Financial Highlights of FY 2020/3 up to the 1st Quarter
Pressance Corporation Co., Ltd.
Released in August 2019

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

Consolidated Income Statement Summary• Sales for the 1st Q of FY2020/3 remain at a high level although the sales decreased relative to the same period in the previous fiscal
year in which sales reached to an exceptional level due to a special factor.
• The results forecast for the full-year FY2020/3 is expected to exceed the FY2019/3 results significantly, being on a right track.
(Results forecast for FY2020/3: sales to increase by 30.3%, operating profit by 20.0%)【million yen】
FY 2018/March
1Q
Amounts

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

Ratio
to salesFY 2019/March
1Q
Amounts

Ratio
to salesFY 2020/March
1Q
AmountsA

Ratio
to salesFY 2020/March
Forecast (Full year)
YoY（％）

AnnualForecast B

Ratio
to sales

35,799 100.0%
25,235 70.5%
10,564 29.5%
3,744 10.5%
6,819 19.0%
6,749 18.9%

81,514 100.0%
57,285 70.3%
24,229 29.7%
6.1%
4,954
19,274 23.6%
19,158 23.5%

68,240 100.0% 83.7%
48,436 71.0% 84.6%
19,804 29.0% 81.7%
8.4% 115.8%
5,737
14,066 20.6% 73.0%
13,926 20.4% 72.7%

209,219 100.0%
154,940 74.1%
54,278 25.9%
21,746 10.4%
32,531 15.5%
31,429 15.0%

4,575

13,111

9,603

21,520

12.8%

16.1%

14.1%

73.2%

10.3%

Progression
Rate
A/B

32.6%
31.3%
36.5%
26.4%
43.2%
44.3%
44.6%

Year-on-Year change:• 1Q FY2019/3: Legend Biwako, our largest-scale condo (470 units), contributed to exceptionally large quarterly sales.
• 1Q FY2020/3: Sales remain at an outstandingly high level despite lack of exceptional contributors unlike the previous fiscal year.
• Factors increasing SG&A expenses: An increase in sales commission, advertisement of Family-type condos, a new project Braightrelated expenses, labor expenses due to increased staff, as well as corporate CM and other advertisement and promotion expenses(costs incurred prior to recording sales)• Progression rate on the annual sales plan is 32.6% for the 1st Q of FY2020/3 as planned (50.8% for the 1st Q
Progression onof the previous FY).
annual plan:• Larger portion of annual sales posted in the first quarter while SG&A expenses are periodically allocated,achieving a higher progression rate on the annual profit plan compared to the annual sales plan1

Sales by Major Products in Condominium Sales Business
FY 2018/March
1 Q Results
No. of units
unit

FY 2019/March
1 Q Results

AmountYoY（％）

million yen

No. of units

YoY（％）unit

YoY（％）FY 2020/March
1 Q Results

Amountmillion yen

YoY（％）

No. of units
unit

YoY（％）

Amountmillion yen

A

YoY（％）

Studio Condo

978 127.0% 16,855 126.3% 1,388 141.9% 24,979 148.2% 1,405 101.2% 28,020 112.2%

Family Type
Condo
Condo Building
Sales ※

203

377 116.7%

6,893 157.8%

297

Hotel Sales

72

1,053

240 333.3%

Total

47.3%

NA

7,238

52.4% 1,164 573.4% 44,857 619.7%

NA78.8%FY2020/MarchAnnualForecast
Amount Progression
million yen

Rate (% )B

A/B

70,90139.5%711

61.1% 26,135

58.3%

74,757

35.0%

66.3%

275

92.6%

4,214

92.3%

24,71517.1%

4,601 436.9%

126

52.5%

2,050

44.5%

18,292

11.2%

76.5% 188,666

32.0%

4,568

1,630 107.1% 32,041 101.6% 3,089 189.5% 79,006 246.6% 2,517

81.5% 60,420

Year-on-Year change: Sales in the 1st Q of FY2020/3 remained at a high level due to strong sales of Studio condo and Family-type condo.
• Studio Condo :Sales increased 3,040 million yen (Pressance THE Kobe 235 total units and others)• Family-type condo : Sales in the 1st Q of the current FY remained sound, despite the decrease in sales by a similar sales volume ofLegend Biwako (470 units) that were delivered and posted in the 1st Q of the previous FY.
• Condo building Sales : Progressing steadily• Hotel Sales :Two properties delivered for the 1st Q FY2019/3 → One property for the 1st Q FY2020/3, as planned
Progression on annual plan: Sales in the 1st Q made good progress as per the annual forecast, achieving 32.0% of the annual sales plan
• Large number of properties has been successfully delivered as planned, fulfilling 1st Q plan of sales by major products• Condo Building Sales and Hotel Sales progressing steadily as planned, projecting an increase in sales in 2nd Q or later※ Condo building sales : Wholesaling a whole or part of condominium building to other condominium retail dealer.
2Changes in Results and Forecasts by Each Quarter• 1st Q results made sound progress as planned, and sales are forecast to exceed the results of the previous fiscal year after 3rd
Q in the current term and to achieve 30.3 % annual growth• Large portion of annual sales posted in 1st Q of FY2019/3, while more balanced quarterly sales are planned for FY2020/3(1) Quarterly cumulative sales(2) Percentage of quarterly sales(comparison between FY2020/3 and FY2019/3)(million yen)

209,219 mil yen(annual forecast)

FY2020/3
200,000

160,580 mil yen

FY2019/3

122,058
plan

160,580

150,000

138,987
81,514

68,240

4Q: 13.4％

41.7％
3Q+4Q plan

3Q: 11.0％

121,350

100,000

Sales plan for the current FY• Achieving the same level as
FY2019/3 as of the end of 2nd Q• Expected to exceed FY2019/3
result after 3rd Q FY2020/3

50,000Large portion ofannual sales
posted in 1st Q

2Q: 24.8％

25.7％
2Q plan

1Q: 50.8％

32.6％
1Q result

FY2019/03
results

FY2020/03
result and plans

01Ｑ

2Ｑ

3Ｑ

4Ｑ

Quarterly sales in FY2020/3 are generated
more evenly than in FY2019/3

Solid line is the actual performance
Dotted line is the plan

209,219
plan

Cumulative Sales FY2020/03 1Q result and 2Q to 4Q plans
Cumulative Sales FY2019/03 results* Condominium sales are posted when condos are constructed and delivered to customers. It may be posted irregularly due to thetiming of land acquisition, development plan and/or construction period.
3

Consolidated Balance Sheet Summary
As of March 31, 2018
Result(million yen)

Current Assets
real estate for salereal estate for sale in process
Non-current Assets
Total Assets
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

227,161
11,275
180,461
18,237245,399
067,537
40,473102,689
102,021
170,226
75,172
245,399

As of March 31, 2019

Composition
ratio

92.6%
4.6%
73.5%
7.4%
100.0%
0
27.5%
16.5%
41.8%
41.6%
69.4%
30.6%
100.0%

Result(million yen)

280,591
9,603
225,30221,350301,942
082,91654,467
124,407
123,619
207,323
94,618301,942

Composition
ratio

92.9%
3.2%
74.6%
7.1%
100.0%
0
27.5%
18.0%
41.2%
40.9%
68.7%
31.3%
100.0%

As of June 30, 2019
Result(million yen)

275,447
13,420221,883
20,317295,765
073,49848,090
119,526
118,727
193,024
102,740
295,765

Composition
ratio

93.1%
4.5%
75.0%
6.9%
100.0%
0
24.9%
16.3%
40.4%
40.1%
65.3%
34.7%
100.0%

Change(million yen)

▲ 5,144
3,816▲ 3,418▲ 1,032▲ 6,1770▲ 9,417▲ 6,377▲ 4,880▲ 4,892▲ 14,298
8,121▲ 6,177

Major factors of changes: Changes from the end of March 2019
• Current Assets :Real estate for sale in process down by 3,418 million yen (due to the large increase in delivered properties),
Real estate for sale up by 3,816 million yen• Non-current Assets : Real estate for rent (net) down by 1,114 million yen• Liabilities :Bank loans payable down by 11,269 million yen, advances received down by 1,790 million yen (due to anincrease in delivered properties)• Total Net Assets :Recorded net income of 9,603 million yen* As for inventory in red frame in the matrix above, refer to the next page for details.
4Land Inventory as of June 30, 2019
Breakdown of the number in the red frameon the previous page
Real Estate for Sale
Land Cost for Condominium Biz A
Other Land CostConstruction Cost

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

Land Cost for Condominium Biz A + B
Studio Condominium
Family-type Condominium
Condominium Building Sales
Hotel Sales

Amount(million yen)

13,420
4,156
12
9,251
221,883
163,635
16,286
41,962Land inventories of condominium business(million yen)

106,172

116,662 119,255'17/12

Amount(million yen)Units167,791
58,32976,384
19,41913,65825,221
11,922
7,934
3,779
1,586

'18/3

'18/6

134,210'18/9

161,954 167,791

141,727'18/12'19/3'19/6

Volume of procured land compared with sales plans

Equivalent to the sales volume for about next 3 years
Equivalent to the sales volume for about next 3 years
Equivalent to the sales volume for about next 3 years－• Properties with settled land (registered under the Company’s name) are included in land inventory.
(In addition to the numbers above, there are 49 buildings with 3,735 units whose land sales contract has been completed but
payment have not been settled yet. Of these, Studio condos 2,772 units, Family-type condos 963 units.)✓ The sum of land cost for the condominium business (included in total inventory) of A + B of 167,791 million yen is obtained byaggregating real estate for sale (13,420 million yen) and real estate for sale in process (221,883 million yen) recoded in the balance
sheet for FY 2020/3, minus other land cost (12 million yen + 16,286 million yen = 16,298 million yen) and construction cost (9,251
million yen + 41,962 million yen = 51,213 million yen),.
• Other land cost includes land-related costs for used real estates and residential houses.

5Prospects for Achievement of Condo Sales Plan FY ‘20/3 & Outstanding Contracts (as of July 1, ‘19)
Outstanding Balance of Contracts as of June 30, 2019
Total Outstanding
Balance of contracts

A+B
Amount(mil yen）

Units
StudioFamily-type
Condo Bldg. Sales

1,570
2,016
1,775
1,054

Breakdown by delivery timing
During FY 2020/3
Scheduled Delivery A

Units

29,701 1,570
73,901 1,042
28,903 1,010
25,708664

Amount(mil yen）

29,701
38,985
16,892
16,242

FY 2021/3 or later
Scheduled Delivery B

Amount(mil yen）

Units0974765
390

Hotel Sales
Sales of other residential
36
6,04436
6,044
0houses and real estate
Total
6,451 164,258 4,322 107,865 2,129

As of end of 1st Q of FY 2020/3 (June 30, 2019)the combined amount of 1Q sales result andreceived orders to be posted as sales
during FY2020/3, 174,047 million yen,
has already achieved

086.7 %
34,915 of the annual sales plan of 200,702 million yen
12,010 Outstanding orders: the sum of property contract proceeds inthe following status.
9,466 • Buildings under construction and yet to be delivered• Completed sales contracts

0 • Uncompleted transfer of property (before buyers’56,392

registration)
Normally, outstanding orders are transferred to sales whenproperties are completed and delivered to customers.

Progress on Sales Plan FY2020/3
Sales results in 1Q,
FY2020/3

C
Units

StudioFamily-type
Condo Bldg. SalesAmounts(mil yen)

Of Outstanding Orders,
Orders Scheduled for
Delivery in FY 2020/3

Sales Results & Sales to Be
Posted as of the end of 1Q
FY2020/3

A

D=C+Ａ

Units

Amount(mil yen)Amounts(mil yen)

Units29,701＝
38,985
16,892
16,242

2,975
1,753
1,285
790

57,721
65,12021,107
18,292

6,044

79

11,804

12,035

4,322 107,865

6,882

174,047

200,702

1,405 28,020＋ 1,570711 26,135
1,042
275 4,214
1,010
126 2,050
664

Hotel Sales
Sales of other residential
43 5,760
houses and real estate
Total
2,560 66,181

Progress to Annual Sales Plan
as of the end of 1Q
E36

Amounts(mil yen)E÷70,90174,757
24,715
18,292

Progressionrate(％）
E/C

81.4%
87.1%
85.4%
100.0%
98.1%
86.7%

6Topic of Hotel Business10 hotels delivered, 11 hotels under development, 1 company-owned hotel, 1 renovating hotel = 23 hotels in total
Hotel operating pattern may be changed in terms of the patterns (A or B), the number of units and completion time due to changes of plans
A: To be sold to hotel business companies (specific buyers/candidates)
22 properties (including delivered properties)
B: To be owned by Pressance, and its operation will be outsourced to a hotel operating company 1 properties
Address

Operating pattern

Closest Railway Station

FY 2018 endedin March12Osaka-city, Naniwa-ku, Inari
Osaka-city, Naniwa-ku, Motomachi

Delivered Apr. '17
Delivered Oct. '17

JR Namba
JR Namba

FY 2019
ended inMarch

123
45
67

Osaka-city, Chuo-ku, Minamisemba
Osaka-city, Chuo-ku, Hiranomachi
Osaka-city, Yodogawa-ku, Nishimiyahara
Osaka-city, Naniwa-ku, Shikitsuhigashi
Kyoto-city, Nakagyo-ku, Tenjinyamacho
Kyoto-city, Shimogyo-ku, Gojo-Omiyadori
Kobe-city, Chuo-ku, Gokodori

Delivered Apr. '18
Delivered Apr. '18
Delivered Jul. '18
Delivered Jul. '18
Delivered Sep. '18Delivered Sep. '18
Delivered Sep. '18

Shinsaibashi on Subway Midosuji Line
Kitahama on Subway Sakaisuji Line
JR Shin-Osaka
Daikokucho on Subway Midosuji Line
Shijo on Subway Karasuma Line
Ohmiya on Hankyu Kyoto LineFY 2020
ending inMarch

1
2
3
4
5

Hiroshima-city, Naka-ku, Noboricho
Osaka-city, Chuo-ku, Minamihonmachi
Kyoto-city, Shimogyo-ku, Aburanokojidori
Fukuoka-city, Hakata-ku, Kamikawabatamachi
Kyoto-city, Minami-ku, Nishikujozaocho

Delivered Jun. '19
AAAA

Ebisucho on Hiroshima Dentetsu
Hommachi on Subway Midosuji Line
Gojo on Subway Karasuma Line
Nakasukawabata on Subway Hakozaki Line
JR Kyoto

FY 2021
ending inMarchor later

123456789

Kyoto-city, Higashiyama-ku, Yasakadori
Akita-city, Nakadori 3chome※
Kyoto-city, Nakagyo-ku, Oicho
Yokohama-city, Naka-ku, Onoecho
Naha-city, Nishi 2chome
Osaka-city, Naniwa-ku, Motomachi 2chome
Osaka-city, Chuo-ku, Sennichimae
Fukuoka-city, Hakata-ku, Tenyamachi
Osaka-city, Kita-ku, Toganocho

A(completed in FY '19)
B(delivery FY '21)
AAAAAAAKiyomizugojo on Keihan Line
Akita on Akita-Shinkansen, JR Uetsu-honsen
Marutamachi on Subway Karasuma Line
JR Kannai
Asahibashi on Yui RailJR Namba
Namba on Subway Midosuji/Nankai Line
Gofukumachi on Subway Hakozaki Line
Higashi Umeda on Subway Tanimachi Line※ renovation

JR S annomiya# ofrooms

72
111
124
116
120
300
63
122
135
126
174
166
204
120
7234
12277
240
300
182
180
117

7

Progress of our ReTech (1) Overall framework of Braight and launched projects
Braight = AI-driven web marketing tool to visualize real estate investment informationAI-driven
Price and revenue simulation

Simulator
Lab

Owner app

Visualize propertytransaction prices

Useful news and topic
articles for asset
formation

Learn

Visualize operation
Property management appfor owners

ArrivalVintage

New property
information

Used property
information

Search/compare properties

Manage assets
Contract

Increase potential
customers

Cultivate prospective customers

Retain customers

Launch targeted advertisement and mass advertisement
PurposeBraight’s✓ Customer acquisition✓ Awareness raising••••ContentDigital ad

Braight’s PR
Reasons of why Pressance is preferred
Introduction of recommended properties
Application for events and campaigns• Display • Listing• Affiliate marketing • SNS• E-mailAnalog ad• Direct mail• Newspaper ad(Nikkei nationalnewspaper)
8

Progress of our ReTech (2) Achievement in 1st Q
Braight’s achievements during the April-June period
1,071# of memberships

Orders in amount(including taxes)

New properties

Used properties

Total¥125 mil¥513 mil¥638 mil637

43# of orders

Made a good start with orders increasing as memberships increases
Install IoT devices as standard of our new condos
Higher convenience for residents with IoT (Sony Multifunction Light, LGTC-10 set model)◎ Various smart home features: • Remotely controls lighting, air conditioner and others.
• Watch out with sensors an abnormal event while the resident is away(alert sound and email notification to the resident), etc.
Properties with the device completed
in 1st Q FY2020/3

Three properties including Pressance Hirokoji dori Aoi(236 units in total)

Properties with the device to be completed
in FY2020/3

23 properties (about 2,300 units) besides the above-mentioned9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)
E-mail: psc@pressance.co.jp

FAX: 06-4793-1651