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 6, 2019

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2020
<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: Shinobu Yamagishi, President and Representative Director
Contact:
Yutaka Doi, Vice President and Director
TEL: +81-6-4793-1650

Scheduled date of filing of quarterly securities report:
November 8, 2019
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 six months of the fiscal year ending March 31, 2020
(from April 1, 2019 to September 30, 2019)(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 six months of the fiscal
year ending March 31, 2020
First six months of the fiscal
year ended March 31, 2019
Note: Comprehensive income

125,383

3.3

23,669(8.2)

23,398(8.5)

15,660 (10.0)

121,350 83.2
25,777 134.6
25,583 138.5
17,402 140.4
First six months of the fiscal year ending March 31, 2020: 15,619 million yen [(10.3) %]First six months of the fiscal year ended March 31, 2019: 17,408 million yen [140.3 %]Basic earnings
per share
Yen

Diluted earnings
per shareYen

252.10243.53283.21271.24First six months of the fiscal
year ending March 31, 2020
First six months of the fiscal
year ended March 31, 2019(2) Consolidated financial position
Total assets
Millions of yen
313,251
301,942

As of September 30, 2019
As of March 31, 2019
Reference: Equity
As of September 30, 2019:
As of March 31, 2019:

Net assets
Millions of yen
108,980
94,618107,048 million yen
92,715 million yen

1Equity ratio
%
34.2
30.7

2.

Dividends
Annual dividends per share
1st
2nd
3rd
Year-endquarter-end quarter-end quarter-end
Yen
Yen
Yen
Yen

Fiscal year ended
17.50
23.00
March 31, 2019
Fiscal year ending
26.00
March 31, 2020
Fiscal year ending
26.00
March 31, 2020 (Forecast)
Note: Revisions to the dividends forecasts most recently announced: None

3.

Annual
total
Yen
40.50

52.00

Forecasts of consolidated operating results for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
Full year
209,21930.3
32,531
20.0
31,42918.5
21,52017.6
346.67
Note: Revisions to the results forecasts most recently announced: None

*
(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, 2019
As of March 31, 2019

63,043,721 shares
62,941,385 sharesb. Number of treasury shares at the end of each period
As of September 30, 2019
As of March 31, 2019863,744 shares
863,744 sharesc. Average number of shares during the period
First six months of the fiscal year ending March 31,2020First six months of the fiscal year ended March 31,2019

62,118,478 shares
61,445,940 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” (313,980 sharesfor the 2nd quarter of the fiscal year ending March 31, 2020 and the 313,980 shares for the fiscal year ended
March 31, 2019). 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”(313,980 shares for the 2nd quarter of the fiscal year ending March 31, 2020 and 313,980 shares for the 2nd2quarter of the fiscal year ended March 31, 2019).
* 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,
2020 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.
(Change in the unit of amount)
Although the amounts of accounts and other items reported in our quarterly consolidated financial statements
were previously shown in thousands of yen, they are shown in millions of yen from the first quarter and thecumulative first three months of the consolidated fiscal year ending March 31, 2020.
The figures for the previous consolidated fiscal year and the first six months of the previous consolidated
fiscal year are also shown in millions of yen for easy comparison.

3

1. Quarterly Qualitative Information(1) Business Results
During the first six months of the consolidated fiscal year ending March 31, 2020, the Japanese economy
remained on a gradual recovery track as consumer spending was fueled by improving income and employment
conditions.
In the real estate industry, on top of mounting construction costs, publicly assessed land values continued torise in Japan’s three largest cities of Tokyo, Osaka, and Nagoya, as well as in other large cities. Although thisand other factors remain causes for concern, the interest rates on housing loans remain low while the Japanese
government’s ongoing measures to help homebuyers, such as a mortgage tax breaks, are still on track,
contributing to a stable economy. The demand for condominiums has also remained healthy as more people
tend to move to cities seeking the convenience of urban living.
In these business circumstances, Pressance Corporation Co, Ltd. (the “Company”) has strived to purchase landfor business in the central part of the Kinki and Tokai/Chukyo regions and core regional cities, which are ourmajor sales areas, and focus on supplying condominiums in those areas.
Under such business condition, the Company posted the following consolidated performance for the first six
months of the fiscal year ending March 31, 2020, net sales amounted to 125,383 million yen (up 3.3% year onyear), operating profit amounted to 23,669 million yen (down 8.2% year on year), ordinary profits amounted to23,398 million yen (down 8.5% year on year) and profit attributable to shareholders of the parent company
amounted to 15,660 million yen (down 10.0% year on year).
While the results for the first six months of the fiscal year ending March 31, 2020 show a year-on-year increase
in revenue and a year-on-year decrease in profit, we have been on track with the full-year forecast for higher
revenue and profit, which we announced on May 10, 2019.
An overview of operating results by product segment is as follows:

Real Estate Sale Business
The real estate sales business enjoyed steady condominium unit sales at Pressance Loger Ogaki-ekimae, a 137unit condominium designed for families, and Pressance The Kobe, a condominium featuring 235 studio units,
etc. The sales of studio condominium amounted to 43,462 million yen (2,161 units), sales of family-typecondominium amounted to 52,764 million yen (1,402 units), sales of condominium building amounted 9,965
million yen (672 units), sales of hotel property amounted to 3,050 million yen (129 units), sales of other typeof housing amounted to 1,815 million yen (101 units), sales of other real estate amounted to 10,177 million yen,business accompanying real estate sales amounted to 719 million yen. Total sales of real estate sale businessposted 121,955 million yen (up 2.9% year on year) and, operating profit amounted to 23,276 million yen(down 8.2% year on year).
In regard to condominium sales, which is the Pressance Group’s core business, since sales of condominiums
are posted upon delivery following their completion, quarterly financial results may vary significantly
depending on land purchases, development plans, and construction periods.

Other Business
There was an increase in the rent revenue with a high occupancy rate of the owned real estate for rent. As
a result, sales in other business amounted to 3,427 million yen (up 20.2% year on year) and operating profit
came to 1,124 million yen (up 7.6% 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 292,246 million yen (up4.2%), which represents an increase of 11,654 million yen compared to the end of the previous fiscal year. Thiswas mainly due to a 9,253-million-yen increase in inventory as a result of actively acquiring land fordevelopment.

Fixed Assets
Total fixed assets as of the end of the first six months of the fiscal year amounted to 21,005 million yen (down
1.6%), which represents a decrease of 345 million yen compared to the end of the previous fiscal year. Thiswas mainly due to an 850-million-yen decrease in real estate for rent as a result of the change of companyowned properties to for-sale properties despite a 443-million-yen increase in long-term loans receivable from4

subsidiaries and associates.

Liabilities
Total liabilities as of the end of the first six months of the fiscal year amounted to 204,271 million yen (down
1.5%), which represents a decrease of 3,052 million yen compared to the end of the previous fiscal year. Thiswas mainly due to a 3,168-million-yen decrease in loans payable to banks, as well as a 2,922-million-yen
decrease in advances received due to the delivery of condominiums, despite a 2,455-million-yen increase inincome taxes payable.

Net Assets
Total net assets as of the end of the first six months of the fiscal year amounted to 108,980 million yen (up15.2%), which represents an increase of 14,361 million yen compared to the end of the previous fiscal year.
This was principally due to the increase in retained earnings by 14,225 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, 2020, totaled
40,974 million yen (up 4.0%), which represents an increase of 1,574 million yen compared to the end of theprevious fiscal year.
The status and factors in each cash flow for the second consolidated cumulative period of the fiscal year are as
follows:

Cash Flows from Operating Activities
Net cash provided by operating activities came to 7,129 million yen (Compared with 18,430 million yen
provided in the second quarter of the previous fiscal year).
This was mainly due to a cash inflow resulting from the posting of income before income taxes amounting to
23,398 million yen. On the other hand, there were cash outflows as a result of actively acquiring land fordevelopment, etc., which increased inventories by 8,645 million yen, a payment of income taxes totaling 5,391
million yen, as well as a 2,911-million-yen decrease in advances received due to delivery of condominiums.

Cash Flows from Investment Activities
Net cash used in investment activities came to 1,023 million yen (Compared with 1,253 million yen used in thesame period of previous fiscal year).
This was principally due to the outflows that resulted from payments into time deposits of 500 million yen andloans to affiliates of 454 million yen.

Cash Flows from Financing Activities
Net cash used by financing activities came to 4,527 million yen (Compared with 3,020 million yen provided in
the same period of previous fiscal year).
The main reason for this was a cash outflow resulting from a 3,168-million-yen net decrease in loans payable
to banks as well as a dividend payment totaling 1,434 million yen.

(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 beposted on the basis of delivery of the condominium unit.
Our business results in the second quarter of the fiscal year ending March 31, 2020 have been making soundprogress, and there is no change on our forecasts of consolidated financial results in the fiscal year released on
May 10, 2019.

5

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
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
Bonds with share acquisition rights
Long-term loans payable
Provision for directors’ retirement benefits
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 March 31, 2019

As of September 30, 2019

41,99064
9,603
225,302278
3,352
280,591

44,064141
12,651
231,506
279
3,602
292,246

15,251596
15,848332
5,170
21,350301,942

14,400598
14,999302
5,702
21,005313,251

117
7,085
9,920
44,547
5,417
11,503218
4,106
82,916

808
7,462
7,465
39,971
7,872
8,580
243
3,556
75,9603,500
120,119623
146
17124,407207,323

3,500
123,981
176
652
128,310204,271

2,404
3,406
87,777(887)
92,6992,476
3,478
102,002(887)
107,069

0
15
15
123
1,779
94,618301,942

2
(23)
(20)
155
1,775
108,980
313,251

(2)Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income(Millions of yen)First six months of the fiscal
year ended
March 31, 2019

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

121,350
86,78834,562
8,784
25,777125,383
90,92934,453
10,783
23,669

0
0
-

11
0
0

-

23

151
40
31
36
261

28
60
60
186

331

435

81

-

28
13
454
25,58320
10457
23,398

0
0

-

0
0
1
25,582
8,182
17,400(1)
17,402

23,398
7,741
15,656(3)
15,660Net 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
Financing expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
Net income
Loss attributable to non-controlling interests
Profit attributable to owners of parent

7

Quarterly Consolidated Statements of Comprehensive Income(Millions of yen)First six months of the fiscal
year ended
March 31, 2019

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

17,40015,656

0
6

2
(48)

-

10

7
17,408(36)
15,61917,409(1)

15,623(3)

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-controllinginterests8

(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 compensation 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
Loss on retirement of non-current assets
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 of loans receivable from subsidiaries and associates
Payments for investments in capital of subsidiaries and associates
Payments into time deposits
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
Proceeds from disposal of treasury shares
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 six months of the
fiscal year ended
March 31, 2019

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

25,582
234
50
(1)
331
(151)
81
3,472
(2,996)2
26
28
0
0(6,035)
669
1,007
484
22,7881(329)(4,029)18,43023,398
239
50
(12)
435
18
(23)
(8,645)
1,153
60
25
(623)
30
(2,911)
55
(439)
143
12,95412(445)(5,391)
7,129

(43)
0
(1)
(253)
(455)
(500)
0
(1,253)

(69)
(1)
(454)
(500)
1
(1,023)48,008(39,291)167(1,017)(4,892)46
3,020
27
20,22429,31449,53837,142(37,856)75(1,434)(2,454)(4,527)(3)
1,574
39,40040,974Others(1) Orders and salesa. Actual orders
First six months of the fiscal year ended March 31, 2019 (from April 1, 2018 to September 30, 2018)
Name ofsegment

Category

Studiocondominiums
Family-typecondominiums
Sale ofReal estate condominium
buildingsalebusiness
Sale of hotel
property
Sale of othertype of housing
Sale of otherreal estate
Total amount ofreportable segments

Numberof units

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

Year onyear (%)

Outstanding balance of contracts
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

1,575

142.0

30,569

157.1

1,439

239.0

27,891

264.5

936

87.3

33,963

85.2

1,441

58.9

52,385

55.3

811

93.9

10,983

89.3

1,448

120.9

20,385

124.7

840

344.3

20,597

490.6

694

106.0

19,080

164.4

40

114.3

547

54.0

11

47.8

189

26.6

-

-

166

7.9

-

-

-

-

4,202

126.3

96,826

122.6

5,033

102.2

119,932

89.5

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

Category

Studiocondominiums
Family-typecondominiums
Sale ofReal estate condominium
buildingsalebusiness
Sale of hotel
property
Sale of othertype of housing
Sale of otherreal estate
Total amount ofreportable segments

Numberof units

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

Year onyear (%)

Outstanding balance of contracts
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

1,471

93.4

27,812

91.0

1,548

107.6

28,492

102.2

1,157

123.6

43,085

126.9

1,878

130.3

67,908

129.6

893

110.1

15,634

142.3

2,125

146.8

35,096

172.2

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

159,952

133.4

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. The sale of condominium building refers to the method of wholesaling the whole or part of each condominium
building mainly to condominium dealers.
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. Amounts of contracts for sale of other real estate in the first six months of the previous fiscal year refers tolands for development.
Amounts of contracts for sale of other real estate in the first six months of this fiscal year refer to land fordevelopment (1,335 million yen) and office buildings (641 million yen). The outstanding balance of contracts
refers to land for development.
8. Number of units in total amount of contracts and the outstanding balance of contracts may fluctuate due tochange of business plan and others.

10

b. Actual sales

Name ofsegment

Category

Studiocondominiums
Family-typecondominiums
Sale ofcondominium
building
Real estate
Sale of hotel
sale
propertybusiness
Sale of othertype of housing
Sale of otherreal estateBusiness
accompanying
real estate sale
Total amount ofreportable segments

The first six months of FY ended March 31, 2019(from April 1, 2018 to September 30, 2018)
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

The first six months of FY ending March 31, 2020
(from April 1, 2019 to September 30, 2019)
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

1,638

126.0

29,780

133.4

2,161

131.9

43,462

145.9

1,639

241.0

61,985

259.5

1,402

85.5

52,764

85.1

503

61.1

7,392

55.3

672

133.6

9,965

134.8

980

1,361.1

17,625

1,673.4

129

13.2

3,050

17.3

37

194.7

484

93.7

101

273.0

1,815

374.5

-

-

166

7.9

-

-

10,177

6,130.8

-

-

1,062

213.5

-

-

719

67.6

4,797

165.6

118,498

185.8

4,465

93.1

121,955

102.9

Other

-

-

2,851

115.8

-

-

3,427

120.2

Total

4,797

165.6

121,350

183.2

4,465

93.1

125,383

103.3

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 condominium building refers to the method of wholesaling the whole or part of each condominium
building mainly to condominium dealers.
4. The sale of other type of housing refers to the sale of houses other than newly built condominiums, including
used houses and detached houses.
5. The sale of other real estate refers to the sale of real estate other than housing, including commercial stores andlands for development.
6. 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.
7. Sales of other real estate in the first six months of the previous fiscal year refer to lands for development.
Sales of other real estate in the first six months of this fiscal year refer to lands for development (9,535 million
yen) and office buildings (641 million yen).

※ Sales of family-type condominiums for the first six months of the fiscal year ending March 31, 2020 declined
year on year on a consolidated basis because a large number of family-type condominiums, including Pressance
Legend Biwako, a large-scale condominium, were completed and delivered during the first six months of theprevious fiscal year.

11※