Hoosiers : First Quarter Fiscal Year Ending March 31, 2022 Consolidated Earnings Announcement (Japanese GAAP)

First Quarter Fiscal Year Ending March 31, 2022

Consolidated Earnings Announcement (Japanese GAAP)

		August 5, 2021
Company Name: Hoosiers Holdings	Listed market: Tokyo Stock Exchange First Section
Stock Code:	3284	URL: https://www.hoosiers.co.jp/
Representative:	(Title) CEO and President	(Name) Tetsuya Hirooka
Contact:	(Title) Head of Business Planning Section	(Name) Yoshiro Narukami Telephone: [phone]
Scheduled date to file quarterly report: August 10, 2021	Scheduled date to commence dividend payment: -

Preparation of supplemental information of quarterly financial results: Yes

Holding of quarterly financial results briefing: No

(Figures are rounded down to the nearest million yen)

1. 1st Quarter FY3/22 Consolidated Earnings Results (April 1, 2021 to June 30, 2021)

(1) Consolidated Earnings (Cumulative)

(% indicates changes from the same period of the previous fiscal year)

Net Sales

Operating Income

Ordinary Income

Profit Attributable to

Owners of Parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

1st Quarter FY3/22

9,585

(7.4)

19

－

(115)

－

(194)

－

1st Quarter FY3/21

10,346

1.9

(173)

－

(177)

－

(367)

－

(Note) Comprehensive income:

1st Quarter FY3/22

¥35 million (-%)

1st Quarter FY3/21

¥(416)

million (-%)

Earnings Per Share

Diluted

Earnings Per Share

Yen

Yen

1st Quarter FY3/22

(5.49)

－

1st Quarter FY3/21

(6.45)

－

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Million yen

Million yen

%

As of June 30, 2021

133,278

35,735

21.1

As of March 31, 2021

136,030

36,368

21.2

(Reference) Shareholders' equity:

As of June 30, 2021 ¥28,169

million

As of March 31, 2021

¥28,861

million

2. Dividends

Dividend per Share

End of

End of

End of

End of Year

Annual

1st Quarter

2nd Quarter

3rd Quarter

Yen

Yen

Yen

Yen

Yen

FY3/21

－

6.00

－

18.00

24.00

FY3/22

－

FY3/22 (Forecast)

17.00

－

19.00

36.00

(Note) Changes in the latest forecasts released: No

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 2022 (From April 1, 2021 to March 31, 2022)

(% indicates changes from the same period of the previous fiscal year)

	Net Sales		Operating Income	Ordinary Income	Profit Attributable to	Earnings per share
								Owners of Parent
	Million yen		％	Million yen	％	Million yen	％	Million yen	％	Yen
Full year	76,000		(5.3)	5,700	4.9	5,000	8.3	3,100	7.7	87.62

(Note) Changes in the latest forecasts released: No

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• Matters to be noted
• 1. Changes in important subsidiaries during the quarter under review: No
  2. Application of specific accounting treatments in preparing the quarterly consolidated financial statements: No
  3. Changes in accounting principles, changes in accounting estimates and retrospective restatements
  4. 1. Changes in accounting principles in accordance with revisions to accounting and other standards: Yes
     2. Changes in accounting principles other than above (a): No
     3. Changes in accounting estimates: No
     4. Retrospective restatements: No

Note: Please refer to "2. Consolidated Quarterly Financial Statements and Main Notes, (3) Matters to be Noted regarding Consolidated Quarterly Financial Statements (Changes in accounting principles)" on page 10.

(4) Outstanding shares (Common stock)

(a) Number of outstanding shares at the end of	June 30, 2021	36,916,775	shares	March 31, 2021	36,916,775	shares
period (Including treasury shares)
(b) Number of treasury shares at the end of	June 30, 2021	1,537,512	shares	March 31, 2021	1,537,512	shares
period
(c) Average number of shares during the period	1st Quarter FY3/22	35,379,263	shares	1st Quarter FY3/21	56,996,795	shares
(Quarterly cumulative period)

The number of treasury shares includes 410,550 shares of our company that are held by Board Benefit Trust as of the end of the first quarter under review.

*Earnings Announcement is out of scope of quarterly reviews by certified public accountants or an audit corporation.

*Explanatory statement regarding the proper use of financial forecasts and other notes

All forecasts provided in this document are based on certain reasonable assumptions and beliefs in light of information currently available and, therefore, it is not intended for guaranteeing to meet them. Actual results may differ from our forecasts due to various unforeseen reasons.

*The year-on-year percentage change is indicated as"-" if figures for the three months ended June 30, 2021 and/or 2020 were negative.

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○ Table of contents of the attached document

1. Qualitative Information on the Financial Statements for the Quarter under Review ………………………………………	4
(1) Explanation about business performance …………………………………………………………………….….……	4
(2) Qualitative information on consolidated financial position ………………………………………………………….….	5
(3) Qualitative information on consolidated earnings forecasts ……………………………………………………………...	5
2. Consolidated Quarterly Financial Statements and Main Notes ………………………………………………………………	6
(1) Consolidated Quarterly Balance Sheets …………………………………………………………………………………	6
(2) Consolidated Quarterly Income Statement and Comprehensive Income Statement ………………………………...…	8
(3) Matters to be Noted regarding Consolidated Quarterly Financial Statements …………………………………………	10
(Notes on the premise of a going concern) …………………………………………………………………………...…	10
(Notes on the significant change in the shareholders' equity amount) …………………………………………….……	10
(Changes in accounting principles) ……………………………………………………………………………………	10
(Segment information, etc.) ……………………………………………………………………………………………	11
3. Other Information ……………………………………………………………………………………………………….……	12
(1) Records of Sales …………………………………………………………………………………………………………	12
(2) Real Estate Sales Information ………………………………………………………………………………………….…	13

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1. Qualitative Information on the Financial Statements for the Quarter under Review

1. Explanation about business performance

During the first quarter under review, the number of contracted units was 315 and 1 building, and that of delivered units was 172 and 2 buildings. As of the end of the first quarter, we managed 18,551 units. Consequently, as the results for the first quarter, we posted net sales of ¥9,585 million (down 7.4% year over year), operating income of ¥19 million (operating loss of ¥173 million a year earlier), ordinary loss of ¥115 million (ordinary loss of ¥177 million a year earlier), and loss attributable to owners of parent of ¥194 million (loss attributable to owners of parent of ¥367 million a year earlier).

In our Real Estate Development, CCRC, and Real Estate Investment, sales are booked upon delivery to customers, not at the time purchase and sales contracts are executed. As a result, this tends to cause a deviation in quarterly sales depending on the timing of delivery.

Results by segment are as follows.

(I) Real Estate Development

During the first quarter under review, the Group recorded net sales of ¥5,238 million (down 34.0% year over year) and operating income of ¥22 million (down 93.1 % year over year) due to a delivery of 132 condominium units such as "Duo Hills Yamagata Nanukamachi Tower," and 7 detached houses such as "Duo Avenue Motoyama Hills."

(II) CCRC

During the first quarter under review, the Group recorded net sales of ¥1,454 million (up 372.8% year over year) and operating loss of ¥33 million (operating loss of ¥271 million a year earlier) due to a delivery of 29 condominium units such as "Duo Scene Kunitachi."

1. Real Estate Investment
   We recorded net sales of ¥1,385 million (up 44.5% year over year) and operating loss of ¥62 million (operating loss of ¥85 million a year earlier) during the first quarter under review.

(1) Real Estate Sales

Due to the sales of inventory assets, we recorded net sales of ¥648 million (up 127.7% year over year).

(2) Rental Revenue

We recorded net sales of ¥649 million (up 8.3% year over year) due to the stable operation of owned income-producing properties.

(IV) Condominium Management and Related Services

We recorded net sales of ¥1,492 million (up 32.9% year over year) and operating income of ¥53 million (operating loss of ¥149 million a year earlier) during the first quarter under review.

(1) Condominium Management

We recorded net sales of ¥471 million (up 7.9% year over year) due to the start of the new management contracting of "Duo Hills Yamagata Nanukamachi Tower", etc. in condominium management.

(2) Sports Club Operation Revenue

We recorded net sales of ¥819 million (up 60.2% year over year) mainly due to the operation of sports clubs.

(3) Other Income

We recorded net sales of ¥200 million (up 15.5% year over year) in hotel business and consigned construction, etc.

Sports club and hotel businesses closed some of their facilities, as was the case last fiscal year, in response to the "declaration of a state of emergency" by the Japanese Government. Fix costs incurred by those facilities during the temporary closure were recorded as loss due to the spread of COVID-19 in extraordinary losses.

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(V) Other

We recorded net sales of ¥14 million (down 7.9% year over year) and operating income of ¥5 million (operating income of ¥0 million a year earlier) through PFI operations.

The progress status of the annual delivery plan in the Real Estate Sales is shown below. In Condominium apartments, the main business of the Group, 69.3% of the contracts have been executed.

FY3/22	Number of units	Number of contracts	Progress
to be delivered	signed
Condominium apartments	783	543	69.3%
Condominium apartments for	517	286	55.3%
seniors
Detached houses	89	46	51.7%
Total	1,389	875	63.0%

(Notes) 1. "Condominium apartments" show the total number of family condominiums and compact condominiums.

1. 2. The number of units for joint venture properties is shown with consideration for the joint venture ratio. (by rounding down to the nearest integer)

2. Qualitative information on consolidated financial position

As of the end of the first quarter under review, total assets amounted to ¥133,278 million (down 2.0% from March 31, 2021), total liabilities amounted to ¥97,542 million (down 2.1% from March 31, 2021), and total net assets amounted to ¥35,735 million (down 1.7% from March 31, 2021), mainly due to a decrease in inventories.

(3) Qualitative information on consolidated earnings forecasts

The earnings forecasts for the fiscal year ending March 31, 2022 remain unchanged from those announced on May 13, 2021 as results and sales status for the first quarter under review have progressed as planned and the Group's operating environment is within the scope of the assumption.

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