Ｆブラザーズ（3454） – [Delayed]Summary of Consolidated Financial Results for the Year Ended November 30, 2021(Based on Japanese GAAP)

Translation Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Summary of Consolidated Financial Results for the Year Ended November 30, 2021 (Based on Japanese GAAP) URL https://www.firstbrothers.com/ January 12, 2022TEL 03(5219)5370 Company name: First Brothers Co., Ltd. Stock exchange listing: Tokyo Stock code: 3454 Representative: Inquiries: President Chief Financial Officer Scheduled date of ordinary general meeting of shareholders: Scheduled date to file Securities Report: Scheduled date to commence dividend payments: Preparation of supplementary material on financial results: Holding of financial results meeting: (1) Consolidated operating results Tomoki Yoshihara Yoshinobu Hotta February 25, 2022 February 25, 2022 February 7, 2022 Yes No 1. Consolidated financial results for the year ended November 30, 2021 (from December 1, 2020 to November 30, 2021) (Amounts less than one million yen are rounded down)Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Year ended November 30, 2021 Year ended November 30, 2020 Millions of yen 26,685 15,642 % Millions of yen 4,940 2,541 70.6 (21.2)% Millions of yen 4,379 1,816 94.4 (26.6)% Millions of yen 2,795 2,313 141.1 (35.4) % 20.8 5.9 Earnings per share Diluted earnings per share Ordinary profit/total assets Operating profit/net sales Profit attributable to owners of parent/equity Yen 199.34 164.95 Yen – – % 14.4 13.4 % 5.6 2.6 Total assets Net assets Equity ratio Net assets per share Millions of yen 82,551 73,762 Millions of yen 20,809 18,330 % 25.1 24.7 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of period Millions of yen 301 (4,883)Millions of yen (399)(1,988)Millions of yen 4,752 5,417 Millions of yen 10,767 6,202 % 18.5 16.2 Yen 1,476.71 1,299.88 Annual dividends per share 1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end Total Total cash dividends (Total) Dividend payout ratio (Consolidated) Ratio of dividends to net assets (Consolidated) Yen – – – Yen 0.00 0.00 0.00 Yen – – – Yen 24.00 27.00 30.00 Yen Millions of yen 24.00 27.00 30.00 336 378 % 14.5 13.5 32.4 % 2.0 1.9 Year ended November 30, 2021 Year ended November 30, 2020 (2) Consolidated financial position As of November 30, 2021 As of November 30, 2020 (3) Consolidated cash flows Year ended November 30, 2021 Year ended November 30, 2020 2. Cash dividends Year ended November 30, 2020 Year ended November 30, 2021 Year ending November 30, 2022 (Forecast) 13. Forecast of consolidated financial results for the year ending November 30, 2022 (from December 1, 2021 to November 30, 2022) Net sales Operating profit Ordinary profit Percentages indicate year-on-year changesProfit attributable to owners of parent Earnings per share Full year Millions of yen 24,900 % Millions of yen 2,880 (6.7)% Millions of yen 2,010 (41.7)% Millions of yen 1,300 (54.1)% (53.5)Yen 92.70 (1) Changes in significant subsidiaries during the year ended November 30, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation): (2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements Changes in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons: Changes in accounting estimates: Restatement of prior period financial statements: (3) Number of issued shares (common shares) Total number of issued shares at the end of the period (including treasury shares) No No No No No As of November 30, 2021 14,445,000 shares As of November 30, 2020 14,445,000 shares Number of treasury shares at the end of the period Average number of shares during the period As of November 30, 2021 421,710 shares As of November 30, 2020 421,710 shares Year ended November 30, 2021 14,023,290 shares Year ended November 30, 2020 14,022,846 shares 4. Notes 2 As of November 30, 2020 As of November 30, 2021 (Thousands of yen) 6,207,421 563,711 329,306 56,205,055 6,449,266 15,986 558 348,034 1,755,577 (0) 71,874,918 147,607 (71,418) 76,189 4,635 (3,622) 1,013 111,764 (78,134) 33,630 – 454,456 565,289 – 12,948 12,948 83,909 36,157 179,896 388,397 620,608 1,308,970 1,887,208 73,762,127 10,766,170 740,507 281,949 44,908,794 4,275,774 11,509 741 342,414 1,327,228 (0) 62,655,088 9,660,098 (969,515) 8,690,582 217,688 (40,306) 177,381 133,383 (98,754) 34,628 8,753,917 454,456 18,110,967 367,290 14,186 381,476 68,505 41,413 80,933 369,846 843,507 1,404,206 19,896,650 82,551,738 Consolidated financial statements Consolidated balance sheets Assets Current assets Cash and deposits Deposits in trust Accounts receivable – trade Real estate for sale Real estate for sale in process Merchandise Supplies Operational investment securities Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Machinery, equipment and vehicles Accumulated depreciation Machinery, equipment and vehicles, net Tools, furniture and fixtures Accumulated depreciation Tools, furniture and fixtures, net Land Construction in progress Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Investments in other securities of subsidiaries and associates Deferred tax assets Leasehold and guarantee deposits Other Total investments and other assets Total non-current assets Total assets 3 As of November 30, 2020 As of November 30, 2021 (Thousands of yen) Liabilities Current liabilities Short-term borrowings Current portion of long-term borrowings Current portion of long-term non-recourse loans payable Income taxes payable Provision for bonuses Provision for shareholder benefit program Other Total current liabilities Non-current liabilities Long-term borrowings Long-term non-recourse loans payable Deferred tax liabilities Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets 2,000,000 1,741,206 15,488 427,724 25,100 27,500 1,772,828 6,009,848 43,318,091 582,667 1,827,766 10,613 3,682,911 49,422,048 55,431,897 1,589,830 1,917,257 14,982,928 (278,086) 18,211,930 21,182 (4,501) 16,681 101,618 18,330,230 73,762,127 3,454,179 1,890,848 – 856,693 25,850 21,500 2,621,417 8,870,488 44,384,923 3,420,000 1,811,112 12,977 3,242,247 52,871,260 61,741,748 1,589,830 1,917,257 17,440,845 (278,086) 20,669,847 39,337 (816) 38,521 101,620 20,809,990 82,551,738 4Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income (Thousands of yen) Fiscal year ended November 30, 2020 Fiscal year ended November 30, 2021 15,642,498 11,348,687 4,293,811 1,752,774 2,541,036 111 1,005 3,370 6,834 – 79 1,511 12,913 418,083 255,309 58,256 5,905 737,554 1,816,394 1,216,592 1,216,592 – – 1,000 2,952 3,952 3,029,034 898,769 (17,300) (159,682) 721,787 2,307,247 (5,889) 2,313,136 26,685,474 19,844,568 6,840,905 1,900,446 4,940,459 243 1,046 2,046 3,888 73,561 248 4,067 85,103 472,296 168,306 – 5,023 645,627 4,379,936 – – 997 259 – 57 1,314 4,378,621 1,802,325 – (213,977) 1,588,348 2,790,273 (5,089) 2,795,363 Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Dividend income Interest on tax refund Subsidy income Gain on valuation of derivatives Gain on sale of investment securities Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Loss on valuation of derivatives Other Total non-operating expenses Ordinary profit Extraordinary income Gain on bargain purchase Total extraordinary income Extraordinary losses Loss on retirement of non-current assets Loss on valuation of investment securities Loss on valuation of shares of subsidiaries and associates Loss on liquidation of subsidiaries and associates Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – refund Income taxes – deferred Total income taxes Profit Loss attributable to non-controlling interests Profit attributable to owners of parent 5Consolidated statements of comprehensive income Fiscal year ended November 30, 2020 Fiscal year ended November 30, 2021 (Thousands of yen) Profit Other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 2,307,247 5,632 (3,211) 2,421 2,309,668 2,315,572 (5,903) 2,790,273 18,155 3,701 21,856 2,812,129 2,817,203 (5,073) 6Consolidated statements of changes in equity Fiscal year ended November 30, 2020 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity Balance at beginning of period 1,589,830 1,913,075 12,964,037 (285,698) 16,181,245 (294,246) 2,313,136 4,182 (37) 7,649 Total changes during period Balance at end of period – 1,589,830 4,182 1,917,257 2,018,890 14,982,928 7,611 (278,086) 2,030,684 18,211,930 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 15,549 (1,303) 14,245 101,240 16,296,732 Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Purchase of treasury shares Disposal of treasury shares Net changes in items other than shareholders’ equity Total changes during period Balance at end of period (Thousands of yen) Total shareholders’ equity (294,246) 2,313,136 (37) 11,832 (294,246) 2,313,136 (37) 11,832 2,812 2,033,497 18,330,230 5,633 5,633 21,182 (3,197) (3,197) (4,501) 2,435 2,435 16,681 377 377 101,618 7 Fiscal year ended November 30, 2021 Share capital Capital surplus Retained earnings Treasury shares Shareholders’ equity (Thousands of yen) Total shareholders’ equity Balance at beginning of period 1,589,830 1,917,257 14,982,928 (278,086) 18,211,930 Total changes during period – – Balance at end of period 1,589,830 1,917,257 2,457,917 17,440,845 – (278,086) 2,457,917 20,669,847 Accumulated other comprehensive income Valuation difference on available-for-sale securities Deferred gains or losses on hedges Total accumulated other comprehensive income Non-controlling interests Total net assets Balance at beginning of period 21,182 (4,501) 16,681 101,618 18,330,230 (336,558) 2,795,363 (670) (216) (336,558) 2,795,363 (670) (216) (336,558) 2,795,363 (670) (216) 21,842 2,479,760 20,809,990 18,154 18,154 39,337 3,685 3,685 (816) 21,840 21,840 38,521 2 2 101,620 Changes during period Dividends of surplus Profit attributable to owners of parent Decrease in retained earnings due to increase in consolidated subsidiaries Decrease in retained earnings due to exclusion of consolidated subsidiaries Net changes in items other than shareholders’ equity Changes during period Dividends of surplus Profit attributable to owners of parent Decrease in retained earnings due to increase in consolidated subsidiaries Decrease in retained earnings due to exclusion of consolidated subsidiaries Net changes in items other than shareholders’ equity Total changes during period Balance at end of period 8Consolidated statements of cash flows (Thousands of yen) Fiscal year ended November 30, 2020 Fiscal year ended November 30, 2021 3,029,034 734,678 – (1,216,592) (962) 16,802 4,500 (26,873) (1,117) 418,083 – (62,467) (159,005) (8,068,617) 253,540 26,946 (15,170) (431,492) 495,914 56,202 (4,946,595) 1,117 (430,134) 1,080,479 (588,253) (4,883,386) (237,106) 42,009 (4,675) – (5,075) 4,904 – (391,500) – 22,250 (1,417,843) (1,530) (1,988,565) 4,378,621 828,297 3,819 – – 750 (6,000) 2,364 (1,290) 472,296 997 (176,795) 60,360 (4,387,093) 42,155 645,652 (5,256) 608,376 (151,894) 6,693 2,322,055 1,290 (474,765) 7,820 (1,555,221) 301,179 (224,313) 12,521 (437) (8,544) (11,695) 11,714 (0) – (10,946) 26,804 (188,217) (6,647) (399,761) Cash flows from operating activities Profit before income taxes Depreciation Amortization of goodwill Gain on bargain purchase Increase (decrease) in allowance for doubtful accounts Increase (decrease) in provision for bonuses Increase (decrease) in provision for shareholder benefit program Increase (decrease) in retirement benefit liability Interest and dividend income Interest expenses Loss on retirement of non-current assets Decrease(increase) in deposits in trust Decrease (increase) in trade receivables Decrease (increase) in inventories Decrease (increase) in investment securities for sale Decrease (increase) in other current assets Decrease(increase)in investment in anonymous association of subsidiaries and associates Increase (decrease) in other current liabilities Increase (decrease) in other non-current liabilities Other, net Subtotal Interest and dividends received Interest paid Income taxes refund Income taxes paid Net cash provided by (used in) operating activities Cash flows from investing activities Payments into time deposits Proceeds from withdrawal of time deposits Purchase of property, plant and equipment Purchase of intangible assets Purchase of investment securities Proceeds from sale of investment securities Purchase of shares of subsidiaries and associates Loan advances Payments of leasehold and guarantee deposits Proceeds from refund of leasehold and guarantee deposits Purchase of shares of subsidiaries resulting in change in scope of consolidation Other, net Net cash provided by (used in) investing activities 9 (Thousands of yen) Fiscal year ended November 30, 2020 Fiscal year ended November 30, 2021 Cash flows from financing activities Net increase (decrease) in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from long-term non recourse loans payable Repayment of long-term non recourse loans payable Purchase of treasury shares Proceeds from disposal of treasury shares Dividends paid Dividends paid to non-controlling interests Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Increase (decrease) in cash and cash equivalents resulting from change in scope of consolidation 237,000 16,426,261 (10,948,223) – (15,488) (37) 11,832 (294,139) – 5,417,204 (1,858) (1,456,605) 7,658,675 – 1,454,179 14,064,591 (13,251,658) 3,654,000 (832,155) – – (336,130) (165) 4,752,660 3,112 4,657,190 6,202,070 (91,306) Cash and cash equivalents at end of period 6,202,070 10,767,954 10