August 29, 2023
Company name:
Representative:
Inquiries:
Tel:ES-CON JAPAN Ltd.
Takatoshi Ito, President &Representative Director(TSE Prime Market, code: 8892)
Kenji Fujita,
Director, Head of Management Division+81-3-6230-9308

Notice of Revisions to Forecasts of Full-year Financial Results andProjected Dividends for FY2023 and to the Fourth Medium-Term
Management Plan in connection with Change in the Date ofSettlement of Accounts (End of Fiscal Year)
In its meeting held today, the Board of Directors of ES-CON JAPAN Ltd. (ES-CON JAPAN) chose torevise consolidated earnings forecasts for the fiscal year ending December 2023 (announcedJanuary 27, 2023); projected dividends for FY2023; and IDEAL to REAL 2023, the fourth mediumterm management plan (covering the three-year period from the period ending December 2021
through the period ending December 2023), as outlined below. These revisions reflect the change inthe date of settlement of accounts; note that this change is conditional on the approval of a resolution
concerning the partial amendment of the current Articles of Association at an extraordinary general
meeting of shareholders scheduled for November 29, 2023 (Extraordinary General Meeting), as
described in the separate press release, “Notice of Change in Date of Settlement of Accounts (Endof Fiscal Year), Partial Amendment of the Articles of Association, and Basis Date for Extraordinary
General Meeting of Shareholders,” also issued today.
1. Revision of consolidated earnings forecast(1) Revision of consolidated earnings forecast for FY2023
Net sales

OperatingincomeOrdinary
incomeProfit attributableto owners of theparent

Profit pershare

Previously announced
forecast (A)(million yen)(million yen)(million yen)(million yen)

(yen)

110,000

16,20014,200

9,400

98.65

Revised forecast (B)120,000

18,00015,50010,000104.95

Change (B – A)

10,0001,800

1,300600

-

9.1

11.1

9.2

6.4

-99,431

15,492

14,012

7,250

76.04

Percent change (%)
Reference:Previous fiscal year
(ended December2022)* Revised forecast (B) indicates figures for the 15-month period from January 1, 2023 through March 31, 2024.
Previously announced forecast (A) indicates figures for the 12-month period from January 1 through December 31, 2023,
as announced in the Summary of Accounts for Fiscal Year Ended December 2022 (Japanese GAAP) (Consolidated)issued January 27, 2023.

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(2) Reason for revising the consolidated earnings forecast

At the Extraordinary General Meeting of shareholders, ES-CON JAPAN plans to change its fiscal
year from the current one-year period from January 1 through December 31 of each calendar year
to the one-year period from April 1 of each calendar year through March 31 of the following calendar
year. For the transition year, it plans to extend the current 29th fiscal period to the 15-month period
from January 1, 2023 through March 31, 2024. The consolidated earnings forecasts and projected
dividends announced in the Summary of Accounts for Fiscal Year Ended December 2022 (JapaneseGAAP) (Consolidated) issued January 27, 2023 will be revised to reflect this change.
2. Revision of projected dividends

ES-CON JAPAN plans to increase year-end dividends to 48 yen/share. This is 10 yen/share above
the initial projection of 38 yen/share.
(Unit: yen)
Annual dividends
Q2 endPreviously announced forecast (A)(12 months)
Revised forecast (B)(15 months)
Actual dividends in current period
Reference:
Actual dividends in previous fiscal
year (ended December 2022)

Year endTotal

38.00

38.00

48.00

48.00

38.00

38.00

0.00 yen
0.00 yen* Revised forecast (B) indicates figures for the 15-month period from January 1, 2023 through March 31, 2024.
The previously announced forecast (A) indicates figures for the 12-month period from January 1 through December 31,
2023, as announced in the Summary of Accounts for Fiscal Year Ended December 2022 (Japanese GAAP)(Consolidated) issued January 27, 2023.
* Due to the change in fiscal year start and end dates, the basis date for the next year-end dividends will be March 31,2024.

3. Revisions to IDEAL to REAL 2023, the fourth medium-term management plan

ES-CON JAPAN is making steady progress on “IDEAL to REAL 2023,” its fourth medium-term
management plan. Implementation of this plan is currently underway for the three-year period fromthe year ended December 2021 through FY2023. In line with its basic policy, “Transformation andRapid Progress,” “IDEAL to REAL 2023” identifies the management strategies of “Establishingbusiness foundations able to withstand unexpected changes in economic conditions” and“Simultaneously changing the revenue structure and expanding business domains.”
Forecasts for the final fiscal year of the fourth medium-term management plan (FY2023) will berevised to reflect the change to the transitional 15-month period described above.

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(Unit: million yen)

Performance Plan

Sales

Period ended
December
2021(FY no. 27)

Period ended
December
2022(FY no. 28)

Results

Results

FY2023(FY no. 29)
Initial plan
(12 months)(A)

Revised plan(15 months)(B)

Change(B-A)

Change(B-A)(%)

79,01799,431110,000

120,000

10,000

9.1

Real estate sales business

70,33486,531

94,800100,000

5,200

5.5

Condominium sales

45,05058,532

61,90069,000

7,100

11.5

Condominium units
sold (units)

1,020

1,185

1,164

1,268

104

8.9

Other sales

25,28327,99932,90031,000-1,900

-5.8

8,090

11,824

14,20019,000

4,800

33.8

592

1,074

1,000

1,000--

Operating profit

10,381

15,492

16,20018,000

1,800

11.1

Ordinary income

9,099

14,012

14,20015,5001,300

9.2

Profit attributable to owners of
the parent

5,961

7,250

9,40010,000600

6.4

Period ended
December 2021

Period ended
December 2022

Results

Results

Real estate leasing
business
Real estate planning
agency and consulting
business

Management targets

FY2023
Initial plan
(12 months)(1)

Revised plan
(15 months)(2)

Change(2-1)

Share of profits from leasing
*1

21.2%

21.5%

30.0%

28.0%

-2 points

Return on equity (ROE)

11.8%

11.3%

13.0%

15.0%

2 points

Return on invested capital(ROIC)

3.2%

4.6%

4.0%

4.0%

-

Equity ratio

24.8%

25.0%

21.0%

20.0%

-1 point

Share of long-term earnings
from real estate *2

20.6%

19.5%

23.0%

21.0%

-2 points

62.6 billion yen

64.1 billion yen

72.0 billion yen

71.0 billion yen-1.0 billion yen

Net assets*1 Share of profits from leasing: Leasing segment profits/segment total profits (not including adjustments)*2 Share of long-term earnings from real estate: Real estate generating leasing revenues recorded as noncurrent
assets/net assets3

(Unit: 100 million yen)Three-year Three-year
Changecumulative cumulative
(2-1)
total
total
Initial plan Revised plan
(12 months) (15 months) (12 months) (15 months)
(2)
(1)

2021

2022

Results

Results

959

369

880

972

2,209

2,300

91

767

108

657

665

1,533

1,540

756

36100

128

193

220

27

337

56

337

292

731

685

-46

373

15220

247

608

635

27

191

261

223

308

675

760

85

Amount recovered

48

65

187

167

300

280

-20

Net investment amount

911

304

693

805

1,908

2,020

112

Investment plans

Gross investment
Investment in revenuegenerating real estate
Investment indevelopment of revenuegenerating real estate
Investment in mediumterm revenue-generating
real estate
Investment in long-term
revenue-generating realestateInvestment in otherdevelopment2023

4. Preferential system for shareholders

ES-CON JAPAN currently distributes QUO Cards to shareholders who have held at least 10minimum trading units (1,000 shares) of its stock continuously for at least one year, in accordancewith numbers of shares held and period of continuous shareholding, as of the basis date of June 30of each year. Due to the change in fiscal year start and end dates starting in 2024, the same
preferences for such shareholders shall be gifted with a basis date of September 30 of each year.
For FY2023, preferred shareholder status will be granted (as it has been to date) with a basis dateof June 30. (Plans call for sending out the preferences in late September 2023.)
Reference: Details of preferences for shareholders (the details of preferences for shareholders
remain unchanged)
Period of continuous shareholding
Number of shares held

1 year or longer but less than 2 years

2 years or longer

1,000-4,999 shares

1,000 yen QUO Card

3,000 yen QUO Card

5,000-9,999 shares

2,000 yen QUO Card

5,000 yen QUO Card10,000 or more shares

3,000 yen QUO Card

10,000 yen QUO Card

The above forecasts reflect judgments based on information available at the time of publication.
Actual results may differ due to various factors.

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