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.

May 14, 2020

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
<under J-GAAP>
Company name: Pressance Corporation Co., Ltd.
Listing:First Section of the Tokyo Stock Exchange
Securities code: 3254
URL:
https://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 ordinary general meeting of shareholders:
Scheduled date of start of dividend payment:
Scheduled date of filing of annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results presentation meeting:June 26, 2020
June 29, 2020
June 29, 2020
Yes
None

(Amounts less than one million yen have been omitted.)1.

Consolidated operating results for the fiscal year ended March 31, 2020
(from April 1, 2019 to March 31, 2020)(1) Consolidated operating results
Net sales
Millions of yen
Fiscal year ended March 31,
2020
Fiscal year ended March 31,
2019
Note: Comprehensive income

224,011(Percentages indicate year-on-year changes.)
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
20.6

21,892

19.7

160,580 19.8
27,118 33.2
26,531 33.6
Fiscal year ended March 31, 2020: 21,801 million yen [19.1%]
Fiscal year ended March 31, 2019: 18,304 million yen [32.9%]

18,29633.0

Basic earnings
per share

39.5

32,609Diluted earnings
per share

20.2

31,985%

Ratio ofordinary profit
to total assets%

Ratio ofoperating profit
to net sales
%

21.1

10.4

14.6

22.1

9.7

16.9

Return on equity

Yen
Yen
Fiscal year ended March 31,
347.45340.182020
Fiscal year ended March 31,
296.43285.092019
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended March 31, 2020: (0) million yen
Fiscal year ended March 31, 2019: (43) million yen(2) Consolidated financial position
Total assets
Millions of yen
310,779
301,942

As of March 31, 2020
As of March 31, 2019
Reference: Equity
As of March 31, 2020: 115,253 million yen
As of March 31, 2019: 92,715 million yen

Net assets
Millions of yen
116,690
94,6181

Equity ratio
%
37.1
30.7

Net assets per share
Yen
1,791.63
1,493.54

(3) Consolidated cash flows
Cash flows fromoperating activities
As of March 31, 2020
As of March 31, 20192.

Cash flows frominvesting activities

Millions of yen
23,180(24,480)

Millions of yen(1,837)(2,192)

Cash flows fromfinancing activities
Millions of yen(19,059)
36,735

Cash and cash
equivalents
at end of period
Millions of yen
41,68439,400

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

Yen

Yen

Yen

Ratio of
Total cash Payout ratio dividends
dividends (Consoli- to net assets
Annual(Consoli(Full-year)
dated)
total
dated)
MillionsYen%%of yenFiscal year ended
–
17.50
–
23.00
40.50
2,524
13.7
3.0
March 31, 2019
Fiscal year ended
–
26.00
–
13.00
39.00
2,465
11.2
2.4
March 31, 2020
Fiscal year ending
–
–
–
–
–
–
March 31, 2021 (Forecast)
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.

Consolidated results forecasts 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 of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
102,288(18.4)
16,080(32.1)
15,469(33.9)
10,665(31.9)
165.79Half year
–
–
–
–
–
–
–
–
–
Full year
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, theforecasts 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 ofthe virus outbreak and the timing of when the epidemic will dissipate. At the point when estimation becomes possible, theCompany will promptly release the full year forecasts.

*
Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)a. Number of issued shares at end of period (including treasury shares)
As of March 31, 2020
As of March 31, 2019b. Number of treasury shares at end of period
As of March 31, 2020
As of March 31, 201965,198,961 shares
62,941,385 shares

870,054 shares
863,744 shares2c. Average number of shares during the period
Fiscal year ended March 31, 2020
63,008,052 sharesFiscal year ended March 31, 2019
61,722,251 shares*NotesDue to the introduction of the share-based payment type ESOP, certain number of shares of theCompany held by the trust account are included in the “Number of treasury shares at end of period”(313,320 shares for the fiscal year ended March 31, 2020, and 313,980 shares for the fiscal year ended
March 31,2019) and certain number of shares are included in the treasury shares that were deducted in
the calculation of the “Average number of outstanding shares during the period” (313,706 shares forthe fiscal year ended March 31, 2020 and 313,980 shares for the fiscal year ended March 31,2019).
* Financial results reports are not required to be audited* Explanation related to the appropriate use of the results forecasts and other items warranting special mention
Forward-looking statements in this document, including the results forecasts, are based on the information available to theCompany at the time of disclosure and on certain assumptions deemed to be rational by the Company. These statements
do not purport that the Company pledges or ensures to achieve such statements. Actual business and other results may
differ substantially due to various factors. For preconditions to the assumptions and other important notes concerning thefinancial forecasts, please refer to “1. Business Results (4) Future Outlook” on page 5 of the attachment.
Although the amounts of accounts and other items reported in our consolidated financial statements were previously
shown in thousands of yen, they are shown in millions of yen from the consolidated fiscal year ended March 31, 2020.
The figures for the previous consolidated fiscal year are also shown in millions of yen for easy comparison.

3

1. Business Results and Financial Position(1) Business Results
During the consolidated fiscal year under review, the Japanese economy was on a gradual recovery track
as consumer spending was fueled by improving income and employment opportunities. However, due tothe impact of the COVID-19 pandemic that broke out after the beginning of this year, the outlook is
uncertain, and the business environment is challenging.
In the real estate industry, in addition to mounting construction costs, publicly assessed land values rise inJapan’s three largest cities of Tokyo, Osaka, and Nagoya as well as in other large cities. Although this andother 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 in these areas was solid as more people
tended to move into the center of cities seeking the convenience of urban living.
With the result of business operation above, the Company posted the following consolidated performancefor the fiscal year ended March 31, 2020, net sales amounted to 224,010 million yen (up 39.5% year onyear), operating profit amounted to 32,609 million yen (up 20.2% year on year), ordinary profit amounted
to 31,985 million yen (up 20.6% year on year) and profit attributable to owners of parent amounted to21,892 million yen (up 19.7% year on year), unaffected by the spread of the COVID-19.
In December 2019, the former President & Representative Director and a former employee of theCompany were arrested and indicted by the Special Investigation Department of the Osaka District Public
Prosecutors Office on suspicion of conspiring with the former President of Meijo Gakuin, an incorporated
educational institution (hereinafter referred to as “Meijo Gakuin”), and others in connection with anembezzlement case involving payments for land sales concerning Meijo Gakuin. We would like to offer
our deepest apologies to our shareholders and investors for causing trouble and concern.
On December 23, 2019, the Company established the External Management Reform Committee(hereinafter referred to as the “Committee”), composed of outside experts with no vested interest in the
Company, to investigate and verify issues related to governance, and on March 31, 2020, we received areport on the investigation. Based on the recommendations made by the Committee, we will make sure toenhance governance and implement measures to prevent recurrence as well as reinforce compliance inour efforts to regain the public’s trust.
An overview of operating results by product segment is as follows:
Real Estate Sale Business
The real estate sale business enjoyed favorable sales of condominium units such as Pressance Loger
Ogaki Ekimae, a 137-unit condominium designed for families, and Pressance THE Kobe, a condominiumfeaturing 235 studio units. With the result of business operation above, sales of studio condominium
amounted to 67,255 million yen (3,479 rooms), sale of family-type condominium amounted to 78,587
million yen (2,109 rooms), sale of condominium building amounted 27,299 million yen (1,532 rooms),
sale of hotel property amounted to 19,292 million yen (793 rooms), sale of other type of housing
amounted to 4,726 million yen (248 rooms), sale of other real estate amounted to 18,364 million yen,business accompanying real estate sale amounted to 1,158 million yen. Total sales of real estate salebusiness posted 216,684 million yen (up 39.8% year on year), and segment profit amounted to 32,792
million yen (up 23.3% year on year).
Other Business
The sales of other business, such as the Rental housing business and the Real estate management fee
business, amounted to 7,327 million yen (up 32.4% year on year) due to an increase in rents revenue withan increase in guaranteed rent properties, while segment profit amounted to 1,455 million yen (down
16.9% year on year) due to an increase in rent payments related to rent guarantees.

(2) Analysis on Financial Position
Current Assets
Total current assets as of the end of this consolidated reporting fiscal year amounted to 296,066 million
yen (up 5.5% year on year), increased by 15,475 million yen. This was mainly due to a 10,148-million
4yen increase in inventory as a result of acquiring lands for condominium development and repositioningof properties from real estate for rent to real estate for sale.
Non-current Assets
Total non-current assets as of the end of this consolidated reporting fiscal year decreased by 6,638 million
yen and amounted to 14,712 million yen (down 31.1% year on year). This was largely due to a decreaseof 8,258 million yen in real estate for rent as a result of transferring of 8,555 million yen from the realestate for rent to the real estate for sale after 12 condominium buildings, such as Pressance Kozu Koen
Dio, were repositioned as properties for sale from rental properties.
Liabilities
Total liabilities as of the end of this consolidated reporting fiscal year amounted to 194,088 million yen(down 6.4% year on year), decreased by 13,234 million yen. This was mainly due to a decrease in loans
payable by 15,598 million yen as a result of actively reducing interest-bearing debts.
Net Assets
Total net assets as of the end of this consolidated reporting fiscal year amounted to 116,690 million yen(up 23.3% year on year), increased by 22,071 million yen. This was principally due to the increase inretained earnings by 18,832 million yen because of the posting of profit attributable to owners of parent.

(3) Analysis on Cash Flows
Cash and cash equivalents as of the end of the fiscal year ended March 31, 2020, totaled 41,684 million
yen (up 5.8% year on year), increased by 2,283 million yen.
The state of and factors in each cash flow of the fiscal year are as follows:
Cash Flows from Operating Activities
Net cash provided by operating activities came to 23,180 million yen (Compared with 24,480 million yen
used in the previous fiscal year).
This was mainly due to cash inflow resulting from the posting of profit before income taxes amounting to
31,985 million yen, while there were cash outflows as a result of acquiring land for development, etc.,
which increased inventories by 2,515 million yen, as well as a payment of income taxes totaling 9,592
million yen.
Cash Flows from Investment Activities
Net cash used in investment activities came to 1,837 million yen (Compared with 2,192 million yen usedin the previous fiscal year).
This was primarily due to cash outflow that resulted from loans to subsidiaries and associates totaling
1,372 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities came to 19,059 million yen (Compared with 36,735 million yen
provided in the previous fiscal year).
The main reason for this was cash outflow resulting from net decrease in loans payable to bank by 15,598
million yen.

(4) Future Outlook
With respect to the results forecasts, it is 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 decided to suspend full year forecasting for the fiscal year ending
March 31, 2021 but will announce forecasts limited to the first half of the year, for which we can obtain arelatively clearer picture. At the point when the estimation becomes possible, we will promptly release theresults forecasts for the full fiscal year.
In addition, as we stated in “Notice on Capital and Business Alliance Agreement of Open House Co., Ltd.
5and Pressance Corporation Co., Ltd.” dated April 6, 2020, the Company signed a capital and businessalliance agreement with Open House Co., Ltd. (hereinafter, “Open House”) on the same day. Credit
support from Open House will quickly dispel the concerns of our customers, shareholders, employees,
business partners and related parties, and combining the management resources and management knowhow of both companies will create business synergy, such as mutually complementary geographicalcoverage and expansion of merchandise lineups, which will help us to achieve further enhancement andexpansion of our business.

(5) Basic Policy on Profit Distribution, Dividend for the Current and Next Fiscal Years
The Company has always considered returning profits to shareholders to be a top priority. With respect toour dividend policy, as we stated in “Revision of Year-end Dividend Forecast for the Fiscal Year Ended
March 31, 2020 and Withdrawal of Dividend Policy” announced on the date of the release of thisdocument, the Company withdrew its previous dividend policy and numerical targets.
For the year ended March 31, 2020, the Company plans to pay out a year-end dividend of 13 yen per
share, annual total of which to be 39 yen per share for the full year, adding an interim dividend per share.
For the next fiscal year ending March 31, 2021, the interim and year-end dividends have yet to be
determined, given that it is not possible to foresee the full year results. At the point when disclosure
becomes possible, the Company will promptly release the dividend forecasts.

2. Basic Approach to the Selection of Accounting Standards
The Group prepares consolidated financial statements with Japanese accounting standards. The Groupintends to continue examining the application of international accounting standards with consideringsituations both in Japan and abroad.

6

Consolidated Financial Statements(1) 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
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Real estate for rent
Accumulated depreciation
Real estate for rent, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term loans receivable from subsidiaries andassociates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets

7

As of March 31, 2020

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

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

390
(157)
232
16,220(969)
15,251
271
284
(191)
92
15,848
332

437
(192)
245
7,596
(603)
6,993
271
344
(214)
129
7,640
254

73
35

71
51

2,460

3,193

1,584
1,016
5,170
21,350301,942

2,472
1,027
6,817
14,712
310,779

(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

8

As of March 31, 2020

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

324
8,923
1,904
71,108
7,428
10,788254
6,514
107,318

3,500
120,119623
146
17124,407207,323

85,903196
669
86,770
194,088

2,404
3,406
87,777(887)
92,6994,290
5,292
106,609(887)
115,306

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

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

(2) Consolidated statements of income and comprehensive income
Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Sales commission
Advertising expenses
Directors’ compensations
Salaries and allowances
Bonuses
Provision for bonuses
Retirement benefit expenses
Provision for directors’ retirement benefits
Provision for share-based payment
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Purchase discounts
Foreign exchange gains
Commission fee
Penalty income
Real estate acquisition tax refund
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodCommission fee
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 - current
Income taxes - deferred
Total income taxes
Net income
Profit (Loss) attributable to non-controlling interests
Profit attributable to owners of parent

9

Fiscal year ended
March 31, 2020

160,580
116,378
44,201

224,011
170,886
53,124

6,745
565
623
4,798
247
210
51
54
56
87
3,642
17,082
27,118

8,579
619
598
4,871
323
211
61
13
51
98
5,086
20,51532,609

3
1
0
101
57
69
17
57
309

15
1
0
2
43
153
38
77
333

745

941

43

0

93
13
896
26,5316
8957
31,985

3
3

-

0
3
4
26,530
8,493
(255)
8,238
18,292(3)
18,29631,985
11,003(887)
10,115
21,869(23)
21,892

Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
March 31, 2019
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

10

Fiscal year ended
March 31, 2020

18,292

21,869

(6)
4

(2)
(48)

14

(17)

11
18,304(68)
21,801

18,30821,824(3)(23)

(3) Consolidated statements of changes in equity
Fiscal year ended March 31, 2019
(Millions of yen)
Shareholders’ equity

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Capital stock

Capital surplus

1,973

2,113

430

430

Retained earnings
71,588

Total shareholders’equity(2,471)

73,204860

Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodTreasury shares(2,108)(2,108)18,296

18,296

862

1,584

2,446

430

1,292

16,1881,584

19,494

2,404

3,406

87,777(887)

92,699

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
period6

Total
accumulated
othercomprehensive
incomeForeigncurrencytranslation
adjustment(2)

4

Subscription
rights to shares

Non-controllinginterests

Total net assets

180

1,783

75,172Issuance of new shares

860

Dividends of surplus(2,108)

Profit attributable toowners of parent
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period18,296
2,446
(6)

18

11

(56)

(3)

(48)

(6)

18

11

(56)

(3)

19,446

0

15

15

123

1,779

94,61811

Fiscal year ended March 31, 2020
(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Capital surplus

2,404

3,406

1,886

1,886

Retained earnings
87,777(887)

92,6993,773

Dividends of surplus
Profit attributable toowners of parent
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodTotal shareholders’equityTreasury shares(3,059)(3,059)21,892

21,892
0

0

1,886

1,886

18,832022,606

4,290

5,292

106,609(887)

115,306

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning ofcurrent period
Changes of items during
period0

Totalaccumulated
othercomprehensive
incomeForeigncurrencytranslation
adjustment
15

15

Subscription
rights to shares

Non-controllinginterests

Total net assets

123

1,779

94,618Issuance of new shares

3,773

Dividends of surplus(3,059)Profit attributable toowners of parent
Disposal of treasury
sharesNet changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period21,892
0
(2)

(66)

(68)

140

(607)

(534)

(2)

(66)

(68)

140

(607)

22,071

(1)

(50)

(52)

264

1,172

116,69012

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2019
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
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
Increase (decrease) in provision for share-based
payment
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
Proceeds from sales of investment securities
Payments of loans receivable from subsidiaries andassociates
Payments for investments in capital of subsidiaries andassociates
Payments into time deposits
Proceeds from withdrawal of time deposit
Net cash provided by (used in) investing activities

13

Fiscal year ended
March 31, 2020

26,530
471
100
(4)
745
(100)

31,985
471
100
(16)
941
(2)

43

0

(44,820)532
48(2,515)
2,392
215
36

54

(623)

(2)
3
(1,005)

(718)

789

(238)

526

(465)

56

50

(356)
(16,388)4(794)(7,302)(24,480)

2,052
33,66516(909)(9,592)
23,180

(147)
15
(2)
0

(187)
225
(2)
0

(1,074)(1,372)

(455)

-

(530)
(2,192)(684)
184(1,837)

(Millions of yen)
Fiscal year ended
March 31, 2019
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
Repayments to non-controlling shareholders
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

Fiscal year ended
March 31, 2020

88,142(51,604)
303(2,106)
1,954
46

14

36,73547,743(55,325)
182(3,058)(8,016)(584)(19,059)23(0)

10,08529,31439,4002,283
39,40041,684

(Important Subsequent Events)
At the Board of Directors meeting held on April 6, 2020, the Company passed a resolution to enter into a
capital and business alliance with Open House Co., Ltd. (hereinafter, “Open House”) and signed thecapital and business alliance agreement on the same day.
1. Purpose of the capital and business alliance agreement
The Company concluded that this capital and business alliance will help maximize the benefits of bothcompanies, their customers, shareholders, employees, business partners, and related parties as the credit
support from Open House will quickly dispel the concerns of our customers, shareholders, employees,
business partners and related parties, and combining the management resources and management
know-how of both companies will create business synergy, such as mutually complementary
geographical coverage and expansion of merchandise lineups.
2. Details of the capital and business alliance agreement(1) Details of the business alliance
The details of the business alliance will be determined through further discussion between OpenHouse and the Company. At this stage, the following are the presumed targets of the businessalliance.
a. Complementary geographical coverageb. Complementary merchandise lineups
c. Administration and management of real estate for rent/saled. Cost cutting(2) Details of the capital alliance
On May 8, 2020, Open House purchased 20,621,100 shares (voting right ownership percentage:
about 31.91%) of the Company’s common stock from our two major shareholders and made theCompany its associate accounted for using the equity method.
3. Overview of the counterparty(1) Name:
Open House Co., Ltd.
(2) Address: 2-4-1, Marunouchi, Chiyoda-ku, Tokyo(3) Position and name of representative: Masaaki Arai, President and CEO(4) Business: Business related to detached houses, condominium business, income property business,and other business(5) Capital stock: 4,242 million yen (as of December 31, 2019)15

Others(1) Orders and salesa. Actual orders
Fiscal year ended March 31, 2019
Name ofsegment

Category

Studiocondominiums
Familycondominiums
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 (%)

Numberof units

Outstanding balance of contracts
AmountYear onYear on(Millions ofyear (%)
year (%)
yen)

3,099

127.3

60,050

138.4

2,238

149.0

44,142

162.9

2,057

105.6

74,556

102.5

2,123

99.0

77,588

96.5

1,644

133.8

25,092

134.3

1,904

167.0

29,428

175.2

1,200

224.7

27,225

262.0

1,054

126.4

25,708

159.6

109

126.7

1,839

87.9

19

237.5

457

360.1

-

-

10,629

346.7

-

-

9,200

-

8,109

130.1

199,395

132.6

7,338

130.4

186,525

132.7

Fiscal year ended March 31, 2020
Name ofsegment

Category

Studiocondominiums
Familycondominiums
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 (%)

Numberof units

Outstanding balance of contracts
AmountYear onYear on(Millions ofyear (%)
year (%)
yen)

2,464

79.5

45,870

76.4

1,223

54.6

22,757

51.6

2,043

99.3

76,714

102.9

2,057

96.9

75,715

97.6

1,876

114.1

35,670

142.2

2,248

118.1

37,799

128.4

309

25.8

7,440

27.3

570

54.1

13,856

53.9

272

249.5

5,498

299.0

43

226.3

1,229

269.0

-

-

14,137

133.0

-

-

4,973

54.1

6,964

85.9

185,332

92.9

6,141

83.7

156,331

83.8

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.
5.
6.
7.
8.
9.

The sale of condominium building refers to the method of wholesaling the whole or part of each condominium
building mainly to condominium dealers.
The sale of other type of housing refers to the sale of houses, including used houses and detached houses, otherthan newly built condominiums.
The sale of other real estate refers to the sale of real estate, including commercial stores and sites fordevelopment, other than housing.
Total amount of contracts and the outstanding balance of contracts of other real estate in the fiscal years ended
March 31, 2019 and 2020 refer to lands for development.
Number of rooms in total amount of contracts and the outstanding balance of contracts may fluctuate due tochange of business plan.
Business segments which are not included in the reportable segments are not applicable.

16b. Actual sales

Name ofsegment

Category

Studiocondominiums
Familycondominiums
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

FY ended March 31, 2019(from April 1, 2018 to March 31, 2019)
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)yen)

FY ended March 31,2020(from April 1, 2019 to March 31, 2020)
AmountNumberYear onYear on(Millions ofof units
year (%)
year (%)
yen)

2,363

136.9

43,011

144.8

3,479

147.2

67,255

156.4

2,078

111.7

77,375

108.7

2,109

101.5

78,587

101.6

880

70.6

12,459

64.5

1,532

174.1

27,299

219.1

980

535.5

17,625

642.3

793

80.9

19,292

109.5

98

115.3

1,509

69.1

248

253.1

4,726

313.2

-

-

1,429

46.6

-

-

18,364

1,284.4

-

-

1,633

128.0

-

-

1,158

70.9

6,399

125.4

155,044

119.8

8,161

127.5

216,684

139.8

Other

-

-

5,535

120.1

-

-

7,327

132.4

Total

6,399

125.4

160,580

119.8

8,161

127.5

224,011

139.5

Notes:
1.
2.
3.
4.
5.
6.
7.

Consumption taxes are not included in the above amounts.
Amounts of additional constructions are included in the above amounts.
The sale of condominium building refers to the method of wholesaling the whole or part of each condominium
building mainly to condominium dealers.
The sale of other type of housing refers to the sale of houses, including used houses and detached houses, otherthan newly built condominiums.
The sale of other real estate refers to the sale of real estate, including commercial stores and lands fordevelopment, other than housing
Business accompanying real estate sales include fees for optional post-delivery work, such as floor coating, andagent commissions for real estate sales.
The net sales for sale of other real estate in the fiscal years ended March 31, 2019 and 2020 refers to lands fordevelopment.

17