This is an English translation of the official announcement in Japanese that was released on July 3, 2015. The translation isprepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version forcomplete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, thelatter shall prevail.

Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending November 30, 2015
<IFRS>
July 3, 2015
Company name: Tosei Corporation
Stock listing: TSE / SGX
Securities code number: 8923 / S2D
Representative: Seiichiro Yamaguchi, President and CEO
URL: http://www.toseicorp.co.jp/english/
Contact:
Noboru Hirano, Director and CFO
Phone: +81-3-3435-2864
Submission of Quarterly Securities Report (Shihanki-Houkokusho):July 10, 2015 (scheduled)
Commencement of dividend payments:―
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for institutional investors and analysts)
Note: All amounts are rounded down to the nearest million yen.

1. Consolidated Financial Results for the Six Months Ended May 31, 2015
(December 1, 2014 – May 31, 2015)(1) Consolidated Operating Results (cumulative)
Six months ended
May 31, 2015
Six months ended
May 31, 2014(%)

22,343

9.2

4,550

84.0

4,170

98.6

2,653

106.0

20,458(11.4)

2,473(10.2)

2,100(12.0)

1,288(11.9)

Profit attributable toowners of the parent(¥ million)(%)
Six months ended
May 31, 2015
Six months ended
May 31, 2014

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

Revenue(¥ million)

Total comprehensive
income for the period(¥ million)(%)

Basic earnings
per share

Diluted earnings
per share
(¥)

(¥)

2,653

106.0

2,782

115.9

54.97

–

1,288

(11.9)

1,289(12.2)

26.68–(2) Consolidated Financial Position
Total assets

As of
May 31, 2015
As ofNovember 30, 2014

Total equity

Ratio of equity
attributable to owners of
the parent to total assets(¥ million)(%)

Equity attributable toowners of the parent(¥ million)(¥ million)

90,24334,931

34,93138.7

80,85832,72732,72740.5

1

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

1Q-end(¥)––

Fiscal year ended November 30, 2014
Fiscal year ending November 30, 2015
Fiscal year ending November 30, 2015
(Forecast)

0.00
0.00

Total
(¥)

–

12.00

12.00

–

14.00

14.00

Note: Revision to the most recently released dividend forecasts: No

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2015
(December 1, 2014 – November 30, 2015)(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Revenue
Operating profit
Profit before tax
per shareowners of the parent(¥ million)(%) (¥ million)(%) (¥ million)(%) (¥ million)(%)(¥)
Fiscal year ending
November 30, 2015

51,500

3.0

6,500

16.9

5,583

19.7

3,555

23.7

73.64

Note: Revision to the most recently released earnings forecasts: Yes* 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:Yes(b) Changes in accounting policies due to other reasons: No(c) Changes in accounting estimates:
No
Note: For details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting
Policies and Changes in Accounting Estimates” on page 9 of the attached materials.

(3) Number of issued shares (ordinary shares)(a) Number of issued shares at the end of the period (including treasury shares)
As of May 31, 2015
48,284,000 shares
As of November 30, 2014
48,284,000 shares(b) Number of treasury shares at the end of the period
As of May 31, 2015–
As of November 30, 2014–(c) Average number of outstanding shares during the period (cumulative)
48,284,000 shares
Three months ended May 31, 2015
Three months ended May 31, 2014
48,284,000 shares

2* Information on 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.
* Proper use of earnings forecasts and other notes
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 on Consolidated Earnings Forecasts” on page 8 of theattached materials.

3

○ 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 (Notes) ................................................................................... 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................................................................................................. 154

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the six months ended May 31, 2015, the Japanese economy experienced a modest recovery
reflecting the effects of various governmental measures and a fall in crude oil prices. As capital investment
followed a path of modest increases due to an improvement in corporate earnings, personal consumption
also remained firm amid continued steady improvement in the employment and income environments, andinvestment in housing is expected to experience an upturn from now.
In the real estate industry where Tosei Group operates, new property acquisitions by J-REITs, which
drive real estate transactions in Japan, stayed roughly level with those of the same period of the previous
fiscal year. Nevertheless, foreign companies, foreign investment funds and others actively acquired realestate due to expectations of higher real estate prices and a perception that they are undervalued for money
resulting from yen depreciation. As a result, the total acquisition amount of properties acquired by listedcompanies and others in the 2014 fiscal year for most companies in Japan (April 2014 to March 2015) wasapproximately ¥5.3 trillion, an increase of 15% compared with the previous fiscal year (according to asurvey by a private research institution).
In the Tokyo metropolitan area condominium market, the number of newly-built condominium units
sold in April 2015, the latest data available, fell 7.6% year on year to 2,286 units, the fourth straight monthof decline, partly reflecting supply adjustments by developers. On the other hand, looking at the contract
rate, which indicates the trend of sales, the rate in April 2015 rose 0.8 percentage point year on year to75.5%. This rise occurred despite sluggish sales of properties in suburbs of the Tokyo metropolitan area,
which are susceptible to the impact of rising building costs, and was driven by sales in central Tokyo,
where highly priced condominiums sold well. With the rate maintained at 70% or more, which is viewed
as indicating favorable sales, conditions were firm (according to a survey by a private research institution).
In the Tokyo metropolitan area build-for-sale detached house market, partly due to softening of the
impact from the consumption tax hike, housing starts in March 2015, the latest data available, returned into
positive figures and totaled 4,602 units, which was up 0.3% year on year (according to the Ministry ofLand, Infrastructure, Transport and Tourism data). Although it is necessary to continue monitoring thetrend in supply and demand, further recovery is expected on the back of market revitalization policies suchas expansion in reduced tax rates on home loans and improved consumer sentiment due to improvement in
the income environment.
In the office leasing market of Tokyo’s five business wards, demand for office relocation by corporates
continued to be firm, and the vacancy rate in April 2015 was 5.3%, down 1.3 percentage points comparedwith the same month of the previous fiscal year. The average asking rent rose for the 16th consecutive
month to ¥17,257/tsubo, up 4.9% compared with the same month of the previous fiscal year (according toa survey by a private research institution).
In the real estate securitization market, as of the end of December 2014, the balance of assets undermanagement at private placement funds was ¥15.1 trillion, down 6.2% from the previous year, while thebalance of assets under management at J-REITs was ¥12.6 trillion, up 12.9%. As a result, the total balancein this market expanded to ¥27.7 trillion. Total market capitalization of J-REITs exceeded ¥10 trillion,
bringing the market to a level where it ranks second in scale to the US REIT market. Nevertheless, thepace of new property acquisitions by J-REITs slowed down due to an intensification in competition for
acquisitions, and the total acquisition amount of properties during 2014 was ¥1.6 trillion, down 30.2%
compared with the previous fiscal year. The pace continued to be slightly weak from January throughMarch 2015 (according to a survey by a private research institution).
Amid this operating environment, in the Revitalization Business, the Tosei Group made steady progresson the sale of assets centered on properties aimed at the investment market, such as income-generating
office buildings and apartments, and also the Group pushed ahead with sales, mainly of detached houses,in the Development Business. In addition, we proactively acquired income-generating properties and landfor development as future sources of income.
As a result, consolidated revenue for the six months ended May 31, 2015 totaled ¥22,343 million (up9.2% year on year), operating profit was ¥4,550 million (up 84.0%), profit before tax was ¥4,170 million(up 98.6%), and profit for the period was ¥2,653 million (up 106.0%).

5

Performance by business segment is shown below:
Revitalization Business
During the six months ended May 31, 2015, the segment sold 18 properties it had renovated, including
Toyocho Tosei Building (Koto-ku, Tokyo), Shinjuku 6-chome Building (Shinjuku-ku, Tokyo),
Ogawamachi Tosei Building (Chiyoda-ku, Tokyo), Shibuya 4-chome Building (Shibuya-ku, Tokyo) and
Kannai Tosei Building (Yokohama-shi, Kanagawa). In addition, the segment sold 34 units in the Restyling
Business, including Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa), Hilltop Yokohama Higashi
Terao (Yokohama-shi, Kanagawa) and Renai Kamakura Ueki (Kamakura-shi, Kanagawa). In the six
months ended May 31, 2015, it also acquired a total of 11 income-generating office buildings, commercial
facilities and apartments and four land lots for renovation and sales purposes. In addition, consolidated
subsidiary TOSEI SINGAPORE PTE. LTD. started acquiring properties in Malaysia with the acquisitionof three units of private portions of income-generating office buildings and apartments in Kuala Lumpur.
As a result, revenue in this segment was ¥13,759 million (up 7.2% year on year) and the segment profit
was ¥3,300 million (up 160.1%).
Development Business
During the six months ended May 31, 2015, the segment focused on the sale of detached houses, for which
there was firm demand. The segment sold 57 detached houses at such properties as THE Palms Court
Kashiwa Hatsuishi (Kashiwa-shi, Chiba), THE Palms Court Mitsuike Kouen (Yokohama-shi, Kanagawa),
THE Palms Court Bunkyo Honkomagome (Bunkyo-ku, Tokyo) and THE Palms Court Kawasaki Daishi(Kawasaki-shi, Kanagawa). In addition, the segment sold Palms Nishidai, which is a newly-built apartment,
and four land lots. In the six months ended May 31, 2015, it also acquired one land lot for a detachedhousing project.
As a result, revenue in this segment was ¥4,162 million (up 32.0% year on year) and the segment profit
was ¥593 million (up 105.0%).
Rental Business
During the six months ended May 31, 2015, while the segment sold nine buildings of its inventory assets
held for leasing purposes, it newly acquired a total of seven properties including income-generating officebuildings, commercial facilities and apartments. In addition, the segment made efforts to lease vacancies
out following acquisitions and also focused on leasing activities for its holding non-current assets andinventory assets.
As a result, revenue in this segment was ¥1,801 million (down 1.8% year on year) and the segment profit
was ¥806 million (down 30.0%).
Fund and Consulting Business
During the six months ended May 31, 2015, while the balance of assets under management decreased by¥53,790 million, due mainly to property dispositions by funds, the balance increased by ¥247,052 million,
due mainly to new asset management contracts of large projects the segment obtained. The acquisition ofsuch large project contracts increased asset management fees and contributed to revenue.
As a result, revenue in this segment was ¥757 million (up 61.4% year on year) and the segment profit was¥327 million (up 201.5%).
As of May 31, 2015, the balance of assets under management (Note) totaled ¥493,869 million.
Note: The balance of assets under management includes the balance of assets that were subject toconsulting contracts, etc.
Property Management Business
As of May 31, 2015, the number of properties managed by the segment including office buildings, parking
lots and schools was 354, an increase of four from May 31, 2014, while the number of condominium andapartment buildings under management decreased by 12 to 189, making the total number of properties
under management 543, a decrease of eight from May 31, 2014.
As a result, revenue in this segment was ¥1,442 million (down 4.1% year on year) and segment profit was¥88 million (down 39.5%).

6

Alternative Investment Business
During the six months ended May 31, 2015, membership fees from running a sports club contributed toincome in this segment. In addition, the segment also focused on leasing activities for properties acquiredby a substitute performance.
As a result, revenue in this segment was ¥418 million (down 36.7% year on year) and the segment profit
was ¥92 million (down 21.1%).
(2) Qualitative Information Regarding Consolidated Financial Positions
1. Financial Positions
As of May 31, 2015, total assets were ¥90,243 million, an increase of ¥9,385 million compared with
November 30, 2014, while total liabilities were ¥55,312 million, an increase of ¥7,181 million.
This was primarily due to an increase in inventories resulting from purchase of properties exceeding salesof properties in the Revitalization Business and Development Business, and an increase in borrowings
from financial institutions.
Total equity increased by ¥2,203 million to ¥34,931 million, mainly due to an increase in retained earnings
and payment of cash dividends.
2. Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of May 31, 2015 totaled ¥16,809 million, up ¥708
million compared with November 30, 2014.
The cash flows for the six months ended May 31, 2015 and factors contributing to those amounts are as
follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥5,365 million (down 43.8% year on year). This is mainly due
to profit for the period before tax of ¥4,170 million, as well as an increase in inventories of ¥7,998 million,
which was a result of property acquisitions in the Revitalization Business and Development Business, andincome taxes paid of ¥1,370 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥161 million (down 91.0% year on year). This is primarily due
to purchases of investment properties totaling ¥687 million and proceeds from sales of available-for-salefinancial assets totaling ¥444 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥6,235 million (down 44.3% year on year). This mainlyreflects ¥12,277 million in the repayments of non-current borrowings and ¥577 million in cash dividends
paid, despite ¥19,713 million in proceeds from non-current borrowings.

7

(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The Company made the following revision in its consolidated earnings forecasts for the full-year
ending November 30, 2015 (December 1, 2014 to November 30, 2015), which had been announced on
January 14, 2015.
Revenue(¥ million)

Operating profit(¥ million)

Profit before
tax (¥ million)

Profitattributable toowners of the parent

Basicearnings
per share(¥ million)(¥)

Previous forecasts (A)56,425

6,000

5,042

3,258

67.48

Revised forecasts (B)51,500

6,500

5,583

3,555

73.64

Amount of change (B-A)(4,925)

499

540

297

Percentage change (%)

(8.7)

8.3

10.7

9.1

As a result of a review of the selling period for property initially planned to be sold in the period underreview, the revenue forecast was revised to ¥51,500 million, a decrease of ¥4,925 million from theprevious forecast.
With respect to the profit forecasts, although there was an impact from the above-mentioned review ofthe selling period, the profit return from property sold during the six months ended May 31, 2015,
exceeded the initial forecast. As a result, the full-year operating profit forecast was revised to ¥6,500
million, an increase of ¥499 million, the full-year profit before tax forecast was revised to ¥5,583 million,
an increase of ¥540 million, and the full-year profit for the year forecast was revised to ¥3,555 million, an
increase of ¥297 million.
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 these forecasts due to various factors.

8

2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
No item to report.
(2) Changes in Accounting Policies and Changes in Accounting Estimates
With the exception of the following items, significant accounting policies that the Group applies incondensed quarterly consolidated financial statements are the same as the accounting policies used in the
consolidated financial statements for the previous fiscal year.
Changes in Accounting Policies
The Group applied the following standards effective from the first quarter of the fiscal year ending
November 30, 2015.
Standard

Name of standard

Overview of new establishment and amendment

IFRIC 21IFRS 10(Revised)
IFRS 12(Revised)

Levies

Accounting for a liability for a levy
Exception to consolidation of a subsidiaries by an entity that
qualifies as an investment entity
Revision of the disclosure method for entities that qualify as
investment entities

Consolidated Financial Statements
Disclosure of Interests in Other
Entities

The above standards have no material impact on the condensed quarterly consolidated financial statements.
Among the above standards, for IFRIC 21, the comparative data have been adjusted retroactively inaccordance with transitional measures.
Additional information(Abolition of Retirement Benefits Plan for Officers)
At the Ordinary General Meeting of Shareholders held on February 25, 2015, the Company resolved tomake final payments of retirement benefits to retiring officers upon abolition of its Retirement Benefits Plan
for Officers.
Accordingly, the full amount of the Company’s “Provision for directors’ retirement benefits” has been
reversed and an unpaid portion of ¥360,711 thousand in final payments has been presented included in“Trade and other payables” in non-current liabilities.

93. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)As of November 30, 2014

As of May 31, 2015

16,100,795
2,049,710
41,565,148
166,612

16,809,332
2,035,318
49,610,113
27,402

59,882,266

68,482,166

3,293,308
13,858,329
77,6752,445,963
780,758
515,765
4,014

3,293,518
14,472,298
105,794
2,194,621
1,280,616
410,356
4,014

20,975,814

21,761,220

80,858,080

90,243,386

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

2,590,792
5,380,269
1,393,664
267,281

1,899,801
9,053,023
1,489,422
211,196

Total current liabilities

9,632,009

12,653,443

2,697,083
35,024,707
697,680
78,764

3,443,354
38,785,302
351,21178,834

AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current 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 non-current assets
Total non-current assets
Total assets

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

10

38,498,235

42,658,703

48,130,244

55,312,146

6,421,392
6,375,317
19,776,474
154,652

6,421,392
6,375,317
21,851,013
283,516

32,727,836

34,931,240

80,858,080

90,243,386

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Six months ended
May 31, 2014

Six months ended
May 31, 2015

Revenue

20,458,238

22,343,163

Cost of revenue

15,903,261

15,272,904

Gross profit

4,554,976

7,070,258

Selling, general and administrative expenses

2,114,733

2,531,621

Other income

35,71535,663

Other expenses

2,259

23,332

Operating profit

2,473,698

4,550,967

Finance income

1,645

1,557

Finance costs

374,754

381,596

Profit before tax

2,100,589

4,170,927

Income tax expense812,274

1,516,980

Profit for the period

1,288,315

2,653,947

(63)

3,624

(372)

133,017

1,126(7,776)

Subtotal

690

128,864

Other comprehensive income for the period, net of
tax

690

128,864

1,289,006

2,782,811

1,288,315

2,653,947

1,289,006

2,782,811

Basic earnings per share (yen)

26.68

54.97

Diluted earnings per share (yen)－－Other comprehensive income
Items that may be transferred to net profit or loss
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

Total comprehensive income for the period
Profit attributable to:
Owners of the parent
Total comprehensive income attributable to:
Owners of the parent
Earnings per share attributable to owners of the parent

11

(3) Condensed Consolidated Statement of Changes in Equity
Six months ended May 31, 2014 (December 1, 2013 – May 31, 2014)(¥ thousand)Other
components ofequityTotal equity

17,294,366

1,348

30,092,426－

1,288,315－

1,288,315

－

－

－

690

690

Total comprehensive income
for the period－－

1,288,315

690

1,289,006

Dividends of surplus－－(386,272)－(386,272)

6,421,392

6,375,317

18,196,410

2,039

30,995,160

Share capital

Capital reserves

Retainedearnings

6,421,392

6,375,317

Profit for the period－

Other comprehensive income

Balance at December 1, 2013

Balance at May 31, 2014

Six months ended May 31, 2015 (December 1, 2014 – May 31, 2015)(¥ thousand)Other
components ofequityTotal equity

19,776,474

154,652

32,727,836－

2,653,947－

2,653,947－－－

128,864

128,864－－

2,653,947

128,864

2,782,811－－(579,408)－(579,408)

6,421,392

6,375,317

21,851,013

283,516

34,931,240

Share capital

Capital reserves

Retainedearnings

6,421,392

6,375,317

Profit for the period－

Other comprehensive income
Total comprehensive income
for the period
Dividends of surplus

Balance at December 1, 2014

Balance at May 31, 201512

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Six months ended
May 31, 2014
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividend income
Interest expenses
Gain on available-for-sale financial assets
Loss on retirement of property, plant and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other, net

Six months ended
May 31, 2015

2,100,589
90,6504,170,927
106,365(22,992)(421,378)(1,645)
374,754(531)
1,588(520,411)(11,344,539)
627,817(3,467)(1,557)
381,596－81(393,558)(7,998,416)
167,154(7,771)

SubtotalInterest and dividend income received
Income taxes paid

(8,698,186)
1,637(849,090)(3,996,555)
1,557(1,370,113)

Net cash from (used in) operating activities(9,545,640)(5,365,112)－(8,608)(1,094,520)(5,302)(726,630)
53,600140,000(23,653)(687,382)(37,709)(1,650)
4,321

1,156

444,960

28
174

35

Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of available-for-sale financial assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
assetsCollection of loans receivable
Other, net
Net cash from (used in) investing activities(1,780,102)－(161,079)

Cash flows from financing activities
Net increase (decrease) in current borrowings
Proceeds from non-current borrowings
Repayments of non-current borrowings
Cash dividends paid
Interest expenses paid
Other, net

744,000
20,087,000(8,671,528)(383,870)(571,748)(885)－
19,713,000(12,277,858)(577,728)(620,607)(1,792)

Net cash from (used in) financing activities

11,202,966

6,235,013(122,776)
14,711,997

708,821
16,100,795

(54)

(284)

14,589,166

16,809,332

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
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
1. Segment Information
The Group’s reportable segments are components of the Group about which separate financial
information is available that the Board of Directors regularly conducts deliberations to determine theallocation of management resources and to assess the performance. 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 and Consulting
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 as well as apartment and office buildings to investors. In the Rental Business, theGroup 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 Businessprovides comprehensive property management services. In the Alternative Investment Business, theGroup acquires real estate collateralized loans and sells the properties acquired through collection ofdebt and acceptance of substitute performance.
The Group’s revenue and profit/loss by reportable segment are as follows:
Six months ended May 31, 2014
(December 1, 2013 – May 31, 2014)(¥ thousand)
Alternative
Property
Management Investment
Business
Business

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Revenue from externalcustomers

12,835,618

3,153,146

1,834,843

469,561

1,503,971

661,096－

20,458,238

Intersegment revenue－－

28,546

5,795

241,580－(275,922)－

12,835,618

3,153,146

1,863,390

475,356

1,745,552

661,096(275,922)

20,458,238

1,269,162

289,565

1,151,647

108,502

146,660

117,215(609,055)

2,473,698

Adjustment

Total

Revenue

Total
Segment profit
Finance income/costs, net(373,109)

Profit before tax

2,100,589

Six months ended May 31, 2015
(December 1, 2014 – May 31, 2015)(¥ thousand)
Alternative
Property
Management Investment
Business
Business

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Revenue from externalcustomers

13,759,988

4,162,916

1,801,599

757,820

1,442,682

418,155－

22,343,163

Intersegment revenue－－

27,611

3,490

218,710－(249,811)－

13,759,988

4,162,916

1,829,210

761,310

1,661,393

418,155(249,811)

22,343,163

3,300,964

593,493

806,107327,152

88,78492,535(658,072)

4,550,967

Adjustment

Total

Revenue

Total
Segment profit
Finance income/costs, net(380,039)

Profit before tax

4,170,927

14

2. Dividends
Dividends paid in the six months ended May 31, 2014 and May 31, 2015 are as follows:
Six months ended May 31, 2014
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 27, 2014

Total dividends(¥ thousand)

8386,272

Record date

Effective dateNovember 30, 2013

February 28, 2014

Record date

Effective dateNovember 30, 2014

February 26, 2015

Six months ended May 31, 2015
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 25, 2015

Total dividends(¥ thousand)

12579,408

3. Earnings per ShareSix months ended
May 31, 2014
Profit attributable to owners of the parent

Six months ended
May 31, 2015(¥ thousand)

1,288,315

2,653,947

Weighted average number of outstanding ordinary shares(shares)

48,284,000

48,284,000

26.68

54.97

Basic earnings per share(¥)

Notes: 1. Basic earnings per share is calculated by dividing profit attributable to owners of the parent, by the weighted average
number of ordinary shares outstanding during the reporting period.
2. Information on diluted earnings per share is omitted due to an absence of potential shares.

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

15