Summary of Accounts for First Quarter of Fiscal Year Ending March 2025
(Japanese GAAP) (Consolidated)
July 26, 2024
Listing exchange: Tokyo Stock Exchange
URL:
https://www.es-conjapan.co.jp/english/
President & Representative Director
Director
TEL: +81-3-6230-9303
No
No

Name of listed company: ES-CON JAPAN Ltd.
Code:
8892
Representative:(Name) Takatoshi Ito(Position)
Contact for inquiries:(Name) Mitsuhiko Matsuzawa (Position)
Scheduled date for start of dividend payment:
Supplementary explanatory materials created for accounts? Yes/No:
Accounts briefing meeting held?
Yes/No:(Amounts are rounded down to the nearest million yen)

1.

Consolidated results for first quarter of fiscal year ending March 2025 (from April 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)(% figures show the rate of increase (decrease) compared with the same period of the previous year)

Net sales

Operating income

million yen%
First quarter of－
19,098fiscal year ending Mar. 2025:
First quarter of－
28,541
fiscal year ended Mar. 2024:(Note) Comprehensive income
First quarter of fiscal year ending Mar. 2025:
1,784 million yen [- %]Ordinary income

Profit attributable toowners of parent
million yen%

million yen%

million yen

%

3,289

－

2,840

－

1,821

－

4,879

－

4,497

－

3,006

－

Fiscal year ended Mar. 2024:
2,850 million yen [- %]Basic earnings per share

Diluted earnings per share
yen

yen

First quarter of
19.08
19.04
fiscal year ending Mar. 2025:
First quarter of
31.56
31.51
fiscal year ended Mar. 2024:(Note) Effective November 29, 2023, the Articles of Incorporation were revised to change the date of settlement ofaccounts (end date of the fiscal year) from December 31 to March 31 of each calendar year. Due to this revision,
results for the fiscal year ended March 2024 were provided for an irregular period of 15 months from January 1,
2023, through March 31, 2024, during which the change in the fiscal year was enacted. For this reason,increases (decreases) compared with the same quarter in the previous year are not presented.
(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Book value per share

million yen

million yen%

yenFirst quarter offiscal year ending Mar. 2025:

402,373

67,87917.3

729.42

Fiscal year ended Mar. 2024:

399,696

70,70218.1

759.56

Reference: Equity
First quarter of fiscal year ending Mar. 2025:
69,675 million yen
2.

Fiscal year ended Mar. 2024:
72,503 million yen

Dividends
End of firstquarter

End of second
quarter

Annual dividend
End of third
quarter

yen

yen

yen

yen

0.00

－

48.00

48.00

48.00

48.00

yen

Fiscal year ended Mar. 2024－

Fiscal year ending Mar. 2025－

Fiscal year ending Mar. 2025
(Forecast)－Year-end

Total

－
0.00

(Note) Revisions from latest dividends forecast: None

-1-

－

3.

Consolidated earnings forecast for fiscal year ending March 2025 (from April 1, 2024 to March 31, 2025)(% figures for the full fiscal year show the rate of increase (decrease) compared with the previous fiscal year,
and % figures for the first two quarters show the rate of increase (decrease) compared with the same period of the previous year)

Net sales
million yen%

Operating income

Ordinary income

Profit attributable to Basic earnings
owners of parent
per share

million yen

million yen

million yen

%

%

%

yen

First two quarters－－－－
30,000
3,500
2,100
1,400
14.66
(cumulative)
Full fiscal year－－－－
118,000
18,00015,00010,000104.72(Notes) 1. Revisions from latest earnings forecast: None
2. As mentioned above, due to the change in the fiscal year-end (the end of the fiscal year), the fiscal year
ended March 2024 is an irregular 15-month accounting period from January 1, 2023 to March 31, 2024.
Therefore, increase (decrease) compared with the previous period is not presented for the fiscal year
ending March 2025.
* Explanatory notes(1) Significant change in scope of consolidation during the first quarter:
Newly included:－ (Company name)－ (Company name)
Excluded:None(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to amendment of accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement:(4) Number of shares issued and outstanding (common shares)
1) Number of shares issued and outstanding
First quarter of(including treasury shares) at end of fiscal year fiscal year ending
Mar. 2025
2) Number of treasury shares at end of period
First quarter offiscal year ending
Mar. 2025
3) Average number of shares during period
First quarter offiscal year ending(cumulative)
Mar. 2025

None

Yes
None
None
None

98,580,887 Fiscal year ended 98,580,887
shares Mar. 2024
shares3,059,154 Fiscal year ended
shares Mar. 2024

3,125,950
sharesFirst quarter of
95,490,187
fiscal year ended 95,274,955
shares Mar. 2024
shares(Note) The number of treasury shares at end of period includes shares of ES-CON JAPAN held in a board
benefit trust for executives and a share-based payment benefits-type ESOP trust (first quarter of fiscal
year ending March 31, 2025: 847,900 shares in the board benefit trust for executives and 541,500
shares in the share-based payment benefits-type ESOP trust). In the calculation of the average numberof shares during the period (cumulative total through the quarter), the treasury shares to be subtracted
in that calculation includes ES-CON JAPAN shares held in the share-based payment benefits trust for
directors and the share-based payment benefits-type ESOP trust (first quarter of the fiscal year ending
March 31, 2025: 1,392,181 shares).
*Attached quarterly consolidated financial statements reviewed by a certified public accountant or audit corporation?:
Y (voluntary)*

Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information
currently available to and certain assumptions that are thought to be reasonable by ES-CON JAPAN. Accordingly,
actual business performance and other results may differ materially due to various reasons. For the conditions
forming the assumptions on which earnings forecasts are based and explanatory notes for use of earnings
forecasts, etc., please see “Attachment; 1. Qualitative Information on Quarterly Results; (4) Consolidated
Earnings Outlook and Other Forward-looking Statements” on page 8.

-2-

○ Contents of Attachment
1. Summary of Operating Results, Etc ............................................................................................................................. 4(1) Business Risks ....................................................................................................................................................... 4(2) Explanation of Operating Results ........................................................................................................................... 4(3) Analysis of Financial Position ................................................................................................................................. 7(4) Consolidated Earnings Outlook and Other Forward-looking Statements ................................................................ 8
2. Quarterly Consolidated Financial Statements and Key Notes ...................................................................................... 9(1) Quarterly Consolidated Balance Sheet ................................................................................................................... 9(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income .. 11(Quarterly Consolidated Statement of Income) ..................................................................................................... 11First quarter of fiscal year ending March 2025................................................................................................... 11(Quarterly Consolidated Statement of Comprehensive Income) ........................................................................... 12First quarter of fiscal year ending March 2025................................................................................................... 12(3) Notes to Quarterly Consolidated Financial Statements ........................................................................................ 13(Notes on Going Concern Assumption) ................................................................................................................. 13(Notes on Changes in Accounting Policies) .......................................................................................................... 13(Notes on Substantial Changes in the Amount of Shareholders’ Equity) .............................................................. 13(Notes on the Quarterly Consolidated Statement of Cash Flows) ......................................................................... 13(Additional Information) ......................................................................................................................................... 14(Notes on Segment Information etc.) .................................................................................................................... 16(Significant Subsequent Events) ........................................................................................................................... 17
3. Other .......................................................................................................................................................................... 19
Status of Contracts and Sales .................................................................................................................................... 19-3-

1. Summary of Operating Results, Etc(1)Business Risks
There are no business risks that newly arose in the first quarter.
In addition, there are no significant changes in the business risks stated in the previous fiscal year’s securities
report.

(2)

Explanation of Operating Results
Due to a one-time change affecting the fiscal year, results for the fiscal year ended March 2024 correspond toa period of 15 months. For this reason, comparisons with the previous period are not presented here.
In the first quarter of the fiscal year under review, the Japanese economy remained in a pattern of moderate
recovery centered on domestic demand. Examples include signs of recovery in consumer spending and theemployment environment alongside normalization of domestic economic activities and a recovery in inbounddemand.
However, various factors continue to exert downward pressure on the economy. These include rising prices,ongoing yen devaluation, and fiscal tightening. Overseas, the slowdown in the Chinese economy, the Middle
East conflict, and other emerging geopolitical events threaten to take their toll.
In the real estate industry in which the ES-CON JAPAN Group operates, rising construction costs, driven by
the rapidly rising cost of acquiring land and raw materials and other cost increases, including the surging
personnel expenses caused by personnel shortages, have raised concerns. These factors warrant closemonitoring.
In the first quarter of the fiscal year under review, ES-CON JAPAN achieved the following operating results:
net sales of 19,098 million yen; operating income of 3,289 million yen; ordinary income of 2,840 million yen;and profit attributable to owners of parent of 1,821 million yen.
Under its Long-Term Vision for 2030, ES-CON JAPAN is seeking to achieve sustainable growth.
Major recent initiatives based on the priority topics of the Long-Term Vision 2030 are outlined below.

<Business strategies>
1)

Deepeninga. Further growth of main business• This marked the second year following the March 2023 opening of ES CON FIELD HOKKAIDO, the new
Hokkaido Nippon Ham Fighters stadium in Kitahiroshima City, Hokkaido, for which ES-CON JAPAN has
concluded a naming rights agreement. Activity has continued to grow across the village area, driven byvisitors from both inside and outside Hokkaido. HOKKAIDO BALLPARK F VILLAGE (“F VILLAGE”
hereinafter), centered on the new stadium, has attracted a cumulative total of more than five million
visitors since opening in June 2024. ES-CON JAPAN is an urban development planning partner for F
VILLAGE Le JADE Hokkaido Ballpark, a condominium project located approximately 80 meters fromthe stadium. Thanks in part to interest in this area, all 118 units in Le JADE Hokkaido Ballpark have sold.
MASTERS VARUS HOKKAIDO BALLPARK, a rental residence for active seniors that features acomplex of healthcare facilities, began accepting tenants in June 2024. We have acquired a commercialsite in a face-to-face location across a road from the outfield side of the stadium. We have secured as atenant a hotel under a brand operated by the Banyan Group, a leading independent hospitality groupbased in Singapore. Development on the hotel has begun, with the opening slated for 2027.
We are also in the process of developing the station square in front of JR Kitahiroshima Station, amulti-use center, a multilayer plaza and park, and residential and community facilities. The multi-use
center will consist of retail facilities and a hotel. We plan to open the commercial facilities on the firstthrough third floors as tonarie Kitahiroshima, under the tonarie retail facility brand, in March 2025.
Furthermore, sales commenced in June 2024 for Le Jade Hokkaido Kitahiroshima (Kitahiroshima City,
Hokkaido; 197 units), developed on a location connected by a pedestrian deck to Kitahiroshima Stationand tonarie Kitahiroshima.
In the city of Sapporo, we are preparing to sell Le JADE Sapporo Odori “The Tower” (Chuo Ward,
Sapporo; 80 units), located six minutes’ on foot from Sapporo Station. We are also proceeding with
development on a site acquired for a hotel and office.

-4-• We have acquired two sites in Hayama Town, Miura District, Kanagawa Prefecture. One site has aunique location with expansive views of Morito Beach. We are developing a complex under our new
DIAMAS condominium brand at this premium location.
• We are jointly developing SAKURA MIRAI SHIN OMURA, a mixed use facility near Shin-Omura Stationon the Nishi-Kyushu Shinkansen line in Omura City, Nagasaki Prefecture, with Daiwa House Industry
Co. and Izumi Co. ES-CON JAPAN is responsible for developing two condominium projects, Le JADE
SHIN-OMURA STATION FRONT (119 units) and Le JADE SHIN-OMURA PARK SIDE (72 units), eachon its site on the larger development site. Plans emphasize an organic design, reminiscent of thepatterns seen in trees as they flourish and branch out, in place of horizontals and verticals, to create
structures that harmonize with the rich natural surroundings of the site.
b. Demonstration of synergy effect with the Chubu Electric Power Group• ES-CON JAPAN is currently developing TSUNAGU GARDEN SENRI FUJISHIRODAI (Fujishirodai,
Suita City, Osaka Prefecture), its fifth joint project with Chuden Real Estate Co., Inc. (“Chuden Real
Estate” hereinafter), a wholly-owned subsidiary of Chubu Electric Power. This project, our first mixeduse development project undertaken jointly with Chuden Real Estate, will establish a new multigenerational urban district through the integrated development of a housing complex, detached
dwellings, a complex of health clinics, a licensed daycare center, retail facilities, and a park on
approximately 20,000 tsubo of land. The commercial district for this zone opened in November 2023.
We launched sales of the condominium Le JADE City Senri Fujishirodai (244 units) in the residential
district in October 2023.
• Two joint projects are currently underway with Chubu Electric Power. In 2022, a consortium ofbusinesses led by Chubu Electric Power and including ES-CON Japan entered into a basic planningagreement for a development project on the former site of the Nagoya Horse Racing Track. We alsoestablished TSUNAGU Community Farm LLC with Chubu Electric Power and Spread Co., Ltd. and built
Techno Farm Fukuroi, one of the world’s largest fully artificially-lit plant factories, which is capable ofproducing 10 tons of lettuce per day. The farm made its first shipments in February 2024. We willcontinue to strengthen our partnership with the Chubu Electric Power Group and work to achieve largescale urban development and realize new forms of communities.
• In March 2023, one director who is a member of the Audit and Supervisory Committee was appointed
from Chubu Electric Power; another director was appointed from Chubu Electric Power in June 2024.
One director at each of ES-CON ASSET MANAGEMENT Ltd. (EAM) and FUEL Inc., both subsidiaries,
is a Chubu Electric Power employee. Further personnel exchange is via secondment of employees toand from Chubu Electric Power and between Chuden Real Estate and ES-CON Japan and its
subsidiaries.
2)

Evolution
a. Expanding domestic area of operations• In addition to our head offices and branches in five major urban areas, we opened an Okinawa Branch
on April 9, 2024 to promote full-fledged business expansion in Okinawa. We have already secured twosites for condominium projects in Naha City.
b. Diversification of development projects and types• We developed seven x seven Itoshima, which had its grand opening in April 2024, on the Itoshima
Peninsula at the western end of the city of Fukuoka. Located in the Futamigaura district of the Itoshima
Peninsula, a resort area less than one hour by bus or car from central Fukuoka, all 47 of this project’s
units have ocean views and private balconies. We also developed a hotel with 11 types of rooms meeting
diverse guest needs, including rooms with rooftop terrace, private Jacuzzi, BBQ grill, etc.,
Japanese/Western style rooms, pet-friendly rooms, and rooms that can accommodate up to eight
guests. The hotel was sold during the first quarter under review.
• In June 2024, we acquired Yoshizuya Y Store Nishiharu, Tsutaya Sakai Minami (leased land), and Life
Daisen (leased land) from ESCON JAPAN REIT Investment Corporation (EJR). One strategy for theFifth Medium-Term Management Plan calls for promoting the development of diverse asset types withincreased value and raising profit ratios while expanding the investment cycle business, including the-5-investment fund business. The investment cycle business sells properties chosen primarily fromproperties developed and owned by ES-CON Japan to private funds operated by firms like EJR and
FUEL, a subsidiary. ES-CON Japan will reacquire the properties when they become obsolete or areotherwise ready for redevelopment into properties with further added value. We plan to develop the threeacquisitions above in ways that will maximize their land value once their leases expire.
While EAM, EJR’s asset-management firm, was subject in July 2022 to business suspension andbusiness improvement orders from the Financial Services Agency (FSA), EJR has resumed trading after
completing its response to the FSA orders. ES-CON Japan has concluded a sponsorship and support
agreement with EJR and will seek to achieve mutual growth by increasing EJR’s earnings and byproviding support to ensure stable growth.
c. Global expansion• With regard to our overseas business, we opened a sales gallery in November 2023 at our Tokyo
headquarters to commence sales and marketing for luxury condominiums in Honolulu, Hawaii, underour ĀLia project. We have also launched sales and marketing for our second large-scale condominium
project in Hawaii, Kuilei Place. We will continue to focus on expanding our businesses overseas.
d. Challenge of new business domains• In January 2024, we made the decision to develop the SUIDEN RESORT (tentative name) series ofhotels across Japan, which are based on the concept of agriculture, in partnership with LOCALRESORTS Inc. (formerly YAMAGATA DESIGN RESORTS Inc.; “LOCAL RESORTS” hereinafter) and
NEWGREEN INC. (formerly YUKIMAI DESIGN INC.; “NEWGREEN” hereinafter). LOCAL RESORTS isa subsidiary of urban developer SHONAI Inc. (formerly YAMAGATA DESIGN Inc.), a company thatseeks to transform challenge into hope in provincial cities. As part of preparations to implement thisproject, we entered into a business alliance agreement with LOCAL RESORTS and made a capital
investment of 200 million yen in NEWGREEN.
• In February 2024, we entered into a capital and business alliance agreement with STYLY, INC., acompany that creates XR content combining virtual reality (VR), augmented reality (AR), and mixed
reality (MR) and operates the STYLY XR platform. Working with STYLY, we will proceed to consider
various other efforts, including efforts to provide new value added via XR in dormant spaces atcommercial facilities owned and operated by the Group and to develop cooperative businesses thatincorporate XR technologies in stadium and arena consulting services.
<Sustainability management>
1) Deepening
Harnessing diverse human resources• In May 2024, in response to the impact of recent high prices and to improve employee engagement andsecure talented human resources, ES-CON JAPAN raised the base wages of Group employees by anannual average of 8.0%.
• We undertook an engagement survey of all employees in May 2024.
2)

Evolution
Achieving a society characterized by well-being• As noted above, we are moving ahead with the development of a multipurpose transit complex consistingof the tonarie Kitahiroshima multi-use center and a hotel in front of JR Kitahiroshima Station, with plans toopen the facilities in March 2025. Before the start of construction, the development site was familiar to local
residents as a park dense with greenery. To preserve the history and characteristics of this site for future
generations, we have launched a memorial furniture project to furnish the public lounge planned for the
hotel under development with furniture made from trees harvested from the park. Students at the Hokkaido
Shirakaba High School for Special Education in Kitahiroshima will participate as part of their classes inmaking the furniture for this project. We plan to pursue energetic ESG initiatives to contribute to thesustained and sustainable growth of the Group.

-6-

Business conditions are outlined below by segment.
Starting in the first quarter of the fiscal year under review, the Group revised its business segments from thethree previous segments of the real estate sales business, real estate leasing business, and real estateplanning, brokerage and consulting business to the four reporting segments of the condominium business, realestate development business, real estate leasing business, asset management business, and the others. This
is intended to clarify our business portfolio and achieve stable growth by allowing the formulation of strategies
for each segment in line with diversified business domains .
Condominium businessCurrently making steady progress on condominium sales, the condominium business launched sales ofseveral new condominium projects: Le JADE City Hashimoto III (Midori Ward, Sagamihara City, 80 units), Le
JADE Nishinomiya Kitaguchi (Nishinomiya City, Hyogo Prefecture, 32 units), Le JADE Hokkaido Kitahiroshima(Kitahiroshima City, Hokkaido, 197 units), and Le JADE Kumamoto Nissekidori (Higashi Ward, Kumamoto City,
92 units). Of the properties completed during this period, the condominium business delivered all units in Le
JADE Minoh-Semba South Residence (Minoh City, Osaka Prefecture, 30 units).
As of June 30, we had completed contracts on 75.5% of the 1,250 condominium units planned for sale in theyear ending March 2025.
The condominium business generated net sales of 5,243 million yen and segment profit of 783 million yen
based on sales of condominiums and detached homes.
Real estate development business
The real estate development business develops and sells facilities under the Company brands of tonarie
retail facilities, LOGITRES logistics facilities, and TOPAZ apartments. The business also generates leasing
revenue from office buildings, hotels, and other properties.
This business generated net sales of 9,450 million yen and segment profit of 2,624 million yen based onsales of facilities like seven x seven Itoshima on the Itoshima Peninsula in Fukuoka Prefecture, as describedabove; the ESCON Kudankita Building, our first development project in the greater Tokyo Area and winner ofa 2023 Good Design Award; and the LOGITRES Sano logistics facility in Tochigi Prefecture.
Real estate leasing business
The real estate leasing business has achieved stable earnings in part by strengthening the leading businessthrough the addition of the Picasso Co., Ltd. and Yuki Sangyo Inc. in 2021 and Shijo Omiya Building Co., Ltd.
in 2023 as subsidiaries. It strives to secure stable leasing revenue and to increase asset value of its retail facility
holdings through various means, including the planned addition to its portfolio in March 2025 of tonarie
Kitahiroshima, currently under development in Kitahiroshima City, Hokkaido.
This business generated net sales of 3,837 million yen and segment profit of 1,752 million yen based on anemphasis on projects intended to increase asset value, including efforts targeting growth in leasing revenue
from revenue-generating real estate holdings.
Asset management business
The asset management business generated net sales of 455 million yen and segment profit of 287 million
yen as results of its businesses of asset management for Group companies, property management, andcondominium management, among others.
Other businesses
Other businesses generated net sales of 111 million yen and segment profit of 16 million yen from sales ofpermanent use rights to Ryomon columbaria and from overseas investments.
(3)

Analysis of Financial Position
Assets at the end of the first quarter of the consolidated fiscal year under review were up 2,676 million yen
from the end of the previous consolidated fiscal year to 402,373 million yen. This was attributable mainly todecreases of 3,563 million yen in cash and deposits and increases of 3,082 million yen and 2,040 million yen
in inventories and property, plant and equipment, respectively. Due to a change in the purpose of holding
assets, during the first quarter of the fiscal year, part of the tangible fixed assets amounting to 1,659 million-7-yenhas been reclassified to real estate for sale in process.
Liabilities were up 5,500 million yen from the end of the previous consolidated fiscal year to 334,494 million
yen. This was attributable mainly to an increase of 5,189 million yen in long-term and short-term loans payable.
Net assets were down 2,823 million yen from the end of the previous consolidated fiscal year to 67,879 million
yen. This was attributable mainly to cash dividends paid of 4,648 million yen, despite the recording of profit
attributable to owners of parent of 1,821 million yen. As a result, the equity ratio was 17.3% (vs. 18.1% at theend of the previous consolidated fiscal year).
(4)

Consolidated Earnings Outlook and Other Forward-looking Statements
The consolidated earnings outlook remains unchanged from the outlook announced on April 24, 2024.

-8-

2.
(1)

Quarterly Consolidated Financial Statements and Key Notes
Quarterly Consolidated Balance Sheet(Unit: million yen)
Fiscal year ended Mar. 2024
(as of Mar. 31, 2024)

First quarter of fiscal year
ending Mar. 2025
(as of June 30, 2024)

48,91045,346

1,019

1,071

3,408
227,887
14,267(1)
295,492

2,330
232,048
15,578(0)296,375

27,832(4,198)23,63451,311
494
(342)
152
75,09828,022(4,450)23,57253,374
547
(354)
192
77,13916,10961
16,17015,86087
15,94814,747(1,812)
12,935104,204
399,696

14,723(1,812)
12,910105,997402,373

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade andcontract assets
Real estate for sale
Real estate for sale in process
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Land
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-9-

(Unit: million yen)
Fiscal year ended Mar. 2024
(as of Mar. 31, 2024)

First quarter of fiscal year
ending Mar. 2025
(as of June 30, 2024)

51,53742,699594
13,749108,580

50,18856,091
1,036
13,658120,975

199,557
227
116
277
20,234
220,413
328,994

192,704
225
113
284
20,191
213,519
334,494

16,51912,46144,703(1,383)72,301

16,51912,476
41,875(1,357)69,514

149

130

52

29

202

160

0
(1,801)70,702399,6960(1,796)67,879402,373

Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ share-based benefits
Provision for share-based benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeSubscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets- 10 -

(2)Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)First quarter of fiscal year ending March 2025

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Penalty income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Amortization of share issuance cost
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on reversal of subscription rights to shares
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit
Net income attributable to noncontrolling interests
Profit attributable to owners of parent

First quarter of fiscal year
ended Mar. 2024
(from Jan. 1, 2023
to Mar. 31, 2023)
28,541
20,859
7,682
2,802
4,879

- 11 -(Unit: million yen)First quarter of fiscal year
ending Mar. 2025
(from Apr. 1, 2024
to June 30, 2024)
19,09812,992
6,106
2,816
3,289

0
0
14
38
2
56

0
63
7
230
11
313

420
9

736
－

5

21

3
438
4,497

5
763
2,840

0
0

－
－

0
0
4,497
1,454
30
1,485
3,012
5
3,006

0
0
2,840
971
42
1,013
1,826
4
1,821

(Quarterly Consolidated Statement of Comprehensive Income)First quarter of fiscal year ending March 2025

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

First quarter of fiscal year
ended Mar. 2024
(from Jan. 1, 2023
to Mar. 31, 2023)
3,012(Unit: million yen)First quarter of fiscal year
ending Mar. 2025
(from Apr. 1, 2024
to June 30, 2024)
1,826

(136)

(18)

(26)

(28)

－

5

(162)
2,850

(41)
1,784

2,844

1,780

5

4

- 12 -

(3)Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Changes in Accounting Policies)(Application of the Accounting Standard for Current Income Taxes, etc.)
The Accounting Standard for Current Income Taxes (Accounting Standards Board of Japan [ASBJ] Statement
No. 27, October 28, 2022; “2022 Revised Accounting Standard” hereinafter) and other applicable standards
have been applied from the start of the first quarter of the consolidated fiscal year under review.
The provisional handling specified in the proviso to Paragraph 20-3 of the 2022 Revised AccountingStandard and the provisional handling specified in the proviso to Paragraph 65-2 (2) of the Guidance on
Accounting Standard for Tax Effect Accounting (ASBJ Guidance No. 28, October 28, 2022; “2022 Revised
Guidance” hereinafter) are followed regarding revisions related to the accounting classifications of income
taxes (taxation on other comprehensive income). Under such handling, with regard to accounting categories
for taxation costs, retained surplus at the start of the initial fiscal year of application is adjusted by the
cumulative amount of the effect of the change in accounting policies. This has had no effect on the
consolidated financial statements for the cumulative period through the first quarter of the consolidated fiscal
year under review.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Notes on the Quarterly Consolidated Statement of Cash Flows)
No Quarterly Consolidated Statement of Cash Flows is prepared for the cumulative period through the first quarterof the consolidated fiscal year under review. Depreciation (including amortization of intangible assets other than
goodwill) and amortization of goodwill) for the cumulative period through the first quarter of the consolidated fiscal
year are shown below.

Depreciation
Amortization of goodwill

First quarter of fiscal year
ended March 2024
(from Jan. 1, 2023
to Mar. 31, 2023)
305 million yen
130- 13 -First quarter of fiscal year
ending March 2025
(from Apr. 1, 2024
to June 30, 2024)
432 million yen
248(Additional Information)(Board Benefit Trust for Executives)(1) Overview of the transaction
1)

ES-CON JAPAN passed a resolution to introduce the performance-based stock reward system (the“System”; The trust established based on the trust agreement concluded with Resona Bank, Limited for
the System is referred to as “board benefit trust for executives”) at the Annual General Meeting of
Shareholders held on March 20, 2015, with an aim to further clarify the relationship between remuneration
for ES-CON JAPAN’s directors (excluding directors who are Audit and Supervisory Committee Members,
external directors, nonexecutive directors and nonresidents of Japan) and (authorized) executive
managing officers (excluding nonresidents of Japan; the “Directors, etc.”; hereinafter referred to as thesame unless otherwise specified) and ES-CON JAPAN’s operating results and share price, with the
Directors, etc. not only benefiting from a rise in share price but also sharing the same risks as shareholders
in relation to a fall in share price, thereby increasing awareness of contribution to the medium- to longterm improvement of operating results and enhancement of corporate value. Furthermore, ES-CON
JAPAN passed resolutions on continuation and partial revision of the System for Directors, etc. in the
Annual General Meeting of Shareholders held on March 26, 2020, the Annual General Meeting of
Shareholders held on March 26, 2021, the Extraordinary General Meeting of Shareholders held on
November 29, 2023, and the Annual General Meeting of Shareholders held on June 25, 2024.
The System after the revision is an incentive system by which ES-CON JAPAN contributes money to atrust with the trust acquiring shares of ES-CON JAPAN with said money as capital, and shares of ESCON JAPAN and the fair market value of shares of ES-CON JAPAN are granted to ES-CON JAPAN’s
Directors, etc. through the trust in accordance with the operating results achievement rate, etc. pursuant
to the officer stock ownership regulations set by ES-CON JAPAN. In principle, shares of ES-CON JAPANwill be granted to the Director, etc. of ES-CON JAPAN after finalization of business results for the final
fiscal year of the subject period. If shares are granted while the Director, etc. remains in office, they will
be granted subject to restrictions on transfer until said Director, etc. retires from all positions such as
director of ES-CON JAPAN, under an agreement on restriction of transfer concluded between ES-CON
JAPAN and the Director, etc. prior to granting of the shares.
ES-CON JAPAN will contribute to the trust money of up to 150 million yen per fiscal year multiplied by
the subject period during the period of three fiscal years from the fiscal year ended March 2025 throughthe fiscal year ending March 2027 and each subsequent Medium-Term Management Plan period.

2) Total number of shares to be granted to the Directors, etc.
・ Resolution passed at the Annual General Meeting of Shareholders held on March 20, 2015
Upper limit of funds for acquisition of shares (for the five fiscal years from the fiscal year ended
December 2015 to the fiscal year ended December 2019): 240 million yen
・ Resolution passed at the Annual General Meeting of Shareholders held on March 26, 2020
Upper limit of funds for acquisition of shares (for the three fiscal years from the fiscal year ended
December 2020 to the fiscal year ended December 2022, and each subsequent period of three fiscal
years): 330 million yen
・ Resolution passed at the Annual General Meeting of Shareholders held on March 26, 2021
Upper limit of funds for acquisition of shares (for the three fiscal years from the fiscal year ended
December 2021 to the fiscal year ending December 2023, and each subsequent period of three fiscal
years): 330 million yen
・ Resolution passed at the Extraordinary General Meeting of Shareholders held on November 29,
2023
Upper limit of funds for acquisition of shares (for the three fiscal years from the fiscal year ended
December 2021 to the fiscal year ending March 2024, and each subsequent period of three fiscal
years): 330 million yen
・ Resolution passed at the Annual General Meeting of Shareholders held on June 25, 2024
Upper limit of funds for acquisition of shares (for the three fiscal years from the fiscal year ended
March 2025 through the fiscal year ending March 2027): 450 million yen; upper limit of funds foracquisition of shares (for each subsequent Medium-Term Management Plan period): 150 million yen
per fiscal year multiplied by the subject period- 14 -

3) Scope of persons who are eligible to receive beneficiary rights and other rights under the System
The Directors, etc. of ES-CON JAPAN who have acquired the right to receive shares based on theofficer stock ownership regulations.
(2) Residual Shares of ES-CON JAPAN in the Trust
Residual shares of ES-CON JAPAN in the trust are recorded as treasury shares under net assets using thebook value in the trust (excluding the amount of incidental expenses). The book value of the treasury sharesand the number of shares is 347 million yen and 851,000 shares for the fiscal year ended March 2024, and
347 million yen and 847,900 shares for the first quarter of the fiscal year ending March 2025.
(Change in Purpose of Holding Assets)
Due to a change in the purpose of holding assets, during the first quarter of the fiscal year, part of the tangible
fixed assets amounting to 1,659 million yen(388 million yen for buildings and structures, 1,271 million yen forland) has been reclassified to real estate for sale in process.
(Share-Based Payment Benefits-Type ESOP Trust)(1) Overview of the transaction
ES-CON JAPAN passed a resolution to introduce a share-based payment benefits-type ESOP (the “System”;
the trust established based on the trust agreement concluded with Resona Bank, Limited for the System isreferred to as “share-based payment benefits-type ESOP trust”) at the board of directors meeting held on
March 20, 2015, with an aim to further enhance the benefit program for its employees and raise theirmotivation and morale for improving the share price and operating results. Furthermore, ES-CON JAPAN
passed a resolution for continuation and partial revision of the share-based payment benefits-type ESOP
trust for employees at the board of directors’ meeting held on October 25, 2023.
The System after the revision is a system by which ES-CON JAPAN contributes money to a trust for a new
period of seven fiscal years from the fiscal year ended December 2022 to the fiscal year ending March 2029
and the period of the seven fiscal years after the elapse of the period, with the trust acquiring shares of ESCON JAPAN with said money as capital, and shares of ES-CON JAPAN are granted to ES-CON JAPANGroup’s employees who have satisfied certain requirements through the trust, pursuant to the stock
ownership regulations set by ES-CON JAPAN.
(2) Residual Shares of ES-CON JAPAN in the Trust
Residual shares of ES-CON JAPAN in the trust are recorded as treasury shares under net assets using thebook value in the trust (excluding the amount of incidental expenses). The book value of the treasury sharesand the number of shares is 339 million yen and 542,000 shares for the fiscal year ended March 2024, and
339 million yen and 541,500 shares for the first quarter of the fiscal year ending March 2025.

- 15 -

(Notes on Segment Information etc.)[Segment Information]
I. First quarter of fiscal year ended March 2024 (from January 1, 2023 to March 31, 2023)
1.

Information on Net Sales and Income or Loss Amounts by Reporting Segment and Information on
Breakdown of Revenue
Reporting segment
Real estate Real estate
Asset
Condominium
development
leasingmanageme
businessbusinessbusiness nt business

Total

The
others(Note 1)

Total

(Unit: million yen)Amount onquarterly
Recon- consolidat
ciliationed(Note 2) statementof income(Note 3)

Net sales
Revenuefromcontractswithcustomers
Otherrevenue(Note 4)
Net sales toexternalcustomers

16,341

8,916

16

274

25,549165

25,714－25,714

－

－

2,656

0

2,657

170

2,827

－

2,827

16,341

8,916

2,673

275

28,206335

28,541－

28,541

－

－

－

－

－

－

－

－

－

Total

16,341

8,916

2,673

275

28,206335

28,541－

28,541

Segment
income

4,335

942

914

168

6,361

285

6,646

△1,766

4,879Intersegme
nt net sales
or transfers(Notes) 1. “The others” includes business segments not covered by the reporting segments, such as overseas
and other investment businesses, funeral hall operations (Ryomon), and brokerage and consulting
services.
2. The reconciliation of segment income or segment loss of -1,766 million yen is corporate expenses
not attributable to any reporting segment. Corporate expenses are general and administrative
expenses not attributable to reporting segments.
3. Segment income or segment loss is reconciled with operating income on the quarterly consolidated
statement of income.
4. “Other revenue” is rental income, etc. based on “Accounting Standard for Lease Transactions.”
2.

Information on Impairment Loss on Non-Current Assets or Goodwill, Etc. by Reporting Segment
Not applicable.

- 16 -

II. First quarter of fiscal year ending March 2025 (from April 1, 2024 to June 30, 2024)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment and Information on Breakdown
of Revenue

Reporting segment
Real estate Real estate
Asset
Condominium
development
leasingmanageme
businessbusinessbusiness nt business

Total

The
others(Note 1)

Total

(Unit: million yen)Amount onquarterly
Recon- consolidat
ciliationed(Note 2) statementof income(Note 3)

Net sales
Revenuefromcontractswithcustomers
Otherrevenue(Note 4)
Net sales toexternalcustomers

5,243

9,450

17

454

15,166111

15,277－

15,277

－

－

3,820

0

3,821

－

3,821

－

3,821

5,243

9,450

3,837

455

18,987111

19,098－19,098

－

－

－

－

－

－

－

－

－

Total

5,243

9,450

3,837

455

18,987111

19,098－19,098Segment
income

783

2,624

1,752

287

5,448

16

5,464

△2,174

3,289

Intersegme
nt net sales
or transfers(Notes) 1. “The others” includes business segments not covered by the reporting segments, such as overseas
and other investment businesses, funeral hall operations (Ryomon), and brokerage and consulting
services.
2. The reconciliation of segment income of -2,174 million yen is corporate expenses not attributable
to any reporting segment. Corporate expenses are general and administrative expenses not
attributable to reporting segments.
3. Segment income is adjusted with operating income in the quarterly consolidated statements ofincome.
4. “Other revenue” is rental income, etc. based on “Accounting Standard for Lease Transactions.”
2. Information on Impairment Loss on Non-Current Assets or Goodwill, Etc. by Reporting Segment
Not applicable.
3. Change affecting business segments
From the first quarter of the consolidated fiscal year under review, the Group has revised its business segmentsfrom the three previous segments of the real estate sales business, real estate leasing business, and real estateplanning, brokerage and consulting business to the four segments of the condominium business, real estatedevelopment business, real estate leasing business, asset management business, and the others. This is intended
to clarify our business portfolio and achieve stable growth by allowing the formulation of strategies for eachsegment in line with diversified business domains.
Disclosure of segment information for the first quarter of the previous consolidated fiscal year is prepared basedon the reporting segments in the first quarter of the consolidated fiscal year under review.
(Significant Subsequent Events)(Changes in specified subsidiaries)
In its meeting held December 22, 2023, the ES-CON JAPAN Board of Directors resolved to establish thesubsidiary ESCON USA V LLC. Pay-in on the establishment of this subsidiary (USD34.77 million) was completed
on July 16, 2024. As a result, ESCON USA V LLC qualifies as a specified subsidiary because the total amount- 17 -

invested in the subsidiary accounts for 10% or more of ES-CON JAPAN’s capital.
1. Objectives of this change
To invest in ESCON USA V LLC to fund its investment in real estate funds overseas
2. Overview of subsidiary involved in change(1) Name:
ESCON USA V LLC(2) Address:

Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle
County, Delaware 19801(3) Representative:
Toru Kumaki, Manager(4) Total investment amount: USD34.77 million(5) Business:(6) Equity stake:

Investment in real estate funds overseas
100%

3. Effect on business results
This change has negligible effects on consolidated business results for the first quarter of the consolidated
fiscal year under review.
(Issue of bonds)
ES-CON JAPAN has issued unsecured corporate bonds with a pay-in date of July 19, 2024 under the following
terms and conditions:This issue of bonds is based on a comprehensive resolution of the Board of Directors in its meeting held May
28, 2024 establishing the total amount of funds to be raised through offering bonds and other conditions.
The bonds are outlined below.
First unsecured corporate bonds with terms for early redemption (with limited inter-bond pari passu clause)
1. Total amount of issue:
7,400 million yen
2. Issue price:
3. Annual interest rate:

100 yen cash per 100 yen in bond value
1.488%

4. Redemption date:
5. Redemption method:

July 19, 2029
Lump-sum redemption on maturity (with terms for early redemption)

6. Pay-in date (date of issue): July 19, 2024
7. Use of funds:
Working capital associated with growth of domestic and international
8. Important Clauses:

development projects
If Chubu Electric Power Co., Inc. publicly announces by October 21, 2028, that
the Company will no longer be a consolidated subsidiary of Chubu ElectricPower Co., Inc., the bondholders may demand the redemption of their bonds
from the company.

- 18 -

3.

Other
Status of Contracts and Sales
The performance of contracts in the real estate sales business for the first quarter is as follows:First quarter of fiscal year ending Mar. 2025
(from Apr. 1, 2024 to June 30, 2024)
Category

Contract amount during the period
Number of units(units)Balance of contracts at the end of the period

Amount(million yen)

Number of units(units)Amount(million yen)

Condominiums

241

13,401

1,076

57,825

Other

－

948

－

330

241

14,3491,076

58,156Total

The main performance of sales by segment for the first quarter is as follows:First quarter of fiscal year ending Mar. 2025
(from Apr. 1, 2024 to June 30, 2024)
Name of segment
Number of units
AmountProperty name(units)(million yen)

Condominium businessCondominiums

50

4,430

Other

－

813

50

5,243

Kudankita 1-chome, Chiyoda-ku

－

3,250

Kotobuki 4-chome, Taito-ku

－

1,930

seven x seven Itoshimia

－

1,812

LOGITRES Sano

－

1,670

Towa 5-chome, Adachi-ku Other

－

440

Other

－

348

－

9,450

Subtotal

Real estate development
business

Subtotal
Real estate leasing business

3,837

Asset management business

455

Other businesses

111
Total

19,098(Notes) 1. There are no transactions between segments.
2. From the first quarter of the consolidated fiscal year under review, the Group has revised its
business segments from the three previous segments of the real estate sales business, real estateleasing business, and real estate planning, brokerage and consulting business to the four segmentsof the condominium business, real estate development business, real estate leasing business,
asset management business, and the others. This is intended to clarify our business portfolio andachieve stable growth by allowing the formulation of strategies for each segment in line withdiversified business domains.

- 19 -