Nippon Commercial Development : Results of Operations for the First Half of the Fiscal Year Ending December 31, 2021

Results of Operations

for theFirst Half ofthe Fiscal Year Ending December 31,2021

August 12, 2021

Securities code: 3252 (TSE/NSE, First Sections) https://www.ncd-jp.com/

Contents

1. 1H of FY12/21 (January-June) Summary of Consolidated Financial Results
2. Explanation of Financial Position
3. Real Estate for Sale as of June 30, 2021-Diversification of Areas and Use
4. Acquisition of Tsunoda Corporation Limited
5. Growth of JINUSHI REIT
6. FY12/21 Consolidated Forecast
7. Appendix
8. • Alliance with a Large Leasing Company to Enhance Financial Soundness
   • Use of Long-term Leasing to Stabilize Business Operations
   • Compliance with Prime Market Listing Requirements
   • New Company Name

1. 1H of FY12/21 (January-June) Summary of Consolidated Financial Results (1)

NCD made a steady progress in selling real estate for sale to large leasing companies, backed by the growing reputation among financial institutions and investors for JINUSHI Business as a real estate investment method to generate stable profits over the long-term without a risk of closure of tenants and decrease in rent even under the COVID-19 crisis.

In May 2021, NCD accelerated purchase of real estates for JINUSHI Business through acquiring all the shares of Tsunoda Corporation Limited and making it a subsidiary to acquire excellent real estates it owned.

(Millions of yen, unless otherwise stated)

	1H FY12/20	1H FY12/21
	(Previous fiscal Year)	(Current fiscal Year)	FY12/21 Forecast
	(Apr. 2020 to Sep. 2020)	(Jan. 2021 to Jun. 2021)
Net sales	18,496	26,624	51,000
Operating profit	1,637	2,499	5,400
Ordinary profit	1,453	2,442	4,200
Profit attributable to owners of parent	1,196	1,736	2,900
Net income per share (Yen)	65.45	94.98	158.59

*From the fiscal year ended December 31, 2020, NCD has changed its financial closing date from March 31 to December 31 upon approval of the proposal: Partial Amendments to the Articles of Incorporation at the extraordinary meeting of shareholders held on December 24, 2020. NCD has also changed the financial closing date of its domestic subsidiaries from March 31 to December 31. Accordingly, applicable period for the current fiscal year is different from that of the previous fiscal year: The second quarter consolidated accounting period and the consolidated cumulative second quarter of the previous fiscal year are from July 1, 2020 to September 30, 2020 and April 1, 2020 to September 30, 2020, respectively, and those of the current fiscal year are from April 1, 2021 to June 30, 2021 and January 1, 2021 to June 30, 2021, respectively.

1. 1H of FY12/21 (January-June) Summary of Consolidated Financial Results (2)

(Millions of yen, unless otherwise stated)

FY12/20	1H FY12/21	Change
(Previous fiscal Year)	(Current fiscal Year)

	Total assets	71,220	75,756	4,535
					+
		of which cash and deposits	20,897	18,915	(1,982)
		of which real estate for sale	38,387	44,416	6,028
					+
		of which property, plant and equipment	3,436	3,493	+56
	Total liabilities	46,379	49,414	3,035
					+
		of which borrowings	43,189	41,160	(2,028)
Net assets	24,841	26,341	1,500
					+
Shareholders' equity (%)	34.9	34.8	(0.1)

1. 1H of FY12/21 (January-June) Summary of Consolidated Financial Results (3)

		(Millions of yen)	FY3/19	FY3/20	FY12/20	FY3/21	1H FY12/21
					(9-month fiscal	See note*
					period)
Net sales	39,834	74,187	29,886	50,845	26,624
Total gross profit	8,172	9,100	5,019	-	4,336
		of which recurring income	1,111	2,068	1,144	-	748
		(Comp.)	(13.6%)	(22.7%)	(22.8%)	(17.3%)
		of which one-time income	7,060	7,032	3,874	-	3,588
	(Comp.)	(86.4%)	(77.3%)	(77.2%)	(82.7%)
Operating profit	4,446	5,244	2,420	4,729	2,499
Ordinary profit	4,327	4,599	2,157	4,523	2,442
Profit attributable to owners of	2,684	3,177	1,644	3,373	1,736
parent

* FY3/21 figures

Sales and earnings for the year that ended in March 2021 are the sum of results of operations in the nine-month transitional fiscal period from April to December 2020 and in the first three months of FY12/21.