Presentation material for FY March 2019 financial results
I.

Summary of financial results for FY March 2019

II.

Upward revision to the Mid-term Business Plan and outlook for FY 2020

III. Accelerate business growth by utilizing ReTech

Released in May 2019

Pressance Corporation Co., Ltd.
Securities Code:3254 (TSE 1st Section)• “JPX Nikkei Index 400” component• “JPX Nikkei Mid and Small Cap Index” component

I.

Summary of financial results for FY March 2019

Consolidated Income Statement Summary• Operating profit, Ordinary Profit, and Net income growth of 10% or more year-on-year for nine consecutive fiscal years• Recorded the highest sales and profits in the past (operating profit for FY 2019/3 increased by 33.2% year-on-year)【million yen】

FY 2018/3

FY 2019/3

ResultAmountA

ResultRatio to sales

AmountB

Ratio to sales

YoY
B/A

Upwardly Revised Plan
AmountAchievement
C
ratio B/C

134,059

100.0%

160,580

100.0%

119.8%

157,851101.7%

Cost of Goods Sold

99,575

74.3%

116,37872.5%

116.9%

113,852102.2%

Gross Margin

34,48425.7%

44,201

27.5%

128.2%

43,998100.5%

SG&A Expenses

14,121

10.5%

17,08210.6%

121.0%

16,984100.6%

Operating Profit

20,36215.2%

27,11816.9%

133.2%

27,014100.4%

Ordinary Profit

19,85814.8%

26,531

16.5%

133.6%

26,248101.1%Net Income

13,757

10.3%

18,29611.4%

133.0%

17,856102.5%

Sales

Attributable to Owners of Parent

Year-on-Year change:• Sound sales progress pushed up sales result by 26,520 million yen.
• Gross margin rose by 1.8 pt. due to the increased ratio of profitable products to entire sales.
• Gross margin increased by 9,717 million yen, offsetting the increase in SG&A expenses of 2,961
million yen, increasing operating profit by 6,756 million yen

Changes from the initial plan:

Sales, operating profit, and net income increased by 8,108 million yen, 2,577 million yen, and 2,163
million yen, respectively.
Changes from the revised plan: Sales, operating profit, and net income increased by 2,728 million yen, 104 million yen, and 439
million yen, respectively.
3

Sales by Major Products in Condominium Sales Business【million yen】
FY 2018/3

FY 2019/3

ResultResult# of unitsa

YoY

AmountA

YoY

Studio Condo

1,726

91.2%

29,707

91.5%

Family-type
Condo
Condo Building
Sales *

1,860 120.5%

71,156141.0%

1,246 138.4%

19,318161.4%

2,744

NA

Hotel Sales
Total

183

NA

5,015 115.7% 122,926 129.6%# of unitsb

AmountB

YoY
B/A

AmountC

Achievement
ratio Ｂ/C

2,363 136.9%

43,011144.8%

42,999100.0%

2,078 111.7%

77,375108.7%

75,673102.2%

70.6%

12,45964.5%

12,459100.0%

980 535.5%

17,625642.3%

17,625100.0%

6,301 125.6% 150,472 122.4% 148,759

101.2%

880

YoY
b/a

Upwardly Revised Plan

Year-on-Year change: Sound sales progress pushed up sales result by 1,286 units with an amount of 27,546 million yen• Studio condo:
Up by 637 units and sales up by 13,304 million yen• Family-type condo:
Up by 218 units and sales up by 6,218 million yen• Condo building sales:
Down by 366 units and sales down by 6,858 million yen• Hotel sales:
Up by five buildings (797 units) and sales up by 14,881 million yen
Changes from the initial plan:• Plan for family-type condo sales• Plan for hotel sales

Up by 3,347 million yen from 74,027 million yen
Up by 2,195 million yen from 15,429 million yen

Changes from the revised plan:• Plan for family-type condo sales

Up by 1,701 million yen from 75,673 million yen* Condominium building sales: To sell the whole or part of a condominium building wholesale primarily to other condominium dealers4Consolidated Balance Sheet Summary
As of March 31, 2017
Result(million yen)

Current Assets
real estate for salereal estate for sale in process

Non-current Assets
Total Assets
Current Liabilities
short-term liabilities with interest

Non-current Liabilities
long-term liabilities with interest

Total Liabilities
Total Net Assets
Total Liabilities and Net Assets

171,810
14,324
122,174
13,497
185,307049,43825,41076,25375,691
125,691
59,615
185,307

Composition
ratio

92.7%
7.7%
65.9%
7.3%
100.0%
0
26.7%
13.7%
41.1%
40.8%
67.8%
32.2%
100.0%

As of March 31, 2018
Result(million yen)

227,161
11,275
180,461
18,237245,399
067,53740,473
102,689
102,021
170,226
75,172
245,399

Composition
ratio

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

As of March 31, 2019
Result(million yen)

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

Composition
ratio

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

Change(million yen)

53,430▲ 1,672
44,8403,112
56,5430

15,37913,994
21,717
21,59737,096
19,44656,543

With the adoption and application of the “Partial Amendment to Accounting Standard for Tax Effect Accounting” from the beginning of the fiscal year
ended March 2019 under review, Current Assets and Non-current Assets as of the end of FY 2018/3 are retroactively adjusted.

Major factors for changes: Changes from the end of March 2018
Current assets:
Non-current assets:

Real estate for sale down by 1,672 million yen, real estate for sale in process up by 44,840 million yen
Real estate for rent (net) up by 1,315 million yen (newly owned five properties and transfer three to Real estate
for sale)Liabilities:
Bank loans payable up by 38,492 million yen
Net assets:
Recorded net income of 18,296 million yen for the fiscal year under review* As for inventory in red frame, refer to the next page for details.
5Land Inventory <As of March 31, 2019>
Breakdown of the number in the red frameon the previous page
Real Estate for Sale
Land Cost for Condominium Biz A
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
Studio Condominium
Family-type Condominium
Condominium Building Sales
Hotel Sales

A + B

Amount(million yen)

9,603
2,653
2
6,947
225,302
159,300
20,50045,500Land inventories of condominium business(million yen)
134,210102,055 106,172'17/9

Amount(million yen)Units161,954
54,25575,767
18,881
13,04924,625
11,159
8,074
3,699
1,693

'17/12

161,954
141,727

116,662 119,255

'18/3

'18/6

'18/9

'18/12'19/3

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 FY March 2022
Procured the lands for scheduled delivery up to FY March 2022

✓ Properties with a site settled (completed registration in the Company’s name) are classified as inventory.
(In addition, there are 55 buildings with 4,027 units whose land sales contract has been completed but not settled yet. Of these, studio condos account for
3,070 units, and family-type condos account for 957 units.)✓ The sum of land cost for the condominium business (included in inventory total) of A + B of 161,954 million yen is obtained by aggregating real estate
for sale (9,603 million yen) and real estate for sale in process (225,302 million yen), minus other land cost (2 million yen + 20,500 million yen = 20,503
million yen) and construction cost (6,947 million yen + 45,500 million yen = 52,448 million yen), recoded in the balance sheet for FY 2019/3.
* Other land cost includes acquisition-related costs for real estate planned to be owned, planned land for sale, and residential house sales business, etc.

6

Our Ranking in the Market (Based on the Number of Units Supplied in 2018)
Actual supply of condo units from Jan. 1 to Dec. 31, 2018 (on a launch basis)
Prepared by Pressance Corporation using data from the research of the Real Estate Economic Institute Co., Ltd.
Area
Our ranking
Units supplied by ourcompany
Total units supplied in
the area
Our market share *# of units
distributed
by top 5
companies

Kinki

Tokai/Chukyo

Nationwide

1st(for 9 consecutive years)

1st(for 7 consecutive years)

2nd(for 2 consecutive years)

4,133

1,019

5,267

20,9585,115

80,256

19.7%

19.9%

6.6%

1st

Pressance
Corporation Co., Ltd.

2nd

Nihon Eslead
Corporation

3rd

Nissho Estem Co., Ltd.

4th
5th

Hankyu Hanshin
Properties Corp.
Kintetsu Real EstateCo., Ltd.

Pressance
Corporation Co., Ltd.
Nomura Real Estate
2,401 Development Co.,
Ltd.

1,019

Sumitomo Realty &Development Co., Ltd.

7,377

425

Pressance Corporation
Co., Ltd.

5,267

1,053 Daikyo Incorporated

270

Nomura Real Estate
Development Co., Ltd.
Mitsubishi Estate
253
Residence Co., Ltd.
Mitsui Fudosan
228
Residential Co., Ltd.

5,224

4,133

Shizuoka Railway
Co., Ltd.
Takara Leben Co.,
734
Ltd.
966

3,614
3,198

* Calculated by Pressance Corporation using data from the research of the Real Estate Economic Institute Co., Ltd.
7

Quarterly Transition of Received Orders (on a Contract Basis) by Major Categories【million yen】
FY 2019/3
1Q Result

2Q Result

3Q Result

4Q Result

Total

Studio Condo

15,015

15,553

15,95813,52260,050

Family-type Condo

15,45718,505

15,69924,89374,556

Condo building sales

9,309

1,673

8,862

5,246

25,092

12,704

7,893

2,692

3,935

27,225

394

319

5,796

5,959

12,46952,881

43,94449,01053,557

199,395

Hotel Sales
Others
Total
Orders received

Orders for FY 2019/3 remained sound throughout the year.
Total orders increased by 49,017 million yen or 32.6% YoY from 150,377 million yen for FY 2018/3.

Studio condo:

Orders remained at a high level throughout the year, though 4Q orders decreased from 3Q.
The total orders largely increased by 16,662 million yen or 38.4% YoY from 43,388 million yen.

Family-type condo:

4Q orders largely increased by 9,194 million yen quarter-on-quarter. Orders were acquired constantly
throughout the year.

Condo building sales: Orders were acquired constantly. Total orders increased by 6,402 million yen or 34.3% from 18,690
million yen YoY.

Hotel sales:

Orders were acquired constantly. Total orders increased by 16,834 million yen or 162.0% from 10,391
million yen YoY.

Others:3Q and 4Q orders increased due to the decision to sell a land acquired for a condo site with a favorable
deal before construction started.
8

II. Upward revision to the Mid-term Business Planand outlook for FY 2020
• FY March 2020
(from April 2019 to March 2020, the 2nd year of the Mid-term Business Plan)• FY March 2021
(from April 2020 to March 2021, the 3rd year of the Mid-term Business Plan)

Revised up 2nd & 3rd years of the Mid-term Business Plan (For 3-Years, FY 2019/3 to FY 2021/3)【million yen】
FY 2019/3(1st year of the Plan)
Results
AmountA

Composition
ratio

FY 2020/3(2nd year of the Plan)
Upwardly Revised Plan
AmountB

Composition
ratio

YoY
B/A

FY 2021/3(3rd year of the Plan)
Upwardly Revised Plan
Changesfrom theplan before
revision

AmountC

Composition
ratio

YoY
C/B

Changesfrom theplan before
revision

Sales

160,580 100.0% 209,219 100.0% 130.3%

5,148 250,960 100.0% 120.0%

3,101

Cost of Goods Sold

116,378

72.5% 154,940

74.1% 133.1%▲447 190,355

75.9% 122.9%▲988

Gross Margin

44,201

27.5%

54,278

25.9% 122.8%

5,595

60,604

24.1% 111.7%

4,089

SG&A Expenses

17,082

10.6%

21,746

10.4% 127.3%

1,152

24,1699.6% 111.1%▲316

Operating Profit

27,11816.9%

32,531

15.5% 120.0%

4,443

36,434

14.5% 112.0%

4,405

Ordinary Profit

26,531

16.5%

31,429

15.0% 118.5%

4,380

35,108

14.0% 111.7%

4,370

Net Income

18,296

11.4%

21,520

10.3% 117.6%

3,021

23,984

9.6% 111.4%

3,001

Attributable to Owners of Parent

Both sales and profit for FY 2019/3 (1st year) exceeded the initial plans.
Plans for FY 2020/3 (2nd year) and FY 2021/3 (3rd year) have been revised upward as sales are expected to remain strong.
• Plan for FY 2020/3 (2nd year) have been replaced with those for FY 2021/3 before upward revision, to be achieved a year ahead ofschedule: operating profit of 32,028 million yen; ordinary profit of 30,737 million yen; and net income of 20,982 million yen.
• We also plan to continue steady growth for FY 2021/3 (3rd year).
We forecast that we will attain the management target of 10% or more operating profit growth YoY for both FY 2020/3 and FY 2021/3.

10Revised Sales Plan by Product Category in the Mid-term Business Plan【million yen】
FY 2019/3(1st year of the Plan)
ActualAmountA

Composition
ratio

FY 2020/3(2nd year of the Plan)
Upwardly Revised Plan
AmountB

Composition
ratio

YoY
B/A

Studio Condo

43,011

26.8%

70,901

33.9% 164.8%

Family-type Condo

77,37548.2%

74,757

35.7%

Condo Building Sales

12,4597.8%

24,715

11.8% 198.4%

Hotel Sales

17,625

11.0%

18,292Others10,107

6.3%

20,552Total

FY 2021/3(3rd year of the Plan)
Upwardly Revised Plan
Changes fromthe plan before
revision

AmountC

Changes fromthe plan before
revision

Composition
ratio

YoY
C/B

28.2%

99.8%

6,286

21,18870,765

96.6% ▲23,846

120,037

47.8% 160.6%▲8,6384,224

29,238

11.7% 118.3%

6,695

8.7% 103.8%▲4,23917,888

7.1%

97.8%

▲3,495

9.8% 203.3%

7,822

13,032

5.2%

63.4%

2,254

160,580 100.0% 209,219 100.0% 130.3%

5,149

250,960 100.0% 120.0%

3,102

Major details of upward revision
FY 2020/3• Sales of studio condo increased significantly from the result for FY 2019/3 (by 64.8%)• Sales of family-type condo generally continue to be flat from FY 2019/3.
FY 2021/3• Sales of family-type condo increased significantly from the plan for FY 2020/3 (by 60.6%)• Sales of studio condo generally continue to be flat from the plan for FY 2020/3
Cond buildings sales: Continued on an upward trend
Hotel sales: generally continue to be flat. Sales will peak out in FY 2021/3 in the current prospect.
11

Projection of achievement of sales plan for the current fiscal year and the status oforders (on a contract basis) <As of April 1, 2019>• As of the beginning of FY 2020/3 (April 1, 2019), the planned sales to be posted have achieved up to 73.3% of the Plan (annual sales) incondo sales, other residential houses and real estate business.
• Outstanding orders on April 1 amount to 186,525 million yen, an increase of 45,983 million yen or 32.7% YoY from 140,541 million yen.
Outstanding Balance of Orders as of April 1, 2019
Total Outstanding Balanceof contracts

A+B

Category
Units

2,238
2,123
1,904
1,054

StudioFamily-type
Condo Bldg. Sales
Hotel Sales
Sales of other residential
houses and real estate

19
7,338

Total

Amount(million yen)

Breakdown by delivery timing
Scheduled Delivery
Scheduled Delivery
During FY 2020/3 A
From FY 2021/3 B
Units
AmountUnits
Amount(million yen)(million yen)

44,142 2,238
77,588 1,503
29,428 1,318
25,708664

44,142
55,713
21,347
16,242

0
620
586
390

0
21,875
8,080
9,466

9,657

9,657

0

0

147,102 1,596

39,422

19

186,525 5,742

As of the beginning of FY 2020/3(April 1, 2019),
orders of 147,102 million yen to besales for FY2020/3 have been alreadyreceived and secured up to73.3%
of the sales plan of 200,702 million yen
for FY 2020/3 in condo sales, other realestate and residential houses business

Progress on Outstanding Orders as of April 1, 2019 (FY March 2020)
Category

Scheduled Delivery
Sales Plan for FY 2020/3
During FY 2020/3
Units
Amount A Amount C Progression(million yen) (million yen) Rate A/C

Studio2,238

44,14270,901

62.3%

Family-type

1,503

55,71374,757

74.5%

Condo Bldg. Sales

1,318

21,347

24,715

86.4%

664

16,242

18,292

88.8%

19

9,657

12,035

80.2%

5,742

147,102200,702

73.3%

Hotel Sales
Sales of other residential houses and real estate
Total

Note: The amount of outstanding orders is the sumof property contract proceeds in thefollowing status.
• Buildings mainly under construction andyet to be delivered• Completed sales contracts• Uncompleted transfer of property (before
buyers’ registration)
Normally, outstanding orders are transferred
to sales when properties are completed anddelivered to customers.

12

Dividend History and Policy➢

Annual dividend per share
FY 2019/3: 40.5 yen per share (increased by 11.1 yen, dividend payout ratio of 13.7%)=> FY 2020/3: 52.0 yen per share (increased by 11.5 yen, dividend payout ratio of 15.0%)
Dividend policy (reference)• Expand the fund of dividend by increasing operating profit at an annual rate of 10% or greater every fiscal year
• Dividend payout ratio: Progressively raise the ratio to 20% by FY 2023/3• Total dividend amount: An increase of 15% or more year-on-year

Record date

Annual dividend

Dividend
growth rate
YoY

2Q

Year-end

Total¥26.00¥26.00¥52.00

28.4%

NA

15.0%

FY2019¥17.50¥23.00¥40.50

37.8%

2,524

13.7%

FY2018¥12.50¥16.90¥29.40

39.0%

1,762

12.6%

FY2017¥8.75¥12.40¥21.15

41.0%

1,250

11.8%

FY2016¥0.00¥15.00¥15.00

20.0%

882

9.8%

FY2020(Forecast)¥346.67EPS
DPS

Dividend
Total dividend(million yen) payout ratio¥296.43¥232.58¥152.31¥52.00¥178.99¥40.50 Mid-term¥26.00¥29.40¥15.00Note: A 4-for-1 share split of its common shares was conducted as of October 1, 2016.
The figures in the above table take the share split into account.

FY '16Year-end¥26.00¥21.15

FY '17

FY '18FY '19FY '20
Forecast

Shareholder benefits (partly renewed from FY 2020/3)
FY 2019/3(To be delivered in
the end of June 2019)

100 shares ormore and lessthan 400 shares
400 sharesor moreVJA Gift Card worth 2,000 yen
VJA Gift Card worth 5,000 yen

FY 2020/3(To be delivered in the end ofJune 2020)

400 shares
VJA Gift Card worth 5,000 yen
or more13

III. Accelerate Business Growth by utilizing ReTech• Braight business (ReTech business) launched• Multifunctional Light was introduced (IoT device by Sony Corporation)

III. Accelerate business growth by utilizing ReTech
Our ReTech

Image of sales growth

Newly established IT Solution Dept.

Note: The figure has been preparedfor referential purposes only.
Actual time or numerical figures are
not taken into consideration.

Sales

Sales generated by ReTech
Website for property for investment,

Utilizing AI and technology
Additional sales revenues contribute to
mid- and long-term earnings growth

Introduce IoT equipment
and devices

Sales from existing
businesses

Introduce Multifunctional Light to studiocondos for investment purposesTime
Present

FY 2021/3

15

Strengths of BraightHighly transparent prices
computed by AI
Our overwhelming transactions(707 buildings and 46,652 units supply)

Property transaction big data
(About 60 million transactions)

Wide range of information
provision including investment
Property prices and revenue
forecasted by AI simulator

New property information

Potential
Customers
Transparent
propertytransaction
pricesUsed property information

Property management
app for owners

Recognize attractive market value of our properties
Thoroughly support the purchase process in person or by telephone16Benefits for Customers and Effect Generated by Braight
Customers’ benefits

Projected effect on earnings

Obtain necessary information at any time andlocation, and understand it at their own pace

Property pricing is more reliable because theprojection is obtained by AI that takes into
consideration ample transaction records.

Smooth access to proposals and services due toautomation, online and paperless procedures

Residents across the country and abroad
as well as digital native generations

Potential customer base will grow.

New customers and repeaters will increase.

Increase sales of new and used properties

Can spend more time to advance customer service

Customer service and operational
efficiency will be enriched.

Fulfill “Higher sales of new and used properties” plus “Higher operational efficiency”

 Accelerate earnings growthHigher brand power leveraged by the Synergy of Pressance and Braight Higher corporate value

17Numerical targets of Braight business
Sales plan with the existing service of Braight
Total sales (million yen)
Sales of new properties (million yen)
Sales of used properties (million yen)
The number of Braight memberships (as of the fiscal year end)

75,000 persons
55,000 persons

24,480 million yen

35,000 persons

16,560 million yen

15,000 persons

17,2804,500 persons
10,800 million yen
5,760 million yen
720
600
FY 2020/3

6,480

3,600

1,320 million yen

2,160
FY 2021/3

Launching phase

10,8004,320
FY 2022/3

7,200

5,760
FY 2023/3

FY 2024/3

Growth phase
Will add new Braight website services in series
Numerical targets of new website services are not included in the above figures.
18

Enhance the Differentiation by Introducing IoT Equipment and Devices
Major features: Multifunctional Light by Sony (LGTC-10 set model)
Higher investment yield
Alerts by sound and e-mail when
the device has sensed human
movement while you are away

Remotely use Multifunctional Light
via a dedicated smartphone app totalk to a person in another place

Check the room condition and turnthe air-conditioner and lighting on
and off by remote control

Relaxing music playing from abuilt-in speaker

A human presence sensor gives amessage to a family member backhome, while e-mailing a notice toothers at the same time.

Turn on the air conditioner, lightand TV with a timer 15 minutes
before getting up

Standardized equipment of our investment studio condos to be soldHigher convenience of residents

More clearly stand out from competitors’
properties

Higher rent fee with better cost performance

Higher value of owner’s asset

Vigorously adopt other IoT equipment and devices
19

Pressance Corporation Co., Ltd.
Note: Future numbers presented as earnings estimates in this material are determinedbased on the information available at the time of disclosure, and contain a lot of
uncertain factors.
Actual earnings may depend on the changes in business conditions.
<Contact for inquiries>
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