Jdc CorporationTSE: 1887

Summary of Consolidated Financial Results for the Nine Months Ended February 28, 2021

Apr 14, 2021 at 6:02 AM UTC · Issued by JDC Corporation

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 April 14, 2021 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 Nine Months Ended February 28, 2021 [Japanese GAAP]

April 14, 2021

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, General Manager of Finance Division, Administration Department

Phone: +81-3-3403-3311

Scheduled date of filing quarterly securities report: April 14, 2021

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Not available

Schedule of quarterly financial results briefing session: Not scheduled

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

1. Consolidated Financial Results for the Nine Months Ended February 28, 2021 (June 1, 2020 to February 28, 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


Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
February 28, 2021	86,011	(2.6)	7,907	(6.8)	7,903	(3.7)	5,850	0.9
February 29, 2020	88,300	(0.4)	8,485	(32.2)	8,203	(34.6)	5,798	(38.3)

(	Note) Comprehensive income:	Nine months ended February 28, 2021: ¥6,066 million [10.3 %]
			Nine months ended February 29, 2020: ¥5,501 million [(35.9)%]
		Net Income	Diluted Net Income
		per Share		per Share
	Nine months ended		Yen	Yen
	February 28, 2021		67.46	67.18
	February 29, 2020		66.61	66.33

(2) Consolidated Financial Position

	Total Assets	Net Assets	Equity Ratio

	Million yen	Million yen	%
As of February 28, 2021	131,245	71,662	54.4
As of May 31, 2020	133,937	68,317	50.8

(Reference) Equity: As of February 28, 2021: ¥71,370 million As of May 31, 2020: ¥68,001 million

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, 2020	-	10.00	-	18.00	28.00
	Fiscal year ending	-	10.00	-
	May 31, 2021

	Fiscal year ending
	May 31, 2021				13.00	23.00
	(Forecast)
(Note) Revision to the dividend forecast announced most recently: No
				1

Interim dividends for
the six months ended November 30, 2019:	¥10.00 ordinary dividends
Year-end dividends for
the fiscal year ended May 31, 2020:	¥10.00 ordinary dividends and ¥8.00 special dividends
Interim dividends for the six months ended
November 30, 2020:	¥10.00 ordinary dividends
Year-end dividends for the fiscal year ending
May 31, 2021 (forecast):	¥10.00 ordinary dividends and ¥3.00 special dividends

3. Forecast of Consolidated Financial Results for Fiscal Year Ending May 31, 2021 (June 1, 2020 to May 31, 2021) (% indicates changes from the previous corresponding period.)

	Net Sales		Operating Profit	Ordinary Profit	Profit attributable	Basic earnings
		to owners of parent	per share

	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	130,000	9.7	9,500	(8.4)	9,300	(4.9)	6,500	(18.3)	75.00

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

* Notes:

Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No
Changes in accounting policies, changes in accounting estimates and retrospective restatement
1. Changes in accounting policies due to the revision of accounting standards: No
2. Changes in accounting policies other than 1): No
3. Changes in accounting estimates: No
4. Retrospective restatement: No
Total number of issued shares (common shares)
1. Total number of issued shares at the end of the period (including treasury stock):

February 28, 2021: 98,255,000 shares

May 31, 2020: 98,255,000 shares

Total number of treasury shares at the end of the period: February 28, 2021: 11,468,046 shares
May 31, 2020: 11,113,346 shares
Average number of shares during the period:

Nine months ended February 28, 2021: 86,717,521 shares

Nine months ended February 29, 2020: 87,042,940 shares

(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) (1,133,100 shares as of February 28, 2021 and 1,212,800 shares as of May 31, 2020). 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 (1,179,712 shares for the nine months ended February 28, 2021 and 1,311,514 shares for the nine months ended February 29, 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) (500,900 shares as of February 28, 2021 and 0 shares as of May 31, 2020). 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 (488,643 shares for the nine months ended February 28, 2021 and 0 shares for the nine months ended February 29, 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.

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Nine Months Ended February 28, 2021 (June 1, 2020 to February 28, 2021)

(1) Non-consolidated Operating Results

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

			Net Sales				Operating Profit		Ordinary Profit	Profit

	Nine months ended	Million yen	%		Million yen	%		Million yen	%	Million yen	%
	February 28, 2021	76,272	(6.7)		7,408	(7.8)		7,503	(4.2)	5,571	0.8
	February 29, 2020	81,791	(0.2)		8,031	(32.4)		7,835	(34.8)	5,526	(38.8)

			Net Income per Share		Diluted Net Income per Share

	Nine months ended						Yen					Yen
	February 28, 2021					64.24					63.98
	February 29, 2020					63.49					63.23
(2) Non-consolidated Financial Position
			Total assets		Net assets	Equity ratio

			Million yen				Million yen		%
	As of February 28, 2021		116,281				67,365		57.9
	As of May 31, 2020			118,533				64,357		54.3

(Reference) Equity: As of February 28, 2021: ¥67,365 million As of May 31, 2020: ¥64,357 million

2. Forecast of Non-consolidated Financial Results for the Fiscal Year Ending May 31, 2021 (June 1, 2020 to May 31, 2021)

(% 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	114,000	5.6	7,400	(16.8)	5,100	(30.6)	58.85

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

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

2. Quarterly Consolidated Financial Statements and Primary Notes

(1) Quarterly Consolidated Balance Sheet

				(Million yen)

		As of May 31, 2020	As of February 28, 2021

Assets
Current assets
Cash and deposits		27,772		17,318
Notes receivable, accounts receivable from	36,353	45,412
completed construction contracts and other

Costs on construction contracts in progress		4,157		2,958
Costs on development business and other	327	949
Advances paid		3,394		3,359
Other	8,220	6,243
Allowance for doubtful accounts		(9)		(10)
Total current assets	80,216	76,232
Non-current assets
Property, plant and equipment	39,688	40,976
Intangible assets		619		873
Investments and other assets
Investment securities		9,015		9,090
Retirement benefit asset	1,063	1,204
Deferred tax assets		673		46
Other	3,144	3,243
Allowance for doubtful accounts		(483)		(420)
Total investments and other assets	13,412	13,163
Total non-current assets		53,721		55,013
Total assets		133,937	131,245

				(Million yen)

		As of May 31, 2020	As of February 28, 2021

Liabilities
Current liabilities
Notes payable, accounts payable for			23,185	17,317
construction contracts and other

Short-term borrowings	1,212	3,964
Income taxes payable			1,603	719
Advances received on construction contracts	10,275	5,951
in progress

Advances received on development projects			159	451
Deposits received	8,197	11,096
Provision for warranties for completed			733	939
construction

Provision for loss on construction contracts	169	103
Provision for bonuses			-	789
Provision for bonuses for directors (and other	119	80
officers)

Provision for loss on business liquidation			157	128
Other	3,127	1,698
Total current liabilities			48,940	43,238
Non-current liabilities
Long-term borrowings			13,175	12,822
Provision for share-based remuneration	618	577
Provision for loss on litigation			12	1
Retirement benefit liability	492	480
Other			2,380	2,462
Total non-current liabilities	16,680	16,344
Total liabilities			65,620	59,582
Net assets
Shareholders' equity
Share capital	5,012	5,012
Capital surplus			18,301	18,333
Retained earnings	46,109	49,485
Treasury shares			(2,267)	(2,502)
Total shareholders' equity	67,156	70,329
Accumulated other comprehensive income
Valuation difference on available-for-sale	1,455	1,577
securities

Remeasurements of defined benefit plans			(610)	(535)
Total accumulated other comprehensive income	845	1,041
Non-controlling interests			315	291
Total net assets	68,317	71,662
Total liabilities and net assets			133,937	131,245

Quarterly Consolidated Statements of Income and Quarterly Comprehensive Income
Quarterly Consolidated Statement of Income Nine months through February

				(Million yen)

		For the nine months	For the nine months
		ended February 29, 2020	ended February 28, 2021

Net sales
Net sales of completed construction contracts	84,980	77,509
Net sales in development business and other		3,320		8,501
Total net sales	88,300	86,011
Cost of sales
Cost of sales of completed construction contracts	70,064	64,744
Cost of sales in development business and other		2,857		7,226
Total cost of sales	72,922	71,971
Gross profit
Gross profit on completed construction contracts	14,916	12,765
Gross profit on development business and other		462		1,275
Total gross profit	15,378	14,040
Selling, general and administrative expenses		6,892		6,132
Operating profit	8,485	7,907

Non-operating income

Interest income

Dividend income

Other

Total non-operating income

Non-operating expenses

Interest expenses

Interest expenses of rental payments Provision of allowance for doubtful accounts


		3	0
		267	238
		131	72
		403	311

		125	139
		50	47
		385	-

Other	123	128
Total non-operating expenses	685	315
Ordinary profit	8,203	7,903
Extraordinary income
Gain on sales of non-current assets	13	58
Gain on sales of investment securities	382	304
Reversal of provision for loss on litigation	70	-
Other	-	15
Total extraordinary income	466	378
Extraordinary losses
Loss on valuation of investment securities	54	-
Impairment loss	20	-
Total extraordinary losses	74	-
Profit before income taxes	8,594	8,281
Income taxes - current	1,021	1,599
Income taxes - deferred	1,754	811
Total income taxes	2,775	2,411
Profit	5,819	5,870
Profit attributable to non-controlling interests	20	20
Profit attributable to owners of parent	5,798	5,850

Quarterly Consolidated Statement of Comprehensive Income

Nine months through February

	(Million yen)

For the nine months	For the nine months
ended February 29, 2020	ended February 28, 2021

Profit

Other comprehensive income

Valuation difference on available-for-sale securities Remeasurements of defined benefit plans, net of tax

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to Comprehensive income attributable to owners of parent

Comprehensive income attributable to non- controlling interests

5,819	5,870

(280)	122
(37)	74
(317)	196
5,501	6,066

5,480	6,046

20	20

4. Supplementary Information

[Non-consolidated] Status of orders, net sales and projects in process 1) Orders

(Million yen)

			For the nine months	For the nine months			For the fiscal year
		Category	ended February 29,	ended February 28,	Change
		ended May 31, 2020
				2020		2021

			Amount		Composition	Amount		Composition	Amount	Percentage	Amount	Composition
				ratio		ratio	ratio

		Public sector in Japan	12,445		21.8%	21,644		30.1%	9,199	73.9%	18,740	20.9%
Civil
	Private sector in Japan	13,735		24.1%	10,736		14.9%	(2,999)	(21.8%)	19,657	21.9%
Engineering
Overseas	-		-	-		-	-	-	-	-
Business
		Subtotal	26,181		45.8%	32,380		45.1%	6,199	23.7%	38,397	42.8%

		Public sector in Japan	4,645		8.1%	13		0.0%	(4,631)	(99.7%)	5,422	6.0%

Building		Private sector in Japan	20,315		35.6%	29,362		40.9%	9,047	44.5%	39,219	43.8%

Business		Overseas	4,152		7.3%	3,167		4.4%	(985)	(23.7%)	4,068	4.5%


		Subtotal	29,113		51.0%	32,543		45.3%	3,429	11.8%	48,710	54.3%

		Public sector in Japan	17,091		29.9%	21,658		30.1%	4,567	26.7%	24,163	27.0%

Total		Private sector in Japan	34,051		59.6%	40,098		55.8%	6,047	17.8%	58,876	65.7%

	Overseas	4,152		7.3%	3,167		4.4%	(985)	(23.7%)	4,068	4.5%


		Subtotal	55,294		96.8%	64,923		90.4%	9,628	17.4%	87,108	97.2%

	Other Business	1,813		3.2%	6,932		9.6%	5,118	282.2%	2,533	2.8%

	Grand total	57,108		100.0%	71,855		100.0%	14,747	25.8%	89,641	100.0%

2) Net sales

(Million yen)

			For the nine months	For the nine months			For the fiscal year
		Category	ended February 29,	ended February 28,	Change
		ended May 31, 2020
				2020		2021

			Amount		Composition	Amount		Composition	Amount	Percentage	Amount	Composition
				ratio		ratio	ratio

		Public sector in Japan	28,137		34.4%	19,328		25.3%	(8,809)	(31.3%)	34,675	32.1%
Civil
	Private sector in Japan	8,479		10.4%	11,949		15.7%	3,469	40.9%	11,628	10.8%
Engineering
Overseas	-		-	-		-	-	-	-	-
Business

		Subtotal	36,617		44.8%	31,277		41.0%	(5,339)	(14.6%)	46,304	42.9%

		Public sector in Japan	2,765		3.4%	6,927		9.1%	4,162	150.5%	4,145	3.8%

Building		Private sector in Japan	37,943		46.4%	26,894		35.3%	(11,048)	(29.1%)	50,928	47.2%

Business		Overseas	2,739		3.3%	4,203		5.5%	1,463	53.4%	3,993	3.7%


		Subtotal	43,448		53.1%	38,026		49.9%	(5,421)	(12.5%)	59,067	54.7%

		Public sector in Japan	30,902		37.8%	26,256		34.4%	(4,646)	(15.0%)	38,821	36.0%
Total		Private sector in Japan	46,422		56.8%	38,844		50.9%	(7,578)	(16.3%)	62,557	58.0%

	Overseas	2,739		3.3%	4,203		5.5%	1,463	53.4%	3,993	3.7%


		Subtotal	80,065		97.9%	69,303		90.9%	(10,761)	(13.4%)	105,372	97.6%

	Other Business	1,725		2.1%	6,968		9.1%	5,242	303.8%	2,565	2.4%

	Grand total	81,791		100.0%	76,272		100.0%	(5,518)	(6.7%)	107,937	100.0%

3) Projects in process

(Million yen)

			For the nine months	For the nine months			For the fiscal year
		Category	ended February 29,	ended February 28,	Change
		ended May 31, 2020
				2020		2021

			Amount		Composition	Amount		Composition	Amount	Percentage	Amount	Composition
				ratio		ratio	ratio

		Public sector in Japan	39,949		33.7%	42,022		34.9%	2,073	5.2%	39,706	31.8%
Civil
	Private sector in Japan	19,231		16.2%	20,790		17.3%	1,559	8.1%	22,003	17.6%
Engineering
Overseas	-		-	-		-	-	-	-	-
Business

		Subtotal	59,180		49.9%	62,813		52.1%	3,632	6.1%	61,710	49.4%

		Public sector in Japan	11,374		9.6%	3,856		3.2%	(7,517)	(66.1%)	10,770	8.6%

Building		Private sector in Japan	34,972		29.5%	43,358		36.0%	8,386	24.0%	40,891	32.7%

Business		Overseas	12,841		10.8%	10,466		8.7%	(2,374)	(18.5%)	11,502	9.2%


		Subtotal	59,188		49.9%	57,681		47.9%	(1,506)	(2.5%)	63,165	50.6%

		Public sector in Japan	51,323		43.3%	45,879		38.1%	(5,444)	(10.6%)	50,477	40.4%

Total		Private sector in Japan	54,204		45.7%	64,149		53.2%	9,945	18.3%	62,895	50.4%

	Overseas	12,841		10.8%	10,466		8.7%	(2,374)	(18.5%)	11,502	9.2%


		Subtotal	118,368		99.9%	120,495		100.0%	2,126	1.8%	124,875	100.0%

	Other Business	156		0.1%	-		0.0%	(156)	(100.0%)	36	0.0%

	Grand total	118,524		100.0%	120,495		100.0%	1,970	1.7%	124,911	100.0%