Summary of Accounts for First Quarter of Term Ending December 2018
(Japanese GAAP) (Consolidated)
May 8, 2018
Listing exchange: Tokyo Stock Exchange
URL: https://www.es-conjapan.co.jp
President & Representative Director
Senior Managing Director TEL: 06 (6223) 8055
May 8, 2018－
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 2018 (from January 1, 2018 to March 31, 2018)(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%

million yen

Profit attributable toowners of parent

Ordinary income%

million yen%

million yen%

First quarter of
18,411
85.7
2,742
11.9
2,504
13.9
1,719
(22.1)
term ending Dec. 2018
First quarter of
46.2
2,451
68.1
2,199
77.8
2,206
78.5
9,915
term ended Dec. 2017
Note:
Comprehensive income
First quarter ofFirst quarter ofterm ending Dec. 2018: 1,710 million yen [-22.4%] term ended Dec. 2017: 2,205 million yen [78.4%]
Basicearnings per share

Dilutedearnings per share

yen

yen

25.29

25.25

33.35

32.40

First quarter ofterm ending Dec. 2018
First quarter ofterm ended Dec. 2017(2) Consolidated financial position
Total assets
First quarter ofterm ending Dec. 2018
Term ended Dec. 2017
Reference:2.

EquityFirst quarter ofterm ending Dec. 2018:

Net assets

Equity ratio

Book value per share

million yen

million yen%

yen

91,065

21,84224.0

320.0686,43521,43324.8

315.14

21,840 million yen

Term ended Dec. 2017:

21,432 million yen

Dividends
End ofsecond quarter

Annual dividend
End ofthird quarter

yen

yen

yen

yen

yen

－
－

0.00

－

18.00

18.00

Term ending Dec. 2018 (Forecast)(Note) Revisions from latest dividends forecast: None

0.00

－

20.00

20.00

End offirst quarter
Term ended Dec. 2017
Term ending Dec. 20183.

Year-end

Total

Consolidated earnings forecast for term ending December 2018 (from January 1, 2018 to December 31, 2018)(% 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)

Net sales

Operating income

Ordinary income

Profit attributable to
Basicowners of parent earnings per share

million yen%

million yen%

million yen%

million yen%

yenFirst two quarters

24,400

108.5

2,950

24.5

2,400

27.7

1,650

(12.2)

24.20

Full term

55,700

24.5

9,900

40.6

8,700

45.3

6,000

10.0

88.01

(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
71,631,387 Term ended
1) Number of shares issued and outstanding
71,203,387
term ending(including treasury shares) at end of period
shares Dec. 2017
sharesDec. 2018
First quarter of
3,391,700 Term ended
3,195,300
2) Number of treasury shares at end of period
term ending
shares Dec. 2017
sharesDec. 2018
First quarter ofFirst quarter of
67,973,182
66,174,429
3) Average number of shares during period
term ending
term ended
sharessharesDec. 2018
Dec. 2017
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 2018: 543,200 shares in the share-based payment benefits trust for directors and
235,100 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 2018: 778,382 shares).
*This 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. 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 showed potential to maintain a moderate recovery due in part to various
governmental measures amid ongoing improvement in the employment and income situation yet was also in a stateof clouded outlook as it is necessary to pay attention to increasing geopolitical risks, uncertainty in overseas
economies and the effects of 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, we proactively developed multifaceted businesses based on thesecond medium-term management plan “IDEAL to REAL 2019” which started from the term ended December 2017.
In the real estate sales business, which is the core business, revenue-generating real estate sales, etc. wereconducted, and steady progress was made in condominium sales, too.
In for-sale projects, projects with construction completed in the term ending December 2018 “Feel Garden MinamiSenri (Suita City, Osaka Prefecture; 214 units in total),” “Le JADE Southern Gate Toyoda (Hino City, Tokyo; 51 units intotal),” and “Le JADE Kawasaki (Kawasaki City, Kanagawa Prefecture; 79 units in total) were completed and sold out,
and sales of new projects “Grand Le JADE Jiyugaoka (Meguro Ward, Tokyo; 23 units in total),” etc. started while
projects scheduled for completion in the term ending December 2018 “Le JADE Minamimorimachi (Kita Ward, Osaka
City; 29 units in total)” and “Grand Le JADE Okamoto (Higashi-Nada Ward, Kobe City; 18 units in total)” contracted tosell out.
ES-CON JAPAN has steadily promoted diversification of business through the participation in the business as amember of condominium reconstruction association in Hirakata City, Osaka Prefecture, the launch of a land
readjustment project in Koga City, Fukuoka Prefecture and such.
Furthermore, with focus placed on hotel development projects incorporating inbound tourism needs in recent years,
15 projects (1,963 guestrooms) in Sapporo, Kanazawa, Tokyo and Osaka are already under progress, and 2 projects
in Chuo Ward, Osaka City and Kanazawa City, Ishikawa Prefecture started business during this term.
In this manner, with 1 project in the Tokyo metropolitan area, 6 projects in the Kinki area and 1 project in otherareas in acquisitions of new business sites as the site for for-sale, land readjustment project 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 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.
A new goal to “realize the creation of new value and sustainable growth with the promotion of ESG” has been set in
the growth strategy in the second medium-term management plan “IDEAL to REAL 2019” and corporate value will beenhanced from the criteria of “environment, society and governance”.
As a result, business performance for the first quarter was net sales of 18,411 million yen (up 85.7% compared withthe same period of the previous year), operating income of 2,742 million yen (up 11.9% compared with the same
period of the previous year), ordinary income of 2,504 million yen (up 13.9% compared with the same period of theprevious year) and profit attributable to owners of parent of 1,719 million yen (up 22.1% 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 real estate for saleand real estate for sale in process, resulting in net sales of 17,601 million yen (up 96.6% compared with the same
period of the previous year) and segment income of 3,054 million yen (up 14.7% compared with the same period of
the previous year).
2)

Real estate leasing businessIn the real estate leasing business, focus was placed on leasing activities and the property management business－3 －in view of enhancement of asset value, including increase in rental income of owned revenue-generating real estate,
resulting in net sales of 737 million yen (down 21.8% compared with the same period of the previous year) andsegment income of 423 million yen (up 5.5% 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, proactive efforts were made in such aspects as
entrustment with planning, consulting and other services by making best use of planning and multifaceted businessbuilding abilities, resulting in net sales of 72 million yen (up 293.7% compared with the same period of the previousyear) and segment income of 57 million yen (up 212.4% compared with the same period of the previous year).
(2) Explanation of Financial Position
Financial position
Assets at the end of the first quarter increased by 4,629 million yen compared with the end of the previous term to
91,065 million yen. This was mainly attributable to inventories increasing by 4,265 million yen.
Liabilities increased by 4,220 million yen compared with the end of the previous term to 69,222 million yen.

This

was mainly attributable to long-term loans payable, short-term loans payable and bonds payable increasing by 3,986
million yen.
Net assets increased by 409 million yen compared with the end of the previous term to 21,842 million yen. This
was attributable to cash dividends paid of 1,238 million yen and purchase of treasury shares of 131 million yen, yetrecording profit attributable to owners of parent of 1,719 million yen.
the end of the previous term).

As a result, equity ratio was 24.0% (24.8% at(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
The consolidated earnings forecast remains unchanged from the forecast announced on February 8, 2018.

－4 －2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance SheetTerm ended Dec. 2017(as of Dec. 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Real estate for sale in process
Supplies
Other
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 －(Unit: million yen)First quarter ofterm ending Dec. 2018(as of Mar. 31, 2018)

10,667497
4,162
60,0570
5,118
80,504

11,877343
4,017
64,46804,352
85,061

1,476
(410)
1,066
623
147
(107)
39
1,729

1,488
(422)
1,065
623
143
(101)
41
1,729

28
28

26
26

4,177
(4)
4,173
5,930
86,435

4,252
(4)
4,248
6,004
91,065

Term ended Dec. 2017(as of Dec. 31, 2017)
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. 2018(as of Mar. 31, 2018)

1,953
22,46240
467
7,740
32,664

1,492
25,18540
706
7,739
35,164110
31,87482
18
93
158
32,33765,002

290
33,41882
19
97
149
34,05869,222

6,224
1,953
14,322(1,089)21,411

6,258
1,987
14,803(1,220)21,82920
20
121,43386,43511
11
121,842
91,065

(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. 2017
term ending Dec. 2018(from Jan. 1, 2017(from Jan. 1, 2018
to Mar. 31, 2017)
to Mar. 31, 2018)
Net sales
9,915
18,411
Cost of sales
6,698
13,859Gross profit
3,217
4,551
Selling, general and administrative expenses
766
1,809
Operating income
2,451
2,742
Non-operating income
Interest income
00Penalty income
8
0
Other
0
0
Total non-operating income
91
Non-operating expenses
Interest expenses
257
237
Other
3
1
Total non-operating expenses
261
239
Ordinary income
2,199
2,504
Extraordinary income－
Gain on sales of non-current assets
11－
Gain on reversal of subscription rights to shares
0
Total extraordinary income
110Extraordinary losses
Loss on retirement of non-current assets
04
Total extraordinary losses
04Profit before income taxes
2,210
2,499
Income taxes - current
18
678
(14)
Income taxes - deferred
101
Total income taxes
3
780
Profit2,206
1,719
Profit attributable to owners of parent
2,206
1,719

－

7 －

(Quarterly Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
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. 2017(from Jan. 1, 2017
to Mar. 31, 2017)
2,206(Unit: million yen)First quarter ofterm ending Dec. 2018(from Jan. 1, 2018
to Mar. 31, 2018)
1,719

(1)
(1)
2,205

(8)
(8)
1,710

2,205
－

1,710
－

(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 100 shares to eligible parties from the share-based
payment benefits type ESOP trust. In addition, purchase of treasury shares of 196,500 shares was made byresolution at the meeting of the board of directors held on December 1, 2017. As a result, treasury shares increased
by 131 million yen, resulting in treasury shares at the end of the first quarter of 1,220 million yen.
(Segment Information, etc.)[Segment Information]
I. First Quarter of Term Ended 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.
II. First Quarter of Term Ending December 2018 (from January 1, 2018 to March 31, 2018)
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

17,601

737

72

18,411－

18,411

－

－

－

－

－

－

17,601

737

72

18,411－

18,411

3,054

423

57

3,536

(793)

2,742

Total

Net sales
Net sales toexternal customers
Intersegment net
sales or transfers
Total
Segment income(Note 1) The reconciliation of segment income of -793 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. 2018(from Jan. 1, 2018
to Mar. 31, 2018)
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.

86

4,218

121

6,285

Other

－

4,940

－

4,878

86

9,158

121

11,164

Total(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. 2018(from Jan. 1, 2018
to Mar. 31, 2018)

Name of segment

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

Condominiums

294

12,404

Horikawashinmachi, Kanazawashi

－

2,030

Minami-Senba III, Chuo-ku

－

1,850

5-chome, Sendagaya,
Shibuya-ku

－

1,317

Subtotal

17,601

Real estate leasing business

737

Real estate planning agency

72

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

－

10 －

18,411