JDC : Summary of Consolidated Financial Results for Fiscal Year Ended May 31, 2022

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, 2022 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, 2022

[Japanese GAAP]

July 15, 2022

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, Deputy Director of Management Division and General Manager of Accounting Department

Phone: [phone]

Scheduled date of Annual General Meeting of Shareholders: August 25, 2022

Scheduled date of filing annual securities report: August 25, 2022

Scheduled date of commencing dividend payments: August 26, 2022

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 25, 2022, 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, 2022 (June 1, 2021 to May 31, 2022)
(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, 2022	126,790	7.6	7,957	(24.7)	8,398	(20.7)	7,389	(4.2)
May 31, 2021	117,803	(0.6)	10,564	1.9	10,585	8.2	7,713	(3.0)

(Note) Comprehensive income: Fiscal year ended May 31, 2022: ¥7,781 million [(7.4)%] Fiscal year ended May 31, 2021: ¥8,401million [8.8%]

	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, 2022	84.47	84.28	9.7	5.5	6.3
May 31, 2021	88.92	88.55	10.9	7.5	9.0

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended May 31, 2022: ¥ 0 million Fiscal year ended May 31, 2021: ¥(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, 2022			154,724	79,946	51.2	900.89
As of May 31, 2021			148,766	74,211	49.6	846.77
(Reference) Equity: As of May 31, 2022: ¥79,148 million
	As of May 31, 2021: ¥73,830 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, 2022		3,759		4,331		△8,082	47,170
May 31, 2021		4,572		(2,172)		16,910	46,954

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, 2021	-	10.00	-	16.00	26.00	2,304	29.2	3.2
May 31, 2022	-	10.00	-	16.00	26.00	2,314	30.8	3.0
Fiscal year ending
May 31, 2023	-	10.00	-	16.00	26.00			36.6
(Forecast)

(Notes) 1. Annual dividends for fiscal year ended May 31, 2021: ¥20.00 ordinary dividends and ¥6.00 special dividends Annual dividends for fiscal year ended May 31, 2022: ¥20.00 ordinary dividends and ¥6.00 special dividends Annual dividends for fiscal year ending May 31, 2023 (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 30.4% and 32.1% for the fiscal years ended May 31, 2021 and 2022, respectively.

3. Forecast of Consolidated Financial Results for Fiscal Year Ending May 31, 2023 (June 1, 2022 to May 31, 2023) (% 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	171,000	34.9	9,000	13.1	9,100	8.3	6,300	(14.7)	71.00

* Notes:

1. Changes in significant subsidiaries during fiscal year under review (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
   New: One company (Company name) Nobeoka Solar Power LLC
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: Yes
   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, 2022: 98,255,000 shares

May 31, 2021: 98,255,000 shares

1. Total number of treasury shares at the end of the period: May 31, 2022: 10,399,046 shares
   May 31, 2021: 11,064,846 shares
2. Average number of shares during the period:

Fiscal year ended May 31, 2022: 87,469,397 shares

Fiscal year ended May 31, 2021: 86,745,028 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) (1,037,500 shares for the fiscal year ended May 31, 2022, and 1,118,700 shares for the fiscal year ended May 31, 2021). 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 (1,072,422 shares for the fiscal year ended May 31, 2022, and 1,165,932 shares for the fiscal year ended May 31, 2021).

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) (197,400 shares for the fiscal year ended May 31, 2022, and 489,800 shares for the fiscal year ended May 31, 2021). 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 (338,193 shares for the fiscal year ended May 31, 2022 and 490,600 shares for the fiscal year ended May 31, 2021).

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for Fiscal Year Ended May 31, 2022 (June 1, 2021 to May 31, 2022)

(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, 2022	113,075	10.6		6,858	(24.5)	8,413	(8.9)		7,811	14.9
May 31, 2021	102,246	(5.3)		9,078	(1.9)	9,234	3.9		6,797	(7.5)
		Net Income per Share		Diluted Net Income per Share
Fiscal year ended					Yen					Yen
May 31, 2022					89.30					89.09
May 31, 2021					78.36					78.03
(2) Non-consolidated Financial Position
		Total assets	Net assets		Equity ratio	Net assets per share
		Million yen		Million yen			%			Yen
As of May 31, 2022			133,497			74,619			55.9			849.34
As of May 31, 2021			123,319			68,781			55.8			788.87

(Reference) Equity: As of May 31, 2022: ¥74,619 million As of May 31, 2021: ¥68,781 million

2. Forecast of Non-consolidated Financial Results for the Fiscal Year Ending May 31, 2023 (June 1, 2022 to May 31, 2023)

(% 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	146,600	29.6	7,500	(10.9)	5,200	(33.4)	59.00

• 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 Monday, July 25, 2022, 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, 2021	As of May 31, 2022
Assets
Current assets
Cash and deposits			46,954			47,591
Notes receivable, accounts receivable from	32,502	47,541
completed construction contracts and other
Real estate for sale			9,136			5,645
Solar power plants for sale	-	238
Costs on construction contracts in progress			1,276			866
Costs on development business and other	2,448	2,933
Other inventories			593			290
Advances paid	4,011	1,335
Other			2,908			4,094
Allowance for doubtful accounts	(8)	(4)
Total current assets			99,823			110,532
Non-current assets
Property, plant and equipment
Buildings and structures	17,040	11,070
Machinery, vehicles, tools, furniture and			19,636			16,555
fixtures
Land	9,246	8,158
Leased assets			2,132			2,424
Construction in progress	1,316	2,208
Accumulated depreciation			(14,884)			(10,467)
Total property, plant and equipment	34,487	29,951
Intangible assets
Goodwill	-	933
Other			766			883
Total intangible assets	766	1,817
Investments and other assets
Investment securities	9,084	8,249
Long-term loans receivable			50			38
Distressed receivables	13	7
Retirement benefit asset			1,695			1,647
Deferred tax assets	94	162
Other			2,786			2,350
Allowance for doubtful accounts	(35)	(31)
Total investments and other assets			13,688			12,424
Total non-current assets	48,943	44,192
Total assets			148,766			154,724

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(Million yen)

As of May 31, 2021

As of May 31, 2022

Liabilities

Current liabilities

Notes payable, accounts payable for construction contracts and other Short-term borrowings

Lease liabilities

Income taxes payable

Advances received on construction contracts in progress

Advances received on development projects Deposits received

Provision for warranties for completed construction

Provision for loss on construction contracts Provision for bonuses for directors (and other officers)

Provision for loss on business liquidation Other

Total current liabilities

Non-current liabilities

Bonds payable

Long-term borrowings

Lease liabilities

Deferred tax liabilities

Provision for retirement benefits for directors (and other officers)

Provision for share awards

Provision for loss on litigation

Retirement benefit liability

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders' equity

Accumulated other comprehensive income Valuation difference on available-for-sale securities

Deferred gains or losses on hedges Remeasurements of defined benefit plans

			17,362			23,447
		2,691		1,151
			160			182
		1,685		1,858
			5,482			7,282
		213		25
			5,345			4,724
		961		780
			49			114
		19		48
			126			142
		5,386		4,049
			39,486			43,809
			3,000			3,000
		28,361		24,101
			1,454			1,599
		456		174
			32			27
		570		529
			4			7
		496		518
			692			1,010
		35,069		30,968
			74,555			74,778
		5,012		5,012
			18,450			18,551
		51,348		56,427
			(2,425)			(2,168)
		72,386		77,823
		1,619		1,626
			-			(38)
		(175)		(262)

Total accumulated other comprehensive income			1,444	1,324
Non-controlling interests	380	797
Total net assets			74,211	79,946
Total liabilities and net assets		148,766	154,724

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