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.

November 13, 2020

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2021
<under J-GAAP>
Company name:
Listing:
Section code:
URL:
Representative:
Contact:

Pressance Corporation Co., Ltd.
First Section of the Tokyo Stock Exchange3254
http://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:
November 13, 2020
Scheduled starting date for dividend payments:
December 2, 2020
Preparation of supplementary quarterly materials for financial results:
Yes
Holding of quarterly financial results presentation meeting:No(Values of less than one million rounded down)

1.

Consolidated operating results for the first six months of the fiscal year ending March 31, 2021 (from
April 1, 2020 to September 30, 2020)(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%(1) Consolidated operating results (cumulative)
Net sales
Millions of yen
First six months of the fiscal
year ending March 31, 2021
First six months of the fiscal
year ended March 31, 2020
Note: Comprehensive income

135,4118.0

18,314 (22.6)

18,416 (21.3)

12,769 (18.5)

125,383
3.3
23,669 (8.2)
23,398 (8.5)
15,660 (10.0)
First six months of the fiscal year ending March 31, 2021: 12,802 million yen [(18.0) %]First six months of the fiscal year ended March 31, 2020: 15,619 million yen [(10.3) %]Basic earnings per
share
Yen

Diluted earnings per
share
Yen

198.33198.29252.10243.53

Total assets
Millions of yen
284,854
310,779

Net assets
Millions of yen
128,857
116,690First six months of the fiscal
year ending March 31, 2021
First six months of the fiscal
year ended March 31, 2020

(2) Consolidated financial position
As of September 30, 2021
As of March 31, 2020
Reference: Equity
As of September 30, 2021:
As of March 31, 2020

127,409 million yen
115,253 million yen

Equity ratio
%
44.7
37.1

2.

Dividends
1st quarter-end
Yen

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

Fiscal year ended March 31,
26.00
2020
Fiscal year ending March 31,
13.00
2021
Fiscal year ending March 31,
2021 (Forecast)
Note: Revisions to the dividends forecasts most recently announced: Yes

Annual total
Yen

-

13.00

39.00

-

13.00

26.00

For the revision to the dividends forecasts, please refer to “Notice Regarding Differences Between (Consolidated and NonConsolidated) Results Forecasts and Financial Results for Cumulative Second Quarter Period of Fiscal Year Ending March 2021
and Revision of (Consolidated and Non-Consolidated) Results Forecasts for Fiscal Year Ending March 2021and Regarding
Decision on (Interim) Dividend of Surplus and Revision of Fiscal Year-End Dividend Forecast” released on November 13, 2020.

3.

Forecasts of consolidated operating results for the fiscal year ending March 31, 2021 (from April 1,2020 to March 31, 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
234,496
4.7
26,728 (18.0)
26,433 (17.4)
18,239 (16.7)
283.11
Note: Revisions to the results forecasts most recently announced: Yes
For the revision to the results forecasts, please refer to “Notice Regarding Differences Between (Consolidated and NonConsolidated) Results Forecasts and Financial Results for Cumulative Second Quarter Period of Fiscal Year Ending March
2021andRevision of (Consolidated and Non-Consolidated) Results Forecasts for Fiscal Year Ending March 2021and Regarding
Decision on (Interim) Dividend of Surplus and Revision of Fiscal Year-End Dividend Forecast” released on November 13, 2020.

*
(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-year pretax income for thecurrent fiscal year, including the actual income figure for the first six 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: Noneb. Changes in accounting policies due to other reasons than a. above: Nonec. Changes in accounting estimates: None
d. Restatement after error corrections: None(4)

Number of issued shares (common stock)a. Number of issued shares at the end of each period (including treasury shares)
As of September 30, 2020
As of March 31, 2020

65,336,739 shares
65,198,961 sharesb. Number of treasury shares at the end of each period
As of September 30, 2020
As of March 31, 2020

866,594 shares
870,054 sharesc. Average number of shares during the period
First six months of the fiscal year ending March 31, 2021
First six months of the fiscal year ended March 31, 2020

64,383,325 shares
62,118,478 shares

Notes: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 2nd quarter of the fiscal year ending March 31, 2021 and 313,320 shares for the fiscal year ended
March 31, 2020). 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 outstanding shares during the period”(311,864 shares for the 2nd quarter of the fiscal year ending March 31, 2021 and 313,980 shares for the 2nd
quarter of the fiscal year ended March 31, 2020).
* Quarterly financial result reports by public accountants or auditing firms are 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 March 31,
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. (Japaneseversion only)1. Quarterly Qualitative Information(1) Business Results
During the first six months of the consolidated fiscal year ending March 2021, the Japanese economy
plummeted due to the impact of the COVID-19 pandemic, and the business environment remained challenging.
While there are signs of recovery, it is necessary to keep an eye on trends in the COVID-19 pandemic and its
impact on the economy.
In the real estate industry, the interest rates on housing loans remain low while the Japanese government’s
ongoing measures to support homebuyers, such as mortgage tax breaks, remain on track, and people havetended to move into the center of cities seeking the convenience of urban living. Although these and otherfactors are supporting the demand for condominiums, we should keep an eye on the impact of the COVID-19
pandemic.
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, as well as 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 six
months of the fiscal year ending March 31, 2021. Net sales amounted to 135,411 million yen (up 8.0% year onyear), operating profit amounted to 18,314 million yen (down 22.6% year on year), ordinary profits amounted
to 18,416 million yen (down 21.3% year on year) and profit attributable to shareholders of the parent company
amounted to 12,769 million yen (down 18.5% year on year).
An overview of operating results by product segment is as follows:

Real Estate Sale BusinessIn the real estate sales business, Pressance Loger Kashihara-Jingumae (114 units), a family-type condominium
in the Pressance Loger series, and Pressance Shin-OSAKA J's (220 units), a Pressance series studiocondominium, have performed favorably. The sales of studio condominiums amounted to 47,833 million yen(2,734 units), sales of family-type condominiums amounted to 63,079 million yen (1,756 units), sales of hotel
properties amounted to 5,380 million yen (150 units), sales of other types of housing amounted to 2,125
million yen (107 units), sales of other real estate amounted to 11,869 million yen, and business accompanying
real estate sales amounted to 866 million yen. Total sales of the real estate sales business posted 131,156
million yen (up 7.5% year on year) and, operating profit amounted to 17,817 million yen (down 23.5% year onyear).
Starting from the first three months of the fiscal year ending March 31, 2021, “sales of condominium
buildings” is included in “sales of studio condominiums.”
Since sales from the condominium business, our main business, are recorded on a delivery basis that is later
than completion, there may be fluctuation in the quarterly sales results depending on the timing of landacquisition, development plans and/or construction schedules.

Other Business
There was an increase in the rent revenue with a high occupancy rate of the owned real estate for rent. As aresult, the sales in other business amounted to 4,254 million yen (up 24.1% year on year) and operating profit
came to 1,251 million yen (up 11.3% year on year).

(2) Financial Position
Current Assets
Total current assets as of the end of the first six months of the fiscal year amounted to 268,761 million yen(down 9.2%), which represents a decrease of 27,305 million yen compared to the end of the previous fiscal
year. This was mainly due to a decrease in inventory of 55,458 million yen, while there was an increase in cash
and deposits of 29,539 million yen.

Fixed Assets
Total fixed assets as of the end of the first six months of the fiscal year amounted to 16,093 million yen (up9.4%), which represents an increase of 1,380 million yen compared to the end of the previous fiscal year. Thiswas mainly due to a 1,315-million-yen increase in real estate for rent as a result of the change of for-saleproperties to company-owned properties.

1Liabilities
Total liabilities as of the end of the first six months of the fiscal year amounted to 155,996 million yen (down
19.6%), which represents a decrease of 38,092 million yen compared to the end of the previous fiscal year.
This was mainly due to a 29,723-million-yen decrease in loans payable to banks, as well as a 5,279-millionyen decrease in advances received due to the delivery of condominiums, despite a 3,522-million-yen increase
in income taxes payable.

Net Assets
Total net assets as of the end of the first six months of the fiscal year amounted to 128,857 million yen (up10.4%), which represents an increase of 12,166 million yen compared to the end of the previous fiscal year.
This was principally due to the increase in retained earnings by 11,928 million yen because of the posting ofquarterly profit attributable to the shareholders of the parent company.

Analysis on Cash Flows
Cash and cash equivalents as of the end of the first six months of the fiscal year ending March 31, 2021, totaled
71,223 million yen (up 70.9%), which represents an increase of 29,539 million yen compared to the end of theprevious fiscal year.
The status and factors in each cash flow for the first six months of the fiscal year are as follows:

Cash Flows from Operating Activities
Net cash provided by operating activities came to 59,523 million yen (Compared with 7,129 million yen
provided in the first six months of the previous fiscal year).
This was mainly due to cash inflow resulting from a decrease in inventories by 53,358 million yen following
the delivery of condominiums and the posting of 18,679 million yen in profit before income taxes, while there
were cash outflows as a result of a decrease in advances received by 5,292 million yen following the deliveryof condominiums, a decrease in notes and accounts payable-trade by 4,795 million yen reflecting an increase in
the settlement of electronically recorded obligations-operating, a payment of income taxes of 2,064 million yen
and other factors.

Cash Flows from Investment Activities
Net cash provided by investment activities came to 471 million yen (Compared with 1,023 million yen used in
the same period of previous fiscal year).
This was principally due to the inflows that resulted from sales of non-current assets of 884 million yen, while
there were cash outflows resulting from loans to affiliates of 383 million yen.

Cash Flows from Financing Activities
Net cash used in financing activities came to 30,455 million yen (Compared with 4,527 million yen used in thesame period of the previous fiscal year).
The decrease was mainly due to the net decrease in bank loans by 29,723 million yen and the dividend
payment of 839 million yen, resulting in a decrease in capital.

(3) Explanation for the Forecast of Consolidated Financial Results ending March 31, 2021
Condominium sales, our major business, have a tendency to give an excessive skewness or deformations in a
specific quarter results due to the timing of delivery of condominium, since sale of condominium is to beposted on the basis of delivery of the condominium unit.
The Company had suspended full year forecasting for the fiscal year ending March 31, 2021; however, given
the actual results for the first six months of the fiscal year ending March 31, 2021, we decided to release thefull year results forecasts on the date of the release of this document. We also released dividends forecasts.
For the details, please refer to “Notice Regarding Differences Between (Consolidated and Non-Consolidated)
Results Forecasts and Financial Results for Cumulative Second Quarter Period of Fiscal Year Ending March
2021 and Revision of (Consolidated and Non-Consolidated) Results Forecasts for Fiscal Year Ending March
2021 and Regarding Decision on (Interim) Dividend of Surplus and Revision of Fiscal Year-End Dividend
Forecast” released on November 13, 2020.

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
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, 2020

As of September 30, 2020

44,774142
27,074217,964
293
5,817
－

74,313
95
19,857
169,816
199
4,560

296,066(82)
268,761

6,993
647
7,640
254
6,817
14,712
310,779

8,308
586
8,895
202
6,995
16,093284,854

324
8,923
1,904
71,1807,428
10,788254
6,514
107,318

79
4,457
4,283
67,792
10,951
5,508
273
4,672
98,01785,903196
669
86,770
194,088

57,190209
579
57,978
155,996

4,290
5,292
106,609(887)
115,306

4,380
5,382
118,538(883)
127,418

(1)
(50)
(52)
264
1,172
116,690
310,779

(3)
(5)
(9)
286
1,161
128,857
284,854

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)

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
methodCommission fee
Penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Provision of allowance for doubtful accounts
Commission fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary income

First six months of the fiscal
year ended March 31, 2020

First six months of the fiscal
year ending March 31, 2021

125,383
90,92934,453
10,783
23,669135,411
107,767
27,643
9,329
18,314

11
0
0

1
0
2

23
28
60
60
186

54
34
499
144
737

435
20
－

412
43

1
0
457
23,398

82
13
84
635
18,416

Gain on sales of non-current assets－

208

Gain on reversal of share acquisition rights－

54

Total extraordinary income
Profit before income taxes
Income taxes
Net income(Loss) attributable to non-controlling interests
Profit attributable to owners of parent－

263
18,6795,920
12,759(10)
12,76923,398
7,741
15,656(3)
15,6604

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)

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 of parent
Comprehensive income attributable to non-controllinginterests

5

First six months of the fiscal
year ended March 31, 2020

First six months of the fiscal
year ending March 31, 2021

15,656

12,759

2
(48)

(1)
45

10
(36)
15,619043
12,802

15,623

12,812(3)(10)

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)First six months of the fiscal
year ended March 31, 2020
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill

23,398239
50－

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 provision for directors’ retirement
benefits
Increase (decrease) in provision for share-based payment
Loss (gain) on sales of non-current assets

82
(2)
412
43

(23)
(8,645)
1,153
60
25

(54)
53,358(4,795)
129
19

(623)
30
－

15

55
(439)
143
12,95412(445)(5,391)
7,129

170
1,132
(1,832)
61,9912(406)(2,064)59,523(454)

Payments into time deposits

(500)

(1)

1
(1,023)37,142(37,856)75(1,434)(2,454)－(4,527)(3)
1,574
39,40040,974

6

(208)
(54)
(5,292)

Proceeds from sales of non-current assets
Purchase of investment securities
Payments of loans receivable from subsidiaries andassociates

Other
Net cash provided by (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－(2,911)

(69)
－

Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common shares
Cash dividends paid
Net increase (decrease) in short-term loans payable

18,679
139
50

(12)
435
18

－

Gain on reversal of share acquisition rights
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 (used in) operating activities
Cash flows from investing activities
Purchase of non-current assets

First six months of the fiscal
year ending March 31, 2021

(27)
884
(1)
(383)
－
－
471
3,645
(35,747)
116
(839)
2,379
(8)
(30,455)
029,53941,684
71,223Others(1) Actual orders
First six months of the fiscal year ended March 31, 2020 (from April 1, 2019 to September 30, 2019)
Name ofsegment

CategoryRealestate salebusiness

Studiocondominiums
Family-typecondominiums
Sale of hotel
property
Sale of othertype of housing
Sale of other realestateTotal amount of reportablesegments

Number ofunits

Total amount of contracts
Year onAmountyear(Millions of
(%)
yen)

Year onyear(%)

Outstanding balance of contracts
Year onAmountYear onNumber ofyear(Millions of
year
units
(%)
yen)
(%)

2,364

99.1

43,446

104.6

3,673

127.2

63,589

131.7

1,157

123.6

43,085

126.9

1,878

130.3

67,908

129.6

141

16.8

3,595

17.5

1,066

153.6

26,254

137.6

126

315.0

2,558

467.6

44

400.0

1,200

634.0

－

－

1,977

1,191.1

－

－

1,000

－

3,788

90.1

94,663

97.8

6,661

132.3

159,952133.4

First six months of the fiscal year ending March 31, 2021 (from April 1, 2020 to September 30, 2020)
Name ofsegment

CategoryRealestate salebusiness

Studiocondominiums
Family-typecondominiums
Sale of hotel
property
Sale of othertype of housing
Sale of other realestateTotal amount of reportablesegments

Number ofunits

Total amount of contracts
Year onAmountyear(Millions of
(%)
yen)

Year onyear(%)

Outstanding balance of contracts
Year onAmountYear onNumber ofyear(Millions of
year
units
(%)
yen)
(%)

2,452

103.7

38,363

88.3

3,189

86.8

51,087

80.3

844

72.9

33,316

77.3

1,144

60.9

45,952

67.7

37

26.2

1,700

47.3

457

42.9

10,176

38.8

149

118.3

3,302

129.1

85

193.2

2,406

200.6

－

－

9,582

484.7

－

－

2,685

268.6

3,482

91.9

86,266

91.1

4,875

73.2

112,308

70.2

Notes:
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 of 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. Starting from the first three months of the fiscal year ending March 31, 2021, “sale of condominium building”
is included in “studio condominiums.” For ease of comparison, the figures for the first six months of the fiscal
year ended March 31, 2020, have been recast to conform to the current presentation.
8. Amounts of contracts for sale of other real estate in the first six months of the fiscal year ended March 31,
2020, refer to land for development (1,335 million yen) and office buildings (641 million yen). The
outstanding balance of contracts refers to lands for development.
Amounts of contracts and the outstanding balance of contracts for sale of other real estate for the first six
months of the fiscal year ending March 31, 2021, refer to lands for development.

7

(2) Actual sales

Name ofsegment

First six months of the fiscal year ended March 31, 2020
(from April 1, 2019 to September 30, 2019)
Category

First six months of the fiscal year ending March 31,
2021(from April 1, 2020 to September 30, 2020)
Year onAmountYear onNumber ofyear(Millions of
year
units
(%)
yen)
(%)

Number ofunits

Year onyear(%)

Amount(Millions ofyen)Year on
year
(%)

2,833

132.3

53,428

143.7

2,734

96.5

47,833

89.5

1,402

85.5

52,764

85.1

1,756

125.2

63,079

119.5

129

13.2

3,050

17.3

150

116.3

5,380

176.4

101

273.0

1,815

374.5

107

105.9

2,125

117.0

－

－

10,177

6,130.8－－

11,869

116.6

－

－

719

67.6

－

－

866

120.6

4,465

93.1

121,955

102.9

4,747

106.3

131,156

107.5

Other

－

－

3,427

120.2

－

－

4,254

124.1

Total

4,465

93.1

125,383

103.3

4,747

106.3

135,411

108.0

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

Notes:
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 six months of the fiscal year ended March 31, 2020, refer to lands fordevelopment (9,535 million yen) and office buildings (641 million yen).
Sales of other real estate in the first six months of the fiscal year ending March 31, 2021, refer to lands fordevelopment.
7. Starting from the first three months of the fiscal year ending March 31, 2021, “sale of condominium building”
is included in “studio condominiums.” For ease of comparison, the figures for the first six months of the fiscal
year ended March 31, 2020, have been recast to conform to the current presentation.

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