JDC : Summary of Consolidated Financial Results for Fiscal Year Ended May 31, 2021

Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. This document is a partial English translation of the Japanese Financial Statements disclosed at the Tokyo Stock Exchange on July 15, 2021 presented solely for the convenience of non-Japanese speaking users. If there is any discrepancy between the translation and the Japanese original, the latter shall prevail.

Summary of Consolidated Financial Results

for Fiscal Year Ended May 31, 2021

[Japanese GAAP]

							July 15,	2021
Company name: JDC Corporation
Stock exchange listing: Tokyo Stock Exchange
Code number: 1887
URL: https://www.n-kokudo.co.jp/
Representative: Takeo Asakura, Representative Director and President
Contact: Hironori Otoishi, General Manager of Accounting Division, Management Department
Phone: [phone]
Scheduled date of Annual General Meeting of Shareholders: August 26, 2021
Scheduled date of filing annual securities report: August 26, 2021
Scheduled date of commencing dividend payments: August 27, 2021
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing	session: Scheduled(To prevent the	spread	of the novel coronavirus
			(COVID-19) disease, the session will be held live through the
			Internet on July 29, 2021, and the video clip will be available on
			JDC CORPORATION's website later.)
			(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for Fiscal Year Ended May 31, 2021 (June 1, 2020 to May 31, 2021)
(1) Consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable to
		Owners of Parent
Fiscal year ended	Million yen	% Million yen	%	Million yen	%	Million yen	%
May 31, 2021	117,803	(0.6)	10,564	1.9	10,585	8.2	7,713	(3.0)
May 31, 2020	118,529	(0.8)	10,367	(28.9)	9,783	(32.1)	7,955	(23.9)

(Note) Comprehensive income: Fiscal year ended May 31, 2021: ¥8,401 million [8.8%] Fiscal year ended May 31, 2020: ¥7,719 million [(16.3)%]

	Net Income	Diluted Net	Return on Equity	Ordinary Profit	Operating Profit
	per Share	Income per Share	to Total Assets	to Net Sales
Fiscal year ended	Yen	Yen	%	%	%
May 31, 2021	88.92	88.69	10.9	7.5	9.0
May 31, 2020	91.37	91.00	12.1	7.4	8.7

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended May 31, 2021: ¥(0) million Fiscal year ended May 31, 2020: ¥ 0 million

(2) Consolidated Financial Position

			Total Assets		Net Assets	Equity Ratio	Net Assets per Share
			Million yen	Million yen	%	Yen
As of May 31, 2021			148,766	74,211	49.6	846.77
As of May 31, 2020			133,937	68,317	50.8	780.35
(Reference) Equity: As of May 31, 2021: ¥73,830 million
	As of May 31, 2020: ¥68,001 million
(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
Fiscal year ended			Million yen		Million yen		Million yen	Million yen
May 31, 2021		4,572		(2,172)		16,910	46,954
May 31, 2020		(3,476)		(5,634)		2,478	27,522

2. Dividends

		Annual dividends				Total	Payout		Dividends
							ratio		to net assets
	End of 1Q	End of 2Q	End of 3Q	Year-end	Total		dividends
		(consolidated)		(consolidated)
Fiscal year ended	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
May 31, 2020	-	10.00	-	18.00	28.00	2,473	30.6	3.7
May 31, 2021	-	10.00	-	16.00	26.00	2,304	29.2	3.2
Fiscal year ending
May 31, 2022	-	10.00	-	16.00	26.00			33.8
(Forecast)

(Notes) 1. Annual dividends for fiscal year ended May 31, 2020: ¥20.00 ordinary dividends and ¥8.00 special dividends Annual dividends for fiscal year ended May 31, 2021: ¥20.00 ordinary dividends and ¥6.00 special dividends Annual dividends for fiscal year ending May 31, 2022 (Forecast): ¥20.00 ordinary dividends and ¥6.00 special

dividends

2. The consolidated payout ratios, when calculated by dividing the total dividends by profit attributable to owners of parent (excluding special/extraordinary profit or loss such as asset transfers), are 32.2% and 30.4% for the fiscal years ended May 31, 2020 and 2021, respectively.

3. Forecast of Consolidated Financial Results for Fiscal Year Ending May 31, 2022 (June 1, 2021 to May 31, 2022) (% indicates changes from the previous corresponding period.)

	Net Sales		Operating Profit	Ordinary Profit	Profit attributable	Basic earnings
		to owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	150,000	27.3	10,200	(3.5)	9,900	(6.5)	6,800	(11.8)	77.00

* Notes:

1. Changes in significant subsidiaries during fiscal year under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement
3. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1): No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
4. Total number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury stock):

May 31, 2021: 98,255,000 shares

May 31, 2020: 98,255,000 shares

1. Total number of treasury shares at the end of the period: May 31, 2021: 11,064,846 shares
   May 31, 2020: 11,113,346 shares
2. Average number of shares during the period:

Fiscal year ended May 31, 2021: 86,745,028 shares

Fiscal year ended May 31, 2020: 87,062,171 shares

(Notes)1. The total number of treasury shares at the end of the period includes shares owned by Custody Bank of Japan, Ltd. (trust account E) as trust property of the Board Benefit Trust (J-ESOP) (1,118,700 shares for fiscal year ended May 31, 2021 and 1,212,800 shares for fiscal year ended May 31, 2020). The shares of JDC Corporation owned by Custody Bank of Japan, Ltd. (trust account E) constitute the treasury shares that are deducted in the calculation of the average number of shares during the period (1,165,932 shares for the fiscal year ended May 31, 2021 and 1,292,283 shares for fiscal year ended May 31, 2020).

2. The total number of treasury shares at the end of the period includes shares owned by Custody Bank of Japan, Ltd. (trust account E) as trust property of the Stock Benefit Trust (Employee Stockholding Association

Purchase-type) (489,800 shares for fiscal year ended May 31, 2021 and 0 share for fiscal year ended May 31, 2020). The shares of JDC Corporation owned by Custody Bank of Japan, Ltd. (trust account E) constitute the treasury shares that are deducted in the calculation of the average number of shares during the period (490,600 shares for the fiscal year ended May 31, 2021 and 0 share for fiscal year ended May 31, 2020).

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for Fiscal Year Ended May 31, 2021 (June 1, 2020 to May 31, 2021)

(1) Non-consolidated Operating Results		(% indicates changes from the previous corresponding period.)
	Net Sales		Operating Profit	Ordinary Profit	Profit
Fiscal year ended	Million yen	%	Million yen	%	Million yen	%		Million yen	%
May 31, 2021	102,246	(5.3)	9,078	(1.9)	9,234	3.9		6,797	(7.5)
May 31, 2020	107,937	(1.5)	9,253	(31.0)	8,889	(33.6)		7,345	(24.2)
	Net Income per Share		Diluted Net Income per Share
Fiscal year ended			Yen				Yen
May 31, 2021			78.36				78.16
May 31, 2020			84.37				84.03

(2) Non-consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of May 31, 2021	123,319	68,781	55.8	788.87
As of May 31, 2020	118,533	64,357	54.3	738.53

(Reference) Equity: As of May 31, 2021: ¥68,781 million As of May 31, 2020: ¥64,357 million

2. Forecast of Non-consolidated Financial Results for the Fiscal Year Ending May 31, 2022 (June 1, 2021 to May 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Ordinary profit	Profit attributable to	Basic earnings
		owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	127,000	24.2	8,300	(10.1)	5,800	(14.7)	66.00

• These consolidated financial results are outside the scope of audit by certified public accountants or audit firms.
• Explanation of the proper use of financial results forecast and other notes

The forecasts are based on certain assumptions relating to economic situations and market trends deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors.

Financial results briefing will be held live through the Internet on Thursday, July 29, 2021, and the video clip will be available on JDC CORPORATION's website later. The briefing material used in this session will also be posted on the website immediately after the session ends.

3. Consolidated Financial Statements and Primary Notes

(1) Consolidated Balance Sheet

				(Million yen)
		As of May 31, 2020	As of May 31, 2021
Assets
Current assets
Cash and deposits		27,772		46,954
Notes receivable, accounts receivable from	36,353	32,502
completed construction contracts and other
Real estate for sale		4,594		9,136
Costs on construction contracts in progress	4,157	1,276
Costs on development business and other		327		2,448
Other inventories	605	593
Advances paid		3,394		4,011
Other	3,020	2,908
Allowance for doubtful accounts		(9)		(8)
Total current assets	80,216	99,823
Non-current assets
Property, plant and equipment
Buildings and structures		19,976		17,040
Machinery, vehicles, tools, furniture and	10,489	19,636
fixtures
Land		10,908		9,246
Leased assets	2,131	2,132
Construction in progress		10,691		1,316
Accumulated depreciation	(14,509)	(14,884)
Total property, plant and equipment		39,688		34,487
Intangible assets	619	766
Investments and other assets
Investment securities	9,015	9,084
Long-term loans receivable		66		50
Distressed receivables	398	13
Retirement benefit asset		1,063		1,695
Deferred tax assets	673	94
Other		2,678		2,786
Allowance for doubtful accounts	(483)	(35)
Total investments and other assets		13,412		13,688
Total non-current assets	53,721	48,943
Total assets		133,937		148,766

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					(Million yen)
		As of May 31, 2020	As of May 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable for			23,185			17,362
construction contracts and other
Short-term borrowings	1,212	2,691
Lease obligations			141			160
Income taxes payable	1,603	1,685
Advances received on construction contracts			10,275			5,482
in progress
Advances received on development projects	159	213
Deposits received			8,197			5,345
Provision for warranties for completed	733	961
construction
Provision for loss on construction contracts			169			49
Provision for bonuses for directors (and other	119	19
officers)
Provision for loss on business liquidation			157			126
Other	2,985	5,386
Total current liabilities			48,940			39,486
Non-current liabilities
Bonds payable			-			3,000
Long-term borrowings	13,175	28,361
Lease obligations			1,610			1,454
Deferred tax liabilities	-	456
Provision for retirement benefits for directors			32			32
(and other officers)
Provision for share awards	618	570
Provision for loss on litigation			12			4
Retirement benefit liability	492	496
Other			738			692
Total non-current liabilities	16,680	35,069
Total liabilities			65,620			74,555
Net assets
Shareholders' equity
Share capital	5,012	5,012
Capital surplus			18,301			18,450
Retained earnings	46,109	51,348
Treasury shares			(2,267)			(2,425)
Total shareholders' equity		67,156	72,386
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,455	1,619
securities
Remeasurements of defined benefit plans			(610)			(175)
Total accumulated other comprehensive income	845	1,444
Non-controlling interests			315			380
Total net assets	68,317	74,211
Total liabilities and net assets			133,937			148,766

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