This is an English translation of the official announcement in Japanese that was released on January 10, 2019. The translation
is prepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version
for complete and accurate information. Should there be any inconsistency between the translation and the official Japanesetext, the latter shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended November 30, 2018
<IFRS>
January 10, 2019
Company name: Tosei Corporation
Stock listing: TSE / SGX
Securities code number: 8923/S2D
URL: https://www.toseicorp.co.jp/english/
Representative: Seiichiro Yamaguchi, President and CEO
Contact: Noboru Hirano, Director and CFO
Phone: +81-3-3435-2865
Ordinary general shareholders’ meeting: February 27, 2019 (scheduled)
Commencement of dividend payments: February 28, 2019 (scheduled)
Submission of Securities Report (Yuka Shoken Hokokusho): February 28, 2019 (scheduled)
Preparation of supplementary materials for financial results: Yes
Holding of 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 Fiscal Year Ended November 30, 2018
(December 1, 2017 – November 30, 2018)(1) Consolidated Operating Results
RevenueYear ended Nov. 30, 2018Year ended Nov. 30, 2017(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)

61,54357,7546.6
15.9

10,875
9,833

10.6
6.0

10,171
9,049

12.4
7.1

6,852
6,155

11.3
11.0

Total comprehensive
income for the year

Profit attributable toowners of the parent
Year ended Nov. 30, 2018Year ended Nov. 30, 2017

(Percentages indicate year-on-year changes.)
Profit before tax
Profit for the year

Operating profit

Basic earnings
per share

Diluted earnings
per share(¥ million)(%)(¥ million)

(%)

(¥)

(¥)

6,852
6,155

11.3
11.0

6,856
6,165

11.2
11.9

141.36127.48141.12
127.41

Ratio of profit to equity
Ratio of profit before tax Ratio of operating profit
attributable to owners of
to total assets
to revenue
the parent
(%)

(%)

Year ended Nov. 30, 2018
14.0
7.8
Year ended Nov. 30, 2017
14.1
7.4
(Reference) Equity in earnings of affiliates
Year ended Nov. 30, 2018: ¥－million

(%)

17.7
17.0
Year ended Nov.30, 2017: ¥－million(2) Consolidated Financial Position
Total assets

As of Nov. 30, 2018
As of Nov. 30, 2017

Total equity

Ratio of equity
Equity per share
Equity attributable to attributable to owners
attributable toowners of the parent of the parent to total
owners of the parent
assets(¥ million)(¥ million)(¥ million)

(%)

(¥)

138,768
122,550

52,021
46,15852,021
46,15837.5
37.7

1,071.63
955.99(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash and cash
equivalents at end ofyear

Cash flows fromfinancing activities(¥ million)(¥ million)(¥ million)(¥ million)

7,615
7,089

(10,786)
(18)

5,941
(4,962)

26,52023,750Year ended Nov. 30, 2018Year ended Nov. 30, 2017

2. Dividends
Annual dividends per share

1Q-endYear ended Nov. 30,
2017Year ended Nov. 30,
2018Year ending Nov. 30,
2019(Forecast)

2Q-end 3Q-end Year-end

Total

Ratio of dividend
to equity
Total dividends
Payout ratio
attributable toper share(Consolidated) owners of the(Total)parent(Consolidated)

(¥)

(¥)

(¥)

(¥)

(¥)

(¥ million)

(%)

(%)

－

0.00

－

25.00

25.00

1,207

19.6

2.8

－

0.00

－

30.00

30.00

1,456

21.2

3.0

－

0.00

－

37.00

37.00

23.3

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2019
(Percentages indicate year-on-year changes.)(December 1, 2018 – November 30, 2019)(%) (¥ million)(%) (¥ million)

Profit attributable toowners of theparent(%) (¥ million)
(%)

16.2

10.8

10.4

Revenue(¥ million)
Year ending Nov. 30,
201971,510Operating profit

12,052

Profit before tax

11,230

7,708

12.5

Basic earnings
per share(¥)
158.79* Notes(1) Changes in significant subsidiaries during the year (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 year (including treasury shares)
As of Nov. 30, 2018
48,544,800 shares
As of Nov. 30, 2017
48,284,000 shares(b) Number of treasury shares at the end of the year
As of Nov. 30, 2018
105 shares
As of Nov. 30, 2017–(c) Average number of outstanding shares during the year
Year ended Nov. 30, 2018
48,472,355 sharesYear ended Nov. 30, 2017
48,284,000 shares

(Reference) Summary of Non-Consolidated Results
1. Non-consolidated Financial Results for the Fiscal Year Ended November 30, 2018
(December 1, 2017 – November 30, 2018)(Percentages indicate year-on-year changes.)(1) Non-consolidated Operating Results
Net salesYear ended Nov. 30, 2018Year ended Nov. 30, 2017

Operating income

Ordinary income

Net income(¥ million)(%)(¥ million)(%)(¥ million)(%)(¥ million)(%)

48,06145,491

5.6
8.4

6,330
6,434

(1.6)
(17.9)

6,770
7,218

(6.2)
1.3

5,370
5,449

(1.5)
15.1

Net income per share
Year ended Nov. 30, 2018Year ended Nov. 30, 2017

Net income per share(diluted)

(¥)

(¥)

110.79112.87110.60112.81(2) Non-consolidated Financial Position
Total assets

Net assets(¥ million)

Equity ratio(¥ million)

As of Nov. 30, 2018
128,160
As of Nov. 30, 2017
115,196(Reference) Equity As of November 30, 2018: ¥47,241million

Net assets per share
(%)

(¥)

47,28136.9
42,88937.2
As of November 30, 2017: ¥42,798million

973.16886.38

2. Non-consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2019
(Percentages indicate year-on-year changes.)(December 1, 2018 – November 30, 2019)
Net salesYear ending Nov. 30, 2019

Ordinary income

Net income

Net income per share(¥ million)(%)(¥ million)(%)(¥ million)

(%)

(¥)

60,027

24.9

9,541

40.9

7,156

33.3

147.41* These Financial Results are not subject to audit procedures by a certified public accountant or an audit corporation.
* Proper use of earnings forecasts and other notes(1) 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 be reasonable by theCompany. Actual performance and other results may differ substantially from these statements due to various
factors. For the assumptions on which the earnings forecasts are based and cautions concerning the use thereof,
please refer to “1.Operating results and Financial Position (4) Future outlook” on page 5 of the attached materials.
(2) A financial results meeting will be held on January 10, 2019 for institutional investors and analysts. The presentationmaterials distributed at the meeting will be available on our website immediately after the disclosure of accountsettlement.

Contents of Attached Material
1.

Operating Results and Financial Position ………………………………………………………...………2(1) Operating results..………………………………………….………………….……………....……2(2) Financial positions.………………………………………………….…………………….…………….4(3) Cash flows ……………………………………………………….……………………………............4(4) Future outlook….…………………………….........…..……..……..……..………..……..……....5(5) Fundamental Earnings Distribution Policy and Dividends for 2018 and 2019…………..….........52.

Basic Concept Regarding Selection of Accounting Standards…………………………………………….....53.

Consolidated Financial Statements ………………………………………………………….……..........6(1) Consolidated Statement of Financial Position ………………………………………………………….6(2) Consolidated Statement of Comprehensive Income ………………………………………………7(3) Consolidated Statement of Changes in Equity ………………………………………………..............8(4) Consolidated Statement of Cash Flows …………………………………………………….………….9(5) Notes on Consolidated Financial Statements ……………………………………………….…………10(Notes on Going Concern Assumption) ……………………………………………………………...10(Segment information) ………………………………………………………………………………...10(Earnings per share) ………………………………………………………………………………11(Significant subsequent events) …………………………………………………………………..111

1.

Operating Results and Financial Position(1) Operating Results
During the fiscal year ended November 30, 2018, the Japanese economy is recovering moderately,supported by increased capital investment on the back of favorable corporate earnings and stable personal
consumption, despite a temporary downturn caused by the natural disasters. A moderate recovery is expected
to continue going forward, backed by improvements of employment and income environments, as well as
various policies, despite concerns over the trend of trade issue and the future of emerging economies.
In the real estate industry where Tosei Group operates, domestic real estate transactions by listed companies
and other such entities from January to September 2018, increased 5% year on year to ¥3.0 trillion. Although
there are movements for financial institutions to tighten their policies on loans for real estate investment by
individuals who do not have sufficient own financial resources, in response to the fraudulent loans made bycertain local banks and other issues, the real estate investment market has generally been performing favorably,
supported by active property acquisitions by overseas investors and J-REITs (according to a survey by a
private research institute).
In the Tokyo metropolitan area condominium market, the number of units sold from January to October
2018 remained unchanged year on year, however, that the contract rate for the first month of sale continued tofall below the 70% threshold from which market conditions are viewed as favorable. In the build-for-saledetached house market, the number of units sold from January to September 2018 decreased 1% year on year,
however, there has been a sign of a recovery in demand with a perception that they are undervalued because ofa persistently high level of the condominium prices (according to surveys by the Ministry of Land,
Infrastructure, Transport and Tourism and private research institute).
The office leasing market of Tokyo’s five business wards has been performing favorably. According to asurvey by a private research institute, the average vacancy rate as of October 2018 is 2.2% which is the lowest
level since January 2002, and the average asking rent rose for the 58th consecutive month. Upward trend ofrent is likely to continue as the demand from corporate businesses for relocation and office expansion iscontinuously expected.
The real estate securitization market is continuing to expand. The total value of assets under management asof June 2018 grew to ¥17.3 trillion in J-REITs (an increase of ¥1.1 trillion year on year), and the total value of
assets under management in private placement funds grew to ¥16.9 trillion (an increase of ¥1.1 trillion year onyear), and the overall market scale of the real estate securitization market reached ¥34.2 trillion (an increase of¥2.2 trillion year on year) (according to a survey by a private research institute).
Amid this operating environment, in the Revitalization Business, the Group made steady progress in selling
assets such as income-generating office buildings and apartments, while in the Development Business, theGroup pushed ahead with sales of condominiums and detached houses. In addition, other than usual
acquisition methods, the Group also utilized an acquisition method of M&A, proactively acquiring incomegenerating properties and land for development as future sources of income.
As a result, consolidated revenue for the fiscal year under review totaled ¥61,543 million (up 6.6% year onyear), operating profit was ¥10,875 million (up 10.6%), profit before tax was ¥10,171 million (up 12.4%), andprofit for the year was ¥6,852 million (up 11.3%).
Performance by business segment is shown below.
Revitalization Business
During the fiscal year under review, the segment sold 44 properties it had renovated, including Nishidai
Tosei Building (Itabashi-ku, Tokyo), NU Kannai Building (Yokohama-shi, Kanagawa), Ikebukurojyoshikaikan Apartment (Toshima-ku, Tokyo), Higashitotsuka West Building (Yokohama-shi, Kanagawa),
Kichichoji Ito Building (Musashino-shi, Tokyo) and Kuramochi Building 2 (Sumida-ku, Tokyo). In
addition, the segment sold 22 units in the Restyling Business, including Hilltop Yokohama Negishi.
During the fiscal year under review, it also acquired a total of 43 income-generating office buildings andapartments and 12 land lots for renovation and sales purposes.
As a result, revenue in this segment was ¥34,793 million (down 13.6% year on year) and the segment
profit was ¥6,770 million (down 13.7%).

2

Development Business
During the fiscal year under review, the segment focused on the sale of condominium and detachedhouses. The segment sold 88 units at THE Palms Yutenji Master’s Place (Setagaya-ku, Tokyo) and sold
102 detached houses at such properties as THE Palms Court Koshigaya Lake Town (Koshigaya-shi,
Saitama), THE Palms Court Kamakura Shiromeguri (Kamakura-shi, Kanagawa), THE Palms Court
Kunitachi (Kokubunji-shi, Tokyo) and THE Palms Court Kashiwa Hatsuishi (Kashiwa-shi, Chiba). In
addition, the segment sold one commercial facility and 12 land lots. During the fiscal year under review, it
also acquired a land lot for condominium project, two lots for hotel project, a land lot for logistics facility
and land lots for 51 detached housings.
As a result, revenue in this segment was 13,261million (up 155.2% year on year) and the segment
profit was ¥1,487 million (in comparison with segment loss of ¥408 million in previous fiscal year).
Rental Business
During the fiscal year under review, while the segment sold 37 buildings of its inventory assets held forleasing purposes, it newly acquired 29 properties including income-generating office buildings andapartments. 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 ¥6,133 million (down 1.0% year on year) and the segment
profit was ¥2,534 million (down 1.8%).
Fund and Consulting Business
During the fiscal year under review, while ¥40,485 million was subtracted from the balance of assets
under management (Note), due mainly to property dispositions by funds, ¥151,636 million was added tothe balance of Assets under management ¥552,208 million 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 November 30, 2018, was ¥663,359 million. The acquisition of such large projectcontracts increased asset management fees and contributed to revenue.
As a result, revenue in this segment was ¥2,982 million (up 7.9% year on year) and the segment profit
was ¥1,616 million (up 26.9%).
Note: The balance of assets under management includes the balance of assets that were subject toconsulting contracts, etc.
Property Management Business
During the fiscal year under review, the segment worked to win new contracts and maintain existing
contracts. Consequently, the total number of properties under management was 622 as of November 30,
2018, a decrease of 43 properties from November 30, 2017, with that total comprising 390 officebuildings, hotel, schools and other such properties, and 232 condominiums and apartments.
As a result, although the total number of properties under management decreased, due to increase incommission and fees, etc., revenue in this segment was ¥4,015 million (up 20.6% year on year) andsegment profit was ¥453 million (up 63.1%).
OthersDuring the fiscal year under review, revenue in this segment was ¥356 million (the revenue was ¥0
million in this segment in the same period of the previous year) and the segment loss was ¥45 million(down 39.7% year on year).

3(2) Financial positions
As of November 30, 2018, total assets were ¥138,768 million, an increase of ¥16,218 million comparedwith November 30, 2017, while total liabilities were ¥86,746 million, an increase of ¥10,355 million. Thisis mainly due to, increase in inventories (up ¥2,739 million year on year) because sales of properties in therevitalization and development businesses, which are the core operations of the Company, exceeded thenumber of properties the Company sold. Increase in liabilities were primarily due to increase inborrowings (up ¥7,901 million year on year).Total equity increased by ¥5,862 million to ¥52,021 million,
mainly due to an increase in retained earnings.
(3) Cash flows
Cash and cash equivalents (hereinafter “cash”) as of November 30, 2018 totaled ¥26,520 million, an
increase of ¥2,770 million compared with November 30, 2017.
The cash flows for the fiscal year under review and factors contributing to those amounts are as
follows:
Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥7,615 million (up 7.4% year on year). This is mainly
attributed to the profit for the period before tax of ¥10,171 million and income taxes paid of ¥2,226
million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥10,786 million (¥18 million used in the same period of theprevious fiscal year). This is mainly due to purchase of investment properties of ¥8,714 million andpurchase of investments in subsidiaries resulting in change in scope of consolidation of ¥1,502 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥5,941 million (¥4,962 million used in the previous
fiscal year). This mainly reflects ¥33,360 million in the repayments of non-current borrowings related tothe sales of properties and others, ¥960 million payments of interest and ¥1,206 million in cash dividends
paid, despite ¥41,148 million in proceeds from non-current borrowings.
(Reference) Trends in cash flow indicators for the Tosei Group

Ratio of equity attributable to owners of theparent to total assets (%)
Market value ratio of equity attributable toowners of the parent to total assets (%)
Interest-bearing debt to cash flows ratio (years)

Year ended
Nov. 30, 2016

Year ended
Nov. 30, 2017

Year ended
Nov. 30, 2018

33.8

37.7

37.5

33.1

43.1

36.0

－

9.5

9.9

－
Interest coverage ratio (times)
Ratio of equity attributable to owners of the parent to total assets:
Market value ratio of equity attributable to owners of the parent tototal assets:
Interest-bearing debt to cash flows ratio:
Interest coverage ratio:

8.0
7.9
Equity attributable to owners of the parent to total
assets/Total assets
Market capitalization/Total assets
Interest-bearing debt/Cash flows
Cash flows/Interest expenses

Notes:(1) All indicators are calculated using consolidated financial figures.
(2) Market capitalization is calculated based on the number of issued shares, excluding treasury shares.
(3) The figure for cash flows employs cash flows from operating activities.
(4) Interest-bearing debt includes all liabilities recorded on the Consolidated Statement of Financial Position on which interest is
paid.
(5) Interest-bearing debt to cash flows ratio and interest coverage ratio are not presented for the year ended November 30, 2016
because cash flows from operating activities on the consolidated statements of cash flows was negative.

4(4) Future outlook
In the real estate investment market, which is the Company’s main target market, a continuing favorable
financing environment is fueling real estate transactions by corporations, J-REITs, overseas investors, etc.
Although lenders are increasing its cautious stance on loans for investment properties for individual investors
due to the impact of fraudulent loans made by certain local banks, the market has a favorable investment
environment compared to major cities around the world, and the demand for real estate investment is expected
to continue supported by firm demand for offices and stable demand for condominiums. On the other hand,investment properties in suburban area shows relative vulnerability compared to the favorable sales ofproperties in the metropolitan area. The Company believes that the investment strategy responsive to changes
in real estate market is needed.
For the fiscal year ending November 30, 2019, as the second year of its medium-term management plan
“Seamless Growth 2020,” from December 2017 to November 2020, the Company will continue its efforts
toward further growth of existing businesses and establishment of new income-generating businesses.
The Revitalization Business will revitalize and create added value for existing properties and aim to expand
operations through initiatives such as product line expansion and diversification of sales methods. With regard
to the acquisition of properties, the Company will actively increase the number of small- to medium-size andhigh liquid property in the metropolitan area and acquire over ¥2.0 billion of medium- to large-size andprofitable property, while paying attention to the portfolio. The Development Business will promote thedevelopment and sales of detached houses and condominiums that are in steady demand, as well as active
development of properties such as logistics facility and hotels after assessing the location demand. On theother hand, the Stock and Fee Business, the Company’s stable source of income, aims to expand all segments.
The Rental Business will strive to expand Company-held fixed assets; the Fund and Consulting Business willaccumulate assets under management; and the Property Management Business will increase properties undermanagement.
Moreover, as an initiative to establish new income-generating businesses, the Hotel Business segment will
be newly established from the fiscal year ending November 30, 2019. In addition to the operation and rental of
the existing properties, the Company is currently advancing the development of own brand hotel at threelocations following TOSEI HOTEL COCONE Kanda, opened in December 2017, and TOSEI HOTELCOCONE Ueno, opened in December 2018, and will continue to work toward the growth of hotel businessand enhancement of Tosei brand.
As a result of the above measures, the Company expects both revenue and profit to increase in the business
forecast for the fiscal year ending November 30, 2019 with a consolidated revenue of ¥71,510 million (up16.2% year on year), operating profit of ¥12,052 million (up 10.8%), profit before tax of ¥11,230 million (up10.4%), and profit for the year of ¥7,708 million (up 12.5%).
(5) Fundamental Earnings Distribution Policy and Dividends for 2018 and 2019
Tosei’s fundamental earnings distribution policy is to strive to continuously provide stable dividends while
comprehensively considering operating results, the future operating environment and progress in its businessplan to balance dividends with the need for internal capital resources to generate long-term growth in corporate
value by taking advantage of highly profitable business opportunities.
For the fiscal year ended November 30, 2018 and the fiscal year ending November 30, 2019, Tosei plans to
pay cash dividends per share of ¥30 and ¥37 respectively.
2.

Basic Concept Regarding Selection of Accounting Standards

Tosei Group has adopted IFRS.
The Group expects that adoption of IFRS will bring numerous benefits in facilitating its overseas expansion
going forward, such that include improving its creditworthiness abroad enhancing flexibility in fund raising by
global offering, etc., and improved convenience of financial information for overseas investors and others.
Meanwhile, another benefit is that the adoption of IFRS enables Tosei Corporation to submit IFRS-based
financial statements, as is, for matters involving both the Tokyo Stock Exchange and the Singapore Exchange
where the Company maintains multiple listings.

5

3. Consolidated Financial Statements and notes(1) Consolidated Statement of Financial Position(¥ thousand)As of Nov. 30, 2017
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Investment properties
Intangible assets
Available-for-sale financial assets
Trade and other receivables
Deferred tax assets
Other non-current assets
Total non-current assets

As of Nov. 30, 2018

23,750,239
2,148,608
59,718,614
26,376

26,520,569
3,090,237
62,457,864
30,49585,643,839

92,099,167

5,305,652
28,359,547
83,544
1,751,463
859,731517,587
28,914

8,785,869
33,752,847
87,9662,244,831
865,235
903,707
28,91436,906,441

46,669,371

122,550,281

138,768,538

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

4,278,612
6,449,040
732,961484,671

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

Total current liabilities

Total assets

11,945,287

14,423,341

Non-current liabilities
Trade and other payables
Borrowings
Retirement benefits obligations
Provisions
Deffered Tax Liabilties

3,280,020
60,674,335
472,574
19,197－

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

Total non-current liabilities

64,446,127

72,323,414

76,391,414

86,746,756

6,421,392
6,464,240
33,209,210－
64,024

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

Total equity attributable to owners of parent

46,158,867

52,021,782

Total equity

46,158,867

52,021,782

122,550,281

138,768,538

Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Treasury shares
Other components of equity

Total liabilities and equity6(2) Consolidated Statement of Comprehensive Income(¥ thousand)Year ended Nov. 30, 2017
Year ended Nov. 30, 2018
(Dec. 1, 2016 – Nov. 30, 2017) (Dec. 1, 2017 – Nov. 30, 2018)
Revenue
Cost of revenue

57,754,328
40,937,814

61,543,319
42,820,221

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

16,816,513
7,153,850
215,754
44,55018,723,097
7,860,072
147,032
134,249

Operating profit
Finance income
Finance costs

9,833,867
76,881
861,281

10,875,807
85,743
790,534

Profit before tax
Income tax expense

9,049,467
2,894,297

10,171,017
3,318,779

Profit for the year
Other comprehensive income
Items that will not be reclassified to net profit or loss
Remeasurements of defined benefit pension plans
Total items that will not be reclassified to net profit orloss
Items that may be reclassified to net profit or loss
Exchange differences on translation of foreign
operations
Net change in fair values of available-for-salefinancial assets
Net change in fair values of cash flow hedges
Total items that may be reclassified to net profit orloss
Other comprehensive income for the year, net of tax

6,155,169

6,852,237(4,016)(11,038)(4,016)(11,038)

12,035(881)(2,644)

13,480

5,070

2,913

14,461

15,513

10,445

4,474

Total comprehensive income for the year

6,165,615

6,856,712

Profit attributable to:
Owners of the parent

6,155,169

6,852,237

Total comprehensive income attributable to:
Owners of the parent

6,165,615

6,856,712

127.48127.41141.36141.12

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Diluted earnings per share (yen)7(3) Consolidated Statement of Changes in Equity
Year ended November 30, 2017 (Dec. 1, 2016 – Nov. 30, 2017)(¥ thousand)Share capital

Capitalreserves

Retainedearnings

Treasuryshares6,421,392

6,418,823

28,120,304－

Total equity
Other
attributablecomponents
Total equity
to owners ofof equity
parent41,010,083

41,010,083

6,155,169

6,155,169

10,445

10,445

10,445

10,445

6,165,615

6,165,615

Issuance of new shares－－

Purchase of treasury
shares－－Balance at Dec. 1, 2016

6,155,169

Profit for the year
Other comprehensive
incomeTotal comprehensive
income for the year
Amount of transactions
with owners－－

6,155,169－(1,062,248)

Dividends from surplus(1,062,248) (1,062,248)

45,416

Share-based payment
Transfer from othercomponents of equity toretained earnings
Balance at Nov. 30,
201749,562(4,016)
6,421,392

6,418,823

33,209,210－

45,41645,416

4,016

－

－

64,024

46,158,867

46,158,867

Year ended November 30, 2018 (Dec. 1, 2017 – Nov. 30, 2018)(¥ thousand)

Balance at Dec. 1, 2017

Share capital

Capitalreserves

Retainedearnings

Treasuryshares6,421,392

6,464,240

33,209,210－

64,024

46,158,867

46,158,867

6,852,237

6,852,237

4,474

4,474

4,474

4,474

6,856,712

6,856,712

208,495

208,495

(128)

(128)

6,852,237

Profit for the year
Other comprehensive
incomeTotal comprehensive
income for the year
Amount of transactions
with owners－－

Issuance of new shares

132,747

75,7486,852,237

Purchase of treasury
shares－(128)(1,207,100)

Dividends from surplus(1,207,100) (1,207,100)

4,935

Share-based payment
Transfer from othercomponents of equity toretained earnings
Balance at Nov. 30,
2018

Total equity
Other
attributablecomponents
Total equity
to owners ofof equity
parent(11,038)
6,554,139

6,544,924

38,843,309

8

(128)

4,935

4,935

11,038－－79,53752,021,782

52,021,782

(4) Consolidated Statement of Cash Flows(¥ thousand)Year ended Nov. 30, 2017
Year ended Nov. 30, 2018
(Dec. 1, 2016 – Nov. 30, 2017) (Dec. 1, 2017 – Nov. 30, 2018)
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividends income
Interest expenses
Gain on sales of stocks of subsidiaries and affiliates
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

9,049,467
393,045

10,171,017
621,108

98,422

112,683(76,881)861,281(123,505)
22,955(13,498)
353,672
415,296
59,676(85,743)
790,534－
791(827,489)(932,707)(14,822)(79,792)

SubtotalInterest and dividends income received
Income taxes paid

11,039,932
76,619(4,027,392)

9,755,580
85,743(2,226,001)

Net cash from (used in) operating activities

7,089,159

7,615,322

95,000(30,994)(1,282,517)(13,189)(687,589)
7,619－(72,169)(8,714,445)(33,450)(473,717)
1,907

349,201

3,458(1,085,000)
2,760,075－
77(182,766)(1,502,160)

39,328－Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of available-for-sale financial assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
assetsPayments of loans receivableCollection of loans receivable
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Proceeds from sales of investments in subsidiaries
resulting in change in scope of consolidation
Other, net
Net cash from (used in) investing activities
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
Other, net
Net cash from (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Effect of exchange rate change on cash and cash
equivalents
Cash and cash equivalents at end of year9

12,032

3,715(18,800)(10,786,784)(1,930,300)
38,871,150(39,951,833)－(1,061,561)(886,261)(3,374)

117,500
41,148,950(33,360,923)
208,086(1,206,976)(960,968)(3,783)(4,962,180)

5,941,884

2,108,179
21,640,866

2,770,422
23,750,239

1,193

(92)

23,750,239

26,520,569

(5) Notes on Consolidated Financial Statements(Notes on Going Concern Assumption)
No item to report.
(Segment information)(1) Summary of reportable segments
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 the properties
whose asset values have declined, renovates, and resells them. In the Development Business, the Groupsells condominium units and detached houses to individual customers as well as apartment and officebuildings to investors. In the Rental Business, the Group rents office buildings and apartments. The Fundand Consulting Business mainly provides asset management services for the properties placed in realestate funds. The Property Management Business provides comprehensive property management services.
(2) Method for calculating revenue, profit or loss and other items by reportable segment
The methods of accounting applied in the reported operating segments are consistent with theaccounting policies adopted by the Group.
The reported segment profit is calculated on an operating profit basis. Intersegment revenue or transfers
are based on actual market prices.
The Group’s revenue and profit by reportable segment are as follows:Year ended November 30, 2017
(Dec.1, 2016 – Nov 30, 2017)(¥ thousand)Reportable Segments
Total

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Revenue from externalcustomers

40,268,193

5,197,322

6,194,849

2,763,389

3,330,553

20－

57,754,328

Intersegment revenue－－

43,11438,933

1,306,827－(1,388,876)－

40,268,193

5,197,322

6,237,963

2,802,323

4,637,381

20(1,388,876)

57,754,328

7,845,032(408,738)

2,581,960

1,273,565

278,217(74,920)(1,661,249)

9,833,867

Other

Adjustment

Revenue

Total
Segment profit or loss
Finance income/costs, net(784,400)

Profit before tax

9,049,467

10

Year ended November 30, 2018
(Dec.1, 2017 – Nov 30, 2018)(¥ thousand)Reportable Segments
Total

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Other

Revenue from externalcustomers

34,793,585

13,261,604

6,133,861

2,982,251

4,015,450

356,565－

61,543,319

Intersegment revenue－－

44,221

56,356

1,216,701,

2,240(1,319,519)－

34,793,585

13,261,604

6,178,083

3,038,607

5,232,152

358,805(1,319,519)

61,543,319

6,770,700

1,487,253

2,534,521

1,616,478

453,725(45,211)(1,941,660)

10,875,807

Adjustment

Revenue

Total
Segment profit or loss
Finance income/costs, net(704,790)

Profit before tax

10,171,017(Earnings per share)
Year ended
November 30, 2017
(Dec. 1, 2016 – Nov. 30, 2017)

Year ended
November 30, 2018
(Dec. 1, 2017 – Nov. 30, 2018)

6,155,169

6,852,237

6,155,169

6,852,237

48,284,000

48,472,355

25,40285,411

48,309,402

48,557,766

Basic earnings per share (¥)

127.48141.36

Diluted net income per share (¥)

127.41141.12

Profit attributable to owners of the parent (¥ thousand)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.

(Significant subsequent events)
No item to report.

11