Daibiru : Financial Highlights for the 1st Quarter Cumulative of Fiscal 2021

Financial Highlights for the 1st Quarter Cumulative of Fiscal 2021

(Apr. 1, 2021- June 30, 2021)

DAIBIRU CORPORATION

(Unaudited Translation of 'Kessan Tanshin,' Provided for Reference Only)

July 29, 2021

Name of the Company: DAIBIRU CORPORATION

Listing of Stock:	First Section of Tokyo Stock Exchange
Securities Code:	8806
URL:	https://www.daibiru.co.jp/english/
Representative:	Toshiyuki Sonobe	Representative Director, President Chief Executive Officer
Inquiries:	Kenichi Sekiguchi	Executive Officer, General Manager of the Finance & Accounting Department

Scheduled Date of Quarterly Report: Aug. 12, 2021

Scheduled Date of Commencing Dividend Payments: -

Availability of Supplementary Briefing Material on Quarterly Financial Results: No

Schedule of Analyst Meeting: No

(Figures are rounded down to the nearest million yen)

1. Consolidated Results for 1Q Fiscal 2021 (April 1, 2021 to June 30, 2021)

(1) Consolidated Results								(% indicates changes from the previous corresponding period.)
		Operating revenue		Operating profit		Ordinary profit			Profit attributable to
						owners of parent
		Million yen			%		Million yen		%		Million yen	%			Million yen	%
1Q Fiscal 2021		10,518			(0.3)		3,248		(7.7)		3,325	(7.1)		2,421	(1.9)
1Q Fiscal 2020		10,547			0.5		3,520		14.9			3,581	14.5		2,468	16.5
(Note) Comprehensive income:	1Q Fiscal 2021:	¥		3,157 million	[	(0.8) %]
		1Q Fiscal 2020:	¥		3,182 million	[	41.8%]
		Basic earnings		Diluted earnings
		per share				per share
					Yen					Yen
1Q Fiscal 2021					21.12					-
1Q Fiscal 2020					21.20					-
(2) Consolidated Financial Position
		Total assets			Net assets	Capital adequacy ratio
As of			Million yen				Million yen				%
June 30, 2021		387,075					169,185				43.2
March 31, 2021		393,928					167,346				42.0
(Reference) Equity: As of	June 30, 2021:	¥	167,171 million
As of	March 31, 2021:	¥	165,367 million
2. Dividends
							Annual dividends
		1Q		2Q		3Q			4Q	Total
		Yen				Yen		Yen				Yen				Yen
Fiscal 2020		-		10.50			-				11.50		22.00
Fiscal 2021		-
Fiscal 2021 (Forecast)					10.50			-				10.50		21.00
(Note) Revision to the forecast	for dividends	announced most	recently:	No

3. Forecast of Consolidated Financial Results for Fiscal 2021 (Apr. 1, 2021 to Mar. 31, 2022)

(% indicates changes from the previous corresponding period.)

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to	Basic earnings
	owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Fiscal 2021	41,500	(3.3)	10,500	(13.2)	10,000	(14.3)	7,000	(17.0)	61.05

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:
(1)	Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting
	in changes in scope of consolidation):	No
	New	-	(Company name:	)
	Exclusion:	-	(Company name:	)
(2)	Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

	June 30, 2021:	115,051,049	shares
	March 31, 2021:	115,051,049	shares
2)	Total number of treasury shares at the end of the period:
	June 30, 2021:	397,328	shares
	March 31, 2021:	397,284	shares
3)	Average number of shares during the period:
	1Q Fiscal 2021:	114,653,732	shares
	1Q Fiscal 2020:	116,425,934	shares

• Financial results are not subject to auditing.
• Explanation of the Proper Use of Performance Forecast and Other Notes

Information described in this document, such as projections, was prepared based on available information at the time of the release

of this document and certain assumptions that the Company judged as rational. Actual results may be significantly different due to

various factors. For the notes regarding the assumed conditions for the financial result forecast and the usage of the forecast, please

refer to "(3) Explanation on the Forward-looking Information such as Forecast of Consolidated Results" on page 3 of Attached

Reference.

Table of Contents of Attached Reference
1. Qualitative Information on Quarterly Financial Results....................................................................................................	2
(1)	Explanation on Results of Operations..........................................................................................................................	2
(2)	Explanation on Financial Position................................................................................................................................	3
(3)	Explanation on the Forward-looking Information such as Forecast of Consolidated Results.....................................	3
2. Quarterly Consolidated Financial Statements and Main Notes.........................................................................................	4
(1)	Quarterly Consolidated Balance Sheets.......................................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income..............................................	6
	Quarterly Consolidated Statements of Income.............................................................................................................	6
	Quarterly Consolidated Statements of Comprehensive Income...................................................................................	7
(3)	Notes to Quarterly Consolidated Financial Statements................................................................................................	8
(Going Concern Assumption)........................................................................................................................................	8
(Significant Changes in Shareholder's Equity)..............................................................................................................	8
(Changes in Accounting Policies)..................................................................................................................................	8
(Segment Information)...................................................................................................................................................	9

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1.Qualitative Information on Quarterly Financial Results

(1) Explanation on Results of Operations

In the three months ended June 30, 2021, the Japanese economy saw many corporate activities and consumption trends impacted, and any recovery coming to a standstill by the continued spread of novel coronavirus infection (COVID-19). With the implementation of measures to prevent the spread of COVID-19 and the promotion of vaccinations, the various political measures brought about some positive effects and the global economy improved. However, while recovery was anticipated, the prospects of the economy remained uncertain as it was still not possible to predict when COVID-19 would be contained.

For the office leasing segment, in response to COVID-19, the popularization of new ways of working, such as teleworking and online meetings, has continued, and momentum has grown for companies to review their use of offices. Vacancy rates of office buildings in the central business districts (CBD) of Tokyo and Osaka increased, and rent rates are trending weaker.

Amid such an environment, putting customers'safety and health first, the Daibiru Group continued to promote activities that improve building management quality while implementing finely-tuned measures including countermeasures against COVID-19, in an effort to differentiate Daibiru properties from competitors'buildings. By offering tenant services from a customer's perspective, the Group also sought to increase operating revenue by maintaining high occupancy rates while optimizing rent rates. On the other hand, the Group continued to defer or reduce rents for some commercial tenants whose business activities were significantly affected by COVID-19.

With regard to operating results in the three months ended June 30, 2021, operating revenue decreased ¥29 million, or 0.3% year on year to ¥10,518 million, and operating profit decreased ¥272 million, or 7.7%, year on year to ¥3,248 million.

As for non-operating income and expenses, ordinary profit decreased ¥255 million, or 7.1%, year on year to ¥3,325 million, due to a decrease in operating profit, despite a decrease in interest expenses.

With regard to extraordinary income and losses, for the three months ended June 30, 2021, gain on sales of investment securities of ¥280 million was recorded under extraordinary income, and ¥73 million was recorded for loss on building reconstruction and loss on retirement of non-current assets under extraordinary losses. On the other hand, in the same period of the previous fiscal year, loss on building reconstruction of ¥22 million was recorded under extraordinary income and losses.

As a result, profit attributable to owners of parent decreased ¥46 million, or 1.9%, year on year to ¥2,421 million.

Operating results by segment were as follows.

1. Leasing
   In this segment, which accounts for 77.9% of consolidated operating revenue in the three months ended June 30, 2021, operating

revenue decreased ¥286 million, or 3.4%, year on year to ¥8,192 million due mainly to decreased revenue attributable to reconstructed buildings. In terms of expenses, operating expenses increased due primarily to increases in repair expenses and management commissions, and operating profit decreased ¥300 million, or 7.9%, year on year to ¥3,489 million. While operating revenue decreased ¥49 million as a result of the application of the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020; hereinafter referred to as the "Revenue Recognition Accounting Standard"), etc., this had no impact on operating profit.

1. Facility Management
   In this segment, which accounts for 19.2% of consolidated operating revenue, operating revenue increased ¥25 million, or 1.3%,

year on year to ¥2,021 million due to contributions mainly from Nowatec Co., Ltd., which became a subsidiary in the previous fiscal year, and operating profit increased ¥37 million, or 31.1%, year on year to ¥156 million. While operating revenue decreased ¥33 million as a result of the application of the Revenue Recognition Accounting Standard, this had no impact on operating profit.

1. Other Businesses
   In this segment, which accounts for 2.9% of consolidated operating revenue, operating revenue increased ¥232 million, or

325.1%, year on year to ¥304 million due mainly to an increase in construction subcontracting values, and operating profit increased ¥12 million, or 48.7%, year on year to ¥38 million.

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(2) Explanation on Financial Position

Total assets at the end of the first quarter of the current fiscal year were ¥387,075 million, a decrease of ¥6,852 million from the end of the previous fiscal year. Current assets decreased ¥6,116 million from the end of the previous fiscal year to ¥15,727 million. This was mainly due to a decrease in cash and deposits. Non-current assets decreased ¥736 million from the end of the previous fiscal year to ¥371,347 million. This was mainly due to decreases in buildings and structures resulting from depreciation, etc. and in investment securities associated with falls in stock prices.

Liabilities at the end of the first quarter of the current fiscal year were ¥217,889 million, a decrease of ¥8,692 million from the end of the previous fiscal year. Current liabilities decreased ¥2,147 million from the end of the previous fiscal year to ¥25,478 million. This was mainly due to a net decrease primarily resulting from decreases in current portion of long-term borrowings and income taxes payable and an increase in current portion of bonds payable. Non-current liabilities decreased ¥6,544 million from the end of the previous fiscal year to ¥192,411 million. This was mainly due to a decrease in bonds payable. Total interest bearing debt decreased ¥5,894 million from the end of the previous fiscal year to ¥160,513 million.

Net assets at the end of the first quarter of the current fiscal year increased ¥1,839 million from the end of the previous fiscal year to ¥169,185 million. This was mainly due to a net increase primarily resulting from increases in retained earnings and foreign currency translation adjustment and a decrease in valuation difference on available-for-sale securities.

(3) Explanation on the Forward-looking Information such as Forecast of Consolidated Results

Figures announced on April 30, 2021 have not been revised.

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