Summary of Accounts for Fiscal Year Ended December 2020 (Japanese GAAP)(Consolidated)
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 next regular general meeting of shareholders:
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:January 28, 2021
Listing exchange: Tokyo Stock Exchange
URL:
https://www.es-conjapan.co.jp
President & Representative Director
Senior Managing Director TEL: 06 (6223) 8055
March 26, 2021
March 29, 2021
March 29, 2021
No
Yes(for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)

1.

Consolidated results for fiscal year ended December 2020 (from January 1, 2020 to December 31, 2020)(1)(% figures for the full fiscal year show the rate of increase (decrease)
compared with the previous period)

Consolidated operating results
Net sales
million yen

Operating income%

million yen

Profit attributable toowners of parent

Ordinary income%

million yen%

million yen%

Fiscal year ended
77,308
7.2
12,202(5.5)
11,164
(5.5)
7,663
(6.0)
Dec. 2020
Fiscal year ended
72,106
32.7
12,912
11.7
11,810
12.5
8,155
12.9
Dec. 2019
Note: Comprehensive income
Fiscal year ended Dec. 2020: 7,533 million yen (-10.4%) Fiscal year ended Dec. 2019: 8,405 million yen (16.6%)
Basic earnings per
Diluted earnings per
Return on
Return on
Operating margin
share
share
equityassets
yen

yen

%

%

%

Fiscal year ended
111.94111.37
21.2
7.9
15.8
Dec. 2020
Fiscal year ended
119.17118.93
26.8
9.7
17.9
Dec. 2019
Reference: Share of profit (loss) of entities accounted for using equity method
Fiscal year ended Dec. 2020: -109 million yen
Fiscal year ended Dec. 2019: -33 million yen(2)
Consolidated financial position
Total assets
Net assets
Equity ratio
Book value per share
million yen

million yen

Fiscal year ended
149,423
38,627
Dec. 2020
Fiscal year ended
132,696
33,546
Dec. 2019
Reference: Equity
Fiscal year ended Dec. 2020: 38,589 million yen(3)Consolidated cash flows
Net cash provided
Net cash provided byby (used in)(used in) investing
operating activities
activities

yen

25.8

563.0725.3

490.08

Fiscal year ended Dec. 2019: 33,544 million yen
Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodmillion yen

million yen

million yen

million yen

119(9,732)

11,007

23,798122(4,770)10,501

22,413Fiscal year ended
Dec. 2020
Fiscal year ended
Dec. 2019
2. Dividends

Annual dividend
End of first End of second End of third
Year-endquarterquarterquarter
yen
yen
yen
yen

Fiscal year ended
Dec. 2019
Fiscal year ended
Dec. 2020
Fiscal year ending
Dec. 2021(Forecast)

%

Total

Dividend
Dividend on
Total dividend
payout ratio
equityamount (Total)(Consolidated) (Consolidated)yenmillion yen

%

%

－

0.00

－

36.00

36.00

2,490

30.2

8.1

－

0.00

－

38.00

38.00

2,645

33.9

7.2

－

0.00

－

38.00

38.00

- 1 -

－

3.

*

Consolidated earnings forecast for fiscal year ending December 2021 (from January 1, 2021 to December 31, 2021)
Under the situation in which a state of emergency has been declared again due to the spread of COVID-19, ES-CON
JAPAN will announce the earnings forecast for the fiscal year ending December 2021 together with the next new
medium-term management plan based on the resolution passed at the board of directors’ meeting to be held in
February 2021 after fully understanding the impact of the spread of infection on ES-CON Japan Group’s businessactivities.
Explanatory notes(1) Changes in significant subsidiaries during fiscal year
(Changes in specified subsidiaries resulting in change in scope of consolidation):
Newly included: － companies (Company name) －－ companies (Company name) －Excluded:None(2) 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

(3) Number of shares issued and outstanding (common shares)
Fiscal year
Fiscal year
1) Number of shares issued and outstanding
71,961,887
71,841,887
ended Dec.
ended Dec.
(including treasury shares) at end of period
sharesshares2020
2019
Fiscal year
Fiscal year
3,428,400
3,394,700
2) Number of treasury shares at end of period
ended Dec.
ended Dec.
sharesshares2020
2019
Fiscal year
Fiscal year
68,459,909
68,433,365
3) Average number of shares during fiscal year ended Dec.
ended Dec.
sharesshares2020
2019(Note) The number of treasury shares at end of fiscal year includes ES-CON JAPAN shares held in a share-based
payment benefits trust for directors and a share-based payment benefits type ESOP trust (fiscal year ended
December 2020: 851,000 shares in the share-based payment benefits trust for directors and 233,000
shares in the share-based payment benefits type ESOP trust). In the calculation of the average number ofshares during fiscal year, the treasury shares to be subtracted in that calculation include ES-CON JAPAN
shares held in the share-based payment benefits trust for directors and the share-based payment benefits
type ESOP trust (fiscal year ended December 2020: 950,138 shares).
(Reference) Non-consolidated results
1. Non-consolidated results for fiscal year ended December 2020 (from January 1, 2020 to December 31, 2020)(1) Non-consolidated operating results(% figures show the rate of increase (decrease) compared with the previous fiscal year)
Net sales
Operating income
Ordinary income
ProfitFiscal year ended
Dec. 2020
Fiscal year ended
Dec. 2019

million yen%

million yen%

million yen%

million yen%

73,903

5.4

11,980(5.3)

11,121

(4.1)

7,718

(4.2)

70,09629.9

12,654

9.5

11,601

10.5

8,060

11.6

Basic earnings per share
Fiscal year ended
Dec. 2020
Fiscal year ended
Dec. 2019

Diluted earnings per share
yen

yen

112.75112.18117.78117.55

- 2 -

(2)

Non-consolidated financial position
Total assets
million yen

Net assets
million yen

Fiscal year ended
139,940
38,527
Dec. 2020
Fiscal year ended
130,631
33,408Dec. 2019
Reference: Equity
Fiscal year ended Dec. 2020: 38,526 million yen

Equity ratio

Book value per share
%

yen

27.5

562.1525.6

488.07

Fiscal year ended Dec. 2019: 33,406 million yen*

Presentation regarding implementation of audit proceduresThis quarterly summary of accounts is not subject to quarterly review of certified public accountant or Audit
Corporation.

*

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; 1. Overview of Operating Results, Etc.; (1) Analysis of Operating Results” on page 4.

- 3 -Attachment 1
1.

Overview of Operating Results, Etc.
(1) Analysis of Operating Results
In the current fiscal year ended December 2020, the Japanese economy continues to face a harsh situation due tothe spread of COVID-19. The second state of emergency after April 2020 was declared in January 2021, and thesituation remains unpredictable.
In the real estate industry in which the ES-CON JAPAN Group operates, the future impact of COVID-19 on the realestate market is extremely difficult to predict as it is still unforeseeable when the pandemic will end.
Given the difficult business environment described above, we decided to review the third medium-term
management plan “IDEAL to REAL 2022” with a period of three years from the fiscal year ended December 2020 tothe fiscal year ending December 2022, and withdrew the plan in July 2020. Despite being in a situation with anunforeseeable future, we have made strategic moves towards expansion of new business fields and sustainablegrowth by taking the current situation as an opportunity to develop our business.
1) Status of Implementation of Growth Strategy of ESCON JAPAN REIT Investment Corporation
As one of the growth strategies of ESCON JAPAN REIT Investment Corporation (hereinafter “EJR”), of which asset
management is entrusted to ES-CON Asset Management Ltd. (hereinafter “EAM”), a consolidated subsidiary of ESCON JAPAN, a support agreement was concluded among three companies, namely Chuden Real Estate Co., Inc.
(hereinafter “Chuden Real Estate”), EJR and EAM, in September 2019. ES-CON JAPAN transferred real estate forsale it owned (tonarie Yamatotakada (50% interest), tonarie Toga-Mikita (50% interest), commercial leasehold land in
Omihachiman City, Shiga, commercial leasehold land in Muko City, Kyoto, and commercial leasehold land in Ikomagun, Nara) to Chuden Real Estate in February 2020, utilizing temporary warehousing functions and under aprecondition to transfer the real estate to EJR based on the support agreement.
In February 2020, EJR conducted its first public offering after listing, and its asset size increased from 41.6 billion
yen upon listing to 51.9 billion yen after the public offering, steadily expanding the asset size.
ES-CON JAPAN Group fully supports enhancement of earnings and stable growth of EJR as its sponsor and aims
for further growth.
2) Status of Demonstration of Synergy Effect with Chubu Electric Power Group
ES-CON JAPAN concluded a capital and business partnership agreement with Chubu Electric Power Co., Inc. inAugust 2018 to position the Chubu region as a core business area comparable to the Tokyo metropolitan area andthe Kansai region, and established a Nagoya branch in March 2019. Following the establishment, ES-CON JAPANacquired land for six new projects in the Chubu Region.
Furthermore, as a joint project with Chuden Real Estate, ES-CON JAPAN will launch condominium/commercial
development projects in Shirakabe, Higashi-ku, Nagoya City, Ichinomiya City, Aichi, Kakegawa City, Shizuoka andSuita City, Osaka. Through such, ES-CON JAPAN intends to develop businesses that can satisfy local residents bydemonstrating synergy while continuing to strengthen its partnership with each group company of Chubu ElectricPower.
3) Participation in Hokkaido Ballpark Project and Acquisition of Naming Rights for New Ballpark
With regard to the naming rights for the new ballpark of the Hokkaido Nippon-Ham Fighters planned to be establishedand opened in 2023 in Kitahiroshima City, Hokkaido, ES-CON JAPAN concluded a ballpark naming rights agreementwith Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd. and Fighters Sports & Entertainment Co., Ltd., which
manages the entire HOKKAIDO BALLPARK F VILLAGE and owns/operates the ballpark, in January 2020.
The name of the new ballpark will be “ES CON FIELD HOKKAIDO.” The area surrounding the ballpark is an
important base as a planned site for a sports park in Kitahiroshima City and is part of a large-scale development areafor HOKKAIDO BALLPARK F VILLAGE (total development area: approx. 36.7 ha) with construction of a new station
also planned. ES-CON JAPAN is scheduled to participate in the development of various real estate in the area suchas a hotel on the land of approximately 9,400 m2 adjoining the ballpark as well as urban development. After theestablishment of the Hokkaido branch in September 2020, it obtained preferential negotiation rights of partnercompanies for the JR Kitahiroshima Station “West Exit Area Revitalization Project” in Kitahiroshima City, Hokkaido in
December 2020. ES-CON JAPAN will seize this opportunity to also start supporting sports, cultural promotion, etc. forthe happiness of the residents of Hokkaido and contribute to revitalization and development of the entire community.
- 4 -4) Initiatives for the Formation of Private REIT
ES-CON JAPAN intends to form and commence operation of a private real estate investment corporation (private
REIT) with EAM as the party entrusted with asset management in fiscal 2021, and formed a private fund operating
rental apartments in Higashiyamato City, Tokyo, and Fujisawa City, Kanagawa Prefecture, in September 2020 incooperation with NISSHIN FUDOSAN Company, Limited and a private fund operating rental apartments in Inagi City,
Tokyo in December 2020.
5) Launch of Sale and Management of Permanent Use Rights of Columbarium
ES-CON JAPAN plans to newly launch operation and management of an urban columbarium in Minato Ward, Tokyo,
and sale of permanent use rights of a columbarium in March 2021 to solve issues in modern society, such as ashortage of burial grounds due to a large number of deaths resulting from aging population, the situation in which
there will be nobody to look after graves due to small families with fewer children, and particularly the situation inwhich having a grave in central Tokyo is extremely difficult.
6) Status of Initiatives for Other New Businesses
Under the circumstances in which the Amended Immigration Control Act, which newly accepts the status of residence
in some business types, was enforced in April 2019 and improvement in the working environment for foreign workers
has progressed against the backdrop of a serious labor shortage, ES-CON JAPAN established, as part of its ESG
management, “ES-CON Global Works Ltd.,” a consolidated subsidiary engaged in the employment placementbusiness, to help solve such social issues and launched employment placement services for foreigners specializing in
the restaurant industry, accommodation industry, and building-cleaning as well as an overseas expansion consulting
business in March 2020.
In addition, in April 2020, ES-CON JAPAN invested in SQUEEZE Inc., which develops systems for hotel operationand conducts a hotel operation business. While ES-CON JAPAN cautiously engages in hotel development projects
under the COVID-19 pandemic, ES-CON JAPAN aims to strengthen its real estate operation business and establish
IT strategies by utilizing the company’s know-how on system development to prepare for future recovery of inboundtourists.
ES-CON JAPAN will continue to challenge new business fields, and aim for sustainable growth of the entire group.
7) Overseas Investment Business
In March 2019, ES-CON JAPAN made a commitment to invest in a Hawaii-focused, closed-end real estate
investment fund as its new overseas business. In July 2019, ES-CON JAPAN established its subsidiary ESCON
JAPAN (Thailand) CO., LTD. in Thailand, and participated in a for-sale condominium joint development project inBangkok. ESCON JAPAN is steadily developing its overseas business through efforts such as committing to newinvestment in a California-focused, closed-end real estate investment fund in March 2020.
8) Status of ESG Initiatives
ES-CON JAPAN has set “Address social issues through promotion of ESG initiatives” as one of its corporate
strategies. As part of such activities, ES-CON JAPAN is providing a monetary donation to Kyoto University’s “iPS Cell
Research Fund” to support activities realizing provision of early and inexpensive treatment using iPS cells for many
people suffering from diseases and accidents, in addition to initiatives in new businesses which will contribute toregional revitalization and help solve social issues.
In addition, in March and December 2020, ES-CON JAPAN realized fund procurement through an “ESG/SDGs
assessment-based loan” provided by Sumitomo Mitsui Banking Corporation. Of the project funds of the syndicate
loan with Sumitomo Mitsui Banking Corporation as the arranger to fund the Fujishirodai 5-Chome project (joint projectwith Chuden Real Estate) whose site was acquired in March 2020, 3 billion yen was procured through the“ESG/SDGs assessment-based loan” upon earning a rank of A*, the third-best ranking among the seven rankings,
indicating that “good ESG/SDG initiatives and information disclosure have been conducted” in March 2020. In
addition, it raised 3.5 billion yen with its syndicated loan in the “Tsukuba Creo (commercial facility) project, which isunder development in Tsukuba City, Ibaraki Prefecture, by earning the above rank, the third-best ranking among theseven rankings, in December 2020.

- 5 -In May 2020, ES-CON JAPAN acquired EcoAction 21 Certification, a Japanese environmental management system(EMS) established by the Ministry of the Environment. EcoAction 21 is an EMS for proactive, effective environmental
management including reduction of CO2 emissions, and EMS activities aim for continuous efforts based on the PDCA
cycle. By continuing to conduct environmentally friendly management through EcoAction 21 initiatives, companies are
expected to fulfill their social responsibility to reduce environmental burden while such activities also bring benefits tomanagement, such as cost reduction and improved productivity, and contribute to the enhancement of corporate
value.
In July 2020, tonarie Yamatotakada and tonarie Toga-Mikita, which were developed by ES-CON JAPAN and owned
by EJR and Chuden Real Estate, obtained DBJ Green Building Certification (a certification system created by theDevelopment Bank of Japan (hereinafter “DBJ”) in April 2011 to support real estate properties with environmental andsocial awareness (“Green Building”)) from DBJ.
Furthermore, in July 2020, SOYOCA FUJIMINO, a retail property owned by ES-CON JAPAN, obtained “Rank S,”
the highest mark of CASBEE for real estate from a CASBEE (*1) accreditation body authorized by Institute for
Building Environment and Energy Conservation.
*1

CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system to comprehensively assess the quality of abuilding, which evaluates and ranks the environmental performance of the building by taking into account not only environmental
considerations such as energy savings and use of environmentally-friendly materials, but also comfort in the building, and its visual
impact on the area.

In November 2020, ES-CON JAPAN registered ZEH Builder Certification (*2) at ES-CON Home Co., Ltd. and ESCON Craft Co., Ltd., which are its consolidated subsidiaries.
*2

The system is designed to conduct public advertisement targeting building contractors, housing developers, and architectural design
offices setting a business goal to increase the percentage of ZEH among houses for which they receive orders to 50% or more by fiscal
2020, and certify business operators that fulfill certain requirements including the establishment of goals and measures for spreading
ZEH as “ZEH Builders.”

Furthermore, in terms of governance, ES-CON JAPAN established the “Nomination and Remuneration Advisory
Committee” in January 2020 with an aim to strengthen the independence and objectivity of functions as well as theaccountability of the board of directors with regard to nomination and remuneration of directors. ES-CON JAPAN also
launched initiatives for a succession plan called the candidate successor system.
ES-CON JAPAN will continue with steady implementation of ESG management as an important management
strategy, and make proactive efforts with an aim to achieve sustainable growth of ES-CON JAPAN Group.
9) Business Development by Segment
In the real estate sales business, our core business, we conducted revenue-generating real estate sales, etc., inaddition to achieving progress in condominium sales.
In the real estate sales business, sales of new projects “Le JADE City Hyotanyama (Higashiosaka City, Osaka
Prefecture; 233 units in total),” “Le JADE Tennoji Katsuyama (Tennoji Ward, Osaka City; 39 units in total),” “Le JADE
Neyagawa Koen (Neyagawa City, Osaka Prefecture; 61 units in total), etc. started while “Le JADE Kuzuha (Hirakata
City, Osaka Prefecture; 78 units in total),” “Le JADE Kotoen (Nishinomiya City, Hyogo Prefecture; 49 units in total),”“Le JADE Higashisumiyoshi Imagawa Ryokudo (Higashisumiyoshi Ward, Osaka City; 41 units in total),” “Le JADE
Toyoda Master Hills (Hino City, Tokyo; 63 units in total)”, “Le JADE Okurayama (Kohoku Ward, Yokohama City; 25units in total)”, “Le JADE Ikeda Masumicho (Ikeda City, Osaka Prefecture; 35 units in total),” “Le JADE Morinomiya(Higashinari Ward, Osaka City; 45 units in total)” and “Le JADE Takatsuki Miyanocho (Takatsuki City, Osaka
Prefecture; 99 units in total)” were sold out upon completion and “Le JADE Nishi-Akashi (Akashi City, Hyogo
Prefecture; 77 units in total),” which is scheduled for completion in the next fiscal year, is contracted to sell out.
In order to develop multifaceted businesses not only in Fukuoka Prefecture but also across Kyushu going forward,
EC-CON JAPAN changed the name of its Fukuoka branch to “Kyushu branch” in September 2020 and acquired thefirst new land for the condominium sales business (Minami Ward, Fukuoka Prefecture) and retail facility “Suroy Mall
Nagamine (Kumamoto City, Kumamoto Prefecture)” in the Kyushu area as well.
In businesses other than the real estate sales business, sales of “LOGITRES Tojo (Kato City, Hyogo Prefecture)” (alogistics development project), “Honjo-Nishi, Kita-ku,” “Matsubara, Setagaya-ku”, “Minami-Otsuka, Toshima-ku” and“Daikyocho, Shinjuku-ku” (all revenue-generating real estate); and transfer of commercial facilities and commercial
leasehold lands to EJR and Chuden Real Estate have been completed.
In the real estate leasing business, efforts are being made to secure stable rental income from retail properties heldby ES-CON JAPAN and to enhance their asset value.
- 6 -In the real estate planning agency and consulting business, focus is placed on being 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 fiscal year ended December 2020 was net sales of 77,308 million yen (up7.2% compared with the previous fiscal year), operating income of 12,202 million yen (down 5.5% compared with theprevious fiscal year), ordinary income of 11,164 million yen (down 5.5% compared with the previous fiscal year) andprofit attributable to owners of parent of 7,663 million yen (down 6.0% compared with the previous fiscal year).
The following describes the operating results by each segment.
a. Real estate sales businessIn the real estate sales business, activities including sales of condominiums and revenue-generating real estate
resulted in net sales of 71,485 million yen (up 7.2% compared with the previous fiscal year) and segment income of
14,257 million yen (up 3.3% compared with the previous fiscal year).
b. Real estate leasing businessIn the real estate leasing business, focus was placed on leasing activities and the property management business inview of enhancement of asset value, including increase in rental income of owned revenue-generating real estate,such efforts resulted in net sales of 5,527 million yen (up 10.0%) and segment income of 2,381 million yen (down
20.7%).
c. Real estate planning agency and consulting businessIn the real estate planning agency and consulting business, proactive efforts were made in such aspects as
entrustment with planning, consulting and other services by making the best use of planning and multifacetedbusiness building abilities, resulting in net sales of 295 million yen (down 20.7% compared with the previous fiscal
year) and segment income of 152 million yen (down 46.9% compared with the previous fiscal year).
(Earnings outlook for the next fiscal year)
Under the situation in which a state of emergency has been declared again due to the spread of COVID-19, ES-CON
JAPAN will announce the earnings forecast for the fiscal year ending December 2021 together with the next new
medium-term management plan for the next fiscal year based on the resolution to be passed at the board of directors’
meeting to be held in February 2021 after fully understanding the impact of the spread of infection on ES-CON Japan
Group’s business activities.
(New medium-term management plan)
ES-CON Japan is currently formulating a new medium-term management plan taking into account both the stability of
being able to withstand unexpected risks, such as the impact of the spread of COVID-19 on the economy, andsustainable growth. The new medium-term management plan will be announced after the resolution at the board of
directors’ meeting to be held in February 2021.
(Dividend for the next fiscal year)
For the next fiscal year, the dividend forecast is 38 yen per share.

- 7 -(2) Analysis of Financial Position
1) Assets, Liabilities and Net Assets
Assets at the end of the fiscal year ended December 2020 increased by 16,726 million yen compared with the end of
the previous fiscal year to 149,423 million yen. This was mainly attributable to cash and deposits, inventories andnon-current assets increasing by 1,359 million yen, 4,724 million yen and 8,747 million yen, respectively.
Liabilities increased by 11,645 million yen in comparison with the end of the previous fiscal year to 110,795 million
yen. This was mainly attributable to long-term loans payable, short-term loans payable and bonds increasing by
13,520 million yen.
Net assets increased by 5,080 million yen compared with the end of the previous fiscal year to 38,627 million yen.
This was attributable to cash dividends paid of 2,490 million yen, while recording profit attributable to owners ofparent of 7,663 million yen. As a result, the equity ratio was 25.8% (25.3% at the end of the previous fiscal year).
2) Cash Flows
Cash and cash equivalents (“net cash”) in the fiscal year ended December 2020 increased by 1,385 million yen
compared with the end of the previous fiscal year to 23,798 million yen (22,413 million yen at the end of the previous
fiscal year). The following outlines the cash flows and the factors of changes in cash flows in the fiscal year ended
December 2020.
(Cash flows from operating activities)
Cash flows from operating activities in the fiscal year ended December 2020 amounted to net cash provided byoperating activities of 119 million yen (net cash used in operating activities of 122 million yen in the previous fiscal
year). This was mainly attributable to the increase in inventories of 4,370 million yen, interest expenses paid of 1,195
million and income taxes paid of 5,072 million yen, despite the recording of profit before income taxes of 11,164
million yen.
(Cash flows from investing activities)
Cash flows from investing activities in the fiscal year ended December 2020 amounted to net cash used in investing
activities of 9,732 million yen (net cash provided by investing activities of 4,770 million yen in the previous fiscal year).
This was mainly attributable to purchase of investment securities of 1,913 million yen and purchase of non-current
assets of 6,555 million yen.
(Cash flows from financing activities)
Cash flows from financing activities in the fiscal year ended December 2020 amounted to net cash provided byfinancing activities of 11,007 million yen (net cash provided by financing activities of 10,501 million yen in the previous
fiscal year). This was mainly attributable to proceeds from and repayments of long-term loans payable and short-termloans payable amounting to net proceeds of 13,576 million yen and payment of cash dividends of 2,488 million yen.
Reference: Changes in cash flow indicators

Equity ratio (%)
Equity ratio on market capitalization basis(%)
Ratio of interest-bearing liabilities to cash
flows (%)
Interest coverage ratio (times)

Fiscal year
ended Dec.
2016

Fiscal year
ended Dec.
2017

Fiscal year
ended Dec.
2018

Fiscal year
ended Dec.
2019

Fiscal year
ended Dec.
2020

23.6

24.8

24.9

25.3

25.8

41.9

54.0

42.2

50.7

39.3

－

－

－

－

－

－

－

－

0.1

0.1

Equity ratio: Equity ÷ Total assets
Equity ratio on market capitalization basis: Market capitalization ÷ Total assets
Ratio of interest-bearing liabilities to cash flows: Interest-bearing liabilities ÷ Operating cash flows
Interest coverage ratio: Operating cash flows ÷ Interest paid
Notes: 1 Each is calculated using consolidated financial figures.
2Market capitalization is calculated by multiplying the closing share price at end of fiscal year by the
number of shares issued and outstanding at end of fiscal year.
- 8 -

3

Operating cash flows are the cash flows from operating activities on the consolidated statement of cash

4flows.
Interest-bearing liabilities are all of those liabilities recorded on the consolidated balance sheet of which5

are liabilities on which interest is payable.
Interest paid is the interest expenses paid on the consolidated statement of cash flows.

6

Ratio of interest-bearing liabilities to cash flows and interest coverage ratio are not stated for fiscal years
that have negative operating cash flows.

(3) Basic Policy on Distribution of Profit, and Dividend for the Current Fiscal Year and Next Fiscal Year
Positioning the return of profit to shareholders as a key management task, ES-CON JAPAN makes it a basic policy to
strive for uninterrupted and stable return of profit in line with corporate growth potential based on decisions that take
into account the status of business performance, availability of internal reserves, dividend payout ratio and otherfactors in a comprehensive manner.
ES-CON JAPAN introduced the progressive dividend policy (a dividend policy that sets the dividend per share(DPS) for the previous fiscal year as the lower limit and “does not decrease the dividend amount, but rather only
maintain or increase the dividend amount” in principle) in the second medium-term management plan and has
continued to implement it in the third medium-term management plan. However, ES-CON JAPAN has decided towithdraw this “progressive dividend policy” in July 2020 in light of the fact that it is unforeseeable when the COVID-19
pandemic will end and that it is extremely difficult to predict the impact on the economic trend, etc. Moreover, ESCON JAPAN will maintain a payout ratio of 30% or more.
ES-CON JAPAN intends to work to improve transparency of the future dividend level, further increase return ofprofit to shareholders and enhance corporate value continuously while realizing stable distribution.
For the fiscal year ended December 2020, the year-end dividend forecast will remain unchanged at 38 yen per
share as initially scheduled.
The dividend payout ratio is 33.9%.
For the fiscal year ending December 2021, the dividend forecast is 38 yen per share.
(4) Business Risks
The main risks that could impact ES-CON JAPAN Group’s operating results, share prices, financial status, etc., arelisted below. Statements concerning future matters are based on the judgements of ES-CON JAPAN Group as of theend of the current fiscal year.
1) Impact of the Spread of COVID-19
The spread of COVID-19 is continuing and a renewed state of emergency has been declared, etc. Given that COVID19’s impact on the economy is grave and that there are concerns over its further spread, it is extremely difficult toforesee the future real estate market trends. If the pandemic continues over a long term, the economy is expected tofurther deteriorate. In such a case, the operating results, financial position, and status of cash flow of ES-CON JAPANGroup may be materially impacted due to posting of appraisal loss of inventories and impairment loss, etc.
a. Condominium sales
In the condominium sales business, although the number of visitors to showrooms dropped significantly during
the state of emergency of April to May 2020 and caused a slowdown in sales, the number picked up gradually
after the state of emergency was lifted. The current situation indicates that the actual demand for housing under
the pandemic remains stronger than expected. However, given the renewed state of emergency declared in
January 2021, the future remains unpredictable, and it is possible that sales could slow in light of unstableeconomic trends brought by the prolonged pandemic.
b. Real estate (other) sales business
There is a risk that real estate prices could decrease due to a reduced appetite for investment among investors,
the worsening financing environment resulting from financial contraction, and other factors.

- 9 -c. Retail properties
ES-CON JAPAN Group owns and manages retail properties centering on community-based shopping centerswith 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, othertenants, such as restaurants, apparel shops and sports clubs have seen a slow return of customers and are stillfacing difficulty in business operations. As such, there is a risk of possible decrease in planned real estate leasing
income due to rent reduction requests, uncollected rents of bankrupted tenants, difficulty in soliciting new tenants,etc.
d. Hotels
ES-CON JAPAN has been promoting hotel development projects in recent years, and has completed sales for 15
out of its 17 projects. As to the 2 projects underway (Fukuoka City Project opened in March 2020 and Osaka City
Project opened in January 2021), there is a risk of possible delay in the sales period or decrease in sales prices
due to the sluggish occupancy rate and difficulty in predicting the time needed for recovery.
While having adopted remote work and off-peak commuting, ES-CON JAPAN Group will continue to thoroughly
implement measures to prevent the spread of COVID-19, such as mask-wearing, hand-washing, sanitizing handswith alcohol and avoiding three Cs (closed spaces, crowded places, close-contact settings).
2) Legal Restrictions, Etc.
In addition to the restrictions of the Companies Act and the Financial Instruments and Exchange Act, the real estateindustry to which the ES-CON JAPAN Group belongs is subject to the restrictions of the National Land Use Planning
Act, Real Estate Brokerage Act, Building Standards Act, Act on Maintenance of Sanitation in Buildings, Act on
Specified Joint Real Estate Ventures, Act on Securitization of Assets, Trust Business Act, and Money Lending
Business Act, etc.
In addition, ES-CON JAPAN Group conducts real estate sales and related business as a real estate company
licensed under the Real Estate Brokerage Act and the Act on Advancement of Proper Condominium Management,
etc., but the abolition of these or creation of new legal restrictions could affect ES-CON JAPAN Group's businessperformance.
3) Dependence on Interest-Bearing Liabilities
The Group procures funds for land acquisition, etc. related to its real estate business primarily through borrowings
from financial institutions involved in project finance. In our condominium sale business, it takes time to get from landacquisition to commercialization or sale, so the ratio of interest-bearing liabilities to total assets is relatively high. We
are committed to building and maintaining good business relationships with financial institutions including the mainbanks and strengthening and stabilizing our financial foundation, but raising insufficient or unreliable capital due toincreased interest rates or a significant deterioration of the financial environment could affect the Group's businessperformance and financial condition.
4) Human Resources
Rather than vertical integration, the Group seeks to build an organizational structure that is closely linked horizontally,
oriented toward efficiency and agile management, able to flexibly promote business and manifest the greatest value
and performance with the smallest number of people. Our real estate-related business requires diverse expertise,making personnel an extremely important business resource. In order to conduct reliable business and grow as aGroup, it is indispensable that we strive to share expertise and information and continue to improve employees'
abilities as well as secure highly specialized personnel and employ, nurture and educate executives and young
employees who will be the leaders of the next generation. However, failing to secure or nurture the human resourcessought by the Group or losing outstanding personnel could affect the Group's business performance and futurebusiness development.

- 10 -

5) Management of Personal Information
In the course of the Group's business, we receive the personal information of customers who have purchased
condominiums or detached houses, have considered doing so, or reside in rental apartments as a business operator
handling personal information under the Act on the Protection of Personal Information. We have established rules (abasic policy, regulations and a manual) on the handling of personal information to improve the process and, regarding
the system, we have implemented strict storage of personal information, introduced an OA system monitoring
software, and restricted access in order to refine our handling of both personal and non-personal information.
However, in the event of unforeseen circumstances causing personal information to be leaked, sales could fall due
to a loss of trust in the Group or costs could be incurred due to compensation for damages, which in turn could affect
the Group's business performance.
6) Important Litigation
Regarding the risk of becoming subject to litigation, the Risk Management Committee consisting of directors and risk
management members from each division monitors risks and shares information across the Group. Important
litigation could affect the Group's business performance and financial condition.

- 11 -

Attachment 2
Management Policy(1) Basic Policy on Corporate Management
How should we live each day and participate in society, how can we contribute to society, and how can we achieve
the happiness we seek as individual human beings through the benefits that our contribution brings to society? The
ES-CON JAPAN Group strives to answer these questions by continually providing meaningful opportunities to its
employees to help and encourage each other in the achievement of their full potential as individuals while
experiencing the joy of contribution to society through their work. This is the management philosophy of the ES-CON
JAPAN Group, the realization of which is pursued by setting and striving to realize the following management policy.
1) To create new value that will truly satisfy customers by unleashing the infinite possibilities of real estate throughinformation, planning and product development abilities.
2) To constantly strive to remain ahead of the competition through aggressive management combined with strong
defensive strategies centering on in-depth control of ROA, cash flows and risk.
3) To aim to be small teams of highly skilled professionals in order to maintain the ability to adapt quickly andflexibly in today’s rapidly changing social environment.
4) To build and maintain good cooperative relationships, both internally and externally, based on respect for andgratitude to colleagues and those in other organizations.
5) To form an open organizational structure in which ideas can flow freely from front-line staff to senior
management, while also enhancing the internal audit system, with compliance and governance in mind.
(Corporate Branding Concept)
IDEAL to REAL ~Making the ideal real, and creating a new future~
Our aim as a life developer is to develop tangible properties as well as imagine and develop happy living for thepeople who will live there. With new unprecedented and think-outside-the-box approaches, we aim to create new
wealth and connect people, communities and the future. We will strive to make the ideal real by exploring theinfinite possibilities of real estate.
(2) Medium- to Long-Term Corporate Management Strategy and Management Indicator Targets
We are currently reformulating a new medium-term management plan. Despite being in a situation with anunforeseeable future due to the spread of COVID-19, we will make strategic moves towards expansion of new
business fields and sustainable growth by taking such environment as an opportunity to develop our business.
(3) Issues to Be Addressed by the Company
Our business environment is in the midst of rapid, unprecedented change in social structure, such as rapid aging,income inequality, population decline, influx of foreigners, digital technology development such as IoT and AI, crossindustry competition and changes in customer behavior, making customers’ selection and evaluation even more
stringent, competition more intense and our value as a company constantly challenged. At present, COVID-19 is
rampant and the business environment is undergoing drastic change. In order to continue growing and contributing tosociety in this age of accelerating diversification and change, we, as the ES-CON JAPAN Group, need to assume a
new attitude not bound by precedent and established concepts, implementing a policy of consistently supplying
excellent products, maintaining a firm financial base, growing surely and steadily through the satisfaction of ourcustomers, and aiming to be a “life developer” bringing the ideal into reality and creating a lifestyle with the happinessof those living it as our top priority.
Through a multifaceted real estate business that includes residential development, commercial development,
logistics development, office development, hotel development, overseas business, planning/consulting, facility
operation management, asset management, and a columbarium business, our goal is to become a one-of-a-kindcompany that always strikes the optimal balance of businesses in its operations, builds a firm management base thatcan withstand any economic environment, maximizes its corporate value, and increases shareholder returns.

- 12 -

Our specific endeavors are the following:(1) Business Management Structure
Naturally, there is a limit to land prices that can fetch certain profit, so purchasing at appropriate prices is one of ourmost important tasks. In order to purchase good-quality land, we must secure and nurture personnel, constantly
expand information channels and make quick, bold but also careful decisions.
Based on the industry characteristic of a tendency toward larger balances of borrowings, we expect a disparity withplanned income to arise amid increased interest rates, so we need to reduce procurement costs, diversify
procurement methods and improve cashflow. In addition to achieving our medium-term management plan, we willcontinue to focus on strengthening our financial standing to ensure steady management in the economic climate.
(2) Internal Organizational Reinforcement
We are working to become a "life developer" that shapes the very lives of residents. In our condominiums, ourstrength is taking the perspective of the customer, especially families, and embarking on projects that not only meettheir needs in the present but also conduct layout and design matching the location and environment.
Two properties are alike in form or location. Our mission is to propose and provide not only forms and locations but
also the ideal housing, ideal areas and ideal living environments in the eyes of those who live in the area as well as
in our residences, etc., so to us, we do not merely create spaces in which we live, propose and live richer lives. In
order to not only provide specifications and designs that can easily be customized but also offer competitiveness inthe product at the land acquisition stage or even the basic planning stage, we put customer need-based value andprofitability ahead of the size of the project or number of units, constantly asking ourselves, "What is the best plan forthis project?"
For this reason, our system unites those in charge of purchasing, planning and sale in one project from start to finish.
This system is our strength and we will preserve a sense of crisis in order to maintain and enhance the system sothat it can retain dominance in any business environment.

(3) New BusinessWe have set and comply with NOI standards that enable possession of our acquisitions and developments
regardless of economic changes.
Our real estate development business is not limited to development of condominiums and commercial facilities. In
recent years, we are working on hotel developments that capture needs from inbound tourists as well as logistics
facility development in light of the growth of the e-commerce market and land planning business that revitalizes
communities. We will aim for the diversification of business eyeing the next generation.
In our real estate securitization business, our consolidated subsidiary ES-CON Asset Management is working toward
the listing of our REIT and we are prioritizing development of land with commercial tenant leasehold rights bysteadily supplementing personnel, gathering information on potential development projects and acquiring properties.
In addition to developing real estate, in order to solidify our position as the only general developer with theoperational capability suited to the function of the real estate, our consolidated subsidiary ES-CON Living Service
will expand the breadth and depth of our development capabilities by enhancing real estate operation.

- 13 -

Attachment 3

Consolidated Financial Statements(1)

Consolidated Balance Sheet(Unit: million yen)
Fiscal year ended Dec. 2019(as of Dec. 31, 2019)

Fiscal year ended Dec. 2020(as of Dec. 31, 2020)*2 22,511*2 23,870

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Real estate for sale in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
VehiclesAccumulated depreciation
Vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

598*2 24,234*2 59,619
7,173－
114,137- 14 -

927*2 6,262*2 82,316

8,739
(0)
122,117

3,216
(566)
*2 2,6497(6)1*2 10,621
4
(3)
1
0
281
(122)
*2 15913,4334,359(889)*2 3,4706(6)0*2 11,262
4
(4)
0
1
321
(180)
*2 141
14,876

436
56
492

339
63
403

*1 2,711*1 3,556

662
1,296
(37)
4,632
18,558132,696

406
8,101
(37)
12,02627,306
149,423

(Unit: million yen)
Fiscal year ended Dec. 2019(as of Dec. 31, 2019)
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Accounts payable - other
Income taxes payable
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
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-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeSubscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets- 15 -

Fiscal year ended Dec. 2020(as of Dec. 31, 2020)*2 4,580*2 2,907*2 32,415*2 26,093

40
1
2,097
3,396
2,809
4,733
126
50,199

230
0
1,590
1,460
2,233
4,583
713
39,813230－*2 47,720*2 69,274

0
2
114
35
249
597
48,95099,149

－
2
135
46
260
1,262
70,982
110,795

6,275
2,004
26,256(1,247)33,2886,284
2,088
31,429(1,348)38,454

256

153

(0)

(18)

256

134

1
0
33,546132,696

1
37
38,627
149,423(2)Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)(Unit: million yen)
Fiscal year ended Dec. 2019(from Jan. 1, 2019
to Dec. 31, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Sales commission
Directors’ compensations
Salaries and allowances
Provision for directors’ share-based benefits
Provision for share-based benefits
Commission fee
Taxes and dues
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Cancellation income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

72,10677,308*1 52,339*1 57,628

19,767

19,679

2,218
726
210
1,375
16
5
388
639
1,273
6,854
12,912

2,524
502
308
1,723
21
10
333
559
1,492
7,477
12,202

5
35
30
8
4
84

16
93
19
－
26
155

1,143

1,047

33

109

9
1,186
11,81037
1,194
11,164

－
0
0

*2 0

*3 7

*3 0

7
11,803
4,057
(409)
3,648
8,155
－

0
11,164
3,212
297
3,509
7,654
(8)
7,663

8,155

- 16 -

Fiscal year ended Dec. 2020
(from Jan. 1, 2020
to Dec. 31, 2020)

00(Consolidated Statement of Comprehensive Income)(Unit: million yen)
Fiscal year ended Dec. 2019(from Jan. 1, 2019
to Dec. 31, 2019)

Fiscal year ended Dec. 2020
(from Jan. 1, 2020
to Dec. 31, 2020)

8,155

7,654

250

(103)

(0)

0

(0)

(18)

250
8,405

(121)
7,533

8,405

7,541

－

(8)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
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 to:Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests- 17 -

(3)Consolidated Statement of Changes in Equity
Fiscal year ended December 2019 (from January 1, 2019 to December 31, 2019)(Unit: million yen)
Shareholders’ equity
Capital stock

Balance at beginning ofcurrent period
Changes of items during
periodCapital surplus

6,259

1,988

15

15

Issuance of new shares

Retained earnings
20,310(1,207)27,35230

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of treasury
shares by the share-based
payment benefits trust for
directors
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
periodTotal shareholders’equityTreasury shares(2,209)(2,209)

8,155

8,155
(40)

(40)

0

0

－

15

15

5,945

(40)

5,936

6,275

2,004

26,256(1,247)33,288

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-for-saleadjustment
comprehensive
securities
incomeBalance at beginning ofcurrent period
Changes of items during
period6－

6

Subscription
rights to shares

Non-controllinginterests

Total net assets

1－

27,359Issuance of new shares

30

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of treasury
shares by the share-based
payment benefits trust for
directors
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(2,209)
8,155
(40)
0

－

250

(0)

250

(0)

0

250

250

(0)

250

(0)

0

6,187

256

(0)

256

1

0

33,546- 18 -

Fiscal year ended December 2020 (from January 1, 2020 to December 31, 2020)(Unit: million yen)
Shareholders’ equity
Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,275

2,004

26,256(1,247)33,2889

9

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

18

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of treasury
shares by the share-based
payment benefits trust for
directors
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(2,490)(2,490)

7,663

7,663
－

74

132

207

(233)

(233)

9

84

5,173

(101)

5,165

6,284

2,088

31,429(1,348)38,454

Accumulated other comprehensive income
Total
Valuation
Foreign currency accumulateddifference ontranslation
otheravailable-for-saleadjustment
comprehensive
securities
incomeBalance at beginning ofcurrent period
Changes of items during
period

256

(0)

256

Subscription
rights to shares

Non-controllinginterests

Total net assets

1

0

33,546

Issuance of new shares

18

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesPurchase of treasury
shares by the share-based
payment benefits trust for
directors
Net changes of items
other than shareholders’equityTotal changes of items
during period
Balance at end of current
period(2,490)
7,663
－
207

(233)

(103)

(17)

(121)

(0)

36

(84)

(103)

(17)

(121)

(0)

36

5,080

153

(18)

134

1

37

38,627- 19 -

(4)Consolidated Statement of Cash Flows(Unit: million yen)
Fiscal year ended Dec. 2019(from Jan. 1, 2019
to Dec. 31, 2019)

Fiscal year ended Dec. 2020
(from Jan. 1, 2020
to Dec. 31, 2020)

11,803
176
48－

11,164
399
100
4

－

0

16

21

5

10

(40)
1,143
(8)

(109)
1,047
31

33

109

－
7

(0)
0

(84)

(329)

(10,179)55
135(4,370)
(381)
(358)

(239)

192

(246)
95
638
75
3,436
40
(1,109)(2,245)
122

(576)
187
(805)
(45)
6,291
95
(1,195)(5,072)
119

(18)
18
(1,641)－(18)
19(1,913)
9

516

717

(3,295)61(3)(6,555)
86
－

－

*3 91

*2 (310)

－

(300)
0
1,130
(927)
－

(2,930)
500
1,244
(983)
(2)
(9,732)

Net cash provided by (used in) operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Amortization of long-term prepaid expenses
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for directors’share-based benefits
Increase (decrease) in provision for share-based
benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts
receivable - trade
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in accounts payable - other
Decrease/increase in consumption taxes
receivable/payable
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from withdrawal of investment
securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Payments for asset retirement obligations
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments of loans receivableCollection of loans receivable
Proceeds from guarantee deposits received
Repayments of guarantee deposits received
Payments for investments in capital
Net cash provided by (used in) investing activities(4,770)- 20 -

(Unit: million yen)
Fiscal year ended Dec. 2019(from Jan. 1, 2019
to Dec. 31, 2019)

Fiscal year ended Dec. 2020
(from Jan. 1, 2020
to Dec. 31, 2020)

6,714(5,220)44,231(32,930)
(40)
(0)
(34)
30

8,018
(9,690)62,166(46,917)
(40)
(1)
(31)
18

0

－

(40)
－
(2,207)
10,501(233)
207(2,488)11,007

(3)

(8)

5,849

1,385

Net cash provided by (used in) financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Repayments of installment payables
Proceeds from issuance of common shares
Proceeds from share issuance to non-controllingshareholders
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paid
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- 21 -

16,563

22,413*1 22,413*1 23,798

(5)Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Segment Information, Etc.)
Information on Net Sales, Income or Loss, Assets and Other Item Amounts by Reporting Segment
I. Fiscal year ended December 2019 (from January 1, 2019 to December 31, 2019)(Unit: million yen)
Reporting segment
Real estate
Real estate sales
Real estateplanning agency
businessleasing business and consulting
business

Total

Amount on
consolidated
Reconciliation
financial(Note 1)statements(Note 2)

Net sales
Net sales to externalcustomers

66,7105,022

372

72,106－

72,106

－

－

－

－

－

－

66,7105,022

372

72,106－

72,106

Segment income

13,802

3,001

286

17,091(4,178)12,912

Segment assets

90,633

17,216

2

107,852

24,843

132,696

Depreciation

－

105

－

105

71

176

Amortization of
goodwill

48

－

－

48

－

48

417

－

－

417

－

417

485

2,824

－

3,309

577

3,886

Intersegment net
sales or transfers
Total

Other items

Amount ofinvestment inentities accounted
for using equity
methodIncrease in property,
plant and equipment
and intangible
assets(Note 1)

Reconciliations are as follows:(1) The reconciliation of segment income of -4,178 million yen is corporate expenses not attributable to any
reporting segment. Corporate expenses are general and administrative expenses not attributable toreporting segments.
(2) The reconciliation of segment assets of 24,843 million yen is mainly surplus operating funds (cash anddeposits), administrative assets, etc. not attributable to reporting segments.
(3) The reconciliation of depreciation of 71 million yen is depreciation on corporate assets not attributable toreporting segments.
(4) The reconciliation of increase in property, plant and equipment and intangible assets of 577 million yen is(Note 2)increase in corporate assets not attributable to reporting segments.
Segment income is reconciled with operating income on the consolidated statement of income.

- 22 -

II. Fiscal year ended December 2020 (from January 1, 2020 to December 31, 2020)(Unit: million yen)
Reporting segment
Real estate
Real estate sales
Real estateplanning agency
businessleasing business and consulting
business

Total

Amount on
consolidated
Reconciliation
financial(Note 1)statements(Note 2)

Net sales
Net sales to externalcustomers

71,485

5,527

295

77,308－77,308

－

－

－

－

－

－

71,485

5,527

295

77,308－77,308Segment income

14,2572,381

152

16,791(4,588)

12,202

Segment assets

95,146

20,521

6,598

122,266

27,156

149,423

Depreciation

－

283

4

287

116

403

Amortization of
goodwill

97

－

3

100

－

100

455

－

－

455

－

455

－

1,761

4,003

5,765

79

5,845

Intersegment net
sales or transfers
Total

Other items

Amount ofinvestment inentities accounted
for using equity
methodIncrease in property,
plant and equipment
and intangible
assets(Note 1)

Reconciliations are as follows:(1) The reconciliation of segment income of -4,588 million yen is corporate expenses not attributable to any
reporting segment. Corporate expenses are general and administrative expenses not attributable toreporting segments.
(2) The reconciliation of segment assets of 27,156 million yen is mainly surplus operating funds (cash anddeposits), administrative assets, etc. not attributable to reporting segments.
(3) The reconciliation of depreciation of 116 million yen is depreciation on corporate assets not attributable toreporting segments.
(4) The reconciliation of increase in property, plant and equipment and intangible assets of 79 million yen is(Note 2)
(Note 3)increase in corporate assets not attributable to reporting segments.
Segment income is reconciled with operating income on the consolidated statement of income.
Increase in depreciation, property, plant and equipment and intangible assets includes long-term prepaid
expenses and the amortization amount of such expenses.

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3.

Other
Status of Contracts and Sales
The performance of contracts in the real estate sales business for the fiscal year ended December 2020 is as follows:
Fiscal year ended Dec. 2020
(from Jan. 1, 2020 to Dec. 31, 2020)
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.

753

35,337516

22,192

Other－

18,231

－

3,216

753

53,568516

25,409Total(Note)

The above amounts do not include consumption tax, etc.

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The main performance of sales for the most recent two fiscal years is as follows:
Fiscal year ended Dec. 2019(from Jan. 1, 2019 to Dec. 31, 2019)
Name of segment
Property name

Number Amountof units (million(units)yen)

Condominiums

648

Chuo-ku Minamisenba I－

North Nagoya
PareMarche Nishiharu

Number Amountof units (million(units)yen)
652

30,677

6,580

tonarie Yamatotakada

－

8,175

－

4,610

LOGITRES Tojo

－

8,120

Genboen, Koga-shi,
Fukuoka Prefecture

－

4,273

tonarie Toga-Mikita

－

6,875

Chuo-ku Awajicho III

－

4,000

Toshima-ku Minamiotsuka

－

2,900

Suginami-ku
Shimotakaido

－

3,800

Commercial leasehold
land in Sakai-shi

－

2,733

Asumigaoka Brand New
Mall

－

3,200

Daikyocho, Shinjuku-ku

－

2,562

K’s Denki Oyumino

－

2,710

Detached house

－

2,316

－

2,100

Matsubara, Setagaya-ku

－

2,167

Chiyoda-ku Sanbancho

－

2,034

Honjo-Nishi, Kita-ku

－

1,967

Detached house

－

1,468

－

970

－

1,430

－

765

Sakai-shi Daisen Nishi II

－

946

－

445

Nishishiroi Ekimae

－

451

－

392

Fukuoka Kasuga

－

401

－

417

Other

－

175

648

66,710652

71,485

Nagahoribashi Station-

sales business

front

Mitani, Nishi-ku, Kobeshi

Subtotal

28,529Property nameCondominiums

Real estate

Real estateleasing business
Real estateplanning agency
and consulting
business
Total(Note 1)
(Note 2)

Fiscal year ended Dec. 2020
(from Jan. 1, 2020 to Dec. 31, 2020)

Commercial leasehold
land in Omihachiman-shi
Commercial leasehold
land in Ikoma-gun
Commercial leasehold
land in Muko-shi
Genboen, Koga-shi,
Fukuoka Prefecture
Other

5,022

5,527

372

295

72,106

There are no transactions between segments.
The above amounts do not include consumption tax, etc.

- 25 -

Subtotal

Total

77,308