Financial Results for
Second Quarter of TermEnding December 2019
Descriptive materials
ES-CON JAPAN Ltd.

August 28, 2019

Table of Contents•

Summary of Second Quarter of Term Ending December 2019 (25th term)
Main Activities in Second Quarter of Term Ending December 2019
P/L in Second Quarter of Term Ending December 2019
Segment Results for Second Quarter of Term Ending December 2019
B/S in Second Quarter of Term Ending December 2019

P.4
P.5
P.6,7
P.8

•

2019 TOPICS

P.9-14•

2nd Medium-Term Management Plan IDEAL to REAL 2019 FY2019 performance plans
Basic Policy and Corporate Strategy
Growth Action Plan & Current Progress
Performance Plans
Management Indexes, Dividend Trends, Dividend Policy
Real Estate Sales BusinessCondominium Sales Business “Le JADE Series”
Hotel Development Business
Commercial Development Business, Logistics Business, Land Readjustment Business
Real Estate Leasing Business
Strategic Business Expansion of ES-CON JAPAN Group
Information

P.16
P.17
P.18
P.19
P.20
P.21,22
P.23
P.24
P.25
P.26
P.27

2
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Summary of Second Quarter of TermEnding December 20193
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

January

Main Activities in Term Ending
December 2019

Final year revisions to Medium-Term Management Plan IDEAL to REAL 2019
Sales commence for Le JADE Tsujido Higashi Kaigan.

All units sold in Grand Le JADE Takatsuki Tenjin

April

Grand opening of tonarie Toga-Mikita community shopping center held on
April 26, 2019 (Friday)

February

ESCON JAPAN REIT Investment Corporation
ESCON JAPAN REIT Investment Corporation listed on J-REIT market
Work commences on overseas business development with investment in
Hawaii real estate investment fund.
All units sold in Le JADE Kuzuha and Le JADE Sumakaihin Koen
Acquisition of new business site (Nishi-Akashi Ekimae, Akashi-shi)
Sales commence for Grand Le JADE Todoroki.
Acquisition of new business site (Furuedai, Suita-shi)May●Number of new business sites acquired in second quarter of term ending December 2019
Metropolitan
area

Kinki region

Chubu region

Condominium

1

5

2

Commercial (includingcommercial facilities)

1

Total

2

June

5

Other

2

8
1

2

1

10

Acquisition of new business sites (Shirakabe 4-chome/Chikaramachi 4-chome, Higashi-ku, Nagoya-shi)(Higashichujocho, Ibaraki-shi)

MarchNagoya Office opens.
All units sold in Grand Le JADE Ochanomizu
Sales commence for Le JADE Higashisumiyoshi Imagawa Ryokudo, Le JADE Nishinomiya
Kitaguchi Hinokuchicho, Le JADE Toyoda Master Hills, Le JADE Ikeda Masumicho, Le JADE
Takatsuki Miyanocho, and Le JADE Kotoen.
Acquisition of commercial facility (Tsukuba CREO)
Acquisition of new business sites (Nakamichi, Higashinari-ku, Osaka-shi) (Matsukazecho,
Hiratsuka-shi)
LOGITRES logistics facility brand launched

One's Own House Co., Ltd. and Rise Home Co., Ltd.
made subsidiaries* Shares transferred July 1
All housing sites sold in Nakano, Nakano-ku (housing landdevelopment) project
All units sold in Le JADE Shinkanaoka Park Fields
Sales commence for Le JADE Utsukushigaoka.

July,
AugustAcquisition of new business sites (Aoyamadai, Suita-shi) (Yayoicho, Nakano-ku)(Hikone-shi, Shiga-ken)
Acquisition of commercial facility (Kotoni, Nishi-ku, Sapporo-shi)
All units sold in Le JADE Bio Funabashi Kitanarashino and Le JADE Takatsuki Kosobe

Began participating in condominium development project in the
Bangkok metropolitan area, Thailand.
Invested in ESCON JAPAN REIT Investment Corporation.
Acquisition of Treasury Shares

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Total

4

P/L in Second Quarter of Term Ending December 2019

• Both sales and profits increased dramatically from the previous term, driven by sales of commercial
facilities and other properties to ESCON JAPAN REIT Investment Corporation and sales of hotels.
• Earnings per share (EPS) in the current term were up 31.2 yen from the previous term to 62.75 yen.
(Unit: Million yen)

Second quarter of term
ending December 2019
(term under review)

Second quarter of term
ended December 2018(previous term)

Amount ofincrease/decrease

Sales

30,22824,636

5,592+ 22.7%Gross profit

9,331

6,336

2,995

+ 47.3%

Selling, general andadministrative expenses

2,543

2,651

-108

-4.1%

742

1,206

-464

-38.5%

1,801

1,445

356

+ 24.6%

6,788

3,685

3,103

+ 84.2%

596

492

104

+ 21.1%

Ordinary income

6,197

3,178

3,019

Net income in current
term

4,293

2,148

Earnings per share incurrent
term

62.75

31.55

Selling expenses
General administrativ e
expenses

Operating profit
Interest expenses

Second quarter of term ending
Compared to
December 2019previous term
(initial plan)

Difference
from plan

Percentage vs.
initial plan

30,500

-272

-0.9%

6,200

588

+ 9.5%+ 95.0%

5,600

597

+ 10.7%2,145+ 99.9%

3,800

493

+ 13.0%31.20+ 98.9%5
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Segment Results for Second Quarter of TermEnding December 2019
• In the real estate sales business, sales grew by 21.8% and income by 79.8% YoY (Table ①).
• Condominium sales were down YoY due to the small number of completed projects, while other sales boosted both sales and profits thanks to sales ofproperties to REITs and sales of hotels (Tables ②, ④).
• The project profit margin for condominium sales fell 3.3 points due to high land and construction costs (Table ②).
• The project profit margin for other sales rose 4.1 points YoY. Project profit margins for the real estate sales business as a whole rose 8.1 points YoY to 25.2%(Tables ①, ④, ⑤).
• As of August 26, we had sold 653 condominiums based on concluded contracts, or 86.0% of the figure in the initial sales plans for 759, making steadyprogress (Table ③).
• The real estate leasing business is making steady progress, with both sales and profits up YoY thanks to the acquisition of commercial facilities (Aeon
Minamisenri, Tsukuba) and the completion of commercial facilities (Yamato Takada, Toga-Mikita) (Table ①).
(Unit: Million yen)

Table
①

Sales
Second quarter of term
ending December 2019
(term under review)

Second quarter of term
ended December 2018(previous term)

Real estate sales business

27,76322,786+ 21.8%

Condominium sales

5,114

15,621-67.3%

22,648

7,165

2,392

Other sales

Condominium sold/sales
Second quarter of term ended
December 2018 (previous term)
Second quarter of term ending
December 2019
(term under review)-75.2%+ 216.1%

6,461

1,746

+ 270.0%

1,525+ 56.9%

1,536

932

+ 64.8%72324-77.8%

60

308-80.5%

30,22824,636+ 22.7%

8,589

5,130

+ 67.4%

Table③

Planned units sold
Second quarter of term
ending December 2019
(term under review)

15,621

98

759

5,114

No. of units delivered
as of end of 2Q (units)

Project profit
margin17.1％

Compared toprevious term

2,142

Amount(millions yen)

371

Project profit
margin25.2％

Second quarter of term
ended December 2018(previous term)

531

Sales
Units sold

Second quarter of term
ending December 2019
(term under review)+ 79.8%

Real estate planning agency
and consulting business

Total

Compared toprevious term

3,889

Real estate leasing
business

Table②

Segment income

Achievement
rate

98

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

12.9%

Price per unit
(10,000 yen)

Project profit margin

4,210

Table Non-condominium project
profit margin
④

13.7%

5,218

10.4%

Contracted units (including
delivered units) as ofAugust 26 (units)

653

Achievement
rate

86.0%

6,992

Table
⑤

Results
Sales(millions yen)

Project profit(millions yen)

Project profit margin

Second quarter of term ended
December 2018 (previous term)

7,165

1,746

24.4%

Second quarter of term ending
December 2019 (term under review )22,648

6,461

28.5%

Sales

Hotels sold/sales

Number of projects
soldAmount(millions yen)

Project profit margin

Second quarter of term ended
December 2018 (previous term)

2

3,880

31.7%

Second quarter of term ending
December 2019 (term under review )

2

8,680

47.7%

6

Segment Results for Second Quarter of TermEnding December 2019
• Completed condominium inventory stood at 69 units at the end of June.
• The rate of progress vs. initial sales plans, based on contracts concluded, is 86.0% for condominium sales.
(Unit: Units)

Condominium sales

Location

Total no.
of units (③)

Grand Le JADE Ochanomizu

Bunkyo-ku, Tokyo

Grand Le JADE Jiyugaoka

Meguro-ku, Tokyo

Le JADE Nakano

Nakano-ku, Tokyo

Le JADE Bio Funabashi Kitanarashino

Funabashi-shi, Chiba

Mirakita City Himeji

Himeji-shi, Hyogo

Grand Le JADE Shonan Enoshima R134

Fujisawa-shi, Kanagawa

Grand Le JADE Takatsuki Tenjin

Takatsuki-shi, Osaka

Le JADE Takatsuki Kosobe

Takatsuki-shi, Osaka

Le JADE Sumakaihin Koen

Kobe-shi, Hyogo

Le JADE Shinkanaoka Park Fields

Sakai-shi, Osaka

Le JADE Tsujido Higashi Kaigan

Fujisawa-shi, Kanagawa

Le JADE Minami-Ibaraki MUSE

Ibaraki-shi, Osaka

Le JADE Hama-Otsu

Otsu-shi, Shiga

24*2
28
181
30
204
51
40
51

Le JADE Otsu LUXE

Otsu-shi, Shiga

35 (32 units)*3

Grand Le JADE Todoroki

Setagaya-ku, Tokyo

Grand Le JADE Sanbancho

Chiyoda-ku, Tokyo

No. of units delivered
Closing inventory for
Initial inventory for term in second quarter of
second quarter of term
ended December 2018 term ending December
ending December 2019
2019

53
23
25
50
143 (67 units)*1

43
19

Total

Sales progress (②) (basedon deliveries andcontracts) as of August 26

Progress
percentage(② /①）

Contract and delivery progress as ofAugust 26 (inventory/units for sale vs.
initial plans) (① -② )

2
16
16
14
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー
ー

2
3
8
10
30
17
28
ー
ー
ー
ー
ー
ー
ー
ー
ー

0
13
8
4
37
7
0
ー
ー
ー
ー
ー
ー
ー
ー
ー

2
16
16
14
50
24
28
181
30
204
25
40
35
32
43
19

2
4
14
14
31
19
28
181
30
204
16
33
17
31
10
19

100.0%

Sold out

Sold out

25.0%

12

12

87.5%

2

2

100.0%

Sold out

Sold out

62.0%

19

36

79.2%

5

5

100.0%

Sold out

Sold out

100.0%

Contracts concluded for all units

Contracts concluded for all units

100.0%

Contracts concluded for all units

Contracts concluded for all units

100.0%

Contracts concluded for all units

Contracts concluded for all units

64.0%

9

35

82.5%

7

7

48.6%

18

34

48

98

69

759

653

Initial sales plan(①)

Contract and delivery progress as ofAugust 26 (inventory/units for sale vs.
total units) (③ -② )Completedinventory (as ofAugust 26): 55
units

For sale prior
to completionof
construction

96.9%

1

1

23.3%

33

33

100.0%

Sold out due to sale of entire building

Sold out due to sale of entire building

86.0%

106

165

*1 Includes 143 residential units and nine unsold units. Based on our 50% share, this means a total of 67 units.
*2 Includes 24 residential units and two unsold units.
*3 Includes 35 residential units, three office units, and one management office (units for sale: 32 units).

Leasing business(major owned properties)

Other sales

Type

Business scheme

Minamisenba I, Chuo-ku

Hotel

Sale

Nagahoribashi Ekimae

Hotel

Sale

Kitanagoya Pare Marche Nishiharu

Commercial

Sale

Asumigaoka Brand-New Mall

Commercial

Sale

K’s Denki Oyumino shop

Commercial

Sale

Mitani, Nishi-ku, Kobe-shi

Commercial

Sale

Daisen-nishi Commercial II, Sakai-shi

Commercial

Sale

Nishishirai Ekimae

Commercial

Sale

Kasuga, Fukuoka

Commercial

Sale

Nakano, Nakano-ku

Land

Sale

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Sales(millions yen)
6,580
2,100
4,610
3,200
2,710
1,430
946
451
401
220

Transferred to
ESCON JAPANREIT Investment
Corporation (attime of listing)Location

Possession status

Kansai Medical University Kuzuha Hospital

Hirakata-shi, Osaka

Aeon Minamisenri

Suita-shi, Osaka

Fixed asset

tonarie Yamatotakada

Yamatotakada-shi, Nara

Current asset (for sale in process)soyoca Fujimino

Fujimino-shi, Saitama

Current asset (for sale in process)Ikaruga, Ikoma-gun

Ikoma-gun, Nara

Current asset (for sale in process)Omihachiman

Omihachiman-shi, Shiga

Current asset (for sale in process)Kakegawa

Kakegawa-shi, Shizuoka

Current asset (for sale in process)tonarie Toga-Mikita

Sakai-shi, Osaka

Current asset (for sale in process)

LOGITRES Tojo

Kato-shi, Hyogo

Current asset (for sale in process)Tsukuba Q’t, MOG, CREO

Tsukuba-shi, Ibaraki

Current asset (for sale in process)Yamada Denki Sapporo Shiroishi store

Shiroishi-ku, Sapporo-shi

Current asset (for sale in process)

KoLuTeNa I

Nishi-ku, Sapporo-shi

Current asset (for sale in process)

Daisen-nishi I, Sakai-shi, Osaka-fu

Sakai-shi, Osaka

Current asset (for sale in process)Mukomotomachi, Amagasaki-shi

Amagasaki-shi, Hyogo

Current asset (for sale in process)Kamiueno, Muko-shi

Muko-shi, Kyoto

Current asset (for sale in process)

Ikegami, Nishi-ku, Kobe-shi

Nishi-ku, Kobe-shi

Current asset (for sale in process)Fixed asset

7

B/S in Second Quarter of Term Ending
December 2019
(Unit: Million yen)

Second quarter of term
ending December 2019
(term under review)

Current assets

Term ended December
2018(previous term)

Increase/decrease• The equity ratio decreased slightly due to proactive purchases.

106,089

104,642

1,447

Cash and deposits

18,223

16,598

1,625

Real estate for sale

2,909

15,308-12,399

Real estate for sale inprocess

Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and otherassetsTotal assets• Fixed assets increased by 8.9 billion yen due to the transfer of a revenuegenerating property (Aeon Minamisenri) from inventories to fixed assets.

77,55665,89011,666

14,101

5,104

8,997

10,087

1,658

8,429

• The interest rate paid on funds raised fell 0.2 points to 0.9%, thanks to theeffects of the business partnership with the Chubu Electric Power Group.
Others5%

Others

1%

Hotel

31
3,982

1

30
3,415

39%

10,444

109,747

Second quarter of term
ending December 2019
(term under review)

Term ended December
2018(previous term)

Current liabilities

46,756

37,210

9,546

Short-term loans

2,009

1,720

289

Current portion of longterm loans

33,52923,993

9,536(Unit: Million yen)

7%
Condominium

2019 2Q
inventory
80.4 billion
yen

46%

201 9 2 Q

Condo2018 end
miniuminventory
81.1 billion yen 46%

55%

567

120,1911%

Hotel

Commercial,etc.

Commercial,etc.

20 18 en d

Condominium

44,207

37,198Commercial, etc.

31,12037,280

Hotel

3,909

5,564

Others

1,228

1,156

Total

80,466

81,199(Unit: Million yen)

Increase/decrease■ New procurement and annual averageinterest rate
24.8%

24.9%
120,191

Fixed ass ets (owned as sets)
Invent ory
Interest-bearing debt

Current portion of bonds

Fixed liabilities

40

40

0

43,90445,176-1,272

24.6%

Total as sets
Equity ratio

86,435
81,19973,703270-20

43,04544,568-1,523

Total liabilities

90,661

82,387

8,274

Total net assets

29,53027,3592,171

250

Corporate bonds

23.6%

Long-term loans

Total liabilities and net
assetsEquity ratio

120,191

109,747

10,444

24.6%

24.9%

-0.3 points

Term ended December
2016

80,466 78,874

70,66164,21951,17745,423

10,142

1.5%

109,747
New
procurement

49,623

1.2%

Annualaverageinterest rate

45,7661.1%

0.9%

29,95827,44256,544

9,919
1,565

1,534

Term ended December
2017

Term ended December
2018

Term ending December
2019

Term ended
December
2016

Term ended
December
2017

Term ended
December
2018

2Q of term ending
December 20198
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

2019 TOPICS

9
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

TOPICS ① Progress of capital and business
partnership with Chubu Electric Power Co., Ltd.
In August 2018, we concluded a capital and business partnership agreement with Chubu Electric Power, becoming an equity method affiliate of Chubu Electric Power (which holds 33.3% of voting rights of our company).

１. Promoting joint projects• Continuing exchange of information andjoint meetings

２. Mutually complementary business areas• Nagoya Office opened in March 2019.
• Acquired site for first condominium projectin the Chubu area.

３. Making effective use of real estate owned by the
Chubu Electric Power Group
４ Joint research and implementation of nextgeneration smart houses, connected homes,etc.
５. Prospective buyers for our real estatedevelopment projects

Expertise in energy and other businesses
Sales infrastructure in the Chubu region

Chubu
Electric PowerGroup

Synergies

Details of business partnership

Strengthening the real estate business through capital and business partnership with the Chubu Electric Power GroupES CONJAPAN

Real estate business expertise
Sales infrastructure in the metropolitan area
and Kansai region

６. Exchange of human resources• Seconded two of our employees to Chubu
Electric Power's subsidiary Chuden Real
Estate Co., Inc. beginning in April 2019.

７. Respect for autonomy• Kenji Fujita of Chubu Electric Power was
appointed Company Director at the general
meeting of shareholders held in March 2019.

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

10

TOPICS ② ESCON JAPAN REIT Investment
Corporation listed on J-REIT market
Summary of ESCON JAPAN REIT Investment Corporation① Building a portfolio centered on commercial facilities that people depend on in their daily lives

Three distinguishing features

Areas targeted for investment: Four major urban areas (Tokyo metropolitan area, Kansai area, Chukyo area,
Fukuoka area)• Facilities with roots in local communities in these four major urban areas where population concentrations are projected to continue
in the future as well
• Pursuing highly stable earnings and growth potential through investment focusing on commercial facilities that people depend on in
their daily lives② Investing in highly stable leasehold (land components of fixed-term leaseholds for business use)
Investment targets: approx. 50% leasehold, approx. 50% land and buildings• Investing proactively in leasehold of commercial facility sites, with a focus on the benefits and advantages of leasehold• Building highly stable portfolios③ External and internal growth leveraging the advantages of the real estate development capabilities andstrength in management provided by comprehensive developer ES-CON Japan, with support from Chubu
Electric Power• 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 development capabilities of the ES-CON JapanGroup• and the Chubu Electric Power Group's expertise with eco-friendly technologies and lowering energy costs

11
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

ESCON JAPAN REIT Investment Corporation
Portfolio Summary Map
Number ofproperties

Total
acquisition
price

Total
appraised
value

Utilization
rate*1

Appraised NOI
yield

Amortized
appraised NOI
yield

Years
remaining onlease*1

25
properties

41.6 billion
yen

45.0 billion
yen

99.7％

5.1％

4.6％

11.0 years

Commercial leasehold included

22.8 billion yen

Leasehold ratio

54.9％

Lamu Kitatsumori shop
(leasehold)

K’s Denki Nishi-Kobe
shop (leasehold)*1 As of August 23, 2019

Nitori Imaichi shop
(leasehold)Pare Marche
Nishiharu

Sanyo-Marunaka Mitani
shop (leasehold)Nitori Tsuchiura shop
(leasehold)tonarie Minamisenri

K's Denki Kurashiki shop
(leasehold)Nishishirai Ekimae Plaza

K's Denki Oyumino shop
(leasehold)

Asumigaoka Brand-New Mall
Fukuoka Kasuga Project (leasehold)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

tonarie Seiwadai

TSUTAYA Sakai-Minami
shop (leasehold)Max Valu Kikyogaoka Higashi
shop (leasehold)

12

TOPICS ③ Acquisition of stock of detachedhome building companies
In July 2019, we acquired stock in two companies based in Saitama Prefecture, making them wholly
owned subsidiaries: One's Own House Co., Ltd., which is active in sales of detached homes, and Rise
Home Co., Ltd., which is active in building detached homes.
Rise Home Co., Ltd.
(Unit: Millions yen)

One's Own House Co., Ltd.

Sales

Ordinary income

2,500(Unit: Millions yen)

2,139

2,097

1,200

Net income

2,114

1,154

973

1,000

2,000

807
800

1,500
600

1,000

400

500

200

106

133

81

152

86

62

104

80

46

102

52

67

0

0
Term ended June 2016

Term ended June 2017

Term ended February 2017 Term ended February 2018 Term ended February 2019

Term ended June 2018

Projected to experience stable development as a bedroom community for those working in central Tokyo, theSaitama area is among the most attractive in the metropolitan area. We plan to strengthen our real estatedevelopment business, with a focus on sales of condominiums and detached homes in Saitama Prefecture.
Supply of condominium units by district in the metropolitan
area
2017

23 wards ofTokyo
Other areas ofTokyo
Kanagawa
Saitama
Chiba
Metropolitan
area total

2018

YoY change

2019 forecast(Units)Population change by prefecture
Rank

Prefecture

Change16,017

15,957-0.4%

16,000

0.3%

4,016

3,666

-8.7%

4,000

9.1%

Nationwide

1

Tokyo

8,540
3,956
3,369

8,212
4,294
5,003

-3.8%
8.5%
48.5%

8,500
4,500
4,000

3.5%
4.8%
-20.0%

2
3
4

Saitama

35,89837,132

3.4%

37,000-0.4%

Source: Real Estate Economic Institute Co., Ltd., Metropolitan Area Condominium Market

Ranking of most desirable communities in w hich to liv e (metropolitan area as a w hole/up to three answ ers)

Population change (%)
2017

2018

2019

Population (million)(example of main rail lines)

1

→

1

Yokohama (JR Tokaido Main Line)

Score
2019

Change

22%

995
822
774

126.7

2

→

2

Ebisu (JR Yamanote Line)

871

6%

0.73

0.80

13.7
7.3
1.4

3

3

Kichijoji (JR Chuo Line)9

Omiya (JR Keihin-Tohoku Line)

5

→
↗
↗

7

Shinjuku (JR Yamanote Line)

774
567
551

0%
11%
5%

6

↘

4

Shinagawa (JR Yamanote Line)

517

-6%

7

↗
↗
↘
↗

Aichi

0.32
0.40
0.32

5

Chiba

0.16

0.21

6

Kanagawa

0.15

0.20

7.5
6.2
9.2

4

8
9
10

2018

1,211

-0.13

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Population Estimates (as of October 1,
2017)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Station
2018

-0.18

0.28
0.26
0.24

Okinawa

Ranking

2,019

8

Meguro (JR Yamanote Line)

498

-4%

10

Uraw a (JR Keihin-Tohoku Line)

6

Musashi-Kosugi (Tokyu T oyoko Line)

14

Kamakura (Enoshima Electric Railway)

465
453
448

8%
-16%
26%

511
527
552
520
430
542
356

Source: Recruit Sumai Company Ltd.

13

TOPICS ④ Commencement of overseas
business development
Following investment in a Hawaii real estate investment fund, moving to further global businessdeployment by launching our first overseas condominium development project

We launched our overseas business development efforts by investing in a Hawaii real estate investment fund in February 2019.
In August 2019, we began participating in a condominium development project undertaken by the Thai real estate developer
Origin Property in Samut Prakan Province, adjacent to the capital city of Bangkok.
This marked our first condominium development project overseas.
Slated to encompass a total of 474 residential units and one shop, this condominium development project is located one
minute's walk from Thipphawan Station on the MRT elevated railway line, which is scheduled to enter service in 2021.
With numerous facilities nearby, including commercial facilities and an international school, the development is located in
an area expected to experience growing development, with service anticipated from an extension of the MRT from
central Bangkok.
As we also focus on efforts targeting new
business areas with an eye to the future, weplan to deploy a multifaceted real estatebusiness capable of contributing globally tosociety.

Knightsbridge Sukhumvit-Thepharak Project
Location

Bang Mueang Mai, Mueang Samut Prakan, Samut Prakan 10270,
ThailandTransportation

1.7 km from Samrog Station on the BTS Line

Site land area

3,016m2

Total floor area

25,891.52m 2

Exclusive floor
area

13,799.00m 2

Scale (planned)

36 aboveground floors, one underground floor

Total units(planned)

474 residential units, one shop

Construction
April 2021
completion slated:

14
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

2nd Medium-Term Management PlanIDEAL to REAL 2019
FY2019 performance plans

15
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

2nd Medium-term Management Plan −Basic Policy and Corporate Strategy
Basic Policy

IDEAL to REAL 2019
Turning ideals into reality andcreating a new future.
We will follow our basic policy of putting our customers first, fully accomplishing
our mission as “Life Developers” who develop the living styles of our customers,
and continuing to evolve and grow as a company indispensable to society.

Corporate Strategy
1. Maximization of company value and returns to shareholders
2. Construction of a firm management foundation that can withstand any economic
environment
3. Diversification of business for continuous and stable growth
4. Construction of a firm management foundation (quality), rather than expansion ofcompany size (quantity)
5. Fulfillment of corporate social responsibility to return not only to shareholders but also
to all stakeholders and society
16
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

2nd Medium-term Management Plan −Growth Action Plan & Current Progress

Current progress① Further strengthening ofcore business

For the condominium sales business, which is our core business, instead of merely
increasing the number of units, we aim to provide a stable supply of 500 to 600 units peryear.
In FY2019, the final year of our 2nd medium-term management plan, we aim to completely
shift the sales of condominiums to our own sales structure, further acquiring ourcustomers’ trust and improving the profit ratio by internalizing the sales expenses that had
been flowing out in the conventional sales structure.

For our core condominium sales business, we secured sites
sufficient for about 800-1,000 units for each of the next two
years (FY2020, FY2021).
We’re making steady progress in expanding our sales force,
which currently numbers 31.

② Improving company value
through diversification ofmultiple core business

While keeping the condominium sales business as our main core business, we will alsoestablish the commercial development business and the hotel development business as
new core businesses.
In addition, we aim to diversify real estate related businesses and to become acomprehensive developer that can repeatedly grasp business opportunities throughmultiple core businesses.

Making steady progress in the diversification of ourbusinesses beyond the condominium sales, commercial
development, hotel development, logistics development, andland readjustment businesses, we’ve ventured into new
domains, including launching overseas businesses.

③ Securing stable long-term
stock revenue through active
development of real estateleasing business

Through the active development of the real estate leasing business, we aim to reduce therisk of price fluctuation of our real estate products caused by diversification of businesses,
hold high-quality assets that produce stable long-term rental income, and further improvethe management stability.
Specifically, at the end of FY2019, the final year of our 2nd medium-term management
plan, we aim to hold or develop lease assets that can fully cover general administrative
expenses with rental income.

In the commercial development business, we’restrengthening NSC development efforts through strong ties
to local communities. Following tonarie Yamato-Takada's
grand opening in November 2018, tonarie Toga-Mikita
opened in April 2019. We’re identifying assets suitable as
long-term holdings to strike a balance between assets for the
REIT and assets to be sold to third parties.

④ Expansion of real estate
sales business throughstable supply of high-quality
real estate as a main sponsorof the listed REIT formation

We aim to achieve the listing of the new investment corporation established in August
2016 on the Tokyo Stock Exchange early, and as a main sponsor of the REIT’s external
growth strategy, we will ensure the stable supply of high-quality real estate with a focus onleasehold commercial facilities, supporting sustainable growth of the REIT and expanding
the real estate sales business of our company.

ESCON JAPAN REIT Investment Corporation was listed on
the J-REIT market in February 2019. Its initial asking pricewas 101,000 yen (price as of August 27, 2019: 116,700 yen).

⑤ Expanding the range anddepth of real estatedevelopment capabilities
through enhancement of realestate operation businessWe aim to be a peerless comprehensive developer that not only develops real estate but
also possessing operational function suited to the utility form of the real estate.
Specifically, in addition to AM businesses and PM businesses such as commercial facilities,
we will actively engage in the management of hotels, food and beverage businesses suchas cafés, apartment building management and renovation businesses of our groupcompanies, maximizing the value of real estates in the process.

In the AM business and the PM business of commercial
facilities, we continue to develop or acquire new commercial
facilities. We will continue to focus on maximizing the valueof our real estate.

⑥ Improving corporate brandpower

We will implement aggressive public relations strategies and improve our corporate brandpower. We will also thoroughly pursue improvement in the quality of our condominium
brand “Le JADE” in order to gain the overwhelming trust and support of our customers,
thereby improving the awareness of the product brand.

We’re continuing to air TV commercials for the Grand Le
JADE brand. We intend to continue focusing onstrengthening our corporate brand.

We’re committed to enhancing corporate value by putting customers first and accounting
for the needs of society, governance, and the environment. Through our urban
development efforts, we rise to meet the changing values of these times and strive toaddress, as a life developer responsible for creating living spaces, the issues confronting
society.

We continue to focus on our goal of being the first in the realestate industry to earn a two-star GRESB rating.
We also have begun efforts to promote the ZEH-M
condominiums (Okurayama, Yokohama-shi).
We also intend to promote the development of eco-friendly
residences by preparing our own environmental design
standards and other materials through joint research with theInoue Laboratory of the Tokyo University of Science⑦ ESG initiatives to create newvalue and achievesustainable growth

E: Pursuing proactive initiatives to help solve global environmental issues and business activities thatprovide safe, comfortable lives and help establish sustainable societies
S: Establishing management foundations to achieve stable growth and meet our corporate social
responsibilities in local communities
G:Enhancing our approach to governance companywide based on the Corporate Governance CodeCopyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

17

2nd Medium-Term Management Plan Performance
Plans• In the final year of the Medium-Term Management Plan, we’re continuing to make steady progress according to plans.
• Performance has improved substantially YoY in each of the fiscal years of the Medium-Term Management Plan.
Performance for the final fiscal year is projected to show YoY improvements of 37.7% in sales, 8.1% in operating income,and 6.7% in ordinary income.
(Unit: Million yen)
Term ended December 2017
(23rd term)

Term ended December 2018 (24th term)

Term ending December 2019 (25th term)

Performance planYoY change

Full-year results

Sales

Real estate sales businessInitial plan

Initial full-year plan

Full-year results

YoY change

vs. full-year
plan

Revised full-year plan

Initial full-year planYoY change

vs. initial full-year plan

2Q results

vs. plan

44,724+ 30.2%57,000to 58,000

55,70054,325+ 21.5%-1,37460,000to 62,000

30,22874,800+ 37.7%

14,800+ 24.7%

41,168+ 34.2%

54,900to 55,800

52,60050,519+ 22.7%-2,08057,800to 59,700

27,76370,250+ 39.1%

12,450+ 21.5%

Condominium sales business

19,50025,089+ 28.7%

5,114

36,250+ 44.5%

Other businesses

21,66825,429+ 17.4%

22,64834,000+ 33.7%

Real estate leasing business

3,459

-3.8%

1,900
to 2,000

2,900

3,400

-1.7%

500

2,000
to 2,100

2,392

4,300

+ 26.5%2,300+ 115.0%

96+ 47.7%

200

200

405

+ 321.9%

205

200

72

250

-38.3%

50+ 25.0%Operating income

7,042+ 50.5%7,500
to 8,500

9,900

11,561+ 64.2%

1,661

8,200
to 9,500

6,788

12,500+ 8.1%

4,300+ 52.4%

Ordinary income

5,988+ 67.5%6,500
to 7,500

8,700

10,498+ 75.3%

1,798

7,200
to 8,500

6,197

11,200+ 6.7%

4,000+ 55.6%

Real estate planning, brokerage, andconsulting businesses

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

18

2nd Medium-term Management Plan: Management
Indexes, Dividend Trends, Dividend Policy• The equity ratio decreased slightly YoY due to increased inventories resulting from proactive purchasing for growth.
• Earnings per share (EPS) in the final fiscal year are projected to be 115.1 yen.
Term ending Decem ber 2019 (25th term )Term ended December 2017 (23rd term) Term ended December 2018 (24th term)Management index

Full-year results

Full-year results

Initial full-year plan

Revised full-year plan

Equity ratio

24.8%

24.9%

33.0% to 35.0%

×

22.6%

ROE
(return on equity)

28.1%

29.6%

18.0% to 21.0%

〇

25.9%

ROA
(return on assets)

6.8%

7.4%

6.0% to 7.0%

〇

6.1%

ROIC
(return on invested capital)

8.4%

10.2%

7.0% to 9.0%

△

6.9%

81.77 yen105.98 yen

75 to 85 yen〇 115.10 yen

EPS(earnings per share)*ROIC (return on invested capital): Net operating profit after tax / (Shareholders' equity + Interest-bearing liabilities)

Dividend trend

EARNING S PER SHARE ( EPS)

Dividend (yen)105.98115.10

Dividend payout ratio
Acquisition of treasury stock(million yen)

Term ended December 2017
(23rd term)

Term ended December 2018
(24th term)

Term ending December 2019
(25th term)

Results

Results

Plan

18

32

35

22.0%

30.2%

30.4%

449

-

40

30.9%

30.2%

30.9%

81.77
Total payout ratio

58.76
Dividend policy
To provide even more stable returns to shareholders, we have adopted a progressive dividend policy for the periodTerm ended
December 2016

Term ended
December 2017

Term ended
December 2018

Term Ending
December 2019(planned)covered by the 2nd Medium-term Management Plan (FY2017 to FY2019). Under this policy, the dividend per share (DPS)
must be equal to or greater than the DPS for the previous term. In other words, our basic stance is not to cut dividends.
This progressive dividend policy, which clearly states that we will maintain or increase dividends, not reduce them,
represents a promise to shareholders to enhance our value in a sustained manner.
By introducing this progressive dividend policy, we will strive to achieve stable dividends, enhance the transparency of
future dividend scales, and further strengthen and improve sustainable company value.

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

19Term Ending December 2019 – Real Estate
Sales Business•In the condominium sales business, we are making progress according to plans. Based on contracts concluded as of August 26, we have sold
653 condo units, or 86.0% of the planned number of 759 units, and achieved a ratio of 76.9% of planned sales.
In other businesses, through sales of commercial facilities and land to ESCON JAPAN REIT Investment Corporation accompanying its listing on
the J-REIT market and sales of revenue-generating hotel properties, we are making steady progress (96.7% of the planned figure based oncontracts concluded as of August 26).

•
80,00070,250(Full-year forecast)

70,000Other
60,000Other50,519 (result)
50,000Progress based oncontracts concluded

34,00096.7%

41,168 (result)

40,00025,42930,687 (result)
30,00027,763 (result)

21,6689,822

Condominium
business

20,000Progress based oncontracts concluded

36,25022,64810,000Condominium sales

76.9%

25,08920,865

19,500Term ended
December 2016
(Results)

Term ended
December 2017
(Results)

5,114

0(Unit: Million yen)2016 (22nd term)

Term ended
December 2018
(Results)

2017 (23rd term)

2Q of term ending
December 2019
(Results)

2018 (24th term)

Term ending
December 2019
(Forecast)2019 (25th term)● Grand Le JADE Shukugawa Kurakuenguchi(Kinki region)● Le JADE Takatsuki The Marks(Kinki region)● Feel Garden Minamisenri(Kinki region)● Mirakita City Himeji(Kinki region)● Le JADE Takatsuki(Kinki region)● Le JADE Takatsuki Cross(Kinki region)● Le JADE Minamimorimachi(Kinki region)● Le JADE Otsu LUXE

(Kinki region)(Kinki region)● Le JADE Nishitanabe Abeno Hannancho● Le JADE Fushimi Chushojima(Kinki region)● Grand Le JADE Okamoto(Kinki region)● Grand Le JADE Takatsuki Tenjin(Kinki region)● Le JADE Yokohama Tsurumi(Metropolitan area)● Le JADE Otsu Nagisa-koen(Kinki region)● Le JADE Nagaokakyo(Kinki region)● Le JADE Hama-Otsu(Kinki region)● Le JADE Musashisakai(Metropolitan area)● Le JADE Komagome(Metropolitan area)● Le JADE Sazan Gate Toyota(Metropolitan area)● Le JADE Takatsuki Kosobe(Kinki region)

Sold out● Le JADE Toyoda(Metropolitan area)● Le JADE Vert Komagome(Metropolitan area)● Le JADE Kawasaki(Metropolitan area)● Le JADE Sumakaihin Koen

(Kinki region)

Sold out● Le JADE Minami Kasai(Metropolitan area)● Grand Le JADE Wakamatsucho Residence(Metropolitan area)● Grand Le JADE Shibuya Tomigaya(Metropolitan area)● Le JADE Shinkanaoka Park Fields(Kinki region)

Sold out● Le JADE Musashino Residence(Metropolitan area)● Le JADE Sakurajosui Tiara(Metropolitan area)● Grand Le JADE Ochanomizu(Metropolitan area)● Le JADE Minami-Ibaraki MUSE

(Kinki region)● Le JADE Minami Kasai Park Arena(Metropolitan area)● Le JADE Yokohama Hananoki(Metropolitan area)● Le JADE Nakano(Metropolitan area)● Le JADE Tsujido Higashi Kaigan(Metropolitan area)● Le JADE Bio Funabashi Kitanarashino(Metropolitan area)● Grand Le JADE Todoroki(Metropolitan area)● Grand Le JADE Jiyugaoka(Metropolitan area)● Grand Le JADE Shonan Enoshima R134

(Metropolitan area)

Condominium sales ● Le JADE Setagaya Kinuta
business

分(Metropolitan area)

491 units (results)

476 units (results)

491⼾実績

● Chuo-ku Shimamachi Project (revenue-generating real estate)● Kobe-shi Nishi-ku Otsukadai Project (commercial leasehold)● Takatsuki-shi Josaicho Project (land planning)

759 units (forecast)(Kinki region)● Chuo-ku Hirano Project (hotel)(Kinki region)● Minamisenba III Project (hotel)(Kinki region)● Minamisenba I Project (hotel)(Kinki region)

Sold out(Kinki region)● tonarie Seiwadai Project (commercial leasehold)(Kinki region)● Kitakyuhoji Project (hotel)(Kinki region)● Nagahoribashi Ekimae Project (hotel)(Kinki region)

Sold out(Kinki region)● tonarie Minamisenri Project (commercial leasehold)(Kinki region)● Awajicho I Project (hotel)(Kinki region)● Awajicho III Project (hotel)(Kinki region)(Metropolitan area)● Sakai-shi Daisen I/II Project (commercial leasehold)(Kinki region)● Awajicho II Project (hotel)(Kinki region)● Sakai-shi Daisen-nishi II Project (commercial)(Kinki region)

Sold out(Metropolitan area)● Kita-ku Tsurunocho Project (hotel)(Kinki region)● Kobe-shi Nishi-ku Mitani Project (commercial)(Kinki region)

Sold out● Nihonbashi Bakurocho Project (hotel)(Metropolitan area)● Sendagaya Project (revenue-generating real estate)(Metropolitan area)● Shimotakaido A Project (revenue-generating real estate)(Metropolitan area)

Completed(Other)● Nishi-ku Kawaguchi Project (land planning)(Metropolitan area)● Wakamatsucho 31 Project (revenue-generating real estate)(Metropolitan area)● Nakano-ku Nakano Project (land)(Metropolitan area)

Sold out(Other)● Sendagaya Project (revenue-generating real estate)(Metropolitan area)● Chiyoda-ku Hayabusa-cho Project (hotel)(Metropolitan area)● Asumigaoka Project (commercial)(Metropolitan area)

Sold out(Other)● Kanazawa-shi Oyamamachi Project (hotel)(Other)● Kanazawa-shi Horikawashinmachi Project (hotel)(Other)● China Oyumino Project (commercial)(Metropolitan area)

Sold out● Sapporo-shi Project (hotel)(Other)● Fukuoka Kasuga Project (land planning)(Other)● Nishishiroi Ekimae Project (commercial)(Metropolitan area)

Sold out● Kurashiki-shi Oimatsucho Project (commercial leasehold)(Other)● Grand Le JADE Sanbancho Project (single building)(Metropolitan area)● Fukuoka Kasuga Project (land planning)(Other)● Pare Marche Nishiharu Project (commercial)(Other)● Fukuoka Kasuga Project (land planning)(Other)● Ibaraki Tsuchiura-shi Project (commercial leasehold)● Chigasaki-shi Misumicho Project (land planning)(Metropolitan area)● Nihonbashi Kayabacho Project (hotel)(Other)Other (commercial, ● Fukuoka Kasuga Project (land planning)
revenue-generating Nagoya Sunadabashi Project (anonymous partnership investment)●
real estate, land
● Mie Nabari-shi Project (land planning)planning, hotel, and Tochigi Nikko-shi Project (commercial leasehold)●other businesses)

539 units (results)

541⼾予定約

Sold out● Fukuoka Koga Project (land planning)

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved(Other)Completed
Sold out
Sold out
Contract concluded forpart of project20

Condominium Sales Business “Le JADE
Series” Fiscal 2019

Grand Le JADE Shonan Enoshima R134 (Metropolitan area)
Location: Fujisawa-shi, Kanagawa
Access: 9-minute walk from Katase Enoshima Station on Odakyu Enoshima Line
9-minute walk from Shonan Kaigan Koen Station on Enoshima Dentetsu Line
No. of residences: 24 (including 2 units not for sale)
Occupancy date: March 23, 2019

Grand Le JADE Todoroki (Metropolitan area)

Mirakita City Himeji (Kinki region)
Location: Himeji-shi, Hyogo
Access: 4-minute walk from Nozato Station on JR Bantan Line
No. of residences: 143 (including 9 units not for sale)
Occupancy date: February 20, 2019

Location: Setagaya-ku, Tokyo
Access: 12-minute walk from Todoroki Station; 12-minute walk from
Oyamadai Station on Tokyu Oimachi Line
No. of residences: 43
Occupancy date: Slated to start late November 2019

Le JADE Tsujido Higashi Kaigan (Metropolitan area)
Location: Fujisawa-shi, Kanagawa
Access: 17-minute walk (SEA-SIDE VILLA)/18-minute walk (GARDEN-SIDE VILLA) from
Kugenuma-kaigan Station on Odakyu Enoshima Line; 9-minute bus ride from Tsujido Station on
JR Tokaido Line and 3-minute walk (SEA-SIDE VILLA)/4-minute walk (GARDEN-SIDE VILLA)
from Shoyo Chugakko-mae bus stop
No. of residences: 51 (25 in SEA-SIDE VILLA, 26 in GARDEN-SIDE VILLA)
Occupancy date: Slated to start late December 2019

Le JADE Shinkanaoka Park Fields (Kinki region)

Le JADE Sumakaihin Koen (Kinki region)

Le JADE Takatsuki Kosobe (Kinki region)

Location: Sakai-shi, Osaka
Access: 4-minute walk from Shinkanaoka Station on
Osaka Metro Midosuji Line
No. of residences: 204 (plus one management office,one guest room, one party room and library/conferenceroom)
Occupancy date: Slated to start late October 2019

Location: Kobe-shi, Hyogo
Access: 3-minute walk from Sumakaihin Koen Station on JR Kobe Line
No. of residences: 30 (plus management office)Occupancy date: Slated to start late September 2019

Location: Takatsuki-shi, Osaka
Access: 15-minute walk from Takatsuki Station on JR Kyoto Line
14-minute walk from Takatsuki-shi Station on Hankyu Kyoto Line
No. of residences: 181 (plus one management office, one grandkitchen [conference room], one owners’ library, one indoor park,and one guest room)
Occupancy date: Slated to start late September 2019

Sold out

Sold out
Le JADE Minami-Ibaraki MUSE
(Kinki region)
Location: Ibaraki-shi, Osaka
Access: 7-minute walk from Minami-Ibaraki
Station on Hankyu Kyoto Line; 9-minute walkfrom Minami-Ibaraki Station on Osaka MonorailLine
No. of residences: 40 (plus management office)Occupancy date: Slated to start late August 2019

Sold out
Grand Le JADE Takatsuki Tenjin (Kinki region)
Location: Takatsuki-shi, Osaka
Access: 7-minute walk from Takatsuki Station
on JR Kyoto Line
17-minute walk from Takatsuki-shi Station on
Hankyu Kyoto Line
No. of residences: 28 (plus management office)Occupancy date: June 2019

Sold out
Le JADE Otsu LUXE (Kinki region)
Location: Otsu-shi, Shiga
Access: 11-minute walk from Zeze Station on JR
Tokaido Main Line/Biwako Line; 3-minute walk from
Ishiba Station on Keihan Ishiyama-Sakamoto Line
No. of residences: 35 (including three offices, plus
one management office)Occupancy date: Slated to start late December 2019

Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Le JADE Hama-Otsu(Kinki region)
Location: Otsu-shi, Shiga
Access: 4-minute walk from Biwa-ko HamaOtsu Station on Keihan Keishin Line; 3minute walk from Miidera Station on Keihan
Ishiyama-Sakamoto Line
No. of residences: 51 (plus management
office)Occupancy date: Slated to start late
December 201921

Condominium Sales Business “Le JADE
Series” Fiscal 2020, 2021

Sold out
Le JADE Kotoen (Kinki region)
Location: Nishinomiya-shi, Hyogo
Access: 5-minute walk from Kotoen Station on Hankyu Imazu Line;
6-minute walk from Kotoen bus stop on Hankyu bus route
No. of residences: 49
Occupancy date: Slated to start late February 2020

Le JADE Kuzuha Condominium
Redevelopment Project (Kinki region)
Location: Hirakata-shi, Osaka
Access: 16-minute walk from Kuzuha Station on
Keihan Main Line
No. of residences: 78 (including 31 units not for sale)
Occupancy date: Slated to start late February 2020

Le JADE Nishinomiya Kitaguchi Hinokuchicho (Kinki region)
Location: Nishinomiya-shi, Hyogo
Access: 14-minute walk from Mondoyakuzin Station on Hankyu
Imazu Line
No. of residences: 94
Occupancy date: Slated to start late May 2020

Le JADE Higashisumiyoshi Imagawa
Ryokudo (Kinki region)

Le JADE Ikeda Masumicho (Kinki region)
Location: Ikeda-shi, Osaka
Access: 2-minute walk from Ikeda Station on Hankyu
Takarazuka Line
No. of residences: 35
Occupancy date: Slated to start late May 2020

Location: Osaka-shi, Osaka
Access: 4-minute walk from Tobushijomae
Station on JR Kansai Main Line
No. of residences: 41 (plus one
management office)Occupancy date: Slated to start late
February 2020

Yokohama-shi Kohoku-ku
Okurayama Project (Metropolitan
area)
Hiratsuka-shi Matsukazecho Project(Metropolitan area)
Kamakura-shi Zaimokuza Project(Metropolitan area)
Higashinari-ku Nakamichi 1-chome
Project(Kinki region)
Le JADE Takatsuki Miyanocho (Kinki region)

Grand Le JADE Shukugawa Residence (Kinki region)

Le JADE Utsukushigaoka (Metropolitan area)

Location: Takatsuki-shi, Osaka
Access: 18-minute walk from Takatsuki-shi Station on Hankyu Kyoto Line
No. of residences: 99
Occupancy date: Slated to start late March 2020

Location: Nishinomiya-shi, Hyogo
Access: 4-minute walk from Sakura-Shukugawa Station on JR
Kobe Line
No. of residences: 13
Occupancy date: Slated to start late June 2020

Location: Yokohama-shi, Kanagawa
Access: 6-minute walk from Azamino Station on Tokyu Denentoshi Line and Yokohama Municipal Subway Blue Line
No. of residences: 90
Occupancy date: Slated to start late August 2020

Le JADE Toyoda Master Hills(Metropolitan area)
Location: Hino-shi, Tokyo
Access: 2-minute walk from Toyoda Station on JR
Chuo Line
No. of residences: 63
Occupancy date: Slated to start late March 2020

Fiscal 2021
Minato-ku Shirokane Project(metropolitan area)

Amagasaki-shi Mukonosohonmachi Project(Kinki region)

Suita-shi Aoyamadai 3-chome(Kinki region)

Takatsuki-shi Besshonakanocho
Project (Kinki region)

Myohoji Ekimae Project (Kinki region)

Suita-shi Furuedai 5-chome Project(Kinki region)

Akashi-shi Nishiakashi Ekimae Project(Kinki region)

Yamatotakada Saiwaicho Project(Kinki region)
Ibaraki-shi Higashichujocho Project(Kinki region)

Sumiyoshi-ku Minami-Sumiyoshi 2-chome
Project (Kinki region)

22
Copyright ©2019 ES-CONJAPAN Ltd., All Rights ReservedHotel Development Business

Kayabacho, Nihonbashi
Opened in December
2016
102 rooms

Sold

Hayabusacho, Chiyoda-ku
Opened in April 2018
102 rooms
Sold

Bakurocho, Nihonbashi
Opened in April 201763 rooms

Horikawa Shinmachi,
Kanazawa-shi
Opened in April 2018
121 rooms

Hiranomachi,
Chuo-ku, Osaka-shi
Opened in April 2017
96 rooms

Sold

Awajicho I, Chuo-ku,
Osaka-shi
Opened in May 2018
168 rooms

Sold

Sold

Sold

Sapporo-shi, Hokkaido
Opened in July 2017
144 rooms

Awajicho II, Chuo-ku,
Osaka-shi
Opened in June 2018
168 rooms

Sold

Sold

Oyamamachi, Kanazawa-shi
Opened in December 201747 rooms

Kitakyuhojimachi, Chuo-ku,
Osaka-shi
Opened in June
Sold
2018
182 rooms

Minamisenba III,
Sold
Chuo-ku, Osaka-shi
Opened in January 2018
100 rooms

Sold

Tsurunocho, Kita-ku,
Osaka-shi
Opened in
Sold
November 2018
134 rooms

Nagahoribashi Ekimae
Opened in December 2018
96 rooms
Sold● Numbers of hotel projects
Tokyo
metropolitan Kinki regionarea

No photo
Coming soon
Sold

3

Other

Total

8

3

14

2

1

3

10

4

17

0

Sales contract signed
Other

Total
Awajicho III, Chuo-ku,
Osaka-shi
Opened in February 2019184 rooms

Minamisenba I,
Chuo-ku, Osaka-shi
Opened in April 2019
256 rooms

Sold

Nakasu, Hakata-ku,
Fukuoka-shi
Slated for April 2020
103 rooms

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Nishi-Shinsaibashi,
Chuo-ku, Osaka-shi
Slated for December
2020
52 rooms

323Commercial Development Business, Logistics
Business, Land Readjustment Business

Daisen-nishi I, Sakai-ku, Sakai-shi

soyoca Fujimino (Fujimino-shi, Saitama)

tonarie Yamato-Takada (Yamatotakada-shi, Nara)

Tsukuba CREO (Tsukuba-shi, Ibaraki)

LOGITRES Tojo (Kato-shi, Hyogo)
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tonarie Toga-Mikita (Sakai-shi, Osaka)

Tsukuba Q’t/MOG (Tsukuba-shi, Ibaraki)

Koga-shi Genboen land readjustment project (Koga-shi, Fukuoka)
Left: aerial photo Right: Current site plan, conditions of neighboring land

KoLuTeNa I (Sapporo-shi, Hokkaido)24

Term Ending December 2019 − Real Estate
Leasing Business• We’re making steady progress on rental income and continuing to focus on this business, which is expected togenerate stable revenues.
(Unit: Million yen)
4,500

4,300

4,200

4,000

Rental income
3,594

3,459

3,500

3,400

Generaladministrative
expenses

3,277

2,782

3,000

2,520
2,500

2,058

2,392
2,241

2,000

2,128
1,761

1,801
1,536

1,500

1,000

Segment profit

5000Term ended
December 2016
(Results)

Term ended
December 2017
(Results)

Term ended
December 2018
(Results)

2Q of term ending
December 2019
(Results)

Term ending
December 2019
(Forecast)

25
Copyright ©2019 ES-CONJAPAN Ltd., All Rights Reserved

Strategic Business Expansion of ES-CON
JAPAN GroupAs of August 26, 2019

ES-CON JAPANGroup companies
Property
management(PM) ofcommercial
facilities

International
business

Logistics
development

Condominium units: approx. 10,744 units (approx. 8,566 units in
Kansai; approx. 2,268 units in Kanto)
Detached houses/housing land development: approx. 700
sections
Commercial development etc.: Acquiring and developing
properties throughout the country
Hotel development: acquisition of land for over approx. 2,118
rooms Developing in Tokyo, Osaka, Hokkaido, Kanazawa, andFukuoka
Overseas business development: Investment in Hawaii realestate fund, participation in condominium development project inThailandCommercial
development

Collaboration

ES-CON PROPERTY Ltd.

■ＲＥＩＴReal estate asset
management
(AM)

REIT

Hokkaido

ESCON JAPAN REIT Investment
CorporationLand
readjustment

Condominium
management

Condominiums
Hoteldevelopment

Officedevelopment

Hotel: 1 project
Commercial facility (including
leasehold): 2 projects

ES-CON ASSET MANAGEMENT Ltd.

Hokuriku
Hotel: 2 projects

Collaboration
ES-CON LIVING SERVICE Ltd.

Detached
housingbusiness in
SaitamaRentalresidential
development

Detached housingbusiness in Saitama

One's Own House Co., Ltd.
Rise Home Co., Ltd.

Kansai
Condominiums: 145
buildings
Hotel: 10 projects
Commercial facilities (including
leasehold): 13 projects
Logistics facilities:
1 project

Kanto
Condominiums: 48 buildings

The ES-CON JAPAN Group(including 1 renovation project)

Chubu

Comprehensive developer operating a multifaceted real estate businessWe will maintain our focus on the Kansai region, which promises market vitalization thanks to the planned
exposition, IR, etc.
We will focus on further growth in the enormous Kanto market.
Proactive deployment in the Chubu region through capital and business partnership with Chubu Electric Power
Full-scale deployment in the Fukuoka region
Launching overseas business development to advance globally
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Hotel: 5 projects
Commercial facilities (including
leasehold): 6 projects

Commercial facilities: 1
project

KyushuHotel: 1 projectLand readjustment: 1 project
Large complex development: 1
project

Current state ofdevelopment by
area

26

Information
ESCON Japan Ltd.
Email: ir@escon.jp
Tokyo12th Floor, Try Edge Ochanomizu, 4-2-5 Kanda Surugadai,
Chiyoda-ku, Tokyo 101-0062☎03-5297-6161* We plan to relocate our Tokyo Head Office on October 21, 2019.
New address: 20th Floor, Okura Prestige Tower
10-4 Toranomon 2-chome, Minato-ku, Tokyo 105-0001

Osaka
13th Floor, Meiji Yasuda Seimei Building, 4-1-1 Fushimimachi,
Chuo-ku, Osaka 541-0044☎06-6223-8055

ESCON JAPAN Official
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