Financial
Resultsfor Second Quarter of
Fiscal YearEnding December 2022

Artist’s conception of completed
Le JADE Cross Chiyoda Jimbocho

Table of Contents⚫ Segment Results for Second Quarter of Fiscal YearEnding December 2022
P/L for Second Quarter of Fiscal Year Ending December 2022
Segment Results for Second Quarter of Fiscal Year Ending
December 2022
B/S for Second Quarter of Fiscal Year Ending December 2022

P.3
P.4, 5, 6, 7
P.8

⚫ Major Topics for Second Quarter of
Fiscal Year Ending December 2022
Synergies Achieved to Date with the Chubu Electric Power Group
Business Progress in Hokkaido
Community Vitalization through Real Estate Development
Steady Growth of the Condominium Business
Structure of ES-CON JAPAN Group Initiatives
Administrative Disposition Imposed on ES-CON ASSETMANAGEMENT Ltd.
ESG Initiatives

P. 10
P. 11, 12, 13
P. 14
P. 15
P. 16
P. 17, 18, 19, 20
P. 21, 22, 23⚫ Progress on Fourth Medium-Term Management Plan
- IDEAL to REAL 2023 (FY2021-2023)
Basic Policy
Ten-year Trends in Financial Results
Planned Financial Results
Management Targets
Investment Plans
Trends in the Real Estate Sales Business
Trends in the Real Estate Leasing Business
ES-CON JAPAN Group’s Business Development
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

P. 25
P. 26
P. 27
P. 28
P. 29
P. 30
P. 31
P. 32

*Key to this document
EAM: ES-CON ASSET MANAGEMENT Ltd.
ESH: ES-CON HOME Ltd.
ESC: ESCON CRAFT Ltd.
Picasso Group: PICASSO CO., LTD. andother companies
FUEL: FUEL Inc.
EJR: ES-CON JAPAN REIT Investment
Corporation
Chubu Electric Power: Chubu Electric Power
Co., Inc.
Chuden Real Estate: Chuden Real EstateCo., Inc.

2

P/L for Second Quarter of Fiscal Year Ending December 2022
➢ We exceeded initial plans by 12.6% (4.5 billion yen) for sales, 20.0% (900 million yen) for operating profit, and 35.2% (1.3 billion yen)for ordinary income. 1➢ Both sales and profit increased from the same period last year. 2
12

Second Quarter of Fiscal YearEnding December 2022
ActualInitial plans

Initial plan
Change+ 4,576

Percentage+ 12.6%

Second Quarter of
Fiscal Year Ending
December 2022
(Previous term)(Unit: Million yen)Compared to previous term
ChangePercentage

24,980+ 15,896+

63.6%

10,896

7,119+ 3,777

+

53.1%

5,255

4,557

+

+

15.3%

Selling expenses

1,911

2,051

General administrative expenses

3,343

2,506

+

2,561

+ 3,080+ 120.3%

+

+

Sales

40,876Gross profit
Selling, general and administrative
expenses

Operating profit

5,641Interest expenses

36,300

4,700

+

941

+ 20.0%

925

641

698
-140
837

284

-6.8%
+

33.4%

44.3%

Ordinary income

5,136

3,800

+ 1,336+ 35.2%

1,934+ 3,202+ 165.6%

Profit in the quarter attributable toowners of the parent

3,296

2,600

+

696

+ 26.8%

1,388+ 1,908+ 137.5%

Basic earnings per share in the quarter
(yen)

34.52

29.43

+ 5.09+ 17.3%17.07+ 17.45+ 102.2%

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved3Segment Results for Second Quarter of Fiscal Year Ending December 2022
➢ Both sales and profit increased in every segment from the same period last year.

➢ In the Real Estate Sales Business, steady progress on condominium sales resulted in the delivery of 517 units, up 71 units from theinitial target of 446 units.
(Unit: Million yen)
Second Quarter of Fiscal YearEnding December 2022 (A)SalesReal estate sales
business

Segment income

Second Quarter of Fiscal Year
Ended December 2021 (B)Segment profit
margin35,056

6,570

18.7%

24,312

3,421

Other sales

10,743

Real estate leasing
business

Sales

Segment income

Compared to previous term (A-B)

Segment profit
marginSales+ 13,800

Segment income

Segment profit
margin(Percentage point)+ 2,746+ 0.7

21,256

3,824

18.0%

14.1%

18,098

2,664

14.7%

+ 6,214

+

757

-0.6

3,148

29.3%

3,157

1,159

36.7%

+ 7,586+ 1,989

-7.4

5,515

2,132

38.7%

3,427

1,504

43.9%

+ 2,088

+ 628

-5.2

Real estateplanning agency
and consulting
business

304

19

6.3%

296

-309

-

8

-

-

Total

40,876

8,722

21.3%

24,980

5,019

20.1%

+ 15,896+ 3,703+ 1.2(517 units)

Condominium
sales(445 units)

 Share of sales by segment(+72 units)

Real estate planning agency
and consulting business
0.7％

Real estateleasing business
13.5%

26.3%

Other sales

59.5%

Condominium
sales

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved+

Real Estate Sales Business(condominium sales/other sales)
85.8%

4

Segment Results for Second Quarter of Fiscal Year Ending December 2022:
Real estate sales business① Real estate sales business«Condominium sales»➢ Steady progress in sales resulted in the delivery of 517 units, up 72 units from the same period last year. 1➢ Strong progress was made in sales on closing inventories from the previous period.
(122 of the closing inventory of 184 units of the term ended December 2021 were delivered.) (See “Supplementary Materials,” p. 2
for more information.)➢ Steady progress has been made on sale of 1,087 units (for a progress rate of 91%, as of August 22), on a contractual basis, vs. fullyear plans for delivering 1,200 units.
(Unit: Million yen)
Real estate sales business

Second Quarter of
Fiscal Year Ending
December 2022 (A)Second Quarter of
Fiscal Year Ended
December 2021 (B)24,312+ 18,098+ 6,214+ 34.3%

517

+

445

+

72

+ 16.2%

3,421+ 2,664+757+ 28.4%14.1%+ 14.7%-0.6 percentage
points-

Sales

Properties delivered (units)

1

Segment incom

Segment profit margin

Compared to previous term
Change (A-B)

Percent change«Other sales»➢ Both sales and profit increased substantially from the same period last year.
➢ External sales of logistics facilities (Genboen, Koga-shi, Fukuoka [Zone 6] and LOGITRES Chiba Research Park, 8.4 billion yen in
total 2 ) and sales of detached houses by ES-CON HOME (ESH) and ESCON CRAFT (ESC) showed steady performance. 3(Unit: Million yen)
Real estate planning agency andconsulting business

Second Quarter of
Fiscal Year Ending
December 2022 (A)Second Quarter of
Fiscal Year Ended
December 2021 (B)

10,743

3,157+ 7,586+ 240.3%

8,480

1,874

+ 6,606+ 352.5%

323

333

-10

-3.0%

1,940

949

991

+ 104.4%

3,148

1,159

+ 1,989+ 171.6%

29.3%

36.7%

-7.4 percentage
points-

Sales
Logistics facilities, etc.

2Land planning, rev enue-generating realestate, etc.

Other (e.g., ESH, ESC)
Segment incom
Segment profit margin
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

3

Compared to previous term
Change (A-B)+

Percent change

5Segment Results for Second Quarter of Fiscal Year Ending December 2022:
Real estate leasing business② Real estate leasing business➢ Various factors helped boost both sales and profit above figures for the same period last year, including the incorporation of the PicassoGroup as a subsidiary in October 2021. (Net sales for the Picasso Group in the second quarter were approximately 1.8 billion yen.)(Unit: Million yen)
Real estate leasing business

Second Quarter of
Fiscal Year Ending
December 2022 (A)Second Quarter of
Fiscal Year Ended
December 2021 (B)Compared to previous term
Change (A-B)

Percent change

Sales

5,515

3,427

+ 2,088+ 60.9%Segment incom

2,132

1,504

+ 628

+ 41.8%

38.7%

43.9%

-5.2 percentage
points-Segment profit margin

Key recent actions to strengthen the real estate leasing business➢ Acquisition of strong revenue-generating properties[Acquired in the last term]• 81 properties acquired, centered on Picasso Group rental residences(Picasso Group made subsidiary: p. 17)• Three rental condominium properties (Sol Plaza Sakai, Tomei Mansion Esaka,
Amity Tsukaguchi)

These activities contributed
to sales and profit
throughout this year

➢ New tonarie commercial brand facilities opened.
[Opened in the last term]• tonarie Yokkaichi, tonarie Fujimino (name changed)
tonarie CREO, tonarie Minami-Senri Annex➢ More tonarie brand facilities to open
• Tenants to open in succession at facilities including tonarie
Utsunomiya: Yaoko Supermarket (slated to start in the
beginning of 2023)• Development of tonarie Hoshida (tentative name)(slated to open in Spring 2023)
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

These will play apart in conversion
to a more stablerevenue structure.
tonarie Utsunomiya

6Segment Results for Second Quarter of Fiscal Year Ending December 2022:
Real estate planning agency and consulting business③ Real estate planning agency and consulting business➢ We recorded a segment income of 19 million yen this period.
(We recorded a segment loss last term due to delays in planned sales for the columbarium business caused mainly by the COVID-19
pandemic and advance investment in advertising and promotion costs.)(Unit: Million yen)
Second Quarter of
Fiscal Year Ending
December 2022 (A)Second Quarter of
Fiscal Year Ended
December 2021 (B)

Sales

304

296

+8

+ 2.7%

Segment incom

19

-309

-

-

6.3%

-

-

-

Real estate planning agency andconsulting business

Segment profit margin

Compared to previous term
Change (A-B)

Percent change

Overview of commencement of sales of permanent usage rights to the Ryomon Columbarium
ES-CON JAPAN has begun selling columbarium permanent usage rights to contribute to solutions to the issue of scarcity ofgravesites, particularly in central Tokyo, and to expand the scope of the real estate business. March 2022 marked the firstanniversary of sales in this business. We will continue to focus on this business in anticipation of long-term growth in demand.

Exterior of the Ryomon Columbarium

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Location

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

Access3-minute walk from Hiroo Station on theTokyo Metro Hibiya Line

Number of shrines

9,999

Date sales began

March 17, 2021

Tenmangetsu altar

7

B/S for Second Quarter of Fiscal Year Ending December 2022
➢ Total assets grew by 23.1 billion yen thanks to proactive purchasing and other activities. 1 The equity ratio decreased by 2.2 percentage points to 22.6%. 2➢ Real estate for sale decreased by 1.2 billion yen due to lower condominium inventories resulting from steady sales. 3

 Inventory breakdown and trends(Unit: Million yen)

Second Quarter of
Fiscal Year Ending
Decem ber 2022
(term under review )Current assets
Cash and deposits
Real estate for sale3

Real estate for salein process

Fiscal Year Ended
Decem ber 2021
(previous term )Increase/decrease

198,753

176,859

21,89434,826

33,667

1,159

6,283

7,541

-1,258Logistics
End of
2021

23,01977,12875,8301,298Property, plant andequipment

53,86952,778

1,091

Intangible assets

8,043

8,275

-232

End of
Q2 2022

Investments andother assets

15,215

14,776439

1,527

275,945

252,771

23,174

1

Commercial

587

205

53

258

Other

27 177

Acquisition ofcommercial
facilities

Steady progress onpurchasing

Up 21.8billion yen

123,419

Total assets

Condominiums

HotelsRentalresidences

1,309

146,438

Non-current assets(Unit: 100 million yen)

(Up 13.5 billion yen YoY)

(Up 5.6 billion
yen YoY)

722

261

38

270

32 202 Trends in assets, liabilities, and equity ratio (Unit: 100 million yen)
Second Quarter of
Fiscal Year Ending
Decem ber 2022
(term under review )Fiscal Year Ended
Decem ber 2021
(previous term )Increase/decrease

Property, plant and equipment

Inventory assets

Interest-bearing debt

Total assets

Equity ratio

2,759(revenue-generating properties held)

30.5%

Current liabilities
Short-term loans

110,400

102,523

7,877

4,340

3,589

751

2,527

2,500

25.5%

88,892

82,912

5,980

Non-current liabilities

103,486

87,61915,867Long-term loans

92,32876,533

15,795

Total liabilities

213,886

190,143

23,743

Total net assets

62,05962,628-569

Total liabilities and net
assets275,945

252,771

23,174

22.6%

25.8%

25.3%

2,000

Current portion of
long-term loans

24.8%

1,855

20.5%

1,630
1,527

1,494

1,500

1,326

1,000

838

1,309

885

850

15.5%

985

10.5%

520

531

500

5.5%

126

141

Term ended December 2019

Term ended December 2020

0

Equity ratio

2

22.6%

24.8%

－2.2 percentage points

0.5%

Term ended December 2021
(previous term)

Q2 of Fiscal Year Ending
December 2022
(term under review)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved8Synergies Achieved to Date with the Chubu
Electric Power Group
Business Progress in Hokkaido

Community Vitalization through Real Estate
Development

Major Topics

Steady Growth of the Condominium Business

Second Quarter of Fiscal YearEnding December 2022

Structure of ES-CON JAPAN Group Initiatives
Administrative Disposition Imposed on ES-CONASSET MANAGEMENT Ltd.
ESG Initiatives

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

9Synergies Achieved to Date with the Chubu Electric Power Group➢ In April 2021, we became a consolidated subsidiary of Chubu Electric Power through third-party allotment by raising fund of approximately 20.4 billion yen.
➢ We secured ratings of A- from R&I and A from JCR (July 2021).
→ We have developed a structure capable of dynamically and proactively considering various investment opportunities, based in part on commitment line
agreements concluded with financial institutions and the issue and registration of corporate bonds.

August 2018: Agreement concluded on capital alliance
Made an equity-method affiliate
Percentage of voting rights held: 33.3%

April 2021: Capital increase throughthird-party allocation of shares
Made a consolidated subsidiary
Percentage of voting rights held: 51.5%<Business development centered on the Chubu area>➢ Aichi Prefecture➢ Nagano Prefecture[Condominium] OST Residence Karuizawa

Joint venture with

[Condominium] Grand Le JADE Shirakabe Getsuronotei Chuden Real Estate
Joint venture with
[Condominium] Grand Le JADE Shirakabe Rinzennotei
Chuden Real Estate[Condominium] Grand Clare Ichinomiya
Joint venture with
Chuden Real Estate[Condominium] Le JADE Kanayama[Condominium] Nagoya Naka-ku Iseyama project[Commercial] Nagoya Kita-ku Tsujimachi
Acquired in this term(commercial land leasehold) project[Commercial] Aisai Plaza[Complex]
20th Asian Games Aichi-Nagoya
Joint venture with Chubu
2026 Athletes’ Village site
Electric Power Grouppost-Games project➢ Shizuoka Prefecture
Joint venture with
[Condominium] Le JADE Kakegawa
Chuden Real Estate
Ekimae[Condominium] Fukuroi Ekimae project
Joint investment with
[Plant factory] Techno Farm Fukuroi Chubu Electric Power[Land development] Kakegawa Kamisaigo development
project➢ Gifu Prefecture[Condominium] Le JADE Gifu Kogane Koen
[Condominium] Le JADE Gifu
[Logistics]
Hajima logistics facility development
project

Grand Le JADE Shirakabe
Getsuronotei➢ Mie Prefecture[Commercial]tonarie Yokkaichi➢ Osaka Prefecture[Complex]
Artist’s conception of the completed Techno Farm
Fukuroi

Suita Fujishirodai
5-chome project

Joint venture with
Chuden Real Estate

OST Residence Karuizawa

Artist’s conception of the completed project on the site of AsianGames Aichi-Nagoya 2026 Athletes’ Village after the games

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved* Artist’s conceptions are examples
and are subject to change.

10

<Business Progress in Hokkaido>
Hokkaido Ballpark F. Village urban development project➢ We are participating in a large-scale development called Hokkaido Ballpark F. Village (a total of 36.7 ha under development), centered on
ES CON FIELD HOKKAIDO, the new stadium for the Hokkaido Nippon-Ham Fighters.
We plan to develop a site measuring approx. 9,400 square meters adjacent to the stadium.
Scheduled to open in March 2023

F. Village construction in progress (June 2022)<Stadium overview>• Name:ES CON FIELD HOKKAIDO• Seating capacity: Approx. 35,000• Floors:
Two underground (field) floors and six aboveground floors(70 m height)• Specifications: Retractable roof, natural turf field• Opening:
March 2023 (completion of construction planned for December 2022)

Hokkaido Ballpark F. Village➢ More than just a venue to watch baseball games: Realizing a space forcocreation to stimulate the local community and contribute to society [Kids’ Area]
Building a community in which children can grow throughplay and residents can interact and engage with each other(F. Village project partner: BørneLund Corporation)[Farm Area]
Building a hands-on farming experience facility (F. Village
project partners: Kubota Corporation, Hokkaido University)[Private Villa]
Cottage accommodations (F. Village project partner: Fujii
Building)
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved<Location>
Midway between JR Sapporo Station and
New Chitose Airport Station
From Sapporo: Approx. 16 min by train
Approx. 30 min by car
From New Chitose Airport:
Approx. 20 min by train
Approx. 30 min by car<Access>
Approx. 22-minute walk from JR
Kitahiroshima Station, the nearest train
stationApprox. 2-minute walk from a new station
planned to be located near the ballpark

11

<Business Progress in Hokkaido>
Development inside F. Village (condominiums, senior residences)➢ Our first condominium project in Hokkaido is currently under development as part of the Hokkaido Ballpark F. Village Project (delivery slated for March
2023).
➢ In February 2022, we began work on developing residences integrated with a medical complex for active seniors (scheduled for completion in Spring 2024).

Le JADE Hokkaido Ballpark (Condominium development)

Approx. 80 m in direct linefrom the new ballpark

Artist’s conception of completed open air rooftop

Artist’s conception of completed warm
living space* Residents receive 10-year free passes to the stadium.
* Visits to the condominium gallery surpassed 700. The
first and second phases sold out immediately on thesame days.
→ Contractual procedures are currently underway
for 108 of the total 118 units.

The starting point in the path to tomorrow

Senior residence (residences integrated with a medical complex for active seniors)

Contributing to community healthcare and to thegood health of all ages, from youth to seniors

Fビレッジ全体
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

12

<Business Progress in Hokkaido>
JR Kitahiroshima Station “West Exit Area Revitalization Project”➢ March 2021: Partnership agreement concluded with the city of Kitahiroshima on the Kitahiroshima Station “West Exit Area Revitalization Project.”➢ May 2022: Start of construction on city-owned lot A (Ekimae plaza)➢ July 2022: Start of construction on Kitahiroshima Station West Exit A Project (tentative name; a commercial facility and hotel complex)
on city-owned lot A
Concept
Kitahiroshima Hometown Base: Development of a hometown base community where people who love Kitahiroshima, including local residents,
businesses, tourists, and baseball fans, will come together

14 above ground floors; scheduled
for completion in FY2024

Station West Exit Area

City-owned lot C
North area

To theballpark

City-owned lot D

Station area

Artist’s conception of the completed Kitahiroshima Station West Exit A Project(tentative name)

City-owned lot A

City-owned lot B

JR
Kitahirosima
StationKitahiro Park

Alongside urban development near the new ballpark, a
new gateway to Kitahiroshima is currently underdevelopment for local residents and a number ofvisitors, with the aim of revitalizing the city.
Video showing artist’s conception of the completed project
Groundbreaking ceremony (July 4, 2022)“West Exit Area Revitalization Project” (city-owned lots A-D)

Video showing artist’s conceptionof the completed project

A: Ekimae plaza/commercial facility, hotel/elevated plaza, park
B: Condominiums
C-D: Planning underway

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

13Community Vitalization through Real Estate Development➢ Business development with roots in the local community, primarily in major provincial cities, that draws on our wide-ranging real estatedevelopment expertise as a comprehensive developer

Iwaki, Fukushima Prefecture (condominium development)
Sales slated to begin in
Fall 2022

Omura, Nagasaki Prefecture (condominium development)•

Tsukuba, Ibaraki Prefecture (multipurpose development integrating
commercial, employment, and residential facilities)

Construction slated to begin in Fall 2024
Alongside Daiwa House(Shin-Omura Station on the West Kyushu Shinkansen
Industry Co., Ltd. and Izumi
Line is scheduled to open in September 2022.)
Co., Ltd., we’re working todevelop this project on cityowned land in front of ShinOmura Station.
• The project involves thedevelopment ofcondominiums with a
total of 174 units on twosites.
Katano, Osaka Prefecture: a development of the tonarie Hoshida(tentative name) commercial facility

•

•

•

Namiki no Mori City, currently
under development, integrated
residences, commercial properties,
and a parking structure.
The residential building underdevelopment is Mid Tower Iwaki(with 216 units in total).
Comprising aseismic construction,
when complete this will be the city’stallest condominium building.

•* Joint project with Hoosiers Corporation•

Le JADE Tsukuba Station Front, a
Delivery of all 218 condominium
multipurpose development, willunits slated for November 2022
combine commercial, office, andresidential facilities in thedeveloped property, located in
front of Tsukuba Station.
Phase 1 of tonarie CREO opened in
May 2021. It will contribute to fullyear sales and profit figures thisyear.

Himeji, Hyogo Prefecture (clinic complex development)••

Development planned for a site
adjacent to a new hospital slated toopen in early 2023
Plans call for this clinic complex
to offer services in sevenmedical fields.

Scheduled to open in
December 2023

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved••

This development will be locatedon a land readjustment site locatednorth of Hoshida Station.
Planned tenants include asupermarket, medical complex,
drugstore, 100-yen shop, and more.
Katano will be the 10th facility inthe tonarie series.

Scheduled to open in
Spring 2023

Fukuoka, Fukuoka Prefecture (hotel development)••

Located in the Genkai QuasiNational Park area, with views of
the Genkai Sea
This will be the area’s first hotel.

Scheduled to open in
September 2023

* Joint project with LANDIC Hotels & Resorts

14

Steady Growth of the Condominium Business➢ Rather than merely selling more condominiums, our core business of condominium development strives to contribute to a stable supply of
housing.
➢ Our recent condominium projects seek to maximize the value of unique sites.

Product planning that leverages unique site characteristics to achieve high added value➢ OST Residence
Karuizawa•

A location with views of Mt.
Asama and surrounded bynatural beauty
All 33 units have beendelivered.

•➢ Kanagawa Prefecture Miura-gun Hayamamachi project*••

Developed on a site with expansive views of the Morito coast
Product planning that makes the most of the natural setting to achieve high added value

Development on unique urban sites

Area expansion➢ Park Le JADE Shirokane Residence➢ Le JADE Cross Chiyoda Jimbocho➢ Le JIAS Ohashi

•
•

•

•

Shirakane 4-chome Address
Contracts concluded on all 55 units(slated for delivery in March 2023)

A combination residential and office complex developed on asite next to the Institute of Eastern Culture, an important
property featuring in Chiyoda Ward’s scenic urban
development plans

Our first location in the Kyushu
area (140 units in total)➢ Minato-ku Nishi-Azabu project*•

A location surrounded by leading Tokyo neighborhoods, including Minami-Aoyama, Omotesando, Hiroo, and Roppongi
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved* Tentative project name15

Structure of ES-CON JAPAN Group Initiatives➢ We strive to maximize corporate value and achieve sustained growth through multifaceted business development Groupwide.
[Real estate investment
management][Detached homes
in Saitama][Detached homes
in Saitama]

Ryomon[Real estate crowdfunding]

Picasso
Group

FUEL

→ Rapid progress on transforming profit structure to secure stableleasing revenues

As of end of Q2
in term ending
December 2022

[Columbarium sales]

Made subsidiary in January 2021

Made subsidiary in October 2021

205.8
billion yen

ES-CON
LivingService[Real estate leasing][Jobplacement]

Picasso-related
Approx. 29%* Approx. 58.7
billion yen* 81 properties in total
Primarily leased
condominiums but
also handling offices,stores, etc.

[Condominium
management]

Chubu Electric Power Group

ES-CON
Global Works*Total of inventory assets and property,
plant and equipment

ESCON
Property

ESCON
CRAFT

ES-CONHOME Value of real estate held by the ES-CON
JAPAN Group*[Property management]

ES-CON ASSETMANAGEMENT

 Sales by the real estate leasing
business (Unit: 100 million yen)

+3.5 billion yen➢ Alongside efforts to expand our business domains, rapidly realizing thestructures needed to allow us to tackle the challenge of new
businesses related to the digital transformation (DX) of real estate(e.g., use of ST and CF*) five to ten years in the future.

116

80

Real estate
Term ended December 2021
(actual results)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved Lending Investment

 Interest andprincipal repayment

 Dividends andprincipal repayment

Fund operator

Investor

Term ending December 2022
(planned)* ST: security tokens; CF: crowdfunding

16

Administrative Disposition Imposed on ES-CON ASSET MANAGEMENT Ltd. ①(Overview of disposition)
As the main sponsor of EJR and the parent company of EAM, ES-CON JAPAN Ltd. would like to express its sincere apologies to its various
stakeholders and EJR’s investors and to all other affected parties for the considerable concern and inconvenience caused by this matter.
The details of the administrative disposition and improvement measures are described below. We will implement steady improvements toensure that such an event does not recur. We ask for your continuing support and guidance.
Details of the administrative disposition imposed on EAM

EAM: ES-CON ASSET MANAGEMENT Ltd. (wholly owned subsidiary)
EJR: ESCON JAPAN REIT Investment Corporation (listed REIT for which EAM manages assets)

July 15: Notice of disposition➢ Business Suspension Order (three months)
Prohibition of entering into new asset management agreements and prohibition of giving management instructions concerning theacquisition of real estate (including real estate trust beneficial interests) * (from July 15, 2022 to October 14, 2022)* This order does not bar operations such as asset management subcontracted by EJR to EAM or the management and operation ofassets already owned by EJR.
➢ Business Improvement Order(1) To fully explain the details of this administrative disposition to the Investment Corporation's unitholders concerning this matter and takeappropriate measures.

(2) In order to realize fair and appropriate business operations as a management company of investment corporation assets, to clarify its
management stance regarding compliance with laws and regulations, etc., to establish a responsible compliance system and internal
control system run by its management team, and to review its methods of business operation to steadily achieve these objectives.
(3) To investigate the cause of this incident and then formulate concrete measures to prevent recurrences, including establishing anadequate framework for managing conflicts of interest, such as clarifying the internal processes for verifying the appropriateness ofdecision-making concerning the investment management business.
(4) To clarify where responsibility lies, including that of management, based on the results of this inspection.
(5) To report in writing by August 15, 2022 on the state of response regarding items (i) through (iv) above and to provide written reports as
required until all the responses have been completed.

 August 15: Submitted to and accepted by the Financial Services Agency (details
described starting on p. 19)* The impact of this incident on ES-CON JAPAN consolidated financial results is minor. We will promptly release any information identified as subject to disclosure.
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

17Administrative Disposition Imposed on ES-CON ASSET MANAGEMENT Ltd. ②(Cause of disposition)
Facts underlying this disposition

Inappropriate incentives detrimental to the independence of real estate appraisers
In sales of properties from ES-CON JAPAN to EJR, for three properties on which the interim reports or rough estimates ofappraised values provided by real estate appraisers failed to rise to our desired sale price, the contracted appraisers wereencouraged to increase the appraised values to exceed that price. The means for achieving this goal included prioritizing
the desired sale price or communicating our desired sale price.

Inappropriate selection of real estate appraisers
To secure appraised values that would exceed our desired sale prices, EAM asked multiple real estate appraisers toprovide rough estimates of appraised real estate values and arranged negotiations with the appraiser that provided
the highest estimate so that said appraiser would have the lowest appraisal fee compared to the other appraisers.
Additionally, EAM claimed to have selected the real estate appraiser that provided the highest rough estimate because
the appraiser had submitted the lowest bid for services. EAM concealed the fact that this appraiser had submitted thehighest rough estimate.

This is recognized to violate the duty of good faith under Article 42,
Paragraph 1 of the Financial Instruments and Exchange Act.

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

18Administrative Disposition Imposed on ES-CON ASSET MANAGEMENT Ltd. ③(Improvement measure 1)
Overview of EAM's business improvement report (August 15): 1* Reference: August 15, 2022 news release
Notice Concerning Submission of Business Improvement Plan by ES-CON ASSETMANAGEMENT Ltd.

(1) Fully explaining the specifics of this administrative disposition to EJR investors and responding appropriately→ The matter was explained to EJR investors on July 15, 2022. The specifics of the administrative disposition were announced as a timely disclosure.
(2) Clarifying management approaches related to legal and regulatory compliance, development by management of responsible approaches tolegal and regulatory compliance and to internal controls, and revising daily practices to realize these at a steady pace, thereby achieving fair
and appropriate business operations as an asset manager of investment funds→ (2-1) Clarification of the Management Stance on Compliance with Laws and Regulations (Reference: News Release, p. 2)
Adoption and announcement of compliancedeclaration (planned)

External announcement of management
philosophy and other initiatives (planned)

Clear internal messaging by management andpreparations to implement comprehensive
training sessions(2-2) Establishment of responsible legal compliance and internal control systems by management (Reference: News Release, pp. 2-4)
Summary

Objective

Structural changes in Boardof Directors

To achieve an adequate governancestructure by eliminating sponsor influence(ES-CON JAPAN) and preventing conflicts ofinterest

Specific details of organizational changes• March 24, 2022

• September 26, 2022

ES-CON JAPAN's Representative Director resigned as director of EAM.
The number of full-time EAM directors was increased from one to two. The compliance officer was
newly appointed as a director.
Takeharu Kagiyama was appointed EAM Representative Director.
Minoru Nakanishi, who also serves as an ES-CON JAPAN Senior Management Director, plans toresign as an EAM director

Transition to the structure of To enhance audit functions througha company with an audit and appropriate demonstration of governancesupervisory board
functions by the Board of Directors, including
the appointment of outside directors withvoting rights to the Board of Directors• June 28, 2022

Transition from structure with a single auditor to one with the Audit and Supervisory Committee
Appointing outside directors as two of the three directors serving on the Audit and Supervisory
Committee(One is an attorney with past experience with the Ministry of Finance. The other is a CPA who is aformer partner of KPMG AZSA LLC.)

Organizational changes toplace the internal audit
office under the supervisionof the Audit and Supervisory
Committee

To provide appropriate support for theoperation of the Audit and Supervisory
Committee while strengthening checks andbalances by strengthening the independence
of internal audits• June 28, 2022

Organizational changes to place the internal audit office under the supervision of the Audit andSupervisory Committee rather than the Representative Director and to ensure that the state ofinternal auditing is ascertained in a timely manner by the Audit and Supervisory Committee andreported to the Board of Directors

Changes to the membershipof the Investment Committee
and the Compliance
Committee

To ensure the fairness, objectivity, andvalidity of decisions by the Investment
Committee and the Compliance Committee,
strengthen checks and balances fortransactions involving conflicts of interest,
and adopt a thorough approach of verifying
the appropriateness of the Asset Manager's
operations regarding real estate appraisal• In addition to the existing outside member who is a certified real estate appraiser, the revised Investment Committee
includes an additional outside member with a wealth of experience in investment management and knowledge of decisionmaking regarding real estate and other investments, and this outside member serves as chairperson of the committee.
• The chairperson of the Investment Committee (outside member) has the right to reject decisions by the Committee, withany such decisions requiring the support of two outside members.
• The full-time Deputy General Manager of the EAM Compliance Department has been appointed a new member of theInvestment Committee and the Compliance Committee.

(2-3) Review of Business Operation Methods: Implementing the following management under the new organization (Reference: News Release, p. 4)• Board of Directors: Formulation of business improvement plans in response to this disposition, and study implementation and monitoring of the plans; making
specific property acquisitions subject to resolutions by the Board of Directors; etc.
• Audit and Supervisory Committee: Auditing and other activities to verify whether duties are conducted appropriately by directors regarding formulation ofbusiness improvement plans in response to this disposition and study implementation and monitoring of the plans• Operational improvements by the Compliance Committee, the Investment Committee, and the ESCON REIT Board of Directors:
Implementing appropriate prior explanation of decisions on acquisition of properties, from the stage of considering acquisitions, and preparing and retaining more
appropriate minutes.
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

19Administrative Disposition Imposed on ES-CON ASSET MANAGEMENT Ltd. ④(Improvement measure 2)
Overview of EAM's business improvement report: 2(3) Clearly identifying the causes of this incident and formulating practical measures to prevent its recurrence, including developing adequate
structures to address conflicts of interest and clarifying internal processes to verify the validity of decision-making related to investment
management→ (3-1) Causes of this incident (Reference: News Release, p. 5)
This incident clearly reflects the influence of the Company. Both EAM and the Company demonstrated very low awareness of the need to fulfill their duty in good faith toprioritize the interests of investors. In addition, governance failed to function as intended within the EAM organization. Structures for monitoring and supervision oftransactions with interested parties proved inadequate. Executives and employees, including the EAM management team, lacked sufficient awareness of complianceissues. The human resources proved insufficient.

(3-2) Measures to Prevent a Recurrence (Reference: News Release, p. 5)
A. Modified rules on placing orders for real estate appraisal
B. Enhancing monitoring by the Compliance Department on orders for real estate appraisal
C. Clarifying internal processes to verify the validity of decision-making related to investment management operations
D. Establishing new systems for transactions with interested parties involving real estate deals with the Company
E. Securing the necessary human resources
F. Further clarifying the causes of this incident and enhancing measures to prevent its recurrence based on joint efforts between Chubu Electric Power and theCompany
G. Making the most of the joint helpline with the Chubu Electric Power Group
H. Training, education, and promoting awareness to improve the structure for the sustained management of conflicts of interest(4) To clarify where responsibility lies, including that of management, based on the results of this inspection (Reference: News Release, pp. 5-6)

→ • Of the three previous directors, Representative Director Satoshi Omori and Director Takatoshi Ito, who also serves as Company Representative Director, resigned on
March 24, 2022.
• Minoru Nakanishi, who also serves as an ES-CON JAPAN Senior Managing Director, plans to resign from the position as an EAM director on September 26, 2022. (Thesuccessor candidate is to be determined.)• Senior Executive Officer and General Manager of the Reit Asset Management Department Atsumu Sasaki plans to resign from the post of an Employee specified by a
Cabinet Order (Supervisor of Investment Decision Making) once a successor who meets the relevant requirements has been appointed. The target date is September
2022.

Throughout the ES-CON JAPAN GroupWe take this administrative disposition very
seriously as a key topic for the entire Group.

We will make every effort to prevent therecurrence of similar incidents through thesteady implementation of improvements.

As EAM’s parent company and the main sponsor of EJR, for which EAM serves as asset
manager, we are committed to thorough enhancements in our approach to compliance andinternal controls Groupwide.
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

20

ESG Initiatives ① Basic policy
The management strategies of the fourth medium-term management plan include Promotion ESG.
An ESG Promotion Group has been established directly under the President to formulate andimplement specific activities.

Board of Directors
President and Representative Director

ESG Management Philosophy
Based on IDEAL to REAL(bringing ideals into reality to create a new future), our corporate message,
we seek to realize sustainable societies and sustained growth as we address social challenges bypromoting ESG management as a lifeways developer creating ideal modes of living in response tochanging needs.

Nomination andRemuneration
Committee
ESG Promotion GroupWe strive to grow as a company needed by society by promoting ESG initiatives in strict compliancewith laws, regulations, and our pledges related to the environment, society, and self-governance.

ES

1. Creating new environmental value throughnext generation urban development andother initiatives aimed at realizing acarbon-neutral society by 2050

2. Promoting real estate development andbusiness activities that account for theenvironment above all else
3. Creating environmental value and businessvalue through taking on the challenges of
new business domains based on
environmental themes

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

1. Contributing to regional revitalization andpromoting the creation of local communities
through urban development to create a newand brighter future
2. Creating working environments in which
employees can demonstrate the best of theirabilities while engaging in rewarding workand promoting diversity so that all humanresources can thrive
3. Contributing to solutions to social issues inareas such as medical care and welfare in
response to declining birthrates and an aging
population; and supporting safe andcomfortable living in local areas
4. Promoting business development to realize
the SDGs globally through the developmentof overseas businessContributing to a sustainable society

S TeamCoordinate

E TeamBasic Policy on ESG

President’s Office

G TeamHealth & Culture
Fostering Team
(Established inJuly 2021)

Related departments

Coordinate➢➢

ESG management
promotion structureG
1. Enhancing timely, appropriate, and fairdisclosure of management information
2. Promoting a governance system to securestability, soundness, and transparency ofmanagement
3. Aiming to strengthen risk management inorder to respond to increasing risks due tothe expansion and diversity of businesses
4. Engaging in business activities based on arespect for the human rights of all inaccordance with the Corporate Ethics
Charter

21

ESG Initiatives ② Disclosure based on the TCFD framework➢ Recognizing climate change as a key part of management strategies, the management team and members of the ESG Promotion Group, selectedfrom sections across the Company, will work together to implement disclosure based on the framework of the TCFD recommendations.
➢ We announced our support for the TCFD recommendations in June 2022. Below, we disclose various risks and opportunities, along with resulting
financial impacts in 2030, under the 3C Scenario (in which no further progress is made on decarbonization efforts) and the 1.5C Scenario (underwhich progress in decarbonization is made).

[Risks, opportunities, and financial impacts in 2030 under the 1.5C and 3C Scenarios]

Opportunities

Physical
Risks

Transition Risks

Category

Risks/Opportunities relating to the Company

Financial impact

Assessment of
Financial Impact
3C
1.5C
Scenario Scenario

Procurement prices for steel, cement, and other highly carbon-intensive construction materials rise; costs increase due • Increase in procurement costs for materials
to taxing of CO2 emissions from property construction and owned properties.
• Increase in costs related to CO2 emissions

Low

Moderate

Costs increase for low-carbon measures such as investments in energy-saving equipment. Operational and renovation • Increase in costs for capital investment andcosts for owned properties also rise.
renovations, etc.

Low

High

MarketIncreased vacancy rates and reduced rates of successful contract conclusion, rents, and sale prices because ourproperties are not chosen by customers due to a lack of zero-emission homes (ZEH) and zero-emission buildings(ZEB)• Lower sales due to lower rents and salepricesLow

Moderate

Reputational
Risk

Rising cost of fundraising due to failure to make progress on decarbonization of real estate owned and real estate forsale; impact on stock prices of failure to meet investors' expectations in our decarbonization initiatives• Rising fundraising costs

Low

High

Construction delays due to interruption of work on real estate projects under development• Rising construction costs

High

Acute Risk

Risk of repair costs or rising vacancy rates due to reputational damage in the event of destruction, equipment failure,suspension of functions, or other damage resulting from disasters affecting properties owned in areas exposed todisaster risks; blame as a company for physical harm suffered by those affected by disaster at commercial facilities• Repair costs• Rising vacancy rates and lower sales figures• Compensation costs

High

Products andServices

Properties with lower CO2 emissions are becoming more market-competitive amid more positive evaluations ofproperties that have earned environmental certification.

• Increasing sales from more competitive
properties

Low

Moderate

Expanding opportunities for community development that facilitates high-quality lifeways by reducing transit distances
through dense clustering, local energy production and consumption, and coexistence across a broad range ofgenerations.

• Increasing sales from more opportunities for
multipurpose complex development[“Boosting sales by expanding opportunities
for multipurpose complex development”]

Low

High

Lower fundraising costs resulting from measures such as securing eco lending as our decarbonization efforts are
regarded highly by financial institutions. Also, rising share prices in response to investors regarding ourdecarbonization efforts highly.

• Lower fundraising costs

Low

High

Increasing sales opportunities for disaster-resistant properties in areas exposed to risk of climate disasters; lower
tenant vacancy rates as we earn the support of community residents and customers through our ability to serve as abase for community recovery in a disaster• Increased sales due to expanded sales
opportunities for properties and lower tenantvacancy rates[G1][G2]Policy andRegulations

Markets

Resilience

Moderate[Strategies based on scenario analysis]
We plan to further consider measures for risks/opportunities that pose especially significant impact on our business based on the results of
scenario analysis and financial impact assessments.
<Examples of response measures> Increase percentage of electricity use from renewable energy sources./Promote installation of LED lighting
and other energy-saving equipment/devices among commercial facilities./Further promote ZEH-M
development./Promote improvement of environmental performance evaluation by acquiring DBJ Green
Building certification and CASBEE for Real Estate Certification.
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

22

ESG Initiatives ③ Initiatives to dateE

Environment

S

G

Society⚫ Promoting ZEH condominiums⚫ Establishing the Health & Culture Fostering Team to
Le JADE Okurayama
promote health management(All units have been delivered.)⚫ Promotion of diverse human resources, including hiring of→ Won FY2021 Good Design Award
people with disabilities
Le JADE Yao Sakuragaoka→ Sold out quickly on a contractual basis in June ⚫ Training of people to support those with cognitive
disabilities (e.g., tonarie Seiwadai)
2022 (delivery slated for December 2022)

Governance⚫ Timely disclosure of business activities
and conditions⚫ Establishment of nomination andremuneration advisory committee
Nomination and Remuneration
Committee
President andRepresentative
Director

Drafting Board of
Directors resolutions on
appointment anddismissal

Directors and Audit and Supervisory
Committee members
Outside333
Independent
director

Appointment and dismissal
draft resolutions

333
Executive officers

Independent
director

Formulating draft
resolutions⚫ Support for placement of workers from overseas(ES-CON Global Works)⚫ Joint research with the Kozo Takase’s lab team of
the Tokyo University of Science⚫ Support for WT1 cancer vaccine (a cancer
immunotherapy) (2019 and 2021)⚫ Earned DBJ Green Building certification⚫
Donating to establish a cancer immunology session at(Five properties owned by EJR)
Osaka University⚫ CASBEE real estate assessment earned (tonarie ⚫ iPS cell research (2020, 2021), etc.
Fujimino)⚫ Investment in Ryukyu Football Club, which operates the⚫ Development of detached houses with abundant
FC Ryukyu J2 professional soccer teamnatural blessings and condominiums open to thecommunity⚫ Eco Action 21 certification earned⚫ Le JADE Senri Aoyamadai wins Osaka ecofriendly construction award in the residential
Team logo
Team emblem
section⚫ Support for the city of Kitahiroshima, Hokkaido, throughthe corporate hometown tax program (March 2022)
Le JADE Okurayama

Executive compensation system, remunerationlevels, evaluation system

Le JADE Yao Sakuragaoka

Photo:
Mayor Masami Ueno of the city ofKitahiroshima, Hokkaido (right)

Draft resolutions on individual remuneration of
directors other than those who are Audit andSupervisory Committee members⚫ Establishment of CS Committee

Corporate governance structure
General meeting of shareholders
Appointment

Nomination
andRemuneration
Committee

Deliberation
DecisionsBoard of Directors
Advising

Eight full-time directors(including five outside
directors)

Auditing

ReportingAppointment

Accounting
AuditorInternal Audit Office

Presidential
recommendations

Executive
committee
Executive directors

ReportingThree directors who also serve
as Audit and Supervisory
Committee members(All are outside directors.)

Audit and Supervisory
Committee office

President andRepresentative
Director
ReportingAppointment

Audit and Supervisory
Committee

Instruction

Reporting

Risk Management
Committee

ReportingInstruction

Each section, Group company

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Representative: Takatoshi Ito,
President & Representative Director,
ES-CON JAPAN Ltd. (left)

23

Progress on Fourth Medium-Term Management
Plan (announced February 2021)- IDEAL to REAL 2023 (FY2021-2023)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

24Basic Policy

Fourth medium-term management plan (Three years from term
ending December 2021 through term ending December 2023)

Basic policy of medium/long-term management strategy① 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
the real estate leasing business while at the same time realizing business diversification andexpanding business territories.

Transformation
2023
Second year of the mediumterm management plan

2022
2021

and

Rapid
ProgressStageof further rapid progress
through realizing transformationStageof setting new record profitsStage

of structural reforms tobalance sheet and revenues➢ Proactive investment in long-term revenue-generating real estateand improving the BS structure➢ Transforming the focus of management from flows to stock➢ Demonstrating synergies in the Chubu Electric Power Group➢ Achieving net sales of 110 billion yen and operating income of 16
billion yen (in the final fiscal year of the medium-term management
plan)
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved25Ten-year Trends in Financial Results➢ We are targeting sustainable growth through maximining corporate value and further increasing returns to shareholders, in addition toestablishing robust business foundations capable of withstanding any economic conditions.
Period of fourth medium-term
management plan
IDEAL to REAL 2023
(Sales)(Unit: Million yen)

Further rapid progress
through transformation

1,200

350

New recordhigh profits(Unit:
100 Million yen)
300

1,000

Period of second medium-term
management plan
IDEAL to REAL 2019

1,000

1,100(Operating profit)

BS and profit
structural reforms

Sales

250
800

790

773
721

200

600

Period of first medium-term
management plan
Make The One for 2016

543

160
Recordhighprofits

447

129

343

70

188
40

103
Became asubsidiary of
Chubu Electric
Power

277

46

Term ended
Term ended
Term ended
December 2015 December 2016 December 2017
(Actual results) (Actual results) (Actual results)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Operatingprofit56
Listing on TSE
Prime Market

Listing on TSEFirst Section
Term ended
December 2014
(Actual results)

100

50

28
0

150

408

122

115

400

200

140

Term ended
December 2018
(Actual results)

Term ended
Term ended
December 2019 December 2020
(Actual results) (Actual results)

Term ended
Term ending
December 2021 December 2022
(Actual results)
Q2(Actual results)

Term ending
Term ending
December 2022 December 2023
(Planned)(Planned)

026

Planned Financial Results➢ Making the Picasso Group a subsidiary and other efforts in the first fiscal year (ended December 2021) helped strengthen the real estate leasing
business and secure stable revenues. Additionally, the revenue structure was transformed.
➢ In the term ending December 2022, we plan to set a new record for profits by improving business performance. The second quarter was marked bysteady progress toward this goal.
➢ In the final fiscal year of the medium-term management plan (ending December 2023), the entire Group will work to achieve our goals: 110 billion yen
in sales and 16 billion yen in operating profit.
➢ In 2024 and beyond, we will enhance our organizational abilities to contribute to sustained growth.

(Unit: Million yen)

Fourth medium-term management plan: IDEAL to REAL 2023
Term ended December
2021(27th term)

Planned financial results
Q2
Actual results

Actual results

Term ending
December 2023
(29th term)

Term ending December 2022
(28th term)

Q2
Initial planvs. initial plan

Initial plan (full year)(announced
January 2022)

Percentage

Initial plan (full year)(announced
February 2021)

vs. initial plan(full year)Plan(announced February
2021)

Percentage

79,01740,87636,300

4,576

12.6%

100,000

98,000

2,000

2.0%

110,000

Real estate sales business

70,33435,056---87,300----Condominium sales

45,05024,312---59,300

-

-

-

-

1,020

517

-

-

-

1,200

1,200

-

-

1,200

25,283

10,743---28,000----Real estate leasing business

8,090

5,515

-

-

-

11,600

9,500

2,100

22.1%

11,200Real estate planning agency
and consulting business

592

304

-

-

-

1,100

-

-

-

-

Operating profit

10,381

5,641

4,700

941

20.0%

14,00014,000--16,000Ordinary income

9,099

5,136

3,800

1,336

35.2%

12,200

-

-

-

-

5,961

3,296

2,600

696

26.8%

8,300

-

-

-

-

Sales

Condominium units sold

Other sales

Profit attributable to ownersof parent

BS and profit
structuralreforms

Dividends per share

38 yenRapid
progress

New record high profits-

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

-

-

-

38 yen (planned)

38 yen or more--

38 yen or more(planned)

Policy of gradually increasing dividends to continue during the period of the medium-term management plan27

Management Targets➢ Most management indicators are progressing according to plan.
➢ In the first fiscal year of the medium-term management plan (ending December 2021), as described above (p. 28), the Picasso Group
became a subsidiary, an event that put investment plans ahead of schedule.
Indicators of a stable revenue structure for this term and the final fiscal year of the medium-term management plan have been revised
to further promote the transformation of the revenue structure.
Fourth medium-term management plan: IDEAL to REAL 2023
Term ended December 2020
(26th term)

Term ended December 2021
(27th term)

Actual results

Actual results

Term ending December 2022
(28th term)

Term ending December 2023
(29th term)

Initial plan(announced February 2021)

Initial plan

Revised plans(Announced March 2022)

Initial plan(announced February 2021)

Share of profits from leasing *1

14.2%

21.2%

26.0%

24.0%

30.0%

26.0%

Return on equity (ROE)

21.2%

11.8%

13.0%

13.0%

13.0%

13.0%

Return on invested capital (ROIC)

6.6%

3.2%

4.0%

4.0%

4.0%

4.0%

Equity ratio

25.8%

24.8%

23.0%

26.0%

21.0%

23.0%

Share of long-term earnings from realestate *2

9.5%

20.6%

21.0%

14.0%

23.0%

18.0%

38.6 billion yen

62.6 billion yen

67.3 billion yen

66.0 billion yen

72.0 billion yen

72.0 billion yen

Net assets*1 Share of prof its f rom leasing: Leasing segment prof its/segment total prof its (excluding adjustments)*2 Share of long-term earnings f rom real estate: Real estate generating leasing rev enues recorded as noncurrent assets/net assets

800

Trends in net assets(Unit: 100 million yen)

20.4 billion yen in funding raised
through a capital increase throughthird-party allocation of shares

April 2021
Became a consolidated subsidiary of
Chubu Electric Power

673

720

626

600

400

386

200

0

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Term ended
December 2020
(Actual results)

Term ended
December 2021
(Actual results)

Term ending
December 2022
(Initial plan)

Term ending
December 2023
(Revised plans)28

Investment Plans➢ Gross investment during three-year period of the medium-term management plan: 220 billion yen➢ In the first fiscal year of the medium-term management plan (ended December 2021), the Picasso Group became a subsidiary, an event thatput investment plans ahead of schedule. This resulted in an increase of 74.4% in gross investment.
➢ We plan 70 billion yen in investment during this term.
(Unit: 100 million yen)Three-year cumulative investment (2021-2023)
2022

2023

Three-year
cumulative

Plan(Announced
February 2021)

Plan(Announced
February 2021)

Plan(Announced
February 2021)

2021
ActualGross investment

Plannedvs. plan

Percentage

959

550

409

74.4%

700

950

2,200

767

300

467

155.7%

400

600

1,300

56

50

6

12.0%

100

150

300

337

150

187

124.7%

200

250

600

373

100

273

273.0%

100

200

400

191

250

-59

-23.6%

300

350

900

Amount recovered

48

0

48

-

0

300

300

Net investment amount

911

550

361

65.6%

700

650
Total assets: 3,500

1,900

Investment in revenue-generating
real estate
Investment in development ofrevenue-generating real estate
Investment in medium-term
revenue-generating real estate*
Investment in long-term revenuegenerating real estate

Investment in other development*Rental revenue-generating real estate acquired w hile leased and intended for sale after increasing its value

 Trends in asset structure

Total assets: 2,900

Other

Total assets: 2,527

680

Long-term revenue-generating real estate

23.0%

688

Inventory assets

21.0%
Total assets: 1,494
Long-term revenuegenerating real estate
as a share of total
assets700

20.6%(Unit: 100 million yen)

800

620

520

468

9.5%

2,000

141
1,309

1,600

885

Term ended December 2020
(Actual results)
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Term ended December 2021
(Actual results)

Term ending December 2022
(Initial plan)Long-term revenue-generating real estate:
Approx. 5.6-fold growth from 2020 to 2023

Term ending December 2023
(Revised plans)29

Trends in the Real Estate Sales Business➢ <Condominium sales>• Contracts were concluded on 1,087 units (91%) of the 1,200 units slated for delivery during this term (as of August 22).
• We completed the acquisition of the project sites needed to achieve our supply plans through 2023.
• We’re currently making progress on carefully selected purchases while carefully evaluating the status of the business environment,
including recent increases in building material prices, aiming for sales in 2024 and later.

➢ <Other sales>• In the term ending December 2022, we plan to sell two logistics facility projects.
• We will continue to pursue diverse development of commercial, logistics, rental residential, office, and other projects in 2022 and 2023.

(Unit: million yen)
1,000

(Unit: units)
Other sales
Condominium sales

1,400

873 (planned)

Condominium units soldStable supply of 1,200 units

1,200 units

800

1,200

714 (actual)703 (actual)

280

Other sales

1,020 units
600

1,000

252
800

408
400

652 units

600

350 (actual)
107

593

Condominium
sales

400

450

200

306

243

200

517 units00Term ended December 2020

Term ended December 2021

Q2 of term ending December 2022

Term ending December 2022

Term ending December 2023

(Actual results)(Actual results)(Actual results)(Plan)(Plan)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved30Trends in the Real Estate Leasing Business(Toward a transition in the profit structure)
Trends in leasing segment profits and lease revenues as a share of profits(Lease revenues as a share of profits: leasing segment profits/total segment profits[excluding adjustments])➢ We expect to achieve our growth target for share of profit from leasing of 26%. This will likely occur one year ahead of schedule in the term ending December 2022, during
the final fiscal year of the medium-term management plan.
To achieve further transformation of the revenue structure, we have boosted the initial target of 26% by four percentage points to 30% for fiscal 2023.

210
210

(Unit: 100 million yen)

32%

30%

Total segment profits

170

167

158※

Real estate planning agency and consulting
business
Real estate sales business

26%
151

130

Real estate leasing business

Lease revenues as a share of profits

220

24%

130
90

27%

22%

87

142

21%

17%
50

65

Share of profits from leasing
grew ahead of initial plans due tothe Picasso Group becoming a
subsidiary.

14%
55

Real estate leasing
segment profits 

33

23

21

10

12%

Term ended
December 2020
(Actual results)

Term ended
December 2021
(Actual results)

Q2 of term ending
December 2022
(Actual results)

Term ending
December 2022
(Initial plan)

Term ending
December 2023
(Initial plan)* In the term ended December 2021, the realestate planning agency and consulting
business recorded segment losses of 500
million yen.

(Coverage percentage: leasing segment profits/general andadministrative expenses [excluding amortization of goodwill])

General and administrative expense coverage percentage of leasing segment profits➢ A coverage percentage of leasing segment profits for total general and administrative expenses of 90% is targeted for FY2023.
Progress through the120
second quarter of the term ending December 2022 is 70%. We expect to proceed largely according to plan.
116(Unit: 100 million yen)

90%

100

76%

100%
90%

Leasing sales

80%

70%
70%

80

80

Segment profit

61%

72

60%

51%
60

55

55

Rent
income

55

50%

55

General and40%
administrative expenses

45
40
33
23

30

(excluding amortization ofGeneral andadministrative
expenses30%

goodwill)
Coverage percentage

20%

21

20

Segment
profit10%00%Term ended December 2020
(Actual results)

Term ended December 2021
(Actual results)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Q2 of term ending December 2022
(Actual results)

Term ending December 2022
(Initial plan)

Term ending December 2023
(Initial plan)

31

ES-CON JAPAN Group’s Business Development➢ As a developer focused on developing lifeways rooted in local communities, we engage in a wide range of businesses, all withan eye toward future generations.
We’re committed to helping to build a sustainable society by fulfilling our corporate social responsibilities.
Hokkaido[Area development status]
Proactive business development across Japan,
primarily in the five major urban areas

ES CON FIELD HOKKAIDO
Condominiums (threebuildings)
Commercial

HotelsUrban development aroundthe new ballpark

Hokkaido OfficeKansai
Condominiums (171 buildings)
Logistics

Leasing

Offices

Hotels

Kanto

Commercial
tonarie Yamato-Takada, Toga,
Mikita, etc.

Condominiums (56buildings)

Detached
homes

Offices

Leasing
Logistics
tonarie Tsukuba Square, Utsunomiya, Fujimino, etc.

Commercial

Urban development

Urban development(Suita, Osaka Prefecture andelsewhere)(Tsukuba, Ibaraki Prefecture)

HotelsSales of columbarium permanent
use rights (Ryomon)

Land readjustment

KyushuCondominiums(one building)Land readjustment

Urban development

Logistics(Kasuga, Kyushu
Prefecture / Omura,
Nagasaki Prefecture)

Commercial

Tokyo Head
OfficeHotelsKyushu Office

Nagoya officeOsaka Head
OfficeChubu* See p. 10 for more information.

Condominiums (eightbuildings)

Plant factory
development
Urban development

Commercial Logistics

Project on the site of
20th Asian Games
Aichi-Nagoya 2026
Athletes’ Village

Land readjustment[International business development]• Business participation and investments to increase the value of a complex in Waikiki, Hawaii• Investment in Crow Holdings Realty Partners IX, L.P. (real estate investment fund investing in real estate across the UnitedStates)• Investment in Agya Ventures Fund L.P.
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

We also participate in joint condominium development projects in Bangkok in Thailand, and the US state of California.

32

Appendix
Second Quarter of
Fiscal YearEnding December 2022

Supplementary
Materials for
Financial Results

Artist’s conception of completed Le JADE Cross
Chiyoda Jimbocho

Segment Results ①
Real estate sales business - Condominium sales(Unit: units)

Property

Location

Mirakita City Himeji

Himeji-shi, Hyogo

Le JADE Nishinomiya Kitaguchi Hinokuchicho Nishinomiya-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 Tennoji Katsuyama

Tennoji-ku, Osaka-shi

Le JADE City Hyotanyama

Higashi-Osaka-shi, Osaka

Le JADE Ibaraki Higashichujo

Ibaraki-shi, Osaka

Grand Le JADE Shirakabe Getsuronotei

Nagoya-shi, Aichi

Closinginventory forterm ended
Decem ber 2021

Units

143(67)*1
94
40
152
71
39
232
40
24(18)*2

Total properties com pleted in term ended Decem ber 2021
Le JADE bio Makuhari Hongo

Hanamigaw a-ku, Chiba-shi

Le JADE Uraw a

Uraw a-ku, Saitama-shi

Le JADE Uehonmachi

Tennoji-ku, Osaka-shi

Le JADE Hirano

Hirano-ku, Osaka-shi

Le JADE Takatsuki Nishimakami

Takatsuki-shi, Osaka

Le JADE Times Core Kaw agoe

Kaw agoe-shi, Saitama

Le JADE Kyoto Horikaw a
Le JADE Gifu Kogane Koen

Shimogyo-ku, Kyoto-shi
Kaburagicho, Gifu-shi

Grand Clare Ichinomiya

Ichinomiya-shi, Aichi

Grand Le JADE Shirakabe Rinzennotei

Higashi-ku, Nagoya-shi

70
44
56
58
43
56
60

38
41(16)*334(26)*4

Total properties com pleted in term ending Decem ber 2022, first half

Num ber of units
Num ber of units Closing inventory
under contract andRem aining units
delivered infor Second
for w hich delivery is
as of August 22
Second Quarter of Quarter of Termin progress as of (contract and delivery
Term Ending
Ending Decem ber
August 22
basis)
Decem ber 2022
2022
(cum ulative)

5
5
5
48
5
3
88
20
5
184
-

5
5
5
47
5
3
38
12
2
122
70
44
56
58
43
24
42
24
13
20
394
-

0
0
0
0
0
32
18
14
3
6
73
-

5
5
5
48
5
3
61
16
3
151
70
44
56
58
43
42
51
31
14
23
432
218
72
49
62

0
0
0
1
0
0
50
8
3
62

Sold out
Sold out
Sold out
Sold out
Sold out
Sold out
27
4
2
33
Sold out
Sold out
Sold out
Sold out
Sold out
14
9
7
2
3
35

Le JADE Tsukuba Station Front

Tsukuba-shi, Ibaraki

Le JADE Yao Sakuragaoka

Yao-shi, Osaka

Le JADE Takatsuki Bessho

Takatsuki-shi, Osaka

Le JADE Kakegaw a Ekimae

Kakegaw a-shi, Shizuoka

218
72
49
83(62)*5

Le JADE Kaw agoe The Residence

Kaw agoe-shi, Saitama

23

-

-

-

14

Le JADE Takatsuki Minamimatsubara The Front

Takatsuki-shi, Osaka

74

-

-

-

55

Le JADE Gifu

Kanemachi, Gifu-shi

54

-

-

-

15

Le JADE Kyoto Shijo Omiya

Shimogyo-ku, Kyoto-shi

43

-

-

-

19

Le JADE Kyoto Higashinotoin

Shimogyo-ku, Kyoto-shi

42

-

-

-

- (Sales of units have not yet begun.)Total properties scheduled for com pletion in term ending Decem ber 2022,
second half

-

-

-

504

Incomplete (contracts
outstanding for 133 units)

184

517

135

1,087

68

Total

Sold out bef ore completion
Sold out bef ore completion
Sold out bef ore completion
Sold out bef ore completion
Incomplete (contracts outstanding fornine units)
Incomplete (contracts outstanding for
19 units)
Incomplete (contracts outstanding for
39 units)
Incomplete (contracts outstanding for
24 units)
Incomplete (contracts outstanding for
42 units)*1 Includes 143 residences and nine owner-occupied condominium units. We hold a 50% share (67 units) of the total units.
*2 We hold a 75% share (18 units).

*3 We hold a 40% share (16 units).

*4 We hold a 75% share (26 units).

* All figures above are rounded off to the nearest whole number.

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved*5 We hold a 75% share (62 units).

Closing inventory for the term decreased by 49
units. This was despite 10 properties completed in
the first half of the term ending December 2022.

Contracts wereconcluded on 151
units (82%) of the
184 units inclosing inventory
for the term.

Contracts wereconcluded on fourof the nine units
scheduled forcompletion in thesecond half of thisterm.

Contracts wereconcluded on
1,087 units (91%)
of the 1,200 units
scheduled fordelivery during
this term.

2

Condominium Sales Business FY2022 (Frist Half) property lineup
Q1 (January-March)
Le JADE Times Core Kawagoe
Kawagoe-shi, Saitama

Grand Clare Ichinomiya
Ichinomiya-shi, Aichi

Le JADE bio Makuhari Hongo
Hanamigawa-ku, Chiba-shi

5-minute walk from Kawagoe Station on the
JR Kawagoe Line/Tobu Tojo Line and otherlines

13-minute walk from Owari Ichinomiya
Station on the JR Tokaido Main Line andother lines

5-minute walk from Makuhari Hongo Stationon the JR Chuo Line/Sobu Line and otherlines

3-minute walk from Osaka Uehonmachi
Station on the Kintetsu Namba Line/Nara
Line/Osaka Line and other lines

Units

56

41

70

56

Occupancy

January

January

February

March

Name

AccessSold out

Le JADE Uehonmachi
Tennoji-ku, Osaka-shi

Sold out

Exteriorview

Q2 (April-June)

Le JADE Kyoto
Horikawa
Shimogyo-ku, Kyoto-shi

Le JADE Gifu Kogane
Koen
Kaburagicho, Gifu-shi

Le JADE Urawa
Urawa-ku, Saitama-shi

9-minute walk from
Omiya Station on the
Hankyu Kyoto Line andother lines

8-minute walk from Meitetsu
Gifu Station on the Meitetsu
Nagoya Main Line and otherlines

4-minute walk from Urawa
Station on the JR ShonanShinjuku Line

Units

60

38

Occupancy

April

May

Name

AccessLe JADE Hirano
Hirano-ku, Osaka-shi

Le JADE Takatsuki
Nishimakami
Takatsuki-shi, Osaka Sold out

Grand Le JADE Shirakabe
Rinzennotei
Higashi-ku, Nagoya-shi

7-minute walk from Hirano
Station on the Osaka Metro
Tanimachi Line

17-minute walk from
Takatsuki Station on the JR
Tokaido Main Line

13-minute walk from
Takaoka Station on the
Nagoya Subway SakuradoriLine and other lines

44

58

43

34

May

May

June

June

Sold out

Sold out

Exteriorview

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

3Condominium Sales Business FY2022 (Second Half) property lineup
Q4 (October-December)

Q3 (July-September)

Name

Le JADE Takatsuki Bessho
Takatsuki-shi, Osaka

Le JADE Kakegawa Ekimae
Kakegawa-shi, Shizuoka

Le JADE Tsukuba Station Front
Tsukuba-shi, Ibaraki

Le JADE Gifu
Kanemachi, Gifu-shi

Sold out

Sold out

Sold out

Access13-minute walk from Takatsuki Station on
the Hankyu Kyoto Line and other lines

2-minute walk from Kakegawa Station on
the JR Tokaido Shinkansen and other lines

3-minute walk from Tsukuba Station on the
Tsukuba Express

5-minute walk from Gifu Station on the JR
Tokaido Main Line

Units

49

83

218

54

Occupancy

Slated to start late August

Slated to start late OctoberSlated to start late November

Slated to start late December

Exteriorview

Q4 (October-December)

Name

Le JADE Takatsuki
Minamimatsubara The Front
Takatsuki-shi, Osaka

Le JADE Kawagoe The
Residence
Kawagoe-shi, Saitama

Le JADE Yao Sakuragaoka
Yao-shi, Osaka

Le JADE Kyoto Shijo Omiya
Shimogyo-ku, Kyoto-shi

Le JADE Kyoto Higashinotoin
Shimogyo-ku, Kyoto-shi

Access6-minute walk from Takatsukishi Station on the Hankyu
Kyoto Line and other lines

10-minute walk from Kawagoe
Station on the JR Kawagoe
Line/Tobu Tojo Line

7-minute walk from Kintetsu Yao
Station on the Kintetsu Osaka Line

1-minute walk from Omiya Stationon the Hankyu Kyoto Line andother lines

2-minute walk from Gojo Stationon the Kyoto Subway Karasuma
Line and other lines

Units

74

23

72

43

42

Occupancy

Slated to start late November

Slated to start late November

Slated to start late December

Slated to start late December

Slated to start late December

Exteriorview

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

4Condominium Sales Business Area development status
Area/FY

Kinki region

Units supplied

2021
652 units

2022
1,200 units(planned)2023
1,200 units(planned)

•
•
•
•
•
•
•
•
•
•
•

Metropolitan area

Hokkaido
regionChubu region

Kyushuregion• GLJ Shirakabe Getsuronotei• OST Residence Karuizawa

LJ Nishiakashi
LJ City Hyotanyama
LJ Yamato-Takada Ekimae
LJ Mukonoso Honmachi
LJ Suma Myohoji Ekimae
LJ Ibaraki Higashichujo
LJ Senri Aoyamadai
LJ Senri Furuedai
LJ Nagai Koen DoriLJ Tennoji Katsuyama
LJ Neyagawa Koen

•
•
•
•
•
•

LJ Uehonmachi
LJ Kyoto Horikawa
LJ Hirano
LJ Takatsuki Nishimakami
LJ Takatsuki Bessho
LJ Takatsuki
Minamimatsubara The Front• LJ Yao Sakuragaoka• LJ Kyoto Shijo Omiya• LJ Kyoto Higashinotoin

•
•
•
•
•

• LJ Takatsuki
Minamimatsubara Bright• LJ Fushimi Momoyama• LJ Midoribashi Ekimae• LJ Kamishinjo• LJ Shitennoji Yuhigaoka• Minoosenba Higashi Project• Sumiyoshi-ku MinamiSumiyoshi II Project

•
•
•
•
•
•
•
•

LJ Times Core Kawagoe
LJ bio Makuhari Hongo
LJ Urawa
LJ Tsukuba Station Front
LJ Kawagoe The ResidencePark LJ Shirokane Residence
LJ Cross Chiyoda Jimbocho
LJ Hontokawagoe Koedo Terrace
LJ Itabashi Motomachi
LJ Matsudo Station Front
Kamakura-shi Zaimokuza ProjectHaramachida 3-chome Project
Sagamihara-shi Midori-ku
Hashimoto I-III Project• Hayamamachi I Project• Chigasaki-shi Higashi-kaigan
Project• LJ Gifu Kogane Koen
• Grand LJ Shirakabe
Rinzennotei• LJ Kakegawa Ekimae• LJ Gifu• Grand Crea Ichinomiya• LJ Kanayama• LJ Hokkaido
Ballpark• LJ Sapporo
Motomachi• Higashi-ku Kita5-Higashi-9• Le JIAS
OhashiAiming to deliver stable supplies in five major urban areas*LJ: Le JADE; GLJ: Grand Le JADE
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

5Segment Results ②
Real estate sales business - Condominium sales➢ Properties sold in the second quarter of the fiscal year ending December 2022
Property

Type

Sales (million yen)

Site for logistics facility

5,479

LOGITRES Chiba Research Park

Logistics facility

3,001

Tsuruma EkimaeLand planning

323

-

1,940

Genboen, Koga-shi, Fukuoka (Zone 6)

Other (e.g., ESH and ESC* housing developments)
Total

10,743* ESH: ES-CON HOME
ESG: ESCON CRAFT
Housing developments are located primarily in Saitama Prefecture.
Both companies were made subsidiaries in July 2019.

LOGITRES Chiba Research Park
(Wakaba-ku, Chiba-shi)

Real estate leasing➢ Major properties owned as of the end of the second quarter of the fiscal year
ending December 2022
Main properties owned

Location

Ownership status

Kansai Medical University Kuzuha Hospital

Hirakata-shi, Osaka

Noncurrent asset

tonarie Minamisenri Annex

Suita-shi, Osaka

Noncurrent asset

Oh! Me Otsu Terrace

Otsu-shi, Shiga

Noncurrent asset

tonarie Utsunomiya

Utsunomiya-shi, Tochigi

Noncurrent asset

tonarie Yokkaichi

Yokkaichi-shi, Mie

Noncurrent asset

Lions Square Kawaguchi

Kawaguchi-shi, Saitama

Current asset (for sale)

tonarie CREO

Tsukuba-shi, Ibaraki

Current asset (for sale)

tonarie Q’t/tonarie MOG

Tsukuba-shi, Ibaraki

Current asset (for sale)

tonarie Fujimino

Fujimino-shi, Saitama

Current asset (for sale)

Aisai Plaza

Aisai-shi, Aichi

Current asset (for sale)

Nakasu, Hakata-ku (hotel)

Hakata-ku, Fukuoka-shi

Current asset (for sale)

Nishi-Shinsaibashi, Chuo-ku (hotel)

Chuo-ku, Osaka-shi

Current asset (for sale)

Repro Shinbashi (office)Minato-ku, Tokyo

Picasso Group properties-

Current asset (for sale)Noncurrent assets andcurrent assets

Aisai Plaza * Acquired in the current term

Oh! Me Otsu Terrace
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

6Commercial Facility Development Projects:
Developing the tonarie brand➢ We develop and manage neighborhood shopping centers (NSCs).
We are currently developing the tonarie brand of commercial facilities (managed by Group company ES-CON Property).
Brand Concept:
Close to the community in order to develop together with the community. Always a good neighbor.
➢ tonarie series➢ tonarie Yamato-Takada Project (combination commercial-residential project in station area)(nine facilities in total)
Oak Town Yamato Takada

We acquired a general merchandise store(GMS) from the high growth period that wasover 40 years old from a major textile
manufacturer in 2015.

YamatoTakada
StationLe JADE Yamato-Takada Ekimae

Opened inNovember 2021
after remodeling

We transformed this into a facility sized to meet community needs androoted in experience-based lifestyles, with 68 tenants opening on
November 23, 2018. The center won a 2019 Good Design Award.
Shifting toward large-scale development projects, including thedevelopment of the Le JADE Yamato-Takada Ekimae condominium
and attracting large specialty retailers, etc.

tonarie Fujimino (Fujimino-shi, Saitama)

tonarie Utsunomiya (Utsunomiya-shi, Tochigi)

tonarie YamatoTakada

tonarie Toga Mikita (Sakai-shi, Osaka)

tonarie Seiwadai (Kawanishi-shi, Hyogo)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

tonarie Tsukuba Square*(Tsukuba-shi, Ibaraki)*tonarie CREO/Q’t/MOG

tonarie Minamisenri (Suita-shi, Osaka)

tonarie Minamisenri Annex (Suita-shi, Osaka)

tonarie Yamato-Takada (Yamato-Takada-shi, Nara)

tonarie Yokkaichi (Yokkaichi-shi, Mie)7

Logistics Development Business➢ We are developing the LOGITRES brand of logistics facilities.
➢ We acquired four sites for logistics facilities in 2021 and are working to grow this business.

Aquiredin 2021⑤ LOGITRES Sano (tentative name)Location: 238-1 Tajimacho, Sano-shi, Tochigi① LOGITRES Tojo

Access:Location:

9-1, 9-2 Minamiyama 6-chome,
Kato-shi, Hyogo

Access:Adjacent to Hyogo Tojo Interchange on
Chugoku Expressway

Approx. 5 km from Sano-Fujioka
Interchange on Tohoku Expressway

SlatedMid-March 2023
completion date:Completed: October 2019

⑤
④
①

③
⑥

②

③ LOGITRES Chiba Research Park
② (Tentative name) Koga Genboen Logistics
Center (Zone 6)
Location:

1989-7 Mushirouchi, Koga-shi, Fukuoka

Access:Approx. 3.0 km from Koga Interchange on
Kyushu Expressway④ Gifu Hashima-shi Logistics Facility
Development Project (tentative name)Location:958-57 Kamiizumi-cho,
Wakaba-ku, Chiba-shi, Chiba

Access:Approx. 6 km from Sakura
Interchange on Higashi-Kanto
Expressway

Slatedcompletion date:Aquiredin 2021

Aquiredin 2021

May 2022⑥ LOGITRES Narashino Shibazono

Aquiredin 2021

Location:

Hirakata, Fukujucho, Hashima-shi, Gifu
(inside Hashima-shi Hirakata Land Readjustment
Project II)

Location:

1-20, 1-67, 1-70 Shibazono, Narashino-shi, Chiba

Access:17-minute walk from Gifu Hashima Station on the
JR Tokaido Shinkansen

Access:Approx. 3.5 km from Makuhari Interchange on
Keiyo Expressway
Approx. 4.4 km from Wangan Narashino
Interchange on Higashi-Kanto Expressway

Slatedcompletion date:

March 2023

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

Slatedcompletion date:July 20248

Large-scale Urban Development Business➢ We are focusing on large-scale urban development utilizing our diverse development capabilities.

Fukuoka Kasuga Project

Hokkaido Kitahiroshima Station “West Exit Revitalization Project”(Kasuga-shi, Fukuoka)(Kitahiroshima-shi, Hokkaido)
20th Asian Games Aichi-Nagoya 2026 Athletes’ Village site
post-Games project

Suita-shi Fujishirodai 5-chome Project

Suita-shi
Fujishirodai
5-chome Project(Nagoya-shi, Aichi)

Joint project with
Chuden Real Estate
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved(Suita-shi, Osaka)

Joint project with Chubu
Electric Power Group9

Land Readjustment Business➢ We are developing logistics facilities through our land readjustment business in Koga, Fukuoka Prefecture.

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

Logistics facility development: Zone 5

Structure: two aboveground floors; site area: approx. 7,931 tsubo;
total floor area: approx. 8,992 tsubo
We are also currently at work on other 5-10-year land readjustment projects to develop logistics, commercial, and other sites.
(Sakai-shi Takakuradai Land Readjustment Project, Kawachinagano-shi Uehara-Tako Land Readjustment Project, etc.)
Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

10Progress of Capital and Business Partnership with Chubu Electric Power Co., Ltd.
➢ The capital and business partnership we concluded with Chubu Electric Group in August 2018 has steadily generated numerous synergies.
Having become a consolidated subsidiary of Chubu Electric Power in April 2021, we will strive to demonstrate additional synergies moving
forward.
Five joint projects are already underway with ChudenReal Estate.

Promoting joint
projects

Four projects in the Chubu area: Shirakabe, ShirakabeII,
Nishi-Ichinomiya, Kakegawa
One project in the Kinki area: Fujishirodai, Suita-shi

New capital and business
partnership agreement (concluded
February 24, 2021)① Enhancing joint efforts related to energy

Mutuallycomplementarybusiness areas

Nagoya Office opened in March 2019.

Business developed in both regions (Chubu and Kansai)

supply and facility construction② Joint research and joint implementation inbusinesses related to next-generation smart
houses, connected homes, and so forth

Making effective useof real estate ownedby the Chubu ElectricPower Group

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

Joint research andimplementation of nextgeneration 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). This is a joint
project with Chuden Real Estate.

Prospective buyers
for our real estatedevelopment projects

Sale of properties owned by the Company to Chuden Real
Estate through warehousing method (In September 2019,support agreements were concluded with three companies:
Chuden Real Estate, EAM, and EJR.)

Exchange ofhuman
resources

Some Company employees were seconded to Chuden Real Estatefrom April 2019. Other human resource exchanges include thesecondment of Chuden Real Estate employees to the Company
and the appointment of one person from Chubu Electric as director
in March 2019.

Respect forautonomy

Continued business development utilizing the Company’s
characteristic speed③ Further enhancing the partnership with
Chuden Real Estate, a member of the
Chubu Electric Power Group

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved④ Enhancing partnerships related to theeffective utilization and development of
unused or underused land belonging to the
Chubu Electric Power Group⑤ Joint initiatives in businesses that constituteto society, including urban development

Start of partnerships with Chubu Electric① Establishment of TSUNAGU Community
Farm G.K.
② Chosen as candidate contractor to operate
the site of the 20th Asian Games AichiNagoya 2026 Athletes’ Village after the
Games

11

*1) Amounts are truncated and fractions rounded off.
*2) Utilization rates and years remaining on lease asof July 25, 2022
*3) Appraisals are the most recently acquired.

EJR Portfolio
Number ofproperties

Total acquisition
price

38 properties

69.6 billion yen 75.1 billion yen

Hokkaido 

Kanto Yamada Denki Tech Land
Sapporo Shiraishi

Asumigaoka Brand New
Malltonarie Yamato-Takada(50% equity)

Total appraised
value

Tsutaya Sakai Minami(leasehold)Utilization rate

Appraised NOI
yield

Amortized appraised
NOI yield

Years remaining
on lease

99.9%

5.1%

4.6%

10.6 years

Commercial leasehold included

31.1 billion yen

Leasehold ratio

44.8%

K’s Denki Oyumino(leasehold)Nishishirai Ekimae Plaza

tonarie Toga Mikita

Kusuri no Aoki Ikaruga(leasehold)Nitori Tsuchiura(leasehold)Nitori Imaichi (leasehold)Drug Yutaka Muko Kamiueno(leasehold)Chubu Kinki PareMarche Nishiharu

Trial Omi Yawata (leasehold)tonarie Seiwadai

Welcia Amagasaki Muko
Motomachi (leasehold)Max Valu Kikyogaoka
Higashi (leasehold)Cocokarafine Neyagawakoen(leasehold)

Chugoku 

ENEOS Ikawadani Service Station(leasehold)Geo Hikone Takamiye (leasehold)tonarie Minamisenri

LAMU Kitatsumori (leasehold)

Sanyo Marunaka Mitani(leasehold)Life Daisen (leasehold)

K’s Denki Nishikobe(leasehold)

K’s Denki Kurashiki(leasehold)

Kyushu Fuji Grand Natalie

Suroy Mall Nagamine

Fukuoka Kasuga Project (leasehold)

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

12

Information
ESCON JAPAN Ltd.

Email: ir@escon.jp

Tokyo Head Office

Nagoya Office

20th Floor, The Okura Prestige Tower
2-10-4 Toranomon
Minato-ku, Tokyo

5th Floor, Hirokoji Sakae Building
4-1 Sakae 2-chome, Naka-ku
Nagoya, Aichi Prefecture+81-3-6230-9308+81-52-218-4820

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

Kyusyu Office
9th Floor, Yasuda Dai-7 Building
13-15 Kamikawabatacho
Hakata-ku, Fukuoka+81-92-283-153

Hokkaido Office
ES-CON JAPAN
Official Instagram, Facebook
Follow us!

Copyright ©2022 ES-CONJAPAN Ltd., All Rights Reserved

13th Floor, Nissay Sapporo Building
1-1 Kita-sanjo-nishi 4-chome
Chuo-ku, Sapporo, Hokkaido+81-11-211-1928
13