This document has been translated from a portion of the Japanese original for reference purposes only. In theevent any discrepancy arises between this translated document and the Japanese original, the original shallprevail. The Company assumes no responsibility for this translation, or for direct, indirect, or any other form ofSecurities Code: 8804
damages that may arise from using this translation.
Securities Code: 8804
March 4, 2016
To Those Shareholders with Voting Rights:
Hajime Sakuma
Representative Director,
President & Chief Executive Officer
Tokyo Tatemono Co., Ltd.
9-9 Yaesu 1-Chome, Chuo-ku, TokyoNOTICE OF THE 198th ORDINARY GENERAL MEETING OF SHAREHOLDERS
You are cordially invited to attend the 198th Ordinary General Meeting of Shareholders of the Company. The
meeting will be held as described below.
If you are unable to attend the meeting, you are asked to review the Reference Documents for the General
Meeting of Shareholders and exercise your voting rights by 5:30 p.m., Monday, March 28, 2016, by either one of
the following methods indicated on next page.
1. Date and Time:

10:00 a.m., Tuesday, March 29, 2016

2. Place:

Tokyo Convention Hall, 5F Tokyo Square Garden
1-1 3-Chome, Kyobashi, Chuo-ku, Tokyo

3. Agenda of the Meeting:
Matters to be reported:

Proposals to be resolved:
Proposal No. 1
Proposal No. 2
Proposal No. 3
Proposal No. 4
Proposal No. 5

The Business Reports, the Consolidated Financial Statements and the Financial
Statements for the 198th Fiscal Term (from January 1, 2015 to December 31,2015), as well as the results of audits by the Accounting Auditor and Audit andSupervisory Board of the Consolidated Financial Statements
Appropriation of Surplus
Partial Amendments to the Articles of Incorporation
Election of One (1) Director
Election of Two (2) Audit and Supervisory Board Members
Election of One (1) Substitute Audit and Supervisory Board Member-1-Guide to Exercise of Voting Rights

Please exercise your VOTING RIGHTS, i.e., your rights
to participate in the management of the Company.

Voting rights are important rights of shareholders to participate in the management of the Company.
Voting rights can be exercised in the following ways.
Please exercise your voting rights after reviewing the Reference Documents for the General Meeting of
Shareholders.

 If you are attending the General Meeting of Shareholders
Date/time of convocation of the General Meeting of Shareholders
10:00 a.m., Tuesday, March 29, 2016
Please present the enclosed Voting Rights Exercise Form at the reception desk of the venue.
Please bring this booklet with you for your reference.
If you wish to exercise your voting rights by proxy, you may appoint one other shareholder who owns theCompany’s voting shares as your proxy; in such case, however, the submission of a document proving yourauthorization of said shareholder as your proxy is required.

 If you cannot attend the General Meeting of Shareholders- Exercise of voting rights in writing (by postal mail) Exercise deadline
Form must arrive by 5:30 p.m., Monday, March 28, 2016
Please return the enclosed Voting Rights Exercise Form indicating your approval or disapproval of the proposal
to be made at the above meeting, so that the Company receives it by the exercise deadline.
- Exercise of voting rights by electromagnetic means (via the Internet, etc.) Exercise deadline
5:30 p.m., Monday, March 28, 2016
Please access the designated website (http://www.it-soukai.com/) provided for exercising your voting rights andfollow the instructions on the screen to indicate your approval or disapproval of the proposal.
In the event that you exercise your voting rights in duplicate by electromagnetic means (via the Internet, etc.) andby returning the Voting Rights Exercise Form, those votes cast via the Internet, etc. shall be deemed effective. In
the event that you exercise your voting rights more than once via the Internet, etc., the last cast vote shall bedeemed effective.

- Of the documents that should be attached to this Notice, Matters Related to Subscription Rights to Shares andthe Structures to Ensure Appropriateness of Business Operations and an Overview of Operational Status in theBusiness Reports, Notes to Consolidated Financial Statements in the Consolidated Financial Statements, andNotes to Non-Consolidated Financial Statements in the Financial Statements are posted on our website(http://www.tatemono.com/ir/) (available in Japanese only) in accordance with the laws and Article 16 of the
Articles of Incorporation of the Company, and not included in the Attached Documents Related to Matters to
be Reported. The documents provided on our website above have been audited as part of the Consolidated andNon-Consolidated Financial Statements when the Audit Report was prepared by the Audit and Supervisory
Board Members and the Accounting Auditor.
- After preparation of this document, in the event that changes are made to any of the Reference Documents for
the General Meeting of Shareholders, Business Reports, or Consolidated and Non-Consolidated Financial
Statements, the amended documents will be posted on our website mentioned above.
- The voting results on the resolutions of this General Meeting of Shareholders shall be posted on our website
mentioned above.

-2-

Reference Documents for General Meeting of Shareholders
Proposal and references
Proposal No. 1:
Appropriation of Surplus
The business environment is foreseen to remain unpredictable moving forward, however, the following year-end
dividends for the term are proposed in consideration of the business performance for the term.
Year-end dividends:(1)
Type of property dividend: Cash
(2)
Details of the allotment of property dividend:¥12 per share of the Company’s common stock
Total amount:¥2,603,370,432
The Company executed share consolidation of common stock at a ratio of one share for every twoshares as of July 1, 2015. An interim dividend of ¥4 per share is paid with a record date of June 30, 2015,prior to the share consolidation. As a result, the annual dividend for the term shall be ¥10 per share (¥4
increase), comprising an interim dividend of ¥4 and a year-end dividend of ¥6 if translated prior to theshare consolidation, and ¥20 per share (¥8 increase), comprising an interim dividend of ¥8 and a
year-end dividend of ¥12 if translated subsequent to the share consolidation.
(3)
Date on which dividends from surplus become effective: March 30, 2016

-3-

Proposal No. 2: Partial Amendments to the Articles of Incorporation
1. Reasons for the Amendments
The following changes will be made in line with the Act on the Partial Revision of the Companies Act (ActNo. 90 of 2014), which came into effect on May 1, 2015.
(1)
Partial amendments shall be made to the Articles of Incorporation in line with changes to the scope ofCompany directors with whom the Company is able to enter into a contract to limit liability in order that
non-executive Directors and Audit and Supervisory Board Members other than external Audit andSupervisory Board Members are also able to fully perform their expected roles and so that the Company
can obtain appropriate persons widely both from within and outside the Company.
(Proposed amendments to Article 27 and Article 35).
Consent to changes to the provision of exemption of Directors from liability (Proposed amendments to
Article 27) has been obtained from each Audit and Supervisory Board Member.
(2)
Necessary amendments shall be made in line with changes to the number of regulations relating to thenomination of Substitute Directors. (Proposed amendments to Article 30).
2. Details of the Amendments
The Company’s Articles of Incorporation are proposed to be amended as follows:(Underlined parts are amended.)
Proposed Amendments

Existing Articles of Incorporation(Exemption of Directors from Liability)
Article 27. (Omitted)
2. Pursuant to Article 427, Paragraph 1 of theCompanies Act, the Company may enter into acontract with external Directors to limit liability as
specified by Article 423 Paragraph 1 of theCompanies Act, up to the amount specified by laws
and regulations.

(Exemption of Directors from Liability)
Article 27. (Unchanged)
2. Pursuant to Article 427, Paragraph 1 of theCompanies Act, the Company may enter into acontract with Directors (excluding Executive
Directors, etc.) to limit liability as specified by
Article 423 Paragraph 1 of the Companies Act, up to
the amount specified by laws and regulations.

(Term of Office)
Article 30. (Omitted)(Term of Office)
Article 30. (Unchanged)

2. The effective period of the resolution to elect a
Substitute Audit and Supervisory Board Member
elected pursuant to the provision of Article 329,
Paragraph 2 of the Companies Act shall be until thecommencement of the Ordinary General Meeting of
Shareholders for the last fiscal year which ends withinfour (4) years from the time of his/her election.

2. The effective period of the resolution to elect a
Substitute Audit and Supervisory Board Member
elected pursuant to the provision of Article 329,
Paragraph 3 of the Companies Act shall be until thecommencement of the Ordinary General Meeting of
Shareholders for the last fiscal year which ends withinfour (4) years from the time of his/her election.

(Exemption of Audit and Supervisory Board Members
from Liability)
Article 35. (Omitted)
2. Pursuant to Article 427, Paragraph 1 of theCompanies Act, the Company may enter into acontract with external Audit and Supervisory Board
Members to limit liability as specified by Article 423,
Paragraph 1 of the Companies Act, up to the amountspecified by laws and regulations.

(Exemption of Audit and Supervisory Board Members
from Liability)
Article 35. (Unchanged)
2. Pursuant to Article 427, Paragraph 1 of theCompanies Act, the Company may enter into acontract with Audit and Supervisory Board Members
to limit liability as specified by Article 423, Paragraph
1 of the Companies Act, up to the amount specified bylaws and regulations.

-4-

Proposal No. 3:
Election of One (1) Director
Director Mr. Makoto Hatanaka will resign upon conclusion of this Ordinary General Meeting of Shareholders.
Accordingly, it is proposed the following one (1) nominee will be elected as Director.
The nominee for Director is as follows.
Name(Date of birth)
Makio Tanehashi(March 13, 1957)
Number of theCompany’s shares
held: 4,145

Brief personal profile, title, responsibility and management
To be newly
positions with companies other than the Company
appointed
April 1979
Joined The Fuji Bank, Limited
March 2006
Executive Officer, General Manager of Internal Audit Division ofMizuho Corporate Bank, Ltd.
April 2008
Managing Executive Officer and Officer in charge of Sales ofMizuho Corporate Bank, Ltd.
April 2009Managing Executive Officer, in charge of Credit Group of Mizuho
Bank, Ltd.
June 2011
Deputy President & Executive Officer, in charge of Branches
Department of Mizuho Bank, Ltd.
June 2011
Representative Director, Deputy President & Executive Officer, incharge of Branches Department of Mizuho Bank, Ltd.
April 2012
Representative Director, Deputy President & Executive Officer,
Head of Branch Banking Group of Mizuho Bank, Ltd.
March 2013
President & Chief Executive Officer of Tokyo Tatemono Real Estate
Sales Co., Ltd.
(to the present)
July 2015
Senior Executive Managing Officer and Division Director of Real
Estate Solution Service Division, of the Company
October 2015 Senior Executive Managing Officer, Division Director of Real Estate
Solution Service Division, and Division Director of International
Business Division, of the Company(to the present)(Important concurrent positions with companies other than the Company)
President & Chief Executive Officer of Tokyo Tatemono Real Estate Sales Co., Ltd.

Notes:
1. No conflict of interest exists between the Company and the nominee for Director.
2. As Mr. Makio Tanehashi is to be elected to fill the position of a resigning Director, in accordance with theprovisions of the Company’s Articles of Incorporation, the term of office shall be the same as the remaining
term of office of the resigning Director as follows:
Until the conclusion of the Ordinary General Meeting of Shareholders for the 199th Fiscal Term (from January
1, 2016 to December 31, 2016)-5-

Proposal No. 4:
Election of Two (2) Audit and Supervisory Board Members
The term of office of Audit and Supervisory Board Members Mr. Toshiyuki Hanazawa and Mr. Shuichi Hattori
will expire upon conclusion of this Ordinary General Meeting of Shareholders. Accordingly, it is proposed thefollowing two (2) nominees be elected as Audit and Supervisory Board Members.
The Audit and Supervisory Board has consented to this proposal.
The nominees for Audit and Supervisory Board Members are as follows.
No.
1

Name
(Date of birth)
Toshiyuki Hanazawa(July 14, 1957)

Brief personal profile, title and management positions withFor
companies other than the Company
reappointment
April 1981
Joined Yasuda Fire & Marine Insurance Co., Ltd.
April 2009Managing Officer and General Manager of Accounting Department
of Sompo Japan Insurance, Inc.
Number of theJune 2010
Managing Officer and General Manager of International Planning
Company’s shares
Department of Sompo Insurance Inc.
held: 1,000
March 2012Managing Officer and General Manager of Overseas Business
Planning Department of Sompo Japan Insurance Inc.
Served as Audit and April 2012Managing Officer and General Manager of Overseas BusinessSupervisory Board
Planning Department and General Manager of Europe Affairs
Member for 2 years
Department of Sompo Japan Insurance Inc.
June 2012
Director and Executive Managing Officer of Sompo Japan Insurance
Attended 13 out of 13Inc.
meetings of Board of March 2014
Full-time Audit and Supervisory Board Member of the Company
Directors in fiscal(to the present)
term ended Dec. 31,
2015 (100%)

Attended 13 out of 13
Audit and Supervisory
Board meetings infiscal term ended Dec.
31, 2015 (100%)
Notes:
1. No conflict of interest exists between the Company and the nominee for Audit and Supervisory Board Member.
2. Should Mr. Toshiyuki Hanazawa be elected, and subject to the approval of Proposal No. 2, the Company plans
to conclude a contract with him to limit his liability for damages specified in Article 423, Paragraph 1 of theCompanies Act, in accordance with the provision in Article 427, Paragraph 1 of the Companies Act. The
amount of the limit for the liability for damages under this contract shall be the amount specified by laws andregulations.

-6-

No.

2

Name
(Date of birth)

Brief personal profile, title and management positions withcompanies other than the Company

Shuichi Hattori
April 1984
(November 25, 1953) July 1988

For
reappointment
as external andindependent
Audit andSupervisory
Board Member

Registered as a lawyer
Established Hattori Law Firm (currently Hattori General Law Firm)(to the present)
Number of theJune 2004
External Audit and Supervisory Board Member of USHIO INC.
Company’s shares(to the present)
held: 200
April 2007
Lecturer (in charge of Financial Instruments and Exchange Act) at
Keio University Law School
Served as Audit and(to the present)
Supervisory Board
June 2007
External Audit and Supervisory Board Member of Pokka
Member for 1 year
Corporation
March 2009
External Audit and Supervisory Board Member of LOOK
Attended 10 out of 10
INCORPORATED
meetings of Board of(to the present)
Directors in fiscal
January 2013 External Audit and Supervisory Board Member of POKKA
term ended Dec. 31,
SAPPORO Food & Beverage Ltd.
2015 (100%) (since(to the present)
being appointed in
March 2015
External Audit and Supervisory Board Member of the Company
March 2015)(to the present)(Important concurrent positions with companies other than the Company)
Attended 11 out of 11 Lawyer of Hattori General Law Firm
Audit and Supervisory External Audit and Supervisory Board Member of USHIO INC.
Board meetings inExternal Audit and Supervisory Board Member of LOOK INCORPORATED
fiscal term ended Dec.
31, 2015 (100%)(since being appointed
in March 2015)
Notes:
1. No conflict of interest exists between the Company and the nominee for Audit and Supervisory Board Member.
2. Mr. Shuichi Hattori is a nominee for external Audit and Supervisory Board Member.
3. Although Mr. Shuichi Hattori has not been involved in company management in any way other than by serving
as an external officer, he was selected as a nominee for external Audit and Supervisory Board member, in the
belief that his expertise, experience, etc. as a lawyer make him suitable for this position.
4. Mr. Shuichi Hattori is currently an external Audit and Supervisory Board Member of the Company and he will
have served for one (1) year since his appointment at the time of conclusion of this Ordinary General Meetingof Shareholders.
5. Mr. Shuichi Hattori is expected to retire from his position as external Audit and Supervisory Board Member of
POKKA SAPPORO Food & Beverage Ltd. as of March 29, 2016.
6. The Company plans to conclude a contract with Mr. Shuichi Hattori to limit his liability for damages specified
in Article 423, Paragraph 1 of the Companies Act, in accordance with the provision in Article 427, Paragraph 1of the Companies Act. The amount of the limit for the liability for damages under this contract shall be theamount specified by laws and regulations. Should Mr. Shuichi Hattori be reelected, the Company plans tocontinue said contract with him.
7. The Company has given notice to the Tokyo Stock Exchange, Inc. (TSE) of Mr. Shuichi Hattori as anindependent Audit and Supervisory Board Member in compliance with TSE provisions.

-7-

Proposal No. 5:
Election of One (1) Substitute Audit and Supervisory Board Member
To prepare for any shortage in the number of Audit and Supervisory Board Members from the number provided
for in laws and regulations, it is proposed that one (1) Substitute Audit and Supervisory Board Member be electedin advance pursuant to the provision of Article 329, Paragraph 3 of the Companies Act.
It is also proposed that the election be made revocable by the resolution of the Board of Directors with the consent
of the Audit and Supervisory Board, provided that it takes place before his/her appointment.
The Audit and Supervisory Board has consented to this proposal.
The nominee for Substitute Audit and Supervisory Board Member is as follows.
Name(Date of birth)
Masahiro Uehara(April 8, 1946)
Number of theCompany’s shares
held: 0Brief personal profile, title and management positions with companies other thanthe Company
March 1975
Registered as a Certified Public Accountant
July 1984
Established Certified Public Accountant Office of Masahiro
Uehara(to the present)
March 2014
External Audit and Supervisory Board Member of the Company(to the present)(Important concurrent positions with companies other than the Company)
Certified Public Accountant, Head of Uehara Certified Public Accountant Office

Notes:
1. No conflict of interest exists between the Company and the nominee for Substitute Audit and Supervisory
Board Member.
2. Mr. Masahiro Uehara is a nominee for substitute external Audit and Supervisory Board Member.
3. Although Mr. Masahiro Uehara has not been involved in company management in any way other than byserving as an external officer, he was selected as a nominee for substitute external Audit and Supervisory
Board Member, in the belief that his expertise, experience, etc. as a certified public accountant make him
suitable for this position.
4. Mr. Masahiro Uehara is currently an external Audit and Supervisory Board Member of the Company and hewill have served for two (2) years since his appointment at the time of conclusion of this Ordinary General
Meeting of Shareholders. Mr. Masahiro Uehara is expected to resign from his position as external Audit andSupervisory Board Member of the Company upon conclusion of this Ordinary General Meeting of
Shareholders.
5. Should Mr. Masahiro Uehara be elected as external Audit and Supervisory Board Member of the Company, theCompany plans to conclude a contract with him to limit his liability for damages specified in Article 423,
Paragraph 1 of the Companies Act, in accordance with the provision in Article 427, Paragraph 1 of theCompanies Act. The amount of the limit for the liability for damage under this contract shall be the amountspecified by laws and regulations.
6. The Company has given notice to the Tokyo Stock Exchange, Inc. (TSE) of Mr. Masahiro Uehara as anindependent Audit and Supervisory Board Member in compliance with TSE provisions.

-8-Consolidated Balance Sheet(As of December 31, 2015)(Assets)
Item
Current assets
Cash and deposits(Liabilities)
Amount
238,215
47,247

Notes and operating accounts
receivable

8,190

Real estate for sale

53,349Real estate for sale in progress
Real estate for development
Deferred income taxes
Other current assets
Allowance for doubtful accounts
Fixed assets
Property and equipment
Buildings and structures
Land
Construction in progress
Other property and equipment
Intangible assets
Leaseholds
Other intangible assets
Investments and other assets
Investment securities
Investments in silent partnerships
Long-term loans
Deferred income taxes
Lease and guarantee deposits
Net defined benefit asset
Other investments and other assets
Allowance for doubtful accounts(Millions of yen)
Item

Current liabilities
Short-term borrowings
Current portion of bonds
Accounts payable, trade
Accrued income taxes
Provision for compensation forcompleted construction
Provision for bonuses
Provision for bonuses to directors

43,70056,736
8,527
Deposits received under Real EstateSpecified Joint Enterprise Act
20,670(206)
Other current liabilities
1,058,897 Long-term liabilities
758,018
Bonds
235,322Long-term borrowings
506,947
Deferred income taxes
Deferred income taxes on land
4,928
revaluation
Provision for retirement benefits for
10,820directors
112,559
Provision for environmental measures
106,251
Guarantee deposits received
6,307
Net defined benefit liability
188,318
Deposits received under Real EstateSpecified Joint Enterprise Act
118,054
10,818Other long-term liabilities
49
1,628 Total Liabilities
20,514(Net Assets)
1,417 Shareholders’ equity
35,887
Capital stock(51)
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeValuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land

Total Assets
1,297,112
Note: Figures less than a million are rounded down.

Foreign currency translation adjustments
Remeasurements of defined benefit plans
Minority interests
Total Net Assets
Total Liabilities and Net Assets-9-

Amount195,382
96,991
21,710
7,942
2,470
12
674
44
18,70046,838789,198
105,761476,528
25,863
28,793248
271
70,982
10,27856,681
13,789984,581
215,080
92,451
66,47956,172(22)
86,49051,631(249)
29,4175,020
670
10,959312,530
1,297,112

Consolidated Statement of Income(From January 1, 2015 to December 31, 2015)(Millions of yen)AmountItem
Revenue from operations

260,012

Cost of revenue

197,335

Gross profit

62,677

Selling, general and administrative expenses

28,237

Operating income

34,439Non-operating income
Interest and dividend income

1,430

Equity in earnings of affiliated companies

842

Other non-operating income

351

2,624

Non-operating expenses
Interest expenses

8,850

Borrowing fee

2,078

Stock issuance cost

13

Bond issuance cost

134

Dividends paid under Real Estate Specified Joint Enterprise Act

997

Other non-operating expenses

192

Ordinary income

12,266
24,796Extraordinary income
Gain on sales of fixed assets

1,860

Gain on sales of investment securities

1,424

Gain on redemption of investment securities

185

Compensation income

56

3,525

Extraordinary loss
Loss on sales of fixed assets

870

Loss on disposal of fixed assets

292

Loss on redemption of investment securities

151

Impairment loss

5,044

Income before income taxes

6,359
21,962Current income taxes

3,932

Deferred income taxes

1,130

5,062

Income before minority interests

16,900Gain on minority interests

540

Net Income
Note: Figures less than a million are rounded down.

16,359-10-

Consolidated Statement of Changes in Shareholders’ Equity(From January 1, 2015 to December 31, 2015)(Millions of yen)
Shareholders’ equity

Balance at beginning of thecurrent term
Cumulative effect ofchanges in accounting
policies
Restated balance
Changes in items during theterm
Dividends from surplus
Net income
Reversal of revaluation
reserve for land
Acquisition of treasury
stock
Disposal of treasury stock
Changes due to shareexchanges
Net amount of changes in
items other thanshareholders’ equity
Total amount of changes
during the term
Balance at end of the current
term

Retainedearnings

Capital stock

Capital surplus

92,451

63,43253,4462,133(7,085)65,56546,361

92,451

Treasury stock

Total
shareholders’equity(2,411)

206,918(4,952)(2,411)201,966(2,995)
16,359(2,995)
16,359(3,553)(3,553)(1,084)(1,084)

0

2

2

914

3,471

4,385
-

-

914

9,811

2,388

13,11492,451

66,47956,172(22)

215,080

Accumulated other comprehensive income
Total
Foreign
Valuation
Remeasurements accumulated
Deferred gains
currency
Revaluationdifference on
otherof definedor losses onreserve for land translation
available-forcomprehensive
benefit planshedgesadjustments
sale securities
incomeBalance at beginning of the
51,034(326)
current term
Cumulative effect ofchanges in accounting
policies
Restated balance
51,034(326)
Changes in items during theterm
Dividends from surplus
Net income
Reversal of revaluation
reserve for land
Acquisition of treasury
stock
Disposal of treasury stock
Changes due to shareexchanges
Net amount of changes in
items other than
596
77
shareholders’ equity
Total amount of changes
596
77
during the term
Balance at end of the current
51,631(249)
term
Note: Figures less than a million are rounded down.

20,957

6,278

960

78,905

Minority Total net
interests
assets19,984

305,808(4,952)

20,957

6,278

960

78,90519,984

300,855-(2,995)
16,359-(3,553)-(1,084)

-

2

-

4,385

8,459

(1,257)

(290)

7,585

(9,024)(1,439)8,459(1,257)

(290)

7,585

(9,024)

11,674

29,4175,020

670

86,49010,959312,530-11-

Non-Consolidated Balance Sheet(As of December 31, 2015)(Millions of yen)
(Assets)
Item
Current assets
Cash and deposits
Accounts receivable, trade
Investments in silent partnerships ofsubsidiaries and affiliates
Real estate for sale
Real estate for sale in progress
Real estate for development
Advance payments, trade
Advance expenses
Deferred income taxes
Short-term loans receivable
Other current assets
Allowance for doubtful accounts
Fixed assets
Property and equipment
Buildings
Structures
Machinery and equipment
VehiclesFurniture and equipment
Land
Lease assets(Liabilities)
Amount180,463
20,876
5,855

Item
Current liabilities
Short-term borrowings
Current portion of bonds

Amount145,357
67,11320,000557

Accounts payable, trade

4,938

15,82643,71657,014
81
1,252
3,597
19,485
12,388

Accrued expenses
Accrued income taxes
Advances received
Deposits received
Provision for bonuses

6,395
13
18,3959,132
281

Deposits received under Real EstateSpecified Joint Enterprise Act

19,000

Other current liabilities
Long-term liabilities
(187)
Bonds
820,125
Long-term borrowings
554,047
Deferred income taxes
128,565
Deferred income taxes on land
revaluation
1,857
822
0
682
417,555
7

Construction in progress
Intangible assets
Leaseholds
Other intangible assets
Investments and other assets
Investment securities
Shares and investments in subsidiaries
and affiliates
Investments in other securities ofaffiliated companies

4,556
14,948
14,793
155
251,128
95,731

Investments in silent partnerships

2,029

Investments in silent partnerships ofsubsidiaries and affiliates
Long-term loans to subsidiaries andaffiliates
Lease and guarantee deposits

39,37650,28438,05916,72787545,275
104,000
255,031
18,403
28,793

Accrued severance indemnities

6,310

Provision for environmental measures
Guarantee deposits received
Deposits received under Real EstateSpecified Joint Enterprise Act
Other long-term liabilities
Total Liabilities(Net Assets)
Shareholders’ equity
Capital stock
Capital surplus
Legal capital reserve
Other capital surplus
Retained earnings
Other retained earnings(Reserve for reduction entry ofproperty replacement)(Retained earnings brought
forward)Treasury stock270
64,804

12,078Valuation and translation adjustments
Valuation difference on
7,532
Other investments and other assets
available-for-sale securities(65)
Allowance for doubtful accounts
Deferred gains or losses on hedges(10,624)
Allowance for investment losses
Revaluation reserve for land
Total Net Assets
1,000,588 Total Liabilities and Net Assets
Total Assets
Note: Figures less than a million are rounded down.

-12-

60,9306,731
690,632
232,547
92,451
63,72963,729076,39376,393
5,191
71,202(27)
77,407
48,239(249)
29,417309,955
1,000,588

Non-Consolidated Statement of Income(From January 1, 2015 to December 31, 2015)(Millions of yen)AmountItem
Revenue from operations
Revenue from building business
Revenue from residential business
Revenue from other businesses

67,921
83,141
2,418

153,481

Cost of revenue
Cost of building business
Cost of residential business
Cost of other businesses

43,287
63,874
3,547

110,710Gross profit

42,770

Selling, general and administrative expenses

15,981

Operating income

26,789Non-operating income
Interest and dividend income
Other non-operating income

2,242
167

2,409

Non-operating expenses
Interest expenses
Borrowing fee
Stock issuance cost
Bond issuance cost
Dividends paid under Real Estate Specified Joint Enterprise Act
Other non-operating expenses

5,767
862
3
134
1,028
27

7,823

Ordinary income

21,376Extraordinary income
Gain on sales of fixed assets
Gain on sales of securities of subsidiaries and affiliates
Gain on redemption of securities of subsidiaries and affiliates
Reversal of allowance for investment loss
Extraordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Write-down of securities of subsidiaries and affiliates

728
1,424
185
582

2,920

870
120
395

1,386

Income before income taxes

22,909Current income taxes
Deferred income taxes

38
1,869

Net Income
Note: Figures less than a million are rounded down.

-13-

1,907
21,002

Non-Consolidated Statement of Changes in Shareholders’ Equity(From January 1, 2015 to December 31, 2015)(Millions of yen)
Shareholders’ equity
Capital surplus

Balance at beginning of thecurrent term
Cumulative effect of changes
in accounting policies
Restated balance
Changes in items during theterm
Dividends from surplus
Net income
Reversal of revaluation
reserve for land
Acquisition of treasury
stock
Disposal of treasury stock
Increase in reserve for
reduction entry of property
replacement due to change
in tax rate
Changes due to shareexchanges
Net amount of changes in
items other thanshareholders’ equity
Total amount of changes
during the term
Balance at end of the current
term

Retained earnings

Capital
stock

Legal
capitalreserve

Other
Capitalsurplus

Total
Capitalsurplus92,451

63,207

063,20792,451

63,20700

522

Other retained earnings
Reserve for
Retained
reduction
earnings
entry ofbrought
property
forwardreplacement

4,937

63,207

4,937

Total
retainedearnings

57,22562,163

(209)

(209)

57,016

61,954(3,009)21,002(3,553)(3,009)21,002(3,553)

0
253

(253)

522

-

522

0

522

253

14,186

14,43992,451

63,729063,7295,191

71,202

76,393

Shareholders’ equity

Valuation and translation adjustments

Valuation
Total
Treasury shareholders’difference onstockavailable-forequity
sale securities

Balance at beginning of the(375)
217,447
current term
Cumulative effect of changes(209)
in accounting policies
Restated balance(375)
217,237
Changes in items during theterm
Dividends from surplus(3,009)Net income
21,002
Reversal of revaluation(3,553)
reserve for land
Acquisition of treasury(4,268)(4,268)stock
Disposal of treasury stock2
2
Increase in reserve for
reduction entry of property
replacement due to change
in tax rate
Changes due to share
4,614
5,136
exchanges
Net amount of changes in
items other thanshareholders’ equity
Total amount of changes
347
15,310during the term
Balance at end of the current(27)
232,547
term
Note: Figures less than a million are rounded down.

47,836

Deferred
gains orlosses onhedges(326)

Revaluation Total valuation
reserve for and translation
land
adjustments

20,957

68,467

Total net
assets285,914(209)

47,836(326)

20,957

68,467285,704-(3,009)21,002(3,553)-(4,268)
2

-

-

-

5,136

403

77

8,459

8,940

8,940

403

77

8,459

8,940

24,25048,239(249)

29,417

77,407309,955-14-