Hoosiers : Quarterly Earnings Document

First Quarter Fiscal Year Ending March 31, 2024

Consolidated Earnings Announcement (Japanese GAAP)

August 10, 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:

August 14, 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. 1st Quarter FY3/24 Consolidated Earnings Results (From April 1, 2023 to June 30, 2023)

(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

%

1st Quarter FY3/24

14,640

123.4

898

－

521

－

245

－

1st Quarter FY3/23

6,552

(31.6)

(568)

－

(855)

－

(677)

－

(Note) Comprehensive income:

1st Quarter FY3/24 ¥726 million (－%)

1st Quarter FY3/23

¥47 million (36.9%)

Earnings per Share

Diluted

Earnings per Share

Yen

Yen

1st Quarter FY3/24

6.94

6.93

1st Quarter FY3/23

(19.14)

－

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Million yen

Million yen

%

As of June 30, 2023

148,496

42,471

23.3

As of March 31, 2023

147,504

42,663

23.6

(Reference) Shareholders' equity: As of June 30, 2023 ¥34,547 million

As of March 31, 2023

¥34,794 million

2. Dividends

Dividend per Share

End of 1st Quarter

End of 2nd Quarter

End of 3rd Quarter

End of Year

Annual

Yen

Yen

Yen

Yen

Yen

FY3/23

－

24.00

－

28.00

52.00

FY3/24

－

FY3/24 (Forecast)

27.00

－

28.00

55.00

(Note) Changes in the latest forecasts released: No

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 2024 (From April 1, 2023 to March 31, 2024)

(% 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	90,000		13.5	8,600	2.1	7,500	3.0	4,800	5.3	135.14

(Note) Changes in the latest forecasts released: No

• 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: No
     2. Changes in accounting principles other than above (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatements: No

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

June 30, 2023	36,916,775	shares	March 31, 2023	36,916,775	shares
June 30, 2023	1,365,112	shares	March 31, 2023	1,537,512	shares
1st Quarter FY3/24	35,422,309	shares	1st Quarter FY3/23	35,379,263	shares

The number of treasury shares includes 498,150 shares of our company that are held by Board Benefit Trust as of the end of the first quarter under review.

*Earnings Announcement is out of scope of 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 exceeding 1,000% or negative figures for the three months ended June 30, 2023 and/or 2022 is indicated as"－."

○ Table of contents of the attached document
1. Qualitative Information on the Financial Statements for the Quarter under Review --------------------------------	2
(1)	Explanation about business performance ------------------------------------------------------------------------------	2
(2)	Qualitative information on consolidated financial position ---------------------------------------------------------	3
(3)	Qualitative information on consolidated earnings forecasts ---------------------------------------------------------	3
2. Consolidated Quarterly Financial Statements and Main Notes ---------------------------------------------------------	4
(1)	Consolidated Quarterly Balance Sheet ---------------------------------------------------------------------------------	4
(2)	Consolidated Quarterly Income Statement and Comprehensive Income Statement -----------------------------	6
(3)	Matters to be Noted regarding Consolidated Quarterly Financial Statements ------------------------------------	8
	(Notes on the premise of a going concern) ---------------------------------------------------------------------------	8
	(Notes on the significant change in the shareholders' equity amount) --------------------------------------------	8
	(Segment information, etc.) ---------------------------------------------------------------------------------------------	9
3. Other Information -------------------------------------------------------------------------------------------------------------	10
(1)	Records of Sales -----------------------------------------------------------------------------------------------------------	10
(2)	Real Estate Sales Information -------------------------------------------------------------------------------------------	11

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

1. Explanation about business performance

During the first quarter under review, the number of contracted units was 306 units, 1 building, and that of delivered units was

166 units, 2 buildings. As of the end of the first quarter, we managed 22,535 units. Consequently, as the results for the first quarter, we posted net sales of ¥14,640 million (up 123.4% year over year), operating income of ¥898 million (operating loss of ¥568 million a year earlier), ordinary income of ¥521 million (ordinary loss of ¥855 million a year earlier), and profit attributable to owners of parent of ¥245 million (loss attributable to owners of parent of ¥677 million a year earlier).

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.

Following the review of the reportable segments, effective April 1, 2023, we changed our reportable segments from five segments of "Real Estate Development," "CCRC," "Real Estate Investment," "Condominium Management and Related Services" and "Other" to four segments of "Real Estate Development," "CCRC," "Real Estate Investment" and "Condominium Management and Related Services." Segment information for the previous first quarter is prepared under the new segmentation.

(I) Real Estate Development

During the first quarter under review, the Group recorded net sales of ¥8,960 million (up 849.0% year over year) and operating income of ¥699 million (operating loss of ¥754 million a year earlier) due to a delivery of 138 condominium units such as "Duo Hills Hijiyama Residence", etc.

(II) CCRC

During the first quarter under review, the Group recorded net sales of ¥1,421 million (down 44.0% year over year) and operating income of ¥55 million (down 78.1% year over year) due to a delivery of 28 condominium units.

(III) Real Estate Investment

We recorded net sales of ¥2,408 million (up 67.5% year over year) and operating income of ¥90 million (operating loss of ¥120 million a year earlier) during the first quarter under review.

1. Real Estate Sales
   Due to the sales of inventory assets, we recorded net sales of ¥1,562 million (up 134.9% year over year).
2. Rental Revenue
   We recorded net sales of ¥765 million (up 13.5% year over year) due to the stable operation of owned income-producing properties.

(IV) Condominium Management and Related Services

We recorded net sales of ¥1,850 million (up 13.2% year over year) and operating income of ¥53 million (up 372.4% year over year) during the first quarter under review.

1. Condominium Management
   We recorded net sales of ¥524 million (up 4.8% year over year) due to the start of the new management contracting of

"Duo Hills Hijiyama Residence", etc. in condominium management.

1. Sports Club Operation Revenue
   We recorded net sales of ¥905 million (up 2.4% year over year) mainly due to the operation of sports clubs.
2. Other Income
   We recorded net sales of ¥420 million (up 68.6% year over year) in hotel business and consigned construction, etc.
3. • 2 -

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, 66.9% of the contracts have been executed.

FY3/24	Number of units	Number of contracts	Progress
to be delivered	signed
Condominium apartments	1,118	749	66.9%
Condominium apartments for	242	156	64.5%
seniors
Detached houses	55	20	36.4%
Total	1,415	925	65.3%

(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 first quarter under review, total assets amounted to ¥148,496 million (up 0.7% from March 31, 2023) mainly due to increases of real estate for sale in process and borrowings, total liabilities amounted to ¥106,025 million (up 1.1% from March 31, 2023), and total net assets amounted to ¥42,471 million (down 0.5% from March 31, 2023).

(3) Qualitative information on consolidated earnings forecasts

The earnings forecasts for the fiscal year ending March 31, 2024 remain unchanged from those announced on May 11, 2023 as results and sales status for the first quarter under review have progressed as planned and the Group's operating environment is within the scope of the assumption.

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