Good Com Asset : Consolidated Financial Results for the Fiscal Year Ended October 31, 2021

(Percentages represent year-on-yearchanges)

Consolidated Financial Results for the Fiscal Year Ended October 31, 2021

		[Japanese GAAP]
		December 9, 2021
Company name: Good Com Asset Co.,Ltd.	Stock Exchange Listing: TSE (1st Section)
Stock code:	3475	URL: https://www.goodcomasset.co.jp/
Representative:	Yoshikazu Nagashima, President and CEO
Contact:	Yoshihiro Kawai, Senior Executive Officer, General Manager, Corporate Planning Division
	Tel: [phone]

Scheduled date of Annual General Meeting of Shareholders:	January 27, 2022
Scheduled date of payment of dividend:	January 28, 2022
Scheduled date of filing of Annual Securities Report:	January 27, 2022
Preparation of supplementary materials for financial results:	Yes
Holding of 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 Fiscal Year Ended October 31, 2021 (November 1, 2020 - October 31, 2021)

(1) Consolidated results of operations

	Net sales		Operating profit	Ordinary profit	Profit attributable
		to owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Fiscal year ended Oct. 31, 2021	34,216		30.0	3,437	21.5	3,164	19.7	1,962	7.4
Fiscal year ended Oct. 31, 2020	26,323		12.6	2,829	61.2	2,644	60.2	1,826	62.0

Note: Comprehensive income (million yen)	Fiscal year ended Oct. 31, 2021:	1,966	(up 7.8%)
			Fiscal year ended Oct. 31, 2020:	1,824	(up 61.8%)
		Net income per share	Diluted net	Return on	Ordinary profit	Operating profit
		income per share		equity	on total assets	to net sales
			Yen	Yen		%	%	%
	Fiscal year ended Oct. 31, 2021		135.03	134.48		22.3	13.7	10.0
	Fiscal year ended Oct. 31, 2020		124.48	122.40		23.7	12.9	10.7
Reference: Equity in earnings of affiliates (million yen)	Fiscal year ended Oct. 31, 2021: -	Fiscal year ended Oct. 31, 2020: -

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Net income per share and diluted net income per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of Oct. 31, 2021	20,446	9,208	45.0	642.42
As of Oct. 31, 2020	25,915	8,397	32.4	569.19

Reference: Shareholders' equity (million yen) As of Oct. 31, 2021: 9,208As of Oct. 31, 2020: 8,397

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Net assets per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(3) Consolidated cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
	Million yen	Million yen	Million yen	Million yen
Fiscal year ended Oct. 31, 2021	9,700	(90)	(8,234)	7,953
Fiscal year ended Oct. 31, 2020	(6,112)	(582)	8,312	6,578

2. Dividends

			Dividend per share			Total	Payout ratio		Dividend on
					Year-				equity
		1Q-end	2Q-end	3Q-end	Total		dividends	(consolidated)
		end			(consolidated)
		Yen	Yen	Yen	Yen	Yen		Million yen	%	%
	Fiscal year ended Oct. 31, 2020	-	0.00	-	68.00	68.00	501	27.3	6.4
	Fiscal year ended Oct. 31, 2021	-	0.00	-	43.00	43.00	616	31.8	7.0
	Fiscal year ending Oct. 31,	-	0.00	-	53.00	53.00			32.5
	2022 (forecasts)
Notes:

1. The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Dividends per share for the fiscal year ended October 31, 2020 are the actual amounts before the stock split.
2. 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 profit	Profit attributable to	Net income
		owners of parent	per share
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
First half	28,624		45.5	3,196	47.5	2,923	44.1	2,009	45.5	140.18
Full year	42,186		23.3	3,801	10.6	3,417	8.0	2,337	19.1	163.08

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): None
2. Changes in accounting policies and accounting-based estimates, and restatements
3. 1. Changes in accounting policies due to revisions in accounting standards, others: None
   2. Changes in accounting policies other than 1) above: None
   3. Changes in accounting-based estimates: None
   4. Restatements: None
4. Number of outstanding shares (common shares)
5. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of Oct. 31, 2021:	15,229,200 shares	As of Oct. 31, 2020:	15,198,000 shares
2) Number of treasury shares at the end of the period
As of Oct. 31, 2021:	894,426 shares	As of Oct. 31, 2020:	444,426 shares
3) Average number of shares outstanding during the period
Fiscal year ended Oct. 31, 2021:	14,530,328 shares	Fiscal year ended Oct. 31, 2020:	14,672,178 shares

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. The number of outstanding shares (common shares) is calculated as if this stock split had taken place at the beginning of the previous fiscal year.

Reference: Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended October 31, 2021 (November 1, 2020 - October 31, 2021)

(1) Non-consolidated results of operations					(Percentages represent year-on-year changes)
		Net sales	Operating profit		Ordinary profit	Profit
		Million yen	%	Million yen	%		Million yen	%	Million yen	%
	Fiscal year ended Oct. 31, 2021	33,503	29.3	3,456	23.3		3,164	21.4	2,182	21.1
	Fiscal year ended Oct. 31, 2020	25,921	12.4	2,803	61.6		2,606	60.9	1,803	62.8
		Net income per share	Diluted net income per share
			Yen				Yen
	Fiscal year ended Oct. 31, 2021		150.22			149.61
	Fiscal year ended Oct. 31, 2020		122.90			120.84

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Net income per share and diluted net income per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(2) Non-consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of Oct. 31, 2021	20,204	9,314	46.1	649.81
As of Oct. 31, 2020	25,466	8,283	32.5	561.45

Reference: Shareholders' equity (million yen) As of Oct. 31, 2021: 9,314As of Oct. 31, 2020: 8,283

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. Net assets per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

The current financial report is not subject to audit 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. Actual results may differ significantly from these forecasts for a number of factors.

Please refer to "1. Overview of Results of Operations, (4) Outlook" on page 4 for forecast assumptions and notes of caution for usage.

How to view supplementary materials for financial results

The Company plans to hold an online financial results meeting on Thursday, December 9, 2021. Materials to be used 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 FY10/21
Contents of Attachments
1. Overview of Results of Operations	2
(1) Results of Operations	2
(2)	Financial Position	3
(3)	Cash Flows	3
(4)	Outlook	4
(5)	Important Information about Going Concern Assumption	4
2. Basic Approach for the Selection of Accounting Standards	4
3. Consolidated Financial Statements and Notes	5
(1)	Consolidated Balance Sheet	5
(2)	Consolidated Statements of Income and Comprehensive Income	7
	Consolidated Statement of Income	7
	Consolidated Statement of Comprehensive Income	8
(3)	Consolidated Statement of Changes in Equity	9
(4)	Consolidated Statement of Cash Flows	11
(5)	Notes to Consolidated Financial Statements	12
	Going Concern Assumption	12
	Segment and Other Information	12
	Per-share Information	15
	Material Subsequent Events	15

1

Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for FY10/21

1. Overview of Results of Operations

(1) Results of Operations

In the current fiscal year ended October 2021, the Japanese economy remained unpredictable as i t experienced a bumpy ride with fits and starts in the midst of the global spread of the COVID -19 pandemic with no way out in sight. Going forward, we expect the economy to pick up supported by various government policies and progress in COVID-19 vaccinations. Nevertheless, it is necessary to continually monitor the impact of the COVID -19 pandemic, fluctuations in financial and capital markets and other factors.

Japan's market for newly constructed condominiums is the primary business domain of the Good Com Asset Group. During the current fiscal year, the percentage of new condominiums sold in the Tokyo metropolitan area within one month of going on sale was 68.3%, up 3.0% from one year earlier, according to the Real Estate Economic Institute. This percentage was 70.0%, up 7.2%, in Tokyo's 23 wards, the Group's main business area. This is the 70% level generally regarded as a sign of a strong condominium market. This is 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. The occupancy rate of hotels and offices has been declining amid the spread of the COVID -19 pandemic. On the other hand, wholesale sales of condominium buildings have increased significantly because condominiums are safe assets that investors can buy with confidence. We are digitalizing our business by transiting from paper to the web and have started using e-contracts to enhance customer convenience. As a result of these initiatives, net sales and profits reached a new record high.

During the current fiscal year, 1,109 condominium units in 37 buildings were sold and 760 units in 9 buildings were acquired.

Net sales increased 30.0% year on year to 34,216 million yen. Operating profit increased 21.5% to 3,437 million yen and ordinary profit increased 19.7% to 3,164 million yen. Profit attributable to owners of the parent was up 7.4% to 1,962 million yen due to an impairment loss on goodwill resulting from t he consolidation of Room Bank Insure Co., Ltd.

Results by business segment are as follows:

Reportable segment categories are revised from the first quarter of the current fiscal year. For more information, please see the section "3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements (Segment and Other Information)."

Prior-year figures reflect the new segment categories for comparison purposes.

(a) Wholesale

This segment consists of sales of the Genovia series of one-room and family condominiums. During the current fiscal year, 924 condominium units were sold. Specifically, sales of condominium buildings are increasing.

Sales were 26,185 million yen, up 52.1% from one year earlier, and segment profit increased 46.8% to 3,115 million yen.

(b) Retail sales

This segment consists of sales of the Genovia series of one -room and family condominiums to individual investors. During the current fiscal year, 185 condominium units were sold.

Sales were 6,534 million yen, down 17.3% from one year earlier, and segment loss was 141 million yen, compared with profit of 212 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

2

Good Com Asset Co.,Ltd. (3475) Consolidated Financial Results for FY10/21

condominium units was strong and the occupancy rate exceeded 90% at the end of every month. However, earnings were lower due to amortization of goodwill, while there was an increase in sales resulting from the consolidation of Room Bank Insure Co., Ltd. in September 2020.

Sales were 1,545 million yen, up 28.8% from one year earlier, and segment profit decreased 6.3% to 517 million yen.

(d) Good Com Fund

There were no sales of small amount investment units of a real estate fund during the current fiscal year.

Sales were not recorded and segment loss was 77 million yen, compared with a 75 million yen loss one year earlier.

The year-on-year change in sales is not shown because there were no sales.

(2) Financial Position

Total assets decreased 21.1% from the end of the previous fiscal year to 20,446 million yen at the end of the current fiscal year, total liabilities decreased 35.9% to 11,237 million yen and total net assets increased 9.7% to 9,208 million yen. The equity ratio was 45.0%.

(a) Current assets

Current assets decreased 5,283 million yen from the end of the previous fiscal year to 19,652 million yen at the end of the current fiscal year. This was mainly due to a decrease in real estate for sale of 6,923 million yen, while there were increases in cash and deposits of 1,375 million yen and advance payments to suppliers of 271 million yen.

(b) Non-current assets

Non-current assets decreased 185 million yen from the end of the previous fiscal year to 793 million yen. This was mainly due to a decrease in goodwill of 290 million yen.

(c) Current liabilities

Current liabilities decreased 5,689 million yen from the end of the previous fiscal year to 7,236 million yen. This was mainly due to decreases in current portion of long-term borrowings of 4,988 million yen and short-term borrowings of 1,554 million yen, while there was an increase in accrued consumption taxes included in other current liabilities of 727 million yen.

(d) Non-current liabilities

Non-current liabilities decreased 591 million yen from the end of the previous fiscal year to 4,001 million yen mainly due to a 667 million yen decrease in long-term borrowings.

(e) Net assets

Total net assets increased 811 million yen from the end of the previous fiscal year to 9,208 million yen. The main factors include a 501 million yen decrease in retained earnings due to dividend payments and a 656 million yen increase in treasury shares, which were partially offset by a 1, 962 million yen increase in retained earnings due to the booking of profit attributable to owners of parent.

(3) Cash Flows

Cash and cash equivalents (hereinafter, "net cash") at the end of the current fiscal year increased 1,375 million yen, or 20.9%, from the end of the previous fiscal year to 7,953 million yen.

Cash flows by category during the fiscal year is as follows.

Cash flows from operating activities

Net cash provided by operating activities was 9,700 million yen (6,112 million yen used in the previous fiscal year). This was mainly due to a 6,844 million yen decrease in inventories and profit before income taxes of 2,982 million yen.

3