October 4, 2021

Consolidated Financial Results

for the Nine Months Ended August 31, 2021

(Japanese Accounting Standards)

Name of listed company:

NEXTAGE Co., Ltd.

Stock Exchange Listings:

Tokyo, Nagoya

Stock code:

3186

URL:

https://www.nextage.jp/

Representative:

Seiji Hirota, President and CEO

Contact person:

Masashi Nomura

Executive Officer, General Manager of Administration Division

Tel: +81-52-228-6914

Scheduled date to file Quarterly Securities Report:

October 4, 2021

Scheduled date to commence dividend payments:

－

Supplementary explanatory materials prepared:

Yes

Explanatory meeting:

No

(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated Financial Results for the Nine Months Ended August 31, 2021 (From December 1, 2020 to August 31, 2021)

(1) Consolidated Operating Results

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Nine months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

August 31, 2021

212,093

18.7

9,804

164.1

9,604

174.9

6,893

174.3

August 31, 2020

178,716

10.9

3,712

(24.3)

3,493

(26.8)

2,513

(26.7)

Reference: Comprehensive

income

For the nine months ended August 31, 2021: ¥6,924 million, [176.0%]

For the nine months ended August 31, 2020: ¥2,508 million, [(26.8)%]

Basic earnings

Diluted earnings

per share

per share

Nine months ended

Yen

Yen

August 31, 2021

90.96

89.19

August 31, 2020

33.62

32.03

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

As of

Millions of yen

Millions of yen

%

August 31, 2021

108,243

38,781

35.8

November 30, 2020

99,633

30,017

30.1

Reference: NEXTAGE shareholders' equity

As of August 31, 2021: ¥38,780 million

As of November 30, 2020: ¥30,013 million

2. Cash Dividends

Annual dividends per share

First

Second

Third

Fiscal

Annual

quarter

quarter

quarter

year-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

0.00

-

7.00

7.00

November 30, 2020

Fiscal year ending

-

0.00

-

November 30, 2021

Fiscal year ending

7.00

7.00

November 30, 2021

(forecasts)

Note: Revision to the latest forecast

of dividends: None

3. Consolidated Financial Forecasts for the Fiscal Year Ending November 30, 2021 (From December 1, 2020 to November 30, 2021)

(Percentages indicate year-on-year changes.)

Profit attributable

Basic earnings

Net sales

Operating profit

Ordinary profit

to owners of

per share

parent

Millions

%

Millions

%

Millions

%

Millions

%

Yen

of yen

of yen

of yen

of yen

Fiscal year ending

285,000

18.2

13,300

94.9

13,000

99.2

9,200

94.1

121.40

November 30, 2021

Note: Revision to the

latest forecast

of financial results: Yes

Notes:

  1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): None
    New: None
    Excluded: None
  2. Adoption of accounting method specific to preparation of quarterly consolidated financial statements: None
  3. Changes in accounting policies, changes in accounting estimates, and restatement of revisions
    1. Changes in accounting policies due to revisions to accounting standards and other guidelines: None
    2. Changes in accounting policies due to reasons other than a. above: None
    3. Changes in accounting estimates: None
    4. Restatement of revisions: None
  5. Number of common shares issued
    1. Total number of issued shares at the end of the period (including treasury stock)

As of August 31, 2021

80,038,400 shares

As of November 30, 2020

77,360,000 shares

b. Number of shares of treasury stock at the end of the period

As of August 31, 2021

3,397,771 shares

As of November 30, 2020

3,608,571 shares

c. Average number of shares

For the nine months ended August 31, 2021

75,781,585 shares

For the nine months ended August 31, 2020

74,762,307 shares

(Note)The Company introduced a trust-type employee stock ownership incentive plan (E-Ship) in October 2020.

The number of shares of treasury stock at the end of the period includes the following number of shares of the Company held by the NEXTAGE Employee Stock Ownership Trust Account, a dedicated account for E-Ship set up with a trust

bank.

As of August 31, 2021

1,380,900 shares

In calculation of the average number of shares, the number of shares of treasury stock deducted from the number of common shares issued includes the following number of shares of the Company owned by the above-mentioned

account.

For the nine months ended August 31, 2021

1,468,500 shares

* This report is not subject to quarterly review by certified public accountants or audit firms.

This report is not subject to quarterly review procedures under the Financial Instruments and Exchange Act, and at the time of disclosure of the report, review procedures for the quarterly financial statements under the Financial Instruments and Exchange Act have not been completed.

* Proper use of financial forecasts, and other special matters

Financial forecasts and other statements about the future that are included in this material are based on information currently in the possession of the Company and certain conditions judged reasonable by the Company. Actual results may differ significantly due to various factors. For notes on the conditions for financial forecasts and the use of financial forecasts, please refer to "Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information" on page 3 of the attached documentation.

Attachment Contents

1. Qualitative Information on Quarterly Financial Results………………………………………………….….

2

(1)

Explanation of Operating Results.………...…….…….…………………………………………….…........

2

(2)

Explanation of Financial Position…….………….…….…………………………………………................

3

(3)

Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information.......

3

2. Matters concerning the Summary Information (Notes)…………………………….……....…............................

4

(1) Changes in Significant Subsidiaries during the Consolidated Quarter……………….…….…….….….…...

4

(2) Adoption of Specific Accounting Methods for the Preparation of Quarterly Consolidated Financial

Statements…….….….….….….….….….….….….….….….….….….….….….….….….….….….….…....

4

(3) Changes in Accounting Policies, Accounting Estimates and Restatement of Revisions………...…….…….

4

3. Quarterly Consolidated Financial Statements and Primary Notes…………………………….……....…...........

5

(1) Quarterly Consolidated Balance Sheets…………………………………………….…….…….….….……..

5

  1. Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income……………………………………………………………………………………………………….. 7

(3) Notes to the Quarterly Consolidated Financial Statements……………………………….……...…….…….

9

Uncertainties of entity's ability to continue as going concern……………………………………………….

9

Segment information, etc. …………………………………………………………………………………...

9

Significant events after reporting period…………………………………………………………………….

9

1

1. Qualitative Information on Quarterly Financial Results

  1. Explanation of Operating Results Status of Financial Results

During the nine months ended August 31, 2021, the Japanese economy is expected to continue to recover as a result of various government policies, while preventative measures are being taken to prevent the spread of the novel coronavirus infection (COVID-19), with vaccine rollout being promoted. However, attention must be paid to trends in COVID-19 in Japan and overseas, as well as the impact of volatility in global financial and capital markets.

In this environment, in the Japanese used car sales industry, domestic used car registrations from December 2020 through August 2021 were 4,813,614 vehicles (up 1.2% year on year). By vehicle type, used car registrations were 2,484,588 vehicles (up 0.7% year on year) for ordinary passenger cars and 2,329,026 vehicles (up 1.6% year on year) for kei-cars for the same period. (Source: statistical data from the Japan Automobile Dealers Association and Japan Light Motor Vehicle and Motorcycle Association.)

In this business environment, based on the management philosophy of "Be loved by Customers," the NEXTAGE Group has operated stores with "Lifetime value" and "Active users" in mind.

In dealership openings, the Group opened Oita Store in Oita Prefecture and Morioka Store, which is the first in Iwate Prefecture, in July 2021 as general stores. In addition, the Group opened 2 vehicle purchasing stores as storefront additions to new dealerships, as well as Katsushika Store in Tokyo and Hiroshima Misasa Store, which is the first in Hiroshima Prefecture, in July 2021 and Ikebukuro Store in Tokyo in August 2021, all as vehicle purchasing stores in a standalone format.

As a result, for the nine months to August 31, 2021, the Group posted net sales of ¥212,093 million (up 18.7% year on year), operating profit of ¥9,804 million (up 164.1% year on year), ordinary profit of ¥9,604 million (up 174.9% year on year), and profit attributable to owners of parent of ¥6,893 million (up 174.3% year on year).

Used car dealership business

In the used car dealership business, the store count as of August 31, 2021 was 93 dealership bases (comprising 145 storefronts). New store openings consisted of 1 dealership base (1 storefront) in the Hokkaido-Tohoku region, 2 dealership bases (2 storefronts) in the Kanto-Koshinetsu region, 1 dealership base (1 storefront) in the Chugoku-Shikoku region, and 1 dealership base (1 storefront) in the Kyushu-Okinawa region. In addition, the Group opened 2 vehicle purchasing specialist stores as storefront additions.

New car dealership business

In the new car dealership business, the store count as of August 31, 2021 was 21 dealership bases (comprising 23 storefronts).

As a result, the store count as of August 31, 2021 was 114 dealership bases (comprising 168 storefronts).

2

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Nextage Co. Ltd. published this content on 04 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 October 2021 06:22:40 UTC.