This is an English translation of the official announcement in Japanese that was released on October 7, 2019. The translation isprepared for the readers’ convenience only. All readers are strongly recommended to refer to the original Japanese version forcomplete and accurate information. Should there be any inconsistency between the translation and the official Japanese text, thelatter shall prevail.

Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending November 30, 2019
<IFRS>
October 7, 2019
Company name: TOSEI CORPORATION
Stock listing:
Securities code number: 8923 / S2D
Representative: Seiichiro Yamaguchi, President and CEO
URL:
Contact:
Noboru Hirano, Director and CFO
Phone:
Submission of Quarterly Securities Report (Shihanki-Houkokusho):Commencement of dividend payments:
Preparation of supplementary materials for quarterly financial results:
Holding of quarterly financial results meeting:No

TSE / SGX
https://www.toseicorp.co.jp/english/+81-3-3435-2865
October 10, 2019 (scheduled)―
Yes

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

1. Consolidated Financial Results for the Nine Months Ended August 31, 2019
(December 1, 2018 – August 31, 2019)(1) Consolidated Operating Results (cumulative)
Nine months ended
August 31, 2019
Nine months ended
August 31, 2018(%)

45,742

1.0

11,61812.2

11,163

13.4

7,649

15.1

45,3087.9

10,357

14.1

9,843

15.5

6,645

15.5

Profit attributable toowners of the parent(¥ million)(%)
Nine months ended
August 31, 2019
Nine months ended
August 31, 2018

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

Revenue(¥ million)

Operating profit(¥ million)(%)

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

Basic earnings
per share

Diluted earnings
per share
(¥)

(¥)

7,649

15.1

7,812

16.9

159.44159.21

6,645

15.5

6,680

15.8

137.15136.88(2) Consolidated Financial Position
Total assets

As ofAugust 31, 2019
As ofNovember 30, 2018

Total equity

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

Equity attributable toowners of the parent(¥ million)(¥ million)

157,181

57,39457,394

36.5

138,768

52,02152,02137.5

2. Dividends
1Q-end(¥)

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

–
–

Fiscal year ended November 30, 2018
Fiscal year ending November 30, 2019
Fiscal year ending November 30, 2019
(Forecast)

0.00
0.00

–
–

Total
(¥)

30.00

30.00

37.00

37.00

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

3. Consolidated Earnings Forecasts for the Fiscal Year Ending November 30, 2019
(December 1, 2018 – November 30, 2019)(Percentages indicate year-on-year changes.)
Profit attributable to
Basic earnings
Revenue
Operating profit
Profit before tax
owners of theper share
parent(¥ million)(%) (¥ million)(%) (¥ million)(%) (¥ million)(%)(¥)
Fiscal year ending
November 30, 2019

71,51016.2

12,052

10.8

11,230

10.4

7,708

12.5

158.79Note: 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(3) Number of issued shares (ordinary shares)(a) Number of issued shares at the end of the period (including treasury shares)
As of August 31, 2019
48,557,300 shares
As of November 30, 2018
48,544,800 shares(b) Number of treasury shares at the end of the period
As of August 31, 2019
1,008,805 shares
As of November 30, 2018
105 shares(c) Average number of outstanding shares during the period (cumulative)
Nine months ended August 31, 2019
47,980,595 shares
Nine months ended August 31, 2018
48,450,511 shares* These consolidated Financial Results are not subject to quarterly review procedures by a certified public
accountant or an audit corporation.
* 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 Regarding Consolidated Earnings Forecasts” on page 4 of
the attached materials.

Contents of Attached Materials
1. Qualitative Information on Quarterly Consolidated Financial Performance......................................... 2(1) Qualitative Information Regarding Consolidated Operating Results ........................................................ 2(2) Qualitative Information Regarding Consolidated Financial Positions ...................................................... 4(3) Qualitative Information Regarding Consolidated Earnings Forecasts ...................................................... 4
2. Matters Related to Summary Information (Notes) ................................................................................... 5(1) Changes in Significant Subsidiaries during the Period ............................................................................. 5(2) Changes in Accounting Policies and Changes in Accounting Estimates .................................................. 5
3. Condensed Quarterly Consolidated Financial Statements and notes ...................................................... 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 on Condensed Quarterly Consolidated Financial Statements ....................................................... 10(7) Notes on Significant Subsequent Events................................................................................................. 121

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Qualitative Information Regarding Consolidated Operating Results
During the nine months ended August 31, 2019, the Japanese economy continued to make a moderate
recovery. This recovery trend is expected to continue, supported by stable personal consumption, despitesome indications of a slowdown in the global economy against a backdrop of trade frictions between the
United States and China.
In the real estate industry where Tosei Group operates, commercial real estate transactions for the firsthalf of 2019, from January to June, amounted to ¥2.2 trillion, roughly unchanged year on year. Sales toindividual investors remain weak as financial institutions adopt a stricter stance on lending, buttransactions for the whole of 2019 are expected to remain at the same level as the previous year, due tofavorable property acquisitions by J-REITs and others supported by a favorable financing environment(according to a survey by a private research institute).
In the Tokyo metropolitan area condominium market, the number of newly supplied units from January
to July 2019 decreased 16.9% year on year to 15,368 units, as persistently high property prices brought adecrease in the number of buyers, and each company limited new supply and concentrated on the sale ofexisting inventory. The average contract rate for the first month remained below the 70% threshold fromwhich market conditions are viewed as favorable during the same period. In the build-for-sale detachedhouse market, housing starts from January to July 2019 numbered 37,000 units, an increase of 7.0% year
on year. Despite little evidence of a spike in demand in anticipation of the consumption tax increase,favorable demand continues for detached houses, which appear reasonably priced relative to
condominiums (according to surveys by a private research institute and the Ministry of Land,
Infrastructure, Transport and Tourism).
The office leasing market of Tokyo’s five business wards has been performing favorably. The averagevacancy rate as of July 2019 remained low at 1.71% (a decrease of 0.87% year on year). The averageasking rent was ¥21,665 (an increase of ¥1,463 year on year), rising for the 67th consecutive month. Rent
is expected to continue to rise, as companies continue to experience a high level of need for increased floor
space, expansion and relocation supported by the need to secure human resources and respond to work
style reform (according to a survey by a private research institute).
In the real estate fund market, the market scale continues to expand. The total value of assets undermanagement as of July 2019 grew to ¥18.8 trillion in J-REITs (an increase of ¥1.3 trillion year on year).
Combined with the total value of assets under management in private placement funds of ¥17.7 trillion (asof December 2018), the securitization market scale expanded to ¥36.5 trillion (according to a survey by a
private research institute).
In the Tokyo business hotel market, monthly guest room occupancy rates from January to June 2019
generally exceeded the 80% threshold from which market conditions are viewed as favorable. The numberof nights stayed by foreign visitors to Tokyo in all types of accommodation increased 15% year on year.
The proportion of overseas guests was 38% (a three percentage point increase year on year), with growthin visitors from Europe, the United States and Australia in particular (according to a survey by the Japan
Tourism Agency).
Amid this operating environment, in the Revitalization Business, the Group made steady progress inselling assets such as income-generating office buildings and apartments, while in the Development
Business, the Group pushed ahead with sales of condominiums, detached houses and commercial facilities.
In addition, the Group also proceeded with the proactive acquisition of income-generating properties andland for development as future sources of income.
As a result, consolidated revenue for the nine months ended August 31, 2019 totaled ¥45,742 million(up 1.0% year on year), operating profit was ¥11,618 million (up 12.2%), profit before tax was ¥11,163
million (up 13.4%), and profit for the period was ¥7,649 million (up 15.1%).
Performance by business segment is shown below.
Reportable segment classifications have been changed effective from the first quarter of the fiscal year
ending November 30, 2019, and in the following quarterly comparisons figures for the same period of theprevious fiscal year have been recalculated according to the segment after such change.
Revitalization Business
During the nine months ended August 31, 2019, the segment sold 35 properties it had renovated,
including Seiseki C-kan Building (Tama-shi,Tokyo), Ryogoku Tosei Building Ⅰ,Ⅱ (Sumida-ku, Tokyo),2

T’s garden Ojima (Koto-ku, Tokyo), Grosvenor Square Building (Yokohama-shi, Kanagawa). In addition,
the segment sold nine units in the Restyling Business from Hilltop Yokohama Negishi (Yokohama-shi,
Kanagawa) etc.
During the nine months ended August 31, 2019, it acquired a total of 29 income-generating officebuildings and apartments for renovation and sales purposes and four land lots.
As a result, revenue in this segment was ¥22,701 million (down 6.6% year on year) and the segment
profit was ¥8,013 million (up 16.3%).
Development Business
During the nine months ended August 31, 2019, the segment focused on the sale of condominium anddetached houses for which there was firm demand. The segment sold 160 units at THE Palms Chofu
Manorgarden (Chofu-shi, Tokyo), etc. and sold 61 detached houses at such properties as THE Palms Court
Funabashi Hoten (Funabashi-shi, Chiba), THE Palms Court Mitsuike-Koen Ⅱ (Yokohama-shi, Kanagawa),
THE Palms Court Kamakura shiromeguri (Kamakura-shi, Kanagawa), etc. In addition, the segment soldone commercial facility, one newly-built apartment and six land lots.
During the nine months ended August 31, 2019, it also acquired three land lots for hotel projects, twoland lots for logistics facility projects, one land lot for commercial facility project, one land lot forapartment and land lots for 93 detached houses.
As a result, revenue in this segment was ¥12,333million (up 8.8% year on year) and the segment profit
was ¥1,640 million (up 9.1%).
Rental Business
During the nine months ended August 31, 2019, while the segment sold 23 buildings of its inventory
assets held for leasing purposes, it newly acquired 19 properties including income-generating officebuildings and apartments. In addition, the segment made efforts to lease vacancies out following
acquisitions and also focused on leasing activities for its holding non-current assets and inventory assets.
As a result, revenue in this segment was ¥4,416 million (up 1.7% year on year) and the segment profit
was ¥1,801 million (down 3.6%).
Fund and Consulting Business
During the nine months ended August 31, 2019, while ¥99,118 million was subtracted from the balanceof Assets under management mainly due to property dispositions by funds, ¥175,747 million was added tothe balance of assets under management (Note) ¥663,359 million for the end of the previous fiscal year,
due to new asset management contracts. The balance of assets under management as of August 31, 2019,was ¥739,987 million.
As a result, revenue in this segment was ¥2,024 million (up 6.9% year on year) and the segment profit
was ¥1,047 million (up 13.8%).
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business
During the nine months ended August 31, 2019, the segment made efforts to win new contracts andmaintain existing contracts. Consequently, the total number of properties under management was 647 as ofAugust 31, 2019, a decrease of 20 from August 31, 2018, with the total comprising 407 office buildings,
hotels, schools and other such properties, and 240 condominiums and apartments.
As a result, although the total number of properties under management decreased, revenue in thissegment was ¥3,433 million (up 13.9% year on year) and segment profit was ¥425 million (up 7.0%).
Hotel Business
During the nine months ended August 31, 2019, the Group worked towards increasing the average dailyrate and occupancy rate for TOSEI HOTEL COCONE Kanda, opened in December 2017, as well as
TOSEI HOTEL COCONE Ueno which newly opened in December 2018 contributed to revenue.
As a result, revenue in this segment was ¥832 million (up 104.7% year on year) and segment profit was¥122 million (down 6.2%).

3

(2) Qualitative Information Regarding Consolidated Financial Positions
1. Analysis of financial positions
As of August 31, 2019, total assets were ¥157,181 million, an increase of ¥18,412 million comparedwith November 30, 2018, while total liabilities were ¥99,786 million, an increase of ¥13,039 million.
Total assets increase is mainly due to an increase in cash and cash equivalents and an increase ininventories. Increase in liabilities were primarily due to an increase in trade and other payables and anincrease in borrowing, and due to a decrease in current income tax liabilities.
Total equity increased by ¥5,372 million to ¥57,394 million, mainly due to an increase in retained
earnings, payment of cash dividends and purchase of treasury shares.
2. Analysis of Cash Flows
Cash and cash equivalents (hereinafter “cash”) as of August 31, 2019 totaled ¥32,748 million, up¥6,227 million compared with November 30, 2018.
The cash flows for the nine months ended August 31, 2019 and factors contributing to those amounts are
as follows:
Cash Flows from Operating Activities
Net cash used in operating activities totaled ¥2,997 million (in comparison with segment net cash
provided by operating activities of ¥2,233 million in the same period of the previous fiscal year). This ismainly due to profit before tax of 11,163 million, an increase in inventories of ¥12,646 million, which
was a result of property acquisitions in the Revitalization Business and Development Business, andincome taxes paid of ¥3,928 million.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥358 million (down 79.6% year on year). This is
primarily due to purchase of investment properties of ¥326 million.
Cash Flows from Financing Activities
Net cash provided by financing activities totaled ¥9,585 million (up 222.4% year on year). This
mainly reflects ¥32,199 million in proceeds from non-current borrowings, despite ¥20,003 million in therepayments of non-current borrowings, ¥1,454 million in cash dividends paid and ¥999 million in thepurchase of treasury shares.
(3) Qualitative Information Regarding Consolidated Earnings Forecasts
The business results during the nine months ended August1, 2019 basically remained stable as planned
and there is no change on the full-year consolidated earnings forecasts, announced on January 10, 2019.
The forward-looking statements contained in these materials, including forecasts of the future
performance, are based on the information available to the Company as of the date of announcement andon certain assumptions deemed to be reasonable by the Company. Actual performance and other results
may differ from these forecasts due to various factors.

4

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, 2019.
Standard

Name of standard

Overview of new establishment and amendment

IFRS 9Financial Instruments

Replacement of IAS 39 with IFRS 9 regarding classification,measurement and impairment of financial assets, classificationand measurement of financial liabilities, and hedge accounting

IFRS 15

Revenue from Contracts
with Customers

Accounting for and disclosure of revenue recognition forcontracts with customers

Clarification of requirements for transfers to, or from,investment properties
The above standards have no material impact on the condensed quarterly consolidated financial statements.
IAS 40Investment properties(1) IFRS 9 Financial Instruments
1) Classification and measurement of financial instruments
Regarding financial instruments, the Group classified as “Financial instruments measured atamortized cost,” “Financial instruments measured at fair value through other comprehensive income”
and “Financial instruments measured at fair value through profit or loss.”
Equity instruments previously classified as “Available-for-sale financial assets” are now classified
into “Financial assets measured at fair value through other comprehensive income” and “Financial
assets measured at fair value through profit or loss.” “Available-for-sale financial assets” have been
reclassified to “Other financial assets” in the Condensed Consolidated Statement of Financial Position.
In accordance with transition provisions, the Group has not applied IFRS 9 retrospectively toconsolidated financial statements for the previous fiscal year.
2) Impairment loss of financial assets
The method of recognizing impairment on financial assets measured at amortized cost has beenchanged to recognize a loss allowance for expected credit losses on these assets.
(2) IFRS 15 Revenue from Contracts with Customers
With the application of IFRS 15, revenue from contracts with customers is recognized based on thefive-step approach shown below. In applying IFRS 15, the Group applies the transition provisions andrecognizes the cumulative effect of the standard at the date of initial application. For this reason, theGroup has not applied IFRS 15 retrospectively to consolidated financial statements for each priorreporting period.
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract(s)Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
53. Condensed Quarterly Consolidated Financial Statements and notes(1) Condensed Consolidated Statement of Financial Position(¥ thousand)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
Other financial assets
Trade and other receivables
Deferred tax assets
Other non-current assets

As of November 30, 2018

As of August 31, 2019

26,520,569
3,090,237
62,457,864
30,49532,748,094
2,845,818
75,303,947
12,09892,099,167

110,909,959

8,785,869
33,752,847
87,9662,244,831
865,235
903,707
28,914

8,688,490
33,489,327
80,9602,436,079
1,163,227
409,004
4,014

46,669,371

46,271,103

138,768,538

157,181,063

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

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

5,428,705
9,682,184
1,248,216
307,947

Total current liabilities

Total non-current assets
Total assets

14,423,341

16,667,054

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

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

3,735,813
78,098,270
515,169
6,933
763,102

Total non-current liabilities

72,323,414

83,119,289

86,746,756

99,786,343

6,554,139
6,544,924
38,843,309(128)
79,5376,560,502
6,555,553
45,036,860(1,000,037)
241,840

52,021,782

57,394,719

Total Liabilities
EquityShare capital
Capital reserves
Retained earnings
Treasury shares
Other components of equity
Total equity attributable to owners of parent
Total equity
Total liabilities and equity

6

52,021,782

57,394,719

138,768,538

157,181,063

(2) Condensed Consolidated Statement of Comprehensive Income(¥ thousand)Nine months ended
August 31, 2018

Nine months ended
August 31, 2019

Revenue

45,308,339

45,742,345

Cost of revenue

29,312,301

28,123,963

Gross profit

15,996,038

17,618,381

Selling, general and administrative expenses

5,683,847

6,050,454

Other income

136,145

62,418Other expenses

90,523

12,323Operating profit

10,357,812

11,618,021

Finance income

84,503

101,810

Finance costs

599,155

556,595

Profit before tax

9,843,160

11,163,236

Income tax expense

3,197,951

3,513,343

Profit for the period

6,645,209

7,649,892－

199,526－

199,526(5,552)(16,916)

37,883－

Net change in fair values of cash flow hedges

2,519(20,307)

Subtotal

34,850(37,223)

Other comprehensive income for the period, net aftertax

34,850162,3036,680,059

7,812,195

6,645,209

7,649,892

6,680,059

7,812,195

Basic earnings per share (¥)

137.15159.44

Diluted earnings per share (¥)

136.88159.21Other comprehensive income
Other comprehensive income Items that will not bereclassified to profit or loss
Net change in financial assets measured at fairvalues through other comprehensive income
Subtotal
Other comprehensive income Items that may bereclassified to profit or loss
Exchange differences on translation of foreign
operations
Net change in fair values of available-for-salefinancial assets

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

7

(3) Condensed Consolidated Statement of Changes in Equity
Nine months ended August 31, 2018 (December 1, 2017 – August 31, 2018)(¥ thousand)

Balance at December
1, 2017

SharecapitalCapitalreserves

Retainedearnings

Treasuryshares6,421,392

6,464,240

33,209,210－

Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Amount oftransactions withownersIssuance of newsharesPurchase of treasury
shares64,024－－

127,657

72,8696,645,209－

46,158,867

6,645,209

6,645,209

34,85034,85034,85034,8506,680,059

6,680,059

200,526

200,526

(61)

(61)

(61)
(1,207,100)

Share-based payment(1,207,100) (1,207,100)

4,935
6,549,049

6,542,045

38,647,319

Total
equity46,158,867

6,,645,209

Dividends of surplus

Balance at August 31,
2018

Total
Other
equitycomponents attributableof equity
to ownersof parent(61)

98,874

4,935

4,935

51,837,227

51,837,227

Nine months ended August 31, 2019 (December 1, 2018 – August 31, 2019)(¥ thousand)

Balance at December
1, 2018

SharecapitalCapitalreserves

Retainedearnings

Treasuryshares6,554,139

6,544,924

38,843,309(128)

Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Amount oftransactions withownersIssuance of newsharesPurchase of treasury
shares

79,537

－

－

6,362

3,443

7,649,892(2,711)－52,021,782

7,649,892

7,649,892

162,303

162,303

162,303

162,3037,812,195

7,812,195

9,806

9,806

(999,909)(1,002,620) (1,002,620)(1,456,340)

Share-based payment(1,456,340) (1,456,340)

9,896
6,560,502

6,555,553

45,036,860 (1,000,037)

8

Total
equity52,021,782

7,649,892

Dividends of surplus

Balance at August 31,
2019

Total
Other
equitycomponents attributableof equity
to ownersof parent

241,840

9,896

9,896

57,394,719

57,394,719

(4) Condensed Consolidated Statement of Cash Flows(¥ thousand)Nine months ended
August 31, 2018

Nine months ended
August 31, 2019

9,843,160
437,355

11,163,236
652,310(216,943)(255,633)(84,503)599,155
608(318,168)(5,939,084)(54,944)(75,924)(101,810)
556,595－
279,133(12,646,359)
1,178,475
2,740

SubtotalInterest and dividend income received
Income taxes paid

4,190,710
84,503(2,041,238)

828,689
101,810(3,928,350)

Net cash from (used in) operating activities

2,233,975(2,997,850)－(54,035)(185,580)(25,368)
(280)
655
3,329
－
57

20,000(46,969)(326,969)(15,961)(51,920)
6,914
151,509(126,730)
11,351(1,502,160)

－

3,715

20,413

Cash flows from operating activities
Profit before tax
Depreciation expense
Increase (decrease) in provisions and retirement
benefits obligations
Interest and dividend income
Interest expenses
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
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Purchase of investment properties
Purchase of intangible assets
Purchase of other financial assets
Collection of other financial assets
Proceeds from sales of other financial assets
Payments of loans receivableCollection of loans receivable
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash from (used in) investing activities(1,759,666)(358,360)

Cash flows from financing activities
Net increase (decrease) in current borrowings
Proceeds from non-current borrowings
Repayments of non-current borrowings
Proceeds from issuance of new shares
Cash dividends paid
Interest expenses paid
Purchase of treasury shares
Other, net

169,500
26,401,950(21,873,293)
200,140(1,206,624)(715,660)(61)(2,741)

557,000
32,199,845(20,003,632)
9,703(1,454,872)(720,015)(999,909)(2,841)

Net cash from (used in) financing activities

2,973,209

9,585,277

3,447,518
23,750,239

6,229,066
26,520,569(568)(1,542)

27,197,189

32,748,094

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
Cash and cash equivalents at end of period9(5) Notes on Going Concern Assumption
No item to report.
(6) Notes on 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 six business segments and conducts business activities accordingly;“Revitalization Business”, “Development Business”, “Rental Business”, “Fund and Consulting
Business”, “Property Management Business” and “Hotel Business”. In the Revitalization Business, theGroup acquires the properties whose asset values have declined, renovates, and resells them. In theDevelopment Business, the Group sells condominium units and detached houses to individual customers
as well as apartment and office buildings to investors. In the Rental Business, the Group leases officebuildings and apartments. The Fund and Consulting Business mainly provides asset management
services for the properties placed in real estate funds. The Property Management Business provides
comprehensive property management services. The Hotel Business provides mainly hotel operating
services.
The Tosei Group has made changes to its reportable segments, increasing the number of suchsegments from five up through the end of the previous fiscal year to six as of the first quarter of the
fiscal year ending November 30, 2019. Accordingly, the reportable segments are now: the Revitalization
Business, Development Business, Rental Business, Fund and Consulting Business, Property
Management Business and Hotel Business.
As the quantitative importance of "Hotel Business", which was included in " Rental Business " and"Others", increased, it is now classified as a separate reportable segment.
Segment information for the Nine months ended August 31, 2018 has been prepared in accordancewith the new reportable segment classifications.
The Group’s revenue and profit/loss by reportable segment are as follows:
Nine months ended August 31, 2018
(December 1, 2017 – August 31, 2018)(¥ thousand)Reportable Segments
Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Hotel
Business

Adjustment

Total

Revenue
Revenue from externalcustomers

24,312,328

11,339,368

4,340,951

1,,893,143

3,015,936

406,611－45,308,339

Intersegment revenue－－

32,98645,306

900,434

950(979,,677)－

24,312,328

11,339,368

4,373,938

1,938,449

3,916,371

407,561(979,677)

45,308,339

6,890,049

1,503,758

1,868,632

920,446

397,357

131,010(1,353,442)

10,357,812

Total
Segment profit
Finance income/costs, net(514,652)

Profit before tax

9,843,160

10

Nine months ended August 31, 2019
(December 1, 2018 – August 31, 2019)(¥ thousand)Reportable Segments
Total

Revitalization Development
Business
Business

RentalBusiness

Fund andConsulting
Business

Property
Management
Business

Hotel
Business

Adjustment

Revenue from externalcustomers

22,701,567

12,333,730

4,416,001

2,024,646

3,433,982

832,417－45,742,345

Intersegment revenue－－

35,952

15,104

929,671

2,780(983,508)－

22,701,567

12,333,730

4,451,954

2,039,750

4,363,654

835,197(983,508)

45,742,345

8,013,585

1,640,350

1,801,039

1,047,662

425,146

122,827(1,432,590)

11,618,021

Revenue

Total
Segment profit
Finance income/costs, net(454,785)

Profit before tax

11,163,236

2. Dividends
Dividends paid in the nine months ended August 31, 2018 and August 31, 2019 are as follows:
Nine months ended August 31, 2018
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2018

Dividends per share(¥)

Total dividends(¥ thousand)25

1,207,100

Record date

Effective dateNovember 30, 2017

February 28, 2018

Nine months ended August 31, 2019
Resolution
Ordinary General Meetingof Shareholders held on
February 27, 2019

Dividends per share(¥)

Total dividends(¥ thousand)30

1,456,340

11

Record date

Effective dateNovember 30, 2018

February 28, 2019

3. Earnings per Share
Nine months ended
August 31, 2018
Profit attributable to owners of the parent (¥ thousand)Nine months ended
August 31, 2019

6,645,209

7,649,892

6,645,209

7,649,892

48,450,511

47,980,595

98,062

69,692

48,548,573

48,050,287

Basic earnings per share (¥)

137.15159.44

Diluted net income per share (¥)

136.88159.21

Net income used to figure diluted net income per share(¥ thousand)
Weighted average number of outstanding ordinary shares(shares)
The number of increased ordinary shares used to figure
diluted earnings per share (shares)
The weighted-average number of ordinary shares used tofigure diluted earnings per share (shares)(7) Notes on Significant Subsequent Events
No item to report.

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