JDC : Summary of Consolidated Financial Results for the Six Months Ended November 30, 2021

Disclaimer: All financial information has been prepared in accordance with generally accepted accounting principles in Japan. This document is a partial English translation of the Japanese Financial Statements disclosed at the Tokyo Stock Exchange on January 14, 2022 presented solely for the convenience of non-Japanese speaking users. If there is any discrepancy between the translation and the Japanese original, the latter shall prevail.

Summary of Consolidated Financial Results for the Six Months Ended November 30, 2021 [Japanese GAAP]

January 14, 2022

Company name: JDC CORPORATION

Stock exchange listing: Tokyo Stock Exchange

Code number: 1887

URL: https://www.n-kokudo.co.jp/

Representative: Takeo Asakura, Representative Director and President

Contact: Hironori Otoishi, Deputy Director of Management Division and General Manager of Accounting Department

Phone: [phone]

Scheduled date of filing quarterly securities report: January 14, 2022

Scheduled date of commencing dividend payments: February 1, 2022

Availability of supplementary briefing material on quarterly financial results: Available

Schedule of quarterly financial results briefing session: Scheduled (To prevent the spread of the novel coronavirus (COVID-19) disease, the session will be held live through the Internet on January 19, 2022, and the video clip will be available on JDC CORPORATION's website later.)

(Amounts of less than one million yen are rounded down.)

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

(1) Consolidated Operating Results	(% indicates changes from the corresponding period of the previous fiscal year.)
		Net Sales	Operating Profit	Ordinary Profit	Profit Attributable to
		Owners of Parent
	Six months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
	November 30, 2021	58,138	(3.9)	2,541	(52.0)	3,078	(41.9)	2,200	(45.5)
	November 30, 2020	60,518	(0.8)	5,292	(28.8)	5,294	(30.5)	4,035	(25.5)

(Note) Comprehensive income: Six months ended November 30, 2021: ¥2,089 million [(48.0)%] Six months ended November 30, 2020: ¥4,018 million [(29.5)%]

	Net Income	Diluted Net Income
	per Share	per Share
Six months ended	Yen	Yen
November 30, 2021	25.21	25.14
November 30, 2020	46.51	46.32

(2) Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio
	Million yen	Million yen	%
As of November 30, 2021	144,723	75,025	51.6
As of May 31, 2021	148,766	74,211	49.6

(Reference) Equity: As of November 30, 2021: ¥74,654 million As of May 31, 2021: ¥73,830 million

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2. Dividends

			Annual dividends
	End of 1Q	End of 2Q	End of 3Q		Year-end		Total
Fiscal year ended		Yen	Yen		Yen		Yen		Yen
May 31, 2021		-	10.00		-		16.00		26.00
Fiscal year ending		-	10.00
May 31, 2022
Fiscal year ending
May 31, 2022					-		16.00		26.00
(Forecast)
(Note) Revision to the dividend forecast announced most recently: No
(Note) Breakdown of dividends
Interim dividends for
the six months ended November 30, 2020:	¥10.00 ordinary dividends
Year-end dividends for
the fiscal year ended May 31, 2021:	¥10.00 ordinary dividends and ¥6.00 special dividends
Interim dividends for
the six months ended November 30, 2021:	¥10.00 ordinary dividends
Year-end dividends for
the fiscal year ending May 31, 2022 (forecast):	¥10.00 ordinary dividends and ¥6.00 special dividends

3. Forecast of Consolidated Financial Results for Fiscal Year Ending May 31, 2022 (June 1, 2021 to May 31, 2022) (% indicates changes from the previous corresponding period.)

	Net Sales		Operating Profit	Ordinary Profit	Profit Attributable to	Basic Earnings
		Owners of Parent	per Share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	150,000	27.3	10,200	(3.5)	9,900	(6.5)	6,800	(11.8)	77.00

(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): Yes
   New: One company (Company name) Nobeoka Solar Power LLC
2. Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement
4. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1): No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
5. Total number of issued shares (common shares)
6. 1. Total number of issued shares at the end of the period (including treasury stock):

November 30, 2021: 98,255,000 shares

May 31, 2021: 98,255,000 shares

1. Total number of treasury shares at the end of the period: November 30, 2021: 10,721,046 shares
   May 31, 2021: 11,064,846 shares
2. Average number of shares during the period:

Six months ended November 30, 2021: 87,305,269 shares

Six months ended November 30, 2020: 86,746,120 shares 2

(Notes) 1. The total number of treasury shares at the end of the period includes shares owned by Custody Bank of Japan, Ltd. (trust account E) as trust property of the Board Benefit Trust (J-ESOP) (1,074,900 shares as of November 30, 2021 and 1,118,700 shares as of May 31, 2021). The shares of JDC Corporation owned by Custody Bank of Japan, Ltd. (trust account E) constitute the treasury shares that are deducted in the calculation of the average number of shares during the period (1,090,923 shares for the six months ended November 30, 2021 and 1,192,444 shares for the six months ended November 30, 2020).

• 2. The total number of treasury shares at the end of the period includes shares owned by Custody Bank of Japan, Ltd. (trust account E) as trust property of the Stock Benefit Trust (Employee Stockholding Association Purchase-type) (326,000 shares as of November 30, 2021 and 489,800 shares as of May 31, 2021). The shares of JDC Corporation owned by Custody Bank of Japan, Ltd. (trust account E) constitute the treasury shares that are deducted in the calculation of the average number of shares during the period (421,290 shares for the six months ended November 30, 2021 and 430,062 shares for the six months ended November 30, 2020).

• These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or audit firms.
• Explanation of the proper use of financial results forecast and other notes

The forecasts are based on certain assumptions relating to economic situations and market trends deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors.

Financial results briefing session will be held live through the Internet on Wednesday, January 19, 2022, and the video clip will be available on JDC CORPORATION's website later. The briefing material used in this session will also be posted on the website immediately after the live stream ends.

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(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Six Months Ended November 30, 2021 (June 1, 2021 to November 30, 2021)

(1) Non-consolidated Operating Results

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

			Net Sales				Operating Profit		Ordinary Profit	Profit
	Six months ended	Million yen	%			Million yen	%		Million yen	%	Million yen	%
	November 30, 2021	51,067	(5.7)			1,798	(62.3)		3,372	(30.3)	2,724	(26.1)
	November 30, 2020	54,167	(4.8)			4,774	(33.5)		4,839	(34.6)	3,688	(30.0)
		Net Income per Share		Diluted Net Income
				per Share
	Six months ended			Yen				Yen
	November 30, 2021			31.20					31.11
	November 30, 2020			42.51					42.34
(2) Non-consolidated Financial Position
			Total Assets		Net Assets	Equity Ratio
				Million yen			Million yen		%
	As of November 30, 2021		121,601			70,269		57.8
	As of May 31, 2021			123,319			68,781		55.8

(Reference) Equity: As of November 30, 2021: ¥70,269 million As of May 31, 2021: ¥68,781 million

2. Forecast of Non-consolidated Financial Results for the Fiscal Year Ending May 31, 2022 (June 1, 2021 to May 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net Sales		Ordinary Profit	Profit		Basic Earnings
			per Share
	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	127,000	24.2	8,300	(10.1)	5,800	(14.7)	66.00

(Note) Revision to the financial results forecast announced most recently: No

* Explanation of the proper use of financial results forecast and other notes

The forecasts are based on certain assumptions relating to economic situations and market trends deemed reasonable as of the date of publication of this document. Actual results may differ significantly from these forecasts due to a wide range of factors.

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2. Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheet

				(Million yen)
		As of May 31, 2021	As of November 30, 2021
Assets
Current assets
Cash and deposits		46,954		30,716
Notes receivable, accounts receivable from	32,502	43,365
completed construction contracts and other
Costs on construction contracts in progress		1,276		1,448
Costs on development business and other	2,448	2,617
Advances paid		4,011		3,506
Other	12,638	13,596
Allowance for doubtful accounts		(8)		(4)
Total current assets	99,823	95,245
Non-current assets
Property, plant and equipment
Buildings and structures, net		7,928		7,779
Machinery, vehicles, tools, furniture and	14,663	15,027
fixtures, net
Land		9,246		9,251
Other, net	2,649	2,951
Total property, plant and equipment		34,487		35,008
Intangible assets	766	824
Investments and other assets
Investment securities	9,084	9,264
Retirement benefit asset		1,695		1,705
Deferred tax assets	94	135
Other		2,850		2,570
Allowance for doubtful accounts	(35)	(32)
Total investments and other assets		13,688		13,643
Total non-current assets	48,943	49,477
Total assets		148,766		144,723

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