Summary of Accounts for First Two Quarters of Fiscal Year Ending December 2021
(Japanese GAAP) (Consolidated)
July 29, 2021
Listing exchange: Tokyo Stock Exchange
URL: https://www.es-conjapan.co.jp/english/
President & Representative Director
Senior Managing Director TEL: 06 (6223) 8055
July 29, 2021－
No
Yes (for analysts)

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

1.

Consolidated results for first two quarters of fiscal year ending December 2021
(from January 1, 2021 to June 30, 2021)(1) Consolidated operating results(% figures show the rate of increase (decrease) compared with the same period of the previous year)

Net sales
million yen

Operating income%

million yen

First two quarters of fiscal
24,980(54.6)
2,561
year ending Dec. 2021
First two quarters of fiscal
54,96881.8
10,595year ended Dec. 2020
Note:
Comprehensive income
First two quarters of fiscal
year ending Dec. 2021:
1,361 million yen [-79.9%]

million yen%

million yen%(75.8)

1,934(80.8)

1,388(80.1)

56.1

10,070

62.5

6,990

62.8

First two quarters of fiscal
year ended Dec. 2020:
6,774 million yen[55.6%]

Dilutedearnings per share

yen

yen

17.02
101.99Net assets

million yen

First two quarters of fiscal
183,587
year ending Dec. 2021
Fiscal year ended Dec.
149,423
2020
Reference: Equity
First two quarters of fiscal
year ending Dec. 2021:
58,067 million yen
2.

%

Basic
earnings per shareFirst two quarters of fiscal
17.07
year ending Dec. 2021
First two quarters of fiscal
102.14
year ended Dec. 2020
(2) Consolidated financial position
Total assets

Profit attributable toowners of parent

Ordinary income

Equity ratio

Book value per share

million yen%

yen

57,82431.6

610.12

38,62725.8

563.07

Fiscal year ended
Dec. 2020:

38,589 million yen

Dividends
End ofsecond quarter

Annual dividend
End ofthird quarter

yen

yen

yen

yen

yen

Fiscal year ended Dec. 2020－
Fiscal year ending Dec. 2021－
Fiscal year ending Dec. 2021
(Forecast)(Note) Revisions from latest dividends forecast: None

0.00
0.00

－

38.00

38.00

－

38.00

38.00

End offirst quarter

3.

Year-end

Total

Consolidated earnings forecast for fiscal year ending December 2021 (from January 1, 2021 to December 31, 2021)(% figures for the full fiscal year show the rate of increase (decrease) compared with the previous period)

Net sales
Full fiscal year

Operating income

Ordinary income

Profit attributable to
Basicowners of parent earnings per share

million yen%

million yen%

million yen%

million yen%

yen

80,0003.5

10,800(11.5)

9,400(15.8)

6,200(19.1)

70.21(Note) Revisions from latest earnings forecast: None* Explanatory notes(1) Changes in significant subsidiaries during the first two quarters(Changes in specified subsidiaries resulting in change in scope of consolidation):
Newly included: － companies (Company name) －－ companies (Company name) －Excluded:None(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates, and restatement
1) Changes in accounting policies due to amendment of accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement:

None

None
None
None
None

(4) Number of shares issued and outstanding (common shares)
First two quarters
1) Number of shares issued and outstanding
98,580,887 Fiscal year ended 71,961,887
of fiscal year(including treasury shares) at end of period
shares Dec. 2020
sharesending Dec. 2021
First two quarters
3,407,100 Fiscal year ended
3,428,400
2) Number of treasury shares at end of period of fiscal year
shares Dec. 2020
sharesending Dec. 2021
First two quarters
First two quarters
3) Average number of shares during period
81,333,676
68,439,758
of fiscal yearof fiscal year
(cumulative total of first two quarters)
sharessharesending Dec. 2021
ended Dec. 2020
Note: The number of treasury shares at end of period includes shares of ES-CON JAPAN held in a share-based
payment benefits trust for directors and a share-based payment benefits-type ESOP trust (first two quartersof fiscal year ending December 2021: 851,000 shares in the share-based payment benefits trust for directors
and 225,800 shares in the share-based payment benefits-type ESOP trust). In the calculation of the average
number of shares during period (cumulative total of first two quarters), the treasury shares to be subtracted inthat calculation includes shares of ES-CON JAPAN held in the share-based payment benefits trust for directors
and the share-based payment benefits-type ESOP trust (first two quarters of fiscal year ending December
2021: 1,080,846 shares).
*This quarterly summary of accounts is not subject to quarterly review of certified public accountant or Audit Corporation.

*

Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information
currently available to and certain assumptions that are thought to be reasonable by ES-CON JAPAN. Accordingly, actual
business performance and other results may differ materially due to various reasons. For the conditions forming theassumptions on which earnings forecasts are based and explanatory notes for use of earnings forecasts, etc., pleasesee “Attachment; 1. Qualitative Information on Quarterly Results; (4) Explanation of Consolidated Earnings Forecast
and Other Forward-Looking Information” on page 9.

○ Contents of Attachment
1. Qualitative Information on Quarterly Results .................................................................................................................... 2(1) Business Risks ............................................................................................................................................................ 2(2) Explanation of Operating Results ............................................................................................................................... 2(3) Explanation of Financial Position ................................................................................................................................ 8(4) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information ......................................... 9
2. Quarterly Consolidated Financial Statements and Key Notes ........................................................................................ 11(1) Quarterly Consolidated Balance Sheet ..................................................................................................................... 11(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income .. 13(Quarterly Consolidated Statement of Income) ............................................................................................................. 13(Quarterly Consolidated Statement of Comprehensive Income)................................................................................... 14(3) Quarterly Consolidated Statement of Cash Flows .................................................................................................... 15(4) Notes to Quarterly Consolidated Financial Statements ............................................................................................ 16(Notes on Going Concern Assumption)......................................................................................................................... 16(Notes on Substantial Changes in the Amount of Shareholders’ Equity) ...................................................................... 16(Additional Information) ................................................................................................................................................. 16(Segment Information, Etc.) .......................................................................................................................................... 18(Significant Subsequent Events) ................................................................................................................................... 18
3. Other ............................................................................................................................................................................... 19
Status of Contracts and Sales ........................................................................................................................................ 19- 1 -Attachment
1. Qualitative Information on Quarterly Results(1) Business Risks
There are no business risks that newly arose in the second 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
In the first two quarters, the Japanese economy is still in a harsh situation as the spread of COVID-19 infection cannot
be contained. The outlook is unforeseeable, although the economy is expected to recover due to the effects of various
policies and improvement in overseas economies if COVID-19 vaccination progresses smoothly.
In the real estate industry in which the ES-CON JAPAN Group operates, the real estate market showed relatively stableperformance with no substantial deterioration as the policies and measures related to tackling COVID-19 and monetaryeasing measures continued. However, it is extremely difficult to predict how COVID-19 developments will impact theJapanese economy and overseas economies as well as the real estate market amid resumption of social and economic
activities in phases while preventive measures against the spread of COVID-19 are taken across the country andvaccination is promoted.
Despite the difficult business environment described above, we made strategic moves towards expansion of new
business fields and sustainable growth by taking the current situation as an opportunity to develop our business.
As a measure to increase capital for proactive business development, we procured funds amounting to 20.4 billion yen
by implementing capital increase through third-party allotment (hereinafter the “capital increase through third-party
allotment”) with Chubu Electric Power Co., Inc. (hereinafter “Chubu Electric Power”) as the allotee on April 5, 2021.
With the capital increase through third-party allotment resulting in Chubu Electric Power owning 51.54% of the voting
rights, ES-CON JAPAN is now a consolidated subsidiary of Chubu Electric Power.
We assessed that becoming a consolidated subsidiary of Chubu Electric Power, which boasts strong corporate credit
standing, through the capital increase through third-party allotment will allow diversification of fundraising methods andreduce fundraising costs by improving our creditworthiness. The move will also enable participation in large-scaleurban-development projects through further business partnerships with the Chubu Electric Power Group. This will makeit possible for us to increase our corporate value still further by stabilizing and expanding our earnings base, enhancing
management stability, and so forth.
In conjunction, we formulated “IDEAL to REAL 2023,” the fourth medium-term management plan, for the three-year
period from the fiscal year ending December 2021 through the fiscal year ending December 2023. The new mediumterm management plan sets “Establishing business foundations able to withstand unexpected changes in economic
conditions” and “Simultaneously changing the revenue structure and expanding business domains” as management
strategies. The detailed plans are as follows.
1)

Overview of Fourth Medium-Term Management Plan
1. Basic Management Strategy Policies(1) 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 fund-raisingabilities 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 realestate leasing business while at the same time realizing business diversification and expanding businessterritories
2. Basic Policy: Transformation and Rapid ProgressTransformation
・ Proactive investment in long-term revenue-generating real estate and improving the structure of the balancesheet
・ Transforming the focus of management from flows to stock- 2 -Rapid Progress
・ Developing synergies in the Chubu Electric Power Group・ Achieving net sales of 110 billion yen and operating income of 16 billion yen (in the final fiscal year of themedium-term management plan)
3. Management Strategies(1) Transformation to a structure of sustained and stable revenues(2) Stable growth in existing core businesses through business diversification and area strategies(3) Growing new businesses into core businesses through business diversification and area strategies(4) Taking on the challenges of new business domains(5) Enhancing synergies within the ES-CON JAPAN Group(6) Expanding bases, primarily in the five largest urban areas(7) Enhancing synergies within the Chubu Electric Power Group(8) Promoting ESG initiatives
4. Performance Plan
Fiscal year ended
Dec. 2020
ActualNet sales

77,308Operating income

12,202

Fiscal year ending
Dec. 2021
Second quarter
Full fiscal year
ActualPlan
24,98080,000Fiscal year ending
Dec. 2022(Unit: million yen)
Fiscal year ending
Dec. 2023

Plan

Plan

98,000110,000

10,80014,00016,000Fiscal year ending
Dec. 2021
Plan

Fiscal year ending
Dec. 2022
Plan

2,561

5. Management Targets
Fiscal year ended
Dec. 2020
ActualFiscal year ending
Dec. 2023
Plan

Share of profits from leasing *1

14.2%

23.0%

24.0%

26.0%

Return on equity (ROE)

21.2%

12.0%

13.0%

13.0%

Return on invested capital(ROIC) *2

6.6%

4.0%

4.0%

4.0%

Equity ratio

25.8%

29.0%

26.0%

23.0%

Share of long-term earnings
from real estate *3

9.5%

12.0%

14.0%

18.0%

38.6 billion yen

61.0 billion yen

66.0 billion yen

72.0 billion yen

Net assets(Note 1)
(Note 2)
(Note 3)

Share of profits from leasing:
Leasing segment profits ÷ Segment total profits (not including adjustments)
Return on invested capital (ROIC):
After-tax operating income ÷ (Shareholders’ equity + Interest-bearing liabilities)
Share of long-term earnings from real estate:
Real estate generating leasing revenues recorded as non-current assets ÷ Net assets

6. Investment Plan
Fiscal year ending
Dec. 2021
Plan
Investment in revenuegenerating real estate
Investment in otherdevelopment
Gross investment

Fiscal year ending
Dec. 2022
Plan

Fiscal year ending
Dec. 2023
Plan(Unit: million yen)
3-year cumulative
total
Plan

30,00040,00060,000130,000

25,00030,00035,00090,00055,00070,00095,000220,000

- 3 -

2)

Status of Demonstration of Synergy Effect with Chubu Electric Power Group
Since the conclusion of a capital and business partnership agreement with Chubu Electric Power in August 2018,
we have positioned the Chubu region as a core business area comparable to the Tokyo metropolitan area and theKansai region, and established a Nagoya branch in March 2019. Following the establishment, we have alreadyacquired land for nine new projects in the Chubu Region.
Furthermore, as joint projects with Chuden Real Estate Co., Inc., we launched condominium/commercial
development projects in Shirakabe, Higashi Ward, Nagoya City; Ichinomiya City, Aichi Prefecture; Kakegawa City,
Shizuoka Prefecture; and Suita City, Osaka Prefecture.
In May 2021, we entered into an investor agreement regarding the establishment of TSUNAGU Community Farm
LLC (hereinafter the “new company”), which will construct and operate vertical farms, with Chubu Electric Powerand Spread Co., Ltd. (hereinafter “Spread”). Based on this investor agreement, ES-CON JAPAN, Chubu ElectricPower and Spread will establish the new company in July 2021 and promote initiatives for constructing andoperating vertical farms. More specifically, the aim is to start construction of Techno Farm Fukuroi at the project site
in Fukuroi City, Shizuoka Prefecture (ES-CON JAPAN already acquired it in March 2021), which will be the world’s
largest vertical farm utilizing fully artificial light and capable of producing 10 tons of lettuce per day, in October 2021.
The farm will be set to launch production in January 2024. With the integration of Chubu Electric Power’s capitaland knowledge on energy management and ES-CON JAPAN’s development know-how, we intend to make efforts
for decarbonization and reduce costs, and contribute to the production of cheaper vegetables at plants as well as
realize efficient and stable production of “safe and clean” lettuce in collaboration with Spread that has a track recordin cultivation and logistics.
In June 2021, a consortium of businesses led by Chubu Electric Power of which ES-CON JAPAN is a member was
selected as the preferred candidate contractor in bidding organized by Aichi Prefecture and the city of Nagoya. The
winning bidder will operate the site of 20th Asian Games Aichi-Nagoya 2026 Athletes’ Village after the games. In
the said business, the vision targets a next-generation approach to community development whereby diverse people
connect with and help each other to promote happiness and find solutions to various issues facing society. Plans
call for ES-CON JAPAN to develop retail complexes as part of this community development project.
Now a consolidated subsidiary of Chubu Electric Power, we intend to proactively work on large-scale urban
development and realization of a “new form of community” not only in the Chubu region but expanding to acrossJapan by continuously strengthening the partnership with the Chubu Electric Power Group.

3)

Progress of Projects under Hokkaido Ballpark Concept
With regard to the naming rights for “ES CON FIELD HOKKAIDO,” the new ballpark of the Hokkaido Nippon-Ham
Fighters planned to be established and opened in 2023 in Kitahiroshima City, Hokkaido, we concluded a ballpark
naming rights agreement with Hokkaido Nippon-Ham Fighters Baseball Club Co., Ltd. and Fighters Sports &Entertainment Co., Ltd. in January 2020.
The area surrounding the new ballpark is a large-scale development area for HOKKAIDO BALLPARK F VILLAGE(total development area: approx. 36.7 ha, hereinafter “F VILLAGE”) with construction of a new station also planned.
We are participating in Japan’s first ballpark development, engaging in the development of various real estate in thearea such as a hotel on the land of approximately 9,400 m2 adjoining the ballpark.
In June 2021, we acquired land for a sales project located in F VILLAGE centering on the new ballpark “ES CON
FIELD HOKKAIDO.”
In addition, we concluded a partnership agreement for the JR Kitahiroshima Station “Train Station West Exit Area
Revitalization Project” in Kitahiroshima City, Hokkaido, with the City of Kitahiroshima on March 30, 2021.
Expectations are increasingly building for JR Kitahiroshima Station as a key access point to the ballpark being
situated between JR Sapporo Station and New Chitose Airport Station in a highly convenient location approximately
20 minutes from the airport and approximately 16 minutes from Sapporo by train. Leveraging such location and ourdevelopment expertise such as from the for-sale condominium and commercial facility development conducted in
the station vicinity to date, we will engage in not only development of the ballpark area but also development of thearea surrounding Kitahiroshima Station, the gateway to such, and thereby promote community-based urban
development that would create bustle throughout Kitahiroshima City.
Continuing to also support sports, cultural promotion, etc., we will contribute to revitalization and development of
the entire Hokkaido region for the happiness of its residents.

- 4 -

4)

Initiatives for Formation of Private REIT
We intend to form and commence operation of a private real estate investment corporation (private REIT) with ESCON Asset Management Ltd., which is a consolidated subsidiary, as the company entrusted with asset management
in fiscal 2021. To that end, we formed private funds operating rental apartments in Higashiyamato City, Tokyo,
Fujisawa City, Kanagawa Prefecture, and Inagi City, Tokyo, in 2020 in cooperation with NISSHIN FUDOSAN
Company, Limited. We then formed the fourth, operating in Isehara City, Kanagawa Prefecture, in January 2021
and the eighth, operating in Kawasaki Ward, Kawasaki City, in April 2021 and Toshima Ward, Tokyo, and Hino City,
Tokyo, and Ebina City, Kanagawa Prefecture, in June 2021.

5)

Launch of Sale of Permanent Use Rights and Management of Columbarium
We acquired Ryomon Co., Ltd., which is a company engaged in management of urban columbarium in Minato Ward,
Tokyo, in October 2020 to solve issues in modern society, such as a shortage of burial grounds due to a large
number of deaths resulting from aging population, the situation in which there will be nobody to look after graves
due to small families with fewer children, and particularly the situation in which having a grave in central Tokyo isextremely difficult. We launched sale of permanent use rights of the columbarium in March 2021.

6)

Status of ESG Initiatives
We have set “Address social issues through promotion of ESG initiatives” as one of our key management strategies.
1. Environment (E)・EcoAction 21 Certification
In May 2020, ES-CON JAPAN acquired EcoAction 21 Certification, a Japanese environmental management
system (EMS) established by the Ministry of the Environment. EcoAction 21 is an EMS for proactive, effective
environmental management including reduction of CO2 emissions, and EMS activities aim for continuous efforts
based on the PDCA cycle. By continuing to conduct environmentally friendly management through EcoAction 21
initiatives, companies are expected to fulfill their social responsibility to reduce environmental burden while suchactivities also bring benefits to management, such as cost reduction and improved productivity, and contribute to
the enhancement of corporate value.
・Green Building
In July 2020, “tonarie Yamato-Takada” and “tonarie Toga-Mikita,” which are commercial facilities owned by
ESCON JAPAN REIT Investment Corporation (hereinafter “EJR”), obtained DBJ Green Building Certification (acertification system created by Development Bank of Japan Inc. (hereinafter “DBJ”) in April 2011 to support realestate properties with environmental and social awareness (“Green Buildings”)) from DBJ. These were followed
also by “tonarie Minamisenri” and “tonarie Seiwadai” in February 2021 and commercial facility “Asumigaoka Brand
New Mall” in July 2021. There are currently five properties that have acquired the certification.
・“Rank S” Certification for CASBEE for Real Estate
In July 2020, “tonarie Fujimino,” a commercial facility owned by ES-CON JAPAN, obtained “Rank S,” the highest
rank of the Certification for CASBEE(*1) for Real Estate from a CASBEE accreditation body authorized by theInstitute for Building Environment and Energy Conservation.
*1

CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system to comprehensively assess thequality of a building, which evaluates and ranks the environmental performance of the building by taking into account not only
environmental considerations such as energy savings and use of environmentally friendly materials, but also comfort in thebuilding and its visual impact on the area.

・ZEH Builder
In November 2020, ES-CON Home Co., Ltd. and ES-CON Craft Co., Ltd., which are consolidated subsidiaries of
ES-CON JAPAN, were registered for ZEH(*2) Builder Certification.
*2

ZEH (Net Zero Energy House) is a house aiming to make the annual primary energy consumption zero by introducing renewableenergy after realizing significant conservation of energy while maintaining the quality of the indoor environment with significant
improvement in the thermal insulation performance of the outer building skin as well as the introduction of a highly efficientequipment system.

- 5 -・Received Award for Excellence in the Environmental Human Resource Development Corporate Awards
In March 2021, we received the Award for Excellence in the Environmental Human Resource Development
Corporate Awards 2020 (recognizing companies leading the way in developing environment-related humanresources) hosted by the Ministry of the Environment and the Environmental Consortium for Leadership
Development (EcoLeaD). The Awards were created in a fiscal 2014 project by the Ministry of the Environment
with an aim to encourage Japanese companies to engage in and train human resources for environmentallyfriendly business management and increase the number of companies contributing to comprehensive
improvement of the environment, economy and society, considering the situation where efforts toward asustainable society have become essential.
・Construction and Operation of “Techno Farm Fukuroi,” a Vertical Farm Utilizing Fully Artificial LightAs mentioned above, we plan to start construction of Techno Farm Fukuroi, which will be the world’s largest
vertical farm utilizing fully artificial light and capable of producing 10 tons of lettuce per day. We will make efforts
to realize efficient and stable production of “safe and clean” lettuce in collaboration with Chubu Electric Powerand Spread. The three companies will solve issues in food and agricultural fields through the plant factorybusiness as well as contribute to the realization of a sustainable and livable society and the achievement of SDGs
by making efforts towards decarbonization such as the proactive use of green energy and effective use of CO2 in
the process of cultivation.
2. Social (S)・Contributing to Healthcare
We have been providing monetary donations since 2020 to Kyoto University’s “iPS Cell Research Fund” to support
activities realizing provision of early and inexpensive treatment using iPS cells for people suffering from diseases
and accidents.
We have also been providing monetary donations since 2019 to Osaka University’s Graduate School of Medicine
as support for clinical trials of cancer vaccines showing promise for the treatment of cancer.
・Contribution to sports promotion
In April 2021, we invested in Ryukyu Football Club Co., Ltd. (hereinafter “Ryukyu FC”) which operates FC Ryukyu,
a professional soccer team. With this investment, we will contribute to the local community through sports
promotion by securing a foothold for the creation of business opportunities in Okinawa as well as supporting
Ryukyu FC ‘s regional revitalization activities in Okinawa Prefecture.
3. Governance (G)・Establishment of Voluntary Committee on Nomination and Remuneration of Directors
In January 2020, we established the “Nomination and Remuneration Advisory Committee” with an aim tostrengthen the independence and objectivity of functions as well as the accountability of the board of directors
with regard to nomination and remuneration of directors and other matters.
・Nurturing Successors
We also launched initiatives for a succession plan called the candidate successor system. In January 2021, wenewly appointed seven employed executive officers.
・Diversity of the Board of Directors
In order to secure diversity of the board of directors, two independent directors were appointed at the 26th Regular
General Meeting of Shareholders held on March 26, 2021, and the number of independent directors increased tofour. In addition to the traditional certified public accountant, tax accountant and lawyer, a director experienced incorporate management and a female independent director who is also a securities analyst have been newly
added for a diverse board composition.
In addition, the skills matrix for directors is disclosed in the corporate governance report.
4. Other
In March 2020 and December 2020, we procured funds through “ESG/SDG assessment-based loans” provided
by Sumitomo Mitsui Banking Corporation. Deemed to be “implementing good ESG and SDG initiatives andinformation disclosure,” each earned an overall ranking that is the third-best ranking out of seven. Combined, 6.5
billion yen was procured for two projects.

- 6 -We have been participating in GRESB, which is an annual benchmark assessment measuring ESG considerationin the real estate sector, every year since 2018 with an aim to continuously improve the assessment results. As
a result, in November 2020, our rating improved to “3 Stars” from “2 Stars” in 2019 for the first time in GRESB
Rating, which is a five-grade evaluation system that reflects the applicant’s relative evaluation based on total
GRESB Score, for efforts on environmental consideration and sustainability in the “Development Benchmark.” In
addition, we acquired “Green Star(*3)” rating by receiving high marks in both “Management Component” and“Development Component” for two consecutive years.
*3”Green Star” in the “Development Benchmark” is given to participants whose score is 50% or more in the absolute assessment
based on the two main points which are “Management Component” and “Development Component.”

7)

Business Development by Segment
In the real estate sales business, our core business, we conducted revenue-generating real estate sales, etc., inaddition to achieving progress in condominium sales.
In the condominium sales business, we commenced selling new sales projects, including “Le JADE Ibaraki
Higashichujyo” (Ibaraki City, Osaka Prefecture; 40 units in total), “Le JADE Urawa” (Urawa Ward, Saitama City; 44units in total), “Le JADE Kakegawa Ekimae” (Kakegawa City, Shizuoka Prefecture; 83 units in total), “Le JADE Gifu
Koganekoen” (Gifu City, Gifu Prefecture; 38 units in total) and “Le JADE Kyoto Horikawa” (Shimogyo Ward, Kyoto
City; 60 units in total). “Le JADE Nagaikoendori” (Sumiyoshi Ward, Osaka City; 108 units in total) and “Le JADE
Hirano” (Hirano Ward, Osaka City; 58 units in total) are contracted to sell out.
In the Kyushu area and Hokkaido area as well, we acquired land for a new sales project (Minami Ward, Fukuoka
City and Higashi Ward, Sapporo City), our first in such areas, and “Suroy Mall Nagamine” (a commercial facility in
Higashi Ward, Kumamoto City).
Furthermore, we acquired “Chiba Research Park (Wakaba Ward, Chiba City),” a site for logistics facilities, with theintention of proactively developing logistics.
In the real estate leasing business, efforts are being made to secure stable rental income from commercial facilities
owned by ES-CON JAPAN and to enhance their asset value. Such efforts included newly acquiring “tonarie
Yokkaichi” (a community-based shopping center in Yokkaichi City, Mie Prefecture) and “Fuji Grand Natalie” (acommercial facility in Hatsukaichi City, Hiroshima Prefecture) and opening “tonarie CREO” at “tonarie Tsukuba
Square (Tsukuba City, Ibaraki Prefecture),” a redevelopment project in front of Tsukuba Station in Ibaraki Prefecture.
In the real estate planning agency and consulting business, focus is being placed on the segment as a businessachieving high profit margins through subcontracting, planning agency and consulting, and other non-asset
businesses by leveraging the planning and other strengths of ES-CON JAPAN.
As a result, ES-CON JAPAN achieved net sales of 24,980 million yen (down 54.6%), operating income of 2,561
million yen (down 75.8%), ordinary income of 1,934 million yen (down 80.8%) and profit attributable to owners ofparent of 1,388 million yen (down 80.1%) for the first two quarters, all compared with the same period of the previous
year.
Moreover, the initial plan for the first two quarters has been revised due to the following primary factors.

1)

2)

Real estate sales business・ The primary factor for the reduction in net sales is the delay of delivery date of condominiums/houses to thesecond half of the fiscal year, amounting to approximately 3.0 billion yen. However, progress has been made as
forecast on a contract basis.
Real estate leasing business・ Reduction in rental income due to delays in leasing of retail facilities during the COVID-19 pandemic caused by
the extension of the state of emergency, etc.
・ Reduction in income due to prior investment in repairs, etc. for improving customer-attracting effect of retailfacilities

3)

Real estate planning agency and consulting business・ Reduction in net sales of 0.6 billion yen due to delay in sales in the columbarium sales business of Ryomon Co.,
Ltd.
- 7 -

・ Reduction in income due to prior expenditure of advertising expenses for commercials, etc. to promote sales in
the columbarium sales business
Due to these primary factors listed above, the initial plan was revised with a 4,420 million yen decrease in net sales
and a 1,339 million yen decrease in operating income.
The following describes the operating results by segment, with figures compared with the same period of theprevious year.
1)

Real estate sales businessIn the real estate sales business, activities included selling condominiums and revenue-generating real estate, but
resulted in net sales of 21,256 million yen (down 59.3%) and segment income of 3,824 million yen (down 67.8%).

2)

Real estate leasing businessIn the real estate leasing business, focus was placed on leasing activities and the property management businessin view of enhancement of asset value, including increase in rental income of owned revenue-generating real estate,
resulting in net sales of 3,427 million yen (up 34.9%) and segment income of 1,504 million yen (up 47.3%).
Real estate planning agency and consulting businessIn the real estate planning agency and consulting business, proactive efforts were made in such aspects as
entrustment with planning, consulting and other services by making the best use of planning and multifacetedbusiness building abilities, but resulted in net sales of 296 million yen (up 95.9%) and segment loss of 309 million
yen (segment income of 85 million yen in the same period of the previous year) due to delay in sales in thecolumbarium sales business and prior expenditure of advertising expenses.

3)(3) Explanation of Financial Position
1) Financial position
Assets at the end of the first two quarters increased by 34,164 million yen compared with the end of the previous
fiscal year to 183,587 million yen. This was mainly attributable to cash and deposits, property, plant and equipment
and inventories increasing by 13,471 million yen, 2,046 million yen and 14,732 million yen, respectively.
Liabilities increased by 14,967 million yen compared with the end of the previous fiscal year to 125,762 million yen.
This was mainly attributable to long-term loans payable, short-term loans payable and bonds payable increasing by
12,830 million yen.
Net assets increased by 19,196 million yen compared with the end of the previous fiscal year to 57,824 million yen.
This was attributable to cash dividends paid of 2,645 million yen, while recording profit attributable to owners ofparent of 1,388 million yen as well as the increase in capital and capital reserve by 10,235 million yen each with thecapital increase through third-party allotment. As a result, the equity ratio was 31.6% (25.8% at the end of theprevious fiscal year).
2)

Cash flows
Cash and cash equivalents (“net cash”) at the end of the first two quarters increased by 13,422 million yen comparedwith the beginning of the fiscal year to 37,220 million yen (24,499 million yen at the end of the same period of theprevious fiscal year).
The following outlines the cash flows and the factors of change in cash flows in the first two quarters.

(Cash flows from operating activities)
Cash flows from operating activities decreased by 15,119 million yen (net cash used in operating activities increased
by 9,275 million yen in the same period of the previous fiscal year). This was mainly attributable to profit before
income taxes of 1,933 million yen, increase in inventories of 14,918 million yen and income taxes paid of 1,383
million yen.
(Cash flows from investing activities)
Cash flows from investing activities decreased by 2,008 million yen (net cash used in investing activities decreased
by 3,815 million yen in the same period of the previous fiscal year). This was mainly attributable to purchase of noncurrent assets of 2,290 million yen.
- 8 -(Cash flows from financing activities)
Cash flows from financing activities increased by 30,549 million yen (net cash used in financing activities decreased
by 3,374 million yen in the same period of the previous fiscal year). This was mainly attributable to expenditure fromand repayments of long-term loans payable and short-term loans payable amounting to net proceeds of 13,044
million yen, proceeds from issuance of common shares amounting to 20,361 million yen and payment of cash
dividends of 2,643 million yen.
(4)

Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
As described in (2) Explanation of Operating Results, the initial plan for the first two quarters has been revised.
However, because most of these factors are delays to the second half of the fiscal year and involve prior investmentthat will lead to improvement of income in the second half onwards and is believed to be recoverable in the second
half, there is no change to the current full-year consolidated earnings forecast for the fiscal year ending December
2021 and dividend forecast (dividend per share: 38 yen).
The key strategies for the second half of the fiscal year are as follows.
1) Real estate sales business
ES-CON JAPAN will steadily move the contracts which have accumulated in the first half of the fiscal year to thedelivery phase and carefully communicate the features and positive aspects of each property in order to provide
services that apprehend customer needs in an effort to promote sales.
As for the current state of sales, there are 844 contracted units (as of June 28, 2021) which is 79% of the 1,062
units forecast at the beginning of the period (full-year forecast for the fiscal year ending December 2021).
2) Real estate leasing businessAs vaccination is accelerating alongside the lifting of the state of emergency, ES-CON JAPAN will endeavor to
improve added value of retail facilities and enhance leasing.
3) Real estate planning agency and consulting businessWith advertising such as commercials for the columbarium starting to show results, ES-CON JAPAN will
accelerate sales alongside the coming increase in visitors resulting from the lifting of the state of emergency, etc.
In addition, as described in “Notice on Transfer of Real Estate for Sale to ESCON JAPAN REIT Investment
Corporation” announced on July 9, 2021, we have concluded a sale and purchase agreement to transfer thefollowing real estate for sale owned by ES-CON JAPAN to EJR on the same day. The transfer date is scheduled
to be August 3, 2021.
Moreover, the impact of the transfer of the said real estate for sale on the earnings forecast has already been
incorporated into the full-year consolidated earnings forecast for the fiscal year ending December 2021.
Details of Assets to Be Transferred
The total transfer price will be 11,947 million yen as described below, and the total gain from transfer is scheduled
to be 2,470 million yen.
Site area
Transfer price
LocationType(total floor area)(million yen)
(1) Kumamoto-shi, Kumamoto Prefecture Commercial facility
28,546.00 m2
4,600(Suroy Mall Nagamine)(land, building)(13,130.23 m2)
2(2) Hatsukaichi-shi, Hiroshima Prefecture Commercial facility
21,083.66 m
3,950(Fuji Grand Natalie)(land, building)(28,543.96 m2)
Commercial facility(3) Sapporo-shi, Hokkaido
8,154.00 m2
1,300(land)
Commercial facility(4) Neyagawa-shi, Osaka Prefecture
2,743.65 m2
702(land)
Commercial facility(5) Amagasaki-shi, Hyogo Prefecture
1,491.47 m2
565(land)
Commercial facility(6) Kobe-shi, Hyogo Prefecture
2,634.83 m2
530(land)
Commercial facility(7) Hikone-shi, Shiga Prefecture
2,012.30 m2
300(land)
Total

11,947- 9 -The status of the portfolio owned by EJR after the transfer is as follows.
Type

Asset (million yen)

Percentage

Land lot

31,166

44.8%

Land, building

38,437

55.2%

Total

69,604100.0%A press release concerning the acquisition of the above properties, issuance of new investment units andsecondary offering of investment units has been announced on July 9, 2021, at EJR.

- 10 -

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance Sheet

Fiscal year ended
Dec. 2020(as of Dec. 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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
Deferred assets
Share issuance cost
Total deferred assets
Total assets- 11 -(Unit: million yen)
Second quarter offiscal year ending
Dec. 2021(as of Jun. 30, 2021)

23,870927
6,262
82,3168,739(0)122,117

37,342
1,055
19,164
84,146
11,604(0)
153,313

4,359
(889)
3,470
11,262
335
(191)
143
14,876

5,524(1,093)
4,431
12,327
380
(216)
164
16,922

339
63
403

291
58
349

12,064(37)
12,02627,306

12,941(37)
12,90330,174－－
149,42399
99
183,587

Fiscal year ended
Dec. 2020(as of Dec. 31, 2020)
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ share-based benefits
Provision for share-based benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets- 12 -(Unit: million yen)
Second quarter offiscal year ending
Dec. 2021(as of Jun. 30, 2021)

2,907
26,093
230
1,460
9,121
39,813

4,304
32,90410855
11,49549,56969,274
135
46
260
1,265
70,982
110,795

74,116
135
50
269
1,620
76,193
125,762

6,284
2,088
31,429(1,348)38,454

16,51912,32630,172(1,340)57,677

153
(18)
134
1
37
38,627
149,423

368
21
389
1
(243)
57,824
183,587

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Unit: million yen)First two quarters ofFirst two quarters offiscal year ended
fiscal year ending
Dec. 2020
Dec. 2021(from Jan. 1, 2020
(from Jan. 1, 2021
to Jun. 30, 2020)
to Jun. 30, 2021)
Net sales
54,96824,980
Cost of sales
40,141
17,860Gross profit
14,827
7,119
Selling, general and administrative expenses
4,231
4,557
Operating income
10,595
2,561
Non-operating income
Interest income
87Dividend income
46
52
Penalty income
2213－
Foreign exchange gains
29
Other
3
7
Total non-operating income
81110
Non-operating expenses
Interest expenses
523
641
Share of loss of entities accounted for using equity method
61
45－
Amortization of share issuance cost
9
Other
21
41
Total non-operating expenses
606
738
Ordinary income
10,070
1,934
Extraordinary income－
Gain on sales of non-current assets
0Gain on reversal of subscription rights to shares
00
Total extraordinary income
00Extraordinary losses
Loss on retirement of non-current assets
00
Total extraordinary losses
00Profit before income taxes
10,070
1,933
Income taxes - current
2,947
746
Income taxes - deferred
132
79
Total income taxes
3,080
826
Profit
6,990
1,106
－
Loss attributable to non-controlling interests(281)
Profit attributable to owners of parent
6,990
1,388

- 13 -

(Quarterly Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests- 14 -First two quarters offiscal year ended
Dec. 2020(from Jan. 1, 2020
to Jun. 30, 2020)
6,990(Unit: million yen)First two quarters offiscal year ending
Dec. 2021(from Jan. 1, 2021
to Jun. 30, 2021)
1,106

(184)
(13)

215
13

(17)

26

(215)
6,774

254
1,361

6,774
－

1,643
(281)

(3) Quarterly Consolidated Statement of Cash FlowsFirst two quarters offiscal year ended
Dec. 2020(from Jan. 1, 2020
to Jun. 30, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Amortization of long-term prepaid expenses
Amortization of share issuance cost
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for directors’ share-based
benefits
Increase (decrease) in provision for share-based benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity method
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Decrease (increase) in prepaid expenses
Increase (decrease) in accounts payable - other
Decrease/increase in consumption taxes receivable/payable
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease (increase) in other assets
Increase (decrease) in other liabilities
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from withdrawal of investment securities
Purchase of non-current assets
Proceeds from sales of non-current assets
Payments of loans receivableCollection of loans receivable
Proceeds from guarantee deposits received
Repayments of guarantee deposits received
Payments of contribution
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Repayments of installment payables
Proceeds from issuance of common shares
Purchase of treasury shares
Proceeds from disposal of treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -(Unit: million yen)First two quarters offiscal year ending
Dec. 2021(from Jan. 1, 2021
to Jun. 30, 2021)

10,070
192
48
－
－
－

1,933
238
48
18
9
0

21

－

5
(54)
523
17
61
(0)
0
(20)
1,987
374
484
588
(1,263)
194
(147)
(39)
13,04447(571)(3,245)
9,275

3
(60)
641
(29)
45
－
0
(127)
(14,918)
(697)
766
(311)
1,811
(328)
(2,267)
88(13,133)52(656)(1,383)(15,119)(9)
1(1,614)
5(2,283)
75
(530)
500
882
(841)
－
(3,815)

(9)
－
(776)
0
(2,290)
107
－
0
1,050
(90)
(0)
(2,008)

7,070(6,400)24,433(25,925)
(20)
(0)
(17)
－
(233)
207
(2,487)(3,374)(0)
2,085
22,41324,4993,872(2,475)24,385(12,738)
(220)
(0)
－
20,361－8(2,643)30,5490
13,422
23,79837,220(4) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
ES-CON JAPAN received payment of the capital increase through third-party allotment from Chubu Electric Power on
April 5, 2021. As a result, capital and capital reserve increased by 10,235 million yen in the first two quarters, andcapital and capital surplus were 16,519 million yen and 12,326 million yen, respectively at the end of the second quarterof the fiscal year under review.
(Additional Information)(Accounting estimates in line with the spread of COVID-19)
There are no significant changes in the assumptions concerning the impact of the COVID-19 pandemic stated under
additional information in the previous fiscal year’s securities report.
However, there are many factors of uncertainty concerning the impact of the COVID-19 pandemic, and thus if the realestate market deteriorates further, the operating results, financial position, and status of cash flow of ES-CON JAPANGroup may be materially impacted due to posting of appraisal loss of inventories and impairment loss, etc.
(Board Benefit Trust for Executives)(1) Overview of the Transaction
1) We passed a resolution to introduce a 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 Regular General Meeting of Shareholders held on March 20, 2015,
with an aim to further clarify remuneration for directors (excluding auditor directors, external directors, and nonexecutive directors) and (authorized) executive managing officers (the “Directors”; hereinafter referred to as thesame unless otherwise specified) of ES-CON JAPAN and the relationship between ES-CON JAPAN’s operating
results and share price, with the Directors not only benefiting from a rise in share price but also sharing the samerisks as shareholders in relation to a fall in share price, thereby increasing awareness of contribution to themedium- to long-term improvement of operating results and enhancement of corporate value. Furthermore, we
passed a resolution for continuation and partial revision of performance-based stock rewards for the Directors
at the Regular General Meeting of Shareholders held on March 26, 2020, and the Regular General Meeting of
Shareholders held on March 26, 2021.
The System after the revision is an incentive system by which ES-CON JAPAN contributes money to a trust withthe trust acquiring shares of ES-CON JAPAN with said money as capital, and shares of ES-CON JAPAN andmoney equivalent to the fair market value of shares of ES-CON JAPAN are granted to the Directors of ESCON
JAPAN through the trust in accordance with the operating results achievement rate, etc., pursuant to the officer
stock ownership regulations set by ES-CON JAPAN. The shares of ES-CON JAPAN will be granted to the
Director of ES-CON JAPAN when said Director retires from all positions of Director in principle.
Under the System, for a set period of three fiscal years from the fiscal year ending December 2021 to the fiscal
year ending December 2023 as well as each subsequent period of three fiscal years, ES-CON JAPAN willcontribute money up to 330 million yen (110 million yen per fiscal year multiplied by the number of target fiscal
years) to the trust.

2)

Total number of shares to be granted to the Directors･ Resolution passed at the Regular 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 Regular 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 ending December 2022 and each subsequent period of three fiscal years): 330 millionyen- 16 -

･

Resolution passed at the Regular 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

3)

Scope of persons who are eligible to receive beneficiary rights and other rights under the System
The Directors of ES-CON JAPAN who have acquired the right to receive shares based on the officer 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 the bookvalue in the trust (excluding the amount of incidental expenses). The book value of the treasury shares and thenumber of shares is 347 million yen and 851,000 shares for the previous fiscal year, and 347 million yen and 851,000
shares for the second quarter of the fiscal year under review.
(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 trust (the “System”;
The trust established based on the trust agreement concluded with Resona Bank, Limited for the System is referred
to as “Share-Based Payment ESOP”) at the board of directors’ meeting held on March 20, 2015, with an aim tofurther enhance the benefit program for its employees and raise their motivation and morale for improving the shareprice and operating results.
The System is a system by which ES-CON JAPAN contributes money to a trust with the trust acquiring shares of
ES-CON JAPAN with the 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 ownershipregulations 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 the bookvalue in the trust (excluding the amount of incidental expenses). The book value of the treasury shares and thenumber of shares is 59 million yen and 233,000 shares for the previous fiscal year, and 57 million yen and 225,800
shares for the second quarter of the fiscal year under review.

- 17 -

(Segment Information, Etc.)[Segment Information]
I. First Two Quarters of Fiscal Year Ended December 2020 (from January 1, 2020 to June 30, 2020)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment(Unit: million yen)Amount onquarterly
Reconciliation consolidated(Note 1)statement ofincome(Note 2)

Reporting segment
Real estatesales
business

Real estateleasingbusiness

Real estateplanning agency
and consulting
business

52,2752,541

151

54,968－54,968

－

－

－

－

－

－

52,2752,541

151

54,968－54,968

11,8801,021

85

12,987(2,391)

10,595Total

Net sales
Net sales toexternal customers
Intersegment net
sales or transfers
Total
Segment income(Note 1) The reconciliation of segment income of -2,391 million yen is corporate expenses not attributable to any reporting
segment. Corporate expenses are general and administrative expenses not attributable to reporting segments.
(Note 2) Segment income is reconciled with operating income on the quarterly consolidated statement of income.
2. Information on Impairment Loss on Non-Current Assets or Goodwill, Etc. by Reporting Segment
Not applicable.
II. First Two Quarters of Fiscal Year Ending December 2021 (from January 1, 2021 to June 30, 2021)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment(Unit: million yen)Amount on
Reporting segment
quarterly
Real estate
Reconciliation consolidated
Real estate
Real estate
Total
planning agency(Note 1)statement ofsales
leasingand consulting
incomebusinessbusiness(Note 2)business
Net sales
Net sales to－21,256
3,427
296
24,98024,980external customers
Intersegment net
－
－
－
－
－
－
sales or transfers
Total－
21,256
3,427
296
24,98024,980
Segment income
3,824
1,504
(309)
5,019
(2,457)2,561(loss)(Note 1) The reconciliation of segment income of -2,457 million yen is corporate expenses not attributable to any reporting
segment. Corporate expenses are general and administrative expenses not attributable to reporting segments.
(Note 2) Segment income is reconciled with operating income on the quarterly consolidated statement of income.
2. Information on Impairment Loss on Non-Current Assets or Goodwill, Etc. by Reporting Segment
Not applicable.
(Significant Subsequent Events)
Not applicable.

- 18 -

3. Other
Status of Contracts and Sales
The performance of contracts in the real estate sales business for the second quarter is as follows:
Second quarter of fiscal year ending Dec. 2021
(from Apr. 1, 2021
to Jun. 30, 2021)
Classification

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)

Mid- to high-risehousing, etc.

420

20,988829

42,456

Other

－

801

－

1,433

420

21,790829

43,890Total(Note)

The above amounts do not include consumption tax, etc.

The main performance of sales by segment for the first two quarters is as follows:First two quarters of fiscal year ending Dec. 2021
(from Jan. 1, 2021
to Jun. 30, 2021)

Name of segment

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

Condominiums

445

18,098

Genboen, Koga-shi

－

1,874

3-chome, Aoyamadai, Suita-shi－

226

Matsukazecho, Hiratsuka-shi

－

107

Other

－

949

445

21,256

Subtotal
Real estate leasing business

3,427Real estate planning agency
and consulting business

296
Total

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

- 19 -

24,980