Financial Results for the Fiscal Year Ended November 30, 2018
Tosei
Corporation
トーセイ株式会社
東京証券取引所第一部 証券コード：8923

Tokyo Stock Exchange, First Section Code : 8923
シンガポール証券取引所
証券コード：S2D
Singapore
Exchange, Mainboard
Code : S2D

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

I. Overview of Results for the Year Ended November 30, 2018

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

2

Operating Performance of FY2018 - Highlights◆ Revenue ¥61.5 billion (up 6.6% yr/yr), Profit before tax ¥10.1 billion (up 12.4%), Profit for the year ¥6.8 billion (up 11.3% yr/yr)◆ Revenue and profit for the year reached a record-high◆ Achieved eight consecutive years of profit growth(¥million)（百万円）

70,00060,00050,000【 Revenue 】

4Q
3Q
2Q
1Q

10,000

9,279

8,000

456
1,148

6,000

3,548

16,234

15,776

10,67940,00015,61810,00014,21017,128

11,682

13,527

14,677FY2016FY20172,000

18,310'17/11期'18/11期

527

327
3,331

2,664

3,326
2,198

2,361

4,000

4,127

3,828

4,341

FY2016FY2017FY2018

2,000

3,914

3,658

4,150

'16/11期'17/11期

FY2016'17/11期

FY2017'18/11期'16/11期'18/11期＜ Segment Operating Profit＞

FY2018【Profit for the Year】(¥million)（百万円）

70,00057,75460,00049,818
4,005
2,329
5,324

341

4,637
2,802
6,237
5,197

61,543
0

5,232
3,038
6,178

358
Other
その他

13,261

12,000Property
Management 10,000
不動産管理事業
Fundand Consulting
8,000
ﾌｧﾝﾄﾞ・ｺﾝｻﾙﾃｨﾝｸﾞ
Rental
不動産賃貸事業40,26834,79325,809Development
不動産開発事業

6,000

9,279
141
951
2,389

9,833

453
1,616

278
1,273

2,534

2,581

-1,388-1,319(internal transaction)(internal transaction)(internal transaction)'17/11期
FY2017'18/11期
FY20187,845-2,000

6,770

6,000

(internal transaction)'17/11期
FY2016

5,547
168
636
2,132

14.0%

6,852

6,155
399

207

12%

2,192

1,823
1,431

1,604

7%

2,000

4,001
(others)

14.1%

ROE

4,000

3,674

-17
ｃ -1,8600-1,131

14.4%
8,000

1,487

4,000

Revitalization
不動産流動化事業 2,0000'17/11期
FY2016

10,875(¥million)
（百万円）

事業

13,13820,000-10,000

2,545

247
963

9,049

0

FY2018＜ Segment Revenue＞

10,000

2,839

4,000

(¥million)（百万円）

30,0008,450

0'16/11期

40,000

3,470

8,000

753

2,413

0

50,00010,0006,000

30,00020,000【Profit Before Tax】
10,171

517

9,833

12,787

8,484(¥million)（百万円）

10,87561,54357,754

49,818【Operating Profit】(¥million)
（百万円）

2,611

2,500

2,847

FY2016FY2017FY2018(development)-45 (others)-408 -74-1,941-1,661 (others)ｃ(internal transaction)'17/11期
FY2017(internal transaction)'18/11期
FY20180'16/11期'17/11期'18/11期

2%

Profit for the year ÷((total equity as of end of previous fiscal year
Copyright*ROE=© 2019TOSEI CORPORATION, All Rights Reserved.
+ total equity as of end of resent fiscal year)÷2)

3

Overview of Consolidated Financial Results(¥million)

FY2017FY2018%

Revenue%yr/yr change%

57,754100.0%

61,543100.0%

3,788

6.6%

40,93770.9%

42,820

69.6%

1,882

4.6%

16,81629.1%

18,723

30.4%

1,906

11.3%

7,153

12.4%

7,860

12.8%

706

9.9%

Selling Expenses Pertaining to Property Trading

1,457

2.5%

1,603

2.6%

146

10.1%

Expenses Excluding Selling Expenses Pertaining to Property Trading

5,696

9.9%

6,256

10.2%

559

9.8%

Other Income

215

0.4%

147

0.2%

-68

-31.9%

Other Expenses

44

0.1%

134

0.2%

89

201.3%

9,833

17.0%

10,875

17.7%

1,041

10.6%

-784

-

-704

-

79

-

9,049

15.7%

10,171

16.5%

1,121

12.4%

2,894

-

3,318

-

424

-

Profit For the Year

6,155

10.7%

6,852

11.1%

697

11.3%

Total Comprehensive Income for the Year

6,165

10.7%

6,856

11.1%

691

11.2%

EPS(¥)

127.48141.36

13.88

10.9%

ROE

14.12 %

13.96 %

-0.16 P

ROA

7.42 %

7.78 %

0.36 P

Cost of Revenue
Gross Profit

Selling, General and Administrative Expenses

Operating Profit
Finance Income/Costs (Net)
Profit Before Tax
Income Tax Expense*ROE= Profit for the year ÷((total equity as of end of previous fiscal year + total equity as of end of resent fiscal year)÷2)*ROA= Profit before tax ÷((total equity as of end of previous fiscal year total equity as of end of resent fiscal year)÷2)
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

4

Revitalization Business
Component Ratio
Revenue

Gross Profit

56.5% 43.9%◆ Revenue ¥34.7 billion (down 13.6% yr/yr), Gross Profit ¥8.2 billion (down 10.6% yr/yr).
◆ A property acquired with completely vacant rooms was sold in a state of full occupancy by leasing, resulting in a highprofit margin. Also a property acquired in the past through a real estate M&A was sold at a high profit margin.
◆ Sales include 5 properties (¥8.8 billion) sold to Tosei Reit Investment Corporation, which we sponsor.

Revenue / Gross Profit Margin

Major Properties Sold

Restyling
Restyling(¥million)（百万円）

50,000Whole Building to REIT
1棟販売（リート向け）
Gross Profit Margin
Whole
Building to General Customers
1棟販売（一般向け）
売上総利益率
23.6%
22.8%
20.2%

30,00025,80920,000

1,725
6,829

10,000020%

40,26840,000

25%

1,528
9,827

34,793
762
8,889

15%

Kannai Yokohama-shi
Income-generating Building

10%

28,911

25,141FY2017FY20185%

17,254FY2016'16/11期

Itabashi-ku
Income-generating Building(¥million)'17/11期'16/11'17/11

Full Year

Full Year0%

Hachioji-shi
Income-generating Apartment'18/11期'18/11

Full Year

Revenue
Gross Profit

25,8095,21440,2689,186

34,793
8,215

Operating Profit

4,001

7,845

6,770

No. of Sales (Restyling)

57

45

22

No. of Sales (Whole Building, Others)

32

58

44

*The gross profit is net of Cost of Revenues including the following write-down amounts under LCM:
FY2016: ¥-25 million FY2017: ¥-5 million, FY2018:¥-456 million

Totsuka Yokohama-shi
Income-generating Building
Nerima-ku
Income-generating Apartment

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

5

Development Business
Component Ratio
Revenue◆ Revenue ¥13.2 billion (up 155.2% yr/yr), Gross Profit ¥3.0 billion (up 211.3% yr/yr).
The Development business’ performance was driven by The Palms Yutenji Master Place (88 units sold) which is a first
condominium project in four years.
◆ Sold 114 detached houses (including land lots) and sold a commercial facility in Nishikasai Edogawa-ku.

Gross Profit ◆21.5% 16.2%

Revenue / Gross Profit Margin(¥million)（百万円）

15,00010,000Condominium
分譲ﾏﾝｼｮﾝ
Detached House, Land Lot,
戸建・宅地・請負
Housing Construction
40.4%

Major Properties Sold

Office Building, Commercial Facility
オフィス・商業
Gross Profit Margin
売上総利益率13,261

13,138

6,830

7,488

18.8%

5,197

22.9%
892

5,197

5,539

5,000

40%

30%

THE Palms Yutenji Master Place

Edogawa-ku Nishikasai,
Commercial Facility

THE Palms Court Kunitachi

THE Palms Court Kashiwa-Hatuishi

THE Palms Court Aoba-Eda

Comodo Casa Nanyodai 3chome(Urban Home)

20%

10%

5,649
0

0%

FY2017'17/11期

FY2016'16/11期(¥million)

Revenue
Gross Profit
Operating Profit
No. of Sales (Detached House, etc.)
No. of Sales (Condominiums)
No. of Sales (Whole Buildings)'16/11
Full Year13,138
5,302
3,674
119
2

FY2018'18/11期'17/11
Full Year
5,197
976
-408
121
-

'18/11
Full Year
13,261
3,038
1,487
114
88
1

*The gross profit is net of Cost of Revenues including the following write-down amounts
under LCM: FY2016: ¥-66 million FY2017: ¥-28 million

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

6

6,842

6,956

6,631

2,808
1,765

Acquisitions in Revitalization and Development Businesses -Acquisition Amount and Inventories◆ Acquired a wide variety of products, such as offices, apartments, hotels, logistics facilities and condominiums◆ Total acquisition amount progressed to about ¥58.5 billion (up 17.6% yr/yr)◆ Total acquisition amount progressed
to about ¥76.4 billion on a contract basis, which mostly achieved the ¥80 billion target
戸建・土地（開発）
賃貸マンション（開発）（百万円）

Trends in Annual
Acquisition Amounts
分譲マンション（開発）70,000

ホテル（開発）Detached
Houses, Land (Development)
Office,Commercial Facilities (D)戸建・土地（開発）
オフィス・商業施設（開発）6,956
RentalApartment (D)Land,etc., (Revitalization)
戸建・土地（開）
賃貸マンション（開）
分譲マンション（開）
賃貸マンション（開発）59,993
土地等（流動化）
60,000
物流施設（開）
ホテル（開）
オフィス・商業施設（開）
Condos(D)
Apt
Building (R)分譲マンション（開発）マンション（流動化）
土地等（流）
マンション（流）ホテル（流）
Logistics
(D)
Hotel
(R)
物流施設（開発）
ホテル（流動化）
6,631
オフィス（流）Hotel(D)
Offices(R)
ホテル（開発）オフィス（流動化）
76,423

オフィス・商業施設（開発） 2,808

土地等（流動化）(¥million)（百万円）
50,000マンション（流動化）
45,16870,000
ホテル（流動化）
2,033
オフィス（流動化）

40,00049,8094,970

60,00030,00050,00021,32149,80959,9931,765

66,842

7,544

6,956

7,544 9,576

5,114

45,168

1,552

5,114
2,033

2,606

865

4,970
40,00020,000 1,433

865
1,433

49,809

2,808
1,765

2,496

880

26,387

9,576
30,000 16,472
10,000

2,541

5,114

8,710

3,769 25,808
1,486

1,433

8,710

865

1,552
15,005
16,472

Land, etc.
土地等（流）(Revitalization)
13,623 2,085
2,085

マンション（流）25,80810,00015,005'16/11期'17/11期

25,808FY2015

13,623'15/11期'18/11期(3Q累計)

FY2016'16/11期

FY2017'17/11期

Chiba-shi
Income-generating Apartment

Apt Building (R)
8,710
8,710

Revitalization¥39.6 billion

Breakdown of Acquisition (FY2018 Cumulative Total)
Office BL

Apartment

Hotel

Logistics

CondosDetached
House,
Land Lots

Total

Revitalization

27(1)*

17

-

-

-

12

56(1)*Development

-

-

2

1

1

5

9

'18/11期(3Q累計)

15,005'17/11期

Kawasaki-shi
Empty Apartment

2,541
2,541

ホテル（開）
Hotel (D)
8,653
8,653

20,000'15/11期
26,387

Yokohama-shi
Income-generating Building

37,549

物流施設（開）
1,486
Logistics
(D)

4,816

2,202

Minato-ku
Empty Building (Non-current Asset)

2,606
Detached
Houses, Land
戸建・土地（開）(Development)
4,816 2,873
2,873
分譲マンション（開）
2,541 (D)CondosDevelopment
4,816
4,816
3,769
¥18.8 billion

7,544 16,472

21,321¥76.4 billion¥58.5 billion

58,556

6,631

Contract Basis
Progress

contract has been
契約済
completedbut(22,444)ownership
has not yet Acquisition Progress
未引渡し(delivery basis)
been transferred
17,867
17,8672,496
880

21,321(22,444)2,496 2,202
880

1,552

6/11期

Breakdown of Inventories(deliverybasis物流施設（開発）and expected revenues)
66,842

オフィス（流）Offices (R)28,88028,880FY2018'18/11期*Revitalization includes properties acquired as non-current assets*( ) are the number of Non-current Asset

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

7

Rental Business
Component Ratio
Revenue

Gross Profit

10.0% 14.9%◆◆

Revenue ¥6.1 billion (down 1.0% yr/yr), Gross Profit ¥2.7 billion (down 2.8% yr/yr).
Revenue, profit and number of properties slightly decreased because sales exceeded the number of incomegenerating properties purchased.
◆ About half of the rent income comes from non-current assets, or grew to ¥2.9 billion (up 18.4% yr/yr)

Breakdown of Properties* Held by Tosei

Revenue / Gross Profit Margin
Current Assets (Whole BLs, Others)
棚卸資産（1棟ほか）（百万円）(¥million)

Non-current Assets
固定資産

8,000
7,000
6,000

50.2%

6,237

(物件）

120
100
40%

6,178

83

89

86

57

57

6

5

80

3,148

3,639
3,056

2,122

2,493

FY2016FY2017

2,951

0

0%

'16/11期'17/11期(¥million)

FY2018'18/11期'16/11'17/11'18/11

Full Year

Full Year

Full Year

Revenue
Gross Profit

5,324
2,670

6,237
2,864

6,178
2,782

Operating Profit

2,389

2,581

2,534

*The revenue includes internal transactions

60

51

52

40

25

26

20

10

8

7

16

18

21

26

24

'14/11'15/11'16/11'17/11'18/11

55

20%

78

105

145

2,000

Office, Commercial Facilities : 42
Apartment : 42
Other : 2

*Only includes income-generating properties

5,324

3,000

1,000

(properties)

Gross Profit Margin
売上総利益率
45.9%
45.0%

5,000
4,000

Current Assets
棚卸資産（1棟ほか）
Restyling
棚卸資産（Restyling）
Non-current Assets
固定資産

Restyling
棚卸資産（Restyling）

0

Increase and Decrease of Properties* from the End of the Previous Fiscal Year
(Buildings)
+1
+7
+29
Sold
Others120
100

Newly Start ofAcquired Rent

▲37

80

60

End ofRent

89'17/11▲2

Others86▲1

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.
'18/11

8

Fund and Consulting Business - FY2018 Component Ratio
Revenue◆
Gross Profit ◆◆4.9% 15.2%

Revenue ¥3.0 billion (up 8.4% yr/yr), Gross Profit ¥2.8 billion (up 12.3% yr/yr)
Asset under management (AUM) exceeded ¥663.0 billion
A net increase of ¥107.0 billion in assets under management of private funds due to a rise in the number of new
management contracts with overseas investors.
◆ New management contracts include 6 properties (¥10.6 billion) that were acquired by Tosei Reit Investment Corporation.

Revenue / Gross Profit Margin(¥million)
（百万円）

4,000

Brokerage Fee / Other
Dividend
配当金
仲介手数料･その他
Acquisition Fee
Disposition Fee
ディスポジションフィー
アクイジションフィー
Gross Profit Margin
AM FeeAMフィー
売上総利益率
94.2%
93.8%
90.6%

3,000

1,255

663,359

700,000

552,208

60% 500,000
400,000

40%

1,529

1,067

983

*1 The light blue portion indicates the assets under consulting agreementsof CRE. CRE is methods of investing in and managing corporate realestate efficiently to maximize long-term enterprise value. By
undertaking CRE, Tosei conducts comprehensive consulting services
from the views of real estate professional.
*2 ¥45 billion was transferred from private funds AM to CRE at the end of
November, 2016 after reviewing the management details. For
comparison, revenue for the previous fiscal year (FY2016) arerecalculated.

600,000

93
386

80
398

239
246

0

100%
800,000

1,028

46
814

1,000

(¥million)
（百万円）

80%

2,329

CRE
※1
PrivateFunds AM
私募ファンドREIT AM
REIT
CRE*1

3,038

2,802

2,000

Balance of Assets Under Management20%

FY2016FY2017FY2018'16/11期'17/11期'18/11期

0%

300,000

448,186

91,789124,084

300,607200,000

170,114100,000
0421,792

108,316

114,097*2

499,184*2

392,114300,643

287,924

113,057
17,43429,35836,17745,99755,858'14/11'15/11'16/11'17/11'18/11

Increase and Decrease of AUM from the End of the Previous Fiscal Year(¥million)

Revenue
Gross Profit
Operating Profit*The revenue includes internal transactions'16/11'17/11'18/11

Full Year
2,329

Full Year
2,802

Full Year
3,038

2,193

2,538

2,850

951

1,273

1,616

CRE
Private Funds

Increase(A)+140,944

Decrease(B)-5,780Net Increase(A)-(B)- 5,780-33,874+107,070

REIT+10,692-830+9,861

Total+151,636-40,485+111,151

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

9

Property Management Business - FY2018 Component Ratio
Revenue

Gross Profit

8.5% 8.8%◆

Revenue ¥5.2 billion (up 12.8% yr/yr), Gross Profit ¥1.6 billion (up 21.9% yr/yr). (スポーツクラブ運営事業等)◆

Property management and building management fee increased to ¥3.6 billion (up 11.6%)◆

Contracts for repair work were steady, and revenue from repair works and commission and fee also increased

The Number of Properties Under Management

Revenue / Gross Profit Margin(¥million)
（百万円）

7,000
6,000

Repair Works, Commission and Fee
スポット工事・手数料報酬など
PM / BM Fee
PM・BM報酬など
Gross Profit Margin
売上総利益率29.3%
27.2%

Condo/
Apt
マンション
（棟数）
(Buildings)

5,232

30% 800

665

4,637

5,000

4,005

4,000

1,098

1,617
1,399

600

400

2,906

3,237

3,614

FY2016FY2017FY2018'16/11期'17/11期'18/11期

594
219

622

270

232

193

196

351

351

375

395

390

'14/11'15/11'16/11'17/11'18/11

10%
200

1,000
0

547

544

20%

3,000
2,000

OfficeBuilding, Others
ビル等

31.6%

0%

0

Example of Properties Under Management(¥million)

Revenue'16/11'17/11'18/11

Full Year
4,005

Full Year
4,637

Full Year
5,232

1,090

1,356

1,653

141

278

453

Gross Profit
Operating Profit

Commercial Facility

School*The revenue includes internal transactions
OfficeCopyright © 2019 TOSEI CORPORATION, All Rights Reserved.
Condominium
Hotel
Nursery School10Summary of Balance Sheet (Consolidated) - Assets ◆ Total asset ¥138.7 billion (up 13.2% yr/yr)◆ Investment Properties/PPE ¥42.5 billion (up26.4 yr/yr ), which accounts for more than 30% of total assets(¥million)'17/11

Decrease

Increase'18/5

Decrease

Increase

Total YTD
Decrease Increase'18/11

Total Assets

122,550+12,385

134,935+3,832

138,768+16,218

Cash and Cash Equivalents

23,750+2,07625,827+693

26,520+2,770Inventories (Properties)

59,718Investment Properties/PPE

33,665

Other Assets

5,416+9,724-18,864+28,588
-57
-280
+222
+641

A：Change in Inventories (Properties)

Acquisition
Construction Cost/Value-added, etc.,
Transfer from Non-current Assets
Disposal by Sale
Decrease
Transfer to Non-current Assets
FactorOthers
Total
Increase
Factor

33,607
6,058-6,985-22,983+15,998
8,931-4,572+13,503+1,193A+2,739-41,848+44,587B
8,873
42,538-4,852+13,726
62,457

7,251+1,835

B：Change in Investment Properties/PPE

Inventories(properties) increased ¥2.7 billion from the end of the previous
fiscal year. The increase was attributed to new properties purchase andconstruction cost, etc., which exceeded decreases due to properties sold.
(¥million)

69,442

Total+27,923+12,407+4,256-36,506-4,884-456-41,848 +44,587

Investment Properties/PPE increased ¥8.8 billion from the end of theprevious fiscal year. The increase was attributed to a new investment
property purchase, which exceeded decreases due to properties transfer toinventories, etc.
(¥million)

Acquisition
Increase
Transfer from Current Assets
FactorValue-added, etc.
Decrease Transfer to Current Assets
FactorDepreciation Expense, etc.
Total

Total
+8,505+4,884+336-4,256-596-4,852 +13,726

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11Summary of Balance Sheet (Consolidated) - Liabilities/Equity ◆ Maintained financial soundness by keeping an equity ratio of around 37.5% and Net D/E Ratio 0.93.
(¥million)

Total Liabilities/Equity'17/11

Decrease Increase'18/5

Decrease Increase'18/11

122,550+12,385

134,935+3,832

138,768

Total Liabilities

76,391

Borrowings

67,123Current Borrowings

6,449

Non-current Borrowings

60,674

Other Liabilities

9,268+3,195

12,463-742

11,721Equity46,158+3,47649,635+2,38652,021Equity Ratio (%)

37.7

-0.9

36.8

+0.7

37.5

Net D/E Ratio

0.94

+0.01

0.95

-0.01

0.93

+8,90885,299+5,712-21,529+27,242-209-5,171+4,961+5,922-16,358+22,280

72,836
6,239
66,596-1,446+2,188-20,546+22,735+1,068-2,798+3,867+1,120-17,747+18,868

A： Change in borrowings(¥million)

Increase New Borrowing upon Acquisition
Factor Long-term borrowing which due became less than one year
Current
Decrease Repayment upon Disposition
Factor Other (Refinance, Repayment, etc.)
Increase New Borrowing upon Acquisition
Factor Other (Refinance, etc.)
NonRepayments upon Disposition
Current Decrease
Other Repayments (Refinance, Repayment, etc.)
FactorLong-term borrowing which due became less than one year
Total

+16,218

A+10,355+7,901-42,076+49,978+859-7,969+8,829+7,042-34,106+41,148

75,025
7,308
67,716B+2,453+5,862

C

-0.2
-0.01

B： Change in Equity

Total

+885
+7,944-4,765-3,204+34,408+6,740-21,121-5,040-7,944-42,076

86,746

Total YTD
Decrease Increase

Total equity increased ¥5.8 billion from the end of theprevious year, reflecting an increase of ¥6.8 billion in
profits, the payment of ¥1.2 billion of Cash dividends paid,and ¥0.2 billion for exercise of stock options .

C: Financial Soundness•+49,978

The debt balance increased by ¥7.9 billion from the end of the previous fiscal year. The increase was attributed
to new borrowings for property purchase and new development costs, which exceeded decreases due toproperties sold and scheduled payment, etc.

•

Equity ratio is 37.5% (down 0.2 points from the end of
the previous year).
Net D/E ratio is 0.93 times (down 0.01 points from theend of the previous year).
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

12

Inventories – Breakdown ◆ Balance of inventories ¥62.4 billion, Total expected disposition value ¥105.3 billion (Tosei’s estimation)(¥million)

Balance Balanceof BookofValue
Inventories
As of end of As
November,of Aug. 31,2018
2017
Breakdown of Inventories

62,457
71,625(116
properties)(121properties)

Breakdown of Inventories

Inventories
Inventories
Property type
Revitalization No. of Development No. of
Property type
Revitalization No. of Development
No. of(A) (A) properties(B) (B)
properties
properties
properties
3(3)Office, Commercial
Building
20,87424,491 34 (30)2,448Office, Commercial Buildings
2,447
Condo/AptCondo/Apt
Building Buildings
Hotel

•
•

- 3,062

Hotel(A)+(B)

105,357
107,679(\million)

Expected Disposition Values

Total
expected
Total
expected
disposition
disposition
value
Revitalization Development
Revitalization Development
value
Expected Disposition Values

26,93923,322

28,746
31,661

3,089
2,914

34,57531,83544 (54)
- (1)

9,267
8,713

5(5)

25,71429,053

20,41324,965

21,271
20,36541,68445,331

4,948
4,328

3(2)

4,948
7,390

4,539

14,602
9,015

14,602
13,555

Logistics Facility
Logistic Facility

-

-

-

-

757710

1(1)

757
710

--

2,540
2,540

2,5402,540

Detached House
Detached House

-

-

-

-

5,100
6,109

13
(16)

5,100
6,109

--

8,594
9,901

9,9018,594

Other

2,613 1,421

13

(9)

-

-

- -

1,421
2,613

1,774
6,099

--

1,7746,099

TOTAL TOTAL

39,93649,316

91 (94)22,30922,521(27)
25

71,62562,457

62,94255,25944,73750,098

107,679
105,357

Other•

16,44720,339

Total
Total
(A)+(B)

TotalExpected
Expected
Total
Disposition
Disposition
Value
Value

The expected disposition values above are based on Tosei’s estimate of revenue corresponding to the properties currently in the inventories.
Actual amounts may be vary significantly from the estimates, due to various factors.
The inventories above represent carrying amount and may increase due to such factors as value-added investments and construction costs.
The condominium buildings and detached houses are counted as each project being one property.

Expected Disposition Values
Detached
housesOthers
Office,Logistics 8%
6% Commercial
Facilities
Buildings
2%
Property 30%
Hotel
Type
14%
Condo/Apt Buildings
40%

Chiba
13%

Saitama6%
The 23 wardsof Tokyo
36%
Area

Kanagawa
27%
Tokyo (except
the Tokyo's
23 wards)
18%

Less thanMore than ¥2B¥100M
34% Property 30%
Between¥1 & ¥2B
5%

Size

Between ¥100 &Between ¥500M¥0.5 & ¥1B 12%
19%

Copyright© 2019 TOSEICORPORATION,
All unit’s
Rightsprice.
Reserved.
Note: Detached houses
and condominiums
areclassified by one

13

Inventories - Expected Disposition Values ◆ Holds inventories to approximately revenue for 2 years (Revitalization Business & Development Business)
Detached Houses (Development)
戸建（開）
Logistics (D)
物流施設（開）
Office, Commercial Facility (D)オフィス・商業（開）
Apt Building (Revitalization)
マンション（流）Office, Commercial Facility (R)オフィス・商業（流）(¥million)（百万円）

100,000

80,000Condos (D)マンション（開）
Hotel(D)
ホテル（開）
Others(R)
その他（流）
Hotel (R)
ホテル（流）

105,357
99,428 100,076

74,36522%

15%60,55753,62046%

50,127

46,581
8%

44,58840,0006%
4%54,825
25%

26%
15%

4%

Detached House

20%

Condos11%

76,48760,0008%Development

2%

Logistics

14%

Hotel
Office,Commercial
Facility

3%
6%

Others

10%

23%

22%

5%

35%

26%

27%

2017/112018/1119%

Apt Building
Revitalization

20,00031%

33%

Office,Commercial
Facility

18%

0

2008/11Growing Up
2008

2009/112010/112011/11

Charge Up
20112012/112013/11

2014/112015/112016/11

Advancing Together
2017

Next Stage2014

Balance between Inventories and Sales Volume(Beginning-of-year) Inventories*1'17/11'18/11

Seamless Growth2020(¥million)'19/11(forecast)(A)

99,428100,076

105,357*2(B)

45,46548,05556,821 *1 Expected disposition values*2(B)÷(A)

46%

48%

Revenue

Revenue ÷(beginning-of-year) Inventories*2 Sales from the trading business(Revitalization and Development business)
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

54%

14

Investment Properties and PPE – Breakdown ◆ Unrealized gains (after tax) is ¥15.1 billion◆ Book values of the properties included in non-current assets is ¥42.3 billion
Balance of Book Value
As of end of November 2018

42,370M

Breakdown of Investment Properties and PPEBalance ofProperty Typebook value(A)1
Office, Commercial Building*
30,502
Condo/Apt Building
4,267
Hotel
6,646
Logistics Facility
953
Total
42,370*1 Includes one property which is partially is a hotel*2 Calculated by corporation tax rate 33%* Fair values in above is based on the real estate appraisal by Tosei* PPE book value doesn’t include book value of structures attached to the buildings.
* Equipment, etc. are not included un the Assets

64,990M

Fair Values(30 properties)(¥million)

No. ofProperties

Fair Values(B)46,668
6
5,946
3
10,905
1
1,469
30
64,990 Total
Income Tax Expense*2
Unrealized Gains (After Tax)20

Total Equity including unrealized gains (after tax) in above

Unrealized
Gains (B)-(A)16,166
1,678
4,259
515
22,619 A-7,464 B
15,155 C (A+B)

Changes in Investment Properties and PPE (Book Value)*( ) are the number of properties which have rental income

As of end of November, 2018
Per Share(¥million)（百万円）

50,000

19物件
(16)

22物件
(18)

(21)
25物件

¥52,021M¥1,071.63

Unrealized Gains (after tax)【B】¥15,155M¥312.19

Total (【A】+【B】)¥67,176M¥1,383.82

30物件

20物件

33,55530,00020,000properties 53,900
30物件
54,000(24 properties)

42,37040,000Total Equity 【A】

30物件
(26)

17,09722,00410物件

25,172

物件- 10物件

10,000- 20物件0- 30物件'14/11'15/11'16/11'17/11'18/11(Forecast)'19/11（予想）Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

15

Borrowings from Financial Institutions◆◆◆

Interest rate 1.07% (down 0.09% yr/yr), low interest rate continues.
Generally borrow funds based on the assumption of mid- to long-term ownership of properties
The average borrowing period of non-current assets is 16.0 years (up 0.4 years yr/yr), current assets, etc. is 6.1 years (up1.6 years yr/yr)

Changes in Borrowing Rate*1 / Period*2(year)（年）

Average Interest Rate
平均借入金利Average Borrowing Period (Non-current Assets)
平均借入期間（固定資産）
Average Borrowing Period (Current Assets, etc.)
平均借入期間（棚卸資産等）
1.52%

Changes in Borrowing*3 Balance
Non-current, etc. Borrowing
固定資産
Current Borrowing
棚卸資産等

years

75,019(¥million)（百万円）

70,124

1.30%
20

1.07%
16.4年

13,57660,0001.16%

67,11327,48819,524

48,655
0

years
16.0年

40,00011,04913.1年
1056,547

10.5年
4.4年

5.3年

years
6.1年

20,0004.5年

00'15/11'16/11'17/11'18/1147,58847,530'17/11'18/1137,6050'15/11'16/11*1 The weighted-average rate of borrowing balance of end of each fiscal year
*2 Borrowing period are calculated using the weighted average of period from the date of borrowing until due date of borrowing depending on the borrowing balance.
*3 Lease debts are not included
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

16

Overview of Segment Results (Consolidated) -Revenue and Cost of Revenue(¥million)

Revenue

FY2017FY201857,754%100.0%

Revitalization

40,268Development

yr/yr Change

61,543%100.0%

3,788

%
6.6%

69.7%

34,79356.5%-5,474-13.6%

5,197

9.0%

13,261

21.5%

8,064

155.2%

Rental

6,237

10.8%

6,178

10.0%

-59

-1.0%

Fund and Consulting

2,802

4.9%

3,038

4.9%

236

8.4%

Property Management

4,637

8.0%

5,232

8.5%

594

12.8%

0

-

358

0.6%

358

-

-1,388-2.4%-1,319

-2.1%

69

-5.0%

Total

Other
Internal Transaction

Cost of Revenue

FY2017FY201840,937%
70.9%

Revitalization

31,081Development
Rentalyr/yr Change

42,820

%
69.6%

1,882

%
4.6%

77.2%

26,57776.4%-4,503-14.5%

4,221

81.2%

10,222

77.1%

6,001

142.2%

3,373

54.1%

3,395

55.0%

21

0.6%

Fund and Consulting

263

9.4%

187

6.2%

-76

-28.9%

Property Management

3,280

70.7%

3,578

68.4%

298

9.1%

-0

-

7

2.0%

7

-

-1,282--1,149-133-10.4%

Total

Other
Internal Transaction

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

17

Overview of Segment Results (Consolidated) -Gross Profit and Operating Profit(¥million)

Gross Profit

FY2017FY201816,816%
29.1%

Revitalization

9,186

Development

yr/yr Change

18,723

%
30.4%

1,906

%
11.3%

22.8%

8,215

23.6%

-970

-10.6%

976

18.8%

3,038

22.9%

2,062

211.3%

Rental

2,864

45.9%

2,782

45.0%

-81

-2.8%

Fund and Consulting

2,538

90.6%

2,850

93.8%

312

12.3%

Property Management

1,356

29.3%

1,653

31.6%

296

21.9%

0

-

351

98.0%

350

-

-106

-

-169

-

-63

60.1%

Total

Other
Internal Transaction

Operating Profit

FY2017FY2018

9,833

%
17.0%

Revitalization

7,845

Development

yr/yr Change

10,875

%
17.7%

1,041

%
10.6%

19.5%

6,770

19.5%

-1,074-13.7%

-408

-7.9%

1,487

11.2%

1,895

-463.9%Rental

2,581

41.4%

2,534

41.0%

-47

-1.8%

Fund and Consulting

1,273

45.4%

1,616

53.2%

342

26.9%

Property Management

278

6.0%

453

8.7%

175

63.1%

Other

-74

-

-45

-12.6%

29--1,661--1,941

-

-280

16.9%

Total

Corporate Expenses, etc.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

18

Summary of Cash Flow Statements (Consolidated)(¥million)

FY2017(A)
Cash flows from Operating activities

FY2018(B)yr/yr Change(B)-(A)

7,089

7,615

526

9,049

10,171

1,121

Depreciation expense

393

621

228

Increase / Decrease in inventories

353

-932

-1,286

Income taxes paid

-4,027-2,226

1,801

Other, net

1,320

-18

-1,338Cash flows from Investing activities-18-10,786-10,767

Increase / Decrease in PPE

-30

-72

-41

Increase / Decrease in investment properties-1,282-8,714-7,431Other, net

1,294-2,000-3,294

Cash flows from Financing activities-4,962

5,941

10,904

Increase / Decrease in borrowings-3,010

7,905

10,916

Cash dividends paid

-1,061-1,206-145

Interest expenses paid

-886

-960

-74

-3

204

207

NET Increase / Decrease in cash and cash equivalents

2,108

2,770

662

Cash and cash equivalents at beginning of year

21,64023,750

2,109

1

-0

-1

23,75026,5202,770

Profit before tax

Other, net

Effect of exchange rate change on cash and cash equivalents
Cash and cash equivalents at end of year

Cash Flows fromOperating Activities¥ 7.6 billion Increased
Mainly due to ;・¥10.1 billion of profit before tax
・¥0.9 billion increase in inventories
・¥2.2 billion decrease due to income taxes paid

Cash Flows from
Investing Activities¥10.7 billion Decrease
Mainly due to;・¥8.7 billion increase in investment properties
・¥1.5 billion payment due to acquisition ofsubsidiaries’ stock through M&A

Cash Flows from
Financing Activities¥5.9 billion Increase
Mainly due to;・¥7.9 billion net increase in borrowings
・¥1.2 billion decrease of cash dividends paid
・¥0.9 billion decrease of interest expenses paid

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

19II. Recognition of the Current Business Environment /Mid-term Management Plan “Seamless Growth 2020”

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

20

Recognition of the Current Business Environment◆◆◆

The number of real estate trades will remain firm overall despite high real estate prices.
However, the number of trades of income-generating wooden apartments will decrease due to the impact of stricter banks loans.
Brisk trades, which are supported by high yield gaps attributable to a low level of concern over the increase in domestic interest rates onloans, will continue over the upcoming months in the real estate investment market.
Policy, Industry Conditions, Demand and Supply Trends etc.
The Abenomics period of expansion is expected to break the previous record for longest period of postwar economic growth (73 months) in Jan.2019.
A number of measures are expected to alleviate an economic downturn that may be caused by an increase in the consumption tax scheduled for Oct. 2019.
The Japanese economy will continue to grow moderately on the back of strong domestic demand, despite deepening concern over the global economy.
Steady growth will continue because the impact of a decline in construction demand is expected to be immaterial after the 2020 Tokyo Olympics.

Office••The vacancy rate decrease to 1.98%, the lowest in history. As of Nov. 2018, the rent is rising gradually in 59 consecutive months.
The supply-demand balance will continue to be tight for the time being on the back of strong demand for office expansion.

New Condos••

The contracts rate fell due to high price.
New supply in the Greater Tokyo Area is expected to increase 0.8% from the previous year to 37,000 units according to the 2019 forecast of a private research institution.

Used Condos•

The number of sales during Jan. to Nov. 2018 were 34,000 units, at approximately the same level as for previous year, due to consumers’ price consciousness.

Detached
Houses•Firm demand continues, and the number of construction during Jan. to Nov. 2018 were 56,000 houses, remain at the same level as in the previous year.

Income-generating
Apartment•

Leveraged effect decreased due to tightened credit standards over lending to individual investors.

Hotel

•
•
•

The numbers of hotel rooms and inns in Tokyo are 169,000 hotel rooms and 2,024 inns (as of Mar 2018).
Based on current plans, 24,000 hotel rooms and 173 inns are expected to be added between Apr. 2018 and Mar. 2020.
Although there is concern over a slight oversupply, if the number of foreign tourists to Japan reached the 2020 goal 40 million, demand is expected to exceed the supply.

Commercial
Facility••

The retail sales during Jan. to Oct. 2018 was ¥118 trillion, a 1.8% increase from previous year.
Rent growth is sluggish due to effects of aging society with low birthrate and expansion of EC market will retard the real store sales .

Logistics••

Demand will continue to be strong in the Greater Tokyo Area thanks to strong demand for rental properties from third-party logistics companies and mail-order companies.
From Nov. 2017 to Oct. 2018, there was a new supply of 6,670 thousand tsubo. Rental logistics facility stock in Greater Tokyo Area is 4,920 thousand tsubo as end of Oct.
2018.

PrivatePlacement•

As of end of Jun. 2018, the market for private placement funds grew to ¥16.9 trillion. (Private Placement Fund ： ¥14.2trillion, Private Placement REITs : ¥2.7 trillion)

J-REIT•••

Tokyo Stock Exchange REIT Index is late 1,700 points
The J-REIT market expanded to ¥17.9 trillion as of end of Nov. 2018.
Real estate price increases will be seen as an opportunity. Efforts to property replacement will be stepped up.

•

Bank loans for the real estate industry reached ¥99 trillion to hit a record high, which is 15.7% of the total amount of bank loans (¥629 trillion), although,stricter rules will be applied to banks loans for income- generating apartments.

Housing

Common Factors

•
•
•
•

Funds

Loan
Environment

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

21

Tosei’s Strength
1

Focus onSmall-to Mid-size Properties

２

Portfolio Management throughOur 6 Business Lines

３

Providing a Variety of Products• Demand for properties for sale, acquisition and rent is stable due to a large amount of stock.
There chances are good that our market share will increase because there are not many
competitors.
• In the Revitalization Business, we acquire aged/deteriorated property in comparatively cheap
price (10% profit margin) and then add-value by revitalizing (10% profit margin)
The business models we practice enable us to operate business without depending on priceincreases in the real estate market.
• We have a stable management structure which respond to cyclical changes in the realestate investment market.
It is based on portfolios featuring a combination of real estate Trading Businesses that
contribute to revenue generation and Stable Businesses, namely, stock-based fee businesses.
• “Trading Business” are Revitalization and Development Business,“Stable Business” are Rental, Fund & Consulting, Property Management and Hotel (newly
established) , and we leverage synergies for the development of businesses that should bemanaged differently from the perspectives of cash flow and payback periods.
• We implement investment strategies to respond to demand trends in the real estate market.
Based on such strategies, we provide a variety of products, sales strategies and revitalization
expertise, and quickly respond to demand trends in the market.
• By offering a variety of properties such as offices, condominiums, rental apartments,
detached houses, hotels and logistics facilities, etc., we can expand investment opportunities
and provide services to clients, such as domestic and foreign institutional investors, operatingcompanies and individuals, who conduct different investment activities.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

22

Mid-term Management Plan (FY2018 - FY2020) -Target PerformanceSeamless
Growth 2020

To continue growth as a whole Group to build a firm position as a uniquecomprehensive real estate company.

Performance Indicator Guidance【Profit Growth (consolidated)】• Revenue for the final fiscal year:• Profit before tax for the final fiscal year:• Average profit growth rate of the three years:• Average ROE of the three years:¥100 billion¥12 billion
10% or more
12% or more【Financial Soundness】• Expansion of the ratio of stable businesses(Gross Profit Margin : achieve 50/50 weight balance between Trading Business and Stable Business*)•*

Aim to keep an equity ratio of around 35% in consideration of financial soundness.
Established Hotel Business as a new segment in FY2019.
Of the six existing business segments, the Revitalization Business and the Development Business are defined as the “trading business” and the Rental Business, theFund and Consulting Business, the Property Management Business and Hotel Business are defined as the “stable business.” Under this plan, gross profit of the
trading business excludes selling expenses pertaining to property trading.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

23

Mid-term Management Plan (FY2018 - FY2020) -P/L Simulation [Basic policy] ••Expand businesses in all segments.
Increase the ratio of stable businesses in the revenue and profit structure(fifty-fifty for trading businesses to stable businesses)
FY2017FY2018 (A)Revenue

Gross
ProfitProfitRevenue
MarginGrossProfitProfitMargin

Revenue, Gross profit

57,754

16,81629.1%

61,54318,72330.4%

71,51020,95629.3% 100,000

23,737

23.7%

Revitalization
Development

40,268
5,197

9,186
976

22.8%
18.8%

34,793
13,261

8,215
3,038

23.6%
22.9%

41,79515,025

9,672
3,153

23.1%
21.0%

60,882
21,432

9,516
4,025

15.6% A
18.8% B

45,465

10,162

22.4%

48,055

11,25423.4%

56,821

12,825

22.6%

82,314

13,541

16.5%

6,237
2,802
4,637
0
0

2,864
2,538
1,356
0
0

45.9%
90.6%
29.3%
-

5,979
3,038
5,232
557
0

2,701
2,850
1,653
432
0

45.2%
93.8%
31.6%
77.5%
-

6,465
2,886
5,656
1,076
0

3,139
2,746
1,650
859
0

48.6%
95.1%
29.2%
79.8%
-

9,461
2,999
6,295

5,375
2,861
1,709

56.8% C
95.4% D
27.1% E962

914

95.0% F

13,677

6,759

49.4%

14,807

7,638

51.6%

16,084

8,396

52.2%

19,717

10,85955.1%

60-1,388-106--1,319-169--1,395-264--2,031

-663

-

40

Selling expenses
pertaining to property
trading

1,457

2.5%

1,603

2.6%

1,934

2.7%

3,109

3.1% G

Other expenses

5,525

9.6%

6,243

10.1%

6,969

9.7%

7,235

7.2%

Operating profit

9,833

17.0%

10,875

17.7%

12,052

16.9%

13,39313.4%

136.2%

Profit before tax

9,049

15.7%

10,171

16.5%

11,23015.7%

12,23112.2%

135.2%

Profit for the year

6,155

10.7%

6,852

11.1%

7,708

10.8%

8,194

8.2%

Profit per share (¥)

127.48

Trading
Business

RentalFund and Consulting
Stable Property Management
Business Hotel
Other

Internal Transactions
Selling, generalandadministrative
expenses., etc.

Gross
Profit141.36

ProfitRevenue
MarginFY2020 Forecast (C)GrossProfit(¥ million)

ProfitRevenue
MarginFY2019 Forecast (B)Gross Profit
Achieve 50/50 weight balance
between Trading businessand Stable business
160
140
120

¥13.5B¥10.1B¥3.1B(internal transaction)¥10.4B¥10.1B

Trading1
Business2
StableBusiness100

158.79169.7280

Growth
rate
(C÷A)

20
0

50 : 50*Excluding the property sales expenses of ¥3.1
133.1% billion that are included in the gross profit.
133.1%*Calculated based on the number of shares as of November 30, 2017 for FY2020 and thereafter.
*The revenue of the Rental business has been partially transferred in consideration of the establishment of a new hotel business in FY2019.
For comparison, segment information for FY2018 is presented based on the revised classification in this material.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

24250.0Mid-term
Management Plan (FY2018 - FY2020) -B/S Simulation -Seamless
Growth 2020

Aim to keep an equity ratio of 35% in consideration of financial soundness
As of end of FY2020

Revenue ¥100 million*In this simulation, calculations have been made based on the assumption that the corporate tax is 33% and capital is not increased.
The simulation is based on the information available Financial hurdles. The actual amount may vary significantly due to various factors.
* Forecast for FY2020 is same as of announced in 10 Jan. 2018. The numbers are not reviewed.

200.0¥190.2 billion

Cash and cash
equivalents

As of end of FY2019 (forecast)

23.9

10.7

Other Liabilities¥164.6 Billion
As of end of FY2018 (result)150.0¥138.7 Billion

28.5

21.6

10.1

100.0

(disposition value)(disposition value)

67.2

67.1
59.7

(disposition value)
81.6※直近3ヵ年の平均（簿価×1.58倍）で想定*Expected based on the averagefor the most recent three years(1.58 times book value)

50.0

0.0

87.9 115.0 Borrowings

94.4¥138.8billion¥113.570.1billion¥105.3 billion

Inventories(properties)

9.2

23.7

11.0

Investment
properties/PPE

25.3 41.0

33.6 46.1

41.3 51.7

7.0

5.4

5.6

37.5%

35.4%

0.93

1.10

72.8
64.6

Other assets

Equity5.6

Capital Equity Ratio

34.0%

1.41All Rights Reserved.
Copyright
2019 TOSEI CORPORATION,
Net D/E© Ratio

25

III. Business Development in FY2019

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

26

Forecast for FY2019 - Revenue/ Profit Summary Aim to achieve more than10% growth in FY2019 as well
Established Hotel Business as a new segment in FY2019 to make it grow as a new source of revenue.

◆◆*The revenue of the Rental business has been partially transferred in consideration of the establishment of a new Hotel Business. For comparison, segment information for FY2018 is presented based on the revised classification in this material.

Gross Profit

Revenue(¥million)

80,000

その他事業
Other

不動産ﾌｧﾝﾄﾞ・ｺﾝｻﾙﾃｨﾝｸﾞ事業
Fund and Consulting
不動産賃貸事業
RentalRevitalization
不動産流動化事業
Internal Transaction
内部取引57,75450,0000
4,637

49,818

2,802

341
4,005

6,237

25,00071,5101,076

40,000Growth Rate 10.4%

61,543

2,886

Stable Business

557
5,232

*Total of Gross Profit of Stable Business ÷(Gross Profit - Property Sales Expenses)

43%

44%

40%

43%

20%

18,723
16,816

16,349Stable Business0%

15,000

6,465

-20%

10,000

Trading Business

3,038

-40%

Property Sales
Expenses -60%

5,000

5,979
15,025

0

5,197

-80%

FY2016'16/11期

13,261FY2017'17/11期

FY2018'18/11期

11,230 (Forecast)

12,00010,171

20,95620,000

2,329
5,324

14,00040%

5,656Development
不動産開発事業60,000(¥million)

Ratio of Stable Business*
安定事業比率

ホテル事業
Hotel
不動産管理事業
Property Management

70,000

Profit before Tax(¥million)

FY201910,000
8,450

9,049

8,000

6,000
4,000

2,000
0

'19/11期(Forecast)

FY2016'16/11期

FY2017'17/11期

FY2018'18/11期

FY2019'19/11期(Forecast)
（予想）

（予想）

Profit for the Year

Dividends

13,138

Trading Business

30,0008,000

7,708 (Forecast)
20%

ROE
6,852

18%

6,155
41,79540,26820,000

6,000

14.4%

34,793

16%

5,547

200

Dividends (¥)

14.1%

14.0%

14.0%

12%

50

EPS
配当金
Dividends*¥158.79

160

14%

4,000

25,809EPS (¥)

120¥114.89¥127.48

2Q

8%

80

6%

2,000

4%

¥37

30

¥30

10%

10,00040¥141.36

¥22

¥25

40

20

10

2%

0

-1,131-1,388-1,319-1,395FY2016'16/11期

FY2017'17/11期

FY2018'18/11期

FY2019'19/11期(Forecast)（予想）

0

FY2016'16/11期

FY2017'17/11期

FY2018'18/11期

0%
0
FY2019FY2019'19/11期
FY2016 '17/11期
FY2017FY2018'16/11期'18/11期'19/11期(Forecast)
Copyright © 2019 TOSEI CORPORATION, All Rights(Forecast)
Reserved.
（予想）（予想）* FY2018 EPS is calculated by using the number of stocks as of end of
FY2018027Forecast for FY2019 -Segment Overview◆◆

Implement investment strategy that quickly respond to market changes.
Expand both Trading Business and Stable Business by growing each businesses
FY2017FY2018 (A)FY2019 (B)Revenue
Revitalization
Development
RentalFund and Consulting
Property Management
Hotel
OthersInternal Transactions
Gross profit
Revitalization
Development
RentalFund and Consulting
Property Management
Hotel
OthersInternal Transactions
Selling, general and administrative expenses, etc.
Selling expenses pertaining to property trading

57,75440,268
5,197
6,237
2,802
4,637
0
0
-1,38816,816
9,186
976
2,864
2,538
1,356
0
0
-106
7,153
1,457

Selling, general and administrative expenses(Exclude sales expenses pertaining to property trading)

5,696

9.9

6,256

10.2

6,977

9.8

721

11.5

215
44
9,833
7,845
-408
2,581
1,273
278
0
-74
-1,661
-784
9,049
2,894
6,155

0.4
0.1
17.0
19.5
-7.9
41.4
45.4
6.0
0.0
15.7
10.7

147
134
10,875
6,770
1,487
2,453
1,616
453
36
0
-1,941-704
10,171
3,318
6,852

0.2
0.2
17.7
19.5
11.2
41.0
53.2
8.7
6.5
16.5
11.1

9
1
12,052
7,857
1,484
2,932
1,470
359
189
0
-2,240-822
11,230
3,521
7,708

0.0
0.0
16.9
18.8
9.9
45.4
50.9
6.4
17.6
15.7
10.8

-137
-133
1,176
1,086
-2
478
-146
-94
152
0
-299
-117
1,059
202
856

-93.8
-99.3
10.8
16.1
-0.2
19.5
-9.0
-20.7
422.3
15.4
16.8
10.4
6.1
12.5

Other income
Other expenses
Operating profit
Revitalization
Development
RentalFund and Consulting
Property Management
Hotel
OthersCorporate expenses, etc.
Finance income/costs(net)Profit before tax
Income tax expenses
Profit for the year

61,543
34,793
13,261
5,979
3,038
5,232
557
0
-1,31918,723
8,215
3,038
2,701
2,850
1,653
432
0
-169
7,860
1,603

%
(forecast)
100.0
71,51056.5
41,79521.5
15,025
9.7
6,465
4.9
2,886
8.5
5,656
0.9
1,076
0.0
0
-1,39530.4
20,956
23.6
9,672
22.9
3,153
45.2
3,139
93.8
2,746
31.6
1,650
77.5
859
0
-264
12.8
8,912
2.6
1,934

Trading Businessyr/yr change

%
100.0
69.7
9.0
10.8
4.9
8.0
0.0
0.0
29.1
22.8
18.8
45.9
90.6
29.3
0.0
12.4
2.5

(¥ million,%)

%
100.0
58.4
21.0
9.0
4.0
7.9
1.5
0.0
29.3
23.1
21.0
48.6
95.1
29.2
79.8
12.5
2.7

(B) - (A)
9,966
7,002
1,763
486
-152
424
518
0
-75
2,233
1,456
114
438
-104
-2
426
0
-95
1,052
330

%
16.2
20.1
13.3
8.1
-5.0
8.1
93.0
5.7
11.9
17.7
3.8
16.2
-3.7
-0.2
98.7
56.0
13.4
20.6

Revitalization Business• Sales plan increased from 44 properties to 65
properties compared to the previous fiscal year.
•

Contracted properties profit margins are favorable.
Gross profit margin is expected to be 23.1%, samelevel as previous fiscal year.

Development Business• 1 Condominium (THE Palms Chofu Manor Garden)• 2 Commercial Facilities• 143 Detached Houses• Gross Profit Margin (forecast) 21.0%

Stable Business
Hotel Business• Established from this fiscal year.
(2 Own management, 2 Hotel lease)•

Establish own management system, promote newhotel developments

Personnel Structure•

Number of consolidated employees increased by
52 to 483 (FY2018 431 employees)•

Increased sales team from FY2019(from 4 to 5 Asset Management Departments)*The revenue of the Rental business has been partially transferred inconsideration of the establishment of a new Hotel Business. For
comparison, segment information for the FY2018 is presented based on
the revised classification in this material.

*The orange portion shows gross profit margin andoperatingprofit margin All Rights Reserved.
Copyright © 2019TOSEI CORPORATION,

28

Business Strategies FY2019 - Revitalization Business Revitalization

Gross Profit Margin46%

Aim to increase our market share of used properties by diversifying products and sales approaches.
Based on optimal revitalization plans with a focus on profitability, implement business models that enable us topromote businesses without depending on real estate price increases.

◆ Continue to provide the market with needs-oriented products as office demand and investment demand for real estate remain firm.
• Tap into every customer group by handling a broad range of properties• Increase offices in central area and income-generating apartments near stations
where there is a strong demand
Sales Plan and Measures• Due to demand for income-generating apartments and wooden apartments in
Restyling
suburban area decreased, plan to sale them earlier than scheduled Income-generating
Restyling
Revenue(¥ million)
Building over ¥2 B
• Hold book value base ¥55.2 billion inventories (As of Nov. 2018)
wooden apartment
1棟20億円以上
60,000

22.8%

23.6%

23.1%

50,00041,79540,26840,00034,7938,526

30,00020,00010,000(3 properties)

15,882

オフィス・
商業 Facility
マンション
Office/ Commercial

Gross Profit
Margin
売上総利益率20.0%

1 億円未満 ¥0.1B-¥0.3B
1 ～3 億円¥0.3B-¥1B
3 ～1 0億円
Under ¥0.1B

1 0 ～20億円 Over2¥2B
0 億円以上¥1B-¥2B

Sales Plan

4% 8%

6%

(Large Size)
15.0%
Building over ¥2 Billion
15,0425 BLs (average price ¥3,008M)

3,966

52%

47%

3,797
(3 properties)
14,3302017(Middle Size)
Building over ¥1 Billion
10.0%
3 BLs (average price ¥1,322M)(Small Size)
Building under ¥1 5.0%
Billion22,45757 BLs (average price ¥393M)

11,2662019

Wealthy Individual /General Corporation(Forecast)Funds・REIT
Acquisition Target of FY2019(¥ million)

Revenue
Gross profit
Operating profit
No. of sales (Restyling)
No. of sales (whole buildings)

FY2017 FY2018 FY2019
Full Year Full Year Forecast
40,26834,793
41,795
9,186
8,215
9,672
7,845
6,770
7,857
45 units 22 units 12 units
58 PJs44 PJs65 PJs

3% 11%

34%

Working on small-lot property investment product under theframework of the Act on Specified Joint Real Estate Ventures(Crowd Funding)•

Improve the efficiency of acquisition and the speed ofcommercialization by making faster decisions on acquisition
for small-sized properties.
Implement optimal revitalization plans while keeping
profitability ratios in mind

•

0.0%

2020

34%

Land

•
Individual Investors(37 properties)

2018

アパートメント
その他apartment
Income-generating• Implement sales strategies in response to the needs of customer group(10 properties)(45 properties)

0

18,966(4 properties)

Building 25.0%
over ¥1 B
1棟10億円以上
Building
under ¥1 B
1棟10億円未満(Delivery Bases)*Include non-current assets••

Focus on acquisition of mid-to large-sized properties
Aim for higher profits by creating opportunities with avariety of solutions

Examples of properties on sale in FY2019

¥62.5
¥39.6
Billion2018

Billion2019
TargetCopyright © 2019 TOSEI CORPORATION, All Rights Reserved.

29

Business Strategies FY2019 -Development BusinessDevelopment

Gross Profit Margin

15%

Offer optimal development plans that match to each location without being particular to any specific product type.
Continue to supply products that generate a high level of customer satisfaction under the Tosei brand.

Sales plan for FY2019 is 1 Condominium, 2 Commercial Facilities and 143 Detached Houses
Sales of THE Palms Chofu Manor Garden is favorable◆◆

Sales Plan and MeasuresWhole
building
１棟物件

売上高
Revenue• There are approx. ¥50 billion worth products on delivery basis(As of Nov. 2018)(¥ million)(百万)

Condominium
分譲マンション
Detached
House, Land, Contract
戸建・宅地・請負

20,000Gross
Profit Margin
売上総利益率
40.0%

18.8%

22.9%

21.0%

戸建・ 土地分譲

Detached House, Land17%
183 houses

オフィスビル・商業

42%

6% 5%

Condominium

5 properties

20.0%
15,00013,261892(1 Building)

10,00015,025

Sales Plan

1,302

2 Commercial Facility

7,040

1 Condominium(162 units + 1 units)

6,830
5,197

0

(121 houses)(114 houses)

2017

2018

29%
3 properties

Examples of properties on sale in FY2019

0.0%-40.0%-60.0%-80.0%

5,000
5,539

3
1 properties
properties-20.0%(88 units)

5,197

Logistics Facility
物流施設
ホテ ル
Office/Commercial Facility
Hotel

マンション

6,683

2019

(Forecast)-100.0%Detached Houses, etc.
(143 houses)-120.0%2020

THE Palms Chofu Manor Garden (162units)-140.0%

THE Palms Court Higashi-Nakano
Delivery scheduled next Fiscal Year

FY2017 FY2018 FY2019 Acquisition Target of FY2019
Full Year Full Year Forecast(Delivery Bases)
Revenue
5,197
13,261
15,025Gross profit
976
3,038
3,153
Operating profit
-408
1,487
1,484
¥18.8 ¥17.5
No. of sales (detached houses) 121 units 114 units 143 units
BillionBillionNo. of sales (condos)
88 units 163 units
No. of sales (whole buildings)
1 PJs
2 PJs
(¥million)

2018

2019
TargetTHE Palms Court Mitsuike-koen II
THE Palms Sagamihara Park Brightia(243 units)*Photos©areconceptual
images and may
subjectReserved.
to change.
Copyright
2019
TOSEI CORPORATION,
All Rights

30

Business Strategies in FY2019 ‐Development Business- Future Development
Schedule
Development Project Schedule (Holding / Scheduled to be completed)
2017

Hotel

Tosei Hotel Cocone Kanda (holding)Commercial Facility T‘S BRIGHTIA Minami Aoyama II (holding)

2018

T‘S BRIGHTIA Minami-Aoyama II

Condominium

T’S BRIGHTIA Chiba-chuo

THE Palms Setagaya Yutenji Master Place (89 units, 1 unite on sale)Commercial Facility T’S BRIGHTIA Chiba-Cyuo (Sold Dec. 2018)

T‘S BRIGHTIA南青山Ⅱ

Commercial Facility T’S BRIGHTIA Fujimidai (holding)
Condominium

THE Palms Chofu Manor Garden (162 units on sale)

2019
2020

Rental Apartment Yokohama-shi Hiranumabashi Rental Apartment ProjectT‘S BRIGHTIA Fujimidai

Hotel
Condominium

横浜市平沼橋マンション計画

THE Palms Sagamihara Park Brightia (243 units, on sale)Hotel

Tosei Hotel Cocone Ueno-Okachimachi Project

Logistics

Sagamihara-shi Logistics Project

Logistics

Hasuda-shi Logistics Project (Acquired the land at Dec. 2018)

Condominium

After
2021

Tosei Hotel Cocone Asakusa ProjectHotel

Toda-shi Condominium Project
Tosei Hotel Cocone Chiba-minato Ekimae Project

Commercial Facility Kichijoji 2cho-me Commercial Facility Project(Acquired the land at Dec. 2018)

Hotel

Tosei Hotel Cocone Asakusa II Project(contract has been completed but ownership has not yet been transferred)

Hotel

Tosei Hotel Cocone Tsukiji Project(contract has been completed but ownership has not yet been transferred)

Yokohama-shi Hiranumabashi
Rental Apartment Project

THE Palms Sagamihara Park BRIGHTIA

Condominium

4

Rental Apartment

1

Logistics

2

Commercial Facility

4

Hotel

6

Total

17

Sagamihara Logistics Project

Hasuda-shi Logistics Project*Photos©areconceptual
images and may
subjectReserved.
to change.
Copyright
2019
TOSEI CORPORATION,
All Rights

31

Business Strategies in FY2019 -Acquisition◆◆

The price of offices in central Tokyo remain at a high level
On the other hand, with respect to properties in the suburbs, prices will be adjusted for certain properties such asapartments for individual investors and income-generating apartments.

Acquisition Target for FY2019
The inventory of some properties was intentionally held in FY2018 due to the posting of higher-than-expected profits.
Acquisition expectations for FY2019 will remain at the same level as those for the previous year.
Acquisition Target (delivery basis)(expected disposition values)(¥Billion)

Target80

Target90

Target100

Beginning of Mid-termManagement Plan
2018

2019

2020

Contract Base¥76.4Billion
17.8
Contract Bases
Target80
Result58.5

Target80• Set the targeted amount of inventory at the amount equal to total
sales for a two-year period. Keep the balance between sales andacquisitions in mind.
(Inventories as of end on Nov. 2018 is ¥105.3Billion (disposition value
base. In FY2019 plan to sale ¥56.8 billion of inventories (Revitalization+ Development)).
• Change the product portfolio in response to changes in market
demand.

Decrease Stocks
2018

2019

Acquisition Plan & Policy

Increase Stocks

Income- generating property
with low liquidity

Income- generating property
with high liquidity

Located in suburban area,
Far from the station,
Rental apartment

Located near central area,
Close to the station,
Office BLs, Commercial BLs and Hotels

Investing Area : Develop the Greater Tokyo Area intensively.
Investing Target : Flexibly consider acquiring any real estate, irrespective of property types and price ranges.
Measure: Promote improvement of efficiency and acquisition capabilities.
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

32

Business Strategies FY2019 -Fund and Consulting BusinessGross Profit Margin

Fund &
Consulting

13%

Develop skills to respond to diverse fund arrangements.
Aim to increase AUM balances to ¥700 billion by capturing investors’ strong investment demand.

Increase Assets Under Management

Brokerage
Fee/Other
仲介手数料その他
Acquisition/DispositionFee
アクイジ・ディスポジ報酬

AMフィー
AM
Fee

Revenue(¥ million)

90.6%
3,000

2,000

2,802

売上総利益率GrossProfit Margin
100.0%

93.8%

95.1%

3,038

2,886

1,028

611

80.0%
Brokerage Fee/Other

437

60.0%
Acquisition/Disposition Fee

800,000

479
40.0%

479

663,359

700,000

552,208

500,000
400,000
300,000

1,000

1,837

1,529

AM Fee

20.0%

1,067
0

0.0%
2018

2019

2020

(Forecast)(¥million)

Target725,300 million

600,000

1,255

2017

(¥（百万円）million)

*1
CRE
CRE
PrivateFunds AM
私募ファンドREIT
REITAM

300,607200,000

170,114100,000
0421,792

448,186

91,789124,084

108,316

114,097499,184
392,114300,643

287,924

113,057
17,43429,35836,17745,99755,858'14/11'15/11'16/11'17/11'18/11'19/11(Target)

FY2017FY2018FY2019Full Year

Full Year

Forecast

Revenue

2,208

3,038

2,886

Gross profit

2,538

2,850

2,746

Operating profit

1,273

1,616

1,470

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

33

Business Strategies FY2019 - Fund and Consulting Business◆◆

Tosei Asset Advisors, Inc. (here after “TAA”) is entrusted with asset management from various customers
Tosei is first in Japan ranked by total AUM (Balance of discretionary and advisory contract assets under FIEA)
Ranking of real estate-related specific investmentcompanies by amount of assets under management

15 14 13 12 11 10 9 8 7 6 5 4 3 2 1(¥million)

Tosei Asset Advisors
トーセイ・アセット・アドバイザーズ

345,928
340,709

Sumitomo Mitsui
Trust Real Estate Investment Management
三井住友トラスト不動産投資顧問

PGIM Real Estate Japan
PGIMリアルエステート・ジャパン
Goodman Japan Limited
グッドマンジャパンファンズ
KOWA REAL ESTATE INVESTMENTADVISORS
興和不動産投資顧問
SPC Asset Management
SPCアセットマネジメント
DBJ Asset Management
DBJアセットマネジメント
Mitsui Fudosan Investment
Advisors,INC.
三井不動産投資顧問
PAG Investment Management
PAGインベストメント･マネジメント
ORIX Real
Estate Investment Advisors
オリックス不動産投資顧問
IDERA
CAPITAL MANAGEMENT
イデラキャピタルマネジメント
Prometheus
Investment
Advisors,Inc.
プロメーテ国際投資顧問
Mitsubishi Jisho Investment
Advisors, Inc.
三菱地所投資顧問
Goldman Sachs Asset Management
ゴールドマン・サックス・アセット・マネジメント
Spring Investment
スプリング･インベストメント

Assets Under Management by Asset Type and by Region
Managing various assets across a broad range of regions, mainly inthe 23 wards of Tokyo (653.8Billion)

220,623
189,636
182,357
171,998
169,995
164,271
146,173
137,552
134,983
106,474
93,08981,64380,4940

100,000

200,000

300,000

400,000(as of Jun. 2018)
Source: “Status of contract asset” Japan Investment Advisers Association(As of end of Nov. 2018)

Promote asset management, taking the environment, society and corporate governance into consideration
We are conducting CSR activities and making efforts to reduce environmental loads in every property which we undertake asset management.

OSJ Kinshicho TMK which is provided asset
management services by TAA as received a “GreenStar” and “4 Stars” rating in the 2018 Global Real
Estate Sustainability Benchmark (“GRESB”) Real
Estate Assessment. (Sep. 2018)

Sumida-ku Office BL and Yokohama-shi Office BL
which are provided asset management services by
TAA have received a Green Building Certification(Mar., Dec. 2018).

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

34

Business Strategies FY2019 -Rental Business, Property Management Business Gross Profit Margin

Rental15%

Accumulate non-current assets
steadily and increase stable rent
revenue from leasing◆ Increase the profitability of properties as soon as possible byusing the Company’s expertise on revitalization and leasing.

Gross Profit Margin Increase the type of properties for
Property
Management
property management and worked to win
8%
new contracts◆ Raise the profitability ratio by improving operation efficiency andincrease property under management.

売上高
Revenue

Restyling
Restyling

売上高
Revenue(¥ million)
(百万)

流動資産
Current Assets(¥ million)
(百万)

8,000

45.9%
6,237

45.2%

48.6%

固定資産
Non-current Assets
50.0%
売上総利益率Gross Profit Margin

29.2%

PM / BM Fee
PM・BM報酬など
Gross Profit Margin
売上総利益率

5,979

6,000
3,639

Repair Works, Commission and Fee
スポット工事・手数料報酬など

31.6%
29.3%

6,465

6,000

4,000

8,000

3,043

3,452

Rent income fromCurrent Assets

30.0%

5,232
4,637

4,000

1,399

1,617

5,656
Repair Works, Commission
20.0% and Fee

1,626

10.0%
2,000
2,493

2,857

2,962

2017

2018

2019

Rent income from
Non-current Assets

2020

0

2,000

-10.0%(¥million)

Revenue
Gross profit
Operating profit
Current assets *1(occupancy rates)*2
Non-current assets *1(occupancy rates)*2(Forecast)

FY2017Full Year
6,237
2,864
2,581
63 PJs84%
26 PJs99%

FY2018Full Year
5,979
2,701
2,453
62 PJs84%
24 PJs93%

FY2019Forecast
6,465
3,139
2,932

3,237

3,614

4,030

2017

2018

2019

PM / BM Fee

0

0.0%

(¥million)

Revenue
Gross profit
Operating profit
No. of property
under management(Forecast)

2020

FY2017Full Year
4,637
1,356
278

FY2018Full Year
5,232
1,653
453

665

622

FY2019Forecast
5,656
1,650
359
682
(Target)*1 The number only includes Current and Non-current assets which have rent income.
*2 Occupancy rate is room number bases*The revenue of the Rental business has been partially transferred in consideration of the establishment of a new hotel business in the fiscal year ending November 30, 2019. For comparison, segment
information for the fiscal year ended November 30, 2018 is presented based on the revised classification in this material.
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

35

Business Strategies FY2019 -Hotel BusinessGross Profit Margin

Hotel
◆
◆

Established as a new segment in FY2019 to make it grow as a new source of revenue. Aim toestablish the Tosei brand by offering hotels that generate a high level of customer satisfaction.

4%

Leasing of hotels and management of hotels by the Company. (Hotel lease : 2, Own management : 2 )Focus mainly in the Greater Tokyo Area and gradually increasing the number of facilities through the careful selection of locations.

Revenue

Hotel dedicated to accommodations with modern Japanese concepts
under the theme of “Stay in Comfort”

100.0%(¥ million)

77.5%

2,000

79.8%
80.0%
Hotel
Lease
ホテル賃貸
Own
Management
ホテル運営
60.0%
Gross
Profit Margin
売上総利益率

1,076
1,000

207

40.0%

Hotel Lease

557
198

20.0%

869

Tosei Hotel COCONE Kanda

Own Management358
0(¥million)

Revenue
Gross Profit
Hotel’s GOP
Depreciation Cost;
Depreciation Expense
Operating Profit

2018

2019

2020

(Forecast)
FY2018 (Full Year)

Own
Hotel Lease
Management
358
199
351
81
185
-

Tosei Hotel COCONE
Ueno-okachimachi*2

Tosei Hotel COCONE
Asakusa*2

Own Management

0.0%

2017

Tosei Hotel COCONE
Ueno

FY2019 (Forecast)
Own
Hotel Lease
Management
557
869
207
432
833
27
185
420
-

Total

Total
1,076
859
420

Tosei Hotel Cocone Kanda

111 rooms

operatingTosei Hotel Cocone Ueno

126 rooms

operating (Conversion hotel)

Tosei Hotel Cocone Asakusa

133 rooms

scheduled to open in May 2020

Tosei Hotel Cocone Ueno-Okachimachi

171 rooms

scheduled to open in Jul. 2020

Tosei Hotel Cocone Chiba-minato Ekimae

224 rooms

scheduled to open after 2021

Tosei Hotel Cocone Asakusa II*3

80 rooms*4

scheduled to open after 2021
scheduled to open after 2021

230

0

230

258

0

258

Tosei Hotel Cocone Tsukiji*3

201 rooms*4

-45

81

36

163

27

189

Total 7 hotels

1,046 rooms*1 Hotel Lease’s Depreciation Cost; Depreciation Expense is included in sales cost
Hotel Lease (Operated by third party)

138 rooms

hotel leaseTama-shi Income-generating Hotel

79 rooms

hotel lease

Chiba-shi Makuhari Income-generating Hotel

217 rooms

Total 2 hotels
Tama-shi Incomegenerating Hotel

Chiba-shi Makuhari
Income-generating HotelGrand Total 9 Hotels

1,263 rooms*2 Photos and name of the hotel are conceptual images and may subject to change.
Copyright
2019 TOSEI CORPORATION, All Rights Reserved.
*3 Land already acquired *4 Room number are plans
and may©change

36Topics - “Tosei Hotel COCONE Ueno” Opened in Dec. 2018
◆ The first property owned and managed by the Company that was converted from a used office building into a businesshotel by utilizing the Tosei Group’s unique expertise in real estate revitalization.
◆ Renovated to a attractive hotel by fully utilizing original structure and facilities of the office building.
Targeting a broad range of customer groups-Comfortable place of stay that brings joyous tune to the hearts of people-• Efforts were made to design a hotel with a range of features that offer acomfortable stay to not only business customers but also foreign anddomestic tourists by taking advantage of the location’s characteristics.
• Some guest rooms feature unique design that is not common in a businesshotel.

Modern Japanese concept room with Tatami

Family room with two double‐deck beds

Efforts will continue to be made to convert properties into
hotels in addition to the construction of new hotels going forward• Higher profitability (NOI) than offices is expected if an appropriate location isfound.

Tosei Hotel COCONE Ueno
Location: 3min walk from Ueno St.
Units: 126 units
Construction: 2005 (13 years old)
Conversion Ended: 2018
Structure: SRC 11 above & 2 under• Compared to new construction, it is eco friendly to use existing stocks. Also,
enables to acquire a hotel in an area where it is difficult to acquire land fordevelopment.
• Shorter construction period, smaller initial capital costs compare to new
construction hotel.
(Construction period:
New construction about 2 years, Conversion about 8 months)(Construction costs is about 40% of newly-built)
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

37

Trends in Dividends
We will aim to increase earnings per share through sustained profit growth.
By doing so, we seek not only to pay dividends consistently but also to increase dividends.
For FY2019, we expect to pay a dividend of ¥37 per share, or a payout ratio of 23.3%.
We are considering increasing the payout ratio gradually.
Trends in Dividends
FY2013

FY2014FY2015FY2016FY2017FY2019(Forecast)

FY2018Annual Dividends Per
Share(¥)

8.00

12.00

16.00

22.00

25.00

30.00

37.00

Payout Ratio(%)

18.6

20.2

18.7

19.1

19.6

21.2

23.3

Current Share PriceMarket Capitalization

Net Book Value

Unrealized Gain (After Tax)*

Net Asset Value*

ROE(As of 7 January, 2019)(As of end of November, 2018)(As of end of November, 2018)(As of end of November, 2018)(Result of end of FY2018)¥43.0 billion¥52.0 billion¥15.1 billion¥67.1 billion

14.0%

Stock Price (A)Book Value per Share (B)Unrealized Gain per Share*¥887.00¥1,071.63¥312.19PER

PBR (A) ÷(B)Price/NAV Ratio

5.59times

0.83times

0.64times

6.1%* Net Asset Value = Net Asset Value + Unrealized gains (after tax)
* Fair value of fixed assets are has been calculated by the Company based “Real Estate Appraisal Standards”.
For details, please see page 15.
* Corporate tax is calculated at 33%

Net Asset Value per Share

ROA

*(C)

(Result of end of FY2018)¥1,383.82

7.8%
ROIC
(Result of end of FY2018)

WACC

Cost of Shareholder’s Equity(Data from Reuters as of January 2019)(Data from Reuters as of January 2019)

3.45%

7.76%

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

38

III. Reference Materials for the first time visitors to Tosei

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

39

Group Overview As of Nov. 30, 2018
Company Name
AddressTOSEI CORPORATION

February 2, 1950

Paid-in Capital¥6,554,139 thousand

Representative

Seiichiro Yamaguchi, President and CEO

Fiscal Year-end

November 30

Employees

181 (Non-consolidated) 431 (Consolidated)

Stock Listing

Tokyo Stock Exchange, First Section (8923)
Singapore Exchange, Mainboard (S2D)◼ Total outstanding shares(As of Nov. 30, 2018)

Board of Directors
constituted by 7 directors(including 2 Independent directors)◼

Audit & Supervisory Board
Constituted by 4 members(2 full time, 2 part time auditors. All fromoutside the Company and independent
audit & supervisory )◼

Organizational form
Company with Audit & Supervisory Board
Members◼

Nominating and Compensation Advisory
Committee

4-2-3 Toranomon, Minato-ku, Tokyo

Date Established

Share Status◼

48,544,800 shares◼ Number of shareholders
5,395◼ Shareholder composition
Individuals/Other
Foreign companies
Other companies
Financial institutions
Securities companies
Treasury Stock38.43% (18,655,444)
34.60% (16,796,647)
12.68% (6,153,710)
12.56% (6,096,000)
1.74% (842,894)
0.00% (105)Corporate
Governance
SystemMain AffiliatedCompanies

Investment TrustManagement
Company

Tosei Community Co., Ltd.
Tosei Asset Advisors, Inc.
Tosei Revival Investment Co., Ltd.
Tosei Singapore Pte. Ltd.
Urban Home Corporation
Tosei Hotel Management Co., Ltd.
Tosei Hotel Service Co., Ltd.
Tosei Reit Investment Corporation (3451)**The investment corporation, whose assets are managed by
Tosei Asset Advisors, Inc., a wholly-owned subsidiary of Tosei
Corporation

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

40

History of Tosei Corporation
1950: Established as Yukari Kogyo Co., Ltd,the predecessor of Tosei Corporation
1983: Tosei Building Co., Ltd.
1994: Mr. Seiichiro Yamaguchi assumed
the role of President and CEO

Revenues(¥ (Billion)
100 million)

800

Registered for
Financial Instruments Business
Registration; Type II Investment
Management Business; Investment
Advisor and Agency Business
Introduced commercial building
Brand T’s BRIGHTIA

Notes:
1. TRI: Tosei Revival Investment Co., Ltd.
2. TC: Tosei Community Co., Ltd.
3. TAA: Tosei Asset Advisors, Inc.
(Name changed from Tosei REIT Advisors, Inc. in April 2008)
4. Tosei Singapore: Tosei Singapore Pte. Ltd.
5.Tosei Hotel Management Co., Ltd.
6. Urban Home Corporation

Tosei Reit Investment
Corporation Listing

Relocated its head office
to Toranomon

Began developing office andcommercial buildings

500

Set up private
placement fund

400

100

Changed its name to current“Tosei Corporation”

Established TRI*1
Acquired 100% ownership of TC*2
Established TAA*3

600

200

Acquired 100%
ownership ofUrban Home.*6

Listed on Singapore
Exchange

Started developmentof Logistics

Started Own
Hotel Management

Listed on Tokyo Stock
Exchange Second Section

700

300

EstablishingTosei HotelManagement*5

Launched
Revitalization businessConducted
real estate M&A
through LBO

Changed its name toRegistered for Real Estate
Investment Consulting“Tosei Fudosan”
Begandeveloping
condominiums

EstablishedTosei Singapore*4
Listed on
Tokyo Stock
Exchange,
First Section

Launched
Restyling business
Listed on
JASDAQ

Began developing
detached houses

0'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19(Forecast)

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

41

The Tosei Group's Mission
The Tosei Group's Mission
Create new value andinspiration*4 in all aspects of real estate*3
as a global-minded*1 group of
seasoned professionals*2.

*1 Global-minded•••*2 Professional

•
•
•
•

*3 All aspects of real estate•••*4 New value and inspiration••

Dually listed on the Singapore Stock Exchange. Efforts are being to attract inbound investments for Japan and promote outbound investments.
Adopted the International Financial Reporting Standards (IFRS). Disclosure documents are disclosed in both Japanese and English.
Have comprehensive knowledge of transactions conducted in the greater Tokyo area with our business focused on the area. Have a good
grasp of area characteristics, rental needs, investor needs, investors’ trading trends, and expected yields, among other matters.
Offer optimal plans for revitalization and development for clients by leveraging skills and expertise that we have cultivated over years.
Have an internal organization that functions as a first-class architect office.
Investment Management Business, Investment Advising and Agency, consultant function based on Type II Financial Instruments BusinessBroad product range (office buildings, commercial facilities, hotels, condominiums, detached houses, logistics)
Broad customer base (real estate funds, REITs, general business corporations, wealthy individuals, end users))
Diverse means of acquisitions (trust beneficiary rights, real estate M&A, real-estate collateralized loans)
Improve profitability through the revitalization of aged properties from both tangible and intangible perspectives. Create added-value inexisting real estate.
Provide residential and office environments that are eco-friendly, secure, safe, and sophisticated.
Contribute to the creation of a sustainable society through business (reginal vitalization, community development, measures to deal with an
aging and diversifying society)
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

42

Business Strategy I. Flexible Portfolio Management through 6 Businesses
Tosei operates its business mainly in grater Tokyo area as a comprehensive real estate company.
The mutually complemented relations through the five businesses enable flexible portfolio management to cope withchanges in the market.

Established Hotel Businessfrom Dec. 2018

6Businesses
Real Estate Transaction Businesses

Stable Businesses● Revitalization BusinessIn our Revitalization Business, Tosei acquires existing officebuildings and condominiums, and resells them as revitalized
real estate after improving their equipment and designs,
installing eco-friendly facilities and undertaking otherrenovation work.
Project period: a half year to a year and a half

● Rental BusinessIn our Rental Business, Tosei generates steady income by leasing office buildings, condominiums, and otherproperties owned by the Group, mainly in Tokyo. As of Nov. 30, 2018, Tosei holds 86 income-generating properties.

● Development BusinessIn our Development Business, Tosei acquires land fordevelopment, and develops and sells new office buildings,
condominiums, residential houses, commercial buildings,
hotels and other buildings, taking into account the needs andcharacteristics of the area. Tosei also has an in-house, firstclass architect office eager for quality planning and design
skills and fully making most of these in "manufacturing.“
Project period: one to two years● Fund and Consulting BusinessIn our Fund Business, Tosei is engaged in the asset management of properties owned by real estate funds andTosei Reit, as well as acquiring and selling properties to meet the needs of a wide variety of investors, and offering
advisory services to companies.
As of Nov. 30, 2018, the balance of assets under management totaled around ¥663 billion● Property Management BusinessIn our Property Management Business, Tosei undertakes general property management operations, such as
management, cleaning and renovation work including fire protection inspection on condominiums and officebuildings through Tosei Community Co., Ltd. As of Nov. 30, 2018, the number of properties managed by theCompany was 622. (Office ,Hotel, School and Others: 390, Residential ：232.)● Hotel BusinessBusiness for managing or leasing hotels owned by the Company. There are four such hotels, including two
Company’s own brand hotels, “Tosei Cocone Hotel” (as of Nov.30, 2018)
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

43

Business Strategy II. Wide Range of BusinessOffer a broad range of services in all aspects of real estate.
Aim for business expansion and increase in business areas by maximizing synergy of the related business.
Fund Management(AM)
Revitalization

Real Estate Management(PM/BM)

Development

Consulting

M&A/ Acquisition of realestate collateralized loans

Brokerage

RentalHotel Management

One-stop solutions for investors from purchase to sale of real estate.
Acquisition• Consulting• Brokerage

Maximizing Profit / Management• Development

•
•
•
•

DisposalValue Up (value-added) • Asset Management
Lease Up
• Property Management
Improve Profitability• Building Maintenance
Cost Control
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

44

Business Strategy III. Tosei’s Real Estate Revitalization BusinessOur real estate solutions create added value not seen in repair or resale alone.
Regenerating value,
using Tosei’s expertise Revitalized building

Advantages of revitalizing used properties

Improving-functions of facilities-safety performance-energy saving performance

Comparison between the use of existingused properties and new properties

Aging building

Construction costs (especially SRC cost) continuing to rise, revitalized
used-properties have become more affordable and attractive-profitability throughleasing activities
Competitiveness is lost, andthe occupancy rate andrents have fallen.

Profitability has improved.
The value of the real estate
has increased.

Investment Office
Newly Built Building ¥4.0 billion

Strength of Real Estate Revitalization
A business structure that enables us to do business without depending on market
price increases.
Market Price
Acquire aged/deteriorated
property inacquisition comparatively cheap priceProfit 10%+

Regenerate value by
Revitalizing

Profit 10%

For revitalized used properties, the investment
amount can3,500
be limited to a low level.
Therefore, a high yield will be realized.

Acquisition Cost

Tosei’s Profit

220
160

building Priceand renovation
1,500 cost

460

Acquisition2,000/ Sales Cost•

Acquire in comparatively cheap price (10%) + Added Value (10%) =20% Profit

Up Cycle••

20% + α(Market Price Rise) = More than 20%
Adjust the amount of property acquisition to fit the demand.

••
Down Cycle•

Able to handle price decreases smaller than 20%.
No need to sell properties quickly because they are used ones. Possible toreceive rent revenue from leasing by holding such properties.
Mainstay products can be changed to product groups for different customer
groups or those with different price cycles according to demand trends.

110

Acquisition / Sales
計 Cost2,000

30(¥million)

Land Price

1,430

当社利益
Construction Cost
当社取得・再生・販売コ[Example] スト

・10 story office buildingnear Kinshi-cho station・basic floor建物代・改修費
About 500m2
・Floor space About 4,700m2
・Lending area
About3,900m2
土地代（土地原価）

1,000

Strategy

Flat

Acquisition Cost
Tosei’s Profit+買主取得コスト

Over 25 years Buildings¥2.32,300
billion2,500

market price doesn’t increase• Implementation of sales strategies in response to cyclical changes in the realestate market.

4,000
60
400

3,000

A business model that has＝ 20% profit margin even

• Quickly respond to demand trends in the market by offering a variety of
products, exit options and revitalization expertise.

Real Estate Price Cycle

4,000

1,430

Land Price

500
0

Rent
NOI
CAP

¥11,400 1/ tsubo

2 / tsubo¥13,650(1.2 times of used building)¥140 million / year ¥170 million / year
6.2%
4.2%

building
Copyright © 2019Revitalized
TOSEI CORPORATION,
All Rights Reserved.

45

Business Strategy III. Tosei’s Real Estate Revitalization Business
Improve existing building’s functionality and profitability by using two value-added approach
Revitalization(hardware)
X
Revitalization(utilization)

Design, Energy saving performance, Security and Functions of facilities, etc.
Increase the appeal of buildings through the repairmen and restoration of exteriors,
facilities and etc. to heighten property characteristics.

Change purpose of uses, Attract good tenants, Reduce costs
Propose the new ways of using property and provide solutions to improving profitability
through measures such as reducing expenses and recovering the occupancy rate .

Revitalization (hardware)
To create the best value for our customers, Tosei provides safety & security,
sophistication & comfort, and sustainability & eco-friendliness.
Safety and security
Value improvement for security, disaster prevention, community revitalization,and conservation

Our “In-house Value Up Lab” fornew design research and product planning

Revitalization (utilization)
Renovation of floors in accordance with needs of tenants(change of the purpose of uses and floor plans)
Examples<Renovation of commercial facilities/offices>- Office=> Hotel- Cram school=> Office- Store=> SOHO specifications

Refinement and comfort<Renovation of apartments for rent>- Company house=>Lifestyle-oriented condominiums=>Apartment with soundproof equipment
capable of supporting musicians=> Convert into a shared house

Value improvement for scenic views, nice exterior appearance, amenities,
and enhanced convenience

Sustainability and environmental friendliness
Value improvement for sustainable energy conservation, cost cuts,and resource saving

The open space in the center has a wood deck, wherevisitors can make themselves at home.

Grovesnor Square
Commercial Property Built in 1990

Toyo-cho Tosei Building(Build in 1993 as a office)Introduction of wall greening
system, LED light and EV
disaster prevention cabinet
and wooden deckconstruction, etc..

Toranomon Tosei Building(Build in 2006 as a office)Tosei has obtained the A rank certificationof the Comprehensive Assessment System
for Built Environment Efficiency (CASBEE)
for existing buildings.

T-Rhythmic Soka Apartment

ARDEN Fujigaoka Apartment

A company dormitory renovated into a lifestyle-oriented
Converted a company dormitory into
condominium tailored to the taste of a music loving resident in whicha shared house.
musical instruments can be played freely thanks to soundproofing.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

46

ESG Activities - Environmental Initiatives The Tosei Eco Declaration has been established and Eco-Missions consisting of three action policies govern the business activities. The Grouphas been striving to reduce the burden on the global environment by promoting human and eco-friendly corporate activities.

Tosei Group Eco Declaration
In order to achieve our slogan "Heart into the City", the Tosei Group declares its intention to promote corporate activities that are friendly
to people and the environment and to work to reduce burdens on the environment, while keeping true to our philosophy "To create newvalue and inspiration in all aspects of real estate."

Eco-Mission(Action Policy)

Mission 1
Promote environmental practice throughbusiness activities

Mission 2
Comply with environmental laws, regulations
and raising of environmental awarenessWe strive to minimize environmental burdens byintroducing measures to contribute to energy
conservation and resource saving in the real-estate
revitalization.

complying with environmental laws and regulations.
We will also conduct various measures aiming toincrease Tosei group employees environmental
conservation awareness.

Mission 3
Inform our activities to stakeholder
Starting with the announcement of “EcoDeclaration” and “Eco Mission”, we will promote
open communication with the society whileproviding information on our progress and results.

Reduction of the burden on the environment through business◼ Eco-friendly revitalization of real estate
Rooftop and Wall Greening
Greened a cumulative total of 76 buildings
with an area of approx. 3,673m2 have been
as of Nov. 30, 2017.

◼ Introduction of eco-friendly products

In the revitalization and development of office buildings and residential houses, ecofriendly products are introduced according to the characteristics of each property,
considering energy saving, conservation of resources and other factors from the list of suchproducts, which includes more than 40 items.

Eco-friendly condominium
THE Palms Tukishima
Introducing solar power generating system androoftop gardening
Development of Net-Zero Energy House “ZEH”

Utilization of unused company house
Converted unused employee dormitories
to concept condos• Musician-friendly condo withsoundproof single-room units.
• Condos with common areas◼ Environmental Certification

Three office buildings developed by Tosei have obtained the A rank
certification of the Comprehensive Assessment System for Built Environment
Efficiency (CASBEE).
・ Heiwajima Tosei Building・ Kamata Tosei Building
・ Toranomon Tosei Building
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

47

ESG Activities - Social Initiatives Changes in the social environment have created issues such as a declining birthrate and aging population, diversifying lifestyles, andnatural disasters. The Tosei Group addresses those issues through a wide range of activities including creation of comfortable
residences, creation of comfortable working environments, and support for disaster-stricken areas.

Costumers

Employees

Creation of Safe, Secure and Comfortable Residences and Environment

Cultivation of Employees◼ Product Planning by Women - "Irodorie“ Project -To develop a global-minded group of seasoned professionals
as set forth in the Tosei Group's corporate
philosophy, the Tosei Group has
provided human resource training
and adopted a personal
development support system.

The Group proposes homes that are comfortable for all family members
by focusing on the ideas of women, who support family life throughhousehold tasks, childcare and other activities. In product development,
employees from many generations are asked to provide opinions aboutproblems with housework and childcare, the ideal floor plan and storage
spaces. Those opinions are reflected in the products.

Support Work Life Balance◼ Barrier-free House
The Tosei Group provides barrier-free houses, “Withstyle”, by applying a unique design code consistingof 10 items, which is based on the concept of a permanent residence. Partition walls that can be
flexibly changed according to the lifestyle and kitchens for wheelchair users, among other similar
products, are introduced. Tosei creates house designs suitable for any situation in a long life.
子育てファミリー

子供独立後世代

車椅子生活◼ Creation of a Community Space

Support for Disaster-Stricken Areas

Painting rusted playgroundequipment at nursery center

Lounge◼ Quality Control - For Our Customer's Safety and Security Implementation of pile and structure audit by a third party
Quality control in accordance with ISO9001 rules
Provide questionnaires to our customers

Communities
Continuing voluntary activities
to support areas affected by theGreat East Japan Earthquake
since 2011.

Tosei carries out construction work to improvethe value of existing real estate and creates
spaces for exchange in offices and houses. It
seeks to create a working/housing environment
where people can work/live comfortably withspiritual wealth.

•••

The Group takes steps to maintain the sound physical andmental health of its employees by providing a stable officeenvironment and mental health care, among other actions.

Kids Room

Environmental Awareness-raising Activities
Promote in-house ecology
activities and conduct
volunteer activities out side
the company.
Participation in cleaning activities
Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.
48

ESG Activities - Governance Initiatives We will maintain sound business activities to achieve sound growth by responding promptly and accurately to changes in
the operating environment.

Corporate Governance
The Tosei Group aspires to become a group of companies that make a meaningful contribution to theirshareholders, employees, business partners, and other stakeholders by promptly and accurately responding tochanges in the management environment and continually carrying out business activities that enable theGroup to achieve sound growth.
The Group is determined to make efforts in a unified manner, from the top management down to each
employee of the Group companies, led by the Board of Directors, to set up a system which is credible to all
stakeholders.

Three Important Items in Corporate GovernanceCompliance
We place compliance at the top of our agenda andraise awareness of it from top management to all
employees of the Group companies■ Compliance Education

Risk Management

Information Disclosure

Assuming every possible risk, we prepare andpractice responses for daily risk and emergency
conditions.

We practice disclosure appropriately and on atimely basis to all stakeholders including
shareholders.

■Information Disclosure■ Risk Management Cycle
1 Company

wide risk
evaluation

2 Risk Analysis

Preventive Measures
Problem Clarification

3 Draw Up Individual

Preventive Measures
Follow the Manual

•
•
•
•

Training for insider trading prevention, Training
on action against anti-social forces
Mental health Seminar
Compliance slogans posters
Mail magazine to enhancing awareness ofcompliance•••

Establish and operate “Risk Compliance
Committee”
Monitor risk management on an ongoing basis
Set up a Business Continuity Plan (BCP)•••

Hold financial results briefings
Timely financial and corporate status reportingin Japanese and English
Expand the IR information available on our
website (evaluated by external assessment )Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

49

Summary of Properties Sold – Property Size / Revenue (¥million)（百万円）

Over ¥3 billion
30億円以上50,000

10億円以上30億円未満
Between ¥1 and ¥3 billion

45,000

1億円以上10億円未満
Between ¥100 and ¥1,000 million
43,064
1億円未満

47,90645,308Less than ¥100 million

3,637

40,85440,00038,5093,373

35,00033,091

32,591
24,61430,00027,44526,517

10,102

11,016
20,771

4,088

16,862

16,3136,450

25,0008,401
19,49320,00015,00010,00010,998
8,525

14,8672,119

0

17,297

5,422

6,218

6,251

7,351

6,294

16,965

1,076

1,718

4,693

11,805

12,6693,160

14,065

13,356

13,27412,086

9,456

8,213

9,510

8,877

7,264

10,85011,785

2,418
12,166

8,407
5,000

3,530
4,388

8,513

12,237

19,831

7,949

7,388

7,131

6,832

2,818

2,571

1,895
1,594
1,221
FY2005
FY2006
FY2007
FY2008FY2009FY2010 '11/11期
FY2011 '12/11期
FY2012 '13/11期
FY2013 '14/11期
FY2014 '15/11期
FY2015 '16/11期
FY2016 '17/11期
FY2017 '18/11期
FY2018'05/11期 '06/11期 '07/11期 '08/11期 '09/11期 '10/11期

No. of projects
FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018Over ¥3 billion

0

0

1

2

2

1

0

0

2

1

1

2

1

3

Between ¥1 and ¥3 billion

5

6

6

4

2

4

4

1

1

10

7

6

12

4

Between ¥100 and ¥1,000 million

16

22

16

28

23

15

9

6

9

23

19

24

39

34

Less than ¥100 million

2

3

3

6

4

7

18

23

31

26

25

42

48

47

Total

23

31

26

40

31

27

31

30

43

60

52

74

100

88

*The condominiums, detached houses and Restyling are counted as each project being one property* The condominiums and detached houses are classified by one unit’s price.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

50

Summary of Properties Sold – Property Type/Sales Base –
その他
Other

(件数)
(Properties)

100

戸建
Detached House

100

マンション
Condominium

9

オフィス・商業・ホテル
Office/Commercial

90

88
Others

9
80

10%

74
35

70
19

60

37

60

50

43

40
40

31
2

23
20

1

31
3

4

8

26

6

3

31
27

1

3
15

14

14

30
3

8

21

FY2007'07/11期

FY2008'08/11期

Residential

21

10
28
13

19

17

15

14
8

FY2009'09/11期

FY2010'10/11期

FY2011'11/11期

FY2015'15/11期

FY2016'16/11期

30

20

18
9

76%
34

14

18

9

FY2006'06/11期

1
7

19

0

FY2005'05/11期

11

7

22

10

15

52

7

4

30

7

4

6

FY2012'12/11期

FY2013'13/11期

FY2014'14/11期

22
12

FY2017'17/11期

Office14%

FY2018'18/11期* The condominiums, detached houses and Restyling are counted as each project being one property.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

51

Inventory Breakdown –Properties in Inventories as of Nov. 30, 2018(Properties)
(件数)

120

千葉・埼玉ほか
Chiba,
Saitama, Others
神奈川
Kanagawa
東京都下Tokyo(except the 23 wards of Tokyo)
東京23区
The 23 wards of Tokyo

116
102

102

22

24

23

100

91
8
5

80

72
65

61
60

3
2

8

6

55

3

3
1 2

54

1

41
40

78
56

5
2 1

43
2
4
4

55

49

2
5
2

6
4

'09/11'10/11

5

7

17
23

9
12
6

19

19
19

9

Tokyo

2
5
2

53%
54
45

33

68

38

20
33

31

68

48
40

44

43
36

29

0
'05/11'06/11'07/11'08/11'11/11'12/11'13/11'14/11'15/11'16/11'17/11'18/11* The condominiums, detached houses and Restyling are counted as each project being one property.

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

52

Please visit our website.

For Contact

Accounting Department
Tel：+81 3-3435-2865
Fax：+81 3-3435-2866
URL :https://www.toseicorp.co.jp/english/

DISCLAIMER
Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forward-looking statements
include but are not limited to descriptions of future events and performance containing words such as or similar to “believe,” “expect,” “plan,” “strategy,”“anticipate,” “forecast,” and “estimate,” and are based on judgments derived from the information available to the Company at the time of publication. Various
factors could cause results to differ materially from any projections presented herein. The Company reserves the right to maintain or change its projections
regardless of any new information, conditions or changes in performance. These materials are for informational purposes only, and should not be construed as arecommendation to invest in the Company.

53

Copyright © 2019 TOSEI CORPORATION, All Rights Reserved.

53