First Brothers : Summary of Consolidated Financial Results for the Three Months Ended February 28, 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 Three Months Ended February 28, 2022

(Based on Japanese GAAP)

Company name: First Brothers Co., Ltd.

Stock exchange listing: Tokyo

Yoshinobu Hotta	TEL [phone]
Scheduled date to file Quarterly Securities Report:	April 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)

Stock code: Representative: Inquiries:

3454 URLhttps://www.firstbrothers.com/

President Tomoki Yoshihara Chief Financial Officer

1. Consolidated financial results for the three months ended February 28, 2022 (from December 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

April 8, 2022

Percentages indicate year-on-year changes

Net sales	Operating profit	Ordinary profit	Profit attributable to owners of parent
Three months ended February 28, 2022 Three months ended February 28, 2021	Millions of yen 6,345 2,303	% 175.5 150.7	Millions of yen 1,129 152	% 641.5 368.4	Millions of yen 1,043 100	% 943.5 -	Millions of yen 665 60	% 992.2 -

Earnings per share	Diluted earnings per share
Three months ended February 28, 2022 Three months ended February 28, 2021	Yen 47.44 4.34	Yen - -

(2) Consolidated financial position

Total assets	Net assets	Equity ratio	Net assets per share
As of February 28, 2022 As of November 30, 2021	Millions of yen 80,437 82,551	Millions of yen 21,107 20,809	% 26.1 25.1	Yen 1,497.92 1,476.71

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended November 30, 2021 Year ending November 30, 2022	Yen - -	Yen 0.00	Yen -	Yen 27.00	Yen 27.00
Year ending November 30, 2022 (Forecast)	0.00	-	30.00	30.00

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 owners of parent	Earnings per share
Full year	Millions of yen 24,900	% (6.7)	Millions of yen 2,880	% (41.7)	Millions of yen 2,010	% (54.1)	Millions of yen 1,300	% (53.5)	Yen 92.70

4. Notes

• (1) Changes in significant subsidiaries during the three months ended February 28, 2022

  No

  (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

• (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 February 28, 2022 14,445,000 shares

As of November 30, 2021 14,445,000 shares

As of February 28, 2022 14,445,000 shares As of November 30, 2

Number of treasury shares at the end of the period

As of February 28, 2022 421,710 shares

As of November 30, 2021 421,710 shares

As of February 28, 2022 421,710 shares As of November 30, 2021

Average number of shares during the period (cumulative from the beginning of the fiscal year)

Three months ended February 28, 2022 14,023,290 shares

Three months ended February 28, 2021 14,023,290 shares

Three months ended February 28, 2022

14,023,290 shares Three months ended February 28, 2021

14,023,290 shares

Quarterly consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of November 30, 2021	As of February 28, 2022
Assets Current assets Cash and deposits Deposits in trust Accounts receivable - trade Real estate for sale Real estate for sale in process Operational investment securities Other Allowance for doubtful accounts	10,766,170 740,507 281,949 44,908,794 4,275,774 342,414 1,339,478 (0)	8,490,593 708,657 243,375 41,693,513 3,285,066 346,098 1,524,041 (0)
Total current assets	62,655,088	56,291,346
Non-current assets Property, plant and equipment Buildings and structures, net Land Other, net	8,690,582 8,753,917 666,467	10,304,816 10,190,260 1,134,078
Total property, plant and equipment	18,110,967	21,629,155
Intangible assets Goodwill Other	367,290 14,186	1,204,812 13,838
Total intangible assets	381,476	1,218,650
Investments and other assets	1,404,206	1,298,403
Total non-current assets	19,896,650	24,146,210
Total assets	82,551,738	80,437,556
Liabilities Current liabilities Short-term borrowings Current portion of long-term borrowings Income taxes payable Provision for bonuses Other	3,454,179 1,890,848 856,693 25,850 2,642,917	2,905,837 1,918,184 216,367 80,944 1,191,737
Total current liabilities	8,870,488	6,313,071
Non-current liabilities Long-term borrowings Long-term non-recourse loans payable Retirement benefit liability Other	44,384,923 3,420,000 12,977 5,053,360	44,264,196 3,420,000 29,846 5,302,639
Total non-current liabilities	52,871,260	53,016,683
Total liabilities	61,741,748	59,329,754

(0)

(Thousands of yen)
As of November 30, 2021	As of February 28, 2022
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	1,589,830 1,917,257 17,440,845 (278,086)	1,589,830 1,917,257 17,736,237 (278,086)
Total shareholders' equity	20,669,847	20,965,240
Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges	39,337 (816)	35,184 5,295
Total accumulated other comprehensive income	38,521	40,479
Non-controlling interests	101,620	102,082
Total net assets	20,809,990	21,107,802
Total liabilities and net assets	82,551,738	80,437,556

(278,086)

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

(cumulative)

Consolidated statements of income (cumulative)

(Thousands of yen)
Three months ended February 28, 2021	Three months ended February 28, 2022
Net sales Cost of sales	2,303,379 1,707,420	6,345,730 4,609,183
Gross profit	595,959	1,736,546
Selling, general and administrative expenses	443,689	607,448
Operating profit	152,269	1,129,097
Non-operating income Interest income Dividend income Interest on tax refund Subsidy income Gain on valuation of derivatives Other	22 51 477 1,017 68,721 1,866	76 35 0 18,702 53,414 5,269
Total non-operating income	72,156	77,497
Non-operating expenses Interest expenses Commission expenses Other	98,448 25,958 0	137,575 25,265 -
Total non-operating expenses	124,406	162,841
Ordinary profit	100,019	1,043,753
Extraordinary losses Loss on retirement of non-current assets	37	960
Total extraordinary losses	37	960
Profit before income taxes	99,982	1,042,793
Income taxes - current Income taxes - deferred	282,491 (241,675)	324,700 55,358
Total income taxes	40,815	380,059
Profit	59,167	662,734
Loss attributable to non-controlling interests	(1,737)	(2,467)
Profit attributable to owners of parent	60,904	665,202

(2,467)