NEXTAGE : Consolidated Financial Results for the Six Months Ended May 31, 2021

July 5, 2021

	Consolidated Financial Results
	for the Six Months Ended May 31, 2021
	(Japanese Accounting Standards)
Name of listed company:	NEXTAGE Co., Ltd.
Stock Exchange Listings:	Tokyo, Nagoya
Stock code:	3186
URL:	https://www.nextage.jp/
Representative:	Seiji Hirota, President and CEO
Contact person:	Masashi Nomura
	Executive Officer, General Manager of Administration Division
	Tel: [phone]

Scheduled date to file Quarterly Securities Report:	July 5, 2021
Scheduled date to commence dividend payments:	－
Supplementary explanatory materials prepared:	Yes
Explanatory meeting:	Yes (For institutional investors and analysts)

(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated Financial Results for the Six Months Ended May 31, 2021 (From December 1, 2020 to May 31, 2021)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit			Profit attributable to
				owners of parent
Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%		Millions of yen		%
May 31, 2021	139,231		20.2	6,345		-	6,201		-		4,366		-
May 31, 2020	115,791		10.5	177		(94.6)	(23)		-		(148)		-
Reference: Comprehensive	income
For the six months ended May 31, 2021: ¥4,392 million, [-%]
For the six months ended May 31, 2020: ¥(156) million, [-%]
	Basic earnings	Diluted earnings
	per share		per share
Six months ended	Yen		Yen
May 31, 2021	57.91		56.76
May 31, 2020	(1.98)		-
(2) Consolidated Financial Position
	Total assets		Net assets	Equity ratio
As of	Millions of yen	Millions of yen	%
May 31, 2021	108,734		36,153	33.2
November 30, 2020	99,633		30,017	30.1

Reference: NEXTAGE shareholders' equity

As of May 31, 2021: ¥36,152 million

As of November 30, 2020: ¥30,013 million

2. Cash Dividends

		Annual dividends per share
	First	Second	Third	Fiscal	Annual
	quarter	quarter	quarter	year-end
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	0.00	-	7.00	7.00
November 30, 2020
Fiscal year ending	-	0.00
November 30, 2021
Fiscal year ending			-	7.00	7.00
November 30, 2021
(forecasts)

Note: Revision to the latest forecast of dividends: None

3. Consolidated Financial Forecasts for the Fiscal Year Ending November 30, 2021 (From December 1, 2020 to November 30, 2021)

(Percentages indicate year-on-year changes.)

								Profit attributable	Basic earnings
	Net sales		Operating profit	Ordinary profit	to owners of
		per share
								parent
	Millions		%	Millions	%	Millions	%	Millions		%	Yen
	of yen		of yen	of yen	of yen
Fiscal year ending
280,000		16.1	11,000	61.2	10,700	63.9	7,600		60.3	100.80
November 30, 2021
Note: Revision to the	latest forecast	of financial results: None

Notes:

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): None
   New: None
   Excluded: None
2. Adoption of accounting method specific to preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement of revisions
4. 1. Changes in accounting policies due to revisions to accounting standards and other guidelines: None
   2. Changes in accounting policies due to reasons other than a. above: None
   3. Changes in accounting estimates: None
   4. Restatement of revisions: None
5. Number of common shares issued
6. 1. Total number of issued shares at the end of the period (including treasury stock)

As of May 31, 2021	79,938,800 shares
As of November 30, 2020	77,360,000 shares

b. Number of shares of treasury stock at the end of the period

As of May 31, 2021	3,458,071 shares
As of November 30, 2020	3,608,571 shares

c. Average number of shares
For the six months ended May 31, 2021	75,394,204 shares
For the six months ended May 31, 2020	75,231,612 shares

(Note) The Company introduced a trust-type employee stock ownership incentive plan (E-Ship) in October 2020.

The number of shares of treasury stock at the end of the period includes the following number of shares of the Company held by the NEXTAGE Employee Stock Ownership Trust Account, a dedicated account for E-Ship set up with a trust

bank.
As of May 31, 2021	1,441,200 shares

In calculation of the average number of shares, the number of shares of treasury stock deducted from the number of common shares issued includes the following number of shares of the Company owned by the above-mentioned

account.
For the six months ended May 31, 2021	1,515,657 shares

* This report is not subject to quarterly review by certified public accountants or audit firms.

This report is not subject to quarterly review procedures under the Financial Instruments and Exchange Act, and at the time of disclosure of the report, review procedures for the quarterly financial statements under the Financial Instruments and Exchange Act have not been completed.

* Proper use of financial forecasts, and other special matters

Financial forecasts and other statements about the future that are included in this material are based on information currently in the possession of the Company and certain conditions judged reasonable by the Company. Actual results may differ significantly due to various factors. For notes on the conditions for financial forecasts and the use of financial forecasts, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached documentation.

Attachment Contents

1. Qualitative Information on Quarterly Financial Results………………………………………………….….. 2
2. 1. Explanation of Operating Results.………...…….…….……………………………………………..…....... 2
   2. Explanation of Financial Position……..………….…….………………………………………….............. 3
   3. Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information....... 3
3. Matters concerning the Summary Information (Notes)………….…………………………….……....…........... 4

(1) Changes in Significant Subsidiaries during the Consolidated Quarter……………………………………… 4

1. Adoption of Specific Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements…………………………………………………………………………………………………… 4

(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions…………………….	4
3. Quarterly Consolidated Financial Statements and Primary Notes……………………………………………….	5
(1) Quarterly Consolidated Balance Sheets…………………………………………….…….…….….….….…	5

1. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income………………………………………………………………………………………………………. 7

(3) Quarterly Consolidated Statements of Cash Flows……………………………………….……...…….……	9
(4) Notes to the Quarterly Consolidated Financial Statements……………………………….……...…….……	10
Uncertainties of entity's ability to continue as going concern…………………………………………….…	10
Segment information, etc. ……………………………………………………………………………….….. 10

Significant events after reporting period ………...………………………………………………………….. 10

1

1. Qualitative Information on Quarterly Financial Results

1. Explanation of Operating Results Status of Financial Results

During the six months ended May 31, 2021, the Japanese economy faced an extremely severe situation but is expected to start to recover as a result of various government policies, amid a phased increase in the level of socio-economic activities while preventative measures are being taken to prevent the spread of the novel coronavirus infection (COVID-19). However, attention must be paid to trends in COVID-19 in Japan and overseas, as well as the impact of volatility in global financial and capital markets.

In this environment, in the Japanese used car sales industry, domestic used car registrations from December 2020 through May 2021 were 3,339,301 vehicles (up 4.9% year on year). By vehicle type, used car registrations were 1,708,602 vehicles (up 6.0% year on year) for ordinary passenger cars and 1,630,699 vehicles (up 3.8% year on year) for kei-cars for the same period. (Source: statistical data from the Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association.)

In this business environment, based on the management philosophy of "Be loved by Customers," the NEXTAGE Group has operated stores with "Lifetime value" and "Active users" in mind.

In dealership openings, the Group opened Miyazaki-Kita Store in Miyazaki Prefecture, Nisshin-Ekimae Store in Aichi Prefecture, and Kochi Store in Kochi Prefecture in April 2021, and Makuhari Store in Chiba Prefecture in May 2021, all as general stores. In addition, the Group opened Ichinomiya-Subaru Specialist Store in Aichi Prefecture in April 2021 and UNIVERSE Chiba-Kita in Chiba Prefecture in May 2021 as specialist stores. Furthermore, the Group opened 4 vehicle purchasing specialist stores as storefront additions to new dealerships, as well as Nagakute-Green Road Store, Hamamatsu Store, Akishima Store, Saitama-Chuo Store, and Ishioka Store as vehicle purchasing stores in a standalone format.

As a result, for the six months to May 31, 2021, the Group posted net sales of ¥139,231 million (up 20.2% year on year), operating profit of ¥6,345 million (up 3,465.0%), ordinary profit of ¥6,201 million (ordinary loss of ¥23 million in the same period of the previous fiscal year) and profit attributable to owners of parent of ¥4,366 million (loss attributable to owners of parent of ¥148 million in the same period of the previous fiscal year).

Used car dealership business

In the used car dealership business, the store count as of May 31, 2021 was 88 dealership bases (comprising 138 storefronts). New store openings consisted of 4 dealership bases (5 storefronts) in the Kanto-Koshinetsu region, 4 dealership bases (4 storefronts) in the Tokai-Hokuriku region, 1 dealership base (1 storefront) in the Chugoku-Shikoku region, and 1 dealership base (1 storefront) in the Kyushu-Okinawa region. In addition, the Group opened 4 vehicle purchasing specialist stores as storefront additions.

New car dealership business

In the new car dealership business, the store count as of May 31, 2021 was 21 dealership bases (comprising 23 storefronts).

As a result, the store count as of May 31, 2021 was 109 dealership bases (comprising 161 storefronts).

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