グッドコムアセット（3475） – [Delayed]Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2022

[Japanese GAAP] March 14, 2022 Stock Exchange Listing: TSE (1st Section) URL: https://www.goodcomasset.co.jp/ Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2022 (Three Months Ended January 31, 2022) Company name: Good Com Asset Co.,Ltd. Stock code: 3475 Representative: Yoshikazu Nagashima, President and CEO Contact: Yoshihiro Kawai, Senior Executive Officer, General Manager, Corporate Planning Division and Manager, Management Division Tel: +81-(0)3-5338-0170 Scheduled date of filing of Quarterly Report: Scheduled date of payment of dividend: Preparation of supplementary materials for quarterly financial results: Yes Holding of quarterly financial results meeting: March 16, 2022 – Yes (for analysts and individual investors) (All amounts are rounded down to the nearest million yen) 1. Consolidated Financial Results for the First Quarter (November 1, 2021 – January 31, 2022) of the Fiscal Year Ending October 31, 2022 (1) Consolidated results of operations Net sales Operating profit Ordinary profit Three months ended Jan. 31, 2022 Three months ended Jan. 31, 2021 Note: Comprehensive income (million yen) Million yen 1,831 3,698 % – 57.7 Million yen (195) 249 % Million yen (238) – 185 64.5 Three months ended Jan. 31, 2022: (243) (-%) Three months ended Jan. 31, 2021: 118 (up 64.7%) (Percentages represent year-on-year changes) Profit attributable to owners of parent % Million yen (243) – 117 72.6 % – 65.5 Three months ended Jan. 31, 2022 Three months ended Jan. 31, 2021 Note: Beginning with the first quarter of the fiscal year ending on October 31, 2022, the Company is applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ Statement No. 29, March 31, 2020). Net sales for the first quarter incorporate this accounting standard and year-on-year percentage changes are not shown. Net income per share Diluted net income per share Yen – 7.95 Yen (17.00) 7.98 (2) Consolidated financial position As of Jan. 31, 2022 As of Oct. 31, 2021 Reference: Shareholders’ equity (million yen) As of Jan. 31, 2022: 2. Dividends Million yen 24,992 20,446 Total assets Net assets Equity ratio Million yen 8,349 9,208 8,349 % 33.4 45.0 As of Oct. 31, 2021: 9,208 1Q-end 2Q-end Year-end Total Dividend per share 3Q-end Fiscal year ended Oct. 31, 2021 Fiscal year ending Oct. 31, 2022 Fiscal year ending Oct. 31, 2022 (forecasts) Note: Revision to the most recently announced dividend forecast: None Yen – – Yen – – Yen – – Yen 43.00 53.00 Yen 43.00 53.00 Breakdown of year-end dividend per share (forecast) for the fiscal year ending October 31, 202 2: Ordinary dividend: 50.00 yen; Commemorative dividend to mark 5th anniversary of listing: 3.00 yen 3. Consolidated Forecast for the Fiscal Year Ending October 31, 2022 (November 1, 2021 – October 31, 2022) Net sales Operating profit Ordinary profit % – First half – Full year Notes: 1. Revision to the most recently announced consolidated forecast: None Million yen 28,624 42,186 Million yen 3,196 3,801 Million yen 2,923 3,417 % 47.5 10.6 2. Beginning with the first quarter of the fiscal year ending on October 31, 2022, the Company is applying Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Accordingly, the year-on-year percentage change in net sales before the application of this accounting standard is not shown, but year-on-year percentage changes in operating profit and other profits are shown since the application of this accounting standard has no effect on the figures. (Percentages represent year-on-year changes) Profit attributable to owners of parent Million yen 2,009 2,337 % 45.5 19.1 Net income per share Yen 140.18 163.08 % 44.1 8.0 Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None (2) Application of special accounting methods for presenting quarterly consolidated financial statements: Yes (3) Changes in accounting policies and accounting-based estimates, and restatements 1) Changes in accounting policies due to revisions in accounting standards, others: Yes 2) Changes in accounting policies other than 1) above: None 3) Changes in accounting-based estimates: None 4) Restatements: None Note: Please refer to “2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)” on page 7 for details. As of Jan. 31, 2022: 2) Number of treasury shares at the end of the period 1) Number of shares outstanding at the end of the period (including treasury shares) (4) Number of outstanding shares (common shares) The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms. 3) Average number of shares outstanding during the period Three months ended Jan. 31, 2021: Three months ended Jan. 31, 2022: As of Oct. 31, 2021: As of Oct. 31, 2021: As of Jan. 31, 2022: 15,229,200 shares 14,334,774 shares 894,426 shares 15,229,200 shares 894,426 shares 14,755,331 shares Explanation of appropriate use of earnings forecasts, and other special items Cautionary statement with respect to forward-looking statements Outlook and other forward-looking statements in these materials are based on assumption judged to be valid and information available to the Company’s management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a number of factors. Please refer to “1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 for forecast assumptions and notes of caution for usage. How to view supplementary information at the quarterly financial results meetings The Company plans to hold online financial results meetings on Tuesday, March 15, 2022. Materials distributed at this event will be disclosed at the Timely Disclosure network (TDnet) with this financial report and also be available on the Company’s website. Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 Contents of Attachments 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations (2) Explanation of Financial Position (3) Explanation of Consolidated Forecast and Other Forward-looking Statements 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income For the Three-month Period Quarterly Consolidated Statement of Comprehensive Income For the Three-month Period (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Significant Changes in Shareholders’ Equity Changes in the Scope of Consolidation or Application of the Equity Method Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements Changes in Accounting Policies Segment and Other Information Material Subsequent Events 2 2 3 3 4 4 5 5 6 7 7 7 7 7 8 8 10 1 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 1. Qualitative Information on Quarterly Consolidated Financial Performance (1) Explanation of Results of Operations During the first quarter of the fiscal year ending October 31, 2022, there was a slow recovery of the Japanese economy as more people received COVID-19 vaccinations and for other reasons. However, the economic outlook remains uncertain because of the prolonged U.S.-China trade friction, the emergence of a new COVID-19 variant and other events. Japan’s market for newly constructed condominiums is the primary business domain of the Good Com Asset Group. During the first three months ended January 2022, the percentage of new condominiums sold in the Tokyo metropolitan area within one month of going on sale was 74.9%, according to the Real Estate Economic Institute. This percentage was 72.1% in Tokyo’s 23 wards, the Group’s main business area. This is above the 70% level generally regarded as a sign of a strong condominium market. The percentage sold within one month in the Tokyo metropolitan area was 12.7 points higher than one year earlier mainly because of increasing demand for residences resulting from changes in life styles caused by the COVID-19 crisis. The Good Com Asset Group continued to expand planning, development and sales activities, mainly in Tokyo’s 23 wards, for the Genovia series of condominiums, which consists of the Genovia green veil, Genovia skygarden and Genovia skyrun brands. We also reinforced the customer support framework and strengthened the Genovia brand. During the first quarter, 54 condominium units in 9 buildings were sold. Properties acquired were 151 units in one building. Net sales were 1,831 million yen compared with 3,698 million yen one year earlier. The operating loss was 195 million yen compared with an operating profit of 249 million yen one year earlier, the ordinary loss was 238 million yen compared with an ordinary profit of 185 million yen one year earlier, and the loss attributable to owners of parent was 243 million yen compared with a profit attributable to owners of parent of 117 million yen one year earlier. Beginning with the first quarter of the current fiscal year, the Company has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Due to the application of this standard, first quarter sales were less than in the first quarter of the previous fiscal year. Furthermore, there are no comparisons of sales between the first quarters of the current and prior fiscal years in terms of amounts and percentages of changes. For more information, please see the section “2. Quarterly Consolidated Financial Statements and Notes, ( 3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies).” Results by business segment are as follows: Beginning with the first quarter of the current fiscal year, the Good Com Fund segment has been renamed Others due to the inclusion in this segment of the new consolidated subsidiary Capital Support Consulting Co., Ltd. This subsidiary provides consulting services for initial public offerings and for investor relations and capital policies for listed companies. (a) Wholesale This segment consists of sales of the Genovia series of one-room condominiums to companies and others. During the first quarter, 28 condominium units were sold. Sales were 577 million yen compared with net sales of 1,337 million yen one year earlier, and the segment loss was 65 million yen compared with a profit of 87 million yen one year earlier. (b) Retail sales This segment consists of sales of the Genovia series of one-room and family condominiums to individual investors. During the first quarter, 26 condominium units were sold. 2 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 Sales were 911 million yen compared with net sales of 1,930 million yen one year earlier, and the segment loss was 210 million yen compared with a profit of 33 million yen one year earlier. (c) Real estate management Segment sales were higher as growth in the number of managed condominium buildings and tenant -occupied condominium units was strong and the occupancy rate exceeded 90% at the end of every month of the first quarter. Sales were 343 million yen compared with net sales of 441 million yen one year earlier, and segment profit decreased 37.0% to 87 million yen. This segment consists of two new businesses that are expected to grow. One is consulting for companies planning an initial public offering and for the investor relations and capital policy activities of listed companies. The other business is the Good Com Fund, which sells small amount investment units of a real estate. Sales were 8 million yen compared with no sales one year earlier, and the segment loss was 13 million yen compared with a 14 million yen loss one year earlier. (2) Explanation of Financial Position Total assets increased 4,546 million yen, or 22.2%, from the end of the previous fiscal year to 24,992 million yen at the end of the first quarter of the current fiscal year. This was mainly due to an increase in real estate for sale of 6,342 million yen, while there was a decrease in cash and deposits of 1,911 million yen. Total liabilities increased 5,405 million yen, or 48.1%, from the end of the previous fiscal year to 16,643 million yen. This was mainly due to increases in current portion of long-term borrowings of 4,750 million yen and short-term borrowings of 4,019 million yen, while there were decreases in long-term borrowings of 1,893 million yen, 731 million yen in accrued consumption taxes included in other current liabilities and income taxes payable of 657 million yen. Total net assets decreased 859 million yen, or 9.3%, from the end of the previous fiscal year to 8,349 million yen. The main factors include a 616 million yen decrease in retained earnings due to dividend payments and a 243 million yen decrease in retained earnings due to the booking of profit attributable to owners of parent. Consequently, the equity ratio was 33.4% at the end of the first quarter of the current fiscal year. (3) Explanation of Consolidated Forecast and Other Forward-looking Statements The Company maintains its first-half and full-year consolidated forecasts that were announced in the “Consolidated Financial Results for the Fiscal Year Ended October 31, 2021” on December 9, 2021. (d) Others Assets Liabilities Net assets 3 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 2. Quarterly Consolidated Financial Statements and Notes (1) Quarterly Consolidated Balance Sheet FY10/21 (As of Oct. 31, 2021) First quarter of FY10/22 (As of Jan. 31, 2022) (Thousands of yen) Assets Current assets Cash and deposits Accounts receivable-trade Real estate for sale Real estate for sale in process Advance payments to suppliers Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Total non-current assets Total assets Liabilities Current liabilities Accounts payable for construction contracts Short-term borrowings Current portion of bonds payable Current portion of long-term borrowings Contract liabilities Income taxes payable Provision for bonuses Provision for vacancy warranties Provision for loss on guarantees Other Total current liabilities Non-current liabilities Bonds payable Long-term borrowings Provision for shareholder benefit program Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings 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 Total net assets Total liabilities and net assets 4 7,973,539 – 8,629,314 1,730,842 1,078,522 277,453 (36,758) 19,652,914 80,848 249,805 31,467 281,272 431,268 793,389 20,446,304 165,121 1,935,730 82,000 3,016,834 – 666,380 19,379 163,014 27,533 1,160,312 7,236,306 335,000 3,625,140 7,101 33,797 4,001,038 11,237,345 1,595,342 1,503,842 7,094,234 (986,622) 9,206,796 4,114 (1,951) 2,162 9,208,959 20,446,304 6,061,782 3,036 14,971,552 1,734,853 856,396 661,841 (47,921) 24,241,541 78,446 234,192 31,321 265,513 407,059 751,020 24,992,561 156,524 5,955,430 82,000 7,767,009 90,444 8,801 6,657 – 31,712 458,955 14,557,534 314,000 1,731,437 6,231 33,984 2,085,653 16,643,187 1,595,342 1,503,842 6,234,382 (986,622) 8,346,944 4,355 (1,925) 2,429 8,349,374 24,992,561 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 (2) Quarterly Consolidated Statements of Income and Comprehensive Income (Quarterly Consolidated Statement of Income) (For the Three-month Period) First three months of FY10/21 (Nov. 1, 2020 – Jan. 31, 2021) First three months of FY10/22 (Nov. 1, 2021 – Jan. 31, 2022) (Thousands of yen) Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit (loss) Non-operating income Interest income Dividend income Commission income Penalty income Other Total non-operating income Non-operating expenses Interest expenses Commission expenses Other Total non-operating expenses Ordinary profit (loss) Profit (loss) before income taxes Income taxes Profit (loss) Profit (loss) attributable to owners of parent 3,698,202 2,896,015 802,186 552,844 249,342 9 210 2,685 9,271 2,286 14,462 58,873 19,140 658 78,671 185,133 185,133 67,319 117,814 117,814 1,831,022 1,417,619 413,403 609,087 (195,683) 6 387 4,050 8,256 1,998 14,700 32,569 24,084 729 57,383 (238,367) (238,367) 5,361 (243,728) (243,728) 5 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 (Quarterly Consolidated Statement of Comprehensive Income) (For the Three-month Period) Profit (loss) Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests First three months of FY10/21 (Nov. 1, 2020 – Jan. 31, 2021) First three months of FY10/22 (Nov. 1, 2021 – Jan. 31, 2022) (Thousands of yen) 117,814 162 152 315 – 118,129 118,129 (243,728) 241 25 266 – (243,461) (243,461) 6 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 (3) Notes to Quarterly Consolidated Financial Statements Going Concern Assumption Not applicable. Significant Changes in Shareholders’ Equity Not applicable. Changes in the Scope of Consolidation or Application of the Equity Method Beginning with the first quarter of the current fiscal year, Capital Support Consulting Co., Ltd. is included in the scope of consolidation because of the importance of this company with regard to the consolidated financial statements. Changes in Accounting Policies Application of the Accounting Standards for Revenue Recognition The Company is applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the first quarter of the current fiscal year. Based on these standards, revenue expected to be received in exchange for the provision of goods and services is recognized when the control of the goods and services is transferred to customers. The main changes resulting from the application of the Accounting Standard for Revenue Recognition are as follows: (1) Recognition of revenue for payments to customers Some payments to customers that were previously included in selling, general and administrative expenses, such as additions to the allowance for vacancy warranties and sales promotion expenses, are instead deducted from sales due to the new revenue recognition standard. For the application of the Accounting Standard for Revenue Recognition, in accordance wit h the transitional measures in the proviso to Paragraph 84 of this standard, the cumulative effect of the retrospective application of the new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or subtr acted from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard is then applied beginning with this amount of retained earnings. As a result, net sales decreased 25 million yen and selling, general and administrative expenses decreased 25 million yen but there is no effect on operating loss, ordinary loss and loss before income taxes. In addition, there is no impact on the balance of retained earnings at the beginning of the current fiscal year. Furthermore, in accordance with the transitional measures prescribed in Paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), the Company has not presented information on revenue from contracts with customers broken down for the first quarter of the previous fiscal year. Application of the Accounting Standards for Measurement of Fair Value The Company has applied the Accounting Standard for Measurement of Fair Value (ASBJ Statement No. 30, July 4, 2019) and other standards from the beginning of the first quarter of the current fiscal year, and has applied the new accounting policies set forth by the Accounting Standard for Measurement of Fair Value, etc. prospectively in accordance with the transitional measures prescribed in Paragraph 19 of the Accounting Standard for Measurement of Fair Value and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of the application of these standards on the quarterly consolidated financial statements. 7 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements Calculation of tax expense The tax expense was calculated by first reasonably estimating the effective tax rate after the application of tax effect accounting with respect to profit (loss) before income taxes during the current fiscal year, and multiplying that rate by the quarterly profit (loss) before income taxes. However, the Company uses legally stipulated effective tax rates to calculate tax expenses when the use of estimated tax rates produces a clearly irrational result. Segment and Other Information Segment Information I. First three months of FY10/21 (Nov. 1, 2020 – Jan. 31, 2021) 1. Information related to net sales and profit or loss for each reportable segment Net sales External sales Inter-segment sales and transfers Wholesale Retail sales Others Reportable segment Real estate management 1,337,083 1,930,904 – – 430,213 11,566 441,780 138,116 Total 1,337,083 1,930,904 Segment profit (loss) 87,761 33,769 (14,678) 2. Reconciliation of the amount shown in the quarterly consolidated statement of income with total pro fit or loss for (Thousands of yen) Total 3,698,202 11,566 3,709,768 244,969 – – – Operating profit on the quarterly consolidated statement of income 3. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Impairment losses related to non-current assets (Thousands of yen) Amounts 244,969 4,373 249,342 reportable segments Profit Total for reportable segments Elimination of inter-segment transactions Not applicable. Significant change in goodwill Not applicable. Significant gain on bargain purchase Not applicable. 8 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 II. First three months of FY10/22 (Nov. 1, 2021 – Jan. 31, 2022) 1. Information related to net sales and profit or loss for each reportable segment Reportable segment Wholesale Retail sales Real estate management Others Net sales External sales Inter-segment sales and transfers Total Segment profit (loss) – – 577,080 911,181 577,080 (65,632) 911,181 (210,889) 334,630 8,370 343,001 87,073 (Thousands of yen) Total 1,831,022 9,170 1,840,193 8,130 800 8,930 (13,230) (202,680) 2. Reconciliation of the amount shown in the quarterly consolidated statement of income with total profit or loss for reportable segments Profit Total for reportable segments Elimination of inter-segment transactions Operating loss on the quarterly consolidated statement of income 3. Information related to changes in reportable segments, etc. (Thousands of yen) Amounts (202,680) 6,996 (195,683) Beginning with the first quarter of FY10/22, the Good Com Fund segment has been renamed Others due to the inclusion in this segment of the new consolidated subsidiary Capital Support Consulting Co., Ltd. This subsidiary provides consulting services for initial public offerings and for investor relations and capital policies for listed companies. Accordingly, the segment information for the first three months of FY10/21 is also presented using the changed names. As described in Changes in Accounting Policies, Good Com Asset has applied the Accounting Standard for Revenue Recognition from the beginning of the first quarter of FY10/22 and changed the accounting method for revenue recognition. Accordingly, the method for calculating net sales, profit or loss for each reportable segment has been changed as well. Compared with the previous method, sales in wholesale and retail sales for the first quarter of FY10/22 decreased by 13 million yen and 11 million yen respectively, but there is no impact on segment profit or loss. 4. Information related to impairment losses on non-current assets or goodwill, etc. for each reportable segment Impairment losses related to non-current assets Not applicable. Significant change in goodwill Not applicable. Significant gain on bargain purchase Not applicable. 9 Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for the First Quarter of FY10/22 Material Subsequent Events Disposal of treasury shares for restricted stock compensation On January 27, 2022, the Board of Directors of the Company approved a resolution to dispose of treasury shares for use as restricted stock compensation. The disposal of treasury shares is as follows. 1. Summary of disposal of treasury shares (1) Deadline (3) Price February 25, 2022 1,064 yen per share (2) Type and number of shares Common shares of Good Com Asset: 16,307 shares (4) Total proceeds (5) Recipients of restricted stock and number of shares to be allotted 17,350,648 yen 3 directors of Good Com Asset (excluding outside directors): 11,723 shares 4 directors of a subsidiary of Good Com Asset: 4,584 shares 2. Purposes and reasons for the disposal of treasury shares At the shareholders meeting held on December 9, 2021, shareholders approved a resolution to establish a restricted stock compensation program for the purposes of giving eligible directors an incentive for achieving the sustained growth of Board of Directors of the Company’s corporate value and of further aligning the interests of eligible directors with the interests of shareholders. Directors who are eligible to receive this remuneration are the directors of Board of Directors of the Company other than outside directors and the directors of the subsidiaries of Board of Directors of the Company. In addition, at the 16th Ordinary General Meeting of Shareholders held on January 27, 2022, the Company resolved to pay monetary compensation claims of up to 60 million yen per year to the eligible directors as monetary compensation to be used as assets for the acquisition of restricted stock under this plan. The Company’s Board of Directors has also resolved the issuance or disposal of up to 50,000 shares of the Company’s common shares and a 40-year restricted period for the transfer of the restricted stock. Procurement of funds On February 18, 2022, the Board of Directors of the Company approved a resolution to use loans as follows to procure funds for the acquisition of real estate for sale. 1. Purpose of the loans Procurement of funds for the acquisition of real estate for sale 2. Summary of the loans (1) Lender (2) Amount borrowed (3) Borrowing date (4) Borrowing period (5) Location of property acquired (6) Collateral First loan Second loan 9,100 million yen February 28, 2022 MUFG Bank, Ltd. 4,000 million yen August 31, 2022 One month Taito-ku, Tokyo (2 properties) Sumida-ku, Tokyo (2 properties) Katsushika-ku, Tokyo (1 property) Kawasaki-shi, Kanagawa (1 property) Yes Yes One month Taito-ku, Tokyo (1 property) Sumida-ku, Tokyo (1 property) Yokohama-shi, Kanagawa (1 property) This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been prepar ed in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers who prefer an English translation. 10