63.1

14,386

64.1

1,236

61.3

47,432

64.2

(240)

－

(3,935)

－

330

31.3

9,920

38.6

42

70.0

844

72.1

47

130.6

1,249

144.1

－

－

2,296

235.1

－

－

4,966

95.9

968

57.9

26,209

59.7

4,851

75.2

119,33172.6

First three months of the fiscal period ending September 30, 2021 (from April 1, 2021 to June 30, 2021)
Name ofsegment

CategoryRealestate salebusiness

Studiocondominiums
Family-typecondominiums
Sale of hotel
property
Sale of othertype of housing
Sale of otherreal estate

Total amount of reportablesegments

Number ofunits

Total amount of contracts
AmountYear on(Millions ofyear (%)
yen)

Year onyear (%)

Outstanding balance of contracts
AmountNumber ofYear onYear on(Millions ofunits
year (%)
year (%)
yen)

1,033

131.6

16,683

132.2

2,358

72.8

34,689

62.2

447

117.3

18,191

126.4

1,041

84.3

45,331

95.6

240

－

3,750

－

240

72.7

3,750

37.8

92

219.0

2,056

243.6

89

189.4

2,675

214.1

－

－

－

－

－

－

400

8.1

1,812

187.2

40,680

155.2

3,728

76.9

86,84672.8

Note:
1. In the table above, “total amount of orders” has been replaced with “total amount of contracts.”
2. Consumption taxes are not included in the above amounts.
3. Amounts of additional constructions are included in the above amounts.
4. Number of units in total amount of contracts and the outstanding balance of contracts may fluctuate due tochange in business plan and others.
5. The sale of other type of housing refers to the sale of houses other than newly built condominiums, including
used houses and detached houses.
6. The sale of other real estate refers to the sale of real estate other than housing, including commercial storesand lands for development.
7. The total amount of contracts for the sale of hotel properties in the first three months of the previous fiscal
year are negative because a contract recorded in the total amount of contracts before the commencement of
the previous fiscal year was canceled in the first three months of the previous fiscal year.
8. Amounts of contracts and the outstanding balance of contracts for sale of other real estate for the first threemonths of the fiscal year ended March 31, 2021, refer to lands for development.
Outstanding balance of contracts for sales of other real estate in the first three months of the fiscal period
ending September 30, 2021, refer to lands for development.

7

(2) Actual sales

Name ofsegment

Category

Studiocondominiums
Family-typecondominiums
Sale of hotel
propertyRealestate sale Sale of otherbusinesstype of housing
Sale of otherreal estateBusiness
accompanying
real estate sale
Total amount of reportablesegments

First three months of the fiscal year
ended March 31, 2021
(from April 1, 2020 to June 30, 2020)
AmountNumber ofYear onYear on(Millions ofunits
year (%)
year (%)
yen)

First three months of the fiscal period
ending September 30, 2021
(from April 1, 2021 to June 30, 2021)
AmountNumber ofYear onYear on(Millions ofunits
year (%)
year (%)
yen)

1,018

60.6

17,413

54.0

1,675

164.5

28,220

162.1

1,202

169.1

42,668

163.3

458

38.1

17,278

40.5

－

－

－

－

180

－

4,250

－

38

88.4

824

108.4

99

260.5

1,960

237.7

－

－

2,302

46.1

－

－

－

－

－

－

509

156.5

－

－

340

66.9

2,258

88.2

63,719

95.8

2,412

106.8

52,050

81.7

Other

－

－

2,182

125.9

－

－

1,922

88.1

Total

2,258

88.2

65,901

96.6

2,412

106.8

53,97381.9

Note:
1. Consumption taxes are not included in the above amounts.
2. Amounts of additional constructions are included in the above amounts.
3. The sale of other type of housing refers to the sale of houses other than newly built condominiums, including
used houses and detached houses.
4. The sale of other real estate refers to the sale of real estate other than housing, including commercial storesand lands for development.
5. Business accompanying real estate sale includes income from post-delivery optional construction work suchas floor coating and income from intermediation fees from real estate sales.
6. Sales of other real estate in the first three months of the fiscal year ended March 31, 2021, and in the first
three months of the fiscal period ending September 30, 2021, refer to lands for development.

8