Summary of Accounts for First Quarter of Term Ending December 2019
(Japanese GAAP) (Consolidated)

May 8, 2019
Listing exchange: Tokyo Stock Exchange
URL: https://www.es-conjapan.co.jp
President & Representative Director
Senior Managing Director TEL: 06 (6223) 8055
May 8, 2019－No
No

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:1.

(Amounts are rounded down to the nearest million yen)

Consolidated results for first quarter of term ending December 2019 (from January 1, 2019 to March 31, 2019)(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

Profit attributable toowners of parent

Ordinary income%

million yen%

million yen%

First quarter of
19,485
5.8
3,246
18.4
2,914
16.4
2,012
17.1
term ending Dec. 2019
First quarter of
18,411
85.7
2,742
11.9
2,504
13.9
1,719
(22.1)
term ended Dec. 2018
Note:
Comprehensive income
First quarter ofFirst quarter ofterm ending Dec. 2019: 2,018 million yen [18.0%] term ended Dec. 2018: 1,710 million yen [-22.4%]
Basicearnings per share

Dilutedearnings per share

yen

yen

First quarter of
29.42
term ending Dec. 2019
First quarter of
25.29
term ended Dec. 2018
(2) Consolidated financial position
Total assets

29.35
25.25
Net assets

million yen

First quarter of
115,474
term ending Dec. 2019
Term ended Dec. 2018109,747
Reference: Equity
First quarter ofterm ending Dec. 2019: 27,192 million yen
2. Dividends

Equity ratio

Book value per share

million yen%

yen

27,19323.5

397.1327,35924.9400.47

Term ended Dec. 2018: 27,358 million yen

End ofsecond quarter

Annual dividend
End ofthird quarter

yen

yen

yen

yen

yen

Term ended Dec. 2018－
Term ending Dec. 2019－
Term ending Dec. 2019 (Forecast)(Note) Revisions from latest dividends forecast: None

0.00

－

32.00

32.00

0.00

－

35.00

35.00

End offirst quarter

3.

Year-end

Total

Consolidated earnings forecast for term ending December 2019 (from January 1, 2019 to December 31, 2019)(% figures for the full term show the rate of increase (decrease) compared with the previous term, and% figures for the first two quarters show the rate of increase (decrease) compared with the same period of the previous year)

Net salesFirst two quarters
Full term

Operating income

Ordinary income

Profit attributable to
Basicowners of parent earnings per share

million yen%

million yen%

million yen%

million yen%

yen

30,50074,800

23.8
37.7

6,200
12,500

68.2
8.1

5,600
11,200

76.2
6.7

3,800
7,800

76.9
7.9

55.51
113.95(Note) Revisions from latest earnings forecast: None*Explanatory notes(1) Changes in significant subsidiaries during the first quarter(Changes in specified subsidiaries resulting in change in scope of consolidation):
Newly included: － companies (Company name) －Excluded:－ companies (Company name) －None(2) Application of accounting treatments specific to preparation of quarterly consolidated financial statements: None
(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

(4) Number of shares issued and outstanding (common shares)
First quarter of
71,806,887 Term ended
71,649,387
1) Number of shares issued and outstanding
term ending
shares Dec. 2018
shares(including treasury shares) at end of period
Dec. 2019
First quarter of
3,334,900 Term ended
3,334,900
2) Number of treasury shares at end of period term ending
shares Dec. 2018
sharesDec. 2019
First quarter ofFirst quarter of
68,398,292
67,973,182
3) Average number of shares during period
term ending
term ended
sharessharesDec. 2019
Dec. 2018
Note: The number of treasury shares at end of period includes ES-CON JAPAN shares held in a share-based
payment benefits trust for directors and a share-based payment benefits type ESOP trust (first quarter ofterm ending December 2019: 487,200 shares in the share-based payment benefits trust for directors and234,300 shares in the share-based payment benefits type ESOP trust). In the calculation of the average
number of shares during period, the treasury shares to be subtracted in that calculation includes ES-CON
JAPAN shares held in the share-based payment benefits trust for directors and the share-based payment
benefits type ESOP trust (first quarter of term ending December 2019: 721,500 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 the assumptions on which earnings forecasts are based and explanatory notes for use of earnings forecasts,
etc., please see “Attachment; 1. Qualitative Information on Quarterly Results; (3) Explanation of Consolidated
Earnings Forecast and Other Forward-Looking Information” on page 5.

○Contents of Attachment
1. Qualitative Information on Quarterly Results .................................................................................................................................2(1) Explanation of Operating Results ...............................................................................................................................................2(2) Explanation of Financial Position................................................................................................................................................3(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information ...............................................3
2. Quarterly Consolidated Financial Statements and Key Notes ....................................................................................................4(1) Quarterly Consolidated Balance Sheet......................................................................................................................................4(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income......6(Quarterly Consolidated Statement of Income)............................................................................................................................6(Quarterly Consolidated Statement of Comprehensive Income)...............................................................................................7(3) Notes to Quarterly Consolidated Financial Statements ..........................................................................................................8(Notes on Going Concern Assumption).........................................................................................................................................8(Notes on Substantial Changes in the Amount of Shareholders’ Equity).................................................................................8(Notes on Additional information) ...................................................................................................................................................8(Segment Information, etc.) .............................................................................................................................................................8
3. Other .....................................................................................................................................................................................................9
Performance of Contracts and Sales.................................................................................................................................................9

－

1

－

Attachment
1. Qualitative Information on Quarterly Results(1) Explanation of Operating Results
In the first quarter, the Japanese economy showed potential to maintain a moderate recovery despite someweakness seen in exports and production, due in part to various governmental measures proving effective amid
ongoing improvement in the employment and income situation. The economic outlook remains clouded, however, as
the situation calls for attention to the impact of U.S.-China trade friction on the world economy, downside risks in the
Chinese economy, uncertainties in overseas economies including Brexit and the effects of fluctuation in the financial
and capital markets, among other factors.
The real estate industry in which the ES-CON JAPAN Group operates held firm due in part to low interest rates
from monetary easing policies, but the situation warrants no optimism because of such factors as a rise in land prices,intensified competition in acquiring land, the risk of higher interest rates and the consumption tax rate hike.
In the business environment described above, we are proactively developing multifaceted businesses in the current
fiscal period (fiscal period ending December 2019) as the final fiscal year of the second medium-term management
plan “IDEAL to REAL 2019” which started from the fiscal year ended December 2017.
1) Listing of ESCON JAPAN REIT Investment Corporation
Investment units issued by ESCON JAPAN REIT In vestment Corporation (hereinafter “ESCON REIT”), of whichasset management is entrusted to ES-CON Asset Management Ltd., the consolidated subsidiary of ES-CON
JAPAN, listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market in February 2019.
ESCON REIT is a diversified J-REIT which mainly invests in “everyday life-based” commercial facilities closely
associated with their local communities and in land with leasehold interest for such commercial facilities.
ES-CON JAPAN Group intends to fully support enhancement of earnings and stable growth of ESCON REIT asa sponsor and aims for further growth. In addition, Chubu Electric Power Co., Inc. (hereinafter “Chubu ElectricPower”) is a support company of ESCON REIT.
2) Establishment of Nagoya Branch
ES-CON JAPAN concluded a business partnership agreement with Chubu Electric Power in August 2018 andestablished a Nagoya branch in March 2019. ES-CON JAPAN will conduct business to satisfy local customers
and contribute to regional revitalization of the Chubu region as an important business area comparable to theTokyo metropolitan area and the Kansai region by mutually utilizing the o verwhelmingly wide customer base of
Chubu Electric Power and Chuden Real Estate Co., Inc. of the Chubu Electric Power Group in the Chubu region
along with the real estate development capabilities of ES-CON JAPAN.
In the real estate sales business, which is the core business, revenue-generating real estate sales, etc. wereconducted, and steady progress was made in condominium sales, too.
In the real estate sales business, sales of new projects “Le JADE Tsujido Higashi Kaigan (Fujisawa City, Kanagawa
Prefecture; 51 units in total),” “Grand Le JADE Todoroki (Setagaya Ward, Tokyo; 43 units in total),” “Le JADE Ikeda
Masumicho (Ikeda City, Osaka Prefecture; 35 units in total),” “Le JADE Kotoen (Nishinomiya City, Hyogo Prefecture;
49 units in total),” etc. started while “Le JADE Sumakaihin Koen (Suma Ward, Kobe City; 30 units in total)” scheduled
for completion in the current fiscal year and “Le JADE Ku zuha (Hirakata City, Osaka Prefecture; 78 units in total)”scheduled for completion in the next fiscal year are contracted to sell out.
In the commercial development business, ES-CON JAPAN acquired “Tsukuba Q’t” and “Tsukuba MOG” in
December 2018 and “Tsukuba Creo” in March 2019, which are commercial facilities in Tsukuba City, Ibaraki
Prefecture. Utilizing multifaceted real estate development expertise accumulated to date, ES-CON JAPAN will
promote Tsukuba Station-front development through utilizing the three facilities enabled to contribute to the local area
in an integrated manner.
Furthermore, in the logistics development business, ES-CON JAPAN launched a new logistics facility brand“LOGITRES.” Moreover, as a new business, ES-CON JAPAN started development of its overseas business bymaking a commitment to a Hawaii-focused closed-end real estate investment fund. ES-CON JAPAN is steadily
promoting diversification of its business including endeavors on developing new business fields with an eye on thenext era and globalization.
－2－

As such, ES-CON JAPAN conducted business operations in a steady and proactive manner, acquiring new
business sites and a commercial facility for 2 projects in the Tokyo metropolitan area and 3 projects in the Kinki areain the first quarter, to be used as the site for for-sale, commercial and other multifaceted development.
In the real estate leasing business, efforts are being made to secure stable rental income from and enhance asset
value of retail properties held by ES-CON JAPAN.
In the real estate planning agency and consulting business, focus is being placed as a business achieving highprofit margins through subcontracting, planning agency and consulting and other non-assets by leveraging theplanning and other strengths of ES-CON JAPAN.
As a result, ES-CON JAPAN achieved net sales of 19,485 million yen (up 5.8%), operating income of 3,246 million
yen (up 18.4%), ordinary income of 2,914 million yen (up 16.4%) and profit attributable to owners of parent of 2,012
million yen (up 17.1%) for the first quarter, all compared with the same period of the previous year.
The following describes the operating results by each segment, with figures compared with the same period of theprevious year.
1)

Real estate sales businessIn the real estate sales business, activities included promoting condominium sales and selling real estate for saleand real estate for sale in process, resulting in net sales of 18,276 million yen (up 3.8%) and segment income of
3,380 million yen (up 10.7%).
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 1,190 million yen (up 61.5%) and segment income of 800 million yen (up 89.1%).
3)

Real estate planning agency and consulting businessIn the real estate planning agency and consulting business, although 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, it resulted in net sales of 17 million yen (down 76.2%) and segment income of 17 million
yen (down 70.2%).
(2) Explanation of Financial Position
ES-CON JAPAN has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (AccountingStandards Board of Japan “ASBJ” Statement No. 28; February 16, 2018) since the beginning of the consolidated
accounting period for the first quarter, and its financial position is analyzed through comparison with the previous
consolidated accounting fiscal year based on figures arrived at through retroactive application of the accounting
standard, etc.
Assets at the end of the first quarter increased by 5,727 million yen compared with the end of the previous term to
115,474 million yen. This was mainly attributable to inventories increasing by 3,170 million yen.
Liabilities increased by 5,893 million yen compared with the end of the previous term to 88,280 million yen. Thiswas mainly attributable to long-term loans payable, short-term loans payable and bonds payable increasing by 6,118
million yen.
Net assets decreased by 166 million yen compared with the end of the previous term to 27,193 million yen. This
was attributable to cash dividends paid of 2,209 million yen albeit recording profit attributable to owners of parent of
2,012 million yen. As a result, equity ratio was 23.5% (24.9% at the end of the previous term).
(3) Explanation of Consolidated Earnings Forecast and Other Forward-Looking Information
The consolidated earnings forecast remains unchanged from the forecast announced on February 8, 2019.

－

3

－

2. Quarterly Consolidated Financial Statements and Key Notes(1) Quarterly Consolidated Balance SheetTerm ended Dec. 2018(as of Dec. 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Supplies
Other
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
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

－

4

－

(Unit: million yen)First quarter ofterm ending Dec. 2019(as of Mar. 31, 2019)16,598491
15,30865,8906,353
104,642

18,703407
3,558
80,8106,369
109,851

1,459
(462)
997
623
151
(113)
38
1,658

1,483
(475)
1,008
623
178
(118)
59
1,690

30
30

28
28

3,453
(37)
3,415
5,104
109,747

3,941
(37)
3,903
5,623
115,474

Term ended Dec. 2018(as of Dec. 31, 2018)
Liabilities
Current liabilities
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
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
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

－

5

－

(Unit: million yen)First quarter ofterm ending Dec. 2019(as of Mar. 31, 2019)

1,720
23,993
40
1,448
33
9,973
37,2102,916
29,44740
895
33
10,304
43,638270
44,5689730
77
132
45,17682,387250
44,05797
30
83
123
44,642
88,2806,259
1,988
20,310(1,207)27,3526,272
2,001
20,113(1,207)
27,1806
6
1
27,359109,747

11
11
1
27,193
115,474(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income(Quarterly Consolidated Statement of Income)(Unit: million yen)First quarter ofFirst quarter ofterm ended Dec. 2018
term ending Dec. 2019(from Jan. 1, 2018(from Jan. 1, 2019
to Mar. 31, 2018)
to Mar. 31, 2019)
Net sales
18,411
19,485
Cost of sales
13,85914,907Gross profit
4,551
4,577
Selling, general and administrative expenses
1,809
1,331
Operating income
2,742
3,246
Non-operating income
Interest income
00Penalty income
0
3
Other
0
0
Total non-operating income
13Non-operating expenses
Interest expenses
237
332
Other
1
3
Total non-operating expenses
239
336
Ordinary income
2,504
2,914
Extraordinary income
Gain on reversal of subscription rights to shares
00
Total extraordinary income
00Extraordinary losses
Loss on retirement of non-current assets
4－
Total extraordinary losses
4－
Profit before income taxes
2,499
2,914
Income taxes - current
678
851
Income taxes - deferred
101
49
Total income taxes
780
901
Profit1,719
2,012
Profit attributable to owners of parent
1,719
2,012

－

6

－

(Quarterly Consolidated Statement of Comprehensive Income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

－

7

－

First quarter ofterm ended Dec. 2018(from Jan. 1, 2018
to Mar. 31, 2018)
1,719(Unit: million yen)First quarter ofterm ending Dec. 2019(from Jan. 1, 2019
to Mar. 31, 2019)
2,012

(8)
(8)
1,710

5
5
2,018

1,710
－

2,018
－

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Substantial Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Notes on Additional information)
ES-CON JAPAN has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (AccountingStandards Board of Japan “ASBJ” Statement No. 28; February 16, 2018) since the beginning of the consolidated
accounting period for the first quarter, and deferred tax assets is indicated under the classification of other assets.
(Segment Information, etc.)[Segment Information]
I. First Quarter of Term Ending December 2018 (from January 1, 2018 to March 31, 2018)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment
Reporting segment
Real estatesales
business

Real estateleasingbusiness

Real estateplanning agency
and consulting
business

Total(Unit: million yen)Amount onquarterly
Reconciliation consolidated(Note 1)statement ofincome(Note 2)

Net sales
Net sales to
17,601
737
72
18,411
18,411－
external customers
Intersegment net
－
－
－
－
－
－
sales or transfers
Total
17,601
737
72
18,411
18,411－
Segment income
3,054
423
57
3,536
(793)
2,742
(Note 1) The reconciliation of segment income of -793 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 Quarter of Term Ending December 2019 (from January 1, 2019 to March 31, 2019)
1. Information on Net Sales and Income or Loss Amounts by Reporting Segment
Reporting segment
Real estatesales
business

Real estateleasingbusiness

Real estateplanning agency
and consulting
business

Total(Unit: million yen)Amount onquarterly
Reconciliation consolidated(Note 1)statement ofincome(Note 2)

Net sales
Net sales to18,276
1,190
17
19,485
19,485－external customers
Intersegment net
－
－
－
－
－
－
sales or transfers
Total
18,276
1,190
17
19,485
19,485－
Segment income
3,380
800
17
4,198
(952)
3,246
(Note 1) The reconciliation of segment income of -952 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.

－

8

－

3. Other
Performance of Contracts and Sales
The performance of contracts in the real estate sales business for the first quarter is as follows:First quarter of term ending Dec. 2019(from Jan. 1, 2019
to Mar. 31, 2019)

Classification

Mid- to high-risehousing, etc.

Contract amount during the period
Number of units(units)

Other
Total
(Note)

Balance of contracts at the end of the period

Amount(million yen)

Number of units(units)Amount(million yen)

221

9,633

615

25,786－220－

15,130

221

9,854

615

40,917

The above amounts do not include consumption tax, etc.

The main performance of sales by segment for the first quarter is as follows:First quarter of term ending Dec. 2019(from Jan. 1, 2019
to Mar. 31, 2019)

Name of segment

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

Condominiums

51

2,428

Kita-Nagoya Pare Marche
Nishiharu

－

4,610

Asumigaoka Brand-New Mall

－

3,200

K’s Denki Oyumino shop

－

2,710

Nagahoribashi Ekimae

－

2,100

Kobe-shi Nishi-ku Mitani

－

1,430

Daisen-nishi Commercial II,
Sakai-shi－

946

Nishishiroi Ekimae－

451

Fukuoka Kasuga－

401

Subtotal

18,276

Real estate leasing business

1,190

Real estate planning agency
and consulting business

17
Total

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

－

9

－

19,485