Good Com Asset : Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 31, 2021

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending October 31, 2021

(Nine Months Ended July 31, 2021)

		[Japanese GAAP]
		September 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 filing of Quarterly Report:	September 13, 2021
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 Third Quarter (November 1, 2020 - July 31, 2021) of the Fiscal Year Ending October 31, 2021

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
Nine months ended Jul. 31, 2021	27,069		29.2	2,707	9.0	2,495	5.6	1,692	5.8
Nine months ended Jul. 31, 2020	20,955		28.7	2,483	116.9	2,362	124.1	1,599	122.6

Note: Comprehensive income (million yen)	Nine months ended Jul. 31, 2021:	1,695	(up 6.2%)
		Nine months ended Jul. 31, 2020:	1,596	(up 122.3%)
	Net income per share	Diluted net income per share
		Yen		Yen
Nine months ended Jul. 31, 2021		115.91		115.42
Nine months ended Jul. 31, 2020		109.19		106.96

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
		Million yen		Million yen	%
As of Jul. 31, 2021		19,292		8,935	46.3
As of Oct. 31, 2020		25,915		8,397	32.4
Reference: Shareholders' equity (million yen)	As of Jul. 31, 2021:	8,935	As of Oct. 31, 2020: 8,397

2. Dividends

				Dividend per share
	1Q-end	2Q-end		3Q-end		Year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended Oct. 31, 2020	-		0.00		-			68.00	68.00
Fiscal year ending Oct. 31, 2021	-		0.00		-
Fiscal year ending Oct. 31, 2021 (forecasts)								41.00	41.00

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

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.

3. Consolidated Forecast for the Fiscal Year Ending October 31, 2021 (November 1, 2020 - October 31, 2021)

(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
Full year	38,000-		44.4-	3,500-	23.7-	3,300-	24.8-	2,251-	23.2-	154.94-
41,876		59.1	3,800	34.3	3,600	36.1	2,455	34.4	168.98

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

2. Ranges for the consolidated forecast for the fiscal year ending October 31, 2021 have been announced.

3. The Company's Board of Directors approved a resolution on April 9, 2021 to repurchase its own shares. Net income per share forecast has been adjusted to reflect the stock repurchase.

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
4. 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
5. Number of outstanding shares (common shares)
6. 1. Number of shares outstanding at the end of the period (including treasury shares)

As of Jul. 31, 2021:	15,210,800 shares	As of Oct. 31, 2020:	15,198,000 shares
2) Number of treasury shares at the end of the period
As of Jul. 31, 2021:	894,426 shares	As of Oct. 31, 2020:	444,426 shares
3) Average number of shares outstanding during the period
Nine months ended Jul. 31, 2021:	14,599,815 shares	Nine months ended Jul. 31, 2020:	14,649,062 shares

Note: The Company conducted a 2-for-1 common stock split effective on November 1, 2020. The number of shares outstanding at the end of the period, the number of treasury shares at the end of the period and the average number of shares outstanding during the period are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

The 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 an online financial results meeting on Friday, September 10, 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 the Third Quarter of FY10/21
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 Nine-month Period	5
	Quarterly Consolidated Statement of Comprehensive Income
	For the Nine-month Period	6
(3)	Notes to Quarterly Consolidated Financial Statements	7
	Going Concern Assumption	7
	Significant Changes in Shareholders' Equity	7
	Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements	7
	Segment and Other Information	7

1

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

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

During the first nine months of the fiscal year ending October 31, 2021, stagnated economic activities in Japan started to recover due to progress in COVID-19 vaccinations and many governmental policies. However, the prospect of bringing the pandemic under control is unclear due to the impact of the repeated declarations of a state of emergency in response to the recurring resurgence of COVID -19 infections all over Japan. As a result, the outlook for the Japanese economy remains uncertain.

Japan's market for newly constructed condominiums is the primary business domain of the Good Com Asset Group. During the first nine months ended July 2021, the percentage of new condominiums sold in the Tokyo metropolitan area within one month of going on sale was 67.7%, according to the Real Estate Economic Institute. However, this percentage was 70.4% 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. T he percentage sold within one month in Tokyo's 23 wards was 9.9% 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 nine months, 877 condominium units in 28 buildings were sold. Properties acquired were 499 units in seven buildings.

Net sales increased 29.2% year on year to 27,069 million yen. Operating profit increased 9.0% to 2,707 million yen, ordinary profit increased 5.6% to 2,495 million yen and profit attributable to owners of parent was up 5.8% to 1,692 million yen.

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 "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements (Segment and Other Information)."

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

(a) Retail sales

This segment consists of sales of the Genovia series of one -room and family condominiums to individual investors. During the first nine months, 135 condominium units were sold.

Sales were 4,689 million yen, down 22.5% from one year earlier, and segment loss was 170 million yen, compared with profit of 203 million yen one year earlier.

(b) Wholesale

This segment consists of sales of the Genovia series of one-room and family condominiums to real estate management companies. During the first nine months, 742 condominium units were sold.

Sales were 21,210 million yen, up 50.5% from one year earlier, and segment profit increased 32.3% to 2,498 million yen.

(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 99% at the end of every month. However, earnings were lower as selling, general and administrative expenses increased due to amortization of goodwill and other costs.

Sales were 1,208 million yen, up 44.0% from one year earlier, and segment profit decreased 5.6% to 427 million yen.

2

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

(d) Good Com Fund

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

Sales were not recorded and segment loss was 64 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.

1. Explanation of Financial Position Assets

Total assets decreased 6,622 million yen, or 25.6%, from the end of the previous fiscal year to 19,292 million yen at the end of the third quarter of the current fiscal year.

This was mainly due to decreases in real estate for sale of 6,453 million yen and cash and deposits of 499 million yen, while there was an increase in advance payments-trade of 291 million yen.

Liabilities

Total liabilities decreased 7,160 million yen, or 40.9%, from the end of the previous fiscal year to 10,357 million yen.

This was mainly due to decreases in current portion of long-term borrowings of 6,009 million yen, short-term borrowings of 939 million yen and long-term borrowings of 745 million yen, while there was an increase of 642 million yen in accrued consumption taxes included in other current liabilities.

Net assets

Total net assets increased 537 million yen, or 6.4%, from the end of the previous fiscal year to 8,935 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 1,692 million yen increase in retained earnings due to the booking of profit attributable to owners of parent .

Consequently, the equity ratio increased 13.9 percentage points from the end of the previous fiscal year to 46.3% at the end of the third quarter of the current fiscal year.

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

The Company maintains its full-year consolidated forecasts that were announced in the "Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending October 31, 2021" on June 9, 2021.

3