Please note that this document is a translation of the official announcement in Japanese that was released on October 4, 2013. The
translation is prepared and provided for the purpose of the readers’ convenience only. All readers are strongly recommended torefer to the original Japanese version for complete and accurate information. In the event of any inconsistencies, please note that
the Japanese version shall be taken as the correct version.

Consolidated Financial Results
for the First Nine Months of the Year Ending November 30, 2013
<IFRS>
October 4, 2013
Company name: Tosei Corporation
Stock listing: Tokyo Stock Exchange, First Section/
Securities code number: 8923/S2D
Singapore Exchange, Mainboard
Representative: Seiichiro Yamaguchi, President and CEO URL: http://www.toseicorp.co.jp/english/
Contact: Noboru Hirano, Director and CFO
Phone: +81-3-3435-2864
Scheduled date of submission of quarterly securities report: October 10, 2013
Scheduled date of commencement of dividend payments: ―Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: No
Note: All amounts are rounded down to the nearest million yen.
1.

Consolidated Financial Results for the Nine Months Ended August 31, 2013
(December 1, 2012 – August 31, 2013)(1) Consolidated Operating Results (cumulative)
Nine months ended
Aug. 31, 2013
Nine months ended
Aug. 31, 2012

(Percentages indicate year-on-year changes.)
Profit before tax
Profit for the period(¥ million)(%)(¥ million)(%)

Revenue(¥ million)(%)

Operating profit(¥ million)(%)

29,097

97.1

3,610

189.7

3,072

295.5

14,765

－

1,246

－

776

－

Profit for the period
attributable toowners of the parent(¥ million)(%)

Total comprehensive
income for the period

Basic earnings
per share

1,921 328.7
448－

Diluted earnings
per share(¥ million)
(%)
(¥)
(¥)
Nine months ended
1,921 328.7
1,926 329.2
41.73－
Aug. 31, 2013
Nine months ended
448
448
9.81
－
－
－
Aug. 31, 2012
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share and diluted
earnings per share were calculated on the assumption that the stock had been split at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

As of Aug. 31, 2013
As of Nov. 30, 2012(¥ million)
68,52565,363

Total equity(¥ million)
30,021
26,543

1

Equity attributable toowners of the parent(¥ million)
30,021
26,543

Ratio of equity
attributable to owners of
the parent to total assets
(%)
43.8
40.6

2. Dividends
Annual dividends per share
2Q-end3Q-endYear-end
(¥)
(¥)
(¥)

1Q-end
(¥)

Total

(¥)
Year ended Nov. 30, 2012
0.00
600.00600.00－－Year ending Nov. 30, 2013
0.00－－
Year ending Nov. 30, 2013 (Forecast)
8.00
8.00
Note: Revision to the most recently released dividend forecasts: No
Note: The Company split its shares by 100 for 1, effective July 1, 2013. As for the dividend per share for the fiscal year ended
November 30, 2012, the pre-stock split amount is presented.

3. Consolidated Earnings Forecasts for the Year Ending November 30, 2013
(December 1, 2012 – November 30, 2013)
Revenue(Percentages indicate year-on-year changes.)
Profit for the period
Basic earnings
Profit before tax
attributable toper shareowners of the parent(¥ million)(%)(¥ million)(%)(¥)

Operating profit(¥ million)(%)(¥ million)(%)
Year ending
34,946 44.4
3,805 33.2
3,107 40.1
1,903 29.9
41.66
Nov. 30, 2013
Note: Revision to the most recently released earnings forecasts: No
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share in the
consolidated earnings forecast for the current fiscal year is presented in consideration of the effect of the stock split.

* Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in the scope of consolidation): No
Newly added: –Excluded: –(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS:No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates:No(3) Number of issued shares (common stock)(a) Number of issued shares at the end of the period (including treasury shares)
As of Aug. 31, 2013
48,284,000 shares
As of Nov. 30, 2012
45,684,000 shares(b) Number of treasury shares at the end of the period
As of Aug. 31, 2013–
As of Nov. 30, 2012–(c) Average number of outstanding shares during the period (cumulative)
Nine months ended Aug. 31, 2013
46,044,583 shares
Nine months ended Aug. 31, 2012
45,684,000 shares
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the aforementioned numbersof shares were calculated on the assumption that the stock had been split at the beginning of the previous fiscal
year.

* Information regarding implementation of quarterly review proceduresThis quarterly financial results report is exempt from quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. At the time of disclosure of this quarterly financial results report, the review
procedures for quarterly consolidated financial statements pursuant to the Financial Instruments andExchange Act have not been completed.

2* Proper use of earnings forecasts and other notes(1) The forward-looking statements, including outlook of future performance, contained in these materials
are based on information currently available to the Company and on certain assumptions deemed to bereasonable by the Company. Actual performance and other results may differ substantially from thesestatements due to various factors. For the assumptions on which the earnings forecasts are based andcautions concerning the use thereof, please refer to “1. Qualitative Information on Quarterly Consolidated
Financial Performance (3) Qualitative Information Regarding Consolidated Earnings Forecasts” on page 8 of
the attached materials.
(2) The Company split its shares by 100 for 1, effective July 1, 20133

○ Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 5(1) Qualitative Information Regarding Consolidated Operating Results ........................................................ 5(2) Qualitative Information Regarding Consolidated Financial Positions ...................................................... 7(3) Qualitative Information Regarding Consolidated Earnings Forecasts ...................................................... 8
2. Matters Related to Summary Information (Other Information) ............................................................. 9(1) Changes in Significant Subsidiaries during the Period ............................................................................. 9(2) Changes in Accounting Policies and Changes in Accounting Estimates .................................................. 9
3. Condensed Quarterly Consolidated Financial Statements ..................................................................... 10(1) Condensed Consolidated Statement of Financial Position ...................................................................... 10(2) Condensed Consolidated Statement of Comprehensive Income ............................................................. 11(3) Condensed Consolidated Statement of Changes in Equity ..................................................................... 12(4) Condensed Consolidated Statement of Cash Flows ................................................................................ 13(5) Notes on Going Concern Assumption ..................................................................................................... 14(6) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................ 14(7) Notes on Significant Subsequent Events................................................................................................. 174

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the first nine months ended August 31, 2013 (December 1, 2012 to August 31, 2013), theJapanese economy showed signs of steady recovery such as easing deflation following the good responseto the BOJ’s bold monetary easing steps as well as the government’s economic measures.
In the real estate sector, where Tosei Group operates, J-REIT’s active acquisitions have further
vitalized the real estate transactions, and the total amount of property acquisitions by all listed companies
during the period from January to June 2013 has nearly doubled from the same period last year, amounting
to ¥2.3 trillion. As for the condominium market in the greater Tokyo area, the strong demand continued on
the back of the mortgage tax break as well as the anticipation of a rise in property price. Since 2010, theclosing rate of sales contracts has mostly remained above 70%, which is viewed as a threshold of afavorable condition, and it recorded a high 81.6% in July 2013. (According to a survey by a private
research institution)
In the office leasing market of Tokyo’s five business wards, the average vacancy rate remained on arecovery trend, recording 8.29% in July 2013, 1.01 percentage point lower than the same month last year.
The average asking rent, however, has been on a slight decline despite of the increasing expectation of themarket that the rental rate will bottom out. (According to a survey by a private research institution)
In the real estate securitization market, the total amount of property acquisitions during the period fromJanuary to June 2013 stood at ¥1.3 trillion, nearly tripled from the same period last year, as the acquisitions
by J-REITs have largely increased. (According to a survey by a private research institution)
As at the end of June 2013, the combined balance of assets managed by all real estate funds hit a record¥27.1 trillion, of which ¥10.4 trillion was accounted for by J-REITs and ¥16.7 trillion was by private
placement funds. (According to a survey by a private research institution)
In such operating environment, Tosei Group successfully executed the sale of income-generating office
and apartment buildings and launched the sale of Restyling properties, both of which are in the
Revitalization Business. Also, in the Development Business, the Group concentrated on the sale of 8
detached house projects such as Palms Court Koishikawa 3-Chome and commenced the delivery of newly
completed condominium, THE Palms Shibuya Tokiwamatsu in July 2013, which have been thecontributors to the steady earnings growth. Further, the Group has been proactively conducting
acquisitions of properties that will be the source of its future income.
As a result, consolidated revenue for the first nine months ended August 31, 2013 totaled ¥29,097
million (an increase of 97.1% compared with the same period in the previous fiscal year), operating profit
was ¥3,610 million (an increase of 189.7%), profit before tax was ¥3,072 million (an increase of 295.5%),
and profit for the period was ¥1,921 million (an increase of 328.7%).
Segment results were as follows:
Revitalization Business
During the nine months ended August 31, 2013, the Company sold 11 properties it had refurbished,including Nissei Building (Chiyoda-ku, Tokyo), Excel TY Building (Shibuya-ku, Tokyo), Meguro Ekimae
Tosei Building (Shinagawa-ku, Tokyo), Harajuku Mansion (Shibuya-ku, Tokyo), Kanda Urban Building(Chiyoda-ku, Tokyo). In addition, the Company sold 64 units under its Restyling Business such as Hilltop
Yokohama Negishi (Yokohama City, Kanagawa Prefecture), Hilltop Yokohama Higashi Terao(Yokohama City, Kanagawa Prefecture), and Estage Kaminoge (Setagaya-ku, Tokyo).
As a result, revenue in this segment reached ¥9,937 million, an increase of 119.4% from the same
period last year, and the segment profit was ¥1,576 million, an increase of 473.8%.
Development Business
During the nine months ended August 31, 2013, the Company sold Kamata Tosei Building (Ota-ku,
Tokyo), the land lot in Motoazabu 3-Chome (Minato-ku, Tokyo), as well as a total of 63 detached houses
such as properties at Palms Court Hatsudai (Shibuya-ku, Tokyo), Palms Court Koishikawa 3-Chome(Bunkyo-ku, Tokyo) and Palms Court Setagaya Okamoto (Setagaya-ku, Tokyo), and 71 newly built
condominium units in THE Palms Shibuya Tokiwamatsu (Shibuya-ku, Tokyo), THE Palms Sendagaya(Shibuya-ku, Tokyo), THE Palms Tsukishima Luna Garden (Chuo-ku, Tokyo) and THE Palms
Takadanobaba (Shinjuku-ku, Tokyo).
5

As a result, revenue in this segment came to ¥13,431 million (up by 190.8% year-on-year), andsegment profit reached ¥1,217 million (up by 121.6% year-on-year).
Rental Business
During the nine months ended August 31, 2013, the Company focused on leasing activities for its noncurrent assets and inventories, and the income-generating apartment and office buildings the Company
acquired for sales purposes contributed to the earnings.
As a result, revenue in this segment was ¥1,866 million, an increase of 5.8% compared with the same
period last year, and the segment profit was ¥1,104 million, an increase of 16.2%.
Fund and Consulting Business
During the nine months ended August 31, 2013, the Company enjoyed a stable asset management fee
income. In addition, brokerage fees and other income relating to large-scale transactions were booked. As
a result, revenue in this segment was ¥1,215 million (up by 100.1% year-on-year), while segment profit
was ¥652 million (up by 311.8% year-on-year).
As of August 31, 2013, the balance of assets under management (Note) totaled ¥259,411 million.
Note: The balance of assets under management includes the balance of assets which were subject to consulting contracts,
etc.

Property Management Business
During the nine months ended August 31, 2013, the number of properties managed by the Company
including office buildings, parking lots and schools was 328 properties, an increase of 20 compared withthe same period last year; while the number of condominiums and apartments decreased by 28 to 204
properties, the total number of properties under management came to 532, a decrease of 8 from the same
period last year.
As a result, revenue in this segment was ¥2,352 million, a decrease of 7.8% compared with the same
period last year, and the segment profit was ¥86 million, a decrease of 27.3%.
Alternative Investment Business
During the nine months ended August 31, 2013, the segment focused on the sale of properties acquired
through M&A, collection of debt, and leasing of the properties which the Company acquired as in-kind
repayments. The segment recognized gain on the sale of properties and loans receivable, interest income,as well as rental income from properties acquired as in-kind repayments.
As a result, revenue in this segment came to ¥293 million, a decrease of 57.6% compared with the same
period last year, and the segment profit was ¥42 million, a down by 38.4%.

6

(2) Qualitative Information Regarding Consolidated Financial Positions
1) Financial Positions
As of August 31, 2013, total assets increased by ¥3,162 million to ¥68,525 million compared with
November 30, 2012, while total liabilities decreased by ¥314 million to ¥38,504 million.
These were primarily due to the proceeds from sales of properties exceeding the purchase of properties
in the Revitalization and Development Businesses, and an increase in cash and cash equivalents resulted
from the issuance of new shares in Singapore.
Total equity increased by ¥3,477 million to ¥30,021 million compared with November 30, 2012,
mainly due to the aforementioned issuance of new shares in Singapore and an increase in retained earnings.
During the third quarter of the current fiscal year, the Company had utilised a portion of the net
proceeds from the issuance of new shares on the Singapore Exchange as follows:
1. Use of Placement Proceeds(¥ thousand)Total amount raised in July 2013

1,933,438

Total amount utilised from the proceeds (As of Aug. 31, 2013)

321,884

Balance proceeds

1,611,554

2. Details of Use of Proceeds(¥ thousand)

Revitalization Business
Acquisition cost of residential property in Sendagi

Bunkyo-ku, Tokyo

Apartment

95,500(partial)
Subtotal

95,500Development Business
Construction cost of THE Palms Nishigahara

Kita-ku, Tokyo

Condominium

153,700

Suginami-ku, Tokyo

Detached house

22,684

Subtotal

176,384(partial)
Construction cost of Palms Court Minamiasagaya(partial)

Fund and Consulting BusinessCo-equity investment in preferred equity of Tokumei Kumiai (silent partnership) of a private

50,000fund
Subtotal
Total amount utilised for the period up until August 31, 2013

7

50,000321,884

2)

Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of August 31, 2013 increased by ¥6,427 million from
November 30, 2012 to ¥15,837 million because of the quarterly profit before tax of ¥3,072 million, adecrease in inventories led by steady sales of properties in the Revitalization and Development
Businesses, as well as an increase in total equity resulted from the issuance of new shares in Singapore,etc.
The respective cash flow positions and the factors thereof for the nine months ended August 31, 2013
are as follows:
Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥4,932 million (net cash used in operating activities
totaled ¥3,156 million in the same period of the previous year). This is mainly attributed to the quarterly
profit before tax of ¥3,072 million and a decrease of ¥1,595 million in inventories resulting from sales ofproperties in the Revitalization and Development Businesses.
Cash Flows from Investing Activities
Net cash provided by investing activities totaled ¥7 million (a decrease of 89.3% year-on-year). This is
primarily due to collection of available-for-sale financial assets in the amount of ¥216 million, andpurchase of investment properties of ¥178 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥1, 475 million (an increase of 18.5% year-on-year).
This mainly reflected ¥15,127 million in repayment of long-term borrowings and ¥273 million in
dividend payments, despite proceeds from long-term borrowings of ¥15,969 million as well as proceedsfrom issuance of new shares of ¥1,825 million.

(3) Qualitative Information Regarding Consolidated Earnings Forecasts
There is no change on the full-year consolidated earnings forecast, announced on July 5, 2013.
The forward-looking statements contained in these materials, including forecasts of the future
performance, are based on the information available to the Company as of the date of announcement andon certain assumptions deemed to be reasonable by the Company. Actual performance and other results
may differ from forecasts due to various factors.

8

2. Matters Related to Summary Information (Other Information)(1) Changes in Significant Subsidiaries during the Period
None(2) Changes in Accounting Policies and Changes in Accounting EstimatesNone93. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)
Notes
AssetsCurrent assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
Inventories
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Investment properties
Intangible assets
Available-for-sale financial assets
Trade and other receivables
Deferred tax assets
Other assets
Total non-current assets
Total assets

As of Nov. 30, 2012

As of Aug. 31, 2013

9,410,622
10,0001,884,308
37,417,375
22,426

15,837,795
10,000761,144
35,896,187
23,214

48,744,733

52,528,342

3,331,447
11,695,720
43,091410,061
160,170
973,844
4,014

3,308,213
11,791,280
30,277
202,425
174,877
486,383
4,014

16,618,350

15,997,472

65,363,083

68,525,815

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables
Borrowings
Current income tax liabilities
Provisions

3,314,472
7,742,443
72,921
154,143

2,090,985
8,600,943
790,375
115,550

Total current liabilities

11,283,980

11,597,854

2,136,256
24,659,337
541,647
24,842
173,126

2,020,023
24,263,392
591,543
24,943
6,954

Non-current liabilities
Trade and other payables
Borrowings
Retirement benefits obligations
Provisions
Deferred tax liabilities
Total non-current liabilities
Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Other components of equity
Total equity
Total liabilities and equity

10

27,535,211

26,906,856

38,819,191

38,504,711

5,454,673
5,516,499
15,576,014(3,295)

6,421,392
6,375,317
17,222,526
1,866

26,543,892

30,021,103

65,363,083

68,525,815

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Nine months ended
Nine months ended
Notes
Aug. 31, 2012
Aug. 31, 2013
(Dec. 1, 2011 – Aug. 31 2012) (Dec. 1, 2012 – Aug. 31, 2013)
Revenue
Cost of revenue

5

14,765,693
11,234,763

29,097,107
22,916,153

3,530,929
2,272,537
13,12625,353

6,180,953
2,583,721
24,81011,412

1,246,165
3,731
473,146

3,610,629
3,203
541,464

Profit before tax
Income tax expense

776,750
328,519

3,072,369
1,150,772

Profit for the period
Other comprehensive income
Exchange differences on translation of foreign
operations
Net change in fair values of available-for-salefinancial assets
Net change in fair values of cash flow hedges
Other comprehensive income for the period, net oftax
Total comprehensive income for the period

448,230

1,921,597

52

2,826

617

1,213

－

1,122

669

5,162

448,900

1,926,759

Profit attributable to:
Owners of the parent

448,230

1,921,597

Total comprehensive income attributable to:
Owners of the parent

448,900

1,926,759

9.81

41.73

－

－

Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Diluted earnings per share (yen)

5

8
8

11

(3) Condensed Consolidated Statement of Changes in Equity
Nine months ended August 31, 2012 (Dec. 1, 2011 – Aug. 31, 2012)(¥ thousand)Other
components ofequityTotal equity

14,339,150(2,369)25,307,953－

448,230－

448,230

－

－

－

669

669

－

－

448,230

669

448,900－－(228,420)－(228,420)

5,454,673

5,516,499

14,558,960(1,699)25,528,433

Share capital

Capital reserves

5,454,673

5,516,499

Profit for the period－

Other comprehensive income
Total comprehensive income
for the period

Notes
Balance at Dec. 1, 2011

Dividends from surplus

7

Balance at Aug. 31, 2012

Retainedearnings

Nine months ended August 31, 2013 (Dec. 1, 2012 – Aug. 31, 2013)(¥ thousand)Other
components ofequityTotal equity

15,576,014(3,295)26,543,892－

1,921,597－

1,921,597

－

－

－

5,162

5,162

－

－

1,921,597

5,162

1,926,759

Share capital

Capital reserves

5,454,673

5,516,499

Profit for the period－

Other comprehensive income
Total comprehensive income
for the period

Notes
Balance at Dec. 1, 2012

Retainedearnings

Issuance of new shares

6

966,719

858,818－－

1,825,537

Dividends from surplus

7

－

－

(274,104)－(274,104)

－

－

(981)

－

(981)

6,421,392

6,375,317

17,222,526

1,866

30,021,103

Retained earnings from newly
consolidated subsidiaries
Balance at Aug. 31, 201312

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Nine months ended
Nine months ended
Notes
Aug. 31, 2012
Aug. 31, 2013
(Dec. 1, 2011 – Aug. 31, 2012) (Dec. 1, 2012 – Aug. 31, 2013)
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividends income
Interest expenses
Gain on available-for-sale financial assets
Loss on retirement of property, plant and equipment
Loss on sales of investment properties
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other, net

776,750
133,0433,072,369
130,274(41,814)

9,932(3,731)
473,146(3,203)
541,464(7,323)
183

－
2,307
18,874(1,232,692)(3,453,385)
271,197370－
1,047,537
1,595,633(1,344,428)(106)

SubtotalInterest and dividends income received
Income taxes paid

(3,055,935)
3,731(104,154)

5,042,333
3,224(113,222)

Net cash from (used in) operating activities(3,156,358)

4,932,334－(21,438)(107,110)
216,967(4,280)－(6,399)(178,199)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment properties
Proceeds from sales of investment properties
Purchase of intangible assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
assetsPurchase of available-for-sale financial assets
Collection of loans receivable
Other, net－－(3,340)216,700－

30,782(20,000)
7,456
(70)

(52,000)
60

71,525

7,603

Cash flows from financing activities
Net increase (decrease) in current borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of new shares
Cash dividends paid
Interest expenses paid
Other, net－
577,000
11,229,000(9,852,537)－(227,600)(480,021)(927)－(378,400)
15,969,988(15,127,705)
1,825,537(273,574)(539,150)(1,328)Net cash from (used in) financing activities

1,244,915

1,475,366(1,839,918)
8,361,689

6,415,305
9,410,622

52

2,830

－

9,036

6,521,823

15,837,795

Net cash from (used in) investing activities

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate change on cash and cash
equivalents
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at end of period13－(5) Notes on Going Concern Assumption
No item to report.
(6) Notes to Condensed Quarterly Consolidated Financial Statements
a. Reporting entity
TOSEI CORPORATION (Hereinafter, the “Company”) is a stock company located in Japan whose stock
is listed on the First Section of Tokyo Stock Exchange and the Mainboard of Singapore Exchange. The
Company’s condensed quarterly consolidated financial statements for the first nine months of the current
fiscal year (December 1, 2012 to Aug. 31, 2013) have been prepared in respect of the Company and its
subsidiaries (hereinafter collectively, the “Group”). The Group engages in the following six business
operations: Revitalization Business, Development Business, Rental Business, Fund and Consulting
Business, Property Management Business and Alternative Investment Business. The operations of eachbusiness segment are presented in Note “e. Segment Information”.
b. Basis of preparation(1) Compliance with IFRS
Since the Company qualifies as a “specified company” as provided in Article 1-2, paragraph 1, item 1(a) to (c) and (d) (2) of the “Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements” (Ordinance of the Ministry of Finance No. 28 of 1976), itscondensed quarterly consolidated financial statements have been prepared in accordance with
International Accounting Standard (IAS) 34 “Interim Financial Reporting” under the provision of Article
93 of the “Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated
Financial Statements” (Cabinet Office Ordinance No. 64 of 2007).
(2) Basis of measurement
The condensed quarterly consolidated financial statements have been prepared on the historical costbasis except for assets and liabilities measured at fair value.
(3) Presentation currency and unit
The condensed quarterly consolidated financial statements in this report are presented in Japaneseyen, the Company’s functional currency. All financial information presented in Japanese yen is rounded
down to the nearest thousand yen.
c. Significant accounting policies
The accounting policies applied to this condensed quarterly consolidated financial statements are
consistent throughout all the periods presented in the condensed quarterly consolidated financial
statements.
The significant accounting policies applied under IFRS, which has been adopted by the Group, arepresented in the notes to condensed quarterly consolidated financial statements for the first quarter of thecurrent fiscal year (December 1, 2012 to February 28, 2013).

14

d. Significant accounting estimates and judgments requiring estimates
The preparation of the condensed quarterly consolidated financial statements in compliance with IFRS
requires the management of the Group to make judgments, estimates and assumptions that affect theapplication of accounting policies and the amounts of assets, liabilities, income and expenses. However,actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Changes to accounting
estimates are recognized in the period in which the estimates are changed and in future periods in which
the change affects.
e. Segment information(1) Summary of reportable segments
The Group’s reportable segments constitute the Company for which separate financial information isavailable. The Board of Directors regularly conducts deliberations to determine the allocation ofmanagement resources and to assess the financial results of each segment. The Group draws up
comprehensive strategies for each of the following business segments and conducts business activities
accordingly; “Revitalization Business”, “Development Business”, “Rental Business”, “Fund andConsulting Business”, “Property Management Business”, and “Alternative Investment Business”. In the
Revitalization Business, the Group acquires the properties whose asset values have declined, renovates,
and resells them. In the Development Business, the Group sells condominium units and detached houses
to individual customers and develops apartment and office buildings targeting investors. In the Rental
Business, the Group rents office buildings and apartments. The Fund and Consulting Business mainly
provides asset management services for the properties placed in real estate funds. The Property
Management Business provides comprehensive property management services. In the Alternative
Investment Business, the Group acquires real estate collateralized loans and sells the properties acquired
through collection of debt and in-kind repayment.
As from the first quarter of the current fiscal year under review, the name of “Fund Business” waschanged to the “Fund and Consulting Business.” This amendment was made only to the name of thebusiness segment, and there was no change in the segmentation.
(2) Method for calculating revenue, profit or loss and other items by reportable segment
The methods of accounting applied in the reported business segments are consistent with theaccounting policies adopted by the Group.
The reported segment profit is calculated on an operating profit basis. Intersegment revenue ortransfers are based on actual market prices.

15

The Group’s revenue and profit by reportable segment are as follows:
Nine months ended August 31, 2012
(December 1, 2011 – Aug. 31, 2012)(¥ thousand)
Revitalization Development
Business
Business

Fund andConsulting
Business

RentalBusiness

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Outside customers
Intersegment revenue
Total
Segment profit

4,529,756

4,619,149

1,763,987

607,378

2,552,117

693,304－

14,765,693－

274,003

39,283

20,889238,3652,269(574,813)－

4,529,756

4,893,153

1,803,271

628,268

2,790,482

695,574(574,813)

14,765,693

274,846

549,151

949,851

158,463

119,327

69,432(874,906)

1,246,165

Finance income/costs, net(469,414)

Profit before tax

776,750

Nine months ended August 31, 2013
(December 1, 2012 – Aug. 31, 2013)(¥ thousand)
Revitalization Development
Business
Business

Fund andConsulting
Business

RentalBusiness

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Outside customers
Intersegment revenue
Total
Segment profit

9,937,661

13,431,667

1,866,362

1,215,575

2,352,075

293,764－

29,097,107－－

42,182

16,620271,672－(330,475)－

9,937,661

13,431,667

1,908,545

1,232,195

2,623,747

293,764(330,475)

29,097,107

1,576,970

1,217,069

1,104,094

652,564

86,80142,802(1,069,672)

3,610,629

Finance income/costs, net(538,260)

Profit before tax

3,072,369

16

f. Equity and other related items
The Company issued new shares by international placement on July 25, 2013. Consequently, in the third
quarter of the current fiscal year, share capital and capital reserves had increased by ¥966,719 thousandand ¥858,818 thousand, respectively.
g. Dividends
Dividends paid in the nine months ended August 31, 2012 and August 31, 2013 are as follows:
Nine months ended August 31, 2012 (Dec. 1, 2011 – Aug 31, 2012)
Resolution
Ordinary General
Meeting of Shareholders
held on Feb. 24, 2012

Dividends per share(¥)

Total dividends(¥ thousand)500

228,420

Record date

Effective dateNov. 30, 2011

Feb. 27, 2012

Nine months ended August 31, 2013 (Dec. 1, 2012 – Aug. 31, 2013)
Resolution
Ordinary General
Meeting of Shareholders
held on Feb. 26, 2013

Dividends per share(¥)

Total dividends(¥ thousand)

600

274,104

Record date

Effective dateNov. 30, 2012

Feb. 27, 2013h. Earnings per share
Nine months ended
August 31 2012
(Dec. 1, 2011 – Aug. 31, 2012)

Nine months ended
August 31, 2013
(Dec. 1, 2012 – Aug. 31, 2013)

448,230

1,921,597

45,684,000

46,044,583

9.81

41.73

Profit for the period attributable to owners of the parent(¥ thousand)
Weighted average number of common stock outstanding(shares)
Basic earnings per share (¥)

Notes: 1.Basic earnings per share is calculated by dividing profit for the period attributable to owners of the parent, by theweighted average number of common stock outstanding during the reporting period.
2.Information on diluted earnings per share is omitted due to an absence of potential shares.
3.The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share were
calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year ended
November 30, 2012.

(7) Notes on Significant Subsequent Events
No item to report.

17