Financial Highlights for the 2nd Quarter Cumulative of Fiscal 2021

Financial Highlights for the 2nd Quarter Cumulative of Fiscal 2021

(Apr. 1, 2021- Sep. 30, 2021)

DAIBIRU CORPORATION

(Unaudited Translation of 'Kessan Tanshin,' Provided for Reference Only)

October 29, 2021

Name of the Company: DAIBIRU CORPORATION

Listing of Stock:	First Section of Tokyo Stock Exchange
Securities Code:	8806
URL:	https://www.daibiru.co.jp/english/
Representative:	Toshiyuki Sonobe	Representative Director, President Chief Executive Officer
Inquiries:	Kenichi Sekiguchi	Executive Officer, General Manager of the Finance & Accounting Department

Scheduled Date of Quarterly Report: Nov. 12, 2021

Scheduled Date of Commencing Dividend Payments: Dec. 3, 2021

Availability of Supplementary Briefing Material on Quarterly Financial Results: No

Schedule of Analyst Meeting: No

(Figures are rounded down to the nearest million yen)

1. Consolidated Results for 2Q Fiscal 2021 (Apr. 1, 2021 to Sep. 30, 2021)

(1) Consolidated Results				(% indicates changes from the previous corresponding period.)
		Operating revenue	Operating profit	Ordinary profit			Profit attributable to
				owners of parent
		Million yen	%	Million yen		%		Million yen	%			Million yen		%
2Q Fiscal 2021		20,923	(1.5)	6,284			(1.9)			6,124	(1.3)			4,350		(6.3)
2Q Fiscal 2020		21,245	1.2	6,403			7.2			6,202	11.3			4,644		23.9
(Note) Comprehensive income:	2Q Fiscal 2021:	¥			6,647 million	[	(1.6) %]
		2Q Fiscal 2020:	¥			6,758 million	[	112.5%]
		Basic earnings	Diluted earnings
		per share	per share
				Yen				Yen
2Q Fiscal 2021			37.94				-
2Q Fiscal 2020			40.02				-
(2) Consolidated Financial Position
		Total assets	Net assets			Capital adequacy ratio
As of			Million yen			Million yen			%
Sep. 30, 2021			390,547	172,717				43.7
March 31, 2021			393,928	167,346				42.0
(Reference) Equity: Sep. 30, 2021:	¥	170,683 million
March 31, 2021:	¥	165,367 million
2. Dividends
							Annual dividends
		1Q			2Q		3Q			4Q	Total
			Yen		Yen				Yen		Yen			Yen
Fiscal 2020			-		10.50					-		11.50			22.00
Fiscal 2021			-		10.50
Fiscal 2021 (Forecast)										-		10.50			21.00
(Note) Revision to the forecast	for dividends announced most recently:	No

3. Forecast of Consolidated Financial Results for Fiscal 2021 (Apr. 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Operating revenue	Operating profit	Ordinary profit	Profit attributable to	Basic earnings
	owners of parent	per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Fiscal 2021	41,500	(3.3)	10,500	(13.2)	10,000	(14.3)	7,000	(17.0)	61.04

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

1. Changes in significant subsidiaries during the period under review(changes in specified subsidiaries resulting in changes in scope of consolidation): No

New	-	(Company name:	)
Exclusion:	-	(Company name:	)
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

	Sep. 30, 2021:	115,051,049	shares
	March 31, 2021:	115,051,049	shares
2)	Total number of treasury shares at the end of the period:
	Sep. 30, 2021:	367,282	shares
	March 31, 2021:	397,284	shares
3)	Average number of shares during the period:
	2Q Fiscal 2021:	114,666,604	shares
	2Q Fiscal 2020:	116,052,728	shares

• Financial results are not subject to auditing.
• Explanation of the Proper Use of Performance Forecast and Other Notes

Information described in this document, such as projections, was prepared based on available information at the time of the release

of this document and certain assumptions that the Company judged as rational. Actual results may be significantly different due to

various factors. For the notes regarding the assumed conditions for the financial result forecast and the usage of the forecast, please

refer to "(3) Explanation on the Forward-looking Information such as Forecast of Consolidated Results" on page 3 of Attached

Reference.

Table of Contents of Attached Reference
1. Qualitative Information on Quarterly Financial Results....................................................................................................	2
(1)	Explanation on Results of Operations..........................................................................................................................	2
(2)	Explanation on Financial Position................................................................................................................................	3
(3)	Explanation on the Forward-looking Information such as Forecast of Consolidated Results.....................................	3
2. Quarterly Consolidated Financial Statements and Main Notes.........................................................................................	4
(1)	Quarterly Consolidated Balance Sheets.......................................................................................................................	4
(2)	Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income..............................................	6
	Quarterly Consolidated Statements of Income.............................................................................................................	6
	Quarterly Consolidated Statements of Comprehensive Income...................................................................................	7
(3)	Quarterly Consolidated Statements of Cash Flows......................................................................................................	8
(4)	Notes to Quarterly Consolidated Financial Statements................................................................................................	9
(Going Concern Assumption)........................................................................................................................................	9
(Significant Changes in Shareholder's Equity)..............................................................................................................	9
(Changes in Accounting Policies)..................................................................................................................................	9
(Segment Information)...................................................................................................................................................	10

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1.Qualitative Information on Quarterly Financial Results

(1) Explanation on Results of Operations

In the six months ended September 30, 2021, continuing on from the previous term, the Japanese economy saw significant restrictions placed on both corporate activities and individual behavior in order to prevent the spread of the novel coronavirus infection (COVID-19) under the declaration of a state of emergency and quasi-state of emergency, lasting for a period spanning six months. As we come to the end of the second quarter of the fiscal year, with the rapid progress seen in the vaccination program and a significant decrease in the number of infections, the economy is expected to see recovery, particularly in the commercial sector; however, the outlook continues to remain unpredictable.

For the office leasing segment, momentum has grown for companies to review their use of offices, including in finding new ways of working, such as teleworking and online meetings, in such a way that the office spaces can be adapted to a situation of living with COVID-19. In the markets in which the properties owned by Daibiru are located, although the extent differs depending on the business district, the vacancy rates are increasing overall, and rent rates are trending weaker.

Amid such an environment, putting customers'safety and health first, the Daibiru Group continued to promote activities aimed at expanding tenant services and improving building management quality while implementing finely-tuned measures including countermeasures against COVID-19, in an effort to differentiate Daibiru properties from competitors'buildings. As a result, despite being in the midst of the COVID-19 epidemic, we were able to maintain high occupancy rates above the market average. Further, as part of our response to social demands from national and local governments, during this period, in addition to optimizing rent rates to prop up operating revenue, we also deferred or reduced rent in individual cases for certain commercial tenants who refrained from business activities in order to prevent the spread of infection.

With respect to the medium-term management plan "Design 100" Project Phase-II, although progress has been in no small way impacted by COVID-19, steady progress has been made on the plan to reconstruct the Midosuji Daibiru Building and Yaesu Daibiru Building as part of the "Investment to enhance the competitiveness of existing assets," which is one of Daibiru's priority strategies. Demolition work on the Midosuji Daibiru Building is scheduled to be complete and new construction work to get underway in December of this year.

With regard to operating results in the six months ended September 30, 2021, operating revenue decreased ¥322 million, or 1.5%, year on year to ¥20,923 million, and operating profit decreased ¥119 million, or 1.9%, to ¥6,284 million.

As for non-operating income and expenses, ordinary profit decreased ¥77 million, or 1.3%, year on year to ¥6,124 million, due to a decrease in operating profit, despite a decrease in interest expenses.

With regard to extraordinary income and losses, for the six months ended September 30, 2021, gain on sales of investment securities of ¥618 million was recorded under extraordinary income, and a total of ¥412 million was recorded for loss on building reconstruction and loss on retirement of non-current assets under extraordinary losses. In the same period of the previous fiscal year, gain on sales of investment securities of ¥599 million was recorded under extraordinary income, and a total of ¥119 million was recorded for loss on building reconstruction and loss on retirement of non-current assets under extraordinary losses.

As a result, profit attributable to owners of parent decreased ¥293 million, or 6.3%, year on year to ¥4,350 million.

Furthermore, the Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the first quarter of the current fiscal year.

Operating results by segment were as follows.

1) Leasing

In this segment, which accounts for 78.8% of consolidated operating revenue, operating revenue decreased ¥428 million, or 2.5%, year on year to ¥16,497 million due mainly to decreased revenue attributable to reconstructed buildings. In terms of expenses, although operating expenses decreased due primarily to decreases in repair expenses and utilities expenses, operating profit decreased ¥183 million, or 2.6%, year on year to ¥6,834 million.

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2) Facility Management

In this segment, which accounts for 19.3% of consolidated operating revenue, despite contributions from Nowatec Co., Ltd., which became a subsidiary in the previous fiscal year, operating revenue decreased ¥24 million, or 0.6%, year on year to ¥4,038 million resulting from the impact of the cancellation of contracts for certain commissioned properties. Operating profit increased ¥129 million, or 86.0%, year on year to ¥279 million due mainly to a reduction in operating expenses.

3) Other Businesses

In this segment, which accounts for 1.9% of consolidated operating revenue, operating revenue increased ¥130 million, or 50.7%, year on year to ¥387 million due mainly to an increase in construction subcontracting values, and operating profit increased ¥7 million, or 12.8%, year on year to ¥70 million.

1. Explanation on Financial Position

1. Assets, Liabilities and Net assets

Total assets at the end of the second quarter of the current fiscal year were ¥390,547 million, a decrease of ¥3,380 million from the end of the previous fiscal year. Current assets decreased ¥3,337 million from the end of the previous fiscal year to ¥18,507 million. This is mainly due to a decrease in cash and deposits. Non-current assets decreased ¥43 million from the end of the previous fiscal year to ¥372,039 million. This is mainly due to a net decrease owing to an increase in investment securities associated with a rise in stock prices and a decrease in buildings and structures resulting from depreciation, etc.

Liabilities at the end of the second quarter of the current fiscal year were ¥217,829 million, a decrease of ¥8,752 million from the end of the previous fiscal year. Current liabilities decreased ¥1,983 million from the end of the previous fiscal year to ¥25,642 million. This is mainly due to a net decrease owing to an increase in current portion of bonds payable and a decrease in current portion of long-term borrowings. Non-current liabilities decreased ¥6,768 million from the end of the previous fiscal year to ¥192,187 million. This is mainly due to decreases in bonds payable and long-term borrowings. Total interest bearing debt decreased ¥6,684 million from the end of the previous fiscal year to ¥159,724 million.

Net assets at the end of the second quarter of the current fiscal year increased ¥5,371 million from the end of the previous fiscal year to ¥172,717 million. This was mainly due to increases in retained earnings and foreign currency translation adjustment.

2) Cash Flows

Cash and cash equivalents at the end of the second quarter of the current fiscal year were ¥15,471 million, a decrease of ¥2,417 million from the end of the previous fiscal year. Changes in cash flows and their causes are explained below:

(Cash flows from operating activities)

Net cash provided by operating activities in the six months ended September 30, 2021 was ¥6,554 million, a decrease of ¥855million from the same period of the previous fiscal year. This is mainly due to decreases in profit before income taxes and decrease/increase in consumption taxes receivable/payable.

(Cash flows from investing activities)

Net cash used in investing activities in the six months ended September 30, 2021 was ¥1,157 million. This is mainly due to purchases of property, plant and equipment. In the same period of the previous fiscal year, net cash provided by investing activities was ¥792 million, due mainly to proceeds from sales of investment securities.

(Cash flows from financing activities)

Net cash used in financing activities in the six months ended September 30, 2021 was ¥8,001 million, an increase of ¥6,136 million from the same period of the previous fiscal year. This is mainly due to repayments of long-term borrowings.

(3) Explanation on the Forward-looking Information such as Forecast of Consolidated Results

Figures announced on April 30, 2021 have not been revised.

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