Phil : Summary of Earnings Report for the Fiscal Year Ended November 2021

Summary of Earnings Report for the Fiscal Year Ended November 2021

	Phil Company, Inc.					January 14, 2022
Name of listed company					TSE
Code	3267			URL	http://philcompany.jp/
Representative:	CEO and Representative	Yuichi Nomi
Contact:	Operating Manager	Yosuke Nishimura	(TEL)	[phone]
Scheduled date of shareholders meeting Feb. 22, 2022	Scheduled date of dividend payment	Feb. 24, 2022
Scheduled date of filing:		Feb. 22, 2022
Additional material of financial result:	No
Result meeting		Yes

(Millions yen, rounded down)

1．Consolidated Results for Fiscal Year Ended November 30, 2021 (Dec. 1, 2020 to Nov. 30, 2021)

(1) Consolidated Business Results					(%: Year-on-year comparison)
	Net Sales		Operating Income	Ordinary Income	Net Income Attributable to
		Owners of Parent
	¥ millions		%	¥ millions	%	¥ millions	%	¥ millions	%
Year Ended Nov. 2021	5,432		36.8	724	456.5	713	626.4	407	-
Year Ended Nov. 2020	3,970		(43.5)	130	(88.1)	98	(90.9)	19	(96.7)

(note) Comprehensive	Year Ended Nov. 2021	407 million yen	--%	Year Ended Nov. 2020	19 million yen (96.7%)
income
	Net income per share	Diluted net income	ROE	Ordinary Income over	Operating Margin
		per share			total asset
	Yen		Yen	%		%	%
Year Ended Nov. 2021	72.25	71.26	14.5		13.5	13.3
Year Ended Nov. 2020	3.42		3.37	0.7		1.9	3.3

(note) Comprehensive

Year Ended Nov. 2021

-1 million yen

Year Ended Nov. 2020

-21 million yen

income

(2) Consolidated Financial Conditions

Total assets

Net Assets

Shareholders' Equity Ratio

Net Asset per Share

¥ millions

¥ millions

%

Yen

Year Ended Nov. 2021

5,450

2,774

50.8

498.05

Year Ended Nov. 2020

5,149

2,854

55.4

497.97

(3) Consolidated Cash Flow

CF from Operation

CF from Investment

CF from Financing

Balance of cash and cash

equivalent

¥ millions

¥ millions

¥ millions

¥ millions

Year Ended Nov. 2021

3,291

(6)

(1,157)

4,193

Year Ended Nov. 2020

(2,438)

(43)

559

2,066

2．Dividend information

Dividend per Share

Total Dividend

Dividend

Dividend ratio over

Ratio

net asset

1Q

2Q

3Q

4Q

Total

Yen

Yen

Yen

Yen

Yen

¥ millions

%

%

Year Ended Nov. 2020

－

0.00

－

0.00

0.00

－

－

－

Year Ended Nov. 2021

－

0.00

－

10.00

0.00

56

13.8

2.0

Year Ending Nov. 2022

－

0.00

－

0.00

0.00

－

(estimate)

(note) Breakdown of dividend paid for fiscal year ended in Nov. 2021

Appreciation for Corona measures dividend 10 yen

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3．Consolidated Business Plan for the year ending Nov. 2022 (Dec. 1, 2021 to Nov. 30, 2022)

						(%: Comparison with the previous period)
							Net Income	Net Income per
	Net Sales	Operating Income	Ordinary Income	Attributable to
	Share
							Owners of Parent
	¥ millions	%	¥ millions	%	¥ millions	%	¥ millions	%	Yen
2Q	1,200	(43.2)	(195)	－	(198)	－	(120)	－	(21.57)
Full year	5,500	1.2	140	(80.7)	130	(81.8)	90	(77.9)	16.18

1. Total number of shares issued (ordinary shares)

• Number of shares issued at year end (inc. treasury stock)

• Treasury stock at year end

• Average number of shares during current quarter

Year Ended Nov. 2021	5,778,000	shares	Year Ended Nov. 2020	5,778,000	shares
Year Ended Nov. 2021	214,280	shares	Year Ended Nov. 2020	49,332	Shares
Year Ended Nov. 2021	5,639,673	shares	Year Ended Nov. 2020	5,747,554	Shares

(Reference) Business figure of parent company

1．Results for Fiscal Year Ended November 30, 2021 (Dec. 1, 2020 to Nov. 30, 2021)

(1) Business Results						(%: Quarter-on-quarter comparison)
	Net Sales		Operating Income	Ordinary Income	Net Income
	¥ millions		%	¥ millions	%	¥ millions	%	¥ millions		%
Year Ended Nov. 2021	3,688		265.7	416	-	742	209.8	477		116.3
Year Ended Nov. 2020	1,008		(72.2)	(353)	-	239	(71.1)	220		(56.6)
	Net income per share	Diluted net income per
	share
			Yen		Yen
Year Ended Nov. 2021			84.73		83.56
Year Ended Nov. 2020			38.43		37.84

1. Financial Conditions

	Total assets	Net Assets	Shareholders' Equity Ratio	Net Asset per Share
	¥ millions	¥ millions	%	Yen
Year Ended Nov. 2021	3,990	2,788	69.8	500.77
Year Ended Nov. 2020	4,291	2,799	65.2	488.33

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1．Overview of business results

(1) Overview of business results for this fiscal year

(Highlights of the fiscal year ended November 30, 2021)

1. The gross profit margin for this fiscal year (31.4%) reached a new record high since the company became listed.
2. The number of inquiries from financial institutions (440) was the highest in our history.
3. The amount of Premium Garage House orders (1.36 billion yen) was 4.6 times that in the previous fiscal year.

(Overview of business results)

During this consolidated fiscal year (December 1, 2020 - November 30, 2021), the economy of Japan continued to face harsh conditions due to factors including the ongoing coronavirus pandemic, rapid spread of infections by mutated strains, and a renewed state of emergency which was declared due to pressure on the health care system. As vaccination progresses, we must continue carefully monitoring the effects on the Japanese and international economies resulting from expectations and signs of the pandemic subsiding.

Under these conditions, the Phil Company Group is operating the Phil Shop aerial park business that aims to benefit all three parties involved - the land owner, tenant, and the community - and the Premium Garage House business for rental housing that includes a garage. These businesses are guided by the Phil corporate philosophy of prosperous coexistence. We provide solutions through two businesses: the "contracted orders scheme" in which we provide land owners with proposals for Phil Park aerial shops, and the "development and sales scheme" for real estate investors in which our company performs all work from buying land to Phil Park aerial shop development and sales.

[1] The gross profit margin for this fiscal year (31.4%) reached a new record high since the company became listed.

The number of contracted orders during this fiscal year was 16, and the number for the development and sales scheme during same period was 3. In the development and sales scheme, we succeeded in completing delivery of three large-scale sales transactions of real estate for sale. As a result, the Phil Company Group in this fiscal year recorded sales of 5,432,354 thousand yen (+36.8% compared to the previous year), gross profit margin of 1,705,785 thousand yen (+96.1%), operating income of 724,912 thousand yen (+456.5%), ordinary income of 713,276 thousand yen (+626.4%), and net income attributable to the owners of the parent of 407,470 thousand yen (compared to 19,660 thousand yen in the previous year). The gross profit margin for this fiscal year (31.4%) reached a new record high since the company became listed.

[2] The number of inquiries from financial institutions (440) was the highest in our history.

During the previous fiscal year, we strengthened our business matching contracts with financial institutions in preparation for business after the coronavirus pandemic ends. During this fiscal year, we received 440 inquiries from financial institutions - the previous record was 345 inquiries during the fiscal year ended November 30, 2019. In particular, the number of inquiries related to Premium Garage Houses was 239, accounting for more than 50% of the total. Premium Garage Houses have become recognized as more than just places to park a car. They are "spaces that allow new ways of living" and satisfy a diverse range of needs as places for hobbies or work. The number of registrations in our original tenant waiting list registration system is continuing to grow, and supply is still unable to keep up with demand.

[3] The amount of Premium Garage House orders (1.36 billion yen) was 4.6 times that in the previous fiscal year.

During this fiscal year, the number of contracted orders for the contracted orders scheme was 31, with a total order price of 3,054,069 thousand yen. Of the 31 orders, 5 were contracted orders for Phil Park aerial shops with a total order price of 1,693,900 thousand yen (compared to 981,202 thousand yen for the previous year), and 26 were contracted orders for Premium Garage Houses with a total order price of 1,360,169 thousand yen (compared to 294,077 thousand yen for the previous year). Orders received for Premium Garage House were up 4.6 times compared to the previous fiscal year..

In the Phil Park aerial shop business, the effects from the state of emergency that was declared due to the coronavirus pandemic resulted in a stronger tendency towards a wait-and-see approach among the financial institutions that introduce land owners to our

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business, and the number of inquiries remained approximately the same. It continues to appear that a full recovery in the number of orders will require some time. On the other hand, there are expectations for a continuing recovery as progress is made in vaccinations, and the amount of orders is on a recovery course compared with the previous fiscal year.

In the Premium Garage House business, we did not originally have construction functions when we acquired Phil Construction Co., Ltd. as a subsidiary in January 2019. Phil Construction is responsible for the design and construction operations of the Phil Company Group, and underwent a review of its design and construction processes during the pandemic in the preceding consolidated fiscal year. As a result, the systems in the Premium Garage House business have been improved so they can produce the same level of revenue as the Phil Park aerial shop business. This has made Premium Garage House a land utilization product on a level which can be proposed to land owners through financial institutions. Backed by growing demand for residences that include garages during the pandemic, the number of inquiries related to Premium Garage Houses coming through financial institutions increased during this consolidated fiscal year, and the amount of orders also increased.

With diversification of lifestyles and changes in senses of values, the ways of using garages attached to residences is also changing. Rather than simply being a place to keep a car, they are changing to become places where people can enjoy hobbies or work. In this environment, our consolidated subsidiary Premium Garage House Inc. is aiming to evolve as a company that offers lifestyle proposals for a new age suitable for the changes in the market. It changed its logo mark (City × Diversity × Garage) to one that expresses the excitement of life with a garage, and also renovated its homepage. It has created an online platform centered on the homepage that centralizes information for potential tenants in the tenant waiting list registration system, as well as for land owners who have contacted us and builders.

In the areas of design and construction, we are planning to obtain certification for our original construction methods in order to create a supply system that can support sales growth and mass production in all parts of the country.

During this fiscal year, the number of properties for contracted orders scheme, and number of properties for development and sales scheme were as follows.

Contracted orders scheme

No. of delivered properties		1Q		2Q		3Q		4Q		Total
Year Ended Nov. 2021		0		3		4		9		16
Year Ended Nov. 2020		1		7		13		7		28
"Development and sales scheme"
No. of delivered properties	1Q	2Q	3Q	4Q	Total
Year Ended Nov. 2021	Land + Bldgs	0	1	1	1	3
Year Ended Nov. 2020	Land + Bldgs	0	0	0	1	1

For the contracted orders scheme, the table below shows the sales situation, as well as growth and the specific amounts of orders received, the number of orders, and the order balance.

Contracted orders scheme

	Order received *1		1Q		2Q		3Q		4Q
	No.	(Thousands yen)	No.	(Thousands yen)	No.	(Thousands yen)	No.	(Thousands yen)
		Phil Park aerial shop	2	1,227,283	2	370,721	1	78,328	0	17,567
		business
Year Ended
	Premium Garage House	5	236,390	3	234,440	6	311,869	12	577,470
Nov. 2021
		Total	7	1,463,673	5	605,161	7	390,197	12	595,037
Year Ended	Total	5	731,234	0	9,948	1	28,755	9	505,341
Nov. 2020

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	Order received *1		Total
	No.	(Thousands yen)	YoY
	Phil Park aerial shop business	5	1,693,900	172.6％
Year Ended Nov.
Premium Garage House	26	1,360,169	462.5％
2021
	Total	31	3,054,069	239.5％
	Phil Park aerial shop business	8	981,202	―
Year Ended Nov.
Premium Garage House	7	294,077	―
2020
	Total	15	1,275,279	30.4％

*1: The amount of orders received is the total amount of new orders received in the contracted orders scheme of the Phil Park aerial shop business during the above consolidated fiscal year (including orders for interior work and other additional work).

Balance of order *2	(Thousands yen)	YoY
As of Nov. end 2021	2,587,870	177.5％
As of Nov. end 2020	1,458,000	43.4％

*2: The order balance is the total remaining balance of orders which have not yet been completed and delivered in the contracted orders scheme of the Phil Park aerial shop business during the above consolidated fiscal year (including orders for interior work and other additional work).

The table below shows the specific amounts for the development and sales scheme, which handles everything from the acquisition of land to the development and sale of Phil Park aerial shops are shown in the table below.

Development and sales scheme

Amount of development and sales scheme *3	No.	(Thousands yen)	YoY
As of Nov. end 2021	3	403,381	18.7％
As of Nov. end 2020	5	2,155,974	127.5％

*3: The amount of development is the total amount expended on land and buildings for Phil Park aerial shops developed as part of the "development and sales scheme" during the above period*5.

Number of development	1Q		2Q		3Q		4Q	Total
and sales scheme
Year Ended Nov. 2021		0		0		1	0	1
Year Ended Nov. 2020		1		1		0	0	2

One important issue that we face is reinforcing our personnel, and the number of consolidated employees at the end of Nov. 2021 was 48 (compared to 45 at the end of the fiscal year ended November 30, 2020). During the coming three years, we will expand our planning and development staff by concentrating our efforts on participating in nationwide recruiting events and working with universities to hire recent graduates. We will also focus on mid- career hires of professional staff who can expand our follow-up system in new business areas and specialized areas.

Our team composed of recent graduates and experienced professionals will help us maintain a high operation level while also training personnel as we aim to recruit more than 100 new employees over the next three years.

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