January 8, 2019

Flash Report (Consolidated Basis)
Results for the year ended November 30, 2018
(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: Kazushi EguchiContact Person
Title:

Director & General Manager of Business Administration Division

Name: Hiroaki Matsui

Telephone: +81-6-6838-3616

Date of Annual Shareholders Meeting (Scheduled): February 27, 2019
Start of dividend payments (Planned):

February 28, 2019

Submission of securities report (Planned):

February 28, 2019

Supplemental explanatory material prepared:

No

Results briefing held:

Yes (for institutional investors and analysts)(Figures less than ¥1 million have been omitted.)

1. Consolidated Results for the Fiscal Year Ended November 2018 (FY11/18)(December 1, 2017 to November 30, 2018)(1) Consolidated Operating Results
Years ended November 30

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

Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

2018

84,27439.3

14,033

38.5

11,635

37.5

8,489

49.9

2017

60,47915.4

10,131

18.0

8,461

24.6

5,661

22.3

Note: Comprehensive Income: Year ended November 30, 2018: ¥8,672 million, 49.4%;
Year ended November 30, 2017: ¥5,804 million, 25.5%
Net income per
share

Net Income per shareafter adjustment forresidual shares

Return on equity

Ordinary
income-to-total
assets ratio

Operating margin

Yen

Yen

%

%

%

2018

283.89273.26

16.9

7.1

16.7

2017

209.71

194.88

15.8

5.5

16.8

(Reference) Equity in earnings (losses) of affiliated companies: Year ended November 30, 2018: ¥ ― million,
Year ended November 30, 2017: ¥ ― million
Note: The Company, on the shareholder determination date of September 30, 2018, issued stock acquisition rights
without contribution (partial commitment-type rights offering / allotment of listing-type stock acquisition rights
without contribution) to shareholders, and payment for the subject stock acquisition rights was completed. Because
the amount paid based on the rights offering is lower than the market value, net income per share has been
calculated assuming that payment based on the subject rights offering for the portion corresponding to the stock
split was made at the beginning of the previous fiscal year.

(2) Consolidated Financial Condition
At November 30
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2018

162,500

62,43837.9

1,616.59

2017

166,449

39,36023.4

1,387.04(Reference) Total shareholders’ equity: November 30, 2018: ¥61,533 million, November 30, 2017: ¥39,017 million
Note: The Company, on the shareholder determination date of September 30, 2018, issued stock acquisition rights
without contribution (partial commitment-type rights offering / allotment of listing-type stock acquisition rights
without contribution) to shareholders, and payment for the subject stock acquisition rights was completed. Because
the amount paid based on the rights offering is lower than the market value, net assets per share has been
calculated assuming that payment based on the subject rights offering for the portion corresponding to the stock
split was made at the beginning of the previous fiscal year.

(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

2018

31,828(744)(11,836)

44,0802017

11,583(25,676)

18,211

24,833

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

Total amount ofdividends(for the entire
fiscal year)

Payoutratio

Dividendstonet assets
ratioMillions of yen%%

Recorddate

Feb. 28

May 31

Aug. 31

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2017

―

0.00

―

47.00

47.00

1,183

20.1

3.2

2018

―

0.00

―

68.00

68.00

2,588

24.0

4.5

2019
(Forecast)

―

35.00

―

40.00

75.00

31.7

3. Forecasts for Fiscal Year Ending November 30, 2019
Percentages indicate year-on-year increase/ (decrease).
Net sales

Fiscal year

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

86,0002.0

15,0006.9

13,000

11.7

Profit attributable toowners of parent

Fiscal year

Ordinary income

Net income per share

Millions of yen

%

9,000

6.0

Yen
236.44

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

Deletions: (—)(2) Changes in accounting policies, changes in accounting estimates, restatements
1) Changes in accounting policies due to revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None
(3) Number of shares issued and outstanding (common share)
1) Number of shares issued andYear ended
39,800,000
outstanding (including treasury
November 30,
sharesstock)
2018
Year ended
November 30,
20182) Number of treasury stock

1,736,212
sharesYear ended
November 30,
2017
Year ended
November 30,
201730,147,291
shares2,017,256
shares3) Average number of shares
outstanding for each period(cumulative term)

Year ended
Year ended
29,902,396
26,995,738
November 30,
November 30,
sharesshares2018
2017
The Company, on the shareholder determination date of September 30, 2018, issued stock acquisition rights
without contribution (partial commitment-type rights offering / allotment of listing-type stock acquisition rights
without contribution) to shareholders, and payment for the subject stock acquisition rights was completed. Because
the amount paid based on the rights offering is lower than the market value, the number of issued shares (common
stock) has been calculated assuming that payment based on the subject rights offering for the portion
corresponding to the stock split was made at the beginning of the previous fiscal year.

(Reference) FLASH REPORT (NON-CONSOLIDATED BASIS)
1. Non-Consolidated Results for the Fiscal Year Ended November 2018 (FY11/18)(December 1, 2017 to November 30, 2018)(1) Non-Consolidated Operating Results
Years ended November 30

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

Net sales

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

2018

75,152

34.3

17,578106.3

15,484120.6

11,709

149.2

2017

55,949

29.7

8,522

62.7

7,018

92.2

4,698

89.6

Net income per share

Net Income per shareafter adjustment forresidual shares

Yen

Yen

2018

391.59376.932017

174.05161.74

Note: The Company, on the shareholder determination date of September 30, 2018, issued stock acquisition rights
without contribution (partial commitment-type rights offering / allotment of listing-type stock acquisition rights
without contribution) to shareholders, and payment for the subject stock acquisition rights was completed. Because
the amount paid based on the rights offering is lower than the market value, net income per share has been
calculated assuming that payment based on the subject rights offering for the portion corresponding to the stock
split was made at the beginning of the previous fiscal year.

(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

2018

153,017

58,12337.7

1,516.76

2017

149,456

32,50321.5

1,143.28(Reference) Total shareholders’ equity: November 30, 2018: ¥57,733 million, November 30, 2017: ¥32,160 million
Note: The Company, on the shareholder determination date of September 30, 2018, issued stock acquisition rights
without contribution (partial commitment-type rights offering / allotment of listing-type stock acquisition rights
without contribution) to shareholders, and payment for the subject stock acquisition rights was completed. Because
the amount paid based on the rights offering is lower than the market value, net assets per share has been
calculated assuming that payment based on the subject rights offering for the portion corresponding to the stock
split was made at the beginning of the previous fiscal year.

* 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.
 The Company plans to hold an explanatory meeting for institutional investors and analysts on January 23, 2019.

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 ............................................................................... 5(4) Future Outlook .................................................................................................................................. 6
2. Basic Stance on Selection of Accounting Standards ....................................................................... 7
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 Presentation Methods) ................................................................................................... 18(Additional Information) ..................................................................................................................... 18(Related to Consolidated Statement of Income) .............................................................................. 19(Notes Related to the Consolidated Statements of Cash Flows) ..................................................... 19(Real Estate for Lease, etc.) ............................................................................................................. 20(Segment Information) ...................................................................................................................... 21(Per Share Information) .................................................................................................................... 23(Significant Events after the Reporting Period) ................................................................................ 24

1

1. Summary of Business Results(1) Summary of Business Results for the Subject Period
During the subject fiscal year, the Japanese economy, amid continued expansion in employment andincomes, continued to recover at a moderate pace, with improvement in corporate earnings on theback on government economic measures and the Bank of Japan’s easy-money policy. However,caution remains necessary regarding such factors as the economic outlook in China and otheremerging Asian economies, the effects of uncertainty in government policy, the direction ofinternational trade problems, and fluctuations in financial and capital markets.
In the real estate industry, of which the Samty Group is a part, retail store and hotel demand has
risen in response to the continued low interest rate environment and increase in overseas tourists,
while real estate demand remains robust on improved profitability due to low office vacancy rates inmajor cities.
Under such conditions, the Samty Group, in accordance with its “Challenge 40” medium-term
management plan (revised in July 2016), actively pursued business operations based on the three key
strategies of 1) Development of business model centered on Samty Residential Investment
Corporation; 2) Strategic investment in regional metropolitan areas; and 3) Roll-out of hotel
development business. Also, in September 2018, Samty formulated and began implementing a new
medium-term management plan, the “Samty Toughening Plan.”
As a result, for the subject fiscal year, net sales amounted to ¥84,274 million (+39.3% year onyear), with operating income of ¥14,033 million (+38.5%), ordinary income of ¥11,635 million (+37.5%),
and profit attributable to owners of parent of ¥8,489 million (+49.9%).

a. Real Estate Business
The Real Estate business comprises the planning, development, and sales of real estate properties,
including the Samty brand S-RESIDENCE series, as well as the revitalization and sales of income
properties and other real estate. We also plan, develop, and sell one-room condominiums forinvestment.
Properties sold as the S-RESIDENCE Series were “S-RESIDENCE Ochanomizu” (Bunkyo-ku,
Tokyo), “S-RESIDENCE Bunkyo Koishikawa” (Bunkyo-ku, Tokyo), “S-RESIDENCE Shinjuku Urban
Style” (Shinjuku-ku, Tokyo), “S-RESIDENCE Shinjuku EAST” (Shinjuku-ku, Tokyo), “S-RESIDENCE
Kiyosumi-shirakawa” (Koto-ku, Tokyo), “S-RESIDENCE Oshiage Park Side” (Sumida-ku, Tokyo),“S-RESIDENCE Kinshicho Park Side” (Sumida-ku, Tokyo), “S-RESIDENCE Nihombashi Hamacho”(Chuo-ku, Tokyo), “S-RESIDENCE Tsukishima” (Chuo-ku, Tokyo), “S-RESIDENCE Kuramae”(Taito-ku, Tokyo), “S-RESIDENCE Nerima Sakuradai” (Nerima-ku, Tokyo), “S-RESIDENCE Kawasaki
Kaizuka”(Kawasaki-ku,

Kawasaki-shi),“S-RESIDENCE

Matsudo”(Matsudo-shi,

Chiba),“S-RESIDENCE Tsurumai” (Naka-ku, Nagoya-shi), “S-RESIDENCE Shin-Osaka Luna” (Yodogawa-ku,
Osaka-shi), “S-RESIDENCE Shin-Osaka Ridente” (Yodogawa-ku, Osaka-shi), and “S-RESIDENCE
Shin-Osaka Garden” (Yodogawa-ku, Osaka-shi). As income apartments, the Company sold a total of
37 properties, including “SAMTY Felice Odoriminami” (Chuo-ku, Sapporo-shi), “SAMTY Residence
Mito Chuo” (Mito-shi, Ibaraki), “SAMTY Residence Shonan Chigasaki” (Chigasaki-shi, Kanagawa),

2

“SAMTY Sanno Residence” (Nakagawa-ku, Nagoya-shi), “SAMTY Kamiyashiro” (Meito-ku,
Nagoya-shi), “SAMTY Kobe Sta. Minami Dori” (Hyogo-ku, Kobe-shi), “SAMTY Charme Hakata A, B”(Hakata-ku,

Fukuoka-shi),“SAMTY

Kumamoto

Keitokuko-mae”(Chuo-ku,

Kumamoto-shi),“COSMO-CITY Ekoda” (Nerima-ku, Tokyo), “Prospere Tsurukawa” (Machida-shi, Tokyo), “S-FORT
Kawaguchi Namiki” (Kawaguchi-shi, Saitama), “Dimus Yokohama Kannai” (Naka-ku, Yokohama-shi),“Greencourt Aratama” (Minami-ku, Nagoya-shi), “AS Residence Tsu City” (Tsu-shi, Mie), “Succeed
Takaragaike” (Sakyo-ku, Kyoto-shi), “Charmant de Minoh” (Minoh-shi, Osaka), “Grand Heights Funairi”(Naka-ku, Hiroshima-shi), “Grand E'terna Oita” (Oita-shi, Oita), and “Studio Square Takasagomachi”(Oita-shi, Oita). As hotels, the Company sold “S-PERIA INN Nihombashihakozaki” (Chuo-ku, Tokyo),and “S-PERIA Hotel Hakata” (Hakata-ku, Fukuoka-shi). As office buildings, the Company sold “SAMTY
Uehommachi Building” (Tennoji-ku, Osaka-shi), and “Nissan Minamihorie Building” (Nishi-ku,
Osaka-shi), and as other commercial facilities, “SAMTY Minatogawakoen Building” (Hyogo-ku,
Kobe-shi), and “PIERI Moriyama” (Moriyama-shi, Shiga).
The Company also sold 383 units of condominiums for investment, at “SAMTY Osaka GRAND
EAST” (Higashinari-ku, Osaka-shi), “SAMTY Osaka GRAND EAST II” (Higashinari-ku, Osaka-shi),“SAMTY Osaka CITY WEST” (Nishiyodogawa-ku, Osaka-shi), “SAMTY Himejima LIBERLE”(Nishiyodogawa-ku, Osaka-shi), “STAGE GRANDE Akihabara” (Taito-ku, Tokyo), and “Jiacosmo
Edobori Parkfront” (Nishi-ku, Osaka-shi).
As a result, net sales in the Real Estate Business segment amounted to ¥75,138 million (+46.0%
YoY), with operating income of ¥15,547 million (+46.7%).

b. Property Leasing Business
The Property Leasing business comprises the leasing and management of rental apartments, officebuildings, commercial facilities, hotels, and other properties.
The Samty Group continued its efforts to expand its area of business operations and strengthen
purchasing of income properties. Properties acquired were “SAMTY Residence N21” (Higashi-ku,
Sapporo-shi), “SAMTY Residence Funabashi Honcho” (Funabashi-shi, Chiba), “SAMTY Residence

Aobadai” (Aoba-ku, Yokohama-shi), “SAMTY Residence Fujigaoka” (Aoba-ku, Yokohama-shi),“SAMTY Uemachidai Ryuzouji” (Chuo-ku, Osaka-shi), “SAMTY Fukushima EBIE” (Fukushima-ku,
Osaka-shi),“SAMTY

Miyakojima

KERS”(Miyakojima-ku,

Osaka-shi),“SAMTY

Ooimazatonishi”(Higashinari-ku, Osaka-shi), “SAMTY Esaka LIBERTS” (Suita-shi, Osaka), “SAMTY Itami Nishidai”(Itami-shi, Hyogo), “SAMTY Funairi” (Naka-ku, Hiroshima-shi), “SAMTY Nishijin-minami” (Sawara-ku,
Fukuoka-shi), “SAMTY Ohashi” (Minami-ku, Fukuoka-shi), “SAMTY Hakozaki-higashi” (Higashi-ku,
Fukuoka-shi), “SAMTY Shinmachi” (Chuo-ku, Kumamoto-shi), “Orioncourt” (Chuo-ku, Sapporo-shi),“Attract” (Saiwai-ku, Kawasaki-shi), “La stella” (Handa-shi, Aichi), “GRANDUKE Shinsakae” (Naka-ku,
Nagoya-shi), “SANTNORE” (Kuwana-shi, Mie), “S-CREA Shin-Osaka EAST” (Higashiyodogawa-ku,
Osaka-shi), “S-CREA Midosujihonmachi” (Chuo-ku, Osaka-shi), and “EXCELLENT Nakoji” (Amagasaki-shi,
Hyogo). The Company also acquired as a hotel asset, “SMART HOTEL kutchan” (Abuta-gun,

Hokkaido).
As a result, net sales in the Property Leasing Business segment amounted to ¥6,806 million(-7.8% YoY), with operating income of ¥1,907 million (-8.9%).
3

c. Other Business
Other business operations comprise the hotel business, including the holding and operating of“S-PERIA Hotel Nagasaki” (Nagasaki-shi, Nagasaki), and “Center Hotel Tokyo” (Chuo-ku, Tokyo), andthe management of “Center Hotel Osaka” (Chuo-ku, Osaka), “Hotel Sunshine Utsunomiya”(Utsunomiya-shi, Tochigi), “S-PERIA Hotel Hakata” (Hakata-ku, Fukuoka-shi), and “S-PERIA INN
Nihombashihakozaki” (Chuo-ku, Tokyo), as well as a condominium management business andconstruction / renovation business.
As a result, net sales in the Other Business segment amounted to ¥2,329 million (+42.9% YoY),
with operating income of ¥83 million (-65.7%).

(2) Summary of Financial Position for the Subject Period
AssetsTotal assets at the end of the subject fiscal year amounted to ¥162,500 million, a decrease of ¥3,949
million compared to the end of the previous fiscal year. Of this amount, current assets increased¥9,672 million to ¥108,230 million, and non-current assets decreased ¥13,527 million to ¥54,269
million. The main factor for the increase in current assets was a decline of ¥10,887 million in realestate for sale; against an increase of ¥18,652 million in cash and deposits. The main factor for thedecrease in non-current assets was a decline of ¥15,347 million in net property and equipment;
against an increase of ¥1,787 million in investments and other assets.

Liabilities
Total liabilities at the end of the subject fiscal year amounted to ¥100,061 million, a decrease of¥27,027 million compared to the end of the previous fiscal year. Of this amount, current liabilities
decreased ¥19,403 million to ¥19,779 million, and non-current liabilities decreased ¥7,623 million to¥80,282 million. The main factors for the decrease in current liabilities were declines of ¥3,068 million
in notes and accounts payable; ¥10,542 million in short-term borrowings; and ¥9,324 million incurrent portion of long-term debt; against an increase of ¥2,662 million in accrued income taxes. The
main factors for the decrease in non-current liabilities were declines of ¥5,745 million in long-term
debt; and ¥1,319 million in deferred tax liabilities.

Net Assets
Total net assets at the end of the subject fiscal year amounted to ¥62,438 million, an increase of¥23,077 million compared to the end of the previous fiscal year. This was due mainly to increases of¥7,473 million in capital stock and ¥7,666 million in capital surplus from the exercise of stockacquisition rights through a rights offering; and an increase of ¥8,489 million in retained earnings fromthe recording of profit attributable to owners of parent; against a decrease of ¥1,183 million in retained
earnings from dividend payments.

4(3) Summary of Cash Flows for the Subject Period
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 ¥31,828 million (compared to ¥11,583 million in
cash provided in the same period of the previous fiscal year). This was due mainly to ¥12,492 million
in income before income taxes; ¥25,404 million in decrease in inventories; ¥3,086 million in decreasein notes and accounts payable – trade; and ¥3,004 million in income taxes paid.

Cash Flow from Investing Activities
Net cash used in investing activities amounted to ¥744 million (compared to ¥25,676 million in cashused in the same period of the previous fiscal year). This was due mainly to ¥20,005 million inpurchase of property, plant and equipment; and ¥19,899 million in proceeds from sales of property,
plant and equipment.

Cash Flow from Financing Activities
Net cash used in financing activities amounted to ¥11,836 million (compared to ¥18,211 million in
cash provided in the same period of the previous fiscal year). This was due mainly to ¥17,888 million
in increase in short-term loans payable; ¥26,546 million in decrease in short-term loans payable;¥54,353 million in proceeds from long-term loans; ¥71,307 million in repayments of long-term loans;¥14,953 million in proceeds from issuance of common shares; and ¥1,183 million in dividends paid.
(Reference) Cash flow-related indicators
Years ended November 30
2014

2015

2016

2017

2018

Capital ratio (%)

23.3

23.1

23.1

23.4

37.9

Capital ratio at market value (%)

16.3

23.6

17.9

25.1

35.5

Ratio of interest-bearing debt tocash flow (years)

—

—

20.3

9.9

2.8

Interest coverage ratio (times)

—

—

2.9

8.0

22.7

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 to5all debts listed in the Consolidated Balance Sheets on which interest is paid.
4. Figures for the ratio of interest-bearing debt to cash flow and interest coverage ratio are not presented for
FY11/14 and FY11/15 because operating cash flow was negative in those years.

(4) Future Outlook
The real estate industry, of which the Samty Group is a part, is expected to experience continued firm
demand, with stable robust activity in real estate amid rising demand for stores and hotels as a result of
the current low interest rate policy and increase in overseas visitors, and increased profitability due tothe low office vacancy rate in major cities.
Under such conditions, in September 2018 the Samty Group formulated its new medium-term
management plan, the “Samty Toughening Plan.” The three priority measures of this new plan are: 1)
Strengthen and expand fee-based income businesses; 2) Strengthen the development of hotels andoffice buildings; and 3) Strengthen the financial base. The Samty Group will steadily implement thesepriority measures, and work to achieve the plan targets.
For the fiscal year ending November 2019, the Company will strive to maintain stable andsustainable business growth, and is forecasting net sales of ¥86,000 million, with operating income of¥15,000 million, ordinary income of ¥13,000 million, and profit attributable to owners of parent of¥9,000 million.
Full-year forecasts by business segment are as follows.

Years ended November 30
Millions of yen

2017

2018

2019

(Forecast)

Net sales

OperatingincomeNet sales

OperatingincomeNet sales

OperatingincomeReal Estate Business

51,522

10,60075,143

15,54775,10017,300Property Leasing Business

7,386

2,094

6,807

1,907

6,800

2,200

Other Business

1,885

243

2,491

83

4,400

500

Inter-segment net sales
and transfers

(315)

—

(167)

—

(300)

—

—

(2,806)—(3,504)—(5,000)60,47910,131

84,274

14,03386,00015,000Adjustment
Total

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
2017

2018

ASSETS
Current assets:
Cash and deposits

25,85744,510297

928

Real estate for sale

37,05926,181

Real estate for sale under construction

34,45634,886

Goods

0

0

Supplies

58

Receivables

Deferred tax assets

182

326

Other
Allowance for doubtful accounts

700
(1)

1,389
(1)

98,558108,230

Total current assets
Non-current assets:
Property and equipment:
Buildings and structures

34,24822,350

Accumulated depreciation(3,514)(2,279)Buildings and structures net

30,73420,071

3,819

3,186

(31)

(407)

Buildings in trust
Accumulated depreciation

3,787

2,779

Land

Buildings in trust net

23,35520,936

Land in trust

3,797

2,426

657

745

Accumulated depreciation

(445)

(419)

Other net

211

326

61,88746,539Other

Net property and equipment
Intangible assets:
Goodwill

82

52

Other intangible assets

57

120

140

172

2,558

3,887

310

367

2,936

3,355

(36)

(54)

5,769

7,557

67,79754,269

93

—

93

—

166,449

162,500

Total intangible assets
Investments and other assets:
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total Investments and other assets
Total non-current assets
Deferred assets:
Inauguration expenses
Total deferred tax assets
Total assets

7Millions of yen
2017

2018

LIABILITIESCurrent liabilities:
Notes and accounts payable

3,658

589

Short-term borrowings

11,883

1,340

Current portion of long-term debt

18,795

9,470

Accrued income taxes

1,933

4,595

Deferred tax liabilities

29

—

2,883

3,782

39,182

19,779Long-term debt

84,10878,362

Deferred tax liabilities

1,319

—

147

156

1,710

1,035

Construction assistance fund

593

538

Other

26

188

87,90680,282

127,088

100,061

Capital stock

8,461

15,935

Capital surplus

8,575

16,242Retained earnings

23,251

30,556

Treasury stocks at cost

(1,382)(1,330)38,906

61,404

111

129

111

129

Stock acquisition rights

343

390

Non-controlling interests—

514

39,36062,438

166,449

162,500

Other
Total current liabilities
Non-current liabilities:

Liabilities for retirement benefits
Guarantee deposits

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

Total shareholders’ equity
Accumulated other comprehensive income:Unrealized gain on available for-sale securities
Total accumulated other comprehensive income

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
2017

2018

Net sales

60,47984,274

Cost of sales

44,73363,170Gross profit

15,745

21,104

Selling, general and administrative expenses

5,614

7,070

Operating income

10,131

14,033

Interest income

42

Dividends

11

11

Refund of premium for cancelled insurance

20

29

Consumption tax difference

7

—

Other

20

7

64

50

Interest expenses

1,471

1,382

Commission fee

214

559

Other

48

505

Total non-operating expenses

1,734

2,448

Ordinary income

8,461

11,635Gain on sales of non-current assets

405

909

Gain on sales of investment securities

—

37

Other

—

33

405

980

208

100

Loss on retirement of non-current assets

10Loss on impairment of long-lived assets

726

22

0

0

Total extraordinary losses

937

123

Income before income taxes

7,930

12,492

Income taxes-current

2,587

5,396

Income taxes-deferred(318)(1,558)

Total income taxes

2,268

3,838

5,661

8,654

—

165

5,661

8,489

Non-operating income:

Total non-operating income
Non-operating expenses:

Extraordinary income:

Total extraordinary income
Extraordinary loss:
Loss on sales of non-current assets

Other

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

9Consolidated Statements of Comprehensive Income
Years ended November 30
Millions of yen
2017
Net income

2018
5,661

8,654

143

18

143

18

5,804

8,672

5,804

8,507

—

165

Other comprehensive income:Unrealized gain on available for-sale securities
Total 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 Net Assets
Year ended November 30, 2017 (December 1, 2016 to November 30, 2017)
Millions of yen
Shareholders’ equity
Capital stock
Balance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Conversion of
convertible bond-typebonds with subscription
rights to shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Retainedearnings

Capital surplus

Treasury Stock,at Cost18,372(1,382)

Total
shareholders’equity

7,739

7,853

32,583

4

4

9

717

717

1,435
(782)

(782)

5,661

5,661
(0)

(0)

—
—

722

722

4,878

(0)

6,323

8,461

8,575

23,251(1,382)38,906

Millions of yen
Accumulated other comprehensive
incomeAccumulated
Unrealized gainother
on available
comprehensive
for-sale securities
incomeBalance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Conversion of
convertible bond-typebonds with subscription
rights to shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

(32)

(32)

Subscription
Rights toShares295

Non-controllinginterests

Total Net Assets—

32,847

9
1,435
(782)
5,661
(0)

—
—

143

143

47

—

190

143

143

47

—

6,513

111

111

343

—

39,36011

Year ended November 30, 2018 (December 1, 2017 to November 30, 2018)
Millions of yen
Shareholders’ equity
Capital stock
Balance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Conversion of
convertible bond-typebonds with subscription
rights to shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Capital surplus

8,461

8,575

7,473

7,473

Retainedearnings

Treasury Stock,at Cost23,251(1,382)

Total
shareholders’equity38,906

14,947—(1,183)(1,183)

8,489

8,489

29

(3)

(3)

54

84

163

163

7,473

7,666

7,305

51

22,497

15,935

16,24230,556(1,330)61,404

Millions of yen
Accumulated other comprehensive
incomeAccumulated
Unrealized gainother
on available
comprehensive
for-sale securities
incomeBalance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Conversion of
convertible bond-typebonds with subscription
rights to shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

111

111

Subscription
Rights toShares343

Non-controllinginterests

Total Net Assets—

39,36014,947—(1,183)
8,489
(3)
84

163

18

18

46

514

580

18

18

46

514

23,077

129

129

390

514

62,43812

(4) Consolidated Statements of Cash Flows
Years ended November 30
Millions of yen
2017

2018

Operating activities:
Income before income taxes
Depreciation
Loss on impairment of long-lived assets
Amortization of goodwill

7,930
1,587

12,492
1,285

726

22

8

24

Increase (Decrease) in net defined benefit liability

119Interest and dividends income

(16)

(14)

Interest expenses

1,471

1,382

Commission fee

214

559

Loss (gain) on sales of property, plant and equipment

(197)

(809)

Decrease (increase) in notes and accounts receivable - trade

350

(604)

2,764

25,404742(3,086)

Increase (decrease) in accrued consumption taxes

336

1,254

Increase (decrease) in lease and guarantee deposits received

(332)

(674)

Other-net(138)(1,023)

Subtotal

15,45936,222

Decrease (Increase) in inventories
Increase (decrease) in notes and accounts payable - trade

Decrease in interest and dividends receivable

1614

Decrease in interest payable(1,444)(1,404)

Income taxes (paid) refunded(2,447)(3,004)

11,58331,828—(726)

Net cash provided by (used in) operating activities
Investing activities:
Payments into time deposits

50

1,474

(29,403)
3,956(20,005)
19,899Purchase of intangible assets

(13)

(83)

Purchase of investment securities

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(525)(2,047)

Proceeds from sale of investment securities—

251

Proceeds from redemption of investment securities

318

512

(7)

(7)

Payments for investments in capital
Collection of investments in capital

2

1

Payments of construction assistance fund receivables

(55)

(55)

Other-net—

42(25,676)(744)

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

Millions of yen
2017

2018

Financing activities:
Increase in short-term loans payable

25,753

17,888Decrease in short-term loans payable(24,148)(26,546)

Proceeds from long-term loans

50,18954,353

Repayments of long-term loans(32,575)(71,307)

Proceeds from issuance of common shares

6

14,953Purchase of treasury shares
Proceeds from changes in ownership interests in subsidiaries
that do not result in change in scope of consolidation

(0)

(3)

—

585

Dividends paid

(783)

(1,183)

Other-net

(231)

(576)

Net cash provided by (used in) financing activities

18,211(11,836)

Net increase (decrease) in cash and cash equivalents

4,118

19,246

Cash and cash equivalents, beginning of the period

20,71524,833

Cash and cash equivalents, end of the period

24,83344,08014

(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: 12
Names of consolidated subsidiaries
Hikone SC Ltd.
Suntoa Co., Ltd.
Specialist Support System Co., Ltd.
Samty Property Management Co., Ltd.
Samty Asset Management Co., Ltd.
Ambient Garden Moriyama LLC
Ambient Garden Moriyama General Incorporated Association
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(2) Names of material unconsolidated subsidiaries
S Hotel Operations Nagoya LLC
S Hotel Operations Kyoto Tambaguchi LLC
SI Kaihatsu LLC
S Hotel Operations General Incorporated Association
Reason for exclusion from the scope of consolidation
The total assets, net sales, profit, retained earnings, and other figures for the four unconsolidated
subsidiaries are all small amounts, and do not have a material effect on the consolidated balance
sheets.
2. Items relating to the application of the equity method
There are no equity-method affiliates.
3. Items relating to the fiscal year of consolidated subsidiaries
The balance sheet date of all consolidated subsidiaries is the same as the consolidated balance
sheet date.
4. Items related to accounting standards(1) Valuation standards and valuation methods for material assets(A) Securities
Available-for-sale securities
15

Securities with current market value
Current market value method based on the market price on the balance sheet date.
(Valuation difference is fully and directly recognized within net assets. Cost of sale is calculatedusing a moving average.)
Securities without current market value
The Company applies a cost method using a moving average.
(B) 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

3–47 years

Trust building

31–41 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) Long-term prepaid expenses
The Company applies the straight-line method.
(D) 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.
(3) 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.
(4) 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
16

System.
(5) Method for amortization of goodwill and amortization period
Amortization of goodwill is carried out using the straight-line method over the period in which the
goodwill is deemed to be effective.
Suntoa Co., Ltd., and Samty Property Management Co., Ltd.
20 years(6) Scope of funds presented in the Consolidated Statements of Cash Flows
Funds presented comprise cash on hand, demand deposits, and short-term, easily convertible,
highly liquid investments involving little risk of price fluctuation, which have maturities of threemonths or less from the acquisition date.
(7) Other material items relating to the preparation of the consolidated financial statements
Accounting treatment of consumption tax
The Company applies the net-of-tax method.
Non-deductible consumption tax, etc., relating to fixed assets is recognized as a long-term
prepaid expense, and amortized using the straight-line method over a five-year period.

17

(Change in Presentation Methods)(Consolidated Statement of Income)Previously, when non-current assets bundled as land and building were sold, and gains or losses
on sales were incurred for each asset class, “gain on sales of non-current assets” were recorded
in extraordinary income, and “loss on sales of non-current assets” in extraordinary loss. However,to more accurately reflect the reality of the transaction, from the subject fiscal year this waschanged to recording the total as “loss (gain) on sales.”To reflect this change in presentation method, as a result of the recombination of theconsolidated financial statements for the previous fiscal year, “gain on sales of non-current assets”
recorded as “extraordinary income” in the Consolidated Statement of Income decreased by ¥1,207
million, and “loss on sales of non-current assets” recorded as “extraordinary loss” decreased by
the same amount.

(Additional Information)(Change of Holding Objective)
Previous fiscal year (December 1, 2017–November 30, 2018)
Owing to changes in holding objective, ¥14,953 million was transferred from tangible fixed
assets to inventory.

18

(Related to Consolidated Statement of Income)Impairment Loss
The Samty Group recorded impairment losses on the following asset groups during the subject fiscal
year.
AmountApplication

Type

Location
Millions of yen

Real estate for lease (Residential)
Other

Structures and land
Goodwill

Handa-shi, Aichi

16

Yodogawa-ku, Osaka-shi

5

The Samty Group treats individual real estate properties for leasing as an asset grouping unit. Of
note, certain consolidated subsidiaries are treated as an asset grouping unit.
The real estate properties for leasing in the above chart are expected to incur impairment
losses as a result of the sales policy decision. Accordingly, the Company has reduced the bookvalue to a recoverable amount, and recorded the difference as impairment in extraordinary losses.
Of note, the recoverable value is determined from the net realizable value, and calculated from theanticipated sale amount.
Also, the goodwill in the above chart is for the recording as an extraordinary loss of an
undepreciated balance as an impairment loss in the Company’s consolidated subsidiary Specialist
Support System Co., Ltd., due to revisions to the business plan anticipated at the time ofacquisition.

(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
2017

2018

Cash and deposits

25,85744,510Time deposits with maturities exceeding three months(1,023)(241)

Trust deposits with use restrictions

—

(153)

Deposits with withdrawal restrictions

—

(35)

24,83344,080Cash and cash equivalents19

(Real Estate for Lease, etc.)
The Samty Group owns condominiums and office buildings (including land) for lease in the Kansai
region centering on Osaka, the Kyushu region centering on Fukuoka Prefecture, and the Tokai region
centering on Aichi Prefecture, as well as Hokkaido, Hiroshima Prefecture, the Northern Kanto area, andthe Tokyo metropolitan area. In the fiscal year ended November 30, 2017, lease income from real estate
for lease was ¥1,495 million (leasing revenues are presented within net sales and major costs of leasingare presented within cost of sales and selling, general and administrative expenses), income from realestate sales was ¥152 million (gain on real estate sales is presented within extraordinary income andloss on real estate sales is presented within extraordinary loss), and impairment loss was ¥726 million(presented within extraordinary loss). In the fiscal year ended November 30, 2018, lease income fromreal estate for lease was ¥1,378 million (leasing revenues are presented within net sales and major
costs of leasing are presented within cost of sales and selling, general and administrative expenses),
income from real estate sales was ¥809 million (gain on real estate sales is presented within
extraordinary income and loss on real estate sales is presented within extraordinary loss), andimpairment loss was ¥16 million (presented within extraordinary loss). For this real estate for lease, theamounts presented on the Consolidated Balance Sheets, changes in value during each respective
period, and fair market values were as presented below.

At November 30
Millions of yen
2017
Amount presented on theConsolidated Balance
Sheets

2018

Beginning of period

48,89759,551

Change during period

10,654(13,842)

End of period

59,55145,708

68,11054,145

Fair market value at end of period

Notes:
1. The amount presented on the Consolidated Balance Sheets is the acquisition cost price less theaccumulated depreciation.
2. Within change during period, during the previous fiscal year, the main increase was related to new
acquisitions of fixed assets (¥26,876 million). The main decreases were due to sales of real estate(¥3,663 million), impairment loss (¥726 million), and transfer to inventory owing to changes in holding
objective (¥11,863 million). During the subject fiscal year, the main increase was related to new
acquisitions of fixed assets (¥18,995 million). The main decreases were due to sales of real estate(¥19,087 million), impairment loss (¥16 million), and transfer to inventory owing to changes in holding
objective (¥14,930 million).
3. The fair market values at end of the fiscal years ended November 30, 2017 and 2018 are mainly
calculated by the Company based on Japanese Real Estate Appraisal Standards (including items
adjusted using indices, etc.).

20

(Segment Information)
1. Outline of reportable segments
The Samty Group’s reportable segments are those for which separate financial information isavailable within the Company’s units of classification. To facilitate decisions on the allocation ofmanagement resources by the Board of Directors and evaluation of operating performance, thereportable segments are subject to regular review. The Company’s reportable segments are the Real
Estate business, Real Estate Leasing business, and Other business.
The Real Estate Business involves the planning, development, refurbishment, and sale ofrevenue-generating real estate, planning, the development and sale of condominiums for investment
purposes, and the management of and investment in real estate investment funds. The Real Estate
Leasing business involves the leasing and management of condominiums, office buildings andcommercial facilities, etc. Other business includes the ownership and management of hotels, themanagement of condominiums, and construction and refurbishment operations.
2. Method of calculating reportable segment sales, profit and loss, assets, liabilities 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,” excluding inventory
appraisal standards.
With regard to inventory appraisal, the Company appraises the amount prior to write-down
based on a decline in profitability. Reportable segment profit is based on operating income.
Intersegment sales and transfers are recorded based on market prices.
3. Sales, profit and loss, assets, liabilities and other items relating to each reportable segment
Previous fiscal year (December 1, 2016–November 30, 2017)
Years ended November 30
Millions of yen

Adjustment(Note 1, 2, 3)

AmountRecorded on
Consolidated
IncomeStatement

60,479―60,479

254

315

(315)

―

7,386

1,885

60,794(315)

60,47910,6002,094

243

12,938(2,806)

10,13156,87261,016

24,734

142,623

23,826

166,449

Depreciation expense

10

1,496

39

1,545

42

1,587

Increase in tangible fixed
assets and intangible fixed
assets6

28,273

1,193

29,47381

29,554

Reportable Segment
Real EstateBusiness

Property
Leasing
Business

Other
Business

Net sales from third parties

51,467

7,380

1,630

Inter-segment net sales andtransfers

54

5

Total

51,522

Operating income
Segment assets

Total

Net sales:

Other Items

Notes
1. Adjustment to segment profit of (¥2,806 million) mainly comprises intersegment eliminations of (¥47 million), andunallocated corporate expenses of (¥2,759 million). Corporate expenses are general and administrative expenses
not attributed to any reportable segment.

21

2. Adjustment to segment assets of ¥23,826 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 income is adjusted to the operating income on the consolidated income statement.

Fiscal year under review (December 1, 2017–November 30, 2018)
Years ended November 30
Millions of yen

Adjustment(Note 1, 2, 3)

AmountRecorded on
Consolidated
IncomeStatement

84,274―84,274

162

167

(167)

―

6,807

2,491

84,442(167)

84,274

15,547

1,907

83

17,537(3,504)

14,03350,72845,87624,439121,044

41,455

162,500

Depreciation expense

10

1,163

61

1,235

47

1,282

Increase in tangible fixed
assets and intangible fixed
assets2

19,369478

19,850136

19,987

Reportable Segment
Real EstateBusiness

Property
Leasing
Business

Other
Business

Net sales from third parties

75,138

6,806

2,329

Inter-segment net sales andtransfers

4

1

Total

75,143Operating income
Segment assets

Total

Net sales:

Other Items

Notes
1. Adjustment to segment profit of (¥3,504 million) mainly comprises intersegment eliminations of (¥60 million), andunallocated corporate expenses of (¥3,443 million). Corporate expenses are general and administrative expenses
not attributed to any reportable segment.
2. Adjustment to segment assets of ¥41,455 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 income is adjusted to the operating income on the consolidated income statement.

4. Major items within differences between the total of reportable segments and the amounts presented in
the consolidated financial statements and other relevant differences (items relating to difference
adjustment)(Material impairment loss related to fixed assets)
Fiscal year under review (December 1, 2017–November 30, 2018)
No applicable items

22

(Per Share Information)
2017

2018

Net assets per share (Yen)

1,387.04

1,616.59

Net income per share (Yen)

209.71283.89Diluted net income per share (Yen)

194.88273.26(Note) 1. The Company, on the shareholder determination date of September 30, 2018, issued stock acquisitionrights without contribution (partial commitment-type rights offering / allotment of listing-type stockacquisition rights without contribution) to shareholders, and payment for the subject stock acquisitionrights was completed. Because the amount paid based on the rights offering is lower than the market
value, net assets per share and net income per share have been calculated assuming that payment
based on the subject rights offering for the portion corresponding to the stock split was made at the
beginning of the previous fiscal year.
2. Bases for calculation of net assets per share
2017

2018

Total net assets(Millions of yen)

39,36062,438Amount subtracted from total net assets(Millions of yen)

343

905

Stock options(Millions of yen)

343

390

Non-controlling interests(Millions of yen)―

514

39,01761,53328,130,035

38,063,788

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

3. Bases for calculation of net income per share and diluted net income per share
2017

2018

Net income per share
Profit attributable to owners of parent(Millions of yen)

5,661

8,489

Amount not attributable to common(Millions of yen)stock shareholders

―

―

―

―

5,661

8,489

26,995,738

29,902,396

Preferred dividends(Millions of yen)

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

Additional shares of common stock(Shares)

2,054,241

1,163,608

Convertible bonds(Shares)

1,110,454―

Stock options(Shares)943,787

1,163,608――

Outline of residual shares not included in the calculation ofdiluted net income per share owing to no dilutive effect23

(Significant Events after the Reporting Period)
Not applicable.

END24