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 11, 2020

Consolidated Financial Results
for the First Three Months of the Fiscal Year Ending March 31, 2021
<under J-GAAP>
Company name: Pressance Corporation Co., Ltd.
Listing:First Section of the Tokyo Stock Exchange
Section code:
3254
URL:
http://www.pressance.co.jp/
Representative: Yutaka Doi, President and Representative Director
Contact:
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 12, 2020
Scheduled starting date for dividend payments:
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 three months of the fiscal year ending March 31, 2021
(from April 1, 2020 to June 30, 2020)(Percentages indicate year-on-yearchanges 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 three months of the fiscal
year ending March 31, 2021
First three months of the fiscal
year ended March 31, 2020
Note: Comprehensive income

65,901(3.4)

11,906 (15.4)

11,962 (14.1)

68,240 (16.3)
14,066 (27.0)
13,926 (27.3)
9,603 (26.8)
First three months of the fiscal year ending March 31, 2021: 8,239 million yen [(13.8) %]First three months of the fiscal year ended March 31, 2020: 9,556 million yen [(27.4) %]Basic earnings
per share
Yen

Diluted earnings per
share
Yen

127.19127.15

154.69149.46

Total assets
Millions of yen
298,974
310,779

Net assets
Millions of yen
124,140
116,690First three months of the fiscal
year ending March 31, 2021
First three months of the fiscal
year ended March 31, 2020

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

1

8,181 (14.8)

122,659 million yen
115,253 million yen

Equity ratio
%
41.0
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
26.00
March 31, 2020
Fiscal year ending
March 31, 2021
Fiscal year ending
March 31, 2021 (Forecast)
Note: Revisions to the dividends forecasts most recently announced: None

Annual total
Yen

-

13.00

39.00

-

-

-

Note: According to the Article of Incorporation of the Company, the record dates for dividends are the end of the second quarterand the end of the fiscal year; however, at the time of the release of this document, the dividend forecast amounts for theserecord dates have yet to be determined. At the point when disclosure becomes possible, the Company will promptly release
the amount of the interim and year-end dividends for the fiscal year ending March 31, 2021.

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 ofMillions ofMillions ofMillions of yen
%
%
%
%
Yen
yen
yen
yen
Half year
102,288(18.4)
16,080(32.1)
15,469 (33.9)
10,665(31.9)
165.79Full year
Note: Revisions to the results forecasts most recently announced: None
Note: The impact of the COVID-19 outbreak is reflected in the consolidated results forecasts for the first half of the fiscal year
ending March 31, 2021 based on the information available to the Company at the time of disclosure; however, the forecasts
may change substantially. For the full fiscal year ending March 31, 2021, the consolidated results forecasts are not provided
given that, at the time of disclosure, it is difficult to rationally estimate the impact of the future influence of the virus
outbreak and the timing of when the epidemic will dissipate. At the point when estimation becomes possible, the Company
will promptly release the full year forecasts.

*
(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 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: 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 June 30, 2020
As of March 31, 2020

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

2

870,054 shares
870,054 sharesc. Average number of shares during the period
First three months of the fiscal year ending March 31,2021
First three months of the fiscal year ended March 31,2020

64,328,907 shares
62,077,641 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” (313,320 sharesfor the 1st 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”(313,320 shares for the 1st quarter of the fiscal year ending March 31, 2021 and 313,980 shares for the 1stquarter of the fiscal year ended March 31, 2020).
* Quarterly financial results report 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 5 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.

3

1. Quarterly Qualitative Information(1) Business Results
During the first three months of the consolidated fiscal year, the Japanese economy plummeted due to the impactof the COVID-19 pandemic, and the business environment remained challenging.
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 more people havetended to move into the center of cities seeking the convenience of urban living. Although these and other factors
are supporting the demand for condominiums, the outlook is uncertain due to the impact of the COVID-19
pandemic.
In these business circumstances, Pressance Corporation Co, Ltd. (the “Company”) has focused on supplying
condominiums in selected areas in the central part of major cities in the Kinki and Tokai/Chukyo and other coreregions, which are our major sales areas.
Under such business condition, the Company posted the following consolidated performance for the first threemonths of the fiscal year ending March 31, 2021: net sales amounted to 65,901 million yen (down 3.4% year
on year), operating profit amounted to 11,906 million yen (down 15.4% year on year), ordinary profit
amounted to 11,962 million yen (down 14.1% year on year) and profit attributable to shareholders of the parent
company amounted to 8,181 million yen (down 14.8% 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 Kyoto Nishioji Gojo (64 units), a family-type condominium
in the Pressance Loger series, and Pressance OSAKA DOMECITY BEATS (154 units), a Pressance series
studio condominium, have performed favorably.
However, as economic activities have been constrained by the COVID-19 pandemic, the Company’s businesshas also been impacted, resulting in a significant decline in the sales of studio condominiums, among others.
The sales of studio condominium amounted to 17,413 million yen (1,018 units), sales of family-typecondominium amounted to 42,668 million yen (1,202 units), sales of other type of housing amounted to 824
million yen (38 units), sales of other real estate amounted to 2,302 million yen, business accompanying realestate sales amounted to 509 million yen. Total sales of real estate sale business posted 63,719 million yen(down 4.2% year on year) and, operating profit amounted to 11,595 million yen (down 15.5% year on year).
Starting from the first three months of the fiscal year ending March 31, 2021, “sales of condominium building”
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 thancompletion, there may be fluctuation in the quarterly sales results depending on the timing of land acquisition,
development plans and/or construction schedules.

Other Business
The sales of other business, such as the Rental property business and the Real estate management fee business,amounted to 2,182 million yen (up 25.9% year on year) due to an increase in rents revenue with an increase inguaranteed rent properties, while segment profit amounted to 676 million yen (down 2.7% year on year) due toan increase in rent payments related to rent guarantees.

(2) Financial Position
Current Assets
Total current assets as of the end of the first three months of the fiscal year amounted to 284,230 million yen(down 4.0%), which represents a decrease of 11,836 million yen compared to the end of the previous fiscal
year. This was mainly due to a decrease in inventory of 16,524 million yen, while there was an increase in cash
and deposits of 3,990 million yen.

Fixed Assets
Total fixed assets as of the end of the first three months of the fiscal year amounted to 14,743 million yen (up0.2%), which represents an increase of 31 million yen compared to the end of the previous fiscal year. This
increase was mainly due to an increase in loans to affiliates of 381 million yen, while there was a decrease inreal estate for rent by 337 million yen, selling a self-owned real estate for rent.

4

Liabilities
Total liabilities as of the end of the first three months of the fiscal year amounted to 174,833 million yen (down
9.9%), which represents a decrease of 19,255 million yen compared to the end of the previous fiscal year. Thiswas mainly due to decreases in “Loan payable to bank” of 10,958 million yen and “Advances received” of
5,422 million yen along with the delivery of the condominiums.

Net Assets
Total net assets as of the end of the first three months of the fiscal year amounted to 124,140 million yen (up6.4%), which represents an increase of 7,499 million yen compared to the end of the previous fiscal year. Thiswas principally due to the increase in retained earnings by 7,341 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 three months of the fiscal year ending March 31, 2021,
totaled 45,674 million yen (up 9.6%), which represents an increase of 3,990 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 year are as follows:

Cash Flows from Operating Activities
Net cash provided by operating activities came to 15,857 million yen (Compared with 7,184 million yen
provided in the first quarter of the previous fiscal year).
This was mainly due to cash inflow resulting from a decrease in inventories by 16,530 million following thedelivery of condominiums and the posting of 11,962 million yen in profit before income taxes, while there
were cash outflows as a result of a decrease in advances received by 5,435 million yen following the deliveryof condominiums and a decrease in notes and accounts payable - trade by 3,956 million yen reflecting an
increase in the settlement of electronically recorded obligations - operating.

Cash Flows from Investment Activities
Net cash used in investment activities came to 90 million yen (Compared with 104 million yen used in thesame period of the previous fiscal year).
The decrease was mainly due to cash outflows by 383 million yen of loans to affiliates, while there were cash
inflows by 302 million yen of revenue from the sale of fixed assets.

Cash Flows from Financing Activities
Net cash used in financing activities came to 11,776 million yen (Compared with 12,679 million yen used in
the same period of the previous fiscal year).
The decrease was due to the net decrease in bank loans by 10,958 million yen and the dividend payment of 818
million yen, resulting in a decrease in capital.

(3) Explanation for the Forecast of Consolidated Financial Results ending March 31, 2020
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 be postedon the basis of delivery of the condominium unit.
With respect to the results forecasts, it is extremely difficult to foresee the magnitude of the impacts caused by
the COVID-19 outbreak and the timing of when the epidemic will dissipate, and uncertainty is clouding the
economic and market outlook. Under such circumstances, it is difficult to rationally estimate the results forecasts.
Therefore, the Company has suspended full year forecasting for the fiscal year ending March 31, 2021 but isannouncing forecasts limited to the first half of the fiscal year, for which we can obtain a relatively clearer picture.
At the point when estimation becomes possible, we will promptly release the results forecasts for the full fiscal
year.

5

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Real estate for sale
Real estate for sale in process
Raw materials and supplies
Other
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

6

As of June 30, 2020

44,774142
27,074217,964
293
5,817
296,066

48,764196
31,385
197,185236
6,461
284,230

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

6,655
597
7,253
225
7,264
14,743298,974

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

864
4,638
5,610
65,90910,830
5,365
370
3,909
97,49985,903196
669
86,770
194,088

76,511
196
626
77,334
174,833

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

4,290
5,292
113,951(887)
122,647

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

(2)
14
11
315
1,166
124,140
298,974(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
Commission fee
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes
Net income(Loss) attributable to non-controlling interests
Profit attributable to owners of parent

7

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

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

68,24048,43619,804
5,737
14,06665,901
48,935
16,966
5,060
11,906

0
0
0
31

0
0
1
11

13
34
30
110

21
240
88
364

227
23
0
0
250
13,926
13,926
4,324
9,601
(1)
9,603

209
14
0
83
307
11,962
11,962
3,786
8,176
(5)
8,181

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

8

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

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

9,601

8,176

1
(49)

(1)
46

2

18

(45)
9,556

63
8,239

9,557
(1)

8,245
(5)

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
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 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
Proceeds from sales of non-current assets
Purchase of investment securities
Payments for investments in capital of subsidiaries andassociates
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
Cash dividends paid
Net increase (decrease) in short-term loans payable
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

9First three months of the
fiscal year ended
March 31, 2020

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

13,926
118
25
(0)
227
20

11,962
66
25
(1)
209
14

(31)

(11)

579
(381)
－

16,530(3,956)
60

82

116

(623)

－

(1,806)(5,435)

59

280

(178)
592
12,6100(204)(5,221)
7,184

148(3,690)16,320
1
(211)
(252)
15,857

(49)
－

(8)
302

(0)

(0)

(54)

(383)

(104)

(90)

15,226(26,572)(1,409)77(12,679)(4)(5,602)39,40033,797948(15,612)
(818)
3,706
(11,776)
0
3,990
41,68445,674Others(1) Orders and salesa. Actual orders
First three months of the fiscal year ended March 31, 2020 (from April 1, 2019 to June 30, 2019)
Name ofsegment

CategoryRealestate salebusiness

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

Number ofunits

Total amount of contracts
AmountYear on(Millionsyear (%)
of yen)Year onyear (%)

Outstanding balance of contracts
AmountNumber ofYear onYear on(Millionsunits
year (%)
year (%)
of yen)883

59.7

17,269

71.0

3,345

137.3

58,604

151.5

604

144.8

22,448

145.2

2,016

144.3

73,901

144.9

126

26.5

2,050

16.1

1,054

98.5

25,708

106.2

60

333.3

1,170

509.4

36

600.0

867

721.2

－

－

976

594.2

－

－

5,176

－

1,673

70.0

43,914

83.0

6,451

131.4

164,258

144.1

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

Category

Studiocondominiums
Family-typecondominiums
Real
Sale of hotel
estate sale
propertybusiness
Sale of othertype of housing
Sale of otherreal estate
Total amount ofreportable segments

Number ofunits

Total amount of contracts
AmountYear on(Millionsyear (%)
of yen)Year onyear (%)

Outstanding balance of contracts
AmountNumber ofYear onYear on(Millionsunits
year (%)
year (%)
of 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

119,331

72.6

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 stores andlands 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 three months of the fiscal
year ended March 31, 2020 have been recast to conform to the current presentation.
8. The total amount of contracts for the sale of hotel property in the first three months of the fiscal year ending
March 31, 2021 turned out to be negative as a result of cancellation during the first three months under reviewof the sale contracts recorded in or before the fiscal year ended March 31, 2020.
9. The contract amounts of other real estate sales for the first three months of the previous fiscal year are related toland for development (335 million yen) and office buildings (641 million yen), while outstanding contract
amounts are related to land for development (4,535 million yen) and office buildings (641 million yen).
Amounts of contracts and the outstanding balance of contracts for sale of other real estate for the first threemonths of the fiscal year ending March 31, 2021 refer to lands for development.

10

b. Actual sales

Name ofsegment

Category

Studiocondominiums
Family-typecondominiums
Sale of hotel
Real estate property
sale
Sale of otherbusinesstype of housing
Sale of otherreal estateBusiness
accompanying
real estate sale
Total amount ofreportable segments

The first three months of FY ended March 31, 2020
(from April 1, 2019 to June 30, 2019)
AmountNumber ofYear onYear on(Millionsunits
year (%)
year (%)
of yen)The first three months of FY ending March 31, 2021
(from April 1, 2020 to June 30, 2020)
AmountNumber ofYear onYear on(Millionsunits
year (%)
year (%)
of yen)

1,680

99.7

32,235

109.1

1,018

60.6

17,413

54.0

711

61.1

26,135

58.3

1,202

169.1

42,668

163.3

126

52.5

2,050

44.5

－

－

－

－

43

215.0

760

321.6

38

88.4

824

108.4

－

－

5,000

3,041.4

－

－

2,302

46.1

－

－

325

84.2

－

－

509

156.5

2,560

82.3

66,506

83.3

2,258

88.2

63,719

95.8

Other

－

－

1,734

100.8

－

－

2,182

125.9

Total

2,560

82.3

68,240

83.7

2,258

88.2

65,901

96.6

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 stores andlands for development.
5. Business accompanying real estate sale includes income from post-delivery optional construction work such as
floor coating and income from intermediation fees from real estate sales.
6. Other real estate sales for the first three months of the previous fiscal year and for the first three months of the
fiscal year ending March 31, 2021 are related to land 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 three months of the fiscal
year ended March 31, 2020 have been recast to conform to the current presentation.

11