First Brothers : Summary of Consolidated Financial Results for the Six Months Ended May 31, 2022(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 Six Months Ended May 31, 2022
		(Based on Japanese GAAP)
				July 8, 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 to file Quarterly Securities Report:	July 11, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	No

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended May 31, 2022 (from December 1, 2021 to May 31, 2022)

(1) Consolidated operating results (cumulative)									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		%
Six months ended May 31, 2022	8,600		(39.3)		1,193	(58.4)		1,007		(61.5)		593		(66.0)
Six months ended May 31, 2021	14,176		609.6		2,867	-		2,615			-		1,748		-
	Earnings per share		Diluted earnings per share
				Yen					Yen
Six months ended May 31, 2022			42.32					-
Six months ended May 31, 2021			124.65					-
(2) Consolidated financial position
	Total assets			Net assets	Equity ratio			Net assets per share
	Millions of yen			Millions of yen					%				Yen
As of May 31, 2022		82,042					21,042				25.5		1,493.27
As of November 30, 2021		82,551					20,809				25.1		1,476.71
2. Cash dividends
							Annual dividends per share
	1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen			Yen			Yen				Yen			Yen
Year ended November 30, 2021			-		0.00			-				27.00			27.00
Year ending November 30, 2022			-		0.00
Year ending November 30, 2022										-				30.00			30.00
(Forecast)

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

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4. Notes

1. Changes in significant subsidiaries during the six months ended May 31, 2022 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

No

(3) 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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of May 31, 2022	14,445,000	shares	As of November 30, 2021	14,445,000	shares
Number of treasury shares at the end of the period
	As of May 31, 2022	421,710	shares	As of November 30, 2021	421,710	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended May 31, 2022	14,023,290	shares	Six months ended May 31, 2021	14,023,290	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of November 30, 2021	As of May 31, 2022
Assets
Current assets
Cash and deposits	10,766,170	9,097,429
Deposits in trust	740,507	815,547
Accounts receivable - trade	281,949	219,347
Real estate for sale	44,908,794	42,476,576
Real estate for sale in process	4,275,774	3,478,819
Operational investment securities	342,414	320,946
Other	1,339,478	1,526,539
Allowance for doubtful accounts	(0)	-
Total current assets	62,655,088	57,935,206
Non-current assets
Property, plant and equipment
Buildings and structures, net	8,690,582	10,289,436
Land	8,753,917	10,228,934
Other, net	666,467	1,111,436
Total property, plant and equipment	18,110,967	21,629,807
Intangible assets
Goodwill	367,290	1,174,586
Other	14,186	13,850
Total intangible assets	381,476	1,188,436
Investments and other assets	1,404,206	1,288,719
Total non-current assets	19,896,650	24,106,964
Total assets	82,551,738	82,042,170
Liabilities
Current liabilities
Short-term borrowings	3,454,179	3,956,497
Current portion of long-term borrowings	1,890,848	1,979,740
Income taxes payable	856,693	283,316
Provision for bonuses	25,850	166,069
Provision for shareholder benefit program	21,500	6,421
Other	2,621,417	1,281,880
Total current liabilities	8,870,488	7,673,925
Non-current liabilities
Long-term borrowings	44,384,923	44,641,452
Long-termnon-recourse loans payable	3,420,000	3,420,000
Retirement benefit liability	12,977	18,549
Other	5,053,360	5,245,605
Total non-current liabilities	52,871,260	53,325,607
Total liabilities		61,741,748	60,999,533

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			(Thousands of yen)
		As of November 30, 2021	As of May 31, 2022
Net assets
Shareholders' equity
Share capital	1,589,830	100,000
Capital surplus	1,917,257	3,407,088
Retained earnings	17,440,845	17,654,103
Treasury shares	(278,086)	(278,086)
Total shareholders' equity	20,669,847	20,883,105
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	39,337	45,588
Deferred gains or losses on hedges	(816)	11,864
Total accumulated other comprehensive income	38,521	57,452
Non-controlling interests	101,620	102,079
Total net assets	20,809,990	21,042,637
Total liabilities and net assets		82,551,738	82,042,170

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		May 31, 2021	May 31, 2022
Net sales	14,176,519	8,600,514
Cost of sales	10,404,511	6,277,144
Gross profit	3,772,008	2,323,369
Selling, general and administrative expenses	904,585	1,129,639
Operating profit	2,867,422	1,193,730
Non-operating income
Interest income	32	83
Dividend income	51	35
Interest on tax refund	1,356	308
Subsidy income	2,003	24,336
Gain on valuation of derivatives	30,004	89,842
Other	1,932	18,158
Total non-operating income	35,381	132,764
Non-operating expenses
Interest expenses	204,563	280,057
Commission expenses	77,447	39,370
Other	5,457	-
Total non-operating expenses	287,469	319,427
Ordinary profit	2,615,334	1,007,067
Extraordinary losses
Loss on retirement of non-current assets	629	3,134
Total extraordinary losses	629	3,134
Profit before income taxes	2,614,704	1,003,932
Income taxes - current	1,119,865	405,191
Income taxes - deferred	(251,470)	7,729
Total income taxes	868,394	412,920
Profit	1,746,310	591,011
Loss attributable to non-controlling interests	(1,731)	(2,500)
Profit attributable to owners of parent		1,748,041	593,511

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