This is an English translation of the official announcement in Japanese that was released on April 4, 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 Three Months of the Fiscal Year Ending November 30, 2014
<IFRS>
April 4, 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:

TSE / SGX
http://www.toseicorp.co.jp/english/+81-3-3435-2864
April 10, 2014 (scheduled)
―
Yes
No

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

1. Consolidated Financial Results for the Three Months Ended February 28, 2014
(December 1, 2013 – February 28, 2014)(1) Consolidated Operating Results (cumulative)
Three months ended
February 28, 2014
Three months ended
February 28, 2013

Three months ended
February 28, 2014
Three months ended
February 28, 2013

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

Revenue(¥ million)(%)

11,339(26.8)

1,600

(1.0)

1,427

1.3

872

0.6

15,501

208.4

1,616

119.5

1,408

147.5

867

216.5

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

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

872

0.6

872

0.1

18.07

–

867

216.5

871

216.4

18.98

–

Basic earnings
per share

Diluted earnings
per share(¥)(¥)

Notes:
1. The figures above for the three months ended February 28, 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 9 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.

1(2) Consolidated Financial Position
Total assets

As ofFebruary 28, 2014
As ofNovember 30, 2013

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

Equity attributable toowners of the parent

Total equity(¥ million)(¥ million)

75,84330,57830,57840.3

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 9 of the attached materials.

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

1Q-end(¥)––

Fiscal year ended November 30, 2013
Fiscal year ending November 30, 2014
Fiscal year ending November 30, 2014
(Forecast)

Total
(¥)

0.00

–

8.00

8.00

0.00

–

10.00

10.00

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

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 due to other reasons: 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 9 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 February 28, 2014
As of November 30, 2013
48,284,000 shares(b) Number of treasury shares at the end of the period
As of February 28, 2014–
As of November 30, 2013–2

(c) Average number of outstanding shares during the period (cumulative)
Three months ended February 28, 2014
48,284,000 shares
Three months ended February 28, 2013
45,684,000 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 fiscal
year.

* 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 8 of theattached materials.

3

○ Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 5(1) Qualitative Information on Consolidated Operating Results .................................................................... 5(2) Qualitative Information on Consolidated Financial Positions .................................................................. 7(3) Qualitative Information on Consolidated Earnings Forecasts ................................................................... 8
2. Matters Related to Summary Information (Notes) ................................................................................... 9(1) Changes in Significant Subsidiaries during the Period ............................................................................. 9(2) Changes in Accounting Policies and Changes in Accounting Estimates .................................................. 9
3. Condensed Quarterly Consolidated Financial Statements ..................................................................... 10(1) Condensed Consolidated Statement of Financial Position ...................................................................... 10(2) Condensed Consolidated Statement of Comprehensive Income ............................................................. 11(3) Condensed Consolidated Statement of Changes in Equity ..................................................................... 12(4) Condensed Consolidated Statement of Cash Flows ................................................................................ 13(5) Notes on Going Concern Assumption ..................................................................................................... 14(6) Notes to Condensed Quarterly Consolidated Financial Statements ........................................................ 14(7) Notes on Significant Subsequent Events................................................................................................. 16

4

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information on Consolidated Operating Results
During the three months ended February 28, 2014, the Japanese economy experienced a modest recovery,
as corporate earnings improved on the back of bold monetary easing and various economic stimulus
measures implemented by the government, and there were signs of an end to deflation, including an
increase in individual consumption.
In the real estate industry where Tosei Group operates, supported by companies’ capacity to invest andthe improvement in the financing environment, real estate acquisitions by business entities during 2013
totaled ¥636.1 billion, the highest level since 2000, and a significant increase of 2.9 times versus theprevious fiscal year. In addition, commercial real estate investment in Japan during 2013 rose toapproximately ¥4 trillion, double that of the previous fiscal year. The real estate market recovery trend isbecoming increasingly strong, driven by robust real estate transactions by J-REITs and privately placed
funds, etc. (According to a survey by a private research institution)
In the Tokyo metropolitan area condominium market, demand remained firm due to the surge indemand ahead of the consumption tax rate hike as well as other factors. The closing rate of sales contracts
stayed mainly above the 70% line, which is viewed as favorable conditions, and in January 2014 theclosing rate of sales contracts rose 9.4 percentage points compared to the previous fiscal year, to 78.6%. In
fiscal 2013, the number of condominiums supplied to the market in the Tokyo metropolitan area increased
23.8% versus the previous fiscal year, to 56,000, marking a significant increase. (According to a survey bya private research institution)
In the office leasing market of Tokyo’s five business wards, the upward trend of occupancy ratecontinues, and the rate of vacancy as of January 2014 became 7.18%, down 1.38 percentage points fromthe same month last year. The average asking rent rose in October 2013 for the first time in 16 months, andis expected to increase going forward. In January 2014, the average asking rent increased 0.22% comparedto the previous month, to ¥16,242/tsubo, which was 1.88% lower than the same month of the previous
fiscal year. (According to a survey by a private research institution)
In the real estate securitization market, investment real estate transaction activity was brisk, due to thecontinued favorable financing environment and the view that real estate prices would be moving higher.
Real estate acquisitions by J-REITs have increased significantly, and the total amount of properties
acquired during 2013 amounted to ¥2.2 trillion, up 2.1 times compared to 2012. (According to a survey bya private research institution) Domestic private placement REITs have steadily increased their assets since
they began investments in 2010, and as of the end of December 2013, the 6 investment corporations had a
combined balance of assets in excess of ¥500 billion. Private placement REITs tend to be selected bypension funds, and the market size is expected to grow further. (According to a survey by a private
research institution)
Amid this operating environment, in the Revitalization Business, Tosei Group made steady progress on
the sale of assets such as income-generating office buildings and apartment buildings. In the Development
Business, the Group sold detached houses, condominiums, and other products to end users. The Group also
proactively acquired income-generating real estate and development sites, which will be the source of theGroup’s future income.
As a result, consolidated revenue for the three months ended February 28, 2014 totaled ¥11,339 million(down 26.8% year-on-year), operating profit was ¥1,600 million (down 1.0%), profit before tax was¥1,427 million (up 1.3%), and profit for the period was ¥872 million (up 0.6%).
Revitalization Business
During the three months ended February 28, 2014, the segment sold seven properties it had renovated,
including Akihabara Tosei Building (Chiyoda-ku, Tokyo), Ueno Takeuchi Building (Taito-ku, Tokyo),and FLEG Nishiazabu (Minato-ku, Tokyo), and land lots. In addition, the Company sold 19 units under its
Restyling Business such as Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa), Hilltop Higashi Terao(Yokohama-shi, Kanagawa), and Estage Kaminoge (Setagaya-ku, Tokyo). Also, it acquired for renovationand sales purposes a total 11 properties of income-generating office buildings and apartment buildings aswell as one land lot.
As a result, revenue in this segment was ¥6,891 million (down 3.0% year-on-year), and the segment
profit was ¥864 million (down 35.1%).

5

Development Business
During the three months ended February 28, 2014, the segment focused on the sale of newly-built
condominiums and detached houses in firm demand. It sold 32 newly-built condominium units in THE
Palms Nihonbashi Kodenmacho Visage (Chuo-ku, Tokyo), as well as a total of 17 detached houses such as
properties at Palms Court Okusawa 1-Chome (Setagaya-ku, Tokyo), Palms Court Minamiasagaya(Suginami-ku, Tokyo), and Palms Court Setagaya Okamoto (Setagaya-ku, Tokyo). Also, it acquired 2 landlots for detached house projects.
As a result, revenue in this segment was ¥2,522 million (down 61.6% year-on-year), and the segment
profit reached ¥338 million (up 200.8%).
Rental Business
During the three months ended February 28, 2014, while the segment sold 7 buildings of its inventory
assets the Company holds for leasing purposes, it acquired a total of 11 of income-generating officebuildings and apartment buildings, and made an effort to lease them. It also focused on leasing activities
for its pre-existing non-current assets and inventories.
As a result, revenue in this segment was ¥771 million (up 45.1% year-on-year), and the segment profit
was ¥471 million (up 73.7%).
Fund and Consulting Business
During the three months ended February 28, 2014, while the segment obtained a new asset management
contract in the amount of ¥3,430 million, the balance of assets under management decreased by ¥30,242
million, due mainly to the property dispositions by funds. Consequently, the fee income relating toacquisitions and dispositions of properties for funds largely contributed to the revenue.
As a result, revenue in this segment was ¥291 million (down 29.0% year-on-year), and the segment
profit was ¥116 million (down 35.3%).
As of February 28, 2014, the balance of assets under management (Note) totaled ¥221,216 million.
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business
As of February 28, 2014, the number of properties managed by the Company including office buildings,
parking lots and schools was 348, an increase of 35 from February 28, 2013; while the number ofcondominium and apartment buildings decreased by 10 to 205 from February 28, 2013, making the total
number of properties under management 553, an increase of 25 from February 28, 2013.
As a result, revenue in this segment was ¥787 million (down 0.3% year-on-year), and the segment
profit was ¥97 million (up 128.7%).
Alternative Investment Business
During the three months ended February 28, 2014, the segment focused on leasing of the properties which
it had acquired by accepting a substitute performance.
As a result, revenue in this segment was ¥74 million (down 17.3% year-on-year), and the segment
profit was ¥42 million (up 90.3%).

6

(2) Qualitative Information on Consolidated Financial Positions
1) Financial Positions
As of February 28, 2014, total assets increased by ¥4,560 million to ¥75,843 million compared with
November 30, 2013, while total liabilities increased by ¥4,073 million to ¥45,264 million.
These were 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 increasein borrowings from financial institutions.
Total equity increased by ¥486 million to ¥30,578 million compared with November 30, 2013,
mainly due to an increase in retained earnings and payment of cash dividends.
The details of the use of net proceeds from issuance of new shares on the Singapore Exchange in July
2013, as of February 28, 2014, are as follows:
1. Use of Placement Proceeds(¥ thousand)Total amount raised in July 2013

1,933,438

Total amount utilized from the proceeds (As of February 28, 2014)

1,933,438

Balance proceeds–

2. Details of Use of Proceeds(¥ thousand)

Revitalization Business
Acquisition cost of residential building in
Sendagi (partial)

Bunkyo-ku, Tokyo

Apartment

95,500Acquisition cost of residential building in
Shonan (partial)

Fujisawa-shi,
Kanagawa

Apartment

29,864

Acquisition cost of residential building in
Kokubunji (partial)

Kokubunji-shi,Tokyo

Apartment

234,785

Acquisition cost of office building in Chiba(partial)

Chiba-shi, Chiba

Income-generating
office building

401,226

Subtotal

761,375

Development Business
Construction cost of THE Palms Nishigahara(partial)

Kita-ku, Tokyo

Condominium

384,250

Construction cost of Palms Court
Minamiasagaya (partial)

Suginami-ku,
Tokyo

Detached house

22,684

Construction cost of THE Palms Nihonbashi
Kodenmacho Visage (partial)

Chuo-ku, Tokyo

Condominium

354,441

Subtotal

761,375

Fund and Consulting Business
Investment in a private fund through Tokumei Kumiai (silent partnership)

50,000Co-equity investment in a private fund (partial)

360,687
Subtotal

Total amount utilized from the proceeds (As of February 28, 2014)

7

410,687
1,933,438

2)Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of February 28, 2014 increased by ¥50 million from
November 30, 2013 to ¥14,762 million because of the profit for the period before tax of ¥1,427 million,
the 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 the factors thereof for the three months ended February 28,
2014 are as follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥3,164 million (net cash provided by operating activities
totaled ¥7,529 million in the same period of the previous fiscal year). This is mainly attributed to the
profit for the period before tax of ¥1,427 million and an increase of ¥3,625 million in inventories
resulting from property acquisitions in the Revitalization Business and Development Business.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥1,137 million (net cash used in investing activities totaled¥14 million in the same period of the previous fiscal year). This is primarily due to purchase ofinvestment property of ¥1,088 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥4,352 million (net cash used in financing activities
totaled ¥6,012 million in the same period of the previous fiscal year). This mainly reflected ¥5,370
million in repayments of non-current borrowings and ¥349 million in cash dividends paid, despite
proceeds from non-current borrowings of ¥10,286 million.

(3) Qualitative Information on Consolidated Earnings Forecasts
The business results during the three months ended February 28, 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.

8

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 of sales”,
but from the first quarter of the current fiscal period, such expenses are being posted in “Selling, generaland 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 three months ended February 28, 2013. As aresult, ¥401,729 thousand included in “Cost of sales” in the condensed consolidated statement ofcomprehensive income for the three months ended February 28, 2013 were reclassified to “Selling, generaland administrative expenses”.

9

3. Condensed Quarterly Consolidated Financial Statements(1) Condensed Consolidated Statement of Financial Position(¥ thousand)
Notes

As of November 30, 2013

As of February 28, 2014

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

14,762,484
897,369
42,191,257
23,33453,679,536

57,874,446

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

3,301,686
13,259,058
33,926
846,648
132,925
390,510
4,014

17,603,536

17,968,769

71,283,073

75,843,216

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

1,530,130
7,774,847
393,785
115,902

Total current liabilities

10,985,520

9,814,665

2,107,809
27,449,160
624,154
24,0032,530,933
32,271,182
625,886
21,883

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
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

10

30,205,126

35,449,885

41,190,647

45,264,550

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

6,421,392
6,375,317
17,780,561
1,393

30,092,426

30,578,665

71,283,073

75,843,216

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Three months ended
February 28, 2013

Three months ended
February 28, 2014

Revenue

15,501,359

11,339,965

Cost of revenue

12,634,330

8,632,314

Gross profit

2,867,029

2,707,651

Selling, general and administrative expenses

1,253,762

1,117,028

Other income

4,860

9,707

Other expenses

1,245

84

Operating profit

1,616,881

1,600,246

Finance income

1,416

1,420

Finance costs

209,616

173,994

Profit before tax

1,408,680

1,427,672

Income tax expense

541,605555,205

Profit for the period

867,075

872,466

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

2,148

(169)

2,776

(372)

Net change in fair values of cash flow hedges

(72)

587

Subtotal

4,852

44

Other comprehensive income for the period, net of
tax

4,852

44

871,927

872,511

867,075

872,466

871,927

872,511

18.98

18.07

–

–

Notes

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
Basic earnings per share (yen)Diluted earnings per share (yen)11(3) Condensed Consolidated Statement of Changes in Equity
Three months ended February 28, 2013 (December 1, 2012 – February 28, 2013)(¥ thousand)Other
components ofequityTotal equity

15,562,315(3,295)26,530,193–

867,075–

867,075

–

–

–

4,852

4,852

Total comprehensive income
for the period––

867,075

4,852

871,927

Dividends of surplus––(274,104)–(274,104)

Retained earnings from newly
consolidated subsidiaries

–

–

(981)

–

(981)

Balance at February 28, 2013

5,454,673

5,516,499

16,154,305

1,557

27,127,035

Share capital

Capital reserves

Retainedearnings

5,454,673

5,516,499

Profit for the period–

Other comprehensive income

Notes
Balance at December 1, 2012

Three months ended February 28, 2014 (December 1, 2013 – February 28, 2014)(¥ thousand)Other
components ofequityTotal equity

17,294,366

1,348

30,092,426–

872,466–

872,466

–

–

–

44

44

Total comprehensive income
for the period––

872,46644872,511

Dividends of surplus––(386,272)–(386,272)

6,421,392

6,375,317

17,780,561

1,393

30,578,665

Share capital

Capital reserves

Retainedearnings

6,421,392

6,375,317

Profit for the period–

Other comprehensive income

Notes
Balance at December 1, 2013

Balance at February 28, 201412

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Three months ended
February 28, 2013

Three months ended
February 28, 2014

1,408,680
42,9881,427,672
45,015(37,366)(96,486)(1,416)
209,616––
757,450
6,974,074(1,786,529)
280(1,420)173,994(531)
57
169,781(3,625,713)(419,397)
338

SubtotalInterest and dividend income received
Income taxes paid

7,567,778
1,388(39,624)(2,326,688)
1,419(839,178)

Net cash from (used in) operating activities

7,529,542(3,164,447)(1,142)(12,570)–––(6,590)(1,088,778)(5,302)(58,000)
20,100

–

1,156

–
(988)

17
–

Notes
Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividend income
Interest expenses
Gain on available-for-sale financial assets
Loss on retirement of property, plant and equipment
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Increase (decrease) in trade and other payables
Other, net

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of available-for-sale financial assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
assetsCollection of loans receivable
Other, net
Net cash from (used in) investing activities(14,702)(1,137,398)

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(361,400)
3,661,000(8,911,725)(248,206)(152,091)(442)

94,00010,286,000(5,370,121)(349,371)(307,566)(442)

Net cash from (used in) financing activities(6,012,865)

4,352,497

1,501,974
9,410,622

50,651
14,711,997

2,176

(164)

9,036

–

10,923,810

14,762,484

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 period13(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 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, theGroup 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 Businessprovides comprehensive property management services. In the Alternative Investment Business, theGroup acquires real estate collateralized loans and sells the properties acquired through collection ofdebt and acceptance of substitute performance.

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The Group’s revenue and profit/loss by reportable segment are as follows:
Three months ended February 28, 2013
(December 1, 2012 – February 28, 2013)(¥ thousand)
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Alternative
Property
Management Investment
Business
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

7,107,704

6,570,716

531,845

410,540

789,857

90,696–

15,501,359

Intersegment revenue––

13,7371,290

77,872–(92,899)–

7,107,704

6,570,716

545,582

411,830

867,729

90,696(92,899)

15,501,359

1,330,858

112,522

271,403

180,741

42,511

22,298(343,454)

1,616,881

Total
Segment profit
Finance income/costs, net(208,200)

Profit before tax

1,408,680

Three months ended February 28, 2014
(December 1, 2013 – February 28, 2014)(¥ thousand)
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Alternative
Property
Management Investment
Business
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

6,891,612

2,522,801

771,857

291,490787,215

74,987–

11,339,965

Intersegment revenue––

14,298

2,972

123,609–(140,880)–

6,891,612

2,522,801

786,156

294,462

910,825

74,987(140,880)

11,339,965

864,337

338,465

471,367

116,921

97,21342,438(330,497)

1,600,246

Total
Segment profit
Finance income/costs, net(172,573)

Profit before tax

1,427,672

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2. Dividends
Dividends paid in the three months ended February 28, 2013 and February 28, 2014 are as follows:
Three months ended February 28, 2013
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 26, 2013

Total dividends(¥ thousand)

600

274,104

Record date

Effective dateNovember 30, 2012

February 27, 2013

Three months ended February 28, 2014
Resolution

Dividends per share(¥)

Ordinary General Meetingof Shareholders held on
February 27, 2014

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 ShareThree months ended
February 28, 2013
Profit attributable to owners of the parent

Three months ended
February 28, 2014(¥ thousand)

867,075

872,466

Weighted average number of outstanding ordinary shares(shares)

45,684,000

48,284,000

18.98

18.07

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
Impact of Tax Rate Change
In line with the abolition of the special corporate tax for reconstruction, a surtax for reconstruction funding
after the Great East Japan Earthquake, by the revision of the Corporation Tax Act of 2014 promulgated on
March 31, 2014, the normal effective statutory tax rate, which is a basis for calculating income taxes, forthe fiscal year beginning on December 1, 2014 changed from previous 38.01% to 35.64%.
The impact of this change on deferred tax assets and liabilities are immaterial.

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