This is an English translation of the official announcement in Japanese that was released on April 5, 2019. 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 Three Months of the Fiscal Year Ending November 30, 2019
<IFRS>
April 5, 2019
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:

TSE / SGX
https://www.toseicorp.co.jp/english/+81-3-3435-2865
April 10, 2019 (scheduled)
―
Yes
No

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

1. Consolidated Financial Results for the Three Months Ended February 28, 2019
(December 1, 2018 – February 28, 2019)(1) Consolidated Operating Results (cumulative)

Three months ended
February 28, 2019
Three months ended
February 28, 2018(%)

17,059

(6.8)

3,125

(28.0)

2,987(28.0)

2,035(28.5)

18,310

24.7

4,341

13.4

4,150

13.4

2,847

13.9

Profit attributable toowners of the parent(¥ million)(%)
Three months ended
February 28, 2019
Three months ended
February 28, 2018

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
(¥)

(¥)

2,035

(28.5)

2,067(28.1)

41.97

41.94

2,847

13.9

2,875

13.7

58.92

58.75

(2) Consolidated Financial Position
Total assets

As ofFebruary 28, 2019
As ofNovember 30, 2018

Total equity

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

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

143,035

52,46652,466

36.7

138,768

52,02152,02137.5

2. Dividends
1Q-end(¥)

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

–
–

Fiscal year ended November 30, 2018
Fiscal year ending November 30, 2019
Fiscal year ending November 30, 2019
(Forecast)

Total
(¥)

0.00

–

30.00

30.00

0.00

–

37.00

37.00

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

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2019
(December 1, 2018 – November 30, 2019)(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, 2019

71,51016.2

12,052

10.8

11,230

10.4

7,708

12.5

158.79Note: 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 due to other reasons: 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)
As of February 28, 201948,544,800 shares
As of November 30, 2018
48,544,800 shares(b) Number of treasury shares at the end of the period
As of February 28, 2019
157,905 shares
As of November 30, 2018
105 shares(c) Average number of outstanding shares during the period (cumulative)
Three months ended February 28, 2019
48,505,245 shares
Three months ended February 28, 2018
48,328,491 shares* These consolidated Financial Results are not subject to quarterly review procedures by a certified public
accountant or an audit corporation.
* 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.

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 ...................................................... 4(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 and notes ...................................................... 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................................................................................................. 121

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the three months ended February 28, 2019, the Japanese economy is recovering moderately,supported by personal consumption and capital investment, despite signs of weakness in exports due to aslowing Chinese economy. A moderate recovery is expected to continue going forward, backed bycontinuing improvements in the employment and income environments.
In the real estate industry where Tosei Group operates, commercial real estate transactions for the fullyear 2018 decreased 3% year on year to ¥4.0 trillion. Weakness was evident in parts of the investment
market, with limited growth in real estate prices and a decline in the number of placements of large-size
properties on the market, as well as an increasingly cautious attitude from financial institutions towards
real estate lending, in the context of fraudulent loan issues. Demand among investors remains firm
however, particularly for properties in the metropolitan area, and transactions for the full year 2019 areforecast to increase by between 0% and 5% year on year (according to a survey by a private research
institute).
In the Tokyo metropolitan area condominium market, the number of newly supplied units in the fullyear 2018 increased 3.4% year on year to 37,000 units. There continues to be firm demand for properties,
particularly in the central Tokyo area and near stations. Against a background of persistently high prices
however, the average contract rate for the first month was only 62.1%, trailing the 70% threshold fromwhich market conditions are viewed as favorable for the third consecutive year. In the build-for-saledetached house market, housing starts for the full year 2018 numbered 62,000 units, roughly unchanged
year on year. Favorable demand continues for detached houses, which remain undervalued relative to
condominiums (according to surveys by a private research institute and the Ministry of Land,
Infrastructure, Transport and Tourism).
The office leasing market of Tokyo’s five business wards has been performing favorably. The averagevacancy rate as of January 2019 was 1.8% (a decrease of 1.3% year on year), and the average rent was¥21,010 (an increase of ¥1,672 year on year). This strength in the leasing market is expected to continue,
backed by corporate office expansion requirements and increased demand for coworking space (according
to a survey by a private research institute).
In the real estate securitization market, the total value of assets under management as of January 2019
grew to ¥18.0 trillion in J-REITs (an increase of ¥1.4 trillion year on year). Despite the continuing scarcityof large-size premium properties, property acquisitions continue to progress through means such assponsored property supply, and the market scale expanded to ¥34.9 trillion, including ¥16.9 trillion ofvalue under management in private placement funds (as of June 30, 2018) (according to a survey by a
private research institute).
The Tokyo business hotel market maintained its favorable trend, with monthly guest room occupancy
rates in 2018 generally exceeding the 80% threshold from which market conditions are viewed asfavorable. The number of foreign visitors to Japan for the full year 2018 totaled 31.19 million (an increaseof 8.7% year on year), exceeding 30 million for the first time. It is anticipated that more than 35 million
foreign visitors will visit during the full year 2019, and further increases in the number of hotel guests are
expected going forward (according to surveys by the Ministry of Land, Infrastructure, Transport andTourism, the Japan National Tourism Organization, and a private research institute).
Amid this operating environment, in the Revitalization Business, the Group made steady progress inselling assets such as income-generating office buildings and apartments, while in the Development
Business, the Group pushed ahead with sales of condominiums, detached houses and commercial facilities.
In addition, the Group also proceeded with the proactive acquisition of income-generating properties andland for development as future sources of income.
As a result, consolidated revenue for the three months ended February 28, 2019 totaled ¥17,059 million(down 6.8% year on year), operating profit was ¥3,125 million (down 28.0%), profit before tax was ¥2,987
million (down 28.0%), and profit for the period was ¥2,035 million (down 28.5%).
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, 2019, 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.

2

Revitalization Business
During the three months ended February 28, 2019, the segment sold 15 properties it had renovated,
including Ryogoku Tosei Building Ⅰ,Ⅱ (Sumida-ku, Tokyo), T’s garden Mukogaokayuen (Kawasaki-shi,
Kanagawa), T’s Link Harajuku (Sibuya-ku, Tokyo). In addition, the segment sold four units in the
Restyling Business from Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa).
During the three months ended February 28, 2019, it also acquired a total of 11 income-generating
office buildings and apartments and one land lot for renovation and sales purposes.
As a result, revenue in this segment was ¥6,623 million (down 54.1% year on year) and the segment
profit was ¥1,424 million (down 62.5%).
Development Business
During the three months ended February 28, 2019, the segment focused on the sale of condominium anddetached houses. The segment sold 121 units at THE Palms Chofu Manorgarden (Chofu-shi, Tokyo) andsold 17 detached houses at such properties as THE Palms Court Funabashi Hoten (Funabashi-shi, Chiba),
THE Palms Court Higashi Nakano (Nakano-ku, Tokyo). In addition, the segment sold one commercial
facility and three land lots.
During the three months ended February 28, 2019, it also acquired two lots for hotel projects, one land
lot for logistics facility project, one land lot for commercial facility project and land lots for 41 detachedhouses.
As a result, revenue in this segment was ¥7,045million (up 819.5% year on year) and the segment profit
was ¥1,045 million (in comparison with segment loss of ¥145 million in the same period of the previous
fiscal year).
Rental Business
During the three months ended February 28, 2019, while the segment sold 11 buildings of its inventory
assets held for leasing purposes, it newly acquired six 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 ¥1,470 million (up 8.8% year on year) and the segment profit
was ¥606 million (up 2.1%).
Fund and Consulting Business
During the three months ended February 28, 2019, while ¥11,808 million was added to the balance ofassets under management (Note), due to new asset management contracts, ¥14,433 million was subtracted
from to the balance of Assets under management ¥663,359 million for the end of the previous fiscal year,
due mainly to property dispositions by funds. The balance of assets under management as of February 28,
2019, was ¥660,733 million.
As a result, revenue in this segment was ¥603 million (down 10.5% year on year) and the segment profit
was ¥297 million (down 21.3%).
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business
During the three months ended February 28, 2019, the segment made efforts to win new contracts andmaintain existing contracts. Consequently, the total number of properties under management was 626 as ofFebruary 28, 2019, a decrease of 34 from February 28, 2018, with the total comprising 392 officebuildings, hotels, schools and other such properties, and 234 condominiums and apartments.
As a result, although the total number of properties under management decreased, revenue in thissegment was ¥1,063 million (up 9.1% year on year) and segment profit was ¥120 million (up 10.8%).
Hotel Business
During the three months ended February 28, 2019, the Group worked towards increasing the average
daily rate and occupancy rate for TOSEI HOTEL COCONE Kanda, opened in December 2017, as well as
newly opening TOSEI HOTEL COCONE Ueno in December 2018 contributed to revenue.
As a result, revenue in this segment was ¥252 million (up 113.3% year on year) and segment profit was3¥48 million (up 14.6%).
(2) Qualitative Information Regarding Consolidated Financial Positions
1. Financial Positions
As of February 28, 2019, total assets were ¥143,035 million, an increase of ¥4,266 million comparedwith November 30, 2018, while total liabilities were ¥90,569 million, an increase of ¥3,822 million.
Total assets were due to an increase in inventories. Total liabilities were due to an increase in trade andother payables and an increase in borrowing.
Total equity increased by ¥444 million to ¥52,466 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 February 28, 2019 totaled ¥23,904 million, down
¥2,616 million compared with November 30, 2018.
The cash flows for the three months ended February 28, 2019 and factors contributing to those amounts
are as follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥6,395 million (in comparison with segment net cash
provided by operating activities of ¥4,485 million in the same period of the previous fiscal year). This ismainly due to an increase in inventories of ¥5,748 million and income taxes paid of ¥2,820 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥201 million (down 86.4% year on year). This is
primarily due to payments of loans receivable of ¥126 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥3,980 million (in comparison with segment net cashused in financing activities of ¥1,852 million in the same period of the previous fiscal year). This mainlyreflects¥17,236 million in proceeds from non-current borrowings, despite ¥11,390 million in therepayments of non-current borrowings and ¥1,409 million in cash dividends paid.
(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The business results during the three months ended February 28, 2019 basically remained stable asplanned and there is no change on the full-year consolidated earnings forecasts, announced on January 10,
2019.
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

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, 2019.
Standard

Name of standard

Overview of new establishment and amendment

IFRS 9Financial Instruments

Replacement of IAS 39 with IFRS 9 regarding classification,measurement and impairment of financial assets, classificationand measurement of financial liabilities, and hedge accounting

IFRS 15

Revenue from Contracts
with Customers

Accounting for and disclosure of revenue recognition forcontracts with customers

Clarification of requirements for transfers to, or from,investment properties
The above standards have no material impact on the condensed quarterly consolidated financial statements.
IAS 40Investment properties(1) IFRS 9 Financial Instruments
1) Classification and measurement of financial instruments
Regarding financial instruments, the Group classified as “Financial instruments measured atamortized cost,” “Financial instruments measured at fair value through other comprehensive income”
and “Financial instruments measured at fair value through profit or loss.”
Equity instruments previously classified as “Available-for-sale financial assets” are now classified
into “Financial assets measured at fair value through other comprehensive income” and “Financial
assets measured at fair value through profit or loss.” “Available-for-sale financial assets” have been
reclassified to “Other financial assets” in the Condensed Consolidated Statement of Financial Position.
In accordance with transition provisions, the Group has not applied IFRS 9 retrospectively toconsolidated financial statements for the previous fiscal year.
2) Impairment of financial assets
The method of recognizing impairment on financial assets measured at amortized cost has beenchanged to recognize a loss allowance for expected credit losses on these assets.
(2) IFRS 15 Revenue from Contracts with Customers
With the application of IFRS 15, revenue from contracts with customers is recognized based on thefive-step approach shown below. In applying IFRS 15, the Group applies the transition provisions andrecognizes the cumulative effect of the standard at the date of initial application. For this reason, theGroup has not applied IFRS 15 retrospectively to consolidated financial statements for each priorreporting period.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract(s)Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
53. Condensed Quarterly Consolidated Financial Statements and notes(1) Condensed Consolidated Statement of Financial Position(¥ thousand)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
Other financial assets
Trade and other receivables
Deferred tax assets
Other non-current assets

As of November 30, 2018

As of February 28, 2019

26,520,569
3,090,237
62,457,864
30,49523,904,554
4,441,184
68,336,258
34,10592,099,167

96,716,101

8,785,869
33,752,847
87,9662,244,831
865,235
903,707
28,914

8,761,947
33,487,692
89,962
2,344,431
941,776
679,105
14,514

46,669,371

46,319,430

138,768,538

143,035,531

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

4,075,579
7,308,494
2,445,597
593,669

4,438,420
7,332,799
410,008
188,166

Total current liabilities

Total non-current assets
Total assets

14,423,341

12,369,394

Non-current liabilities
Trade and other payables
Borrowings
Retirement benefits obligations
Provisions
Deferred tax liabilities

3,708,969
67,716,752
493,5546,817
397,320

3,844,377
73,518,921
507,8396,856
321,825

Total non-current liabilities

72,323,414

78,199,820

86,746,756

90,569,215

6,554,139
6,544,924
38,843,309(128)
79,537

6,554,139
6,544,808
39,422,650(166,301)
111,018

52,021,782

52,466,316

Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Treasury shares
Other components of equity
Total equity attributable to owners of parent
Total equity
Total liabilities and equity

6

52,021,782

52,466,316

138,768,538

143,035,531

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Three months ended
February 28, 2018

Three months ended
February 28, 2019

Revenue

18,310,040

17,059,457

Cost of revenue

12,119,236

11,914,383

Gross profit

6,190,803

5,145,073

Selling, general and administrative expenses

1,877,793

2,055,136

Other income

93,98339,533

Other expenses

65,572

4,144

Operating profit

4,341,420

3,125,326

Finance income

40,191

40,770Finance costs

231,322

178,921

Profit before tax

4,150,290

2,987,175

Income tax expense

1,302,759

951,493

Profit for the period

2,847,530

2,035,682－

33,039－33,039(6,006)(1,713)32,864

－

903

154

Subtotal

27,762(1,558)Other comprehensive income for the period, net oftax

27,762

31,4802,875,292

2,067,162

2,847,530

2,035,682

2,875,292

2,067,162

Basic earnings per share (¥)

58.92

41.97

Diluted earnings per share (¥)

58.75

41.94

Other comprehensive income Items that will not bereclassified to profit or loss
Net change in financial assets measured at fair values
through other comprehensive income
Subtotal
Other comprehensive income
Items that may be reclassified to 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

7

(3) Condensed Consolidated Statement of Changes in Equity
Three months ended February 28, 2018 (December 1, 2017 – February 28, 2018)(¥ thousand)

Balance at December
1, 2017

SharecapitalCapitalreserves

Retainedearnings

Treasuryshares6,421,392

6,464,240

33,209,210－

Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Amount oftransactions withownersIssuance of newsharesPurchase of treasury
shares64,024－－

94,41954,132

2,847,530－

46,158,867

2,847,530

2,847,530

27,762

27,762

27,762

27,762

2,875,292

2,875,292

148,551

148,551

(61)

(61)

(61)
(1,207,100)

Share-based payment(1,207,100) (1,207,100)

4,935
6,515,812

6,523,308

34,849,640

Total
equity46,158,867

2,847,530

Dividends of surplus

Balance at February
28, 2018

Total
Other
equitycomponents attributableof equity
to ownersof parent(61)

91,786

4,935

4,935

47,980,486

47,980,486

Three months ended February 28, 2019 (December 1, 2018 – February 28, 2019)(¥ thousand)

Balance at December
1, 2018

SharecapitalCapitalreserves

Retainedearnings

Treasuryshares6,554,139

6,544,924

38,843,309(128)

Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Amount oftransactions withownersPurchase of treasury
shares

79,537－－2,035,682

(115)

－

52,021,782

2,035,682

2,035,682

31,48031,48031,48031,4802,067,162

2,067,162(166,287)(166,287)(166,172)(1,456,340)

6,554,139

6,544,808

39,422,650

8

Total
equity52,021,782

2,035,682

Dividends of surplus
Balance at February
28, 2019

Total
Other
equitycomponents attributableof equity
to ownersof parent(1,456,340) (1,456,340)(166,301)

111,018

52,466,316

52,466,316

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Three months ended
February 28, 2018

Three months ended
February 28, 2019

4,150,290
147,3712,987,175
216,410(358,663)(390,497)(40,191)
231,322608
10,361
1,632,647(205,424)(102,982)(40,770)
178,921－(702,625)(5,748,288)(115,288)(400)

SubtotalInterest and dividend income received
Income taxes paid

5,465,339
39,477(1,019,283)(3,615,362)
40,745(2,820,729)

Net cash from (used in) operating activities

4,485,532(6,395,347)(12,025)(134,642)(1,940)－－19(24,651)(4,840)(9,811)(48,529)(126,730)
19(1,335,115)－－

13,070Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividend 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

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of other financial assets
Payments of loans receivableCollection of loans receivable
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash from (used in) investing activities(1,483,704)(201,471)

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

143,000
9,032,500(9,815,555)
148,371(1,157,717)(202,145)
(61)
(913)

(19,000)
17,236,745(11,390,358)

Net cash from (used in) financing activities(1,852,521)

3,980,987

1,149,306
23,750,239(2,615,831)
26,520,569

(622)

(184)

24,898,923

23,904,554

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

9－(1,409,822)(269,490)(166,172)(913)

(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 six business segments and conducts business activities accordingly;“Revitalization Business”, “Development Business”, “Rental Business”, “Fund and Consulting
Business”, “Property Management Business” and “Hotel Business”. In the Revitalization Business, theGroup acquires the properties whose asset values have declined, renovates, and resells them. In theDevelopment 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 officebuildings 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 Hotel Business provides mainly hotel operating
services.
The Tosei Group has made changes to its reportable segments, increasing the number of suchsegments from five up through the end of the previous fiscal year to six as of the first quarter of the
fiscal year ending November 30, 2019. Accordingly, the reportable segments are now: the Revitalization
Business, Development Business, Rental Business, Fund and Consulting Business, and Property
Management Business segments, Hotel Business.
As the quantitative importance of "Hotel Business", which was included in " Rental Business " and"Others", increased, it is now classified as a separate reportable segment.
Segment information for the three months ended February 28, 2018 has been prepared in accordancewith the new reportable segment classifications.
The Group’s revenue and profit/loss by reportable segment are as follows:
Three months ended February 28, 2018
(December 1, 2017 – February 28, 2018)(¥ thousand)Reportable Segments
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Hotel
Business

Adjustment

Revenue from externalcustomers

14,425,414

766,192

1,350,962

674,070

974,951

118,449－

18,310,040

Intersegment revenue－－

10,785

13,089255,711－(279,587)－

14,425,414

766,192

1,361,748

687,159

1,230,663

118,449(279,587)

18,310,040

3,793,912(145,430)

594,151

377,635

108,427

42,727(430,003)

4,341,420

Total

Revenue

Total
Segment profit or loss
Finance income/costs, net(191,130)

Profit before tax

4,150,290

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Three months ended February 28, 2019
(December 1, 2018 – February 28, 2019)(¥ thousand)Reportable Segments
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Hotel
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

6,623,933

7,045,504

1,470,217

603,283

1,063,838

252,680－

17,059,457

Intersegment revenue－－

11,414

4,207

277,524700(293,846)－

6,623,933

7,045,504

1,481,631

607,491

1,341,362

253,380(293,846)

17,059,457

1,424,157

1,045,954

606,368

297,249

120,182

48,948(417,532)

3,125,326

Total
Segment profit
Finance income/costs, net(138,151)

Profit before tax

2,987,175

2. Dividends
Dividends paid in the three months ended February 28, 2018 and February 28, 2019 are as follows:
Three months ended February 28, 2018
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2018

Dividends per share(¥)

Total dividends(¥ thousand)25

1,207,100

Record date

Effective dateNovember 30, 2017

February 28, 2018

Three months ended February 28, 2019
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2019

Dividends per share(¥)

Total dividends(¥ thousand)30

1,456,340

Record date

Effective dateNovember 30, 2018

February 28, 2019

3. Earnings per ShareThree months ended
February 28, 2018
Profit attributable to owners of the parent (¥ thousand)Three months ended
February 28, 2019

2,847,530

2,035,682

2,847,530

2,035,682

48,328,491

48,505,245

138,124

31,524

48,466,615

48,536,769

Basic earnings per share (¥)

58.92

41.97

Diluted net income per share (¥)

58.75

41.94

Net income used to figure diluted net income per share(¥ thousand)
Weighted average number of outstanding ordinary shares(shares)
The number of increased ordinary shares used to figure
diluted earnings per share (shares)
The weighted-average number of ordinary shares used tofigure diluted earnings per share (shares)

Notes: Basic earnings per share is calculated by dividing profit attributable to owners of the parent, by the weighted average
number of outstanding ordinary shares during the reporting period.

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

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