SAMTY Co., Ltd.
Financial Result
Explanatory Material
Fiscal Year Ended November 30, 2019

S-RESIDENCE Shin-Okachimachi East (Taito-ku, Tokyo)

TSE First Section 3244

Contents
1. Consolidated Earnings Summary
for Fiscal Year Ended November 30, 2019
2. Topics
for Fiscal Year Ended November 30, 2019

P.３
P.５

(1) Capital and Business Alliancewith Daiwa Securities Group Inc.
(2) Development of Overseas Business(3) Hotel Development (Newly Developed Hotels)(4) Acquisition of Profitable Real Estate(5) Expansion of Business Area
(6) Initiatives with Samty Residential Investment Corporation

3. Business Development
for Year Ending November 30, 2020

P.12

4. New Medium-Term Management Plan
“Samty Toughening Plan”
5. Key Strategies Samty Group Business Model [Key Strategy 1]

P.15(1) Realization of Initiatives with Daiwa Securities Group Inc.
(2) Business Development Overseas

P.17

 Investment Plan Progress Status [Key Strategy 2]
 [Real Estate Business] Purchase Status – Land for Projects[Key Strategy 2]
 [Real Estate Business] Sales Results– Development and Renovation Securitization/
Investment Unit Sales in Lots [Real Estate Business] Residence Development Projects
 [Property Leasing Business] Acquisition Results[Key Strategy 2]
 [Real Estate Business] Development Planfor Hotels and Office Buildings [Key Strategy 3]
 Financial Strategy

6. Consolidated Earnings Forecast
for Year Ending November 30, 2020
7. Fiscal Year Ended November 30, 2019
Overview of Financial Results
 Fiscal Year Ended November 30, 2019

P.27

8. Dividend Policy/Shareholder Returns
9. Shares

P.39

P.29

Overview of Consolidated Financial Statements
 Fiscal Year Ended November 30, 2019
Consolidated Balance Sheet Overview
 Financial Position
 Fiscal Year Ended November 30, 2019
Overview of Consolidated Financial Statements
by Segment
 Securing Ongoing Steady Profit
 [Real Estate Business]
Overview of Consolidated Financial Statements [Property Leasing Business]
Overview of Consolidated Financial Statements [Property Leasing Business]
Asset Holdings by Region, Occupancy Rates
 [Other Business]
Overview of Consolidated Financial Statements

P.41

Consolidated Earnings Summary

for Fiscal Year Ended November 30, 20193

Consolidated Earnings Summary
for Fiscal Year Ended November 30, 2019
◆Net sales◆Ordinary income

85.5bn (+1.5% YoY)
13.1bn (+13.4％ YoY)

◆Operating income◆Net income

15.3bn (+9.7％ YoY)
9.7bn (+14.7％ YoY)

Increases in Income and Profit Achieved for Seven Consecutive Fiscal Years
Net sales(¥mn)
90,00080,00070,00060,00050,00040,00030,00020,00010,000084,27452,40960,47938,458

2015年
FY11/15
11月期

2016年
FY11/16
11月期

2017年
FY11/17
11月期

2018年
FY11/18
11月期

14,000

11,63512,00010,000
6,788

8,000

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

2019年
FY11/19
11月期

Ordinary income

(¥mn)

6,000

85,552

13,193Operating income(¥mn)

14,033

5,932

2015年
FY11/15
11月期

8,586

2016
FY11/16
11月期

10,131

2017
FY11/1711月期

12,000
8,489

8,000
6,000

3,872

2018
FY11/18
11月期

2019
FY11/1911月期

Net income(¥mn)
10,0008,461

15,395

4,412

4,628

2015年
FY11/15
11月期

2016
FY11/16
11月期

9,740

5,661

4,000

4,000

2,000

2,000

0

0
2015年
FY11/15
11月期

2016
FY11/16
11月期

2017
FY11/17
11月期

2018
FY11/18
11月期

2019
FY11/19
11月期

2017
FY11/1711月期＊Profit attributable to owners of parent

2018
FY11/18
11月期

2019
FY11/1911月期

4Topicsfor Fiscal Year Ended November 30, 20195

Topics for Fiscal Year Ended November 30, 2019 (1)Capital and Business Alliance with Daiwa Securities Group Inc.
■Purpose of and Reason for Capital Business Alliance
1. To jointly launch fund for development of large-scale hotels
2. To form hotel REIT by fiscal 2020 (asset management work to be entrusted to Samty AM)
3. To receive information Daiwa Securities Group Inc. has on corporate real estate
4. To cooperate with Daiwa Securities Group Inc. in development in Asia
5. To cooperate on real estate sales to wealthy individuals and crowdfunding

Capital Structure

29.9％（Note 1）

67.0％
9.9％

AM contracts
40.15％（Note 2）
33.0％

By incorporating Daiwa Securities Group Inc.ʼs creditworthiness,working to benefit from the effects of project information diversification,
project-scale upsizing and financing cost reductions(Note 1) The equity ratio after the offering is that after payment was completed on June 14, 2019. It is the value when all the new bonds
with stock acquisition rights have already been converted. Includes the ownership ratio of Daiwa PI Partners Co., Ltd. (2.67%).
(Note 2) The figure after the capital increase through third-party allotment with a payment date of August 26, 2019, and subsequent additional
acquisitions on the market. Includes the ownership ratio (1.83%) of Daiwa PI Partners Co., Ltd.

6

Topics for Fiscal Year Ended November 30, 2019 (2)Development of Overseas Business
Establishment of Overseas Subsidiaries
In February, established SAMTY ASIA INVESTMENTS PTE. LTD. in Singapore throughjoint investment with Daiwa Securities Group company ACA Investment Pte Ltd.
In November, opened an office and started local representation (two people).
Mainly invests in real estate companies and PJs in Southeast Asian countries.
May 21, 2019
Interview article on the inroads Samty has made into overseas business published in the Vietnam edition of the Asian
economic information magazine, The Daily NNA

Source: NNN JAPAN CO., LTD. (https://www.nna.jp/)• This article published with the permission of NNA todisseminate Asian economic business information.

7

Topics for Fiscal Year Ended November 30, 2019 (3)Hotel Development (Newly Developed Hotels)With regard to the “roll-out of hotel development business,” which is a key strategy of the “Samty Toughening Plan,”
our Medium-Term Management Plan, we opened S-PERIA INN Osakahommachi and S-PERIA INN Kyoto, our thirdand fourth hotel developments.
We plan to open more hotels from the current fiscal year onward.
[S-PERIA INN Osaka Hommachi]
Opened February 2019
Address: Nishi-ku, Osaka
Guest rooms: 125[S-PERIA Hotel Kyoto]

Opened April 2019
Address: Shimogyo-ku, Kyoto
Guest rooms: 165

Hotels Scheduled to Open from Current Fiscal Year Onward[Planned to Open in 2020]

Mercure Kyoto Station
Address: Shimogyo-ku, Kyoto
Guest rooms: 225 (Planned)[Planned to Open in 2021](Provisional name)Agora Kyoto Shijo-karasuma
kita
Address: Shimogyo-ku, Kyoto
Guest rooms: 80 (Planned)(Provisional name)Agora Kyoto Shijo-karasuma
minamiAddress: Shimogyo-ku, Kyoto
Guest rooms: 140 (Planned)

Kyoto Oike HOTEL PJ
Address: Nakagyo-ku, Kyoto
Guest rooms: 120 (Planned)[Planned to Open in 2022]

Ibis Styles Nagoya
Address: Nakamura-ku, Nagoya
Guest rooms: 284 (Planned)

HanedaHOTEL PJ
Address: Tokyo
Guest rooms:
362 (Planned)

Fukuoka
HOTEL PJ
Address: Fukuoka
Guest rooms:
87 (Planned)

HOTEL
Takayama PJ
Address: Takayama
Guest rooms:
161 (Planned)

8Topics for Fiscal Year Ended November 30, 2019 (4)Acquisition of Profitable Real Estate
Office Building

Including Daiwa Securities Osaka
Branch, acquired four office buildings
in centers of Tokyo and Nagoya

Hotel

Acquired newly built NEST HOTEL
Hiroshima Hatchobori
Hotel REIT pipeline planned to beformed in fiscal 2020

Residence

Acquired 53 residential
properties in major cities
throughout Japan
Steadily accumulating
profitable real estate
SAMTY Miyakojima
Takakuracho (Osaka)

Daiwa Securities Osaka Branch(Kita-ku, Osaka)

Hatsudai Center Hirokoji YMD Bldg.
HERIOS Bldg.
(Naka-ku, Nagoya)Bldg.
(Shinagawa-ku,(Shibuya-ku,Tokyo)
Tokyo)SAMTY Atsuta Rejidence(Nagoya)SAMTY Maruyamasakura(Sapporo)

SAMTY Abeno Showacho(Osaka)SAMTY Kagoshima ekimae Bayside Ⅱ(Kagoshima)

9Topics for Fiscal Year Ended November 30, 2019 (5)Expansion of Business Area
As part of the planned expansion of our business area, which is a key strategy of the “Samty Toughening Plan,” we opened
the Shinjuku Business Office of the Tokyo Branch Office and the Yokohama Business Office on April 1, 2019, and expanded
the sales area in metropolitan regions.
In addition, on December 3, 2019, we opened a Hiroshima Branch Office and are working to seize business
opportunities in the Chugoku and Shikoku regions. In the years to come, we will promote the acquisition of profitable realestate and the development of residences, offices and hotels in metropolitan areas and major regional cities nationwide.

Feb. 2011 Tokyo Branch Office establishedJun. 2012 Fukuoka Branch Office establishedMay 2015 Sapporo Branch Office establishedMar. 2016 Nagoya Branch Office establishedApr. 2019 Shinjuku and Yokohama Business
Offices establishedDec. 2019 Hiroshima Branch Office established

Hiroshima Branch

Sapporo BranchTokyo Branch

Shinjuku Business Office
Yokohama Business Office

Fukuoka Branch
Nagoya Branch

Osaka Head Office10Topics for Fiscal Year Ended November 30, 2019 (6)Initiatives with Samty Residential Investment Corporation
In FY11/19, mainly in major cities across Japan Samty Residential Investment
Corporation sold 27 residential properties for a transfer price of ¥24.3 billion.
As a result, the scale of Samty Residential Investment Corporationʼs assets grew to¥108.9 billion.

Contributing to SRR’s Growth
Growth in scale toover ¥100 billion(Note)¥30.5
billionAt time of listing
上場時
(June
2015)

As of January 2020
本取組後

Note: Scale of assets after sale of property planned for saleat the end of January 2020.

Main Properties Transferred

S-RESIDENCE Shigahontori¥108.9billionS-RESIDENCE Aoi

S-RESIDENCE Chikusa

S-RESIDENCE Motoyawata

11Business Development
for Year Ending November 30, 202012

Business Development for Year Ending November 30, 2020 (1)Realization of Initiatives with Daiwa Securities Group Inc.
■ Hotel Development Fund, hotel REIT
Formation of Hotel
Development Fund

Response to burgeoning inbound demand● Maximum utilization of Samtyʼs development capabilities and Daiwa Securities Groupʼs financing functions● Up to ¥30 billion investment● Development fund concept • Targeting inbound and domestic travelers• Targeting wide range of areas, such as business districts and tourist attractions• Full-service hotels or hotels specializing in accommodation

Based on the above concept, we will promote the formation of thehotel development fund jointly with Daiwa Securities Group Inc.

Hotel Takayama Project
In a different approach to the abovementioned development fund, Daiwa Securities Group Inc., ACA and Samty are jointly
investing in a silent partnership and establishing a joint venture. They are in the process of acquiring land for a hotel in
Takayama City, Gifu Prefecture, and promoting their Hotel Takayama Project.
Formation of Hotel REIT
Properties to Be Included in Portfolio
upon Establishment approx. ¥55.0 billion

Properties to Be Included in Portfolio
in Future approx. ¥55.0 billion

Fall of 2020
Mercure Kyoto Station

IPO Target
S-PERIA Hotel Hakata

S-PERIA Hotel Kyoto
Agoro Kyoto Shijo-karasuma Minami

S-PERIA INN
Osaka Hommachi

S-PERIA INN
Nihombashi Hakozaki

Center Hotel TokyoGOZAN

S-PERIA Hotel
Nagasaki

NEST HOTEL Hiroshima
Hatchobori

More than¥110 billion
to hotel REIT

Agoro Kyoto Shijo-karasuma Kita

Kyoto Oike
HOTEL PJ

Fukuoka-shi
PJ

HanedaHOTEL PJ

HOTEL
Takayama PJ

Ibis Styles Nagoya

Land has already been acquired for hotels
to be included in portfolio

13

Business Development for Year Ending November 30, 2020 (2)Business Development Overseas
Initiatives Taken by SAMTY ASIA INVESTMENTS

Enabling the preparation of a wealth of property
information by having opened an office in Singapore• Management and monetization of existing investment projects

Having already invested ¥3.0 billion, we are performing detailed investment management close to the site.
Three and a half years having passed since the first investment was implemented, the project is proceeding smoothly,
and the investment value increasing.
We are aiming for an early contribution to earnings.

• Gathering of investment information and conducting of research

By having in place a base overseas we are preparing a wealth of property information not only on real estate investment
but also on the M&A of real estate-related companies.
Actively gathering and analyzing information, including the situation in each country, we are preparing for future
investments.

• Realization of new investments

To achieve the early realization of the Medium-Term Management Plan, we are aiming for investment diversificationby also investing in countries other than Vietnam, which has a long history of investment.
Leveraging the know-how cultivated over many years by the Samty Group, we are also giving consideration
to real estate development through joint ventures and other methods.

Investment in two projects under way[Investment Project (1)][Investment Project (2)]<Investment Target>
Ho Chi Minh City
market developer<Investment Target>
Ho Chi Minh City developer

Provided as development
fund loans
Provided for developmentof Thu Thiem area

Providing growth capital todeveloper aiming for IPO
Provided for developmentof Thu Thiem area

<Investment amount>
US$15.0 million<Investment amount>
US$15.0 million

Investment Project (2) Thu Thiem area

Aiming to realize profitability at an early stage

14

New Medium-Term Management Plan
“Samty Toughening Plan”

15

New Medium-Term Management Plan “Samty Toughening Plan”
To succeed to and further strengthen “Challenge 40” key strategies and financial strategies.
Samty will maintain an equity ratio of 30%, and as a growth engine, expand development of hotels
and office buildings. In addition, we will achieve growth through expansion of our business area,and strengthening of non-asset businesses.
Key Strategies and Financial Strategies

Target KPI (Key Performance Indicators)

Expand the office building
development business[Key Strategy 2]
Strategic investment
in regional
metropolitan areas

Broaden thebusiness area

[Key Strategy 3]
Roll-out of hotel
development
business[Key Strategy 1]
Development ofbusiness model
centered on Samty
Residential
Investment
Corporation[Financial Strategy]
Maintain capitalefficiency
Establish financial baseStrengthen
financial base,centered onrent cash flow

Financial Strategy (Target indicators)
FY2021Equity ratio
At least 30％

FY2021ROE
15％ level

FY2021ROA
７％ levelEnhance fee-based
income businesses

16Key Strategies

17Samty Group Business Model[Key Strategy 1: REIT-Centered Business Model]
Income properties
Land for development

Samty Group
Property sales

Samty Groupmanaged REIT

Purchases
Domestic market
9.9% investment
Property sales
Income properties
Properties for development

Subsidiary
Property management / works

Dividends
PM / Works

Sales of developed
properties

Condominium
sales companies

Investment
condominiums

Subsidiary

Asset management

Leasing of owned
properties

Tenants

Rental apartments
Office buildings,
hotels, etc.

Overseas
investment

Subsidiary

Hotel operations

PM fees
Works cost
ＡＭ
AM FeeAcquisition/
sales fees
Hotel
operations

Fees
Subsidiary

Preparing tolaunch hotel
REIT during
Fiscal 2020

Overseas Development

Overseas market

18

Investment Plan Progress Status[Key Strategy 2: Strategic investment in regional metropolitan areas]
Samty will invest a total of around ¥300 billion during the three-year period of the Samty
Toughening Plan.
We will develop hotels and office buildings as the engine for Samtyʼs growth.
Also, to strengthen the leasing business, ¥135 billion of this investment will be to acquire income
properties, and bolster our asset portfolio.
Achieved investment ¥153.6 billion in the first year, a rate of progress of more than 50%.
Bolstering of asset portfolio is on track.

Three-Year (2019-2021) Total Investment Amount

Approx. ¥300 billion (¥153.6 billion/Rate of progress 51.2%)(Note)Development ofresidential properties

Development of hotels
and office buildings

Acquisition ofincome properties

¥80bn

￥85bn

¥135bnProgress status(Note)

Progress status(Note)

Progress status(Note)

Rate of progress

Rate of progress

Rate of progress(S-RESIDENCE)(One-room apartments
for investors)￥42.9bn
53.7％￥35.0bn
41.2％(fixed property)(inventory property)￥75.6bn
56.0％(Note)The rate of progress of each of the abovementioned properties includes figures for contract completion and planned settlements.
For the progress status figures, the figures for the total cost of the project are stated.

19

[Real Estate Business] Purchase Status – Land for Projects[Key Strategy 2: Strategic investment in regional metropolitan areas]
In FY2019/11, acquired 38 properties and land for projects equivalent to approx. ¥60.1 billion inassumed net sales.
The rate of progress on an acquisition amount basis is 109.2%.
We are working to accelerate land acquisition in the current fiscal year and promote progressunder the Medium-Term Management Plan.
Acquisition amount basis (actual results)(Note) We list on acquisition amount of land base.

On a number of acquisitions basis (actual results)20[Real Estate Business] Sales Results– Development and Renovation Securitization/Investment Unit Sales in Lots

A total of 60 properties sold: 12 S-RESIDENCE properties, two hotels and three other property
as development securitization, plus 38 properties and five fixed assets as renovation securitization.
Whole-year budget comparison on number of buildings basis 105.3%
Budget and actual results（注）(Note) Including the sale, announced on May 30, 2019, of the Mercure Kyoto Station hotel site.

S-RESIDENCE Hikihune

21

[Real Estate Business] Residence Development Projects (1)Scheduled for completion in 2020 are 28 buildings(1,815 units); 2021 42 buildings (2,733 units); 2022
nine buildings (719 units).
A total of 79 buildings (5,267 units) are underdevelopment in cities throughout Japan, but primarilyin Tokyo, Nagoya and Osaka.
Total: 79 buildings, 5,267 units
42 buildings(2,733 units)

28 buildings(1,815 units)

9 buildings(719 units)

2020
2020年
北海道

2021
2021年
⾸都圏

中部

2022
2022年
関⻄

中国

九州

Note: With regard to S-RESIDENCE, we have granted preferred negotiation rights to Samty Residential Investment Corporation, but as of the end of
November 2019 there was no agreement to buy or sell with Samty Residential Investment Corporation.

22

[Real Estate Business] Residence Development Projects (2)Property Name / Project NameFY Completed

S-RESIDENCE

2021

Units

Kagoshima-shi Kamoike 2cho-me PJ

Kagoshima-shi, Kagoshima

108

S-RESIDENCE

Higashiosaka-shi Nishizutsumi 2cho-me PJ

Higashiosaka-shi, Osaka138

S-RESIDENCE

Kita-ku Ozone 3cho-me PJ

Kita-ku, Nagoya

56

S-RESIDENCE

Nishi-ku Kaminagoya 2cho-me PJ

Nishi-ku, Nagoya

58

S-RESIDENCE

Sakai-shi Kita-ku Shinonomehigashimachi PJ

Kita-ku, Sakai

84

S-RESIDENCE

Chikusa-ku Uchiyama 3cho-me II PJ

Chikusa-ku, Nagoya

60

S-RESIDENCE

Saitama-shi Omiya-ku Kishikicho 2cho-me PJ

Omiya-ku, Saitama

125

S-RESIDENCE

Kohoku-ku Shinoharahigashi 2cho-me PJ Kohoku-ku, Yokohama

42

S-RESIDENCE

Bunkyo-ku Honkomagome 5cho-me PJ

49

S-RESIDENCE

Total

Bunkyo-ku, Tokyo

Mizuho-ku Yanagaecho 2cho-meMizuho-ku, Nagoya

56

Yodogawa-ku Niitaka 3cho-me PJ

Yodogawa-ku, Osaka

60

Settsu-shi Senrioka 1cho-me PJ

Settsu-shi, Osaka

75

SAMTY Naniwa-ku Nippombashi 5cho-me Ⅲ PJ

2022

No. ofLocation

Naniwa-ku, Osaka

42 buildings

98
2,733

S-RESIDENCE

Nakamura-ku Toyokunitori 4cho-me PJ

Nakamura-ku, Nagoya

S-RESIDENCE

Nishi-ku Shonaitori 2cho-me PJ

Nishi-ku, Nagoya

78

S-RESIDENCE

Okayama-shi Kita-ku Omotecho 3cho-me PJ Kita-ku, Okayama

84

S-RESIDENCE

Naka-ku Chiyoda 3cho-me PJ

70

S-RESIDENCE

Meito-ku Meitohondori 3cho-me PJ

Meito-ku, Nagoya

60

S-RESIDENCE

Naka-ku Chiyoda 5cho-me PJ

Naka-ku, Nagoya

52

S-RESIDENCE

Naka-ku Oicho PJ

Naka-ku, Nagoya

70

Kyoto-shi Fushimi-ku Takeda PJ

Fushimi-ku, Kyoto

165

Total
Total

70

Naka-ku, Nagoya

Yodogawa-ku Nishimiyahara 1cho-me Ⅱ PJ Yodogawa-ku, Osaka70

9 buildings

719
79 buildings

Note: With regard to S-RESIDENCE, we have granted preferred negotiation rights to Samty Residential Investment Corporation, but as of the end of
November 2019 there was no agreement to buy or sell with Samty Residential Investment Corporation.

5,267

23

[Property Leasing Business] Acquisition Results[Key Strategy 2: Strategic investment in regional metropolitan areas]
Acquired profitable real estate (54 buildings, approx. ¥58.8 billion) in major cities across Japan.
The rate of achievement against the full-year budget is 147%. In the same way as land acquisition,
we will work to accelerate the acquisition of income-generating real estate in the current fiscal year
and promote progress under the Medium-Term Management Plan.
Acquisition amount basis (actual results)

On a number of acquisitions basis (actual results)

Hirokoji YMD Bldg.

SAMTY Residence Heiwa Odori

S-FORT Oita Kotobukimachi

SAMTY Garden Esaka Ⅰ・Ⅱ

24

[Real Estate Business] Development Plan for Hotels and Office Buildings[Key Strategy 3: Roll-out of Hotel Development Business]
Development Plan for Hotels and Office Buildings(Office development project)
SAMTY Odorinishi 5cho-me PJ(Scheduled for completion in 2020)

Mercure Kyoto Station(Lobby)(Office development project)
Yodogawa-ku Nishimiyahara 1cho-me PJ(Scheduled for completion in 2020)

Agora Kyoto Shijo-karasuma minami(Guest room)
Ibis Styles Nagoya(Guest room)

Agora Kyoto Shijo-karasuma kita
(Lounge)

Note: The abovementioned development project figures are correct as of the date ofthis document but there remains the possibility that these will change.

25

Financial Strategy
In addition to self-financing through rights offerings and property sales, we use borrowing toactively acquire earning real estate. The capital ratio was maintained at 30% or above, as
planned. We also maintained our target levels for ROE and ROA.
⾃⼰資本・⾃⼰資本⽐率
37.9

80,000Equityratio
自己資本比率30％以上
At least
30％

70,000

ＲＯＥ・ＲＯＡ
71,02761,53360,00050,00023.1

28,134

18.0%

35.0

16.0%

30.0

14.0%

32.5

23.4

25.0

39,01740,00030,000

23.1

40.0

15.0

ROA
7% level

8.0%

6.5%

6.6%

2016/11期
FY11/162017/11期
FY11/17

6.0%
4.0%

10,000

5.0

2.0%

0

0.0
2017/11期
FY11/17

⾃⼰資本

2018/11期
FY11/18
⾃⼰資本⽐率2019/11期
FY2019

16.9%
14.7%

ROE
15% level

10.0%

10.0

2016/11期
FY11/16

15.3%

20.0

32,551

15.8%

12.0%

20,0002015/11期
FY11/15

17.1%

8.5%

8.1%

2018/11期
FY11/18

2019/11期
FY11/195.4%

0.0%
2015/11期
FY11/15

ROE

ROA*ROA=Operating income/total assets (beginning andending balance average)26

Consolidated Earnings Forecast
for Year Ending November 30, 202027

Consolidated Earnings Forecast for Year Ending November 30, 2020
Net sales ¥100.0 billion, Operating income ¥17.5 billion, ordinary income ¥14.6 billion planned
Sales plan

Development securitization: Sell 21 properties, net sales approx. ¥49.2 billion
Renovation securitization: Sell 30 properties, net sales approx. ¥27.4 billion
Investment condominiums: Sell 6 properties, net sales approx. ¥6.1 billion

Investment plan

Acquisitions of land for development: approx. ¥26.5 billion
Acquisitions of profitable real estate: approx. ¥48.0 billion

Shareholder returns

Interim ¥38, end of year ¥44
Plan to increase dividend by ¥3 as a normal dividend and pay dividend of ¥82 per share(Unit: Millions of yen)

Net sales

FY11/19

FY11/20

Year on year

ActualFull-year Forecast

Ratio/Operating

Ratio/Operating

profit ratio

profit ratio

Increase/decrease

Rate ofincrease/decrease

85,552100.0

100,000

100.0+14,448+16.9%

Real Estate Business

74,80687.4

87,00087.0+12,194+16.3%

Property Leasing Business

6,698

7.8

8,600

8.6

+1,902+28.4%

Other Business

4,434

5.2

4,800

4.8

+366

+8.3%

Adjustment

-387

-

-400

-

-13

-

Operating income

15,39518.0

17,50017.5+2,105+13.7%

Real Estate Business

17,27223.1

21,00024.1+3,728+21.6%

Property Leasing Business

2,462

36.8

2,900

33.7

+438

+17.8%

75

1.7

300

6.3

+225

+300.0%Adjustment-4,414--6,700--2,286-

Ordinary income

13,193-

14,600-+1,407+10.7%Net income

9,740

-

10,100

-

+360

+3.7%

Dividends per share (Yen)

79.00

-

82.00

-

+3.00

+3.8%

Net income per share (Yen)

247.11-

246.67

-

-0.4

-0.2%

Other Business28

Fiscal Year Ended November 30, 2019
Overview of Financial Results

29Fiscal Year Ended November 30, 2019
Overview of Consolidated Financial Statements
In the fiscal year ended November 30, 2019, sales of profitable real estate in the real estate business proceededsmoothly amid ongoing active real estate market conditions. Net sales increased 1.5% year on year to ¥85,552
million, operating income rose 9.7% to ¥15,395 million, ordinary income climbed 13.4% to ¥13,193 million, andnet income increased 15.7% to ¥9,740 million. There were also firm increases in each of operating profit margin(18.0%, up 1.3 points year on year), ordinary profit margin (15.4%, up 1.6 points), and net profit margin (11.5%,
up 1.4 points), thus we recorded increases in income and profit.
With regard to comparisons with full-year forecasts, those for net sales and profit were roughly as planned.

（*）

(*)

(Note)(*) With regard to the recording of extraordinary loss (¥601 million) for consumption taxes for prior periods
The tax treatment method for the consumption tax amount related to the completion of residential buildings acquired for the purpose of sale was pointed
out to the Company following a tax audit. Although there was a difference in understanding between the Company and the Regional National Taxation
Bureau, the amount has been recorded conservatively in accounting, taking into consideration the possibility that additional consumption taxes for priorperiods will be collected.
(Note) New stock acquisition rights were allocated gratis based on the rights offering on September 30, 2018, and the payments completed.
Calculated based on the average number of shares during the fiscal year ended November 30, 2018, assuming that the stock
split equivalent to the payment based on the rights offering was made at the beginning of the previous consolidated fiscal year.

30

Fiscal Year Ended November 30, 2019
Consolidated Balance Sheet Overview
Making effective use of funds raised through property sales and borrowings, the Company actively acquires landfor development and profitable real estate.
While working to expand its assets, the Company also safeguards an equity ratio of 30% or higher and maintains
a sound financial position.

31

Financial Position
Long-term debt increased due to active acquisition of profitable real estate
Interest-bearing debt increased, but net D/E ratio remained at 1.35 times
Interest-bearing
Debt/Net D/E Ratio
有利⼦負債・ネットD/Eレシオ(Times)(¥mn)
140,000

2.16

2.27

120,000

︵
︶

円

2.00

114,787
99,848100,000

80,00010,00089,174

84,10860,00056,484

0

112,224

78,362

74,08340,00020,0001.35

79,598

0.73

1.50

倍

︶

万

2.28

2.50

︵

百

140,927

1.00

0.50

18,795

13,515

11,205

9,599

10,27911,883

9,470
1,340

FY11/15
2015/11期

FY11/162016/11期

FY11/172017/11期

FY11/18
2018/11期

短期借⼊⾦

１年以内⻑期借⼊⾦

⻑期借⼊⾦

新株予約権付社債

16,3872,315
FY20192019/11期

0.00

ネットD/Eレシオ*Net Debt Equity Ratio= (Interest-bearing debt - Cash and deposits) ÷ Shareholdersʼ equity

32

Fiscal Year Ended November 30, 2019
Overview of Consolidated Financial Statements by Segment
Real EstateBusiness

In sales of developed real estate and renovated real estate we recorded steady
performance centered on sales to REITs. Although net sales showed a slightdecrease compared with the previous year, operating income increased 11% year
on year, because we sold high-margin development properties, such as hotels.

Property Leasing
Business

In the Property Leasing business, the occupancy rates of real estate underownership remains high. As in the real estate business, net sales were
temporarily down year on year because of the Companyʼs active promotion ofsales of properties under ownership. Due to the sale of the Pieri Moriyama
shopping mall and other factors, operating income increased 29.1% year on year.

Other Business

Due to the increase in the number of hotels in operation, net sales increased 78%
year on year. Operating income, however, was down compared with the previous
year due to factors such as newly opened hotels not operating at steadyoccupancy rates.

Net sales

YoY¥74,806mn-0.4％¥6,698mn-1.6％¥4,434mn ＋78.0％

33

Securing Ongoing Steady Profit● The main factors contributing to the increase in revenue included a rise in AM fees (during the period) due tothe expansion of the REITʼs scale and an increase in hotel income due to the stable operation of S-PERIA Hotel
Hakata and the opening of new hotels.
● As a result, overall profit increased by a total of ¥1,858 million compared with the previous fiscal year.
Net sales
(¥mn)

Total
12,996

Total
11,13812000+¥1,858 million YOY

16.7% increase

5,040
3,188

9000

1,348
6000

Increase in hotel income due to rise inmanagement fees, etc. during period+ ¥1,852 million
Decrease due to fall in management
fees when acquiring REITs
Down ¥156 million

6,602

3000

Increase due to higher SRR
dividends, etc.
+ ¥163 million

1,192

6,765

0

2018
2018年
Dividends,
配当⾦、賃料収⼊
rental income

AM fees (acquisition fees), brokerage,
AM報酬（アクイジFee）、仲介、⼯事
works fees

2019
2019年
AM fees (during period),
AM報酬（期中）、ホテル収⼊、物件管理
hotel income, property management

34

[Real Estate Business] Overview of Consolidated Financial Statements
Segment Sales and Operating Profit Ratio

Net Sales by Asset Category
Sales

Investment Condominium
Sales (to investors)
1,345

(¥mn)

Forecast

90,000

Sales

Asset management
1,003

24.1%

20.6%

OP Ratio
25.0%

23.1%

Segment OP ratio

80,00070,000Full-year
forecast

20.7%
20.0%

18.4%

60,000Renovation
securitization
37,164FY2019Net sales
74,793 (Millions of yen)

Full-year
forecast

50,00015.0%

87,00040,00075,14374,80710.0%

30,000Development
securitization

20,00043,78351,5225.0%

35,28010,000

Unit: Millions of yen

0.0%

0

Note: Segment sales figures for FY2019 are after intersegment eliminations,while total sales amount figure is prior to intersegment eliminations.

2016
2016年

2017
2017年

2018
2018年

2019
2019年

2020 (Forecast)

2020年計画

Note: Forecast net sales figure for 2020 is prior to intersegment eliminations.

35

[Property Leasing Business] Overview of Consolidated Financial Statements

Net Sales by Asset Category

Segment Sales and Operating Profit Ratio
Sales

OP Ratio

Forecast(¥mn)

10,000

Revenue from forfeit
Sales

9,000

9,026

36.8%

Segment OP ratio

8,000

2,052

7,000

FY2019Net sales
6,666 (Millions of yen)
Office buildings
416

28.4%
1,732

28.0%

30.0%

6,000

Full-year
forecast

5,000

Residence

20.0%

8,600

4,000

4,197

40.0%

33.7%

32.5%

Hotel and other

Full-year
forecast

7,018

7,386

3,000

6,807

6,698
10.0%

2,000
1,000
0.0%

0
Note: Segment sales figures for FY2019 are after intersegment eliminations,while total sales amount figure is prior to intersegment eliminations.

2016
2016年

2017
2017年

2018
2018年

2019
2019年

2020 (Forecast)
2020年（計画）

Note: Forecast net sales figure for 2020 is prior to intersegment eliminations.

36

[Property Leasing Business] Asset Holdings by Region, Occupancy Rates･Diversified asset holdings centered on ordinance-designated cities and regional hub cities.
◇ Competition for property transactions limited◇ Relatively high profitability compared with Tokyo metropolitan area
･Maintaining high occupancy rates of around 90% for residences. Strengthening leasing geared
toward busy season.

Asset Holdings by Region

Occupancy Rate of Residences(%)

Hokkaido
15%

Kansai
29%

Chubu
19%

KyushuChugokuTokyo
6%
metropolitan
area
3%

28%

(Note 1) As of end of fiscal year ending November 30, 2019
(Note 2) Profitable real estate held by Samty on non-consolidated
basis (fixed assets + real estate for sale)(Note 3) Excluding development properties, such as S-RESIDENCE(Note 4) Average occupancy rate at end of each quarter(*) Total floor area basis (weighted average):
Total leased area of each property / Total leasable area

FY11/17

FY11/18

FY11/19(Note) With the exception of special properties, calculated on the basis that,for example, the buildings were acquired new and that a certain periodof time has not passed since the acquisition.

37

[Other Business] Overview of Consolidated Financial Statements

Segment Sales and Operating Profit Ratio

Hotels in Which Samty Participates
Sales
(¥mn)

OP Ratio
30.0%

5,000

Forecast
Sales
4,000

Segment OP ratio

25.0%

21.2%
20.0%

3,000

Full-year
forecast
4,092

2,000

1,853

1,885

NEST HOTEL Hiroshima
Hatchobori (Exterior)

10.0%

5.0%

3.3%

1.8%

0

S-PERIA HOTEL Kyoto (Lobby)

Full-year
forecast
6.3%

2,491
1,000

15.0%

4,800

12.9%

2016
2016年

2017
2017年

2018
2018年

2019
2019年

0.0%
2020 (Forecast)
2020年（計画）

Note: Forecast net sales figure for 2020 is prior to intersegment eliminations.

38Dividend Policy/Shareholder Returns

39Dividend Policy/Shareholder Returns
Dividend Policy
Basic Policy: To pay dividends that reflect business performance after comprehensively taking into account future businessplans, the Companyʼs financial condition and other factors. Based on, for example, prospective business development, businessexpansion and the strengthening of our financial position, we will retain internal reserves to prepare for the future while
returning profits to shareholders based on results. Having increased the dividend for the seventh consecutive year, we areforecasting a dividend of ¥82 and a payout ratio of 33.2% for the fiscal year ending November 31, 2020. We are aiming
for eight consecutive years of dividend increases.

Trends in Dividends per Share/Payout Ratio(¥)

90

Increases in Dividend
Implemented overSeven Consecutive Years
Total
dividend¥68 (Note)

80
70
60
50
40

Total
dividend
¥33
16.8%

Total
dividend¥47

Dividend forecast
¥82

33.2%

2
2
32.0%

4

35.0%

20.0%

75

6

150.0082

100.00
10.0%

36
5.0%
0.0%

0
Initial dividend
forecast

2017
2017年

（注）
2018
(Note)
2018年

Amount of
upward revision

2019
2019年

283.89

15.0%

10

2016
2016年

250.00200.00125300.00

25.0%

52
33

(¥)

30.0%

20.1% 24.0%

30
20

Total
dividend¥79

EPS

209.71

246.67

2019
2019年

2020
(Forecast)
2020年計画

50.00

0.00
2016
2016年

2020
(Forecast)
2020年予想

Additional amount of
upward revision

196.42247.11

2017
2017年

2018
2018年

Payout ratio(Note) With regard to the 2018 dividend, on August 29, 2018, the dividend forecast was increased by ¥44 from the ¥52 forecast to a ¥96 dividend forecast. The Company
subsequently issued a free allotment of stock acquisition rights based on the rights offering dated October 2018 and, by increasing the number of shares issued by 1.5 times,
the dividend forecast was ¥96 divided by 1.5, making ¥64. In addition, the Company increased the dividend by ¥4 at the end of the fiscal year, for a total dividend of ¥68.

40

Shares41

Shares (as of November 30, 2019)
Number of Shares/Shareholders

Distribution of Shares by Owner

Main Shareholders (Top 10)

Financial
Institutions
13.24%

Individuals
and Others

Financial
Instruments Firms
1.03%

Other
Japanese Firms

45.02%

25.65%

Other
Foreign Investors* The shareholding ratio is calculated after deducting treasury stock (1,659 shares) androunded to the third decimal place.

15.06%

42

お問い合わせ先This document includes forecasts of future business performance and statements concerning development
plans, numerical targets, etc.
These statements are based on the information available at the time of preparation and certain subjective
assumptions we have made that depend on uncertain factors. As such, they are subject to underlying risks
and uncertainties.
There is no guarantee that these statements will match future events.
Actual results could differ from the projections made within this document due to changes in economic
conditions, market trends, the business environment and other factors.
Moreover, while utmost care has been taken in the preparation of this document, we cannot guarantee thenovelty, validity, usefulness, suitability for a specific purpose, function or safety of every item within.
Thank you for your understanding.
This document is not intended as a solicitation for investment.
Any investment decision is to be made at your own discretion.

<Inquiries>
Investor Relations Office☎+81-3-5224-3139✉ samty-pr@samty.co.jp

お問い合わせ先