ES-CON JAPAN Ltd.

Financial Results forFirst Two Quarters of TermEnding December 2021
ES-CON JAPAN Ltd.

Section 1
Financial Results for First Two Quarters of Term Ending December 2021
Summary of Financial Results and Main Activities

Table of Contents
Section 1l Summary of Financial Results for First Two Quarters of Term Ending December 2021
P/L for First Two Quarters of Term Ending December 2021

P. ①-4

Segment Results for First Two Quarters of Term Ending December 2021

P. ①-5, 6

B/S for First Two Quarters of Term Ended December 2020

P. ①-7l Main Activities in First Two Quarters of Term Ending December 2021
Becoming a Consolidated Subsidiary of Chubu Electric PowerP. 9, 10, 11, 12

Initiatives in Hokkaido

P. 13, 14, 15

Large-scale Urban Development Integrating “Retail, Office and Residence”

P. 16

Public REIT and Private REIT

P. 17, 18, 19

Acquisition of Shares of Picasso Co., Ltd. and Seven Other Picasso Group Companies(Making Them Subsidiaries of ES-CON JAPAN)

P. 20

Columbarium and Overseas BusinessP. 21, 22

ESG Initiatives

P. 23, 24, 25, 26

Section 2 (Supplementary Volume)
l Progress of Fourth Medium-Term Management Plan
― IDEAL to REAL 2023 ― (FY2021-FY2023)
Basic Policy, Performance Plan, Management Targets and Investment Plan

P. ➁-2, 3, 4, 5

Progress of Real Estate Sales BusinessP. ➁-6

Real Estate Leasing BusinessP. ➁-7

Condominium Sales Business Property Lineup

P. ➁-8, 9, 10

Commercial Development BusinessP. ➁-11

Logistics Development, Large-scale Urban Development and Land Readjustment Businesses

P. ➁-12ES-CON JAPAN Group’s Business Structure

P. ➁-13

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-2

Summary of Financial Results forFirst Two Quarters of Term Ending December 2021
(27th Term)

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-3

P/L for First Two Quarters of Term Ending December 2021
Ø As to 2Q of FY2021, both sales and profits decreased YoY. In FY2020, sales of around 20 billion yen from sales of properties were posted in line with the first
PO of ESCON JAPAN REIT Investment Corporation (EJR). In FY2021, sales to outside parties, excluding those in the condominium business, amounted toaround 3.1 billion yen. The condominium business has shown steady performance. (See p. 5 for details.)
Ø Both sales and profits also decreased against the initial forecast. The main factors for the decrease are the prior investment that would lead to an increase inearnings in the second half of the fiscal year onward in addition to the delay of delivery dates of condominiums/houses to the second half of the fiscal year.
Thus, there is no change to the full-year earnings forecast and dividend forecast for FY2021.
Ø Earnings per share in the current term decreased year on year due to the capital increase through third-party allotment implemented in April 2021 (which
increased the number of shares issued and outstanding by 26,619,000).
(Unit: Million yen)
Second Quarterof Term Ending
December 2021
(term underreview)

Second Quarterof Term Ended
December 2020(previous term)

Sales

24,98054,968Gross profit

7,119

Selling, general and administrative
expensesCompared toprevious term

Second Quarterof Term Ending
December 2021
(initial plan)-29,988-54.6%

29,400-4,420-15.0%

14,827-7,708-52.0%

4,557

4,231

326

7.7%

Selling expenses

2,051

1,791

260

14.5%

General administrative expenses

2,506

2,439

67

2.7%

2,561

10,595-8,034-75.8%

3,900-1,339-34.3%

641

523

118

22.6%

Ordinary income

1,934

10,070-8,136-80.8%

3,300-1,366-41.4%

Profit attributable to owners of parent

1,388

6,990

-5,602-80.1%

2,100

-712

-33.9%

Earnings per share in current term (yen)17.07

102.14-85.07-83.3%

25.82

-8.75

-33.9%

Operating profit
Interest expenses

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Amount ofincrease/decrease

Difference
from plan

Percentage vs.
initial plan①-4

Segment Results forFirst Two Quarters of Term Ending December 2021
Ø In the condominium business, the profit margin increased by 2.8 points YoY. Having sold 923 units on a contract basis against the planned number of units tosell for FY2021 of 1,062 units (86.9%, as of August 30), steady progress has been made. ( 1 )Ø Other sales posted sales of 3.1 billion yen, and profit margin was up 8 points partly due to the sale of land in Genbo-en, Koga-shi, Fukuoka, under the land
readjustment business. ( 2 )(Sale of properties to EJR and Chuden Real Estate Co., Inc. amounting to around 20 billion yen accounted for the most part of the sales in FY2020 ( 3 ), andthus both sales and profits decreased YoY.)Ø In the real estate leasing business, sales and profits were up 34.9% and 47.3%, respectively, partly due to the acquisition of “Fuji Grand Natalie,” a commercial
facility, and the opening of “tonarie CREO” at “tonarie Tsukuba Square,” a redevelopment project in front of Tsukuba Station in Ibaraki Prefecture. ( 4 )Ø In the real estate planning agency and consulting business, profits decreased due to the delay in sales for the columbarium and prior investment foradvertising expenses.
(Unit: Million yen)
Sales

4

Segment income
Second Quarter ofTerm Ending
December 2021
(term under review)

Second Quarter ofTerm Ended
December 2020(previous term)-59.3%

3,824

11,880-67.8%

-3.1%

2,664

2,230

19.5%

33,593-90.6%

1,159

9,649

-88.0%

3,427

2,541

34.9%

1,504

1,021

47.3%

Real estate planning agency and consulting business

296

151

96.0%

-309

85

Total

24,98054,968-54.6%

5,019

12,987

Second Quarter ofTerm Ending
December 2021
(term under review)

Second Quarter ofTerm Ended
December 2020(previous term)

Real estate sales business

21,25652,275

Condominium sales

18,09818,682Other sales

3,157

Real estate leasing businessCondominium sold/sales
Second Quarter of Term Ended December 2020(previous term)
Second Quarter of Term Ending December 2021
(term under review)

Progress in the number of units sold
Second Quarter of Term Ending December 2021
(term under review)YoY change

Results
Amount(million yen)

Units sold
437

18,682

4,275

445

18,0984,067

Planned number ofunits to sell for
FY2021

Number of units
delivered at end of
2Q (units)

1,062

445

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Second Quarter of Term Ended December 2020(previous term)
Second Quarter of Term Ending December 2021
(term under review)

11.9%

1

14.7%

Progress
41.9%-61.4%

Results

Non-condominium
segment profit margin

Price per unit Segment profit
margin(10,000 yen)

YoY change

Sales(million yen)Segment profit(million yen)Segment profit
margin2

33,593

9,649

28.7%

3,157

1,159

36.7%

3

Contracted units(including delivered units)
as of Aug. 30 (units)

1

923

Progress
86.9%

Other sales in second quarter ofterm ended December 2020(previous term)

Segment
Sales
profit margin(million yen) (million yen)

Properties sold toChuden Real Estate Co., Inc.

9,515

Properties sold to EJR

10,373

Total

19,888Properties• tonarie Yamato-Takada 50%• tonarie Toga-Mikita 50%
2,819 • Ikoma-gun commercial site
• Omihachiman-shi commercial site
• Hyuga-shi commercial site
• tonarie Yamato-Takada 50%
2,933 • tonarie Toga-Mikita 50%• Sakai-shi Daisen commercial site

5,752

①-5

Segment Results forFirst Two Quarters of Term Ending December 2021
Ø The completed condominium inventory stood at 236 units at the end of June 2021 (130 units as of August 30, 2021).
Condominium sales

Mirakita City Himeji
Le JADE Hama-Otsu
Le JADE Tsujido Higashikaigan
Grand Le JADE Shukugawa Residence

Total numberof units

Location

Himeji-shi, Hyogo
Otsu-shi, Shiga
Fujisawa-shi, Kanagawa
Nishinomiya-shi, Hyogo

Le JADE Nishinomiya Kitaguchi Hinokuchicho Nishinomiya-shi, Hyogo
Le JADE Utsukushigaoka

Yokohama-shi, Kanagawa

Le JADE Nishiakashi

Akashi-shi, Hyogo

Le JADE Yamato-Takada Ekimae

Yamatotakada-shi, Nara

Le JADE Mukonosohonmachi

Amagasaki-shi, Hyogo

Le JADE Suma Myohoji Ekimae

Kobe-shi, Hyogo

Le JADE Senri Aoyamadai

Suita-shi, Osaka

Le JADE Senri Furuedai

Suita-shi, Osaka

Le JADE Nagaikoendori

Sumiyoshi-ku, Osaka-shi

Le JADE Neyagawakoen

Neyagawa-shi, Osaka

Le JADE City Hyotanyama

Higashiosaka-shi, Osaka

Le JADE Ibaraki Higashichujo

Ibaraki-shi, Osaka

Le JADE Tennoji Katsuyama

Tennoji-ku, Osaka

Grand Le JADE Shirakabe Getsuronotei

Nagoya-shi, Aichi

OST Residence Karuizawa

Kitasaku-gun, Nagano

Closing inventory forterm ended December
2020

Inventory at end of
Second Quarter of TermEnding December 2021

Contract anddelivery progress
as of August 30

Inventory as of August 30(on a contract/delivery basis)

21
4
1
5
31
41
–
–
–
–
–
–
–
–
–
–
–
–
–
103

7
4
1
1
13
17
77
186
26
22
46
45
–
–
–
–
–
–
–
445

14
0
0
4
18
24
0
19
7
18
106
26
–
–
–
–
–
–
–
236

13
4
1
5
19
30
77
202
33
30
79
58
108
60
126
14
31
9
24
923

8
Sold out
Sold out
Sold out
12
11
Sold out
3
Sold out
10
73
13
Sold out before completion
Sold out before completion
Incomplete (contracts outstanding for 106 units)
Incomplete (contracts outstanding for 26 units)
Incomplete (contracts outstanding for 8 units)
Incomplete (contracts outstanding for 9 units)
Incomplete (contracts outstanding for 2 units)130

143 (67 units)*1
51
51
13
94
90
77
205
33
40
152
71
108
60
232
40
39
24 (18 units)*2
33 (26 units)*3

Total

Other sales
Genbo-en, Koga-shi, Fukuoka
Hiratsukamatukazecho
Aoyamadai, Suita-shi (commercial)
Other

Real estate planning agency andconsulting business(Major projects)
Ryomon(Sale and management of columbarium
permanent use rights)(Unit: Units)

Number of units
delivered in First Two
Quarters of TermEnding December 2021

*1 Includes 143
residential units
and nine unsold
units.
Based on our
50% share, thisis equivalent toa total of 67
units.
*2 Based on our
75% share, thisis equivalent toa total of 18
units.
*3 Based on our
80% share, thisis equivalent toa total of 26
units.

Type

Business scheme

Sales(million yen)

Leasing business(major owned properties)
Kansai Medical University Kuzuha Hospital

Hirakata-shi, Osaka

Fixed asset

Senriyamanishi, Suita-shi (Commercial)

Suita-shi, Osaka

Fixed asset

Oh!Me Otsu Terrace

Otsu-shi, Shiga

Fixed asset

tonarie Utsunomiya

Utsunomiya-shi, Tochigi

Fixed asset

tonarie Yokkaichi

Yokkaichi-shi, Mie

Fixed asset

Lions Square Kawaguchi

Kawaguchi-shi, Saitama

Current asset (for sale)

tonarie CREO

Tsukuba-shi, Ibaraki

Current asset (for sale)

tonarie Q't・toanrie MOG

Tsukuba-shi, Ibaraki

Current asset (for sale)

KoLuTeNa I

Nishi-ku, Sapporo-shi

Current asset (for sale)

tonarie Fujimino

Fujimino-shi, Saitama

Current asset (for sale)

Nakasu, Hakata-ku (Hotel)

Hakata-ku, Fukuoka-shi

Current asset (for sale)

Nishi-Shinsaibashi, Chuo-ku (Hotel)

Chuo-ku, Osaka

Current asset (for sale)Land planning

Sale

1,874

Land for detached house

Sale

107

Revenue-generating real estate

Sale

226

–

–

949

Sales (million yen)
Second Quarter of Term Ending Second Quarter of Term Ended
December 2021
December 2020
(term under review)(previous term)

109–

Other (Sales of optional items at ELS, etc.)

186

151

Total

296

151

Exterior view of Ryomon (columbarium)

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Location

Possession status①-6

B/S for First Two Quarters of Term Ending December 2021
Ø Strengthened capital through third-party allotment. Equity ratio increased by 5.8 percentage points (25.8%→31.6％) ( 1)
Ø The increase of 2.8 billion yen in fixed assets is due to the acquisition of a commercial facility, “tonarie Yokkaichi,” etc. ( 2 )Ø The average interest rate has remained at 0.8% since FY2020 thanks to the business partnership with the Chubu Electric Power Group. ( 3 )Ø In July 2021, newly acquired a rating of A from JCR and a rating of A- from R&I. ( 4 )(Unit: Million yen)
Second Quarter ofTerm Ending
December 2021
(term under review)

Term Ended
December 2020(previous term)

153,313122,117

31,196

Cash and deposits

37,342

23,87013,472

Real estate for sale

19,164

6,262

12,902

Real estate for sale in process

84,14682,316

1,830

30,17427,306

16,922

14,876

2,046

349

403

-54

Current assets

Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

Increase/decrease2

Ø Acquisition of Credit Ratings
Rating instituteRating scope

RatingRating direction

R&I

Issuer rating

A－

StableJCR

Long-term Issuer Rating

A

Stable412,903

12,026877

149,423

34,164(Unit: Million yen)

Current liabilities

49,56939,813

Increase/decrease
9,756

Short-term loans

4,304

2,907

1,397

Current portion of long-term loans

32,90426,093

6,811

10

230

-220

Non-current liabilities

76,19370,982

5,211

Long-term loans

74,116

69,274

4,842

Total liabilities

125,762

110,795

14,967

Total net assets

57,824

38,627

19,197

Total liabilities and net assets

183,587

149,423

34,164Current portion of bonds

1
Equity ratio

OthersResidential leasing

Term Ended
December 2020(previous term)

31.6%
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25.8%

+5.8
percentage points

3(Unit: Million yen)

2,868

183,587

Second Quarter ofTerm Ending
December 2021
(term under review)

Ø Amount of Newly Procured Funds/Trend of Annual
Average Interest Rate

Ø Inventory

Hotel

3% 6%

30%

7%

Inventory
at end of second
quarter of term ending
December 2021

Commercial,
etc.

Breakdown of
inventoryØ Trend of Assets and Equity Ratio
Condo-minium

103.3 billion yen(Unit: Million yen)

54%

(Unit: Million yen)2021 2Q
2020
end
end

Condominium
Commercial,
etc.
Hotel
Residential
leasing
Others55,55650,88031,49225,992

2,758

2,326

5,949

4,072

7,552

5,306

Total

103,307

88,576①-7

Main Activities inFirst Two Quarters of Term Ending December 2021
• Becoming a Consolidated Subsidiary of Chubu Electric Power• Initiatives in Hokkaido• Large-scale Urban Development Integrating“Retail, Office and Residence”• Public REIT and Private REIT
• Acquisition of Shares of Picasso Co., Ltd. and Seven Other PicassoGroup Companies (Making Them Subsidiaries of ES-CON JAPAN)• Columbarium and Overseas Business• ESG Initiatives

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①-8Becoming a Consolidated Subsidiary of Chubu Electric Power― Status of Demonstration of Synergy with the Group ―Ø With the conclusion of a capital and business partnership agreement in August 2018, we became a member of Chubu Electric Power Group (an equitymethod affiliate). In April 2021, we became a consolidated subsidiary of Chubu Electric Power with the capital increase through third-party allotment. While
procuring around 20.4 billion yen, we are set to demonstrate further synergy.

Concluded a capital and business partnership agreement with Chubu
Electric Power.
►Became an equity-method affiliate of the company.
Opened Nagoya Branch.
►Positioning the Chubu area as a priority business area,
started sales activities

Ratio ofvoting rights held by
Chubu Electric Power
August
2018

33.3%

March
2019
Chuden Real Estate x EJR x EAM
Concluded support agreements(Wide range of support including warehousing)

June
September
Launched the first joint project with Chuden Real Estate.
►Started joint projects in the Chubu and Kansai areas(See p. 11 for details).
Implemented capital increase through third-party allotment with Chubu
Electric Power as the allottee.
►Became a consolidated subsidiary of the company.
Positive effects from becoming a consolidated subsidiary of Chubu Electric Power, whichboasts strong corporate credit standing(1) Enable diversification of fundraising methods and reduce fundraising costs by improving
our creditworthiness.
(2) Enable participation in large-scale urban-development projects through further business
partnerships with the Chubu Electric Power Group, which will also provide increased
access to real estate information.

December
ES-CON JAPAN → Chuden Real Estate Sold commercial facilities
and commercial leaseholds
5 projects in total for a total of 9.5 billion yen

February
2020

April
2021

51.5%

June

Procurement of around 20.4 billion yen
In the fourth medium-term management plan, we have set numerical targets of raising theratio of segment income from the real estate leasing business to 26% or more by FY2023 andincreasing consolidated net sales to 110 billion yen by FY2023. In order to achieve the targets,the fund will be used for part of the real estate business fund based on the expenditure plan
shown in the table below.
Specific use
Purchase and development ofrevenue-generating real estate

Amount(millions of yen)

Planned timing of payment

30,000Mar. 2021 to Dec. 2021

Purchase and development ofrevenue-generating real estate

40,000Jan. 2022 to Dec. 2022

Purchase and development ofrevenue-generating real estate

60,000Jan. 2023 to Dec. 2023

Fundraising method

Capital increase,loans and funds on
hand

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Acquired a first business site in the Chubu area
(Grand Le JADE Shirakabe Getsuronotei)

July

Selected as the preferred candidate contractor to operate
the site of 20th Asian Games Aichi-Nagoya 2026 Athletes’
Village after the games.
►Next-generation approach to community development(See p. 12 for details).
Established TSUNAGU Community Farm LLC.
►To construct Techno Farm Fukuroi, the world’s largest
vertical farm capable of producing 10 tons of produce
per day (See p. 12 for details).

AugustTo demonstrate
further synergy
such as realization ofa “new form of community.”

Chuden Real Estate → EJR Sold commercial facilities andcommercial leaseholds①-9Details and Progress ofCapital and Business PartnershipØ We concluded a capital and business partnership agreement with Chubu Electric Power in August 2018, and it has steadily generated synergies. With theconclusion of a new capital and business partnership agreement in February 2021, we aim for further synergy to be demonstrated.

Promoting joint
projects

Five joint projects are already underway with Chuden Real Estate.
Four projects in the Chubu area: Shirakabe, Shirakabe II,
Nishi-Ichinomiya, Kakegawa
One project in the Kinki area: Fujishirodai, Suita-shi

1 Enhancing joint efforts related to energy
supply and facility construction

Mutuallycomplementarybusiness areas

Nagoya Office opened in March 2019.
Business developed in both regions (Chubu and Kansai)

Making effective use ofreal estate owned by the
Chubu Electric PowerGroup

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

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

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

Prospective buyers
for our real estatedevelopment
projects

Exchange ofhuman resources

Respect forautonomy

New capital and business partnershipagreement(concluded on February 24, 2021)

Sale of properties owned by the Company to Chuden Real Estatethrough warehousing method

2 Joint research and joint implementation inbusinesses related to next-generation
smart houses, connected homes, and soforth
3 Further enhancing the partnership with
Chuden Real Estate, a member of the
Chubu Electric Power Group
4 Enhancing partnerships related to theeffective utilization and development of
unused or underused land belonging to the
Chubu Electric Power Group
5 Joint initiatives in businesses that contributeto society, including urban development(In September 2019, support agreements were concluded among three companies,
Chuden Real Estate, EAM and EJR.)
Exchange of human resources has been implemented, including the Company
seconding its employees to Chuden Real Estate from April 2019 as well as Chuden
Real Estate seconding its employees to our group company.
One person from Chubu Electric Power has served as director since March 2019.

Continued business development utilizing the Company’s
characteristic speed

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Collaboration with Chubu Electric Power
has also started(1) Establishment of TSUNAGU Community Farm
LLC that constructs and operates vertical farms(2) Selection as the preferred candidate contractor
to operate the site of 20th Asian Games AichiNagoya 2026 Athletes’ Village after the games①-10

Business Development in the Chubu Area
(Within the jurisdiction of Chubu Electric Power)Ø We are conducting four joint projects with Chuden Real Estate in the Chubu area.
Ø Most recently, we also started to engage in new fields, such as the construction/operation of vertical
farms (Fukuroi-shi, Shizuoka) and the large-scale urban development (Minato-ku, Nagoya-shi).

６ Kaburagicho, Gifu-shi, Gifu

Condominium

8-chome,7 Koganemachi
Gifu-shi, Gifu

Condominium

OST Residence Karuizawa

5 Karuizawa-machi, Kitasaku-gun, Nagano

Condominium

NaganoGifu
Rendering of completed vertical farm (exterior view)
Grand Crea Ichinomiya

3 Ichinomiya-shi, Aichi

Condominium

8 Naka-ku, Nagoya-shi

Condominium

Joint project with
Chuden Real Estate

Aichi

Mie

10 Minato-ku,
Nagoya-shi
Commercial facility

tonarie Yokkaichi
Acquired in January 2021

Shizuoka

Nagoya Office

9 Fukuroi-shi, Shizuoka

Establishment of a new company, TSUNAGU Community Farm LLC

4 Kakegawa-shi,
Shizuoka

1 Shirakabe, Higashi-ku, Nagoya-shi
2 Shirakabe II, Higashi-ku, Nagoya-shi

Condominium

Joint project with
Chuden Real Estate

Condominium
Joint project with
Chuden Real Estate

Large-scale urban development

A consortium of businesses led by Chubu Electric Power ofwhich ES-CON JAPAN is a member was selected as thepreferred candidate contractor to operate the site of 20th AsianGames Aichi-Nagoya 2026 Athletes’ Village after the games

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Construction/operation of vertical farms

Grand Le JADE Shirakabe Getsuronotei

Le JADE Kakegawa Ekimae
Grand Le JADE Shirakabe Rinzennotei①-11Topics on Projects Related to Chubu Electric Power GroupØ Launched large-scale urban development and construction/operation of vertical farms as joint projects with the Chubu Electric Power Group.
Ø Will work on redevelopment in central Tokyo and station-front areas, large-scale urban development, and realization of a “new form of community” throughdemonstration of further synergy.

Vertical Farming Business(Joint project with Chubu Electric Power and Spread Co., Ltd.)Suita-shi Fujishirodai 5-chome Project(Joint project with Chuden Real Estate)Ø On May 25, 2021, we concluded an investor agreement regarding the establishment of TSUNAGU Community Farm LLC,
which will construct and operate vertical farms, with Chubu Electric Power and Spread Co., Ltd. (hereinafter “Spread”).
Ø In order to respond to the growing consumer need for food ‘safety and security’ and solve social issues such as decrease in
the number of farmers owing to the declining birthrate and aging population, and food supply instability due to frequentabnormal weather events, plans to start construction of Techno Farm Fukuroi, the world’s largest automated vertical farm,utilizing fully artificial light and capable of producing 10 tons of lettuce per day.

Ø Engaged in real estate development, including condominium development and commercial
development, on the former site of the National Cerebral and Cardiovascular Center (site area:
65,972.54 m²), of which nearest station is Kita-Senri Station on the Hankyu Senri Line.

Condominium
Condominium

Rendering of completed seedling nursery

Rendering of completed Techno Farm Fukuroi

Detachedhouse

Detached
house

House for the elderlywith services

Production to start from January 2024

Project for the Operation of the site of 20th Asian Games Aichi-Nagoya 2026
Athletes’ Village After the Games(ES-CON JAPAN participating as a member of a consortium of businesses
led by Chubu Electric Power)

Commercial

Commercial

Detachedhouse
Detached
house

Plan drawing of future land use/arrangement of facilities

Ø A consortium of businesses led by Chubu Electric Power was selected as the preferred candidate contractor for themultipurpose development project utilizing the land for the 20th Asian Games Aichi-Nagoya 2026 after the games, which are
to be held at the former site of the Nagoya Racetrack.
Ø 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. (ES-CON JAPAN is scheduled to develop
retail complexes.)
Companies

Main roles

LeaderChubu Electric Power Co., Inc.

Project planning, area management

Members

Chuden Real Estate Co., Inc.
ES-CON JAPAN Ltd.
Yahagi Real Estate Co., Ltd.
Daiwa House Industry Co., Ltd.
Mothers Inc.
Doho University, Doho Group of Educational Institutions

Development and operation of dormitory for international students, development of kindergarten
Retail complex development
Condominium development
Detached house development
Development and operation of a welfare facility complex
University development and operation

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Project overview①-12

Hokkaido Ballpark F. Village Urban Development ProjectØ In January 2020, we started to participate in the development of the area around the new stadium for the Hokkaido
Nippon-Ham Fighters and have acquired naming rights.
→ The name of the new stadium has been decided to be “ES CON FIELD HOKKAIDO.”<Stadium overview>• Name:ES CON FIELD HOKKAIDO• Total floor area: Approx. 50,000 m²• Seating capacity: Approx. 35,000• Floors:
Two underground (field) floors andsix aboveground floors (70 m height)• Specifications: Retractable roof, natural turf field“Hokkaido Ballpark F. Village (total development area: approx. 36.7 ha)”centering on the new stadium is a large-scale development area withconstruction of a new station also planned. We will be participating in theurban development of this area by engaging in real estate development on
the land of approximately 9,400 m2 adjoining the stadium.

About Hokkaido Ballpark F. Village
Baseball stadium(Front left: outfield/Back right: home base side)<Location>
Located halfway between JR Sapporo Station and New Chitose Airport
From JR Sapporo Station: approx. 16 min. by train/approx. 30 min. by car
From Shin Chitose Airport: approx. 20 min. by train/approx. 30 min. by car<Nearest station (access point)>
Approx. 22-minute walk from Kitahiroshima Station
Approx. 2-minute walk from a new station planned near the stadium
Planned as a space like a complete town with a range of facilities
where people can enjoy various activities in the area that offers
nature experience typical of Hokkaido.

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Site for condominium

Present state of F. Village (photo taken in July 2021)
The construction work of the stadium is about 40% complete.

①-13

Le JADE Hokkaido Ballpark
Ø Announced plans for the opening of our first new condominium project in Hokkaido, Le JADE Hokkaido Ballpark, as part of Hokkaido Ballpark F. Village in
Kitahiroshima City, Hokkaido.

Concept for the property
01: From here
Taking the lead in community development through our first project at F VILLAGE

02: First Le JADE
The first presentation of Le JADE brand quality to the people of Hokkaido

03: Future oriented
Future-oriented quality that proposes new ways of living with an eye on the future

Located next to the new ballpark’s outfield stands, making theballpark atmosphere a familiar presence for residents➡ Provides a new way of living, which is “living in a ballpark”
Rendered image of completed rooftop common terrace

Name

Le JADE Hokkaido Ballpark

Location

Part of 228 Kyoei, Kitahiroshima City,
Hokkaido
About five minutes by car or 22 minutes’ walk (1,750 m)from Kitahiroshima Station on the JR Chitose Line

AccessZoningRendered image of completed exterior
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Commercial, quasi fire-protection district

Rendered image of completed warm living room

Total units

118

Floorplans

One to three bedrooms, living room,
dining room, kitchen

Unit size

43.43 m² – 137.55 m²

Date of completion

Early March 2023 (planned)

Building/landcoverage ratio

53.41% (statutory: 80%)

Staring date ofoccupancy

Late March 2023 (planned)

Floor area ratio

343.18%（statutory: 400%）

Developer (seller)

ES-CON JAPAN, Ltd.

Building area

1,868.06 m²

Design, supervision

Asai Ken Architectural Research Inc.

Total floor area

14,760.30 m²

Contractor

Structure, size

Reinforced concrete, partial steel-frame
construction, 14 aboveground floors

Broker

NAKAYAMAGUMI Co., Ltd.
Risepartners Co., Ltd.

①-14

Kitahiroshima Station“West Exit Area Revitalization Project” in Hokkaido
Ø In March 2021, we concluded a partnership agreement for Kitahiroshima Station “West Exit Area Revitalization Project” in Hokkaido→ We will pursue development around Kitahiroshima Station, the access point to F. Village, along with the development in Hokkaido Ballpark F. Village.

Concept“Kitahiro Hometown BASE
―Building a hometown facility that draws people together in Kitahiroshima, including community residents, businesses, tourists, and fans―”

Rendering of the completed station area

Sapporo Station

Kitahiroshima Station

New Chitose Airport

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

JR Kitahiroshima Station
is located between JR
Sapporo Station and
New Chitose Airport, andis highly convenient as it
takes only around 20
minutes from the airport
and around 16 minutes
from Sapporo Station bytrain.

Rendering of the completed commercial facility in front of the station

West Exit Area Revitalization Project (City-owned Land A-D)

Location

A: Plaza in front of the station
B: 2-1 Sakaecho, Kitahiroshima
C: 1-5-2 Hokushincho, Kitahiroshima
D: 1-1-2, 55-1 Hokushincho, Kitahiroshima

Area

A: 11,509.58 m²
C: 3,395.02 m²

B: 5,514.00 m²
D: 3,396.00 m²①-15

Tsukuba Station Area: Large-scale Urban Development Integrating“Retail, Office and Residence”
Tsukuba (Tsukuba-shi, Ibaraki) Project (integrated development of commercial facility in the Tsukuba station area and the condominium area)
Seibu Tsukuba, a large-scale commercial facility in front of the station, closed in February 2017, and Aeon Tsukuba Ekimae closed in January 2018, so thearea around the station is in need of urban development and revitalization.
We acquired three facilities, CREO, Q’t and MOG, and have been promoting the integrated development of these facilities in the area around Tsukuba
Station. Along with the commercial facility, we have developed the “Le JADE Tsukuba Station Front” condominium among other redevelopment projects inthe area around the station, which contributes to local revitalization and benefits local residents.

tonarie CREO

tonarie CREO

Le JADE Tsukuba
Station Front

Le JADE Tsukuba

tonarie MOG

tonarie Q’t
Tonarie Q’t

tonarie MOG

Tsukuba Station
Exit A5

RetailPhase 1: Opening on May 19, 2021
Food shops such as a delicatessen and bakery opened on thefirst floor of tonarie CREO with Ibaraki’s first Lopia as the mainsupermarket.

OfficePhase 2: Opening on July 22
Shops on the second and third floors opened. Altogether 8 shops(K's Denki, a home appliance store; DAISO, a100 yen shop; andothers) including those in tonarie Q’t and tonarie MOG opened.

tonarie CREO converted the fourth to sixth floors of the former
Seibu Tsukuba to offices. Tenants have moved in sequentiallysince in November 2020.

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Residence

Fall 2022
Grand opening (planned)“Le JADE Tsukuba Station Front”
The first floor is directly connected to tonarie CREO on the adjacentland, offering shopping convenience and traffic convenience as well(only 3 minutes to the station). All of 218 units were sold (on acontract basis) in four months after the start of the sale.

①-16

ESCON JAPAN REIT Investment Corporation (EJR)
Execution of Second PO
Ø Conducted two POs (in February 2020 and August 2021) since listing in February 2019. The asset size has expanded to approx. 69.6 billion yen.

In August 2021, EJR conducted the second PO (total issue value of approx. 9.2 billion yen).
Portfolio

Acquisition price

When listed (Feb. 2019)25
properties(Commercial facilities and commercial leaseholds)

41,607 million yen

1st PO (Feb. 2020)

3
properties

tonarie Yamato-Takada
tonarie Toga-Mikita
LIFE Daisen

10,373 million yen

2nd PO (Aug. 2021)

10
properties*(Commercial facilities and commercial leaseholds)
Acquisition from ES-CON JAPAN and Chuden Real Estate

17,624 million yen

Total

38
properties

Commercial facilities / commercial leaseholds*See the next page for details.

69,604 million yen*Excluding the potion acquired from Chuden Real Estate (tonarie Toga-Mikita (50% ownership)) because EJR has
already acquired the 50% ownership.

Three distinguishingfeatures of EJR

Building a portfolio centered on commercial facilities that people
depend on in their daily lives
Areas targeted for investment: Four major urban areas(Tokyo metropolitan area, Kinki area, Chukyo area, Fukuoka area)
Investing in highly stable leasehold (land components of fixed-termleaseholds for business use)
Investment targets:
approx. 50% leasehold, approx. 50% land and buildings

External and internal growth leveraging the advantages of the realestate development capabilities and strength in management
provided by comprehensive developer
ES-CON JAPAN, with support from Chubu Electric Power

Medium-term target: 100 billion yen
Aim for further growth

Investing proactively in leasehold of commercial facility sites, with a focus on the benefits and advantages ofleasehold, to build highly stable portfolios

Investing proactively in leasehold of commercial facility sites, with a focus on the benefits and advantages ofleasehold, to build highly stable portfolios[External growth]Targeting steady external growth by leveraging the various real estate development capabilities of ES-CON JAPAN as "Life Developers"
active in developing the places where people live and real estate information contributed by the Chubu Electric Power Group[Internal growth] Targeting steady internal growth leveraging the various real estate management capabilities of the ES-CON JAPANGroup and the Chubu Electric Power Group's expertise with eco-friendly technologies and lowering energy costs

Rating Acquired from Rating and Investment Information (R&I)
Rating instituteRating scope

RatingRating direction

R&I

Issuer rating

A−

StableCopyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Steadily expanded
the asset size

Status of DBJ Green Building Certification Earned
tonarie Yamato-Takada, tonarie Toga-Mikita, tonarie Minamisenri, tonarie Seiwadai, andAsumigaoka Brand-New Mall, which are owned by EJR, earned DBJ Green Building
certification in July 2020, February 2021, and July 2021, each being recognized as real estatewith consideration for the environment and society.

①-17*1) Amounts are truncated and fractions rounded off.
*2) Occupancy rates and years remaining on lease
as of May 31, 2021
*3) Appraisals are the most recently acquired.

EJR Portfolio
Number ofproperties

Total
acquisition priceTotal
appraised value

Occupancy rate

Appraised NOI
yield

Amortized
appraised NOI yield

Years remaining
on lease

38 properties

69.6 billion yen

74.9 billion yen

99.6%

5.1%

4.6%

11 yearsCommercial leasehold included

31.1 billion yen

Leasehold ratio

44.7%

Hokkaido ▶

Kanto ▶

YAMADA DENKI Tecc Land Sapporo Shiroishi

Asumigaoka Brand-New Mall

tonarie Yamato-Takada (50% stake)

TSUTAYA Sakai-Minami shop (leasehold)

K's Denki Oyumino shop (leasehold)tonarie Toga-Mikita

Nishishiroi Ekimae Plaza

Kusuri no Aoki Ikaruga (leasehold)Nitori Tsuchiura shop (leasehold)Nitori Imaichi shop (leasehold)Drug Yutaka Mukokamiueno (leasehold)Chubu ▶

Kinki ▶

Pare Marche Nishiharu

TRIAL Omihachiman (leasehold)tonarie Seiwadai

WELCIA Amagasaki Mukomotomachi (leasehold)MaxValu Kikyogaoka Higashi shop
(leasehold)Cocokara Fine Neyagawakoen (leasehold)

Chugoku ▶

ENEOS Ikawadani SS (leasehold)

GEO Hikone Takamiya (leasehold)tonarie Minamisenri

Lamu Kitatsumori shop (leasehold)

Sanyo-Marunaka Mitani shop (leasehold)

LIFE Daisen (leasehold)

K’s Denki Nishi-Kobe shop (leasehold)

K’s Denki Kurashiki shop (leasehold)

Kyushu ▶

■ Change in Asset Size ■Fuji Grand Natalie

SUROY Mall Nagamine

Aim for further growth

Fukuoka Kasuga Project (leasehold)41.6 billion yen

51.9 billion yen

69.6 billion yen

25 properties

28 properties

25物件
When
listed

281st
物件PO
After

38 properties
物件
After38
2nd
PO(Feb. 2019)(Feb. 2020)(Aug. 2021)

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

100
billion yen
Mid-term target①-18

Initiatives for Leasehold Condominium Development andPrivate REIT Formation
Ø We have established a total of 9 private investment funds since September 2020 and are investing in these funds (SPCs) as silent partners.
Ø Each SPC will grant priority negotiating rights on the projects to ES-CON JAPAN, and they will be exercised for ES-CON JAPAN Private REIT (tentativename), which is under preparation for establishment. The preparation has been progressing steadily.

17

1-minute walk from Kamikitadai
Station on Tama Toshi Monorail

6-minute walk from
Higashi-Nagasaki Station
on Seibu Ikebukuro Line2-minute walk from Toyoda Station
on JR Chuo Line

3

8
4

6

Tokyo

2-minute walk from Inagi Station
on Keio Sagamihara Line

3-minute walk from Kashiwadai
Station on Sotetsu Line58-minute walk from
Kawasaki Station on
Tokaido Main Line

Location

Site area

Total floor
area

Structure

Scale offunds
(million yen)

① Kamikitadai Ekimae
Development Project

Higashiyamato-shi,Tokyo894.34 m²

3,042.56 m²(planned)

Steel-reinforced concrete,
9 floors(planned)

1,500② Fujisawa Development
Project

Fujisawa-shi,
Kanagawa

1,119.13 m²

2,064.52 m²(planned)

Steel-reinforced concrete,
5 floors(planned)

1,210③ Keio Inagi Ekimae
Development Project

Inagi-shi,Tokyo

320.46 m²

1,506.18 m²(planned)

Steel-reinforced concrete,
7 floors(planned)

800④ Odakyu Isehara Ekimae
Sakuradai Development
Project

Isehara-shi,
Kanagawa

659.88 m²

4,001.36 m²(planned)

Steel-reinforced concrete,
14 floors(planned)

1,930⑤ Kawasaki Minamimachi
Residential Bridge PJ

Kawasaki-shi,
Kanagawa

264.85 m²

1,137.82 m²

Steel-reinforced concrete,
11 floors820⑥ Seibu Ikebukuro
Higashi-Nagasaki PJ

Toshima-ku,
Tokyo

676.15 m²

3,780.59 m²

Steel-framed reinforced
concrete, 10 abovegroundfloors, one underground floor

1,620⑦ Chuo Line Toyoda PJ

Hino-shi,Tokyo

246.92 m²

1,844.77 m²

Steel-reinforced concrete,
11 floors

1,200⑧ Sotetsu Kashiwadai PJ

Ebina-shi,
Kanagawa

1,214.07 m²

2,788.66 m²

Steel-reinforced concrete,
8 floors

1,460⑨ Yokohama Bandobashi
Development PJ

Yokohama-shi,
Kanagawa

362.45 m²

2,077.37㎡(planned)

Steel-reinforced concrete,
10 floors

1,200

Yokohama

2-minute walk from Isehara Station
on Odakyu Odawara Line95-minute walk from Bandobashi Station
on Yokohama Municipal Subway BlueLine

2
9-minute walk from Fujisawa Station on JR Tokaido Line/Odakyu Line
10-minute walk from Fujisawa Station on the Enoshima Electric Railway

We have also acquired business sites in Taito-ku, Tokyo; Suita-shi, Osaka; and Yamato-shi,
Kanagawa. We are currently developing leasehold condominiums considering their future
inclusion in the portfolio of ES-CON JAPAN Private REIT (tentative name).

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-19Acquisition of Shares of Picasso Co., Ltd. and Seven Other Picasso Group Companies Involved
in Real Estate Leasing Business (Making Them Subsidiaries of ES-CON JAPAN)
Ø We will acquire 100% of shares in Picasso Co., Ltd. (hereinafter “Picasso”), Yuki Sangyo Co., Ltd. (hereinafter “Yuki Sangyo”), and six group companies withthe goal of securing a stable revenue stream from rental properties.
Ø Founded in the city of Osaka in 1991, Picasso (alongside Yuki Sangyo and the six group companies) is active in real estate leasing, chiefly in the Kansai
region. It owns numerous outstanding revenue-generating properties, including apartments and office buildings.
Ø One of the business strategies in our fourth medium-term management plan aims to transform and advance our revenue structure into a more sustainable
and stable one by shifting from a revenue structure based on flows to one based on stock, and the acquisition of their shares will accelerate such initiative.
(Related information on pp.5 and 7 in the Supplementary Volume (2))
Trade namePicasso Co., Ltd.

Yuki Sangyo Co., Ltd.

Address

5-7 Doshomachi 1-chome, Chuo-ku, Osaka

18-18 Fukushima 6-chome, Fukushima-ku, Osaka

Title/name of representative

Representative Director Hiroaki Wakabayashi

Representative Director Yoshihide Wakabayashi

Business

Real estate leasing, real estate management,
real estate investment, etc.

Real estate leasing, real estate management,
real estate brokerage, etc.

Capital90 million yen

90 million yen+ the six group companies

Date of establishment

May 23, 1991

March 18, 1996

Venus Corporation Co., Ltd.
Cubic Co., Ltd.
Santa Co., Ltd.
Hirano Bussan Co., Ltd.
Aria Co., Ltd.
Eikaku Y.K.

Business results of company over last three years(Unit: Million yen)

Fiscal year end

April 2019

April 2020

April 2021

August 2018

August 2019

August 2020

Net sales

3,110

3,941

6,076

2,287

2,262

3,105

Ordinary income

196

528

1,637

242

285

481

Net profit

184

313

1,039

153

158

308

Net assets

3,038

3,352

4,391

1,126

1,285

1,593

Total assets

23,692

23,257

21,91815,866

16,745

16,535

Total acquisition price:29.9 billion yen* As of August 31
The actual price will be finalized by the dateof the execution of the stock transfer.

This will enhance the leasing business while securing stable revenues to rapidly promote “transformation of ourrevenue structure,” and thus will contribute dramatically to the sustained growth of our Group.
Date of execution: August 31, 2021

Date of share transfer: October 29, 2021 (planned)

Impact on ES-CON JAPAN’s consolidated results for the current fiscal period: To be announced promptly after the date of share transfer
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-20

Launch of Sale and Management of Columbarium (Ryomon) Permanent Use Rights(Real Estate Planning Agency and Consulting Business)
Ø In view of the fact that it is particularly difficult to obtain graves in central Tokyo, ES-CON JAPAN launched this business in October 2020 in an effort to solve
problems facing modern society and to secure revenue by expanding the scope of the real estate business. Started sales in March 2021.
Ø Operations of the columbarium are overseen by Religious Corporation Zuikein. Ryomon Co., Ltd., a consolidated subsidiary of ES-CON JAPAN, is entrustedwith sales and management of the columbarium to handle all related business affairs.

■ Overview of Columbarium (Ryomon)
Name

RyomonLocation

5-1-4 Minami-Azabu, Minato-ku, Tokyo

Access3-minute walk from Hiroo Station on the Tokyo Metro Hibiya Line

Site area

861.36 m² (260.86 tsubo)

Structure/scale

Steel frame, partially reinforced concrete, 7 floors above ground, 1 below

Number of chambers

9,999

Facility overview

Private visit-type automatic transfer columbarium

Sales launch date

March 17, 2021

Business launch date

October 30, 2020

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Left: Columbarium “Ryomon” building exterior

Middle: Third floor atrium

Right: Visitation room “Amamitsuki”

RyomonTokyo Metro Hibiya Line
Hiroo Station(Ryomon)①-21

Overview of the Overseas BusinessØ We have upheld reinforcement of initiatives for overseas business as “taking on the challenges of new business domains,” which is one of the management
strategies in the fourth medium-term management plan. In line with such, we have participated in the following businesses.

Investment and business participation in value-add project of “Waikiki Galleria Tower,” a commercial
complex in Hawaii
Ø The property is located in the resort area of Honolulu, where it is the center of hotels and commerce, facing Kalakaua Avenue, the main street of Waikiki, andsurrounding areas are highly scarce locations with luxury brand stores.
Ø Considering that the number of tourists in Hawaii has shown a recovery trend reaching the pre-pandemic (FY2019) level recently despite the global spread of
COVID-19 since 2020, ES-CON Japan has decided to invest, through ESCON USA III, LLC (subsidiary), in WGT, L.P., a special-purpose entity formed byBlackSand Capital, LLC, a real estate private equity firm, to acquire the property and to replace and change the use of the tenant in order to increase thevalue of the property, and entered into a strategic advisory contract.

By concluding the strategic advisory contract, ES-CON Japan will not
only make investment, but also provide advice and support in thedevelopment, design, operation and management of the entire property
as a strategic international development advisor in this project.

Exterior view of Waikiki Galleria Tower, a complex comprised of commercial facilities and offices

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Property name

Waikiki Galleria Tower

Address2222 Kalakaua Ave, Honolulu, Hawaii 96915 USA

Application (Current)

Commercial facilities (1st and 2nd floors), Parking lots (3rd to 5th
floors), Offices (6th to 16th floors)

Site area

4,315.90 m²

Total floor area

23,318.65 m²

Year of completionof the building

Built in 1966 (Large-scale repairs completed in 2001 and 2009)

Planned investment
amount by ES-CON JAPAN

US$ 5.0 Million (Approximately 550 million yen)

Principal Entity

BlackSand Capital, LLC
Representative: Bert “BJ” A. Kobayashi, JR (Chairman, CEO and a founder)
Address: 2270 Kalakaua Ave., Suite 1788, Honolulu, HI 96815

Investment period

5 years from the last closing date (planned)①-22

ESG Initiatives
Ø Upholding “promotion of ESG” in the management strategies in the fourth medium-term management plan,we aim to contribute to building a sustainable society through promotion of ESG management.
Ø Led by the ESG Promotion Group, specific initiative policies are formulated and actively carried out while
coordinating with related departments.
The ESG Promotion Group currently has a total of 19 members.

ESG Management
Promotion Structure
Board of Directors

ESG Management Philosophy

President and Representative Director

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

Nomination andRemuneration
Committee

President’s Office

ESG Promotion GroupE TeamBasic ESG Policy
We strive to grow as a company needed by society by promoting ESG initiatives in strict compliance with laws, regulations, andour pledges related to the environment, society, and self-governance.

ES

1. Creating new environmental value through nextgeneration urban development and other measures torealize a carbon-neutral society by 2050

1. In addition to contributing to community vitality throughurban development, creating new futures by promoting
local community building

2. Promoting real estate development and corporate
activities that give full consideration to the environment

2. In addition to developing workplaces where employees
can demonstrate their abilities to the fullest while doing
rewarding work, promoting diversity to enable diverse
human resources to thrive

3. Taking on the challenges of new business domains
based on the key theme of the environment, thereby
creating both environmental value and business value

3. Supporting safe and comfortable lives in our many
communities by contributing to solutions to social
challenges posed by health and welfare, including low
birth rates and aging populations

S TeamHealth & Culture
Fostering TeamG TeamCoordinate

Coordinate

Related departments

G
1. Enhancing timely, appropriate, and fair disclosure ofmanagement information
2. Promoting governance structures capable of securing
management stability, soundness, and transparency
3. Enhancing risk management capabilities in response
to growing risks accompanying business expansion
and diversification
4. Pursuing business activities based on the Corporate
Ethics Charter and respect for the human rights of all

4. Promoting business development to achieve SDGs on a
global basis through international business development

Contributing to a sustainable society
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-23

Details of ESG Initiatives

Environmentl Promotion of ZEH-M (for condominiums)→ Le JADE Okurayama (Yokohama-shi, Kanagawa) has been selected. Le JADE Yao Sakuragaoka (Yao-shi, Osaka) is alsoscheduled to acquire the certification.
l Conducting environmentally and socially friendly real estate research and development through industry-academia collaborationand collaboration with other industries→ Currently conducting joint research with Kozo Takase’s laboratory at the Tokyo University of Science. Working with an aim tolower environmental impact and realize a sustainable society through development of eco-friendly housing complexes.
l Acquisition of DBJ Green Building certification and CASBEE real estate certification by neighborhood shopping centers.
l Improvement of local environment through development of detached houses surrounded by nature and condominiums that areopen to local communities.

Exterior view of Le JADE Okurayama

Sociall Contribution to regional revitalization and community creation through development of “tonarie” neighborhood shopping centers.
l Promotion of active participation of diverse personnel, including employment of people with disabilities at Cordiale Farm.
l Implementation of dementia support trainingl Initiatives at the vertical farm (LLC established by Chubu Electric Power and Spread)l Established ES-CON Global Works Ltd. to support employment of foreign nationalsl Support for WT1 cancer vaccine (a cancer immunotherapy) (2019 and 2021) and for iPS cell research (2020 and 2021), etc.
l Invested in Ryukyu Football Club Co., Ltd., which operates FC Ryukyu, a J2 professional soccer team.

Exterior view of LOGITRES Tojol Contributing to revitalization and development of the entire local community through urban development (e.g., Hokkaido Ballpark F.
Village, a multipurpose redevelopment project in Tsukuba-shi, Ibaraki)l Establishment of “Health & Culture Fostering Team”

Governancel Conducting timely disclosure of business activities and management status
l Establishment of Nomination and Remuneration Committeel Establishment of “Customer Service Committee”
Initiative of “Local Shopping District Supporting
People with Dementia” (tonarie Seiwadai)

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-24

ESG Initiatives (Helping to Build a Sustainable Society)
Assessment of Initiatives
GRESB Real Estate Assessment
Development Benchmark
Obtained Green Star and3 Stars Ratings

Fundraising through ESG/SDG
assessment-based loan provided by
Sumitomo Mitsui Banking Corporation(March, December 2020)

GRESB Development Benchmark ratings are five-tier assessments
based on a relative rating based on an overall score for environmental
and sustainability initiatives. We improved on our 2 Stars ranking in 2019,achieving a rating of 3 Stars for the first time in 2020. We received highratings in both the Management Component and Development
Component, achieving the Green Star distinction for the second
consecutive year.

Judged as implementing good ESG and SDG initiatives and information
disclosure, we earned an A* overall ranking, the third-best of sevenpossible rankings.
→ We raised three billion yen through this loan as part of funding efforts
for the Fujishirodai 5-Chome Project (joint project with Chuden Real
Estate) on a site acquired in March 2020.
→ We achieved this rating once again in December 2020 and leveraged
the result to procure 3.5 billion yen for the Tsukuba CREO Project(commercial facility) currently being developed in Tsukuba City,
Ibaraki Prefecture.

Received Award for Excellence in the“Environmental Human Resource
Development Corporate Awards 2020”(March 2021)[Initiatives recognized (comment from the judge)]
The initiative of “Local Shopping District Supporting People with
Dementia” (at tonarie Seiwadai) based on the dementia support training
sessions involving tenants and employees is wonderful.
ZEH and other efforts have resulted in lowering environmental impact.
The Awards were created in a fiscal 2014 project by the Ministry of theEnvironment with an aim to encourage Japanese companies to engage inand train human resources for environmentally friendly business
management and increase the number of companies contributing tocomprehensive improvement of the environment, economy and society,considering the situation where efforts toward a sustainable society havebecome essential.

Main Recent Initiatives (Certifications Obtained)■ Obtained Eco Action 21 Certification■ DBJ Green Building Certification■ CASBEE Real Estate Certification

Eco Action 21, the environmental management system (EMS) formulated
by Japan’s Ministry of the Environment, encourages an effective andproactive stance toward environmental management, including reducing
CO2 emissions. Based on a sustained commitment to environmental
management, companies are expected to fulfill their social responsibility
to reduce environmental impact, as well as enhance management
benefits and increase corporate value by reducing administrative
expenses and raising productivity.

We obtained DBJ Green Building certification from the Development Bank of Japan,
a certification program created by DBJ in April 2011 to support real estate projects
that account for both the environment and society (i.e., green building) for “tonarie
Yamato-Takada,” “tonarie Toga-Mikita,” “tonarie Seiwadai,” “tonarie Minamisenri”
and “Asumigaoka Brand-New Mall,” all commercial facilities developed by ES-CON
and owned by EJR and Chuden Real Estate.

“tonarie Fujimino” (formerly Soyoca Fujimino), a commercial facility owned by
ES-CON, obtained the S Rank, the highest rank recognized by the CASBEE Real
Estate assessment and certification system. This system assesses and rates
building environmental performance based on assessments done by a CASBEE
certification institution accredited by the Institute for Building Environment andEnergy Conservation.

■ ZEH Builder Certification
Consolidated subsidiaries ES-CON HOME Co., Ltd. and ES-CON CRAFT Ltd.
have completed registration for ZEH builder certification as business entities
capable of meeting specific requirements, including requirements for target-setting
and promotional measures. The certification applies to builders, housing
companies, and architect offices, etc. that set as operating targets a ZEH ratio of
50% or better by FY2020 for the home orders they receive.

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-25

Initiatives inFirst Two Quarters of Term Ending December 2021
Appointment of new executive officers (seven) and directors

Jan.

Metropolitan
area

Kinki
regionChubu
regionHokkaido
regionCondominium or residential leasing

5

4

1

2

Commercial (including commercial facilities)/
logistics, etc.

1

Total

6

Other

Total

12

Opening of “tonarie Yokkaichi,” a neighborhood shopping center
Formation of private investment fund and silent investment (Odakyu Isehara Ekimae Sakuradai development)

Commercial facilities, “tonarie Minamisenri” and “tonarie Seiwadai,” received DBJ Green Building certification

Feb.

●Number of New Business Sites Acquired in Second Quarter of Fiscal YearEnding December 2021

2

4

3

2

1

4

1

16

Announcement of “IDEAL to REAL 2023,” the fourth medium-term management plan (Supplementary Volume (2))
Announcement of capital increase through third-party allotment with Chubu Electric Power as the allottee and conclusion of a new capital and business
partnership agreement with the company (p. 9)

tonarie Minamisenri

Start of sale of columbarium at Ryomon (p. 21)

Mar.

Acquisition of “Fuji Grand Natalie,” a commercial facility
Conclusion of a partnership agreement for JR Kitahiroshima Station “West Exit Area Revitalization Project” in Kitahiroshima City, Hokkaido (p. 15)
Received Award for Excellence in the “Environmental Human Resource Development Corporate Awards 2020”
Implemented capital increase through third-party allotment with Chubu Electric Power as the allottee and became a consolidated subsidiary of the company (April 5) (p. 9)
Invested in Ryukyu Football Club Co., Ltd., which operates FC Ryukyu

Apr.

Formation of private investment fund and silent investment (Kawasaki Minamimachi Residential Bridge)
Acquisition of “Chiba Research Park,” a site for logistics facilities
Began operation of “tonarie Fujimino” (the name has been changed from “Soyoca Fujimino”)

Team emblem of FC Ryukyu

Donation of funds for WT1 cancer vaccine (a cancer immunotherapy) research

May

Opening of “tonarie Tsukuba Square” and “tonarie CREO” (p. 16)
Conclusion of an agreement for the establishment of TSUNAGU Community Farm LLC, a new company that constructs and operates
vertical farms (p. 12)

Acquisition of a new business site in Hokkaido Ballpark F. Village (p. 14)

Jun.

Selected as the preferred candidate contractor (ES-CON JAPAN as a member of the selected consortium led by Chubu Electric Power)
to operate the site of 20th Asian Games Aichi-Nagoya 2026 Athletes’ Village after the games (p. 12)
Formation of private investment fund and silent investment (Seibu Ikebukuro Higashi-Nagasaki, Chuo Line Toyoda and Sotetsu Kashiwadai)Start of announcement of plans for the opening of “Grand Le JADE Shirakabe Getsuronotei” and “Grand Le JADE Shirakabe Rinzennotei”
Opening of Phase 2 of “tonarie CREO”

Jul.
~

Asumigaoka Brand-New Mall, a commercial facility, earns DBJ Green Building certification
Conclusion of an agreement for transfer of real estate for sale to ESCON JAPAN REIT Investment Corporation (p. 17)
Investment and business participation in value-add project of a commercial complex in Hawaii (p. 21)
Announcement of plans for the opening of Le JADE Hokkaido Ballpark (p. 14)
Acquisition of shares of Picasso Co., Ltd., Yuki Sangyo Co., Ltd., and six Picasso group companies (making them subsidiaries of ESCON JAPAN) (p. 20)
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Restructuring of TSE market
Resolved to apply for transfer to the Prime Market(August 2021)
On July 9, ES-CON JAPAN received from TSE the preliminary
judgement regarding whether it has met the continued listing
criteria of the new market segment, which stated that it has met
such criteria. Based on this result, ES-CON JAPAN will moveahead with the prescribed procedure for transition to the newmarket segments scheduled for April 4, 2022.

Selection as a constituent of
JPX-Nikkei Index 400 for FY2021(August 2021)
ES-CON JAPAN had been selected as a constituent of JPX-Nikkei
Mid and Small Cap Index every year since 2017 and was selected
for the first time as a constituent of JPX-Nikkei Index 400 for being
among the top 400 issues.
*Aug. 31, 2021-Aug. 30, 2022①-26

Section 2
Progress of Fourth Medium-Term Management Plan
― IDEAL to REAL 2023 ― (FY2021-FY2023)

Fourth Medium-Term Management Plan(Three years from term ending December 2021 through term ending December 2023)
Basic Policy of Medium/Long-term Management Strategy(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 fundraising abilities under any economic conditions.
(2) Simultaneously changing the revenue structure and expanding business domains
Transforming the revenue structure from one based on flows to one based on stock by strengthening thereal estate leasing business while at the same time realizing business diversification and expanding
business territories.

and
2023

Further rapid progress byrealizing transformation

Stage

2022

Setting new record profits

Stage

2021

Structural reforms to balance
sheet and revenues

StageØ Proactive investment in long-term revenue-generating real estate andimproving the structure of the balance sheet
Ø Transforming the focus of management from flows to stockØ Demonstrating synergies in the Chubu Electric Power GroupØ Achieving net sales of 110 billion yen and operating income of 16 billion yen(in the final fiscal year of the medium-term management plan)
Copyrightt ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-28Performance Plan

(Unit: Million yen)
“IDEAL to REAL 2023,” the fourth medium-term management plan

Business plan

Term ending December 2021
(27th term)

Term ended
December 2020
(26th term)
Results

2Q Results

Term ending
December 2022
(28th term)
Plan

Full-Year Plan

Term ending
December 2023
(29th term)
Plan

Progress
Sales

77,30824,98031.2%

80,00098,000110,000

71,485

21,25630.4%

69,900––30,67718,09838.3%

47,240

–

–

652

445

41.9%

1,062

1,200

1,200

Other businesses

40,807

3,157

13.9%

22,660––Real estate leasing business

5,527

3,427

43.4%

7,900

9,500

11,200

295

296

13.5%

2,200

–

–

Operating income

12,202

2,561

23.7%

10,80014,00016,000Ordinary income

11,164

1,934

20.6%

9,400

–

–

Dividends per share (yen)

38 yen–38 yen38 yen or more

38 yen or more

Real estate sales businessCondominium sales business
Number of condominium units sold (units)

Real estate planning, brokerage, and consulting businesses

Progressive dividend policy for the duration of
our medium-term management plan

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-29

Management Targets“IDEAL to REAL 2023,” the fourth medium-term management plan
Term ended December 2020
(26th term)
Results

Term ending December 2021
(27th term)
Full-Year Plan

Term ending December 2022
(28th term)
Plan

Term ending December 2023
(29th term)
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)

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 *2

9.5%

12.0%

14.0%

18.0%

38.6 billion yen

61 billion yen

66 billion yen

72 billion yen

Net assets*1 Share of profits from leasing: Leasing segment profits/segment total profits (not including adjustments)*2 Share of long-term earnings from real estate: Real estate generating leasing revenues recorded as non-current
assets/net assets

To 31.6% in second quarter ofterm ending December 2021

Change in Net Assets
Unit: 100 million yen
800

Raised 20.4 billion yen throughthird-party allotment

578

600

Became consolidated subsidiary of Chubu
Electric Power in April 2021
400

610

660

720

386

200

0

Term ended
December 2020
(Results)
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Second quarter Term endingof term ending December 2021
December 2021
(Plan)(Results)

Term ending
December 2022
(Plan)

Term ending
December 2023
(Plan)①-30

Investment PlanØ Invest 220 billion yen (gross) over three years of medium-term management planØ Transform revenue structure by stepping up investment in long-term revenue-generating real estateØ Roughly quadruple amount of long-term revenue-generating real estate over three years

Unit: 100 million yen
Cumulative three-year investment (2021-2023)

2021
Gross investment

2022

2023

3-Yearcumulative

550

700

950

2,200

300

400

600

1,300

Investment in revenue-generating real estatedevelopment

50

100

150

300

Investment in medium-term revenuegenerating real estate*

150

200

250

600

Investment in long-term revenue-generating
real estate

100

100

200

400

250

300

350

900

Investment in revenue-generating realestateInvestment in other development

Unit: 100 million yen
Inventory assets
Long-term revenue-generating real estate
Other

1,920

Approx. 4x
885

Net investment

0

0

300

300

550

700

650

1,900

141

Increase ratio of long-term
revenue-generating realestate to total assets

2020
Results

Total assets

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

550

9.5%

468

Amount recovered

18.0%

1,494

600
2023
Forecast

Approx. 2x

3,070

①-31

Progress of Real Estate Sales BusinessØ In the condominium sales business, we’re targeting sales of 1,062 units for the term ending December 2021 and a stable annual supply of 1,200 units from2022 onward.
Ø In other businesses, we sold commercial facilities (approx. 11.9 billion yen in total*) to the REIT (EJR) in August 2021 and are on track toward the full-year
plan.
Condominium sales business
Other businessCondominium units sold

100,000

80,00071,485(Results)

69,900(Plan)
1,062 units

60,000652 units

1,000

30,677

3,157
18,098Term ended December 2020
(Results)

Second quarter of term ending December 2021
(Results)

2020 (Results)l Logistics: LOGITRES Tojol Revenue-generating real estate: Daikyocho, Shinjuku-ku /Otherbusinesses

Honjonishi, Kita-ku / Matsubara, Setagaya-ku / Minami-Otsuka,
Toshima-ku

l Land planning: Gemboen, Koga-shi, Fukuokal Detached houses for salel Detached house land: Matsukazecho, Hiratsuka-shi
l 6 commercial projects sold to REIT/Chubu Electric Power for

Condominium sales businessapprox. 20 billion yen in total

Kansai

800
600● LJ Kuzuha● LJ Morinomiya● LJ Kotoen● LJ Higashisumiyoshi Imagawa Ryokudo● LJ Takatsuki Miyanocho● LJ Ikeda Masumicho● LJ Nishinomiya Kitaguchi Hinokuchicho● GLJ Shukugawa Residence● LJ Utsukushigaoka● LJ Tsujido Higashi Kaigan

200

445 units
Term ending December 2021
(Plan)

2021 (Results/plan)

TermendedendingDecember
December
2022
Term
2022
(Plan)(Results)

2022 (Plan)0

Term ending December 2023
(Plan)

Unit: unit

2023 (Plan)[Results]
l Detached house land: Matsukazecho, Hiratsuka-shil Land planning: Gemboen, Koga-shi, Fukuoka
l Commercial: Aoyamadai, Suita-shi[Plan]l Commercial: Kandacho, Higashiosaka-shi / Sapporo KoLuTeNa I
l Revenue-generating real estate: Fukuroi-shi IC / Tsuruma Ekimael 7 commercial projects sold to REIT for approx. 11.9 billion yen in
total (sold on August 3)*

Increase profitability through diverse development
projects including commercial, hotel, logistics, rental
apartments and offices● LJ Nishiakashi● LJ Yamato-Takada Ekimae● LJ Suma Myohoji Ekimae● LJ Senri Aoyamadai● LJ Nagaikoendori● LJ Neyagawakoen● LJ Uehonmachi● LJ Hirano● LJ Kyoto Horikawa● LJ Takatsuk Nishimakami● LJ Kyoto Higashinotoin● LJ Takatsuki Besshiyo● LJ Kyoto Shijo-Omiya● LJ Yao Sakuragaoka●Takatsuki-shi Minamimatsubaracho PJ● LJ Kamishinjo● Tennoji-ku Rokumantaicho PJ● Takatsuki-shi MinamimatsubarachoⅡPJ● Midoribashi Ekimae PJ● Fushimi-ku Higomachi PJ● LJ Tsukuba Station Front● LJ Bio Makuhari Hongo● LJ Urawa● LJ Times Core Kawagoe● LJ Kawagoe The Residence● Park LJ Shirokane Residence (JV)
● Hayama-cho PJ● Chigasaki-shi Higashikaigan-Minami PJ● Kamakura Zaimokuza PJ● Matsudo-shi Matsudo PJ●Sagamihara-shi Midori-ku HashimotoⅠⅡⅢ PJ● LJ Gifu● LJ Gifu Koganekoen● Grand Crea Ichinomiya (JV) ● LJ Kakegawa Ekimae (JV)● GLJ Shirakabe Rinzennotei (JV)

● Nagoya-shi Naka-ku Masaki PJ● LJ City Hyotanyama● LJ Mukonosohonmachi● LJ Ibaraki Higashichujo● LJ Senri Furuedai● LJ Tennoji Katsuyama● LJ Okurayama● LJ Toyoda Master Hills

Kanto● GLJ Shirakabe Getsuronotei (JV)
● OST Residence Karuizawa (JV)

Chubu

400

47,2400

Unit: million yen

1,200

21,256(Second quarter results)

20,000Stable supply of 1,200 units

22,66040,80740,0001,400● LJ Hokkaido Ballpark / Higashi-ku Kita 24 Higashi Project(Hokkaido)● Minami-ku Ohashi PJ (Fukuoka/JV)

Hokkaido/
KyushuCopyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-32

Real Estate Leasing BusinessØ We’re strengthening our real estate leasing business by developing and acquiring revenue-generating properties. We’re currently seeking to increase theshare of segment income corresponding to real estate leasing from 14.2% in 2020 to 26.0% in 2023 (during the medium-term management plan period).
It was 30.0% for this second quarter. 1
Ø We’re establishing a stock revenue structure that will eventually apply leasing segment income to cover all general administrative expenses.
Our target for the final year of the medium-term management plan is 90%. It was 60% for this second quarter. 2
Ø We will continue strengthening the added value of these facilities while paying close attention to the impact of COVID-19.
1 Change in Segment Income and Leasing Income Ratio(Leasing income ratio: Rental segment profit/ Segment income total (not including adjustments))
206
167

Total segment profit

230

161

50*
Unit: 100 million yen* Recorded 300 million yen segment loss
for real estate planning agency andconsulting business

2 Change in General and Administrative Expenses, Leasing Segment Income and Coverage Ratio(Coverage ratio: Leasing segment income / General and administrative expenses (excluding goodwill amortization))

Unit: 100 million yen

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-33Condominium Sales Business
FY2021 Property Lineup
Kansai (Kinki) Area

Le JADE Nishiakashi [Hyogo] Sold out

Le JADE Suma Myohoji Ekimae [Hyogo]

Le JADE Senri Aoyamadai [Osaka]

Le JADE Yamato-Takada Ekimae [Nara] Le JADE Nagaikoendori [Osaka]

Le JADE Tennoji Katsuyama [Osaka]

Location: Akashi-shi, Hyogo
Access: 2-minute walk from Nishiakashi Station
on JR Sanyo Main Line
No. of residences: 77
Occupancy date: February 2021

Location: Kobe-shi, Hyogo
Access: 1-minute walk from Myohoji Station on Kobe
Municipal Subway Seishin-yamate Line
No. of residences: 40
Occupancy date: March 2021

Location: Suita-shi, Osaka
Access: 17-minute walk from Kita-Senri
Station on Hankyu Senri Line
No. of residences: 152
Occupancy date: March 2021

Location: Yamato-Takada-shi, Nara
Access: 3-minute walk from Yamato-Takada
Station on Kintetsu-Osaka Line;
3-minute walk from Takada Station on JR
Sakurai/Wakayama Line
No. of residences: 205
Occupancy date: May 2021

Location: Tennoji-ku, Osaka
Access: 5-minute walk from Momodani Station on JR
Osaka Loop Line
No. of residences: 39
Occupancy date: Slated to start late November 2021

Le JADE Senri Furuedai [Osaka]

Le JADE Mukonosohonmachi [Hyogo]

Location: Suita-shi, Osaka
Access: 12-minute walk from Yamada Station on Hankyu Senri Line;
11-minute walk from Yamada Station on Osaka Monorail;
15-minute walk from Kita-Senri Station on Hankyu Senri Line
No. of residences: 71
Occupancy date: March 2021

Location: Amagasaki-shi, Hyogo
Access: 12-minute walk from Mukonoso Station on
Hankyu Kobe Line
No. of residences: 33
Occupancy date: April 2021

Sold out

Location: Minamisumiyoshi, Sumiyoshi-ku, Osaka
Access: 9-minute walk from Nagai Station on
Midosuji Line;
10-minute walk from Nagai Station on
JR Hanwa Line
Sold out
No. of residences: 108
Occupancy date: Slated to start December 2021

Le JADE Neyagawakoen [Osaka]

Sold out
Location: Neyagawa-shi, Osaka
Access: 2-minute walk from Neyagawakoen Station
on JR Gakkentoshi Line
No. of residences: 60 + 1 retail zone
Occupancy date: Slated to start late December 2021

Le JADE City Hyotanyama [Osaka]
Location: Higashiosaka-shi, Osaka
Access: 5-minute walk from Hyotanyama Station on
Kintetsu Nara Line
No. of residences: 232
Occupancy date: Slated to start late December 2021

Chubu Area

Le JADE Ibaraki Higashichujo[Osaka]Location: Ibaraki-shi, Osaka
Access: 9-minute walk from Ibaraki Station on JR
Kyoto Line;
12-minute walk from Ibaraki-shi Station on
Hankyu Kyoto Line
No. of residences: 40
Occupancy date: Slated to start late November 2021

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Grand Le JADE Shirakabe Getsuronotei [Aichi](Joint project with Chuden Real Estate)
Location: Shirakabe, Higashi-ku, Nagoya-shi, Aichi
Access: Approx. 13-minute walk from Takaoka Station on Nagoya Municipal Subway
Sakura-dori Line;approx. 10-minute walk from Shimizu Station on Meitetsu Seto Line
No. of residences: 24
Occupancy date: Slated to start mid-December 2021

OST RESIDENCE KARUIZAWA [Nagano]
Location: Karuizawa-cho, Kitasaku District, Nagano
Access: About 8-minute walk from Karuizawa Station on JR Hokuriku Shinkansen andShinano Railway Line;
Approx. 5-minute car ride from Nakakaruizawa Station on Shinano Railway Line;
Approx. 18-minute by car from Usui Karuizawa I.C.
No. of residences: 33
Occupancy date: Slated to start late December 2021①-34

Condominium Sales Business
FY2022 Property Lineup
Kansai (Kinki) Area
Le JADE Uehonmachi [Osaka]

Sold out

Location: Tennnoji-ku, Osaka
Access: 3-minute walk from Osaka-Uehonmachi Station on
Kintetsu Namba Line/Nara Line/Osaka Line;
4-minute walk from Tanimachi Kyuchome Station on
Osaka Metro Tanimachi Line/Sennichimae Line;
12-minute walk from Tsuruhashi Station on JR
Osaka Loop Line
No. of residences: 56
Occupancy date: Slated to start late March 2022

Le JADE Hirano [Osaka]
Location: Hirano-ku, Osaka
Access: 7-minute walk from Hirano Station on
Osaka Metro Tanimachi Line
No. of residences: 58
Occupancy date: Slated to start late May
2022

Le JADE Takatsuki
Nishimakami[Osaka]Location: Takatsuki-shi, Osaka
Access: 17-minute walk from Takatsuki
Station on JR Tokaido Main Line
No. of residences: 43
Occupancy date: Slated to start lateJune 2022

Le JADE Takatsuki Besshiyo[Osaka]Location: Tatsuki-shi, Osaka
Access: 13-minute walk from Takatsuki
Station on Hankyu Kyoto Line;
15-minute walk from Takatsuki
Station on JR Tokaido Main Line
No. of residences: 49
Occupancy date: Slated to start lateAugust 2022

Le JADE Yao Sakuragaoka [Osaka]
Location: Yao-shi, Osaka
Access: 7-minute walk from Kintetsu-Yao Station on Kintetsu Osaka Line
No. of residences: 72
Occupancy date: Slated to start late December 2022

Le JADE Kyoto Shijo-Omiya [Kyoto]
Location: Shimogyo-ku, Kyoto
Access: 1-minute walk from Omiya Station on Hankyu Kyoto Line;2-minute walk from Shijo-Omiya Station on Keifuku Electric Railroad Arashiyama Line
No. of residences: 43
Occupancy date: Slated to start late December 2022

Le JADE Kyoto Horikawa [Kyoto]

Le JADE Higashinotoin [Kyoto]

Location: Shimogyo-ku, Kyoto
Access: 9-minute walk from Omiya Station on Hankyu Dentetsu Kyoto Line;
12-minute walk from Shijo Station on Kyoto Municipal Subway
Karasuma Line;
12-minute walk from Gojo Station on Kyoto Municipal Subway
Karasuma Line;
13-minute walk from Karasuma Station on Hankyu Dentetsu Kyoto
Line
No. of residences: 60
Occupancy date: Slated to start late April 2022

Location: Shimogyo-ku, Kyoto
Access: 2-minute walk from Gojo Station on Kyoto Municipal Subway Karasuma Line;
8-minute walk from Shijo Station on Kyoto Municipal Subway Karasuma Line;
9-minute walk from Kiyomizu-Gojo Station on Keihan Main Line;
11-minute walk from Karasuma Station on Hankyu Kyoto Line
No. of residences: 42
Occupancy date: Slated to start late December 2022

● Takatsuki-shi Minamimatsubaracho Project [Osaka]

Kanto (Tokyo Metro) Area

Chubu Area

Le JADE Kawagoe The Residence[Saitama]
Le JADE Times Core Kawagoe[Saitama]
Sold out

Le JADE Tsukuba Station Front [Ibaraki]
Location: Tsukuba-shi, Ibaraki
Access: 3-minute walk from Tsukuba Station on Tsukuba
Express Line
No. of residences: 218
Occupancy date: Slated to start late November 2022

Location: Kawagoe-shi, Saitama
Access: 5-minute walk from Kawagoe Station on JR
Kawagoe Line/Tobu Tojo Line;
14-minute walk from Hon-Kawagoe Station
on Seibu Shinjuku Line
No. of residences: 56
Occupancy date: Slated to start late
January 2022

Le JADE Bio Makuhari Hongo [Chiba]

Le JADE Urawa [Saitama] Sold out

Location: Hanamigawa-ku, Chiba-shi
Access: 5-minute walk from Makuhari-Hongo Station on JR
Chuo/Sobu Line;
5-minute walk from Keisei Makuhari-Hongo Station on Keisei
Chiba Line
No. of residences: 70
Occupancy date: Slated to start late February 2022

Location: Urawa-ku, Saitama-shi
Access: 4-minute walk from Urawa Station on JR Shonan Shinjuku
Line/JR Keihin Tohoku Line/JR Takasaki Line/JR Tohoku
Main Line
No. of residences: 44
Occupancy date: Slated to start late May 2022

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Grand Le JADE Shirakabe Rinzennotei [Aichi](Joint project with Chuden Real Estate)

Grand Crea Ichinomiya [Aichi](Joint project with Chuden Real Estate)

Location: Higashi-Shirakabe, Nagoya-shi, Aichi
Access: 13-minute walk from Takaoka Station on Nagoya City Subway
Sakuradori Line;
10-minute walk from Amagasaka Station on Meitetsu SetoLine
No. of residences: 34
Occupancy date: Slated to start late June 2022

Location: Ichinomiya-shi, Aichi
Access: 13-minute walk from Owari-Ichinomiya Station on JR Tokaido MainLine;
13-minute walk from Meitetsu-Ichinomiya Station on Meitetsu
Nagoya Main Line/Bisai Line;
4-minute walk from Nishi-Ichinomiya Station on Meitetsu Bisai Line
No. of residences: 41
Occupancy date: Slated to start late January 2022

Le JADE Kakegawa Ekimae[Shizuoka]
Sold out(Joint project with Chuden Real Estate)
Location: Kakegawa-shi, Shizuoka
Access: 2-minute walk from Kakegawa Station on JR
Tokaido Shinkansen/Tokaido Main Line/
Tenryu Hamanako Railroad
No. of residences: 83
Occupancy date: Slated to start late October
2022

Le JADE Gifu Koganekoen [Gifu]

Le JADE Gifu [Gifu]

Location: Kaburagicho, Gifu-shi
Access: 8-minute walk from Meitetsu Gifu Station on
Meitetsu Nagoya Main Line;
10-minute walk from Gifu Station on JR
Tokaido Main Line
No. of residences: 38
Occupancy date: Slated to start late May
2022

Location: Koganemachi, Gifu-shi
Access: 5-minute walk from Gifu Station on JR
Tokaido Main Line;
4-minute walk from Meitetsu Gifu Station on
Meitetsu Nagoya Main Line
No. of residences: 54
Occupancy date: Slated to start lateNovember 2022①-35

Condominium Sales Business
FY2023 Property Lineup
Kansai (Kinki) Area

Hokkaido Area

● Tennoji-ku Rokumantaicho Project [Osaka]● Kyoto-shi Fushimi-ku Higomachi Project [Kyoto]● Le JADE Hokkaido Ballpark [Hokkaido]

Location: 303-11 Rokumantaicho, Tennoji-ku, Osaka-shi
Area: 662.57 m²

Location: 380, 380-5 Higomachi, Fushimi-ku, Kyoto-shi
Area: 2,252.65 m²● Takatsuki-shi Minamimatsubaracho II Project [Osaka]● Midoribashi Ekimae Project [Osaka]

Location: Kitahiroshima-shi, Hokkaido
Access: 5-minute by car or 22-minute walk from Kitahiroshima Station on
JR Chitose Line
No. of residences: 118
Occupancy date: Slated to start late Mar. 2023

Location: 17-1, 18, 18-1 Minamimatsubaracho, Takatsuki-shi, Osaka
Area: 4,092.54 m²

Location: 39-1, 39-8, 50-9, 50-24 (part) Nakamoto 3-chome,
Higashinari-ku, Osaka-shi
Area: 974.38 m²

Condominium project
inside Hokkaido Ballpark
F Village● Le JADE Kamishinjo [Osaka]
Location: Higasiyodogawa-ku, Osaka
Access: 8-minute walk from Kamishinjo Station on Hankyu Kyoto Line
No. of residences: 60
Occupancy date: Slated to start mid Apr. 2023

Kanto (Tokyo Metro) Area
● Kamakura Zaimokuza Project [Kanagawa]
Location: 5-946-1 Zaimokuza, Kamakura-shi, Kanagawa
Area: 2,174.63 m²● Chigasaki-shi Higashikaigan-Minami Project[Kanagawa]● Sagamihara-shi Midori-ku Hashimoto I, II, III Project[Kanagawa]
Location: 2-13-16 Hashimoto, Midori-ku, Sagamihara-shi, Kanagawa
Area: 1,763.88 m² (I)3,085.82 m² (II)2,924.71 m² (III)

Location: 9340-3, 9340-16, 9340-22, 9353-4, 9371-1, 9371-4
Higashikaigan-Minami 2-chome, Chigasaki-shi, Kanagawa
Area: 2,144.15 m²● Hayama-cho Project [Kanagawa]● Matsudo-shi Matsudo Project [Chiba]

Location: 918-5 (and four other lots) Horiuchi, Hayama-cho, Miura-gun,
Kanagawa
Area: 1,654.20 m²

Location: 1305-9, 1305-27 Matsudo Aza Sakashita, Matsudo-shi, Chiba
Area: 628.77 m²● Park Le JADE Shirokane Residence [Tokyo]
Location: Minato-ku, Tokyo
Access: 6-minute walk from Shirokanedai Station on Tokyo Metro Namboku Line/Toei Mita Line;
11-minute walk from Shirokane-Takanawa Station on Tokyo Metro Namboku Line/Toei Mita Line
No. of residences: 55
Occupancy date: Slated to start late Mar. 2022

Upper left: rendering of exterior, upper right: rendering of warm living room, lower left: rendering of exterior, lower
right: rendering of shared rooftop terrace● Sapporo-shi Higashi-ku Kita 24 Higashi 17 Project [Hokkaido]
Location: 17-3-1 Kita 24-jo Higashi, Higashi-ku, Sapporo-shi, Hokkaido
Area: 894.00 m²

Chubu Area
● Nagoya Naka-ku Masaki Project [Aichi]
Location: 701, 707 Masaki 3-chome, Naka-ku, Nagoya-shi
Area: 664.36 m²

Kyushu Area
● Fukuoka Minami-ku Ohashi Project [Fukuoka]
Location: 231, 232-1, 232-2 Ohashi 2-chome, Minami-ku, Fukuoka-shi
Area: 3,473.24 m²

Park Le JADE Shirokane Residence (left: rendering of exterior, right: illustration of view)

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-36

Commercial Development Business― tonarie Brand Development ―Ø We develop and operate neighborhood shopping centers (NSCs) as part of our commercial development business.
We launched the tonarie brand of commercial facilities; eight tonarie facilities are currently in operation. These facilities areoperated by group company ES-CON Property.

Brand Concept:
Close to the community in order to develop together with the community. Always a good neighbor.
Ø tonarie Yamato-Takada Project (commercial/residential development in front of station)
Le JADE Yamato-Takada Ekimae
Yamato-Takada Station

We acquired a general merchandise store (GMS) built during thehigh growth period that was over 40 years old from a major textile
manufacturer in 2015. Even though it is directly connected to thetrain station in a relatively busy commercial area, the store sizes
and aging facilities were a mismatch for current needs.
(Photo: Oak Town Yamato Takada)After acquisition, dismantling and construction
took place while the approximately 30 tenants(including a supermarket and other stores
essential to the community) continued to operate.

tonarie Yamato-Takada

The “tonarie Yamato-Takada” neighborhood shopping center has opened. It has transformed into a facility that is sized to meet
community needs and rooted in experience-based lifestyles, with 68 tenants opening on November 23, 2018. The center won a2019 Good Design Award.

A major development project to develop Le JADE Yamato-Takada Ekimae andattract large specialty shops

Ø “tonarie” Series

tonarie Toga Mikita (Sakai-shi, Osaka)

tonarie Fujimino (Fujimino-shi, Saitama)

tonarie Tsukuba Square* (Tsukuba-shi, Ibaraki)

tonarie Yamato-Takada (Yamato-Takada-shi, Nara)*tonarie CREO/Q’ｔ/MOG

tonarie Utsunomiya (Utsunomiya-shi, Tochigi)

tonarie Seiwadai (Kawanishi-shi, Hyogo)

Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

tonarie Minamisenri (Suita-shi, Osaka)

tonarie Yokkaichi (Yokkaichi-shi, Mie)①-37

Logistics Development, Large-scale Urban Development andLand Readjustment BusinessesØ We launched the new LOGITRES brand of logistics facilities, developed its first project, LOGITRES Tojo, began developing LOGITRES Tojo II in the same
area and acquired a development site (Chiba Research Park) for the third project.
Ø We are also working to develop sites for the logistics business through our land readjustment business in Koga, Fukuoka Prefecture. As this is a candidatefor our next core business, our current policy is to further strengthen these initiatives.
Ø We are also engaged in revitalization projects for rental apartments, office buildings and other properties and plan to actively carry out various development
projects in order to establish our next core business as a general developer.

Logistics development business

Rendering of exterior
LOGITRES Tojo (Kato-shi, Hyogo)

Large-scale urban development businessFukuoka Kasuga Project (Kasuga-shi, Fukuoka)
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

Chiba Research Park Project (provisional name) (Chiba-shi, Chiba)

Land readjustment business

Koga Genboen Land Readjustment Project (Koga-shi, Fukuoka)①-38

ES-CON JAPAN Group’s Business StructureØ Strengthen the stable profitability of subsidiaries through
ES-CON JAPAN’s extensive development capabilitiesØ Meet all real estate needs of the entire ES-CON JAPAN
Group

100%

100%

Condominiums
Commercial

100%

ES CON
Living Service Ltd.

Public REIT
Private REIT

Provide extensive after-service tostrengthen Le JADE brand. Increase profits
though entry into flipping, renovation andconversion businesses

PM

Take on a local community-supporting roleby operating/managing facilities withcustomer safety and security as top priority
and by strengthening leasing capability

ES CON
Property Ltd.

100%

Offices

Logistics

Increase property acquisition andfundraising capabilities to become an asset
manager with the full spectrum oflisted/private REIT and private fundfunctionsCondominium
management

Hotels51.5%
Chubu Electric
Power

ES CON
Asset
Management Ltd.

Detached housesale
Strengthen detached house sales businessin the Saitama area, aim to expand
business to Tokyo metropolitan area

100%

Detached house
construction

Rentalapartments

100%

ES CON
Global Works Ltd.

51% Ryomon Co., Ltd.

100%

To become a subsidiary on
October 29, 2021

Personnel
introduction

Develop personnel introduction business in
preparation for the end of the COVID-19
pandemic

Columbarium usage
right sale

Provide new value with “afterlife residences”
through columbarium sales businessLeasing business

Overhaul revenue structure by strengthening
leasing business and ensuring stablerevenue. Achieve major contribution toGroup’s sustainable growth. (See ①-20)

Picasso Co., Ltd. and 7 other companies
Copyright ©2021 ES-CON JAPAN Ltd. All Rights Reserved.

①-39

Information

ES-CON JAPAN Ltd.
Email: ir@escon.jp
Tokyo
20th Floor, The Okura Prestige Tower
2-10-4 Toranomon
Minato-ku, Tokyo 105-0001☎+81-3-6230-9308

Osaka
13th Floor, Meiji Yasuda Seimei Building
4-1-1 Fushimimachi
Chuo-ku, Osaka 541-0044☎+81-6-6223-8055

ES-CON JAPAN Official
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①-40