First Brothers : Summary of Consolidated Financial Results for the Year Ended November 30, 2021(Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

	Summary of Consolidated Financial Results
			for the Year Ended November 30, 2021
			(Based on Japanese GAAP)
																				January 12, 2022
Company name:	First Brothers Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	3454	URL https://www.firstbrothers.com/
Representative:	President							Tomoki Yoshihara
Inquiries:	Chief Financial Officer			Yoshinobu Hotta	TEL [phone]
Scheduled date of ordinary general meeting of shareholders:	February 25, 2022
Scheduled date to file Securities Report:			February 25, 2022
Scheduled date to commence dividend payments:			February 7, 2022
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							No
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended November 30, 2021 (from December 1, 2020 to November 30, 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		%
Year ended November 30, 2021		26,685		70.6	4,940		94.4		4,379	141.1		2,795		20.8
Year ended November 30, 2020		15,642		(21.2)	2,541		(26.6)		1,816	(35.4)	2,313		5.9
			Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
					share			owners of				assets			sales
									parent/equity
				Yen			Yen			%						%				%
Year ended November 30, 2021		199.34				-			14.4						5.6				18.5
Year ended November 30, 2020		164.95				-			13.4						2.6				16.2
(2) Consolidated financial position
			Total assets			Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%						Yen
As of November 30, 2021		82,551					20,809					25.1				1,476.71
As of November 30, 2020		73,762					18,330					24.7				1,299.88
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended November 30, 2021					301					(399)					4,752						10,767
Year ended November 30, 2020		(4,883)					(1,988)					5,417						6,202
2. Cash dividends
							Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended November 30, 2020		-		0.00	-		24.00	24.00		336		14.5			2.0
Year ended November 30, 2021		-		0.00	-		27.00	27.00		378		13.5			1.9
Year ending November 30, 2022		-			0.00	-				30.00	30.00				32.4
(Forecast)

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3. Forecast of consolidated financial results for the year ending November 30, 2022 (from December 1, 2021 to November 30, 2022) Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	24,900	(6.7)	2,880	(41.7)	2,010	(54.1)		1,300	(53.5)	92.70
4. Notes
(1) Changes in significant subsidiaries during the year ended November 30, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of November 30, 2021	14,445,000	shares	As of November 30, 2020	14,445,000	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	421,710	shares	As of November 30, 2020	421,710	shares
Average number of shares during the period
	Year ended November 30, 2021	14,023,290	shares	Year ended November 30, 2020	14,022,846	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of November 30, 2020	As of November 30, 2021
Assets
Current assets
Cash and deposits	6,207,421	10,766,170
Deposits in trust	563,711	740,507
Accounts receivable - trade	329,306	281,949
Real estate for sale	56,205,055	44,908,794
Real estate for sale in process	6,449,266	4,275,774
Merchandise	15,986	11,509
Supplies	558	741
Operational investment securities	348,034	342,414
Other	1,755,577	1,327,228
Allowance for doubtful accounts	(0)	(0)
Total current assets	71,874,918	62,655,088
Non-current assets
Property, plant and equipment
Buildings and structures	147,607	9,660,098
Accumulated depreciation	(71,418)	(969,515)
Buildings and structures, net	76,189	8,690,582
Machinery, equipment and vehicles	4,635	217,688
Accumulated depreciation	(3,622)	(40,306)
Machinery, equipment and vehicles, net	1,013	177,381
Tools, furniture and fixtures	111,764	133,383
Accumulated depreciation	(78,134)	(98,754)
Tools, furniture and fixtures, net	33,630	34,628
Land	-	8,753,917
Construction in progress	454,456	454,456
Total property, plant and equipment	565,289	18,110,967
Intangible assets
Goodwill	-	367,290
Other	12,948	14,186
Total intangible assets	12,948	381,476
Investments and other assets
Investment securities	83,909	68,505
Investments in other securities of subsidiaries and	36,157	41,413
associates
Deferred tax assets	179,896	80,933
Leasehold and guarantee deposits	388,397	369,846
Other	620,608	843,507
Total investments and other assets	1,308,970	1,404,206
Total non-current assets	1,887,208	19,896,650
Total assets		73,762,127	82,551,738

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			(Thousands of yen)
		As of November 30, 2020	As of November 30, 2021
Liabilities
Current liabilities
Short-term borrowings	2,000,000	3,454,179
Current portion of long-term borrowings	1,741,206	1,890,848
Current portion of long-termnon-recourse loans payable	15,488	-
Income taxes payable	427,724	856,693
Provision for bonuses	25,100	25,850
Provision for shareholder benefit program	27,500	21,500
Other	1,772,828	2,621,417
Total current liabilities	6,009,848	8,870,488
Non-current liabilities
Long-term borrowings	43,318,091	44,384,923
Long-termnon-recourse loans payable	582,667	3,420,000
Deferred tax liabilities	1,827,766	1,811,112
Retirement benefit liability	10,613	12,977
Other	3,682,911	3,242,247
Total non-current liabilities	49,422,048	52,871,260
Total liabilities	55,431,897	61,741,748
Net assets
Shareholders' equity
Share capital	1,589,830	1,589,830
Capital surplus	1,917,257	1,917,257
Retained earnings	14,982,928	17,440,845
Treasury shares	(278,086)	(278,086)
Total shareholders' equity	18,211,930	20,669,847
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	21,182	39,337
Deferred gains or losses on hedges	(4,501)	(816)
Total accumulated other comprehensive income	16,681	38,521
Non-controlling interests	101,618	101,620
Total net assets	18,330,230	20,809,990
Total liabilities and net assets		73,762,127	82,551,738

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		November 30, 2020	November 30, 2021
Net sales	15,642,498	26,685,474
Cost of sales	11,348,687	19,844,568
Gross profit	4,293,811	6,840,905
Selling, general and administrative expenses	1,752,774	1,900,446
Operating profit	2,541,036	4,940,459
Non-operating income
Interest income	111	243
Dividend income	1,005	1,046
Interest on tax refund	3,370	2,046
Subsidy income	6,834	3,888
Gain on valuation of derivatives	-	73,561
Gain on sale of investment securities	79	248
Other	1,511	4,067
Total non-operating income	12,913	85,103
Non-operating expenses
Interest expenses	418,083	472,296
Commission expenses	255,309	168,306
Loss on valuation of derivatives	58,256	-
Other	5,905	5,023
Total non-operating expenses	737,554	645,627
Ordinary profit	1,816,394	4,379,936
Extraordinary income
Gain on bargain purchase	1,216,592	-
Total extraordinary income	1,216,592	-
Extraordinary losses
Loss on retirement of non-current assets	-	997
Loss on valuation of investment securities	-	259
Loss on valuation of shares of subsidiaries and associates	1,000	-
Loss on liquidation of subsidiaries and associates	2,952	57
Total extraordinary losses	3,952	1,314
Profit before income taxes	3,029,034	4,378,621
Income taxes - current	898,769	1,802,325
Income taxes - refund	(17,300)	-
Income taxes - deferred	(159,682)	(213,977)
Total income taxes	721,787	1,588,348
Profit	2,307,247	2,790,273
Loss attributable to non-controlling interests	(5,889)	(5,089)
Profit attributable to owners of parent		2,313,136	2,795,363

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