Financial Highlights for the 3rd Quarter Cumulative of Fiscal 2021

(Apr. 1, 2021- Dec. 31, 2021)

DAIBIRU CORPORATION

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

Name of the Company:

DAIBIRU CORPORATION

January 28, 2022

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:

Feb. 10, 2022

Scheduled Date of Commencing Dividend Payments:

-

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 3Q Fiscal 2021 (Apr. 1, 2021 to Dec. 31, 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

%

3Q Fiscal 2021

31,398

(2.5)

9,187

(4.6)

9,121

(3.6)

6,283

(8.9)

3Q Fiscal 2020

32,206

1.7

9,626

7.9

9,465

10.4

6,896

13.2

(Note) Comprehensive income:

3Q Fiscal 2021:

¥

8,494 million

[

(23.1) %]

3Q Fiscal 2020:

¥

11,051 million

[

71.5%]

Basic earnings

Diluted earnings

per share

per share

Yen

Yen

3Q Fiscal 2021

54.80

-

3Q Fiscal 2020

59.61

-

(2) Consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Million yen

Million yen

%

Dec. 31, 2021

389,738

173,358

44.0

March 31, 2021

393,928

167,346

42.0

(Reference) Equity:

As of

Dec. 31, 2021:

¥

171,306 million

As of

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)

0.00

10.50

(Note) Revision to the forecast

for dividends announced most recently:

No

As stated in the "Notice Regarding Revision of Dividend Forecast (No Dividend) for the Fiscal Year Ending March 2022" announced on November 30, 2021, the year-end dividend for the fiscal year ending March 2022 is scheduled to be ¥0.

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
    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)
    1. Total number of issued shares at the end of the period (including treasury shares):

Dec. 31, 2021:

115,051,049

shares

March 31, 2021:

115,051,049

shares

2)

Total number of treasury shares at the end of the period:

Dec. 31, 2021:

368,281

shares

March 31, 2021:

397,284

shares

3)

Average number of shares during the period:

3Q Fiscal 2021:

114,671,642

shares

3Q Fiscal 2020:

115,700,561

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)

Notes to Quarterly Consolidated Financial Statements................................................................................................

8

(Going Concern Assumption)........................................................................................................................................

8

(Significant Changes in Shareholder's Equity)..............................................................................................................

8

(Changes in Accounting Policies)..................................................................................................................................

8

(Segment Information)...................................................................................................................................................

9

(Significant Subsequent Events)....................................................................................................................................

10

1

1.Qualitative Information on Quarterly Financial Results

(1) Explanation on Results of Operations

In the nine months ended December 31, 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. With the rapid progress seen in the vaccination program and a significant decrease in the number of infections, the state of emergency was finally lifted at the end of September 2021 and the economy is expected to see recovery, particularly in the commercial sector; however, the outlook remains uncertain due to concerns about the spread of new variants.

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. The Yaesu Daibiru Building was completely closed in December with plans to commence demolition and new construction in the future.

With regard to operating results in the nine months ended December 31, 2021, operating revenue decreased ¥807 million, or 2.5%, year on year to ¥31,398 million, and operating profit decreased ¥438 million, or 4.6%, to ¥9,187 million.

As for non-operating income and expenses, ordinary profit decreased ¥344 million, or 3.6%, year on year to ¥9,121 million, due to a decrease in operating profit, despite an increase in dividend income.

With regard to extraordinary income and losses, for the nine months ended December 31, 2021, gain on sales of investment securities of ¥782 million was recorded under extraordinary income, and a total of ¥775 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 ¥122 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 ¥612 million, or 8.9%, year on year to ¥6,283 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 ¥522 million, or 2.1%, year on year to ¥24,744 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 depreciation, operating profit decreased ¥368 million, or 3.5%, year on year to ¥10,059 million.

2

2) Facility Management

In this segment, which accounts for 19.5% of consolidated operating revenue, despite contributions from Nowatec Co., Ltd., which became a subsidiary in the previous fiscal year, operating revenue decreased ¥272 million, or 4.3%, year on year to ¥6,121 million resulting from the impact of the cancellation of contracts for certain commissioned properties. Moreover, operating profit increased ¥51 million, or 14.7%, year on year to ¥400 million due mainly to a reduction in operating expenses.

3) Other Businesses

In this segment, which accounts for 1.7% of consolidated operating revenue, operating revenue decreased ¥12 million, or 2.3%, year on year to ¥532 million due mainly to a decrease in construction subcontracting values. Moreover, operating profit increased ¥58 million, or 54.5%, year on year to ¥165 million due mainly to a reduction in operating expenses.

(2) Explanation on Financial Position

Total assets at the end of the third quarter of the current fiscal year were ¥389,738 million, a decrease of ¥4,190 million from the end of the previous fiscal year. Current assets decreased ¥4,780 million from the end of the previous fiscal year to ¥17,063 million. This is mainly due to a decrease in cash and deposits. Non-current assets increased ¥590 million from the end of the previous fiscal year to ¥372,674 million. This is mainly due to a net increase owing to a decrease in buildings and structures resulting from depreciation, etc. and an increase in investment securities associated with a rise in stock prices.

Liabilities at the end of the third quarter of the current fiscal year were ¥216,379 million, a decrease of ¥10,202 million from the end of the previous fiscal year. Current liabilities increased ¥131 million from the end of the previous fiscal year to ¥27,757 million. This is mainly due to a net increase owing to a decrease in current portion of long-term borrowings and increases in commercial papers and current portion of bonds payable. Non-current liabilities decreased ¥10,334 million from the end of the previous fiscal year to ¥188,621 million. This is mainly due to decreases in bonds payable and long-term borrowings. Total interest bearing debt decreased ¥7,078 million from the end of the previous fiscal year to ¥159,329 million.

Net assets at the end of the third quarter of the current fiscal year increased ¥6,012 million from the end of the previous fiscal year to ¥173,358 million. This was mainly due to increases in retained earnings and foreign currency translation adjustment.

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

As stated in the "Notice Regarding the Results of Tender Offer for Shares in the Company by Mitsui O.S.K. Lines, Ltd, the Controlling Shareholder" (available in Japanese only) announced on January 19, 2022, the tender offer of Mitsui O.S.K. Lines, Ltd. was successfully completed. Therefore, the Company will become a wholly owned subsidiary of Mitsui O.S.K. Lines, Ltd. after the prescribed procedures have been completed, and the shares of the Company will be delisted.

3

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Daibiru Corporation published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 08:15:03 UTC.