This is an English translation of the official announcement in Japanese that was released on October 6, 2014. The translation isprepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version forcomplete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, thelatter shall prevail.

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending November 30, 2014
<IFRS>
October 6, 2014
Company name: Tosei Corporation
Stock listing:
Securities code number: 8923 / S2D
Representative: Seiichiro Yamaguchi, President and CEO
URL:
Contact:
Noboru Hirano, Director and CFO
Phone:
Submission of Quarterly Securities Report (Shihanki-Houkokusho):Commencement of dividend payments:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting: No

TSE / SGX
http://www.toseicorp.co.jp/english/+81-3-3435-2864
October 10, 2014 (scheduled)―
Yes

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

Consolidated Financial Results for the Nine Months Ended August 31, 2014
(December 1, 2013 – August 31, 2014)(1) Consolidated Operating Results (cumulative)
Nine months ended
Aug. 31, 2014
Nine months ended
Aug. 31, 2013

Nine months ended
Aug. 31, 2014
Nine months ended
Aug. 31, 2013

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

Revenue(¥ million)(%)

Operating profit(¥ million)(%)

27,091

△6.9

3,574

△1.1

2,980

△3.1

1,832

△4.7

29,097

97.1

3,614

190.0

3,076

296.0

1,923

329.2

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

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

1,832

△4.7

1,837

1,923

329.2

1,929

Basic earnings
per share

Diluted earnings
per share
(¥)

(¥)

△4.8

37.95

－

329.7

41.78

－

Notes:
1. The figures above for the nine months ended August 31, 2013 are restatements in line with partial changes in accounting
policies. For details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting Policies
and Changes in Accounting Estimates” on page 5 of the attached materials.
2. The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share and diluted earnings
per share were calculated on the assumption that the share split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Ratio of equity
attributable to owners of
the parent to total assets(¥ million)(¥ million)(¥ million)(%)
As of Aug. 31, 2014
88,13931,54331,54335.8
As of Nov. 30, 2013
71,28330,09230,09242.2
Note: The figures above as of November 30, 2013 are restatements in line with partial changes in accounting policies. For
details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting Policies andChanges in Accounting Estimates” on page 5 of the attached materials.
Total assets

Equity attributable toowners of the parent

Total equity

2. Dividends
1Q-end(¥)

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

Year ended Nov. 30, 2013－
Year ending Nov. 30, 2014－
Year ending Nov. 30, 2014 (Forecast)
Note: Revision to the most recently released dividend forecasts: No

0.00
0.00

－
－

Total
(¥)

8.00

8.00

10.00

10.00

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2014
(December 1, 2013 – November 30, 2014)(Percentages indicate year-on-year changes.)
Profit attributable to Basic earnings
Revenue
Operating profit
Profit before tax
per shareowners of the parent(¥ million)(%) (¥ million)(%) (¥ million)(%) (¥ million)(%)(¥)
Fiscal year ending
November 30, 2014

41,817

19.2

4,618

18.1

3,800

18.1

2,309

15.3

47.82

Note: Revision to the most recently released earnings forecasts: No* Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in the scope of consolidation): No
Newly added: –Excluded: –(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS:Yes(b) Changes in accounting policies other than (a) above: No(c) Changes in accounting estimates:
No
Note: For details, please refer to “2. Matters Related to Summary Information (Notes) (2) Changes in Accounting
Policies and Changes in Accounting Estimates” on page 5 of the attached materials.

(3) Number of issued shares (ordinary shares)(a) Number of issued shares at the end of the period (including treasury shares)
48,284,000 shares
As of Aug. 31, 2014
As of Nov. 30, 2013
48,284,000 shares(b) Number of treasury shares at the end of the period–
As of Aug. 31, 2014
As of Nov. 30, 2013–(c) Average number of outstanding shares during the period (cumulative)
48,284,000 shares
Nine months ended Aug. 31, 2014
Nine months ended Aug. 31, 2013
46,044,583 shares
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the aforementioned numbers ofshares were calculated on the assumption that share split was implemented at the beginning of the previous fiscalyear.

* Information on implementation of quarterly review proceduresThis quarterly financial results report is exempt from quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. At the time of disclosure of this quarterly financial results report, the review
procedures for quarterly consolidated financial statements pursuant to the Financial Instruments andExchange Act have not been completed.
* Proper use of earnings forecasts and other notes
The forward-looking statements, including outlook of future performance, contained in these materials are
based on information currently available to the Company and on certain assumptions deemed to bereasonable by the Company. Actual performance and other results may differ substantially from thesestatements due to various factors. For the assumptions on which the earnings forecasts are based andcautions concerning the use thereof, please refer to “1. Qualitative Information on Quarterly Consolidated
Financial Performance (3) Qualitative Information on Consolidated Earnings Forecasts” on page 4 of theattached materials.

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 2(1) Qualitative Information Regarding Consolidated Operating Results........................................................ 2(2) Qualitative Information Regarding Consolidated Financial Positions ...................................................... 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 ....................................................................... 6(1) Condensed Consolidated Statement of Financial Position ........................................................................ 6(2) Condensed Consolidated Statement of Comprehensive Income ............................................................... 7(3) Condensed Consolidated Statement of Changes in Equity ....................................................................... 8(4) Condensed Consolidated Statement of Cash Flows .................................................................................. 9(5) Notes on Going Concern Assumption ..................................................................................................... 10(6) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................ 10(7) Notes on Significant Subsequent Events................................................................................................. 111

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
In the nine months ended August 31, 2014, the Japanese economy continued to follow a moderate
recovery trend. In part, the recoveries in consumer spending and corporate earnings stalled slightly, withdemand falling back after a spike ahead of the increase in the consumption tax rate in April 2014, but thisfallback in demand also gradually eased.
In the real estate industry where Tosei Group operates, real estate transactions increased markedly amid
low-interest rates and expectations of rises in land prices. The total acquisition amount of properties
acquired by listed companies and others in the period from January 2014 to June 2014 was ¥2.5 trillion, an
increase of 6% compared with the same period of the previous fiscal year and the highest acquisition
amount since the financial crisis (according to a survey by a private research institution).
In the Tokyo metropolitan area condominium market, supplies declined substantially due to a fallback
in reaction to the consumption-tax hike, as well as site acquisition difficulties and rising building costs. A
private think tank downwardly revised the forecast it made at the beginning of the year and the number ofcondominium units sold in 2014 is expected to be down 15%~20% year on year, falling below 50,000
units for the first time in two years. On the other hand, demand remained firm and the average first-monthcontract rate in July 2014, the latest data available, climbed to 83.7% (according to a survey by a private
research institution).
In the Tokyo metropolitan area built-for-sale detached house market, housing starts in the first half of2014, the latest period for which data is available, totaled 4,896 units per month, down 4.2% year on year.
The supply of detached houses is expected to be down approximately 10% compared to 2013, when themarket expanded because of rush demand; however, the supply remains firm on the whole (according to
the Ministry of Land, Infrastructure, Transport and Tourism data).
In the office leasing market of Tokyo’s five business wards, the market situation continued to improve,
mainly reflecting the low vacancy rate, which fell for 13 consecutive months as a result of firm demand for
office relocation and increased floor space from tenant companies. The vacancy rate in July 2014, thelatest data available, declined 2.09 percentage points year on year to 6.20%, while the average asking rent
continued to show a modest upward trend with a 0.34% increase month on month to ¥16,663/tsubo, which
was a 2.16% increase compared with the same month of the previous fiscal year (according to a survey bya private research institution).
At the same time, in the real estate securitization market, although J-REITs continued to be highly
motivated to acquire properties, the pace of acquisitions began to slow down due to growing competition
for acquisitions and property price increases. The total acquisition amount of properties acquired by JREITs in the period from January 2014 to June 2014 was ¥770 billion, down 42.8% year on year
(according to a survey by a private research institution). As of the end of June 2014, the total value of
assets under management in this market was ¥27.4trillion, comprising ¥11.9trillion at J-REITs and¥15.5trillion at privately placed funds (according to a survey by a private research institution).
Amid this operating environment, in the Revitalization Business, the Tosei Group made steady progresson the sale of assets such as income-generating office buildings and apartment buildings. In theDevelopment Business, the Group pushed ahead with sales of detached houses, condominiums and otherproducts. The Group also proactively acquired income-generating properties and development sites, which
will be the source of the Group’s future income.
As a result, consolidated revenue for the nine months ended August 31, 2014 totaled ¥27,091million(down 6.9% year on year), operating profit was ¥3,574million (down 1.1%), profit for the period before
tax was ¥2,980million (down 3.1%), and profit for the period was ¥1,832million (down 4.7%).
Performance by business segment is shown below.
Revitalization Business
During the nine months ended August 31, 2014, the segment sold 18 properties it had renovated,
including Akihabara Tosei Building (Chiyoda-ku, Tokyo), Ueno Takeuchi Building (Taito-ku, Tokyo),
FLEG Nishiazabu (Minato-ku, Tokyo), Yanagibashi Suzuwa Building (Taito-ku, Tokyo) and Nishijima
Building (Toshima-ku, Tokyo), and a land lot at Shinjuku 6-chome, Shinjuku-ku, Tokyo. In addition, thesegment sold 36 units in the Restyling Business, including Hilltop Yokohama Negishi (Yokohama-shi,
Kanagawa), Hilltop Yokohama Higashi Terao (Yokohama-shi, Kanagawa) and Estage Kaminoge

2

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(Setagaya-ku, Tokyo). In the nine months ended August 31, 2014, it also acquired for renovation and sales
purposes a total of 19 income-generating office buildings and apartment buildings and three land lots.
As a result, revenue in this segment was ¥15,719 million (up 58.2% year on year) and the segment profit
was ¥1,706 million (up 8.2%).
Development Business
During the nine months ended August 31, 2014, the segment focused on the sale of newly-built
condominiums and detached houses, which were seeing firm demand. The segment sold 33 newly-built
condominium units in THE Palms Nihonbashi Kodenmacho Visage (Chuo-ku, Tokyo), as well as a total of
55 detached houses such as properties at Palms Court Setagaya Okamoto (Setagaya-ku, Tokyo), Palms
Court Okusawa 1-Chome (Setagaya-ku, Tokyo), Palms Court Yokohama Hakuraku (Yokohama-shi,
Kanagawa) and Palms Court Kawasaki Daishi (Kawasaki-shi, Kanagawa). The segment also acquired
eight land lots for detached house projects and one land lot for a store development project.
As a result, revenue in this segment was ¥4,685 million (down 65.1% year on year) and the segment
profit was ¥422 million (down 65.3%).
Rental Business
During the nine months ended August 31, 2014, while the segment sold 17 buildings of its inventory
assets held for leasing purposes, it acquired a total of 18 income-generating office buildings and apartmentbuildings, and made an effort to lease them out. The segment also focused on leasing activities for its
preexisting non-current assets and inventory assets.
As a result, revenue in this segment was ¥2,993 million (up 60.4% year on year), and the segment profit
was ¥1,832 million (up 66.0%).
Fund and Consulting Business
During the nine months ended August 31, 2014, while the segment obtained new asset management
contracts in the amount of ¥111,869 million, the balance of assets under management decreased by¥68,595 million, due mainly to the property dispositions by funds. Consequently, the fee income relating
to acquisitions and dispositions of properties for funds made a contribution to the revenue.
As a result, revenue in this segment was ¥656 million (down 46.0% year on year) and the segment profit
was ¥133 million (down 79.5%).
As of August 31, 2014, the balance of assets under management (Note) totaled ¥291,302 million.
Note: The balance of assets under management includes the balance of assets that were subject toconsulting contracts, etc.
Property Management Business
As of August 31, 2014, the number of properties managed by the Company including office buildings,
parking lots and schools was 354, an increase of 26 from August 31, 2013, while the number ofcondominium and apartment buildings under management decreased by two to 202, making the total
number of properties under management 556, an increase of 24 from August 31, 2013.
As a result, revenue in this segment was ¥2,162 million (down 8.0% year on year) and the segment profit
was ¥187 million (up 113.5%).
Alternative Investment Business
During the nine months ended August 31, 2014, the segment focused on selling and leasing activities forproperties acquired by accepting a substitute performance. Membership fees from Crystal Sports Club,
which was acquired through an M&A transaction in the third quarter, also contributed to income in thissegment.
As a result, revenue in this segment was ¥874 million (up 197.5% year on year) and the segment profit
was ¥222 million (up 419.7%).

3

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(2) Qualitative Information Regarding Consolidated Financial Positions
1) Financial Positions
As of August 31, 2014, total assets were ¥88,139 million, an increase of ¥16,856 million compared with
November 30, 2013, while total liabilities were ¥56,596 million, an increase of ¥15,405 million.
This mainly reflected an increase in inventories resulting from purchase of properties exceeding sales ofproperties in the Revitalization Business and Development Business, and an increase in borrowings fromfinancial institutions.
Total equity increased by ¥1,451 million to ¥31,543 million compared with November 30, 2013, mainly
due to an increase in retained earnings and payment of cash dividends.
2) Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of August 31, 2014 totaled ¥12,701 million, down
¥2,010 million from November 30, 2013. This primarily reflected profit for the period before tax of ¥2,980
million, steady progress in property acquisitions in the Revitalization Business and Development Businessand an increase in borrowings from financial institutions accompanying such property acquisitions.
The respective cash flow positions and factors for the nine months ended August 31, 2014 are as
follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥14,697 million (net cash provided by operating activities
totaled ¥4,932 million in the same period of the previous fiscal year). This is mainly attributed to the
profit for the period before tax of ¥2,980 million and an increase in inventories of ¥16,030 million
resulting from property acquisitions in the Revitalization Business and Development Business.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥1,352 million (net cash provided by investing activities
totaled ¥7 million in the same period of the previous fiscal year). This is primarily due to purchase ofinvestment property of ¥1,095 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥14,036 million (an increase of 851.4% comparedwith the same period of the previous fiscal year). This mainly reflected proceeds from non-current
borrowings of ¥27,757 million, offset by ¥13,137 million in repayments of non-current borrowings and¥384 million in cash dividends paid.
(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The business results during the nine months ended August 31, 2014 basically remained stable asplanned and there is no change on the full-year consolidated earnings forecasts, announced on January 14,
2014.
The forward-looking statements contained in these materials, including forecasts of the future
performance, are based on the information available to the Company as of the date of announcement andon certain assumptions deemed to be reasonable by the Company. Actual performance and other results
may differ from these forecasts due to various factors.

4

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results

2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
No item to report.
(2) Changes in Accounting Policies and Changes in Accounting Estimates
With the exception of the following items, significant accounting policies that the Group applies incondensed quarterly consolidated financial statements are the same as the accounting policies used in the
consolidated financial statements for the previous fiscal year.
Changes in Accounting Policies
The Group applied the following standards effective from the first quarter of the fiscal year ending
November 30, 2014.
Standard

Name of standard

IAS 19

Employee Benefits

IFRS 10

Consolidated Financial
Statements

IFRS 11

Joint Arrangements

IFRS 12Disclosure of Interests in
Other Entities

IFRS 13

Fair Value Measurement

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

The above standards have no material impact on the condensed quarterly consolidated financial statements.
Among the above standards, for IAS 19, the comparative data have been adjusted retroactively inaccordance with transitional measures.
Changes in Presentation
In the past, sales expenses such as advertising costs for real estate for sale were posted in “Cost ofrevenue”, but from the first quarter of the current fiscal period, such expenses are being posted in “Selling,
general and administrative expenses.”This change was made in order to more accurately present the actual situation, due to the fact that the
aforementioned sales expenses more resemble sales costs than cost of goods sold these days.
To reflect this change in presentation, reclassification of accounts has been made for the condensed
consolidated statement of comprehensive income for the nine months ended August 31, 2013. As a result,¥1,125,032 thousand included in “Cost of revenue” in the condensed consolidated statement ofcomprehensive income for the nine months ended August 31, 2013 were reclassified to “Selling, generaland administrative expenses”.

5

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results

3. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)As of November 30, 2013
AssetsCurrent assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets

As of August 31, 2014

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

12,701,587
1,350,880
54,850,608
177,106

53,679,536

69,080,183

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

3,298,588
13,199,799
50,896789,639
1,339,001
377,437
4,014

17,603,536

19,059,377

71,283,073

88,139,560

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

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

1,572,081
8,396,746
534,368
119,492

Total current liabilities

Total current assets
Non-current assets
Property, plant and equipment
Investment properties
Intangible assets
Available-for-sale financial assets
Trade and other receivables
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

10,985,520

10,622,688

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

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

3,293,389
41,926,101
672,769
81,131

Total non-current liabilities

30,205,126

45,973,392

41,190,647

56,596,081

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

6,421,392
6,375,317
18,740,574
6,195

Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Other components of equity
Total equity
Total liabilities and equity

6

30,092,426

31,543,479

71,283,073

88,139,560

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Nine months ended
Nine months ended
August 31, 2013
August 31, 2014
(Dec. 1, 2012 – Aug. 31, 2013) (Dec. 1, 2013 – Aug. 31, 2014)
Revenue
Cost of revenue

29,097,107
21,791,120

27,091,664
20,393,694

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

7,305,986
3,705,113
24,81011,412

6,697,969
3,162,423
41,363
2,185

Operating profit
Finance income
Finance costs

3,614,270
3,203
541,464

3,574,723
3,321
597,613

Profit before tax
Income tax expense

3,076,010
1,152,170

2,980,431
1,147,951

Profit for the period
Other comprehensive income
Items that may be transferred to net profit or loss
Exchange differences on translation of foreign
operations
Net change in fair values of available-for-salefinancial assets
Net change in fair values of cash flow hedges

1,923,840

1,832,479

2,826

3,510

1,213

(372)

1,122

1,708

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

5,162

4,846

5,162

4,846

1,929,002

1,837,325

Profit attributable to:
Owners of the parent

1,923,840

1,832,479

Total comprehensive income attributable to:
Owners of the parent

1,929,002

1,837,325

41.78

37.95

－

－

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Diluted earnings per share (yen)7Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(3) Condensed Consolidated Statement of Changes in Equity
Nine months ended August 31, 2013 (December 1, 2012 – August 31, 2013)(¥ thousand)Other
components ofequityTotal equity

15,562,315(3,295)26,530,193－

1,923,840－

1,923,840

－

－

－

5,162

5,162

－

－

1,923,840

5,162

1,929,002

Issuance of new shares

966,719

858,818－－

1,825,537

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

Retained earnings from newly
consolidated subsidiaries

－

－

(981)

－

(981)

6,421,392

6,375,317

17,211,071

1,866

30,009,648

Share capital

Capital reserves

5,454,673

5,516,499

Profit for the period－

Other comprehensive income
Total comprehensive income
for the period

Balance at December 1, 2012

Balance at August 31, 2013

Retainedearnings

Nine months ended August 31, 2014 (December 1, 2013 – August 31, 2014)(¥ thousand)

Balance at December 1, 2013

Share capital

Capital reserves

6,421,392

6,375,317

Othercomponents ofequityTotal equity

17,294,366

1,348

30,092,426－

Retainedearnings

Profit for the period

－

－

1,
832,
479

Other comprehensive income

－

－

－

4,
846

Total comprehensive income
for the period

－

－

1,
832,
479

4,
846

Dividends from surplus－－(386,272)－(386,272)

6,421,392

6,375,317

18,740,574

6,195

31,543,479

Balance at August 31, 2014

8

1,
832,
479
4,
846
1,
837,
325

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Nine months ended
Nine months ended
August 31, 2013
August 31, 2014
(Dec. 1, 2012 – Aug. 31, 2013) (Dec. 1, 2013 – Aug. 31, 2014)
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividends income
Interest expenses
Net gain on disposal of available-for-sale financial
assetsLoss on retirement of property, plant and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other, net

3,076,010
130,274

2,980,431
138,2396,291(99,401)(3,203)
541,464(3,321)
597,613(7,323)(531)

183
1,047,537
1,595,633(1,344,428)
(106)

1,597
(1,363,165)(16,030,439)
356,247(3,355)

SubtotalInterest and dividends income received
Income taxes paid

5,042,333
3,224(113,222)(13,426,082)
2,288(1,273,742)

Net cash from (used in) operating activities

4,932,334(14,697,537)－(6,399)(178,199)(3,340)(52,000)
216,700(150,000)(13,929)(1,095,186)(27,812)(726,630)
749,450

30,782

1,156

－
60

(300,000)51－

210,317

Cash flows from investing activities
Payments into 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
Proceeds from purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Other, net

－

174

7,603

(1,352,409)

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(378,400)
15,969,988(15,127,705)
1,825,537(273,574)(539,150)(1,328)662,200
27,757,000(13,137,211)

Net cash from (used in) financing activities

1,475,366

14,036,090

6,415,305
9,410,622(2,013,856)
14,711,997

2,830

3,445

9,036

－

15,837,795

12,701,587

Net cash from (used in) investing activities

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate change on cash and cash
equivalents
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Cash and cash equivalents at end of period

9－(384,537)(859,902)(1,458)

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results(5) Notes on Going Concern Assumption
No item to report.
(6) Notes to Condensed Quarterly Consolidated Financial Statements
1. Segment Information
The Group’s reportable segments are components of the Group about which separate financial
information is available that the Board of Directors regularly conducts deliberations to determine theallocation of management resources and to assess the performance. The Group draws up comprehensive
strategies for each of the following business segments and conducts business activities accordingly;“Revitalization Business”, “Development Business”, “Rental Business”, “Fund and Consulting Business”,“Property Management Business”, and “Alternative Investment Business”. In the Revitalization Business,
the Group acquires the properties whose asset values have declined, renovates, and resells them. In 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. In the Alternative Investment Business, the Group acquires real estatecollateralized loans and sells the properties acquired through collection of debt and acceptance of
substitute performance.
The Group’s revenue and profit by reportable segment are as follows:
Nine months ended August 31, 2013
(December 1, 2012 – August 31, 2013)(¥ thousand)
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

9,937,661

13,431,667

1,866,362

1,215,575

2,352,075

293,764－

29,097,107

Intersegment revenue－－

42,182

16,620271,672－(330,475)－

9,937,661

13,431,667

1,908,545

1,232,195

2,623,747

293,764(330,475)

29,097,107

1,576,970

1,217,069

1,104,094

652,564

87,78242,802(1,067,012)

3,614,270

Total
Segment profit
Finance income/costs, net(538,260)

Profit before tax

3,076,010

Nine months ended August 31, 2014
(December 1, 2013 – August 31, 2014)(¥ thousand)
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

15,719,387

4,685,743

2,993,094

656,439

2,162,918

874,081－

27,091,664

Intersegment revenue－－

42,844

8,057

370,483－(421,385)－

15,719,387

4,685,743

3,035,939

664,496

2,533,402

874,081(421,385)

27,091,664

1,706,183

422,177

1,832,632

133,945

187,425

222,458(930,099)

3,574,723

Total
Segment profit
Finance income/costs, net(594,292)

Profit before tax

2,980,431

10

Tosei Corporation (8923) FY2014 Q3 Consolidated Financial Results

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

Dividends per share(¥)

Total dividends(¥ thousand)

600

274,104

Record date

Effective dateNovember 30, 2012

February 27, 2013

Nine months ended August 31, 2014
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2014

Dividends per share(¥)

Total dividends(¥ thousand)

8386,272

Record date

Effective dateNovember 30, 2013

February 28, 2014

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

Nine months ended
August 31, 2014
(Dec. 1, 2013 – Aug. 31, 2014)

1,923,840

1,832,479

46,044,583

48,284,000

41.78

37.95

Profit for the period attributable to owners of the parent(¥ thousand)
Weighted average number of common stock outstanding(shares)
Basic earnings per share (¥)

Notes: 1. Basic earnings per share is calculated by dividing profit attributable to owners of the parent, by the weighted average
number of ordinary shares outstanding during the reporting period.
2. Information on diluted earnings per share is omitted due to an absence of potential shares.
3. The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share were
calculated on the assumption that the share split was implemented at the beginning of the previous fiscal year ended
November 30, 2012.

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

11