Financial Highlights: 3Q of FYE March 2019
Pressance Corporation Co., Ltd.

Released in February 2019

Securities Code: 3254 (TSE 1st Section)• “JPX Nikkei Index 400” component• “JPX Nikkei Mid and Small Cap Index”
component

Upward Revision to Annual Forecast
 Revised Forecast for Sales 157.8 billion yen: Up by 5.38 billion yen (3.5%) from the initial plan of 152.4 billion yen
 Revised Forecast for Operating Profit 27.0 billion yen : Up by 2.47 billion yen (10.1%) from the initial plan of 24.5 billion yen【million yen】

Income Statement Summary
Revised Forecast(Full Year) Ａ
AmountSales
Cost of Goods Sold
Gross Margin
SG&A Expenses
Operating Profit
Ordinary Profit
Net Income

Ratio toSales

Initial Plan
ＢAmount

Ratio toSales

ChangeＡ-Ｂ
Amount%Change157,851 100.0% 152,471 100.0% 5,380 3.5%
113,852 72.1% 110,820 72.7% 3,031 2.7%
43,998 27.9% 41,650 27.3% 2,348 5.6%
16,984 10.8% 17,108 11.2% ▲ 124 -0.7%
27,014 17.1% 24,541 16.1% 2,472 10.1%
26,248 16.6% 23,661 15.5% 2,586 10.9%
17,856 11.3% 16,132 10.6% 1,723 10.7%

Sales by Main Products
Studio condo
Family type condo
Condo building sales
Hotel SalesTotal
Sale of other real estate

42,999 28.9% 41,951 29.0% 1,048 2.5%
75,673 50.9% 74,027 51.2% 1,646 2.2%
8.4% 13,083
9.1% ▲ 623 -4.8%
12,45917,625 11.8% 15,429 10.7% 2,195 14.2%
148,759 100.0% 144,492 100.0% 4,267 3.0%
2,043―
1,142―
900 78.8%

Major factors of changes
Sales: Revised upward by 5.38 billion yen
 Condominium sales continued more favorably than initialplan  Up 4.26 billion yen from the initial plan
 Number of units sold in studio and family typecondominiums increased by about 60 units, respectively.
 Hotel sales increased by 2.15 billion yen by recognizing
sales of a hotel ahead of schedule.
 A property planned to be wholesaled as a building wassold by retailing studios (initial plan was 670 million yen)
 Sales from other residential houses and real estate sales
business increased Up 900 million yen from the initial plan
• Boosted by an unplanned sale under favorable deal
conditions. Land (1 property): Up 820 million yen
SG&A expenses: Revised downward by 124 million yen
 Selling expenses: Up 130 million yen from the initial plan
• Registration expense related to the acquisition of sites forselling in the future period• Advertising expense for a new corporate advertisement
 Personnel expenses: Down 170 million yen• Hired certain number of additional staff. Not-yet-covered
expenses of reserve that was planned to prepare for
additional opportunities to increase the number of staff
 Administrative expenses: Down 80 million yen• Travelling and transportation expense, telecommunication
expense and fees, etc. ended up below the plan1

Dividend Forecast： FY-end-dividend target revised upward from initial forecast
Details: • Year-end dividend per share••

Annual dividends per share
Dividend payout ratio: 23.00 yen Up by 5.50 yen from the initial forecast of 17.50 yen: 40.50 yen Up by 11.10 yen (37.8%) YoY from 29.40 yen: 14 ％Up by 1.0% from the initial forecast of 13.0%

Reason: Operating profit reached 27.0 billion yen • Up by 6.65 bil yen (32.7%) YoY from 20.3 bil yen• Up by 2.47 bil yen (10.1%) from the initial forecast of 24.5 bil yen
Dividends (Yen)
Date

2Q

FY2019FY EndTotal

Dividend
Total
growth rate dividends(million ye n)(YoY)

Dividend
payoutratio

17.50 yen
23.00 yen 40.50 yen 37.8%(Result)

NAFY2018

12.50 yen 16.90 yen 29.40 yen 39.0%

1,762

12.6%

FY2017※FY2016※FY2015※

8.75 yen 12.40 yen 21.15 yen 41.0%

1,250

11.8%

(RevisedForecast)

0.00 yen 15.00 yen 15.00 yen 20.0%
0.00 yen 12.50 yen 12.50 yen0.0%¥289.3214.0%¥232.58¥40.50882769¥178.99¥152.319.9%¥29.40¥126.27¥12.50

FY '15Year-end¥15.00

FY '16Mid-term¥17.50¥21.15

9.8%* The company conducted a 4-for-1 share split of its common shares as of October 1, 2016.
The figures in the above table take the share split into account.

Special benefits to shareholders(planned for FYE March 2019)EPSDPS¥23.00

FY '17

FY '18100 shares or more
and less than 400 shares

VJA Gift Card worth 2,000 yen

400 shares and over

VJA Gift Card worth 5,000 yen

FY '19Forecast2Consolidated Income Statement Summary In 3Q of FY 2019/3, sales was up by 37.6%, and operating profit was up by 58.9% YoY.
 The revised forecast of sales and each stage of income is expected to substantially exceed the result in theprevious year.
【Million yen】
FY 2019/March
Revised Forecast (Full Year)* On a cumulative and consolidated basis
FY2017/March 3Q

Operating Profit

72,961 100.0% 101,024 100.0% 138,987 100.0% 137.6% 157,851 100.0%
52,169 71.5% 73,692 72.9% 99,618 71.7% 135.2% 113,852 72.1%
20,791 28.5% 27,331 27.1% 39,368 28.3% 144.0% 43,998 27.9%
9.0% 120.0%
8,344 11.4% 10,440 10.3% 12,526
16,984 10.8%
12,447 17.1% 16,891 16.7% 26,842 19.3% 158.9% 27,014 17.1%

88.0%
87.5%
89.5%
73.8%
99.4%

117.7%
114.3%
127.6%
120.3%
132.7%

Ordinary Profit

12,292

16.8%

16,55716.4%

26,44719.0% 159.7%

26,24816.6%

100.8%

132.2%

8,235

11.3%

11,24711.1%

17,933

12.9% 159.5%

17,85611.3%

100.4%

129.8%

Sales
Cost of Goods SoldGross Margin
SG&A Expenses

Net Income
Attributable to O wne rs ofPare nt

ResultsARatio
to salesYoY(% )

Revised
Forecast B

Ratio of
Revised
Forecast toResults ofPrevious
PeriodProgress Rate
A/B

Results

Ratio
to sales

FY2019/March 3Q

Ratio
to salesResults

Ratio
to sales

FY2018/March 3Q

 Year-on-Year change: • Strong sales boosted sales by 37,963 million yen, with gross margin up by 1.27bp due to an increased
ratio of profitable products.
• An increase of 12,036 million yen in gross margin offset an increase of 2,085 million yen in selling
expenses (associated with future growth in business performance and strong sales) and general andadministrative expenses, such as personnel cost, improving operating profit by 9,951 million yen.

 Progress to revised forecast:

Progress rate of net sales and operating profit is 88.0% and 99.4%, respectively ⇒ Sales are largely
generated in 1Q and 2Q, while SG&A expenses are periodically allocated. As a result, each stages ofincome shows higher progress rates at the end of 3Q compared with net sales.
3Sales by Main Products in Condominium Sales Business
FY 2017/March
3Q Results
No. of units
YoY(% )

unit

FY 2018/March
3Q Results

Amountmillionyen

YoY
(% )

No. of units
unit

AmountYoY(% )

millionyen

Progression
FY2019/Rate vs.
March Annual
AnnualRevised Forecast
RevisedForecast
AmountFY 2019/March
3Q Results
No. of units

YoY
(% )

unit

YoY
(% )

Amountmillion yen

YoY
(% )

A

million yen(%)

B

A/B

Studio Condo

1,434 124.4% 24,809 134.3% 1,651 115.1% 28,350 114.3% 1,883 114.1%

34,202 120.6%

42,99979.5%

Family TypeCondo

1,031

68,933 152.6%

75,673

91.1%

10,872

63.7%

12,45987.3%

17,625 642.3%

17,625100.0%

3,211 113.5% 68,514 106.1% 4,213 131.2% 93,345 136.2% 5,467 129.8% 131,634 141.0%

148,759

88.5%

Condo Building
Sales *

76.7% 33,857

746 226.1%

9,847 242.9% 1,086 145.6% 17,073 173.4%
183

Hotel Sales
Total

80.6% 1,293 125.4% 45,177 133.4% 1,839 142.2%

NA2,744

NA765

70.4%

980 535.5%

 Year-on-Year change: Strong sales increased sales. Up by 1,254 units and 38,288 million yen•

Studio condo:•Family-type condo:•Condo bldg. sales:•Hotel sales:

Up by 232 units and 5,852 million yen in sales(incl. a total of 148 units in Pressance Itachibori Park City)
Largely increased by 546 units and 23,756 million yen in sales(incl. a total of 486 units in Legend Biwako)
As planned, though decreased YoY. Units down by 321 and sales downby 6,201 million yen
Number of buildings delivered: Two at the end of 3Q in the previous fiscal year Seven at the end of 3Q this fiscal year; sales increased by 14,881 million yen* Condominium building sales: Wholesaling a whole or a part of condominium building primarily to other condominium dealer

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

As of March 31, 2018

As of December 31, 2018

Component
ratio

Results(million yen)

Component
ratio

Results(million yen)

Component
ratio

171,81092.7%

227,161

92.6%

249,051

92.9%

21,88914,324

7.7%

11,275

4.6%

16,523

6.2%

5,248

122,17465.9%

180,46173.5%

190,321

71.0%

9,859

13,497

7.3%

18,237

7.4%

19,0997.1%

861

185,307100.0%

245,399

100.0%

268,150

100.0%

22,75149,43826.7%

67,53727.5%

66,785

24.9%

▲ 751

25,41013.7%

40,473

16.5%

48,492

18.1%

8,019

76,25341.1%

102,68941.8%

107,222

40.0%

4,533

75,69140.8%

102,02141.6%

106,475

39.7%

4,453

Total Liabilities

125,69167.8%

170,22669.4%

174,008

64.9%

3,781

Total Net Assets

59,61532.2%

75,172

30.6%

94,14235.1%

18,969185,307100.0%

245,399

100.0%

268,150100.0%

22,751

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 and Net Assets

0000

00

Change(million yen)

0Major factors for changes: Changes from the end of March 2018
 Current Assets:• Real estate for sale in process up by 9,859 million yen, real estate for sale up by 5,248 million yen
 Non-current Assets: • Real estate for rent (net) down by 537 million yen (3 properties were newly owned and 3 properties weretransferred for sale) Investments and other assets up by 1,224 million yen (related to overseas affiliates)
 Liabilities:• Accounts payable (incl. electronically recorded obligations) down by 6,172 million yen, income taxes
payable up by 1,364 million yen• Loans payable to banks up by 15,372 million yen, advances received down by 4,586 million yen (manyproperties have delivered during the current period)
 Net Assets:• Net income reported 17,933 million yen“Partial Amendments to Accounting Standard for Tax Effect Accounting” has been applied from the beginning of 1Q of FY 2019/3. The current assets
and non-current assets at the end of FY 2018/3 show retroactively adjusted figures. * For the red-framed inventory, refer to the next page for details.

5Land Inventory <As of December 31, 2018>
Breakdown of the number in red frameon the previous page
Real Estate for Sale

Amount(million yen)

Land Cost for Condominium Biz A

4,858
30
11,634

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 Condominium Biz A + B
Studio Condominium
Family Type Condominium
Condominium Building Sales
Hotel Sales

16,523

Land inventories of condominium business(million yen)

89,182102,055 106,172

116,662 119,255

134,210

141,727

190,321
136,868
23,41430,038'17/6

Amount(million yen)Units141,727

22,21449,34867,42014,46010,498

9,823
7,446
3,488
1,457

'17/9

'17/12

'18/3

'18/6

'18/9

'18/12

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
Procured the lands for scheduled delivery up to March 2021
Procured the lands for scheduled delivery up to March 2021

 Properties with settled land (registered under the Company’s name) are included in land inventory.
(In addition, there are 66 properties (5,384 units) whose land contract has been completed but not unsettled yet, including 3,652 studios, 1,485
family-types and 247 hotels.) The sum of land cost for the condominium business (included in inventory total) of A + B of 141,727 million yen is obtained by aggregating
real estate for sale (16,523 million yen) and real estate for sale in process (190,321 million yen) recoded in the balance sheet for 3Q of FY 2019/3,minus other land cost (30 million yen + 23,414 million yen = 23,444 million yen) and construction cost (11,634 million yen + 30,038 million yen =41,673 million yen).
* Other Land Cost includes real estate for rent, lands planned for sale and land acquisition-related costs for house sales.

6Outstanding Contracts & Prospects for Achievement of Sales Plan for FY 2019/3(condominium sale business) <As of December 31, 2018>■ Outstanding Balance of Contracts as of December 31, 2018

StudioFamily-type
Condo Bldg. Sales
Hotel Sales
Total

Total Outstanding
Balance of Contracts
A+B
Units
Amount(million yen)
2,021
39,4291,675
61,136
1,650
25,768814
21,773
6,160
148,107

As of the end of 3Q of the current period(December 31, 2018),
the combined amount of sales results
and sales to be posted has achieved up toBreakdown by Delivery Timing
During FY 2019/3
FY 2020/3 or later
Scheduled Delivery A
Scheduled Delivery B
98.6% of the revised forecast
Units
AmountUnits
Amount(annual sales).
(million yen)(million yen)
The amount of outstanding orders is the sum of424
7,788 1,597
31,640 completed sales contracts prices, proceeding in
164
5,604 1,511
55,531 the following status:• Under construction before delivery
115
1,587 1,535
24,181• Completed sales contracts• Uncompleted transfer of property (beforeーー
814
21,773buyers’ registration)
703
14,981 5,457
133,125

Outstanding orders are transferred to sales
when properties are completed and delivered
to customers in general.

■Progress on Sales Plan FY2019/3
Sales as of End of 3Q
FY2019/3

C
UnitsAmounts(million yen)

Of Outstanding Orders,Orders Scheduled for
Delivery in 4Q A

UnitsAmounts(million yen)

Sales Results & Sales to
Be Posted as of End of
3Q FY2019/3 D=C+A

UnitsAmounts(million yen)

Progress Compared to
Annual Sales Plan as of End of
3Q FY2019/3 EAmount(million yen)E
42,999Studio

1,883

34,202 ＋424

7,788 ＝

2,307

41,991 ÷

Family-type

1,839

68,933

1645,604

2,003

74,53875,673

Condo Bldg. Sales

765

10,872

115

1,587

880

12,45912,459Hotel Sales

980

17,625ーー

980

17,625

17,625

Total

5,467

131,634703

14,981

6,170

146,615

148,759

Progression
rate (%)
D/E

97.7%
98.5%
100.0%
100.0%
98.6%
7

Market Average Price of Condominiums (Comparison of Greater Tokyo and Kinki area)

Tokyo’s
23 wards
GreaterTokyoaverage

Market Average Price by Area

㎡ Unit Price by Area

(million yen)(thousand yen)

70.89

71.42

1,138
1,083

1,005

66.29
59.08

58.71

54.90

859793869772725

Kinki
area
averageOsaka
City

39.19

675

38.36

38.44

35.93

35.66

35.52

2016

2017

2018

616

630

2016

20176592018

 Price level in Kinki area: Actual demand is strong, and the price level is expected to stay in the demand range.
 m2 unit price : Still at an affordable price in Kinki area, though it is rising.

Source: “Condominium Market Trends in the Greater Tokyo” and “Condominium Market Trends in the Kinki Area”(summary of 2018) released by Real Estate Economic Institute Co., Ltd. on January 22, 2019
Note)

• Greater Tokyo (Shuto-ken) does not include the information of single-room condominium, but Kinki area does include.
• Prices include consumption tax (8%)

8Market trends in greater Kinki area
 Outline of “Condominium Market Trends in the Kinki Area (summary of 2018)” released by
Real Estate Economic Institute Co., Ltd. (Tokyo) on January 22, 2019 The number of condominium units newly started sellingin Kinki area
2017
19,5602018
20,9582018 average

76.1％

74.5％

2017

2018

change630

659

thousand yen

thousand yen

Up by 29 thousand yen(4.6%). Increase in 6
consecutive years.

changeIncreased by 1,398 (7.1%)

 Ratio by major areas in Kinki area

 Monthly contract rate (Kinki area)2017 average Unit price per ㎡ in Kinki area

Exceeded 70%, which is anindicator of good sales, thus
maintaining strong sales• 74.1% in the first half, 74.8% in the second half on average• Annualized average ratio for the Greater Tokyo area is 62.1%,
falling short of 70%. (66.7% in the first half, 58.9% in the second
half on average)

 Average price per unit in Kinki area (million yen)
20172018

change38.36
million yen38.44
million yen

Up slightly by 80 thousand yen(0.2%) (Down by 830 thousand
yen in the previous year)

Osaka Pref.

Kobe CityKyoto City

Total ofmajor cities

44.0％ 22.2％ 11.8％

6.1％

84.1％

Osaka city

(excl. OsakaCity)• The 4 major areas in the above table represent 84.1% of
the total units sold in Kinki area (20,958 units).
 Population flows into urban areas as the demand to livein central urban areas is growing.
 For 2019, new condo sales in the Kinki area are expected 9to be about 20,000 units, a decrease by 4.6% from 2018.
 Development of condos in the Osaka City bay area may
be accelerated due to the Osaka Expo to be held in 2025. ** Article referred to: “condominium sales in Kinki area up by 7.1% in2018, positive for two consecutive years,” from the Kansai
Economy page of The Nikkei on January 23, 20199Pressance Corporation Co., Ltd.
(Note) Prospective numbers listed in the earnings outlook and other materials are basedon information available at the time the documents were released and in large partcontain uncertain factors. The actual results may be different depending onchanges in business.
<For inquiries, contact>
IR Section of Business Planning Dept.,
Pressance Corporation Co., Ltd.
Tel: 06-4793-1650 (main), Fax: 06-4793-1651
E-mail: psc@pressance.co.jp