Please note that this document is a translation of the official announcement in Japanese that was released on July 5, 2013. The
translation is prepared and provided for the purpose of the readers’ convenience only. All readers are strongly recommended torefer to the original Japanese version for complete and accurate information. In the event of any inconsistencies, please note that
the Japanese version shall be taken as the correct version.

Consolidated Financial Results
for the First Six Months of the Year Ending November 30, 2013
<IFRS>
July 5, 2013
Company name: Tosei Corporation
Stock listing: Tokyo Stock Exchange, First Section/
Securities code number: 8923/S2D
Singapore Exchange, Mainboard
Representative: Seiichiro Yamaguchi, President and CEO URL: http://www.toseicorp.co.jp/english/
Contact: Noboru Hirano, Director and CFO
Phone: +81-3-3435-2864
Scheduled date of submission of quarterly securities report: July 10, 2013
Scheduled date of commencement of dividend payments: ―Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for institutional investors and analysts)
Note: All amounts are rounded down to the nearest million yen.

1.

Consolidated Financial Results for the Six Months Ended May 31, 2013
(December 1, 2012 – May 31, 2013)(1) Consolidated Operating Results (cumulative)
Six months ended
May 31, 2013
Six months ended
May 31, 2012

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

Revenue(¥ million)(%)

Operating profit(¥ million)(%)

23,090

127.6

2,752

282.6

2,384

497.3

10,147

－

719

－

399

－

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

Total comprehensive
income for the period

Basic earnings
per share

1,461 558.3
221－

Diluted earnings
per share(¥ million)
(%)
(¥)
(¥)
Six months ended
1,461 558.3
1,466 561.1
31.99－
May 31, 2013
Six months ended
221
221
4.86
－
－
－
May 31, 2012
Note: 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 stock had been split at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

As of May 31, 2013
As of Nov. 30, 2012(¥ million)
63,93665,363

Total equity(¥ million)
27,73526,543Equity attributable toowners of the parent(¥ million)
27,73526,543

Ratio of equity
attributable to owners of
the parent to total assets
(%)
43.4
40.6

2. Dividends
Annual dividends per share
2Q-end3Q-endYear-end
Total
(¥)
(¥)
(¥)
(¥)
(¥)
Year ended Nov. 30, 2012–
0.00–
600.00600.00Year ending Nov. 30, 2013–
0.00
Year ending Nov. 30, 2013 (Forecast)
–
8.00
8.00
Note: Revision to the most recently released dividend forecasts: Yes
Note: The Company split its shares by 100 for 1, effective July 1, 2013. As for the dividend per share for the fiscal year ended
November 30, 2012, the pre-stock split amount is presented.
1Q-end

3. Consolidated Earnings Forecasts for the Year Ending November 30, 2013
(December 1, 2012 – November 30, 2013)
Revenue

Operating profit(Percentages indicate year-on-year changes.)
Profit for the period
Basic earnings
Profit before tax
attributable toper shareowners of the parent(¥ million)(%)(¥ million)(%)(¥)(¥ million)(%)(¥ million)(%)
Year ending
34,946 44.4
3,805 33.2
3,107 40.1
1,903 29.9
41.66
Nov. 30, 2013
Note: Revision to the most recently released earnings forecasts: Yes
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the basic earnings per share in the
consolidated earnings forecast for the current fiscal year is presented in consideration of the effect of the stock split.

* Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in changes in the scope of consolidation): No
Newly added: –Excluded: –(2) Changes in accounting policies and changes in accounting estimates(a) Changes in accounting policies required by IFRS: No(b) Changes in accounting policies 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 period (including treasury shares)
As of May 31, 2013
45,684,000 shares
As of Nov. 30, 2012
45,684,000 shares(b) Number of treasury shares at the end of the period
As of May 31, 2013–
As of Nov. 30, 2012–(c) Average number of outstanding shares during the period (cumulative)
Six months ended May 31, 2013
45,684,000 shares
Six months ended May 31, 2012
45,684,000 shares
Note: The Company split its shares by 100 for 1, effective July 1, 2013. Therefore, the aforementioned numbersof shares were calculated on the assumption that the stock had been split at the beginning of the previous fiscal
year.

* Information regarding 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(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 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 Regarding Consolidated Earnings Forecasts” on page 4 of
the attached materials.
(2) The Company split its shares by 100 for 1, effective July 1, 2013.

Tosei Corporation (8923) FY2013 Q2 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 ...................................................... 3(3) Qualitative Information Regarding Consolidated Earnings Forecasts ...................................................... 4
2. Matters Related to Summary Information (Other Information) ............................................................. 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................................................................................................. 13

1

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the first six months ended May 31 2013 (December 1, 2012 to May 31, 2013), the correction ofstrong Yen progressed in reflection of the economic policy and the bold monetary easing by the newadministration. While there is some concern for a rise in long-term interest rates which may jeopardize
the real economy, the exporting environment and the corporate business performances have shown signs ofrecovery and personal spending picked up with improved consumer sentiments. The expectation foreconomic recovery has been growing.
In the real estate sector, where Tosei Group operates, the demand for residential properties remained
strong, supported by the anticipation for the economic recovery and the lower interest rates for housing
loans. Since 2010, the closing rate of condominium sales in the Greater Tokyo area has mostly remained
above 70%, which is viewed as a threshold of favorable market conditions, and went up to a high 78.2% in
the this April, 2013.
In the office leasing market of Tokyo’s five business wards, while the average asking rent is still
showing small decrease, the vacancy rate is on a declining trend, as the large supply of new office space is
now completed and mostly absorbed, and it reached 8.54% in April 2013, 0.69 percentage point lower than
the same month last year.
In the real estate securitization market, a favorable market condition drove IPOs and new fund raisingby J-REIT to finance property acquisitions. As a result, J-REIT transactions accounted for ¥1.4 trillion or
58% of the total domestic real estate transactions of ¥2.6 trillion in fiscal year 2012 (April 2012 to March2013). As of the end of December 2012, the balance of asset under management was ¥9.0 trillion for JREIT and ¥17.5 trillion for the privately placed funds, totaling ¥26.5 trillion.
In this operating environment, Tosei Group successfully executed the sale of income-generating officebuildings and apartment buildings in the Revitalization Business. In the Development Business, the sale ofdetached houses continued, and the delivery of THE Palms Sendagaya condominium commenced in April
2013, contributing to our profit. In addition, the Company continues to be active in acquiring the incomegenerating properties and land lots for a development purpose, which will be the source of future income.
As a result, for the first six month ended May 31, 2013, consolidated revenue totaled ¥23,090 million(an increase of 127.6% compared with the same period in the previous fiscal year), operating profit was¥2,752 million (an increase of 282.6%), profit before tax was ¥2,384 million (an increase of 497.3%), andprofit for the period was ¥1,461 million (an increase of 558.3%).
Segment results were as follows:
Revitalization Business
During the six months ended May 31, 2013, the Company sold 10 properties it had refurbished,including Excel TY Building (Shibuya Ward, Tokyo), Meguro Ekimae Tosei Building (Shinagawa Ward,
Tokyo), Harajuku Mansion (Shibuya Ward, Tokyo), Kanda Urban Building (Chiyoda Ward, Tokyo). In
addition, the Company sold 41 units under its Restyling Business such as Hilltop Yokohama Negishi(Yokohama City, Kanagawa Prefecture), Hilltop Higashi Terao (Yokohama City, Kanagawa Prefecture),and Estage Kaminoge (Setagaya Ward, Tokyo). As a result, revenue in this segment reached ¥8,745
million, an increase of 160.7% from the same period last year, and the segment profit was ¥1,496 million,
an increase of 556.2%.
Development Business
During the six months ended May 31, 2013, the Company sold Kamata Tosei Building (Ota Ward,
Tokyo) as well as a total of 47 detached houses such as properties at Palms Court Hatsudai (Shibuya Ward,
Tokyo), Palms Court Koishikawa (Bunkyo Ward, Tokyo) and Palms Court Setagaya Okamoto (Setagaya
City, Chiba), and 52 newly built condominium units in THE Palms Sendagaya (Shibuya Ward, Tokyo),
THE Palms Tsukishima Luna Garden (Chuo Ward, Tokyo) and THE Palms Takadanobaba (Shinjuku
Ward, Tokyo). As a result, revenue in this segment came to ¥10,420 million (up by 245.5% year-on-year),and segment profit reached ¥702 million (up by 176.0% year-on-year).

2

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

Rental Business
During the six months ended May 31, 2013, the Company focused on leasing activities for its noncurrent assets and inventories and worked to sustain a certain level of occupancy rates. As a result, revenue
in this segment was ¥1,179 million, an increase of 3.2% compared with the same period last year, and thesegment profit was ¥685 million, an increase of 11.9%.
Fund and Consulting Business
During the six months ended May 31, 2013, the Company enjoyed a stable asset management fee
income. In addition, brokerage fees and other income relating to large-scale transactions were booked. As
a result, revenue in this segment was ¥963 million (up by 148.6% year-on-year), while segment profit was¥541 million (up by 565.2% year-on-year).
As of May 31, 2013, the balance of assets under management (Note) totaled ¥256,388 million.
Note: The balance of assets under management includes the balance of assets which were subject to consulting contracts,
etc.

Property Management Business
During the six months ended May 31, 2013, the number of properties managed by the Company
including office buildings, parking lots and schools was 324 properties, an increase of 12 compared withthe same period last year; while the number of condominiums and apartments increased by 8 to 215
properties, the total number of properties under management came to 539, an increase of 20 from the same
period last year.
As a result, revenue in this segment was ¥1,592 million, a decrease of 10.6% compared with the same
period last year, and the segment profit was ¥67 million, a decrease of 17.7%.
Alternative Investment Business
During the six months ended May 31, 2013, the segment focused on the sale of properties acquired
through M&A, collection of debt, and leasing of the properties which the Company acquired as in-kind
repayments. The segment recognized gain on the sale of properties and loans receivable, interest income,as well as rental income from properties acquired as in-kind repayments. Consequently, revenue in thissegment came to ¥189 million, a decrease of 59.4% compared with the same period last year, and thesegment profit was ¥26 million, a down by 40.7%.
(2) Qualitative Information Regarding Consolidated Financial Positions
1) Financial Positions
As of May 31, 2013, total assets decreased by ¥1,426 million to ¥63,936 million compared with
November 30, 2012, while total liabilities decreased by ¥2,618 million to ¥36,200 million.
These were primarily due to a decrease in inventories resulting from sales of properties exceedingpurchases in the Revitalization Business and the Development Business, and a decline in borrowings fromfinancial institutions.
Total equity increased by ¥1,191 million to ¥27,735 million compared with November 30, 2012,
mainly due to an increase in retained earnings and dividend payments.
2)

Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of May 31, 2013 increased by ¥3,558 million from
November 30, 2012 to ¥12,969 million because of the quarterly profit before tax of ¥2,384 million adecrease in inventories led by steady sales of properties in the Revitalization Business and theDevelopment Business, as well as a resulting decline in borrowings from financial institutions.
The respective cash flow positions and the factors thereof for the six months ended May 31, 2013 are
as follows:
Cash Flows from Operating Activities
Net cash provided by operating activities totaled ¥5,819 million (net cash used in operating activities

3

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

totaled ¥741 million in the same period of the previous year). This is mainly attributed to the quarterly
profit before tax of ¥2,384 million and a decrease of ¥3,747 million in inventories resulting from sales ofproperties in the Revitalization Business and the Development Business.
Cash Flows from Investing Activities
Net cash provided by investing activities totaled ¥90 million (net cash used in investing activities totaled¥146 million in the same period of the previous year). This is primarily due to the collection ofavailable-for-sale financial assets in the amount of ¥216 million.
Cash Flows from Financing Activities
Net cash used in financing activities totaled ¥2,363 million (an increase of 356.3% year-on-year). This
mainly reflected ¥11,828 million in repayment of long-term borrowings and ¥273 million in dividend
payments, despite proceeds from long-term borrowings of ¥10,485million.
(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The Company made the following revision in its consolidated earnings forecasts for the full-year
ending November 30, 2013 (December 1, 2012 to November 30, 2013), which had been announced on
April 5, 2013.
Revenue(¥ million)

Operating profit(¥ million)

Profit before
tax (¥ million)

Profit for the year
attributable toowners of the parent

Basicearnings
per share(¥ million)(¥)< IFRS based>
Previous forecast (A)37,013

3,284

2,635

1,597

34.98

Revised forecast (B)34,946

3,805

3,107

1,903

41.66

Amount of change (B-A)(2,066)

521

472

305

Percentage change (%)(5.6%)

15.9%

17.9%

19.1%

< IFRS based>

Given the rescheduled sale of certain buildings and the progress of the sale of Restyling properties, theCompany revised its consolidated revenue forecast to ¥34,946 million, down by ¥2,066 million from theinitial forecast.
On the other hand, the sale of buildings such as income-generating offices is expected to book larger
profit margins than the original plans, reflected by a recovery in the real estate market, and thecondominiums to be delivered in the second-half of the year are also forecasted to achieve greater
profitability. Supported by these factors, the Company revised its forecasts for the operating profit to be¥3,805 million, up by ¥521 million, and the profit for the year to be ¥1,903 million, up by ¥305 million.
The forward-looking statements contained in these materials, including forecasts of the future
performance, are based on the information available to the Company as of the date of announcement andon certain assumptions deemed to be reasonable by the Company. Actual performance and other results
may differ from forecasts due to various factors.

4

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

2. Matters Related to Summary Information (Other Information)(1) Changes in Significant Subsidiaries during the Period
Not applicable.
(2) Changes in Accounting Policies and Changes in Accounting Estimates
Not applicable.

5

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

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

As of Nov. 30, 2012

AssetsCurrent assets
Cash and cash equivalents
Available-for-sale financial assets
Trade and other receivables
Inventories
Other 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 assets
Total non-current assets
Total assets

As of May 31, 2013

9,410,622
10,0001,884,308
37,417,375
22,426

12,969,596
10,0001,223,806
33,718,420
24,01348,744,733

47,945,837

3,331,447
11,695,720
43,091410,061
160,170
973,844
4,014

3,313,116
11,792,412
32,622
152,521
175,896
519,899
4,014

16,618,350

15,990,482

65,363,083

63,936,319

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

3,314,472
7,742,443
72,921
154,143

2,159,431
9,516,844
634,080
190,684

Total current liabilities

11,283,980

12,501,041

2,136,256
24,659,337
541,647
24,842
173,126

1,918,743
21,156,348
578,400
24,90921,160Non-current liabilities
Trade and other payables
Borrowings
Retirement benefits obligations
Provisions
Deferred tax liabilities
Total non-current liabilities
Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Other components of equity
Total equity
Total liabilities and equity

6

27,535,211

23,699,562

38,819,191

36,200,603

5,454,673
5,516,499
15,576,014(3,295)5,454,673
5,516,499
16,762,209
2,333

26,543,892

27,735,715

65,363,083

63,936,319

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Six months ended
Six months ended
Notes
May 31, 2012
May 31, 2013
(Dec. 1, 2011 – May 31 2012) (Dec. 1, 2012 – May 31, 2013)
Revenue
Cost of revenue

5

10,147,521
7,905,844

23,090,689
18,573,244

2,241,677
1,525,031
8,711
5,962

4,517,445
1,770,792
17,103
11,691

719,395
2,144
322,259

2,752,065
1,783
369,010

Profit before tax
Income tax expense

399,279
177,295

2,384,839
923,559

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

221,983

1,461,279

(369)

3,719

271

1,197

－

712

(97)

5,629

221,885

1,466,908

Profit attributable to:
Owners of the parent

221,983

1,461,279

Total comprehensive income attributable to:
Owners of the parent

221,885

1,466,908

4.86

31.99

－

－

Gross profit
Selling, general and administrative expenses
Other income
Other expenses
Operating profit
Finance income
Finance costs

Earnings per share attributable to owners of the parent
Basic earnings per share (yen)Diluted earnings per share (yen)

5

7
7

7

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results(3) Condensed Consolidated Statement of Changes in Equity
Six months ended May 31, 2012 (Dec. 1, 2011 – May 31, 2012)
Notes

Other
components ofequityTotal equity

14,339,150(2,369)25,307,953－

221,983－

221,983

－

－

－

(97)

(97)

－

－

221,983(97)

221,885－－(228,420)－(228,420)

5,454,673

5,516,499

14,332,713(2,466)25,301,419

Other
components ofequityTotal equity

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 Dec. 1, 2011

Dividends from surplus

6

Balance at May 31, 2012

Retainedearnings

Six months ended May 31, 2013 (Dec. 1, 2012 – May 31, 2013)
Notes

Retainedearnings

Share capital

Capital reserves

5,454,673

5,516,499

15,576,014(3,295)26,543,892

Profit for the period－－

1,461,279－

1,461,279

Other comprehensive income

－

－

－

5,629

5,629

Total comprehensive income
for the period－－

1,461,279

5,629

1,466,908－－(274,104)－(274,104)

－

－

(981)

－

(981)

5,454,673

5,516,499

16,762,209

2,333

27,735,715

Balance at Dec. 1, 2012

Dividends from surplus
Retained earnings from newly
consolidated subsidiaries
Balance at May 31, 201368

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Six months ended
Six months ended
Notes
May 31, 2012
May 31, 2013
(Dec. 1, 2011 – May 31, 2012) (Dec. 1, 2012 – May 31, 2013)
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

399,279
87,5102,384,839
86,331

19,96872,329(2,144)322,259(1,783)369,010－(7,323)

2,307(115,726)(1,051,068)(342,922)
(925)

183
597,623
3,747,571(1,365,027)
1,622

SubtotalInterest and dividends income received
Income taxes paid

(681,462)
2,144(61,779)

5,885,377
1,914(68,069)

Net cash from (used in) operating activities(741,097)

5,819,222(20,427)(102,481)(4,280)－(1,440)(152,635)(330)
216,700－

30,782(20,000)
349(70)(2,000)43(911)

Net cash from (used in) investing activities(146,909)

90,209Cash flows from financing activities
Net increase (decrease) in current borrowings
Proceeds from long-term borrowings
Repayments of non-current borrowings
Cash dividends paid
Interest expenses paid
Other, net

577,000
6,297,000(6,835,047)(227,235)(328,734)(783)(384,400)
10,485,000(11,828,303)(273,142)(361,484)(885)

Net cash from (used in) financing activities(517,799)(2,363,215)(1,405,805)
8,361,689

3,546,215
9,410,622

(369)

3,721

－

9,036

6,955,515

12,969,596

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Collection of available-for-sale financial assets
Proceeds from sales of available-for-sale financial
assetsPurchase of available-for-sale financial assets
Collection of loans receivable
Other, net

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 period9Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results(5) Notes on Going Concern Assumption
No items to report.
(6) Notes to Condensed Quarterly Consolidated Financial Statements
a. Reporting entity
TOSEI CORPORATION (Hereinafter, the “Company”) is a stock company located in Japan whose stock
is listed on the First Section of Tokyo Stock Exchange and the Mainboard of Singapore Exchange. The
Company’s condensed quarterly consolidated financial statements for the first six months of the current
fiscal year (December 1, 2012 to May 31, 2013) have been prepared in respect of the Company and its
subsidiaries (hereinafter collectively, the “Group”). The Group engages in the following six business
operations: Revitalization Business, Development Business, Rental Business, Fund and Consulting
Business, Property Management Business and Alternative Investment Business. The operations of eachbusiness segment are presented in Note “e. Segment Information”.
b. Basis of preparation(1) Compliance with IFRS
Since the Company qualifies as a “specified company” as provided in Article 1-2, paragraph 1, item 1(a) to (c) and (d) (2) of the “Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements” (Ordinance of the Ministry of Finance No. 28 of 1976), itscondensed quarterly consolidated financial statements have been prepared in accordance with
International Accounting Standard (IAS) 34 “Interim Financial Reporting” under the provision of Article
93 of the “Ordinance on Terminology, Forms and Preparation Methods of Quarterly Consolidated
Financial Statements” (Cabinet Office Ordinance No. 64 of 2007).
(2) Basis of measurement
The condensed quarterly consolidated financial statements have been prepared on the historical costbasis except for assets and liabilities measured at fair value.
(3) Presentation currency and unit
The condensed quarterly consolidated financial statements in this report are presented in Japaneseyen, the Company’s functional currency. All financial information presented in Japanese yen is rounded
down to the nearest thousand yen.
c. Significant accounting policies
The accounting policies applied to this condensed quarterly consolidated financial statements are
consistent throughout all the periods presented in the condensed quarterly consolidated financial
statements.
The significant accounting policies applied under IFRS, which has been adopted by the Group, arepresented in the notes to condensed quarterly consolidated financial statements for the first three monthsof the current fiscal year (December 1, 2012 to February 28, 2013).

10

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Resultsd. Significant accounting estimates and judgments requiring estimates
The preparation of the condensed quarterly consolidated financial statements in compliance with IFRS
requires the management of the Group to make judgments, estimates and assumptions that affect theapplication of accounting policies and the amounts of assets, liabilities, income and expenses. However,actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Changes to accounting
estimates are recognized in the period in which the estimates are changed and in future periods in which
the change affects.
e. Segment information(1) Summary of reportable segments
The Group’s reportable segments constitute the Company for which separate financial information isavailable. The Board of Directors regularly conducts deliberations to determine the allocation ofmanagement resources and to assess the financial results of each segment. 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 andConsulting 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 anddetached houses to individual customers, and apartment and office buildings to investors. In the Rental
Business, the Group rents office buildings and condominiums. The Fund and Consulting Businessmainly 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 estate collateralized loans and sells the properties acquired
through collection of debt and in-kind repayment.
As from the first quarter of the current fiscal year under review, the name of “Fund Business” waschanged to the “Fund and Consulting Business.” This amendment was made only to the name of thebusiness segment, and there was no change in the segmentation.
(2) Method for calculating revenue, profit or loss and other items by reportable segment
The methods of accounting applied in the reported business segments are consistent with theaccounting policies adopted by the Group.
The reported segment profit is calculated on an operating profit basis. Intersegment revenue ortransfers are based on actual market prices.

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Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

The Group’s revenue and profit by reportable segment are as follows:
Six months ended May 31, 2012
(December 1, 2011 – May 31, 2012)(¥ thousand)
Revitalization Development
Business
Business

Fund andConsulting
Business

RentalBusiness

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Outside customers
Intersegment revenue
Total
Segment profit

3,354,962

3,016,295

1,142,287

387,446

1,780,738

465,790－

10,147,521－

274,003

26,276

11,824

158,3512,269(472,725)－

3,354,962

3,290,299

1,168,564

399,271

1,939,089

468,060(472,725)

10,147,521

228,102254,304

612,320

81,372

82,19045,215(584,111)

719,395

Finance income/costs, net(320,115)

Profit before tax

399,279

Six months ended May 31, 2013
(December 1, 2012 – May 31, 2013)(¥ thousand)
Revitalization Development
Business
Business

Fund andConsulting
Business

RentalBusiness

Property
Alternative
Management Investment
Business
Business

Adjustment

Total

Revenue
Outside customers
Intersegment revenue
Total
Segment profit

8,745,156

10,420,929

1,179,357

963,333

1,592,712

189,201－

23,090,689－－

27,925

2,373

164,412－(194,712)－

8,745,156

10,420,929

1,207,282

965,707

1,757,124

189,201(194,712)

23,090,689

1,496,912

702,005

685,393541,255

67,68226,806(767,989)

2,752,065

Finance income/costs, net(367,226)

Profit before tax

2,384,839

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Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results

f. Dividends
Dividends paid in the six months ended May 31, 2012 and May 31, 2013 are as follows:
Six months ended May 31, 2012 (Dec. 1, 2011 – May 31, 2012)
Resolution
Ordinary General
Meeting of Shareholders
held on Feb. 24, 2012

Dividends per share(¥)

Total dividends(¥ thousand)500

228,420

Record date

Effective dateNov. 30, 2011

Feb. 27, 2012

Six months ended May 31, 2013 (Dec. 1, 2012 – May 31, 2013)
Resolution
Ordinary General
Meeting of Shareholders
held on Feb. 26, 2013

Dividends per share(¥)

Total dividends(¥ thousand)

600

274,104

Record date

Effective dateNov. 30, 2012

Feb. 27, 2013

g. Earnings per share
Six months ended
May 31 2012
(Dec. 1, 2011 – May 31, 2012)

Six months ended
May 31, 2013
(Dec. 1, 2012 – May 31, 2013)

Profit for the period attributable to owners of the parent(¥ thousand)

221,983

1,461,279

Weighted average number of ordinary shares outstanding(shares)

45,684,000

45,684,000

4.86

31.99

Basic earnings per share (¥)

Notes: 1. Basic earnings per share is calculated by dividing profit for the period attributable to owners of the parent, by theweighted 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 stock split was implemented at the beginning of the previous fiscal year ended
November 30, 2012.

(7) Notes on Significant Subsequent Events(Stock Split, Adoption of Unit Share System, and Partial Amendments of the Articles of Incorporation)

At the Board of Directors Meeting held on June 5, 2013, the Company resolved to implement a stock split
and adopt a unit share system, as well as to make partial amendments to its Articles of Incorporation.
a. Objective
In view of the “Action Plan for Consolidating Trading Units” (dated November 28, 2007) and “Decision of
the Transition Period for 100 Shares and 1,000 Shares as Trading Unit” (dated January 19, 2012),
announced by all the securities exchanges of Japan, the Company will conduct a 100-for-1 stock split of
the Company’s common shares, and concurrently, it will adopt a unit share system under which 100 sharesare treated as one unit of shares. The Company will also make partial amendments to its Articles ofIncorporation to reflect the aforementioned changes.
b. Outline of the Stock Split(1) Method of the Stock Split
Each of the Company’s common shares held by shareholders, whose names are recorded in the latest
Registry of Shareholders on June 30, 2013 as the record date, will be split into 100 shares. (Due to June30, 2013 being a holiday, the actual record date will be June 28, 2013 (Fri).)13

Tosei Corporation (8923) FY2013 Q2 Consolidated Financial Results(2) Increase in the number of Shares as a Result of the Stock Spliti. Total number of issued shares prior to the stock split:
456,840 sharesii. Increase in shares due to the subject stock split:
45,227,160 sharesiii. Total number of issued shares after the stock split:
45,684,000 shares
iv. Total number of authorized shares prior the stock split:
1,500,000 shares
v. Total number of authorized shares after the stock split:
150,000,000 shares(3) Schedule of the Stock Split
i. Date of Public Notice on the Record Date:
June 15, 2013 (Sat)ii. Record Date:
June 30, 2013 (Sun)(Due to this being a holiday, the actual record date will be June 28, 2013 (Fri).)iii. Effective Date:
July 1, 2013 (Mon)c.

Adoption of the Unit Share System(1) The Number of Shares Constituting the Newly Established Unit of Shares
The unit share system will be adopted and one unit of shares will be 100 shares.
(2) Schedule for Adoption of the Unit Share System
Effective Date: July 1, 2013 (Mon)d. Effects on the Earnings per Share
The effects of the aforementioned change on the earnings per share are presented in “g. Earnings per
share” in (6) Notes to Condensed Quarterly Consolidated Financial Statements.

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