January 14, 2022

Flash Report (Consolidated Basis)
Results for the year ended November 30, 2021
(Based on Japanese GAAP)

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

URL:

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

Company name:

Representative
Title:

Representative Director and President

Name: Yasuhiro Ogawa
Contact Person
Title:

Head of IR Office, Corporate Planning Department

Name: Izumi Jozuka

Telephone: +81-3-5224-3139

Date of Annual Shareholders Meeting (Scheduled): February 24, 2022
Start of dividend payments (Planned):

February 25, 2022

Submission of securities report (Planned):

February 25, 2022

Supplemental explanatory material prepared:

Yes

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 2021 (FY11/21)(December 1, 2020 to November 30, 2021)(1) Consolidated Operating Results
Years ended November 30

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

Net sales
Millions of yen

Operating income%

Millions of yen

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen

%

2021

90,460(10.5)

9,461(45.5)

8,105(46.8)

10,012

(5.7)

2020

101,120

18.2

17,355

12.6

15,247

15.6

10,6159.0

Note: Comprehensive Income: Year ended November 30, 2021: ¥11,125 million, 9.1%,
Year ended November 30, 2020: ¥10,199 million, (0.7%)

Net income per
share

Net Income pershare after
adjustment forresidual shares

Return on equity

Ordinary incometo-total assets
ratio

Operating margin

Yen

Yen

%

%

%

2021

242.52214.32

11.7

2.7

10.5

2020

261.23227.88

14.3

6.5

17.2

(Reference) Equity in earnings (losses) of affiliated companies: Year ended November 30, 2021: ¥ 839 million,
Year ended November 30, 2020: ¥ ― million

(2) Consolidated Financial Condition
At November 30
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

2021

349,194

103,02827.0

2,029.28

2020

250,864

77,69930.7

1,907.51(Reference) Total shareholders’ equity: November 30, 2021: ¥94,296 million, November 30, 2020: ¥77,028 million(3) Consolidated Cash Flows
Years ended November 30
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancial activities

Cash and cash equivalents
at end of year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2021(6,728)(52,348)

57,65840,5892020

11,958(31,815)

17,48841,724

2. Dividends
Years ended/ending November 30
Total amountof dividends(for the entire
fiscal year)

Payoutratio

Dividendstonet assets
ratioMillions of yen%%

Dividends per share
Recorddate

Feb. 28

May 31

Aug. 31

Year-end

Total

Yen

Yen

Yen

Yen

Yen

2020

―

38.00

―

44.00

82.00

3,310

31.4

4.5

2021

―

39.00

―

51.00

90.00

3,937

―

―

2022
(Forecast)

―

39.00

―

51.00

90.00

41.0

3. Forecasts for Fiscal Year Ending November 30, 2022
Percentages indicate year-on-year increase/ (decrease).
Net sales

Fiscal year

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

140,000

54.8

18,00090.2

15,00085.1

Profit attributable toowners of parent

Fiscal year

Ordinary income

Net income per share

Millions of yen%

Yen

10,2001.9

219.50Notes(1) Significant changes in subsidiaries during the subject fiscal year: Yes(Changes in specified subsidiaries related to a change in the scope of consolidation)
Additions: 2 (S-VIN VIETNAM REAL ESTAGE TRADING JOINT STOCK CAMPANY / R&K Limited)
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
46,468,085
outstanding (including treasury
November 30,
sharesstock)
2021
Year ended
November 30,
2021
Year ended
November 30,
20212) Number of treasury stock3) Average number of shares
outstanding for each period(cumulative term)

201
shares41,286,203
sharesYear ended
November 30,
2020
Year ended
November 30,
2020
Year ended
November 30,
2020

41,020,140
shares638,412shares40,637,582
shares(Reference) FLASH REPORT (NON-CONSOLIDATED BASIS)
1. Non-Consolidated Results for the Fiscal Year Ended November 2021 (FY11/21)(December 1, 2020 to November 30, 2021)(1) Non-Consolidated Operating Results
Years ended November 30

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

Net sales
Millions of yen

Operating income%

Millions of yen

Ordinary income%

Millions of yen

Net income%

Millions of yen

%

2021

84,161(12.9)

9,263(43.8)

6,255(56.5)

4,086(59.1)

2020

96,62919.8

16,492

11.4

14,369

(1.8)

9,980

(12.7)Net income per share

Net Income per shareafter adjustment forresidual shares

Yen

Yen

2021

98.99

87.48

2020

245.60214.25

(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

2021

303,853

85,64928.2

1,843.21

2020

241,519

74,38530.8

1,842.07(Reference) Total shareholders’ equity: November 30, 2021: ¥85,649 million, November 30, 2020: ¥74,385 million* This flash report is not subject to auditing by a certified public accountant or audit firm.
* Explanation regarding the appropriate use of results forecasts, and other items of note
 Results forecasts and other forward-looking statements contained in this report are based on information available to
the Company at the time of disclosure, and certain assumptions the Company considers reasonable. Actual results
may vary considerably due to a variety of factors.
 The Company plans to hold an explanatory meeting for institutional investors and analysts on February 1, 2022.

Table of Contents for Accompanying Material
1. Summary of Business Results .......................................................................................................... 2(1) Summary of Business Results for the Subject Period ...................................................................... 2(2) Summary of Financial Position for the Subject Period ..................................................................... 4(3) Summary of Cash Flows for the Subject Period ............................................................................... 4(4) Future Outlook .................................................................................................................................. 6
2. Basic Stance on Selection of Accounting Standards ....................................................................... 6
3. Consolidated Financial Statements and Main Explanatory Notes....................................................... 7(1) Consolidated Balance Sheets ........................................................................................................... 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 9(3) Consolidated Statements of Changes in Net Assets ...................................................................... 11(4) Consolidated Statements of Cash Flows ........................................................................................ 13(5) Notes Relating to the Consolidated Financial Statements ............................................................. 15(Notes Relating to the Assumption of a Going Concern) ................................................................. 15(Material Items Fundamental to the Preparation of Consolidated Financial Statements) ...............15(Change in Accounting Policy).......................................................................................................... 18(Change in Presentation Methods) ................................................................................................... 18(Additional Information) ..................................................................................................................... 19(Related to Consolidated Statement of Income) .............................................................................. 19(Notes Related to the Consolidated Statements of Cash Flows) ..................................................... 19(Segment Information) ...................................................................................................................... 20(Per Share Information) .................................................................................................................... 23(Significant Events after the Reporting Period) ................................................................................ 23

1

1. Summary of Business Results(1) Summary of Business Results for the Subject Period
During the subject fiscal year, the Japanese economy continued to face an uncertain outlook as a resultof the spread of coronavirus infections and outbreaks of coronavirus variants as well as soaring energy
resource prices. Including the declaration of emergency that had been issued and applied from January
2021 and quasi-emergency measures to prevent the spread of infections, priority measures were liftedat the end of September 2021. In addition, the vaccination rate stood at around 80%, and the sense of
expectation for a normalization of socio-economic activities was raised by the third round of vaccinations
having been started. However, infections have spread again due to the highly contagious omicron
variant, and the timing of when the coronavirus pandemic would subside remained unclear.
In the real estate industry, of which the Samty Group is a part, with regard to rental apartments,
occupancy rates, rent levels, and property sales prices remained favorable, because they are not easily
affected by economic trends or the effects of the COVID-19 pandemic. Also, in the hotel industry, theflow of people that had been stagnant was slowly returning to normal and on a recovery trend due tothe lifting of the state of emergency.
Under such conditions, the Group completed its S-RESIDENCE series of rental condominiums,
which comprises approximately 2,600 units in 41 buildings, and proceeded to build a stable profit base.
In addition, believing that the hotel industry is a field where significant growth can be expected in theyears to come, we predict that consumption on accommodation and tourism will gradually increase andhave thus implemented initiatives in anticipation of the post-COVID era. As a hotel investment initiativein the subject fiscal year, in May 2021 we entered into a capital and business alliance with WealthManagement, Inc. (WM), which is listed on the Second Section of the Tokyo Stock Exchange, for joint
investments in a hotel REIT and hotel development funds. From the subject fiscal year, WM has been
an equity-method affiliate. In October, we decided to conduct same-boat investment as a sponsor of
Samty Japan Hotel REIT, Inc., a hotel-focused real estate investment corporation, and are currently
advancing preparations for its listing on the Tokyo Stock Exchange. In November, the special-purpose
company in the hotel development project with the tentative name Shangri-La Kyoto Nijojo was madean equity-method affiliate.
As a result, for the subject fiscal year, net sales amounted to ¥90.4 billion (down 10.5% from theprevious fiscal year), with operating income of ¥9.4 billion (down 45.5%), ordinary income of ¥8.1 billion(down 46.8%), and profit attributable to owners of parent of ¥10.0 billion (down 5.7%).
Results by Business Segment
The classifications of the reportable segments have been changed from the subject fiscal year, andcomparisons with and analyses of the previous fiscal years are based on the changed classifications.
a. Real Estate Development Business
The Real Estate Development Business engages in the planning, development, and sales of the Samty
brand S-RESIDENCE series.
In addition to having sold 19 properties (total sales price of around ¥34.7 billion), in the subject

2

fiscal year we sold five properties of real estate for sale located mainly in major cities across the nation
to Samty Residential Investment Corporation (total sales price of around ¥4.2 billion). The Company
also sold Agora Kyoto Shijo (Shimogyo-ku, Kyoto) and Agora Kyoto Karasuma (Shimogyo-ku, Kyoto)as hotel assets.
As a result, net sales in the Real Estate Development Business segment amounted to ¥38.8 billion(down 33.3% from the previous fiscal year), with operating income of ¥9.8 billion (down 33.3%).
b. Real Estate Solution Business
The Real Estate Solution Business engages in the acquisition, renovation, and sales of profitable realestate. In addition to having sold office buildings and other properties, in the subject fiscal year theCompany sold 21 rental apartment properties to Samty Residential Investment Corporation (total sales
price of around ¥23.4 billion).
As a result, net sales in the Real Estate Solution Business segment amounted to ¥37.1 billion (up22.7% from the previous fiscal year), with operating income of ¥3.0 billion (down 17.4%).
c. Overseas Business
The Overseas Business engages in investments and housing development business overseas. In thesubject fiscal year, we commenced sales of housing development lots in a smart city development
project jointly operated with VIN HOMES JOINT STOCK COMPANY, Vietnam’s largest real estatedeveloper, in Hanoi, Vietnam.
As a result, net sales in the Overseas Business segment amounted to ¥0.5 billion (up 19.1% fromthe previous fiscal year), with operating income of ¥0.2 billion (down 22.8%).
d. Real Estate Leasing Business
The Real Estate Leasing Business engages in the leasing of residential apartments, office buildings,
and commercial facilities. In addition to steadily conducting property acquisitions that resulted in theacquisition of 49 profitable properties totaling around ¥42.1 billion in the subject fiscal year, theCompany completed development of 43 buildings.
As a result, net sales in the Real Estate Leasing Business segment amounted to ¥7.9 billion (up2.1% from the previous fiscal year), with operating income of ¥3.7 billion (down 8.0%).
e. Hotel Business
The Hotel Business engages in the leasing and operating of hotels. In the subject fiscal year, five hotels
were opened or acquired, including S-PERIA HOTEL Fukuoka Nakasu (Hakata-ku, Fukuoka-shi) and
Aloft Osaka Dojima (Kita-ku, Osaka-shi), and 18 hotels held and operated. The hotels held and operated
by the Group are also affected by the COVID pandemic, but the numbers of newly infected people
subsided at a low level, and we anticipated a recovery in demand going forward due to the revitalizationof the previously stagnant flow of people.
As a result, net sales in the Hotel Business segment amounted to ¥2.6 billion (up 32.5% from theprevious fiscal year), with an operating loss of ¥2.5 billion (compared to operating loss of ¥0.6 billion in
the same period of the previous fiscal year).
3

f. Real Estate Management Business
The Real Estate Management Business manages residential apartments, office buildings, andcommercial facilities.
As a result, net sales in the Real Estate Management Business segment amounted to ¥3.2 billion(up 41.4% from the previous fiscal year), with operating income of ¥0.5 billion (up 78.6%).

(2) Summary of Financial Position for the Subject Period
AssetsTotal assets at the end of the subject fiscal year amounted to ¥349.1 billion, an increase of ¥98.3
billion compared with the end of the previous fiscal year. Intending to maximize income gain in
accordance with the Samty Toughening Plan (Post-COVID Version) Medium-Term Management Planannounced in January 2021, the Group has a policy of holding completed properties for a certain
period of time. In addition, properties such as Meiji-dori Business Center Main Building, Annex(Hakata-ku, Fukuoka-shi), S-RESIDENCE Temma Gracis (Kita-ku, Osaka-shi), and S-RESIDENCE
Maruyama Omotesando (Chuo-ku, Sapporo-shi) have been successfully acquired and progress madetoward completion. As a result, real estate for sale, real estate for sale under construction, and net
property and equipment (income properties, etc.) increased by ¥97.5 billion, and cash and deposits
decreased by ¥0.8 billion.
Liabilities
Total liabilities at the end of the subject fiscal year amounted to ¥246.1 billion, an increase of ¥73
billion compared with the end of the previous fiscal year. The main factors contributing to theincrease/decrease were an increase of ¥62.2 billion in borrowings accompanying the acquisition of
more than 100 properties (combined total of sites for development and of income properties) and theissuance of ¥12 billion of bonds with share acquisition rights.
Net Assets
Total net assets at the end of the subject fiscal year amounted to ¥103 billion, an increase of ¥25.3
billion compared with the end of the previous fiscal year. The main contributory factors for theincrease/decrease were: an increase in capital and capital surplus of ¥8.8 billion from the conversionof the 1st Unsecured Convertible Bonds with Stock Acquisition Rights; a decrease in treasury stock(at cost) of ¥1.2 billion; retained earnings of ¥10 billion from the posting of profit attributable to ownersof parent; and an increase of ¥8 billion in non-controlling interests due to two companies—S-VIN
VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY (a company engaged in a smart city,
for-sale housing project in Hanoi, Vietnam) and R&K Limited (a special purpose company that holds
Aloft Osaka Dojima)—having been made consolidated subsidiaries.
(3) Summary of Cash Flows for the Subject Period
As a result of a decrease of ¥6.7 billion from operating activities, a decrease of ¥52.3 billion from4

investing activities, an increase of ¥57.6 billion from financing activities, and other factors, cash andcash equivalents (“cash”) at the end of the subject fiscal year decreased by ¥1.2 billion to ¥40.5 billion
compared with the end of the previous fiscal year.
The main factors affecting cash flows during the subject fiscal year are as follows.
Cash Flow from Operating Activities
Net cash provided by operating activities amounted to ¥6.7 billion (compared to ¥11.9 billion in cashused in the previous fiscal year). This was due mainly to ¥12.2 billion in profit before income taxes;¥2.5 billion in interest paid; and ¥4.6 billion in income taxes paid. Of these, the increase in income
before income taxes was due to the progress made with sales of favorable residences and officebuildings developed in major regional cities amid the COVID pandemic.
Cash Flow from Investing Activities
Net cash used in investing activities amounted to ¥52.3 billion (compared to ¥31.8 billion in cash usedin the previous fiscal year). This was due mainly to ¥34.4 billion in purchase of property, plant andequipment; and ¥5.1 billion in purchase of investment securities.
Cash Flow from Financing Activities
Net cash provided by financing activities amounted to ¥57.6 billion (compared to ¥17.4 billion in cash
provided in the previous fiscal year). This was due mainly to ¥32.6 billion in proceeds from short-termborrowings; ¥37.2 billion in repayments of short-term borrowings; ¥113.7 billion in proceeds from longterm borrowings; ¥62.8 billion in repayments of long-term borrowings; ¥4.0 billion in proceeds fromissuance of bonds; and ¥3.3 billion in dividends paid.
(Reference) Cash flow-related indicators
Years ended November 30
2017

2018

2019

2020

2021

Capital ratio (%)

23.4

37.9

32.5

30.7

27.0

Capital ratio at market value (%)

25.1

35.5

39.1

26.6

30.4

Ratio of interest-bearing debt tocash flow (years)

9.9

2.8

29.6

12.8

—

Interest coverage ratio (times)

8.0

22.7

3.1

6.0

—

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

5(4) Future Outlook
The future outlook remains uncertain as infections are once again on the rise in Japan and overseas
due to COVID variants. On the other hand, the vaccination rate in Japan stands at about 80%, andthird vaccinations are starting to be administered, so the normalization of socio-economic activities is
expected going forward.
Under such an external environment, as the future outlook of the Group we have calculated theforecast values on the assumption that socio-economic activities will gradually recover due to the risingratio of people who will have received a third injection of vaccine and the development of new
therapeutic agents.
In the Real Estate Development Business and Real Estate Solution Business, we will promote
the development and acquisition of properties on an ongoing basis.
In the Overseas Business, concerning residential sales in Hanoi, Vietnam, we will promotebusiness while paying close attention to the COVID situation in that country.
In the Real Estate Leasing Business, we will continue to hold completed properties for a certain
period of time in accordance with the Samty Toughening Plan (Post-COVID Version) Medium-Term
Management Plan with the aim of maximizing income gain.
With regard the Hotel Business, although the impact of COVID infections remains uncertain going
forward, we will proceed with preparations for listing Samty Japan Hotel REIT, Inc. on the Tokyo Stock
Exchange.
In the case of the Real Estate Management Business, we aim to increase fee income byincreasing the balance of assets under management and the number of managed units.
As a result, for the fiscal year ending November 2022 we plan to achieve sales of ¥140.0 billion,
operating income of ¥18.0 billion, ordinary income of ¥15.0 billion, and profit attributable to owners ofparent of ¥10.2 billion.
Based on the future outlook, we will pay an interim dividend of ¥39 per share and a year-end
dividend of ¥51.

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
2020

2021

ASSETS
Current assets:
Cash and deposits

42,511

41,646

Receivables

1,395

1,858

Real estate for sale

58,265

107,875

Real estate for sale under construction

42,512

71,075

Goods

1

0

Supplies

12

23

13,915
(5)

2,618
(3)

158,608

225,094

20,22526,267

Other
Allowance for doubtful accounts
Total current assets
Non-current assets:
Property and equipment:
Buildings and structures
Accumulated depreciation(2,390)(2,402)

Buildings and structures net

17,83523,865

4,390

3,262

Buildings in trust
Accumulated depreciation

(700)

(119)

Buildings in trust net

3,689

3,142

Land

42,482

54,925Land in trust

3,322

2,314

Other

5,124

7,406

Accumulated depreciation

(515)

(349)

Other net

4,608

7,057

71,93891,306

Goodwill

10

9Other intangible assets

133

417

143

426

15,83527,921

Net property and equipment
Intangible assets:

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

693

545

3,711

3,901

(66)

(53)

20,17332,31592,255

124,048

—
—
—

42
9
51

250,864

349,194

Deferred assets:
Share issuance costs
Bond issuance costs
Total deferred assets
Total assets

7Millions of yen
2020

2021

LIABILITIESCurrent liabilities:
381

3,304

Short-term borrowings

16,883

12,325Current portion of long-term debt

14,71532,197

Accrued income taxes

4,063

1,660

Other

3,452

5,131

39,49754,618

Bonds payable

5,000

9,000

Bonds with share acquisition rights

10,00012,000Long-term debt

116,406

165,709

Deferred tax liabilities

—

2,551

Liabilities for retirement benefits

212

251

1,323

1,369

Construction assistance fund

427

372

Other

297

292

133,666

191,547

173,164

246,166

Capital stock

16,227

20,595

Capital surplus

17,98522,471Retained earnings

43,61550,269(883)(0)

76,94593,336

Unrealized gain on available for-sale securities

180

965

Foreign currency translation adjustment

(97)

(5)

83

959

671

8,731

77,699103,028

250,864

349,194

Notes and accounts payable

Total current liabilities
Non-current liabilities:

Guarantee deposits

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

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

Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Years ended November 30
Millions of yen
2020

2021

Net sales

101,120

90,460

Cost of sales

73,456

72,606Gross profit

27,664

17,854

Selling, general and administrative expenses

10,308

8,392

Operating income

17,3559,461Interest income

133

Dividends

13

11

Share of profit of entities accounted for using equity method—839

Non-operating income:

Foreign exchange gains

5

1,065

Gain on valuation of interest rate swaps

71

47

Penalty income

27

26

Other

19

110

139

2,134

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

1,884

2,552

Interest expenses on bonds—

159

Commission fee

309

743

Other

52

35

Total non-operating expenses

2,246

3,491

Ordinary income

15,247

8,105

26

—

Subsidy income

27—

Refund of consumption tax for prior periods

149—

Gain on bargain purchase

—

4,307

Total extraordinary income

203

4,307

Head office relocation expenses—

187

Loss on sales of non-current assets

7—

Extraordinary income:Gain on sales of non-current assets

Extraordinary loss:

Loss on retirement of non-current assets

02

Loss on temporary closure

101—

Loss on valuation of investment securities—

10

Total extraordinary losses

108

201

Income before income taxes

15,342

12,211

Income taxes-current

4,855

2,315

Income taxes-deferred

(201)
4,654

(196)
2,119

10,688

10,092

72

79

10,615

10,012

Total income taxes
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
2020
Net income

2021

10,688

10,092

Unrealized gain on available for-sale securities

(454)

784

Foreign currency translation adjustment

(34)

247

Total other comprehensive income

(488)

1,032

10,19911,125

10,126

10,88973

235

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, 2020 (December 1, 2019 to November 30, 2020)
Millions of yen
Shareholders’ equity

Balance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease) due
to increase inconsolidated
subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Capital stock

Capital surplus

16,184

17,93843

43

Treasury
Stock,
at CostRetainedearnings
36,335(3)

70,45587(3,335)(3,335)

10,615

10,615

3

(893)

(893)

12

15

—

0

0

43

47

7,279

(880)

6,489

16,227

17,98543,615(883)

76,945

Millions of yen
Accumulated other comprehensive income
Subscription
Unrealized
Foreign
Accumulated
Rights togain oncurrency
otherSharesavailable fortranslation
comprehensive
sale securities
adjustment
incomeBalance at the end of
previous period
Changes of items during
the period

Totalshareholders’equity

634

(62)

571

—

Non-controllinginterests

600

Total Net
Assets71,627Issuance of new shares

87

Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease)
due to increase inconsolidated
subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period(3,335)
10,615
(893)
15

—

0

(454)

(34)

(488)

—

70

(417)

(454)

(34)

(488)

—

70

6,071

180

(97)

83

—

671

77,69911

Year ended November 30, 2021 (December 1, 2020 to November 30, 2021)
Millions of yen
Shareholders’ equity

Balance at the end of
previous period
Changes of items during
the period
Issuance of new shares
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease) due
to increase inconsolidated
subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Capital stock

Capital surplus

16,227

17,985

4,368

4,368

Treasury
Stock,
at CostRetainedearnings
43,615(883)

76,945

8,736(3,344)(3,344)

10,012

10,012

118

(385)

(385)

1,268

1,386

(14)

(14)

—

4,368

4,486

6,653

883

16,391

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

Millions of yen
Accumulated other comprehensive income
Subscription
Unrealized
Foreign
Accumulated
Rights togain oncurrency
otherSharesavailable fortranslation
comprehensive
sale securities
adjustment
incomeBalance at the end of
previous period
Changes of items during
the period

Totalshareholders’equity

180

(97)

83

—

Non-controllinginterests

671

Total Net
Assets77,699Issuance of new shares

8,736

Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesIncrease (decrease)
due to increase inconsolidated
subsidiaries
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes of items
other than shareholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period(3,344)
10,012
(385)
1,386

(14)

—

784

91

876

—

8,060

8,937

784

91

876

—

8,060

25,328

965

(5)

959

—

8,731

103,02812

(4) Consolidated Statements of Cash Flows
Years ended November 30
Millions of yen
2020
Operating activities:
Income before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (Decrease) in net defined benefit liability

2021

15,342
1,027
0
—
28

12,211
1,018
0
(2)
39

(14)

(45)

Interest expenses

1,884

2,712

Commission fee

309

743

1

(1,065)

(71)

(47)

Other-net

(27)
(27)
(19)
(149)
101
—
—
—
(581)
9,465
(96)
272
(75)
—
(11,298)

(26)
—
—
—
—
(839)
(4,307)
187(425)(13,741)
1,636
(312)
22
10
2,671

Subtotal

16,071

443

14

12

Decrease in interest payable(2,007)(2,509)Penalty income received
Payment for loss on temporary closure
Income taxes (paid) refunded27(97)(2,050)—(4)(4,671)

11,958(6,728)

(60)

(85)

37
(28,745)385

4(34,459)
—

(24)

(324)

(3,340)(5,125)

118

3,321

—

(6,926)—(130)(8,652)—

Payments for investments in capital

(1)

(28)

Payments of construction assistance fund receivables

(55)

(55)

Other-net—(16)(31,815)(52,348)

Interest and dividends income

Foreign exchange losses (gains)
Gain on valuation of interest rate swaps
Penalty income
Subsidy income
Loss (gain) on sales of property, plant and equipment
Refund of consumption tax for prior periods
Loss on temporary closure
Share of loss (profit) of entities accounted for using equity method
Gain on bargain purchase
Head office relocation expenses
Decrease (increase) in notes and accounts receivable - trade
Decrease (Increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes
Increase (decrease) in lease and guarantee deposits received
Loss (gain) on valuation of investment securities

Decrease in interest and dividends receivable

Net cash provided by (used in) operating activities
Investing activities:
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of investment securities
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Purchase of investments in affiliates
Long-term loan advances

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

Millions of yen
2020

2021

Financing activities:
Increase in short-term loans payable

30,02332,663

Decrease in short-term loans payable(15,455)(37,223)

5,000

4,000

Proceeds from issuance of bonds—

12,000

Proceeds from long-term loans

65,861

113,794

Repayments of long-term loans(63,372)(62,831)

Purchase of treasury shares

(893)

(385)

(3,334)(3,344)

(2)

(200)

(339)

(814)

17,48857,658Proceeds from issuance of bonds with share acquisition rights

Dividends paid
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(8)

166

Net increase (decrease) in cash and cash equivalents(2,377)(1,252)

Cash and cash equivalents, beginning of the period

44,102

41,724—116

41,724

40,589

Increase in cash and cash equivalents from newly consolidated
subsidiary
Cash and cash equivalents, end of the period14(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: 20
Names of consolidated subsidiaries
Hikone SC Ltd.
Samty Hotel Management Co., Ltd.
Samty Property Management Co., Ltd.
Samty Asset Management Co., Ltd.
S Hotel Operations Nagasaki LLC
S Hotel Operations Nagasaki General Incorporated Association
S Hotel Operations Utsunomiya LLC
S Hotel Operations Utsunomiya General Incorporated Association
S Hotel Operations Hakata LLC
S Hotel Operations Kyoto Tambaguchi LLC
SI Kaihatsu LLC
S Hotel Operations General Incorporated Association
SAMTY Asia Investments Pte. Ltd.
S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY
Samty Vietnam Co., Ltd.
S Hotel Operations Nagoya LLC
S Hotel Operations Kyoto Horikawa LLC
R&K Limited
S Hotel Operations Kyoto Shijo LLC
S Hotel Operations Kyoto Oike LLC
Due to their increased significance, S Hotel Operations Nagoya LLC, S Hotel Operations Kyoto
Horikawa LLC, S Hotel Operations Kyoto Shijo LLC, and Samty Vietnam Co., Ltd., which were nonconsolidated subsidiaries in the previous fiscal year, have been included in the scope of
consolidation from the subject fiscal year.
Due to having acquired shares in S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCKCOMPANY, R&K Limited having acquired equity interests in a silent partnership business as wellas having newly established S Hotel Operations Kyoto Oike LLC, these have been included in thescope of consolidation from the subject fiscal year.
(2) Names of material unconsolidated subsidiaries
Samty Japan Hotel REIT, Inc.
Reason for exclusion from the scope of consolidation
This is because, in the subject fiscal year, the total assets, net sales, profit, retained earnings andother figures of the non-consolidated subsidiary were small amounts that did not have any material
15effect on the consolidated financial statements.
2. Items relating to the application of the equity method(1) Number of affiliated companies accounted for by the equity method

2

Names of affiliated companies accounted for by the equity method:
Wealth Management, Inc.
Shangri-La Kyoto Nijojo Special Purpose Company
Wealth Management, Inc. has been included in the scope of equity method affiliates from thesubject fiscal year due to the acquisition of shares and Shangri-La Kyoto Nijojo Special Purpose
Company by the acquisition of equity interests.
(2) Name of major non-consolidated subsidiary to which the equity method is not applied
Samty Japan Hotel REIT, Inc.
Reasons for exclusion from scope of application of equity method
This is because, in the subject fiscal year, the net income, retained earnings and other figures of
the non-consolidated subsidiary to which the equity method is not applied were small amounts
that did not have any material effect on the consolidated financial statements.
3. Items relating to the fiscal year of consolidated subsidiaries
Among the consolidated subsidiaries, the balance sheet dates for SAMTY Asia Investments Pte.
Ltd., S-VIN VIETNAM REAL ESTATE TRADING JOINT STOCK COMPANY and Samty Vietnam
Co., Ltd. is September 30. In the preparation of the consolidated financial statements, since thedifference in the balance sheet dates is less than three months, the consolidated financial
statements have been prepared based on the subject balance sheet dates for the subject
subsidiaries. However, should material transactions occur during the period to the consolidatedbalance sheet date, the consolidated statements will be adjusted as necessary. The balance sheet
dates of the other consolidated subsidiaries are the same as the consolidated balance sheet date.
The settlement date of R&K Limited is December 31, and the financial statements based on theprovisional settlement of accounts as of the consolidated settlement date are used in preparing theconsolidated financial statements.
4. Items related to accounting standards(1) Valuation standards and valuation methods for material assets(A) Securities
Available-for-sale securities
Securities with current market value
Current market value method based on the market price on the balance sheet date. (Valuationdifference is fully and directly recognized within net assets. Cost of sale is calculated using amoving average.)
Securities without current market value
The Company applies a cost method using a moving average.
(B) Derivatives
Market value method applied

16

(C) Inventory
Real estate for sale and real estate for sale in process
The Company applies the cost method based on actual cost. (The balance sheet value iscalculated by the book value devaluation method based on decline in profitability.)
Merchandise and supplies
The Company applies the price-of-last-purchase method.
(2) Method of depreciating material depreciable assets(A) Tangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries apply the declining-balance method. However,with regard to buildings acquired on or after April 1, 1998 (excluding accompanying facilities), as
well as buildings with accompanying facilities and structures acquired on or after April 1, 2016,
the straight-line method is applied.
Main lifetime durations are as follows.
Buildings and structures

5–50 years

Trust building

8–45 years(B) Intangible fixed assets (excluding lease assets)
The Company applies the straight-line method.
Software for use by the Company is depreciated over a useful-lifetime period of five years.
(C) Lease assets
Assets related to finance lease transactions without ownership-transfer
The lease period is deemed the useful lifetime period, and assets are depreciated using thestraight-line method to a residual value of zero.
(D) Long-term prepaid expenses
The Company applies the straight-line method.
(3) 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
System.

17

(5) Criteria for converting significant foreign currency-denominated assets or liabilities into Japanesecurrency
Foreign currency-denominated monetary receivables and payables are converted into yen at the
spot exchange rate on the consolidated settlement date, and the conversion difference is treatedas profit or loss. The assets and liabilities of overseas subsidiaries, etc. are converted into yen at
the spot exchange rate on the consolidated settlement date, revenues and expenses are converted
into yen at the average market price during the period, and translation differences are included in
the foreign currency translation adjustment account and non-controlling interests in the net assets
section.
(6) Method for amortization of goodwill and amortization period
Amortized using the straight-line method over a 20-year period. The goodwill is amortized in alump sum when incurred in cases where the amount is immaterial.
(7) Scope of funds presented in the Consolidated Statements of Cash Flows
Funds presented comprise cash on hand, deposits that can be withdrawn at any time and areeasily convertible, and short-term investments, the maturities of which are three months or lessfrom the acquisition date and thus involve only a slight risk of price fluctuation.
(8) 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 real estate for sale is included in the acquisitioncost. Non-deductible consumption tax, etc., relating to fixed assets is recognized as a long-term
prepaid expense (under Other under Assets, Investments and other assets) and amortized using
the straight-line method over a five-year period.
(Change in Accounting Policy)
Not applicable.
(Change in Presentation Methods)(Consolidated Income Statement)
As foreign exchange gains, which in previous consolidated fiscal years were included in Other
under Non-operating income, exceeded 10/100 of the total amount of non-operating income, thesewill be posted independently from the subject fiscal year. To reflect this change in presentation
method, the consolidated financial statements for the previous consolidated fiscal year have been
reclassified.
As a result, the ¥5 million shown under Other in Non-operating income in the consolidated
income statement for the previous consolidated fiscal year has been reclassified as foreignexchange gains of ¥5 million.

18

(Additional Information)(Change of Holding Objective)
Owing to changes in holding objective, ¥12,704 million was transferred from tangible fixed assets
to inventory.
(Impact of COVID-19 pandemic on accounting estimates)
With regard to measures designed to counter COVID infections, the third round of vaccinations for
medical professionals has been started. In addition, as a raft of economic stimulus measures areplanned to be implemented, the Group assumes that these measures will lead to a gradual recovery
of socio-economic activities. This assumption is being factored in when making estimates foraccounting purposes, such as write-downs on inventories and impairment losses on fixed assets.
(Related to Consolidated Statement of Income)Penalties, etc. incurred due to moving out following the relocation of our Osaka Head Office arerecorded as an extraordinary loss of ¥187 million as head office relocation costs.
(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
2020
Cash and deposits

2021

42,511

41,646Time deposits with maturities exceeding three months

(252)

(332)

Trust deposits with use restrictions

(432)

(641)

Deposits with withdrawal restrictions

(103)

(83)

41,724

40,589Cash and cash equivalents

19

(Segment Information)
1. Outline of reportable segments
The Samty Group’s reportable segments are those for which separate financial information is available
within the Company’s units of classification. To facilitate decisions on the allocation of management
resources by the Board of Directors and evaluation of operating performance, the reportable segments
are subject to regular review. The Company’s reportable segments are: Real Estate Development
Business, Real Estate Solution Business, Overseas Business, Real Estate Leasing Business, HotelBusiness, and Real Estate Management Business.
The Real Estate Development Business engages in the planning, development, and sales of the
Samty brand S-RESIDENCE series. The Real Estate Solution Business engages in the acquisition,
renovation, and sales of profitable real estate. The Overseas Business engages in investments andhousing development business overseas. The Real Estate Leasing Business engages in the leasingof residential apartments, office buildings, and commercial facilities. The Hotel Business engages in
the leasing and operating of hotels. The Real Estate Management Business manages residential
apartments, office buildings, and commercial facilities.
(Matters appertaining to changes in reportable segments, etc.)
Announced on January 27, 2021, and starting in the subject fiscal year, we reviewed the Samty
Toughening Plan (Post-COVID Version) Medium-Term Management Plan that had beenannounced in September 2018. To clarify the progress made with Samty Toughening Plan (PostCOVID Version) Medium-Term Management Plan that takes into account the effects of COVID
infections, we decided to disclose more detailed information on the reportable segments.
The previous Real Estate Business has been divided into three, namely the Real Estate
Development Business, Real Estate Solution Business, and Overseas Business. The previous
Real Estate Leasing Business has been divided into the Real Estate Leasing Business and Real
Estate Management Business. Businesses other than the Hotel Business, which were previously
included in Other Businesses, have been reclassified into each segment. In addition, asset
management that was included in the previous Real Estate Business has been changed to theReal Estate Management Business segment.
The segment information for the previous consolidated fiscal year has been created using thechanged classification method. The information is stated under “3. Operating Revenues andEarnings (or Losses), Assets and Other Matters by Reportable Segment” for the previous
consolidated fiscal year.
2. Method of calculating reportable segment sales, profit, assets and other items
The accounting method for reportable segments is largely the same as that specified in “Material items
fundamental to the preparation of consolidated financial statements.”
Reportable segment profit (loss) is based on operating income. Intersegment sales and transfers
are recorded based on market prices.

20

3. Sales, profit, assets and other items relating to each reportable segment
Fiscal year under review (December 1, 2019–November 30, 2020)
Years ended November 30
Millions of yen
Reportable Segment

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating income(loss)
Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsReal Estate
Development
Business

Real Estate
Solution
Business

Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

58,26930,247

499

7,787

2,029

2,286

101,120

―

114

―

―

59

576

750

58,26930,361

499

7,787

2,089

2,863

101,871

14,790

3,682

385

4,109

(641)

308

22,63456,30044,516

16,05878,903

7,399

3,058

206,237

―

―

0

824

78

26

929

―

―

―

35,74174

27

35,843

Overseas
Business

Millions of yen

Adjustment

AmountRecorded on
Consolidated
IncomeStatement

101,120―

101,120

750

(750)

―

101,871(750)

101,120

22,634(5,279)17,355206,237

44,626

250,864

929

97

1,027

35,84382

35,925Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating income(loss)
Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsNotes
1. Adjustment to segment profit (loss) of (¥5,279 million) mainly comprises intersegment eliminations of (¥101 million),and unallocated corporate expenses of (¥5,178 million). Corporate expenses are general and administrative
expenses not attributed to any reportable segment.
2. Adjustment to segment assets of ¥44,626 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 (loss) and segment assets are both adjusted to the operating income and total assets on
the consolidated income statement.

21

Total

Fiscal year under review (December 1, 2020–November 30, 2021)
Years ended November 30
Millions of yen
Reportable Segment

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating income(loss)
Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsReal Estate
Development
Business

Real Estate
Solution
Business

Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

38,86337,128

595

7,949

2,689

3,233

90,460

―

―

―

―

95

611

707

38,86337,128

595

7,949

2,784

3,845

91,167

9,863

3,042

298

3,779

(2,596)550

14,93774,41074,11325,221

100,30722,641

3,666

300,361

―

―

33

677

81

38

830

―

―

0

29,721

1,386

82

31,191

Overseas
Business

Millions of yen

Adjustment

AmountRecorded on
Consolidated
IncomeStatement

90,460―90,460

707

―

707

91,167―

91,167

14,937(5,475)9,461

300,361

48,833

349,194

830

187

1,018

31,191

3,131

34,322Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating income(loss)
Segment assets
Other Items
Depreciation
expenseIncrease in tangible
fixed assets andintangible fixed
assetsNotes
1. Adjustment to segment profit (loss) of (¥5,475 million) mainly comprises intersegment eliminations of (¥223 million),and unallocated corporate expenses of (¥5,252 million). Corporate expenses are general and administrative
expenses not attributed to any reportable segment.
2. Adjustment to segment assets of ¥48,833 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 (loss) and segment assets are both adjusted to the operating income and total assets on
the consolidated income statement.

22

Total

(Per Share Information)
2020

2021

Net assets per share (Yen)

1,907.51

2,029.28

Net income per share (Yen)

261.23242.52

Diluted net income per share (Yen)

227.88214.32(Note) 1. Bases for calculation of net assets per share
2020

2021

Total net assets(Millions of yen)

77,699103,028

Amount subtracted from total net assets(Millions of yen)

671

8,731

Non-controlling interests(Millions of yen)

671

8,731

77,02894,29640,381,728

46,467,884

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

2. Bases for calculation of net income per share and diluted net income per share
2020

2021

Net income per share(Millions of yen)

10,615

10,012

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

10,615

10,012

40,637,582

41,286,203――

Profit attributable to owners of parent

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

Additional shares of common stock(Shares)

5,946,717

5,432,329

Convertible bonds(Shares)

5,946,717

5,432,329

Stock options(Shares)――

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

23