Prospect Co., Ltd: Closing Announcement of Fiscal Year Ended March 31, 2018 [Japanese Standards] (Consolidated)

LONDON, May 15, 2018 /PRNewswire/ —

Overview of Business Results, Etc.

(1) Overview of Business Results during the Period

The Japanese economy during the current consolidated fiscal year continued along a moderate recovery track as a whole as employment and income continued to improve and also partly due to the effects from various policy measures, while there remain concerns with regard to uncertainty in overseas economic conditions and the impact from fluctuations in financial and capital markets.

In the condominium sales market in the Tokyo Metropolitan Area, while low interest rate loans and housing purchase support mechanisms are maintained, sales prices continue to rise due to difficulties in acquiring available land for condominiums and construction costs remain high, leaving the outlook uncertain.

The Company Group has promoted the group slogan: “Challenge & Ambition,” which sets out the philosophy of sharing a future vision from a long-term perspective, challenging creation and maximization of new value, and pursuit of strategies that brings benefits to all stakeholders.

Upholding such a philosophy, while expanding our business fields to custom-built homes, investment advisory business and construction business, etc., in order to break our dependence on a single business approach of condominium sales which is our core business, we have strived to enhance the robustness of the business portfolio of the Company Group by promoting the overseas real estate business and renewable energy business, including participating in joint investment ventures related to clean energy, specifically, photovoltaic power generation and construction of a biomass fuel manufacturing plant, etc.

Further, in this year of the 80th anniversary of our foundation, we successfully made the Prospect Japan Fund Limited (hereinafter “PJF”) which is listed on the London Stock Exchange a subsidiary of the Company. This has reinforced our financial foundation exponentially as we aim for further growth in the future.

As a result, sales for the current consolidated fiscal year were 11,927 million yen (14,143 million yen in the previous consolidated fiscal year), operating loss was 1,354 million yen (43 million yen in the previous consolidated fiscal year), ordinary loss was 909 million yen (ordinary profit of 516 million yen in the previous consolidated fiscal year), and net profit attributable to owners of the parent was 1,720 million yen (488 million yen in the previous consolidated fiscal year).

In this regard, in the Consolidated Cumulative 2nd Quarter, in connection with PJF becoming a subsidiary, we recorded profit on negative goodwill of 2,420 million yen in extraordinary profit.

Link to full earnings report: http://www.prospectjapan.co.jp/release/index.html

SOURCE Prospect Co., Ltd