August 18, 2020

Financial Results forFirst Two Quarters ofTerm Ending
December 2020
ES-CON JAPAN Ltd.

Table of Contents⚫ Financial Results for First Two Quarters of Term Ending December 2020
Main Activities in First Two Quarters of Term Ending December 2020
P/L in First Two Quarters of Term Ended December 2020
Segment Results for First Two Quarters of Term Ending December 2020
B/S in First Two Quarters of Term Ending December 2020

⚫ Most Recent Main Initiatives
Progress of capital and business partnership with Chubu Electric Power Co., Ltd.
Business development in the Chubu area
ESCON JAPAN REIT Investment Corporation (EJR)
Participation in Hokkaido Ballpark project
Naming rights acquired for ES CON FIELD HOKKAIDO
Overseas Business Development
ESG initiatives
ESG Activities: Most Recent Main Initiatives⚫ Full-year performance plans for the term ending December 2020
Full-year performance plans for the term ending December 2020
COVID-19 risks and responses
Real Estate Sales BusinessCondominium Sales Business
Commercial Development Business
Hotel Development Business
Logistics Business and Other Business
Real Estate Leasing Business

P.3
P.4
P.5
P.6, 7
P.8
P.9

P.10
P.11
P.12, 13
P.14
P.15
P.16
P.17
P.18
P.19
P.20
P.21
P.22
P.23, 24
P.25, 26
P.27
P.28
P.29

⚫ Review of the medium-term management plan

P.30, 31

Strategic Business Expansion of ES-CON JAPAN Group
Information

P.32, 33
P.34

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

2

Financial Results for First
Two Quarters of Term Ending
December 2020

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved3

Main Activities in First Two Quarters of Term Ending December 2020
January

February

March

Naming rights acquired for new stadium for Hokkaido Nippon-Ham
Fighters
Nomination and Remuneration Advisory Committee established

ES CON FIELD
HOKKAIDO
Le JADE Okurayama

ESCON JAPAN REIT Investment Corporation (EJR) undertakes firstpublic offering
Acquisition of new business site (Uchiagetakatsukacho, Neyagawa-shi(commercial))
Sales commence for Le JADE Morinomiya and Le JADE Okurayama.
Opening of tonarie Utsunomiya, the Tokyo metropolitan area’s first community shopping center
Acquisition of new business sites:
Higashikozucho, Tennoji-ku; Nishimakami 1-chome, Takatsuki-shi; Kaburagicho, Gifu-shi; Makuharihongo 1-chome; Fujishirodai; Kyoto Horikawa Gojo;
Karuizawa Shiozawa; CosmoSquare Ekimae
Monetary donation to Kyoto University’s iPS Cell Research Fund
Participation in joint condominium project in Los Angeles County, California
Joint Nagoya-shi Higashi-ku Shirakabe 4-chome II Project (tentative name) with Chuden Real Estate Co., Inc.
Raised three billion yen in funding through ESG/SDGs assessment-based loan
Joint Suita-shi Fujishirodai 5-chome Project (tentative name) with Chuden Real Estate Co., Inc.
Le JADE Yamato-Takada
EkimaeAll units sold in Le JADE Minami-Ibaraki Muse

April

Investment in SQUEEZE Inc. and participation in hotel operation business
Sales commence for Le JADE Yamato-Takada Ekimae and Le JADE Suma Myohoji Ekimae
Acquisition of commercial facility Lions Square Kawaguchi
Acquisition of new business properties: Nishi-Azabu 3-chome, Minato-ku; Hirano-Nishi, Hirano-ku, Osaka-shi
Additional contribution to performance-linked stock-based remuneration program

May

June

Earned EcoAction 21 environmental management system (EMS) certification
Acquisition of new business site: Higashi-Takasagocho, Urawa-ku
Acquisition of new business sites: Fukakusacho, Shimogyo-ku, Kyoto-shi; Uchiagetakatsukacho,
Neyagawa-shi [condominium]; Shijoomiya Ekimae

Le JADE Toyoda Master Hills

All units sold in Grand Le JADE Jiyugaoka
All units sold in Grand Le JADE Shonan Enoshima R134, Le JADE Toyoda Master Hills
Sales commence for Le JADE Nagai Koen Dori, Le JADE Mukonoso Honmachi.
EJR earned DBJ Green Building certification.
Third medium-term management plan and progressive dividend policy reviewed
Soyoca Fujimino commercial facility earns CASBEE real estate assessment certification.

Julyand later Joint Ichinomiya-shi Yahata 4-chome Project (tentative name) and joint

Kakegawa-shi Minami 1-chome Project (tentative name) with Chuden Real
Estate Co., Inc.
Effective September 1, Hokkaido Office opens and begins operating;
Fukuoka Office renamed Kyushu Office.

● Number of new business sites acquired in second quarter ofterm ending December 2020
Metropolitan
area

Kinki
regionChubu
regionTotal

Condom inium

2

7

2

11

Com m ercial (includingcom m ercial facilities)

2

1

Office1

Multipurpose

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Total

3
1
2

2

5

10

2

17

4

P/L in First Two Quarters of Term Ended December 2020
• Both sales and profits increased YoY.
• Both sales and profits are up. Business proceeded largely according to plan.

(Unit: Million yen)

Second Quarter of Term Second Quarter of TermEnding December 2020 Ended December 2019
(term under review)(previous term)

Amount ofincrease/decrease

Compared toprevious term

Second Quarter of TermEnding December 2020
(initial plan)

Difference
from plan

Percentage
vs.
initial plan

54,000

968

＋

1.8%

9,500

1,095

＋

11.5%

Sales

54,96830,22824,740＋81.8%

Gross profit

14,827

9,331

5,496

＋

58.9%

Selling, general andadministrative expenses

4,231

2,543

1,688

＋

66.4%

Selling expenses

1,791

742

1,049

＋

141.4%

General administrative
expenses

2,439

1,801

638

＋

35.4%

10,595

6,788

3,807

＋

56.1%

523

596

-73

Ordinary income

10,070

6,197

3,873

＋

62.5%

9,000

1,070

＋

11.9%

Net income in quarter

6,990

4,293

2,697

＋

62.8%

6,200

790

＋

12.7%

Earnings per share incurrent term

102.14

62.75

39.39

＋

62.8%

Operating profit
Interest expenses

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved-12.2%

5

Segment Results for First Two Quarters of Term Ending December 2020
• In the real estate sales business, sales grew by 88% and income by 70% YoY. Other sales contributed significantly to both sales and income.
• In the condominium business, sales were up 265% YoY, while income was up 320% YoY.
• Other sales, including sales from properties sold to Chuden Real Estate Co., Inc. and ESCON JAPAN REIT Investment Corporation (EJR), as well as
logistics facilities and other revenue-generating properties, boosted both sales and profits.
• The project profit margin for condominium sales was up 1.5 points thanks to steady progress on sales of condominium units, with 437 units sold by
the end of 2Q vs. initial plans of 765 units sold during the year (an achievement rate of 57%).
• Profits in the real estate leasing business were down YoY due to various factors, including the sale of properties to Chuden Real Estate Co., Inc. andEJR.

Profitmargin11.9%

Condominium sold/sales

Profitmargin10.4%

Sales
Amount(million y en)

Units soldPrice per unit
(10,000 y en)

Project prof it margin

Second Quarter of Term Ended
December 2019 (prev ious term)

98

5,114

5,218

10.4%

Second Quarter of Term Ending
December 2020 (term under rev iew)

437

18,682

4,275

11.9%

Non-condominium
project profit margin

Results
Sales (million yen)

Project profit(million yen)

Project profit margin

Second Quarter of Term Ended
December 2019 (prev ious term)

22,648

6,461

28.5%

Second Quarter of Term Ending
December 2020 (term under rev iew)

33,593

9,649

28.7%

Other sales in second quarterof term ending Decem ber 2020

Sales
(million yen)

Project profit(million yen)

Properties• tonarie Yamato-Takada 50%• tonarie Toga-Mikita 50%• Ikoma-gun commercial site
• Omihachiman-shi commercial site
• Hyuga-shi commercial site

Properties sold to Chuden Real
Estate Co., Inc.

9,515

2,819

Properties sold to EJR

10,373

2,933 • tonarie Toga-Mikita 50%• tonarie Yamato-Takada 50%

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved• Sakai-shi Daisen commercial site

6

Segment Results for First Two Quarters of Term Ending December 2020
• The completed condominium inventory stood at 158 units at the end of June 2020 (109 units as of August 17).
• Other sales included 10.3 billion yen in sales to REIT (EJR) and 9.5 billion yen in sales to Chuden Real Estate, forapproximately 20 billion yen in total.
(Unit: Units)
Number of units
Inventory at end of Second
Closing inventory for term delivered in First Two
Quarter of Term Ending
ended December 2019
Quarters of Term
December 2020
Ending December 2020

Location

Total numberof units

Mirakita City Himeji

Himeji-shi, Hyogo

143 (67 units)*1

Grand Le JADE Jiyugaoka

Meguro-ku, Tokyo

23

Grand Le JADE Shonan Enoshima R134

Fujisawa-shi, Kanagawa

Le JADE Hama-Otsu

Otsu-shi, Shiga

Grand Le JADE Todoroki

Setagaya-ku, Tokyo

Le JADE Minami-Ibaraki MUSE

Ibaraki-shi, Osaka

Le JADE Tsujido Higashikaigan

Fujisawa-shi, Kanagawa

Le JADE Toyoda Master Hills

Hino-shi, Tokyo

Le JADE Kotoen

Nishinomiya-shi, Hyogo

22
51
43
40
51
63
49

Le JADE Kuzuha

Hirakata-shi, Osaka

Condominium sales*2*3

Le JADE Higashi-Sumiyoshi Imagawa Ryokudo Higashi-Sumiy oshi-ku, Osaka-shi

Le JADE Takatsuki Miyanocho

Takatsuki-shi, Osaka

Le JADE Ikeda Masumicho

Ikeda-shi, Osaka

Le JADE Nishinomiya Kitaguchi Hinokuchicho

Nishinomiya-shi, Hyogo

Grand Le JADE Shukugawa Residence

Nishinomiya-shi, Hyogo

Le JADE Utsukushigaoka

Yokohama-shi, Kanagawa

Le JADE Okurayama

Yokohama-shi, Kanagawa

Le JADE Morinomiya

Higashinari-ku, Osaka-shi

47
41
99
35
94
13
90
25
45

Total

32
8
5
27
28
3
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー

6
4
2
13
11
3
30
62
49
47
41
88
30
48
3
ー
ー
ー

26
4
3
14
17
0
21
1
0
0
0
11
5
46
10
ー
ー
ー

103

437

158

Inventory as a result of contractand delivery progress as ofAugust 17
25
Sold out
Sold out
11
8
Sold out
12
Sold out
Sold out
Sold out
Sold out
3
3
39
8
Incomplete (contracts outstanding for 54 units)
Incomplete (contracts outstanding for 5 units)*1 Includes 143 residential units and nine unsold units. Based on our
50% share, this is equivalent to a total of 67 units.

Incomplete (contracts outstanding for 14 units)*2 Includes 24 residential units and two unsold units (units for sale: 22 units).

109*3 Includes 78 residential units and 31 unsold units (units for sale: 47 units).

Other sales (2Q, term ending December 2020)
Other sales

Sale to EJRApprox. 10.3 billion yen

Business scheme

Logistics

Sale

Matsubara, Setagay a-ku

Revenue-generating real estate

Sale

Honjonishi, Kita-ku

Revenue-generating real estate

Sale

Genbo-en, Koga-shi, Fukuoka

Land planning

Sale

Ikoma-gun commercial site

Land

Sale to Chuden Real Estate and external buyers*

Omihachiman-shi commercial site

Land

Sale to Chuden Real EstateHy uga-shi commercial site

Land

Sale to Chuden Real Estate

tonarie Y amato-Takada

Commercial f acility

Sale to Chuden Real Estate and EJR

tonarie Toga-Mikita

Commercial f acility

Sale to Chuden Real Estate and EJR

LOGITRES Tojo

Sale to Chuden
Real Estate
Approx. 9.5 billion yen

TypeSakai-shi Daisen commercial site

Land

Sale to EJR

Sales(million yen)
8,120
2,167
1,967
393
765
970
445
8,175
6,875
2,733

Leasing business (maj or ow ned properties)

Location

Possession status

Kansai Medical Univ ersity Kuzuha Hospital

Hirakata-shi, Osaka

Fixed asset

Aeon Minamisenri

Suita-shi, Osaka

Fixed asset

Otsu Terrace

Otsu-shi, Shiga

Fixed asset

tonarie Utsunomiy a

Utsunomiya-shi, Tochigi

Fixed asset

Lions Square Kawaguchi

Kawaguchi-shi, Saitama

Current asset (for sale)Hy ogo Tojo II

Kato-shi, Hyogo

Current asset (for sale)

Tsukuba CREO

Tsukuba-shi, Ibaraki

Current asset (for sale)

Tsukuba Q’t, MOG

Tsukuba-shi, Ibaraki

Current asset (for sale)

KoLuTeNa I

Nishi-ku, Sapporo-shi

Current asset (for sale)soy oca Fujimino

Fujimino-shi, Saitama

Current asset (for sale)

Y amada Denki Sapporo Shiroishi store

Shiroishi-ku, Sapporo-shi

Current asset (for sale)

Mukomotomachi, Amagasaki-shi

Amagasaki-shi, Hyogo

Current asset (for sale)

Ikegami, Nishi-ku, Kobe-shi

Nishi-ku, Kobe-shi

Current asset (for sale)

Nakasu, Hakata-ku

Hakata-ku, Fukuoka-shi

Current asset (for sale)* The Ikoma-gun commercial site was sold to Chuden Real Estate (690 million yen) and external buyers (75 million yen).

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7

B/S in First Two Quarters of Term Ending December 2020
• Fixed assets grew 3.2 billion yen due to the acquisition of the commercial facility tonarie Utsunomiya and investments(in EJR, SQUEEZE, and ESCON USA).
• Annual average interest rate fell YoY to 0.9% thanks to the business partnership with the Chubu Electric Power Group.
• The equity ratio rose 2.5 points from the end of the previous term to 27.8%.
(Unit: Million yen)

Second Quarter of TermEnding December 2020
(term under review)

Term Ended December
2019 (previous term)

Increase/decrease

113,958

114,137-179

Cash and deposits

24,58022,511

2,069

Real estate for sale

9,399

24,234-14,835

Real estate for sale inprocess

73,07359,61913,454

Condom inium

52,771

43,58821,786

18,5583,228

Com m ercial, etc.

19,79835,155

Tangible fixed assets

14,925

13,433

1,492

Hotel

2,319

1,734

Intangible fixed assets

461

492

-31

Others

7,586

3,377

Investments and otherassets

6,399

4,632

1,767

Total

82,474

83,854

135,744

132,696

Current assets(Unit: Million yen)Fixed assets

Total assets

2020 2Q end

2019 end

3,048(Unit: Million yen)

Second Quarter of TermEnding December 2020
(term under review)

Term Ended December
2019 (previous term)

Increase/decrease

Current liabilities

42,76650,199-7,433

Short-term loans

5,249

4,580

669

Current portion of
longterm loans

25,12932,415-7,286

Current portion of bonds

Fixed liabilities

240

40

200

55,172

48,9506,222

Corporate bonds

10

230

-220

Long-term loans

53,49147,7205,771

Total liabilities

97,93999,149-1,210Total net assets

37,80433,546

4,258

Total liabilities and net
assets135,744

132,696

3,048

Equity ratio

27.8%

Trend of annual average interest rate
(Unit: Million yen)

25.3% +2.5 points

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8

Most Recent Main Initiatives

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

9Progress of capital and business partnership with Chubu Electric Power Co., Ltd.
Two full years have passed since August 2018, when we concluded a capital and business partnership agreement with
Chubu Electric Power, becoming an equity method affiliate of that company.

The capital and business partnership with Chubu Electric Group has generated numerous synergies.
Promoting joint
projects

Mutuallycomplementarybusiness areas
Making effective useof real estate ownedby the Chubu ElectricPower Group

Five joint projects are already underway with Chuden Real Estate.
Four projects in the Chubu area: Shirakabe, Shirakabe II,
Nishi-Ichinomiya, Kakegawa
One project in the Kinki area: Fujishirodai, Suita-shi

Nagoya Office opened in March 2019.
Business developed in both regions (Chubu and Kansai)

Joint project begun on real estate owned by Chuden Real Estatein Ichinomiya-shi, Aichi

Based on the warehousing method, commercial facilities
and commercial leaseholds owned by the Company arebeing sold to Chuden Real Estate (Feb. 2020)
tonarie Yamato- Omihachiman-shi,
Shiga
TakadaMuko-shi, Kyoto
tonarie TogaIkoma-gun, Nara
MikitaChudenReal
EstateChubu
Electric

ES-CONJAPAN

Provide information

●

●

●

Grant preferred acquisitionrights and preferred negotiatingrightsーー●

Warehousing

●

ー

●

Redevelopment support

ー

ー

●

Environmental
technologies

●

●

ー

PM BM processes

●

●

●

Leasing support

●

ー

●

Personnel support

●

ー

●

Same-boat investment

●

ー

●

Permission to use
logos/symbols

●

●

●

Support agreements

Joint research and implementation of nextgeneration
smart houses, connected
homes, etc.

Development of a next-generation multipurpose facility began in
Fujishirodai, Suita-shi, Osaka (the former site of the National
Cerebral and Cardiovascular Center), planned as a joint projectwith Chuden Real Estate.

Prospective buyers
for our real estatedevelopment projects

Sale of properties owned by the Company to Chuden Real Estatethrough warehousing method(In September 2019, support agreements were concluded with threecompanies: Chuden Real Estate, EJR, and ES-CON AssetManagement.)

Exchange of humanresources

Respect forautonomy

Two of the Company’s employees were seconded to Chuden Real
Estate from April 2019, and one person from Chubu Electric wasnamed director in March 2019. Chuden Real Estate employees
seconded to the Group for training

Continued business development utilizing the Company’s
characteristic speed
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Total of approx.
9.5 billion yen

10Business development in the Chubu area
• The Nagoya Office opened in March 2019.
• Six projects are already underway in the Chubu area.
• Four of these six projects are joint projects with Chuden
Real Estate.

6 Kaburagicho, Gifu-shi, Gifu

5
Karuizawa-machi, Kitasaku-gun,
NaganoCondominium

ToyamaCondominium

Ishikawa
Fukui
NaganoGifu

3 Ichinomiya-shi, Aichi

Condominium

Joint project with
Chuden Real Estate

Yamanashi

1 Shirakabe, Higashi-ku, Nagoya

2

Shirakabe II, Higashi-ku, Nagoya

Condominium
Joint project with
Chuden Real Estate

Aichi
Shizuoka

Nagoya Office
Shirakabe, Higashi-ku, Nagoya

Shirakabe II, Higashi-ku, Nagoya

4 Kakegawa-shi, Shizuoka
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Condominium

Joint project with
Chuden Real Estate

11

ESCON JAPAN REIT Investment Corporation (EJR)
Completed first post-listing PO in February 2020; assets total approx. 52 billion yen. Enhancing organization
with eye toward forming private REITs and private investment funds.
 Rating acquired from Rating and Investment Information (R&I) in November 2019
⚫ Rating Overview

Rating instituteRating scope

RatingRating direction

R&I

Issuer rating

A−

Stable Capital increase through first post-listing PO in February 2020; total issue value of approx. 5.7 billion yen.
Steady asset growth.
Portfolio
When listed

25 properties

Publicoffering

3 properties

Total

28 properties(commercial facilities andcommercial leaseholds)
tonarie Yamato-Takada
tonarie Toga-Mikita
LIFE Daisen
For more information, see thenext page.

Acquisition price41,607 million yen
10,373 million yen

51,980 million yen

 Earned DBJ Green Building certification in July 2020Three distinguishing featuresof EJR

tonarie Yamato-Takada and tonarie Toga-Mikita, developed by us and currently owned by EJR, were certified.
Building a portfolio centered on commercial
facilities that people depend on in their
daily lives
Areas targeted for investment: Four majorurban areas (Tokyo metropolitan area,
Kansai area, Chukyo area, Fukuoka area)

Facilities with roots in local communities in these four major urban areas where population
concentrations are projected to continuein the future as wellPursuing highly stable earnings and growth potential through investment focusing on commercial
facilities that people depend on in their daily lives

Investing in highly stable leasehold (landcomponents of fixed-term leaseholds forbusiness use)
Investment targets: approx. 50% leasehold,approx. 50% land and buildings

Investing proactively in leasehold of commercial facility sites, with a focus on the benefits andadvantages of leasehold
Building highly stable portfolios

External and internal growth
leveraging the advantages of the realestate development capabilities andstrength in management provided bycomprehensive developer ES-CON
JAPAN, with support from Chubu
Electric Power

External growth: Targeting steady external growth by leveraging the various real estate development
capabilities of ES-CON JAPAN as "Life Developers" active in developing the places where people live
and real estate information contributed by the Chubu Electric Power GroupInternal growth: Targeting steady internal growth leveraging the various real estate development
capabilities of the ES-CON JAPAN Group and the Chubu Electric Power Group's expertise with ecofriendly technologies and lowering energy costs

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12

EJR Portfolio Summary Map
Number ofproperties

Total acquisition
price

Total appraisedvalue

Utilizationrate

28 properties

51.9 billion yen

56.9 billion yen

99.8％

Appraised NOI Amortized appraisedyield
NOI yield

Commercial leasehold included

25.5 billion yen

Leasehold ratio

49.2％

LIFE Daisen (leasehold)

Lamu Kitatsumori shop
(leasehold)

5.1％

Years remaining
on lease

4.6％

10.7 years*1) Amounts are truncated and fractions rounded off.
*2) Utilization rates and years remaining on lease asof July 22, 2020
*4) Appraisals are the most recently acquired.

Nitori Imaichi shop
(leasehold)Pare Marche Nishiharu

Sanyo-Marunaka Mitani
shop (leasehold)
K’s Denki Nishi-Kobe
shop (leasehold)Nitori Tsuchiura shop
(leasehold)tonarie Minamisenri

K's Denki Kurashiki shop
(leasehold)Nishishirai Ekimae Plaza

K's Denki Oyumino shop
(leasehold)

Asumigaoka Brand-New
Mall
Fukuoka Kasuga Project (leasehold)tonarie Seiwadai

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

tonarie Toga-Mikita (50% stake)tonarie Yamato-Takada(50% stake)

TSUTAYA Sakai-Minami
shop (leasehold)Max Valu Kikyogaoka Higashi
shop (leasehold)13

Participation in Hokkaido Ballpark project
We are participating in the large-scale development of Hokkaido Ballpark F. Village (a total of 36.7 haunder development), centered on ES CON FIELD HOKKAIDO, the new stadium for the Hokkaido
Nippon-Ham Fighters.
This project seeks to realize community development, taking full advantage of our real estate development expertise.
We will also use this as an opportunity to take part in sports and cultural promotion initiatives and to contribute to the vitality anddevelopment of the Hokkaido region and improvements in the lives of residents.
Planned site
for hotel andother realestatedevelopment

SapporoStationFrom Sapporo • • • • Approx. 16 min
From New
Chitose Airport • • • • Approx. 20 min
From Sapporo • • • • Approx. 30 min
From New
Chitose Airport • • • • Approx. 30 min

Approx.
9,400 square meters

New Chitose
Airport<Kitahiroshima-shi, Hokkaido>(As of end of December 2019)• Population: 58,268* Hokkaido: 5,268,166• Transportation: The JR Hokkaido Chitose Lineruns north-south through thecenter of the city.
• Area: 119.05 sq. km

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

14

Naming rights acquired for ES CON FIELD HOKKAIDO
We are participating in the development of the area around the new stadium for the
Hokkaido Nippon-Ham Fighters and have acquired naming rights.
ES CON FIELD HOKKAIDO is slated to open in 2023.
We will also take this opportunity to participate in sports and cultural promotion initiatives and to contribute to thevitality and development of the Hokkaido region and to improvements in the lives of its residents.
Contract
periodLong-term contract of 10 years or more, starting
January 2020

Business
partners

Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd.
Fighters Sports & Entertainment Co., Ltd.

<Stadium overview>• Name:ES CON FIELD HOKKAIDO• Location:
Inside the General Athletics Park, Kyoei, Kitahiroshima-shi, Hokkaido• Transportation: Approx. 22-minute walk from Kitahiroshima Station on the JR Chitose Line
Approx. 2-minute walk from a new station planned near the stadium• Total floor area: Approx. 50,000 square meters• Seating capacity: Approx. 35,000• Floors:
Two underground (field) floors and six aboveground floors (70 m height)• Specifications: Retractable roof, natural turf field

Hokkaido
Office slated
to open
September 1,
2020
Access
Four-minute walk from JR Sapporo Station, 1-minute walk from Sapporo Station on the
Sapporo Subway’s Namboku Line• Landmark building in front of the Former Hokkaido Government Office Building (RedBrick Building)• Connected by underground space from JR Sapporo Station, Odori Koen Station, andSusukino Station

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved• Unobstructed views of the Red Brick Building and Maruyama Park to the west

15

Overseas Business Development
Following investment in a Hawaii real estate investment fund and after starting our first overseas
condominium development project in Bangkok, Thailand, we are participating in a joint
condominium development project in California⚫ We launched our overseas business development efforts by investing in a Hawaii real estate investment fund in February 2019.
⚫ In August 2019, we joined a condominium development project adjacent to the capital city of Bangkok initiated by the Thai realestate developer Origin Property in Samut Prakan Province. This marks our first overseas condominium development project.
⚫ March 2020: Participation in a joint condominium development project in Los Angeles County, California

As we focus on efforts targeting new business areas with an eye to the future, we plan to deploy a multifaceted realestate business capable of contributing globally to society.
Bangkok, Thailand

California, US

Exterior of Tower 520 N. Central
Knightsbridge Sukhumvit-Thepharak Project

Exterior of Tower 521 N. Orange

520 Project ( Tower 520 N. Central / Tower 521 N. Orange )LocationTransportation

Bang Mueang Mai, Mueang Samut Prakan, Samut Prakan
10270, Thailand
1.7 km from Samrog Station on the BTS Line520 N. Central Avenue/ 521 N. Orange Street Glendale City,
California91203

Site land area

3,016 m2

Transportation

5,044 m2

Total floor area

25,891.52 m2

Site land area

22,661 m2

Exclusive floor area

13,799.00 m2

Scale (planned)

36 aboveground floors, one underground floor

Total floor area

12,384 m2

Total units (planned)

474 residential units, one shop

Exclusive floor area

Construction
completion slated:

Tower 520 N. Central: 8 aboveground floors; Tower 521 N. Orange: 45
aboveground floors

April 2021

Scale (planned)

Late October 2022

Our investment

460 million yen (equivalent)

Location

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

16

ESG initiatives
ESG management philosophy
Based on IDEAL to REAL(bringing ideals into reality to create a new future), our corporate message, we seek to realize sustainable societies and sustained
growth as we address social challenges by promoting ESG management as a lifeways developer creating ideal modes of living in response to changing needs.

E

Environment⚫ Promotion of ZEH-M (for condominiums)⚫ Conducting environmentally and socially friendly real estate research and development
through industry-academia collaboration and collaboration with other industries⚫ Promoting the improvement of operational efficiency with IT and increasing the percentageof people of taking maternity leave, childcare leave and paid holidays⚫ Earning Eco Action 21 certification⚫ Raising funds through ESG/SDGs assessment-based loans

Contributing to a sustainable
societySocial⚫ Conducting timely disclosure of business activities andmanagement status⚫ Establishment of Nomination and Remuneration
Committee⚫ Succession plan (successor candidate system)
initiatives

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Nomination andRemuneration
Committee

President’s Office

ESG Promotion GroupE TeamS TeamRelated departments

G TeamCoordinate

G

Governance

Coordinate

S⚫ Contribution to regional revitalization and community creation through development of
tonarie neighborhood shopping centers⚫ Support for WT1 cancer vaccine research, a cancer immunotherapy⚫ Promoting proactive recruitment and success of female employees, the elderly and people
with disabilities⚫ Support for Chubu Electric Power’s curling team⚫ Support for The Saikyo Bank’s badminton team ACT SAIKYO⚫ Naming rights acquired for the Hokkaido Nippon-Ham
Fighters’ new stadium; participation in urban development
Board of Directors
activities for the overall area
* See previous page for details.
President and Representative Director

ESG management
promotion structure
Led by the ESG Promotion
Group, specific initiative
policies are formulated andactively carried out while
coordinating with related
departments. The ESG
Promotion Group currently
has a total of 16 members.

17

ESG Activities: Most Recent Main Initiatives◼ September 2019: Le JADE Okurayama named to FY2019 high-rise ZEH-M support program for zero-emissions
condominiums• Standards-compliant eco-friendly product design through improved insulation performance in exterior walls and elsewhere; use of high insulation
double-paned glass and high efficiency air conditioning and water heating equipment

Earning Green Star and 2-star ratings

Annual benchmark assessment of ESG considerations in the real estate sector• We earned a Green Star based on high evaluations in the areas of both management and policies and execution and measurement.
• We earned a 2-star rating in the five-level GRESB ratings program.
 We are the first Japanese firm to earn both Green Star and 2-star ratings in GRESB real estate developer assessments.

◼ March 2020: We raised three billion yen through an ESG/SDGs
assessment-based loan.

ESG/SDGs assessment prespared by Sumitomo Mitsui
Banking Corporation and Japan Research Institute, Ltd.

We earned an overall rank of A*, the third highest of seven ranks, denoting a company that undertakes strong ESG and SDGs
initiatives and information disclosure We raised three billion yen for the Fujishirodai 5-chome project through a syndicate loan arranged by Sumitomo Mitsui Banking Corporation.

Results of ESG/SDGs assessment• Very high levels with respect to “efforts to lessen environmental impact of business activities,” “consideration for local and global communities,” and “CSR
management”• Assessed as implementing strong ESG initiatives in corporate management and characterized by high motivation to contribute to SDGs through businessactivities
Assessment of ESG initiatives
1. Has adopted environmental management system and strives to reduce the environmental impact of its own activities and that of its condominiums andcommercial facilities.
2. Based on employee ideas, trains long-term care human resources at community-centered commercial facilities and strives to facilitate the acceptanceof foreign human resources in Japan as part of its businesses.
3. Has established an ESG Promotion Group under the direct supervision of the President; formulates ESG action plans to achieve management
strategies with participation across the Group and its sections, incorporating these into medium-term management plans.
Additionally, high marks for motivation to achieve SDGs “11. Sustainable cities and communities” and “8. Decent work and economic growth” through its
businesses.

◼ May 2020: Earned Eco Action 21 certification

Established by the Ministry of the Environment for environmental management
systems to proactively and effectively carry out environmental management

Eco Action 21 efforts will contribute to fulfilling social responsibility by reducing environmental impact, contributing to management benefits, and boosting
corporate value by cutting costs and improving productivity based on continuing eco-conscious management.

◼ July 2020: Earned DBJ Green Building certification

Certification program supporting real estate business activities
with consideration for the environment and society

Certification of tonarie Yamato-Takada and tonarie Toga-Mikita, ES-CON developments currently owned by EJR◼ July 2020: Earned CASBEE real estate assessment
certification

This system rates building environmental performance, assessing building quality
comprehensively, including interior comfort and consideration for the exteriorlandscape, in addition to environmental considerations, such as energy
conservation and use of materials and machinery with low environmental impact.

Our Soyoca Fujimino commercial facility earned an S rank, the highest rank available in the CASBEE real estate assessment certification based on
the evaluation of a rating agency certified by the Institute for Building Environment and Energy Conservation (IBEC).
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

18Full-year performance plans
for the term ending December
2020

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

19Full-year performance plans for the term ending December 2020
Business performance through the first two quarters of the term ending December 2020
proceeded according to plan. However, current conditions warrant particular care withregard to management decisions and close monitoring of the business environment,
business progress, and other factors in the second half and beyond. No changes havebeen made in initial forecasts.
(Unit: Million yen)

Business plans

Term ending December 2020 (26th term)
2Q results

Full-year plans

54,96886,00052,27580,000Condominium sales business

18,68236,000

Number of condominium
units sold (units)

437

765

Other businesses

33,59344,000Real estate leasing business

2,541

5,750

151

250

Operating income

10,595

13,300Ordinary income

10,07012,300Net income

6,990

8,500

ー

38

Sales
Real estate sales business

Real estate planning, brokerage,
and consulting businesses

Dividents per share (yen)Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

20

COVID-19 risks and responses
 Condominium sales
While we did not completely close showrooms, we switched from face-to-face sales activities and having customers visit showrooms to online sales activities at an
early stage, and have achieved certain results. Although the number of visitors fell by around 70% during the state of emergency and led to a slowdown of sales, thefigure has picked up after the state of emergency was lifted, leading to a gradual increase in the number of contracted cases. However, with concerns over possible
second and third waves, it is difficult to project the impact on properties currently being sold as well as the future sales forecast and construction schedule. Therefore,
it is possible that review of construction starts of new condominiums may become necessary going forward.

Based on a consideration of factors such as numbers of visitors to model units in April-June and yields, theimpact on condominium sales trends appears relatively minor. We plan to maintain a stable supply of properties.

 Commercial facilities
ES-CON JAPAN Group owns and manages retail properties centering on community-based shopping centers with supermarkets as the core tenant.
Supermarkets, drug stores, etc. selling daily essentials continued operations during the state of emergency and have posted sales exceeding 100% year on year.
However, other tenants, such as restaurants, apparel shops and sports clubs, have been forced to refrain from operating. As such, there is a risk of possible
decrease in planned real estate leasing income due to rent reduction requests from severely affected tenants, uncollected rents of bankrupted tenants, difficulty
in soliciting new tenants, etc.

We will continue with proactive development of neighborhood commercial facilities, centered on supermarkets
selling fresh food, since they contribute significantly to communities, even under the conditions generated by
COVID-19.

 Hotels
We have pursued hotel development in recent years, with work on 17 projects, of which 15 have been sold to outside buyers. The two projects currently
underway (Fukuoka-shi: opened in March 2020; Osaka-shi: slated to open in January 2021) may be affected by delays in sales and decreased sale prices due tolow occupancy rates and difficulties in forecasting recovery timetables.

We plan to exercise cautious management, since occupancy rates have fallen dramatically and are not expected
to recover until the second half of 2023.

 Other businesses
Logistics development: We will maintain a course of proactive development. COVID-19 has generated a boom in
e-commerce demand, conditions expected to continue into the future.
Residential leasing:
We will pursue proactive development as an additional development business, since
this business has high affinities with condominium development and demand is
expected to remain stable.
Overseas businesses: We will adopt a cautious approach until the COVID-19 pandemic is under control.
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

21

OtherReal Estate Sales Business• Business proceeded largely according to plan in the first halfof the term ending December 2020.
In the second half, we will move forward to achieve our plans
while carefully ascertaining related conditions.
• In light of current circumstances, we will postpone the sale ofthe hotel in Nakasu, Fukuoka, previously slated for this term,
until the next term or later.

Other
Sales Share by Area
Chubu

(Units sold)

Kanto
Kanto

KansaiKansai

66,710（results）

units

Other
businesses

Condominium
sales business
Other
Condominium
units sold

Unit: Million yen

Kanto

Condominium
sales business
KansaiOther
business2018

2Q units soldCondominium
sales business
Term ended
December 2018(results)

Grand Le JADE Shibuya Tomigaya
Grand Le JADE Ochanomizu
Grand Le JADE Jiyugaoka
Le JADE Southern Gate Toyota
Le JADE Nakano
Le JADE Kawasaki
Le JADE Bio Funabashi Kitanarashino
Feel Garden Minamisenri
Le JADE Minamimorimachi
Le JADE Nagaokakyo
Grand Le JADE Okamoto
Minami-Semba III (hotel)
Kita-Kyuhojimachi (hotel)
Awajicho I (hotel)
Awajicho II (hotel)
Tsurunocho, Kita-ku (hotel)
Hayabusacho, Chiyoda-ku (hotel)
Horikawa Shinmachi, Kanazawa-shi (hotel)
Sendagaya (revenue-generating real estate)
Wakamatsucho 31 (revenue-generating realestate)Fukuoka Kasuga (land planning)2019

Term ended
December 2019(results)

Grand Le JADE Todoroki
Grand Le JADE Shonan Enoshima R134
Mirakita City Himeji
Le JADE Otsu LUXE
Le JADE Hama-Otsu
Le JADE Takatsuki Kosobe
Le JADE Sumakaihin Koen
Le JADE Shinkanaoka Park Fields
Le JADE Minami-Ibaraki MUSE
Grand Le JADE Takatsuki Tenjin

Minami-Semba I (hotel)
Nagahoribashi Ekimae (hotel)
Awajicho III (hotel)
Shimotakaido A (revenue-generating realestate)Nakano, Nakano-ku (land)
Fukuoka Koga (land planning)Grand Le JADE Sanbancho (revenuegenerating real estate)
Sold to REIT (seven commercial projects)
Total amount: approx. 13.7 billion yenunits

2Q of term ending
December 2020
(results)

2020

Term ending
December 2020
(planned)

Le JADE Tsujido Higashi Kaigan
Le JADE Toyoda Master Hills Sold out

Le JADE Utsukushigaoka
Le JADE Okurayama

Sold out
Le JADE Kuzuha
Le JADE Morinomiya
Sold out
Le JADE Kotoen
Le JADE Higashisumiyoshi Sold out
Imagawa Ryokudo
Le JADE Takatsuki Miyanocho
Le JADE Ikeda Masumicho
Le JADE Nishinomiya Kitaguchi HinokuchichoGrand Le JADE Shukugawa Residence

Hyogo Tojo (logistics) Sold out
Fukuoka Koga (land planning) Partially sold
Honjonishi, Kita-ku (revenue-generating real estate) Sold out
Matsubara, Setagaya-ku (revenue-generating real estate) Sold out
Hyogo Tojo II B Sold out
Contract concluded
Shinjuku Daikyocho (revenue-generating real estate)
Minami-Otsuka, Toshima-ku (single building [dormitory]) Contract concluded
Hiratsuka Matsukazecho (land)
Sold to REIT, Chuden Real Estate (six commercial projects) Sold out
Total amount: approx. 20 billion yen

22Condominium Sales Business FY2020 Lineup

Le JADE Kuzuha Condominium (Osaka)(Redevelopment Project)
Location: Hirakata-shi, Osaka
Access: 16-minute walk from Kuzuha
Station on Keihan Main Line
No. of residences: 78 (including 31 units
not for sale)
Occupancy date: Late February 2020

Le JADE Higashisumiyoshi Imagawa Ryokudo Le JADE Kotoen (Hyogo)
Sold out(Osaka)Location: Nishinomiya-shi, Hyogo
Location: Osaka-shi, Osaka
Access: 5-minute walk from Kotoen Station on Hankyu Imazu Line;
Access: 4-minute walk from Tobushijomae
6-minute walk from Kotoen bus stop on Hankyu bus route
Station on JR Kansai Main Line
No. of residences: 41 (plus one management office) No. of residences: 49
Occupancy date: Late February 2020
Occupancy date: Late February 2020

Grand Le JADE Shukugawa Residence (Hyogo)

Le JADE Ikeda Masumicho (Osaka)

Location: Nishinomiya-shi, Hyogo
Access: 4-minute walk from Sakura-Shukugawa Station on JR Kobe Line
No. of residences: 13
Occupancy date: Late June 2020

Location: Ikeda-shi, Osaka
Access: 2-minute walk from Ikeda Station on Hankyu Takarazuka
Line
No. of residences: 35
Occupancy date: Late May 2020

Sold out

Sold out

Kanto area (metropolitan area)

Le JADE Takatsuki Miyanocho (Osaka)
Location: Takatsuki-shi, Osaka
Access: 18-minute walk from Takatsuki-shi Station on Hankyu
Kyoto Line
No. of residences: 99
Occupancy date: Late April 2020

Le JADE Morinomiya (Osaka)
Location: Higashinari-ku, Osaka
Access: 4-minute walk from Morinomiya Station on JR Osaka Loop Line
5-minute walk from Morinomiya Station on Osaka Metro Chuo Line andNagahori Tsurumi-ryokuchi Line
No. of residences: 45
Occupancy date: Slated to start late December 2020

Le JADE Toyoda Master Hills (Tokyo)

Sold out

Location: Hino-shi, Tokyo
Access: 2-minute walk from Toyoda Station on JR Chuo Line
No. of residences: 63
Occupancy date: Late April 2020

Le JADE Utsukushigaoka (Kanagawa)
Location: Yokohama-shi, Kanagawa
Access: 6-minute walk from Azamino Station on Tokyu Denentoshi Line and Yokohama
Municipal Subway Blue Line
No. of residences: 90
Occupancy date: Slated to start late August 2020

Le JADE Nishinomiya Kitaguchi Hinokuchicho (Hyogo)

Location: Nishinomiya-shi, Hyogo
Access: 14-minute walk from Mondoyakuzin Station on
Hankyu Imazu Line
No. of residences: 94
Occupancy date: Late May 2020

Kansai (Kinki) area
Le JADE Tsujido Higashi Kaigan (Kanagawa)Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Location: Fujisawa-shi, Kanagawa
Access: 17-minute walk (SEA-SIDE VILLA)/18-minute walk (GARDEN-SIDE VILLA) from Kugenumakaigan Station on Odakyu Enoshima Line; 9-minute bus ride from Tsujido Station on JR Tokaido Lineand 3-minute walk (SEA-SIDE VILLA)/4-minute walk (GARDEN-SIDE VILLA) from Shoyo Chugakkomae bus stop
No. of residences: 51 (25 in SEA-SIDE VILLA, 26 in GARDEN-SIDE VILLA)
Occupancy date: Late March 2020

Le JADE Okurayama (Kanagawa)
Location: Kohoku-ku, Yokohama-shi, Kanagawa
Access: 12-minute walk from Okurayama Station on
Tokyu Toyokosen
No. of residences: 25
Occupancy date: Slated to start late November 202023

Condominium Sales Business FY2021, FY2022 Planned Lineup
FY2021

Le JADE Nishiakashi (Hyogo)

Le JADE Suma Myohoji Ekimae (Hyogo)

Le JADE Senri Aoyamadai (Osaka)

Location: Akashi-shi, Hyogo
Access: 2-minute walk from Nishiakashi Station on JR
Sanyo Main Line
No. of residences: 77
Occupancy date: Slated to start late February 2021

Location: Kobe-shi, Hyogo
Access: 1-minute walk from Myohoji Station on
Kobe Municipal Subway Seishin-Yamate Line
No. of residences: 40
Occupancy date: Slated to start late March 2021

Location: Suita-shi, Osaka
Access: 17-minute walk from Kita-Senri Station
on Hankyu Senri Line
No. of residences: 152
Occupancy date: Slated to start late March 2021

Le JADE Yamato-Takada Ekimae (Nara)
Location: Yamato Takada-shi ,Nara
Access: 3-minute walk from Yamato-Takada Stationon Kintetsu Osaka Line
3-minute walk from Takada Station on JR SakuraiWakayama Line
No. of residences: 205
Occupancy date: Slated to start late May 2021

Le JADE Nagai Koen Dori (Osaka)
Location: Minami-Sumiyoshi, Sumiyoshi-ku,
Osaka-shi
Access: 9-minute walk from Nagai Station
on Midosuji Line
10-minute walk from Nagai Station on JR
Hanwa Line
No. of residences: 108
Occupancy date: Late December 2021

Le JADE Tennoji Katsuyama (Osaka)
Location: Tennoji-ku, Osaka-shi
Access: 5-minute walk from
Momodani Station on JR Osaka
Loop Line
No. of residences: 39
Occupancy date: Late November
2021⚫ Ibaraki-shi Higashi-Chujocho
Project (Osaka)

Kansai (Kinki) Area

Le JADE Senri Furuedai (Osaka)

Le JADE Mukonoso Honmachi (Hyogo)

Le JADE City Hyotanyama (Osaka)

Location: Furuedai, Suita-shi
Access: 12-minute walk from Yamada Station on Hankyu Senri Line
11-minute walk from Yamada Station on Osaka Monorail Line
15-minute walk from Kita-Senri Station on Hankyu Senri Line
No. of residences: 71
Occupancy date: Late March 2021

Location: Amagasaki-shi, Hyogo
Access: 12-minute walk from Mukonoso Station on Kobe Line
No. of residences: 33
Occupancy date: Late April 2021

Location: Kandacho, Higashi-Osaka-shi
Access: 5-minute walk from Hyotanyama Station on
Kintetsu Nara Line
No. of residences: 232
Occupancy date: Late December 2021

Kanto
(Tokyo Metro) Area

Chubu Area

FY2022
 Tennoji-ku Higashikozucho Project(Osaka) Hirano-ku Hiranonishi Project (Osaka)

 Karuizawa Shiozawa Project(Nagano) Takatsuki-shi Bessho Nakanomachi
Project (Osaka) Nagoya-shi Higashi-ku Shirakabe I
Project (Aichi)(Joint project with Chuden Real
Estate)[Provisional name] Kamakura Zaimokuza Project(Kanagawa)
Location: Kamakura-shi, Kanagawa
Access: 16-minute walk from Kamakura Station on JR
Yokosuka Shonan-Shinjuku Line
10-minute walk from Wadazuka Station on Enoden Line
No. of residences: 31
Occupancy date: Slated to start July 2021

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved Neyagawa-shi Uchiagetakatsukacho(Condominium) Project (Osaka) Takatsuki-shi Nishimakami 1-chome
Project (Osaka) Shijo-Omiya Eki Ekimae Project (Kyoto) Kyoto-shi Shimogyo-ku Fukakusacho
Project (Kyoto) Kyoto-shi Horikawa Gojo Project (Kyoto) Kakegawa-shi Minami Project (Shizuoka) Gifu Kaburagicho Project (Gifu)
 Nagoya-shi Higashi-ku Shirakabe II
Project (Aichi)(Joint project with Chuden Real
Estate) Nishi-Ichinomiya Project (Aichi)
 Tsukuba (Condominium) Project (Ibaraki)
 Makuhari Hongyo 1-chome Project (Chiba)
 Urawa-ku Higashi-Takasagocho Project(Saitama)
 Minato-ku Shirokane Project (Tokyo)(Joint project with Mitsubishi Estate
Residence)24

Commercial Development BusinessWe will develop tonarie brand neighborhood shopping centers (NSC) and redevelop and revitalize commercial facilities inoperation in order to contribute to the development of local communities that are closely connected with people’s daily lives andto help promote compact cities, local community creation, and regional revitalization.

tonarie Utsunomiya(Utsunomiya-shi, Tochigi)

tonarie Seiwadai (Kawanishi-shi, Hyogo)

tonarie Yamato-Takada (Yamato Takada, Nara) Project
After acquisition, dismantlingand construction took place
while the approximately 30
tenants (including a
supermarket and other stores
essential to the community)
continued to operate.
We acquired a general merchandise store (GMS)
from the high growth period that was over 40 years
old from a major textile manufacturer in 2015. Even
though it is directly connected to the train station ina relatively busy commercial area, the store sizes
and aging facilities were a mismatch for current
needs. (Photo of Oak Town Yamato Takada)Will promote the Le JADE YamatoTakada Ekimae condominium andcreate a large-scale development
project by enticing large specialty
stores, among others.

tonarie Minamisenri (Suita-shi, Osaka)

tonarie Toga-Mikita (Sakai-shi, Osaka)

We develop and operateneighborhood shopping centers(NSC) as a part of our commercial
development business. We
launched the tonarie brand ofcommercial facilities, and fivesuch facilities are currently
in operation. They areoperated by ES-CON
PROPERTY.

Brand Concept
Close to the community in order todevelop together with the community
Always a good neighbor

The tonarie Yamato-Takada neighborhood shopping center has opened.
It has transformed into a facility that is sized to meet community needs
and rooted in experience-based lifestyles, with 68 tenants opening on
November 23, 2018. The center won a 2019 Good Design Award.
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

25Commercial Development Business
Seibu Tsukuba, a large-scale commercial facility in front of the station, closed in February 2017, and Aeon Tsukuba Ekimae closed in
January 2018, so the area around the station is in need of urban development and revitalization. We acquired three facilities, CREO,
Q’t and MOG, and are currently promoting the integrated development of these facilities in the area around Tsukuba Station.

Tsukuba (Tsukuba-shi, Ibaraki) Project
Tsukuba Q’t

Tsukuba CREO

Tsukuba MOG

soyoca Fujimino (Fujimino-shi, Saitama)

KoLuTeNa I(Sapporo-shi, Hokkaido)

Location (vicinity map)

Tsukuba
Station

MOG

Q’t

Q't

MOG

クレオ

Lions Square Kawaguchi (Kawaguchi-shi, Saitama)

CREO

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Oh! Me Otsu Terrace (Otsu, Shiga)

26

Hotel Development BusinessSold

17 Development Projects (15 sold)千代田区隼町2018年4月開業
102室

Kayabacho, Nihonbashi
Opened in December
2016
102 rooms

Horikawa Shinmachi,
Kanazawa-shi
Opened in April 2018
121 rooms

Bakurocho, Nihonbashi
Opened in April 201763 rooms

Awajicho I, Chuo-ku,
Osaka-shi
Opened in May 2018
168 rooms

Hiranomachi,
Chuo-ku, Osaka-shi
Opened in April 2017
96 rooms

Awajicho II, Chuo-ku,
Osaka-shi
Opened in June 2018
168 rooms

Sapporo-shi, Hokkaido
Opened in July 2017
144 rooms

Kitakyuhojimachi, Chuo-ku,
Osaka-shi
Opened in June 2018
182 rooms

Oyamamachi, Kanazawa-shi
Opened in December 201747 rooms

Tsurunocho, Kita-ku,
Osaka-shi
Opened in November 2018
134 rooms

One hotel is currently
owned, while one isunder development.

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Nagahoribashi Ekimae
Opened in December 2018
96 rooms

Hayabusacho,
Chiyoda-ku
Opened in April 2018
102 rooms

Minamisenba III,
Chuo-ku, Osaka-shi
Opened in January 2018
100 rooms

Awajicho III, Chuo-ku,
Osaka-shi
Opened in February 2019184 rooms

Minamisenba I, Chuo-ku,
Osaka-shi
Opened in April 2019
256 rooms

Owned

Under development

Nakasu, Hakata-ku,
Fukuoka-shi
Opened in March
2020
103 rooms

Nishi-Shinsaibashi, Chuo-ku,
Osaka-shi
Scheduled to open in January 2021
53 rooms

27

Logistics Development Business and Other BusinessWe launched the new LOGITRES brand of logistics facilities and developed its first project, LOGITRES Tojo. Land for the second
project was acquired in October 2019 in the same area as the first project. We are also working to develop sites for logistics throughour land readjustment business in Koga, Fukuoka Prefecture.
As this is a candidate for our next core business, our current policy is to further strengthen these initiatives. We are also engaged inrevitalization projects for lease condominiums, office buildings (project site acquired in Kudankita, Chiyoda-ku), and other properties
and plan to actively carry out various development projects in order to establish our next core business as a general developer.
Logistics development
business

Land readjustment
business

LOGITRES Tojo
(Kato-shi, Hyogo)

Large-scale urban development business

Koga Genboen
Land Readjustment
Project(Koga-shi, Fukuoka)
Above: Aerial photo
Left: Current lot
map, neighboring
area, Genboen
location map

Fukuoka Kasuga
Project(Kasuga-shi,
Fukuoka)
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved28Real Estate Leasing Business• We are strengthening the real estate leasing business through development and ownership of revenue-generating properties.
• A stock revenue structure is being established that can cover total general administrative expenses with rental income.
• We will continue strengthening the added value of these facilities while paying close attention to the impact of COVID-19.
• We will enhance the overall stock revenue capabilities of the ES-CON JAPAN Group by expanding the operation business at Group companies.

 Strengthen asset management (AM) revenue➢ Expand ESCON JAPAN REIT’s asset size
Increase in revenue with property acquisition
Increase in revenue earned according to size of
AUM➢ Entrustment with AM from Chuden Real Estate
In addition to properties held by warehousing
function, potentially also properties acquired by
Chuden Real Estate➢ Promote other businesses
Investment advisory and agency, real estate trust
beneficial interest sales intermediary, etc.

 Strengthen property management (PM)revenue Strengthen management revenue and operation
capabilities➢ Enhance consulting capabilities for commercial
facilities
Greater tenant mix and MD proposing capabilities➢ Enhance leasing capabilities
Expand potential tenants from community-based
companies to national companies➢ Expand business scope
Insource building management (BM)➢ Promote entrustment with outsourced operations➢ Foray into peripheral operations
Rental storage, store renovation consulting andadvertising➢ Stable increase in number of units undermanagement from entrustment with management ofcondominiums developed by ES-CON JAPAN➢ Promote switch of existing properties managed jointlywith other companies to sole management➢ Strengthen services and reduce costs by insourcing
manager operations➢ Strengthen inflow of orders by enhancing scheduled
repair and maintenance proposing capabilities➢ Strengthen services for customers after they move in(renovation consulting, interior product sales, etc.)➢ Establish restaurant business➢ Foray into hotel operation business

Unit: million yen
Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

29

Review of the medium-term
management plan

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved30Review of the medium-term management plan and progressive
dividend policy
February 2020: Global COVID-19 pandemic breaks out.
→ Large-scale restrictions on economic activities and dramatic changes in the social and economic environment

Further increase in uncertainty due to the extreme difficulty of projecting future developments and concerns for second or
third waves of the pandemic

 Thoroughgoing review of the medium-term management plan (for the three-year period from theterm ending December 2020 through the term ending December 2022)• While results have proceeded smoothly through the second quarter of this fiscal year, uncertainty regarding future
prospects continues to mount.

→ Conditions call for even more cautious management decision-making and close monitoring ofconditions for the future business environment and business growth.
A new plan will be formulated to remain abreast of changing domestic and international conditions in areas such as the economy,
politics, work styles, and the living environment and to identify opportunities that will allow us to provide new added value to society
and realize sustained growth.

 Review of progressive dividend policy** A progressive dividend policy that calls for maintaining or increasing dividends per shareeach year, using dividends per share in the preceding fiscal year as the baseline• Following a review, we have made the decision to discontinue the progressive dividend policy to enhance internal
reserves under conditions that make unusually difficult to project future developments.

→ Our policy of regarding returns to shareholders as an issue of the utmost importance will continue.
We will maintain a payout ratio of 30%.

 Plans for the term ending December 2020 (the term under review) will be maintained, with nochanges in projected dividends (projected to be 38 yen/share).
Unit: million yen

Term ending
December 2020

Sales

OperatingincomeOrdinary
incomeNet income

Earnings
per share

Dividends
per share

Full-year plan

86,00013,30012,3008,500

124.22 yen

38 yenCopyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

31Strategic Business Expansion of ES-CON JAPAN GroupESCON JAPAN REIT
Investment Corporation

Chubu ElectricPower GroupES CON
Property Ltd.

Collaboration

Property
management(PM) ofcommercial
facilities

International
business

Condominiums

Land
readjustment

Commercial
development
Hoteldevelopment

１

Condominium
management
ES CON
Living Service Ltd.

Group
Officedevelopment

Rentalresidential
development

ＲＥＩＴ

Real estate
asset
management
ES CON
Asset
Management Ltd.

Detached
housingbusiness in
Saitama

Employment
placement
business
ES CON
Global Works Ltd.

Logistics
development
Collaboration

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

32

Results of regional expansion
Hokkaido
As of August 17, 2020

Hotel: 1 project
Commercial facility(including leasehold): 2 projects⚫ Condominium units: approx. 11,290 units(approx. 9,087 units in Kansai; approx. 2,203 units in Kanto)⚫ Detached houses/housing land development: approx. 700 sections⚫ Commercial development etc.:
Acquiring and developing properties throughout the country⚫ Hotel development: acquisition of land for over approx. 2,118 rooms
Developing in Tokyo, Osaka, Hokkaido, Kanazawa, and Fukuoka
Investment in SQUEEZE Inc. and participation in hotel operation business⚫ Overseas business development: Investment in Hawaii real estate fund,participation in condominium development project in Thailand

Hokkaido Office(scheduled to open
September 1, 2020)

Kansai
Condominiums: 152 buildings
Hotel: 10 projects
Commercial facilities(including leasehold): 15 projects
Logistics facilities: 3 projects

Hokuriku

Kanto

Hotel: 2 projects

Condominiums: 48 buildings(including 1 renovation project)

Hotel: 3 projects
Commercial facilities(including leasehold): 10 projects

Osaka Head
OfficeTokyo Head
OfficeKyushu
Chubu

Hotel: 1 projectLand readjustment: 1 project
Large complex development:
1 project

Nagoya Office
Fukuoka Office(to be renamed the Kyushu Office
on September 1, 2020)

Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved

Commercial facilities:
1 project
Proactive deployment in the
Chubu region throughcapital and business
partnership with Chubu
Electric Power33

Information

ESCON JAPAN Ltd.
Email: ir@escon.jp
Tokyo
20F The Okura Prestige Tower,
2-10-4 Toranomon, Minato-ku,
Tokyo, 105-0001☎03-6230-9308

Osaka
13th Floor, Meiji Yasuda Seimei
Building, 4-1-1 Fushimimachi,
Chuo-ku, Osaka 541-0044☎06-6223-8055
ESCON JAPAN Official
Instagram, Facebook
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Ｍｅｍｏ

Disclaimer

Forward-looking statements in this document reflect judgments based on information available at thetime of publication. Actual results may vary due to various factors.

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