April 13, 2020

Flash Report (Consolidated Basis)
Results for the first quarter ended February 29, 2020
(Based on Japanese GAAP)

Company name:Samty Co., Ltd.

Stock Listings:

Tokyo Stock Exchange

Stock Code:

3244

URL:

https://www.samty.co.jp/en/

Representative
Title:

Representative Director and President

Name: Yasuhiro Ogawa
Contact Person
Title:

Executive Officer, General Manager of Business Administration Division, and General Manager ofCorporate Planning Department

Name: Yoshikazu Hirayama

Telephone: +81-3-5224-3139

Quarterly report filing date (Planned):

April 13, 2020

Start of dividend payments (Planned):―

Quarterly supplemental explanatory material prepared:No

Quarterly results briefing held:

No(Figures less than ¥1 million have been omitted.)

1. Consolidated Results for the first quarter of FY11/20(December 1, 2019 to February 29, 2020)(1) Consolidated Operating Results
Three months ended February 29

Percentages indicate year-on-year increase/ (decrease).

Net sales

Operating income

Millions of yen%

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen

%

2020

12,587(11.0)

4,089

26.1

3,478

26.9

2,560

23.4

2019

14,144(28.2)

3,241

(9.9)

2,740

(9.8)

2,074

(5.3)

(Note) Comprehensive Income: Three months ended February 29, 2020: ¥1,600 million, (26.4%)
Three months ended February 28, 2019: ¥2,173 million, (8.1%)

Net income per share

Net Income per shareafter adjustment forresidual shares

Yen

Yen

2020

62.53

54.76

2019

54.49

52.97

(2) Consolidated Financial Condition
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

February 29, 2020

231,710

71,425

30.6

November 30, 2019

218,803

71,62732.5(Reference) Total shareholders’ equity: February 29, 2020: ¥70,824 million, November 30, 2019: ¥71,027 million

2. Dividends
Years ended/ending November 30
Dividends per share
February 29

May 31

August 31

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2019

—

2020

—

2020
(Forecast)

35.00

—

44.00

79.00

38.00

—

44.00

82.00

(Note) Revision of dividends forecast for this period: None

3. Forecasts for Fiscal Year Ending November 30, 2020
Percentages indicate year-on-year increase/ (decrease).
Net sales
Millions of yen

Fiscal year

100,000

Operating income%

16.9

Profit attributable toowners of parent
Millions of yen

Fiscal year

10,100Millions of yen

17,500Ordinary income%

Millions of yen

13.7

14,600%10.7

Net income per share
%

3.7

Yen

246.67(Notes) Revision of results forecast for this period: None

Notes(1) Significant changes in subsidiaries during the subject fiscal period: None
(Changes in specified subsidiaries related to a change in the scope of consolidation)
Additions: (—)

Deletions: (—)(2) Application of special accounting practices in the preparation of the consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, restatements
1) Changes in accounting policies due to revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None(4) Number of shares issued and outstanding (common share)
1) Number of shares issued andoutstanding (including
treasury stock)2) Number of treasury stock3) Average number of shares
outstanding for each period(cumulative term)

Three months ended
February 29, 2020

40,946,240
sharesYear ended
November 30, 201940,946,240
sharesThree months ended
February 29, 2020

2,211
sharesYear ended
November 30, 2019

1,659
sharesThree months ended
February 29, 2020

40,944,263
sharesThree months ended
February 28, 2019

38,063,640
shares* Quarterly financial statements are not subject to review by certified public accountants or audit firms.
* Explanation regarding the appropriate use of results forecasts, and other items of note
 Results forecasts and other forward-looking statements contained in this report are based on information available to
the Company at the time of disclosure, and certain assumptions the Company considers reasonable. Actual results
may vary considerably due to a variety of factors.

Table of Contents for Accompanying Material
1. Qualitative Information on Consolidated Results for the Three-Month Period of Fiscal 2020 ........... 2(1) Explanation of Business Results....................................................................................................... 2(2) Qualitative Information on the Consolidated Financial Position ....................................................... 4(3) Explanation of Consolidated Results Forecasts and Other Future Predictions ............................... 4
2. Consolidated Financial Statements and Main Explanatory Notes....................................................... 5(1) Consolidated Balance Sheets ........................................................................................................... 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 7(3) Notes Relating to Consolidated Financial Statements ..................................................................... 9(Note on Assumptions for Going Concern) ........................................................................................ 9(Notes in the Event of Major Changes in Shareholders’ Equity) ........................................................ 9(Segment Information) ...................................................................................................................... 10(Additional Information) ..................................................................................................................... 11(Significant Events after the Reporting Period) ................................................................................ 121

1. Qualitative Information on Consolidated Results for the Three-Month Period of Fiscal
2020(1) Explanation of Business Results
During the subject first quarter cumulative period, the Japanese economy maintained a tone ofmoderate recovery on firm corporate earnings and improvement in the employment environment.
However, in recent months the impact from COVID-19 has exerted considerable downward pressure,
resulting in harsh business conditions. The difficult circumstances are projected to continue amid theglobal pandemic, and factors as fluctuations in financial and capital markets will continue to cause
uncertainty in the outlook.
In the real estate industry, of which the Samty Group is a part, conditions had remained favorable
overall, with real estate demand continuing to be robust amid the sustained low interest rateenvironment and improved profitability due to low office vacancy rates in major cities. However, theoutlook has become uncertain due to such factors as concerns over economic slowdown in Japan andoverseas as a result of COVID-19.
Under such conditions, the Samty Group, in accordance with its new medium-term management
plan, the “Samty Toughening Plan” announced in September 2018, proactively conducted businessbased on the three priority measures of: 1) Strengthen and expand fee-based income businesses; 2)Strengthen the development of hotels and office buildings; and 3) Strengthen the financial base.
As a result, for the subject first quarter cumulative period, net sales amounted to ¥12,587 million(down 11.0% from the same period of the previous fiscal year), with operating income of ¥4,089 million(up 26.1%), ordinary income of ¥3,478 million (up 26.9%), and profit attributable to owners of parent of¥2,560 million (up 23.4%).

Results by Business Segment(Real Estate Business)
The Real Estate business comprises the planning, development, and sales of real estate properties,
including the Samty brand S-RESIDENCE series, as well as the planning, development, revitalizationand sales of income properties and other real estate.
During the subject first quarter cumulative period, properties sold in lots were “STAGE FIRST
Shin-Okachimachi II (Taito-ku, Tokyo). Hotel assets sold were “Ibis Styles Nagoya* (Nakamura-ku,
Nagoya-shi). The Company also sold other facilities.
As a result, net sales in the Real Estate Business segment amounted to ¥9,869 million (down
16.9% from the same period of the previous fiscal year), with operating income of ¥4,672 million (up28.9%).
* The sale of “Ibis Styles Nagoya” was conducted through transfer of land, based on a trust
beneficiary right transfer contract on February 26, 2020.

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(Property Leasing Business)
The Property Leasing business comprises the leasing and management of rental apartments, officebuildings, commercial facilities, hotels, and other properties.
The Samty Group continued its efforts to expand its area of business operations and strengthen
purchasing of income properties, including acquiring “SAMTY Higashi kuyakusho mae” (Higashi-ku,
Sapporo-shi), “SAMTY Maruyama Residence” (Chuo-ku, Sapporo-shi), “SAMTY Residence Izumichuo”(Izumi-ku, Sendai-shi), “SAMTY Residence Meijo Park” (Kita-ku, Nagoya-shi), “SAMTY Minamihorie Duke”(Nishi-ku, Osaka-shi), “SAMTY Namba Grace” (Naniwa-ku, Osaka-shi), “SAMTY Hakozakimiya-mae”(Higashi-ku,

Fukuoka-shi),“SAMTY

Tenjin-minami”(Chuo-ku,

Fukuoka-shi),“SAMTY

KurumeHigashimachii” (Kurume-shi, Fukuoka), “SAMTY Suwajinja-mae” (Nagasaki-shi, Nagasaki), “SAMTY Saga
Ekiminamihonmachi” (Saga-shi, Saga), “SAMTY Kumamoto Rio branco” (Nishi-ku, Kumamoto-shi),“SAMTY Gohuku Residence” (Chuo-ku, Kumamoto-shi), “SAMTY Kumamoto Chikami I” (Minami-ku,
Kumamoto-shi), “SAMTY Kumamoto Chikami II” (Kumamoto-shi, Kumamoto), “SAMTY Minami-Kagoshima”(Kagoshima-shi, Kagoshima), “PALWISH Tama-plaza” (Miyamae-ku, Kawasaki-shi), “RESIDENCIA
Meiekiminami” (Nakamura-ku, Nagoya-shi), “PARK AVENUE” (Asahi-ku, Osaka-shi), “A MAISON
Shukugawa” (Nishinomiya-shi, Hyogo), and “SUPER COURT Kobekita” (Kita-ku, Kobe-shi).

As a result, net sales in the Property Leasing Business segment amounted to ¥1,845 million (up28.8% from the same period of the previous fiscal year), with operating income of ¥669 million (up20.0%).

(Other Business)
Other business operations comprise the hotel business, including the holding and operating of“S-PERIA Hotel Kyoto” (Shimogyo-ku, Kyoto-shi), “NEST Hotel Hiroshima Hatchobori” (Naka-ku,
Hiroshima-shi), and “Center Hotel Tokyo” (Chuo-ku, Tokyo), and the management of “S-PERIA INN
Nihombashihakozaki” (Chuo-ku, Tokyo), “S-PERIA INN Osakahommachi” (Nishi-ku, Osaka-shi),“S-PERIA Hotel Hakata” (Hakata-ku, Fukuoka-shi), “S-PERIA Hotel Nagasaki” (Nagasaki-shi,
Nagasaki), and “Hotel Sunshine Utsunomiya” (Utsunomiya-shi, Tochigi). The Company also has acondominium management business and construction / renovation business.
As a result, net sales in the Other Business segment amounted to ¥872 million (up 3.6% from thesame period of the previous fiscal year), with an operating loss of ¥65 million (compared to operating
income of ¥30 million in the same period of the previous fiscal year).

3(2) Qualitative Information on the Consolidated Financial Position
Assets, Liabilities, and Net Assets(Assets)
Total assets at the end of the subject first quarter cumulative period amounted to ¥231,710 million, an
increase of ¥12,907 million compared to the end of the previous fiscal year. Of this amount, current
assets increased ¥5,746 million to ¥128,174 million, and non-current assets increased ¥7,161 million
to ¥103,536 million. The main factors for the increase in current assets were increases of ¥18,304
million in real estate for sale; against decreases of ¥7,226 million in cash and deposits; and ¥4,374
million in real estate for sale in process. The main factors for the increase in non-current assets werean increase of ¥7,074 million in net property and equipment.

(Liabilities)
Total liabilities at the end of the subject first quarter cumulative period amounted to ¥160,285 million,
an increase of ¥13,109 million compared to the end of the previous fiscal year. Of this amount,current liabilities increased ¥4,165 million to ¥26,747 million, while non-current liabilities increased¥8,944 million to ¥133,538 million. The main factors for the increase in current liabilities wereincreases of ¥964 million in accounts payable - trade; ¥742 million in short-term borrowings; and¥2,231 million in current portion of long-term debt. The main factor for the increase in non-current
liabilities was an increase of ¥8,843 million in long-term debt.

(Net Assets)
Total net assets at the end of the subject first quarter cumulative period amounted to ¥71,425 million,a decrease of ¥202 million compared to the end of the previous fiscal year. This was due mainly todecreases of ¥1,801 million in retained earnings from dividend payments; and ¥970 million in
valuation difference on available-for-sale securities; against an increase of ¥2,560 million in retained
earnings from the recording of profit attributable to owners of parent.

(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
The global spread of COVID-19 has led people to voluntarily refrain from leisure travel and businesstrips, resulting in a considerable decline in hotel occupancy rates in recent months. Further, with theJapanese government’s issuance of an emergency declaration, the difficult conditions in the hotelbusiness are expected to continue for the time being. The Company’s initial plan was for the hotelbusiness to account for around 4% of sales, but since other real estate businesses can be expected
to substitute for the shortfall, the full-year consolidated results forecasts announced on January 7,2020 remain unchanged.
Of note, at present, the spread of COVID-19 has not affected rents for company-held leased
residences or selling prices, and results for the subject first quarter period have been mostly in linewith the initial plan.
Going forward, if a revision becomes necessary, the Company will make a disclosure promptly.

4

2. Consolidated Financial Statements and Main Explanatory Notes(1) Consolidated Balance Sheets
Millions of yen
November 30, 2019

February 29, 2020

ASSETS
Current assets:
Cash and deposits

44,91837,691

814

540

Real estate for sale

28,637

46,941

Real estate for sale under construction

46,33941,965

Goods

1

0

Supplies

10

13

Other

1,708

1,022

(1)

(1)

122,428

128,174

Buildings and structures net

25,696

31,194

Buildings in trust net

7,623

5,040

Land

38,721

43,993

Land in trust

5,571

4,054

Other net

807

1,212

78,42085,494

Goodwill

11

11

Other intangible assets

161

154

Total intangible assets

172

165

Investment securities

13,224

12,156

Deferred tax assets

291

661

4,318

5,111

(53)

(53)

17,781

17,876

96,374

103,536

218,803

231,710

Receivables

Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and equipment:

Net property and equipment
Intangible assets:

Investments and other assets:

Other
Allowance for doubtful accounts
Total Investments and other assets
Total non-current assets
Total assets

5Millions of yen
November 30, 2019

February 29, 2020

LIABILITIESCurrent liabilities:
477

1,442

Short-term borrowings

2,315

3,058

Current portion of long-term debt

16,387

18,619Accrued income taxes

1,237

1,067

Other

2,163

2,560

22,581

26,747

Bonds with share acquisition rights

10,00010,000Long-term debt

112,224

121,068

183

194

1,399

1,407

Construction assistance fund

483

469

Other

303

397

124,593

133,538

147,175

160,285

Capital stock

16,184

16,184

Capital surplus

17,93817,938Retained earnings

36,33537,094(3)(4)

70,455

71,213

Unrealized gain on available for-sale securities

634

(335)

Foreign currency translation adjustment

(62)

(52)

571

(388)

600

600

71,62771,425

218,803

231,710Notes and accounts payable

Total current liabilities
Non-current liabilities:

Liabilities for retirement benefits
Guarantee deposits

Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:

Treasury stocks at cost
Total shareholders’ equity
Accumulated other comprehensive income:

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Three months ended February 29
Millions of yen
2019

2020

Net sales

14,144

12,587

Cost of sales

9,005

6,025

Gross profit

5,138

6,561

Selling, general and administrative expenses

1,897

2,472

Operating income

3,241

4,089

Interest income

00Dividend income

00Insurance income

3—Interest on tax refund

—

9

Other

1

0

6

10

307

420

Non-operating income:

Total non-operating income
Non-operating expenses:
Interest expenses
Commission fee

79

96

Loss on valuation of interest swaps

115

103

Provision of allowance for doubtful accounts

(0)

—

Other

4

0

507

621

2,740

3,478

Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of non-current assets

259—

Reversal of consumption taxes for prior periods

—

116

259

116

Loss on sales of non-current assets—

1

Loss on retirement of non-current assets

0

0

0

1

2,999

3,593

Income taxes-current

598

974

Income taxes-deferred

308

58

Total income taxes

906

1,032

2,092

2,560

17

0

2,074

2,560

Total extraordinary income
Extraordinary loss:

Total extraordinary losses
Income before income taxes

Net income
Profit attributable to non-controlling interests
Profit attributable to owners of parent

7

Consolidated Statements of Comprehensive Income
Three months ended February 29
Millions of yen
2019
Net income

2020
2,092

2,560

Unrealized gain on available for-sale securities

81

(970)

Foreign currency translation adjustment—

10

Total other comprehensive income

81

(960)

2,173

1,600

2,155

1,600

17

0

Other comprehensive income:Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests8(3) Notes Relating to Consolidated Financial Statements(Note on Assumptions for Going Concern)
Not applicable.
(Notes in the Event of Major Changes in Shareholders’ Equity)
Not applicable.

9(Segment Information)
I Results for the first quarter of FY11/19 (from December 1, 2018 to February 28, 2019)
1. Operating Revenues and Earnings (or Loss) by Reportable Segment
Three months ended February 28, 2019
Millions of yen

Adjustment(Note 1)

AmountRecorded on
Consolidated
IncomeStatement(Note 2)

14,144―14,144

82

86

(86)

―

1,423

923

14,230(86)

14,144

557

30

4,221

(979)

3,235

Reportable Segment
Real EstateBusiness

Property
Leasing
Business

Other
Business

Net sales from third parties
Inter-segment net sales andtransfers

11,870

1,432

841

12

(8)

Total

11,882
3,632

Total

Net sales:

Operating income (loss)
Notes

1. The ¥979 million downward adjustment to operating income (loss) comprises a negative ¥13 million in intersegment
eliminations, and a negative ¥965 million in corporate expenses not allocated to any reportable segment. Corporate
expenses are general and administrative expenses not attributed to any reportable segment.
2. Segment operating income (loss) is adjusted to the operating income on the consolidated income statement.

2. Disclosure of Impairment Loss of Non-Current Assets or Goodwill by Reportable Segment
Not applicable.

II Results for the first quarter of FY11/20 (from December 1, 2019 to February 29, 2020)
1. Operating Revenues and Earnings (or Loss) by Reportable Segment
Three months ended February 29, 2020
Millions of yen

Adjustment(Note 1)

AmountRecorded on
Consolidated
IncomeStatement(Note 2)

12,587―

12,587

101

120

(120)

―

1,853

973

12,707(120)

12,587

669

(65)

5,277

(1,188)4,089

Reportable Segment
Real EstateBusiness

Property
Leasing
Business

Other
Business

Net sales from third parties
Inter-segment net sales andtransfers

9,869

1,845

872

11

8

Total

9,880
4,672

Total

Net sales:

Operating income (loss)
Notes

1. The ¥1,188 million downward adjustment to operating income (loss) comprises a negative ¥36 million inintersegment eliminations, and a negative ¥1,152 million in corporate expenses not allocated to any reportablesegment. Corporate expenses are general and administrative expenses not attributed to any reportable segment.
2. Segment operating income (loss) is adjusted to the operating income on the consolidated income statement.

2. Disclosure of Impairment Loss of Non-Current Assets or Goodwill by Reportable Segment
Not applicable.
10(Additional Information)
Quarterly Consolidated Income Statement
From the first quarter period of the subject fiscal year, the Company has changed the presentation
method for refunds of insurance premiums for development projects, which previously had beenpresented as “Refund of premium for cancelled insurance” in “Non-operating income,” topresentation as part of “Cost of sales.” This change will better clarify the equivalence of expenses
and costs, and more accurately present gross profit and the current state of business.
The consolidated income statement for the first quarter period of the previous fiscal year has
been recombined to reflect this change in presentation method. As a result, the ¥6 million shown in“Refund of premium for cancelled insurance” in “Non-operating income” has been recombined as“Cost of sales.”Change in Holding Purpose
Because of a change in holding purpose, ¥11,457 million was transferred from property, plant, andequipment to inventories.

11

(Significant Events after the Reporting Period)
1. Purchase of treasury shares
On April 13, 2020, by a written resolution of its Board of Directors based on Article 370 of theCompanies Act, the Company decided on matters relating to the purchase of treasury shares basedon its Articles of Incorporation pursuant to Article 156 of the Companies Act, which is applied in
substitution for the provisions pursuant to Article 165, Paragraph 3, of the Companies Act.
(1) Reason: As a result of comprehensively considering the impact from COVID-19, recent trends
in the stock market and the Company’s stock price, a flexible capital policy in accordance withthe business environment, and the return of profits to shareholders, the Company made thedecision to purchase treasury shares.
(2) Type of shares to be purchased: Common stock of the Company(3) Total number of shares to be purchased: (Upper limit) 1,000,000 shares (2.44% of total numberof shares issued, excluding treasury shares)(4) Total purchase price: ¥1.0 billion (upper limit)(5) Treasury share purchase period: From April 14, 2020, to August 31, 2020
(6) Purchase method: Market purchase on the Tokyo Stock Exchange
2. Issuance of new shares as restricted stock compensation
At the Board of Directors’ meeting held on March 23, 2020, the Company decided to issue newshares (hereinafter referred to as “the New Share Issue”) as restricted stock compensation as
follows.
(1) Purpose of and Reason for Issue
At the Board of Directors’ meeting held on January 22, 2019, the Company resolved to introduce a
restricted stock compensation plan (hereinafter referred to as “the Plan”) as a new compensation
system for directors of the Company. In addition to granting incentives to the Company’s directors(excluding outside directors; the same applies hereinafter) to continuously improve the Company’s
medium- to long-term corporate value and shareholder value, the purpose of the Plan is to further
promote the sharing of value with the shareholders. At the 37th Annual General Meeting of
Shareholders held on February 27, 2019, approval was granted with regard to the following: (1)Under the Plan, as contributions in kind relating to the granting of restricted stock, monetarycompensation receivables of not more than ¥100 million per year shall be paid to the directors of
the Company, as separate amounts from existing monetary compensation limits, and the total
number of the Company’s common shares to be issued or disposed of shall be not more than
100,000 shares per year; (2) The transfer restriction period shall be the period from the grant dateof restricted stock to the date on which directors of the Company and other positions specified by
the Board of Directors of the Company resign or retire; (3)(i) During the period of service stipulatedby the Board of Directors of the Company, those eligible are to have continuously remained indirectors’ positions or other positions determined by the Board of Directors of the Company; and(3)(ii) In the event that an eligible director of the Company resigns or retires as director or from anyother position determined by the Board of Directors of the Company before the end of his or her
period of service, that there are grounds deemed justifiable by the Board of Directors of theCompany with regard to the conditions for the cancellation of transfer restrictions.
With regard to the Plan, at the 38th Annual General Meeting of Shareholders held on February
27, 2020, approval was given to changing the monetary compensation receivables paid to thedirectors of the Company to ¥300 million per year and the total number of the Company’s commonshares to be issued or disposed of under the Plan to not more than 300,000 shares.

12

(2) Overview of Issue
Payment date
Type and number of shares
to be issued
Issue priceTotal issue pricePlanned recipients
Other matters

April 23, 2020
73,900 of Company’s common shares¥1,180 per share¥87,202,000
Five directors (excluding outside directors) 73,900 sharesWith regard to the New Share Issue, a written notification ofmarketable securities held is being submitted pursuant to theterms of the Financial Instruments and Exchange Act.
END

13