Investment
Invincible Corporation

Financial Summary
for the 20th Fiscal Period(from January 1, 2013 to June 30, 2013)

Name
Representative
Stock Listing
Securities CodeURL
Contact

:
:
:
:
:
:

Invincible Investment Corporation
Naoki Fukuda, Executive Director
Tokyo Stock Exchange8963
http://www.invincible‐inv.co.jp/eng/
Consonant Investment Management Co., Ltd.
(Asset Manager of Invincible Investment Corporation)
Akiko Watanabe, Manager
Tel. +81‐3‐5411‐2731

Start date fordividend distribution: September 27, 2013

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

1.

Performance for the 20th Fiscal Period Ended June 30, 2013
(from January 1, 2013 to June 30, 2013)

1) Business Results(Percentages in brackets represent change from previous fiscal period)

Operating Revenues
mn JPY

Operating Income%

mn JPY

Ordinary Income%

mn JPYNet Income%

mn JPY%

20th Fiscal Period

2,760(11.5)

1,231(13.6)

335 (192.4)

335 (193.5)

19th Fiscal Period

2,476(13.8)

1,084(21.3)

114

114

Net Income
per Unit

Net Income /NAV*(‐8.9)

Ordinary Income /Total Assets

JPY%(‐10.9)Ordinary Income /Operating Revenues%%

20th Fiscal Period

249

1.0

0.4

12.2

19th Fiscal Period

85

0.3

0.2

4.6

*NAV = Total net assets(Note) “Net Income per Unit” is rounded to nearest yen.

2) Cash Distributions
Distribution
per Unit

Distribution
Amount(Excluding
exceeding profit
distribution per
unit)
JPY

ExceedingProfitDistribution
per Unit

mn JPYJPY

ExceedingProfitDistribution
AmountDividend
Payout Ratio

mn JPYDistribution /
NAV

%

%

20th Fiscal Period

264

355

0

0

106.0

1.1

19th Fiscal Period

117

157

0

0

137.6

0.5

(Note) Invincible Investment Corporation (INV) reversed JPY 43 million out of surplus and distributed JPY 117 perunit for the distribution for the 19th fiscal period ended December 31, 2012. As for the distribution for the 20th
fiscal period ended June 30, 2013, INV reversed JPY 20 million out of surplus and determined to distribute JPY
264 per unit.

3) Financial Position
Total Assets

NAV /Total Assets

NAV

mn JPY

mn JPYNAV per Unit%

JPY

20th Fiscal Period

80,24932,84840.9

24,36319th Fiscal Period

80,20032,67040.7

24,231(Note) “NAV per Unit” are rounded to nearest yen.

4) Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investment Activities

mn JPY

mn JPY

Cash Flows from
Financing Activities
mn JPY

Closing Balance of Cashand Cash Equivalents
mn JPY

20th Fiscal Period

1,054

‐167

‐300

4,117

19th Fiscal Period

878‐14,412

11,855

3,531

1

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period2.

Forecast results for the 21st Fiscal Period Ending December 31, 2013
(from July 1, 2013 to December 31, 2013)(Percentages in brackets represent change from previous fiscal period)
Distribution Exceeding
per Unit
Operating
Ordinary
Profit(Excluding
Net Income
Distributio
IncomeIncomeexceeding
profit distribution n per Unit

Operating
Revenues

per unit)

21st Fiscal Period

mn JPY%

mn JPY%

mn JPY%

2,740(‐0.7)

1,182(‐4.0)

270(‐19.4)

Reversal of
Surplus21st Fiscal Period(Reference)mn JPY

%

JPY

JPY

270 (‐19.4)

200

0Distribution
Amountmn JPY%

mn JPY

%

‐

(‐)

269

(‐24.2)Estimated net income per unit for the 21st fiscal period: JPY 200<Business Outlook>
Operating revenues are expected to decrease by JPY 20 million (0.7%) to JPY 2,740 million, compared to
the 20th fiscal period because of the decrease in the new and renewal related income affected by seasonal
factors. Operating income is also expected to decrease by JPY 49 million (4.0%) to JPY 1,182 million,
compared to the 20th fiscal period because of the increase in the repair costs and property taxes, etc. In
addition, net income is expected to decrease by JPY 65 million (19.4%) to JPY 270 million, compared to
the 20th fiscal period because of the JPY 12 million (1.3%) increase of non‐operating expenses includinginterest expenses, etc. due to the increase in operating days during the 21st fiscal period.
Based on the forecast of the financial results as of today, INV plans to distribute JPY 269 million (Note 3)
in total (the distribution per unit : JPY 200) for the 21st fiscal period by utilizing net income of the 21stfiscal period ending December 31, 2013 as distribution resource, and assuming that it will not satisfy thedividend payment requirement (Note 1), one of the tax conduit requirements. However, INV plans todetermine reasonably the actual distribution amount, as well as satisfaction of the dividend payment
requirement, under the comprehensive consideration for the level of distribution amount per unit in thepast (around JPY 200 per unit), stability of the distribution amount in the mid‐term, INV’s financial
condition, liquidity of its cash on hand and the level of balance of the surplus gained from negative
goodwill resulting from the merger (the “Surplus”), when the financial results for the 21st fiscal period
are generally fixed.
Furthermore, the distribution per unit for the 21st fiscal period ending December 31, 2013 (JPY 200) is
calculated on the assumption that INV will not utilize the Surplus for the distribution for the 21st fiscal
period, and the balance of the Surplus after the distribution for the 21st fiscal period will not change
from JPY 93 million, which is the balance after the distribution for the 20th fiscal period.
(Note 1)

One of the tax conduit requirements is the dividend payment requirement, in which investment
corporations are required to distribute at least 90% of their distributable income (Note 2).
(Note 2) Amount of distributable income for the next fiscal period (JPY 330 million (*)) × 90% = JPY 297.0 million(*) Distributable income for the next fiscal period (JPY 330 million) = Net income before income tax for the next fiscal
period (JPY 270 million) + Amortization of negative goodwill for each fiscal period (JPY 59 million)(**)(**) Amortization of negative goodwill for each fiscal period (JPY 59 million) = Gain on negative goodwill accrued upon themerger (JPY 11,843 million) × (Number of months of fiscal period ÷ 1,200 months (***))(***) 1,200 months = 100 years × 12 months (1 year)2

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period(Note 3)

Total distribution amount (JPY 269 million) at this moment does not exceed the amount of distributable
income (JPY 297.0 million) as calculated described above and is determined based on the assumption thatthe dividend payment requirement, one of the tax conduit requirements, will not be satisfied. INV has aloss carried forward for the tax purpose totaling JPY 20,561 million (as of the end of June 30, 2013) due tothe sale of assets etc. in the past, which may be carried forward until the 35th fiscal period (fiscal period
ending December 31, 2020 (at most). Therefore, even if INV does not satisfy the tax conduit requirement,
no corporation tax will be levied because taxable income of INV will be offset by loss carried forward solong as such taxable income is earned within the period of, and the amount is within the balance of, thesaid loss carried forward.

For the pre‐conditions and assumptions underlying the business outlook for the 21st fiscal period, pleasesee “Pre‐Conditions and Assumptions Underlying Forecasted Performance for the 21st Fiscal Period(from July 1, 2013 to December 31, 2013)”.
(Disclaimer of Forward‐Looking Statements)
Forward‐looking statements, such as the forecast results described herein, are based on the informationthat we currently have and certain assumptions that we consider reasonable. The results may
significantly vary due to changes in the business, such as the occurrence of sales gains and losses inassociation with the disposals of properties, repayment of borrowings, decrease of the rent received, thatare not forecasted as of today. Also, this forecast is not a guarantee of the distribution amount.

<Pre‐Conditions and Assumptions Underlying Forecasted Performance for the 21st Fiscal Period(from July 1, 2013 to December 31, 2013)>
Item
Fiscal period

Assets under management

Units outstanding

Interest‐bearing liabilities

Assumptions
From July 1, 2013 to December 31, 2013 (184 days)
INV assumes the number of properties is 78 properties, which is based on the number ofproperties held by INV as of today.
Actual number of properties may vary due to the future acquisitions and/or disposals of
existing properties, if any.
INV assumes the number of units issued and outstanding is 1,348,292 units, which isbased on the number of units issued by INV as of today. Also, INV assumes there will
be no additional issue of investment units thereafter through to the end of the 21st fiscal
period.
The repayments of JPY 131 million are scheduled to be made by scheduled repayments
during the 21st fiscal period and INV assumes there will be no new financing or no
additional repayments of the existing borrowings other than the scheduled repayments.
INV assumes it will incur operating revenues of JPY 2,740 million.
The breakdown is as follows:

Operating revenues• Rental revenues

JPY 2,740 million

Rental revenues are calculated based on historical data and taking into account tenant
trends, property competitiveness, market environment and other factors. In addition,
INV assumes there are no delinquencies or non‐payment of rent by tenants.

3

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

Item

Assumptions
INV assumes it will incur property related expenses of JPY 1,323 million.
The breakdown is as follows:• Facility management fees(of which, repair costs)• Taxes and other public charges• Insurance expenses• Other expenses• Depreciation expenses

Operating expenses

JPY 462 million(JPY 40 million)
JPY 176 million
JPY 5 million
JPY 147 million
JPY 532 million

Other than depreciation expenses, the property related expenses are calculated based on
historical data and reflect elements that may cause fluctuations. Of the assessed anddecided amount of real property tax, city planning tax, depreciable property tax, etc.
applicable to assets under management, INV records as expenses the tax amount that it
expects to pay during the fiscal periods.
Repair costs may vary due to the changes in the situation etc., though they are estimatedbased on the repair plans created by the asset manager.
In addition, other than the property related expenses, INV assumes it will incur
operating expenses of JPY 233 million.
INV assumes it will incur non‐operating expenses of JPY 911 million.
The breakdown is as follows:

Non‐operating expenses• Interest expenses• Finance related costs• Other non‐operating expenses

JPY 811 million
JPY 98 million
JPY 1 million

Distribution per unit

The distribution per unit is calculated in accordance with the cash distribution policy set
forth in INV’s Articles of Incorporation.
INV assumes that JPY 269 million in total (the distribution per unit : JPY 200) will be
distributed for the 21st fiscal period by utilizing net income of the 21st fiscal period as
distribution resource.
The distribution per unit may vary due to various factors, such as fluctuations in rental
revenues resulting from changes in the assets under management, changes in thetenants, etc. and incurrence of unexpected repairs.

Exceeding profit
distribution per unit

INV currently does not expect to make distributions exceeding profits (exceeding profit
distribution per unit).

Other

INV assumes there will be no amendments to laws and ordinances, the taxation system,
accounting standards and other regulations that will affect the foregoing forecasts.
In addition, INV assumes there will be no unforeseen material changes in theenvironment, including general economic trends and real estate market conditions.

4Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

3. Financial Statements
1) Balance Sheet of INV as of June 30, 2013
(Consistent with Japanese GAAP)

Items

19th Fiscal Period

20th Fiscal Period( As of Dec. 31, 2012)
Ths JPY%( As of Jun. 30, 2013)
Ths JPY%

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Deposits paid
Prepaid expenses
Consumption tax receivable
Allowance for doubtful accounts
Total current assets
Non‐current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
Land
Buildings in trust
Equipment in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Land in trust
Total property, plant and equipment, at cost
Intangible assets
OthersTotal intangible assets
Investment and other assets
Guarantee deposits
Long‐term prepaid expenses
OthersTotal investment and other assets
Total non‐current assets
Total assets

Items

745,429
2,786,480
18,370664
690,495
208,056
115,447‐797
4,564,147

Changes

6.3

682,054‐96,149‐962‐525
57,701
3,530‐115,447‐730
529,4725.7

11.6

2,517,007
26,5662,587
2,713,620
27,882,085
5,328,309
220,693
69,44336,582,527
75,342,842

93.9

2,489,402
23,902
2,451
2,713,620
27,617,278
5,220,784
226,389
77,84236,582,527
74,954,199

93.4‐27,605‐2,663‐136‐‐264,806‐107,524
5,696
8,398
‐
‐388,642

‐0.5

244
244

0.0

167
167

0.0

‐76
‐76

‐31.3

0.4
94.3
100.0

10,000158,394
32,680201,075
75,155,443
80,249,063

0.3
93.7
100.0

‐
‐95,011
3,298‐91,712‐480,431
49,041

‐31.3
‐0.6
0.1

19th Fiscal Period

20th Fiscal Period( As of Dec. 31, 2012)
Ths JPY%( As of Jun. 30, 2013)
Ths JPY%

133,791
262,000
18,748362,514503‐
378,770
5,268
1,161,597
22,760,500
20,960,000
1,059,315
183,579
1,404,333
46,367,728
47,529,325

5%

1,427,483
2,690,331
17,407
139748,197
211,587‐‐1,528
5,093,620

10,000253,406
29,381
292,787
75,635,874
80,200,022

Liabilities
Current liabilities
Accounts payable
Current portion of long‐term debts
Accrued liabilities
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non‐current liabilities
Long‐term debts
Long‐term debts in trust
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Long‐term accrued expenses
Total non‐current liabilities
Total liabilities
Net assets
Unitholdersʹ equity
Unitholdersʹ capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholdersʹ equity
Total net assets
Total liabilities and net assets

Ths JPY

1.4

151,861
262,000
4,375
354,066527
24,902
377,475
8,601
1,183,809

57.8
59.3

22,629,500
20,960,000
1,048,635
183,579
1,395,513
46,217,228
47,401,038

ChangesThs JPY%

1.5

18,070‐‐14,373‐8,44723
24,902‐1,294
3,333
22,212

1.9

57.6
59.1

‐131,000‐‐10,680‐‐8,820‐150,500‐128,287

‐0.3
‐0.3

26,134,396

26,134,396‐

6,264,432
271,868
6,536,300
32,670,697
32,670,697
80,200,022

6,264,432
449,196
6,713,628
32,848,025
32,848,025
80,249,063‐
177,328
177,328
177,328
177,328
49,041

8.1
40.7
40.7
100.0

8.4
40.9
40.9
100.0

2.7
0.5
0.5
0.1

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

2) Statement of Income for the 6 months Ended June 30, 2013
(Consistent with Japanese GAAP)
Items

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)‐(2)+(3)Directorsʹ remuneration
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Other operating expenses
Operating income
Non‐operating revenues
Interest revenues
Miscellaneous income
Non‐operating expenses
Interest expenses
Finance related costs
Public listing related costs
Miscellaneous losses
Ordinary income
Income before income taxes
Corporate tax, etc.
Net income
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the

19th Fiscal Period
2012/7/1‐
2012/12/31
Ths JPY%
2,476,430
100.0
2,476,430
1,392,258
56.2
1,156,672
480,6221,800,380
4,800
130,067
3,351
24,781797
71,786
1,084,171
43.8
3,391
0.1
487
2,904
972,77839.3
763,201
208,3471,230
0114,784
4.6
114,784
4.6
604
114,179
4.6
157,688271,868

6

20th Fiscal Period
2013/1/1‐
2013/06/30
Ths JPY%
2,760,177
100.0
2,760,177
1,528,940
55.4
1,295,403
543,640
2,008,413
4,800
125,000
3,911
21,531
730
77,562
1,231,237
44.6
3,472
0.1
383
3,088
899,02632.6
800,615
96,8161,300
293
335,683
12.2
335,68312.2
605
335,078
12.1
114,118
449,196

ChangesThs JPY
283,747
283,747
136,681
138,73163,017208,033‐‐5,067559‐3,249‐66
5,775
147,065
81‐103
184‐73,752
37,414‐111,53070
293
220,898
220,8980220,898‐43,570
177,328

%
11.5
9.8

13.6
2.4

‐7.6

192.4
192.4
193.5

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

3) Statement of Cash Flows for the 6 months Ended June 30, 2013
(Consistent with Japanese GAAP)
19th Fiscal Period
2012/7/31‐
2012/12/31
Ths JPY

Items
Cash flows from operating activities
Net income before taxes
Depreciation expenses
Public listing related costs
Finance related costs
Amortization of tenant leasehold and security deposits in trust
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of corporate taxes, etc.
Cash flows from operating activities
Cash flows from investment activities
Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
OthersCash flows from investment activities
Cash flows from financing activities
Proceeds from long‐term debt
Repayment of long‐term debt
Proceeds from long‐term debt in trust
Public listing related costs
Finance related costs
Payment of distributions
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Closing balance of cash and cash equivalents

7

20th Fiscal Period
2013/1/1‐
2013/06/30
Ths JPY

114,784
481,000
1,230
208,347(1,354)(487)
763,201
(33)
733
6,308
(92,135)‐
62,798
13,696(31,930)
90,6071,960
714
1,619,439
487(740,409)(608)
878,909335,683
543,7171,300
96,816(433)(383)
800,615730
962(57,701)
115,447
24,902
17,493(13,571)
9,112(1,294)
3,333(3,756)
1,872,971
383(818,164)(581)
1,054,609(14,547,093)(39,366)
174,339(694)(14,412,815)(154,421)(93,409)
83,162(3,298)(167,967)

13,400,000(10,981,000)
9,960,000(1,230)(251,904)(270,196)
11,855,670(1,678,236)
5,210,146
3,531,910‐(131,000)‐(1,300)(10,636)(157,800)(300,737)
585,905
3,531,910
4,117,815

Invincible Investment Corporation (8963)
Financial Summary for the 20th Fiscal Period

For further information:
Please contact
Planning & Finance Department at Consonant Investment Management, Co. Ltd.
Tel. +81‐3‐5411‐2731
Disclaimer
This document contains translations of selected information provided in the Japanese language Summary
Financial Report (Kessan‐Tanshin) for the 20th Fiscal Period Ended June 30, 2013 (from January 1, 2013 to June30, 2013) of Invincible Investment Corporation (INV) dated August 28, 2013 and prepared under the timely
disclosure requirements of the Tokyo Stock Exchange.
This document is for informational purposes only and not for solicitation to invest in, or recommendation tobuy, certain products of INV. You should consult with securities firms if you intend to purchase investment
units of INV.
This English language document is provided solely for the convenience of and reference by non‐Japanese
investors and neither corresponds to the original Japanese documents nor is intended to constitute or form apart of any disclosure document required by the Financial Instruments and Exchange Act of Japan orregulations thereunder, the Investment Trust and Investment Corporation Act of Japan or regulations
thereunder, or the listing rules of the Financial Instruments Exchanges or other related rules and regulations.
The Japanese language Summary Financial Report should always be referred to as the original of thisdocument.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely
identical to the concepts of the equivalent Japanese terms. With respect to any and all terms herein,
including without limitation, financial statements, if there exist any discrepancies in the meaning orinterpretation thereof between the original Japanese documents and English statements contained herein, theoriginal Japanese documents shall always prevail.
None of INV, Consonant Investment Management Co., Ltd. (Asset Manager) or any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for thecompleteness appropriateness or accuracy of English translations or the selection of the portions of any
documents translated into English. No person has been authorized to give any information or make any
representations other than as contained in this document in relation to the matters set out in this document,
and if given or made, such information or representation must not be relied upon as having been authorized
by INV, Asset Manager or any of their respective directors, officers, employees, partners, shareholders,
agents or affiliates.
The financial statements are a translation of the audited financial statements of INV, that were prepared inaccordance with generally accepted accounting principles in Japan (Japanese GAAP) which may materiallydiffer in certain respects from generally accepted accounting principles and practices in other jurisdictions.
In preparing the financial statements, certain reclassifications and modifications have been made to thefinancial statements issued domestically in order to present them in a format that is more familiar to readers
outside Japan.
Many provisions of this document contain forward‐looking statements and information. We base thesestatements on our beliefs as well as our assumptions in consideration of currently available information;
therefore, there may be currently known and unknown risks and uncertainties in such statements. The
contents of forward‐looking statements are subject to such risks, uncertainties, assumptions and other factors.
These forward‐looking statements are not a guarantee of future performance, and there are certain importantfactors that could cause actual results to differ, possibly materially, from expectations or estimates reflected insuch forward‐looking statements, including without limitation: the general economy, market conditions,financial markets including the performance of the real market, interest rate fluctuations, competition with
our properties, and the impact of changing regulations or taxation.
INV does not intend, and is under no obligation, to update any particular information included in thisdocument. The forward‐looking statements contained in this document speak only as of the date of release,
August 28, 2013, and INV does not undertake to revise those forward‐looking statements to reflect eventsoccurring after the date of this release.

8