Term Ended December 2018
February 21,2019

Explanatory materials

www.es-conjapan.co.jp

Table of Contents

Summary of Term Ended December 2018
Main Activities in Term Ended December 2018
P/L in Term Ended December 2018
Segment Results for Term Ended December 2018
B/S in Term Ended December 2018

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

Capital and business partnership with Chubu Electric PowerCo., Inc.

P. 10, 11

ESCON JAPAN REIT Investment Corporation listed on J-REIT market

P. 12



2nd Medium-Term Management Plan IDEAL to REAL 2019
Basic Policy and Corporate Strategy
Growth Action Plan & Current Progress
Management Index & Performance Plan



P. 14
P. 15
P. 16

Plan for Term Ending December 2019 (25th Term)
Real Estate Sales BusinessCondominium Sales Business “Le JADE Series”
Hotel Development Business
Commercial Development Business, Logistics Business, Land Readjustment Business
Real Estate Leasing Business
Strategic Business Expansion of ES-CON JAPAN Group
Information

P. 18
P. 19, 20
P. 21
P. 22
P. 23
P. 24, 25
P. 26

2

Summary of Term Ended December 20183

Main Activities in Term Ended December 2018
JANUARY• Acquisition of treasury stock• All units in Le JADE Minamimorimachi, Le JADE Takatsuki Cross,and Le JADE Kawasaki sold• Participation in planning of Neolife Kuzuha Condominium
Rebuilding Project• Acquisition of site for Genboen land readjustment project in Koga,
Fukuoka

FEBRUARY• All units sold in Grand Le JADE Okamoto and Le JADE Vert
Komagome• Acquisition of new business sites (Sawaraginishi, Ibaraki-shi)(Miyanocho, Takatsuki-shi) (Masumicho, Ikeda-shi)

APRIL• Acquisition of new business sites (Yasuicho, Nishinomiya-shi)(Aoba-ku, Yokohama-shi) (Kumata, Higashisumiyoshi-ku)• Sales commence for Grand Le
JADE Shonan Enoshima R134.

• Acquisition of new business sites (Hamaotsu 3-chome, Otsu-shi)(Shinkanaoka, Kita-ku, Sakai-shi) (Matsubara, Setagaya-ku)(Hinokuchi, Nishinomiya-shi)• Sales commence for Grand Le JADE Jiyugaoka.
• Details of growth strategies added to Medium-Term Management
Plan IDEAL to REAL 2019

JUNE

MAY
• Sales commence for Le JADE Nagaokakyo, Grand Le JADE
Takatsuki Tenjin, Le JADE Takatsuki Kosobe, and Le JADE Bio
Funabashi Kitanarashino.
• Le JADE Bio renovation business launched.
• Acquisition of new business site (Kotoen, Nishinomiya-shi)• All units sold in Grand Le JADE Wakamatsucho Residence and
Le JADE Otsu Nagisakoen• Work commences on Hyogo Tojo Interpark (tentative name)logistics facility project.
• Tokyo Minato Ward Shirogane joint project (tentative name)with Mitsubishi Jisho Residence Co., Ltd. announced.

JULY• All units sold in Le JADE Komagome• Acquisition of new business sites (Okurayama, Kohoku-ku)(Honjonishi, Kita-ku) (commercial leasehold, Shiroishi-ku, Sapporoshi)• Upward revision to projected consolidated results for 2Q of Fiscal
Year Ending December 2018
• Efforts to promote ZEH-M commence.

MARCH

AUGUST• All units sold in Le JADE Fushimi Chushojima• Acquisition of new business sites (Shimotakaido 4-chome,
Suginami-ku) (Zaimokuza, Kamakura-shi)(Nakasu 5-chome hotel project, Hakata-ku)• Projected consolidated results for Fiscal Year Ending December
2018 revised upward; increase in expected dividend• Five Company-owned hotels sold

SEPTEMBER• Acquisition of treasury stock
Sales commence for Le JADE Sumakaihin Koen, Le JADE Nakano,and Le JADE Shinkanaoka Park Fields.
• Again selected for JPX-Nikkei Mid Small index• Preparations for listing on J-REIT market and transfer of real estate
for sale• Changes in largest shareholder, other major shareholders, and otheraffiliates• Capital and business partnerships with Chubu
Electric Power Co., Ltd. and sale of stock• All units in Le JADE
Yokohama Hananoki sold• Sales commence for Le
JADE Kuzuha.
• Grand opening of tonarie
Yamato Takada community
shopping center announced
for November 23, 2018
(Friday, a holiday)• Acquisition of new business site (Tamadaira, Hino-shi)

OCTOBER• All units sold in Le JADE Nagaokakyo, Grand Le JADE Shibuya
Tomigaya• Acquisition of new business site (Minami-Otsuka, Toshima-ku)• Joint research agreement concluded with Tokyo University of
Science on environmental design
system• Grand Le JADE Wakamatsucho
Residence wins 2018 Good DesignAward.

NOVEMBER

DECEMBER• Sales commence for Le JADE Otsu LUXE, Le JADE Hama-Otsu,
Le JADE Minami-Ibaraki MUSE.
• Acquisition of new business sites (Besshonakanocho, Takatsukishi) (Mukomotomachi, Amagasaki-shi) (Nishi-Shinsaibashi hotel
project, Chuo-ku, Osaka-shi)● Number of new business sites acquired in term ended December 2018

Condominium

Metropolitan
area
5

Hotel

Kinki
region12
1Land readjustment project

Commercial (includingcommercial facilities)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Rental residential
Total

1

2

2

1

8

16

Other

Total

1
1

17
2
1

1

4

3

3
27

• Acquisition of new business sites (Mukonosohonmachi,
Amagasaki-shi) (Ikegami, Nishi-ku, Kobe-shi) (Myohoji Ekimae)• Acquisition of commercial facilities (Tsukuba Q’t, Tsukuba MOG)
• Projected year-end dividends and full-year consolidated results forterm ending December 2018 revised upwards• Launch of student housing business• Nagoya Office opens.

• ESCON JAPAN REIT Investment Corporation listingon J-REIT market approved• Contract concluded for transfer of real estate for sale to ESCON
JAPAN REIT Investment Corporation• New TV commercial introduced for Grand Le JADE: “ROMEO
and Le JADE”

4

P/L in Term Ended December 2018
• Both sales and profits increased dramatically from the previous term, driven by progress in the condominium
sales business and sales of hotels and other revenue-generating real estate.
• Profits increased, although somewhat less than projected in the initial plans.
• Ordinary income exceeded 10 billion yen, setting a new record high.
• Earnings per share in the current term were up 29.6% YoY to 105.98 yen.
(Unit: Million yen)

Full year ended
December 2018
(term under review)

Full year ended
December 2017(previous term)

Amount ofincrease/decrease

Compared
to previous
term

Full year ended
December 2018
(initial plan)

Difference
from plan

Percentage
vs. initial plan

55,700-1,375

-2.5%

9,900

1,661

16.8%

Sales

54,32544,724

9,601

21.5%

Gross profit

16,927

11,559

5,368

46.4%

Selling, general andadministrative expenses

5,366

4,517

849

18.8%

Selling expenses

2,088

1,734

354

20.4%

General adm inistrative expenses

3,277

2,782

495

17.8%

11,561

7,042

4,519

64.2%

1,020

1,093

-73

-6.7%

Ordinary income

10,498

5,988

4,510

75.3%

8,700

1,798

20.7%

Net income in current term

7,226

5,456

1,770

32.4%

6,000

1,226

20.4%

Earnings per share in current
term

105.98

81.77

24.21

29.6%

Operating profit
Interest expenses

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

5Segment Results for Term Ended December 2018
• We sold 539 condominiums, or 92.1% of the full-year plan (585).
• Reasons for the failure to reach the planned figure include short sales periods for Grand Le JADE Jiyugaoka and Le JADE
Nakano, both of which are low-rise projects, and delays in setting up full model units.
• Condominium profit margins rose by 2.3 points (from 12.1% last year to 14.4% this term).
• Completed inventory declined from 89 units at the end of December 2017 to 48 units at the end of December 2018.
• As in the preceding term, sales of hotel properties contributed significantly to profits.
• Hotel profit margins have remained high, above 30%, since last year, rising 3.4 percentage points from the previous year
(from 34.3% last year to 37.7% this term).

CONDOMINIUM SALES
BUSINESSOTHER SALES BUSINESS(Unit: Million y en)

Sales
Full year ended
December 2018
(term under review )Real estate sales business

Full year ended
December 2017(previous term)

Segment income

Compared toprevious term

Percentage vs.
initial plan

Initial plan

Full year ended
December 2018
(term under review )Full year ended
December 2017(previous term)

Compared toprevious term

50,51941,16822.7%

52,600-4.0%

12,341

7,978

54.7%

Condominium sales

25,08919,50028.7%

27,980-10.3%

3,617

2,363

53.1%

Other sales

25,42921,66717.4%

24,620

3.3%

8,723

5,614

55.4%

3,400

3,459

-1.7%

2,900

17.2%

2,128

1,761

20.8%

405

96

321.9%

200

102.5%

369

85

334.1%

54,32544,724

21.5%

55,700-2.5%

14,839

9,825

51.0%

Real estate leasing business
Real estate planning agency andconsulting business
Total

Sales

Condominium sold/sales

Sales
Amount(millions yen)

Units soldPrice per unit
(10,000 yen)

Hotels sold/sales
Profit margin

Amount(millions yen)

Number of projects
soldProfit margin

Term ended December 2017(previous term)

476

19,500

4,096

12.1%

Term ended December 2017(previous term)

5

9,370

34.3%

Term ended December 2018
(term under review)

539

25,089

4,654

14.4%

Term ended December 2018
(term under review)

7

21,68037.7%

Planned units sold
Term ended
December 2018
(term under review)

585

Units sold at end of
term

539

Achievement
rate

92.1%

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

6Segment Results for Term Ended December 2018
CONDOMINIUM SALES BUSINESS(Unit: Units)

Condominium sales
Le JADE Komagome
Le JADEVert Komagome

Location

Kita-ku, Tokyo
Kita-ku, Tokyo

Grand Le JADE Wakamatsucho Residence Shinjuku-ku, Tokyo
Yokohama-shi, Kanagawa
Le JADE Yokohama Hananoki
Otsu-shi, Shiga
Le JADE Otsu Nagisakoen
Fushimi-ku, Kyoto
Le JADE Fushimi Chushojima
Takatsuki-shi, Osaka
Le JADE Takatsuki Cross
Hino-shi, Tokyo
Le JADE Southern Gate Toyoda
Kawasaki-shi, Kanagawa
Le JADE Kawasaki
Suita-shi, Osaka
Feel Garden Minamisenri
Shibuya-ku, Tokyo
Grand Le JADE Shibuya Tomigaya
Kita-ku, Osaka
Le JADE Minamimorimachi
Bunkyo-ku, Tokyo
Grand Le JADE Ochanomizu
Higashinada-ku, Kobe
Grand Le JADE Okamoto
Meguro-ku, Tokyo
Grand Le JADE Jiyugaoka
Nakano-ku, Tokyo
Le JADE Nakano
Nagaokakyo-shi, Kyoto
Le JADE Nagaokakyo
Le JADE Bio Funabashi Kitanarashino Funabashi-shi, Chiba

Total no.
of units

36
33
31
69
44
83
80
52
80
107
25
29
53
19
23
25
35
50

7
2
5
29
8
31
7
-

7
2
5
29
8
31
7
52
80
107
25
29
51
19
7
9
35
36

0
0
0
0
0
0
0
0
0
0
0
0
2
0
16
16
0
14

Sold out

89

539

48

44

Total

OTHER SALES BUSINESSTypeBusiness
schemeSales(millions yen)

Hayabusacho, Chiyoda-ku
Kitakyuhojimachi, Chuo-ku

Hotel

Sale

4,600

Hotel

Sale

Awajicho I, Chuo-ku

Hotel

Sale

3,450
3,420

Awajicho II, Chuo-ku
Tsurunocho, Kita-ku, Osaka-shi

Hotel

Sale

Hotel

Sale

Horikawashinmachi, Kanazawa-shi
Minamisenba III, Chuo-ku

Hotel

Sale

Hotel

Sale

31 Wakamatsucho, Shinjuku-ku
Sendagaya 5-chome, Shibuya-ku

Apartments

Sale

Apartments

Sale

1,968
1,317

Land

Sale

413

Non-condominium project
profit margin
Term ended December 2017(previous term)
Term ended December 2018
(term under review)

2018

Sold out
Sold out

236

56.2%

43.8%

211

2017

Sold out0%

Sold out

303

Sold out

265

44.3%

55.7%

50%

Tokyo metropolitan area

539 units
476 units
100%

Kinki region

Sold out
Sold out

Percentage of project profits by area

Percentage of sales by area

Sold out
Sold out
Sold out

59.8%

2018

40.2%

2018

45.3%

54.7%

2017

48.9%

51.1%

Sold out
1
Sold out

52.1%

2017

47.9%

16
14

0%

Sold out

50%
Tokyo metropolitan area

100%

0%

50%
Tokyo metropolitan area

Kinki region

100%
Kinki region

13

LEASING BUSINESSOther sales

Kasuga, Fukuoka

Number/percentage of condominium units deliveredby areaNo. of units
Contract andClosing inventory fordelivered in termdelivery progress
term ended December
as of February 18
ended December
2018(inventory)
2018

Initial inventory
for term ended
December 2017

Leasing business(major owned properties)

Hirakata-shi, Osaka

Fixed asset

tonarie Yamatotakada
soyoca Fujimino

Yamatotakada-shi, Nara

Current asset (for sale in process)Fujimino-shi, Saitama

Current asset (for sale in process)Ikaruga, Ikoma-gun

Ikoma-gun, Nara

Current asset (for sale in process)

3,420
2,910

Omihachiman

Omihachiman-shi, Shiga

Current asset (for sale in process)Kakegawa-shi, Shizuoka

Current asset (for sale in process)

2,030
1,850

Kakegawa(Provisional name) tonarie Toga-Mikita Sakai-shi, Osaka-fu

Current asset (for sale in process)Hyogo Tojo Interpark

Kato-shi, Hyogo

Current asset (for sale in process)Tsukuba Q’t, MOG

Tsukuba-shi, Ibaraki

Current asset (for sale in process)Project profits(millions yen)

21,66725,429Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Possession status

Kansai Medical University Kuzuha Hospital

Yamada Denki Sapporo Shiroishi store Shiroishi-ku, Sapporo-shi

Current asset (for sale in process)

Daisen-nishi I, Sakai-shi, Osaka-fu
Mukomotomachi, Amagasaki-shi

Sakai-shi, Osaka-fu

Current asset (for sale in process)Amagasaki-shi, Hyogo

Current asset (for sale in process)Kamiueno, Muko-shi
Ikegami, Nishi-ku, Kobe-shi

Muko-shi, Kyoto-fu

Current asset (for sale in process)Nishi-ku, Kobe-shi

Current asset (for sale in process)Shirai-shi, Chiba

Current asset (for sale)

25.9%

Nishishirai
Asumigaoka Brand-New Mall

Chiba-shi, Chiba

Current asset (for sale)

Sakai-shi, Osaka-fu

Current asset (for sale)

34.3%

Daisen-nishi II, Sakai-shi, Osaka-fu
K’s Denki Oyumino shop

Chiba-shi, Chiba

Current asset (for sale)

Kasuga, Fukuoka (Sukesan)
Mitani, Nishi-ku, Kobe-shi

Kasuga-shi, Fukuoka

Current asset (for sale)

Nishi-ku, Kobe-shi

Current asset (for sale)Pare Marche Nishiharu

Kitanagoya-shi, Aichi

Current asset (for sale)

Results
Sales (millions yen)

Location

5,614
8,723

Prof it margin

Transferred to ESCON
JAPAN REIT Investment
Corporation in February
2019
Total transfer amount:
13,748 million yen
Gross profit on transfer:
2,282 million yen

7

B/S in Term Ended December 2018
(Unit: Million yen)

Term ended December 2018
(term under rev iew)

Term ended December 2017(prev ious term)

104,890

80,504

24,386

Cash and deposits

16,598

10,667

5,931

Real estate for sale

15,308

4,162

11,146

Real estate for sale inprocess

65,89060,057

5,833

Current assets

Fixed assets

Increase/decrease• We took the initiative in acquiring sites for a wide range of businesses beyond condominiums, including
hotels and land readjustment projects, increasing inventories by 16.9 billion yen from the previous term
• An increase of 11,146 million yen in real estate for sale includes assets sold to ESCON JAPAN REIT
Investment Corporation (approx. 11.4 billion yen)

(Unit: Million yen)

2018

2017

4,856

5,930

-1,074

Tangible fixed assets

1,658

1,729

-71

Intangible fixed assets

30

28

2

Investments and otherassets

3,167

4,173

-1,006

Others

1,156

1,664

109,747

86,43523,312

Total

81,19964,219Term ended December 2018
(term under rev iew)

Term ended December 2017(prev ious term)

Current liabilities

37,21032,664

4,546

Short-term loans

1,720

1,953

-233

Total assets

Condominium

37,19827,344

Commercial, etc.

37,28024,390

Hotel

5,564

10,821(Unit: Million yen)

Increase/decrease(Unit: Million yen)Fixes assets (owned assets)

Current portion of longterm loans

23,993

22,462

1.5%

1,531

Interest-bearing debt

49,623

Total assets

45,766

Current portion of bonds

Fixed liabilities

40

40

0

45,17632,337

12,839Corporate bonds

270

110

160

Long-term loans

44,56831,874

12,694

82,38765,002

17,385New
procurement

81,199Annual averageinterest rate

73,703

1.1%
1.2%

24.1%
58,08819,413

Total net assets

27,35921,433

5,926

Total liabilities and net
assets109,747

86,43523,312

24.9%

24.8%

+0.1 point

Equity ratio

86,435Equity ratio

29,958

Total liabilities

109,747
24.9%

24.8%

Inventory

1.7%

39,73923.6%

70,66164,21956,54445,42351,17727,42021,69010,142
1,565
Term ended
December 2015

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Term ended
December 2016

Term ended
December 2017

Term ended
December 2018

Term ended
December 2015

Term ended
December 2016

Term ended
December 2017

1,534
Term ended
December 20188

2018 Topics

9Capital and business partnership with Chubu Electric Power
Co., Inc.
In August 2018, we concluded a capital and business partnership with Chubu Electric Power, becoming an equity
method affiliate of Chubu Electric Power, which holds 33.3% of voting rights of our company.

Strengthening the real estate business through capital and business
partnership with the Chubu Electric Power Group

Chubu ElectricPower Group• Expertise in energy and otherbusinesses• Sales infrastructure in the
Chubu region

Delivering new communities to local
customers through urban
development and other efforts toincrease corporate value

Synergies

Proactively promoting development
businesses with an eye to future
generations as a life developer giving
concrete form to ideals for people’s
lives and residences• Real estate business expertise• Sales infrastructure in themetropolitan area and Kansai
regionUrban development, community revitalization

Condominium and other development businesses

Drawing on ES-CON Japan’s real estate expertise and Chubu ElectricPower’s strong ties to local communities in urban development andcommunity revitalization that deliver new communities to local customers

Drawing on ES-CON Japan’s real estate expertise in joint developments with
Chuden Real Estate; sales of energy from Chubu Electric Power to properties
developed and owned in the metropolitan area, Kansai region, and elsewhere;
providing ancillary works with the Chubu Electric Power Group, etc.

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

10Capital and business partnership with Chubu Electric Power
Co., Ltd.

Details of capital and business partnership with the Chubu Electric Power Group1

Promoting joint projects
Joint deployment of projects contributing to society through realization of compact cities, urban
development, and revitalization of local communities
Deploying joint ventures in the real estate development business
Joint meetings began soon after the partnership was concluded.

2

Mutually complementary business areas
Growing the real estate business in the Chubu region
Nagoya Office set to open March 1, 20193

Making effective use of real estate owned by the Chubu Electric Power Group

4

Joint research and implementation of next-generation smart houses, connected homes, etc.

5

Prospective buyers for our real estate development projects

6

Exchange of human resources
Seconding employees between the two companies based on business needs
Plans call for seconding a number of our employees to Chubu
Electric Power from April 2019.
Respect for autonomy
Respect for our autonomous, dynamic management as a listed company
One director dispatched from Chubu Electric Power
Plans call for appointing Kenji Fujita from Chubu Electric Power as
Director at the General Meeting of Shareholders in March 2019.

7

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

11

ESCON JAPAN REIT Investment Corporation listed on
J-REIT market
ESCON JAPAN REIT Investment Corporation was listed on the J-REIT
market on February 13, 2019.
1

Enriching local communities by building a portfolio centered on commercial facilities that people
depend on in their daily lives
Highly competitive and convenient locations with roots in thecommunity
Stressing local community building
Prominent and competitive tenants with strong community ties
Providing products and services centered on everyday needs andresistant to e-commerce threats

2

Investing in highly stable land ownership

3

Maximizing value to investors through real estate development
capabilities, strength in management, and sponsor support fromcomprehensive developer ES-CON Japan and support from the
Chubu Electric Power Group

Stable rent income over the long term
Realizing low cost of ownership through freedom from depreciation, maintenance costs, andrepair costs
Expansion of the land transaction market
Low risk of drop in asset prices due to disasters

Awarding priority purchase rights and priority
negation rights
Supporting redevelopment through sponsorship
Attracting and replacing tenants throughin-house tenant leasing abilities
Attracting tenants with strong ties to community
needs
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Property listing at time of IPO
Kasuga, Fukuoka
Otsukadai, Kobe-shi
Toyoda, Nikko-shi
Kikyogaoka, Nabari-shi
Nitori Tsuchiura
Daisen-nishi II, Sakai-shi
Mitani, Nishi-ku, Kobe-shi
Oyumino, Chiba
Kitatsumori, Nishinari-ku
Oimatsucho, Kurashiki-shi
tonarie Minamisenri
tonarie Seiwadai
Nishishiroi Ekimae
Asumigaoka Brand-New Mall
Pare Marche Nishiharu

Type
Size
Land
Land
Land
Land
Land
Assets at time of
Land
IPO:
Land
41.6 billion yen
Land
Land: 54.9%
Land
Commercial
Land
facilities: 45.1%
Commercial facility
Commercial facility
Commercial facility
Commercial facility
Commercial facility

12

2nd Medium-Term Management PlanIDEAL to REAL 201913

2nd Medium-term Management Plan −Basic Policy and Corporate Strategy
Basic Policy

IDEAL to REAL 2019
Turning ideals into reality andcreating a new future.
We will follow our basic policy of putting our customers first,
fully accomplishing our mission as “Life Developers” whodevelop the living styles of our customers, and continuing toevolve and grow as a company indispensable to society.

Corporate Strategy
1.

Maximization of company value and returns to shareholders

2.

Construction of a firm management foundation that can withstand any economic
environment

3.

Diversification of business for continuous and stable growth4.

Construction of a firm management foundation (quality), rather than expansion ofcompany size (quantity)

5.

Fulfillment of corporate social responsibility to return not only to shareholders but
also to all stakeholders and society

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

14

Further strengthening ofcore business

Improving company value throughdiversification of multiple corebusiness

Securing stable long-term stock revenue
through active development of realestate leasing business

Expansion of real estate sales business throughstable supply of high-quality real estate as amain sponsor of the listed REIT formation

For the condominium sales business, which is
our core business, instead of merely increasing
the number of units, we aim to provide a stablesupply of 500 to 600 units per year.
In FY2019, the final year of our 2nd mediumterm management plan, we aim to completely
shift the sales of condominiums to our own sales
structure, further acquiring our customers’ trustand improving the profit ratio by internalizing thesales expenses that had been flowing out in theconventional sales structure.

While keeping the condominium sales businessas our main core business, we will also establish
the commercial development business and thehotel development business as new corebusinesses.
In addition, we aim to diversify real estate
related businesses and to become acomprehensive developer that can repeatedly
grasp business opportunities through multiple
core businesses.

Through the active development of the realestate leasing business, we aim to reduce therisk of price fluctuation of our real estate
products caused by diversification of businesses,
hold high-quality assets that produce stablelong-term rental income, and further improve themanagement stability.
Specifically, at the end of FY2019, the final yearof our 2nd medium-term management plan, we
aim to hold or develop lease assets that can fully
cover general administrative expenses withrental income.

We aim to achieve the listing of the newinvestment corporation established in August
2016 on the Tokyo Stock Exchange early, andas a main sponsor of the REIT’s external growthstrategy, we will ensure the stable supply ofhigh-quality real estate with a focus on leaseholdcommercial facilities, supporting sustainablegrowth of the REIT and expanding the realestate sales business of our company.

For our core condominium sales business,
we secured sites sufficient for about 800
units for each of the next two years (FY2020,
FY2021). We’re making steady progress in
expanding our sales force, which currently
numbers 31. The project profit margin is also
increasing steadily (from 12.1% in FY2017 to
14.4% in FY2018).

Steadily making progress in diversificationof our businesses beyond the condominium
sales, commercial development, and hotel
development businesses, we’ve ventured
into new domains, including logistics
development and land readjustment projects.

In the commercial development business,
we’re strengthening NSC development efforts
through strong ties to local communities.
tonarie Yamato-Takada held its grand opening
in November 2018, attracting a large numberof customers. Its second phase is currently
under development. We’re identifying assets
suitable as long-term holdings to strike abalance with assets for the REIT and assets tobe sold to third parties.

ESCON JAPAN REIT Investment Corporation
was listed on the REIT market on February
13, 2019.

Expanding the range and depth of real estatedevelopment capabilities throughenhancement of real estate operation
business

Improving corporate brandpower

ESG initiatives to create new value
and achieve sustainable growth

We aim to be a peerless comprehensive
developer that not only develops real estate but
also possessing operational function suited tothe utility form of the real estate.
Specifically, in addition to AM businesses andPM businesses such as commercial facilities, wewill actively engage in the management of hotels,
food and beverage businesses such as cafés,apartment building management and renovation
businesses of our group companies, maximizing
the value of real estates in the process.

We will implement aggressive public relations
strategies and improve our corporate brandpower. We will also thoroughly pursue
improvement in the quality of our condominium
brand “Le JADE” in order to gain the
overwhelming trust and support of ourcustomers, thereby improving the awareness ofthe product brand.

We’re committed to enhancing corporate value
by putting customers first and accounting for theneeds of society, governance, and theenvironment. Through our urban development
efforts, we rise to meet the changing values ofthese times and strive to address, as a life
developer responsible for creating living spaces,
the issues confronting society.

In addition to the AM business, the PM
business of commercial facilities, theoperation of cafés and other food andbeverage businesses, and apartment building
management, we have launched a renovation
business. In this and other ways, we intend tocontinue to maximize the value of our realestate.

We’re continuing to air TV commercials for
the Grand Le JADE brand as a sponsor for
popular TV shows. We intend to continue
focusing on strengthening our corporate
brand.

As a new growth strategy, we are currently
focusing on efforts to be the first company
in the real estate industry to secure a GRESB
rating.

Current
progress

Current progress

2nd Medium-term Management Plan −Growth Action Plan & Current Progress

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

E: Pursuing proactive initiatives to help solve global environmental
issues and business activities that provide safe, comfortable lives
and help establish sustainable societies
S: Establishing management foundations to achieve stable growthand meet our corporate social responsibilities in local communities
G: Enhancing our approach to governance companywide based on
the Corporate Governance Code15

2nd Medium-term Management Plan −Management Index & Performance Plan
• We overhauled our plans in this second and final year of our Medium-term Management Plan (2018) to boost sales and profits to far exceed initial plans.
• Management index: We failed to reach our equity ratio target, due mainly to aggressive property acquisition to achieve growth and the resulting inventory
increase.
• Dividends grew by 12 yen from initial plans to 32 yen per share. We plan a dividend payout ratio of 30% or more in the final year.
(Unit: Million yen)
Term ended December
2017
23rd term

Performance plan

Term ended December 2018
24th term

Results

Initial plan

Term ending December 2019
25th term

Resultsvs. plan

Initial plan

Revised planvs. plan

44,72455,70054,325-1,37460,000to 62,000

74,80014,800Real estate sales business

41,16852,60050,519-2,08057,800to 59,700

70,25012,450Real estate leasing business

3,459

2,900

3,400

500

2,000
to 2,100

4,300

2,300

96

200

405

205

200

250

50

Operating income

7,042

9,900

11,561

1,661

8,200
to 9,500

12,5004,300

Ordinary income

5,988

8,700

10,498

1,798

7,200
to 8,500

11,200

4,000

Sales

Real estate planning, brokerage,
and consulting businesses

Dividend policy
Management index

Term ended December
2017
23rd term

Term ended December
2018
24th term

Results

Results

Term ending December 2019
25th term
Initial plan

Revised plan

Equity ratio

24.8%

24.9%

33.0% to 35.0%

22.6%

ROE
(return on equity)

28.1%

29.6%

18.0% to 21.0%

25.9%

ROA
(return on assets)

6.8%

7.4%

6.0% to 7.0%

6.1%

ROIC
(return on invested capital)

8.4%

10.2%

7.0% to 9.0%

6.9%

81.77 yen105.98 yen

75 to 85 yen

115.10 yen

To provide even more stable returns to shareholders, we have adopted a progressive
dividend policy for the period covered by the 2nd Medium-term Management Plan
(2017 to 2019). Under this policy, the dividend per share (DPS) must be equal to or
greater than the DPS for the previous term. In other words, our basic stance is not to
cut dividends.
This progressive dividend policy, which clearly states that we will maintain or increase
dividends, not reduce them, represents a promise to shareholders to enhance our value
in a sustained manner.
By introducing this progressive dividend policy, we will strive to achieve stabledividends, enhance transparency of future dividend scales, along with further
strengthening returns to shareholders and improving sustainable company value.
Dividend trend

Term ended December
2017
23rd term
Results

EPS(earnings per share)*ROIC (return on invested capital): Net operating profit after tax / (Shareholders' equity + Interest-bearing liabilities)

Dividend (yen)Dividend payout ratio
Acquisition of treasury
stock (million yen)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Total payout ratio

Term ending December
2019
25th term

Term ended December 2018
24th term
Initial plan

Revised

Plan

[＋12]

32

35

[＋7.5%]

30.2%

30.4%

18

20

22.0%

22.7%

449

-

-

-

30.9%

-

30.2%

30.4%

16

Plan for Term Ending December 2019
(25th Term)

17

Term Ending December 2019 – Real Estate Sales Business• In the condominium sales business, we plan to sell 759 condo units worth 36.2 billion yen (up 11.1 billion yen from 2018) in 2019.
• In other businesses, in addition to sales of hotels, we plan to sell commercial facilities and land to the REIT (ESCON JAPAN REIT
Investment Corporation).
We are targeting sales of 34 billion yen (up 8.5 billion yen) in 2019.
80,00070,250(full-year forecast)
70,000Other50,519 (result)

60,00034,00041,168 (result)

50,000Percentage of real estate sales by area

31%

2019

56%

13%

30,687 (result)
40,000Condominium
business

21,66830,000

9,822
20,000

45.3%

2018

25,42924,649 (result)

10,21036,250

49.7%

36.7%

2017

47.5%

0%

10,00020,865

19,500Term e nded
Decem be r 2016
(Results)

Term e nded
Decem be r 2017
(Results)

14,43915.7%

50%

Metropolitan area

4.9%

100%

Kinki region

Other regions

25,0890(Unit: Million yen)

Term e nded
Decem be r 2015
(Results)
2015 (21st term)● The Neverland Akashi Harbor Gate
● Grand Le JADE Kyoto Kawaramachi

2016 (22nd term)

Term e nding
Decem be r 2019
(Forec ast)2017 (23rd term)

2018 (24th term)

2019 (25th term)(Kinki region)● Grand Le JADE Shukugawa Kurakuenguchi(Kinki region)● Le JADE Takatsuki The Marks(Kinki region)● Feel Garden Minamisenri(Kinki region)● Mirakita City Himeji(Kinki region)(Kinki region)● Le JADE Takatsuki(Kinki region)● Le JADE Takatsuki Cross(Kinki region)● Le JADE Minamimorimachi(Kinki region)● Le JADE Otsu LUXE

(Kinki region)● Le JADE Nishitanabe Abeno Hannancho(Kinki region)● Le JADE Fushimi Chushojima(Kinki region)● Grand Le JADE Okamoto(Kinki region)● Grand Le JADE Takatsuki Tenjin(Kinki region)● Le JADE Yokohama Tsurumi(Metropolitan area)● Le JADE Otsu Nagisa-koen(Kinki region)● Le JADE Nagaokakyo(Kinki region)● Le JADE Hama-Otsu(Kinki region)● Le JADE Musashisakai(Metropolitan area)● Le JADE Komagome(Metropolitan area) ● Le JADE Sazan Gate Toyota(Metropolitan area)● Le JADE Takatsuki Kosobe(Kinki region)● Le JADE Toyoda(Metropolitan area)● Le JADE Vert Komagome(Metropolitan area) ● Le JADE Kawasaki(Metropolitan area)● Le JADE Sumakaihin Koen

(Kinki region)● Le JADE Minami Kasai(Metropolitan area)● Grand Le JADE Wakamatsucho Residence(Metropolitan area) ● Grand Le JADE Shibuya Tomigaya(Metropolitan area)● Le JADE Shinkanaoka Park Fields(Kinki region)● Le JADE Musashino Residence(Metropolitan area)● Le JADE Sakurajosui Tiara(Metropolitan area) ● Grand Le JADE Ochanomizu(Metropolitan area)● Le JADE Minami-Ibaraki MUSE

(Kinki region)● Le JADE Minami Kasai Park Arena(Metropolitan area)● Le JADE Yokohama Hananoki(Metropolitan area) ● Le JADE Nakano● Le JADE Setagaya Kinuta(Metropolitan area)● Le JADE Kasai(Metropolitan area)● Park JADE Suginami Izumi (detached houses)(Metropolitan area)● Park JADE Akatsuka-koen (detached houses)(Metropolitan area)

Condominium
sales businessCondominium
units sold

Term e nded
Decem be r 2018
(Results)

349 units (results)

491 units (results)

349戸実績

476 units (results)

491戸実績

(Metropolitan area)● Le JADE Tsujido Higashi Kaigan(Metropolitan area)● Le JADE Bio Funabashi Kitanarashino(Metropolitan area)● Grand Le JADE Sanbancho(Metropolitan area)● Grand Le JADE Jiyugaoka(Metropolitan area)● Grand Le JADE Todoriki(Metropolitan area)● Grand Le JADE Shonan Enoshima R1344(Metropolitan area)

539 units (results)

541戸予定Sold out

759 units (forecast)

約● Yao-shi Takamicho Project (commercial leasehold)(Kinki region)● Chuo-ku Shimamachi Project (revenue-generating real estate)(Kinki region)● Chuo-ku Hirano Project (hotel)(Kinki region)● Minamisenba III Project (hotel)(Kinki region)● Minamisenba I Project (hotel)(Kinki region)

Completed● Yodogawa-ku Miyahara Project (revenue-generating real estate)(Kinki region)● Kobe-shi Nishi-ku Otsukadai Project (commercial leasehold)(Kinki region)● tonarie Seiwadai Project (commercial leasehold)(Kinki region)● Kitakyuhoji Project (hotel)(Kinki region)● Nagahoribashi Ekimae Project (hotel)(Kinki region)

Completed(Kinki region)● Takatsuki-shi Josaicho Project (land planning)(Kinki region)● tonarie Minamisenri Project (commercial leasehold)(Kinki region)● Awajicho I Project (hotel)(Kinki region)● Awajicho III Project (hotel)(Kinki region)(Kinki region)● Ibaraki Tsuchiura-shi Project (commercial leasehold)(Metropolitan area)● Sakai-shi Daisen I/II Project (commercial leasehold)(Kinki region)● Awajicho II Project (hotel)(Kinki region)● Sakai-shi Daisen-nishi II Project (commercial)(Kinki region)

Sold out(Metropolitan area)● Chigasaki-shi Misumicho Project (land planning)(Metropolitan area)● Nihonbashi Kayabacho Project (hotel)(Metropolitan area) ● Kita-ku Tsurunocho Project (hotel)(Kinki region)● Kobe-shi Nishi-ku Mitani Project (commercial)(Kinki region)

Sold out(Metropolitan area)● Fukuoka Kasuga Project (land planning)(Other)● Nihonbashi Bakurocho Project (hotel)(Metropolitan area) ● Sendagaya Project (revenue-generating real estate)(Metropolitan area)● Shimotakaido A Project (revenue-generating real estate)(Metropolitan area)

Completed● Nagoya Sunadabashi Project (anonymous partnership investment)(Other)● Nishi-ku Kawaguchi Project (land planning)(Metropolitan area) ● Wakamatsucho 31 Project (revenue-generating real estate)(Metropolitan area)● Nakano-ku Nakano Project (land)(Metropolitan area)● Mie Nabari-shi Project (land planning)(Other)● Sendagaya Project (revenue-generating real estate)(Metropolitan area) ● Chiyoda-ku Hayabusa-cho Project (hotel)(Metropolitan area)● Asumigaoka Project (commercial)(Metropolitan area)

Sold out● Tochigi Nikko-shi Project (commercial leasehold)(Other)● Kanazawa-shi Oyamamachi Project (hotel)(Other)● Kanazawa-shi Horikawashinmachi Project (hotel)(Other)● China Oyumino Project (commercial)(Metropolitan area)

Sold out● Sapporo-shi Project (hotel)(Other)● Fukuoka Kasuga Project (land planning)(Other)● Nishishiroi Ekimae Project (commercial)(Metropolitan area)

Sold out● Kurashiki-shi Oimatsucho Project (commercial leasehold)(Other)● Pare Marche Nishiharu Project (commercial)(Other)Sold out● Fukuoka Kasuga Project (land planning)(Other)● Fukuoka Kasuga Project (land planning)(Other)Sold out● Fukuoka Koga Project (land planning)(Other)● Kyoto Rokkaku Project (revenue-generating real estate)
Other(commercial, ● Nishi-ku Utsubohonmachi Project (revenue-generating real estate)● Shibuya-ku Honmachi Project (land planning)
revenue● Nishitokyo-shi Nishihara Project (revenue-generating real estate)
generating realestate, landplanning, hotel,
and otherbusinesses)

18

Condominium Sales Business “Le JADE Series” Fiscal 2019

Grand Le JADE Shonan Enoshima R134 (Metropolitan area)

Grand Le JADE Todoroki (Metropolitan area)

Mirakita City Himeji (Kinki region)

Location: Fujisawa-shi, Kanagawa
Access: 9-minute walk from Katase Enoshima Station on Odakyu Enoshima Line
9-minute walk from Shonan Kaigan Koen Station on Enoshima Dentetsu Line
No. of residences: 24 (including 2 units not for sale)
Occupancy date: Slated to start late March 2019

Location: Setagaya-ku, Tokyo
Access: 12-minute walk from Todoroki Station; 12-minute walk from
Oyamadai Station on Tokyu Oimachi Line
No. of residences: 43
Occupancy date: Slated to start late November 2019

Location: Himeji-shi, Hyogo
Access: 4-minute walk from Nozato Station on JR Bantan Line
No. of residences: 143 (including 9 units not for sale)
Occupancy date: Slated to start mid-February 2019

Le JADE Tsujido Higashi Kaigan (Metropolitan area)
Location: Fujisawa-shi, Kanagawa
Access: 17-minute walk (SEA-SIDE VILLA)/18-minute walk (GARDEN-SIDE VILLA) from Kugenuma Station on
Odakyu Enoshima Line; 9-minute bus ride from Tsujido Station on JR Tokaido Line and 3-minute walk (SEA-SIDE
VILLA)/4-minute walk (GARDEN-SIDE VILLA) from Shoyo Chugakko-ma bus stop
No. of residences: 51 (25 in SEA-SIDE VILLA, 26 in GARDEN-SIDE VILLA)
Occupancy date: Slated to start late December 2019

Le JADE Shinkanaoka Park Fields (Kinki region)

Le JADE Sumakaihin Koen (Kinki region)

Location: Sakai-shi, Osaka
Access: 4-minute walk from Shinkanaoka Station on the Osaka Metro
Midosuji Line
No. of residences: 204 (plus one management office, one guest room,
one party room and library/conference room)
Occupancy date: Slated to start late October 2019

Location: Kobe-shi, Hyogo
Access: 3-minute walk from Sumakaihin Koen Station on the JR
Kobe Line
No. of residences: 30 (plus management office)Occupancy date: Slated to start late September 2019

Le JADE Takatsuki Kosobe (Kinki region)

Sold out

Location: Takatsuki-shi, Osaka
Access: 15-minute walk from Takatsuki Station on JR Kyoto Line
14-minute walk from Takatsuki-shi Station on Hankyu Kyoto Line
No. of residences: 181 (plus one management office, one grand kitchen[conference room], one owners’ library, one indoor park, and one guest room)
Occupancy date: Slated to start late September 2019

Grand Le JADE Takatsuki Tenjin(Kinki region)
Location: Takatsuki-shi, Osaka
Access: 7-minute walk from Takatsuki Station
on JR Kyoto Line
17-minute walk from Takatsuki-shi Station on
Hankyu Kyoto Line
No. of residences: 28 (plus management office)Occupancy date: Slated to start late June 2019

Le JADE Otsu LUXE (Kinki region)
Location: Otsu-shi, Shiga
Access: 11-minute walk from Zeze Station on the JR
Tokaido Main Line/Biwako Line; 3-minute walk from
Ishiba Station on the Keihan Ishiyama-Sakamoto Line
No. of residences: 35 (including three offices, plus
one management office)Occupancy date: Slated to start late December 2019

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Le JADE Minami-Ibaraki MUSE (Kinki region)
Location: Ibaraki-shi, Osaka
Access: 7-minute walk from Minami-Ibaraki Stationon the Hankyu Kyoto Line; 9-minute walk from
Minami-Ibaraki Station on the Osaka Monorail Line
No. of residences: 40 (plus one management office)Occupancy date: Slated to start late August 2019

Le JADE Hama-Otsu (Kinki region)
Location: Otsu-shi, Shiga
Access: 4-minute walk from Biwa-ko Hama-Otsu
Station on the Keihan Keishin Line; 3-minute walkfrom Miidera Station on the Keihan IshiyamaSakamoto Line
No. of residences: 51 (plus one management office)Occupancy date: Slated to start late December 201919

Condominium Sales Business “Le JADE Series” Fiscal 2020, 2021

Le JADE Kotoen (Kinki region)
Location: Nishinomiya-shi, Hyogo
Access: 5-minute walk from Kotoen Station on Hankyu Imazu Line; 6-minute walk from Kotoen bus stop on
Hankyu bus route
No. of residences: 49
Occupancy date: Slated to start late January 2020

Le JADE Ikeda Masumicho (Kinki region)
Location: Ikeda-shi, Osaka
Access: 2-minute walk from Ikeda Station on Hankyu Takarazuka Line
No. of residences: 35
Occupancy date: Slated to start late April 2020

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

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

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

Le JADE Takatsuki Miyanocho (Kinki region)

Le JADE Higashisumiyoshi Imagawa Ryokudo (Kinki region)

Location: Takatsuki-shi, Osaka
Access: 18-minute walk from Takatsuki-shi Station on Hankyu Kyoto Line
No. of residences: 99
Occupancy date: Slated to start late February 2020

Location: Osaka-shi, Osaka
Access: 4-minute walk from Tobushijomae Station on JR Kansai MainLine
No. of residences: 41 (plus management office)Occupancy date: Slated to start late February 2020

⚫ Nishinomiya-shi Hinokuchi Project(Kinki region)⚫ Nishinomiya-shi Yasui-cho Project(Kinki region)⚫ Hino-shi Tamadaira Project(Metropolitan area)⚫ Yokohama-shi Kohoku-ku Okurayama
Project (Metropolitan area)⚫ Hiratsuka-shi Matsukazecho Project(Metropolitan area)⚫ Kamakura-shi Zaimokuza Project(Metropolitan area)

Le JADE Meidaimae (Metropolitan area)

Fiscal 2021

⚫ Minato-ku Shirogane Project(metropolitan area)⚫ Takatsuki-shi Besshonakanocho
Project (Kinki region)⚫ Akashi-shi Nishiakashi Ekimae
Project (Kinki region)⚫ Amagasaki-shi Mukonosohonmachi
Project (Kinki region)⚫ Myohoji Ekimae Project (Kinki region)

Location: Setagaya-ku, Tokyo
Access: 4-minute walk from Meidaimae
Station on Keio Inokashira Line
No. of residences: 45
Occupancy date: Slated to start late
February 202020

Hotel Development Business

Kayabacho, Nihonbashi
Opened in December 2016
102 rooms
Sold

Hayabusacho, Chiyoda-ku
Opened in April 2018
102 rooms
Sold

Bakurocho, Nihonbashi
Opened in April 2017 Sold
63 rooms

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

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

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

Sapporo-shi, Hokkaido
Opened in July 2017
144 rooms

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

Sold

Oyamamachi, Kanazawa-shi
Opened in December 201747 rooms

Kitakyuhojimachi,
Osaka-shi
Sold
Opened in June 2018
182 rooms

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

Sold

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

Nagahoribashi Station
Opened in December
2018
Contracted
96 rooms⚫ Numbers of hotel projects
Nishi-Shinsaibashi,
Chuo-ku, Osaka-shi
Slated for July 2020
52 rooms

Sold
Nakasu, Hakata-ku,
Fukuoka-shi
Slated for March 2020
103 rooms

Awajicho III, Chuo-ku,
Osaka-shi
Slated for Feb. 2019184 rooms

Minamisenba I, Chuo-ku,
Osaka-shi
Slated for May 2019
Contracted
256 rooms

Tokyo
metropolitan
area

Kinki
region

Other

Total

3

6

3

12
2

Sales contract signed

2

Other

2

1

3

10

4

17

Total

3

21

Commercial Development Business, Logistics Business,
Land Readjustment Business

Daisen-nishi I, Sakai-ku, Sakai-shi

soyoca Fujimino (Fujimino-shi, Saitama)

tonarie Yamato-Takada (Yamato-Takada-shi, Nara)

Aeon Minamisenri (Suita-shi, Osaka)(Provisional name) Hyogo Tojo Interpark (Kato-shi, Hyogo)(Artist’s impression of the building exterior)
Copyright ©2019 ES-CONJAPAN Ltd., All Rights ReservedInterior of tonarie YamatoTakada

Tsukuba Q’t/MOG (Tsukuba-shi, Ibaraki)

Koga-shi Genboen land readjustment project (Koga-shi, Fukuoka)
Left: aerial photo
Right: Current site plan, conditions of neighboring land

(Provisional name) tonarie Toga-Mikita (Sakai-shi, Osaka)(Artist’s impression of the building exterior)

Yamada Denki Sapporo Shiroishi store (Sapporo-shi, Hokkaido)

22

Term Ending December 2019 − Real Estate Leasing Business• Due to property sales and other factors, rental income in 2018 slightly fell. However, we plan to increase rental
income by 900 million yen thanks to rental income from new commercial facilities opening in 2019.
• We will continue to focus on this business, which is expected to generate stable revenues.

(Unit: Million yen)
4,500

4,300

4,000

Rentalincome

3,594

3,459

3,500

3,000

4,200

Generaladministrative
expenses

3,400
3,277

2,857

2,782

2,520

2,241

2,500

2,058
2,000

2,128
1,761

1,606
1,536

1,500

1,000

Segment
profit500

0Term e nded
December 2015
(Results)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Term e nded
December 2016
(Results)

Term e nded
December 2017
(Results)

Term e nded
December 2018
(Results)

Term e nding
December 2019
(Forecast)* General administrative expenses:
excludes sales expenses.

23

Strategic Business Expansion of ES-CON JAPAN Group
Our condominium sales business efforts primarily target the Kanto and Kansai regions. We plan to branch out into development workin the Chubu region and Fukuoka as new strategic targets.
In the sphere of commercial development, we are currently at work developing projects in major cities across Japan and their environs.
We are also focusing on NSC development projects with close ties to local communities.
Our hotel development business is active in major cities across Japan.
We also launched efforts in the logistics and land readjustment businesses and plan to intensify efforts in these areas.
As of February 19, 2019

◼ Current state ofdevelopment by area

 Condominium units: approx. 10,230 units(approx. 8,248 units in Kansai; approx. 1,982 units in Kanto) Detached houses/housing land development: approx. 700 sections
 Commercial development etc.:
Acquiring and developing properties throughout the country Hotel development: acquisition of land for over approx. 2,118 rooms
Developing in Tokyo, Osaka, Hokkaido, Kanazawa, and Fukuoka

Hokkaido
Hotel: 1 project
Commercial land:
1 project

Hokuriku
Hotel: 2 projects

Kansai
Condominiums: 140 buildings
Hotel: 10 projects
Commercial facilities (including
leasehold): 13 projects
Logistics facilities:
1 project

Kanto

Chubu
KyushuCommercial facilities:
1 project

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

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Condominiums: 44 buildings(including 1 renovation project)
Hotel: 3 projects
Commercial facilities (including
leasehold): 5 projects

We will maintain our focus on the
Kansai region, which promises
market vitalization thanks to theplanned exposition, IR, etc.
We will focus on continuing growthin the enormous Kanto market.
Proactive deployment in the Chubu
region through capital and business
partnership with Chubu ElectricPower
Full-scale deployment in the
Fukuoka region

We will seek to identify
globalization strategies,
including overseas
development.

24

Strategic Business Expansion of ES-CON JAPAN Group
Comprehensive developer operating a multifaceted real estate business with a core focus on condominium sales business andactive in commercial development, hotel development, logistics development, land readjustment project, and other businesses

Property
management

Logistics
development

International
business

Commercial
development

Hoteldevelopment
Condominiums

Condominium
management

Seniorbusiness

Operations
Asset
management

Land readjustment

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Investment
application25

Information

ESCON Japan Ltd.
Email: ir@escon.jp
Tokyo12th Floor, Try Edge Ochanomizu, 4-2-5 Kanda Surugadai,
Chiyoda-ku, Tokyo 101-0062☎03-5297-6161

Osaka
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