OST Residence Karuizawa

Financial
Results
Fiscal Year
Ended December 2022
ESCON JAPAN Ltd.

Table of Contents⚫ Financial Results for Ended December 2022
P/L for Fiscal Year Ended December 2022
Segment Results for Fiscal Year Ended December 2022
B/S for Fiscal Year Ended December 2022

⚫ Major Topics for Fiscal Year
Ended December 2022
Business Progress in Hokkaido
Progress of Multipurpose Development and Urban Development
Intensification and Expansion of Development Domains
Steady Growth of the Condominium Business
Structure of ES-CON JAPAN Group Initiatives
ESG Initiatives

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

P. 9, 10
P. 11
P. 12
P. 13
P. 14
P. 15, 16⚫ Progress on Fourth Medium-Term Management Plan
- IDEAL to REAL 2023 (FY2021-2023)
Basic Policy
Ten-year Trends in Financial Results
Planned Financial Results
Management Targets
Investment Plans
Trends in the Real Estate Sales Business
Trends in the Real Estate Leasing Business
ES-CON JAPAN Group’s Business Development

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

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

*Key to this document
EAM: ES-CON ASSET MANAGEMENT Ltd.
ESH: ES-CON HOME Ltd.
ESC: ESCON CRAFT Ltd.
Picasso Group: PICASSO CO., LTD. andother companies
FUEL: FUEL Inc.
EJR: ES-CON JAPAN REIT Investment
Corporation
Chubu Electric Power: Chubu Electric Power
Co., Inc.
Chuden Real Estate: Chuden Real EstateCo., Inc.
2

P/L for Fiscal Year Ended December 2022
➢ Both sales and profits increased compare to the previous term. Sales were up 25.8% (20,414 million yen), operating profit up
49.2% (5,111 million yen), ordinary income up 54.0% (4,913 million yen), and profit attributable to owners of parent up 21.6%(1,289 million yen). 1➢ While sales met targets planned and operating profit and ordinary income exceeded initial targets by more than 10%, profit in
the current term attributable to owners of the parent fell short of goals due to extraordinary loss recorded for Ryomon Co., Ltd. andother companies. 2
Fiscal Year Ended
December 2022
(term under review)

1
Compared to previous term

Fiscal Year Ended
December 2021
(previous term)

Change2
Fiscal Year Ended December 2022

Percentage

PlannedSales

99,43179,017

20,41425.8%

Gross profit

26,607

20,588

6,019

29.2%

Selling, general and administrative
expenses

11,115

10,206909

8.9%

Selling expenses

4,133

4,454

-321

-7.2%

General administrative expenses

6,981

5,752

1,229

21.4%

15,492

10,381

5,111

49.2%

1,895

1,463

432

29.5%

14,012

9,099

4,913

54.0%

3,927

0

3,927

-

Profit in the current term attributable toowners of the parent

7,250

5,961

1,289

Basic earnings per share in the current
term (yen)

76.04

67.48

8.56

Operating profit
Interest expenses
Ordinary income
Extraordinary loss

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Change(Unit: Million yen)

Initial plan
Percentage

100,000

-569

-0.6%

14,000

1,492

10.7%

12,200

1,812

14.9%

21.6%

8,300

-1,050-12.7%

12.7%

86.99

-10.95-12.7%

3

Segment Results for Fiscal Year Ended December 2022
➢ Both sales and profit increased compare to the previous term in the Real estate sales business, the Real estate leasing business, andthe Real estate planning agency and consulting business.

■ Share of sales by segment ■Sales■ Share of profit by segment ■99,431 million yen

Segment income

21,951 million yen(+ 25.8%)
Share(+ 38.1%)
Real estate planning agency
and consulting

11.9%

11,824 million yen

1,074 million yen(+ 46.2％)(+ 81.4％)

Share

Real estate planning agency
and consulting

21.5%

228 million yen

4,716 million yen(Previous term:
segment loss of
516 million yen)(+ 39.9％)

Real estateleasing

Real estateleasing
Condominium

Other sales
Share

28.2%

27,999 million yen(+ 10.7％)

Condominium
Share

Share

Other sales

58.9%

58,532 million yen

Share(+ 29.9％)45.2%

9,921 million yen(+ 66.0％)

32.3%

7,085 million yen(+ 0.4％)

Real estate sales(Condominium/other)
86,531 million yen

Real estate sales(Condominium/other)
17,006 million yen(+ 23.0％)
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved(+ 30.4％)*Percentages in parentheses () indicate
change compared to the previous term.

4Segment Results for Fiscal Year Ended December 2022:
Real estate sales business① Real estate sales business«Condominium sales»➢ Strong sales grew to a record high of 1,185 units delivered, up 165 units from the same period last year, resulting in an increase of 13,482 million
yen in sales. 1➢ Results were largely in accordance with initial plans. 2➢ Sales of units were completed early thanks to our product planning abilities. Segment profit margin improved by 3.6 percentage points from theprevious term. 3➢ Closing inventory for term stood at 104 units (75 units as of February 6, 2023 [contractual basis]).
(Unit: Million yen)
Fiscal Year Ended
December 2022 (A)Fiscal Year Ended
December 2021 (B)Sales

58,53245,050Properties delivered (units)

1,185

Segment incom

Real estate leasing business

Segment profit margin

2

Compared to previous term
Change (A-B)

1

Percent change

Fiscal Year Ended December 2022 full-year plan
Planned (C)Change (A-C)

Percent change

13,48229.9%

59,300

-768

-1.3%

1,020

165

16.2%

1,200

-15

-1.3%

9,921

5,978

3,943

66.0%

-

-

-

16.9%

13.3%

3.6 percentage
points

-

-

-

-

3

«Other businesses»➢ Sales and profits were up from the same period last year thanks to steady progress in external sales during the current period. 1➢ A wide range of properties were sold, including logistics facilities (Genboen, Koga-shi, Fukuoka [Zone 6] and LOGITRES Chiba Research Park) anddetached houses by ES-CON HOME (ESH). 2(Unit: Million yen)

Real estate planning agency andconsulting businessCompared to previous term

Fiscal Year Ended December 2022 full-year plan

Fiscal Year Ended
December 2022 (A)Fiscal Year Ended
December 2021 (B)27,99925,283

2,716

10.7%

28,000

-1

0.0%

-

11,947

-

-

-

-

-

27,99913,336

14,663110.0%

-

-

-

7,085

7,060

25

0.4%

-

-

-

25.3%

27.9%

-2.6 percentage
points

-

-

-

-

Sales
Sales to EJROthers(Logistics, commercial, ESH, etc.)

12

Segment incom
Segment profit margin

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Change (A-B)

Percent change

Planned (C)Change (A-C)

Percent change

5Segment Results for Fiscal Year Ended December 2022:
Real estate leasing business, planning agency and consulting business② Real estate leasing business➢ Sales and profits were up from the same period last year, thanks to the full-year profit contributions by the Picasso Group, made asubsidiary in October 2021. 1(Unit: Million yen)
Real estate leasing business

Fiscal Year Ended
December 2022 (A)Fiscal Year Ended
December 2021 (B)Compared to previous term
Change (A-B)

Fiscal Year Ended December 2022 full-year plan

Percent change

Planned (C)Change (A-C)

Percent change

Sales11,824

8,090

1

3,734

46.2%

11,600224

1.9%

Segment incom

4,716

3,372

1

1,344

39.9%

-

-

-

39.9%

41.7%

-1.8 percentage
points----Segment profit margin③ Real estate planning agency and consulting business➢ We recorded a segment income of 228 million yen this period. 2➢ Performance of the columbarium business was less than planned, as that business continues to feel the effects of the COVID-19
pandemic.
(Unit: Million yen)
Real estate planning agency andconsulting business

Segment profit margin

Fiscal Year Ended December 2022 full-year plan

Fiscal Year Ended
December 2021 (B)

1,074

592

482

81.4%

1,100

-26

-2.4%

228

-516

-

-

-

-

-

21.2%

-

-

-

-

-

-

Sales

Segment incom

Compared to previous term

Fiscal Year Ended
December 2022 (A)2Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Change (A-B)

Percent change

Planned (C)Change (A-C)

Percent change

6

B/S for Fiscal Year Ended December 2022
➢ Total assets grew by 10,958 million yen. 1 The equity ratio was up 0.2 percentage points from the end of the previous term to 25.0%. 2➢ Real estate for sale decreased by 2,737 million yen thanks to strong progress in the Real estate sales business, including sales of condominiums andrevenue-generating real estate. 3➢ Steady progress on purchasing led to growth of 15,549 million yen in real estate for sale in process. 4(Unit: Million yen)

Fiscal Year Ended
Decem ber 2022
(term under review )Current assets

Fiscal Year Ended
Decem ber 2021
(previous term )■ Inventory breakdown and trends (Unit: Million yen)
Increase/decrease

5,320

191,357

176,859

14,498Cash and deposits

35,721

33,667

2,054

End of
FY2021

Real estate for sale

4,804

7,541

-2,737130,960

Real estate for salein process

3
4

138,968

123,419

72,32775,830-3,503

Property, plant andequipment

52,13952,778-639

Intangible assets

7,774

8,275

-501

Investments andother assets

12,413

14,776-2,363

263,729

252,771

10,958Non-current assets

1

Total assets+12,813
millionyen

15,54920,52258,74025,831

Steady progress onpurchasing

Acquisition ofcommercial
facilities(Up 7,298 million yen YOY)

(Up 6,040
million yen YOY)

End of
FY2022

143,773

2,757

66,03826,562

Condominiums

Commercial

17,78824,673

18,738

Rentalresidences
4,362

3,396

Logistics

HotelsOther■ Trends in assets, liabilities, and equity ratio (Unit: Million yen)
Fiscal Year Ended
Decem ber 2022
(term under review )Current liabilities

55,690Fiscal Year Ended
Decem ber 2021
(previous term )102,523

Increase/decrease
Property, plant and equipment(revenue-generating properties held)

Inventory assets

Interest-bearing debt

Total assets

Equity ratio
263,729-46,833

252,771

250,000

Short-term loans

10,061

Current portion of
long-term loans
Non-current liabilities

3,589

26,19382,912

143,894

87,619

25.0%

6,472
25.8%

25.3%

200,000-56,719

Total liabilities

132,81076,533

199,585

190,143

149,423

83,85464,14462,628

1,516

263,729

252,771

10,958130,960

98,506

100,000
9,442

Total liabilities and net
assets143,773

132,696

56,277

Total net assets

169,065

163,034

56,275150,000

Long-term loans

24.8%

88,57885,01952,08150,00012,65551,435

14,1360Equity ratio

2

25.0%

24.8%

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved-0.2 percentage
pointsTerm ended December 2019

Term ended December 2020

Term ended December 2021
(previous term)

Fiscal Year Ending December 2022
(term under review)

7

Business Progress in Hokkaido

Progress of Multipurpose Development
and Urban Development

Major Topics
Fiscal Year
Ended December 2022

Intensification and Expansion of Development
Domains

Steady Growth of the Condominium Business

Structure of ES-CON JAPAN Group Initiatives
ESG Initiatives

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

8

<Business Progress in Hokkaido>
Hokkaido Ballpark F. Village urban development project➢ We are participating in a large-scale development called Hokkaido Ballpark F. Village (a total of approx. 36.7 ha under development),
centered on ES CON FIELD HOKKAIDO, the new stadium for the Hokkaido Nippon-Ham Fighters.
We plan to develop a site measuring approx. 9,400 square meters adjacent to the stadium.
2023年3月開業予定@H.N.F@Obayashi Corporation@H.N.F

Current state of F. Village (January 2023)
Photo courtesy: Obayashi Corporation<Stadium overview>• Name:ES CON FIELD HOKKAIDO• Seating capacity: Approx. 35,000• Floors:
Two underground (field) floors and six abovegroundfloors (70 m height)• Specifications:
Retractable roof, natural turf field• Opening:
March 2023 (completed)

Scheduled to open March 2023
Work will accelerate urban development centered on the
new ballpark. (▶ P10)
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

9

<Business Progress in Hokkaido>
Development inside F. Village (condominiums, senior residences)➢ Our first condominium project in Hokkaido is currently under development as part of the Hokkaido Ballpark F. Village Project.
➢ In February 2022, we began work on developing residences integrated with a medical complex for active seniors.

Le JADE Hokkaido Ballpark (Condominium development)
Scheduled for delivery by March 2023 (sold out)

Senior residence (with a medical complex)
Scheduled for completion in spring 2024

Approx. 80 m in direct linefrom the new ballpark

The starting point in the path to tomorrow

Access point for F. Village JR Kitahiroshima Station “West Exit Area Revitalization Project”➢ July 2022: Start of construction on Kitahiroshima Station West Exit A Project (tentative name; a commercial facility and hotel
complex) on city-owned lot A

14 above groundfloors; scheduled forcompletion in FY2024

As project partner, we will promote the vitality of
the area around Kitahiroshima Station.
“West Exit Area Revitalization Project” overview(city-owned lots A-D)
A: Ekimae plaza/commercial facility, hotel/elevated plaza, park
B: Condominiums
C-D: Planning underway

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

10Progress of Multipurpose Development and Urban Development➢ Leveraging our real-estate development expertise as a comprehensive developer through multi-use development and urban development
rooted in local communities in major cities across Japan

Tsukuba, Ibaraki Prefecture (multipurpose development integrating commercial, employment, and residential facilities)•

A multipurpose development will combine commercial, office, andresidential facilities in the developed property, located in front of
Tsukuba Station.

•

Phase 1 of tonarie CREO opened in May 2021, contributing to profits
throughout FY2022.

•

Cafe Apartment TSUKUBA, the second cafe/dining restaurant
developed and operated by the Group, opened on the site of acondominium in December 2022.

We continue to promote and plan various other multi-use
development projects.
Iwaki, Fukushima Prefecture(condominium development)

Sales began in November
2022

Omura, Nagasaki Prefecture(condominium development)

Scheduled for completion inautumn 2024
Shin-Omura Station on the Nishi Kyushu Shinkansenline opened in September 2022.

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Le JADE Tsukuba Station Front (condominium)

Cafe Apartment TSUKUBA (cafe/dining restaurant)

218 Condominium units havebeen delivered

Nagoya-shi, Aichi

Suita, Osaka Prefecture(Urban development)

Joint project with
Chuden Real Estate

20th Asian Games Aichi-Nagoya2026 Athletes’ Village site postGames project(Multi-use commercial complex
development)

Under development by abusiness consortium led by
Chubu Electric Power11

Intensification and Expansion of Development Domains➢ Steady business growth through the development of various assets, including logistics, office, and leased condominiums, in addition to ourcore condominium and commercial development businesses

Commercial facility (tonarie Hoshida, newly opened)•

tonarie Hoshida is currently under development in a land readjustmentsite located north of Hoshida Station.

•

Planned tenants include a supermarket, medical complex, drugstore,
100-yen shop, and more.

•

Katano will be the 10th facility in the tonarie series.

Scheduled to open in spring 2023

Multifaceted business development
OfficeHotel

Escon Kudankita Building

Kyushu Itoshima Futamigaura project (tentative name)

Logistics facility

LOGITRES Chiba Research Park

Overseas businesses
December 2022
Planning our first overseas detached houses
development project (in Thailand)
BRITANIA BANGNA KM. 39 Project (tentative name)12

Steady Growth of the Condominium Business➢ Rather than merely selling more condominiums, our core business of condominium development strives to contribute to a stable supply of
housing.

Development on unique urban sites

Area expansion➢ Park Le JADE Shirokane Residence ➢ Le JADE Cross Chiyoda Jimbocho••

Shirakane 4-chome Address
Contracts concluded on all 55 units(slated for delivery in March 2023)•

Sold out

Sold out

A combination residential and office complex developed on asite next to the Institute of Eastern Culture, an important
property featuring in Chiyoda Ward’s scenic urban
development plans➢ Minato-ku, Nishi-Azabu project (tentative name)•

A location surrounded by leading Tokyo neighborhoods, including Minami-Aoyama, Omotesando, Hiroo,
and Roppongi

Product planning that leverages unique site characteristics to achieve high added value➢ OST Residence
Karuizawa••

A location with views of Mt.
Asama and surrounded bynatural beauty
All 33 units have beendelivered.

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved•

Our first location in the Kyushu
area (140 units in total)➢ Grand Le JADE Shirakabe
Getsuronotei/Rinzennotei•••

Sold out➢ Kanagawa Prefecture Miura-gun
Hayamamachi project (tentative name)➢ Le JIAS Ohashi

Our first and second properties in
the Chubu area
Joint projects with Chuden Real
EstateAll units in both projects sold out inNovember 2022.

Sold out••

Developed on a site with expansive views of the Morito
coast
Product planning that makes the most of the natural
setting to achieve high added value(Left) Grand Le JADE Shirakabe Getsuronotei(Right) Grand Le JADE Shirakabe Rinzennotei

13Structure of ES-CON JAPAN Group Initiatives➢ We build a structure to enable the growth of each Group company together with multifaceted business development Groupwide[Detached homes
in Saitama][Condominium
management][Property management]

ES-CON
LivingService

ESCON
Property

ESCON
CRAFT

[Detached homes
in Saitama]

Chubu Electric Power Group

ES-CON
HOME[Real estate investment
management]
ES-CON ASSETMANAGEMENT

January 30
organizational
reforms(Change in
representative director)[Job placement]
ES-CON
Global Works[Columbarium sales][Real estate leasing][Real estate crowdfunding]

Picasso
Group

FUEL

RyomonWork will continue on
measures intended tocontribute to growthalongside efforts tonormalize EJR's asset
management.

Toward medium- to long-term growth➢ Reforms of ES-CON Japan's organizational structure in January 2023 established the new Management Planning Division.

Compliance Office

GeneralMeeting of
Shareholders

Board ofDirectors

Strategic Business
Division

Taking on new business domains while enhancing and growinginternational businesses

Development
Business Division

Multifaceted business development of condominiums,
commercial properties, and other projects as general developer;
promoting urban development

President

Management
Division

Audit andSupervisory Board
Internal Audit Office
Audit and Supervisory
Board Office
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Management
Planning Division

Building the strong management foundations essential tobusiness activities while promoting ESG management
Drafting and implementing long-term management strategies;
formulating the next medium-term management plan, regional
development strategies, Group company strategies, HR
development strategies, etc.

14

ESG Initiatives ① Basic policy

ESG management
promotion structure➢ The management strategies of the fourth medium-term management plan include Promotion ESG.
➢ The ESG Promotion Group and Health & Culture Fostering Team play key roles in promoting
companywide initiatives.

Board of Directors

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

Nomination andRemuneration Committee

President andRepresentative Director

Compliance Office

Management Division
President’s Office(Established October 2022)

ESG Promotion GroupS TeamCoordinate

E TeamBasic Policy on ESG
We strive to grow as a company needed by society by promoting ESG initiatives in strict compliancewith laws, regulations, and our pledges related to the environment, society, and self-governance.

Health & Culture
Fostering TeamG TeamRelated departments

Coordinate

ESG Management Philosophy

E

S

G

1. Creating new environmental value throughnext generation urban development andother initiatives aimed at realizing acarbon-neutral society by 2050

1. Contributing to regional revitalization andpromoting the creation of local communities
through urban development to create a new andbrighter future
2. Creating working environments in which
employees can demonstrate the best of theirabilities while engaging in rewarding work andpromoting diversity so that all human resources
can thrive
3. Contributing to solutions to social issues inareas such as medical care and welfare in
response to declining birthrates and an aging
population; and supporting safe andcomfortable living in local areas
4. Promoting business development to realize theSDGs globally through the development ofoverseas business

1. Enhancing timely, appropriate, and fairdisclosure of management information

2. Promoting real estate development andbusiness activities that account for theenvironment above all else
3. Creating environmental value and businessvalue through taking on the challenges of
new business domains based on
environmental themes

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Contributing to a sustainable society

2. Promoting a governance system to securestability, soundness, and transparency ofmanagement
3. Aiming to strengthen risk management inorder to respond to increasing risks due tothe expansion and diversity of businesses
4. Engaging in business activities based on arespect for the human rights of all inaccordance with the Corporate Ethics
Charter

15

ESG Initiatives ③ Initiatives to dateE

Environment⚫ Developing ZEH condominiums
Le JADE Okurayama(Won FY2021 Good Design Award)
Le JADE Yao Sakuragaoka
Le JADE Honkawagoe Koedo Terrace(scheduled for delivery in December 2023)

S

G

Society⚫ Promoting health management led by Health & Culture
Fostering Team⚫ Promotion of diverse human resources, including hiring ofpeople with disabilities⚫ Training of people to support those with cognitive disabilities(e.g., tonarie Seiwadai)

Governance⚫ Diversity on the Board of Directors→ We plan to appoint one new outside
director and one new director serving on
the Audit and Supervisory Committee (atthe regular general meeting ofshareholders in March 2023).
⚫ Establishment of nomination andremuneration advisory committee
Nomination and Remuneration
Committee
President andRepresentative
Director

Drafting Board of
Directors resolutions on
appointment anddismissal

Directors and Audit and Supervisory
Committee members
OutsideIndependent
director

Le JADE Okurayama

Le JADE Yao Sakuragaoka⚫ Disclosure based on the Task Force on Climaterelated Financial Disclosures (TCFD) framework⚫ Joint research with the Kozo Takase’s lab teamof the Tokyo University of Science⚫ Developing Techno Farm Fukuroi, a fully
automated plant factory

Artist’s conceptionof the completed
Techno Farm
Fukuroi⚫ Support for placement of workers from overseas(ES-CON Global Works)⚫ Donation to WT1 cancer vaccine (a cancer immunotherapy)(2019 and 2021)⚫ Donating to establish a cancer immunology session at
Osaka University⚫ Support for iPS cell research, etc. (2020, 2021)⚫ Investment in Ryukyu Football Club, which operates the FC
Ryukyu professional soccer teamAppointment and dismissal
draft resolutions

Executive officers

Independent
director

Formulating draft
resolutions

Executive compensation system, remunerationlevels, evaluation system⚫ Establishment of the Compliance Office
Corporate governance structure
General meeting of shareholders
Appointment⚫ Earned DBJ Green Building certification(Five properties owned by EJR)Team logo
Team emblem⚫ CASBEE real estate assessment earned (tonarie
Fujimino)⚫ Support for the city of Kitahiroshima, Hokkaido, through⚫ Eco Action 21 certification earned
the corporate hometown tax program (March 2022)⚫ Le JADE Senri Aoyamadai wins Osaka eco-friendly
construction award in the residential section
Photo:
Mayor Masami Ueno of the city ofKitahiroshima, Hokkaido (right)

Nomination
andRemuneration
Committee

Deliberation
Decisions

Eight full-time directors(including five outside
directors)

Representative: Takatoshi Ito,
President & Representative Director,
ES-CON JAPAN Ltd. (left)

Auditing

ReportingAppointment

Accounting
AuditorInternal Audit Office

Presidential
recommendations

Executive
committee

ReportingThree directors who also serve
as Audit and Supervisory
Committee members(All are outside directors.)

Audit and Supervisory
Committee office

President andRepresentative
Director
ReportingAppointment

Audit and Supervisory
Committee

Board of Directors
Advising

Executive directors

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Draft resolutions on individual remuneration of
directors other than those who are Audit andSupervisory Committee members

Instruction

Reporting

Risk Management
Committee

ReportingInstruction

Each section, Group company

16

Progress on Fourth Medium-Term Management
Plan (announced February 2021)- IDEAL to REAL 2023 (FY2021-2023)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

17Basic Policy

Fourth medium-term management plan (Three years from term
ended December 2021 through term ending December 2023)

Basic policy of medium/long-term management strategy① Establishing business foundations able to withstand unexpected changes in economic
conditions
Establishing business and financial standings that would be sound and enable us to maintain our fundraising abilities under any economic conditions.

② Simultaneously changing the revenue structure and expanding business domains
Transforming the revenue structure from one based on flows to one based on stock by strengthening
the real estate leasing business while at the same time realizing business diversification andexpanding business territories.

Transandformation
Final fiscal year of thecurrent medium-term
management plan

2023
2022
2021

Rapid
ProgressStageof further rapid progress
through realizing transformationStageof setting newrecord profitsStage

of structural reforms
to balance sheet and revenues➢ Proactive investment in long-term revenue-generating realestate and improving the BS structure➢ Transforming the focus of management from flows to stock➢ Demonstrating synergies in the Chubu Electric Power Group➢ Achieving net sales of 110 billion yen and operating incomeof 16 billion yen (in the final fiscal year of the medium-term
management plan)
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

18Ten-year Trends in Financial Results➢ We are targeting sustainable growth through maximining corporate value and further
increasing returns to shareholders, in addition to establishing robust businessfoundations capable of withstanding any economic conditions.

120,000

100,000

Period of fourth medium-term management plan
IDEAL to REAL 2023

Further rapid progress
35000
through transformation

Sales
OperatingprofitNew recordhigh profits(Unit: Million yen)

99,43130000

BS structure/profit
structure reforms

Period of second mediumterm management plan
IDEAL to REAL 201980,000110,000

25000

79,01777,308

72,10620000

60,00054,325

15,49215000

Period of first medium-term
management plan
Make The One for 2016

44,724

12,912
11,56140,00012,202
10,38134,347

10000

27,70520,000

7,042

18,842

4,012

Became asubsidiary of
Chubu
Electric Power

4,680

2,815
Listing on TSEFirst Section
0

Term ended
December 2014
(Actual results)

Term ended
December 2015
(Actual results)

16,200Term ended
December 2016
(Actual results)

Term ended
December 2017
(Actual results)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Term ended
December 2018
(Actual results)

Term ended
December 2019
(Actual results)

Term ended
December 2020
(Actual results)

Term ended
December 2021
(Actual results)

5000

Listing on TSE
Prime Market
Term ended
December 2022
(Actual results)

Term ending
December 2023
(Initial plan)

019

Planned Financial Results➢ Making the Picasso Group a subsidiary and other efforts in the first fiscal year (ended December 2021) helped strengthen the real estate leasing
business and secure stable revenues. Additionally, the revenue structure was transformed.
➢ In the term ended December 2022, net profit in the current period was lower than planned despite the growth in sales and profits compared to theprevious term. Contributing factors included steady progress in the Real estate sales business.
➢ In the final fiscal year of the medium-term management plan (ending December 2023), we will work to achieve our highest goals: 110 billion yen insales and 16.2 billion yen in operating profit.
➢ In 2024 and beyond, we will enhance our organizational abilities to contribute to sustained growth.
(Unit: Million yen)
Term ended December
2021(27th term)

Term ending December 2022
(28th term)

Planned financial results
Actual results

Initial plan (full year)(announced
January 2022)

Actual results

Term ending December 2023
(29th term)

vs. initial plan

Percentage

Initial plan (full year)

Initial plan
{Q2)

79,01799,431

100,000

-569

-0.6%

46,000110,000

70,33486,53187,300

-769

-0.9%

-

94,80045,05058,53259,300

-768

-1.3%

-

61,900

1,020

1,185

1,200

-15

-1.3%

-

1,164

25,28327,99928,000

-1

0.0%

-

32,9008,090

11,824

11,600

224

1.9%

-

14,200

592

1,074

1,100

-26

-2.4%

-

1,000

Operating profit

10,381

15,492

14,000

1,492

10.7%

6,000

16,200Ordinary income

9,099

14,012

12,200

1,812

14.9%

5,200

14,200

Profit attributable to owners ofparent

5,961

7,250

8,300

-1,050-12.7%

3,400

9,400

Sales

Real estate sales businessCondominium sales

Condominium units sold

Other sales

Real estate leasing business
Real estate planning agency andconsulting business

BS and profit
structural reforms

Dividends per share

38 yenCopyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

New record high profits

38 yen38 yen or more

Rapid progress-

Policy of gradually increasing dividends to continue--

38 yen20

Management Targets➢ In the first fiscal year of the medium-term management plan (ended December 2021), as described above, the Picasso Group becamea subsidiary, enabling a transformation in revenue structure that put investment plans ahead of schedule.
➢ The share of profits from leasing in FY2022 reached 21.5% (4.5 points lower than initially planned), thanks to strong progress in theReal estate sales business. 1
This transformation of the profit structure will continue in FY2023.
Term ended December 2020
(26th term)

Term ended December 2021
(27th term)

Actual results

Actual results

Term ended December 2022
(28th term)
Actual results

Share of profits from leasing *1

14.2%

21.2%

Return on equity (ROE)

21.2%

Return on invested capital (ROIC)

Term ending December 2023
(29th term)

Initial plan

Planned(announced March 2022)

vs. initial plan

21.5%

26.0%

-4.5%

30.0%

11.8%

11.3%

13.0%

-1.7%

13.0%

6.6%

3.2%

4.6%

4.0%

0.6%

4.0%

Equity ratio

25.8%

24.8%

25.0%

23.0%

2.0%

21.0%

Share of long-term earnings from realestate *2

9.5%

20.6%

19.5%

21.0%

-1.5%

23.0%

38,627 million yen

62,628 million yen

64,144 million yen

67,300 million yen-3,156 million yen

72,000 million yen

Net assets

1*1 Share of profits from leasing: Leasing segment profits/segment total profits (excluding adjustments)*2 Share of long-term earnings from real estate: Real estate generating leasing revenues recorded as noncurrent assets/net assets

80,000Trends in net assets

75,00072,00070,00065,00020.4 billion yen in funding raised
through a capital increase throughthird-party allocation of shares
April 2021
Became a consolidated subsidiary of
Chubu Electric Power(Unit: Million yen)

62,62864,14460,00055,00050,00045,00040,00038,62735,00030,000Term ended
December 2020
(Actual results)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Term ended
December 2021
(Actual results)

Term ended
December 2022
(Actual results)

Term ending
December 2023
(Planned)(announced March 2022)

21

Investment Plans➢ Gross investment during three-year period of the medium-term management plan: 220,902 million yen

1➢ Cumulative investments in 2021-2022 proceeded largely according to plan, thanks to making the Picasso Group a subsidiary and other factor. 2➢ We plan 88,000 million yen in investment in 2023, the final fiscal year of the medium-term management plan. 3(Unit: Million yen)Three-year cumulative
projections(① + ②)2021-2022 cumulative

Investment Plans

2021
ActualGross investment

2022

2023

ActualPercentage

Initial plan (②)(announced January 2023)
88,000

Actual (①)

95,99036,911

76,79910,808

5,686

Plannedvs. plan

132,902125,000

7,902

6.3%

87,60770,00017,607

25.2%

3,668

9,355

15,000-5,645-37.6%

10,00019,35533,7985,640

39,43835,000

4,438

12.7%

33,70073,13837,3141,500

38,81420,00018,81494.1%

22,00060,81419,191

26,10345,29455,000-9,706-17.6%

22,30067,594

Amount recovered

4,833

6,503

11,336

11,30036

0.3%

18,70030,036

Net investment amount

91,15730,408

121,565

113,700

7,865

6.9%

69,300190,865

Investment in revenuegenerating real estate
Investment in development ofrevenue-generating real estate
Investment in medium-term
revenue-generating real estate*
Investment in long-term revenuegenerating real estate

Investment in other development

2

3

220,9021

65,700

153,307*Rental revenue-generating real estate acquired w hile leased and intended for sale after increasing its value(Unit: Million yen)

■ Trends in asset structure

Total assets: 350,000

Other

70,000Long-term revenue-generating real estate

Total assets: 263,729

Total assets: 252,771

Inventory assets

68,521

69,730Long-term revenuegenerating real estate
as a share of total
assetsTotal assets: 149,423

20.6%

52,081

19.5%

23.0%
80,00051,43546,7099.5%

200,000

14,136130,960

143,773

Term ended December 2021
(Actual results)

Term ended December 2022
(Actual results)

88,578Term ended December 2020
(Actual results)

Term ending December 2023
(Planned)(announced March 2022)
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Long-term revenue-generating real estate:
Approx. 5.6-fold growth from 2020 to 2023

22

Trends in the Real Estate Sales Business➢ <Condominium sales>•••

Thanks to steady progress in sales, approximately 70% of the planned sales figure of 61,900 million yen for 2023 (up 3,368 million yen compared to the previous term) has
been achieved on a contractual basis (as of February 6).
We’re currently making progress on carefully selected purchases of project sites while carefully evaluating the status of the business environment, including recent
increases in building material prices, aiming for sales in 2025 and later. (We have already purchased the project sites supplied/to be supplied by and in 2024.)
Business development will proceed in the five major urban areas across Japan (in Kanto, Kansai, Chubu, Hokkaido, and Kyushu).

➢ <Other sales>•

We will aim to achieve stable growth based on multifaceted development of properties, including detached houses (ES-CON HOME), offices, logistics facilities, and rental
residences.
(Units supplied)
Stable supply of approx. 1,200 units(Sales)100,000(Unit: units)(Unit: Million yen)
Other sales

1,185 units

Condominium sales

86,531 (actual)

1,164 units 94,800 (planned)(planned)

1,200

Condominium units sold70,334 (actual)

80,000

Other sales

1,020 units

71,485 (actual)

32,9001,000

27,999800

60,00025,28340,807652 units

600

40,00058,532

Condominium
sales

61,900400

45,05020,000200

30,67700Term ended December 2020
(Actual results)

Term ended December 2021
(Actual results)

Q2 of term ended December 2022
(Actual results)

Term ending December 2023
(Initial plan)

Hokkaido

Chubu

Shares of
condominium
sales by area

9%

KansaiKyushu

15%

6%

43%

Businessdevelopment in
the five majorurban areas
Kanto

Chubu

33%

Kansai48%

57%

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

14%
4%
6%

37%

85%

Kanto

43%

23

Trends in the Real Estate Leasing Business(Toward a transition in the profit structure)
Trends in leasing segment profits and lease revenues as a share of profits(Lease revenues as a share of profits: leasing segment profits/total segment profits[excluding adjustments])➢ The share of profits from leasing in FY2022 reached 21.5%. Profits in the Real estate sales business were higher than planned.
Plans (announced March 2022) call for a 30% share in FY2023 as a transition in the profit structure continues.
24,00023,952
23,90423,85623,80823,76023,712
23,664
23,61623,56823,52023,472
23,42423,37623,32823,28023,232
23,184
23,13623,08823,04022,992
22,94422,896
22,84822,801
22,75322,70522,65722,60922,561
22,513
22,46522,41722,36922,321
22,27322,22522,177
22,12922,081
22,033
21,98521,937
21,88921,841
21,793
21,745
21,697
21,64921,601
21,55321,505
21,457
21,40921,361
21,313
21,26521,217
21,16921,121
21,07321,025
20,977
20,92920,881
20,833
20,785
20,737
20,68920,641
20,593
20,545
20,497
20,44920,402
20,35420,306
20,25820,21020,162
20,11420,06620,01819,97019,922
19,874
19,826
19,77819,73019,682
19,634
19,586
19,53819,49019,442
19,394
19,346
19,29819,25019,202
19,154
19,106
19,05819,01018,962
18,914
18,866
18,81818,77018,722
18,674
18,626
18,57818,53018,482
18,434
18,386
18,33818,29018,242
18,194
18,14618,09818,05018,003
17,955
17,907
17,85917,811
17,763
17,715
17,667
17,61917,571
17,523
17,475
17,427
17,37917,331
17,283
17,235
17,187
17,13917,091
17,043
16,995
16,947
16,89916,851
16,803
16,755
16,707
16,65916,611
16,563
16,515
16,467
16,41916,371
16,323
16,275
16,227
16,17916,131
16,083
16,035
15,987
15,93915,891
15,843
15,795
15,747
15,69915,651
15,604
15,556
15,50815,46015,412
15,364
15,316
15,26815,22015,172
15,124
15,07615,02814,98014,932
14,884
14,836
14,78814,74014,692
14,644
14,596
14,54814,50014,452
14,404
14,356
14,30814,26014,212
14,164
14,116
14,06814,02013,972
13,924
13,876
13,82813,78013,732
13,684
13,636
13,58813,54013,492
13,444
13,396
13,34813,30013,252
13,205
13,157
13,10913,061
13,013
12,965
12,917
12,86912,821
12,773
12,725
12,677
12,62912,581
12,533
12,485
12,437
12,38912,341
12,293
12,245
12,197
12,14912,101
12,053
12,005
11,957
11,90911,861
11,813
11,765
11,717
11,669
11,621
11,573
11,525
11,477
11,42911,381
11,333
11,285
11,237
11,189
11,141
11,093
11,045
10,997
10,94910,901
10,853
10,806
10,758
10,710
10,662
10,614
10,566
10,518
10,47010,422
10,374
10,326
10,278
10,230
10,182
10,134
10,086
10,038
9,990
9,942
9,894
9,846
9,798
9,750
9,702
9,654
9,606
9,558
9,510
9,462
9,414
9,366
9,318
9,270
9,222
9,174
9,126
9,078
9,030
8,982
8,934
8,886
8,838
8,790
8,742
8,694
8,646
8,598
8,550
8,502
8,454
8,407
8,359
8,311
8,263
8,215
8,167
8,119
8,071
8,023
7,975
7,927
7,879
7,831
7,783
7,735
7,687
7,639
7,591
7,543
7,495
7,447
7,399
7,351
7,303
7,255
7,207
7,159
7,111
7,063
7,015
6,967
6,919
6,871
6,823
6,775
6,727
6,679
6,631
6,583
6,535
6,487
6,439
6,391
6,343
6,295
6,247
6,199
6,151
6,103
6,055
6,008
5,960
5,912
5,864
5,816
5,768
5,720
5,672
5,624
5,576
5,528
5,480
5,432
5,384
5,336
5,288
5,240
5,192
5,144
5,096
5,048
5,000
4,952
4,904
4,856
4,808
4,760
4,712
4,664
4,616
4,568
4,520
4,472
4,424
4,376
4,328
4,280
4,232
4,184
4,136
4,088
4,040
3,992
3,944
3,896
3,848
3,800
3,752
3,704
3,656
3,609
3,561
3,513
3,465
3,417
3,369
3,321
3,273
3,225
3,177
3,129
3,081
3,033
2,985
2,937
2,889
2,841
2,793
2,745
2,697
2,649
2,601
2,553
2,505
2,457
2,409
2,361
2,313
2,265
2,217
2,169
2,121
2,073
2,025
1,977
1,929
1,881
1,833
1,785
1,737
1,689
1,641
1,593
1,545
1,497
1,449
1,401
1,353
1,305
1,257
1,210
1,162
1,114
1,066
1,018
970
922
874
826
778
730
682
634
586
538
490
442
394
346
298
250
202
154
106
58
10

Real estate sales business
Real estate leasing business(Unit: Million yen)

Lease revenues as a share of profits

Total segment profits ▶
Real estate▶
planning agency
and consulting
business

Real estate▶
sales business

Real estate▶
leasing business

40.0%

21,951

Real estate planning agency and consulting business

16,791

15,895*30%◀ Share of profits
from leasing
30.0%

17,006
13,03921.5%

14,257
20.0%

21.2%
14.2%
4,716

3,372

2,381

10.0%

Term ended December 2020
(Actual results)

Term ended December 2021
(Actual results)

Term ended December 2022
(Actual results)* The Real estate planning agency and consulting
business recorded a segment loss of 516 million yen
in in the term ended December 2021.

Term ending December 2023
(Planned)(announced March 2022)

General and administrative expense coverage percentage of leasing segment profits(Coverage percentage: leasing segment profits/general andadministrative expenses [excluding amortization of goodwill])➢ Leasing segment profits covered 73% of general and administrative expenses in the term ended December 2022.
15,00014,200➢ This figure is expected
to reach 90% in FY2023.
100%
13,000
Leasing sales(Unit: Million yen)90%
11,824

Lease revenues as a share of profits
11,000General and administrative expenses (excluding amortization of goodwill)

80%

73%

Coverage percentage
9,000

8,090

61%
60%

51%

7,000

6,459
5,514

5,527

Leasing sales

4,588

5,000

4,716

3,000

2,381
20%

Lease revenues
as a share of
profits

1,000-1,00040%
General andadministrative
expenses

3,372

Term ended December 2020
(Actual results)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Term ended December 2021
(Actual results)

Term ended December 2022
(Actual results)

Term ending December 2023
(Planned)

0%24

ES-CON JAPAN Group’s Business Development➢ As a developer focused on developing lifeways rooted in local communities, we engage in a wide range of businesses, all withan eye toward future generations.
We’re committed to helping to build a sustainable society by fulfilling our corporate social responsibilities.
Hokkaido[Area development status]
Proactive business development across Japan,
primarily in the five major urban areas

ES CON FIELD HOKKAIDO
Condominiums (twobuildings)
Commercial

HotelsUrban development aroundthe new ballpark

Hokkaido OfficeKansai
Kanto

Condominiums (175 buildings)

Commercial

Logistics

Leasing

tonarie Yamato-Takada, Toga,
Mikita, etc.

Offices

HotelsCondominiums (59buildings)

Detached
homes

Offices

Leasing
Logistics
tonarie Tsukuba Square, Utsunomiya, Fujimino, etc.

Commercial

Urban development

Urban development(Suita, Osaka Prefecture andelsewhere)(Tsukuba, Ibaraki Prefecture)

HotelsSales of columbarium permanent
use rights (Ryomon)

Land readjustment

KyushuCondominiums(one building)Land readjustment

Urban development

Logistics(Kasuga, Fukuoka
Prefecture / Omura,
Nagasaki Prefecture)

Commercial

Tokyo Head OfficeHotelsKyushu Office

Nagoya officeOsaka Head
OfficeChubu
Condominiums (eightbuildings)
Commercial Logistics

Land readjustment* Numbers of condominium units
shown are for properties alreadysupplied and currently on sale(including those underconstruction) (as of February 6,2023).
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Plant factory
development
Urban development
Project on the site of
20th Asian Games
Aichi-Nagoya 2026
Athletes’ Village[International business development]• Business participation and investments to increase the value of a complex in Waikiki, Hawaii• Participation in detached houses development project in Thailand
In addition, we will continue to steadily build on our business expertise through participation in various
other projects, including a joint condominium development project in California.

25

OST Residence Karuizawa

Appendix.
Supplementary Materials for Financial Results

Condominium Sales Business FY2023 progress, lineup
Planned number of units slated fordelivery to be delivered in 2023

Sales progress rate
(as of February 6)

1,164 units

Approx. 70%(contractual basis) 2023 property lineup 
Q1 (January-March)

Q2 (April-June)

Name

Le JADE Hokkaido Ballpark(Kitahiroshima, Hokkaido)

Park Le JADE Shirokane
Residence(Minato-ku, Tokyo) Sold out

Access5-minute drive, 22-minute-walkfrom Kitahiroshima Station on the
JR Chitose Line, etc.

6-minute-walk from Shirokanedai
Station on the Tokyo Metro
Namboku Line and the Toei Mita
Line, etc.

Units

118

Occupancy

March

Sold out

Le JADE Kamishinjo(Higashiyodogawa-ku, Osaka)

Le JADE Shitennoji
Yuhigaoka(Tennoji-ku, Osaka)

Le JADE Takatsuki
Minami Matsubara Bright(Takatsuki, Osaka)

8-minute-walk from Kamishinjo Stationon the Hankyu Kyoto Line, etc.

1-minute-walk from Shitennoji-mae
Yuhigaoka Station on the Osaka
Metro Tanimachi Line, etc.

6-minute-walk from Takatsuki-shi
Station on the Hankyu Kyoto Line,
etc.

55

60

52

81

March

April

May

May

Sold out

Exteriorview

Q3 (July-September)

Q2 (April-June)

Le JADE Fushimi
Momoyama(Fushimi-ku, Kyoto)

Le JADE Sapporo Motomachi(Higashi-ku, Sapporo)

Access12-minute-walk from
Tambabashi Station on the
Keihan Main Line, etc.

4-minute-walk from Motomachi
Station on the Sapporo Municipal
Subway Toho Line, etc.

6-minute-walk from Kanayama Stationon the Nagoya Municipal Subway
Meijo Line and Meiko Line, etc.

4-minute-walk from Jimbocho
Station on the Tokyo Metro
Hanzomon Line, Toei Mita Line,
Toei Shinjuku Line, etc.

1-minute-walk from Midoribashi
Station on the Osaka Metro Chuo
Line and Imazatosuji Line, etc.

Units

73

39

43

50

48

Occupancy

May

June

September

September

September

Name

Le JADE Kanayama(Nagoya, Aichi)

Sold out

Le JADE Cross Chiyoda
Sold out
Jimbocho(Chiyoda-ku, Tokyo)

Le JADE Midoribashi Ekimae(Higashinari-ku, Osaka)
Sold out

Exteriorview

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

2Condominium Sales Business FY2023 lineup (second half)
Q3 (July-September)

Q4 (October-December)

Name

Le JADE Matsudo Station Front(Matsudo, Chiba)

Le JIAS Ohashi(Fukuoka, Fukuoka)

Le JADE City Hashimoto I(Sagamihara, Kanagawa)

Le JADE City Hashimoto II(Sagamihara, Kanagawa)Access2-minute-walk from Matsudo Station on
the JR Joban Line, etc.

10-minute-walk from Nishitetsu Ohashi
Station, etc.

4-minute-walk from Hashimoto Station on
the Keio Sagamihara Line, etc.

4-minute-walk from Hashimoto Station on
the Keio Sagamihara Line, etc.

Units

44

140

69

87

Occupancy

September

October

December

December

Le JADE Honkawagoe Koedo Terrace(Kawagoe, Saitama)

Le JADE Itabashi Honcho(Itabashi-ku, Tokyo)

Le JADE Chigasaki Higashikaigan
Minami (tentative name)(Chigasaki, Kanagawa)9-minute-walk from Nagai Station on the
Osaka Metro Midosuji Line, etc.

12-minute-walk from the East Exit of HonKawagoe Station on the Seibu Shinjuku
Line, etc.

5-minute-walk from Itabashihoncho
Station on the Toei Mita Line, etc.

15-minute-walk from Chigasaki Station on
the JR Tokaido Main Line, Ueno Tokyo
Line, Shonan Shinjuku Line, Sagami Line,
etc.

Units

52

102

55

31

Occupancy

December

December

December

December

Exteriorview

Q4 (October-December)

Name

Le JADE Nagai Park Avenue(Sumiyoshi-ku, Osaka)
Sold out

AccessExteriorview

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

3Condominium Sales Business Area development status
Area/FY

Kinki region

Units supplied

2021
652 units(actualresults)

2022
1,185 units(planned)2023
1,164 units(planned)

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Metropolitan area

Hokkaido
regionChubu region

Kyushuregion• GLJ Shirakabe Getsuronotei• OST Residence Karuizawa

LJ Nishiakashi
LJ City Hyotanyama
LJ Yamato-Takada Ekimae
LJ Mukonoso Honmachi
LJ Suma Myohoji Ekimae
LJ Ibaraki Higashichujo
LJ Senri Aoyamadai
LJ Senri Furuedai
LJ Nagai Koen DoriLJ Tennoji Katsuyama
LJ Neyagawa Koen

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LJ Uehonmachi
LJ Kyoto Horikawa
LJ Hirano
LJ Takatsuki Nishimakami
LJ Takatsuki Bessho
LJ Takatsuki
Minamimatsubara The Front• LJ Yao Sakuragaoka• LJ Kyoto Shijo Omiya• LJ Kyoto Higashinotoin

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LJ Times Core Kawagoe
LJ Bio Makuharihongo
LJ Urawa
LJ Tsukuba Station Front
LJ Kawagoe the Residence

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• LJ Takatsuki
Minamimatsubara Bright• LJ Fushimi Momoyama• LJ Midoribashi Ekimae• LJ Kamishinjo• LJ Shitennoji Yuhigaoka• LJ Nagai Park Avenue

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Park LJ Shirokane Residence
LJ Cross Chiyoda Jimbocho
LJ Honkawagoe Koedo Terrace
LJ Itabashi Honcho
LJ Matsudo Station Front
Le JADE City Hashimoto I, II
Le JADE Chigasaki
Higashikaigan Minami (tentative
name)• LJ Kanayama

LJ Gifu Kogane Koen
GLJ Shirakabe Rinzennotei
LJ Kakegawa Ekimae
LJ Gifu
Grand Crea Ichinomiya• LJ Hokkaido
Ballpark• LJ Sapporo
Motomachi• Le JIAS
Ohashi

Building a supply foundation in five major urban areas*LJ: Le JADE; GLJ: Grand Le JADE
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

4Commercial Facility Development Projects:
Developing the tonarie brand➢ We develop and manage neighborhood shopping centers (NSCs).
We are currently developing the tonarie brand of commercial facilities (managed by Group company ES-CON Property).
Brand Concept:
Close to the community in order to develop together with the community. Always a good neighbor.
➢ Ex.: tonarie Yamato-Takada Project (combination commercial-residential
project in station area)
Oak Town Yamato Takada

Yamato-Takada
StationLe JADE Yamato-Takada Ekimae

tonarie series (now in use: nine facilities in total)
Opened inNovember 2021

tonarie
Yamato-Takada

An aging general merchandise store (GMS) built
more than 40 years ago during the high growth
periodOpened in 2018 with 68 tenants as a facility with roots in the local
community scaled to meet the needs of the area
tonarie Minamisenri Annex (Suita-shi, Osaka)

Le JADE Tsukuba Station Front

tonarie Fujimino (Fujimino-shi, Saitama)

Opened in February
2023 after remodeling

tonarie Tsukuba Squaretonarie Toga Mikita (Sakai-shi, Osaka)

tonarie Tsukuba Square* (Tsukuba-shi, Ibaraki)*tonarie CREO/Q’t/MOG

Good Design Award 2019
tonarie Yamato-Takada (Yamato-Takada-shi, Nara)

tonarie Utsunomiya (Utsunomiya-shi, Tochigi)

Scheduled toopen March 2023

tonarie Seiwadai (Kawanishi-shi, Hyogo)

tonarie Minamisenri (Suita-shi, Osaka)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

tonarie Yokkaichi (Yokkaichi-shi, Mie)tonarie Hoshida (Katano-shi, Osaka)

5

Logistics Development Business➢ We are developing the LOGITRES brand of logistics facilities.
① LOGITRES Tojo
Location:

Minamiyama, Kato-shi, Hyogo

Access:Hyogo Tojo Interchange on
Chugoku Expressway

Completed:⑤ LOGITRES Sano

October 2019

② LOGITRES Tojo II
Location:

Minamiyama, Kato-shi, Hyogo

Access:Hyogo Tojo Interchange on
Chugoku Expressway

Location:

238-1 Tajimacho, Sano-shi, Tochigi

Access:Sano-Fujioka Interchange on Tohoku
Expressway

Slated2023
completion date:

Slated2023
completion date:

⑤

④
①②

③
⑥

②
③ LOGITRES Chiba Research Park
② LOGITRES Koga Gemboen
Location:

Gemboen, Koga-shi, Fukuoka

Access:Koga Interchange on Kyushu Expressway④ Gifu Hashima-shi Logistics Facility
Development Project
Location:

Hirakata, Fukujucho, Hashima-shi, Gifu
(inside Hashima-shi Hirakata Land Readjustment
Project II)

Access:Gifu Hashima Station, JR Tokaido Shinkansen

SlatedMarch 2023
completion date:
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

Location:

Kamiizumi-cho, Wakaba-ku, Chiba-shi, Chiba

Access:Sakura Interchange on Higashi-Kanto
Expressway

SlatedMay 2022
completion date:⑥ LOGITRES Narashino Shibazono
Location:

Shibazono, Narashino-shi, Chiba

Access:

Makuhari Interchange on Keiyo Expressway
Wangan Narashino Interchange on Higashi-Kanto
Expressway

Slated2024
completion date:6

Large-scale Urban Development Business➢ We are focusing on large-scale urban development utilizing our diverse development capabilities.

Fukuoka Kasuga Project

Hokkaido Kitahiroshima Station “West Exit Revitalization Project”(Kasuga-shi, Fukuoka)(Kitahiroshima-shi, Hokkaido)
20th Asian Games Aichi-Nagoya 2026 Athletes’ Village site
post-Games project

Suita-shi Fujishirodai 5-chome Project

Suita-shi
Fujishirodai
5-chome Project

Joint project with
Chuden Real Estate
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved(Suita-shi, Osaka)

Joint project with Chubu
Electric Power Group(Nagoya-shi, Aichi)

7

Land Readjustment Business➢ Developing logistics facilities through the land readjustment business in Koga, Fukuoka Prefecture

Logistics facility development: Zone 5

古賀市玄望園土地区画整理事業（福岡県古賀市）➢ Participating as the agent company in the land readjustment business in Zone C of the east district of Saito in Ibaraki, Osaka

Artist's conception of the site

We are also currently at work on other 5-10-year land readjustment projects to develop logistics, commercial, and other sites.
(Sakai-shi Takakuradai Land Readjustment Project, Kawachinagano-shi Uehara-Tako Land Readjustment Project, etc.)
Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

8

Business Development in Chubu Area
(demonstrating synergies with the Chubu Electric Power Group)➢ In April 2021, we became a consolidated subsidiary of Chubu Electric Power through third-party allotment by raising fund of approximately
20.4 billion yen.

August 2018: Agreement concluded on capital alliance
Made an equity-method affiliate
Percentage of voting rights held: 33.3%

April 2021: Capital increase throughthird-party allocation of shares
Made a consolidated subsidiary
Percentage of voting rights held: 51.5%<Business development centered on the Chubu area>➢ Nagano Prefecture➢ Aichi Prefecture[Condominium] OST Residence Karuizawa[Condominium] Karuizawa Nagakura project (tentative
name)

Joint venture with

[Condominium] Grand Le JADE Shirakabe Getsuronotei Chuden Real Estate
Joint venture with
[Condominium] Grand Le JADE Shirakabe Rinzennotei
Chuden Real Estate[Condominium] Grand Clare Ichinomiya
Joint venture with
Chuden Real Estate[Condominium] Le JADE Kanayama[Condominium] Le JADE Kanayama Grande[Condominium] Nagoya Nakamura-ku Chiharacho project
Acquired[Commercial] Nagoya Kita-ku Tsujimachi
FY2022(commercial land leasehold) project[Commercial] Aisai Plaza[Complex]
20th Asian Games Aichi-Nagoya2026 Athletes’ Village site
Joint venture with Chubu
Electric Power Grouppost-Games project➢ Shizuoka Prefecture
Joint venture with
[Condominium] Le JADE Kakegawa
Chuden Real Estate
Ekimae[Condominium] Fukuroi Ekimae project Joint investment with
[Plant factory] Techno Farm Fukuroi Chubu Electric Power[Land development] Kakegawa Kamisaigo development
project➢ Gifu Prefecture[Condominium] Le JADE Gifu Kogane Koen
[Condominium] Le JADE Gifu
[Logistics]
Hajima logistics facility development
project

Grand Le JADE Shirakabe
Getsuronotei➢ Mie Prefecture[Commercial]tonarie Yokkaichi➢ Osaka Prefecture[Complex]

Suita Fujishirodai
5-chome project

Joint venture with
Chuden Real Estate

Artist’s conception of the completed Techno Farm
Fukuroi

Artist’s conception of the completed project on the site of AsianGames Aichi-Nagoya 2026 Athletes’ Village after the games

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

OST Residence Karuizawa* Artist’s conceptions are examples
and are subject to change.

9Progress of Capital and Business Partnership with Chubu Electric Power Co., Ltd.
➢ The capital and business partnership we concluded with Chubu Electric Group in August 2018 has steadily generated numerous synergies.
Having become a consolidated subsidiary of Chubu Electric Power in April 2021, we will strive to demonstrate additional synergies moving
forward.
Five joint projects are already underway with ChudenReal Estate.

Promoting joint
projects

Four projects in the Chubu area: Shirakabe, ShirakabeII,
Nishi-Ichinomiya, Kakegawa
One project in the Kinki area: Fujishirodai, Suita-shi

New capital and business
partnership agreement (concluded
February 24, 2021)① Enhancing joint efforts related to energy

Mutuallycomplementarybusiness areas

Nagoya Office opened in March 2019.

Business developed in both regions (Chubu and Kansai)

supply and facility construction② Joint research and joint implementation inbusinesses related to next-generation smart
houses, connected homes, and so forth

Making effective useof real estate ownedby the Chubu ElectricPower Group

Joint project begun with Chuden Real Estate on real estate
owned by Chuden Real Estate in Ichinomiya-shi, Aichi

Joint research andimplementation of nextgeneration smart houses,
connected homes, etc.

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

Prospective buyers
for our real estatedevelopment projects

Sale of properties owned by the Company to Chuden Real
Estate through warehousing method (In September 2019,support agreements were concluded with three companies:
Chuden Real Estate, EAM, and EJR.)

Exchange ofhuman
resources

Implementing exchange of human resources through secondment of Es-Con
employees to Chuden Real Estate and vice-versa
One Director appointed from Chubu Electric Power has been in office since
March 2019. Plans call for the appointment of one Es-Con Director serving as an
Audit and Supervisory Board member from the Chubu Electric Power Group in
March 2023.

Respect forautonomy

Continued business development utilizing the Company’s
characteristic speed③ Further enhancing the partnership with
Chuden Real Estate, a member of the
Chubu Electric Power Group

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved④ Enhancing partnerships related to theeffective utilization and development of
unused or underused land belonging to the
Chubu Electric Power Group⑤ Joint initiatives in businesses that constituteto society, including urban development

Start of partnerships with Chubu Electric① Establishment of TSUNAGU Community
Farm G.K.
② Chosen as candidate contractor to operate
the site of the 20th Asian Games AichiNagoya 2026 Athletes’ Village after the
Games

10

*1) Amounts are truncated and fractions rounded off.
*2) Utilization rates and years remaining on lease asof January 25, 2023
*3) Appraisals are the most recently acquired.

EJR Portfolio
Number ofproperties

Total acquisition
price

38 properties

69.6 billion yen 73.0 billion yen

Hokkaido 

Kanto Yamada Denki Tech Land
Sapporo Shiraishi

Asumigaoka Brand New
Malltonarie Yamato-Takada(50% equity)

Total appraised
value

Tsutaya Sakai Minami(leasehold)Utilization rate

Appraised NOI
yield

Amortized appraised
NOI yield

Years remaining
on lease

99.9%

4.9%

4.4%

10.1 years

Commercial leasehold included

31.1 billion yen

Leasehold ratio

44.8%

K’s Denki Oyumino(leasehold)Nishishirai Ekimae Plaza

tonarie Toga Mikita

Kusuri no Aoki Ikaruga(leasehold)Nitori Tsuchiura(leasehold)Nitori Imaichi (leasehold)Drug Yutaka Muko Kamiueno(leasehold)Chubu Kinki PareMarche Nishiharu

Trial Omi Yawata (leasehold)tonarie Seiwadai

Welcia Amagasaki Muko
Motomachi (leasehold)Max Valu Kikyogaoka
Higashi (leasehold)Cocokarafine Neyagawakoen(leasehold)

Chugoku 

ENEOS Ikawadani Service Station(leasehold)Geo Hikone Takamiye (leasehold)tonarie Minamisenri

LAMU Kitatsumori (leasehold)

Sanyo Marunaka Mitani(leasehold)Life Daisen (leasehold)

K’s Denki Nishikobe(leasehold)

K’s Denki Kurashiki(leasehold)

Kyushu Fuji Grand Natalie

Suroy Mall Nagamine

Fukuoka Kasuga Project (leasehold)

Copyright ©2023 ES-CONJAPAN Ltd., All Rights Reserved

11

Information
ESCON JAPAN Ltd.

Email: ir@escon.jp

Tokyo Head Office

Nagoya Office

20th Floor, The Okura Prestige Tower
2-10-4 Toranomon
Minato-ku, Tokyo

5th Floor, Hirokoji Sakae Building
4-1 Sakae 2-chome, Naka-ku
Nagoya, Aichi Prefecture+81-3-6230-9308+81-52-218-4820

Osaka Head Office
13th Floor, Meiji Yasuda Seimei Building
4-1-1 Fushimimachi
Chuo-ku, Osaka+81-6-6223-8055

Kyusyu Office
9th Floor, Yasuda Dai-7 Building
13-15 Kamikawabatacho
Hakata-ku, Fukuoka+81-92-283-153

Hokkaido Office
ES-CON JAPAN
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13th Floor, Nissay Sapporo Building
1-1 Kita-sanjo-nishi 4-chome
Chuo-ku, Sapporo, Hokkaido+81-11-211-1928
12

IDEAL to REAL