B-Lot Company Limited
Financial Results Briefing for the Fiscal Year Ended December 2019
February 19, 2020

Event Summary[Company Name]

B-Lot Company Limited[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended December 2019

[Fiscal Period]

2019 Annual[Date]

February 19, 2020

[Number of Pages]

26[Time]

10:00 – 10:42(Total: 42 minutes, Presentation: 30 minutes, Q&A: 12 minutes)[Venue]Kabutocho Heiwa Building 2F
3-3 Kabutocho Nihonbashi
Chuo-ku, Tokyo 103-0026(Hosted by The Securities Analysts Association of Japan)[Venue Size]

145 m2[Participants][Number of Speakers]

SupportJapan
Tollfree03.4405.3160
0120.966.744

2
Makoto Miyauchi
Hiroyuki Goto

North America
Email Support

President
Manager

1.800.674.8375
support@scriptsasia.com

1

Presentation
Moderator: We have come to the appointed time, so we will now hold the financial results briefing of B-Lot
Company Limited for the fiscal year ended December 2019.
First of all, I would like to introduce two persons who have come today from The Company. We have here
Mr. Makoto Miyauchi, President. This is Mr. Hiroyuki Goto, Manager of the Corporate Planning Department,
Corporate Administration Division.
Today, President Miyauchi will talk about The Company’s financial results. After his explanations, we willtake time to answer questions.
Now, let’s begin.
Miyauchi: Good morning. I am Miyauchi. We would like to thank you for coming to our financial results
briefing for the fiscal year ended December 2019 today despite your busy schedule.
Let me now discuss our financial results according to the materials you have on hand.

This is the page of my greeting. What we felt in 2019 was that the real estate market remained active.
However, we also felt subtle changes. We felt that there was a difference between the companies trusted
by our business partners and financial institutions, and the companies that are not, unfortunately.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

2Naturally, we would like to do more for the former. When things change, we come back to thefundamentals, and we will focus on two things.
We will "sincerely and faithfully engage in each project" and "each one of us will be particular about results
as a professional." That is a given. However, I think it is necessary to return to the basics when thesechanges occur, and to look back at the work and the company we are running. By repeating this basic
process, I believe we can achieve stable growth and evolve into a company with a strong businessfoundation.

This page is about rapid growth through business development that precedes trends in businessperformance and the needs of the times. You can see that sales and net income have consistently increased
since our founding in 2008.
There are two QR codes at the bottom of this page. We hope you will watch the videos when you have time.
They are entitled B-Lot Channel and Progress of B-Lot.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

3This page is about our decision to increase the dividend while taking into account shareholder returns andinternal reserves. While it will depend on the resolution made at the General Meeting of Shareholders in
March of this year, we would like to implement a dividend payout ratio of 20% and a year-end dividend of
JPY60 per share based on our financial results in fiscal year ended December 2019.
As shown at the bottom right of this page, we have distributed the QUO Card as a shareholder benefit. Total
dividends and shareholder benefits, as shown in the upper right, yielded 3.44% at the time of the purchaseof 100 shares in the fiscal year ended December 2019. We also want to somehow reward our shareholders. I
don't know whether the results have been achieved, but the number of shareholders is at the bottom left.
The number has increased approximately 10 times since the IPO to nearly 5,000.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

4

It says I. Overview of financial results and descriptions. As shown at the bottom right of this page, thismaterial consists of four major items.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

5

First, I would like to explain the first item, which is the overview of our financial results.
This is the page titled I-1. Summary. There are four key points in our financial results for the fiscal year
ended December 2019.
The first point is that sales and profits increased for the ninth consecutive year. Consolidated net income
rose 23.9% YoY.
The second point is that the balance of real estate for sale (including work in process) reached a record highof JPY19.9 billion. Our extensive track record and network have enabled us to make steady progress in ourpurchasing activities.
The third point is that we sold four properties simultaneously. This is the highest transaction value ever for
us. These transactions have contributed to our performance. We aim to diversify our sales methods andexpand project opportunities.
The fourth point is that we will explore new business areas and aim for synergies with existing businesses.
We have realized business expansion by building very strong relationships with a variety of partnercompanies.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

6This is I-2, the consolidated financial highlights. We achieved a 20% growth in net income, which is a key
performance indicator for B-Lot Company Limited.
The graph on the left shows sales. It rose 24.0% YoY to JPY25.130 billion. The one in the middle shows
ordinary income. It rose 24.4% YoY to JPY3.525 million. At the rightmost is net income. It is enclosed in a redbox, which means that it is the most important value for us. It rose 23.9% YoY to JPY2.428 million.
In all cases, the increase was 1.8 times or 1.9 times over three years.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

7This page is titled I-3, the consolidated P/L and B/S summary. The Investment Development and Consulting
business drove profit growth.
First, let’s discuss the left half. This is a summary of our consolidated P/L. First, I want to look at the sales of
our three businesses. Sales in Real Estate Investment and Development in number two has increased
overwhelmingly. In this business, we actually sell real estate, so sales significantly increase every year.
If you look at the lower section, we have the operating income for each of our three businesses. Although
the balance is better than sales, Real Estate Investment and Development is a very large figure here as well.
It manifests a significant increase of 28.2% over the previous fiscal year.
However, if you look at Real Estate Consulting in number three, its operating income has also nearly
doubled. In addition, Real Estate Management in number three has ended with a decline in profits.
Please look at the right half. It is a summary of our consolidated B/S. First of all, in terms of assets, there wasa 38.3% increase to JPY33.555 billion. The majority of these assets are current assets. The majority ofcurrent assets are real estate for sale and cash and deposits.
Now, please look at liabilities. Our liabilities increased 39.2% to JPY25.401 billion. Our balance sheet ischaracterized by the fact that, every fiscal year, our assets are largely current assets, while our liabilities arelargely dependent on fixed liabilities and long-term borrowings. However, I think you can see the increase incurrent liabilities in the fiscal year ended December 2019.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

8

Of the more than JPY11 billion in current liabilities, more than JPY3 billion is unsecured short-term working
capital. Therefore, you can see that we continue to rely on medium to long-term borrowings for financing
related to our main business, which involves obtaining loans backed by real estate when acquiring realestate.
Our net assets increased by 35.3% to JPY8.154 million.

This is I-4. Reference data. As this is a reference, I will only explain a little bit.
On the bottom left, the shareholders' equity ratio was 24.3% in the fiscal year ended December 2019. In
addition, the ROW/ROA, or profit margin, on the right half is extremely high in the industry and we areproud of that.
From here on out, I will go into the second major item, which is the overview of our business. I will explain
our financial results of each of our businesses in detail.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

9This is II-1. Real Estate Investments and Development business. This business is engaged in the revitalizationand development of used real estate, which is our main business.
Please refer to the graph at the top left. You can see that both sales and profits are growing.
Next, please look at the graph at the bottom left. This graph shows changes in shareholders' equity and realestate for sale. With equity, shown in pink, the arrows indicate its increasing trend. Although this trend ofgrowth lags one period behind, I think you can see that there is a similar trend that is directly linked to theincrease in real estate for sale.
If you return to the graph at the top left, such a trend can also be seen in the increase in sales in thisbusiness. In other words, if the shareholders' equity increases, it brings about a synergistic effect in that
there will be an increase in real estate for sale and an increase in sales in this business, even though there isa one-year delay.
Please see the upper right. It is a pie chart showing a breakdown of inventory by use. The trend remained
unchanged from fiscal year ended December 2018. As of the end of December 2019, for example,
inventories of residential and condominium in green, or hotels in purple stood out. You can also see that we
continue to invest in real estate for a variety of uses.
In the lower right, I think that strengthening collaboration with financial institutions and securing flexible
funds are the most distinguishing features of the fiscal year ended December 2019.
There are two elements that have to do with this. The first is syndicated loans based on commitment line
agreements totaling JPY4.3 billion. Until the autumn of last year, we had a commitment line of JPY3 billion,
SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

10but at the time of renewal, it jumped about one and a half times higher to JPY4.3 billion, and we got it from
14 financial institutions.
Next is the second element, which is the amount of unsecured working capital that increased significantly.
Excluding the first commitment line of JPY4.3 billion, we borrowed JPY4.5 billion in unsecured working
capital at the end of December 2019.
By the turn of the fiscal year ending December 2020, we borrowed JPY2 billion from The Shimane Bank, Ltd.
in January. In the first and second, we secured a considerable amount of unsecured working capital, and weflexibly use this for expeditious purchases and for purchasing large-scale properties.

I would like to report on four topics on this page that are related to Real Estate Investment andDevelopment business.
First, we have set a new record in sales at approximately JPY8 billion in total. As I mentioned earlier, wehave sold four properties en bloc. We have provided photos of those four properties, but as you can see,
there are some properties that we developed and others that we revived. We have been acquiring a few
pieces, but if we put all four properties together, they will form a considerable size. You can also see thatthe locations and uses are dispersed.
SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

11When properties accumulate like this, high-quality institutional investors will be interested in making
investments. We intend to use the bulk method of selling multiple properties in combination as one of our
methods in the future to deepen our business with leading institutional investors.

This is page is about succeeding in medium to long-term M&A projects.
First, please refer to number one. In 2017, we turned Viento Creation, a company that owns and operates
capsule hotels in Tokyo’s Ebisu and Gotanda areas, into a subsidiary. Rather than simply buying real estate,
we actually bought a real estate company. We not only revitalized real estate, but in November last year, we
also sold the Ebisu property、 following commercialization in a bid to develop the companies themselvesand have them become a member of the Group.
As seen in the photograph showing real estate rehabilitation, we are undertaking a considerably large-scaleconstruction project, including the construction of a new sauna. As a result, we were able to make a large
profit on the sale of the Ebisu capsule hotel. We continue to operate the Gotanda property.
As stated at the bottom, there are a large number of small and medium-sized enterprises, and I think there
are many managers who are concerned about business succession. As for B-Lot Company Limited, we would
like to actively conduct M&A and link it to business expansion.
SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

12This is mapping out differentiation through concepts and acquiring accommodation facilities. They say that
there has been an oversupply of lodging facilities nowadays, but I think there are always business
opportunities there. That is, we will invest in hotels that have different concepts from other hotels.
Please refer to the left. This is a residential-type hotel where you can stay as if you live there. It is a newhotel in Sapporo, but please look at the photo. It has rooms with a kitchen or rooms with four beds. The
facility is where families and groups of six or eight people can stay medium to long term. When it was
acquired by B-Lot Company Limited, it was a popular hotel with an average occupancy rate of 80%.
Next, please look at the right half. There is a statement that says, “Play wisely like an OWL”. We acquired
three hostels from the same operating company last year. These are entertainment-oriented
accommodation facilities where you can talk about traveling and food all night since you are already in town
anyway.
The hostel in Tokyo’s Shibuya area at the leftmost already opened in 2017, and boasts an extremely highaverage occupancy rate of 90%.
We have also acquired hotels in Kyoto and Sapporo that will begin to be operated by the same operatingcompany in March and June, respectively.
We are expanding our lineup of such appealing products.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

13This is our product lineup. Properties to be sold in the future. This is an introduction to properties that werecently developed and revived, or are in the process of revitalization.
From the top left are a condominium in Fukuoka, the one in the middle at the top is a condominium in
Sendagi, Tokyo, the one on the top right is a condominium in Nagoya, the one at the bottom left is a
condominium in Yanagawa, Fukuoka, and the one at the bottom right is a nursing care facility in Kamakura.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

14This is II-2. The Real Estate Consulting business. It is our second business. Here, we are engaged in realestate brokerage, consulting, and sales agency services for newly built condominiums.
Although both sales and profits in this business are growing, I think you can see that the growth in profits isparticularly large.
The main reason for the increase in sales and profits was the significant increase in the number of deliveriesof commissioned sales projects in the business of sales agency services for new condominiums that I
mentioned earlier.
We also broker M&A deals. I mentioned earlier that we conduct M&A, but we also act as an intermediaryfor M&A. We are also seeing an increase in commissioned projects for various real estate businesses.
If you look at the right half, this is a good example of the M&A intermediation that I just mentioned. This isan example of us brokering the buy and sell of real estate companies, not the brokering of the buy and sellof real estate. There was a company that owned the four condominiums shown in the photo, and the owner
was planning to get sold as a company.
So, we have found a customer interested in purchasing the company, and they ended up actually buying it.
We helped in building a property management company toward effective asset formation for the purchaser.
In addition, it was not a simple sale or purchase of real estate, but the sale or purchase of a company, so wehave been able to smoothly execute the sale in cooperation with such professionals as lawyers and certified
public tax accountants.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

15

While there are talks about the sale and purchase of companies like this, there is also an increase in diverse
needs, such as talks about diversification, inheritance, or asset replacement. We have established aconsulting system that can respond to these issues.

This is II-3. The Real Estate Management business. It is our third business, where we are engaged in realestate management, real estate fund management, and the collection of rent income.
In this business, sales are increasing, but operating income is decreasing. The factors behind the increase insales and the decrease in profits are on the lower left. First of all, sales of the group of golf course
management company T&K Incorporated, which was acquired in the fiscal year that ended December 2018,
contributed significantly to the full year's increase in sales.
The decline in profits was due in part to the excessive progress in the sale of real estate for sale and thedecline in rent income.
On the other hand, as described in number two, the number of Asset Management (AM), and Property
Management (PM) projects entrusted to is steadily increasing, and I think that will lead to stable earnings in
the future.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

16

We have provided two good examples in this business. At the upper right is Wakasu Golf Links, which has
been commissioned to us by T&K Incorporated and where we are assigned as the designated manager by
the Tokyo Metropolitan Government.
The hotel in the lower right is hotel in Otaru that B-Lot Company Limited developed and opened. We soldthe property last year, but we have continued to be entrusted with its asset management and property
management by the buyer.
Through these examples, we intend to continue our efforts to create communities and increase value.

This is a section titled “Close up!”, in regards to social demands on the Company toward long-termsustainable growth and stability. From here, I want to discuss three things that will lead us to the future.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

17This page is about creating a new real estate investment market towards more secure asset formation.
As we have disclosed recently, B-Lot Crowd Funding, our real estate investment-type crowdfunding business,entered into a business alliance with SBI SECURITIES Co., Ltd. in this business. SBI SECURITIES Co., Ltd. has awide customer base, with more than 5.13 million online accounts. It also has a strong network with local
financial institutions.
B-Lot Company Limited has a wealth of real estate transactions with investors and wealthy individuals. In
addition, The Company possesses a wide variety of income-generating real estate know-how. By combining
these two companies, we hope to provide outstanding services.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

18This page is about the medium to long-term, continuing to aggressively expand M&A projects in the future.
Since 2016, we have conducted approximately one M&A deal each year. As for B-Lot Company Limited, wewant to make use of our financial strength and name recognition of the first section of the Tokyo Stock
Exchange, teamwork management that leverages the individuality of employees, and speedy decisionmaking.
Shareholders who intend to sell a company may consider selling the company for the benefit of conversion
into liquid funds, elimination of personal guarantees, resolving the successor problem with theunderstanding of employees, continuing and expanding the business, and further developing the company.
At B-Lot Company Limited, we intend to pursue M&A with the aim of achieving stable earnings in themedium to long-term.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

19

Last year, we acquired 50% of the company called Yokohama Seien. This company is responsible for theoperation of funeral homes and the administration of a columbarium.
Currently, we are renovating the funeral halls and the columbarium building. Mr. Kengo Kuma, a world-classarchitect, took charge of the design. The modern and warm space designed by Kengo Kuma is scheduled toreopen after renovations this summer.
In addition to renovating the building, we would like to transform the meals served in the memorial services
and other events into wonderful meals through the supervision of Tsutomu Ochiai, a master in Italiancuisine, and Masahiro Kasahara, an expert in Japanese cuisine.
With the help of these masters, we intend to create new products, such as next-generation funeral halls, thecabin, and columbaria.
The third major item is our earnings forecast.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

20This page is titled III-1. The consolidated full-year earnings forecast and medium-term management plan.
Our business results for the fiscal year ended December 2019 are as shown here. As you can see on the top
right, in FY2020 ending December 2020, we intend to increase net sales by 19.4% to JPY30 billion. At thebottom, you can see that we want to increase net income attributable to our most important parent
company shareholders by 17.1% to JPY2.843 million.
Please see the graph at the bottom right of this page. It is the trend in our net income, and the light blue
colors are the initial forecasts for the fiscal year. On the other hand, the figures in blue indicate our actual
results. We have come to record a net income that exceeded our initial forecast for each fiscal year. Even in
the fiscal year ending December 2020, we are working hard to surpass the net profit set forth here.
Next is our fourth major item. This is for reference, as shown in the title, so please take a look at it when you
have time.
As I have explained, in FY2019 ended December 2019, both our sales and net income grew significantly. In
the fiscal year ending December 2020, we want to continue growing with your warm guidance and support.
In addition, we would like to have a sense of stability that will prevent us from losing in any market situation.
We would like to ask for your continued support.
This ends my explanation, so I will take your questions now. Thanks.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

21

Question & Answer

Moderator: Thank you. Now, we will start the question and answer session. Please raise your hand if you
have a question. A staffer will bring a microphone to you.
The IR Meeting is scheduled to be published in full, including the question-and-answer section. Therefore, if
you say your name or your company’s name when you ask your question, it will be disclosed as is. If you
want anonymity, you don’t really have to give your name. Let’s begin.
Participant: Thanks for your explanation. I have two questions.
First, I want to ask for your thoughts in relation to hotels and accommodation facilities. While your company
has always been raising your business results in this area, there are real concerns now, such as theoversupply situation that you mentioned earlier, and the coronavirus issue just recently. I think that theeffect will not be entirely zero because you have changed the concept slightly in long-term stay and capsulehotels, but are you fighting bravely compared to ordinary budget hotels?
The second point is about the diversification of customers. It seems that you have different kinds ofcustomers, such as bulk institutional investors and crowdfunding companies. While your company has agood track record in the past, I think you had quite a lot of overseas investors, too. I would like to ask you
for some additional information about this matter, including your current stance and how overseas
investors think about real estate investment in Japan right now. Thank you very much.
Miyauchi: Thanks for your questions. You asked two points.
Let me start with the first question. Even though hotels are said to be in a state of oversupply, we are coping
by changing our concept. I think your question is about what kind of investment plans we are considering.
Over the past four to five years, we have focused our investment on hotels and accommodation facilities.
On the other hand, we are obviously paying attention to trends in demand and supply, so we are carefully
considering what type of property we would like to invest in.
At present, I believe that there is certainly an oversupply in large cities. Nevertheless, not everybody will
stay at the same hotel. Sometimes people can be drawn if you are a hotel with a different concept. We will
not limit ourselves to concepts, as we think that we can find places where there is a gap between supply anddemand if we go to a different location.
Indeed, there is no doubt that we see hotels as investment destinations where we are carefully investing.
However, it does not mean that we don’t see it as a business at all.
In addition, we are not into hotels only. So, within the wide range of investments, I think we may be able fix
our target on places that we think are hot right now.
Today, for example, if this town has very good real estate properties, we will set our aim there and shift toplaces that can be of good use. The same is true with the price range. I think we are a company that canchange our targets flexibly from a broad range of investments if we think that a property will move if its
price is less than a certain price or more than a certain price.
We want to find and invest in opportunities in hotels, but in a careful manner.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

22

I think your second question is how we view sales to overseas investors amid the diversification of sales.
Simply put, we are not really conscious about whether the investor is from Japan or overseas. Rather than
figuring out where to focus our sales, we go for good customers who can do good business with us over the
medium to long-term.
It need not be said that since we sell real estate, the most important thing for us is a customer who will buy
properties at a good price. And not only that, we are also looking for customers who want to, can staypartners with us for a long time as we want to continue with the company for a long time. If there is a good
customer, we will go anywhere to do business with that customer.
As a result, we had sales to overseas customers in the past year as well. However, even though they arecalled overseas customers, there are many times when an individual from overseas will buy under his or her
name, buy through a corporation, or set up a company in Japan and then buy properties.
For example, we sold to a Japanese corporation last year, but behind that company were shareholders who
are foreign customers. Although it is difficult to state in figures, we will continue to actively promote sales tooverseas customers. To this end, we are reinforcing our personnel who can speak not only in English, butalso in Chinese. We will continue to actively serve overseas customers. Thank you very much.
Participant: Thank you.
Moderator: Thanks. Next, please ask your questions.
It does not look like there is anyone else with a question. So, just in case, is there any additional matter yourcompany wants to discuss?
Miyauchi: You have come all the way here, so please, any question will be accepted.
Fujimoto: My name is Fujimoto and I am from FISCO Ltd. Thanks for today.
In line with that question, I want to ask about sales to institutional investors. What are their attributes,
beside their individual names, and what kind of institutional investors were they sold to? Please answer
within the scope you’re allowed to talk about them.
Miyauchi: Thanks for your question. I think you’re asking about what kind of institutional investors we have.
Is this about the case in which we sold four properties altogether?
It happened to be a major Japanese institutional investor. It is a financial investor. We are not specificallyfocused on the financial sector or on Japanese investors. It’s just that such a customer appeared. Listed
REITs in Japan, unlisted REITs, and overseas institutional investors are also doing business with us, so wewould like to do business with good customers no matter who they are.
Moderator: Thanks. Next question.
Participant: Thanks for your explanation. With today’s explanations, I honestly felt that for your company,
your strengths are procuring funds and engaging in flexible fund procurement based on the trust you havecultivated over the years, making quick investment decisions, and comparing and purchasing various assets.
Thank you very much.
As for my question, I would like to ask a question that you can answer within the allowed scope. When you
answered the question earlier, you talked about asset classes that were attracting attention, in terms of
their flexible amount of money and liquidity. I would like to ask you what kind of assets you are paying
SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

23

attention to, given that excessive competition is emerging among hotels and accommodation facilities? The
real estate market is also quite strong and many people think it is peaking.
Miyauchi: Thanks for your question.
Are you asking about our target property, area, and purpose right now?
When it comes to purpose, as I mentioned earlier, we are looking at targets in the hotel area, albeit withsome caution. As for other uses, we are paying particular attention to offices, logistics facilities, and nursing
care facilities. In fact, as we disclosed on the 14th, we have acquired a fairly large office and store property
in Osaka.
We are unable to provide detailed information at the request of the seller, but the total floor area isapproximately 30,000 square meters and the land area is approximately 4,000 square meters on the public
register, which is a fairly large property. I think this is evidence that we are paying attention to suchproperties as offices and stores.
Moderator: Thanks. Next question, please.
Participant: Thanks for your explanation. Looking at the forecasts or the outlook for the current fiscal year, I
want to ask you about how you view each segment, in that do you expect all three to basically post
increases in both sales and profits, or do you think there will be some imbalance? I want to ask you aboutthat matter, including the direction of business segments.
Miyauchi: Thanks for your question. We have not announced the sales and profit forecasts for each of thethree business segments. Nevertheless, as managers, we are naturally trying to achieve growth in all three. I
believe that the growth of all businesses will lead to the growth of The Company as a whole.
With regard to Real Estate Investment and Development, which is the first business segment, it has been thedriving force behind our growth. While focusing on this area, we would like to expand the consulting andmanagement businesses, which are expected to become our second and third sources of stable profits. Even
though it may sound audacious, we would like to see growth in all three segments.
Moderator: Thanks. Next question, please.
And with that, we will now end today's briefing. Thank you very much.
Miyauchi: Thank you very much.
[END]______________
Document Notes
1.
2.

SupportJapan
TollfreePortions of the document where the audio is unclear are marked as follows: [Inaudible].
This document has been translated by SCRIPTS Asia.

03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

24Disclaimer
SCRIPTS Asia reserves the right to edit or modify, at its sole discretion and at any time, the contents of thisdocument and any related materials, and in such case SCRIPTS Asia shall have no obligation to provide
notification of such edits or modifications to any party. This event transcript is based on sources SCRIPTS
Asia believes to be reliable, but the accuracy of this transcript is not guaranteed by us and this transcript
does not purport to be a complete or error-free statement or summary of the available data. Accordingly,
SCRIPTS Asia does not warrant, endorse or guarantee the completeness, accuracy, integrity, or timeliness of
the information contained in this event transcript. This event transcript is published solely for information
purposes, and is not to be construed as financial or other advice or as an offer to sell or the solicitation of an
offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal.
In the public meetings and conference calls upon which SCRIPTS Asia’s event transcripts are based,companies may make projections or other forward-looking statements regarding a variety of matters. Suchforward-looking statements are based upon current expectations and involve risks and uncertainties. Actual
results may differ materially from those stated in any forward-looking statement based on a number ofimportant factors and risks, which are more specifically identified in the applicable company’s most recent
public securities filings. Although the companies may indicate and believe that the assumptions underlying
the forward-looking statements are accurate and reasonable, any of the assumptions could prove inaccurate
or incorrect and, therefore, there can be no assurance that the anticipated outcome described in any
forward-looking statements will be realized.
THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION OF THE APPLICABLE
PUBLIC MEETING OR CONFERENCE CALL. ALTHOUGH SCRIPTS ASIA ENDEAVORS TO PROVIDE ACCURATE
TRANSCRIPTIONS, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE
TRANSCRIPTIONS. IN NO WAY DOES SCRIPTS ASIA OR THE APPLICABLE COMPANY ASSUME ANYRESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BY ANY PARTY BASED UPON ANYEVENT TRANSCRIPT OR OTHER CONTENT PROVIDED BY SCRIPTS ASIA. USERS ARE ADVISED TO REVIEW THE
APPLICABLE COMPANY'S PUBLIC SECURITIES FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER
DECISIONS. THIS EVENT TRANSCRIPT IS PROVIDED ON AN "AS IS" BASIS. SCRIPTS ASIA DISCLAIMS ANY AND
ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWAREERRORS OR DEFECTS, AND ACCURACY, COMPLETENESS, AND NON-INFRINGEMENT.
None of SCRIPTS Asia’s content (including event transcript content) or any part thereof may be modified,
reproduced or distributed in any form by any means, or stored in a database or retrieval system, without theprior written permission of SCRIPTS Asia. SCRIPTS Asia’s content may not be used for any unlawful or
unauthorized purposes.
The content of this document may be edited or revised by SCRIPTS Asia at any time without notice.
Copyright © 2020 SCRIPTS Asia Inc. (“SCRIPTS Asia”), except where explicitly indicated otherwise. All rights
reserved.

SupportJapan
Tollfree03.4405.3160
0120.966.744

North America
Email Support

1.800.674.8375
support@scriptsasia.com

25