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 7, 2019

Consolidated Financial Results
for the First Three 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:
August 9, 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 three months of the fiscal year ending March 31, 2020
(from April 1, 2019 to June 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 three months of the fiscal
year ending March 31, 2020
First three months of the fiscal
year ended March 31, 2019
Note: Comprehensive income

First three months of the fiscal
year ending March 31, 2020
First three months of the fiscal
year ended March 31, 2019

68,240 (16.3)

14,066 (27.0)

13,926 (27.3)

9,603 (26.8)

81,514 127.7
19,274 182.6
19,158 183.9
13,111 186.6
First three months of the fiscal year ending March 31, 2020: 9,556 million yen [(27.4) %]First three months of the fiscal year ended March 31, 2019: 13,156 million yen [187.3 %]Basic earnings
per share
Yen

Diluted earnings
per shareYen

154.69149.46215.06204.49(2) Consolidated financial position
Total assets
Millions of yen
295,765
301,942

As of June 30, 2019
As of March 31, 2019
Reference: Equity
As of June 30, 2019: 100,838 million yen
As of March 31, 2019: 92,715 million yen

Net assets
Millions of yen
102,740
94,6181

Equity ratio
%
34.1
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
March 31, 2020
Fiscal year ending
26.00
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
Half year
122,058
0.6
20,487(20.5)
19,935(22.1)
13,649(21.6)
219.88Full 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 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, 2019
As of March 31, 2019

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

62,077,641 shares
60,968,705 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 1st quarter of the fiscal year ending March 31, 2020 and 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”
2

(313,980 shares for the 1st quarter of the fiscal year ending March 31, 2020 and 313,980 shares for the 1stquarter of the fiscal year ended March 31, 2019).
* 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,
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.
(Changes in the unit of amount)
Amounts provided in our quarterly consolidated financial statements had been expressed in thousands of yen.
However, starting from the consolidated 1st quarter of the fiscal year ending March 31, 2020 and cumulative 1stquarter of the fiscal year ending March 31, 2020, such amounts shall be expressed in millions of yen.
For ease of comparison, amounts for the consolidated fiscal year ended March 31, 2019 and cumulative 1stquarter of the fiscal year ended March 31, 2019 are also converted into amounts in millions of yen.

3

1. Quarterly Qualitative Information(1) Business Results
During the first cumulative quarter of consolidated fiscal year, the Japanese economy steadily recovered withmoderate increase in consumer spending along with improvements of employment and personal income
environment.
In the real estate industry, a business area of the Pressance Group (the “Group”), business has been steady amid
relatively low mortgage loan interest rates, ongoing home loan tax cuts and other governmental measures topromote the purchase of houses, while there are concerns about a rise in official land prices in the three largest
cities (Tokyo, Osaka and Nagoya) and core regional cities, a rise in construction work costs as well as othermatters. Population tends to flow into urban central areas for the sake of convenient urban lives, keeping thedemand for condominiums healthy.
In these business circumstances, with our dominant strategy, Pressance Corporation Co, Ltd. (the “Company”)
has strived to purchase land for business in select areas in the central part of the Kinki and Tokai/Chukyo regions
and core regional cities, which are our major sales areas, and focus on supplying condominiums in those areas.
Under such business condition, the Company posted the following consolidated performance for the first threemonths of the fiscal year ending March 31, 2020, net sales amounted to 68,240 million yen (down 16.3% year
on year), operating profit amounted to 14,066 million yen (down 27.0% year on year), ordinary profit
amounted to 13,926 million yen (down 27.3% year on year) and profit attributable to shareholders of the parent
company amounted to 9,603 million yen (down 26.8% year on year).
The Group’s mainstream real estate sales business employs an accounting on a delivery-basis, instead of a sales
agreement completion basis, recording sales on delivery of condominiums to customers. Revenue and profit for
the first cumulative quarterly consolidated accounting period decreased year on year due to fewer family-typecondominiums completed and delivered, but financial results have made healthy progress compared to the fullyear forecast.
An overview of operating results by product segment is as follows:

Real Estate Sale BusinessIn the real estate sales business, Pressance Loger Kyobashi (84 units), a family-type condominium in thePressance Loger series, and Pressance THE Kobe (235 units), a Pressance series studio condominium, have
performed favorably. The sales of studio condominium amounted to 28,020 million yen (1,405 units), sales offamily-type condominium amounted to 26,135 million yen (711 units), sales of condominium building
amounted 4,214 million yen (275 units), sales of hotel property amounted to 2,050 million yen (126 units),
sales of other type of housing amounted to 760 million yen (43 units), sales of other real estate amounted to5,000 million yen, business accompanying real estate sales amounted to 325 million yen. Total sales of realestate sale business posted 66,506 million yen (down 16.7% year on year) and, operating profit amounted to
13,724 million yen (down 27.4% year on year).
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 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
a result, the sales in other business amounted to 1,734 million yen (up 0.8% year on year) and operating profit
came to 695 million yen (down 1.6% year on year).

(2) Financial Position
Current Assets
Total current assets as of the end of the first three months of the fiscal year amounted to 275,447 million yen(down 1.8%), which represents a decrease of 5,144 million yen compared to the end of the previous fiscal year.
This was mainly due to a decrease in cash and deposits of 5,602 million yen.

Fixed Assets
Total fixed assets as of the end of the first three months of the fiscal year amounted to 20,317 million yen(down 4.8%), which represents a decrease of 1,032 million yen compared to the end of the previous fiscal year.

4This decrease was due mainly to a decrease in real estate for rent by 1,114 million yen, transferring self-owned
real estate for rent to real estate for sale.

Liabilities
Total liabilities as of the end of the first three months of the fiscal year amounted to 193,024 million yen (down
6.9%), which represents a decrease of 14,298 million yen compared to the end of the previous fiscal year. Thiswas mainly due to decreases in “Loan payable to bank” of 11,269 million yen and “Advances received” of
1,790 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 102,740 million yen (up8.6%), which represents an increase of 8,121 million yen compared to the end of the previous fiscal year. Thiswas principally due to the increase in retained earnings by 8,168 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, 2020,
totaled 33,797 million yen (down 14.2%), which represents a decrease of 5,602 million yen compared to theend of the previous fiscal year.
The status and factors in each cash flow for the first consolidated cumulative period of the fiscal year are as
follows:

Cash Flows from Operating Activities
Net cash provided by operating activities came to 7,184 million yen (Compared with 24,307 million yen
provided in the first quarter of the previous fiscal year).
This was mainly due to the posting of income before income taxes amounting 13,926 million yen. On the other
hand, cash was used in payment of income taxes amounting 5,221 million yen and a decrease in “Advances
received” by 1,806 million yen due to the delivery of condominiums.

Cash Flows from Investment Activities
Net cash used in investment activities came to 104 million yen (Compared with 239 million yen used in thesame period of previous fiscal year).
The decrease was due mainly to cash outflows by 54 million yen of loans to affiliates and by 49 million yen of
expenses for the acquisition of fixed assets.

Cash Flows from Financing Activities
Net cash used in financing activities came to 12,679 million yen (Compared with 11,941 million yen used in
the same period of previous fiscal year).
The decrease was due mainly to the net decrease in bank loans by 11,269 million yen and the dividend paymentof 1,409 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.
Our business results in the consolidated cumulative first quarter of the fiscal year ending March 31, 2020 havebeen making sound progress, and there is no change on our forecasts of consolidated financial results for the
fiscal year released on May 10, 2019.

5

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019
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

6

As of June 30, 2019

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

36,38768
13,420221,883
293
3,392
275,447

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

14,136614
14,751316
5,249
20,317295,765

(Millions of yen)
As of March 31, 2019
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

7

As of June 30, 2019

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

209
6,626
9,997
38,093
4,510
9,712
300
4,048
73,4983,500
120,119623

3,500
115,227－146
17
124,407207,323

146
652
119,526
193,024

2,404
3,406
87,777(887)
92,6992,404
3,406
95,945(887)
100,867

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

1
(31)
(29)
123
1,778
102,740
295,765

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

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

81,51457,28524,2294,954
19,274

68,24048,43619,804
5,737
14,066

0
0
－

0
0
0

－

31

47

－

23
13
21
106

13
34
30
110

155

227

41

－

－

23

25
0
222
19,15800250
13,9260－

Loss on retirement of non-current assets

0－

Total extraordinary losses

1－

19,157
6,046
13,110(0)13,111

13,926
4,324
9,601
(1)
9,603

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
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
Commission fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on sales of non-current assets

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

8

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

9

First three months of the
fiscal year ended
March 31, 2019

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

13,110

9,601

0
45

1
(49)

－

2

46
13,156(45)
9,556

13,157
(0)

9,557
(1)

(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
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors’ retirement
benefits
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
Purchase of investment securities
Payments for investments in capital of subsidiaries andassociates
Other
Net cash provided by (used in) investing activities

10

First three months of the
fiscal year ended
March 31, 2019

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

19,157
112
25
(0)
155
(47)

13,926
118
25
(0)
227
20

41

(31)

17,619(5,552)
67

579
(381)
82

13

(623)

0

－

0

－

(5,575)(1,806)

786

59

1,279
405
28,4890(153)(4,029)24,307(178)
592
12,6100(204)(5,221)
7,184

(20)
(0)

(49)
(0)

(185)

－

(33)
(239)

(54)
(104)

(Millions of yen)

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

11First three months of the
fiscal year ended
March 31, 2019

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

23,933(28,441)22

15,226(26,572)－(1,000)(6,501)46(1,409)77－(11,941)(12,679)59(4)

12,18629,31441,500(5,602)39,40033,797Others(1) Orders and salesa. Actual orders
First three months of the fiscal year ended March 31, 2019 (from April 1, 2018 to June 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 onYear on year
(Millionsyear (%)(%)
of yen)Outstanding balance of contracts
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

790

141.8

15,015

154.2

904

243.0

17,139

271.8

417

80.0

15,457

80.8

1,397

58.8

51,007

56.2

689

141.5

9,309

130.5

1,532

120.9

21,535

121.9

476

－

12,704

174,588.7

1,070

260.3

24,211

326.5

18

100.0

229

45.9

6

28.6

120

19.8

－

－

164

8.3

－

－

－

－

2,390

151.0

52,881

137.4

4,909

110.4

114,01492.9※

First three months of the fiscal year ending March 31, 2020 (from April 1, 2019 to June 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 onYear on year
(Millionsyear (%)(%)
of yen)Outstanding balance of contracts
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

737

93.3

13,578

90.4

1,570

173.7

29,701

173.3

604

144.8

22,448

145.2

2,016

144.3

73,901

144.9

146

21.2

3,690

39.6

1,775

115.9

28,903

134.2

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

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 three months of the previous fiscal year refers tolands for development.
The contract amounts of other real estate sales for the first cumulative quarterly consolidated accounting period
are related to land 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).
8. Number of units in total amount of contracts and the outstanding balance of contracts may fluctuate due tochange of business plan and others.
※ Please refer to ※ on page 13.

12※

b. Actual sales
The first three months of FY ended March 31, 2019(from April 1, 2018 to June 30, 2018)
AmountNumberYear onYear on year
(Millionsof units
year (%)(%)
of yen)The first three months of FY ending March 31, 2020
(from April 1, 2019 to June 30, 2019)
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

1,388

141.9

24,979

148.2

1,405

101.2

28,020

112.2

1,164

573.4

44,857

619.7

711

61.1

26,135

58.3

297

78.8

4,568

66.3

275

92.6

4,214

92.3

240

333.3

4,601

436.9

126

52.5

2,050

44.5

20

500.0

236

211.6

43

215.0

760

321.6

－

－

164

8.3

－

－

5,000

3,041.4

－

－

386

189.6

－

－

325

84.2

3,109

190.3

79,794

232.3

2,560

82.3

66,506

83.3

Other

－

－

1,719

118.5

－

－

1,734

100.8

Total

3,109

190.3

81,514

227.7

2,560

82.3

68,240

83.7

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

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. Other real estate sales for the previous first cumulative quarterly consolidated accounting period and for thecurrent first cumulative quarterly consolidated accounting period are related to land for development.

※The sales amounts of family-type condominium in the first three months of this fiscal year decreased drastically,
compared to the same period of the previous fiscal year. This was due to steep rise in the number of completion anddelivery of family-type condominium including our big project such as “Pressance Legend Biwako” in the first threemonths of the previous fiscal year.
As a result, as provided in “a. Actual orders”, the outstanding balance of contracts for family-type condominiums forthe current first cumulative quarterly consolidated accounting period is 73,901 million yen, a significant year-onyear increase of 22,894 million yen from 51,007 million yen in the first three months of the previous fiscal year.

13※