March 31, 2023

Flash Report (Consolidated Basis)
Results for the year ended November 30, 2022
(Based on Japanese GAAP)

Stock Listings:
Stock Code:Samty Co., Ltd.
Tokyo Stock Exchange
3244

URL:

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

Company name:

Representative
Title:

Representative Director and President

Name: Yasuhiro Ogawa
Contact Person
Title:

Head of IR Office, Corporate Planning Department

Name: Izumi Jozuka

Telephone: +81-3-5224-3139

Date of Annual Shareholders Meeting:February 27, 2023

Start of dividend payments:

February 28, 2023

Submission of securities report (Planned):

March 31, 2023

Supplemental explanatory material prepared:

Yes

Results briefing held:

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

1. Consolidated Results for FY2022 (December 1, 2021 to November 30, 2022)(1) Consolidated Operating Results
Years ended November 30

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

Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2022

128,470

42.0

14,08348.8

14,441

78.2

10,8668.5

FY2021

90,460(10.5)

9,461(45.5)

8,105(46.8)

10,012(5.7)

Note: Comprehensive Income: FY2022: ¥8,890 million, (20.1%),
FY2021: ¥11,125 million, 9.1%

Net income per
share

Net Income pershare after
adjustment forresidual shares

Return on equity

Ordinary profit-tototal assets ratio

Operating margin

Yen

Yen

%

%

%

FY2022233.68213.67

11.3

3.8

11.0

FY2021

242.52214.32

11.7

2.7

10.5

(Reference) Equity in earnings (losses) of affiliated companies: FY2022: ¥ (406) million,
FY2021: ¥ 839 million

(2) Consolidated Financial Condition
At November 30
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

FY2022

413,594

110,395

23.9

2,123.10

FY2021

349,194

103,02827.0

2,029.28(Reference) Total shareholders’ equity: November 30, 2022: ¥98,771 million, November 30, 2021: ¥94,296 million(3) Consolidated Cash Flows
Years ended November 30
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancial activities

Cash and cash equivalents
at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY2022

14,897(52,024)

38,907

43,104FY2021(6,728)(52,348)

57,65840,5892. Dividends
Years ended/ending November 30
Total amountof dividends(for the entire
fiscal year)

Payoutratio

Dividendstonet assets
ratioMillions of yen%%

Dividends per share
Recorddate

Feb. 28

May 31

Aug. 31

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2021

―

39.00

―

51.00

90.00

3,937

37.1

4.6

FY2022

―

39.00

―

51.00

90.00

4,186

38.5

4.3

FY2023(Forecast)

―

39.00

―

51.00

90.00

69.8

3. Forecasts for FY2023 (December 1, 2022 to November 30, 2023)
Percentages indicate year-on-year increase/ (decrease).
Net sales

Operating profit

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

165,000

28.4

18,00027.8

11,000(23.8)

Fiscal year

Profit attributable toowners of parent
Millions of yen
Fiscal year

6,000

Net income per share%

Yen(44.8)

128.97Notes(1) Significant changes in subsidiaries during the subject fiscal year: Yes(Changes in specified subsidiaries related to a change in the scope of consolidation)
Additions: 2 (Shangri-La Kyoto Nijojo Special Purpose Company (SPC) / Ryozen Development LLC)
Deletions: (—)(2) Changes in accounting policies, changes in accounting estimates, restatements
1) Changes in accounting policies due to revision of accounting standards: Yes

2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(3) Number of shares issued and outstanding (common share)
1) Number of shares issued and46,522,685
outstanding (including treasury
FY2022sharesstock)
2) Number of treasury stock3) Average number of shares
outstanding for each period(cumulative term)

FY2022603
shares

FY2022

46,499,903
sharesYear ended
November 30,
2021

46,468,085
sharesYear ended
November 30,
2021
Year ended
November 30,
2021

201
shares41,286,203
shares(Reference) FLASH REPORT (NON-CONSOLIDATED BASIS)
1. Non-Consolidated Results for FY2022 (December 1, 2021 to November 30, 2022)(1) Non-Consolidated Operating Results
Years ended November 30

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

Net sales

Operating profit

Ordinary profit

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

FY2022

109,159

29.7

13,10539.2

10,234

59.8

7,140

68.5

FY2021

84,161(12.9)

9,413(42.9)

6,405(55.4)

4,236(57.5)Net income per share

Net Income per shareafter adjustment forresidual shares

Yen

Yen

FY2022

153.56140.41

FY2021102.62

90.69(2) Non-Consolidated Financial Condition
At November 30
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

FY2022345,549

89,01525.8

1,913.41

FY2021

304,00385,79928.2

1,846.44(Reference) Total shareholders’ equity: November 30, 2022: ¥89,015 million, November 30, 2021: ¥85,799 million* This flash report is not subject to auditing by a certified public accountant or audit firm.
* 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. Summary of Business Results .......................................................................................................... 2(1) Summary of Business Results for the Subject Period ...................................................................... 2(2) Summary of Financial Position for the Subject Period ..................................................................... 4(3) Summary of Cash Flows for the Subject Period ............................................................................... 4(4) Future Outlook .................................................................................................................................. 6
2. Basic Stance on Selection of Accounting Standards ....................................................................... 6
3. Consolidated Financial Statements and Main Explanatory Notes....................................................... 7(1) Consolidated Balance Sheets ........................................................................................................... 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 9(3) Consolidated Statements of Changes in Net Assets ...................................................................... 11(4) Consolidated Statements of Cash Flows ........................................................................................ 13(5) Notes Relating to the Consolidated Financial Statements ............................................................. 15(Notes Relating to the Assumption of a Going Concern) ................................................................. 15(Material Items Fundamental to the Preparation of Consolidated Financial Statements) ...............15(Change in Accounting Policy).......................................................................................................... 19(Change in Presentation Methods) ................................................................................................... 20(Additional Information)..................................................................................................................... 20(Notes Related to the Consolidated Statements of Cash Flows) ..................................................... 21(Segment Information) ...................................................................................................................... 22(Per Share Information) .................................................................................................................... 25(Significant Events after the Reporting Period) ................................................................................ 25

1

1. Summary of Business Results(1) Summary of Business Results for the Subject Period
During the subject fiscal year, the Japanese economy experienced a resurgence of coronavirus
infections from around the fall but there was an ongoing shift to living with COVID-19 and toward anormalization of socio-economic activities. In the global economy, the future remained uncertain due tosoaring energy prices, persistently high inflation rates, protracted tensions in Ukraine as well as risinginterest rates in Europe and the United States.
In the real estate industry, of which the Samty Group is a part, with regard to rental apartments,
occupancy rates, rent levels, and property sales prices remained favorable, because they are not easily
affected by economic trends or the effects of the COVID-19 pandemic. In the hotel industry, it was
anticipated that consumption on accommodation and tourism would increase going forward due to theimplementation of nationwide travel support and a recovery in the number of inbound visitors to Japanfor sightseeing purposes.
Under such conditions, the Group completed construction of 52 development properties (51properties, approximately 3,600 units, of the Samty brand S-RESIDENCE series of rental apartments,and one investment property). The occupancy rate of hotels owned and operated by the Group had
declined due to the impact of the quasi-emergency measures to prevent the spread of COVID infections
but is currently on a recovery trend. In addition, from the third quarter, Nesta Resort Kobe Co., Ltd.,
which operates a nature adventure theme park that comprises a hotel, became a consolidated
subsidiary. The Company is participating in the company’s management in partnership with Katana Co.,
Ltd., which has expertise in operating theme parks. The Group recognizes that people's behavior will
shift to "things and experiences" in the post-COVID era and that “tourism / leisure-related” represent
powerful assets that can be expected to grow. In addition to rental condominiums and hotels, we haveadded the theme park business as the third pillar in Japan, thereby gaining opportunities to increase
profits. We will use this initiative as an opportunity to bring about the Group’s development into asustainable business while promoting regional revitalization and contributing to the development ofregional economies. In addition, due to the yen’s depreciation during the subject fiscal year, foreignexchange gain of ¥5.7 billion was generated at consolidated subsidiaries.
As a result, for the subject fiscal year, net sales amounted to ¥128.4 billion (up 42.0% from theprevious fiscal year), with operating profit of ¥14.0 billion (up 48.8%), ordinary profit of ¥14.4 billion (up78.2%), and profit attributable to owners of parent of ¥10.8 billion (up 8.5%).
Due to the application of the Accounting Standard for Revenue Recognition, net sales in the subject
fiscal year decreased by ¥0.8 billion compared with the previous accounting method.
Results by Business Segment
a. Real Estate Development Business
The Real Estate Development Business engages in the planning, development, and sales of the Samty
brand S-RESIDENCE series, etc. In the subject fiscal year, we sold 54 properties of real estate for salefor a total sales price of around ¥73.4 billion).
As a result, net sales in the Real Estate Development Business segment amounted to ¥73.4 billion2(up 89.1% from the previous fiscal year), with operating profit of ¥15.6 billion (up 58.5%).
b. Real Estate Solution Business
The Real Estate Solution Business engages in the acquisition, renovation, and sales of profitable realestate. In the subject fiscal year, the Company sold 37 rental apartment properties and office buildings
for a total sales price of around ¥28.6 billion.
As a result, net sales in the Real Estate Solution Business segment amounted to ¥28.6 billion (down
22.8% from the previous fiscal year), with operating profit of ¥3.9 billion (up 29.1%).
c. Overseas Business
The Overseas Business engages in overseas investment and for-sale housing businesses. With regard
to the smart city, for-sale housing business project in Hanoi, Vietnam, which started sales from theprevious fiscal year, sales have been progressing smoothly even amid the COVID-19 pandemic. Of thefour buildings in this project, one has already commenced the handing over of properties to customers.
As a result, net sales in the Overseas Business segment amounted to ¥7.4 billion (up from salesof ¥0.5 billion in the previous fiscal year), with operating loss of ¥0.5 billion (operating profit of ¥0.2
billion).
d. Real Estate Leasing Business
The Real Estate Leasing Business engages in the leasing of residential apartments, office buildings,
and commercial facilities. In addition to steadily conducting property acquisitions that resulted in theacquisition of 51 profitable properties for around ¥31.0 billion in the subject fiscal year, the Company
completed development of 51 properties (Samty brand “S-RESIDENCE” series) for around ¥58.6 billion.
As a result, net sales in the Real Estate Leasing Business segment amounted to ¥8.7 billion (up9.5% from the previous fiscal year), with operating profit of ¥4.1 billion (up 10.3%).
e. Hotel Business
The Hotel Business engages in the leasing and operating of hotels. In the subject fiscal year, 19 hotels
were opened or acquired, including S-PERIA Hotel Fukuoka Nakasu (Hakata-ku, Fukuoka), Aloft Osaka
Dojima (Kita-ku, Osaka), and Hotel The Pavone (Miki City, Hyogo Prefecture) in Nesta Resort Kobe.
(Mercure Hida Takayama [Takayama City, Gifu Prefecture] opened in December 2022, and thus the
Hotel Business currently owns and operates 20 hotels.) However, with regard to the COVID-19 situation,
there was a resurgence, and the numbers of infected people reached a record high in August during
the third quarter, while the number of people entering Japan for the purpose of tourism had not yet
recovered to the pre-COVID level. Consequently, a full-year operating loss was recorded in thisbusiness. In the fourth quarter of the subject fiscal year, the occupancy rate and average room price ofowned and operated hotels were on a recovery trend due to the start of nationwide travel support andan increase in the number of inbound visitors to Japan.
In addition, concerning Hotel Sunshine Utsunomiya (Utsunomiya City, Tochigi Prefecture) and SPERIA Hotel Nagasaki (Nagasaki City, Nagasaki Prefecture), there were requests from Tochigi
Prefecture and Nagasaki Prefecture to secure accommodation and medical treatment facilities.
3

Accepting these requests from the perspectives of its corporate social responsibility and contributions
to local communities, the Group had been fully renting out both of these buildings to the two prefectures
as medical facilities. With regard to S-PERIA Hotel Nagasaki, however, normal operations wereresumed from October 1, 2022. In the case of Hotel Sunshine Utsunomiya, after consultation withTochigi Prefecture, the Company plans to terminate the lease as an accommodation facility and resume
normal operations from April 1, 2023.
As a result, net sales in the Hotel Business segment amounted to ¥6.3 billion (up 136.1% from theprevious fiscal year), with an operating loss of ¥2.7 billion (compared to operating loss of ¥2.5 billion in
the same period of the previous fiscal year).
f. Real Estate Management Business
The Real Estate Management Business engages in the managing residential apartments, officebuildings, and commercial facilities.
As a result, net sales in the Real Estate Management Business segment amounted to ¥3.8 billion(up 17.8% from the previous fiscal year), with operating profit of ¥0.7 billion (up 40.9%).
(2) Summary of Financial Position for the Subject Period
AssetsTotal assets at the end of the subject fiscal year amounted to ¥413.5 billion, an increase of ¥64.4
billion compared with the end of the previous fiscal year. Intending to maximize income gain in
accordance with the Samty Toughening Plan (Post-COVID Version) Medium-Term Management Planannounced in January 2021, the Group has a policy of holding completed properties for a certain
period of time. As a result, real estate for sale and real estate for sale under construction increasedby ¥56.9 billion, and cash and deposits increased by ¥4.4 billion.
Liabilities
Total liabilities at the end of the subject fiscal year amounted to ¥303.1 billion, an increase of ¥57
billion compared with the end of the previous fiscal year. The main factor contributing to the increase
was an increase of ¥44.4 billion in borrowings accompanying the acquisition settlements for more than
110 properties (combined total of sites for development and of income properties).
Net Assets
Total net assets at the end of the subject fiscal year amounted to ¥110.3 billion, an increase of ¥7.3
billion compared with the end of the previous fiscal year. The main contributory increases/decreases
were: an increase in retained earnings of ¥6.8 billion; a decrease of ¥2.4 billion in foreign currencytranslation adjustment; and an increase of ¥2.8 billion in non-controlling interests.
(3) Summary of Cash Flows for the Subject Period
As a result of an increase of ¥14.8 billion from operating activities, a decrease of ¥52 billion frominvesting activities, an increase of ¥38.9 billion from financing activities, and other factors, cash andcash equivalents (“cash”) at the end of the subject fiscal year increased by ¥2.5 billion to ¥43.1 billion
4compared with the end of the previous fiscal year.
The main factors affecting cash flows during the subject fiscal year are as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities amounted to ¥14.8 billion (compared to ¥6.7 billion in cashused in the previous fiscal year). This was due mainly to ¥14.5 billion in profit before income taxes;¥3.6 billion in interest paid; and ¥2.1 billion in income taxes paid. Of these, the increase in income
before income taxes was due to the progress made with sales of favorable residences and officebuildings developed in major regional cities amid the COVID pandemic.
Cash Flow from Investing Activities
Net cash used in investing activities amounted to ¥52 billion (compared to ¥52.3 billion in cash usedin the previous fiscal year). This was due mainly to ¥41.1 billion in purchase of property, plant andequipment; and ¥4.1 billion in purchase of investment securities.
Cash Flow from Financing Activities
Net cash provided by financing activities amounted to ¥38.9 billion (compared to ¥57.6 billion in cash
provided in the previous fiscal year). This was due mainly to ¥48.3 billion in proceeds from short-termborrowings; ¥30.1 billion in repayments of short-term borrowings; ¥121.6 billion in proceeds from longterm borrowings; ¥97.8 billion in repayments of long-term borrowings; ¥4.4 billion in proceeds fromissuance of bonds; and ¥4.1 billion in dividends paid.
(Reference) Cash flow-related indicators
Years ended November 30
FY2018FY2019FY2020

FY2021

FY2022

Capital ratio (%)

37.9

32.5

30.7

27.0

23.9

Capital ratio at market value (%)

35.5

39.1

26.6

30.4

25.6

Ratio of interest-bearing debt tocash flow (years)

2.8

29.6

12.8

—

18.0

Interest coverage ratio (times)

22.7

3.1

6.0

—

4.0

Notes
1. All indices are on a consolidated basis, calculated according to the following formulas:
Capital ratio: Owned capital / Total assets
Capital ratio at market value: Total market value of stocks / Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt / Operating cash flow
Interest coverage ratio: Operating cash flow / Interest payments
2. The total market value of stocks is calculated by multiplying the market value at end of term by the number ofissued shares at end of term (after deduction of treasury stock).
3. “Operating cash flow” and “interest payments” are the figures for “Net cash provided by (used in) operating
activities” and “Interest payable” in the Consolidated Statements of Cash Flows. “Interest-bearing debt” refers to
all debts listed in the Consolidated Balance Sheets on which interest is paid.
4. As the operating cash flow for the fiscal year ended November 2021 was negative, the cash flow to interestbearing debt ratio and interest coverage ratio are not stated.

5(4) Future Outlook
The Japanese government having announced a policy to downgrade COVID-19 to Class 5 under the
Infectious Disease Prevention Law from March 13, 2023, the wearing of masks will be left to thediscretion of individuals amid the ongoing shift to living with COVID-19 and toward the normalizationof socioeconomic activities. In the global economy, the future remains as uncertain as ever due tofactors that include the protracted tensions in Ukraine, soaring resource and commodity prices, andrising interest rates in Europe and the United States.
Under such an external environment, the Real Estate Development Business and Real Estate
Solution Business will verify in a multifaceted manner factors that will include interest rates, real estate
capitalization rates, and property sales price trends, while promoting the development and acquisitionof properties.
In the Overseas Business, concerning residential sales in Hanoi, Vietnam, we will promotebusiness while paying close attention to the external environment, such as the political and economic
trends in that country.
In the Real Estate Leasing Business, we will continue to hold completed properties for a certain
period of time in accordance with the Samty Toughening Plan (Post-COVID Version) Medium-Term
Management Plan with the aim of maximizing income gain.
With regard the Hotel Business, although the outlook remains unclear due to the impact of COVID
infections, we will proceed with preparations for listing Samty Japan Hotel REIT, Inc. on the Tokyo
Stock Exchange.
In the case of the Real Estate Management Business, we aim to increase fee income byincreasing the balance of assets under management and the number of managed units.
As a result, for the fiscal year ending November 2023 we plan to achieve sales of ¥165.0 billion,
operating profit of ¥18.0 billion, ordinary profit of ¥11.0 billion, and profit attributable to owners of parentof ¥6.0 billion.
Based on the future outlook, we will pay an interim dividend of ¥39.00 per share and a year-end
dividend of ¥51.00.

2. Basic Stance on Selection of Accounting Standards
The Samty Group, in consideration of comparability between financial periods and companies, for thepresent will prepare consolidated financial statements in accordance with Japanese accounting
standards.
Regarding the application of International Financial Reporting Standards (IFRS), our policy is toconsider of the situation in Japan and overseas and take appropriate measures.

63. Consolidated Financial Statements and Main Explanatory Notes(1) Consolidated Balance Sheets
November 30
Millions of yen
FY2022

FY2021ASSETS
Current assets:
Cash and deposits

41,64646,002

Accounts receivable – trade

1,858

2,476

Real estate for sale

107,875

114,623

Real estate for sale in process

71,075122,065

Merchandise

025

Supplies

23

47

2,618
(3)

4,672
(7)

225,094

289,904

26,26732,497

Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures
Accumulated depreciation(2,402)(3,185)

Buildings and structures net

23,86529,312

3,262

3,594

Buildings in trust
Accumulated depreciation

(119)

(140)

Buildings in trust net

3,142

3,454

Land

54,92552,382Land in trust

2,314

1,571

Construction in progress

6,678

3,100

728

1,169

Accumulated depreciation

(349)

(554)

Other net

379

614

91,30690,435

Other

Total property, plant and equipment
Intangible assets:
Goodwill

9

8

Other

417

406

426

414

Investment securities

27,921

26,764

Deferred tax assets

545

830

3,901

5,189

(53)

(53)

32,31532,731

124,048

123,581

42
9
51

26
81
108

349,194

413,594

Total intangible assets
Investments and other assets:

Other
Allowance for doubtful accounts
Total Investments and other assets
Total non-current assets
Deferred assets:
Share issuance costs
Bond issuance costs
Total deferred assets
Total assets

7Millions of yen
FY2022

FY2021
LIABILITIESCurrent liabilities:
Accounts payable – trade

3,304

1,800

Short-term borrowings

12,32530,468Current portion of bonds payable

—

5,170

Current portion of long-term debt

32,19735,395

Income taxes payable

1,660

3,651

—

520

5,131

12,536

54,61889,543

Bonds payable

9,000

8,145

Bonds with share acquisition rights

12,00012,000Long-term borrowings

165,709

188,769

Deferred tax liabilities

2,551

2,922

251

318

1,369

908

Construction assistance fund

372

317

Other

292

275

191,547

213,656

246,166

303,199

Share capital

20,59520,657

Capital surplus

22,471

22,533Retained earnings

50,26956,911(0)(1)

93,336100,101

965

1,099

(5)

(2,429)959(1,330)8,731

11,624

103,028

110,395

349,194

413,594

Provision for shareholder benefit program
Other
Total current liabilities
Non-current liabilities:

Retirement benefit liability
Leasehold and guarantee deposits received

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

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Years ended November 30
Millions of yen
FY2022

FY2021
Net sales

90,460128,470

Cost of sales

72,606

101,304

Gross profit

17,854

27,165

Selling, general and administrative expenses

8,392

13,081

Operating profit

9,461

14,083

33

7

Dividend income

11

16

Share of profit of entities accounted for using equity method

839

—

1,065

5,700

47

36

Penalty income

26

175

Other

110

75

2,134

6,012

Interest expenses

2,552

3,554

Interest on bonds

159

208

Non-operating income:Interest income

Foreign exchange gains
Gain on valuation of interest rate swaps

Total non-operating income
Non-operating expenses:

Share of loss of entities accounted for using equity method—

406

Commission expenses

743

1,377

35

107

Total non-operating expenses

Other

3,491

5,654

Ordinary profit

8,105

14,441

Extraordinary income:Gain on sales of non-current assets—

28

Gain on bargain purchase

4,307

—

Gain on change in equity

—

51

4,307

80

Total extraordinary income
Extraordinary loss:
Head office relocation expenses

187—

Loss on retirement of non-current assets

2

12Loss on valuation of investment securities

10—

Total extraordinary losses

201

12

Profit before income taxes

12,211

14,509

Income taxes-current

2,315

4,057

Income taxes-deferred

(196)
2,119

3,586

10,092

10,922

79

56

10,012

10,866

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

(471)

Consolidated Statements of Comprehensive Income
Years ended November 30

Millions of yen
FY2021
ProfitFY2022

10,092

10,922

Valuation difference on available-for-sale securities

784

134

Foreign currency translation adjustment247(2,166)

Total other comprehensive income

1,032(2,032)

11,1258,890

10,889

8,576

235

314

Other comprehensive income:Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests10(3) Consolidated Statements of Changes in Equity
FY2021 (December 1, 2020 to November 30, 2021)
Millions of yen
Shareholders’ equity

Balance at beginning of
periodChanges during period
Issuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease) due
to increase inconsolidated
subsidiaries
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

Balance at beginning of
periodChanges during period

Share capital

Capital surplus

16,227

17,985

4,368

4,368

Retainedearnings

Treasuryshares43,615

(883)

Total
shareholders’equity76,945
8,736(3,344)(3,344)

10,012

10,012

118

(385)

(385)

1,268

1,386

(14)

(14)

4,368

4,486

6,653

883

16,391

20,59522,47150,269(0)93,336

Millions of yen
Accumulated other comprehensive income
Total
Share
Valuation
Foreignaccumulatedacquisitiondifference on
currency
otherrightsavailable-fortranslation
comprehensive
sale securities
adjustment
income
180

(97)

83

—

Non-controllinginterests

671

Total net
assets77,699Issuance of new shares

8,736

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease)
due to increase inconsolidated
subsidiaries
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(3,344)
10,012
(385)
1,386
(14)

784

91

876

—

8,060

8,937

784

91

876

—

8,060

25,328

965

(5)

959

—

8,731

103,028

11

FY2022 (December 1, 2021 to November 30, 2022)
Millions of yen
Shareholders’ equity

Balance at beginning of
periodChanges during period
Issuance of new shares
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease) due
to increase inconsolidated
subsidiaries
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period

Balance at beginning of
periodChanges during period

Share capital

Capital surplus

20,59522,471

61

61

Retainedearnings
50,269Total
shareholders’equityTreasuryshares(0)93,336123(4,184)(4,184)

10,866

10,866
(0)

(0)

—
(40)

(40)

61

61

6,641

(0)

6,764

20,65722,53356,911(1)

100,101

Millions of yen
Accumulated other comprehensive income
Total
Share
Valuation
Foreignaccumulatedacquisitiondifference on
currency
otherrightsavailable-fortranslation
comprehensive
sale securities
adjustment
income
965

(5)

959

—

Non-controllinginterests

8,731

Total net
assets103,028

Issuance of new shares

123

Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease)
due to increase inconsolidated
subsidiaries
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(4,184)
10,866
(0)

—
(40)

134

(2,424)(2,289)

—

2,892

602

134

(2,424)(2,289)

—

2,892

7,367

1,099

(2,429)(1,330)—11,624

110,395

12

(4) Consolidated Statements of Cash Flows
Years ended November 30
Millions of yen
FY2022

FY2021
Cash flows from operating activities:
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividends income
Interest expenses
Commission expenses
Foreign exchange losses (gains)
Gain on valuation of interest rate swaps

12,211
1,018
0
(2)
39

14,509
1,332
0
4
66

(45)

(23)

2,712

3,762

743

1,377

(1,065)(5,700)

(47)

(36)

Other-net

(26)
—
(839)
(4,307)
187—(425)(13,741)
514
1,636
(312)
22
10
2,156

(175)
(28)
406
—
—
(51)
(598)
(1,108)5,306(1,775)
1,832
(401)
—
1,686

Subtotal

443

20,383

12

29

—

81

(2,509)—(4)(4,671)(3,629)175—(2,144)(6,728)14,897(85)(2,249)4(34,459)——

2,234(41,101)
(0)
247

(324)

(40)

Purchase of investment securities(5,125)(4,167)

Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of investments in affiliates
Payments for investments in capital

3,321

164

(6,926)(6,941)(8,652)
(28)

—
(0)

Penalty income
Loss (gain) on sales of property, plant and equipment
Share of loss (profit) of entities accounted for using equity method
Gain on bargain purchase
Head office relocation expenses
Loss (gain) on change in equity
Decrease (increase) in trade receivables
Decrease (Increase) in inventories
Increase (decrease) in advances received
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Increase (decrease) in leasehold and guarantee deposits received
Loss (gain) on valuation of investment securities

Interest and dividends received
Dividends received from entities accounted for using equity
methodInterest paid
Penalty income received
Payment for loss on temporary closure
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets

Payments of construction assistance fund receivables

(55)

(55)

Other-net

(16)

(113)

(52,348)(52,024)

Net cash provided by (used in) investing activities(continued on page 14)13

Millions of yen
FY2022

FY2021
Cash flows from financing activities:
Proceeds from short-term borrowings

32,66348,389

Repayments of short-term borrowings(37,223)(30,153)

4,000

4,400

Proceeds from issuance of bonds
Proceeds from issuance of bonds with share acquisition rights

12,000—

Proceeds from long-term borrowings

113,794

121,602

Repayments of long-term borrowings(62,831)(97,844)—(85)

Redemption of bonds
Purchase of treasury shares

(385)

(0)

(3,344)(4,183)

(200)

—

(814)

(3,216)57,65838,907

166

734

Net increase (decrease) in cash and cash equivalents(1,252)

2,515

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusionof subsidiaries in consolidation

41,724

40,589116—

Cash and cash equivalents at end of period

40,58943,104

Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

14(5) Notes Relating to the Consolidated Financial Statements(Notes Relating to the Assumption of a Going Concern)
No applicable items(Material items fundamental to the preparation of consolidated financial statements)
1. Items relating to the scope of consolidation(1) Number of consolidated subsidiaries: 26
Names of consolidated subsidiaries
Hikone SC Ltd.
Samty Hotel Management Co., Ltd.
Samty Property Management Co., Ltd.
Samty Asset Management Co., Ltd.
S Hotel Operations Nagasaki LLC
S Hotel Operations Nagasaki General Incorporated Association
S Hotel Operations Utsunomiya LLC
S Hotel Operations Utsunomiya General Incorporated Association
S Hotel Operations Hakata LLC
S Hotel Operations Kyoto Tambaguchi LLC
SI Kaihatsu LLC
S Hotel Operations General Incorporated Association
SAMTY ASIA INVESTMENTS PTE. LTD.
S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANYSAMTY VIETNAM CO., LTD.
S Hotel Operations Nagoya LLC
S Hotel Operations Kyoto Horikawa LLC
R&K LLCS Hotel Operations Kyoto Shijo LLC
S Hotel Operations Kyoto Oike LLC
Shangri-La Kyoto Nijojo SPC
Ryozen Development LLC
Samty Bridge One LLC
Hotel Century 21 Hiroshima LLC
Nesta Resort Kobe Co., Ltd.
Propertie Co., Ltd.
Shangri-La Kyoto Nijojo SPC, which was an affiliated company in the previous fiscal year,
became a subsidiary through the acquisition of additional equity interest, and is included in thescope of consolidation from the subject consolidated fiscal year.
Due to investment in Silent Partnership Ryozen Development LLC, Samty Bridge One LLC andHotel Century 21 Hiroshima LLC having been newly established, and the acquisition of shares in
Nesta Resort Kobe Co., Ltd. and Propertie Co., Ltd., these are included in the scope of
consolidation from the subject fiscal year.
(2) Names of material unconsolidated subsidiaries
Samty Japan Hotel REIT, Inc.
S Hotel Operations Hida Takayama LLC
Reason for exclusion from the scope of consolidation
This is because, in the subject fiscal year, the total assets, net sales, profit, retained earnings andother figures of the two non-consolidated subsidiaries were small amounts that did not have any
material effect on the consolidated financial statements.

15

2. Items relating to the application of the equity method(1) Number of affiliated companies accounted for by the equity method 1
Name of affiliated company accounted for by the equity method:
Wealth Management, Inc.
Shangri-La Kyoto Nijojo SPC has been excluded from the scope of equity method affiliates andincluded in the scope of consolidation as the company has become a subsidiary due to theacquisition of additional equity interest.
(2) Name of major non-consolidated subsidiaries to which the equity method is not applied
Samty Japan Hotel REIT, Inc.
S Hotel Operations Hida Takayama LLC
Reasons for exclusion from scope of application of equity method
This is because, in the subject fiscal year, the net income, retained earnings and other figures of
the non-consolidated subsidiaries to which the equity method is not applied were small amounts
that did not have any material effect on the consolidated financial statements.
(3) Matters that should be noted in particular regard to procedures for application of equity method
Because the balance sheet date of equity method affiliate Wealth Management, Inc. differs fromthe consolidated balance sheet date, use is made of financial statements prepared for theprovisional settlement of accounts based on the most recent quarterly settlement of accounts.
3. Items relating to the fiscal year of consolidated subsidiaries
The consolidated subsidiaries whose balance sheet dates differs from the consolidated balance
sheet date are as follows.
Balance Sheet Date
Company NameSAMTY ASIA INVESTMENTS PTE. LTD.

September 30

Note 1

S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY

September 30

Note 2SAMTY VIETNAM CO., LTD.

September 30

Note 1

R&K Limited

December 31

Note 3

Shangri-La Kyoto Nijojo SPC

December 31

Note 3

Ryozen Development LLC

March 31

Note 3Note 1: The financial statements of consolidated subsidiaries as of the balance sheet date are used. However, thenecessary adjustments for consolidation are made for important transactions that occurred in the period tothe consolidated balance sheet date.
Note 2: Consolidated financial statements were prepared based on the last day of the fiscal year of the relevant
consolidated subsidiaries. However, to better ascertain management information and disclose consolidated
financial statements, from the subject consolidated fiscal year, we have changed to a method by which
accounts are provisionally closed on the consolidated balance sheet date. As a result, in the subject fiscal
year, we consolidated the financial statements of consolidated subsidiaries for the 14 months from October
1, 2021 to November 30, 2022, and adjusted the impact of the change in the accounting period through theconsolidated statements of income. As a result, net sales for the subject fiscal year increased by ¥7,463
million, operating income increased by ¥30 million, and ordinary income and net income before income taxes
each increased by ¥42 million.
Note 3: Based on financial statements that have been provisionally settled in accordance with this settlement method
as of the consolidated balance sheet date.

4. Items related to accounting standards(1) Valuation standards and valuation methods for material assets(A) Securities
16

Securities held for ownership until maturity
Amortized cost method
Available-for-sale securities
Securities other than those without current market value, etc.
Current market value method applied. (Valuation difference is fully and directly recognized within
net assets. Cost of sale is calculated using a moving average.)
Securities without current market value, etc.
The Company applies a cost method using a moving average.
(B) Derivatives
Market value method applied(C) Inventory
Real estate for sale and real estate for sale in process
The Company applies the cost method based on actual cost. (The balance sheet value iscalculated by the book value devaluation method based on decline in profitability.)
Merchandise and supplies
The Company applies the price-of-last-purchase method.
(2) Method of depreciating material depreciable assets(A) Tangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries apply the declining-balance method. However,with regard to buildings acquired on or after April 1, 1998 (excluding accompanying facilities), as
well as buildings with accompanying facilities and structures acquired on or after April 1, 2016,
the straight-line method is applied.
Main lifetime durations are as follows.
Buildings and structures 2 – 71 years
Trust building
33 – 45 years(B) Intangible fixed assets (excluding lease assets)
The Company applies the straight-line method.
Software for use by the Company is depreciated over a useful-lifetime period of five years.
(C) Lease assets
Assets related to finance lease transactions without ownership-transfer
The lease period is deemed the useful lifetime period, and assets are depreciated using thestraight-line method to a residual value of zero.
(D) Long-term prepaid expenses
The Company applies the straight-line method.
(3) Treatment of significant deferred assets
Share issuance costs Amortized using the straight-line method over a period of three years.
Bond issuance costs Amortized using the straight-line method until bond redeemed.
(4) Standards for recognizing material allowances
Allowance for doubtful accounts
As provision for losses stemming from doubtful accounts, in the case of general claims theCompany recognizes an allowance based on the historical doubtful account ratio. In the case of
specific doubtful claims, etc., the Company considers recoverability and recognizes the estimatednon-recoverable amount.
Provision for shareholder benefits
To prepare for expenses arising from the use of the shareholder benefit plan, an estimated amountfor future use of the plan is recorded based on its actual use.
17

(5) Method of accounting for employee retirement benefits
The Company applies a simplified method to calculate retirement benefit liabilities and retirement
benefit expenses. Under this method, the Company recognizes as retirement benefit obligation theamount the Company would pay if employees took voluntary retirement at end of period after
deducting the amount receivable through the Smaller Enterprise Retirement Allowance Mutual Aid
System.
(6) Criteria for recording significant income and expenses
The details of the main performance obligations in the Group's main businesses related to revenues
arising from contracts with our customers and the normal point on time for satisfying such
performance obligations (normal point in time for recognizing revenue) are as follows.
In the Real Estate Development Business, we plan, develop, and sell the Samty brand SRESIDENCE series, etc. and are obligated to deliver real estate based on contracts with ourcustomers.
In the Real Estate Solution business, we acquire, renovate, and sell profitable real estate, etc.,
and are obligated to deliver real estate based on contracts with our customers.
In our Overseas Business, we engage in for-sale housing businesses overseas and are obligatedto deliver real estate based on contracts with our customers.
In the Real Estate Leasing Business, we engage in the leasing of residential apartments, officebuildings, and commercial facilities, and are obligated to provide the services stipulated in contracts
with our customers.
The Hotel Business engages in the leasing and managing of hotels and is obligated to provide
the services stipulated in its contracts with customers.
In the Real Estate Management Business, we engage in the management of residential
apartments, office buildings, and commercial facilities and are obligated to provide the services
stipulated in the contracts with our customers.
Of these performance obligations, revenue is recognized at the time of delivery specified in thecontract for the obligation to deliver the real estate to the customer. In contrast, service provisionobligations are performance obligations that are satisfied over a certain period of time, and revenue
is recognized as services are provided. However, in some contracts, since the performanceobligation is satisfied at the point in time when the provision of the service is completed under theterms of the transaction, revenue is recognized at that time.
With regard to the sale of real estate to special purpose companies in the real estate development
business, revenue is recognized in accordance with “Practical Guidelines for Accounting Treatmentof Real Estate Securitization Using Special Purpose Entities by Transferors” (Accounting System
Committee Report No. 15, November 4, 2014). In addition, with regard to performance obligations
relating to real estate rental, revenue is recognized in accordance with “Accounting Standard forLease Transactions” (ASBJ Statement No. 13, March 30, 2007).
(7) Criteria for converting significant foreign currency-denominated assets or liabilities into Japanesecurrency
Foreign currency-denominated monetary receivables and payables are converted into yen at the
spot exchange rate on the consolidated settlement date, and the conversion difference is treatedas profit or loss. The assets and liabilities of overseas subsidiaries, etc. are converted into yen at
the spot exchange rate on the consolidated settlement date, revenues and expenses are converted
into yen at the average market price during the period, and translation differences are included in
the foreign currency translation adjustment account and non-controlling interests in the net assets
section.
18

(8) Method for amortization of goodwill and amortization period
Amortized using the straight-line method over a 20-year period. The goodwill is amortized in alump sum when incurred in cases where the amount is immaterial.
(9) Scope of funds presented in the Consolidated Statements of Cash Flows
Funds presented comprise cash on hand, deposits that can be withdrawn at any time and areeasily convertible, and short-term investments, the maturities of which are three months or lessfrom the acquisition date and thus involve only a slight risk of price fluctuation.
(10) Other material items relating to the preparation of the consolidated financial statements
Accounting treatment of consumption tax
Non-deductible consumption tax, etc., relating to real estate for sale is included in the acquisitioncost. Non-deductible consumption tax, etc., relating to fixed assets is recognized as a long-term
prepaid expense (under Other under Assets, Investments and other assets) and amortized using
the straight-line method over a five-year period.
(Change in Accounting Policy)(Application of Accounting Standard for Revenue Recognition)
The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan [ASBJ]
Statement No. 29, March 31, 2020, hereinafter referred to as “the Revenue Recognition Standard”),
has been applied effective from the beginning of the subject first quarter accounting period. Whencontrol of promised goods or services is transferred to the customer, the amount expected to bereceived upon exchange for said goods or services will be recognized as revenue.
The main changes due to the application of this standard are as follows.
1. Revenue recognition for agent transactions
Previously, sales of utilities and corresponding purchases to tenants in rental properties, andhotel sales and corresponding purchases of outsourcing fees, etc. had been recorded as net
sales and cost of sales, respectively. As a result of examining the Company’s role (serving as asupplier or agent) in providing goods or services to customers, it was decided to change to amethod that recognizes revenue as the net amount received for transactions in which theCompany is judged to be acting as an agent.
2. Revenue recognition for other companies’ point programs
Previously, the amount corresponding to the point programs of other companies given at thetime of hotel sales was recorded as cost of sales, but as this represents an amount to be
recovered for a third party, the decision was made to change to a method of deducting theamount from the transaction price.
3. Revenue recognition for variable consideration
With regard to provision of allowance for possible contract losses in the Real Estate
Development Business, this was previously recorded in cost of sales. However, the Company
decided to change to the method of estimating the amount that is likely to occur and deductingthat amount from the transaction price.
Regarding the application of the Revenue Recognition Standard, we followed the transitional
treatment stipulated in Paragraph 84 of the Revenue Recognition Standard. Taking into account the
cumulative impact of retroactive application of new accounting policies prior to the beginning of thesubject fiscal year, the new accounting policy was applied from the balance at the beginning of thesubject fiscal year by adding it to or subtracting it from the retained earnings at the beginning of theperiod.
As a result, net sales for the subject fiscal year decreased by ¥84.6 million, cost of sales
19decreased by ¥775 million, and selling, general and administrative expenses decreased by ¥71
million.
The impact on per share information is described in the relevant section.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the Revenue
Recognition Standard, the notes on “Revenue Recognition” relating to the previous consolidated
fiscal year are not included.
With regard to the transfer of real estate that is subject to the “Practical Guidelines for Accounting
Treatments for Transferors Relating to Liquidation of Real Estate Utilizing Special Purpose
Companies” contained in the Real Estate Development Business and Real Estate Solution Businesssegments of the Company, since this is outside the scope of the Revenue Recognition Standard, theaccounting treatment will be performed as previously.
(Application of Accounting Standard for Fair Value Measurement)
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019;
hereinafter referred to as “the Fair Value Accounting Standard”), etc., has been applied from the
beginning of the subject fiscal year. New accounting policies prescribed by the Fair Value AccountingStandard, etc., will be prospectively applied in accordance with the transitional treatment prescribedin Paragraph 19 of the Fair Value Accounting Standard and Paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). The effect of theapplication of the Fair Value Accounting Standard, etc., on the consolidated financial statements isimmaterial.
The Company has also decided to provide notes on items related to the breakdown of the market
value of financial instruments by level in the notes on financial instruments. However, in accordancewith the transitional treatment stipulated in Paragraph 7-4 of “Implementation Guidance on
Disclosure about Fair Value of Financial Instruments” (ASBJ Application Guidance No. 19, July 4,2019), notes related to the previous consolidated fiscal year are not included.
(Change in Presentation Methods)(Consolidated cash flow statement)
Due to the increase in their monetary significance, we have decided to present "Increase(decrease) in advances received," which was included under “Other” in "Cash flows from operating
activities" in the previous fiscal year, separately from the subject consolidated fiscal year.
As a result, ¥514 million in "Increase (decrease) in advances received" in "Cash flows fromoperating activities" in the previous consolidated fiscal year has been changed to be posted
separately.
(Additional Information)(Change of Holding Objective)
Owing to changes in holding objective, ¥43,110 million was transferred from tangible fixed assets
to inventory.
(Accounting treatment for provision for shareholder benefits)
Due to the shareholder benefit program’s increased financial significance, the estimated amount ofexpenses related to the shareholder benefit program is recorded from the current consolidated fiscal
year. This allowance is recorded under “Provision for shareholder benefits” under current liabilities.
As a result, operating income, ordinary income and income before income taxes for the current
consolidated fiscal year each decreased by ¥520 million.

20

(Notes Related to the Consolidated Statements of Cash Flows)＊Reconciliation of end-of-period balance of cash and cash equivalents with items presented on theConsolidated Balance Sheets
At November 30
Millions of yen
FY2021
Cash and deposits

FY2022

41,64646,002Time deposits with maturities exceeding three months

(332)

(373)

Trust deposits with use restrictions

(641)

(573)

Deposits with withdrawal restrictions(83)(1,951)

40,58943,104

Cash and cash equivalents

21

(Segment Information)
1. Outline of reportable segments
The Samty Group’s reportable segments are those for which separate financial information is available
within the Company’s units of classification. To facilitate decisions on the allocation of management
resources by the Board of Directors and evaluation of operating performance, the reportable segments
are subject to regular review. Comprised of business-based segments, the Group’s reportablesegments are: Real Estate Development Business, Real Estate Solution Business, Overseas
Business, Real Estate Leasing Business, Hotel Business, and Real Estate Management Business.
The Real Estate Development Business engages in the planning, development, and sales of the
Samty brand S-RESIDENCE series. The Real Estate Solution Business engages in the acquisition,
renovation, and sales of profitable real estate. The Overseas Business engages in investments andhousing development business overseas. The Real Estate Leasing Business engages in the leasingof residential apartments, office buildings, and commercial facilities. The Hotel Business engages in
the leasing and operating of hotels. The Real Estate Management Business manages residential
apartments, office buildings, and commercial facilities.
2. Method of calculating reportable segment sales, profit, assets and other items
The accounting method for reportable segments is largely the same as that specified in “Material items
fundamental to the preparation of consolidated financial statements.”
Reportable segment profit (loss) is based on operating profit. Intersegment sales and transfers
are recorded based on market prices.
As stated under changes in accounting policy, from the beginning of the subject consolidated fiscal
year, the Company has applied the Accounting Standards for Revenue Recognition. Due to thechange in the accounting method relating to revenue recognition, the calculation method for profit orloss of reportable segments has also changed.
Due to the said change, compared with the previous method, in the subject fiscal year, sales in
the Real Estate Development Business decreased by ¥25 million, in the Real Estate Leasing Businessdecreased by ¥135 million, and in the Hotel Business by ¥686 million. Despite the decreases, there
was no impact on segment profit.

22

3. Sales, profit, assets and other items relating to each reportable segment
Fiscal year under review (December 1, 2020–November 30, 2021)
Years ended November 30
Millions of yen
Reportable Segment
Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

595

7,949

2,689

3,233

90,460

―

―

―

95

611

707

38,86337,128

595

7,949

2,784

3,845

91,167

Operating profit (loss)

9,863

3,042

298

3,779

(2,596)550

14,937

Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assets74,41083,693

26,528100,307

23,351

3,666

311,957

―

―

33

677

81

38

830

―

―

0

32,553

1,386

82

34,022

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total

Real Estate
Development
Business

Real Estate
Solution
Business

38,86337,128―Overseas
Business

Millions of yen
Adjustment
Notes 1, 2, 3

AmountRecorded on
Consolidated
IncomeStatement

90,460―90,460

707

(707)

―

91,167(707)

90,460Operating profit (loss)

14,937(5,475)

9,461

Segment assets

311,957

37,236349,194

830

187

1,018

34,022300

34,322Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total

Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsNotes

1. Adjustment to segment profit (loss) of (¥5,475 million) mainly comprises intersegment eliminations of (¥223 million),and unallocated corporate expenses of (¥5,252 million). Corporate expenses are general and administrative
expenses not attributed to any reportable segment.
2. Adjustment to segment assets of ¥37,236 million is unallocated corporate assets. Those assets mainly compriseinvestment of idle funds (cash and deposits), long-term investment funds (investment securities), and assets related
to corporate management.
3. Segment operating profit (loss) and segment assets are both adjusted to the operating profit and total assets on the
consolidated income statement.

23

Total

Fiscal year under review (December 1, 2021–November 30, 2022)
Years ended November 30
Millions of yen
Reportable Segment
Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

7,463

8,704

6,348

3,808

128,470

―

―

―

(55)

1,385

1,330

73,48828,656

7,463

8,704

6,293

5,193

129,801

Operating profit (loss)

15,637

3,928

(593)

4,168

(2,742)775

21,174

Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assets95,99959,447

13,193

94,14459,051

4,168

326,004

―

15

36

883

168

67

1,172

―

―

2

25,707

13,838245

39,794

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total

Real Estate
Development
Business

Real Estate
Solution
Business

73,48828,656―

Overseas
Business

Millions of yen
Adjustment
Notes 1, 2, 3

AmountRecorded on
Consolidated
IncomeStatement

128,470―

128,470

1,330(1,330)―129,801(1,330)128,470

Operating profit (loss)

21,174(7,090)14,083

Segment assets

326,004

87,589413,594

1,172

160

1,332

39,794514

40,308Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total

Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsNotes

1. Adjustment to segment profit (loss) of (¥7,090 million) mainly comprises intersegment eliminations of (¥251 million),and unallocated corporate expenses of (¥6,838 million). Corporate expenses are general and administrative
expenses not attributed to any reportable segment.
2. Adjustment to segment assets of ¥87,589 million is unallocated corporate assets. Those assets mainly compriseinvestment of idle funds (cash and deposits), long-term investment funds (investment securities), and assets related
to corporate management.
3. Segment operating profit (loss) and segment assets are both adjusted to the operating profit and total assets on the
consolidated income statement.

24

Total

(Per Share Information)
FY2021

FY2022

Net assets per share (Yen)2,029.28

2,123.10

Net income per share (Yen)

242.52233.68

Diluted net income per share (Yen)

214.32213.67(Note) 1. Bases for calculation of net assets per share
FY2021

FY2022

Total net assets(Millions of yen)

103,028

110,395

Amount subtracted from total net assets(Millions of yen)

8,731

11,624Non-controlling interests(Millions of yen)

8,731

11,62494,296

98,771

46,467,884

46,522,082

Net assets attributable to common stock at(Millions of yen)end of period
Number of shares of common stock at end(Shares)of period

2. Bases for calculation of net income per share and diluted net income per share
FY2021

FY2022

Net income per share
Profit attributable to owners of parent(Millions of yen)Amount not attributable to common(Millions of yen)stock shareholders
Profit attributable to owners of parent(Millions of yen)related to ordinary shares
Average number of outstanding shares(Shares)of common stock during the year

10,012

10,866――

10,012

10,866

41,286,203

46,499,903――

Diluted net income per share
Adjustment to profit attributable toowners of parent(Millions of yen)

Additional shares of common stock(Shares)

5,432,329

4,354,452

Convertible bonds(Shares)

5,432,329

4,354,452――

Outline of residual shares not included in the calculation ofdiluted net income per share owing to no dilutive effect(Significant Events after the Reporting Period)
Not applicable.
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