Pressance Corporation Co., Ltd.
(Ticker: 3254.T)
FY2017 1st Quarter, April-June, Earnings Highlights
August, 20160Summary of consolidated profits and losses■In the first quarter of the March, 2017, fiscal year, both sales and profits fell from a year earlier due
to a decline in the completion of family type condominiums that could be included in sales (The sales
are based on deliveries to customers). 1Q result comparing with estimated earnings of FY2017 is in-line
as above topic is already considered beforehand.
(¥ million)
FY2015 1Q(Ratio to sales)

FY 2016 1Q

FY 2017 1Q

YoY (%)FY2017 E

Rate of progresson 1Q to FY2017
(%)

Sales

23,30841,86133,535▲ 19.9%100,839

33.3%

COGS

15,396(100.0%)( 66.1%)Gross margin

7,911( 33.9%)

SG&A
expense

2,050

Operatingincome5,860

Ordinary
income5,824

Net income

3,748( 8.8%)( 25.1%)( 25.0%)( 16.1%)(100.0%)29,064( 69.4%)

12,797( 30.6%)2,543( 6.1%)

10,253( 24.5%)

10,220( 24.4%)

6,815( 16.3%)(100.0%)23,504(100.0%)▲ 19.1%( 70.1%)

10,031▲ 21.6%＋ 19.9%▲ 31.9%( 14.0%)12,15525.1%

15,46645.1%( 15.3%)▲ 32.0%( 20.7%)

4,707

36.3%

( 12.1%)( 20.8%)

6,951

27,622( 27.4%)( 9.1%)

6,981

32.1%

( 72.6%)( 29.9%)3,050

73,21715,08946.1%( 15.0%)▲ 30.9%10,327( 10.2%)

45.6%

111

Summary of consolidated assets and liabilities(¥ million)
FY2015(Ratio to sales)

FY2016(Ratio to sales)

FY2017 1Q(Ratio to sales)

94,070117,887

119.955(92.6%)（92.6%）(94.9%)(91.9%)

2,602

4,1738,402*1

68,85488,37681,086*2

Fixed assets

7,478

6,390

10,571(7.4%)（7.4%）(5.1%)

Total Assets

101,549

Current liabilities

28,647

Liquid assets
Of these, real estate for saleOf these, real estate in process
for sale（100.0%）(100.0%)Of these, short-term interest-bearing
liabilities

Fixed liabilities

Total liabilities

Total net liabilities andshareholders’ net assets*1 Real estate for sale 8,402 million yen*2 Real estate in process forsale 81,086 million yen

22,171

130,527(100.0%)18,736(17.8%)(14.4%)

1,835

5,408

6,014

28,26951,781

57,600(41.7%)(44.1%)

27,831

51,297

57,10456,91673,95376,337（56.0%）(56.0%)

Shareholders’net assets(100.0%)（28.2%）(28.2%)（27.8%）(27.8%)Of these, long-term interest-bearing
liabilities

124,277(8.1%)

44,632（44.0%）(44.0%)

101,549（100.0%）(100.0%)(59.5%)

50,324(40.5%)

124,277(100.0%)Land cost for condominium business 2,318 million yen …①
Other land cost 81 million yen *Construction cost 6,003 million yen

Land cost for condominium business 59,358 million yen …②
Other land cost 4,014 million yen *Construction cost 17,713 million yen(58.5%)

54,190(41.5%)

130,527(100.0%)Explanations on real estate cost ① and ②
are given in “Inventory Assets” on page 6* Cost related to land for pre-owned or
new houses for sale, others21

Major Sales Results in the Condominium Business

FY2015 1Q

No. of
units

YoY

481

82.6%

FY 2017 E

FY2017 1Q

FY2016 １Q

No. ofunits

Rate ofprogresson 1Q toFY2017 (%)

YoY

No. ofunits

81.6%

748 155.5% 12,086 159.0%

770 102.9% 13,342 110.4%

32,85940.6%

493 113.1% 14,381 105.6%

849 172.2% 26,067 181.3%

429

53.0%

50,07227.6%

40

135 337.5%

4,367 261.3%

11,64937.5%

94,581

33.3%(%)

Amount(¥ million)

YoY

AmountYoY

YoY

AmountYoY

AmountSingle-room
Condominiums

Family typecondominiums

Condominium
building sales

Total

1,014

32.5%

7,601

458

88.9% 22,440

36.3%

1,671 364.9%

50.5% 13,820

323 239.3%

92.8% 1,732 170.8% 39,825 177.5% 1,522

87.9% 31,530

79.2%3

FY2017 1Q, Outstanding Balance of Contracts (Outstanding orders), 1
FY2017 1Q, Outstanding balance of contracts (outstanding orders)
FY2017
Firm scheduled delivery
No.
Amountof units

Firm scheduled delivery
later than FY2018
No.
Amountof units

CategoryNo.
of units

Amount (¥ million)

Single-room
condominiums
Family typecondominiums
Condominium
building sales

594

10,162594

10,162

0

0

1,299

46,793782

25,660517

21,132806

10,259

562

7,292

244

2,967

Total

2,699

67,215

1,938

43,115761

24,099FY2017 1Q, Sales
Category

Single-room
condominiums
Family typecondominiums
Condominium
building sales
Total

FY2017
Firm scheduled delivery
No.
Amountof units

FY2017 1Q, Sales resultsNo.
of units

Amount770

13,342429＋

1Q result + Firm scheduled delivery
on FY 2017 (in progress)＝No.
of units

Amount1,364

23,504594

10,162

13,820782

25,6601,211

39,481

323

4,367

562

7,292

885

11,6591,522

31,5301,938

43,1153,460

74,64541

FY2017 1Q, Outstanding Balance of Contracts (Outstanding Orders), 2 1Q result plus firm scheduled delivery on FY 2017 got to ¥74,645 million.
 Rate of progress reached 78.9% based on estimated sales of FY 2017.

FY2017 1Q, Sales
1Q result + Firm scheduled delivery
on FY 2017 (in progress)

FY2017, Sales estimatedCategoryNo.
of units

Amount(¥ million)No.
of units

Rate of process inrelation to sales
estimated on
FY2017(%)

Single-room
condominiums

1,364

23,50432,85971.5%

Family typecondominiums

1,211

39,48150,072

78.8%

Condominium
building sales

885

11,65911,649100.1%

3,460

74,645

94,581

78.9%

Total51

Fy2017 1Q, Inventory Assets (Land Already Acquired)
FY2017 1Q, Inventory assets(land already acquired)

Commentary

CategoryNo.
of units

Amount(¥ million)

Single-room
condominiums

5,713

18,323

Land already acquired for use in more than 3 years through FY2019
based on the assumption that 1,600 to 1,700
units are delivered each quarter

Family typecondominiums

4,906

35,768Land already acquired for use in more 3 years through FY2019 basedon the assumption that 1,500 to 1,800 units are delivered each quarter

Condominium
building sales

2,685

7,584

400 units were delivered in the FY2016, and land for use 7 times that
total already acquired

Total

13,304

61,676* Total of land cost in ①＋② on page 2(Note) Settlements and delivery of all Land Inventory, which described as above, have been completed.
 We have another firm contract on land of 28 buildings in addition to above number, which will be divided to 2,800units; 1,300 units of Single-room, 900 units of Family type. Settlements and delivery process is on-going.
 Total amount of real estate and real estate in process for sale on 1Q FY2017 is ¥89,488 million. Then deducting
construction cost (¥23,716 million) and cost for real estate and other items* (¥4,095 million), and total amount ofinventory assets are calculated as ¥61,676 million.
*cost for real estate and other items come from distribution business of used houses and new detached houses.

661

Changes in Company-owned Condominiums
Number of company-owned condominiums under own property management(Unit)

Rental income(Rental income = Sales - Cost of sales)

1400

362

300

283

1000
532 units(8 buildings)

800
268 units(4 buildings)

600
229 units(3 buildings)

167

788 units(12 buildings)

250

650 units(10 buildings)

200
527 units(8 buildings)

145

400
350

319

1200

400

1,293 units(17 buildings)(¥ million)

150

89

100

200

50

0
12/3期
FY2012

13/3期
FY13

14/3期
FY14

15/3期
FY15

16/3期
FY16

16/6期
FY17 1Q

FY17/3
FY17 E(estimate)0(Note)Shift of accounting entry, from company-owned condominiums to real estate for sale, was practiced as twobuildings were sold on FY2016, which declined the ratio of units to rental income comparing with FY2015.

771

Latest Topics 1■

Brief summary of progress on major projects

1. Osaka area The first earthquake-resilient

condominium tower project“Pressance Legend Sakaisuji Honmachi Tower”(family)
・Earthquake-resilient skyscraper which has 30 stories and 337 units
・208 units had been sold as of the end of June, 2016 The second
marketing period is scheduled to begin in September, 2016

2.The biggest project in company history with 486 units *“Pressance Legend Lake Biwa” (family)
・One of the biggest projects on the shore of Lake Biwa,
all rooms with a lake view
・The first marketing period is scheduled to begin in August, 2016
・Queries by telephone and responses to questionnaires fromabout 2,000 people had been received even before the sales
began, expressing their interest. About 350 couples participatedin pre-marketing seminars designed to explain about the condominiums.
* Initial marketing plan for 497 units were changed to 486 units(down 11 units). Standard-type units on upper floors werechanged to grand premium-type units (more spacious, highergrade) due to reactions in pre-marketing questionnaires.

881

Latest Topics 2■

Advancing to “Hiroshima,” a new project area
We are advancing to “Hiroshima,” a new project area following the Kinki, Tokai, Chukyo,
metropolitan regions and Okinawa. We will press ahead with the single-room condominium・hotelbusiness in Hiroshima, turning the area into a new profit center.
Planned areas of projects
Existing Area,Kansai, Chubu,and Kantoregion

New Area,Hiroshima991

Latest Topics 3■

Progress in the hotel businessWe have added 3 hotels to the development pipe-line in addition to existing 5 projects in the hotelbusiness which was launched on FY2016.

Completion schedule【near JR Nanba Station, 72 rooms】【near JR Nanba Station, 80 rooms】【Hankyu Railway, near Omiya Station, 96 rooms】

March, 2018, fiscal year

Inari, Naniwa-ku, Osaka 1
Motomachi, Naniwa-ku, Osaka 1
Omiya-dori, Shimogyo-ku, Kyoto 1

March, 2019, fiscal year

Shikitsu-higashi, Naniwa-ku, Osaka 12019/3期【Subway Midosuji Line near Daikoku-cho Station, 252 rooms】
Hirano-machi, Chuo-ku, Osaka 2【Subway Sakaisuji Line near Kitahama Station, 126 rooms】
Minami-senba, Chuo-ku, Osaka *【Subway Midosuji Line, near Shinsaibashi Station, 162 rooms】
Nobori-cho, Naka-ku, Hiroshima *【Hiroshima Electric Railway near Ebisu-cho Station, 155 rooms】
Kamikawabata-machi, Hakata-ku, Fukuoka * 【Near JR Hakata Station, 194 rooms】*Management method undecided①
Sale to hotel
companies②
Owned by the company,management entrusted
to hotel managementcompanies③ 18.34
Owned andmanaged by
the company

25.80

10101

Pressance Corporation Co., Ltd.
(Note) Prospective numbers listed in the earnings outlook and other materials are based on information
available at the time the documents were released and in large part contain uncertain factors.
The actual results may be different depending on changes in business.

<For inquiries, contact>
Management headquarters
Pressance Corporation
TEL: 06-4793-1650 (main)
FAX: 06-4793-1651
E-mail: psc@pressance.co.jp

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