Financial Highlights of Fiscal Period Ended September 30, 2021

Pressance Corporation Co., Ltd.
JPX Section Code: 3254.T• JPX Nikkei Index 400 component• JPX Nikkei Mid and Small Cap Index component

Released on November 12, 2021

Consolidated Income Statement Summary
The fiscal period ended Sep. 30, ‘21 covers the six months from Apr. 1, ‘21 to Sep. 30, ‘21 because we have changed the fiscal year-end.
➱ *YoY change and rate for FP '21/9 were calculated, compared with the results for the first six months of the FY ended Mar. 31, '21(the same period of the previous fiscal year).
FP'21/9(six months)
Apr. 1 to Sep. 30, '21
results
Amount A Composition(million yen)ratio

Plan for FP’21/9(six month)
Apr, 1 to Sep. 30, '21
plan
Amount B Composition(million yen)ratioFirst six months
of FY’20/3
Apr.1 to Sep.30, '19
results
AmountComposition(million yen)ratioFirst six months
of FY’21/3
Apr. 1 to Sep. 30, '20
results
AmountComposition(million yen)ratio

Net sales

125,383

100.0%

135,411100.0%

99,752100.0%

73.7%

95,203100.0%

104.8%

Cost of sales

90,92972.5%

107,767

79.6%

77,069

77.3%

71.5%

74,20077.9%

103.9%

Gross profit

34,45327.5%

27,643

20.4%

22,683

22.7%

82.1%

21,00222.1%

108.0%

SG&A Expenses

10,783

8.6%

9,329

6.9%

8,457

8.5%

90.7%

9,119

9.6%

92.7%

Operating profit

23,66918.9%18,31413.5%

14,225

14.3%

77.7%

11,88312.5%

119.7%

Ordinary profit

23,39818.7%

18,41613.6%

13,888

13.9%

75.4%

11,41512.0%

121.7%Net Income
Net income

15,66012.5%

12,769

9.4%

9,121

9.1%

71.4%

7,791

8.2%

117.1%*YoY

Achievement
ratio(%)
A/B

Year-on-Year change:• Net sales: Decreased 35,658 million yen (down 26.3%) from the first six months of FY ‘21/3, when net sales were relatively large.
• Gross profit: Improved 2.3 pt over the same period of FY21/3, when land inventory was sold off and write-downs were accelerated.
• SG&A Expenses: SG&A Expenses decreased (sales commissions, property taxes on inventories, etc.) and other expenses fell.
Comparison of results and plan:• Both net sales and gross profit were slightly above the plan.
• Increase in the achievement ratio of each stage profit due to a decrease in and curb on SG&A expenses.
1

Sales Result by Core Product in the Condominium Sales BusinessFirst six months of FY’20/3
Apr. 1 to Sep. 30, '19 results

Condominium
Sales BusinessNo. of units
Units

YoY

Amountmillion yen

YoYFirst six months of FY’21/3
Apr. 1 to Sep. 30, '20 results
No. of units
Units

YoY

FP’21/9 (six months)
Apr. 1to Sep. 30, '21 results

Amountmillion yen

YoYNo. of units
Units

YoY

Plan for FP’21/9
Apr. 1 to Sep. 30, '21

Amountmillion yen

YoYCore Products
AStudio
Condominiums

2,833 132.3%

53,428 143.7% 2,734

96.5%

47,833

Family-type
Condominiums

1,402

85.5%

52,764

85.1% 1,756

125.2%

63,079 119.5%

866

Hotel Sales

129

13.2%

3,050

17.3%

116.3%

5,380 176.4%

420 280.0%

Total

4,364

91.7% 109,243

150

93.5% 4,640

89.5% 2,924 106.9%

106.3% 116,294 106.5% 4,210

49.3%

90.7%

Amountmillion yen Achivement
ratio (%)
B
A/B

48,218 100.8%

44,728107.8%

34,38354.5%

32,403106.1%

8,000 148.7%

8,000

100.0%

90,601

85,131106.4%

77.9%

Year-on-Year change: Sales of family condominiums fell significantly as fewer properties were completed and delivered as planned.
• Studio condo: Up 190 units, with sales up 384 million yen• Family-type condo: Down 890 units, with sales down 28,696 million yen.
Sales in 1Q FY’21/3 were especially high (1,202 units, 42,668 million yen).
• Hotel Sales: Two properties were delivered (one property during the same period of FY’21/3).
Comparison of results and plan: Sales of studio condominiums and family-type condominium were slightly above the plan.
• Studio condo: Achievement ratio was 107.8%. Increase in units sold was the main driver.
• Family-type condo: Achievement ratio was 106.1%. Increase in units sold was the main driver.
• Hotel Sales: Two properties were delivered as planned. Sales of hotel property had completed until FP'21/9.
2

Consolidated Balance Sheet Summary
As of March 31, 2020

As of March 31, 2021

As of Sep 30, 2021

Results
Composition
Results
Composition
ResultsComposition
Change(million yen)ratio
(million yen)ratio
(million yen)ratio
(million yen)
296,066

95.3%

249,040

92.7%

237,376

92.7%▲11,663

Cash and deposits

44,77414.4%

90,79933.8%

103,138

40.3%

12,338

Real estate for sale

27,074

8.7%

8,538

3.2%

23,491

9.2%

14,952

Real estate for sale in process

217,96470.1%

142,14352.9%

102,347

40.0%▲39,795

Non-current Assets

14,712

4.7%

19,722

7.3%

18,6487.3%▲1,073

Total Assets

310,779

100.0%

268,762100.0%

256,024100.0%▲12,737

Current Liabilities

107,318

34.5%

81,34430.3%

54,131

21.1%▲27,21373,08423.5%

56,98021.2%

39,14815.3%▲17,832

86,77027.9%

47,284

17.6%

53,637

21.0%

6,352

85,90327.6%

46,46917.3%

52,798

20.6%

6,328

Total Liabilities

194,08862.5%

128,62947.9%

107,76842.1%▲20,861

Total Net Assets

116,69037.5%

140,13252.1%

148,256

57.9%

8,123

Total Liabilities and Net Assets

310,779

100.0%

268,762100.0%

256,024100.0%▲12,737

Current Assets

Short-term liabilities with interest
Non-current Liabilities
Long-term liabilities with interest

Major Factors of Changes from March 31, 2021
• Current Assets: Cash and deposits up 12,338 million yen, Real estate for sale up 14,952 million yen, Real estate for sale in process
down 39,795 million yen• Non-current Assets: Real estate for rent (net) up 853 million yen (added: 2 properties; transferred to real estate for sale: 2 properties)• Liabilities: Bank loans payable down 11,503 million yen• Total Net Assets: Recorded net income of 9,121 million yen• Equity ratio: 57.6 % (Up 5.8 pt from March 31, 2021）* Details of inventory in the red frame in the matrix above are provided on the next page.

3

Land Inventory as of September 30, 2021
Breakdown of inventory(million yen)
Land Costs in theCondominium Biz

Other Land Costs

Total(The numbers in the redframe on the previous page)

Construction Costs

Real estate for sale

6,126

4,232

13,132

23,491

Real estate for sale in process

74,614

5,666

22,067102,347

Total

80,7409,898

35,199125,839

Land Costs in the Condominium Biz by ProductUnits: 12,302

Amount: 80,740 million yen

1

Family-type
StudioCondominiums
Condominiums
37,356 million yen 43,384 million yen

050,000

1100,000

0Studio
Condominiums

Family-type
Condominiums

7,849

4,453

5,000

10,00015,0004

Mid-Term Management Plan
Mid-Term Management Plan from FY’22/9 to FY’23/9⚫ The plan for FY’22/9 has been revised from the previous plan disclosed on May 14, 2021.

Net sales revised down 1,359 million yen (down 1.0%), operating profit revised up 4,179 million yen (up 35.2%),
net income revised up 2,663 million yen (up 37.2%)⚫ Sales will bottom out in FY'22/9 and start to expand in FY'23/9.
⚫ Sales of used condominiums & detached houses will grow as well as studio condominiums & family-type condominiums.

Sales by Core Product (million yen)

Mid-term plan (million yen)
170,237

142,193

140,834

Net sales
Operating profit

170,237

11,884

7,165

Total Sales

16,0639,829

Used
condominiums

4,704
8,106

Detached house

62,61417,085
10,797

Net income

Family-typeCondominiums

StudioCondominiums

FP'22/9
Before revision

FP'22/9After revision

FY’23/9

140,834

50,687
FP'22/9

9,996
10,20873,34367,182

FY’23/95

New Initiatives (1) ZEH-M (Net Zero Energy House - M) Initiative
We are planning to develop environmentally friendly energy-saving condominiums (ZEH-M) to meet growing social interest andexpanding customer needs.
■ Overview of Planned Project: ZEH-M Oriented Type
TypeLocation

No. of stories

Total units

Scheduledcommencement date

Scheduledcompletion date1

Studio condominiums for investment

Kyoto city

67 units

June 2022

June 2023

2

Studio condominiums for investmentNagoya city

RC building
with 7 stories
RC building
with 15 stories

56 units

June 2022

November 2023

■ Overview of ZEH-M
ZEH (Net Zero Energy House): ZEH aims to achieve a net zero annual primary energy consumption balance through greatly improved thermal insulation
performance of structure skin and by introducing renewable energy and a highly efficient equipment system to deliver significant energy-saving while
maintaining the quality of the indoor environment.
ZEH in multi-family housing: Following categories exist, depending on the number od stories; ZEH-M or Nearly ZEH-M for buildings with 3 stories orless, ZEH-M Ready for buildings with 4 or 5 stories, and ZEH-M Oriented for buildings with 6 stories or more.

■ Evaluation Criteria for ZEH-M Oriented in which our products are categorized
Evaluation of Residential Building
Thermal insulation
Energy conservation rate
performance of*The following criteria should bebuilding skinachieved by the whole residential*The followingbuilding, including common areas.
criteria should beExcluding
Includingachieved by all units. renewable energy renewable energy
Criteria forNo need forstrengthened
20% or more
renewablebuilding skinenergy(ZEH criteria)

Evaluation of Unit
Level tobe aimed
atBuilding
with 6stories ormore

Thermal insulation
performance ofbuilding skin
*The following criteria
should be achieved by
the units.
Criteria forstrengthened buildingskin(ZEH criteria)

Energy conservation rate
*The following criteria should beachieved by the units.
Excludingrenewable energy

Includingrenewable energy

20% or more

No need forrenewableenergy(Source: "ZEH Architectural Design Guidelines for Multi-Family Housing" by ZEH for Multi-Family Housing Roadmap Follow-up Committee)

6New Initiatives (2) Real Estate Crowdfunding for Used Investment Condominiums Started on November 1, 2021
Name of New Business

PREFUN

Overview

Real estate investment in used studio condominiums through crowdfunding and the Internet

Changes in External
Environment
Business Aim

Interest in real estate investment has been extending to those who have no experience in real estate investment.

Differentiation PointTo create opportunities for starters, young people and small-amount-investors to experience real estate investment.
To cultivate and increase future customers for new and used studio condominiums
Specializing in investment studio condominiums that are highly evaluated in the market developed, sold, andmanaged by the Company.
Procurement strength leveraging the continuing relationship between the owner and the Group even after the sales
through leasing management, etc.

Operation period

From a few months to a year

Dividend Payment

Distributions and investment in capital are paid in lump sum within 2 months after the end of fund operation.

Pressance
Condominiums

Our Customers
purchased condos from us

OwnerResidentPreferred investment:
about 70%

Purchase

Rent
Stable rent income

Amount ofcondominiums sold
(After end of the fund management)

Minimum investment is 10,000 yen

Procurement
StrengthReal estate
crowdfunding

Preferred distributions
Investment in capital

For used
investment
condominiums

Subordinated investment:
about 30%
Subordinated distributions
Investment in capital

Investor✓ Will readily make aninvestment✓ Concerned with risks✓ Willing to start easily

Pressance Realta Co., Ltd.
Fund management company(our fully-owned subsidiary)*The first project attracted 25.39 million yen, 321% of the amount to be raised, only on the first day (November 1, 2021) of the application period.
7

Prospects for Achievement of Condo Sales Plan & Outstanding Orders (Contracts) <as of Oct. 1, 2021>
At the beginning of FY'22/9, we have already secured 51.9% of the full-year sales plan of 113,302 million yen (light yellow part)for studio and family-type condominiums based on the outstanding orders (light blue part) that are expected to be delivered in FY'22/9.
Outstanding balance of contracts as of September 30, 2021
Total outstandingbalance of contractsas of Sep. 30, 2021
Core Products

No. of units
Amount(Units)(million yen)

Breakdown by delivery timing
During FY’22/9 Scheduled
On or after FY'23/9
Delivery A
Scheduled Delivery B
No. of units(Units)Amount(million yen)

No. of units
Amount(Units)(million yen)Studio Condominiums

1,953

29,455

1,189

18,743764

10,712

Family-type
Condominiums
Total Condominium
Sales Business

1,078

47,174901

40,055

177

7,119

3,031

76,6302,090

58,798941

17,831

Note. Outstanding balance of contracts= Sum of property contract
proceeds in the following status.
Buildings under construction andyet to be delivered• Completed sales contracts• Uncompleted transfer of property(before buyers’ registration)•

Generally, outstanding orders aretransferred to sales when propertiesare completed and delivered tocustomers.

Progress in Annual Sales Plan for FY'22/9
Orders scheduled fordelivery and to be posted
as sales within FY'22/9
No. of units
Amount A(Units)(million yen)Studio Condominiums
Family-type Condominiums
Total Condominium Sales Business

Progress in annual sales
plan for FY22'/9
Amount B Progress rate(million yen)
A/B

1,189

18,74350,68737.0%

901

40,05562,61464.0%

58,798 113,302

51.9%

2,0908

Return to Shareholders
FP’21/9: Dividend payment and dispatching of gift to shareholders are planned for late December, 2021.
Dividend pershare(Record date)
Shareholder
Benefits
Once per FY(Record date)FP’21/9(September 30, 2021)

Payout ratio

16 yen11.9%

Number of shares held
(As of September 30, 2021)

Gift
to be sent from late Dec. 2021

400 shares or more

UC Gift Card worth 2,500 yen(1,000 yen × 2,500 yen × 1)

* Since FP'21/9 is a transitional period for changing the fiscal year-end and covers only six months, dividend
payment is only once a year, and shareholder benefits are reduced to 50%.

FY22/9 forecast: dividend payment is planned for late June 2022 (interim) and late December 2022 (year-end).
Dividend pershare(Record date)
Shareholder
Benefits
Once per FY(Record date)

Interim dividend(March 31, 2022)

Year-end dividend(September 30, 2022)

Annual total

Payout ratio

16 yen16 yen32 yen

22.1%

Number of shares to be held forthe gift (as of Sep. 30, 2022)

Gift
to be sent from late December 2022

400 shares or more

VJA Gift Card worth 5,000 yen(1,000 yen × 5)
9Pressance Corporation Co., Ltd.
(Note) Prospective numbers listed in the earnings outlook and other materials are based on information available at the time ofdisclosure and largely contain uncertain factors. The actual results may be different depending on changes in business.

<For inquiries, contact>
IR Section of Management Division, Pressance Corporation
TEL: 06-4793-1650 (main)
E-mail: psc@pressance.co.jp

FAX: 06-4793-1651