Nippon Commercial Development : Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2021 (Six Months Ended June 30, 2021)

		August 12, 2021
	Summary of Consolidated Financial Results for the Second Quarter
of the Fiscal Year Ending December 31, 2021 (Six Months Ended June 30, 2021)
Company name: Nippon Commercial Development Co., Ltd.	[Japanese GAAP]
Listing: TSE/NSE, First Sections
Securities code:	3252	URL: https://www.ncd-jp.com
Representative: Tetsuya Matsuoka, President
Contact:	Takahiro Tanaka, General Manager of Accounting Division
	Tel: [phone]

Scheduled date of filing of Quarterly Report:	August 13, 2021
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes

Holding of quarterly financial results meeting:

Yes (for institutional investors and analysts)

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended June 30, 2021 (January 1, 2021 - June 30, 2021)

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Six months ended Jun. 30, 2021	Million yen	%	Million yen	%	Million yen	%	Million yen	%
26,624	-	2,499	-	2,442	-	1,736	-
Six months ended Sep. 30, 2020	18,496	15.3	1,637	78.4	1,453	159.9	1,196	141.0

Note: Comprehensive income (million yen)	Six months ended Jun. 30, 2021:	1,957	(-%)
		Six months ended Sep. 30, 2020:	1,359	(up 306.5%)
	Net income per share	Diluted net income per
			share
Six months ended Jun. 30, 2021		Yen	Yen
	94.98	-
Six months ended Sep. 30, 2020		65.45	-
From the fiscal year ended Dec. 31,	2020, Nippon Commercial	Development Co., Ltd. (hereinafter, "the Company") 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. The Company 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. Therefore, the year-on-year changes of results of operations for the six months ended June 30, 2021 have been omitted.

(2) Consolidated financial position

	Total assets	Net assets		Equity ratio
As of Jun. 30, 2021	Million yen	Million yen		%
	75,756	26,341		34.8
As of Dec. 31, 2020		71,220	24,841		34.9
Reference: Shareholders' equity (million yen)	As of Jun. 30, 2021: 26,341	As of Dec. 31, 2020: 24,841

2. Dividends

					Dividend per share
	1Q-end		2Q-end		3Q-end	Year-end	Total
	Yen		Yen		Yen	Yen	Yen
Fiscal year ended Dec. 31, 2020		-		0.00	-		25.00		25.00
Fiscal year ending Dec. 31, 2021		-		0.00
Fiscal year ending Dec. 31, 2021					-		50.00		50.00
(forecasts)
Note: Revisions to the most recently	announced dividend	forecast: None

3. Consolidated Forecast for the Fiscal Year Ending December 31, 2021 (January 1, 2021 - December 31, 2021)

(Percentages represent year-on-year changes)

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

Note: Revisions to the most recently announced consolidated forecast: None

The fiscal year ended December 31, 2020 covers the period of nine months as a transitional period for a change in the financial closing date. Therefore, we have omitted the year-on-year change figures.

• Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of consolidation): None

Newly added: -

Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting estimates, and restatements

1)	Changes in accounting policies due to revisions in accounting standards, others:	None
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting estimates:	None
4)	Restatements:	None

(4) Number of outstanding shares (common shares)

1) Number of shares outstanding at the end of the period (including treasury shares)

As of Jun. 30, 2021:	18,285,800 shares	As of Dec. 31, 2020:	18,285,800 shares
2) Number of treasury shares at the end of the period
As of Jun. 30, 2021:	141 shares	As of Dec. 31, 2020:	141 shares
3) Average number of shares outstanding during the period
Six months ended Jun. 30, 2021:	18,285,659 shares	Six months ended Sep. 30, 2020:	18,285,659 shares

• The current quarterly financial report is not subject to quarterly review by an auditing firm.
• Cautionary statement with respect to forward-looking statements, and other special items

Earnings forecasts regarding future performance in this material are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ significantly from these forecasts for a number of factors. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 of the attachments for assumptions for forecasts and notes of caution for usage.

How to view presentation materials

The Company plans to hold a financial results meeting for institutional investors and analysts on Monday, September 6, 2021. Materials to be distributed at this event will be available on the Company's website immediately thereafter.

Change in presentation of monetary units

Amounts in the consolidated financial statements and segment information, presented in "thousands of yen" in prior periods, are presented in "millions of yen" effective from the first quarter of the current fiscal year. The aforementioned amounts for the first half and full year of the previous fiscal year are also restated in order to facilitate year-on-year comparisons.

Nippon Commercial Development Co., Ltd. (3252) Financial Results for the Second Quarter of FY12/21

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Forecast and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income
	For the Six-month Period	6
	Quarterly Consolidated Statement of Comprehensive Income
	For the Six-month Period	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	Going Concern Assumption	8
	Significant Changes in Shareholders' Equity	8
	Changes in the Scope of Consolidation or Application of the Equity Method	8
	Segment and Other Information	8
	Business Combinations	9

1

Nippon Commercial Development Co., Ltd. (3252) Financial Results for the First Quarter of FY12/21

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

From the fiscal year ended December 31, 2020, Nippon Commercial Development Co., Ltd. (hereinafter "the Company") 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 General Meeting of Shareholders held on December 24, 2020. The Company 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. Therefore, the year-on-year comparison of results of operations has been omitted.

In the first half of the fiscal year ending December 31, 2021 (hereinafter, "the period under review"), the Japanese economy remained weak as the stagnated social and economic activities and the deteriorated employment environment exerted downward pressure on personal consumption under the state of emergency re-declared following the resurgence of the COVID-19 infection in April. While widespread vaccinations against COVID-19 were expected to gradually resume economic activity and boost the economic recovery trend, the economic outlook remained uncertain with signs of an increase in the number of new infections caused primarily by the new variants found at home and abroad.

In the Japanese real estate and real estate finance industries, an increase in vacancy rates and a decline in rental rates in urban areas have become obvious, affected by the shrinkage of office space or consolidation or reduction of bases in the background of widespread teleworking due to the expansion of the COVID-19 infection. However, the overall market for real estate investment has remained stable backed by the continued positive mindset of investors and low interest rates.

Please note that 80% of the tenants of our JINUSHI Business belong to the industry sectors (including the logistics industry) that deal in daily necessities. Such tenants are generally performing well due to the consumption from staying at home.

Under these circumstances, the Nippon Commercial Development Group (hereinafter "the Group") made a steady progress in selling real estate for sale to major 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 this year, we accelerated purchase of real estates for JINUSHI Business through acquiring all the shares issued by Tsunoda Corporation Limited and making it a subsidiary to acquire excellent real estates it owned.

As a result, the Group reported net sales for the period under review of 26,624 million yen, operating profit of 2,499 million yen, ordinary profit of 2,442 million yen, and profit attributable to owners of parent of 1,736 million yen.

Results by business segment were as follows:

1. Real Estate Investment Business
   The segment reported sales of 26,029 million yen with segment operating profit of 3,798 million yen.
2. Subleasing, Leasing and Fund Fee Business
   The segment reported sales of 590 million yen with segment operating profit of 404 million yen.
3. Planning and Brokerage Business
   The segment reported sales of 5 million yen with segment operating profit of 5 million yen.

2

Nippon Commercial Development Co., Ltd. (3252) Financial Results for the First Quarter of FY12/21

1. Explanation of Financial Position Assets, Liabilities and Net Assets

Total assets increased 4,535 million yen from the end of the previous fiscal year to 75,756 million yen at the end of the period under review. This increase was attributable mainly to an increase of 6,028 million yen in real estate for sale, which was partially offset by a decrease of 1,982 million yen in cash and deposits, both as a result of acquiring Tsunoda Corporation Limited to make it a subsidiary. More specifically, the balance of real estates for sale was reduced by steady real estate sales to JINUSHI Private REIT Investment Corporation and others, and increased by 9,894 million yen as a result of making Tsunoda Corporation Limited a subsidiary.

Total liabilities increased 3,035 million yen from the end of the previous fiscal year to 49,414 million yen. This increase was attributable mainly to an increase of 2,875 million yen in deferred tax liabilities as a result of consolidating Tsunoda Corporation Limited.

Net assets increased 1,500 million yen from the end of the previous fiscal year to 26,341 million yen. This increase was attributable mainly to the profit attributable to owners of parent of 1,736 million yen, which was partially offset by the distribution of dividends of surplus of 457 million yen. Consequently, the equity ratio at the end of the period under review was 34.8%.

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

Both net sales and profits for the period under review have progressed as planned. As we expect that going forward net sales and profits will progress at the same level presented in "3. Consolidated Forecast for the Fiscal Year Ending December 31, 2021 (January 1, 2021 - December 31, 2021)" in "Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2020 [Japanese GAAP]" announced on February 10, 2021, we have left the forecast unchanged.

For more details on the consolidated forecast for the fiscal year ending December 31, 2021, please refer to "Results of Operations for the First Half of the Fiscal Year Ending December 31, 2021" (available on our website (*)), which is the supplementary materials for the Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending December 31, 2021.

(*) https://www.ncd-jp.com/ (IR Information, IR News)

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