Es-con Japan Ltd. · TSE:8892
Es-con Japan — Q2 2020 Earnings Presentation
36 slides from Es-con Japan's earnings presentation, Aug 18, 2020
Slide 1: Financial Results for First Two Quarters of Term Ending December 2020
August 18, 2020 Financial Results for First Two Quarters of Term Ending December 2020 ES-CON JAPAN Ltd.
Slide 2: Table of Contents
Table of Contents ⚫ Financial Results for First Two Quarters of Term Ending December 2020 P.3 Main Activities in First Two Quarters of Term Ending December 2020 P.4 P/L in First Two Quarters of Term Ended December 2020 P.5 Segment Results for First Two Quarters of Term Ending December 2020 P.6, 7 B/
Slide 3: Financial Results for First Two Quarters of Term Ending December 2020
Financial Results for First Two Quarters of Term Ending December 2020 Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved 3
Slide 4: Main Activities in First Two Quarters of Term Ending December 2020
Main Activities in First Two Quarters of Term Ending December 2020 Naming rights acquired for new stadium for Hokkaido Nippon-Ham ES CON FIELD January Fighters HOKKAIDO Nomination and Remuneration Advisory Committee established Le JADE Okurayama ESCON JAPAN REIT Investment Corporation (EJR) undertak
Slide 5: P/L in First Two Quarters of Term Ended December 2020
P/L in First Two Quarters of Term Ended December 2020 • Both sales and profits increased YoY. • Both sales and profits are up. Business proceeded largely according to plan. (Unit: Million yen) Second Quarter of Term Second Quarter of Term Amount of Second Quarter of Term Percentage Compared to Diffe
Slide 6: Segment Results for First Two Quarters of Term Ending December 2020
Segment Results for First Two Quarters of Term Ending December 2020 • In the real estate sales business, sales grew by 88% and income by 70% YoY. Other sales contributed significantly to both sales and income. • In the condominium business, sales were up 265% YoY, while income was up 320% YoY. • Oth
Slide 7: Segment Results for First Two Quarters of Term Ending December 2020
Segment Results for First Two Quarters of Term Ending December 2020 • The completed condominium inventory stood at 158 units at the end of June 2020 (109 units as of August 17). • Other sales included 10.3 billion yen in sales to REIT (EJR) and 9.5 billion yen in sales to Chuden Real Estate, for app
Slide 8: B/S in First Two Quarters of Term Ending December 2020
B/S in First Two Quarters of Term Ending December 2020 • Fixed assets grew 3.2 billion yen due to the acquisition of the commercial facility tonarie Utsunomiya and investments (in EJR, SQUEEZE, and ESCON USA). • Annual average interest rate fell YoY to 0.9% thanks to the business partnership with th
Slide 9: Most Recent Main Initiatives
Most Recent Main Initiatives Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved 9
Slide 10: Progress of capital and business partnership with Chubu Electric Power Co., Ltd.
Progress of capital and business partnership with Chubu Electric Power Co., Ltd. Two full years have passed since August 2018, when we concluded a capital and business partnership agreement with Chubu Electric Power, becoming an equity method affiliate of that company. The capital and business partn
Slide 11: Business development in the Chubu area
Business development in the Chubu area • The Nagoya Office opened in March 2019. • Six projects are already underway in the Chubu area. • Four of these six projects are joint projects with Chuden Real Estate. 5 Karuizawa-machi, Kitasaku-gun, Condominium Nagano 6 Kaburagicho, Gifu-shi, Gifu Toyama Co
Slide 12: ESCON JAPAN REIT Investment Corporation (EJR)
ESCON JAPAN REIT Investment Corporation (EJR) Completed first post-listing PO in February 2020; assets total approx. 52 billion yen. Enhancing organization with eye toward forming private REITs and private investment funds. Rating acquired from Rating and Investment Information (R&I) in November 2
Slide 13: EJR Portfolio Summary Map
EJR Portfolio Summary Map Number of Total acquisition Total appraised Utilization Appraised NOI Amortized appraised Years remaining properties price value rate yield NOI yield on lease 28 properties 51.9 billion yen 56.9 billion yen 99.8％ 5.1％ 4.6％ 10.7 years *1) Amounts are truncated and fractions
Slide 14: Participation in Hokkaido Ballpark project
Participation in Hokkaido Ballpark project We are participating in the large-scale development of 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. This project seeks to realize community deve
Slide 15: Naming rights acquired for ES CON FIELD HOKKAIDO
Naming rights acquired for ES CON FIELD HOKKAIDO We are participating in the development of the area around the new stadium for the Hokkaido Nippon-Ham Fighters and have acquired naming rights. ES CON FIELD HOKKAIDO is slated to open in 2023. We will also take this opportunity to participate in spor
Slide 16: Overseas Business Development
Overseas Business Development Following investment in a Hawaii real estate investment fund and after starting our first overseas condominium development project in Bangkok, Thailand, we are participating in a joint condominium development project in California ⚫ We launched our overseas business dev
Slide 17: ESG initiatives
ESG initiatives 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 by promoting ESG management as a lifeways developer creating ide
Slide 18: ESG Activities: Most Recent Main Initiatives
ESG Activities: Most Recent Main Initiatives ◼ September 2019: Le JADE Okurayama named to FY2019 high-rise ZEH-M support program for zero-emissions condominiums • Standards-compliant eco-friendly product design through improved insulation performance in exterior walls and elsewhere; use of high insu
Slide 19: Full-year performance plans for the term ending December 2020
Full-year performance plans for the term ending December 2020 Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved 19
Slide 20: Full-year performance plans for the term ending December 2020
Full-year performance plans for the term ending December 2020 Business performance through the first two quarters of the term ending December 2020 proceeded according to plan. However, current conditions warrant particular care with regard to management decisions and close monitoring of the business
Slide 21: COVID-19 risks and responses
COVID-19 risks and responses Condominium sales While we did not completely close showrooms, we switched from face-to-face sales activities and having customers visit showrooms to online sales activities at an early stage, and have achieved certain results. Although the number of visitors fell by a
Slide 22: Real Estate Sales Business
Other Real Estate Sales Business Other Sales Share by Area • Business proceeded largely according to plan in the first half Chubu of the term ending December 2020. (Units sold) In the second half, we will move forward to achieve our plans while carefully ascertaining related conditions. • In light o
Slide 23: Condominium Sales Business FY2020 Lineup
Condominium Sales Business FY2020 Lineup Le JADE Kuzuha Condominium (Osaka) Le JADE Higashisumiyoshi Imagawa Ryokudo Le JADE Kotoen (Hyogo) Sold out Grand Le JADE Shukugawa Residence (Hyogo) Le JADE Ikeda Masumicho (Osaka) (Redevelopment Project) (Osaka) Location: Nishinomiya-shi, Hyogo Location: Ni
Slide 24: Condominium Sales Business FY2021, FY2022 Planned Lineup
Condominium Sales Business FY2021, FY2022 Planned Lineup FY2021 Le JADE Nishiakashi (Hyogo) Le JADE Suma Myohoji Ekimae (Hyogo) Le JADE Senri Aoyamadai (Osaka) Le JADE Yamato-Takada Ekimae (Nara) Le JADE Nagai Koen Dori (Osaka) Le JADE Tennoji Katsuyama (Osaka) Location: Akashi-shi, Hyogo Location:
Slide 25: Commercial Development Business
Commercial Development Business We will develop tonarie brand neighborhood shopping centers (NSC) and redevelop and revitalize commercial facilities in operation in order to contribute to the development of local communities that are closely connected with people’s daily lives and to help promote co
Slide 26: Commercial Development Business
Commercial Development Business Seibu Tsukuba, a large-scale commercial facility in front of the station, closed in February 2017, and Aeon Tsukuba Ekimae closed in January 2018, so the area around the station is in need of urban development and revitalization. We acquired three facilities, CREO, Q’
Slide 27: Hotel Development Business
Hotel Development Business Sold 17 Development Projects (15 sold) 千代田区隼町 2018年4月開業 102室 Kayabacho, Nihonbashi Bakurocho, Nihonbashi Hiranomachi, Sapporo-shi, Hokkaido Oyamamachi, Kanazawa-shi Minamisenba III, Hayabusacho, Opened in December Opened in April 2017 Chuo-ku, Osaka-shi Opened in July 2017
Slide 28: Logistics Development Business and Other Business
Logistics Development Business and Other Business We launched the new LOGITRES brand of logistics facilities and developed its first project, LOGITRES Tojo. Land for the second project was acquired in October 2019 in the same area as the first project. We are also working to develop sites for logist
Slide 29: Real Estate Leasing Business
Real Estate Leasing Business • We are strengthening the real estate leasing business through development and ownership of revenue-generating properties. • A stock revenue structure is being established that can cover total general administrative expenses with rental income. • We will continue streng
Slide 30: Review of the medium-term management plan
Review of the medium-term management plan Copyright ©2020 ES-CONJAPAN Ltd., All Rights Reserved 30
Slide 31: Review of the medium-term management plan and progressive dividend policy
Review of the medium-term management plan and progressive dividend policy February 2020: Global COVID-19 pandemic breaks out. → Large-scale restrictions on economic activities and dramatic changes in the social and economic environment Further increase in uncertainty due to the extreme difficulty of
Slide 32: Strategic Business Expansion of ES-CON JAPAN Group
Strategic Business Expansion of ES-CON JAPAN Group ESCON JAPAN REIT Investment Corporation ES CON Chubu Electric Collaboration Property Ltd. Power Group ＲＥＩＴ Property management International (PM) of business commercial facilities Real estate Condominiums asset management Commercial ES CON Asset Lan
Slide 33: Results of regional expansion
Results of regional expansion Hokkaido As of August 17, 2020 Hotel: 1 project ⚫ Condominium units: approx. 11,290 units Commercial facility (approx. 9,087 units in Kansai; approx. 2,203 units in Kanto) (including leasehold): 2 projects ⚫ Detached houses/housing land development: approx. 700 sections
Slide 34: Information
Information ESCON JAPAN Ltd. Email: ir@escon.jp Tokyo 20F The Okura Prestige Tower, 2-10-4 Toranomon, Minato-ku, Tokyo, 105-0001 ☎03-6230-9308 Osaka 13th Floor, Meiji Yasuda Seimei Building, 4-1-1 Fushimimachi, Chuo-ku, Osaka 541-0044 ☎06-6223-8055 ESCON JAPAN Official Instagram, Facebook Follow us!
Slide 35: Disclaimer
Ｍｅｍｏ Disclaimer Forward-looking statements in this document reflect judgments based on information available at the time of publication. Actual results may vary due to various factors. 35
Slide 36: ESCON GAN
ESCON GAN