July 12, 2024

Flash Report (Consolidated Basis)
Results for the first half ended May 31, 2024
(Based on Japanese GAAP)
Samty Holdings Co., Ltd.

Company name:(Samty Co., Ltd.)
Stock Listings:

Tokyo Stock Exchange

Stock Code:

187A

URL:

https://www.samty-holdings.com/en/

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

Quarterly report filing date (Planned):—

Start of dividend payments (Planned):

August 15, 2024

Quarterly supplemental explanatory material prepared:

Yes

Quarterly results briefing held:

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

1. Consolidated Results for 2Q FY2024(December 1, 2023 to May 31, 2024)(1) Consolidated Operating Results
Percentages indicate year-on-year increase/ (decrease).

Net sales
Millions of yen

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Millions of yen

Six months ended
57,540(11.9)
4,449(32.6)
165
May 31, 2024
Six months ended
65,282
80.2
6,604
139.9
3,278
May 31, 2023
(Note) Comprehensive Income: Six months ended May 31, 2024: ¥ (1,806) million, ―%Six months ended May 31, 2023: ¥4,602 million, 60.2%

Net income per share

Net Income per shareafter adjustment forresidual shares

Yen

Yen

%

Millions of yen%(95.0)

(613)

―

64.4

1,311

(21.3)

Six months ended(13.17)―
May 31, 2024
Six months ended
28.20
25.74
May 31, 2023
(Note) Following the passing of the proposal for a Partial Amendment to the Articles of Incorporation at the 42nd Annual
General Meeting of Shareholders held on February 27, 2024, the Company will change the fiscal year-end (thelast day of the business fiscal year) of each year from the current fiscal year. The date has been changed from
November 30 to December 31 of each year.

(2) Consolidated Financial Condition
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

May 31, 2024

503,103

113,346

20.2

November 30, 2023

413,454

111,138

25.5(Reference) Total shareholders’ equity: May 31, 2024: ¥101,505 million, November 30, 2023: ¥105,568 million(Note) Due to a change in accounting policy from the subject first quarter consolidated accounting period, figures for the
fiscal year ended November 2023 are stated after retrospective application. For details, please refer to [Attachment]
page 11 “2. Quarterly Consolidated Financial Statements and Major Notes (3) Notes Regarding Quarterly
Consolidated Financial Statements (Changes in Accounting Policy).”

2. Dividends
Dividends per share
1Q

2Q

3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year end
November 30, 2023
Fiscal year end
December 31, 2024
Fiscal year end
December 31, 2024
(Forecast)

―

39.00

―

43.00

―

51.00

90.00

―

―

―

(Note) 1. Revision of dividends forecast for this period: Yes
2. For Samty Holdings Co., Ltd.’s dividend forecast for the fiscal year ending December 2024, please refer to Samty
Holdings Co., Ltd.’s "Notice Concerning Consolidated Financial Results Forecast, Dividend Forecast, and Shareholder
Benefit Program for Fiscal Year Ending December 2024" (announced on June 3, 2024).

3. Forecasts for FY2024 (December 1, 2023 to November 31, 2024)
For Samty Holdings Co., Ltd.'s consolidated financial results forecast for the fiscal year ending December 2024, pleaserefer to Samty Holdings Co., Ltd.'s "Notice Concerning Revision (Upward Revision) of Full-Year Financial Results Forecast"(announced on July 12, 2024).

Notes(1) Significant changes in subsidiaries during the subject fiscal period: Yes(Changes in specified subsidiaries related to a change in the scope of consolidation)
Additions: 3 (Tozankaku LLC / S-VIN2 VIETNAM REAL ESTATE TRADING JOINT STOCKCOMPANY / Hotel Kanazawa LLC)
Deletions: (—)(2) Application of special accounting practices in the preparation of the consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, restatements
1) Changes in accounting policies due to revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Restatements: None(4) Number of shares issued and outstanding (common share)
1) Number of shares issued andoutstanding (including treasury
stock)

May 31, 2024

46,583,099
sharesNovember 30, 2023

46,584,085
shares2) Number of treasury stock

May 31, 2024

― shares

November 30, 2023

876 shares

3) Average number of shares
outstanding for each period(cumulative term)

May 31, 2024

46,583,174
sharesMay 31, 2023

46,522,039
shares* Quarterly financial statements are not subject to review by certified public accountants or audit firms.
* Explanation regarding the appropriate use of results forecasts, and other items of note
 Results forecasts and other forward-looking statements contained in this report are based on information available to
the Company at the time of disclosure, and certain assumptions the Company considers reasonable. Actual results
may vary considerably due to a variety of factors.
 The Company plans to hold an explanatory meeting for institutional investors and analysts on July 31, 2024.

Table of Contents for Accompanying Material
1. Qualitative Information on Consolidated Results for 2Q FY2024 ....................................................... 2(1) Explanation of Business Results ...................................................................................................... 2(2) Qualitative Information on the Consolidated Financial Position ....................................................... 3(3) Explanation of Consolidated Results Forecasts and Other Future Predictions ............................... 4
2. Consolidated Financial Statements and Main Explanatory Notes....................................................... 5(1) Consolidated Balance Sheets ........................................................................................................... 5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 7(3) Consolidated Statements of Cash Flows .......................................................................................... 9(4) Notes Relating to Consolidated Financial Statements ................................................................... 11(Note on Assumptions for Going Concern) ...................................................................................... 11(Notes in the Event of Major Changes in Shareholders’ Equity) ...................................................... 11(Change in Accounting Policy).......................................................................................................... 11(Additional Information) ..................................................................................................................... 11(Segment Information) ...................................................................................................................... 12(Significant Events after the Reporting Period) ................................................................................ 141

1. Qualitative Information on Consolidated Results for 2Q FY2024(1) Explanation of Business Results
During the subject second quarter cumulative period, the Japanese economy continued its gradual trend
toward recovery, including active inbound consumption, the market entry of semiconductor-related
factories, and hotel-related capital investment. In contrast, the outlook in terms of the world economy
remained uncertain due to factors that, in addition to sluggish personal consumption, high raw material
prices and soaring labor costs, included the increasing cost burdens for the construction industry andother sectors in responding to the 2024 problem.
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 have remained favorable, because they are noteasily affected by economic trends. In the hotel industry, although the upward trend in domestic travel
demand could be seen to have plateaued, the occupancy rate and other factors have reached roughly
their pre-COVID-19 levels and are recovering steadily due to the increase in the number of inboundvisitors to Japan.
Under this business environment, underpinned by the strong investment appetite of domestic andoverseas institutional investors, we sold 42 properties for sale, including of the Samty brand SRESIDENCE rental apartment series. When purchasing properties, we proceed while giving carefulconsideration to market trends, such as interest rates, purchase prices, and cap rates.
As a result, for the subject second quarter cumulative period, net sales amounted to ¥57.5 billion(down 11.9% from the same period of the previous fiscal year), with operating profit of ¥4.4 billion (down
32.6%), ordinary profit of ¥0.1 billion (down 95.0%), and loss attributable to owners of parent of ¥0.6
billion (profit attributable to owners of parent of ¥1.3 billion in the same period of the previous fiscal
year).
Results by Business Segment
a. Real Estate Development Business
The Real Estate Development Business engages in the planning, development, and sales of the Samty
brand S-RESIDENCE series, etc.
During the subject second quarter cumulative period, we sold 19 properties of real estate for sale.
As a result, net sales in the Real Estate Development Business segment amounted to ¥26.0 billion(down 17.4% from the same period of the previous fiscal year), with operating profit of ¥4.4 billion (down
22.4%).
b. Real Estate Solution Business
The Real Estate Solution Business engages in the acquisition, renovation, and sales of profitable realestate.
During the subject second quarter cumulative period, we sold 23 properties of real estate for sale.
As a result, net sales in the Real Estate Solution Business segment amounted to ¥16.5 billion (up71.3% from the same period of the previous fiscal year), with operating profit of ¥1.9 billion (up 25.1%).
c. Overseas Business
The Overseas Business engages in overseas investment and for-sale housing businesses. Concerning
the smart city, for-sale housing business project in Hanoi, Vietnam, which commenced sales in
November 2021, steady sales progress was made. In addition, in view of the strong performance of theabove project, we will participate in a new housing development project in Ho Chi Minh City, and theplan is to commence sales in September 2024.
As a result, net sales in the Overseas Business segment amounted to ¥0.4 billion (down 96.3%
from the same period of the previous fiscal year), with operating loss of ¥0.3 billion (operating profit of¥1.6 billion recorded in the same period of the previous fiscal year).
2

d. Real Estate Leasing Business
The Real Estate Leasing Business engages in the leasing of residential apartments, office buildings,
and commercial facilities. Property acquisitions were favorable during the subject second quarter
cumulative period—19 properties were acquired for approximately ¥17.9 billion—and 31 development
properties were completed.
As a result, net sales in the Real Estate Leasing Business segment amounted to ¥3.7 billion (down
11.0% from the same period of the previous fiscal year), with operating profit of ¥1.4 billion (down 9.6%).
e. Hotel Business
The Hotel Business engages in the leasing and operating of hotels. During the subject second quarter
cumulative period, the hotels in which the Group participates numbered 23, including the Hotel
Kanazawa (Kanazawa City, Ishikawa Prefecture) and Six Senses Kyoto (Higashiyama Ward, Kyoto
City).
During the subject second quarter cumulative period, occupancy rates and average room prices atowned and operated hotels recovered steadily due to the increase in the number of inbound visitors toJapan.
As a result, net sales in the Hotel Business segment amounted to ¥8.0 billion (up 39.2% from thesame period of the previous fiscal year), and operating loss of ¥0.2 billion (operating loss of ¥0.8 billion
in the same period of the previous fiscal year).
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 ¥2.6 billion(up 43.3% from the same period of the previous fiscal year), with operating profit of ¥0.4 billion (up53.4%).
(2) Qualitative Information on the Consolidated Financial Position
1) Assets, Liabilities, and Net Assets
AssetsTotal assets at the end of the subject second quarter cumulative period amounted to ¥503.1 billion,
an increase of ¥89.6 billion compared with the end of the previous fiscal year. The main factors for thechange were a ¥104.6 billion increase in real estate for sale, real estate for sale under construction
and property, plant and equipment, a ¥10.4 billion decrease in deposits paid, a ¥6.6 billion decreasein cash and deposits, and a ¥3.8 billion decrease in investments and other assets.
Liabilities
Total liabilities at the end of the subject second quarter cumulative period amounted to ¥389.7 billion,
an increase of ¥87.4 billion compared with the end of the previous fiscal year. The main contributory
factors were a ¥50.7 billion increase in long-term borrowings, a ¥35.3 billion increase in non-recourse
long-term borrowings, an ¥18.9 billion increase in short-term borrowings, and a ¥14.8 billion decreasein non-recourse long-term borrowings due within one year.
Net Assets
Total net assets at the end of the subject second quarter cumulative period amounted to ¥113.3 billion,
an increase of ¥2.2 billion compared with the end of the previous fiscal year. The main contributory
factors were a ¥6.2 billion increase in non-controlling interests, a ¥2.9 billion decrease in retained3earnings, a ¥0.5 billion decrease in foreign currency translation adjustment, and a ¥0.4 billion decreasein valuation difference on available-for-sale securities.
2) Cash Flows
Cash and cash equivalents (“cash”) at the end of the subject second quarter cumulative periodamounted to ¥36.7 billion, a decrease of ¥7.3 billion compared with the end of the previous fiscal year.
This was due mainly to ¥52.8 billion in cash used in operating activities; ¥14.1 billion in cash used ininvesting activities; and ¥59.5 billion in cash provided by financing activities.
The main factors affecting cash flows during the subject second quarter cumulative period are as
follows.
Cash Flow from Operating Activities
Net cash used in operating activities amounted to ¥52.8 billion (compared with ¥34.0 billion in cashused in the same period of the previous fiscal year). This was due mainly to ¥0.1 billion in income
before income taxes; ¥50.5 billion in increase in inventories; and ¥4.3 billion in income taxes paid.
Cash Flow from Investing Activities
Net cash used in investing activities amounted to ¥14.1 billion (compared with ¥15.3 billion in cashused in the same period of the previous fiscal year). This was mainly due to ¥3.4 billion in purchaseof property, plant and equipment, and expenditures of ¥11.8 billion due to the acquisition of shares ina subsidiary associated with a change in the scope of consolidation.
Cash Flow from Financing Activities
Net cash provided by financing activities amounted to ¥59.5 billion (compared with ¥37.0 billion in
cash provided in the same period of the previous fiscal year). This was due mainly to ¥39.2 billion inincrease in short-term loans payable; ¥20.7 billion in decrease in short-term loans payable; ¥114.1
billion in proceeds from long-term loans; ¥16.5 billion in proceeds from non-recourse long-termborrowings; ¥85.9 billion in repayments of long-term loans; ¥3.4 billion in proceeds from issuance ofbonds; ¥4.1 billion from redemption of bonds; and ¥2.3 billion in dividends paid.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
For Samty Holdings Co., Ltd.'s consolidated earnings forecast for the fiscal year ending December
2024, please refer to Samty Holdings Co., Ltd.'s "Notice Concerning Revision (Upward Revision) of
Full-Year Financial Results Forecast" (announced on July 12, 2024).

4

2. Consolidated Financial Statements and Main Explanatory Notes(1) Consolidated Balance Sheets
Millions of yen
As of November 30, 2023

As of May 31, 2024

ASSETS
Current assets:
Cash and deposits

45,28538,683

Accounts receivable – trade

2,808

2,807

Real estate for sale

122,117

181,218

Real estate for sale in process

130,096

165,136

Merchandise

16

27

Raw materials and supplies

8090

Deposits paid

11,144

671

Other

6,228

12,107(5)(25)

317,771

400,717

11,878

11,335—2,555

40,87942,637

Land in trust

—

5,941

Construction in progress

153

732

Other, net

665

854

53,57764,056

Goodwill

7

7

Other

452

489

459

496

Investment securities

36,161

32,709Deferred tax assets

687

1,054

4,717

3,983

41,56637,747

95,603102,300

Share issuance costs

11

3

Bond issuance costs

68

81

79

85

413,454503,103

Allowance for doubtful accounts
Total current assets
Non-current assets:
Property, plant and equipment:
Buildings and structures, net
Buildings in trust, net
Land

Total property, plant and equipment
Intangible assets:

Total intangible assets
Investments and other assets:

Other
Total investments and other assets
Total non-current assets
Deferred assets:

Total deferred assets
Total assets

5Millions of yen
As of November 30, 2023

As of May 31, 2024

LIABILITIESCurrent liabilities:
2,439

2,984

747

400

Income taxes payable

4,366

1,048

Short-term borrowings

12,68931,663Current portion of bonds payable

9,270

8,911

Current portion of long-term borrowings

59,01851,354—

1,443

Current portion of non-recourse long-term debt

14,844—

Other

11,87918,553

115,255

116,358

Bonds payable

4,375

4,049

Bonds with share acquisition rights

12,00012,000Long-term borrowings

154,503205,274

Non-recourse long-term debt

10,75046,149Retirement benefit liability

355

425

1,112

1,703

262

234

2,838

2,847

863

715

187,060

273,399

302,315

389,757

Share capital

20,725

20,725

Capital surplus

22,56022,557Retained earnings

63,05560,065(2)—

106,338

103,349945

449(1,715)(2,293)(770)(1,843)

5,569

11,841

111,138

113,346

413,454503,103

Accounts payable - trade
Provision for shareholder benefit program

Non-recourse short-term borrowings

Total current liabilities
Non-current liabilities:

Leasehold and guarantee deposits received
Construction assistance fundDeferred tax liabilities
Other
Total non-current liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:

Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Millions of yen
Six months ended
May 31, 2023

Six months ended
May 31, 2024

Net sales

65,28257,540

Cost of sales

50,86845,683Gross profit

14,413

11,856

Selling, general and administrative expenses

7,809

7,406

Operating profit

6,604

4,449

Interest income

116

36

Dividend income

2

6

Share of profit of entities accounted for using equity method

742

182

Penalty income

136

17

Other

51

42

1,050

284

Interest expenses

1,911

2,793

Interest on bonds

111

126

Commission expenses

675

1,522

Foreign exchange losses

1,618

68

59

58

Total non-operating expenses

4,376

4,568

Ordinary profit

3,278

165

Gain on sale of non-current assets

130Gain on change in equity

81

12

Total extraordinary income

94

12

Loss on sale of non-current assets

9—Loss on retirement of non-current assets

13

18

Special investigation expenses, etc.

938—

Total extraordinary losses

962

18

Profit before income taxes

2,411

159

Income taxes-current

766

1,088

Income taxes-deferred

66

(185)

Total income taxes

833

902

1,578

(742)

266

(129)

1,311

(613)

Non-operating income:

Total non-operating income
Non-operating expenses:

Other

Extraordinary income:Extraordinary loss:

Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

7

Consolidated Statements of Comprehensive Income
Millions of yen
Six months ended
May 31, 2023

Six months ended
May 31, 2024

1,578

(742)

361

(495)

Foreign currency translation adjustment

2,662

(567)

Total other comprehensive income

3,024(1,063)

4,602(1,806)

4,213(1,687)

389

(118)

Profit (loss)
Other comprehensive income:
Valuation difference on available-for-sale securities

Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests8(3) Consolidated Statements of Cash Flows
Millions of yen
Six months ended
Six months ended
May 31, 2023
May 31, 2024
Cash flows from operating activities:
Profit before income taxes
Depreciation

2,411

159

693

471

Amortization of goodwill00Increase (decrease) in allowance for doubtful accounts

019Increase (decrease) in retirement benefit liability

2570Interest and dividends income

(119)

(42)

Interest expenses

2,023

2,919

675

1,522

1,618

68

(742)

(182)

Commission expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on sale of property, plant and equipment
Special investigation expenses, etc.
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in advance payments to suppliers

(4)

(0)

938

—

(454)

83

(29,158)(50,552)719(3,314)(4,451)

6,094

Increase (decrease) in trade payables

395

530

Loss on retirement of non-current assets

13

18(1,753)(2,666)366

590

Increase (decrease) in advances received

Increase (decrease) in accrued consumption taxes
Increase (decrease) in leasehold and guarantee deposits
received
Other-net
SubtotalInterest and dividends received(375)(1,684)(27,176)(45,893)117

96(2,542)(2,745)Penalty received

136

17

Payment of special investigation expenses

(938)

—

(3,663)(4,327)(34,067)(52,852)

Interest paid

Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Payments into time deposits

(20)

(292)

Payments for deposits(3,821)—

Purchase of property, plant and equipment(7,104)(3,442)9

5

Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities

(15)

(38)

(4,274)

(396)

0

0

50

1,171

—

(11,812)

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

(48)

(0)

Payments of construction assistance fund receivables

(27)

(27)

Collections of long-term loans receivable
Other-net
Net cash provided by (used in) investing activities

—

698

(101)

(2)

(15,352)(14,138)(continued on page 10)9Millions of yen
Six months ended
Six months ended
May 31, 2023
May 31, 2024
Cash flows from financing activities:
Proceeds from short-term borrowings

21,67539,235

Repayments of short-term borrowings(22,874)(20,701)—

1,200

78,057

114,110Proceeds from non-recourse long-term borrowings—

16,556

Repayments of non-recourse short-term borrowings

(27)

(93)

(39,086)(85,994)

Proceeds from issuance of bonds

—

3,450

Redemption of bonds(85)(4,135)

Proceeds from increase in long-term accounts payable-other

722—

Repayments of long-term accounts payable-other

(56)

(119)

Purchase of treasury shares

(0)

(0)

(2,371)(2,373)

Proceeds from share issuance to non-controlling shareholders—

104

Cash dividends paid to non-controlling interests

—

(137)

(21)

(23)

1,148

(1,537)37,08059,538127

70

Net increase (decrease) in cash and cash equivalents(12,212)(7,381)

Cash and cash equivalents at beginning of period

43,104

44,13314—

30,90736,752

Proceeds from non-recourse short-term borrowings
Proceeds from long-term borrowings

Repayments of long-term borrowings

Dividends paid

Repayments of finance lease obligations
Other-net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period10(4) Notes Relating to Consolidated Financial Statements(Note on Assumptions for Going Concern)
Not applicable.
(Notes in the Event of Major Changes in Shareholders’ Equity)
Not applicable.
(Change in Accounting Policy)
Subject Second Quarter Consolidated Cumulative Period(from December 1, 2023 to May 31, 2024)
From the beginning of the subject first quarter consolidated accounting period, the Company has
adopted “Accounting Standard for Current Income Taxes” (Accounting Standards Board of Japan[ASBJ] Statement No. 27, dated October 28, 2022, hereinafter “the 2022 Revised AccountingStandard”).
Concerning the amendments with regard to the recording classification for corporate taxes (taxationon other comprehensive income), these will be in accordance with the transitional treatment stipulated
in the proviso to Paragraph 20-3 of the 2022 Revised Accounting Standard and with the transitional
treatment stipulated in the proviso to Paragraph 65-2 (2) “Application Guidelines for AccountingStandards Regarding Tax Effect Accounting” (Corporate Accounting Standards Application Guidelines
No. 28 October 28, 2022, hereinafter referred to as the “2022 Revised Application Guidelines”). Thischange to the said accounting policy will have no impact on quarterly consolidated financial
statements.
Concerning amendments relating to reviews of the treatment in consolidated financial statements inthe case of deferring gain and loss arising from the sale of subsidiary stocks, etc. between
consolidated companies for tax purposes, the 2022 Revised Application Guidelines have been applied
from the beginning of the subject first quarter consolidated accounting period. The change inaccounting policy having been applied retrospectively, to statements for the previous quarter and theprevious consolidated fiscal year are shown after said retrospective application. Regarding thetreatment of tax effects in cases where gain and loss on sales arising from the sale of subsidiarystocks, etc. between consolidated companies are deferred for tax purposes, if a deferred tax asset ordeferred tax liability is recorded for the temporary difference related to the gain or loss on the sale in
the financial statements of the company that sold the subsidiary stock, etc., the amount of deferred
tax assets or deferred tax liabilities related to such temporary differences had previously not beenrevised in the consolidated financial statements procedure. However, the Company has decided toreverse the deferred tax assets or deferred tax liabilities related to such temporary differences.
The impact of this change in accounting policy on past periods is immaterial.
(Additional Information)
Change in Holding Purpose
Because of a change in holding purpose, ¥1,148 million was transferred from property, plant, andequipment to inventories.
Change in fiscal year-end
The change to the fiscal year-end and the partial amendment to the Articles of Incorporation having
been approved at the Annual General Meeting of Shareholders held on February 27, 2024, the fiscal
year-end has been changed from November 30 to December 31 from the current consolidated fiscal
year.
As a result, the current consolidated fiscal year, which is the transition period for the change tothe fiscal year-end, will have an irregular 13-month accounting period, from December 1, 2023, toDecember 31, 2024.

11

(Segment Information)
I Results for 2Q FY2023 (from December 1, 2022 to May 31, 2023)
1. Operating Revenues and Earnings (or Loss) by Reportable Segment
Six months ended May 31, 2023
Millions of yen
Reportable Segment

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating profit (loss)

Real Estate
Development
Business

Real Estate
Solution
Business

Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

31,551

9,643

12,199

4,234

5,791

1,862

65,282

―

―

―

―

6

1,275

1,281

31,551

9,643

12,199

4,234

5,797

3,137

66,563

5,781

1,536

1,699

1,656

(862)

292

10,104

Overseas
Business

Millions of yen

Adjustment(Note 1)

AmountRecorded on
Consolidated
IncomeStatement(Note 2)65,282―65,282

1,281(1,281)―

66,563(1,281)

65,282

10,104(3,500)

6,604

Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating profit (loss)
Notes

1. The ¥3,500 million downward adjustment to operating profit (loss) comprises a negative ¥33 million in intersegment
eliminations, and a negative ¥3,467 million in corporate expenses not allocated to any reportable segment. Corporate
expenses are general and administrative expenses not attributed to any reportable segment.
2. Segment operating profit (loss) is adjusted to the operating profit on the consolidated income statement.

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

12

Total

II Results for 2Q FY2024 (from December 1, 2023 to May 31, 2024)
1. Operating Revenues and Earnings (or Loss) by Reportable Segment
Six months ended May 31, 2024
Millions of yen
Reportable Segment

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating profit (loss)

Real Estate
Development
Business

Real Estate
Solution
Business

Real Estate
Leasing
Business

Hotel
Business

Real EstateManagement
Business

26,076

16,515

451

3,767

8,061

2,668

57,540

―

―

―

―

30

1,701

1,732

26,076

16,515

451

3,767

8,091

4,370

59,272

4,488

1,923

(375)

1,498

(225)

448

7,756

Overseas
Business

Millions of yen

Adjustment(Note 1)

AmountRecorded on
Consolidated
IncomeStatement(Note 2)57,540―57,540

1,732(1,732)―

59,272(1,732)57,5407,756(3,306)

4,449

Total

Net sales:
Net sales fromthird parties
Inter-segment net
sales andtransfers
Total
Operating profit (loss)
Notes

1. The ¥3,306 million downward adjustment to operating profit (loss) comprises a negative ¥17 million in intersegment
eliminations, and a negative ¥3,288 million in corporate expenses not allocated to any reportable segment. Corporate
expenses are general and administrative expenses not attributed to any reportable segment.
2. Segment operating profit (loss) is adjusted to the operating profit on the consolidated income statement.

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

13

Total

(Significant Events after the Reporting Period)
Change to pure holding company structure via sole-share transfer
After having gone through the prescribed procedures of approvals, etc. at the Board of Directors’
meeting held on January 24, 2024, and at the Company's Annual General Meeting of Shareholders
held on February 27, 2024, following the Company's sole-share transfer (hereinafter referred to as“the Share Transfer") that had June 3, 2024 as the effective date, the Company decided to establish
Samty Holdings Co., Ltd. (hereinafter referred to as “the Holding Company"), a holding company(wholly owning parent company).
The Share Transfer plan was approved at the Company's Annual General Meeting of Shareholders
held on February 27, 2024, and the Holding Company established on June 3, 2024.
(1) Purpose of change to holding company structure(A) Strengthening of Group governanceBy clarifying the roles of the Holding Company and those of each operating company, anddeciding that the Holding Company will serve the function of supervising and controlling the entire
Group, we will strengthen Group governance and engage in management that further instills
Group discipline and strategies at each operating company.
(B) Increased Group management efficiency
By conducting flexible business operations that take a bird's-eye view of the entire Group andappropriately allocating management resources from the perspective of the overall optimizationof the Group, we will support the business growth of each operating company and strive toimprove the corporate value of Group companies.
(C) Increased mobility through rapid decision-making in implementation of management strategies
By clarifying the roles of the Holding Company and those of each operating company, the Holding
Company will be able to formulate strategies in Group accounting and make rapid decisions. In
addition, by building a flexible business execution system each operating company will aim to
improve corporate value by strengthening Group management functions.
(D) Human resource development
By conducting autonomous and responsible management based on their clearer responsibilities
and limits to their authority, each operating company will aim to improve its competitiveness andfoster the next generation of managers.
(2) Summary of the Share Transfer(A) Schedule
Date of record for Annual General Meeting of Shareholders

Nov. 30, 2023

Board of Directors’ meeting to approve share transfer plan

Jan. 24, 2024

Annual General Meeting of Shareholders to approve share transfer plan

Feb. 27, 2024

Date of Company stock delisting

May 30, 2024

Registration date (effective date) of the Holding Company’s establishment

June 3, 2024

Date of the Holding Company’s stock listing

June 3, 2024

(B) Method for the Share Transfer
This is the sole share transfer method, in which the Company is deemed the wholly owned
subsidiary of the Holding Company and the Holding Company the wholly owning parent via the
Share Transfer.

14

(C) Allocation of shares in connection with the Share Transfer (share transfer ratio)
Samty Holdings Co., Ltd.
Samty Co., Ltd.
(Whollyowning parent company/theCompany Name(The Share Transfer
Holding Company established via thesubsidiary/the Company)
Share Transfer)
Share transfer ratio
11(Notes) 1. Share transfer ratio
As of the time immediately before the Share Transfer became effective, all the shareholders of theCompany listed or recorded in the shareholder register of the Company were allotted and issued one shareof common stock in the Holding Company to be established for each share of common stock owned in the
Company.
2. Number of shares per unit
The Holding Company adopted the trading unit system, under which one trade consisted of 100 shares.
3. Basis for calculating share transfer ratio
The Share Transfer would establish a holding company, which would be the wholly owning parent company,
via the Share Transfer of the Company alone. Since there would be no change in the shareholder
composition of the Company or of the Holding Company at the time of the Share Transfer, we made it our
top priority to not cause any disadvantage to our shareholders and allotted one share of common stock in
the Holding Company for each share of common stock they held in the Company.
4. Results, methods of calculation, and basis of calculation conducted by third-party entity
For the reasons set out in 3. above, the Share Transfer was a sole-share transfer by the Company, andtherefore no share transfer ratio calculations were made by a third party.
5. Number of new shares issued via the Share Transfer
The number of shares of common stock is 46,583,159.

(D) Treatment of stock acquisition rights and bonds with stock acquisition rights associated with the
Share Transfer
Concerning each stock acquisition right issued by the Company (including stock acquisition rights
attached to bonds with stock acquisition rights), holding company stock acquisition rights of thesame content and number were issued and allotted to stock acquisition rights holders of our stockacquisition rights in place of the Company's stock acquisition rights held by the Holding Company.
The Holding Company also assumed any obligations relating to the bonds with stock acquisitionrights issued by the Company.

15(3) Overview of companies involved in the Share Transfer(wholly owned subsidiary in the Share Transfer/the Company)(A) Name
Samty Co., Ltd.
(B) Location

1-8-39 Nishimiyahara, Yodogawa Ward, Osaka(C) Representative's position/name

Representative Director and President Yasuhiro Ogawa(D) Business description

Real estate development business
Real estate solution business
Real estate leasing business
Hotel/development/ownership/operation businesses, etc.

(E) Capitalization

JPY 20,725 million(F) Date of establishment

December 1, 1982

(G) Number of shares issued

46,583,099(H) Fiscal year-end

December 31
Daiwa Securities Group Inc.

The Master Trust Bank of Japan, Ltd. (atrust)(I) Major shareholders andIndividual
shareholding ratio
PI Partners Co. Ltd.
(Ratio of number of shares owned to Daiwa
Tsuyoshibiru
Co., Ltd.
total number of shares issued
Individual[excluding treasury shares])
Custody Bank of Japan, Ltd. (trust account)
Individual
Individual
SMBC Nikko Securities Inc.
(J) Business results and financial condition for past three years
Fiscal YearFY2021
FY202228.32%
7.18%
2.95%
2.68%
2.61%
1.86%
1.79%
1.71%
1.08%
0.91%
FY2023

Consolidated net assets (Millions of yen)

103,028

110,395

111,138

Consolidated total assets (Millions of yen)349,194

413,594

413,454

Consolidated net assets per share (Yen)2,029.28

2,123.10

2,266.24

Consolidated net sales (Millions of yen)

90,460128,470

198,660

Consolidated operating income (Millions of yen)

9,461

14,083

19,533

Consolidated ordinary income (Millions of yen)

8,105

14,441

15,854

Profit attributable to owners of parent(Millions of yen)

10,012

10,866

10,306

Consolidated net income per share (Yen)

242.52233.68221.44

Dividend per share (Yen)

90.00

90.00

90.00

(Note) From the beginning of the subject first quarter consolidated accounting period, the Company has adopted“Accounting Standard for Current Income Taxes” (Accounting Standards Board of Japan [ASBJ] Statement No.
27, dated October 28, 2022, hereinafter “the 2022 Revised Accounting Standard”). The main management
indicators relating to the previous second quarter consolidated cumulative period and the previous consolidated
fiscal year, are those after the relevant accounting standards have been applied retrospectively. In the case of
the 2022 Revised Accounting Standard, the transitional treatment specified in the proviso to Paragraph 20-3 isbeing applied, and with regard to the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ
Guidance No. 28, October 28, 2022), the transitional treatment specified in the proviso to Paragraph 65-2 (2)is being applied. As a result, the main management indicators, etc. for the subject second quarter consolidated
cumulative period are those after the relevant accounting standards have been applied.

16

(4) Overview of the company newly established via the Share Transfer (wholly owning parent
company/the Holding Company established via the Share Transfer)(A) Name
Samty Holdings Co., Ltd.
(B) Location

1-8-39 Nishimiyahara, Yodogawa Ward, Osaka(C) Representative's position/name

Representative Director and President Yasuhiro Ogawa(D) Business description

Business management of Group companies and related
operations(E) Capitalization

JPY 20,725 million(F) Date of establishment

June 3, 2024

(G) Fiscal year-end

December 31(5) Overview of share transfer accounting treatment
Since under corporate accounting the Share Transfer falls into the category of "transactions undercommon control,” there will be no impact on profit or loss.
(Changes in subsidiaries due to dividends in kind)
At the Extraordinary General Meeting of Shareholders held on June 3, 2024, the Company resolved
to distribute in kind all of its shares held in four consolidated subsidiaries—Samty HotelManagement Co., Ltd., Samty Property Management Co., Ltd., Samty Asset Management Co., Ltd.,and Nesta Resort Kobe Co., Ltd.—to its wholly owning parent company Samty Holdings Co., Ltd.
and carried out the distribution on the same day.
As a result, the above four companies have become directly owned companies of Samty
Holdings Co., Ltd.
(Conversion of convertible bond-type bonds with subscription rights)
On June 28, 2024, Samty Holdings Co., Ltd. completed the conversion into shares of all of the
1st Unsecured Convertible Bonds with Stock Acquisition Rights, for which it had assumed the bonddebt. The details of the conversion are as follows:
1st Unsecured Convertible Bonds with Stock Acquisition Rights(A) Number of stock acquisition rights exercised: 120(B) Number and type of shares issued: 4,633,562 shares of common stock(C) Total conversion price: JPY 12,000 million(D) Increase in capital: JPY 6,000 million(E) Increase in capital reserve: JPY 6,000 million
END

17