Summary of Accounts for First Quarter of Term Ending December 2017
(Japanese GAAP) (Consolidated)
May 8, 2017
Listing exchange: Tokyo Stock Exchange
URL: https://www.es-conjapan.co.jp
President & Representative Director
Senior Managing Director TEL: 06 (6223) 8055
May 8, 2017－
No
No

Name of listed company: ES-CON JAPAN Ltd.
Code:
8892
Representative:(Name) Takatoshi Ito(Position)
Contact for inquiries:(Name) Minoru Nakanishi(Position)
Scheduled date for submission of periodic securities report:
Scheduled date for start of dividend payment:
Supplementary explanatory materials created for accounts? Yes/No:
Accounts briefing meeting held?
Yes/No:(Amounts are rounded down to the nearest million yen)

1.

Consolidated results for first quarter of term ending December 2017 (from January 1, 2017 to March 31, 2017)(1) Consolidated operating results(% figures show the rate of increase (decrease) compared with the same period of the previous year)

Net sales

Operating income

million yen

First quarter of
9,915
term ending Dec. 2017
First quarter of
6,780
term ended Dec. 2016
Note:
Comprehensive income
First quarter ofterm ending Dec. 2017:%

million yen%

million yen%

million yen

%

46.2

2,451

68.1

2,199

77.8

2,206

78.5

13.0

1,457

69.2

1,236

95.3

1,236

117.7

Dilutedearnings per share

yen

yen

33.35

32.40

18.44

18.40

(2) Consolidated financial position
Total assets
First quarter ofterm ending Dec. 2017
Term ended Dec. 2016
Reference:

2.

First quarter ofterm ended Dec. 2016:

2,205 million yen [78.4%]

Basicearnings per shareFirst quarter ofterm ending Dec. 2017
First quarter ofterm ended Dec. 2016

EquityFirst quarter ofterm ending Dec. 2017:

Profit attributable toowners of parent

Ordinary income

Net assets

1,236 million yen [117.7%]

Equity ratio

Book value per share

million yen

million yen%

yen

84,696

18,17221.5

273.8473,70317,36323.6

259.07

18,169 million yen

Term ended Dec. 2016:

17,360 million yen

Dividends
End ofsecond quarter

Annual dividend
End ofthird quarter

yen

yen

yen

yen

yen

－
－

0.00

－

15.00

15.00

Term ending Dec. 2017 (Forecast)(Note) Revisions from latest dividends forecast: None

0.00

－

15.00

15.00

End offirst quarter
Term ended Dec. 2016
Term ending Dec. 20173.

Year-end

Total

Consolidated earnings forecast for term ending December 2017 (from January 1, 2017 to December 31, 2017)(% figures for the full term show the rate of increase (decrease) compared with the previous term, and% figures for the first two quarters show the rate of increase (decrease) compared with the same period of the previous year)

Operating income

Ordinary income

Profit attributable to
Basicowners of parent earnings per share%

million yen%

million yen%

million yen

Net sales
million yen%

yenFirst two quarters

12,100

(3.5)

2,200

19.3

1,750

26.9

1,550

0.4

23.13

Full term

45,500

32.5

5,700

21.8

4,800

33.2

4,400

12.2

65.66

(Note) Revisions from latest earnings forecast: None
－

1 －

*

Explanatory notes(1) Changes in significant subsidiaries during the first quarter(Changes in specified subsidiaries resulting in change in scope of consolidation):
Newly included: － companies (Company name) －－ companies (Company name) －Excluded:None(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to amendment of accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement:

None

None
None
None
None

(4) Number of shares issued and outstanding (common shares)
First quarter of
70,594,887
1) Number of shares issued and outstanding
69,097,887 Term ended
term ending
shares Dec. 2016
shares(including treasury shares) at end of period
Dec. 2017
First quarter of
3,583,600
2,745,300 Term ended
2) Number of treasury shares at end of period
term ending
shares Dec. 2016
sharesDec. 2017
First quarter ofFirst quarter of
66,174,429
67,061,575
3) Average number of shares during period
term ending
term ended
sharessharesDec. 2017
Dec. 2016
Note: The number of treasury shares at end of period includes ES-CON JAPAN shares held in a share-based
payment benefits trust for directors and a share-based payment benefits type ESOP trust (first quarter ofterm ending December 2017: 543,200 shares in the share-based payment benefits trust for directors and
235,200 shares in the share-based payment benefits type ESOP trust). In the calculation of the average
number of shares during period, the treasury shares to be subtracted in that calculation includes ES-CON
JAPAN shares held in the share-based payment benefits trust for directors and the share-based payment
benefits type ESOP trust (first quarter of term ending December 2017: 788,456 shares).
*This quarterly summary of accounts is not subject to quarterly review.

*

Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information
currently available to and certain assumptions that are thought to be reasonable by ES-CON JAPAN. Accordingly,
actual business performance and other results may differ materially due to various reasons. For the conditions
forming the assumptions on which earnings forecasts are based and explanatory notes for use of earnings forecasts,
etc., please see “Attachment; 1. Qualitative Information on Quarterly Results; (3) Explanation of Consolidated
Earnings Forecast and Other Forward-Looking Information” on page 4.

－

2 －Attachment
1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
In the first quarter, the Japanese economy was on a moderate recovery trend with the employment and income
situation continuing to trend toward improvement due in part to the government’s various economic measures, but
was in a state of clouded outlook due in part to uncertainties in overseas economies and fluctuations in the financial
and capital markets.
The real estate industry in which the ES-CON JAPAN Group operates held resilient and firm due in part to lowinterest rates from monetary easing policies, but rise in land prices, intensification of competition over landacquisitions and other factors make it a state that warrants no optimism.
In the business environment described above, in the real estate sales business, which is the core business,revenue-generating real estate sales, etc. were conducted, and steady progress was made in condominium sales, too.
Steady progress was made in selling the projects slated for construction completion in the term ending December
2017 “Grand Le JADE Wakamatsucho Residence” (Shinjuku Ward, Tokyo; 31 units in total), “Le JADE Sakurajosui
Tiara” (Setagaya Ward, Tokyo; 42 units in total), “Le JADE Otsu Nagisa-koen” (Otsu City, Shiga Prefecture; 44 units intotal), etc., not to mention “Le JADE Takatsuki The Marks” (Takatsuki City, Osaka Prefecture; 95 units in total) that isalready contracted to sell out.
In the commercial development business, along with acquiring several sokochi (land with land leasehold rights) of
retail properties, the acquisition of a business site for a logistics facility as a new business field marked a steady step
forward in diversification of the business.
In this manner, with five projects in the Tokyo metropolitan area, four projects in the Kinki area and two projects inother areas in acquisitions of new business sites as the site for for-sale, commercial and other multifaceted
development in the first quarter, steady and proactive operations are underway.
In the real estate leasing business, efforts are being made to secure stable rental income from and enhance asset
value of retail properties, etc. held by ES-CON JAPAN.
In the real estate planning agency and consulting business, focus is being placed as a business achieving highprofit margins through subcontracting, planning agency and consulting and other non-assets by leveraging theplanning and other strengths of ES-CON JAPAN.
As a result, business performance for the first quarter was net sales of 9,915 million yen (up 46.2% compared withthe same period of the previous year), operating income of 2,451 million yen (up 68.1% compared with the same
period of the previous year), ordinary income of 2,199 million yen (up 77.8% compared with the same period of theprevious year) and profit attributable to owners of parent of 2,206 million yen (up 78.5% compared with the same
period of the previous year).
The following is the business performance by segment.
1)

Real estate sales businessIn the real estate sales business, activities included promoting condominium sales and selling three projects ofrevenue-generating real estate, resulting in net sales of 8,954 million yen (up 50.6% compared with the same periodof the previous year) and segment income of 2,662 million yen (up 89.7% compared with the same period of theprevious year).
2)

Real estate leasing businessIn the real estate leasing business, focus was placed on leasing activities and the property management businessin view of enhancement of asset value, including increase in rental income of owned revenue-generating real estate,
resulting in net sales of 943 million yen (up 16.7% compared with the same period of the previous year) and segment
income of 401 million yen (down 14.5% compared with the same period of the previous year).
3)

Real estate planning agency and consulting businessIn the real estate planning agency and consulting business, although proactive efforts were made in such aspects
as entrustment with planning, consulting and other services by making best use of planning and multifacetedbusiness building abilities, the result was net sales of 18 million yen (down 26.6% compared with the same period of
the previous year) and segment income of 18 million yen (down 26.5% compared with the same period of theprevious year).
－3 －(2) Explanation of Financial Position
Financial position
Assets at the end of the first quarter increased by 10,993 million yen compared with the end of the previous term to
84,696 million yen. This was mainly attributable to inventories increasing by 18,308 million yen, and buildings andstructures decreasing by 1,004 million yen and land decreasing by 7,354 million yen.
Liabilities increased by 10,184 million yen compared with the end of the previous term to 66,524 million yen.

This

was mainly attributable to long-term loans payable, short-term loans payable and bonds payable increasing by 10,025
million yen.
Net assets increased by 808 million yen compared with the end of the previous term to 18,172 million yen. This
was attributable to cash dividends paid of 1,017 million yen and purchase of treasury shares of 429 million yen, yetrecording profit attributable to owners of parent of 2,206 million yen.
the end of the previous term).

As a result, equity ratio was 21.5% (23.6% at(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
The consolidated earnings forecast remains unchanged from the forecast announced on February 10, 2017.

－4 －2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Real estate for sale in process
Supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets－

5 －Term ended Dec. 2016(as of Dec. 31, 2016)(Unit: million yen)First quarter ofterm ending Dec. 2017(as of Mar. 31, 2017)

8,204
285
6,103
39,319
32
3,782
(73)
57,654

7,916
373
1,193
62,554
14
4,419
(73)
76,3995,351(1,614)
3,737
9,320
176
(86)
90
13,147

3,793(1,061)
2,732
1,966
176
(92)
83
4,782

17
17

18
18

2,887
(4)
2,883
16,04873,703

3,501
(4)
3,497
8,297
84,696

Term ended Dec. 2016(as of Dec. 31, 2016)
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Provision for directors’ share-based benefits
Provision for share-based benefits
Asset retirement obligations
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
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets－

6 －(Unit: million yen)First quarter ofterm ending Dec. 2017(as of Mar. 31, 2017)

4,308
16,75340
69
4,320
25,492

11,20914,67440
16
4,803
30,744150
29,78454
13
83
761
30,84756,339130
35,00651
1492
484
35,77966,524

6,034
1,763
10,417(876)
17,338

6,058
1,787
11,073(770)
18,14822
22
317,36373,70321
21
218,172
84,696

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Unit: million yen)First quarter ofFirst quarter ofterm ended Dec. 2016
term ending Dec. 2017(from Jan. 1, 2016
(from Jan. 1, 2017
to Mar. 31, 2016)
to Mar. 31, 2017)
Net sales
6,780
9,915
Cost of sales
4,451
6,698
Gross profit
2,329
3,217
Selling, general and administrative expenses
871
766
Operating income
1,457
2,451
Non-operating income
Interest income
00－Penalty income
8
Other
0
0
Total non-operating income
09
Non-operating expenses
Interest expenses
205
257
－
Share issuance cost
13
Other
3
3
Total non-operating expenses
221
261
Ordinary income
1,236
2,199
Extraordinary income－
Gain on sales of non-current assets
11－
Gain on reversal of subscription rights to shares
0
Total extraordinary income
011Extraordinary losses－
Loss on retirement of non-current assets
0－Loss on valuation of investment securities
42
Total extraordinary losses
420Profit before income taxes
1,194
2,210
Income taxes - current
117
18
Income taxes - deferred
(158)
(14)
Total income taxes(41)
3
Profit1,236
2,206
Profit attributable to owners of parent
1,236
2,206

－

7 －

(Quarterly Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities, before tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests－

8 －First quarter ofterm ended Dec. 2016
(from Jan. 1, 2016
to Mar. 31, 2016)
1,236
－
－

(Unit: million yen)First quarter ofterm ending Dec. 2017(from Jan. 1, 2017
to Mar. 31, 2017)
2,206

1,236

(1)
(1)
2,205

1,236
－

2,205
－

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
In the first quarter, there were share-based payments of 11,000 shares to eligible parties from the share-based
payment benefits trust for directors and 100 shares to eligible parties from the share-based payment benefits type
ESOP trust. In addition, purchase of treasury shares of 972,800 shares was made by resolution at the meeting of
the board of directors held on December 27, 2016 and retirement of treasury shares of 1,800,000 shares was madeby resolution at the meeting of the board of directors held on March 24, 2017. As a result, treasury shares
decreased by 106 million yen, resulting in treasury shares at the end of the first quarter of 770 million yen.
(Segment Information, etc.)[Segment Information]
I. First Quarter of Term Ended December 2016 (from January 1, 2016 to March 31, 2016)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment(Unit: million yen)Amount onquarterly
Reconciliation consolidated(Note 1)statement ofincome(Note 2)

Reporting segment
Real estatesales
business

Real estateleasingbusiness

Real estateplanning agency
and consulting
business

5,946

808

25

6,780

－

6,780

－

－

－

－

－

－

5,946

808

25

6,780

－

6,780

1,403

469

25

1,898

(440)

1,457

Total

Net sales
Net sales toexternal customers
Intersegment net
sales or transfers
Total
Segment income(Note 1) The reconciliation of segment income of -440 million yen is corporate expenses not attributable to any reporting
segment. Corporate expenses are general and administrative expenses not attributable to reporting segments.
(Note 2) Segment income is reconciled with operating income on the quarterly consolidated statement of income.
2. Information on Impairment Loss on Non-Current Assets or Goodwill, etc. by Reporting Segment
Not applicable.
II. First Quarter of Term Ending December 2017 (from January 1, 2017 to March 31, 2017)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment(Unit: million yen)Amount onquarterly
Reconciliation consolidated(Note 1)statement ofincome(Note 2)

Reporting segment
Real estatesales
business

Real estateleasingbusiness

Real estateplanning agency
and consulting
business

8,954

943

18

9,915

－

9,915

－

－

－

－

－

－

8,954

943

18

9,915

－

9,915

2,662

401

18

3,082

(631)

2,451

Total

Net sales
Net sales toexternal customers
Intersegment net
sales or transfers
Total
Segment income(Note 1) The reconciliation of segment income of -631 million yen is corporate expenses not attributable to any reporting
segment. Corporate expenses are general and administrative expenses not attributable to reporting segments.
(Note 2) Segment income is reconciled with operating income on the quarterly consolidated statement of income.
2. Information on Impairment Loss on Non-Current Assets or Goodwill, etc. by Reporting Segment
Not applicable.
－ 9 －3. Other
Status of Contracts and Sales
The performance of contracts in the real estate sales business for the first quarter is as follows:First quarter of term ending Dec. 2017(from Jan. 1, 2017
to Mar. 31, 2017)Classification
Contract amount during the period
Number of units(units)Amount(million yen)

Balance of contracts at the end of the period
Number of units(units)Amount(million yen)

Mid- to high-risehousing, etc.

156

6,207

339

13,644

Other

－

3,290

－

9,026

156

9,497

339

22,670Total(Note)

The above amounts do not include consumption tax, etc.

The main performance of sales by segment for the first quarter is as follows:First quarter of term ending Dec. 2017(from Jan. 1, 2017
to Mar. 31, 2017)

Name of segment

Number of units(units)Property nameReal estate sales businessAmount(million yen)

Condominiums

23

1,151

Garden Mall Seiwadai

－

3,290

Nihonbashi-kayabacho

－

2,200

Nihonbashi-bakurocho

－

1,520

2-chome, Kawaguchi, Nishi-ku－

389

Fukuoka Kasuga－

231

Detached housing

2

124

Fukuoka Kasuga District 7－

46

Subtotal

8,954Real estate leasing business

943

Real estate planning agency
and consulting business

18
Total

(Note 1) There are no transactions between segments.
(Note 2) The above amounts do not include consumption tax, etc.

－

10 －

9,915