This is an English translation of the official announcement in Japanese that was released on October 5, 2016. 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 Nine Months of the Fiscal Year Ending November 30, 2016
<IFRS>
October 5, 2016
Company name: Tosei Corporation
Stock listing:
Securities code number: 8923 / S2D
Representative: Seiichiro Yamaguchi, President and CEO
URL:
Contact:
Noboru Hirano, Director and CFO
Phone:
Submission of Quarterly Securities Report (Shihanki-Houkokusho):Commencement of dividend payments:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting: No

TSE / SGX
http://www.toseicorp.co.jp/english/+81-3-3435-2865
October 7, 2016 (scheduled)―
Yes

Note: All amounts are rounded down to the nearest million yen.
1.

Consolidated Financial Results for the Nine Months Ended August 31, 2016
(December 1, 2015 – August 31, 2016)(1) Consolidated Operating Results (cumulative)
Nine months ended
August. 31, 2016
Nine months ended
August. 31, 2015

Nine months ended
August. 31, 2016
Nine months ended
August. 31, 2015

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

Revenue(¥ million)(%)

Operating profit(¥ million)(%)

39,139

41.7

8,823

65.8

8,203

72.9

5,379

76.4

27,627

2.0

5,322

48.9

4,743

59.1

3,049

66.4

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

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

5,379

76.4

5,333

3,049

66.4

3,287

Basic earnings
per share

Diluted earnings
per share
(¥)

(¥)

62.2

111.40

－

78.9

63.15

－

(2) Consolidated Financial Position(¥ million)(¥ million)(¥ million)

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

111,393

40,82240,822

36.6

93,19636,22836,228

38.9

Total assets

As ofAugust. 31, 2016
As ofNovember. 30, 2015

Total equity

1

Equity attributable toowners of the parent

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

1Q-end(¥)

Fiscal year ended November 30, 2015–
Fiscal year ending November 30, 2016–
Fiscal year ending November 30, 2016
(Forecast)
Note: Revision to the most recently released dividend forecasts: No

0.00
0.00

–
–

Total
(¥)

16.00

16.00

22.00

22.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2016
(December 1, 2015 – November 30, 2016)(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, 2016

53,562

24.5

9,384

36.2

8,500

40.7

5565

34.6

115.26

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:No(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates:No(3) Number of issued shares (ordinary shares)(a) Number of issued shares at the end of the period (including treasury shares)
48,284,000 shares
As of August. 31, 2016
As of November. 30, 2015
48,284,000 shares(b) Number of treasury shares at the end of the period
As of August. 31, 2016–
As of November. 30, 2015–(c) Average number of outstanding shares during the period (cumulative)
Nine months ended August. 31, 2016
48,284,000 shares
Nine months ended August. 31, 2015
48,284,000 shares* 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 7 of theattached materials.

2

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 4(1) Qualitative Information Regarding Consolidated Operating Results........................................................ 4(2) Qualitative Information Regarding Consolidated Financial Positions ...................................................... 6(3) Qualitative Information Regarding Consolidated Earnings Forecasts ...................................................... 7
2. Matters Related to Summary Information (Notes) ................................................................................... 8(1) Changes in Significant Subsidiaries during the Period ............................................................................. 8(2) Changes in Accounting Policies and Changes in Accounting Estimates .................................................. 8
3. Condensed Quarterly Consolidated Financial Statements ....................................................................... 9(1) Condensed Consolidated Statement of Financial Position ........................................................................ 9(2) Condensed Consolidated Statement of Comprehensive Income ............................................................. 10(3) Condensed Consolidated Statement of Changes in Equity ..................................................................... 11(4) Condensed Consolidated Statement of Cash Flows ................................................................................ 12(5) Notes on Going Concern Assumption ..................................................................................................... 13(6) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................ 13(7) Notes on Significant Subsequent Events................................................................................................. 143

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the nine months ended August 31, 2016, the Japanese economy continued its moderate recovery,
despite apparent weakness in exports and production. We have concerns about the business downturn
stemming from the fluctuations in the financial markets over the issue of Britain’s withdrawal from the EU
and the slowdown in emerging-market economies. However, increasing capital investment backed by therecovery in corporate earnings as well as robust personal consumption supported by an improving
employment and income environment are giving rise to expectations that the moderate expansion willcontinue going forward.
In the real estate industry where Tosei Group operates, domestic commercial real estate investment in
the first half of 2016 totaled ¥1.9 trillion, decreasing 18% year on year. In addition to the limited supply oflarge properties available to the market, the uncertain economic environment caused some investors to
adopt a more conservative investment stance, and market transactions decreased. However, decreased
borrowing rates with the introduction of negative interest rates and a proactive lending stance by financial
institutions are boosting real estate transactions, which are expected to increase going forward. In
projections by a private research institution, the amount of investment is forecast to increase year on year
in the second half, totaling around ¥3.9 trillion for the year, down 5% year on year.
In the Tokyo Metropolitan area condominium market, consumer buying motivation is decreasing due topersistently high condominium prices from the increase in construction costs including personnel costs.
Newly-built condominium units sold in July 2016 numbered 3,317, down 30.7%, falling for the eighthconsecutive month, and the contract rate decreased 20.4 percentage points to 63.3% (both decreases arecompared with the same month of the previous fiscal year), falling below the 70% threshold from whichmarket conditions are viewed as favorable for the second consecutive month. In projections by a private
research institution, the projected number of condominium units sold in the year has been downwardly
revised from 43,000 to around 37,000, the first time the figure has been in the 30,000 range since 2009.
In the Tokyo Metropolitan area build-for-sale detached house market, housing starts for the first half of2016 rose 5.9% year on year to 29,075 units. There is strong demand for detached housing, which isrelatively inexpensive compared to the persistently high price of condominiums, and we expect robust
demand to continue going forward and robust demand is expected to continue(according to the Ministry ofLand, Infrastructure, Transport and Tourism data).
In the office leasing market of Tokyo’s five business wards, demand remains strong overall, fueled byrelocation due to corporate business expansion and by consolidation for improved work efficiency, leading
the vacancy rate to fall to 3.9% (as of July, 2016), dropping below 4% for the first time in seven years andeleven months. The average asking rent was ¥18,271 per tsubo (1 tsubo = 3.3m2), rising 4.6% year on year
and increasing for the 31st consecutive month (according to a survey by a private research institution).
In the real estate securitization market, the J-REIT market continues to expand, with the total value of
assets under management as of July 31, 2016 (acquisition cost base) increasing around ¥1.1trillion year on
year to around ¥14.8 trillion. Going forward, J-REITs are expected to proactively acquire properties,
fueled by the strong fundraising environment (according to a survey by a private research institution).
Amid this operating environment, in the Revitalization Business, the Tosei Group made steady progressin selling assets such as income-generating office buildings and apartments, while in the Development
Business, the Group pushed ahead with sales and development of commercial facilities and detachedhouses. In addition, we proactively acquired income-generating properties and land for development as
future sources of income.
As a result, consolidated revenue for the nine months ended August 31, 2016 totaled ¥39,139 million(up 41.7% year on year), operating profit was ¥8,823 million (up 65.8%), profit before tax was ¥8,203
million (up 72.9%), and profit for the period was ¥5,379 million (up 76.4%).
Performance by business segment is shown below.
Reportable segment classifications have been changed effective from the first quarter of the fiscal year
ending November 30, 2016, and in the following quarterly comparisons figures for the same period of theprevious fiscal year have been recalculated according to the segment after such change.
Revitalization Business
During the nine months ended August 31, 2016, the segment sold 26 properties it had renovated,
including Kinshicho Tosei Building (Sumida-ku, Tokyo), STABLE NAKANO (Nakano-ku, Tokyo), City

4

Forum Kamihongo (Matudo-shi, Chiba), Château Espoir Kokubunji (Kokubunji-shi, Tokyo), Mini-mallYokohama Aoba (Yokohama-shi, Kanagawa), Takaido Tosei Studio (Suginami-ku, Tokyo)and Grace
Heiwadai (Nerima-ku, Tokyo). In addition, the segment sold 48 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).
During the nine months ended August 31, 2016, it also acquired a total of 39 income-generating officebuildings and apartments and seven land lots for renovation and sales purposes.
As part of the acquisition, our company acquired Kishino Coporation and Kishino Real Estate
Corporation, companies hold income properties mainly in Toshima-ku, Tokyo, in the second quarter andacquired Four Big Corporation, company hold income properties mainly in Nakano-ku, Tokyo, in third
quarter, through M&A transaction and converted it into consolidated subsidiaries.
As a result, revenue in this segment was ¥19,946 million (up 34.2% year on year) and the segment profit
was ¥3,963 million (up 17.7%).
Development Business
During the nine months ended August 31, 2016, the segment sold new commercial facilities T’s
BRIGHTIA Minami Aoyama (Minato-ku, Tokyo) and T’s BRIGHTIA Tsunashima (Yokohama-shi,
Kanagawa).In addition, the segment focused on the sale of detached houses, for which there was firm
demand. The segment sold 74 detached houses at such properties as THE Palms Court Kashiwa Hatsuishi(Kashiwa-shi, Chiba), THE Palms Court Koshigaya Lake Town (Koshigaya-shi, Saitama), THE Palms
Court Mitaka Osawa (Mitaka-shi, Tokyo) and THE Palms Court Hashimoto (Sagamihara-shi, Kanagawa).
During the nine months ended August 31, 2016, it also acquired two land lots for detached housing
projects and two land lots for commercial facility projects.
From the three months ended February 29, 2016, the segment embarked on efforts to enhance acquisition andsales networks in the outskirts of Tokyo and the Kanagawa area, facilitated by the Company making Urban
Home Corporation, detached house sales and custom home construction company based in Machida-shi, Tokyoa consolidated subsidiary.
As a result, revenue in this segment was ¥11,211 million (up 99.1% year on year) and the segment profit was¥3,703 million (up 480.5%).
Rental Business
During the nine months ended August 31, 2016, while the segment sold 16 buildings of its inventory
assets held for leasing purposes, it newly acquired 39 properties including income-generating officebuildings and apartments. In addition, the segment made efforts to lease vacancies out following
acquisitions and also focused on leasing activities for its existing non-current assets and inventory assets.
As a result, revenue in this segment was ¥3,825 million (up 27.4% year on year) and the segment profit
was ¥1,741 million (up 24.1%).
Fund and Consulting Business
During the nine months ended August 31, 2016, while ¥38,913 million was subtracted from the balanceof assets under management (Note), due mainly to property dispositions by funds, ¥91,117 million wasadded to the balance of Assets under management ¥421,792 for the end of the previous fiscal year, due
mainly to new asset management contracts of large projects the segment obtained. The balance of assets
under management as of August 31, 2016, was ¥473,996 million. The acquisition of such large projectcontracts increased asset management fees and contributed to revenue.
As a result, revenue in this segment was ¥1,711million (up 24.4% year on year) and the segment profit
was ¥742 million (up 10.0%).
Note: The balance of assets under management includes the balance of assets that were subject toconsulting contracts, etc.
Property Management Business
During the nine months ended August 31, 2016, the segment worked to win new contracts andmaintain existing contracts. Consequently, the total number of properties under management was 579 as ofAugust 31, 2016, an increase of 37 properties from August 31, 2015, with that total comprising 361 office5

buildings, hotel, schools and other such properties, and 218 condominiums and apartments.
As a result, revenue in this segment was ¥2,174 million (down 2.7% year on year) and segment profit was¥98 million (down 3.9%).
Other
For the nine months ended August 31, 2016, revenue in this segment was ¥270 million (down 48.0%
year on year) and the segment loss was ¥22 million (in comparison with segment profit of ¥155 million in
the same period of the previous fiscal year).
(2) Qualitative Information Regarding Consolidated Financial Positions
1. Financial Positions
As of August 31, 2016, total assets were ¥111,393 million, an increase of 18,197 million comparedwith November 30, 2015, while total liabilities were ¥70,571million, an increase of ¥13,604 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 ¥4,593 million to ¥40,822 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 August 31, 2016, totaled ¥22,097 million, up ¥3,306
million compared with November 30, 2015.
The cash flows for the nine months ended August 31, 2016 and factors contributing to those amounts are
as follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥1 million (net cash used in operating activities totaled¥10,901 million in the same period of the previous fiscal year). This is mainly due to profit before tax of¥8,203 million, as well as an increase in inventories of ¥6,562 million, which was a result of property
acquisitions in the Revitalization Business and Development Business, and income taxes paid of ¥2,186
million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥6,274 million (net cash used in investing activities totaled¥172 million in the same period of the previous fiscal year). This is primarily due to purchases ofinvestment properties ¥1,695 million and purchase of investments in subsidiaries resulting in change inscope of consolidation totaling ¥3,286 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥9,589 million (down 1.2% year on year). This mainlyreflects¥17,982 million in the repayments of non-current borrowings and ¥771 million in cash dividends
paid, despite ¥29,048 million in proceeds from non-current borrowings.

6

(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, 2016 (December 1, 2015 to November 30, 2016), which had been announced on
July 5, 2016.
Revenue(¥ million)

Operating profit(¥ million)

Profit before
tax (¥ million)

Profitattributable toowners of the parent

Basicearnings
per share(¥ million)(¥)

Previous forecasts (A)53,562

9,000

8,026

5,266

109.08

Revised forecasts (B)53,562

9,384

8,500

5,565

115.26

Amount of change (B-A)

－

384

474

298

Percentage change (%)

0.0

4.3

5.9

5.7

The revenue forecast has not changed from the previous forecast. On the other hand profit is expected
to rise due to rise expected in gross profit margin and making efforts to reduce costs.
As a result, the full-year operating profit forecast was revised to ¥9,384 million, an increase of ¥384
million, the full-year profit before tax forecast was revised to ¥8,500 million, an increase of ¥474 million,
and the full-year profit for the year forecast was revised to ¥5,565million, an increase of ¥298 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.

7

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
No item to report.

8

3. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)As of November 30, 2015
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

As of August 31, 2016

18,791,081
2,914,639
46,156,041
27,01022,097,993
2,784,957
59,287,699
151,925

67,888,773

84,322,575

3,315,747
18,785,986
96,6481,225,047
1,098,687
781,146
4,014

3,596,336
20,310,085
91,852
1,310,640
1,290,228
443,348
28,91425,307,278

27,071,407

93,196,052

111,393,983

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

2,734,006
9,492,795
1,150,089
442,3032,598,927
8,475,082
1,762,914
289,086

Total current liabilities

13,819,195

13,126,010

3,510,413
39,175,846
383,31278,905

4,436,795
52,509,700
420,395
79,013

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

9

43,148,478

57,445,905

56,967,673

70,571,916

6,421,392
6,373,881
23,327,875
105,228

6,421,392
6,406,605
27,934,333
59,73536,228,378

40,822,067

93,196,052

111,393,983

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Nine months ended
August 31, 2015

Nine months ended
August 31, 2016

Revenue
Cost of revenue

27,627,851
18,594,416

39,139,416
24,920,553

Gross profit
Selling, general and administrative expenses
Other income
Other expenses

9,033,435
3,792,097
119,859
39,125

14,218,863
5,326,917
201,341
270,105

Operating profit
Finance income
Finance costs

5,322,071
22,010600,838

8,823,182
62,546682,398

Profit before tax
Income tax expense

4,743,243
1,694,072

8,203,330
2,824,329

Profit for the period
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

3,049,170

5,379,001(18,082)(34,142)

263,372(9,153)(7,033)(2,196)238,256(45,492)

Subtotal
Other comprehensive income for the period, net oftax
Total comprehensive income for the period

238,256(45,492)

3,287,427

5,333,508

Profit attributable to:
Owners of the parent

3,049,170

5,379,001

Total comprehensive income attributable to:
Owners of the parent

3,287,427

5,333,508

63.15

111.40－－Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Diluted earnings per share (yen)10(3) Condensed Consolidated Statement of Changes in Equity

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

19,776,474

154,652

32,727,836－

3,049,170－

3,049,170－－－

238,256

238,256－－

3,049,170

238,256

3,287,427－－(579,408)－(579,408)

6,421,392

6,375,317

22,246,237

392,90935,435,856

Share capital

Capital reserves

6,421,392

6,375,317

Profit for the period－

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

Balance at December 1, 2014

Balance at August 31, 2015

Retainedearnings

Nine months ended August 31, 2016 (December 1, 2015 – August 31, 2016)(¥ thousand)Other
components ofequityTotal equity

23,327,875

105,228

36,228,378－

5,379,001－

5,379,001－－－(45,492)(45,492)

Total comprehensive income
for the period－－

5,379,001(45,492)

5,333,508

Dividends of surplus－－(772,544)－(772,544)

Share-based payment－

32,724－－32,724

6,421,392

6,406,605

27,934,333

59,73540,822,067

Share capital

Capital reserves

6,421,392

6,373,881

Profit for the period－

Other comprehensive income

Balance at December 1, 2015

Balance at August 31, 201611

Retainedearnings

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Nine months ended
August 31, 2015
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividends income
Interest expenses
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

Nine months ended
August 31, 2016

4,743,243
164,015

8,203,330
244,535(464,931)(130,536)(22,010)
600,838
1,451(1,596,860)(12,859,868)
719,150(7,077)(62,546)
682,398
5,436
88,949(6,562,541)(221,645)(124,415)

SubtotalInterest and dividends income received
Income taxes paid

(8,722,049)
24,736(2,204,213)

2,122,964
61,897(2,186,413)

Net cash from (used in) operating activities(10,901,526)(1,550)(100,000)
140,000(63,765)(702,089)(41,996)(1,650)152,221(45,000)－(37,469)(1,695,354)(15,160)(80,250)
80,452444,960－－53(1,260,000)
54－(3,286,137)－

64,000－37

Net cash from (used in) investing activities(172,267)(6,274,825)

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－
25,510,000(14,394,926)(578,328)(831,705)(2,991)(10,600)
29,048,800(17,982,036)(771,458)(688,761)(6,034)

Cash flows from investing activities
Payments into time deposits
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
assetsPayments of loans receivableCollection of loans receivable
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Proceeds from purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Other, net

Net cash from (used in) financing 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
Cash and cash equivalents at end of period

129,702,047

9,589,908(1,371,746)
16,100,795

3,313,532
18,791,081(9,253)(6,620)14,719,794

22,097,993

(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 five business segments and conducts business activities accordingly;“Revitalization Business”, “Development Business”, “Rental Business”, “Fund and Consulting
Business”, and “Property Management Business”. In the Revitalization Business, the Group acquires theproperties 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, 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.
The Tosei Group has made changes to its reportable segments, reducing the number of such segmentsfrom six up through the end of the previous fiscal year to five as of the first quarter of the fiscal year
ending November 30, 2016. Accordingly, the reportable segments are now: the Revitalization Business,
Development Business, Rental Business, Fund and Consulting Business, and Property Management
Business segments.
With this change, transactions formerly classified as being associated with the Alternative Investment
Business segment, based on the point of view that they involved acquisition of real estate arising frompurchases of real estate collateralized loans, M&As of real estate-owning companies and otheralternative means of investment, are now classified as being associated with either the Revitalization
Business, Rental Business, Fund and Consulting Business, or Other, depending on the nature of therevenue derived from the respective transaction. The “Other” category includes business involving
sports club facilities.
Segment information for the nine months ended August 31, 2015 has been prepared in accordancewith the new reportable segment classifications.
The Group’s revenue and profit/loss by reportable segment are as follows:
Nine months ended August 31, 2015
(December 1, 2014 – August 31, 2015)(¥ thousand)Reportable Segments

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Other

Revenue from externalcustomers

14,862,197

5,631,882

3,001,784

1,375,921

2,235,057

521,007－27,627,851

Intersegment revenue－－

39,1154,548

330,064－(373,728)－

14,862,197

5,631,882

3,040,900

1,380,469

2,565,122

521,007(373,728)

27,627,851

3,367,368

637,935

1,403,065

674,383

102,303

155,312(1,018,298)

5,322,071

Adjustment

Total

Revenue

Total
Segment profit
Finance income/costs, net(578,827)

Profit before tax

4,743,24313

Nine months ended August 31, 2016
(December 1, 2015 – August 31, 2016)(¥ thousand)Reportable Segments

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Other

Revenue from externalcustomers

19,946,219

11,211,309

3,825,255

1,711,203

2,174,627

270,800－

39,139,416

Intersegment revenue－－

31,413

21,277754,700

836(808,227)－

19,946,219

11,211,309

3,856,668

1,732,480

2,929,328

271,637(808,227)

39,139,416

3,963,177

3,703,230

1,741,568

742,061

98,346(22,116)(1,403,086)

8,823,182

Adjustment

Total

Revenue

Total
Segment profit or loss
Finance income/costs, net(619,851)

Profit before tax

8,203,330

2. Dividends
Dividends paid in the nine months ended August 31, 2015 and August 31, 2016 are as follows:
Nine months ended August 31, 2015
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 25, 2015

Total dividends(¥ thousand)

12579,408

Record date

Effective dateNovember 30, 2014

February 26, 2015

Nine months ended August 31, 2016
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 25, 2016

Total dividends(¥ thousand)

16

772,544

Record date

Effective dateNovember 30, 2015

February 26, 2016

3. Earnings per share
Nine months ended
August 31, 2015
Profit attributable to owners of the parent

Nine months ended
August 31, 2016(¥ thousand)

3,049,170

5,379,001

Weighted average number of outstanding ordinary shares(shares)

48,284,000

48,284,000

63.15

111.40

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. Diluted earnings per share for the nine months ended August 31, 2015 is not presented due to an absence of potential
shares. Diluted earnings per share for the nine months ended August 31, 2016 is not presented because there were no
potential shares that have dilutive effects.

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

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