This document has been translated from a part of the Japanese original for the convenience of non-Japanese shareholders. In the event of any discrepancy between this translation and the Japanese original, the original shall prevail.
May 14, 2021
Consolidated Financial Results | |
for the Fiscal Year Ended March 31, 2021 | |
J-GAAP> | |
Company name: Pressance Corporation Co., Ltd. | |
Listing: | First Section of the Tokyo Stock Exchange |
Section code: | 3254 |
URL: | https://www.pressance.co.jp/ |
Representative: | Yutaka Doi, President and Representative Director |
Contact: | Kyosuke Ichikawa, Executive Officer, Deputy General Manager of Management Division, |
and General Manager of Accounting Department | |
TEL: +81-6-4793-1650 |
Scheduled date of ordinary general meeting of shareholders: | June 25, 2021 |
Scheduled date of start of dividend payment: | June 28, 2021 |
Scheduled date of filing of annual securities report: | June 28, 2021 |
Preparation of supplementary material on financial results: | Yes |
Holding of financial results presentation meeting: | None |
(Amounts less than one million yen have been omitted.) |
1. Consolidated operating results for the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
(1) Consolidated operating results | (Percentages indicate year-on-year changes.) | ||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||||||||||
owners of parent | |||||||||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||
Fiscal year ended | |||||||||||||||||||
March 31, 2021 | 243,813 | 8.8 | 29,762 | (8.7) | 29,079 | (9.1) | 20,533 | (6.2) | |||||||||||
Fiscal year ended | |||||||||||||||||||
March 31, 2020 | 224,011 | 39.5 | 32,609 | 20.2 | 31,985 | 20.6 | 21,892 | 19.7 | |||||||||||
Notes: Comprehensive income | Fiscal year ended March 31, 2021 | 19,825 million yen [(9.1) %] | |||||||||||||||||
Fiscal year ended March 31, 2020 | 21,801 million yen [19.1%] | ||||||||||||||||||
Basic earnings per | Diluted earnings | Return on equity | Ratio of ordinary | Ratio of operating | |||||||||||||||
share | per share | profit to total | profit to net sales | ||||||||||||||||
assets | |||||||||||||||||||
Yen | Yen | % | % | % | |||||||||||||||
Fiscal year ended | |||||||||||||||||||
March 31, 2021 | 315.32 | 315.29 | 16.1 | 10.0 | 12.2 | ||||||||||||||
Fiscal year ended | |||||||||||||||||||
March 31, 2020 | 347.45 | 340.18 | 21.1 | 10.4 | 14.6 | ||||||||||||||
Reference: Share of profit (loss) of entities accounted for using equity method | |||||||||||||||||||
Fiscal year ended March 31, 2021 | (373) million yen | ||||||||||||||||||
Fiscal year ended March 31, 2020 | (0) million yen |
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Millions of yen | Millions of yen | % | Yen | |
Fiscal year ended | ||||
March 31, 2021 | 268,762 | 140,132 | 51.8 | 2,049.96 |
Fiscal year ended | ||||
March 31, 2020 | 310,779 | 116,690 | 37.1 | 1,791.63 |
Reference: Equity | ||||
Fiscal year ended March 31, 2021 | 139,353 million yen | |||
Fiscal year ended March 31, 2020 | 115,253 million yen |
(3) Consolidated cash flows | ||||
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents at end of | ||||
operating activities | investing activities | financing activities | ||
period | ||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Fiscal year ended | ||||
March 31, 2021 | 98,278 | (141) | (52,112) | 87,709 |
Fiscal year ended | ||||
March 31, 2020 | 23,180 | (1,837) | (19,059) | 41,684 |
2. | Dividends | ||||||||
Annual dividends per share | Total cash | Ratio of | |||||||
1st quarter- | 2nd | 3rd quarter- | Annual | dividends | Payout ratio | dividends to | |||
Year-end | (Consolidated) | net assets | |||||||
end | quarter-end | end | total | (Full-year) | (Consolidated) | ||||
Yen | Yen | Yen | Yen | Yen | Millions | % | % | ||
of yen | |||||||||
Fiscal year ended | |||||||||
March 31, 2020 | - | 26.00 | - | 13.00 | 39.00 | 2,465 | 11.2 | 2.4 | |
Fiscal year ended | |||||||||
March 31, 2021 | - | 13.00 | - | 16.00 | 29.00 | 1,934 | 9.2 | 1.5 | |
Fiscal year ending | |||||||||
September 30, 2021 (Forecast) | - | - | - | 16.00 | 16.00 | 14.0 |
(Note) As stated in the "Notice Regarding Changes in Fiscal Year (Fiscal year-end)" disclosed on the release date of this document, subject to approval at the Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2021, we are planning to change the fiscal year-end from March 31 to September 30.
3. Consolidated results forecasts for the fiscal year ending September 30, 2021 (from April 1, 2021 to September 30, 2021)
(Percentages indicate year-on-year changes.) | |||||||||||||
Profit attributable to | Basic | ||||||||||||
Net sales | Operating profit | Ordinary profit | earnings per | ||||||||||
owners of parent | |||||||||||||
share | |||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||||
Full year | 95,203 | ― | 11,883 | ― | 11,415 | 7,791 | ― | 114.62 |
(Note) As stated in the "Notice Regarding Changes in Fiscal Year (Fiscal year-end)" disclosed on the release date of this document, subject to approval at the Ordinary General Meeting of Shareholders scheduled to be held on June 25, 2021, we are planning to change the fiscal year-end from March 31 to September 30. For this reason, year-on-year change (percentage) is not stated.
- Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
- Changes in accounting policies, changes in accounting estimates, and restatement after error corrections
- Changes in accounting policies due to amendments to accounting standards and other regulations: None
- Changes in accounting policies due to other reasons than a. above: None
- Changes in accounting estimates: None
- Restatement after error corrections: None
- Number of issued shares (common stock)
- Number of issued shares at end of period (including treasury shares)
Fiscal year ended March 31, 2021 | 68,845,511 shares | |
Fiscal year ended March 31, 2020 | 65,198,961 shares | |
b. Number of treasury shares at end of period | ||
Fiscal year ended March 31, 2021 | 866,984 shares | |
Fiscal year ended March 31, 2020 | 870,054 shares |
c. Average number of shares during the period
Fiscal year ended March 31, 2021 | 65,118,736 shares |
Fiscal year ended March 31, 2020 | 63,008,052 shares |
*Notes |
Due to the introduction of the share-based payment type ESOP, a certain number of shares of the Company held in the trust account are included in the "Number of treasury shares at the end of period" (309,860 shares for the fiscal year ended March 31, 2021 and 313,320 shares for the fiscal year ended March 31, 2020). Also, a certain number of shares held in the trust account are included in the treasury shares that were deducted in the calculation of the "Average number of outstanding shares during the period" (310,865 shares for the fiscal year ended March 31, 2021 and 313,706 shares for the fiscal year ended March 31, 2020).
- Financial results reports do not require auditing.
- Explanations about the proper use of financial forecasts and other important notes(Caution Concerning Forward-looking Statements)
Forward-looking statements in this document, including the results forecasts, are based on the information available to the Company at the time of disclosure and on certain assumptions deemed to be practicable by the Company. These statements do not purport that the Company pledges or ensures to achieve such statements. Actual business and other results may differ substantially due to various factors. For preconditions to the assumptions and other important notes concerning the financial forecasts, please refer to "1. Business Results and Financial Position (4) Future Outlook" on page 2 of the attachment.
(Method of Obtaining Supplementary Materials for Quarterly Financial Results)
Supplementary materials on financial results are posted on TDnet on the release date of this document (Japanese version only).
1. Business Results and Financial Position
(1) Business Results
During the consolidated fiscal year ended March 31, 2021, the Japanese economy and the business environment remained challenging due to the impact of the COVID-19 pandemic. Although there are some signs of a pickup, we must pay close attention to the impact of infection trends on the economy in and outside Japan and fluctuations in the financial and capital markets, etc.
In the real estate industry to which the Group belongs, in addition to the impact of the COVID-19 pandemic, land costs rose in cities and construction costs remain elevated. Although this and other factors remain causes for concern, the interest rates on housing loans remain low while the Japanese government's ongoing measures to help homebuyers, such as a mortgage tax breaks, are still on track, contributing to a stable economy. The demand for condominiums in the center of cities, which is our main supply area, was solid as more people or households tended to move seeking the convenience of urban living.
In these business circumstances, Pressance Corporation Co, Ltd. (the "Company") has focused on supplying condominiums in selected places in the central part of major cities in the Kinki, Tokai/Chukyo, and Tokyo metropolitan areas, and other core regions including Okinawa, which are our major sales areas.
Under such business conditions, the Company posted the following consolidated performance for the fiscal year ended March 31, 2021. Net sales amounted to 243,813 million yen (up 8.8% year on year), operating profit amounted to 29,762 million yen (down 8.7% year on year), ordinary profits amounted to 29,079 million yen (down 9.1% year on year) and profit attributable to owners of parent amounted to 20,533 million yen (down 6.2% year on year).
An overview of operating results by product segment is as follows:
Real Estate Sale Business
In the real estate sales business, Pressance Loger Kashihara-Jingumae (114 units), a family-type condominium in the Pressance Loger series, and Pressance Shin-OSAKA J's (220 units), a Pressance series studio condominium, have performed favorably. With the result of business operation above, the sales of studio condominiums amounted to 99,860 million yen (5,948 units), sales of family-type condominiums amounted to 99,681 million yen (2,695 units), sales of hotel properties amounted to 11,620 million yen (439 units), sales of other types of housing amounted to 6,904 million yen (348 units), sales of other real estate amounted to 16,030 million yen, and business accompanying real estate sales amounted to 1,516 million yen. Total sales of the real estate sales business posted 235,614 million yen (up 8.7% year on year) and operating profit amounted to 28,730 million yen (down 12.4% year on year).
Starting from the fiscal year ended March 31, 2021, "sales of condominium buildings" is included in "sales of studio condominiums."
Other Business
The rent revenue with a high occupancy rate of the owned real estate for rent has remained high. The sales in other business amounted to 8,199 million yen (up 11.9% year on year) and operating profit came to 2,321 million yen (up 59.4% year on year).
As we announced in "Notice Regarding Outcome of the Tender Offer for Our Share Certificates by Open House Co., Ltd. and Changes in Our Parent Company and Other Affiliated Companies" released on January 15, 2021, and "Notice Regarding Completion of Payment for the Capital Increase through Third- Party Allotment" released on January 19, 2021, the tender offer for the Company's common stock conducted by Open House Co., Ltd. and the issuance of new shares of common stock through the third- party allotment to Open House have completed. As of January 20, 2021, Open House had acquired 44,011,372 shares of the Company's common stock and newly became the Company's parent company. Going forward, we will deepen our cooperation with the parent company and strive to create synergy.
(2) Analysis on Financial Position
Current Assets
Total current assets as of the end of this consolidated reporting fiscal year decreased by 47,026 million yen and amounted to 249,040 million yen (down 15.9% year on year). This was mainly due to a decrease in inventory of 94,498 million yen, while there was an increase in cash and deposits of 46,025 million yen.
1
Non-current assets
Total non-current assets as of the end of this consolidated reporting fiscal year amounted to 19,722 million yen (up 34.0% year on year), increased by 5,009 million yen. This was due mainly to an increase in real estate for rent by 6,745 million yen following the transfer of real estate for sale to self-owned real estate, which offset a 2,431 million yen decrease in long-term loans receivable from subsidiaries and associates as they are now due within one year.
Liabilities
Total liabilities as of the end of this consolidated reporting fiscal year amounted to 128,629 million yen (down 33.7% year on year), decreased by 65,458 million yen. This was mainly due to a 55,538 million yen decrease in loans payable to financial institutions, a 5,166 million yen decrease in advances received due to the delivery of condominiums, and a 2,281 million yen decrease in electronically recorded obligations-operating due to the arrival of the payment due date.
Net Assets
Total net assets as of the end of this consolidated reporting fiscal year amounted to 140,132 million yen (up 20.1% year on year), increased by 23,441 million yen. This was principally due to the increase in capital stock and legal capital surplus by 2,589 million yen each following the capital increase through third-party allotment as well as the increase in retained earnings by 18,850 million yen because of the posting of profit attributable to owners of parent.
(3) Analysis on Cash Flows
Cash and cash equivalents as of the end of the fiscal year ended March 31, 2021 totaled 87,709 million yen (up 110.4% year on year), increased by 46,025 million yen.
The state of and factors in each cash flow of the fiscal year are as follows:
Cash Flows from Operating Activities
Net cash provided by operating activities came to 98,278 million yen (Compared with 23,180 million yen provided in the previous fiscal year).
This was mainly due to cash inflow resulting from a decrease in inventories by 86,909 million yen following the delivery of condominiums and the posting of 29,344 million yen in profit before income taxes, while there were cash outflows as a result of a payment of income tax of 11,076 million yen, a decrease in advances received by 5,043 million yen following the delivery of condominiums, and a decrease in notes and accounts payable-trade by 2,593 million yen reflecting an increase in the settlement of electronically recorded obligations-operating, and other factors.
Cash Flows from Investment Activities
Net cash used in investment activities came to 141 million yen (Compared with 1,837 million yen used in the previous fiscal year).
This was principally due to the cash outflows resulting from loans to subsidiaries and associates of 865 million yen and acquisition of non-current assets of 163 million yen, while there were inflows that resulted from sales of non-current assets of 889 million yen.
Cash Flows from Financing Activities
Net cash used in financing activities came to 52,112 million yen (Compared with 19,059 million yen used in the same period of the previous fiscal year).
The main reason for this was cash outflow resulting from net decrease in loans payable to bank by 55,538 million yen.
(4) Future Outlook
Although it is necessary to pay attention to the impacts of the COVID-19 pandemic, we expect the market to remain firm in the real estate industry, which we belong to, supported by the stable housing demand and other factors that stimulate willingness to buy, including the Japanese government's ongoing measures to support homebuyers. In the condominium market, we expect that the population or the number of households in city centers will increase and that the demand in our main supply area will remain firm.
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PRESSANCE Corporation published this content on 24 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2021 08:32:00 UTC.