Financial Summary
for the 19th Fiscal Period(from July 1, 2012 to December 31, 2012)

Name
Representative
Stock Listing
Securities CodeURL
Contact

:
:
:
:
:
:

Invincible Investment Corporation
Naoki Shibatsuji, Executive Director
Tokyo Stock Exchange8963
http://www.invincible-inv.co.jp/eng/
Consonant Investment Management Co., Ltd.
(Asset Manager of INV)
Michiko Ishibachi,Manager in charge of Investor Relations
Tel. +81-3-5411-2731

Start date fordividend distribution: March 22, 2013

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

1. Performance for the 19th Fiscal Period Ended December 31, 2012
(from July 1, 2012 to December 31, 2012)
1) Business Results(Percentages in brackets represent change from previous fiscal period)

Operating Revenues
mn JPY

Operating Income%

mn JPY

Ordinary Income%

mn JPY%

19th Fiscal Period

2,476(13.8)

1,084(21.3)

114(-8.9)

18th Fiscal Period

2,176(-1.2)

894

(-)

125

(-)

Net Income
per Unit

Net Income /NAV*

Net Income%%

114 (-10.9)
128

Ordinary Income /Total Assets

JPY

mn JPY(-)

Ordinary Income /Operating Revenues%%

19th Fiscal Period

85

0.3

0.2

4.6

18th Fiscal Period

95

0.4

0.2

5.8

*NAV = Total net assets(Note) “Net Income per Unit” is rounded to nearest yen.

2) Cash Distributions
Distribution
per Unit

Distribution
Amount(Excluding
exceeding profit
distribution per unit)
JPY

ExceedingProfitDistribution
per Unit

mn JPYJPY

19th Fiscal Period

117

157

0

18th Fiscal Period

200

269

0

ExceedingProfitDistribution
AmountDividend
Payout Ratio

mn JPYDistribution /
NAV

%

%

0

137.6

0.5

0

210.5

0.8

th

(Note) INV reversed JPY 141 million out of surplus for the distribution of the 18 fiscal period ended June 30, 2012.
As for the distribution for the 19th fiscal period ended December 31, 2012, INV will reverse JPY 43 million out of
surplus and will distribute JPY 117 per unit.

3) Financial Position
Total Assets

NAV /Total Assets

NAV

mn JPY

mn JPYNAV per Unit%

JPY

19th Fiscal Period

80,20032,67040.7

24,23118th Fiscal Period

67,69832,82648.5

24,346(Note) “Net Assets per Unit” are rounded to nearest yen.

2

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

4) Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investment Activities

mn JPY

Cash Flows from
Financing Activities

mn JPY

Closing Balance of Cashand Cash Equivalents

mn JPY

mn JPY

19th Fiscal Period

878-14,412

11,855

3,531

18th Fiscal Period

462

-42

-412

5,210

2. Forecast results for the 20th Fiscal Period Ending June 30, 2013
(from January 1, 2013 to June 30, 2013)(Percentages in brackets represent change from previous fiscal period)
Operating
Revenues

20th Fiscal Period

Operating
Income20th Fiscal Period(Reference)

Ordinary
Incomemn JPY%

mn JPY%

2,761(11.5)

1,183

(9.1)

Reversal of
SurplusDistribution
per Unit

mn JPYNet Income%

mn JPY280 (143.9)

Distribution
Resource

mn JPY%

mn JPY

%

-

(-)

269

(70.9)

Estimated net income per unit for the 20th fiscal period: JPY 207

3(Excluding
exceeding
profit distribution
per unit)%
JPY

280 (145.2)

200

ExceedingProfitDistribution
per Unit
JPY

0Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

A. Business Outlook
Based on increased profitability associated with the acquisition of 24 properties, financial results
for the fiscal period ending June 2013 are expected to be as follows: JPY 2,761 million of operating
revenues, JPY 280 million of ordinary income, JPY 280 million of net income and distribution at
approximately the same level as those of the past distributions.
20th fiscal period(January 1, 2013 to June 30, 2013)
Operating Revenues

JPY 2,761 million

Ordinary Income

JPY 280 million

Net Income

JPY 280 million

Distribution per Unit

JPY 200

Exceeding Profit Distribution per Unit

JPY 0Operating revenues for the 20th fiscal period are expected to increase by JPY 284 million to JPY
2,761 million, compared to JPY 2,476 million for the 19th fiscal period. This is mainly attributable
to the fact that revenues from the 24 properties (rent, common service expenses, parking usage
fees and facility fees) contributed only to the revenues for 95 days out of the 184 days in the 19th
fiscal period, while such revenues will contribute to the revenues throughout the full 20th fiscal
period. Another factor to which the above expectation is attributable is that, since the 20th fiscal
period includes February and March, which are the busy period for the rental market, othermiscellaneous revenues including revenues from key money are expected to increase.
With respect to operating expenses, INV continues intense efforts to reduce costs andadministration related expenses for INV are expected to decrease by approximately JPY 12 million
in total, in various fees (administrative service fees and expert fees), including asset management
fees, compared to the 19th fiscal period. Also, because of the JPY 187 million increase of various
asset related expenses due to the acquisition of 24 properties and other expenses affected byseasonal factors, expenses related to assets are expected to increase by JPY 185 million to JPY
1,578 million, compared to JPY 1,392 million for the 19th fiscal period.
Also, non-operating expenses are expected to decrease by JPY 110 million in finance related
fees compared to the 19th fiscal period. This is attributable to the facts that the expenses related
to the new loan and refinancing during the 19th fiscal period are temporary, and such expenses will
not be incurred in the 20th fiscal period. In addition, the increase of borrowings through such newloan and refinancing will cause interest expenses to increase by JPY 39 million from JPY 763
million for the 19th fiscal period to JPY 803 million. As a result of the above, non-operating
expenses are expected to decrease by JPY 70 million from JPY 972 million for the 19th fiscal
period to JPY 902 million for the 20th fiscal period.
In comprehensive consideration of the operating results of existing properties (78 properties intotal) from the time of acquisition of 24 properties to the present, INV’s financial conditions and the4Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Periodliquidity of its cash on hand, as well as the level of balance of surplus based on the gains on
negative goodwill accrued upon the merger, pursuant to the policy to maintain the distribution level,
and also retain some net income as a reserve for future distributions in order to increase thestability of maintaining the distribution at the same level as those in the past in the mid andlong-term, as announced in the previous forecast on September 26, 2012, INV has determined thatits distribution per unit will be JPY 200, the same amount as the previous forecast, out of JPY 207
of the forecasted net income per unit for the fiscal period ending June 2013. INV will retain theentire remaining amount as a reserve for future distributions from the mid-term view.
Furthermore, JPY 200 of expected distribution per unit for the 20th fiscal period will not exceed
90% of the distributable income to which the amortized amount of gain on negative goodwill (JPY
59 million)resulting from the merger will be added. Therefore, this distribution amount does notsatisfy the dividend payment requirement, in which investment corporations are required to
distribute at least more than 90% of their distributable income, and INV is not expected to satisfy
the conduit requirements for the fiscal period ending June 2013. However, even in such case, nocorporation tax will be levied since INV has a loss carried forward for tax purposes totaling JPY
20,561 million (as of December 31, 2012) due to the sale of assets in the past.

For the pre-conditions and assumptions underlying the business outlook for the fiscal period
ending June 2013, please see “Pre-Conditions and Assumptions Underlying Forecasted
Performance for 20th Fiscal Period (from January 1, 2013 to June 30, 2013).

(Disclaimer of Forward-Looking Statements)
Forward-looking statements, such as the forecast results described herein, are based on theinformation that we currently have and certain assumptions that we consider reasonable. The results
may significantly vary due to changes in the business, such as the occurrence of sales gains andlosses in association with the disposals of properties, repayment of borrowings, decrease of the rent
received, that are not forecasted as of today. Also, this forecast is not a guarantee of the distribution
amount.

5Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period<Pre-Conditions and Assumptions Underlying Forecasted Performance for 20th Fiscal Period(from January 1, 2013 to June 30, 2013)>
Item

Assumptions

Fiscal period

From January 1, 2013 to June 30, 2013 (181 days)

Assets under management

INV assumes the number of properties is 78 properties, which is based on the number ofproperties held by INV as of today.
Actual number of properties may vary due to the future acquisitions and/or disposals of existing
properties, if any.

Units outstanding

INV assumes the number of units issued and outstanding is 1,348,292 units, which is based on thenumber of units issued by INV as of today. Also, INV assumes there will be no additional issue ofinvestment units thereafter through to the end of the fiscal period ending June 2013.

Interest-bearing liabilities

The repayments of JPY 131 million are scheduled to be made by two scheduled repayments
during the fiscal period ending June 2013 and INV assumes there will be no new financing or no
additional repayments of the existing borrowings other than the scheduled repayments.
INV assumes it will incur operating revenues of JPY 2,761 million.
The breakdown is as follows:

Operating revenues• Rental revenues

JPY 2,761 million

Rental revenues are calculated based on historical data and taking into account tenant trends,
property competitiveness, market environment and other factors. In addition, INV assumes there
are no delinquencies or non-payment of rent by tenants.
INV assumes it will incur property related expenses of JPY 1,339 million.
The breakdown is as follows:• Facility management fees(of which, repair costs)• Taxes and other public charges• Insurance expenses• Other expenses• Depreciation expenses

Operating expenses

JPY 471 million(JPY 50 million)
JPY 155 million
JPY 5 million
JPY 168 million
JPY 537 million

Other than depreciation expenses, the property related expenses are calculated based on
historical data and reflect elements that may cause fluctuations. Of the assessed and decidedamount of real property tax, city planning tax, depreciable property tax, etc. applicable to assets
under management, INV records as expenses the tax amount that it expects to pay during the
fiscal periods.
Furthermore, concerning assets newly acquired during the year in which the fiscal periods falls, thetax amount is calculated on a pro-rata basis with the prior titleholder, and this adjusted amount isreimbursed at the time of acquisition. INV, however, capitalizes an amount equivalent to theadjusted amount reimbursed as part of the acquisition cost, and thus does not record the amountas expenses.
Repair costs may vary due to the changes in the situation etc., though they are estimated basedon the repair plans created by the asset manager.
In addition, other than the property related expenses, INV assumes it will incur operating expensesof JPY 239 million.
INV assumes it will incur non-operating expenses of JPY 902 million.
The breakdown is as follows:

Non-operating expenses• Interest expenses• Finance related costs• Other non-operating expenses
Total

6

JPY 803 million
JPY 98 million
JPY 1 million
JPY 902 million

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

Item

Assumptions

Distribution per unit

The distribution per unit is calculated in accordance with the cash distribution policy set forth in
INV’s Articles of Incorporation.
INV assumes that JPY 269 million in total (the distribution per unit : JPY 200) will be distributed forthe fiscal period ending June 2013 by utilizing net income of the fiscal period ending June 2013 as
distribution resource.
The distribution per unit may vary due to various factors, such as fluctuations in rental revenues
resulting from changes in the assets under management, changes in the tenants, etc. andincurrence of unexpected repairs.

Exceeding profit distribution perunit

INV currently does not expect to make distributions exceeding profits (exceeding profit distribution
per unit).

Other

INV assumes there will be no amendments to laws and ordinances, the taxation system,
accounting standards and other regulations that will affect the foregoing forecasts.
In addition, INV assumes there will be no unforeseen material changes in the environment,
including general economic trends and real estate market conditions.

7

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

3. Financial Statements
1) Balance Sheet of INV as of December 31, 2012
(Consistent with Japanese GAAP)

Items

18th Fiscal Period

19th Fiscal Period( As of Jun. 30, 2012)
Ths JPY%( As of Dec. 31, 2012)
Ths JPY%

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Deposits paid
Prepaid expenses
Consumption tax receivable
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
Land
Buildings in trust
Equipment in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Land in trust
Total property, plant and equipment, at cost
Intangible assets
OthersTotal intangible assets
Investment and other assets
Guarantee deposits
Long-term prepaid expenses
OthersTotal investment and other assets
Total non-current assets
Total assets

Items

3,080,041
2,130,105
19,103
208
696,804
164,645
23,311-831
6,113,388

Ths JPY%

5.7-2,334,611
656,375-733
456-6,30843,411
92,13533-1,549,240

-25.3

22.9

9.0

745,429
2,786,480
18,370664
690,495
208,056
115,447-797
4,564,147

2,544,613
29,5392,726
2,713,620
21,488,840
3,209,656
175,265
61,30531,056,639
61,282,207

90.5

2,517,007
26,5662,587
2,713,620
27,882,085
5,328,309
220,693
69,44336,582,527
75,342,842

93.9-27,605-2,973-139
6,393,245
2,118,653
45,4288,138
5,525,888
14,060,634

621
621

0.0

244
244

0.0

-377
-377

-60.7

0.4
91.0
100.0

10,000253,406
29,381
292,787
75,635,874
80,200,022

0.4
94.3
100.0

-10,576694-9,881
14,050,376
12,501,135

-3.3
22.8
18.5

10,000263,982
28,686
302,669
61,585,498
67,698,887

18th Fiscal Period

19th Fiscal Period( As of Jun. 30, 2012)
Ths JPY%( As of Dec. 31, 2012)
Ths JPY%

Liabilities
Current liabilities
Accounts payable
Current portion of long-term debts
Accrued liabilities
Accrued expenses
Accrued income taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Long-term debts
Long-term debts in trust
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Long-term accrued expenses
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

76,887
262,000
6,062
371,854506
288,1623,307
1,008,782
20,341,500
11,000,000
925,696
183,579
1,413,153
33,863,929
34,872,711

8

Changes

1.5

133,791
262,000
18,748362,514503
378,770
5,268
1,161,597

50.0
51.5

22,760,500
20,960,000
1,059,315
183,579
1,404,333
46,367,728
47,529,325

ChangesThs JPY%

1.4

56,904
12,685-9,340-390,607
1,960
152,815

15.1

57.8
59.3

2,419,000
9,960,000
133,618-8,82012,503,798
12,656,613

36.9
36.3

26,134,396

26,134,396-

6,264,432
427,346
6,691,778
32,826,175
32,826,175
67,698,887

6,264,432
271,868
6,536,300
32,670,697
32,670,697
80,200,022-155,478-155,478-155,478-155,478
12,501,135

9.9
48.5
48.5
100.0

8.1
40.7
40.7
100.0

-2.3
-0.5
-0.5
18.5

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

2) Statement of Income for the 6 months Ended December 31, 2012
(Consistent with Japanese GAAP)
18th Fiscal Period

19th Fiscal Period

2012/1/12012/06/30
Ths JPY%
2,176,839
100.0
2,176,839
1,282,766
58.9
1,024,277
411,685
1,564,247
4,800
150,000
3,328
25,273646
1,137
73,303894,072
41.1
2,390
0.1
515
1,875
770,48235.4
695,689
73,562
1,230
125,9815.8
125,981
5.8-2,194
128,175
5.9
299,171427,346

2012/7/1
2012/12/31
Ths JPY%
2,476,430
100.0
2,476,430
1,392,258
56.2
1,156,672
480,6221,800,380
4,800
130,067
3,351
24,781797
71,786
1,084,171
43.8
3,391
0.1
487
2,904
972,77839.3
763,201
208,347
1,230
114,784
4.6
114,784
4.6
604
114,179
4.6
157,688271,868

Items

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)-(2)+(3)Directors' remuneration
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt expenses
Other operating expenses
Operating income / loss
Non-operating revenues
Interest revenues
Miscellaneous income
Non-operating expenses
Interest expenses
Finance related costs
Public listing related costs
Ordinary income / loss
Income / loss before income taxes
Corporate tax, etc.
Net income / loss
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the period

9

ChangesThs JPY299,590299,590
109,491
132,395
68,937
236,132-19,93223-491
150-1,137-1,516
190,099
1,000
-28
1,028
202,296
67,511
134,784-11,196-11,196
2,798-13,995-141,483-155,478

%
13.8
8.5

21.3
41.9

26.3

-8.9
-8.9
-10.9

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

3) Statement of Cash Flows for the 6 months Ended December 31, 2012
(Consistent with Japanese GAAP)

Items

Cash flows from operating activities
Net income (loss) before taxes
Depreciation expenses
Public listing related costs
Finance related costs
Amortization of tenant leasehold and security deposits in trust
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease due to sale of tangible assets in trust
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of loss due to disaster
Payment of corporate taxes, etc.
Cash flows from operating activities
Cash flows from investment activities
Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
OthersCash flows from investment activities
Cash flows from financing activities
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from long-term debt in trust
Public listing related costs
Finance related costs
Payment of distributions
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Closing balance of cash and cash equivalents

10

18th Fiscal Period

19th Fiscal Period

2012/1/1
2012/6/30
Ths JPY

2012/7/31
2012/12/31
Ths JPY

125,981
412,1101,230
73,562(927)(515)
695,689
519(902)(49,446)(23,311)(59,401)(38,383)
(344)
(570)
6,598
(2,315)15,097
1,154,670
493(688,459)(3,667)(595)
462,441

114,784
481,000
1,230
208,347(1,354)(487)
763,201
(33)
733
6,308
(92,135)
62,798
13,696(56,387)
90,607
1,960(30,606)(158,819)
1,404,845
487(698,312)(608)
706,411(38,277)(49,274)
45,436(694)(42,810)(14,547,093)(39,366)
174,339(694)(14,412,815)(131,000)(1,230)(10,452)(270,167)(412,849)
6,780
5,203,366
5,210,146

13,400,000(10,981,000)
9,960,000(1,230)(79,405)(270,196)
12,028,167(1,678,236)
5,210,146
3,531,910

Invincible Investment Corporation (8963)
Financial Summary for the 19th Fiscal Period

For further information:
Please contact
Planning & Finance Department at Consonant Investment Management, Co. Ltd.
Tel. +81-3-5411-2733
Disclaimer
This document contains translations of selected information provided in the Japanese language Summary Financial
Report (Kessan-Tanshin) for the 19th Fiscal Period Ended December 30, 2012 (from July 1, 2012 to December 30, 2012) of
Invincible Investment Corporation (hereinafter, “INV”) dated February 27, 2013 and prepared under the timely disclosure
requirements of the Tokyo Stock Exchange.
This document is for informational purposes only and not for solicitation to invest in, or recommendation to buy, certain
products of INV. You should consult with securities firms if you intend to purchase investment units of INV.
This English language document is provided solely for the convenience of and reference by non-Japanese investors andneither corresponds to the original Japanese documents nor is intended to constitute or form a part of any disclosure
document required by the Financial Instruments and Exchange Act of Japan or regulations thereunder, the Investment
Trust and Investment Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial Instruments
Exchanges or other related rules and regulations. The Japanese language Summary Financial Report should always bereferred to as the original of this document.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to theconcepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial
statements, if there exist any discrepancies in the meaning or interpretation thereof between the original Japanese
documents and English statements contained herein, the original Japanese documents shall always prevail.
None of INV, Consonant Investment Management Co., Ltd. (hereinafter, “CSNT”) or any of their respective directors,
officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for the completenessappropriateness or accuracy of English translations or the selection of the portions of any documents translated into English.
No person has been authorized to give any information or make any representations other than as contained in thisdocument in relation to the matters set out in this document, and if given or made, such information or representation mustnot be relied upon as having been authorized by INV, CSNT or any of their respective directors, officers, employees,
partners, shareholders, agents or affiliates.
The financial statements are a translation of the audited financial statements of INV, that were prepared in accordance withgenerally accepted accounting principles in Japan (Japanese GAAP) which may materially differ in certain respects fromgenerally accepted accounting principles and practices in other jurisdictions. In preparing the financial statements, certain
reclassifications and modifications have been made to the financial statements issued domestically in order to present themin a format that is more familiar to readers outside Japan.
Many provisions of this document contain forward-looking statements and information. We base these statements on ourbeliefs as well as our assumptions in consideration of currently available information; therefore, there may be currently
known and unknown risks and uncertainties in such statements. The contents of forward-looking statements are subject tosuch risks, uncertainties, assumptions and other factors.
These forward-looking statements are not a guarantee of future performance, and there are certain important factors that
could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking
statements, including without limitation: the general economy, market conditions, financial markets including theperformance of the real market, interest rate fluctuations, competition with our properties, and the impact of changing
regulations or taxation.
INV does not intend, and is under no obligation, to update any particular information included in this document. The
forward-looking statements contained in this document speak only as of the date of release, February 27, 2013, and INV
does not undertake to revise those forward-looking statements to reflect events occurring after the date of this release.

11