Hoosiers : Quarterly Earnings Document

Third Quarter Fiscal Year Ending March 31, 2023

Consolidated Earnings Announcement (Japanese GAAP)

		February 9, 2023
Company Name: Hoosiers Holdings Co., Ltd.	Listed market: Tokyo Stock Exchange Prime Market
Stock Code:	3284	URL: https://www.hoosiers.co.jp/
	President and Representative Director,
Representative: (Title) Executive Officer	(Name) Eiichi Ogawa
	Head of Business Planning Section,
Contact:	(Title) Executive Officer	(Name) Yoshiro Narukami Telephone: [phone]
Scheduled date to file quarterly report:	February 10, 2023
Scheduled date to commence dividend payment:	-
Preparation of supplemental information of quarterly financial results: Yes
Holding of quarterly financial results briefing:	No

(Figures are rounded down to the nearest million yen)

1. 3rd Quarter FY3/23 Consolidated Earnings Results (April 1, 2022 to December 31, 2022)

	(1) Consolidated Earnings (Cumulative)			(% indicates changes from the same period of the previous fiscal year)
			Net Sales		Operating Income	Ordinary Income		Profit Attributable to
					Owners of Parent
			Million yen		%	Million yen		%	Million yen		%		Million yen		%
	3rd Quarter FY3/23	41,352		(9.9)	2,928		(15.4)	2,393		(12.7)		1,562		(0.5)
	3rd Quarter FY3/22	45,876		(11.2)	3,462		13.5	2,741		0.7		1,569		(28.6)
	(Note) Comprehensive income:	3rd Quarter FY3/23	¥2,580 million	(23.6%)	3rd Quarter FY3/22	¥2,087	million (10.9%)
			Earnings per Share	Diluted
			Earnings per Share
					Yen			Yen
	3rd Quarter FY3/23				44.17		44.10
	3rd Quarter FY3/22				44.37		44.31
	(2) Consolidated Financial Position
			Total Assets	Net Assets	Equity Ratio
				Million yen			Million yen			%
	As of December 31, 2022		143,479		39,909			22.4
	As of March 31, 2022		127,905		38,960			24.4

(Reference) Shareholders' equity: As of December 31, 2022 ¥32,079 million As of March 31, 2022 ¥31,263 million

2. Dividends

			Dividend per Share
	End of	End of	End of		End of Year	Annual
	1st Quarter	2nd Quarter	3rd Quarter
	Yen	Yen	Yen		Yen	Yen
FY3/22	－	17.00	－		19.00	36.00
FY3/23	－	24.00	－
FY3/23 (Forecast)					24.00	48.00

(Note) Changes in the latest forecasts released: No

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 2023 (From April 1, 2022 to March 31, 2023)

(% indicates changes from the same period of the previous fiscal year)

	Net Sales		Operating Income	Ordinary Income	Profit Attributable to	Earnings per Share
								Owners of Parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	80,000		0.6	7,300	9.0	6,500	14.2	4,200	36.9	118.71

(Note) Changes in the latest forecasts released: No

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• Matters to be noted
• 1. Changes in important subsidiaries during the quarter under review: No
  2. Application of specific accounting treatments in preparing the quarterly consolidated financial statements: No
  3. Changes in accounting principles, changes in accounting estimates and retrospective restatements
  4. 1. Changes in accounting principles in accordance with revisions to accounting and other standards: Yes
     2. Changes in accounting principles other than above (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatements: No

Note: Please refer to "2. Consolidated Quarterly Financial Statements and Main Notes, (3) Matters to be Noted regarding Consolidated Quarterly Financial Statements (Changes in accounting principles)" on page 10.

1. Outstanding shares (Common stock)
2. 1. Number of outstanding shares at the end of period (Including treasury shares)
   2. Number of treasury shares at the end of period
   3. Average number of shares during the period (Quarterly cumulative period)

December 31, 2022	36,916,775	shares	March 31, 2022	36,916,775	shares
December 31, 2022	1,537,512	shares	March 31, 2022	1,537,512	shares
3rd Quarter FY3/23	35,379,263	shares	3rd Quarter FY3/22	35,379,263	shares

The number of treasury shares includes 570,550 shares of our company that are held by Board Benefit Trust as of the end of the third quarter under review.

*Earnings Announcement is out of scope of quarterly reviews by certified public accountants or an audit corporation.

*Explanatory statement regarding the proper use of financial forecasts and other notes

All forecasts provided in this document are based on certain reasonable assumptions and beliefs in light of information currently available and, therefore, it is not intended for guaranteeing to meet them. Actual results may differ from our forecasts due to various unforeseen reasons.

*The year-on-year percentage change is indicated as"-" if figures for the nine months ended December 31, 2022 and/or 2021 were negative.

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○ Table of contents of the attached document

1. Qualitative Information on the Financial Statements for the Quarter under Review ………………………………………	4
(1) Explanation about business performance …………………………………………………………………….….………	4
(2) Qualitative information on consolidated financial position …………………………………………………………….	5
(3) Qualitative information on consolidated earnings forecasts ……………………………………………………………...	5
2. Consolidated Quarterly Financial Statements and Main Notes ………………………………………………………………	6
(1) Consolidated Quarterly Balance Sheet …………………………………………………………………………………	6
(2) Consolidated Quarterly Income Statement and Comprehensive Income Statement ………………………………...…	8
(3) Matters to be Noted regarding Consolidated Quarterly Financial Statements………………………………….…………	10
(Notes on the premise of a going concern) …………………………………………………………………………...…	10
(Notes on the significant change in the shareholders' equity amount) ………………………………………………...	10
(Changes in accounting principles) ……………………………………………………………………………………	10
(Segment information, etc.) ……………………………………………………………………………………………	10
3. Other Information ……………………………………………………………………………………………………….……	12
(1) Records of Sales …………………………………………………………………………………………………………	12
(2) Real Estate Sales Information ………………………………………………………………………………………….…	13

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1. Qualitative Information on the Financial Statements for the Quarter under Review

1. Explanation about business performance

During the third quarter under review, the number of contracted units was 1,071 and 5 buildings, and that of delivered units was 761 and 5 buildings. As of the end of the third quarter, we managed 20,236 units. Consequently, as the results for the third quarter, we posted net sales of ¥41,352 million (down 9.9% year over year), operating income of ¥2,928 million (down 15.4% year over year), ordinary income of ¥2,393 million (down 12.7 % year over year), and profit attributable to owners of parent of ¥1,562 million (down 0.5 % year over year).

In our Real Estate Development, CCRC, and Real Estate Investment, sales are booked upon delivery to customers, not at the time purchase and sales contracts are executed. As a result, this tends to cause a deviation in quarterly sales depending on the timing of delivery.

Results by segment are as follows.

(I) Real Estate Development

During the third quarter under review, the Group recorded net sales of ¥21,237 million (up 15.8% year over year) and operating income of ¥1,833 million (up 179.8% year over year) due to a delivery of 536 condominium units such as "Mid Rise Tower Tajimi," "Duo Hills Higashi Kawaguchi Terrace," and "Duo Hills Hachinohe The Residence," etc.

(II) CCRC

During the third quarter under review, the Group recorded net sales of ¥10,222 million (down 38.0% year over year) and operating income of ¥1,234 million (down 40.0% year over year) due to a delivery of 218 condominium units such as "Duo Scene Egota-no-Mori Park," etc.

(III) Real Estate Investment

We recorded net sales of ¥4,802 million (down 23.4% year over year) and operating loss of ¥458 million (operating income of ¥364 million a year earlier) during the third quarter under review.

1. Real Estate Sales
   Due to the sales of inventory assets, we recorded net sales of ¥2,380 million (down 39.9% year over year).
2. Rental Revenue
   We recorded net sales of ¥2,137 million (up 6.5% year over year) due to the stable operation of owned income-producing properties.

(IV) Condominium Management and Related Services

We recorded net sales of ¥5,056 million (up 7.0% year over year) and operating income of ¥215 million (down 3.8% year over year) during the third quarter under review.

1. 1. Condominium Management
      We recorded net sales of ¥1,500 million (up 4.7% year over year) due to the start of the new management contracting of "Mid Rise Tower Tajimi," "Duo Hills Higashi Kawaguchi Terrace," and "Duo Hills Hachinohe The Residence," etc. in condominium management.
   2. Sports Club Operation Revenue
      We recorded net sales of ¥2,690 million (up 3.2% year over year) mainly due to the operation of sports clubs.
   3. Other Income
      We recorded net sales of ¥865 million (up 26.2% year over year) in hotel business and consigned construction, etc.
2. Other

We recorded net sales of ¥34 million (down 34.5% year over year) and operating income of ¥5 million (down 66.7% year over year) through PFI operations.

The progress status of the annual delivery plan in the Real Estate Sales is shown below. In Condominium apartments, the main business of the Group, 95.4% of the contracts have been executed.

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FY3/23	Number of units	Number of contracts	Progress
to be delivered	signed
Condominium apartments	1,034	986	95.4%
Condominium apartments for	310	265	85.5%
seniors
Detached houses	46	25	54.3%
Total	1,390	1,276	91.8%

(Notes) 1. "Condominium apartments" show the total number of family condominiums and compact condominiums.

1. 2. The number of units for joint venture properties is shown with consideration for the joint venture ratio (by rounding down to the nearest integer).

2. Qualitative information on consolidated financial position

As of the end of the third quarter under review, total assets amounted to ¥143,479 million (up 12.2% from March 31, 2022), total liabilities amounted to ¥103,570 million (up 16.4% from March 31, 2022), and total net assets amounted to ¥39,909 million (up 2.4% from March 31, 2022), mainly due to an increase in consolidated subsidiaries through M&A.

(3) Qualitative information on consolidated earnings forecasts

The earnings forecasts for the fiscal year ending March 31, 2023 remain unchanged from those announced on May 12, 2022 as results and sales status for the third quarter under review have progressed as planned and the Group's operating environment is within the scope of the assumption.

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