This is an English translation of the official announcement in Japanese that was released on July 4, 2014. 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, 2014
<IFRS>
July 4, 2014
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, 2014 (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, 2014
(December 1, 2013 – May 31, 2014)(1) Consolidated Operating Results (cumulative)
Revenue(¥ million)
Six months ended
May 31, 2014
Six months ended
May 31, 2013

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

(%)

Operating profit(¥ million)(%)

20,458 △11.4

2,473 △10.2

2,100 △12.0

1,288 △11.9

23,090

2,754

2,387

1,462

127.6

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

282.9

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

497.9

Basic earnings
per share

559.0

Diluted earnings
per share(¥)(¥)
Six months ended
1,288 △11.9
1,289 △12.2
26.68－
May 31, 2014
Six months ended
1,462 559.0
1,468 561.8
32.02－
May 31, 2013
Notes:
1. The figures above for the six months ended May 31, 2013 are restatements in line with partial changes in accounting policies.
For details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting Policies andChanges in Accounting Estimates” on page 5 of the attached materials.
2. 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 share split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Ratio of equity
attributable to owners of
the parent to total assets(¥ million)(¥ million)(¥ million)(%)
As of May 31, 2014
84,60930,99530,995
36.6
As of Nov. 30, 2013
71,28330,09230,09242.2
Note: The figures above as of November 30, 2013 are restatements in line with partial changes in accounting policies. For
details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting Policies andChanges in Accounting Estimates” on page 5 of the attached materials.
Total assets

Total equity

Equity attributable toowners of the parent

2. Dividends
Annual dividends per share
2Q-end3Q-endYear-end
(¥)
(¥)
(¥)
(¥)
Year ended Nov. 30, 2013
–
0.00
–
8.00
Year ending Nov. 30, 2014–
0.00
Year ending Nov. 30, 2014 (Forecast)–
10.00
Note: Revision to the most recently released dividend forecasts: No
1Q-end

Total
(¥)
8.00
10.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2014
(December 1, 2013 – November 30, 2014)(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, 2014

41,817

19.2

4,618

18.1

3,800

18.1

2,309

15.3

47.82

Note: Revision to the most recently released earnings forecasts: No* 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 other than (a) above: 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 5 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, 2014
48,284,000 shares
As of November 30, 2013
48,284,000 shares(b) Number of treasury shares at the end of the period
As of May 31, 2014–
As of November 30, 2013–(c) Average number of outstanding shares during the period (cumulative)
48,284,000 shares
Three months ended May 31, 2014
Three months ended May 31, 2013
45,684,000 shares
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the aforementioned numbers ofshares were calculated on the assumption that share split was implemented at the beginning of the previous fiscalyear.

* 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 4 of theattached materials.

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 2(1) Qualitative Information Regarding Consolidated Operating Results........................................................ 2(2) Qualitative Information Regarding Consolidated Financial Positions ...................................................... 3(3) Qualitative Information Regarding Consolidated Earnings Forecasts ...................................................... 4
2. Matters Related to Summary Information (Notes) ................................................................................... 5(1) Changes in Significant Subsidiaries during the Period ............................................................................. 5(2) Changes in Accounting Policies and Changes in Accounting Estimates .................................................. 5
3. Condensed Quarterly Consolidated Financial Statements ....................................................................... 6(1) Condensed Consolidated Statement of Financial Position ........................................................................ 6(2) Condensed Consolidated Statement of Comprehensive Income ............................................................... 7(3) Condensed Consolidated Statement of Changes in Equity ....................................................................... 8(4) Condensed Consolidated Statement of Cash Flows .................................................................................. 9(5) Notes on Going Concern Assumption ..................................................................................................... 10(6) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................ 10(7) Notes on Significant Subsequent Events................................................................................................. 111

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
In the six months ended May 31, 2014, the Japanese economy recovered at a moderate pace. Consumer
spending showed signs of weakness, with demand falling back after a spike ahead of the increase in
consumption tax rate in April 2014, but corporate earnings and employment conditions improved steadily,
supported by bold monetary easing measures and other economic policies. There were also signs of an end
to deflation amid a trend of rising consumer prices.
In the real estate industry where Tosei Group operates, domestic real estate transactions by listedcompanies, J-REITs and other business entities totaled as much as approximately ¥4.6 trillion in the period
from April 2013 to March 2014, an increase of 74% from roughly ¥2.7 trillion in the period from April
2012 to March 2013. This strong growth was driven by J-REITs acting as leaders of domestic real estatetransactions, and active transactions by sectors of privately placed funds, domestic business entities andoverseas funds. Also, according to officially published 2014 land price data announced in March this year,
land prices rose in Japan’s three major metroporitan areas for the first time in six years since the Lehman
Crisis. The recovery trend in the real estate market is gaining strength more and more. (According to asurvey by a private research institution)
In the Tokyo metropolitan area condominium market, the number of condominiums supplied to themarket in April 2014, the latest data available, fell 39.6% year on year to 2,473 units, the third straightmonth of decline, reflecting strong front-loading sales of condominium inventories in the previous fiscal
year. The closing rate of sales contracts in the same month also declined for the third straight month, down
3.5 percentage points year on year to 74.7%, mainly due to a pullback in demand, which spiked before
consumption tax rate was increased. However, the closing rate remained above the 70% line, which isviewed as indicating favorable conditions. (According to a survey by a private research institution)
In the Tokyo metropolitan area built-for-sale detached house market, both supply and demandconditions remained firm, with the number of new housing starts recovering to roughly 5,000 units permonth, compared with around 3,000 units per month in 2009. Housing starts in April 2014, the latest data
available, totaled 5,163 units, down 2.2% year on year, and up 12.5% month on month. (Ministry of Land,
Infrastructure, Transport and Tourism data)
In the office leasing market of Tokyo’s five business wards, the occupancy rate continued to improve,reflecting firm demand for office relocation and increased office space from tenant companies. The
vacancy rate in April 2014, the latest data available, declined 1.90 percentage points year on year to 6.64%,
while the average asking rent rose 0.80% month on month to ¥16,455/tsubo, which was 0.19% lower than
the same month of the previous fiscal year. The average asking rent has now experienced modest increases
for four straight months. (According to a survey by a private research institution)
In the real estate securitization market, J-REITs continued to actively acquire properties. In 2013, theproperties acquired by J-REITs totaled ¥2.2 trillion, a large increase from ¥780 billion in the previous
fiscal year. (According to a survey by a private research institution) As of the end of December 2013, thetotal value of assets under management was ¥27.3 trillion, comprising ¥11.2 trillion at J-REITs and ¥16.1
trillion at privately placed funds. (According to a survey by a private institution) The J-REIT market islikely to remain firm in the near term, supported by continued acquisition of J-REITs by the Bank of Japan,
growth in purchases of investment trusts following the introduction of NISAs in January 2014, and inflows
from public pension funds. The favorable fund procurement environment is also likely to support further
growth in the J-REIT market.
Amid this operating environment, in the Revitalization Business, the Tosei Group made steady progresson the sale of assets such as income-generating office buildings and apartment buildings. In theDevelopment Business, the Group sold detached houses, condominiums and other products to end users.
The Group also proactively acquired income-generating properties and development sites, which will be
the source of the Group’s future income.
As a result, consolidated revenue for the six months ended May 31, 2014 totaled ¥20,458 million(down 11.4% year-on-year), operating profit was ¥2,473 million (down 10.2%), profit for the period
before tax was ¥2,100 million (down 12.0%), and profit for the period was ¥1,288 million (down 11.9%).

2

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

Performance by business segment is shown below.
Revitalization Business
During the six months ended May 31, 2014, the segment sold 13 properties it had renovated, including
Akihabara Tosei Building (Chiyoda-ku, Tokyo), Ueno Takeuchi Building (Taito-ku, Tokyo), FLEG
Nishiazabu (Minato-ku, Tokyo), and Nishijima Building (Toshima-ku, Tokyo), and a land lot at Shinjuku
6-chome, Shinjuku-ku, Tokyo. In addition, the segment sold 30 units in the Restyling Business, including
Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa), Hilltop Yokohama Higashi Terao (Yokohama-shi,
Kanagawa), and Estage Kaminoge (Setagaya-ku, Tokyo). In the six months ended May 31, 2014, it alsoacquired for renovation and sales purposes a total of 17 income-generating office buildings and apartmentbuildings and two land lots.
As a result, revenue in this segment was ¥12,835 million (up 46.8% year-on-year) and the segment
profit was ¥1,269 million (down 15.2%).
Development Business
During the six months ended May 31, 2014, the segment focused on the sale of newly-built
condominiums and detached houses, which were seeing firm demand. The segment sold 33 newly-built
condominium units in THE Palms Nihonbashi Kodenmacho Visage (Chuo-ku, Tokyo), as well as a total of
28 detached houses such as properties at Palms Court Setagaya Okamoto (Setagaya-ku, Tokyo), Palms
Court Okusawa 1-Chome (Setagaya-ku, Tokyo) and Palms Court Yokohama Hakuraku (Yokohama-shi,
Kanagawa). The segment also acquired seven land lots for detached house projects and one land lot for astore development project.
As a result, revenue in this segment was ¥3,153 million (down 69.7% year-on-year) and the segment
profit was ¥289 million (down 58.8%).
Rental Business
During the six months ended May 31, 2014, while the segment sold 12 buildings of its inventory assets
held for leasing purposes, it acquired a total of 16 income-generating office buildings and apartmentbuildings, and made an effort to lease them out. The segment also focused on leasing activities for its preexisting non-current assets and inventory assets.
As a result, revenue in this segment was ¥1,834 million (up 55.6% year-on-year), and the segment
profit was ¥1,151 million (up 68.0%).
Fund and Consulting Business
During the six months ended May 31, 2014, while the segment obtained new asset management
contracts in the amount of ¥99,015 million, the balance of assets under management decreased by ¥41,441
million, due mainly to the property dispositions by funds. Consequently, the fee income relating toacquisitions and dispositions of properties for funds made a contribution to the revenue.
As a result, revenue in this segment was ¥469 million (down 51.3% year-on-year) and the segment
profit was ¥108 million (down 80.0%).
As of May 31, 2014, the balance of assets under management (Note) totaled ¥305,603 million.
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business
As of May 31, 2014, the number of properties managed by the Company including office buildings,
parking lots and schools was 350, an increase of 26 from May 31, 2013, while the number ofcondominium and apartment buildings under management decreased by 14 to 201, making the total
number of properties under management 551, an increase of 12 from May 31, 2013.
As a result, revenue in this segment was ¥1,503 million (down 5.6% year-on-year) and the segment
profit was ¥146 million (up 114.6%).

3

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

Alternative Investment Business
During the six months ended May 31, 2014, the segment focused on leasing of the properties acquiredby accepting a substitute performance.
As a result, revenue in this segment was ¥661 million (up 249.4% year-on-year) and the segment profit
was ¥117 million (up 337.3%).
(2) Qualitative Information Regarding Consolidated Financial Positions
1) Financial Positions
As of May 31, 2014, total assets were ¥84,609 million, an increase of ¥13,326 million compared with
November 30, 2013, while total liabilities were ¥53,614 million, an increase of ¥12,423 million.
This mainly reflected 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 ¥902 million to ¥30,995 million compared with November 30, 2013,
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, 2014 totaled ¥14,589 million, down ¥122
million from November 30, 2013. This primarily reflected profit for the period before tax of ¥2,100
million, steady progress in property acquisitions in the Revitalization Business and Development
Business and an increase in borrowings from financial institutions accompanying such property
acquisitions.
The respective cash flow positions and factors for the six months ended May 31, 2014 are as follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥9,545 million (net cash provided by operating activities
totaled ¥5,819 million in the same period of the previous fiscal year). This is mainly attributed to the
profit for the period before tax of ¥2,100 million and an increase in inventories of ¥11,344 million
resulting from property acquisitions in the Revitalization Business and Development Business.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥1,780 million (net cash provided by investing activities
totaled ¥90 million in the same period of the previous fiscal year). This primarily due to purchase ofinvestment property of ¥1,094 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥11,202 million (net cash used in financing activities
totaled ¥2,363 million in the same period of the previous fiscal year). This mainly reflected proceedsfrom non-current borrowings of ¥20,087 million, offset by ¥8,671 million in repayments of non-current
borrowings and ¥383 million in cash dividends paid.

(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The business results during the six months ended May 31, 2014 basically remained stable as planned
and there is no change on the full-year consolidated earnings forecasts, announced on January 14, 2014.
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.

4

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

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, 2014.
Standard

Name of standard

IAS 19

Employee Benefits

IFRS 10

Consolidated Financial
Statements

IFRS 11

Joint Arrangements

IFRS 12Disclosure of Interests in
Other Entities

IFRS 13

Fair Value Measurement

Overview of new establishment and amendment
Recognition of actuarial gains and losses and past
service cost, and presentation and disclosure of postemployment benefits
Clarification and application of the concept of control
as a basis to determine which entities are to beconsolidated
Principles for the financial reporting by parties to a
joint arrangement, and supersedence of former IAS
31 and SIC 13
Disclosure requirements on interests in subsidiaries,
joint arrangements, associates and unconsolidated
structured entities
Establishment of a framework when other standards
require fair value measurement

The above standards have no material impact on the condensed quarterly consolidated financial statements.
Among the above standards, for IAS 19, the comparative data have been adjusted retroactively inaccordance with transitional measures.
Changes in Presentation
In the past, sales expenses such as advertising costs for real estate for sale were posted in “Cost ofrevenue”, but from the first quarter of the current fiscal period, such expenses are being posted in “Selling,
general and administrative expenses.”This change was made in order to more accurately present the actual situation, due to the fact that the
aforementioned sales expenses more resemble sales costs than cost of goods sold these days.
To reflect this change in presentation, reclassification of accounts has been made for the condensed
consolidated statement of comprehensive income for the six months ended May 31, 2013. As a result,¥907,972 thousand included in “Cost of revenue” in the condensed consolidated statement ofcomprehensive income for the six months ended May 31, 2013 were reclassified to “Selling, general andadministrative expenses”.

5

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

3. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)As of November 30, 2013

As of May 31, 2014

14,711,997
902,131
38,040,625
24,781

14,589,166
1,043,080
49,942,653
24,55753,679,536

65,599,457

3,304,792
12,703,600
31,598810,105
188,884
560,541
4,014

3,292,176
13,231,983
31,052
1,485,613
531,022434,338
4,014

17,603,536

19,010,201

71,283,073

84,609,659

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

2,323,705
7,587,433
865,256
209,124

1,663,331
8,148,647
696,987
187,122

Total current liabilities

10,985,520

10,696,088

2,107,809
27,449,160
624,154
24,003

3,212,866
39,046,532
637,914
21,097

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

6

30,205,126

42,918,410

41,190,647

53,614,498

6,421,392
6,375,317
17,294,366
1,348

6,421,392
6,375,317
18,196,410
2,039

30,092,426

30,995,160

71,283,073

84,609,659

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Six months ended
May 31, 2013

Six months ended
May 31, 2014

Revenue

23,090,689

20,458,238

Cost of revenue

17,665,271

15,903,261

Gross profit

5,425,418

4,554,976

Selling, general and administrative expenses

2,676,337

2,114,733

Other income

17,10335,715

Other expenses

11,691

2,259

Operating profit

2,754,493

2,473,698

Finance income

1,783

1,645

Finance costs

369,010374,754

Profit before tax

2,387,266

2,100,589

Income tax expense

924,491

812,274

Profit for the period

1,462,775

1,288,315

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

3,719

(63)

1,197

(372)

Net change in fair values of cash flow hedges

712

1,126

Subtotal

5,629

690

Other comprehensive income for the period, net of
tax

5,629

690

1,468,404

1,289,006

1,462,775

1,288,315

1,468,404

1,289,006

Basic earnings per share (yen)

32.02

26.68

Diluted earnings per share (yen)－–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

7

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results(3) Condensed Consolidated Statement of Changes in Equity
Six months ended May 31, 2013 (Dec. 1, 2012 – May 31, 2013)(¥ thousand)
Retainedearnings

Other
components ofequityTotal equity

Share capital

Capital reserves

5,454,673

5,516,499

15,562,315(3,295)26,530,193

Profit for the period－－

1,462,775－

1,462,775

Other comprehensive income

－

－

－

5,629

5,629

Total comprehensive income
for the period－－

1,462,775

5,629

1,468,404

Dividends from surplus－－(274,104)－(274,104)

Retained earnings from newly
consolidated subsidiaries

－

－

(981)

－

(981)

5,454,673

5,516,499

16,750,006

2,333

27,723,512

Balance at Dec. 1, 2012

Balance at May 31, 2013

Six months ended May 31, 2014 (Dec. 1, 2013 – May 31, 2014)(¥ thousand)Other
components ofequityTotal equity

Share capital

Capital reserves

Retainedearnings

6,421,392

6,375,317

17,294,366

1,348

30,092,426

Profit for the period－－

1,288,315－

1,288,315

Other comprehensive income

－

－

－

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

Balance at December 1, 2013

Balance at May 31, 20148

Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Six months ended
Six months ended
May 31 2013
May 31 2014
(Dec. 1, 2012 – May 31, 2013) (Dec. 1, 2013 – May 31, 2014)
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividends income
Interest expenses
Net gain on disposal of available-for-sale financial
assetsLoss 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

2,387,266
86,331

2,100,589
90,65069,902(22,992)(1,783)369,010(1,645)
374,754(7,323)(531)

183
597,623
3,747,571(1,365,027)
1,622

1,588
(329,437)(11,344,539)
436,842(3,467)

SubtotalInterest and dividends income received
Income taxes paid

5,885,377
1,914(68,069)(8,698,186)
1,637(849,090)

Net cash from (used in) operating activities

5,819,222(9,545,640)(1,440)(152,635)(330)(2,000)216,700(8,608)(1,094,520)(5,302)(726,630)
53,60030,782

1,156

43
(911)

28
174

90,209(1,780,102)

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(384,400)
10,485,000(11,828,303)(273,142)(361,484)(885)

744,000
20,087,000(8,671,528)(383,870)(571,748)(885)

Net cash from (used in) financing activities(2,363,215)

11,202,966

3,546,215
9,410,622(122,776)
14,711,997

3,721

(54)

9,036

－

12,969,596

14,589,166

Cash flows from investing activities
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

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 period9Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results(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 by reportable segment are as follows:
Six months ended May 31, 2013
(December 1, 2012 – May 31, 2013)(¥ thousand)
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Alternative
Property
Management Investment
Business
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

8,745,156

10,420,929

1,179,357

963,333

1,592,712

189,201－

23,090,689

Intersegment revenue－－

27,925

2,373

164,412－(194,712)－

8,745,156

10,420,929

1,207,282

965,707

1,757,124

189,201(194,712)

23,090,689

1,496,912

702,005

685,393541,255

68,33626,806(766,215)

2,754,493

Total
Segment profit
Finance income/costs, net(367,226)

Profit before tax

2,387,266

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

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Tosei Corporation (8923) FY2014 Q2 Consolidated Financial Results

2. Dividends
Dividends paid in the six months ended May 31, 2013 and May 31, 2014 are as follows:
Six months ended May 31, 2013
Resolution
Ordinary General Meetingof Shareholders held on
February 26, 2013

Dividends per share(¥)

Total dividends(¥ thousand)

600

274,104

Record date

Effective dateNovember 30, 2012

February 27, 2013

Record date

Effective dateNovember 30, 2013

February 28, 2014

Six months ended May 31, 2014
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2014

Dividends per share(¥)

Total dividends(¥ thousand)

8386,272

The Company split its shares by 100 for 1, effective July 1, 2013. The dividend per share the record date
for which falls on or before June 30, 2013 was presented using the pre-share split figures.
3. Earnings per ShareSix months ended
May 31, 2013
(Dec. 1, 2012 – May 31, 2013)

Six months ended
May 31, 2014
(Dec. 1, 2013 – May 31, 2014)

1,462,775

1,288,315

45,684,000

48,284,000

32.02

26.68

Profit for the period attributable to owners of the parent(¥ thousand)
Weighted average number of ordinary shares outstanding(shares)
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.
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 share 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.

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