地主（3252） – [Delayed]Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022

Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022 (Three Months Ended March 31, 2022) May 12, 2022 [Japanese GAAP] Listing: TSE/NSE URL: https://www.jinushi-jp.com Company name: JINUSHI Co., Ltd. Securities code: 3252 Representative: Tetsuya Matsuoka, Chief Executive Officer Takahiro Tanaka, General Manager of Accounting Division Contact: Tel: +81-(0) 6-4706-7501 Scheduled date of filing of Quarterly Report: Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: Holding of quarterly financial results meeting: May 13, 2022 – Yes None (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the Three Months Ended March 31, 2022 (January 1, 2022 – March 31, 2022) (1) Consolidated results of operations Net sales Operating profit Three months ended Mar. 31, 2022 Three months ended Mar. 31, 2021 Note: Comprehensive income (million yen) Million yen 19,661 20,958 % (6.2) – Million yen 3,290 2,308 % 36.8 – Three months ended Mar. 31, 2022: 2,538 (up 26.4%) Three months ended Mar. 31, 2021: 2,008 (-%) Million yen 3,236 2,366 % 42.5 – Ordinary profit (Percentages represent year-on-year changes) Profit attributable to owners of parent % 20.7 – Million yen 2,086 1,729 Net income per share Diluted net income per share Yen Yen 114.13 94.56 Three months ended Mar. 31, 2022 Three months ended Mar. 31, 2021 From the fiscal year ended December 31, 2020, JINUSHI Co., Ltd. (hereinafter, “the Company”) has changed its financial closing date from March 31 to December 31. The Company has also changed the financial closing date of its domestic subsidiaries from March 31 to December 31. There are no year-on-year changes because the three months ended Mar. 31, 2021 (January 1 to March 31, 2021) differs from the three months ended Mar. 31, 2020 (April 1 to June 30, 2020). (2) Consolidated financial position – – Total assets Million yen Net assets Million yen Equity ratio % As of Mar. 31, 2022 As of Dec. 31, 2021 Reference: Shareh1olders’ equity (million yen) 2. Dividends 83,712 86,337 29,430 27,781 35.1 32.2 As of Mar. 31, 2022: 29,396 As of Dec. 31, 2021: 27,781 1Q-end Yen 2Q-end Yen Dividend per share 3Q-end Yen Year-end Yen Total Yen – – 50.00 55.00 50.00 55.00 Fiscal year ended Dec. 31, 2021 Fiscal year ending Dec. 31, 2022 Fiscal year ending Dec. 31, 2022 (forecasts) Note: Revisions to the most recently announced dividend forecast: None – – 0.00 0.00 Breakdown of dividends for the fiscal year ending Dec. 31, 2022 (forecasts): Ordinary dividends: 50.00 yen; Commemorative dividends (for the new company name): 5.00 yen 3. Consolidated Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 – December 31, 2022) Net sales Operating profit Ordinary profit Million yen 5,200 Full year Note: Revisions to the most recently announced consolidated forecast: None Million yen 5,900 Million yen 57,000 % 7.8 % 1.5 % 3.9 (Percentages represent year-on-year changes) Profit attributable to owners of parent % 2.4 Million yen 3,200 Net income per share 175.00 Yen * Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in the scope of consolidation): None Newly added: – (2) Application of special accounting methods for presenting quarterly consolidated financial statements: None Excluded: – (3) Changes in accounting policies and accounting estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: 3) Changes in accounting estimates: 4) Restatements: None None None Note: Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Changes in Accounting Policies” on page 8 of the attachments for further information. (4) Number of outstanding shares (common shares) 1) Number of shares outstanding at the end of the period (including treasury shares) As of Mar. 31, 2022: 18,285,800 shares As of Dec. 31, 2021: 18,285,800 shares 2) Number of treasury shares at the end of the period 3) Average number of shares outstanding during the period As of Mar. 31, 2022: 141 shares As of Dec. 31, 2021: 141 shares Three months ended Mar. 31, 2022: 18,285,659 shares Three months ended Mar. 31, 2021: 18,285,659 shares * The current quarterly financial report is not subject to quarterly review by an auditing firm. * Cautionary statement with respect to forward-looking statements, and other special items Cautionary statement with respect to forecasts 1. Earnings forecasts regarding future performance in this material are based on assumptions judged to be valid and information currently available to the Company. Actual results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 of the attachments for assumptions for forecasts and notes of caution for usage. 2. The company name was changed from Nippon Commercial Development Co., Ltd. to JINUSHI Co., Ltd. on January 10, 2022. JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 Contents of Attachments 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations (2) Explanation of Financial Position (3) Explanation of Consolidated Forecast and Other Forward-looking Statements 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-month Period Quarterly Consolidated Statement of Comprehensive Income For the Three-month Period (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Significant Changes in Shareholders’ Equity Changes in Accounting Policies Segment and Other Information Subsequent Events 2 2 3 3 4 4 6 6 7 8 8 8 8 9 101 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations In the first quarter of the fiscal year ending December 31, 2022 (hereinafter, “the period under review”), the Japanese economy saw a temporary trend toward normalization of socioeconomic activities due to the spread and promotion of vaccination against COVID-19, although it came to a standstill with the emergence of new variants and the spread of infection, resulting in a persistently severe situation. In the global economy, the outlook remains uncertain due to a number of risks that could put downward pressure on the Japanese economy, including a global shortage of semiconductors, soaring resource prices, and Russia’s invasion of Ukraine. In the Japanese real estate and real estate finance industries, earnings continued to be sluggish for some commercial and lodging facilities, and office vacancy rates remained high. However, the overall market for real estate investment remained stable backed by the continued positive mindset of investors against the backdrop of low interest rates and other factors. Please note that 80% of the tenants of our JINUSHI Business belong to the industry sectors (including the logistics industry) that deal in daily necessities such as supermarkets, home improvement stores, and drug stores. Such tenants are performing well even amid the pandemic. Under these circumstances, the JINUSHI Group (hereinafter “the Group”) made a steady progress in sales of real estate for sale to major leasing companies and others, backed by the growing reputation among financial institutions and investors for the JINUSHI Business as a real estate investment method to generate stable profits over the long term without a risk of closure of tenants and decrease in rent even under the COVID-19 crisis. In addition, the Company, JINUSHI Asset Management Co., Ltd. and JINUSHI Private REIT Investment Corporation (hereinafter “JINUSHI REIT”) are engaged in the Sponsor Support Agreement, in which the Company acts as the sponsor of JINUSHI REIT. The Company has resolved to sell three properties to JINUSHI REIT in accordance with the said agreement on January 7, 2022 with the aggregate sales price of 4,915 million yen. JINUSHI REIT acquired 25 properties through its sixth capital increase targeting institutional investors, bringing the total assets under management to 151.5 billion yen. Going forward, we aim to achieve a scale of more than 300 billion yen in the medium term. As part of the rebranding of the Company, we have changed our trade name from “Nippon Commercial Development Co., Ltd.” to “JINUSHI Co., Ltd.” as of January 10, 2022. By producing and airing TV commercials and placing newspaper advertisements, we have been continuously promoting activities to further expand the JINUSHI Business in the market, which is resistant to natural disasters and market volatility and capable of providing stable earnings over the long term. On February 14, 2022, the Company announced a five-year Medium-term Management Plan starting from the fiscal year ending December 31, 2022, with the Group’s target figures of 100 billion yen in net sales and 7 billion yen in profit for the fiscal year ending December 31, 2026, the final year of the plan. We also announced our “ESG Policy,” our basic policy on environmental, social, and governance initiatives, to achieve the realization of a sustainable society and enhancement of our corporate value over the medium to long term. Furthermore, as of March 24, 2022, in order to further enhance corporate value and strengthen the management structure, the Company has adopted a multiple representative director structure, with Tetsuya Matsuoka as Chief Executive Officer and Teruaki Nishira as newly appointed Chief Operating Officer. As a result, the Group reported net sales for the period under review of 19,661 million yen (down 6.2% year-on-year), operating profit of 3,290 million yen (up 42.5% year-on-year), ordinary profit of 3,236 million yen (up 36.8% year-on-year), and profit attributable to owners of parent of 2,086 million yen (up 20.7% year-on-year). Please be advised that on April 4, 2022, the Company shifted to the “Prime Market,” a new market segment of the Tokyo Stock Exchange, and to the “Premier Market,” a new market segment of the Nagoya Stock Exchange. 2 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 Results by business segment were as follows: i) Real Estate Investment Business The segment reported sales of 19,004 million yen (down 7.6% year-on-year) with segment operating profit of 3,763 million yen (up 33.6% year-on-year). ii) Subleasing, Leasing and Fund Fee Business The segment reported sales of 641 million yen (up 63.0% year-on-year) with segment operating profit of 564 million yen (up 73.8% year-on-year). The segment reported sales of 14 million yen (up 190.8% year-on-year) with segment operating profit of 14 million yen (up 190.8% year-on-year). iii) Planning and Brokerage Business (2) Explanation of Financial Position Assets, Liabilities and Net Assets Total assets decreased 2,624 million yen from the end of the previous fiscal year to 83,712 million yen at the end of the period under review. This decrease was attributable mainly to a decrease of 5,975 million yen in real estate for sale driven by the smooth sale of properties to JINUSHI REIT and others, which was partially offset by increases of 3,257 million yen in cash and deposits, and 336 million yen in the valuation gain in shares of subsidiaries and associates. Total liabilities decreased 4,273 million yen from the end of the previous fiscal year to 54,282 million yen. This decrease was attributable mainly to decreases of 3,592 million yen in borrowings and 613 million yen in other (deferred tax liabilities). Net assets increased 1,649 million yen from the end of the previous fiscal year to 29,430 million yen. This increase was attributable mainly to the profit attributable to owners of parent of 2,086 million yen and foreign currency translation adjustment of 429 million yen, which was partially offset by the distribution of dividends of surplus of 914 million yen. Consequently, the equity ratio at the end of the period under review was 35.1%. (3) Explanation of Consolidated Forecast and Other Forward-looking Statements Both net sales and profits for the period under review have progressed as planned. As we expect that going forward net sales and profits will progress at the same level presented in “3. Consolidated Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 – December 31, 2022)” in “Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2021 [Japanese GAAP]” announced on February 14, 2022, we have left the forecast unchanged. For more details on the consolidated forecast for the fiscal year ending December 31, 2022, please refer to “Results of Operations for the First Three Months of the Fiscal Year Ending December 31, 2022” (available on our website (*)), which is the supplementary materials for the Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2022. (*) https://www.jinushi-jp.com/ (IR Information, News Release) 3 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 FY12/21 (As of Dec. 31, 2021) First quarter of FY12/22 (As of Mar. 31, 2022) (Millions of yen) Assets Current assets Cash and deposits Trade accounts receivable Real estate for sale Advance payments-trade Prepaid expenses Other Total current assets Non-current assets Property, plant and equipment Buildings and structures, net Vehicles, tools, furniture and fixtures, net Land Leased assets, net Total property, plant and equipment Intangible assets Other Total intangible assets Investments and other assets Investment securities Shares of subsidiaries and associates Investments in capital of subsidiaries and associates Investments in capital Leasehold and guarantee deposits Long-term prepaid expenses Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 17,264 205 41,995 169 269 97 60,002 364 54 16,994 75 17,488 225 225 581 6,465 1 676 623 98 262 (88) 8,621 26,335 86,337 20,522 134 36,020 182 209 130 57,199 378 59 17,010 77 17,525 67 67 326 6,802 1 873 638 83 283 (88) 8,920 26,513 83,712 4 Liabilities Current liabilities Trade accounts payable Short-term borrowings Current portion of long-term borrowings Accounts payable-other Income taxes payable Accrued consumption taxes Advances received Current portion of guarantee deposits received Other Total current liabilities Non-current liabilities Long-term borrowings Long-term leasehold and guarantee deposits received Provision for execution of assumption of debt 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 Foreign currency translation adjustment Total accumulated other comprehensive income Non-controlling interests Total net assets Total liabilities and net assets JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 FY12/21 (As of Dec. 31, 2021) First quarter of FY12/22 (As of Mar. 31, 2022) (Millions of yen) 112 1,126 5,903 506 3,753 53 440 1,751 351 13,999 42,700 619 110 1,125 44,555 58,555 3,048 4,657 20,302 (0) 28,009 (38) (189) (227) – 27,781 86,337 – 106 6,357 654 4,083 55 – 1,480 535 13,272 39,780 636 110 482 41,009 54,282 3,048 4,657 21,466 (0) 29,173 (17) 240 223 33 29,430 83,712 5 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income (For the Three-month Period) First three months of FY12/21 (Jan. 1, 2021 – Mar. 31, 2021) First three months of FY12/22 (Jan. 1, 2022 – Mar. 31, 2022) (Millions of yen) 20,958 17,752 3,205 896 2,308 0 1 156 217 29 20 10 97 62 – 0 160 2,366 – – 0 2,366 2,365 701 (65) 636 1,729 – 1,729 19,661 15,121 4,540 1,249 3,290 0 – 170 32 – 1 204 126 126 3 1 258 3,236 140 140 3,096 0 3,095 1,648 (639) 1,008 2,087 0 2,086 Net sales Cost of sales Gross profit Operating profit Non-operating income Interest income Selling, general and administrative expenses Interest on securities Share of profit of entities accounted for using equity method Outsourcing service income Foreign exchange gains Other Total non-operating income Non-operating expenses Interest expenses Financing expenses Foreign exchange losses Other Total non-operating expenses Ordinary profit Extraordinary losses Goodwill impairment loss Total extraordinary losses Profit before distributions of profit or loss on silent partnerships and income taxes Distributions of profit or loss on silent partnerships Profit before income taxes Income taxes-current Income taxes-deferred Total income taxes Profit Profit attributable to non-controlling interests Profit attributable to owners of parent 6 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 Quarterly Consolidated Statement of Comprehensive Income (For the Three-month Period) First three months of FY12/21 (Jan. 1, 2021 – Mar. 31, 2021) First three months of FY12/22 (Jan. 1, 2022 – Mar. 31, 2022) (Millions of yen) Profit Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 1,729 24 254 279 2,008 2,008 – 2,087 21 429 450 2,538 2,537 0 7 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Changes in Shareholders’ Equity Not applicable. Changes in Accounting Policies We have applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 issued on March 31, 2020; hereinafter the “Revenue Recognition Accounting Standard”), etc. from the beginning of the first quarter of the current fiscal year. When control of promised goods or services is transferred to a customer, we recognize revenue at the amount expected to be received in exchange for the goods or services. Major changes as a result of this change are as follows. Revenue recognition for variable consideration Previously, variable consideration included in sales contracts was recorded as an expense when the amount was fixed. However, it is now reflected in the transaction price by estimating the amount of the portion of the variable consideration that is likely to cause a significant reduction in the revenue recorded up to that point when the uncertainty related to the variable consideration is resolved ex post. The application of the Revenue Recognition Accounting Standard, etc. is pursuant to the transitional treatment set forth in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standard. The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods prior to the beginning of the first quarter of the current fiscal year, was added to or subtracted from the beginning balance of retained earnings at the beginning of the first quarter of the current fiscal year, and then the new accounting policy was applied to the said beginning balance. As a result, net sales and cost of sales decreased 67 million yen and 11 million yen, respectively, and operating profit, ordinary profit, and profit before income taxes each decreased 56 million yen in the first quarter of the current fiscal year, but there is no impact on the balance of retained earnings at the beginning of the current period under review. Upon the application of the Accounting Standard for Revenue Recognition, etc., refund liabilities are included in “other” under “current liabilities” beginning in the first quarter of the current fiscal year. In accordance with the transitional treatment stipulated in Paragraph 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ Statement No. 12, March 31, 2020), breakdown information on revenue derived from contracts with customers during the first quarter of the previous fiscal year is not presented. “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter referred to as “Accounting Standard for Fair Value Measurement”) is applied from the beginning of the first quarter of the current fiscal year. In accordance with the transitional treatment stipulated in Paragraph 19 of the Accounting Standard for Fair Value Measurements and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the new accounting policies stipulated in the Accounting Standard for Fair Value Measurements, etc., will be applied into the future. There is no impact on the quarterly consolidated financial statements. 8 JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 Segment and Other Information I First three months of FY12/21 (Jan. 1, 2021 – Mar. 31, 2021) 1. Information related to net sales and profit or loss for each reportable segment Net sales (1) Sales to external customers (2) Inter-segment sales and transfers Total Segment profits (losses) PFI business. Not applicable. Reportable segment Real Estate Investment Business Subleasing, Leasing and Fund Fee Business Planning and Brokerage Business Subtotal Other (Note 1) Adjustments (Note 2) 20,559 393 20,958 – 20,559 2,816 – 393 324 5 – 5 5 – 20,958 3,147 (Millions of yen) Amount shown on the quarterly consolidated statement of income (Note 3) – – – (838) 20,958 – 20,958 2,308 Notes: 1. The “Other” segment represents businesses not included in any reportable segments and includes the overseas 2. The adjustment to segment profit (loss) includes corporate expenses that mainly consist of selling, general and administrative expenses that cannot be attributed to any reportable segments. 3. Segment profit (loss) is adjusted with operating profit shown on the quarterly consolidated statement of income. 2. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment (Millions of yen) Amount shown on the quarterly consolidated statement of income (Note 3) – – – (1,052) 19,661 – 19,661 3,290 II First three months of FY12/22 (Jan. 1, 2022– Mar. 31, 2022) 1. Information related to net sales and profit or loss for each reportable segment Reportable segment Real Estate Investment Business Subleasing, Leasing and Fund Fee Business Planning and Brokerage Business Subtotal Other (Note 1) Adjustments (Note 2) Net sales (1) Sales to external customers (2) Inter-segment sales and transfers Total Segment profits (losses) PFI business. 19,004 641 19,661 – 19,004 3,763 – 641 564 14 – 14 14 – 19,661 4,342 Notes: 1. The “Other” segment represents businesses not included in any reportable segments and includes the overseas 2. The adjustment to segment profit (loss) includes corporate expenses that mainly consist of selling, general and administrative expenses that cannot be attributed to any reportable segments. 3. Segment profit (loss) is adjusted with operating profit shown on the quarterly consolidated statement of income. 2. Matters related to changes in reportable segments, etc. As described in “Changes in Accounting Policies,” the Accounting Standard for Revenue Recognition, etc., has been applied from the beginning of the first quarter of the current fiscal year, and the accounting method for revenue recognition has been changed. Accordingly, the calculation method of profit or loss for reportable segments has been changed in the same manner. As a result of this change, net sales and segment profit of the “real estate investment business” decreased 67 million yen and 56 million yen, respectively, in the first quarter of the current fiscal year, compared with the previous method. 9 – – – – – – – – JINUSHI Co., Ltd. (3252) Financial Results for the First Quarter of FY12/22 3. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment In the “real estate investment business” segment, a goodwill impairment loss of 140 million yen was recorded. Significant impairment losses on fixed assets Significant changes in the amount of goodwill In the “real estate investment business” segment, the amount of goodwill decreased due to an impairment loss. Subsequent Events Not applicable. This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation. 10