Financial Results for the First Three Months of the … · 4,001 7,845 3,793 9,279 9,833...

Tokyo Stock Exchange, First Section Code : 8923

Singapore Exchange, Mainboard Code : S2D

Tosei Corporation

Copyright © 2018 TOSEI CORPORATION, All Rights Reserved.

Financial Results for the First Three Months of the Fiscal Year 2018

Tosei Corporation

Tokyo Stock Exchange, First Section Code : 8923Singapore Exchange, Mainboard Code : S2D


3,914 3,658 4,150

3,326

2,198

5,888

963 2,664

247 527 8,450

9,049

10,038

0

2,000

4,000

6,000

8,000

10,000

'16/11期 '17/11期 '18/11期

(百万円）

2,611 2,500 2,847

2,1321,431

3,852 636

1,823

168 399 5,547

6,1556,699

14.4% 14.1%13.7%

0%

4%

8%

12%

16%

0

2,000

4,000

6,000

8,000

'16/11期 '17/11期 '18/11期

(百万円） ROE

-17 -74 6141 278 108

9511,273

377

2,3892,581

630

3,674

-408 -145

4,001

7,845

3,793

9,2799,833

4,341

-1,860 -1,661 -429

-2,000

0

2,000

4,000

6,000

8,000

10,000

12,000

'16/11期 '17/11期 '18/11期 1Q

(百万円）

-1,131 -1,388 -306341 0 72

4,005 4,6371,230

2,329 2,802

687

5,324 6,237

1,434

13,1385,197

766

25,809 40,268

14,425

49,818

57,754

18,310

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

'16/11期 '17/11期 '18/11期 1Q

(百万円）

不動産流動化事業

不動産開発事業

不動産賃貸事業

ﾌｧﾝﾄﾞ・ｺﾝｻﾙﾃｨﾝｸﾞ事業

不動産管理事業

その他

内部取引

13,527 14,67718,310

17,128 11,682

49,520

8,484 15,618

10,679

15,776 49,818

57,754

67,830

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

'16/11期 '17/11期 '18/11期

(百万円） 1Q 2Q 3Q 4Q

4,127 3,828 4,341

3,548

2,413

6,605 1,148

2,839

456 753

9,2799,833

10,946

0

2,000

4,000

6,000

8,000

10,000

'16/11期 '17/11期 '18/11期

（百万円）

(¥million)

(Other)

（Other)（Other)

1

（予想）（予想）

（予想）

（Other)

FY2018 First Three Months / Full Year Forecasts - Highlights-

【 Revenue 】【Profit Before Tax】【Operating Profit】

＜ Segment Revenue＞＜ Segment Operating Profit＞【Profit for the Period】

(¥million) (¥million)

(¥million) (¥million)

(¥million)(Forecast)

(Forecast)

(Forecast)

(Forecast)

(Forecast)

FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018

FY2016 FY2017 FY2018FY2016 FY2017 FY2018

(Other)

(Other)(Development)

(Development) FY2016 FY2017 FY2018

Revenue ¥18.3 billion (up 24.7% yr/yr), Profit for the Period ¥2.8 billion (up 13.9% yr/yr). Large size property sales drove the Company’s sales performance. Achieved more than 40% of the Profit forecast.

-559 -1,131 -1,388

694 3413,574 4,005 4,637

2,444 2,329 2,8024,262 5,324 6,237

6,605

13,1385,197

25,986

25,809 40,268

43,006

49,818

57,754

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY2015 FY2016 FY2017

（¥ million）

Revitalization

Development

Rental

Fund and Consulting

Property Management

Other

Internal Transactions

Revitalization

Development

Rental

Fund and Consulting

Property Management

Other

Internal Transaction

Copyright © 2018 TOSEI CORPORATION, All Rights Reserved. 2

Overview of Consolidated Financial Results

(\million)

% % %

14,677 100.0 18,310 100.0 3,632 24.7

9,187 62.6 12,119 66.2 2,931 31.9

5,489 37.4 6,190 33.8 701 12.8

1,791 12.2 1,877 10.3 86 4.8

Expences Related to Property Marketing Activities 488 3.3 504 2.8 15 3.2

Selling, General and Administrative Expenses(Net of Expences Related to Property Marketing Activites)

1,302 8.9 1,373 7.5 70 5.4

147 1.0 93 0.5 -53 -36.2

17 0.1 65 0.4 47 273.0

3,828 26.1 4,341 23.7 513 13.4

-169 - -191 - -21 -

3,658 24.9 4,150 22.7 491 13.4

1,158 - 1,302 - 144 -

2,500 17.0 2,847 15.6 346 13.9

2,528 17.2 2,875 15.7 346 13.7

51.79 58.92 7.13 13.8EPS(\)

Other Income

Other Expenses

Finance Income/Cost (Net)

Income Tax Expense

Operating Profit

Profit Before Tax

FY2017 1Q

Profit For the Period

Comprehensive Income for the Period

FY2018 1Q yr/yr change

Cost of Revenue

Selling, General and Administrative Expenses

Revenue

Gross Profit


Revitalization Business

Kunitachi-shiIncome-generating Building

Itabashi-kuIncome-generating Building

Soka-shiIncome-generating Apt Building

Musashino-shiIncome-generating Building

Revenue / Gross Profit Margin Major Properties Sold

3

Whole buildings ： Sold 13 buildings including office buildings and apt building, etc.(Breakdown of sold properties : property sales over ¥1 billion : 2 properties (0 properties up/down yr/yr), property sales under ¥1 billion : 11 properties (12 properties down yr/yr)

Restyling：Sold 4 units in “Hilltop Yokohama-Negishi” (7 units down yr/yr)

9,82710,501

6,618

10,897

894

14,310

437

390

440 259

114

10,939

7,009

11,338 10,981

14,425 35.3%

24.3%

24.9%

7.3%

30.1%

0%

5%

10%

15%

20%

25%

30%

35%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

'17/11期 1Q '17/11期 2Q '17/11期 3Q '17/11期 4Q '18/11期 1Q

（百万円）

売上高（1棟販売・トーセイリート向け）売上高（1棟販売・一般向け）売上高（Restyling)売上総利益率(¥million)

*The gross profit is net of Cost of Revenues including the following write-down amounts

under LCM: FY2017: -5 million yen

FY2017 1Q FY2017 2Q FY2017 3Q FY2017 4Q FY2018 1Q

Revenue (Restyling)

Revenue (Whole building to general customers)

Revenue (Whole building to REIT)

Gross Profit Margin

(\million)

1Q Full Year 1QFull Year

(forecast)

Revenue 10,939 40,268 14,425 39,375

Gross Profit 3,863 9,186 4,339 9,023

Operating Profit 3,417 7,845 3,793 7,067

No. of Sales (Restyling) 11 45 4 26

No. of Sales (Whole buildings, Others) 25 58 13 59

FY2017 FY2018

FY2017

(whole financial year)

Gross Profit Margin

22.8％


(\million)


(forecast)

Revenue 969 5,197 766 14,880

Gross Profit 175 976 132 3,328

Operating Profit -173 -408 -145 1,657

No.of Sales (Sales in lots) 22 121 17 138

No.of Sales (Whole buildings) - - - 89

No.of Sales （Condominiums） - - - 2

FY2017 FY2018

Development Business

Revenue / Gross Profit Margin Major Properties Sold

Comodo Casa Wakamatu 6-chome

(Sold by Urban Home Corporation)

THE Palms Court Kashiwa-Hatsuishi(Total units 95/ 3 Units left)

4

THE Palms Setagaya Yutenji Master PlaceDelivery starts from March, 2018

Contracted Units : 83 units

Total Units : 89 units

(contract rate 93% as of end of Feb. 2018)

Sold 17 detached houses in projects such as THE Palms Court Kashiwa-Hatsuishi and THE Palms Court Kamakura-Shiromeguri.

Condominium’s (89 units) delivery will start from March, 2018 (FY2018 2Q).

9691,175

1,3541,698

766

969

1,175

1,354

1,698

766

18.1%19.1%

20.0%

17.9%17.3%

0%

5%

10%

15%

20%

0

500

1,000

1,500

2,000

'17/11期 1Q '17/11期 2Q '17/11期 3Q '17/11期 4Q '18/11期 1Q

（百万円）戸建・宅地・請負

売上総利益率(¥million)

*The gross profit is net of Cost of Revenues including the following write-down amountsunder LCM: FY2017: -28 millions

FY2017


Gross Profit Margin

18.8％


Detached Houses / Land Lots / Housing Construction

Gross Profit Margin (All)


26,387 27,360

15,005

5,746

9,576

21,321

16,472

2,694

2,202

1,765

1,433

793

4,970

2,808

5,979

6,631

7,544

4,816

880

2,033

6,956

2,496

1,332

(11,179)

45,168

66,842

49,809

26,560

10,000

20,000

30,000

40,000

50,000

60,000

70,000

'15/11期 '16/11期 '17/11期 '18/11期

（百万円）

戸建・土地（開発）

賃貸マンション（開発）

分譲マンション（開発）

オフィス・ホテル・商業施設（開発）

土地等（流動化）

マンション（流動化）

オフィス（流動化）

Contract Basis Progress

¥26.5 billion.(End of Feb. 2018)

Acquisition Progress(delivery basis, expected

disposition values)

¥15.3 billion.

Acquisition Target

for FY2018

¥80 billion

Total acquisition amount was ¥15.3 billion on a delivery basis (expected disposition values)Revitalization Business：20 Properties - 10 Office Properties, 7 Apartments, 3 Land LotsDevelopment Business：4 Properties - 1 Land Lot for Condominium Project, 3 Detached House Projects

As of the end of February 2018, total acquisition amount progressed to about ¥26.5 billion on a contract basis.

Acquisitions in Revitalization and Development Businesses -Acquisition Amount and Inventories-

15,380

*For more details for inventory expected disposition value please look P11～P12

Narashino-shiIncome-generating Building

Yokohama-shiIncome-generating Building

Nishi-Tokyo-shiIncome-generating Apt Building

Ota-kuEmpty Building

5

Trends in Annual Acquisition Amounts(delivery basis and expected revenues) Breakdown of Inventories

(¥million)

FY2015 FY2016 FY2017 FY2018 1Q

24,848 26,387 27,360

15,005

9,0939,576

21,321

16,472

4,424 2,202

1,765

1,433

3,723 4,970

2,808

5,979

6,631

7,544

8806,966

2,033

6,956

2,496

(16,700)

49,054

45,168

66,842 66,509

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY2014 FY2015 FY2016 FY2017

（¥ million）

Detached houses・Land（Development）

Rental Apartments（Development）

Condos（Development）

Offices・Hotels・Commercial facilities（Development）

Land etc. (Revitalization）

Income-generating Apt buildings(Revitalization）

Offices(Revitalization）

Detached Houses, Land (Development)

Rental Apartment (Development)

Condos (Development)

Office, Hotels, Commercial Facilities (Development)

Land, etc., (Revitalization)

Income-generating Apt Building (Revitalization)

Offices (Revitalization)


15 16 18 21 26 2612 10 8 7

6 6

33 25 26

55 57

6860

51 52

83 89

100

0

20

40

60

80

100

'13/11 '14/11 '15/11 '16/11 '17/11 18/2

Current assets*

Restyling

Non-Current assets*

(\million)


(forecast)

Revenue 1,482 6,237 1,434 6,709

Gross Profit 727 2,864 671 3,304

Operating Profit 660 2,581 630 3,009

FY2017 FY2018

Increase and Decrease from the End of the Previous Fiscal Year

New Acquisition +16Decrease by Sale -7

Other (Leasing Started) +2

Rental Business

Revenue / Gross Profit Margin Breakdown of Properties Held by Tosei

*The revenue includes internal transactions.

*Only includes income-generating properties

Office, Commercial Buildings : 38Apartment : 55

Other : 7

6

638 605 614 635753

30 29 22 2221

813892

985

947 659

1,482 1,5271,622 1,605

1,434

49.0%46.1%

42.9%

45.9% 46.8%

0%

10%

20%

30%

40%

50%

60%

70%

0

200

400

600

800

1,000

1,200

1,400

1,600

'17/11期 1Q '17/11期 2Q '17/11期 3Q '17/11期 4Q '18/11期 1Q

（百万円）

売上高(流動資産) 売上高(Restyling)

売上高(固定資産) 売上総利益率(¥million)

The number of properties owned by Tosei increased to 100 (an increase of 11 properties from the end of the previous

year).Rental revenue from non-current assets share increased to more than 50% of the total rental revenue, due to

transferring part of the rental properties to non-current assets in the end of FY2017, for long-term holding purpose.

FY2017


Gross Profit Margin

45.9％


Revenue (Current Assets)

Revenue (Restyling)

Revenue (Non-current Assets)

Gross Profit Margin


(\million)


(forecast)

Revenue 485 2,802 687 2,715

Gross Profit 442 2,538 654 2,589

Operating Profit 159 1,273 377 1,187

FY2017 FY2018

17,434 29,358 36,177 45,997 45,997

149,349 113,057

300,643 287,924

392,114

461,143

98,679 170,114

91,789 124,084

114,097

114,097

248,028

300,607

421,792 448,186

552,208

621,237

0

100,000

200,000

300,000

400,000

500,000

600,000

'13/11 '14/11 '15/11 '16/11 '17/11 '18/2

REIT AM

私募ファンドAM

CRE

（百万円）

238 262 270 295365

25

126 54

192

217

41

534

180

782

139

153104

485

1,176

498

642687

91.3% 90.6%94.5%

86.9%

95.3%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

'17/11期 1Q '17/11期 2Q '17/11期 3Q '17/11期 4Q '18/11期 1Q

（百万円)

AMフィーアクイジションフィーディスポジションフィー仲介手数料･その他売上総利益率

Revenue / Gross Profit Margin Balance of Assets Under Management

*1 ¥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) are recalculated.

*1

*2 The purple portion indicates the assets under consulting agreements of CRE. CRE is methods of investing in and managing corporate real estate efficiently to maximize long-term enterprise value. By undertaking CRE, Tosei conducts comprehensive consulting services from the views of real estate professional.

*1

Fund and Consulting Business

The balance of AUM increased to ¥621.2 billion. ( ¥69.0 billion increase compare to end of the previous fiscal year) On Dec. 2017, a fund structured by our company acquired large-scale residential property “Kawada-cho Comfo-

Garden” (¥43.0 B) from Urban Renaissance Agency, our company has newly started AM contracts with this property.


7

FY2017


Gross Profit Margin

90.6％

c

Increase and Decrease from the End of the Previous Fiscal YearPrivate Funds AM +¥69.0 B (Increase ¥72.2B Decrease ¥3.2B)

(¥million)

*1

*1

*2


AM Fee*1

Disposition Fee

Gross Profit Margin

Acquisition Fee

Brokerage Fee / Other*1

REIT AM

Private Funds AM

CRE*1

300,607


(\million)


(forecast)

Revenue 1,115 4,637 1,230 5,201

Gross Profit 322 1,356 379 1,483

Operating Profit 75 278 108 283

FY2017 FY2018

343 351 351 375 395 390

203 193 196219

270 270

546 544 547

594

665 660

0

100

200

300

400

500

600

700

'13/11 '14/11 '15/11 '16/11 '17/11 '18/2

(No. of buildings)

Buildings, Others

Apartments

757 776844 858 857

357 320305

416 373

1,115 1,0961,149

1,2751,230

28.9% 30.1% 30.0%28.2%

30.8%

0%

10%

20%

30%

40%

50%

60%

0

200

400

600

800

1,000

1,200

'17/11期 1Q '17/11期 2Q '17/11期 3Q '17/11期 4Q '18/11期 1Q

（百万円）

PM・BM報酬など

スポット工事・手数料など

売上総利益率

（スポーツクラブ運営事業等）

Example of Properties Under Management

Property Management Business

Revenue / Gross Profit Margin The Number of Properties Under Management


8Office School Nursery School

Condominium Commercial Facility Hotel

(¥million)

2,6672,906

3,237

907

1,098

1,3993,574

4,005

4,637

27.4% 27.2%29.3%

0%

10%

20%

30%

40%

50%

0

1,000

2,000

3,000

4,000

5,000

FY2015 FY2016 FY2017

（¥ million）

Repair works, commissions and fees

PM・BM fees

Gross profit margin

The total number of properties under management was 660 as of February 28, 2018. (5 properties decreasefrom the end of the previous fiscal year )

Earnings from PM and BM fee, etc. ensure stable profits.

FY2017


Gross Profit Margin

29.3%


Condo/ Apt Management

Office Building Management

(Office, Commercial Facility, School, Hotel, Nursery, etc. )

Repair Works, Commission and Fees

PM / BM Fees

Gross Profit Margin


Acquisition +8,843

Constructive/Value-added etc., +2,297

Decrease

FactorDisposition -10,699

-10,699 +11,140

Increase

Factor

FY2018 1Q(\million)

Total

Summary of Balance Sheet (Consolidated)I. –Assets-

(￥million)

End of

Nov. 2017Decrease Increase

End of

Feb. 2018

122,550 124,675

23,750 24,898

59,718 -10,699 +11,140 60,159

33,665 -139 +134 33,659

5,416 5,957

+2,125

+1,148

+540

Total Assets

Cash and

Cash Equivalents

Inventories

(Properties)

Investment Properties /

PPE

Other Assets

A

A：Change in inventory

9

Inventories increased ¥4.4 billion from the end of the previous fiscal year. The increase was attributable to new properties purchased and construction, etc., which exceeded decreases due to properties sold.


(￥million)

End of

Nov. 2017Decrease Increase

End of

Feb. 2018

122,550 124,675

76,391 76,695

67,123 -12,814 +12,173 66,482

Current Borrowings 6,449 -1,484 +3,140 8,105

Non-current Borrowings 60,674 -11,329 +9,032 58,377

9,268 10,212

46,158 47,980

37.7 38.5

0.94 0.87

Equity

Equity Ratio (%)

Net D/E Ratio -0.07

Total Liabilities/

Equity

Total Liabilities

Borrowings

Other Liabilties

+2,125

+303

+944

+1,821

+0.8

Summary of Balance Sheet (Consolidated). -Liabilities/Equity-

10

A

B

C

B： Change in EquityA： Change in borrowings

C: Financial Soundness

• The repayment of borrowings by sales was ¥8.2 billion.

• They resulted in decrease of debt balance by ¥0.6billion from the end of the previous fiscal year.

• Equity ratio is 38.5% (up 0.8 points).• Net D/E Ratio decreased to 0.87 times (down 0.07

points) due to increase in equity capital and decrease in debt

• Total equity increased ¥1.82 billion yen from the end of the previous year, reflecting an increase of ¥2.84 billion yen in profits as well as the payment of ¥1.2 billion yen for dividends.

New Borrowings +143

Non-current → Current Portion +2,997

New Repayments -474

Other (Refinance, etc.) -1,009

New Borrowings +8,012

Other +1,020

Repayments up on Disposition -7,816

Other Repayments (Refin/Maturity, etc.) -515

Non-current → Current Portion -2,997

-12,814 +12,173 Total

Current

Increase

Factor

Decrease

Factor

Non-

Current

Increase

Factor

Decrease

Factor

（\million） 1Q

• ¥8.1 billion of new borrowings incurred to finance acquisition of 24 properties (book value ¥8.8 billion).


(\million)

Breakdown of Inventories

No. of

properties

No. of

properties

Office, Commercial buildings 25 4 17,651 23,695

Hotel 1 1 5,124 10,123

Condo/Apt buildings 54 5 28,135 50,516

Detached houses - 17 6,795 11,791

Other 6 - 2,452 4,295

TOTAL 86 27 60,159 100,422

Balance of Inventories

As of Feb. 28, 2018

Total Expected

Disposition Value100,42260,159 (113properties)

Expected disposition values Total expected

disposition

valueRevitalization DevelopmentRevitalization

【A】

Development

【B】

Property typeInventories

Total

【A】+【B】

15,205 2,445 19,916 3,779

4,539 5,583

18,579 9,555

2,779 2,344

- 6,795 - 11,791

23,698 26,817

2,452 - 4,295 -

39,018 21,141 52,450 47,971

Inventories (Breakdown)

11

• 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-up investments and construction costs. • The condominium buildings and detached houses are counted as each project being one property.

Note: Detached houses and condominiums are classified by one unit’s price.Office, Commercial

buildings24%

Hotel10%

Condo/Apt buildings 50%

Detached houses

12%

Others4%

Property Type(Expected Disposition Value)

The 23 wards of Tokyo38%

Tokyo (except the Tokyo's 23 wards)

20%

Kanagawa23%

Chiba11%

Saitama8%

Area(Expected Disposition Value)

Less than ¥100M41%

Between ¥100M and ¥500M

12%

Between ¥0.5B and ¥1B 15%

Between ¥1B and ¥2B 6%

More than ¥2B 26%

Property Size(Expected Disposition Value)


Balance between inventories and sales volume –There are enough inventories for this fiscal year-

'08/11 '09/11 '10/11 '11/11 '12/11 '13/11 '14/11 '15/11 '16/11 '17/11 '18/2

Office, CommercialBuildings

60,487 31,264 22,251 15,206 18,595 18,497 27,185 34,998 37,820 29,740 23,695

Hotel ― ― ― ― ― ― ― 2,336 4,151 10,123 10,123

Condo / AptBuildings

14,327 12,844 30,589 26,627 23,476 22,709 13,881 23,497 39,573 44,749 50,516

Detached Houses ― ― 558 3,727 7,701 13,225 15,247 11,184 13,673 11,138 11,791

Other 1,672 479 220 1,021 354 393 4,243 2,348 4,208 4,324 4,295

Total 76,487 44,588 53,620 46,581 50,127 54,825 60,557 74,365 99,428 100,076 100,422

(¥million)

Inventories (Expected Disposition Values)

12

(\million)

'15/11 '16/11 '17/11 '18/11 (forecast)

（beginning-of-period） Inventories*1 【A】 60,557 74,365 99,428 100,076

Revenue*2 【B】 32,592 38,948 45,465 54,255

Revenue ÷(beginning-of-period) Inventories*2 【B】÷【A】 54% 52% 46% 54%

*1 Converted by sales assumption*2 Sales from buy and sell business (Revitalization and Development business

Inventories (expected disposition values) totaled ¥100.4 billion as of February 28, 2018

By property type, Condo / Apt Buildings shares 50%.

*2


(\million)

33,555 21,357

Office, Commercial Buildings 22,393 18 34,277 11,884

Condominium 4,307 6 6,802 2,495

Other 1,666 3 4,831 3,165

28,367 27 45,911 17,544

Office, Commercial Buildings 3,417 2 4,776 1,358

Hotel 1,770 1 4,224 2,454

5,188 3 9,000 3,812

33,555 30 54,912 Total 21,357 (A)

Income Tax Expense -7,047 (B)

Unrealized Gain (After Tax) 14,309 (C)（=A+B）

Balance of Book Value

as of End of Feb. 2018Unrealized Gains

Property, Plant and Equipment

Unrealized Gain

(B)-(A)

Total

Property TypeFair Values

(B)

Investment Properties

Balance of

Book Value (A)

NO. of

Properties

Investment properties and PPE(Breakdown)

Total Capital including unrealized gains (after tax) in above

*1

*2

13

Holding Policy

・Decide to include assets based on the conditions, profitability, future value and loan terms of properties, among other factors.

・Consider replacement with inventories by reassessing the portfolios at least once a year.

*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.

Changes in Investment Properties and PPE (Book Value)

As of Feb. 28, 2018

Per Share

Total Capital 【A】 ¥47,980M ¥989.91

Unrealized Gains (after tax)【B】 ¥14,309M ¥295.22

Total (【A】+【B】) ¥62,289M ¥1,285.14

Unrealized profits (after tax) from investment properties and property, plant and equipment stood at ¥14.3 billion. Efforts are being made to gradually increase the number of assets owned by Tosei and expand profit stably through

the acquisition of good assets.

17,097 22,004

25,172

33,555 33,555

41,305 19物件

22物件25物件

30物件 30物件35物件

- 30物件

- 20物件

- 10物件

物件

10物件

20物件

30物件

0

10,000

20,000

30,000

40,000

50,000

'14/11 '15/11 '16/11 '17/11 '18/2 '18/11（予想）

（百万円）

（26物件）（21物

件）（18物件）（16物

件）

41,000（26物件）(¥million)

))

)

) )

No. of

Properties

(Forecast)

*( ) are the number of properties which have rental income


27,092

34,812 39,167

60,745 60,668 58,351

7,315

5,230

9,487

9,378 6,445

8,122

34,407

40,042

48,655

70,124

67,113 66,473

0

20,000

40,000

60,000

'13/11 '14/11 '15/11 '16/11 '17/11 '18/2

（百万円）

短期借入金(1年内長期借入金を含む）長期借入金

1.95%1.73%

1.52%1.30%

1.16% 1.16%

13.6年

14.3年

13.1年

10.5年

16.4年16.7年

4.4年3.8年

4.4年

5.3年

4.5年 4.7年

0

5

10

15

'13/11 '14/11 '15/11 '16/11 '17/11 '18/2

0

（年）

平均借入金利

平均借入期間（固定資産）

平均借入期間（流動資産等）

Borrowings from Financial Institutions Average annual interest rates on borrowings is 1.16% There was a large-scale refinance of non-current assets in previous fiscal year, and the average loan term

increased to above 16 years.

88％

12％

Changes in Borrowing Rate / Period Changes in Borrowing Balance

(¥million)

※3

※1

※2

※2

14*1 The weighted-average rate of borrowing balance of end of each finical 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

27,092

34,812 39,167

60,745 60,668 7,315

5,230

9,487

9,378 6,445

34,407

40,042

48,655

70,124

67,113

0

20,000

40,000

60,000

11/'13 11/'14 11/'15 11/'16 11/'17

（¥ million）

Current borrowings

Non-current borrowings

1.95%1.73%

1.52%1.30%

1.16%

13.60 years

14.25 years

13.06 years

10.49 years

16.42 years

4.38 years

3.76 years

4.36 years

5.28 years

4.47 years

0

5

10

15

11/'13 11/'14 11/'15 11/'16 11/'17

0

（Year）

Average interest rate

Average debt term （Non-current assets）Average debt term （Current assets, etc.）

(year)

Current Borrowings*3

Non-current Borrowings*3

Average Interest Rate*1

Average Debt Term (Non-current Assets)*2

Average Debt Term (Current Assets, etc.) *2


Overview of Segment Results (Consolidated) I. Revenue and Cost of Revenue

15

FY 2018 1QFY 2017 1Q

(¥million,%)

FY 2017 1Q FY 2018 1Q

% % %

Total 14,677 100.0% 18,310 100.0% 3,632 24.7%

Revitalization 10,939 74.5% 14,425 78.8% 3,486 31.9%

Development 969 6.6% 766 4.2% -202 -20.9%

Rental 1,482 10.1% 1,434 7.8% -47 -3.2%

Fund and Consulting 485 3.3% 687 3.8% 202 41.7%

Property Management 1,115 7.6% 1,230 6.7% 115 10.3%

Other 0 - 72 0.4% 72 -

Internal Trancsaction -313 - -306 - 6 -

FY 2017 1Q FY 2018 1Q

% % %

Total 9,187 62.6% 12,119 66.2% 2,931 31.9%

Revitalization 7,076 64.7% 10,085 69.9% 3,009 42.5%

Development 793 81.9% 633 82.7% -159 -20.1%

Rental 755 51.0% 763 53.2% 7 1.0%

Fund and Consulting 42 8.7% 32 4.7% -10 -23.9%

Property Management 792 71.1% 851 69.2% 58 7.4%

Other 0 - 1 2.2% 1 -

Internal Trancsaction -271 - -248 - 23 -8.5%

Revenueyr/yr Change

Cost of Revenueyr/yr Change


Overview of Segment Results (Consolidated) II. Gross Profit and Operating Profit

16

FY 2018 1QFY 2017 1Q

(¥million,%)

FY 2017 1Q FY 2018 1Q

% % %

Total 5,489 37.4% 6,190 33.8% 701 12.8%

Revitalization 3,863 35.3% 4,339 30.1% 476 12.3%

Development 175 18.1% 132 17.3% -43 -24.7%

Rental 727 49.0% 671 46.8% -55 -7.6%



Other 0 - 70 97.8% 70 -

Internal Trancsaction -41 - -57 - -16 38.9%

FY 2017 1Q FY 2018 1Q

% % %

Total 3,828 26.1% 4,341 23.7% 513 13.4%

Revitalization 3,417 31.2% 3,793 26.3% 376 11.0%

Development -173 -17.9% -145 -19.0% 28 -16.2%

Rental 660 44.6% 630 43.9% -30 -4.6%



Other 0 - 6 8.8% 5 -

Corporate Expenses, etc. -312 - -429 - -117 37.4%

Operating Profityr/yr Change

Gross Profityr/yr Change


(\million)

1,779 4,485 2,706

3,658 4,150 491

94 147 53

609 1,632 1,022

-2,155 -1,019 1,136

-427 -425 2

61 -1,483 -1,545

-1 -12 -10

-162 -134 27

225 -1,337 -1,562

-1,952 -1,852 99

-725 -640 85

-1,009 -1,157 -147

-215 -202 13

-0 147 148

-111 1,149 1,260

21,640 23,750 2,109

0 -0 -0

21,529 24,898 3,368

FY2017

1Q (A)

FY2018

1Q (B)

yr/yr Change

(B)-(A)

Cash and Cash Equivalent at Beginning of Period

Effect of Exchange Rate Change on Cash and Cash Equivalents

Cash Flows from / used in Operating Activities

Profit Before Tax

Increase / Decrease in Cash and Cash Equivalents

Depreciation Expense

Increase / Decrease in Inventories

Income Taxes Paid

Other, Net

Cash and Cash Equivalent at End of Period

Cash Flows from / used in Investing Activities

Cash Flows from/used in Financing Activities

Increase / Decrease in Borrowings

Cash Dividends Paid

Interest Expenses Paid

Other, Net

Increase / Decrease in PPE

Increase / Decrease in Investment Properties

Other, Net

Summary of Cash Flow Statements (Consolidated)

*1

*2

17

*3

*2

Cash Flows from Operating Activities *1

Cash flow from operating activities was ¥4.4 billion increase.Mainly due to ;・¥4.1 billion of profit before tax・¥1.6 billion decrease in inventories・¥1.0 billion decrease due to income taxes paid.

Cash Flows used inFinancing Activities*3

Cash flow used in financing activities was ¥1.8 billion decrease.Primarily due to;・¥0.6 billion net decrease in borrowings・¥1.1 billion decrease of cash dividends paid.

Cash Flows used inInvesting Activities*2

Cash flow used in Investing activities was ¥1.4 billion decrease.Mainly due to;・¥1.3 billion payment due to acquisition of subsidiaries’ stock through M&A


(¥million,%)

*The orange portion shows gross profit margin and operating profit margin 18

Earnings Forecasts for FY2018 (disclosed on 10th Jan. 2018)

(forecast)

)

% % % (B)－(A) %

Revenue 49,818 100.0 57,754 100.0 67,830 100.0 10,076 17.4

Revitalization 25,809 51.8 40,268 69.7 39,375 58.0 -893 -2.2

Development 13,138 26.4 5,197 9.0 14,880 21.9 9,683 186.3

Rental 5,324 10.7 6,237 10.8 6,709 9.9 471 7.6

Fund and Consulting 2,329 4.7 2,802 4.9 2,715 4.0 -87 -3.1

Property Management 4,005 8.0 4,637 8.0 5,201 7.7 563 12.2

Others 341 0.7 0 0.0 345 0.5 345 -

-1,131 - -1,388 - -1,396 - -7 -

Gross profit 16,349 32.8 16,816 29.1 19,811 29.2 2,994 17.8

Revitalization 5,214 20.2 9,186 22.8 9,023 22.9 -163 -1.8

Development 5,302 40.4 976 18.8 3,328 22.4 2,352 241.0

Rental 2,670 50.2 2,864 45.9 3,304 49.2 440 15.4

Fund and Consulting 2,193 94.2 2,538 90.6 2,589 95.4 51 2.0

Property Management 1,090 27.2 1,356 29.3 1,483 28.5 126 9.3

Others 14 4.3 0 - 333 96.6 333 -

-136 - -106 - -250 - -144 -

Selling, general and administrative expenses,etc 7,021 14.1 7,153 12.4 8,881 13.1 1,727 24.2

1,806 3.6 1,457 2.5 2,207 3.3 750 51.5

5,214 10.5 5,696 9.9 6,674 9.8 977 17.2

222 0.4 215 0.4 20 0.0 -194 -90.3

270 0.5 44 0.1 4 0.0 -40 -91.0

Operating profit 9,279 18.6 9,833 17.0 10,946 16.1 1,112 11.3

Revitalization 4,001 15.5 7,845 19.5 7,067 18.0 -777 -9.9

Development 3,674 28.0 -408 -7.9 1,657 11.1 2,066 -505.6

Rental 2,389 44.9 2,581 41.4 3,009 44.9 427 16.6

Fund and Consulting 951 40.8 1,273 45.4 1,187 43.7 -85 -6.7

Property Management 141 3.5 278 6.0 283 5.4 4 1.7

Others -17 -5.2 -74 - -82 - -7 9.6

-1,860 - -1,661 - -2,177 - -516 -

Finace income/costs(net) -829 - -784 - -907 - -123 -

Profit before tax 8,450 17.0 9,049 15.7 10,038 14.8 989 10.9

Income tax expenses 2,902 - 2,894 - 3,339 - 445 -

Profit for the year 5,547 11.1 6,155 10.7 6,699 9.9 543 8.8

FY2016 FY2017　(A) FY2018 (B) yr/yr Change

Corporate expenses, etc.



Expenses related to property marketing activities

Selling, general and administrative expenses(net of expenses related to property marketing activities)

Other expenses

Other income


Current Share Price

Trends in Dividends

25.00 30.00

FY2018(Forecast)

8.00

19.6 21.618.6

12.00

20.2

22.00

19.1

16.00

18.7

We will increase earnings per share for the period through sustained growth in profit.By doing so, we seek to pay dividends consistently and increase dividends.

*1 Net Asset Value = Net Asset Value + Unrealized gains (after tax)*1 Fair value of fixed assets are has been calculated by the Company based “Real Estate Appraisal Standards”. For details, please see page 13.*1 Corporate tax is calculated at 33% *1 Calculated at the number of shares issued (excluding treasury stock) as of Feb. 28, 2018.*2 PER = Stock Price / Basic net income per share (¥138.75) as of the announcement of FY2017 (Jan. 10, 2018).

Market Capitalization(As of Apr. 2nd 2018)

Net Book Value(As of end of Feb. 2018)

Unrealized Gain (After Tax)*1

(As of end of Feb. 2018)Net Asset Value*1

(As of end of Feb. 2018)

¥61.7 billion ¥47.9 billion ¥14.3 billion ¥62.2 billion

Stock Price (A)(same as above)

Book Value per Share*1 (B) Unrealized Gain per Share*1 Net Asset Value per Share*1 (C)

¥1,275.00 ¥989.91 ¥295.22 ¥1,285.14

PER*2 PBR (A)÷(B) P/NAV*1 (A) ÷(C)

9.19 1.29 0.99

19

Trends in Dividends

Annual Dividends Per Share(¥)

FY2017FY2013

Payout Ratio(%)

FY2014 FY2016FY2015


経営企画部TEL：03-3435-2864FAX：03-3435-2866

URL : http://www.toseicorp.co.jp

20

Please visit our website.

Accounting Department

Tel：+81 3-3435-2865

Fax：+81 3-3435-2866

URL :https://www.toseicorp.co.jp/english/

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 a recommendation to invest in the Company.

DISCLAIMER

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