Giving
Life tothe Dream

Takatoshi Ito's vision for ES-CON Japan isunfolding right before our eyes

Takatoshi Ito

President & Representative Director
ES-CON Japan
4-2-5 Kandasurugadai, Chiyoda-ku, Tokyo
12ES-CON Japan Core Values

It’s About the Climb
Founded in Osaka in 1995 under the name Desert Inn, thecompany changed its name to ES-CON Japan a year later. ESCON initially focused on real estate planning and sales before
launching its condominium development business in December
1997. It listed on the JASDAQ index in August 2001, survived atremendously challenging set of circumstances for several years
following the global financial crisis and the Great East Japan
Earthquake of 2011, and emerged stronger than ever thanks toits own perseverance, valuable business partners and patientbondholders. Returning to profitability in 2011, ES-CON Japan
has recorded year-on-year gains in revenue and profits eachyear since. It listed on the second tier of the Tokyo Stock
Exchange in September 2015, and aims to move to the first tierwithin 2016. Today ES-CON Japan’s business domain encompasses real estate development and sales, rental and leasing
operations, and brokerage and consulting businesses.
ES-CON Japan does not take a boilerplate approach to condominium development. It instead carefully considers themakeup of the community in which it has chosen to locate aproject – age and family demographics as well as lifestyle trends– then looks five to ten years down the road at the niche thedevelopment will have assumed in the community, and crafts its
development plan to take maximum advantage of the elements.

BETTERMENT
We´re never satisfied. We are constantly striving to improve thequality of our services. By thinking, determining and acting
independently, we are able to continuously raise the bar. We
hope to make a significant contribution to society through ourbusiness activities.

HUMAN RESOURCE
We value relationships – not just within the company, but withvalued business partners and with the community – because these
relationships make us stronger. We will continue to innovate ourproducts to create the standard for the next generation throughvibrant discussion involving many people with different
backgrounds and values.

SOLUTIONS
We establish project teams combining personnel from ourresidential and retail real estate businesses. Our staff offer
wide-ranging experience and we have established a track record
for success in development. We offer comprehensive real estatesolutions, from development to construction and operation.

consulting. With experts from various segments of the realestate industry on staff, the company is able to provide innovative, comprehensive services and solutions.

The rental and leasing business applies the expertise in planningand development acquired through its condominium business.
Also, ES-CON Japan, by leasing retail space and conducting its
own property management, further enhances the value of its own
assets, breathing new life into the community in the process.

Going forward the company intends to supply 500 to 600 new
residential units to the market annually, and also plans to conduct sales independently. It will look to maintain a sound balance across its areas of business, and its aggressive agenda also
includes the establishment of a REIT, which it will supply with
mixed-use and residential properties it develops. Within five
years the company hopes to achieve assets under managementof 100 billion yen.

ES-CON Japan effectively channels the know-how accrued
through its years of experience in all aspects of real estate into
serving as a valuable source for planning, brokerage andCompetent in all areas of the real estate business, ES-CON
Japan is an intelligent, vibrant company that appears to be
making all the right moves.

Financial Highlights 2012 – 2015
(mn yen)40,00035,00030,00035ROE30

25,00025

20,00020

15,00015

10,000

10

5,000

50

Targets for 2016(%)
40

Dec. 2012
RevenueDec. 2013
Operating income

Dec. 2014
Ordinary income

Dec. 2015
Net income

0Revenue

32,700 mn yen (+ 18.0%)

Operating income

4,200 mn yen (+ 4.7%)

Ordinary income

3,300 mn yen (+ 5.6%)

Net income

3,200 mn yen (+ 5.3%)

April 201613

Giving Life to the Dream

From the Top“My ‘ideal’ is acompany that values
the opportunity tomake quality
products.”
LJ: Please tell us a bit about your career.
Ito: I joined ES-CON Japan in 2001. Early in my career I focused on
selling condominiums in Osaka. Initially I was enthusiastic, and since
we were selling condominiums at tens of millions of yen, I wanted tooffer customers the best product possible. I didn’t think I was doing
that, and thought I would have to start my own company to achieve mygoal. I was 27 or 28 when I was appointed to a management position
for the first time. I thought in order to sell effectively I needed to havemore knowledge of the entire process, from development onward, andwanted to experience that early in my career. I asked to be allowed todo that and was refused. It was at that time I had the opportunity tojoin ES-CON Japan, which had just listed on the JASDAQ index. Thiscompany was more involved in development, and didn’t sell its finalproduct.
This company’s mission is to create spaces that attract people, andthis is really what I was interested in doing. I was still thinking about
starting my own company according to my own ideals, but I found
ES-CON’s ideals very similar to my own and they gave me room togrow and develop. As time passed I liked it more and more.
After I’d been with the company for about five years, the president atthe time asked me to become a member of the board of directors. By
that time my thinking about starting my own company had changed
to one where I believed I now had the chance to help ES-CON growand develop in line with our shared ideals.

LJ: I’m sure ES-CON had its share of difficulty around the time of
the global financial crisis.
Ito: We struggled considerably from the fall of 2008 into 2009, when
we defaulted on corporate bonds we’d issued. The tenacity of ourstaff, the cooperation of financial institutions and the unforgettablesupport we received from construction companies, design firms andother holders of our bonds enabled us to weather that storm. In
2011, these factors combined with revenues from our rental realestate and planning and consulting business resulted in us postinga profit for the first time since 2007. Our performance continued toimprove from 2011. We had come back so strongly that our results
are expected to exceed those set out in the medium-term management plan we announced in 2014.
LJ: How are you approaching the expansion of your business and thefurther evolution of the company?
Ito: Over the next several years we will be working to enhance ourcapabilities in a number of areas – we will launch a hotel development business, deepen our knowledge of retail development and fortify our sales function, while continuing along our original path ofcontributing to the creation of communities, creating environments
and not just “boxes.” In order to support this growth and evolution,
it is essential that we begin cultivating the staff that will be leading
the charge in ten years’ time. The average age of our staff is about 38,
and we’ve presently got about 110 employees on a consolidated basis– about 17% of whom are in their first or second year. We will beadding 10 more in April, which will give us 120 employees with onequarter of them in their first or second year with the company. Thisyouth movement, along with the activation of our female employees
and their assignment to managerial and executive posts, will give thecompany the strength and energy – and creative spirit – to take onthese new challenges and lead us to that next plateau.
Company Name

LJ: What is your “ideal” company?
Ito: Companies sometimes establish long associations with othercompanies that can transform into barriers between the company
and the creation of quality products. The relationships can limit thepotential for achievement. In addition to being developers, ES-CON
Japan was not weighed down by those long-term relationships, andhad more of a bottom-up structure, instead of everyone simply doing
what the top brass told them to do. My “ideal” is a company thatvalues the opportunity to create quality products. Of course withthis freedom comes responsibility, a responsibility to think about justwhat it is the customers want and need.
14ES-CON Japan Ltd.

President andTakatoshi Ito
Representative Director
Tokyo Head Office

4-2-5 Kandasurugadai, Chiyoda-ku,Tokyo, 101-0062, Japan

Osaka Head Office

4-1-1 Fushimimachi, Chuo-ku, Osaka
541-0044, Japan

Operating Income

4,012 mn yen(period ended Dec. 31, 2015)

Website:http://www.es-conjapan.co.jp/english/

As a comprehensive real estate developer, ES-CON Japan is involved not only in development across a
range of property types and asset classes but also in property management. In addition to its residential
development business, it is launching a hotel business and expanding its efforts into retail as well. Hereare some of the projects ES-CON Japan has completed and some that are currently in progress.

Le Jade Minamikasai

Garden Mall Seiwadai

Le Jade Setagayakinuta

Offering 33 units – mostly south-facing – with 16
different floor plans, this development’s proximity to commercial facilities and its surrounding
natural environment make it an oasis for families
living in Tokyo.

With 32 retail tenants, parking for up to 220
vehicles and its location 1 minute from theHankyu Bus line, this shopping center combines
variety with convenience for everyday shopping.

In addition to a variety of floor plans, the 1stfloor café, stylish corridor designs and rooftop
terrace offer tenants a comfortable urban livingexperience.

Le Jade Yokohama Tsurumi

Hotel (Kayabacho)

Le Jade Takatsuki

This development offers 45 south-facing units
and its proximity to Tsurumi Station on the JR
Keihin Tohoku Line enables an appealing blend ofcomfort and convenience in commuting.

In April 2015 ESCON acquired an office building in
Kayabacho – home to the Tokyo Stock Exchange
and a number of securities firms – and is in theprocess of converting it into a business hotel.

This development, adjacent to the Takatsuki
Kyoto Hotel, has 136 units, and is situated about
10km from central Osaka with superior access tothe city.

Le Jade Shukugawa Kurakuenguchi

Fukuoka Kasuga ProjectThis new development has 71 units and three different
floor plans. It is located within a 15-minute walk of
public offices, shopping and dining, schools, parks andmedical facilities, making it extremely convenient foryoung people, families and seniors as well.

Situated about 10km from Fukuoka and Hakata, this commuter town – extremely convenient for
students – is developing much like the towns of Kasuga and Onojo have. This 43-hectare residential area,in addition to parks and areas for planting, features a shopping mall anchored by a supermarket, large
retail outlets and a host of dining options, providing residents a pleasant, comfortable and convenient
lifestyle.

April 201615