JTOWER : Summary of Financial Results for the 1st Quarter of FY2020 ended June 30, 2020

English Translation

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 Financial Results for the Three Months Ended June 30, 2020

(Japanese GAAP) (Consolidated)

			August 7, 2020
Name of listed company:	JTOWER Inc.	Listing exchange: Tokyo
Securities code:	4485	URL: https://en.jtower.co.jp/
Representative:	(Position)	Representative Director	(Name) Atsushi Tanaka
Contact for inquiries:	(Position)	Managing Director CFO and General	(Name) Ryosuke Nakamura TEL: [phone]
		Business Administration Department
		Head
Scheduled date to file Securities Report:		August 14, 2020
Scheduled date of dividend payments:		-
Supplementary materials for financial results:	Yes
Holding of financial results meeting:		No

(Amounts are rounded down to the nearest million yen)

1. Consolidated financial results for the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)

(1) Consolidated operating results (cumulative)

(% figures show the change from the same period of previous fiscal year)

		Net sales			EBITDA*			Operating income			Ordinary income			Profit attributable to
										owners of parent
		million yen		%	million yen		%		million yen		%		million yen		%		million yen	%
Three months ended		818		-	316		-			100		-		93		-		55	-
June 30, 2020
Three months ended		-		-	-		-			-		-		-		-		-	-
June 30, 2019
(Note)	Three months ended		33 million yen	(-%)	Three months ended	-	million yen	(-%)
Comprehensive income	June 30, 2020:		June 30, 2019:
		Basic earnings		Diluted earnings
		per share					per share
					yen					yen
Three months ended					2.71					2.65
June 30, 2020
Three months ended					-						-
June 30, 2019

*EBITDA = Operating income + Depreciation + Amortization of goodwill + Amortization of long-term prepaid expenses

(Note) The Company has not prepared a quarterly consolidated financial statement for three months ended June 30, 2019, so the figures of three months ended June 2019 and the rate of increase (decrease) compared with the same period of previous fiscal year for the three months ended June 30, 2020 are not described.

(2) Consolidated financial position

	Total assets			Net assets			Equity-to-asset ratio
		million yen			million yen		%
As of June 30, 2020		16,237			6,681		41.1
As of March 31, 2020		14,646			6,635		45.3
(Reference) Equity	As of June 30, 2020	6,681	million yen	As of March 31, 2020	6,635 million yen

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2. Dividends

				Dividend per share
	1Q-end	2Q-end	3Q-end	Year-end	(Total)
	yen	yen	yen	yen	yen
Fiscal year ended	-	0.00		-		0.00		0.00
March 2020
Fiscal year ending	-
March 2021
Fiscal year ending		0.00		-		0.00		0.00
March 2021 (forecast)
(Note) Recently announced dividend forecast corrected? Yes/No: No

3. Consolidated financial forecast for fiscal year ending March 2021 (from April 1, 2020 to March 31, 2021)

(% figures show the change from the same period of previous fiscal year)

	Net sales		EBITDA		Operating income	Ordinary income	Profit attributable to	Basic earnings per
			owners of parent	share
	million yen		%	million yen		%	million yen	%	million yen	%	million yen	%	yen
Full fiscal year	3,381		32.1	1,128		52.9	150	115.4	107	-	62	-	3.02

(Note) Recently announced earnings estimate corrected? Yes/No: No

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• Explanatory notes
• 1. Changes in significant subsidiaries during the period
     (Changes in specified subsidiaries resulting in change in scope of consolidation): No
  2. Application of accounting treatments specific to preparation of quarterly consolidated financial statements: Yes
  3. Changes in accounting policies, changes in accounting estimates, and restatements
  4. 1. Changes in accounting policies due to amendment of accounting standards, etc. : No

(ii)	Changes in accounting policies other than (i)	: No
(iii)	Changes in accounting estimates	: No
(iv)	Restatements	: No

1. Number of shares issued and outstanding (common shares)

(i)	Number of shares issued and outstanding	As of June 30, 2020	20,541,572	shares	As of March 31, 2020	20,505,572	shares
	(including treasury shares) at the end of period
(ii)	Number of treasury shares at the end of period	As of June 30, 2020	84	shares	As of March 31, 2020	84	shares
(iii)	Average number of shares during period	Three months ended	20,527,188	shares	Three months ended	- shares
	(cumulative)	June 30, 2020	June 30, 2019

(Note) A quarterly consolidated financial statement has not been prepared for the three months ended June 30, 2019, so the average number of shares during period (cumulative) of the three months ended June 2019 are not described.

• This summary of financial results is not subject to quarterly review by a certified public accountant or auditing company.
• Explanation regarding appropriate use of financial forecasts, and other notes (Notes on forward-looking statements)
  The financial forecast and other forward-looking statements contained in this document are based on information currently available to and certain assumptions that are thought to be reasonable by the Company. Accordingly, such statements should not be construed as a guarantee of achieving the results by the Company. Actual business performance and other results may differ materially due to various factors.

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Quarterly Consolidated Financial Statements

(1) Quarterly Consolidated Balance Sheet

						(Thousands of yen)
				As of March 31, 2020		As of June 30, 2020
	Assets
	Current assets
	Cash and deposits			7,188,584		8,643,978
	Notes and accounts receivable - trade	482,467	367,404
	Other			361,675		244,446
	Total current assets		8,032,726	9,255,829
	Non-current assets
	Property, plant and equipment
	Machinery, equipment and vehicles,			4,620,656		4,934,413
	net
	Other, net	1,239,818	1,314,841
	Total property, plant and equipment			5,860,475		6,249,255
	Intangible assets
	Goodwill			579,101		558,519
	Other	7,611	6,978
	Total intangible assets			586,712		565,497
	Investments and other assets		166,881	167,128
	Total non-current assets			6,614,069		6,981,881
	Total assets		14,646,796	16,237,710
	Liabilities
	Current liabilities
	Accounts payable - trade			193,462		149,571
	Accounts payable - other	1,204,276	1,098,178
	Unearned revenue			1,525,681		2,185,081
	Other	365,137	363,568
	Total current liabilities			3,288,557		3,796,400
	Non-current liabilities
	Long-term borrowings			300,000		300,000
	Long-term unearned revenue			3,869,972		4,766,067
	Other			553,099		694,165
	Total non-current liabilities		4,723,072	5,760,233
	Total liabilities			8,011,629		9,556,633
						(Thousands of yen)
				As of March 31, 2020		As of June 30, 2020
	Assets
	Current assets
	Cash and deposits			7,188,584		8,643,978
	Notes and accounts receivable - trade	482,467	367,404
	Other			361,675		244,446
	Total current assets	8,032,726	9,255,829
	Non-current assets
	Property, plant and equipment
	Machinery, equipment and vehicles, net			4,620,656		4,934,413
	Other, net	1,239,818	1,314,841
	Total property, plant and equipment			5,860,475		6,249,255
	Intangible assets
	Goodwill			579,101		558,519
	Other	7,611	6,978
	Total intangible assets			586,712		565,497
	Investments and other assets	166,881	167,128
	Total non-current assets			6,614,069		6,981,881
	Total assets		14,646,796	16,237,710
-	4 -

	Liabilities
	Current liabilities
	Accounts payable - trade		193,462	149,571
	Accounts payable - other	1,204,276	1,098,178
	Unearned revenue		1,525,681	2,185,081
	Other	365,137	363,568
	Total current liabilities		3,288,557	3,796,400
	Non-current liabilities
	Long-term borrowings		300,000	300,000
	Long-term unearned revenue	3,869,972	4,766,067
	Other		553,099	694,165
	Total non-current liabilities	4,723,072	5,760,233
	Total liabilities		8,011,629	9,556,633

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				(Thousands of yen)
			As of March 31, 2020	As of June 30, 2020
	Net assets
	Shareholders' equity
	Share capital		4,272,495	4,278,457
	Capital surplus	2,433,819	2,439,782
	Retained earnings		17,489	73,194
	Treasury shares	(350)	(350)
	Total shareholders' equity		6,723,454	6,791,084
	Accumulated other comprehensive income
	Foreign currency translation adjustment		(88,288)	(110,007)
	Total accumulated other comprehensive income	(88,288)	(110,007)
	Total net assets		6,635,166	6,681,076
	Total liabilities and net assets		14,646,796	16,237,710

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(2) Quarterly Consolidated Statement of Income

			(Thousands of yen)
			Three months ended
			June 30, 2020
			(from April 1, 2020
			to June 30, 2020)
	Net sales		818,911
	Cost of sales	394,064
	Gross profit		424,846
	Selling, general and administrative expenses	323,891
	Operating profit		100,954
	Non-operating income
	Interest income		7,636
	Other	151
	Total non-operating income		7,788
	Non-operating expenses
	Interest expenses		6,449
	Share of loss of entities accounted for using equity	8,197
	method
	Other		180
	Total non-operating expenses	14,827
	Ordinary profit		93,915
	Profit before income taxes	93,915
	Income taxes		38,210
	Profit	55,704
	Profit attributable to owners of parent		55,704

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(3) Quarterly Consolidated Statements of Comprehensive Income

				(Thousands of yen)
				Three months ended
				June 30, 2020
				(from April 1, 2020
				to June 30, 2020)
	Profit			55,704
	Other comprehensive income
	Foreign currency translation adjustment			(24,829)
	Share of other comprehensive income of entities	3,109
	accounted for using equity method
	Total other comprehensive income			(21,719)
	Comprehensive income	33,985
	Comprehensive income attributable to
	Comprehensive income attributable to owners of	33,985
	parent
	Comprehensive income attributable to non-			－
	controlling interests

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