Summary of Accounts for Fiscal Year Ended December 2021 (Japanese GAAP)
(Consolidated)
January 27, 2022 | |||||
Name of listed company: | ES-CON JAPAN Ltd. | Listing exchange: Tokyo Stock Exchange | |||
Code: | 8892 | URL: | https://www.es-conjapan.co.jp | ||
Representative: | (Name) | Takatoshi Ito | (Position) | President & Representative Director | |
Contact for inquiries: | (Name) | Minoru Nakanishi | (Position) | Senior Managing Director TEL: 06 (6223) 8055 | |
Scheduled date for next regular general meeting of shareholders: | March 25, 2022 | ||||
Scheduled date for submission of periodic securities report: | March 28, 2022 | ||||
Scheduled date for start of dividend payment: | March 28, 2022 | ||||
Supplementary explanatory materials created for accounts? Yes/No: | No | ||||
Accounts briefing meeting held? | Yes/No: | Yes (for institutional investors and analysts) |
(Amounts are rounded down to the nearest million yen)
1. Consolidated results for fiscal year ended December 2021 (from January 1, 2021 to December 31, 2021)
(1) | Consolidated operating results | (% figures for the full fiscal year show the rate of increase (decrease) | |||||||||||
compared with the previous period) | |||||||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | ||||||||||
owners of parent | |||||||||||||
million yen | % | million yen | % | million yen | % | million yen | % | ||||||
Fiscal year ended | 79,017 | 2.2 | 10,381 | (14.9) | 9,099 | (18.5) | 5,961 | (22.2) | |||||
Dec. 2021 | |||||||||||||
Fiscal year ended | 77,308 | 7.2 | 12,202 | (5.5) | 11,164 | (5.5) | 7,663 | (6.0) | |||||
Dec. 2020 | |||||||||||||
Note: Comprehensive income | |||||||||||||
Fiscal year ended Dec. 2021: 5,970 million yen (-20.7%) Fiscal year ended Dec. 2020: 7,533 million yen (-10.4%) | |||||||||||||
Basic earnings per | Diluted earnings per | Return on equity | Return on assets | Operating margin | |||||||||
share | share | ||||||||||||
yen | yen | % | % | % | |||||||||
Fiscal year ended | 67.48 | 67.30 | 11.8 | 4.5 | 13.1 | ||||||||
Dec. 2021 | |||||||||||||
Fiscal year ended | 111.94 | 111.37 | 21.2 | 7.9 | 15.8 | ||||||||
Dec. 2020 | |||||||||||||
Reference: Share of profit (loss) of entities accounted for using equity method | |||||||||||||
Fiscal year ended Dec. 2021: 54 million yen | Fiscal year ended Dec. 2020: -109 million yen |
- Consolidated financial position
Total assets | Net assets | Equity ratio | Book value per share | ||
million yen | million yen | % | yen | ||
Fiscal year ended | 252,771 | 62,628 | 24.8 | 657.50 | |
Dec. 2021 | |||||
Fiscal year ended | 149,423 | 38,627 | 25.8 | 563.07 | |
Dec. 2020 | |||||
Reference: Equity | |||||
Fiscal year ended Dec. 2021: 62,780 million yen | Fiscal year ended Dec. 2020: 38,589 million yen |
- Consolidated cash flows
Net cash provided | Net cash provided by | Net cash provided by | Cash and cash | ||||||||||
by (used in) | (used in) investing | (used in) financing | equivalents at end of | ||||||||||
operating activities | activities | activities | period | ||||||||||
million yen | million yen | million yen | million yen | ||||||||||
Fiscal year ended | (10,810) | (29,721) | 50,293 | 33,559 | |||||||||
Dec. 2021 | |||||||||||||
Fiscal year ended | 119 | (9,732) | 11,007 | 23,798 | |||||||||
Dec. 2020 | |||||||||||||
2. Dividends | |||||||||||||
Annual dividend | Total dividend | Dividend | Dividend on | ||||||||||
End of first | End of second | End of third | Year-end | Total | amount | payout ratio | equity | ||||||
quarter | quarter | quarter | (Total) | (Consolidated) | (Consolidated) | ||||||||
yen | yen | yen | yen | yen | million yen | % | % | ||||||
Fiscal year ended | - | 0.00 | - | 38.00 | 38.00 | 2,645 | 33.9 | 7.2 | |||||
Dec. 2020 | |||||||||||||
Fiscal year ended | - | 0.00 | - | 38.00 | 38.00 | 3,669 | 56.3 | 6.2 | |||||
Dec. 2021 | |||||||||||||
Fiscal year ending | |||||||||||||
Dec. 2022 | - | 0.00 | - | 38.00 | 38.00 | - | |||||||
(Forecast) | |||||||||||||
- | 1 - |
3. Consolidated earnings forecast for fiscal year ending December 2022 (from January 1, 2022 to December 31, 2022)
Net sales | Operating income | Ordinary income | Profit attributable to | Basic earnings | ||||||
owners of parent | per share | |||||||||
million yen | % | million yen | % | million yen | % | million yen | % | yen | ||
First two quarters | 36,300 | 45.3 | 4,700 | 83.5 | 3,800 | 96.5 | 2,600 | 87.3 | 29.43 | |
Full fiscal year | 100,000 | 26.6 | 14,000 | 34.9 | 12,200 | 34.1 | 8,300 | 39.2 | 93.95 |
- Explanatory notes
- Changes in significant subsidiaries during fiscal year
(Changes in specified subsidiaries resulting in change in scope of consolidation): | None | |||||||
Newly included: | - companies (Company name) 、 | |||||||
Excluded: | - companies (Company name) | |||||||
(2) Changes in accounting policies, changes in accounting estimates, and restatement | ||||||||
1) | Changes in accounting policies due to amendment of accounting standards, etc.: | None | ||||||
2) | Changes in accounting policies other than 1): | None | ||||||
3) | Changes in accounting estimates: | None | ||||||
4) | Restatement: | None | ||||||
(3) Number of shares issued and outstanding (common shares) | ||||||||
1) | Number of shares issued and outstanding | Fiscal year | 98,580,887 | Fiscal year | 71,961,887 | |||
(including treasury shares) at end of fiscal | ended Dec. | ended Dec. | ||||||
shares | shares | |||||||
year | 2021 | 2020 | ||||||
2) | Number of treasury shares at end of fiscal | Fiscal year | 3,096,900 | Fiscal year | 3,428,400 | |||
ended Dec. | ended Dec. | |||||||
year | shares | shares | ||||||
2021 | 2020 | |||||||
Fiscal year | 88,346,828 | Fiscal year | 68,459,909 | |||||
3) | Average number of shares during fiscal year | ended Dec. | ended Dec. | |||||
shares | shares | |||||||
2021 | 2020 | |||||||
(Note) The number of treasury shares at end of fiscal year includes ES-CON JAPAN shares held in a share-based payment benefits trust for directors and a share-based payment benefits type ESOP trust (fiscal year ended December 2021: 851,000 shares in the share-based payment benefits trust for directors and 225,700 shares in the share-based payment benefits type ESOP trust). In the calculation of the average number of shares during fiscal year, the treasury shares to be subtracted in that calculation includes ES-CON JAPAN shares held in the share-based payment benefits trust for directors and the share-based payment benefits type ESOP trust (fiscal year ended December 2021: 1,078,783 shares).
(Reference) Non-consolidated results
1. Non-consolidated results for fiscal year ended December 2021 (from January 1, 2021 to December 31, 2021)
- Non-consolidatedoperating results
(% figures show the rate of increase (decrease) compared with the previous fiscal year)
Net sales | Operating income | Ordinary income | Profit | |||||||
million yen | % | million yen | % | million yen | % | million yen | % | |||
Fiscal year ended | 73,407 | (0.7) | 10,213 | (14.7) | 9,312 | (16.3) | 6,434 | (16.6) | ||
Dec. 2021 | ||||||||||
Fiscal year ended | 73,903 | 5.4 | 11,980 | (5.3) | 11,121 | (4.1) | 7,718 | (4.2) | ||
Dec. 2020 | ||||||||||
Basic earnings per share | Diluted earnings per share | |||||||||
yen | yen | |||||||||
Fiscal year ended | 72.83 | 72.64 | ||||||||
Dec. 2021 | ||||||||||
Fiscal year ended | 112.75 | 112.18 | ||||||||
Dec. 2020 | ||||||||||
- Non-consolidatedfinancial position
Total assets | Net assets | Equity ratio | Book value per share | ||
million yen | million yen | % | yen | ||
Fiscal year ended | 233,860 | 63,206 | 27.0 | 661.95 | |
Dec. 2021 | |||||
Fiscal year ended | 139,940 | 38,527 | 27.5 | 562.15 | |
Dec. 2020 | |||||
Reference: Equity | |||||
Fiscal year ended Dec. 2021: 63,205 million yen | Fiscal year ended Dec. 2020: 38,526 million yen |
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Presentation regarding implementation of audit procedures
This summary of accounts is not subject to the audit procedures pursuant to the Financial Instruments and Exchange Act. - Explanation regarding appropriate use of earnings forecasts, and other notes
The earnings outlook and other forward-looking statements contained in this document are based on information currently available to and certain assumptions that are thought to be reasonable by ES-CON JAPAN. Accordingly, actual business performance and other results may differ materially due to various reasons. For the conditions forming the assumptions on which earnings forecasts are based and explanatory notes for use of earnings forecasts, etc., please see "Attachment 1; 1. Overview of Operating Results, Etc.; (1) Analysis of Operating Results" on page 5.
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○ Contents of Attachment | |||
(2) | Analysis of Financial Position.................................................................................................................................... | 14 | |
(3) | Basic Policy on Distribution of Profit, and Dividend for the Fiscal Year Under Review and Next Fiscal Year ........... | 15 | |
(4) | Business Risks .......................................................................................................................................................... | 15 | |
2. | Management Policy ........................................................................................................................................................ | 18 | |
(1) | Basic Policy on Corporate Management ................................................................................................................... | 18 | |
(2) | Medium- to Long-Term Corporate Management Strategy and Management Indicator Targets ................................ | 18 | |
(3) | Business and Financial Issues to Be Addressed on a Priority Basis ........................................................................ | 18 | |
3. Basic Policy on Selection of Accounting Standard.......................................................................................................... | 20 | ||
4. | Consolidated Financial Statements ................................................................................................................................ | 21 | |
(1) | Consolidated Balance Sheet ..................................................................................................................................... | 21 | |
(2) | Consolidated Statement of Income and Consolidated Statement of Comprehensive Income.................................. | 23 | |
(Consolidated Statement of Income) ............................................................................................................................. | 23 | ||
(Consolidated Statement of Comprehensive Income)................................................................................................... | 24 | ||
(3) | Consolidated Statement of Changes in Equity.......................................................................................................... | 25 | |
(4) | Consolidated Statement of Cash Flows .................................................................................................................... | 27 | |
(5) | Notes to Consolidated Financial Statements ............................................................................................................ | 29 | |
(Notes on Going Concern Assumption) ......................................................................................................................... | 29 | ||
(Changes in Accounting Policies) .................................................................................................................................. | 29 | ||
(Additional Information) ................................................................................................................................................. | 29 | ||
(Segment Information, Etc.) .......................................................................................................................................... | 30 | ||
5. | Other ............................................................................................................................................................................... | 33 | |
(1) | Status of Contracts and Sales................................................................................................................................... | 33 |
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Attachment 1
1. Overview of Operating Results, Etc.
- Analysis of Operating Results
In the fiscal year under review (fiscal year ended December 2021), despite concerns over the sixth wave of COVID- 19, the Japanese economy saw progress towards the normalization of social and economic activities such as the recovery trend of consumer spending. Due to concerns over the spread of COVID-19 variants in Japan and abroad, careful attention should be paid to the fluctuation of the Japanese economy and overseas economies through supply chains as well as the financial and capital markets and the impact of currency movement.
In the real estate industry in which the ES-CON JAPAN Group operates, the real estate market remained strong as the policies and measures related to tackling COVID-19 and monetary easing measures continued. However, depending on the status of the spread of infection by COVID-19 variants, it is extremely difficult to forecast the future trend of real estate market when assuming that corporate performance and consumer spending trends will change, and it is necessary to carefully develop real estate business.
Despite such business environment in which the future outlook is extremely uncertain, we formulated "IDEAL to REAL 2023," the fourth medium-term management plan, for the three-year period from the fiscal year ended December 2021 through the fiscal year ending December 2023, and will promote businesses by setting "Establishing business foundations able to withstand unexpected changes in economic conditions" and "Simultaneously changing the revenue structure and expanding business domains" as management strategies based on the theme of "Transformation and Rapid Progress."
We implemented a capital increase through third-party allotment with Chubu Electric Power Co., Inc. (hereinafter "Chubu Electric Power") as the allotee on April 5, 2021, and ES-CON JAPAN became a consolidated subsidiary of Chubu Electric Power. As a result, we dramatically increased our corporate credit standing, acquired credit ratings of "A-" (stable) from Rating and Investment Information, Inc. and "A" (stable) from Japan Credit Rating Agency, Ltd., and established a stable fundraising base.
Against the backdrop of such creditworthiness, we acquired all shares of Picasso Co., Ltd., which owns numerous outstanding revenue-generating properties, and its seven group companies in October 2021 in order to rapidly move ahead with the strategy of "changing the revenue structure" = "securing stable leasing income." Furthermore, we sought to strengthen the asset management business in the ES-CON JAPAN Group as well as concluded a contract on the acquisition of the entire share of FUEL Inc., whose businesses include managing online funds and providing computer systems to crowdfunding businesses in accordance with the Act on Specified Joint Real Estate Ventures of Japan, and made it a subsidiary on January 21, 2022, with an aim to significantly contribute to the expansion of the ES-CON JAPAN Group's business domain as preparation for future participation in real estate financial business.
As for the business performance for the fiscal year under review, although sales increased and profits decreased year on year, the above "change in revenue structure" was realized. In the next fiscal year and the fiscal year ending December 2023, we will proactively implement business development with the intent to improve performance and with an aim to achieve record-high profits, as a period of "Rapid Progress."
The purchase of sites scheduled to be sold in fiscal 2022 and fiscal 2023 are in progress at a pace exceeding the plan.
The business performance for the fiscal year under review, which is the first fiscal year of the fourth medium-term management plan, was generally as planned with net sales standing at 79,017 million yen (down 1.2% from initial plan) and operating income at 10,381 million yen (down 3.9% from initial plan), but ordinary income was 9,099 million yen (down 3.2% from initial plan) as a result of the recording of 516 million yen of segment loss in the real estate planning agency and consulting business due to the burden of prior expenditure of advertising expenses in the columbarium sales business. Management targets were almost as planned with ROE standing at 11.8%, ROIC at 3.2%, equity ratio at 24.8%, net assets at 62.6 billion yen, share of profits from leasing at 21.2%, and share of long- term earnings from real estate at 20.6%.
In addition, due to the acquisition of many outstanding revenue-generating properties after making Picasso Co., Ltd. and its seven group companies subsidiaries, investment plans in the medium-term management plan are in progress at a pace exceeding the plan.
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ES-CON Japan Ltd. published this content on 01 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2022 05:31:03 UTC.