Good Com Asset : Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2022

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending October 31, 2022

(Three Months Ended January 31, 2022)

[Japanese GAAP]

March 14, 2022

Company name: Good Com Asset Co.,Ltd.

Stock code: Representative:

3475

Stock Exchange Listing: TSE (1st Section) URL:https://www.goodcomasset.co.jp/

Yoshikazu Nagashima, President and CEO

Contact:

Yoshihiro Kawai, Senior Executive Officer, General Manager, Corporate Planning Division and Manager, Management Division

Tel: [phone]

Scheduled date of filing of Quarterly Report:	March 16, 2022
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	Yes
Holding of quarterly financial results meeting:	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

(Percentages represent year-on-year changes)Net sales

Operating profit

Ordinary profitProfit attributable to owners of parent

Million yen

Three months ended Jan. 31, 2022 1,831

Three months ended Jan. 31, 2021 3,698

% - 57.7

Million yen

(195)

249

% - 64.5

Million yen

(238)

185

% - 72.6

Million yen

(243)

117

% - 65.5

Note: Comprehensive income (million yen)Three months ended Jan. 31, 2022:

(243) (-%)

Three months ended Jan. 31, 2021:

118 (up 64.7%)

Net income per share	Diluted net income per share
Three months ended Jan. 31, 2022 Three months ended Jan. 31, 2021	Yen (17.00) 7.98	Yen - 7.95

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.

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of Jan. 31, 2022 As of Oct. 31, 2021	Million yen 24,992 20,446	Million yen 8,349 9,208	% 33.4 45.0

Reference: Shareholders' equity (million yen) As of Jan. 31, 2022:

8,349

As of Oct. 31, 2021:

9,208

2. Dividends

Dividend per share
1Q-end	2Q-end	3Q-end	Year-end	Total
Fiscal year ended Oct. 31, 2021 Fiscal year ending Oct. 31, 2022	Yen - -	Yen -	Yen -	Yen 43.00	Yen 43.00
Fiscal year ending Oct. 31, 2022 (forecasts)	-	-	53.00	53.00

Note: Revision to the most recently announced dividend forecast: None

Breakdown of year-end dividend per share (forecast) for the fiscal year ending October 31, 2022: 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)

(Percentages represent year-on-year changes)Net sales

Operating profit

Ordinary profitProfit attributable to owners of parentNet income per shareFirst half Full year

Million yen 28,624 42,186

% - -

Million yen 3,196 3,801

% 47.5 10.6

Million yen 2,923 3,417

% 44.1 8.0

Million yen 2,009 2,337

% 45.5 19.1

Yen 140.18 163.08

Notes: 1. Revision to the most recently announced consolidated forecast: None

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.

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.

• (4) Number of outstanding shares (common shares)

  • 1) Number of shares outstanding at the end of the period (including treasury shares)

    As of Jan. 31, 2022: 15,229,200 shares As of Oct. 31, 2021: 15,229,200 shares

  • 2) Number of treasury shares at the end of the period

As of Jan. 31, 2022:

894,426 shares As of Oct. 31, 2021:

894,426 shares

• 3) Average number of shares outstanding during the period

  Three months ended Jan. 31, 2022: 14,334,774 sharesThree months ended Jan. 31, 2021:

14,755,331 sharesThe current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.

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.

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance 2

(1) Explanation of Results of Operations 2

(2) Explanation of Financial Position 3

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements 3

2. Quarterly Consolidated Financial Statements and Notes 4

(1) Quarterly Consolidated Balance Sheet 4

(2) Quarterly Consolidated Statements of Income and Comprehensive Income 5

Quarterly Consolidated Statement of Income

For the Three-month Period 5

Quarterly Consolidated Statement of Comprehensive Income

For the Three-month Period 6

(3) Notes to Quarterly Consolidated Financial Statements 7

Going Concern Assumption 7

Significant Changes in Shareholders' Equity 7

Changes in the Scope of Consolidation or Application of the Equity Method 7

Changes in Accounting Policies 7

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 8

Segment and Other Information 8

Material Subsequent Events 10

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.

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.

(d) Others

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

Assets

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.

Liabilities

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.

Net assets

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.