Nippon Commercial Development : Summary of Consolidated Financial Results for the Nine Months Ended September 30,2021(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 Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

				November 12, 2021
Company name:	Nippon Commercial Development Co., Ltd.
Stock exchange listing:	Tokyo, Nagoya
Stock code:	3252	URL https://www.ncd-jp.com
Representative:	Chief Executive Officer	Tetsuya Matsuoka
Inquiries:	General Manager Accounting Dept.	Takahiro Tanaka	TEL [phone]
Scheduled date to file Quarterly Securities Report:	November 15, 2021
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)

1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)

(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
	Net sales				Operating profit	Ordinary profit		Profit attributable to
						owners of parent
	Millions of yen		%	Millions of yen	%	Millions of yen			%	Millions of yen		%
Nine months ended September 30, 2021	39,685		-		3,594	-		3,660			-		2,591		-
Nine months ended September 29, 2020	-		-			-	-		-			-		-		-
	Earnings per share		Diluted earnings per share
			Yen					Yen
Nine months ended September 30, 2021			141.71					-
Nine months ended September 29, 2020				-					-
(2) Consolidated financial position
	Total assets				Net assets	Equity ratio
	Millions of yen			Millions of yen					%
As of September 30, 2021		77,751					27,063				34.8
As of December 31, 2020		71,220					24,841				34.9
2. Cash dividends
						Annual dividends per share
	1st quarter-end	2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended December 31, 2020		-			0.00			-				25.00			25.00
Year ending December 31, 2021		-			0.00			-
Year ending December 31, 2021 (Forecast)													50.00			50.00

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	51,000	-	5,400		-	4,200		-	2,900		-	158.59

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4. Notes

1. Changes in significant subsidiaries during the nine months ended September 30, 2021 (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

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:	No
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 September 30, 2021	18,285,800	shares	As of December 31, 2020	18,285,800	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	141	shares	As of December 31, 2020	141	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2021	18,285,659	shares	Nine months ended September 29, 2020	-	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2020	As of September 30, 2021
Assets
Current assets
Cash and deposits	20,897	21,710
Operating accounts receivable	198	101
Real estate for sale	38,387	43,209
Advance payments - trade	371	283
Prepaid expenses	102	188
Other	116	60
Total current assets	60,074	65,553
Non-current assets
Property, plant and equipment
Buildings and structures, net	390	370
Vehicles, tools, furniture and fixtures, net	60	58
Land	2,883	2,961
Leased assets, net	102	86
Total property, plant and equipment	3,436	3,476
Intangible assets
Other	54	256
Total intangible assets	54	256
Investments and other assets
Investment securities	293	602
Shares of subsidiaries and associates	6,175	6,373
Investments in capital of subsidiaries and associates	4	4
Investments in capital	505	673
Leasehold and guarantee deposits	497	619
Long-term prepaid expenses	91	66
Other	175	214
Allowance for doubtful accounts	(89)	(89)
Total investments and other assets	7,654	8,463
Total non-current assets	11,146	12,197
Total assets		71,220	77,751

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			(Millions of yen)
		As of December 31, 2020	As of September 30, 2021
Liabilities
Current liabilities
Trade accounts payable	187	258
Short-term borrowings	797	196
Current portion of long-term borrowings	2,034	935
Accounts payable - other	383	317
Income taxes payable	5	3,065
Accrued consumption taxes	4	40
Advances received	20	973
Current portion of guarantee deposits received	1,634	1,701
Other	333	299
Total current liabilities	5,400	7,787
Non-current liabilities
Long-term borrowings	40,357	41,455
Long-term leasehold and guarantee deposits received	163	319
Deferred tax liabilities	234	878
Other	222	246
Total non-current liabilities	40,978	42,900
Total liabilities	46,379	50,688
Net assets
Shareholders' equity
Share capital	3,048	3,048
Capital surplus	4,657	4,657
Retained earnings	17,634	19,768
Treasury shares	(0)	(0)
Total shareholders' equity	25,341	27,475
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(32)	(17)
Foreign currency translation adjustment	(467)	(394)
Total accumulated other comprehensive income	(499)	(412)
Total net assets	24,841	27,063
Total liabilities and net assets		71,220	77,751

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

Consolidated statements of income (cumulative)

		(Millions of yen)
		Nine months ended
		September 30, 2021
Net sales	39,685
Cost of sales	33,329
Gross profit	6,355
Selling, general and administrative expenses	2,761
Operating profit	3,594
Non-operating income
Interest income	0
Interest on securities	4
Foreign exchange gains	127
Share of profit of entities accounted for using equity method	325
Outsourcing service income	84
Other	13
Total non-operating income	555
Non-operating expenses
Interest expenses	320
Financing expenses	167
Other	1
Total non-operating expenses	489
Ordinary profit	3,660
Profit before distributions of profit or loss on silent partnerships	3,660
and income taxes
Distributions of profit or loss on silent partnerships	0
Profit before income taxes	3,659
Income taxes - current	3,343
Income taxes - deferred	(2,274)
Total income taxes	1,068
Profit	2,591
Profit attributable to non-controlling interests	-
Profit attributable to owners of parent		2,591

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