This is an English translation of the official announcement in Japanese that was released on July 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 Six Months of the Fiscal Year Ending November 30, 2016
<IFRS>
July 5, 2016
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: +81-3-3435-2865
Submission of Quarterly Securities Report (Shihanki-Houkokusho):July 8, 2016 (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, 2016
(December 1, 2015 – May 31, 2016)(1) Consolidated Operating Results (cumulative)
Six months ended
May 31, 2016
Six months ended
May 31, 2015(%)

30,655

37.2

7,675

68.7

7,240

73.6

4,743

78.8

22,343

9.2

4,550

84.0

4,170

98.6

2,653

106.0

Profit attributable toowners of the parent(¥ million)(%)
Six months ended
May 31, 2016
Six months ended
May 31, 2015

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
(¥)

(¥)

4,743

78.8

4,728

69.9

98.25

–

2,653

106.0

2,782

115.9

54.97

–

(2) Consolidated Financial Position
Total assets

As of
May 31, 2016
As ofNovember 30, 2015

Total equity

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

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

112,030

40,20640,20635.9

93,19636,22836,22838.9

1

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)

0.00
0.00

Total
(¥)

–

16.00

16.00

–

22.00

22.00

Note: Revision to the most recently released dividend forecasts: Yes

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

9,000

30.6

8,026

32.9

5,266

27.3

109.08

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 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)
48,284,000 shares
As of May 31, 2016
As of November 30, 2015
48,284,000 shares(b) Number of treasury shares at the end of the period
As of May 31, 2016–
As of November 30, 2015–(c) Average number of outstanding shares during the period (cumulative)
Six months ended May 31, 2016
48,284,000 shares
Six months ended May 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 six months ended May 31, 2016, the Japanese economy remained on a moderate recovery
track against the backdrop of a rebound in capital investment and an improving employment and income
environment, despite apparent weaknesses in some areas, such as exports and production. Although wehave concerns about the business downturn stemming from slowdown in emerging-market economies andfluctuations in financial markets, more upbeat corporate earnings and robust personal consumption are
giving rise to expectations that the moderate recovery will continue going forward.
In the real estate industry where Tosei Group operates, domestic real estate transactions by listedcompanies and other such entities decreased 23% year on year in fiscal 2015, ended March 31, 2016, to¥4,089.6 billion, falling for the first time in four years. Amid the increased avoidance of risks in global
financial markets, overseas investors adopted a more conservative investment stance, and market
transactions decreased. However, transactions are expected to increase as the Bank of Japan’s introductionof a negative interest rate policy invigorates financing for real estate investment and pushes down intereston borrowings (according to a survey by a private research institution).
In the Tokyo metropolitan area condominium market, a decline in unit sales continued, as sharply higher
construction costs pushed up selling prices. Condominium units sold in April 2016 numbered 1,978, down
13.5% year on year, falling for the fifth consecutive month. The average selling price per unit was ¥57.5
million, up 8.4% year on year, rising for the 11th consecutive month. Furthermore, construction costs are
forecast to continue surging, affected by the 2016 Kumamoto Earthquake, with selling prices expected toremain high (according to a survey by a private research institution).
In the Tokyo metropolitan area built-for-sale detached house market, the number of housing starts
between January and April 2016 totaled 19,206 units, up 4.1% compared with the same period of theprevious year, indicating firm demand. The perception that detached houses are undervalued incomparison with surging condominium prices is expected to push up demand further (according to the
Ministry of Land, Infrastructure, Transport and Tourism data).
In the office leasing market of Tokyo’s five business wards, corporate business expansion continues tofuel demand for office relocation and expansion, and the average asking rent is continuing to rise. The
vacancy rate in April 2016 was 4.23%, down 1.11 percentage points year on year, and the average asking
rent was ¥18,061 per tsubo (1 tsubo = 3.3m2). This marked a rise of ¥804 compared with the same monthof the previous year and was the first time since June 2010 that the figure has exceeded ¥18,000 per tsubo(according to a survey by a private research institution).
In the real estate securitization market, the total value of assets under management in private placement
funds was ¥14.8 trillion as of December 31, 2015, down ¥0.3 trillion year on year, due to progress on thesale of assets under management. Meanwhile, the J-REIT market expanded further, with total market
capitalization of J-REITs rising ¥1.4 trillion year on year, to ¥14.0 trillion (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 six months ended May 31, 2016 totaled ¥30,655 million (up37.2% year on year), operating profit was ¥7,675 million (up 68.7%), profit before tax was ¥7,240 million(up 73.6%), and profit for the period was ¥4,743 million (up 78.8%).
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 six months ended May 31, 2016, the segment sold 19 properties it had renovated, including
Kinshicho Tosei Building (Sumida-ku, Tokyo), STABLE NAKANO (Nakano-ku, Tokyo), City Forum
Kamihongo (Matudo-shi, Chiba), Mini-mall Yokohama Aoba (Yokohama-shi, Kanagawa), Takaido Tosei
Studio (Suginami-ku, Tokyo) and Grace Heiwadai (Nerima-ku, Tokyo). In addition, the segment sold 39
4

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 six months ended May 31, 2016, it also acquired a total of 28 income-generating officebuildings and apartments and three land lot 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, through M&A transaction
and converted it into consolidated subsidiaries.
As a result, revenue in this segment was ¥15,424 million (up 12.1% year on year) and the segment
profit was ¥3,627 million (up 10.0%).
Development Business
During the six months ended May 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 53 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 six months ended May 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 enhanceacquisition and sales networks in the outskirts of Tokyo and the Kanagawa area, facilitated by theCompany making Urban Home Corporation, detached house sales and custom home construction company
based in Machida-shi, Tokyo a consolidated subsidiary.
As a result, revenue in this segment was ¥10,097 million (up 142.5% year on year) and the segment
profit was ¥3,659 million (up 516.7%).
Rental Business
During the six months ended May 31, 2016, while the segment sold 11 buildings of its inventory assets
held for leasing purposes, it newly acquired 28 properties including income-generating office buildings
and apartments. In addition, the segment made efforts to lease vacancies out following acquisitions andalso focused on leasing activities for its existing non-current assets and inventory assets.
As a result, revenue in this segment was ¥2,417 million (up 29.6% year on year) and the segment profit
was ¥1,003 million (up 19.3%).
Fund and Consulting Business
During the six months ended May 31, 2016, while ¥22,191 million was subtracted from the balance ofassets under management (Note), due mainly to property dispositions by funds, ¥87,185 million was added
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 undermanagement as of May 31, 2016, was ¥486,785 million. The acquisition of such large project contracts
increased asset management fees and contributed to revenue.
As a result, revenue in this segment was ¥1,077 million (up 39.6% year on year) and the segment profit
was ¥430 million (up 27.7%).
Note: The balance of assets under management includes the balance of assets that were subject toconsulting contracts, etc.

5Property Management Business
During the six months ended May 31, 2016, the segment worked to win new contracts and maintainexisting contracts. Consequently, the total number of properties under management was 594 as of May 31,
2016, an increase of 51 properties from May 31, 2015, with that total comprising 360 office buildings,
parking lots, schools and other such properties, and 234 condominiums and apartments.
As a result, revenue in this segment was ¥1,437 million (down 0.4% year on year) and segment profit
was ¥70 million (down 20.8%).
Other
For the six months ended May 31, 2016, revenue in this segment was ¥201 million (down 40.8% year
on year) and the segment loss was ¥23 million (in comparison with segment profit of ¥52 million in thesame period of the previous fiscal year).
(2) Qualitative Information Regarding Consolidated Financial Positions
1. Financial Positions
As of May 31, 2016, total assets were ¥112,030 million, an increase of ¥18,834 million compared with
November 30, 2015, while total liabilities were ¥71,823 million, an increase of ¥14,856 million.
This was primarily due to an increase in inventories resulting from purchase of properties exceeding
sales of properties in the Revitalization Business and Development Business, and an increase inborrowings from financial institutions.
Total equity increased by ¥3,978 million to ¥40,206 million, mainly due to an increase in retained
earnings and payment of cash dividends.
2. Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of May 31, 2016 totaled ¥22,627 million, up¥3,836 million compared with November 30, 2015.
The cash flows for the six months ended May 31, 2016 and factors contributing to those amounts are as
follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥870 million (down 83.8% year on year). This is mainly due
to profit before tax of ¥7,240 million, as well as an increase in inventories of ¥8,185 million, which was a
result of property acquisitions in the Revitalization Business and Development Business, and income taxes
paid of ¥1,199 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥5,455 million (up 3,287.0% year on year). This is primarily
due to purchases of investment properties ¥1,650 million and purchase of investments in subsidiaries
resulting in change in scope of consolidation totaling ¥2,608 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥10,166 million (up 63.1% year on year). This mainlyreflects ¥14,045 million in the repayments of non-current borrowings and ¥771 million in cash dividends
paid, despite ¥25,351 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
January 13, 2016.
Revenue(¥ million)

Operating profit(¥ million)

Profit before
tax (¥ million)

Profitattributable toowners of the parent

Basicearnings
per share(¥ million)(¥)

Previous forecasts (A)55,250

7,563

6,508

4,305

89.17

Revised forecasts (B)53,562

9,000

8,026

5,266

109.08Amount of change (B-A)(1,687)

1,436

1,517

961

Percentage change (%)

(3.1)

19.0

23.3

22.3

As a result of a review of the selling period for property initially planned to be sold in the period underreview, the revenue forecast was revised to ¥53,562 million, a decrease of ¥1,687 million from theprevious forecast.
With respect to the profit forecasts, although there was an impact from the above-mentioned review ofthe selling period, the profit return from property sold during the six months ended May 31, 2016,
exceeded the initial forecast. As a result, the full-year operating profit forecast was revised to ¥9,000
million, an increase of ¥1,436 million, the full-year profit before tax forecast was revised to ¥8,026 million,
an increase of ¥1,517 million, and the full-year profit for the year forecast was revised to ¥5,266 million,
an increase of ¥961 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)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 November 30, 2015

As of May 31, 2016

18,791,081
2,914,639
46,156,041
27,01022,627,532
2,257,309
59,895,174
106,692

67,888,773

84,886,709

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

3,587,869
20,330,269
95,801
1,315,177
1,362,289
423,327
28,91425,307,278

27,143,650

93,196,052

112,030,360

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
442,3032,886,209
7,191,155
2,551,630
389,740

Total current liabilities

13,819,195

13,018,736

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

4,345,440
53,978,437
402,354
78,977

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

58,805,210

56,967,673

71,823,946

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

6,421,392
6,395,697
27,299,313
90,01036,228,378

40,206,413

93,196,052

112,030,360

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

Six months ended
May 31, 2016

Revenue

22,343,163

30,655,217

Cost of revenue

15,272,904

18,907,200

Gross profit

7,070,258

11,748,016

Selling, general and administrative expenses

2,531,621

3,983,010

Other income

35,663

134,843

Other expenses

23,332

224,615

Operating profit

4,550,967

7,675,234

Finance income

1,557

31,133Finance costs

381,596

466,050

Profit before tax

4,170,927

7,240,317

Income tax expense

1,516,980

2,496,336

Profit for the period

2,653,947

4,743,981

3,624(19,729)

133,017

7,272

Net change in fair values of cash flow hedges(7,776)(2,762)

Subtotal

128,864(15,218)

Other comprehensive income for the period, net oftax

128,864(15,218)

2,782,811

4,728,762

2,653,947

4,743,981

2,782,811

4,728,762

Basic earnings per share (yen)

54.97

98.25

Diluted earnings per share (yen)－－Other comprehensive income
Items that may be transferred to net profit or loss
Exchange differences on translation of foreign
operations
Net change in fair values of available-for-salefinancial assets

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

10

(3) Condensed Consolidated Statement of Changes in Equity
Six months ended May 31, 2015 (December 1, 2014 – May 31, 2015)(¥ thousand)Other
components ofequityTotal equity

19,776,474

154,652

32,727,836－

2,653,947－

2,653,947－－－

128,864

128,864－－

2,653,947

128,864

2,782,811－－(579,408)－(579,408)

6,421,392

6,375,317

21,851,013

283,516

34,931,240

Share capital

Capital reserves

Retainedearnings

6,421,392

6,375,317

Profit for the period－

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

Balance at December 1, 2014

Balance at May 31, 2015

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

23,327,875

105,228

36,228,378－

4,743,981－

4,743,981－－－(15,218)(15,218)

Total comprehensive income
for the period－－

4,743,981(15,218)

4,728,762

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

Share-based payment－

21,816－－

21,816

6,421,392

6,395,697

27,299,313

90,01040,206,413

Share capital

Capital reserves

Retainedearnings

6,421,392

6,373,881

Profit for the period－

Other comprehensive income

Balance at December 1, 2015

Balance at May 31, 201611

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Six months ended
May 31, 2015
Cash 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

Six months ended
May 31, 2016

4,170,927
106,365

7,240,317
154,412(421,378)(43,112)(1,557)
381,59681(393,558)(7,998,416)
167,154(7,771)(31,133)
466,050
4,308
710,332(8,185,643)(143,488)
126,390

SubtotalInterest and dividend income received
Income taxes paid

(3,996,555)
1,557(1,370,113)(1,199,642)

Net cash from (used in) operating activities(5,365,112)(870,073)

140,000(23,653)(687,382)(37,709)(1,650)4,321－(15,547)(1,650,882)(12,440)(80,250)
80,452444,960－－
35(1,200,000)
36－(2,608,326)－

31,150Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of available-for-sale financial assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
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

298,435
31,134－37

Net cash from (used in) investing activities(161,079)(5,455,769)

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－
19,713,000(12,277,858)(577,728)(620,607)(1,792)

116,900
25,351,800(14,045,826)(771,027)(481,822)(3,579)Net cash from (used in) financing activities

6,235,013

10,166,443

708,821
16,100,795

3,840,600
18,791,081(284)(4,149)16,809,332

22,627,532

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 period12(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 six months ended May 31, 2015 has been prepared in accordance with
the new reportable segment classifications.
The Group’s revenue and profit/loss by reportable segment are as follows:
Six months ended May 31, 2015
(December 1, 2014 – May 31, 2015)(¥ thousand)Reportable Segments
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Other

Revenue from externalcustomers

13,759,988

4,162,916

1,864,729

771,856

1,442,682

340,990－

22,343,163

Intersegment revenue－－

27,611

3,490

218,710－(249,811)－

13,759,988

4,162,916

1,892,340

775,346

1,661,393

340,990(249,811)

22,343,163

3,296,722

593,493

840,972

336,939

88,784

52,126(658,072)

4,550,967

Adjustment

Total

Revenue

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

Profit before tax

4,170,927

13

Six months ended May 31, 2016
(December 1, 2015 – May 31, 2016)(¥ thousand)Reportable Segments
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Other

Revenue from externalcustomers

15,424,148

10,097,038

2,417,311

1,077,630

1,437,385

201,704－

30,655,217

Intersegment revenue－－

20,815

12,600525,539370(559,324)－

15,424,148

10,097,038

2,438,126

1,090,230

1,962,924

202,074(559,324)

30,655,217

3,627,319

3,659,887

1,003,040

430,340

70,332(23,796)(1,091,888)

7,675,234

Adjustment

Total

Revenue

Total
Segment profit or loss
Finance income/costs, net(434,916)

Profit before tax

7,240,317

2. Dividends
Dividends paid in the six months ended May 31, 2015 and May 31, 2016 are as follows:
Six months ended May 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

Record date

Effective dateNovember 30, 2015

February 26, 2016

Six months ended May 31, 2016
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 25, 2016

Total dividends(¥ thousand)

16

772,544

3. Earnings per ShareSix months ended
May 31, 2015
Profit attributable to owners of the parent

Six months ended
May 31, 2016(¥ thousand)

2,653,947

4,743,981

Weighted average number of outstanding ordinary shares(shares)

48,284,000

48,284,000

54.97

98.25

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 six months ended May 31, 2015 is not presented due to an absence of potential
shares. Diluted earnings per share for the six months ended May 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.

14