Second Quarter Fiscal Year Ending March 31, 2022 Consolidated Earnings Announcement (Japanese GAAP)

Second Quarter Fiscal Year Ending March 31, 2022

Consolidated Earnings Announcement (Japanese GAAP)

November 11, 2021

Company Name: Hoosiers Holdings

Listed market: Tokyo Stock Exchange First Section

Stock Code:

3284

URL: https://www.hoosiers.co.jp

Representative:

(Title)

CEO and President

(Name) Tetsuya Hirooka

Contact:

(Title)

Head of Business Planning Section (Name) Yoshiro Narukami

Telephone: [phone]

Scheduled date to file quarterly report: November 12, 2021

Scheduled date to commence

dividend payment: December 6, 2021

Preparation of supplemental information of quarterly financial results: Yes

Holding of quarterly financial results briefing: Yes (For institutional investors and analysts)

(Figures are rounded down to the nearest million yen)

1. 2nd Quarter FY3/22 Consolidated Earnings Results (April 1, 2021 to September 30, 2021)

(1) Consolidated Earnings (Cumulative)

(% indicates changes from the same period of the previous fiscal year)

Net Sales

Operating Income

Ordinary Income

Profit Attributable to

Owners of Parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

2nd Quarter FY3/22

26,863

(8.2)

1,559

67.9

1,078

48.4

483

(42.0)

2nd Quarter FY3/21

29,249

(14.0)

928

(52.1)

726

(51.7)

832

(18.2)

(Note) Comprehensive income:

2nd Quarter FY3/22 ¥889 million (27.5%)

2nd Quarter FY3/21

¥697

million (-12.0%)

Earnings Per Share

Diluted

Earnings Per Share

Yen

Yen

2nd Quarter FY3/22

13.65

13.63

2nd Quarter FY3/21

14.60

14.59

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Million yen

Million yen

%

As of September 30, 2021

134,633

36,587

21.5

As of March 31, 2021

136,030

36,368

21.2

(Reference) Shareholders' equity:

As of September 30, 2021

¥28,975 million

As of March 31, 2021

¥28,861

million

2. Dividends

Dividend Per Share

End of

End of

End of

End of Year

Annual

1st Quarter

2nd Quarter

3rd Quarter

Yen

Yen

Yen

Yen

Yen

FY3/21

－

6.00

－

18.00

24.00

FY3/22

－

17.00

FY3/22 (Forecast)

－

19.00

36.00

(Note) Changes in the latest forecasts released: No

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 2022 (From April 1, 2021 to March 31, 2022)

(% indicates changes from the previous fiscal year)

	Net Sales		Operating Income	Ordinary Income	Profit Attributable to	Earnings Per
		Owners of Parent	Share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	76,000		(5.3)	5,700	4.9	5,000	8.3	3,100	7.7	87.62

(Note) Changes in the latest forecasts released: No

－ 1 －

• Matters to be noted
• 1. Changes in important subsidiaries during the quarter under review: No
  2. Application of specific accounting treatments in preparing the quarterly consolidated financial statements: No
  3. Changes in accounting principles, changes in accounting estimates and retrospective restatements
  4. 1. Changes in accounting principles in accordance with revisions to accounting and other standards: Yes
     2. Changes in accounting principles other than above (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatements: No

Note: Please refer to "2. Consolidated Quarterly Financial Statements and Main Notes, (4) Matters to be Noted regarding Consolidated Quarterly Financial Statements (Changes in accounting principles)" on page 12.

(4) Outstanding shares (Common stock)

(a) Number of outstanding shares at the end of	September 30, 2021	36,916,775	shares	March 31, 2021	36,916,775	shares
period (Including treasury shares)
(b) Number of treasury shares at the end of	September 30, 2021	1,537,512	shares	March 31, 2021	1,537,512	shares
period
(c) Average number of shares during the period	2nd Quarter FY3/22	35,379,263	shares	2nd Quarter FY3/21	56,996,795	shares
(Quarterly cumulative period)

The number of treasury shares includes 410,550 shares of our company that are held by Board Benefit Trust as of the end of the second quarter under review.

*Earnings Announcement is out of scope of quarterly reviews by certified public accountants or an audit corporation.

*Explanatory statement regarding the proper use of financial forecasts and other notes

All forecasts provided in this document are based on certain reasonable assumptions and beliefs in light of information currently available and, therefore, it is not intended for guaranteeing to meet them. Actual results may differ from our forecasts due to various unforeseen reasons.

－ 2 －

○ Table of contents of the attached document

1. Qualitative Information on the Financial Statements for the Quarter under Review. ………………………………………	4
(1) Explanation about business performance …………………………………………………………………….….………	4
(2) Qualitative information on consolidated financial position ……………………………………………….….…………	5
(3) Qualitative information on consolidated earnings forecasts ……………………………………………………………...	5
2. Consolidated Quarterly Financial Statements and Main Notes ………………………………………………………………	6
(1) Consolidated Quarterly Balance Sheets …………………………………………………………………………………	6
(2) Consolidated Quarterly Income Statement and Comprehensive Income Statement ………………………………...….	8
(3) Consolidated Quarterly Cash Flow Statement ……………………………………………………………………………	10
(4) Matters to be Noted regarding Consolidated Quarterly Financial Statements ………………………………….……….	12
(Notes on the premise of a going concern) …………………………………………………………………………...…	12
(Notes on the significant change in the shareholders' equity amount) …………………………………………….……	12
(Changes in accounting principles) …………………………………………………………………………....…….…	12
(Segment information, etc.) ……………………………………………………………………………………….……	13
3. Other Information ……………………………………………………………………………………………………….……	14
(1) Records of Sales ……………………………………………………………………………………………………….…	14
(2) Real Estate Sales Information ………………………………………………………………………………………….…	15

－ 3 －

1. Qualitative Information on the Financial Statements for the Quarter under Review

1. Explanation about business performance

During the second quarter under review, the number of contracted units was 625 and 6 buildings, and that of delivered units was 474 and 5 buildings. As of the end of the second quarter, we managed 18,836 units. Consequently, as the results for the second quarter, we posted net sales of ¥26,863 million (down 8.2% year over year), operating income of ¥1,559 million (up 67.9% year over year), ordinary income of ¥1,078 million (up 48.4 % year over year), and profit attributable to owners of parent of ¥483 million (down 42.0 % year over year).

In our Real Estate Development, CCRC, and Real Estate Investment, sales are booked upon delivery to customers, not at the time purchase and sales contracts are executed. As a result, this tends to cause a deviation in quarterly sales depending on the timing of delivery.

Results by segment are as follows.

(I) Real Estate Development

During the second quarter under review, the Group recorded net sales of ¥11,753 million (down 42.0 % year over year) and operating income of ¥228 million (down 81.1 % year over year) due to a delivery of 254 condominium units such as "Duo Veel Nishijin," and "Duo Veel OHORIKOEN CLASS," a delivery of 41 detached houses such as "Duo Avenue Hikarigaoka Koen" and "Duo Avenue Kunitachi Bright Square."

1. CCRC
   During the second quarter under review, the Group recorded net sales of ¥7,359 million (up 73.8% year over year) and operating income of ¥678 million (operating income of ¥37 million a year earlier) due to a delivery of 174 condominium units such as "Duo Scene Funabashi Takanedai."

(III) Real Estate Investment

We recorded net sales of ¥4,593 million (up 128.6% year over year) and operating income of ¥406 million (operating loss of ¥261 million a year earlier) during the second quarter under review.

(1) Real Estate Sales

Due to the sales of inventory assets, we recorded net sales of ¥3,048 million (up 361.6% year over year).

(2) Rental Revenue

We recorded net sales of ¥1,316 million (up 8.1% year over year) due to the stable operation of owned income-producing properties.

(IV) Condominium Management and Related Services

We recorded net sales of ¥3,118 million (up 14.8% year over year) and operating income of ¥143 million (operating loss of ¥142 million a year earlier) during the second quarter under review.

(1) Condominium Management

We recorded net sales of ¥951 million (up 7.6% year over year) due to the start of the new management contracting of "Duo Veel Nishijin" and "Duo Veel OHORIKOEN CLASS," etc. in condominium management.

(2) Sports Club Operation Revenue

We recorded net sales of ¥1,729 million (up 21.3% year over year) mainly due to the operation of sports clubs.

(3) Other Income

We recorded net sales of ¥437 million (up 7.6% year over year) in hotel business and consigned construction, etc.

Sports club and hotel businesses closed some of their facilities, as was the case last fiscal year, in response to the "declaration of a state of emergency" by the Japanese Government. Fixed costs incurred by those facilities during the temporary closure were recorded as loss due to the spread of the novel coronavirus in extraordinary losses.

1. Other
   We recorded net sales of ¥38 million (up 29.6% year over year) and operating income of ¥10 million (operating loss of ¥4 million a year earlier) through PFI operations.

－ 4 －

The progress status of the annual delivery plan in the Real Estate Sales is shown below. In Condominium apartments, the main business of the Group, 87.3% of the contracts have been executed.

FY3/22	Number of units	Number of contracts	Progress
to be delivered	signed
Condominium apartments	783	684	87.3%
Condominium apartments for	517	370	71.6%
seniors
Detached houses	89	72	80.9%
Total	1,389	1,126	81.0%

(Notes) 1. "Condominium apartments" show the total number of family condominiums and compact condominiums.

1. 2. The number of units for joint venture properties is shown with consideration for the joint venture ratio (by rounding off to the whole number).

2. Qualitative information on consolidated financial position

1. Financial condition analysis

As of the end of the second quarter under review, total assets amounted to ¥134,633 million (down 1.0% from March 31, 2021), total liabilities amounted to ¥98,045 million (down 1.6% from March 31, 2021), and total net assets amounted to ¥36,587 million (up 0.6% from March 31, 2021), mainly due to a decrease in inventories.

1. Cash flow condition analysis
   During the second quarter under review, cash and cash equivalents increased by ¥5,826 million to ¥29,750million mainly due to an increase of cash from operating activities resulting from a decrease in inventories and an increase in advances received. ・Cash flows from operating activities
   Net cash provided in operating activities was ¥10,660 million (¥4,487million used a year earlier), which was mainly due to a decrease in inventories and an increase in advances received.
   ・Cash flows from investing activities
   Net cash used in investing activities was ¥170 million (¥1,515 million used a year earlier), which was mainly due to purchase of property, plant and equipment and intangible assets.
   ・Cash flows from financing activities
   Net cash used by financing activities was ¥4,737 million (¥52 million provided a year earlier), which was mainly due to repayments of long-term loans payable.

1. Qualitative information on consolidated earnings forecasts

The earnings forecasts for the fiscal year ending March 31, 2022 remain unchanged from those announced on May 13, 2021 as consolidated results and sales status for the second quarter under review have progressed as planned and the Group's operating environment is within the scope of the assumption.

－ 5 －