This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Summary of REIT Financial Report for the 7th Fiscal Period
January 21, 2020
REIT Issuer:
Ooedo Onsen Reit Investment Corporation
Securities Code: 3472
Representative: Fuminori Imanishi, Executive Director
Asset Manager:
Representative:
Inquiries to:

Stock Exchange Listing: TSE
URL: https://oom-reit.com

Ooedo Onsen Asset Management Co. Ltd.
Fuminori Imanishi, Chief Executive Officer
Shinya Ito, General Manager, Planning and Coordination Department+81-3-6262-5200

Scheduled date of submission of periodic securities report (yuka shoken hokokusho):Scheduled date of start of distribution payments:

February 25, 2020
February 14, 2020

Preparing supplementary explanatory materials on financial results:
Holding of brief session on financial results:

Yes
Yes (for institutional investors and analysts)[Amounts are rounded down to the nearest million yen, except for per unit figures]
1. Status of Management and Assets for the 7th Fiscal Period
6th Fiscal Period: Fiscal period ended May 2019 (from December 1, 2018 to May 31, 2019)
7th Fiscal Period: Fiscal period ended November 2019 (from June 1, 2019 to November 30, 2019)(1) Management Status
Fiscalperiod6th
7th

Operatingrevenuemillion yen
1,434
1,440

FiscalperiodProfitper unit

%
(1.0)
0.4

Operatingprofitmillion yen
699
696

Ratio of profit tounitholders’ equity
yen
2,377
2,403

6th
7th

[% figures show the period-on-period increase (decrease)]
Ordinary
Profitprofit% million yen% million yen
%
(2.2)
560
(3.1)
559
(3.1)
(0.3)
566
1.1
565
1.1

%
2.6
2.7

Ratio of ordinary profit tototal assets
%
1.4
1.5

Ratio of ordinary profit tooperating revenue
%
39.1
39.3

(2) Distribution Status
Fiscal period

Distribution
per unit

Total
distribution(excludingexcess cash
distribution)(excludingexcess cash
distribution)

Excess cash
distribution
per unit

Total excess
cash
distribution

Distribution
per unit

Total
distribution(includingexcess cash
distribution)(includingexcess cash
distribution)

Distribution
Ratio of
Payoutdistribution to
net assets
ratio

yen
yen
million yen
yenmillion yen
million yen
%
%
6th
2,378
559
12
2
2,390
562
100.0
2.6
7th
2,403
565
12
2
2,415
568
100.0
2.7
(Note 1) The entire amount of total excess cash distribution is equivalent to the increase amount of allowance for temporary difference
adjustments.
(Note 2) Distribution payout ratio is rounded down to the first decimal place.

(3) Financial Position
Fiscalperiodmillion yen
38,782
38,640

million yen
21,204
21,207

Unitholders’ equity to total
assets%54.7
54.9

Net cashprovided by (used in)operating activities
million yen
884
1,131

Net cashprovided by (used in)investing activities
million yen
(186)
(144)

Net cashprovided by (used in)financing activities
million yen
(917)
(758)

Total assets

6th
7th

Net assets

Net assets
per unityen
90,097
90,110(4) Cash Flow Status
Fiscalperiod
6th
7th

-1-

Cash andcash equivalents
at end of period
million yen
675
903

2. Management Status Forecasts for the 8th Fiscal Period and the 9th Fiscal Period
8th Fiscal Period: Fiscal period ending May 2020 (from December 1, 2019 to May 31, 2020)
9th Fiscal Period: Fiscal period ending November 2020 (from June 1, 2020 to November 30, 2020)

FiscalperiodOperatingrevenue

Operatingprofit[% figures show the period-on-period increase (decrease)]
Distribution
Distribution
Excess cash
per unit
per unit
distribution
Profit(including(excluding excess
excess cash
per unit
cash distribution)

Ordinary
profitdistribution)

millionmillionmillionmillion
%
%
%
%
yen
yen
yen
yen
yen
8th
1,427 (0.9)
673 (3.4)
539 (4.8)
538 (4.8)
2,288
9th
1,428
0.1
676
0.5
548
1.7
547
1.7
2,328
(Reference) Estimated Profit per unit for the 8th Fiscal Period: 2,288 yen; 9th Fiscal Period: 2,327 yen

yen

yen

12
12

2,300
2,340

* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement(i) Changes in accounting policies accompanying amendments to accounting standards, etc.:
None(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:None(iv) Retrospective restatement:
None(2) Total Number of Investment Units Issued and Outstanding(i) Total number of investment units issued and outstanding(including own investment units) at end of period:(ii) Number of own investment units at end of period:

7th

235,347 units

6th

235,347 units

7th

0 units

6th

0 units* Presentation of the status of implementation of audit procedures
At the time of disclosure of this financial report (kessan tanshin), the audit procedures pursuant to the Financial Instruments andExchange Act have not been completed.
* Explanation of the appropriate use of the management status forecasts, and other matters of special note
The management status outlook and other forward-looking statements contained in this document are based on information thatare currently available and certain assumptions that are deemed reasonable by the Investment Corporation. Accordingly, the actual
management status, etc. may differ materially due to various factors. In addition, the forecast is not a guarantee of the amount ofcash distribution. For the assumptions for the management status forecasts, please refer to “Assumptions Underlying Forecasts of
the Financial Results for the Fiscal Periods Ending May 2019 and November 2020” on page 8.

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1. Management Status
2.1. Management Status(1) Overview of the Fiscal Period under Review
a. Brief History of the Investment Corporation
Ooedo Onsen Reit Investment Corporation (the “Investment Corporation”) was established on March 29,
2016 (capital: 200 million yen, issued investment units: 2,000 units) under the Act on Investment Trusts andInvestment Corporations (the “Investment Trust Act”). Registration with the Kanto Local Finance Bureau wascompleted on May 13, 2016 (registration number 119, filed with the Director of the Kanto Local Finance
Bureau).
Subsequently, pursuant to the basic policy calling for “key investments in onsen and spa-related facilities
under the Ooedo business model (Note 1) that can achieve stable revenues and sustained growth” and “growthstrategy taking maximum advantage of support from the Ooedo-Onsen Monogatari Group (Note 2)”, thesponsor, the Investment Corporation issued new investment units via public offering (174,200 units) with
August 30, 2016 as the payment date and listed on the Real Estate Investment Trust Securities Market of Tokyo
Stock Exchange, Inc. (“Tokyo Stock Exchange”) (Securities Code: 3472) on August 31, 2016. Furthermore,
the Investment Corporation acquired 9 onsen and spa-related facilities (Note 3) (total acquisition price (Note4): 26,844 million yen) on September 1, 2016. At the beginning of the 4th fiscal period, the Investment
Corporation issued new investment units via public offering (56,330 units) and additionally acquired 5 onsen
and spa-related facilities (total acquisition price: 9,861 million yen) on December 4, 2017. As a result, the total
number of facilities owned by the Investment Corporation as of the end of the fiscal period under review
increased to 14 facilities (total acquisition price: 36,705 million yen. The total number of investment units
issued and outstanding of the Investment Corporation as of the end of the fiscal period under review stands at
235,347 units.
(Note 1) “Ooedo business model” is business expertise introduced in facilities operated by the Ooedo-Onsen Monogatari Groupcapable of maintaining high profitability and stable occupancy, which are possessed by the Ooedo-Onsen MonogatariGroup and believed to be highly competitive.
(Note2 ) “Ooedo-Onsen Monogatari Group” is comprised of the Investment Corporation’s sponsors, namely Ooedo-Onsen
Monogatari Hotels & Resorts Co, Ltd. and Ooedo-Onsen Monogatari Co., Ltd. (hereinafter “Ooedo-Onsen
Monogatari” and may be referred to as “Sponsors” collectively with Ooedo-Onsen Monogatari Hotels & Resorts Co.,
Ltd.) and their consolidated subsidiaries (meaning subsidiaries provided for in Article 8, Paragraph 3 of the Regulationon the Terminology, Forms, and Preparation Methods of Financial Statements (Ordinance of the Ministry of Finance
No. 59 of 1963, as amended), including the Asset Manager). The same applies hereinafter.
(Note 3) “Onsen and spa-related facilities” refers to facilities which provide as a primary function onsen or hot baths, andinclude baths (public bathing facilities which employ onsen or other similar facilities; the same hereinafter), ryokan(lodging of which main structure and facilities are Japanese style), hotels (lodging of which main structure andfacilities are Western style), resort facilities (facilities to provide opportunities for sports or recreational activities
during leisure time), amusement parks, or other leisure facilities (including multi-use facilities that contain theforegoing) that include hot baths as part of their core facilities. Onsen and spa-related facilities also refers to facilities
as a whole, including not only buildings with onsen or hot baths, but also the buildings and sites that are adjacent tosuch buildings or operated as one facility. The same applies hereinafter.
(Note 4) “Acquisition price” indicates the purchase prices of properties stated in the sale and purchase agreements (notincluding expenses, such as consumption tax, local consumption tax, or sale and purchase fees), rounded down to thenearest million yen.

b. Investment Environment and Management PerformanceWith regard to the Japanese economy during the fiscal period under review, the gross domestic product(GDP) in the July-September quarter of 2019 was up 1.8% on a real (seasonally adjusted) annualized basis (thesecondary preliminary estimates) excluding the effects of price fluctuations, up 0.4% from the previous quarter(April to June of last year), and revised upward from the primary preliminary estimates (0.2% on an annualizedbasis). However, consumption and production declined associated with the consumption tax rate hike in
October 2019, and the number of tourists visiting Japan from Asian countries such as South Korea showed adownward trend. In addition, the financial outlook remained uncertain, given concerns regarding the future of
the US-China trade friction.
Meanwhile, the Onsen Use Survey by the Nature Conservation Bureau of the Ministry of the Environment,
one of the indicators on the use of onsen and spa-related facilities, which are the principal investment targetsof the Investment Corporation, shows that the number of accommodation facilities and the total number ofannual guests of accommodation facilities remained stable from fiscal 2013 to fiscal 2017, suggesting thatdemand for onsen is stable over the medium to long-term.
In this environment, the occupancy rate (Note 1) of the 14 onsen and spa-related facilities the Investment
Corporation owns as of the end of the fiscal period under review (total acquisition price: 36,705 million yen)remained at 100.0% as of the end of the fiscal period under review under a master lease agreement. In addition,although the overall guestroom occupancy rate (Note 2) of the 14 onsen and spa-related facilities owned
declined only slightly to 89.3%, generally remaining stable, the guestroom occupancy rate remained lower than-3-the same period last year in some facilities that were affected by natural disasters such as typhoons and changes
in the local economic conditions. As a result, ADR (Note 3), RevPAR (Note 4) and sales of the 14 properties
declined 1.7%, 2.0% and 2.8% from the same period last year, respectively.
As can be inferred from the aforementioned Onsen Use Survey by the Nature Conservation Bureau of the
Ministry of the Environment, many facilities the Investment Corporation owns seem to stably maintain arelatively high occupancy rate on the back of the stable demand for onsen in the medium to long term, while
consumption trends tend to change in the short term, and the strong operational capability of the Ooedo-Onsen
Monogatari Group, the tenant. However, given that the occupancy rate has declined in some facilities due tofalling demand from corporations and groups in the local economies and the intensified competitiveenvironment, the Investment Corporation asks the Ooedo-Onsen Monogatari Group, which is the tenant, todraw up and implement measures and it monitors the current status.
While leasing business revenue for the fiscal period under review basically remained stable, supported by
fixed rents that had a high composition ratio, variable rents declined 8.3% from the previous period, because
profits that took the cost of sales and expenses into consideration decreased in some facilities. The tenants are
considering improvement plans, such as fundamental measures to attract more customers and the reduction of
expenses for facilities where variable rents were not generated or declined, particularly for Kinugawa Kanko
Hotel, which struggled to attract group customers, and Ooedo-Onsen Monogatari Kounkaku, which struggled
due to relatively declining visits to the entire area, and the Investment Corporation will continue to request theimplementation of these plans and measures.
The appraisal value as of the end of the fiscal period under review totaled 40,392 million yen. Comparedwith the appraisal value as of the end of the previous period (the end of May 2019), the total appraisal value
remained flat for the 14 owned properties. With regard to the unrealized gain/loss (Note 5) of the entire portfolio
at the end of the fiscal period under review, the unrealized gain increased to 4,267 million yen, due to a decreasein the book value, reflecting the depreciation of the 14 properties.
Moreover, the Investment Corporation did not acquire any new facilities during the fiscal period underreview. However, it developed plans for capital expenditure that took into account the status and features of theowned properties to manage the implementation of necessary repairs by tenants and implement the necessary
capital expenditure for maintaining functions. (Repair expenses are basically borne by the tenants based on thelease agreements.)
In addition, the Investment Corporation conducts activities for obtaining deal information to acquire newproperties in the future on the premise of acquiring them widely from the market, in addition to properties
managed by the Ooedo-Onsen Monogatari Group.
(Note 1) Occupancy rate refers to the ratio of leased area to leasable area.
(Note 2) Guestroom occupancy rate is calculated using the following formula.
Guestroom occupancy rate = number of guestrooms sold during relevant period / number of rooms available for saleduring relevant period ×100 (%)(Note 3) Average daily rate (ADR) is calculated for a given time period by dividing total room revenue by the number of totalrooms sold(Note 4) Revenue per available room (RevPAR) is calculated for a given time period by dividing total room revenue by the
number of total rooms available for sale.
(Note 5) Unrealized gain/loss is calculated using the following formula.
Unrealized gain/loss = Total appraisal value of owned assets as of the end of the fiscal period under review – Totalbalance sheet amount (including equipment attached to buildings, structures, machinery and equipment, tools,
furniture and fixtures as well as leasehold right)

c. Overview of Capital Procurement
In the fiscal period under review, the Investment Corporation made scheduled repayments of 93 million yen
on both July 31 and October 31, 2019, and 10 million yen on November 30, 2019, using cash on hand. As aresult, the total amount of interest-bearing debt stood at 15,558 million yen and the ratio of interest-bearing
liabilities to total assets (LTV) at 40.3% as of the end of the fiscal period under review.
d. Overview of Financial Performance and Distributions
As a result of the operations described above, business performance in the fiscal period under review
generated operating revenue of 1,440 million yen, operating profit of 696 million yen, ordinary profit of 566
million yen and profit of 565 million yen.
Concerning cash distribution for the fiscal period under review, pursuant to the cash distribution policies
provided in the Investment Corporation’s articles of incorporation, the amount of distribution was to be inexcess of an amount equivalent to 90% of the Investment Corporation’s earnings available for distribution as
defined in Article 67-15, Paragraph 1 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957,
as amended; the “Special Measures Concerning Taxation Act”). Accordingly, the Investment Corporation
decided to distribute 2,403 yen per unit (excluding excess cash distribution).

-4-

Furthermore, in accordance with the policy for “distribution of cash in excess of profit” as stated in theInvestment Corporation’s articles of incorporation, the Investment Corporation made a distribution for the
2,824,164 yen in allowance for temporary difference adjustments (as defined in Article 2, Paragraph 2, item 30of the Ordinance on Accountings of Investment Corporations (Cabinet Office Ordinance No. 47 of 2006, as
amended; the “Investment Corporations Accountings Ordinance”) for the purpose of reflecting the effect on
distributions of the difference between accounting and tax treatment of earnings in association with therecording of interest expenses of asset retirement obligation and recording of depreciation of building bookvalue corresponding to asset retirement obligation (as defined in Article 2, Paragraph 2, item 30 (b) of theInvestment Corporations Accountings Ordinance). This resulted in excess distribution per unit of 12 yen.
As a result, distribution per unit for the fiscal period under review was 2,415 yen (of which, excess
distribution per unit was 12 yen).
(2) Outlook for the Next Fiscal Perioda. Management Environment in the Next Fiscal Period
Looking at the Japanese economy from the next fiscal period onward, real public investments are expected
to increase according to the Comprehensive Economic Measures to Create a Future with Security and Growth
adopted at a Cabinet meeting in December 2019, but attention should continue to be paid to the economic trends,
given that the impact of a reactionary fall in consumption after the consumption tax hike implemented in
October 2019 and the continuation of the deceleration trend of the US and the Chinese economies until the
middle of 2020 are expected.
In this environment, the Investment Corporation’s investment target, leisure facilities (Note 1), including
onsen and spa-related facilities, the key investment targets of the Investment Corporation, are based on“intangible goods consumption” (Note 2), or more precisely what is called “experience-based consumption”(Note 3), and there are also moves for active seniors to increase consumption and toward workstyle reform.
The Investment Corporation therefore believes that domestic demand for leisure facilities will rise stably going
forward.
The Investment Corporation also believes that the number of foreign tourists will rise with the progress ofgovernment policies for the tourism nation and that the weight of “experience-based consumption” such assightseeing and the experience of Japanese culture by inbound tourists will increase further.
Under these circumstances, the Investment Corporation believes that the performance of tenants in its owned
facilities will remain relatively stable overall, although there will be differences in performance among thefacilities, and that it is possible to maintain stable leasing business revenue based on leasing centered on fixed
rents. The Investment Corporation also believes that it will be able to increase its growth potential by advancing
the acquisition of new properties that could accommodate experience-based consumption, in addition tostability typified by the current owned assets.
(Note 1) “Leisure facilities” refers to facilities that provide consumers with leisure activities and fulfilling time which people
nowadays require, such as “enjoyment,” “communication,” “comfort and relaxation” and “health and intellectual
satisfaction.”(Note 2) “Intangible goods consumption” refers to consumption activities for providing a “series of experiences” which is acombination of individual events.
(Note 3) “Experience-based consumption” refers to consumption activities for the purpose of having experiences.

b. Future Management Policy and Challenges to Address
As a REIT focused on leisure facilities, the Investment Corporation will aim to build a portfolio focused on
facilities that are supported by consumers by providing them with productive leisure time, taking note ofexperience-based consumption demand that is expected to increase both in Japan and overseas, while placing
onsen and spa-related facilities as the key investment targets.
(a) External Growth Strategy
i. Utilization of Sponsor Pipeline
Looking at the supply aspect of onsen and spa-related facilities, there are many ryokans and hotels that
decide to discontinue their business due to persistent issues such as a lack of successors and declining
competitiveness caused by aging facilities. In addition, to meet the capital needs for investment in equipment
to enhance competitiveness and for funds to open new facilities, a large number of facilities are put up for sale,and information on numerous properties continues to be brought to the Investment Corporation and the OoedoOnsen Monogatari Group.
In the period of one year from January 2019 to December 2019, the Ooedo-Onsen Monogatari Groupacquired two facilities: TAOYA Shima (Toba City, Mie Prefecture) in April 2019 and Ooedo-Onsen
Monogatari Amakusa Hotel Kameya (Kamiamakusa City, Kumamoto Prefecture) in August 2019. The
Investment Corporation plans to open Saikaibashi Corazon Hotel (Sasebo City, Nagasaki Prefecture) in April
2020 and believes that the Group will continue to make acquisitions (Note).
-5-In accordance with the sponsor support agreement concluded with the Sponsors on November 1, 2017, theInvestment Corporation is granted preferential negotiating rights for the acquisition of onsen and spa-related
facilities owned or developed by the Ooedo-Onsen Monogatari Group, and will also be preferentially provided
with third-party property sales information acquired by the Ooedo-Onsen Monogatari Group. The Investment
Corporation intends to continuously acquire mainly onsen and spa-related facilities with the Ooedo businessmodel owned and operated by the Ooedo-Onsen Monogatari Group by making maximum use of theabovementioned support.
(Note) It is not guaranteed that the Investment Corporation will be able to acquire these properties in the future.

ii. Utilization of Network Unique to the Asset Manager and Acquisition of Properties Other than
Properties Contributed by Sponsor
The Investment Corporation believes that leisure facilities set forth in its Articles of Incorporation (Note 1)
remain insufficient to meet notably expanding and diversifying needs in the leisure market in recent years. It
also believes that needs for leisure facilities from consumers in Japan and inbound tourists will increase
quantitatively and that qualitatively fulfilling facilities which are able to satisfy the services required byconsumers in Japan and overseas are still in short supply, suggesting that new supply and the conversion ofexisting facilities will be much needed in the future.
In this environment, the number of facilities under consideration for investment is increasing year after year
partly as a result of an approach to potential sellers as sales information on leisure facilities is obtained insignificant volume by utilizing the asset manager’s own network. The Investment Corporation will conduct
activities to acquire various types of leisure facilities and accommodation facilities, including small andmedium-sized ones, by focusing on facilities at urban locations such as ordinance-designated cities and corecities, newly developed facilities and young properties that could complement the current portfolio andcontribute to an improvement in the portfolio balance and the diversification of risks, as well as facilities that
could meet inbound tourism demand. In addition, there are increasing cases in which a bridge structure, etc. isused to secure preferential negotiating rights (Note 2).
Through these measures, the Investment Corporation will complement the current portfolio balance centeredon sponsor-contributed properties and continue to consider making investments to achieve external growththrough new acquisitions that can further enhance the diversification of investment areas and tenants anddiversity in leisure facilities.
(Note 1) The investment targets set forth in the Articles of Incorporation of the Investment Corporation are ryokans, hotels,bathing facilities, resort facilities, amusement parks and other leisure facilities, as well as their complex facilities.
(Note 2) It is not guaranteed that the Investment Corporation will be able to acquire these properties in the future.

(b) Internal Growth Strategy
i. Rent Structure Emphasizing Stability
The Investment Corporation adopts a rent system that comprises primary rent (fixed rent combined with
GOP (Note 1)-linked variable rent) with the addition of secondary rent (amount equivalent to real estate-related
costs of each facility) in the long-term lease agreements concluded with the Ooedo-Onsen Monogatari Group
companies that are the tenants of the owned assets (Note 2). This along with having tenants pay repair expenses
in principle allows the Investment Corporation to secure stability of cash flow over the long term while pursuingbenefits from the upside of a GOP-linked rent income when facilities are generating favorable operating results.
(Note 1) “GOP” refers to gross operating profit, which is the amount remaining after deducting expenses arising directly frommanaging each facility, such as labor expenses and general and administrative expenses, from each facility’s sales.
The same applies hereinafter.
(Note 2) The rent system has been adopted in the lease agreements for the currently owned assets. However, this does notguarantee the same rent system will be adopted in the lease agreements for the facilities that the Investment
Corporation acquires in the future.

ii. Strategic CAPEX (Note 1) Contributing to the Increase in Income and Enhancement ofCompetitiveness through the Expansion of Capacity
The Investment Corporation will strategically implement CAPEX such as for the extension andreconstruction of owned properties with high occupancy and value-increasing potential (Note 2) in order toincrease the number of guestrooms. Through this measure, it aims to secure the potential income of the operatorof the owned properties, as well as to increase the rental income through the effective use of non-operatingbuildings and unused land on the premises in the medium to long term.
In addition, the Investment Corporation will strive to raise variable rents by increasing tenant income
through collaboration with the Ooedo-Onsen Monogatari Group, which has the expertise to improve added
value in onsen and spa-related facilities, by actively engaging, from the position of the facility owner, in various
measures to help enhance the competitiveness of facilities, as well as events and other measures to attract guests.
(Note 1) CAPEX (Capital Expenditure) does not refer to repair expenses for maintenance of real estate but refers to expenditure
for enhancing value and extending lifetime of real estate and its facilities.

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(Note 2) “Value-increasing potential” refers to the capability for potential enhancement of asset value that investments, etc.
can bring.

(c) Financial Strategy
The Investment Corporation will implement a flexible financial strategy while placing emphasis on
maintaining its conservative financial position.
With regard to equity financing, the Investment Corporation will consider implementing it flexibly, taking
into account the enhancement of the value of investment units in the medium to long term and the dilution of
distribution per unit.
Although the Investment Corporation has set the upper limit of LTV at 60% in principle, it plans to control
LTV to maintain a conservative level of around 40% for the time being, while paying attention to capitalreserves.
As to debt financing, the Investment Corporation strives to realize stable financing associated with the
expansion of asset scale while maintaining its favorable relationship with existing lenders. The Investment
Corporation also aims to reduce financing costs by lowering the risk premium through the expansion of thescale of the portfolio and the diversification of risks in terms of tenants and locations. In addition, theInvestment Corporation seeks to acquire a high rating, diversify financing sources, prolong the average
repayment date of debt and introduce fixed interest rates.
(3) Significant Subsequent Events
Not applicable-7-

Assumptions Underlying Forecasts of the Financial Results
for the Fiscal Periods Ending May 2020 and November 2020
Item

Assumption

Calculation
period・ Fiscal period ending May 2020
(8th fiscal period: from December 1, 2019, to May 31, 2020) (183 days)
・ Fiscal period ending November 2020
(9th fiscal period: from June 1, 2020, to November 30, 2020) (183 days)
・ It is assumed that there will be no change (acquisition or disposition of assets) to the 14
properties, which the Investment Corporation owns as of the date of this document, throughto the end of the fiscal period ending November 2020.
・ The managed assets may change due to acquisition of assets other than the owned properties
above, the disposition of assets under management, etc.
・ Lease operations revenue from the owned assets is calculated based on the lease agreements
effective as of the date of this document. It is calculated in light of rent revisions to be madein the future, taking into consideration market trends and other factors. It assumes that there
is no delinquency or non-payment of rent by the tenant.
・ Rent is calculated based on the following assumptions:ManagedAssetsOperatingrevenue[Ooedo-Onsen Monogatari Reoma Resort]
Fixed rent: 52,456,896 yen monthly
Variable rent: 5,181,730 yen monthly; and will be calculated using the following calculation
method from June 2019(1) Modified GOP (Note 1) for the most recent one-year period × 5.0%
(yearly; the monthly amount is 1/12th thereof)(2) Only if 58.7% of the modified GOP exceeds one year’s fixed rent, variable rent will
apply.
With regard to Ooedo-Onsen Monogatari Reoma Resort, a fixed-term land lease agreement
has been executed with the tenant, and the Investment Corporation receives a separate
monthly land rent of 86,000 yen based on the fixed-term land lease agreement.
[Ooedo-Onsen Monogatari Ise-shima]
Fixed rent: 18,009,399 yen monthly
Variable rent: 962,993 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 4.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 77.0% of the modified GOP exceeds one year’s fixed rent, variable rent will
apply.
[Ito Hotel New Okabe]
Fixed rent: 12,296,799 yen monthly
Variable rent: 1,471,251 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 5.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 52.0% of the modified GOP exceeds one year’s fixed rent, variable rent will
apply.

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Operating
revenue[Ooedo-Onsen Monogatari Atami]
Fixed rent: 15,619,380 yen monthly
Variable rent: 939,716 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 4.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 74.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Toi Marine Hotel]
Fixed rent: 9,098,235 yen monthly
Variable rent: 1,016,579 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 7.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 72.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Awara]
Fixed rent: 10,963,033 yen monthly
Variable rent: 608,360 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 3.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 62.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Kamoshika-so]
Fixed rent: 5,953,916 yen monthly
Variable rent: 655,836 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 6.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 62.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Ikaho]
Fixed rent: 6,126,558 yen monthly
Variable rent: 708,097 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 7.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 67.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Kimitsu-no-mori]Fixed rent: 4,098,412 yen monthly
Variable rent: 436,860 yen monthly from December 2016; and will be revised every six
months and calculated as follows:(1) Modified GOP for the most recent one-year period × 5.0% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 52.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Nagasaki Hotel Seifu]
Fixed rent: 12,496,532 yen monthly
Variable rent: 498,384 yen monthly from June 2018; and will be revised every six months
and calculated as follows:(1)
Modified GOP for the most recent one-year period × 2.2% (yearly; the monthly
amount is 1/12th thereof)
-9-

(2)

Only if 44.7% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.

[Ooedo-Onsen Monogatari Kounkaku]
Fixed rent: 7,017,209 yen monthly
Variable rent: 755,005 yen monthly from June 2018; and will be revised every six months
and calculated as follows:(1)
Modified GOP for the most recent one-year period × 4.5% (yearly; the monthly
amount is 1/12th thereof)(2)
Only if 45.3% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Kinugawa Kanko Hotel]
Fixed rent: 29,069,741 yen monthly
Variable rent: 1,188,094 yen monthly from June 2018; and will be revised every six months
and calculated as follows:(1)
Modified GOP for the most recent one-year period × 2.4% (yearly; the monthly
amount is 1/12th thereof)(2) Only if 56.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Kinosaki]
Fixed rent: 13,147,999 yen monthly
Variable rent: 650,945 yen monthly from June 2018; and will be revised every six months
and calculated as follows:(1)
Modified GOP for the most recent one-year period × 2.4% (yearly; the monthly
amount is 1/12th thereof)(2)
Only if 47.7% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
[Ooedo-Onsen Monogatari Higashiyama Grand Hotel]
Fixed rent: 8,631,767 yen monthly
Variable rent: 940,567 yen monthly from June 2018; and will be revised every six months
and calculated as follows:(1)
Modified GOP for the most recent one-year period × 4.5% (yearly; the monthly
amount is 1/12th thereof)(2)
Only if 45.0% of the modified GOP exceeds one year’s fixed rent, variable rent
will apply.
Fiscal Period Ending May 2020 (8th fiscal period)(Millions of yen)
Property name
Ooedo-Onsen Monogatari
Reoma Resort
Ooedo-Onsen MonogatariIse-shima

Primary rent (Note 2)
Fixed
Variablerent
rent(Note 3)(Note 4)315
30(Note 6)

Ito Hotel New Okabe
Ooedo-Onsen Monogatari
Atami
Ooedo-Onsen Monogatari
Toi Marine Hotel- 10 -

Secondary
rent(Note 5)

Total
(Note 7)

33

378

108

7

3

119

73

8

8

91

93

7

3

105

54

6

1

62

Ooedo-Onsen Monogatari
Awara
Ooedo-Onsen Monogatari
Kamoshika-so
Ooedo-Onsen Monogatari
Ikaho
Ooedo-Onsen Monogatari
Kimitsu-no-moriOoedo-Onsen Monogatari
Nagasaki Hotel Seifu
Ooedo-Onsen Monogatari
Kounkaku
Kinugawa Kanko Hotel
Ooedo-Onsen Monogatari
KinosakiOoedo-Onsen Monogatari
Higashiyama Grand Hotel
Total (Note 7)

65

3

8

77

35

3

5

45

36

4

4

45

24

-

5

29

74

3

4

83

42

-

2

45

174

-

5

179

78

5

6

90

51

6

10

68

1,230

87

105

1,422

Fiscal Period Ending November 2020 (9th fiscal period)(Millions of yen)Primary rent (Note 2)

Secondary
rent(Note 5)

Total
(Note 7)

30

33

379

108

7

3

118

73

8

8

91

93

7

3

105

54

6

1

62

65

3

8

77

35

3

5

45

36

4

4

45

24

-

5

29

74

3

4

83

42

-

2

45

Kinugawa Kanko Hotel
Ooedo-Onsen Monogatari
KinosakiOoedo-Onsen Monogatari
Higashiyama Grand Hotel

174

-

5

179

78

4

6

90

51

6

10

68

Total (Note 7)

1,230

86

105

1,422

Property name
Ooedo-Onsen Monogatari
Reoma Resort
Ooedo-Onsen MonogatariIse-shima

Fixed
rent
(Note 3)315
(Note 6)

Variablerent(Note 4)

Ito Hotel New Okabe
Ooedo-Onsen Monogatari
Atami
Ooedo-Onsen Monogatari
Toi Marine Hotel
Ooedo-Onsen Monogatari
Awara
Ooedo-Onsen Monogatari
Kamoshika-so
Ooedo-Onsen Monogatari
Ikaho
Ooedo-Onsen Monogatari
Kimitsu-no-moriOoedo-Onsen Monogatari
Nagasaki Hotel Seifu
Ooedo-Onsen Monogatari
Kounkaku- 11 -

(Note 1) “GOP” refers to gross operating profit, which is the amount remaining after deducting expenses
arising directly from managing each facility, such as labor expenses and general andadministrative expenses, from each facility’s sales. “Modified GOP” is the amount remaining
after deducting real estate-related expenses for the property to be borne by the tenant (including,but not limited to, taxes and public charges, non-life insurance premiums and land and house
rent, but excluding an amount equivalent to Secondary rent (defined below in Note 5)) from the
GOP of each facility for the Modified GOP Calculation Period (defined below in Note 4). The
same applies hereinafter.
(Note 2) “Primary rent” refers to the sum of the fixed rent and the variable rent. The same applies
hereinafter.
(Note 3) “Fixed rent” refers to the monthly amount provided for in each facility’s lease agreement. The
same applies hereinafter.
(Note 4) “Variable rent” refers to the amount obtained by multiplying each facility’s modified GOP for
the most recent 1-year period (for the 6 months starting from December of each year, this means
the 1-year period from March of that year to February of the following year; for the 6 months
starting from June of each year, this means the 1-year period from September of the previous
year to August of that year) (these 1-year periods are referred to as “modified GOP Calculation
Periods”) regarding each facility by the specific rate provided for in each lease agreement (yearly;
the monthly amount is 1/12th thereof). The same applies hereinafter.
(Note 5) “Secondary rent” refers to an amount equivalent to the total amount of taxes, public charges,
nonlife insurance premiums, and other expenses (real estate management expenses) to be borneby the Investment Corporation for each facility owned by the Investment Corporation. The same
applies hereinafter.
(Note 6) Land rent based on the fixed-term land lease agreement is included in the fixed rent.
(Note 7) Rents of properties are rounded down to the nearest million yen. Therefore, the total of each
property’s rent, the total of fixed rents, the total of variable rents and the total of secondary rents
may not add up to the figure indicated in the Total column.

OperatingexpensesNon-operating
expenses
Borrowings

Outstanding
Investment
Units

Distribution
per unit

・ Of the expenses related to leasing activities, which are a major component of operating
expenses, the expenses related to leasing activities other than the depreciation arecalculated based on past actual figures and by reflecting factors that cause expenses tofluctuate.
・ Taxes and public charges is assumed to be 92 million yen for the fiscal period ending May
2020, and 92 million yen for the fiscal period ending November 2020.
・ Building repair expenses are not expected to arise, as these expenses will, in principle, beborne by the tenant based on the lease agreement effective as of the date of this document.
・ Depreciation, which is calculated using the straight-line method inclusive of incidental
expenses and additional capital expenditure in the future, is assumed to be 438 million
yen for the fiscal period ending May 2020, and 445 million yen for the fiscal period ending
November 2020.
・ The total amount of interest expenses and other borrowing-related expenses is expected
to be 133 million yen for the fiscal period ending May 2020, and 127 million yen for the
fiscal period ending November 2020.
・ The balance of loans outstanding as of November 30, 2019 is 15,558 million yen.
・ In the fiscal period ending May 2020 and the fiscal period ending November 2020, it isassumed that the scheduled repayment of 186 million yen will be made separately.
・ In the fiscal period ending May 2020, short-term loans (340 million yen) and the current
portion of long-term loans (3,568 million yen) will be due for repayment on May 29, 2020
under the assumption that the same amounts are refinanced.
・ In the fiscal period ending November 2020, the current portion of long-term loans (2,122
million yen) will be due for repayment on November 30, 2020 under the assumption thatthe same amounts are refinanced.
・ The assumed number of investment units issued and outstanding as of the date of thisdocument is 235,347, and it is assumed that the number of investment units will notchange due to any additional issuance of new investment units or another reason before
November 30, 2020.
・ Distribution per unit is calculated based on the expected number of investment units
issued and outstanding as of the end of the fiscal periods ending May 2020 and November
2020 (235,347 units).
・ Distribution per unit (excluding excess cash distribution) is calculated based on the policy
for cash distributions provided for in the Investment Corporation’s articles of- 12 -

(Excludingexcess cash
distribution)
Excess cash
distribution
per unit

Other

incorporation.
・ Distribution per unit (excluding excess cash distribution) may change due to various
factors, including changes of portfolio, changes in rent revenue due to a relocation oftenant, etc., the occurrence of unexpected capital expenditures, and other reasons.
・ Recording of allowance for temporary difference adjustments of 2,824,164 yen is
expected concerning the difference in accounts for tax and accounting purposes associatedwith recording of asset retirement obligation.
・ Regarding conducting excess cash distribution, the Investment Corporation will have abasic policy of conducting excess cash distribution of which amount will be equivalent to
the increased amount of allowance for temporary difference adjustments. Pursuant to thepolicy, it is assumed that 12 yen of excess distribution per unit will be conducted in eachof the fiscal periods ending May 2020 and ending November 2020.
・ It is assumed that revisions that affect the above forecast figures will not be made to laws
or ordinances, tax systems, accounting standards, listing regulations, or rules or the likeset by The Investment Trusts Association, Japan.
・ It is assumed that unforeseen material changes in general economic trends, in real estatemarket conditions, or in any other factors will not occur.

2.3. Investment Risks
Disclosure is omitted because there are no significant changes from “Investment Risks” set out in the mostrecent periodic securities report (yuka shoken hokokusho) (submitted on August 26, 2019).

- 13 -

2. Financial Statements
2.1. Balance Sheets
As of May 31, 2019
AssetsCurrent assets
Cash and deposits
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Total property, plant and equipment
Intangible assets
Leasehold interests in land
SoftwareTotal intangible assets
Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Lease and guarantee deposits
Total investments and other assets
Total non-current assets
Total assets- 14 -(Thousands of yen)
As of November 30, 2019

2,001,208
136,232
66,7272,204,168

2,228,615
126,984
6,942
2,362,543

26,145,944(1,926,166)
24,219,777
10,979(508)
10,470
600
(44)
555
2,620
(487)
2,133
11,988,130
36,221,067

26,324,003(2,358,917)
23,965,085
10,979(877)
10,101
600
(61)
538
3,498
(758)
2,740
11,988,187
35,966,652

157,802
3,754
161,556

157,802
2,951
160,75412
185,296
10,089195,399
36,578,023
38,782,191

16
140,673
10,089150,780
36,278,186
38,640,729

As of May 31, 2019
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Leasehold and guarantee deposits
received
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Deduction from unitholders' capital
Allowance for temporary
difference adjustments
Total deduction from unitholders'
capitalUnitholders' capital, net
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets- 15 -(Thousands of yen)
As of November 30, 201917,426350,000
3,941,750
87,838
7,508
866
15,234259,137
66,854
4,746,616

92,949340,000
6,026,630
90,011
10,694
950
42,933261,849
7,048
6,873,067

11,463,000
1,230,724

9,191,620
1,230,706

137,754
12,831,479
17,578,095

138,156
10,560,482
17,433,549

20,653,023

20,653,023(8,643)(11,467)(8,643)(11,467)

20,644,379

20,641,555

559,716

565,624559,716
21,204,095
21,204,095
38,782,191

565,624
21,207,179
21,207,179
38,640,729

2.2. Statements of Income(Thousands of yen)
Fiscal period ended
May 31, 2019
Operating revenue
Leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fee
Administrative service fees
Remuneration for directors(and other officers)
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Interest on tax refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of
non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings(undisposed loss)- 16 -

Fiscal period ended
November 30, 2019

1,434,986
1,434,986

1,440,167
1,440,167

548,074
126,075
1,751
17,2333,600

555,661
125,812
1,738
17,0603,600

39,245735,980
699,005

39,393
743,266
696,901

10
10

10
10

62,35275,774500
138,626
560,389

64,25765,642500
130,400
566,511

11,250
11,250－－

11,250
11,250－－560,389867
5
873
559,516
199
559,716

566,511952(4)
948
565,56261
565,624

577,741

559,716

2.3. Statements of Unitholders’ Equity
6th Fiscal Period (from December 1, 2018 to May 31, 2019)(Thousands of yen)
Unitholders' equity
Unitholders' capital

Surplus

Deduction fromunitholders' capital

Balance at beginning ofcurrent period
Changes of items during
periodTotal net
Total
Unappropriatedassetsretained
unitholders'
Unitholders'
Total
Unitholders' Allowance
Total
equityearnings
capitalsurpluscapitalfordeduction(undisposed
temporary
from
loss)
difference unitholders'adjustments
capital20,653,023(5,819)(5,819) 20,647,203
577,741 577,741 21,224,944 21,224,944(577,541) (577,541)

Dividends of surplus
Excess cash distribution
from allowance fortemporary difference
adjustments(2,824)(2,824)(2,824)

ProfitTotal changes of items
during period
Balance at end ofcurrent period

20,653,023(577,541)(577,541)(2,824)(2,824)

559,516

559,516

559,516

559,516(20,848)(20,848)(2,824)(2,824)(2,824)(18,024)(18,024)(8,643)(8,643) 20,644,379

559,716

559,716 21,204,095 21,204,095

7th Fiscal Period (from June 1, 2019 to November 30, 2019)(Thousands of yen)
Unitholders' equity
Unitholders' capital

Surplus

Deduction fromunitholders' capital

Balance at beginning ofcurrent period
Changes of items during
periodTotal net
UnappropriatedTotal
assetsunitholders'retained
Unitholders'
Total
Unitholders' Allowance
Total
equityearnings
capitalsurpluscapitalfordeduction(undisposed
temporary
from
loss)
difference unitholders'adjustments
capital20,653,023(8,643)(8,643) 20,644,379
559,716 559,716 21,204,095 21,204,095

Dividends of surplus
Excess cash distribution
from allowance fortemporary difference
adjustments(2,824)(2,824)(559,655)(2,824)(2,824)(2,824)

ProfitTotal changes of items
during period
Balance at end ofcurrent period(559,655) (559,655) (559,655)

565,562565,562565,562565,562

5,907

3,083

3,083

－

(2,824)(2,824)(2,824)

5,907

20,653,023(11,467)(11,467) 20,641,555

565,624- 17 -

565,624 21,207,179 21,207,179

2.4. Statements of Cash Distributions
(Yen)
Item

6th Fiscal Period(from December 1, 2018
to May 31, 2019)

7th Fiscal Period(from June 1, 2019
to November 30, 2019)

I. Unappropriated retained earnings
II. Addition of excess distribution
Of which, allowance for temporary
difference adjustments
III. Distribution amount[Distribution amount per unit]
Of which,
Distribution amount from earnings[Of which, excess cash distribution per unit]
Of which,
Allowance for temporary difference
adjustments

559,716,337
2,824,164
2,824,164565,624,140
2,824,164
2,824,164

562,479,330[2,390]559,655,166

568,363,005[2,415]565,538,841[2,378]2,824,164[2,403]2,824,164[Of which, excess cash distribution per unit
(pertaining to allowance for temporary
difference adjustments)]
IV. Retained earnings carried forward

[12]

[12]

Method of calculating distribution amount61,171

85,299As described above, distribution per unit
for the fiscal period under review is 2,466
yen.
Concerning cash distribution (excludingexcess cash distribution), in order to ensurethat the maximum amount of cash
distribution of earnings would be included indeductible expenses based on application of
special provisions for taxation on investment
corporations (Article 67-15, Paragraph 1 of
the Special Measures Concerning Taxation
Act), the Investment Corporation decided to
distribute almost the entire amount of theearnings provided in Article 136, Paragraph
1 of the Act on Investment Trusts andInvestment Corporations, excluding the
portion where cash distribution perinvestment unit would be less than JPY1. As
a result, the Investment Corporation declareda cash distribution per investment unit
(excluding excess cash distribution) of 2,378
yen.
In addition, pursuant to the policy for“distribution of money in excess of profits”
as stated in its articles of incorporation, theInvestment Corporation decided to make a
distribution for the 2,824,164 yen inallowance for temporary difference
adjustments for the purpose of reflecting theeffect on distributions of the difference inaccounts for tax and accounting purposes inassociation with expenses related to asset
retirement obligations (as defined in Article
2, Paragraph 2, item 30 (b) of the Investment
Corporations Accountings Ordinance). This
resulted in distribution of allowance fortemporary difference adjustments of 12 yen
per investment unit.

As described above, distribution per unit
for the fiscal period under review is 2,415
yen.
Concerning cash distribution (excludingexcess cash distribution), in order to ensurethat the maximum amount of cash
distribution of earnings would be included indeductible expenses based on application of
special provisions for taxation on investment
corporations (Article 67-15, Paragraph 1 of
the Special Measures Concerning Taxation
Act), the Investment Corporation decided to
distribute almost the entire amount of theearnings provided in Article 136, Paragraph
1 of the Act on Investment Trusts andInvestment Corporations, excluding the
portion where cash distribution perinvestment unit would be less than JPY1. As
a result, the Investment Corporation declareda cash distribution per investment unit
(excluding excess cash distribution) of 2,403
yen.
In addition, pursuant to the policy for“distribution of money in excess of profits”
as stated in its articles of incorporation, theInvestment Corporation decided to make a
distribution for the 2,824,164 yen inallowance for temporary difference
adjustments for the purpose of reflecting theeffect on distributions of the difference inaccounts for tax and accounting purposes inassociation with expenses related to asset
retirement obligations (as defined in Article
2, Paragraph 2, item 30 (b) of the Investment
Corporations Accountings Ordinance). This
resulted in distribution of allowance fortemporary difference adjustments of 12 yen
per investment unit.

- 18 -

2.5. Statements of Cash Flows(Thousands of yen)
Fiscal period ended
May 31, 2019
Cash flows from operating activities
Profit before income taxes
Depreciation
Borrowing related expenses
Interest income
Interest expenses
Subsidy income
Loss on tax purpose reduction entry of noncurrent assets
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Refund of leasehold and guarantee deposits
received
Subsidies received
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of short-term borrowings
Repayments of long-term borrowings
Distributions paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 19 -

Fiscal period ended
November 30, 2019

560,389
428,782
75,774(10)
62,352(11,250)

566,511434,21165,642(10)
64,257－

11,250－(41,847)(67,079)
3,361(68,975)(2,643)441
422
950,96610(65,389)(973)
884,614

41,203
27,698(12,896)
1,125
2,173
2,711
379
1,193,008
10(61,071)(867)
1,131,078(198,020)(144,673)－(18)

11,250(186,770)－(144,691)

350,000
6,576,106－(7,262,750)(580,365)(917,009)(219,165)
895,148
675,983－－(10,000)(186,500)(562,479)(758,979)
227,407675,983
903,390