First Quarter of the Fiscal Year Ending November 30, 2023

Explanatory Material for the Financial Results
Samty Co., Ltd. (securities code: 3244)

Contents
目次

1.

First Quarter of the Fiscal Year Ending November 30, 2023
Overview of the Consolidated Financial Statements






Earnings Summary
Overview of Consolidated Statements of Income
Overview of the Consolidated Balance Sheets
Financial Condition

2.

First Quarter of the Fiscal Year Ending November 30, 2023
Overview by SegmentEarnings Summary by Segment
Earnings Highlights (Capital Gains Businesses)
Real Estate Development Business
Acquisition Results – Land for Development
Real Estate Development BusinessResidential Development Plan
Real Estate Development Business
Hotel and Office Development Plan












Real Estate Development Business and Real Estate
Solution Business

Sales Results
Overseas Business State of Progress in Projects
Earnings Highlights (Income Gains Businesses)
Real Estate Leasing Business
Acquisition Results—Income Properties
Real Estate Leasing Business
Asset Holdings by Region and Occupancy Rates
Hotel Business Hotel Occupancy Rates
Real Estate Management Business
AUM and Number of Units Under Management

P. 02

P. 07

3． Medium-Term Management Plan
Review and State of Progress








Basic Policies and Key Performance Indicators (KPIs)
Transformation of the Earnings StructureState of Progress of the Investment Plan
State of Progress in Key Performance Indicators (KPIs)
State of Progress in the Transformation of theProfit Structure (Expansion of Income Gains)
State of Progress in Expanding Group Assets
Dividends and Shareholder Returns

4． First Quarter of the Fiscal Year Ending November 30, 2023
Topics and Sustainability Initiatives









P. 20

P. 28

Formulation of Green Loan Framework
Procuring Financing with Green Finance
Acquisition of BELS Certification
Acquisition of DBJ Green Building Certification
Expansion of Our Sustainability Web pages
Transition to a Company With an Audit and Supervisory
Committee
5th Anniversary Festival at Nesta Resort Kobe
Partial Renovation of the Hotel the Pavone1

First Quarter of the Fiscal Year Ending November 30, 2023
Overview of the Consolidated Financial Statements

First Quarter of the Fiscal YearEnding November 30, 2023

Overview of the Financial Statements

Earnings Summary

Net sales in Q1 of FY2023 were 254.7% of the same period last year.
Net sales for FY2023 Q1 was approximately 27 billion yen and operating profit was approximately 1.6 billion yen. Operating profit, which
was in the red in FY2022 Q1, is now in the black. Aiming to maximize income gains, we expect to start property sales in 2Q.
Full-year
plan
165,000

Net Sales(¥ mn)
180,000
150,000

12,00090,00030,000

営業利益
Operating
Profit18,0009,000

85,552

101,120

90,460128,470

6,000

26,9830
2019/11期
FY20192020/11期
FY20202021/11期
FY20212022/11期
FY2022

15,417

17,355

14,083
9,461

3,000

1,613

0

2023/11期
FY2023

FY20192019/11期

FY20202020/11期

FY20212021/11期

FY20222022/11期

1Q

Full-yearplan
11,00013,193

15,247

FY20232023/11期
1Q※

Ordinary
Profit
経常利益(¥ mn)
16,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
(2,000)(4,000)Full-yearplan
18,00015,000120,000

60,000(¥ mn)(¥ mn)
12,00010,0008,000
6,000

14,441

4,000

8,105

Profit*
当期純利益

9,740

10,615

10,012

10,866Full-year
plan
6,000

2,000
0

(2,022)
2019/11期
FY20192020/11期
FY20202021/11期
FY20212022/11期
FY20222023/11期
FY2023
1Q(2,000)(2,227)(4,000)FY20192019/11期

FY20202020/11期

FY20212021/11期*Profit attributable to owners of parent

FY20222022/11期

FY20232023/11期
1Q

3First Quarter of the Fiscal YearEnding November 30, 2023

Overview of the Financial Statements

Overview of Consolidated Statements of Income

 Net sales and operating profit increased in FY2023 Q1 due to an increase in properties sold compared to the same period last year.
 Due to the impact of foreign exchange losses (approx. -1.9 billion yen) and one-time expenses (approx. -0.7 billion yen) related to theestablishment of a special investigation committee (announced on January 16, 2023), ordinary income and profit were in the red.

2022/11期1Q
FY2022 Q1

2023/11期1Q
FY2023 Q1

前年同期比
Year
on Year2023/11期
FY2023（単位：百万円）(Unit: Millions of yen)
実績 l
Actua

構成比
Percent

実績 l
Actua

Increase/増減
decrease

構成比
Percent

Percent
増減率changePercentage
進捗率
of progress

165,000

16.4%-

18,0008.9%-

11,000

-

-645

-

6,000

-

-13.84-128.97

-

7,608

100%

26,983100%

19,375

売上原価Costof sales

6,088

80.0%

21,223

78.7%

15,134

Selling, general and
販売費・一般管理費
administrative
expenses

2,135

28.1%

4,147

15.4%

2,011

営業利益 profit
Operating

-615

-

1,613

-

2,228

営業外収益 profit
Non-operating

538

7.1%

93

0.3%

-445

1,947

25.6%

3,729

13.8%

1,782

-2,024--2,022-

1

特別利益
Extraordinary
income

-

-

62

0.2%

62

Extraordinary
loss
特別損失

-

-

727

2.7%

727

純利益（親会社株主帰属）
Profitattributable to owners of parent-1,581-20.8%-2,227-

Earnings
per share (yen)１株当たり純利益（円）-34.04--47.88-

経常利益profit
Ordinaryplan

254.6%

売上高
Net
sales

営業外費用 expenses
Non-operating

Full-year
通期計画

4First Quarter of the Fiscal YearEnding November 30, 2023

Overview of the Financial Statements

Overview of Consolidated Balance Sheets The Group's total assets increased approximately 19.4 billion yen from the end of the previous fiscal year. We will continue to accumulate
assets to achieve the Medium-term Management Plan (for the Post-COVID Version), while focusing on financial discipline, etc.
（単位：百万円）(Unit: Millions of yen)
資産合計
Total
assets
流動資産
Current
assets2022/11期
As of Nov. 30,2022
実績2023/11期1Q
As of Feb. 28,
2023
実績

Increase/
増減額
decrease

主な増減理由Main reasonsfor increase/decrease◇販売用不動産◇Real estate for sale413,594

433,037

19,442289,904

323,139

33,234

Property acquisitions
物件取得+15,483 百万円
mn. yenTransfers and other
振替その他+25,931 百万円
mn. yen

現金及び預金Cashand deposits

46,00230,753-15,248

販売用不動産Realestate for sale

114,623

156,541

41,917Real
estate for sale in process
仕掛販売用不動産

122,065

124,864

2,799

123,581

109,801-13,780

90,435

76,103-14,332

414

435

20

32,73133,262531

303,199

325,279

22,07989,543

100,913

11,369

短期借入金
Short-termborrowings

30,46835,382

4,914

１年内返済予定の長期借入金
Current
portion of long-term debt

35,39549,882

14,486

１年内返済予定の社債
Current
portion of bonds

5,170

5,170

0

◇株主資本
◇Shareholders’ equity

固定負債 liabilities
Non-current

213,656

224,366

10,710Net profit for the quarter
四半期純利益mn. yen-2,227 百万円

Long-term
debt
長期借入金

188,769

199,675

10,906

Dividend payments
配当金の支払い-2,372 百万円
mn. yenBonds
社債 payable

8,145

8,145

0

RS issuance
RSの発行

-

Adjustment for business
企業結合に係る調整
combinations-

Non-current
固定資産 assets
Propertyand equipment
有形固定資産
Intangible
assets
無形固定資産投資その他の資産
Investments
and other assets
負債合計
Total
liabilities
流動負債
Current
liabilities

新株予約権付社債
Bonds
with share acquisition rights

12,00012,0000

純資産
Net
assets110,395

107,757-2,637

負債純資産合計
Total
liabilities and net assets

413,594

433,037

19,442

有利子負債
Interest-bearing
debt

262,778

298,255

35,477

株主資本Shareholders’equity100,101

95,500-4,600

23.9%

22.2%

-1.7%

自己資本比率Equityratio (%)

Property sales
物件売却-◇Real estate for sale in◇仕掛販売用不動産
process
開発用地取得・建築費
development, and building costs

Acquisition of land for+13,800 百万円
mn. yenTransfers and other
振替その他-10,849 百万円
mn. yen◇Property, plant and◇有形固定資産
equipment
収益不動産取得
Acquisition of income
properties
振替その他+4,364 百万円
mn. yenTransfers and other-19,747 百万円
mn. yen5

First Quarter of the Fiscal YearEnding November 30, 2023

Overview of the Financial Statements

Financial Condition Borrowings increased due to income gains and aggressive purchasing activities to expand Group assets.
 Long-term borrowings have an average maturity of 10.6 years and an average interest rate of 1.29%, and among them, ourborrowings on income properties have an average maturity of 13.2 years and an average interest rate of 1.24％.

Interestbearing debt(¥mn)

Interest-Bearing Debt and Net D/E Ratio
Short-term
短期借入金
borrowings

Long-term
長期借入金
borrowings

Current portion of
１年以内長期借入金
long-term borrowings

Bonds
社債
payable320,000
280,000

267,948

240,000

219,231200,000
160,000

153,005
130,927

120,000

1.21

80,000112,224

298,255

3.50

2.79

3.00

2.25

1.88

2.50
199,675

2.00

188,769
1.50

165,709

1.00

116,406
35,39540,0000

1.43

ネットD/Eレシオ
Net D/E ratio

Net D/E
ratio

32,197

16,387

14,715
16,883

12,325

2019/11期
FY20192020/11期
FY20202021/11期
FY2021

Note: Net debt-equity ratio = (Interest-bearing debt - Cash and deposits) / Equity
Note 2: Interest-bearing debt excluding zero-coupon bonds with stock acquisition rights

49,882

30,46835,3822022/11期
FY20222023/11期1Q
FY2023 Q1

0.50
0.00

6

First Quarter of the Fiscal Year Ending November 30, 2023
Overview by Segment

First Quarter of the Fiscal Year Ending
November 30, 2023

Overview by Segment

Capital gains
Income gains

Earnings Summary by Segment

In Q1, the company aggressively sold more properties than in the same period last year. The overseas businessreturned to profitability as the impact of the cost of sales, which had been significant in the previous period, leveled
off. The capital gains businesses had a significant increase in both sales and profit.
In the Hotel Business, although hotel occupancy rates have been recovering steadily, ordinary profit was in the red
due to the impact of hotels that have not yet recovered to pre-pandemic levels in terms of the room rates, and hotels
that have been open for business for just a short period of time.

（単位：百万円）(Unit:
Millionsof yen)of yen)
(Unit:
Millions

2022/11期1Q
FY2022 Q1

2023/11期1Q
FY2023 Q1

実績
ActualActual
実績

Operating
利益率
margin

前年同期比Year
on YearOperating
利益率
margin増減
Actual2023/11期
FY2023Full-year

Percent
増減率change

通期計画
planPercentage
of進捗率
progress

売上高
Net
sales

7,608

-

26,983-

19,375+254.7%

165,000

16.3%

キャピ
タル
Capital

不動産開発事業Real
Estate Development Business

2,212

-

9,166

-

6,954

+314.4%95,0009.6%

不動産ソリューション事業
Real
Estate Solution Business

2,000

-

1,615

-

-385

-19.3%

26,000

6.2%--

11,302-

11,302-

16,500

68.5%

イン
カム
Income

不動産賃貸事業Real
Estate Leasing Business

1,908

-

1,742

-

-166

-8.7%

9,000

19.4%

ホテル賃貸・運営事業
HotelBusiness

709

-

2,326

-

1,616

+227.7%

15,00015.5%

不動産管理事業Real
Estate Management Business

1,068

-

1,323

-

255

+23.9%

6,200

21.3%

調整額
Adjustment

-290

-

-491

-

-201

-

-2,700-

営業利益 profit
Operating

-615

-

1,613

6.0%

2,228

-

18,000-

キャピ
タル
Capital

不動産開発事業Real
Estate Development Business

157

7.1%

1,837

20.0%

1,680

+1,070.1%

15,00012.3%

不動産ソリューション事業
Real
Estate Solution Business

370

18.5%

232

14.4%

-138

-37.3%

3,000

7.8%

海外事業
Overseas
Business

-57

-

1,419

12.6%

1,477

-

1,600

88.7%

イン
カム
Income

不動産賃貸事業Real
Estate Leasing Business

968

50.7%

602

34.6%

-365

-37.8%

5,000

12.0%

ホテル賃貸・運営事業
HotelBusiness

-769

-

-788

-

-19

-

400

-

不動産管理事業Real
Estate Management Business

210

19.7%

58

4.4%

-152

-72.4%

300

19.5%

-

-252

-

-7,300-

海外事業
Overseas
Business

調整額
Adjustment-1,496--1,7488Overview by Segment

Earnings Highlights (Capital Gains Businesses)

Capital Gains

Real Estate Development
Business
Income
gains

•

34.0%

(¥ mn)

95,00030,00025,00020.0

15,000

5,000
0

7.1

15,00030,00030.0

13,000

157

1,837

20.0

-10.0

FY20222022/11期

FY20232023/11期

FY20232023/11期

Q1
1Q

Q1
1Q

（Plan）
（計画）

18.5

14.4

10.0

0.0

0

■Net sales ■Segment operating profit ● Segment operating margin

16,50011,302

2,000
370

1,615
232

3,000

FY20222022/11期
Q1
1Q

FY20232023/11期
Q1
1Q

FY20232023/11期（Plan）
（計画）

50.0
40.0

9,000

30.0

7,000

11.5

10,0005,000*90% of which contributes to the Group’s performance（％）

11,00025,00015,000

0.0

2,212

•

40.0

20.0

41.9%

We expect the net sales of the Sakura
Project to be about ¥40.7 billion*, andprofit of about ¥5.7 billion* when the
project is sold out.
Sales and deliveries of V8 and V9 havebeen good, resulting in a significant
increase in sales and profit compared tothe same period last year.

(¥ mn)

10.0

9,166

•

（％）

26,000Percent of sales:

Capitalgains(¥ mn)

20,000
15.8

6.0%

In Q1 we sold 5 properties (for about¥1.6 billion).
Going forward, we will continue sales
to the REIT and to overseas investors
as a way of exiting so that we canmaximize our earnings.

•

Income
gains

（％）

30.0

20,000•Overseas Business

Percent of sales:

Capitalgains

In Q1 we sold 7 properties (for about¥9.1 billion).
Because our Medium-Term
Management Plan is based on theidea of retaining ownership following
development, we are watching market
trends so that we can run our businesssmoothly and flexibly.

10,000

Incomegains

Percent of sales:

Capitalgains•

Real Estate Solution
Business

3,000
1,000

-10.0

-1,000

20.0

12.6

5,000

1,419

0.03

9.7 1,600

0.0

(57)
FY2022
FY20222022/11期
Q1
1QQ1

FY2023
FY20232023/11期
Q1Q1
1Q

10.0

FY2023
FY2023(Plan)
2023/11期-10.0（Plan）（計画）

Note: Net sales for the percent of sales is calculated based on the amount of net sales to third parties.

9Real Estate Development Business
Acquisition Results – Land for Development

Overview by Segment

Capital Gains In Q1, the company acquired 34 parcels of land (approximately ¥16 billion) for development in major cities across Japan.
At this time, plans call for the acquisition of 52 properties (approximately ¥19.7 billion) for development in the current fiscal year. Progressin purchasing has been good.
 We plan to acquire parcels of land for development of three properties (approximately 2.4 billion yen) in the next fiscal year and thereafter.
Land for development: Based on acquisition amount (percentage of progress)
Full-year
plan
通期計画

500億円
¥72.0
bn.

2023/11期1Q
FY2023 Q1
実績
ActualPercentage of
進捗率
progress

160億円
¥16.0
bn.

2023/11期
FY2023
Expected to
今期決済予定settle this FY

32.0%
22.2
%

Actual + planned

Full-year
plan
通期計画

197億円
¥19.7
bn.

Expected to2024/11期以降

実績＋決済予定
settlement

500億円
¥72.0
bn.
¥50.0
bn.

357億円
¥35.7
bn.

settle next FY
決済予定or later

Percentage of
進捗率
progress

71.5%
49.6 %

24億円
¥2.4
bn.

Land for development: Based on number of acquisitions (by region)

北海道
Hokkaido

首都圏

Tokyo
metropolitan area

中部
Chubu

Chugoku/
中四国
Shikoku

関西
Kansai九州
Kyushu合計
Total

2023/11期1Q
取得実績
FY2023Q1 acquisitions

2件
2

9件
9

7件7

9件
9

5件
5

2件
2

34件
34

Expected
to settle this FY
今期決済予定

9件
9

15件
15

18件
18

4件
4

3件
3

3件
3

52件
52

合計
Total

11件
11

24件
24

25件
25

13件
13

8件
8

5件
5

86件
86

1件
1

1件
1

--

--

1件
1

--

3件
3

Expected
to settle next FY or later
来期以降決済予定

10

Real Estate Development BusinessResidential Development Plan

Overview by Segment

Capital Gains A total of 59 residential buildings (3,893 units) are scheduled to be completed FY2023. Of these, 17 buildings (1,160 units) werecompleted in Q1.
 We are planning to develop a total of 190 buildings with about 13,000 units in cities across Japan going forward. We will continue topromote residential development to increase income gains.
北海道

首都圏

中部

関西

中四国

九州

（Buildings）

120

100

80

60

(Reference)
Assumed rent ofproperties owned(annual)Approximately¥1,077mn.

52(3,652 units)40¥6.101 mn.

87(5,892 units)¥3,929 mn.

61(4,291 units)

17 of 42
(1,160 of 2,733 units)

Of which,
17 buildings
are currently
owned

20

0

(Reference)
Assumed rent ofproperties owned(annual)Approximately(Reference)
Assumed rent ofproperties owned(annual)Approximately

Purchasing
in progress for2025 onwarda

FY20222022/11期（Actual）（実績）

FY20232023/11期（Plan）（計画）

FY20242024/11期（Plan）（計画）

FY2025
onward2025/11期以降（計画）（Plan）

Notes: (1) The number of buildings is the total of the development plan and results for S-RESIDENCE and investment unit sales.
(2) Assumed rental revenue is calculated using the number of properties owned and the rents expected from the projects at full occupancy.

11

Real Estate Development Business
Hotel and Office Development Plan

Overview by Segment

Capital Gains Mercure Hida Takayama opened in December, 2022

Plans for hotel and office development projects scheduled for completion and opening this fiscal year and beyond are also mostly on
track.
 In line with our policy of making strategic investments in regional cities, we are promoting developments focused on cities where we havebranch offices and their surrounding areas.
Type

FY

2023
2024
Hotel

Project Name

Location

Mercure Haneda
Six Senses Kyoto

No. ofRooms

Planned Opening(completion)

Ota-ku, Tokyo
Higashiyama-ku, Kyoto

363
81

Winter 2023 opening
Spring 2024 opening

Banyan Tree Higashiyama Kyoto

Higashiyama-ku, Kyoto

52

Spring 2024 opening

Shangri-La Hotel Kyoto Nijojo Project (tentative name)

Kamigyo-ku, Kyoto

77

Spring 2025 opening

Sapporo-shi Hotel Project
Osaka-shi Kita-ku Hotel Project
Hiroshima-shi, Minami-ku Hotel Project
Total: 7 buildings

Sapporo-shi
Kita-ku, Osaka-shi
Minami-ku, Hiroshima-shi

-

-

573

-

2024

Odori-Nishi 5-Chome II Office Building ProjectChuo-ku, Sapporo-shi-

2024 completion

2025

Nakamura-Ku Noritake 1-Chome Office Building Project

Nakamura-ku, Nagoya-shi-

2024 completion

Sapporo-shi Chuo-ku Office ProjectChuo-ku, Sapporo-shi--

Nagoya-shi Nakamura-ku Office Project

Nakamura-ku, Nagoya-shi--

Hiroshima-shi Naka-ku Office Project

Naka-ku, Hiroshima-shi--

Hiroshima-ken, Fukuyama-shi Office Project

Fukuyama-shi, Hiroshima-ken--

Fukuoka-shi Hakata-ku Office Project

Hakata-ku, Fukuoka-shi

-

-

-

-

2025
TBD

Office

TBD

Total: 7 buildings

Mercure Hida Takayama

Artist’s rendering of a Mercure
Haneda guest room

Artist’s rendering of the Banyan Tree
Higashiyama Kyoto

Notes: (1) Project names that have the word “Project” in them are tentative names.
(1) The renderings are from the consideration stage of the project and may change in the future.

Artist’s rendering of the Six Senses
Kyoto

12

Overview by Segment

Capital Gains

Real Estate Development Business and Real Estate Solution Business
Sales Results In Q1, we sold 7 properties in our Real Estate Development Business and 5 properties in our Real Estate Solution Business for a total of
12 properties.
 All properties sold in Q1 were sold to outside parties. We plan to continue property sales from Q2 on to achieve the full-year plan.
Based on number of sales (percentage of progress)
Segment
セグメント

Full-year
plan
通期計画

Percentage of
進捗率
progress

Actual
実績

売却予定
Full-year
plan

実績＋売却予定
Planned sales

Percentage of
進捗率
progress

7
7件

10.6%
10.6%

20件20

27
27件

40.9%
40.9%

(65)
(65件)

(7)
(7件)

10.8%
10.8%

(20)
(20件)

(27)
(27件)

41.5%
41.5%

- -

--

--

--

--

--

(1件)
(1)

--

--

--

--

--

40件
40

5件
5

12.5%
12.5%

9件 9

14
14件

35.0%
35.0%

106件
106

12件
12

11.3%
11.3%

29件29

41件
41

38.7%
38.7%

(うち 投資分譲)(Investment
unit sales in lots)(うち(Hotelandホテルその他)
other)

不動産ソリューション事業
Real
Estate Solution Business
合計
Total

2023/11期
FY2023

66
66件

Real
Estate Development Business
不動産開発事業(S-RESIDENCE)(うち S-RESIDENCE)

FY2023 Q1
2023/11期1Q

Based on number of sales (by region)
売却種別／エリア
Segment/Region
不動産開発事業

Real Estate Development Business

北海道

Hokkaido

-

-

Tokyo
首都圏
metropolitan
area

3件
3

中部

関西

Chubu

Chugoku/
中四国
ShikokuKansai

3件
3

九州

1件
1

-

-

(3件)

(3件)

(1件)

(1)

-

(うち 投資分譲)(Investment
unit sales in lots)

--

--

--

--

(うち
ホテルその他)(Hoteland other)

--

--

--

--

2件
2

0件
0

5件
5

(うち S-RESIDENCE)(S-RESIDENCE)

不動産ソリューション事業
Real
Estate Solution Business
合計
Total

-

(3)

合計
Total

Kyushu

-

-

7件
7

-

(7件)

--

--

--

--

--

--

--

--

3件
3

--

--

5件
5

3件
3

4件
4

0件
0

0件
0

12件
12

(3)

-

-

(7)

13

Overview by Segment

Capital Gains

Overseas BusinessState of Progress in Projects
 The V8 building is completely sold on an application basis. Delivery to customers on track with a progress
rate of about 96%.
 The V9 building is also progressing well, with about 98% of units sold on an application basis. Delivery has
also started, and about 76% of the total number of units have been delivered.
 Sales for the V10 building started at the end of 2022 and as of April 21, was about 27% sold, so sales areproceeding well for the V10 building, too.

引渡し時期・販売状況について（2023年4月21日時点）
Timing of Delivery and Status of Sales(As of April 21, 2023)■
Total units (residential) 総戸数（ショップハウス）■Total units (shophouse)
総戸数（住宅）(units)For sale

1,200■Unitssold (applied for)
販売戸数（申込ベース）

For sale

1,000
800
600
400
200
0

Start ofdelivery
Number sold
Artist’s rendering of a model room, theexterior, and an entrance hall

Not yetfor sale

Sold out

Percentage
of progress

Approx. 100％

Percentage
of progress

Approx. 98％

Percentage
of progress

Approx. 27％

V8
V8棟

V9
V9棟

V10
V10棟

V7
V7棟

November 2022

January 2023

Fall 2023

Fall 2023

718 units/

1,102 units/

307 units/-

718 units

1,126 units

1,133 units

Note: In the graph above, “percentage of progress”
is calculated on applications.

14Overview by Segment
Income Gains

Earnings Highlights (Income Gains Businesses)

Real Estate Leasing
Business
Incomegains
Capitalgains•(¥ mn)（％）

10,000

80.0

9,000

Capitalgains•

Percent of sales:
8.6%

Despite higher net sales, operating profit
was negative YoY due to higher expenses
for newly opened hotels, etc.
In addition to domestic travelers, inbounddemand is recovering, and we expect
occupancy rates and room rates torecover.

•

Incomegains(¥ mn)（％）

16,00030.0

15,000Capitalgains•

Percent of sales:
3.1%

Although assets under management (AUM)
and the number of units under management
have been growing steadily, in Q1 sales
increased but profit decreased due to theimpact of increased expenses accompanying
the expansion of business scale. We expect
increased sales and decreased profits for thefull fiscal year, too.

(¥ mn)

（％）

8,000

50.0

12,000

8,000
55.6

50.7

6,200

60.0

20.0

34.6

5,000

30.0
4,000

40.0
4,000

4,000
1,908

20.0

1,742
968

40.0

6,000

8,000

6,000

2,000

Incomegains

Percent of sales:
6.5%

Sales and profit declined YoY in 1Q due toproperty sales in 4Q of the previous fiscal
year.
Acquisitions of property, including thosescheduled for settlement, is progressing
smoothly, and rental income is expected toincrease going forward due to theaccumulation of properties held.

•

Real Estate Management
Business

Hotel Business

2,326
709

400

602

0

0.0

(788)

2,000

1,323
4.4

1,068
2.7

-4,000

20.0

10.0

0
(769)

19.7

0.0

210

0

58

10.0

4.8
300

0.0

FY20222022/11期

FY20232023/11期

FY20232023/11期

2022/11期
FY2022
FY20222023/11期
FY2023
FY20232023/11期
FY2023
FY20232022/11期
FY2022
FY20222023/11期
FY2023
FY20232023/11期
FY2023
FY2023

Q1
1Q

Q1
1Q

（Plan）
（計画）

1QQ1

1Q
Q1
Q1

（計画）
（Plan）(Plan)

1Q
Q1
Q1

1Q
Q1
Q1

（計画）
（Plan）(Plan)■Net sales ■Segment operating profit ● Segment operating margin
Note: Net sales for the percent of sales is calculated based on the amount of net sales to third parties

15

Real Estate Leasing Business
Acquisition Results—Income Properties

Overview by Segment
Income Gains In Q1, we acquired 24 income properties in major cities throughout Japan for about ¥17.9 billion.
We plan to acquire 26 income properties for about ¥13.7 billion as scheduled for settlement this fiscal year.
 For the next fiscal year and beyond, we plan to acquire 25 income properties for about ¥26.4 billion, and progress inpurchasing them has been favorable.
Income properties: Based on acquisition amount(percentage of progress)
Full-year
通期計画
plan

2023/11月期1Q
FY2023 Q1
Actual
実績

500億円
¥50.0
bn.

179億円
¥17.9
bn.

2023/11月期
FY2023

Percentage
進捗率
of progress

35.8%

Planned実績＋決済予定

Full-year
通期計画

決済予定

settlement

plan

137億円
¥13.7
bn.

500億円
¥50.0
bn.

316億円
¥31.6
bn.

Percentage
進捗率 ofprogress63.2%

To来期以降be settled
next
FY or
決済予定
later
264億円
¥26.4
bn.

Income properties: Based on number of acquisitions (by region)
Hokkaido
北海道

Tokyo
metropolitan
area

首都圏

中部
Chubu

Kansai関西

Chugoku
中四国/Shikoku

九州
Kyushu合計
Total

2023/11期1Q
取得実績
FY2023Q1 acquisitions

2件
2

5件
5

3件
3

8件
8

1件
1

5件
5

24件
24

今期決済予定Expected
to settle this FY

2件
2

8件
8

5件
5

3件
3

4件
4

4件
4

26件
26

合計
Total

4件4

13件
13

8件8

11件
11

5件5

9件9

50件
50

来期以降決済予定
Expected
to settle next FY or later

4件
4

7件
7

1件
1

9件
9

1件
1

3件
3

25件
25

16

Overview by Segment
Income Gains

Real Estate Leasing Business
Asset Holdings by Region and Occupancy Rates

 We own 192 rental properties (total book value of about ¥195.9 billion), including residences, hotels, and offices.
Of these, the occupancy rate for residential properties has been steady at around 95%.
 We have created a well-balanced portfolio by holding properties throughout Japan.

Residential Occupancy Rates

保有資産の割合（地域別）
Asset
Holdings by Region
北海道
Hokkaido
6.2%

7.7%

（％）

Chugoku
Shikoku
Chubu
中部

18.0%

関西
Kansai

39.2%

10.0%

100
Kyushu
九州

93.4

18.8%

94.1

94.7

94.5 94.6 94.5

95.4

94.5

95.6 95.7

94.8

94.5 94.6

90

Tokyo
metropolitan area

80

保有資産の割合（資産種別）
Asset
Holdings by Asset Type

Residential
レジデンス

Hotel
ホテル

61.2%

22.2%

Office
オフィス
11.8%
Other
その他

0

Q1
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q
FY20202020/11期

FY20212021/11期

FY20222022/11期

FY20232023/11期

4.8%
Note: Data is as of February 28, 2023. The total is based on the total book valueof real estate for sale and non-current assets owned by the Samty Groupon a consolidated basis.

Note: Average occupancy rate at end of each quarter
Total floor area basis (weighted average): Total leased area of each property/total floorarea
Excluded from the total are special properties, such as newly built properties orproperties that are acquired that have not passed a certain period of time.

17Overview by Segment
Income Gains

Hotel Business
Hotel Occupancy Rates•

Hotel the Pavone (Nesta Resort Kobe) and Mercure Hida Takayama were added to ourparticipating hotels.

•

The average occupancy rate recovered steadily. In addition to the number of domestic tourists, thenumber of foreign tourists is increasing, so we expect further increases in occupancy rates andaverage room rates.

Hotels in Which Samty Is Involved(In Order of Acquisition/Development)
RegionTokyo
metropolitan
area

Chubu

Kansai

Chugoku

KyushuHotel name

Average Occupancy Rates

RemarkCenter Hotel Tokyo

108

Owned and
operated

HOTEL SUNSHINE UTSUNOMIYA

160-

S-PERIA INN Nihombashi Hakozaki

114

Developed andoperated

Mercure Hida Takayama

161

Developed

Ibis Styles Nagoya

284

Developed andOwned

Amano Hashidate Hotel(including Auberge)

86

Owned

GOZAN

21

Owned

S-PERIA INN Osaka Hommachi

125

S-PERIA HOTEL Kyoto

165

Developed andoperated
Developed andOwned

Mercure Kyoto Station

225

Developed

50

Agora Kyoto Karasuma

140

Developed

40

Agora Kyoto Shijo

80

Developed

30

Aloft Osaka Dojima

305

Owned

20

Oakwood Hotel Kyoto Oike

120

Developed and
Owned

Hotel the Pavone (Nesta Resort Kobe)

109

Operated

NEST HOTEL HIROSHIMAHATCHOBORI

126

Owned

84

Owned

S-PERIA HOTEL Nagasaki

155-

S-PERIA HOTEL Hakata

287

Developed

87

Developed andoperated

NEST HOTEL HIROSHIMA STATIONS-PERIA HOTEL Fukuoka Nakasu

Total

Rooms

20 hotels

2,942 rooms

Go To campaigns(all Japan)

State of emergency(Tokyo)Semi-state of
emergency(Tokyo)

（％）

100
90
80
70
60

10
0

4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2
2019

2020

2021

2022

2023

Note: Calculated based on a weighted average of the average occupancy rate of each hotel as of the end ofeach month.
Excluded from the total are properties that have been open less than one year.

18Real Estate Management Business
AUM and Number of Units Under Management

Overview by Segment
Income Gains

•

•

AUM
（¥ bn）REIT•

AUM reached the ¥380 billion level atthe end of January 2023. We willcontinue to share properties andsupport growth.
AUM is expected to expand due to anincrease in assets under management
and the formation of a hotel REIT.

•

Number of Units Under Management

私募(サブAM等を含む)

サムティ資産8,000
800¥382.7 billion

7,000
700

AUM is growing
steadily

600
6,000

The number of units undermanagement is expanding steadily.
Steady expansion is expected in the
future based on an increase inproperties owned by Samty
Residential Investment Corp. and theplanned completion of at least 10,000
units developed by Samty by 2023 orthereafter.

リートPM(units)Approx.

50,000units
Number is steadily
increasing

3,000
300

262.4

317.8

40,00030,000382.7

20,0002,000
200

25,91027,29017,85810,000

100
1,000

0

分譲管理

27,000

500
5,000
400
4,000

一般オーナーEnd of
2021/1末

Jan. 2021

End of
2022/1末

Jan. 2022

End of
2023/1末
Jan.2023

End of
2024/1末End of2025/1末(target)(target)Jan. 2024

Jan.20250

End of
End of
End of
End of
End of
2021/11末 2022/11末 2023/2末 2024/11末 2025/11末
Nov. 2021 Nov. 2022 Feb. 2023 Nov. 2024 Nov. 2025
(target)(target)19

Medium-Term Management Plan

Samty Toughening Plan (Post-COVID Version)
Review and State of Progress

Review of the MediumTerm Management Plan

Basic Policies and Key Performance Indicators (KPIs)

 The retooled Medium-Term Management Plan of January 2021 takes a look at social trends and has a plan to transform our structure to
expand stable earnings.
 The goal is to maintain an equity ratio of 30% and aim for approximately double the net sales and operating profit at the time the plan wasformulated, by the end of FY2025.
 The assumptions of the plan were reviewed and the target figures for FY11/2023 were changed in light of the current businessenvironment.
Note: Numerical targets before revision: Net sales: ¥170 billion, rental income: ¥35 billion, operating income: ¥20 billion

Basic Policies

1

Switch to a “develop and own” business

3

Strategically invest in regional
metropolitan areas

2

Establish a hotel REIT

4

Build a profit base overseas

KPI Targets
FY2020
ActualFY2021
ActualFY2022
ActualFY2023
Numerical Target

FY2025
Numerical Target

Net sales¥101.1 bn.

¥90.4 bn.

(¥13.8 bn.)

¥128.4 bn.
（¥18.8 bn.）

¥165.0 bn.

About ¥220.0 bn.

Operating profit¥17.3 bn.

¥9.4 bn.

¥14.0 bn.

¥18.0 bn.

More than ¥35.0 bn.

ROE

14.3％

11.6%

11.1%

-

About 15.0％

ROA

7.4％

3.2%

3.7%

-

About 7.0％

Equity ratio

30.7％

27.0%

23.9%

-

More than 30.0％(rental income, etc.)(¥12.1 bn.)(¥27.5 bn.)

Notes : (1) ROA = Operating profit / Total assets (average of FY start and end)
(2) Net sales for the rental income, etc. portion of net sales is calculated based on the amount of net sales to third parties.

(¥45.0 bn.)

21

Review of the MediumTerm Management Plan

Transformation of the Earnings Structure Operating profit for FY2025 is targeted at ¥35.0 billion, and the strategy to transform the business portfolio aims for operating
profit-based income gains of ¥17.5 billion, about a sixfold increase from the date of formulation.

Income Gains as a Percentage of Operating Profit
FY2022 Actual

FY2020 Actual

FY2023 Target

FY2025 Target

Approx. 6-fold increase planned

Income gains

Capital gains(In Japan)

Approx.
¥Approx. 2.8-fold increase planned
Approx.

Approx.

¥¥

1.4 bn.

2.9 bn.
(17%)

(10%)

Operating profit

Operating profit¥17.3 bn.

¥14.0 bn.

¥18.0 bn.

Approx.

Approx.

14.4 bn.

¥(83%)

Breakdown

Real Estate Leasing Business
Hotel Business¥4.1 bn.
-¥0.65 bn.

営業利益
Operatingprofit350¥35.0億円
bn.

Approx.

12.6 bn.

¥(90%)

Breakdown

(35%)

(22%)

Operating profit¥

In Japan¥12.25 bn.

4.0 bn.

Overseas14.0 bn.

¥5.25 bn.

(78%)

Breakdown(15%)

Real Estate Leasing Business¥4.1 bn.

Real Estate Leasing Business¥5.0 bn.

Hotel Business-¥2.7 bn.

Hotel Business¥0.4 bn.

Real EstateManagement Business¥0.3 bn.

Real EstateManagement Business¥0.7 bn.

Real EstateManagement Business¥0.3 bn.

Adjustment (prorated)-¥0.85 bn.

Adjustment (prorated)-¥0.7 bn.

Adjustment (prorated)-¥1.7 bn.

Note: Calculated as a percentage after deducting general and administrative expenses not attributable to a reporting segment.
Those for prior fiscal years have been revised to reflect the reclassification into new segments.

Income gains

Total ¥17.5 bn.
(50%)

Capital gains

Total ¥17.5 bn.
(50%)

22

Review of the MediumTerm Management Plan

State of Progress of the Investment Plan

The Investment Plan Is Proceeding Favorably toward Early
Achievement of Targets
 Implementing a plan to invest about ¥750 billion over the five-year period of 2021-2025. The numerical targets andpercentages of progress for each theme are given below.
Cumulative investments as of Q1 FY2023 about ¥550.5 billion (+¥46.8 billion from the previous fiscal year-end), andthe percentage of progress was 73.4％, so we have achieved 70% of our targeted investment amount in the second yearof the plan. We will continue working on early achievement of our targets.
Percentage of Progress toward
Targets by Theme

100％ Achieved

Development ofResidential Properties

Development ofHotels and Office Buildings

Acquisition ofIncome Properties

Overseas BusinessState of progressState of progressState of progressState of progress

243.7 bn.

¥¥

Targetamount81.2%¥

300.0 bn.

Targetamount122.0 bn.

101.7%¥

120.0 bn.

149.4 bn.

進捗状況¥

Targetamount59.8%¥

250.0 bn.

¥

35.4 bn.

Targetamount44.3%¥

80.0 bn.

Note: For projects contracted and settled or planned to be settled from December 2020 onward. The progress figures are total cost values for the projects.

23

Review of the MediumTerm Management Plan

State of Progress in Key Performance Indicators (KPIs)

 Our equity ratio is declining due to an increase in assets held in conjunction with property acquisitions designed to increase income
gains.
 We are striving to improve ROA and ROE, as we remain mindful of the targets for FY2025 set forth in our Medium-Term
Management Plan.

Equity

自己資本
(¥mn)
（百万円）

自己資本・自己資本比率の推移
Equity and Equity Ratio
自己資本

自己資本比率

110,000

45

100,000

40

90,00032.5

80,00070,00094,296

98,771

95,92730.7
27.0
77,02871,02722.2

2560,00020

50,00015

40,00010

30,0005

20,0000
2019/11期
FY20192020/11期
FY20202021/11期
FY20212022/11期
FY20222023/11期1Q
FY2023

ROE

（％）
18.0

ROA

ROE = Profit / Equity ((average of FY start and end)
ROA = Operating profit / Total assets (average of
FY start and end)

16.9
14.7

35
30

23.9

ROE and ROA
ＲＯＥ・ＲＯＡの推移
Note:

Equity
ratio
(%)

14.3

14.0

10.0

11.7
8.5

8.1

7.4

6.0

3.2
2.0

(2.0)

11.3

3.7

Temporary decline
due to asset
expansion
2018/11期
FY2018

2019/11期
FY20192020/11期
FY20202021/11期
FY20212022/11期
FY2022

Q1

24

Review of the MediumTerm Management Plan

State of Progress in the Transformation of theProfit Structure (Expansion of Income Gains) Income gains based on net sales rose compared to the previous year in all three segments. We expect them to expand further
going forward.

Income Gains (Based on Net Sales)
Net
sales
売上高
(¥
mn)
（百万円）

32,00030,200

Expected toincrease by

28,0006,200＋49.6％

24,00020,19020,0005,193

15,00016,00012,000

6,293

8,000
4,000
0

3,685
1,068
709
1,908

5,391
8,704

1,323
2,326
1,742

2022/11期1Q
FY2022 Q1

2022/11期
FY20222023/11期1Q
FY2023 Q1

（実績）

（実績）

（実績）

（Actual）

9,000（Actual）

Note: Calculated as total net sales, including internal sales（Actual）

2023/11期
FY2023(Plan)（計画）25

Review of the MediumTerm Management Plan

State of Progress in Expanding Group Assets

 Group assets rose by about ¥19.4 billion year on year (+3.3%) due to asset growth.
 We are implementing strategic initiatives 1-3 below so that our assets will grow steadily until the end of FY2025.
Aiming for Group assets of¥1.0 trillion by FY2025

総資産(サムティ)
AUM(レジREIT)
AUM(ホテルREIT)■Total assets (Samty) ■AUM (Residential REIT) ■ AUM (Hotel REIT)(¥ bn)

Preparation for listing
the hotel REIT

10,000
1,000

2

800
8,000

Support for increasing

6,000
600

400
4,000

1

495.5

576.3

the residential REIT’s

595.7

AUM

3

369.3

Accumulation ofincome properties

200
2,000

0

FY20202020/11期(Actual)（実績）

FY20212021/11期(Actual)（実績）

FY20222022/11期(Actual)（実績）

FY2023 Q1
2023/11期1Q(Actual)（実績）

FY20252025/11期(Target)（目標）

Note: Group assets are calculated by adding Samty’s total assets + the balance of the REIT AUM (assets under management).

26

Dividend Policy/Shareholder
Returns

Dividends and Shareholder Returns

Dividends
In FY2022 we kept dividends the same level as
FY2021, with an annual dividend of 90 yen.

(¥)
100

Initialplanneddividend(¥39 at mid-year and ¥51 at year-end).

The Company recognizes that returning profits

80

Dividend

当初予想配当金

79

increase
増配（1回目）(first)Dividend

increase
増配（2回目）(second)

Dividend
increase
増配（3回目）(third)

90

90

82

Dividend
payout
（％）
配当性向
ratio

90

70.0

69.8
60.0

to shareholders is one of its most importantmanagement tasks, and will maintain its

60

50.0

dividend forecast for FY2023 at the previous
year’s level of ¥90 (¥39 at mid-year and ¥51 at

40.0
40

year-end).
We plan to temporarily have a dividend payout ratio

80.0

20

32.0

31.4

FY20192019/11期

FY20202020/11期

37.1

38.5

FY20212021/11期

FY20222022/11期

of about 70%.

（実績）

30.0

FY20232023/11期(Plan)（予想）

20.0

Shareholder Returns

1. Shareholder benefits

2. Presentation of QUO Cards

We provide benefits to shareholders ofrecord as of November 30 allowing them tostay for free at the hotels in Japan in which
we are involved.

We give a QUO prepaid card worth ¥1,000 to
those shareholders who have exercised theirvoting rights.

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First Quarter of the Fiscal Year Ending November 30, 2023
Topics and Sustainability Initiatives

Formulation of Green Loan Framework

Sustainability

 In January 2023 we developed a Green Finance Framework and obtained a third-party evaluation.
 We will contribute to the environment and society by improving energy efficiency in the real estate we develop and own, anddiversify financing through the use of green finance.
Our Basic Sustainability Policy

E: Environmental
Consideration

Overview of Green Finance
Financial
institution

Green project

Samty
Finance

InvestReportFramework

G: Thoroughness ofCorporate Morals

External evaluation

S: Coexistence with
Local Communities

The purpose of formulating a green finance framework・Contribute to the realization of a sustainable environment and society

S: Being a Company that
Values People

・Enlarge the base of investors interested in ESG investment
・Strengthen the foundation for stable financing

Promote the enhancement of the sustainability of our business by contributing to
the environment, society, and the diversification of finance.
29

Sustainability

Procuring Financing with Green Finance Procured green building development financing in the form of a syndicated loan with Shiga Bank, Ltd. and two other banks in
January 2023 and with The Hokkaido Bank, Ltd. as the lender in March 2023.
 Aim to contribute to the realization of a sustainable environment and society, and also strengthen the foundation for stablefinancing.
Overview of green financing: 1. Shiga Bank, Ltd. and two other banks

Date of contract
Lender(s)January 27, 2023
Shiga Bank, Ltd. (arranger), The Ehime
Bank, Ltd., Shikoku Bank, Ltd.

Loan amount¥2,700 million

Date of borrowing

January 31, 2023

Use of funds

Green building development

Third party
certification

Obtained a second opinion from R&I on
the Green Loan Framework
Overview of green financing: 2. The Hokkaido Bank, Ltd.

Date of contract

March 31, 2023

Lender(s)The Hokkaido Bank, Ltd.

Loan amount¥380 million

Date of borrowing

March 31, 2023

Use of funds

Green building development

Third party
certification

Japan Credit Rating Agency, Ltd.
Green Loan Evaluation: Green１

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Sustainability

Acquisition of BELS Certification

 Ibis Styles Nagoya, a hotel developed and owned by the Company, received a five-star rating, the highest rating, in the
BELS certification system, which is a building energy efficiency and conservation performance indication system. Also, theXymax Sapporo Odori Building (formerly the S-Building, Sapporo-Odori), an office building developed and sold by the Company,
and S-RESIDENCE Kotoni ekimae, a rental apartment building, received 4-star BELS certification.
 Going forward, too, we will develop and supply properties that are energy- and resource-conscious, based on our basic
sustainability policy.
Hotel overview (BELS 5-star)■Name: Ibis Styles Nagoya■Location: Nagoya, Nakamura-ku■Access: 8-minute walk from Nagoya
StationRental apartment building overview(BELS 4-star)■Name: S-RESIDENCE Kotoni ekimae■Location: Sapporo, Nishi-ku■Access: 1-minute walk from the Kotoni
subway station

Office building overview (BELS 4-star)■Name: Xymax Sapporo Odori Building(formerly: S-Building Sapporo-Odori)■Location: Sapporo, Chuo-ku■Access: 1-minute walk from the Odori
subway station

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Sustainability

Acquisition of DBJ Green Building Certification

 We acquired 2021 DBJ Green Building Certification from the Development Bank of Japan for 11 S-RESIDENCE properties(some of which have been sold) that we developed.
 We aim to develop properties that are not only profitable, but also have been designed with diversified social demands andenergy-saving taken into consideration to sustainably increase corporate value.

Overview of residential building ①

Overview of residential building ②

Name: S-RESIDENCE Nihonbashi

Name: S-RESIDENCE

Qualier

Kawaramachi

Location: Osaka, Naniwa-ku

Location: Hiroshima, Naka-ku

Access: 3-minute walk from theAccess: 2-minute walk from

Ebisu subway station

Funairi-machi stop on the
Hiroshima Electric Railway

Acquired DBJ Green Building Certification on 11 buildings (two with 3 stars, ninewith 2 stars), including the 2 buildings above.

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Sustainability

Expansion of Our Sustainability Web pages

 We opened our sustainability web pages in October 2022.
 We established an environmental data collection system in the Company and disclosed our CO2 emissions. In addition, we have
expanded the information disclosed on this website by identifying material issues and risks and opportunities associated with climatechange, and post the results and processes of these efforts.
Steps in Identification ofMaterial Issues① List social issues

Our Material Issues
Environment② Evaluate priority③ Identify key
sustainability issues

SocialDevelop and acquire talented personnel who are passionate about what they do•Promote employee growth and personnel development•Acquire talented employees to enhance businesscompetitiveness•Diversify lifestyles and work styles, improve job
satisfaction of employees, and improve work-life balance
Providing innovative and creative new products and services•Meet the diverse needs of customers and society•Invigorate regions•Contribute to a safe and secure society④ Validate

Periodically review our material
issues and ensure theirappropriateness

Bring about a society where people and nature coexist in harmony•Prevent the worsening of climate change and promotea decarbonized society•Take countermeasures to natural disasters (including earthquakes)

GovernanceHave ethical corporate activities•Enhance governance•Improve efforts regarding human rights

As a member of society, we will strive to realize a sustainable society and enhance ourcorporate value from a medium- to long-term perspective to put our corporate philosophyof Morals, Passion, Challenges, and the Realization of Dreams into practice.

Sustainability website,
Information on addressing
climate change and otherdetails⇒33

Transition to a Company With an Audit and Supervisory
Committee

Topics In February 2023 we transitioned from a company with a board of company auditors to a company with an audit andsupervisory committee.
Purpose of the transition

Schematic of the new corporate governance system

General Meeting of Shareholders①Enhance corporate
governance

Board ofDirectors

Audit andSupervisory
Committee

Executive
Committee

Audit andSupervisory
Committee Office

Accounting
Auditors

Nomination andRemuneration Committee②Improve the transparency ofmanagement③Accelerate decision-making

Representative Director,
PresidentInternal Control
Committee

Various departments/
Hotels and affiliate companies

Internal Audit
Department

Consulting attorneys,etc.

Information Security
Committee

Achieve high supervisory
capability

By transitioning to a company with an audit and supervisory committee we will achieve a highsupervisory capability and enhance corporate governance. We will improve the transparency ofmanagement and also accelerate decision-making.
34

5th Anniversary Festival at Nesta Resort Kobe

Topics Nest Resort Kobe (Miki City, Hyogo Prefecture) reached the fifth anniversary of its rebirth as a great outdoors adventure
theme park and held a 5th Anniversary Festival.
 Having reached its fifth anniversary, it further strengthened its offerings of exciting experiences that stir your instincts in thegreat outdoors. Special experiences that make your body and mind move instinctively have been unrolled one after another.
Overview of the 5th Anniversary Festival
On the occasion of its 5th anniversary, exciting experiencesthat stir your instincts were further enhanced and, unlike
entertainment that uses the latest technology, provide
experiences that stir your instincts in the great outdoors.
Instincts, celebrate! 5th Anniversary event (opened March 18)■Nesta 5th Anniversary’s Hi Five! Party■Eating experiences that will stir your instincts
Jumbo Campfire Field■The popular buggies have evolved into an impactfulexperience
Buggy Explosion■Be one with nature at the hotel, too. Hotel the Pavone’s newconcept rooms: Nature Rooms

By taking various measures, such as having limited time events and renovating
the Hotel the Pavone, we have strengthened the brand as a great outdoors
adventure theme park and will connect it to invigorating the local economy.
35

Topics

Partial Renovation of the Hotel the Pavone

 The Hotel the Pavone, which is in Nesta Resort Kobe (Miki City, Hyogo Prefecture) has been partially renovated.

Overview and concept of the renovation
The newly opened “nature rooms” are experiential
concept rooms that allow you to be immersed in nature,even in your room.
A major feature is the large opening window overlooking
the great outdoors. The whole family can sit back and relax
on the window sill and enjoy the great outdoors.

Nature rooms thatallow you to be

immersedin nature

The rooms have been redesigned to make you feel like you
are staying in a lush green wilderness, and even after thesun goes down, when you return to your room from dinner,
the ceiling is filled with a star-filled sky.
Further measures are under consideration to make it anadventure base where visitors can experience a luxurious
day in the great outdoors that will keep them excited.

Concept rooms that don’t let you forget that you are in
the great outdoors and are a space where you can fully enjoy
the great outdoors even on rainy days or with small children.

By leveraging Samty’s knowhow in hotel development and management, continuing
to invest in Hotel the Pavone to make it a hotel that attracts both domestic andinternational visitors, we will contribute to inbound demand and the tourism industry.
36

Disclaimer

 While due diligence is exercised for the information provided in this document, no guarantee is madeas to the accuracy or safety of the information. In addition, please note in advance that the contents
may be changed or deleted without prior notice.
 This document contains forward-looking statements on our current plans and business performancebased on information available as of the date of announcement. These statements involve risks anduncertainties that could affect our business performance in the future, and actual results may differ
from these statements due to various factors.
 This document is merely intended to foster understanding of the Company and not necessarily
intended as a solicitation for investment.

Inquiries
Investor Relations Office, Corporate Planning Department✉E-mail: samty-pr@samty.co.jp

37