Escon Japan

About Us

ES-CON Japan is a life developer that builds the settings of people’s futures, bringing ideals into reality and the future of Japan to life.

Medium-Term Management Plan

ES-CON Japan Group’s 2nd Medium-Term Management Plan: IDEAL to REAL 2019 (FY2017-2019)

Our Group is currently pursuing our second medium-term management plan, “IDEAL to REAL 2019,” over the three-year period from fiscal 2017 to 2019 to take our business to the next level.

Basic Policy

IDEAL to REAL 2019

Always putting the customer first, we will continue to grow and evolve as an essential company to society by fulfilling our role as a life developer developing the very lives of people.

Corporate Strategy

1.

Maximize corporate value and shareholder returns

2.

Establish a firm management foundation that can weather any economic climate

3.

Diversify business to achieve steady, continuous growth

4.

Focus on building a firm business foundation (quality) rather than expanding in size (quantity)

5.

Fulfill our corporate social responsibility by achieving returns not only for shareholders but all stakeholders, including society

Growth Action Plan

1.

Continue to reinforce core businesses

2.

Increase corporate value by diversifying multiple core businesses

3.

Ensure steady, long-term stock income by actively expanding real estate leasing

4.

Expand real estate sale by steadily supplying quality properties as the main sponsor of a listed REIT

5.

Expand the breadth and depth of our real estate development capabilities by enhancing real estate operation

6.

Enhance the corporate brand

7.

Create new value and achieve sustainable growth through ESG initiatives

Plan Details

Management Targets

FY2016 (actual) FY2017 (actual) FY2019 (planned)
Equity ratio 23.6% 24.8% 22.6%
ROE 25.1% 28.1% 25.9%
ROA 6.0% 6.8% 6.1%
ROIC 6.5% 8.4% 6.9%
EPS 58.76 yen 81.77 yen 115.1 yen

*ROIC = After-tax operating income ÷ (shareholder equity + interest-bearing liabilities)

Dividend Policy

In order to ensure steady returns for shareholders, we have introduced a progressive dividend policy for dividends per share (DPS) during our second medium-term management plan period (FY2017-2019). With the previous fiscal year’s DPS as the minimum, it will either remain the same or increase based on performance (in principle, it will not decrease). By introducing this progressive dividend policy and its clear principle of not decreasing the dividend, only maintaining or increasing it, we are ensuring steady dividends, heightening the transparency of future dividend levels, strengthening shareholder returns, and sustainably increasing corporate value.

Basic Policy on Profit Distribution and Dividends for Upcoming Periods

Considering returning profits to shareholders to be one of the most important management issues, our basic policy is to ensure steady, continuous returns in line with company growth based on comprehensive consideration of performance, internal reserves, payout rate, etc. Regarding the year-end dividend for fiscal 2018, we increased the DPS from the initial 20 yen to 32 yen, achieving a payout rate of 30.2%. In order to ensure steady returns for shareholders, we have introduced a progressive dividend policy for dividends per share (DPS) during our second medium-term management plan period (FY2017-2019). With the previous fiscal year’s DPS as the minimum, it will either remain the same or increase based on performance (in principle, it will not decrease). By introducing this progressive dividend policy and its clear principle of not decreasing the dividend, only maintaining or increasing it, we are ensuring steady dividends, heightening the transparency of future dividend levels, strengthening shareholder returns, and sustainably increasing corporate value. The planned fiscal 2019 DPS is 35 yen.

(Unit: yen)

Dividend FY2016 FY2017 FY2018 FY2019
(Actual) (Actual) (Actual) (Planned)
15 yen 18 yen 32 yen 35 yen

Performance Targets

(Unit: Millions of yen)

FY2016 FY2017 FY2018 FY2019
(Actual) (Actual) (Planned) (Planned)
Net Sales 34,347 44,724 53,900 74,800
Real Estate Sale 30,687 41,168 50,270 70,250
Real Estate Leasing 3,594 3,459 3,270 4,300
Real Estate Planning,
Brokerage, and Consultation
65 96 360 250
Operating Income 4,680 7,042 11,500 12,500
Ordinary Income 3,575 5,988 10,450 11,200