Segment Information (IFRS)

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Segment Information

The reference figures provided in this document have been prepared under IFRS.

  • *The revenue and profit of the Rental business has been paratially transferred in consideration of the establishment of a new hotel business in FY2019. For comparison, segment information for FY 2018 is presented based on the revised classification in this material.

Segment Information of Revenue

(¥ Million)

Segment Information of Revenue

(¥ Million)

2016/112017/112018/112019/112020/11  2Q
Revenue 49,818 57,754 61,543 60,727

45,050

Revitalization Business 25,809 40,268 34,793 31,012 27,679
Development Business 13,138 5,197 13,261 14,346 9,913
Rental Business 5,324 6,237 5,979 5,993 2,760
Fund and Consulting Business 2,329 2,802 3,038 3,773 2,186
Property Management Business 4,005 4,637 5,232 5,888 2,833
Hotel Business 0 0 557 1,089 270
Other * 341 0 0 0 0
Internal Transactions (1,131) (1,388) (1,319) (1,375) (592)
2016/112017/112018/112019/112020/11   2Q 
Operating profit 9,279 9,833 10,875 12,690

2,170

Revitalization Business 4,001 7,845 6,770 7,754 5,565
Development Business 3,674 (408) 1,487 1,528 (4,720)
Rental Business 2,389 2,581 2,453 2,367 1,038
Fund and Consulting Business 951 1,273 1,616 2,365 1,480
Property Management Business 141 278 453 504 354
Hotel Business 0 0 36

99

(458)

Other * (17) (74) 0 0

0

Corporate expenses (1,860) (1,661) (1,942) (1,928) (1,089)


Performance by business segment

Revitalization Business

During the six months ended May 31, 2020, the segment sold 29 properties which had been renovated, including Kagurazaka Plaza Building (Shinjuku-ku, Tokyo), T’s garden Kita Kashiwa (Kashiwa-shi, Chiba), Dai-Nippon Consultant Building (Toshima-ku, Tokyo). In addition, the segment sold four units in the Restyling Business from Ecology Ochiai Residence (Shinjuku-ku, Tokyo), Hilltop Yokohama Higasi Terao (Yokohama-shi, Kanagawa) and others.
During the six months ended May 31, 2020, it also acquired a total of 20 income-generating office buildings and apartments for renovation and sales purposes and six land lots.
In addition, the Group reviewed the valuation of its income-generating properties in view of the impact of COVID-19, and revalued some properties at net realizable value in accordance with the provisions of IAS 2 “Inventories.” As a result, cost of revenue was increased by regarding valuation loss of ¥1,457 million.
As a result, revenue in this segment was ¥27,679 million (up 62.1% year on year) and the segment profit was ¥5,565 million (up 10.7%).

Development Business

During the six months ended May 31, 2020, the segment focused on the sale of newly built condominium and detached houses for which there was firm demand. The segment sold 240 units at THE Palms Sagamihara Park Brightia (Sagamihara-shi, Kanagawa) and sold 26 detached houses at such properties as THE Palms Court Kokubunji Koigakubo (Kokubunji-shi, Tokyo) and THE Palms Court Funabashihoten (Funabashi-shi, Chiba). In addition, the segment sold one commercial facility.
During the six months ended May 31, 2020, it also acquired one land lot for apartment project, one land lot for commercial facility project and land lots for 34 detached houses.
In addition, in the Development Business, the Group reviewed the valuation of its income-generating properties in view of the impact of COVID-19, and revalued some properties at net realizable value in accordance with the provisions of IAS 2 “Inventories.” As a result, cost of revenue was increased by regarding valuation loss of ¥6,223 million.
As a result, revenue in this segment was ¥9,913 million (down 3.1% year on year) and the segment loss was ¥4,720 million (in comparison with segment profit of ¥1,541 million in the same period of the previous fiscal year).

Rental Business

During the six months ended May 31, 2020, while the segment sold 15 buildings of its inventory assets held for leasing purposes, it newly acquired 13 properties including income-generating office buildings and apartments. In addition, the segment made efforts to lease vacancies out following acquisitions and also focused on leasing activities for its holding non-current assets and inventory assets.
As a result, revenue in this segment was ¥2,734 million (down 6.8% year on year) and the segment profit was ¥1,038 million (down 12.1%).

Fund and Consulting Business

During the six months ended May 31, 2020, while ¥90,084 million was added due to new asset management contracts, ¥10,748 million was subtracted due mainly to property dispositions by funds, from to the balance of assets under management (Note) ¥846,478 million for the end of the previous fiscal year. The balance of assets under management as of May 31, 2020, was ¥925,813 million.
As a result, revenue in this segment was ¥2,180 million (up 66.6% year on year) and the segment profit was ¥1,480 million (up 114.6%).
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business

During the six months ended May 31, 2020, the segment made efforts to win new contracts and maintain existing contracts. Consequently, the total number of properties under management was 689 as of May 31, 2020, an increase of 57 from May 31, 2019, with the total comprising 436 office buildings,hotels,schools and other such properties, and 253 condominiums and apartments.
As a result, revenue in this segment was ¥2,273 million (down 1.9% year on year) and segment profit was ¥354 million (up 22.7%).

Hotel Business

Revenue and segment profit or loss for the six months ended May 31, 2020 were both significantly lower than anticipated, because the Group temporarily closed existing hotels, Tosei Hotel COCONE Kanda and Tosei Hotel COCONE Ueno, responding to the suppression of economic activities and the local government’s request to suspend operations due to the global spread of COVID-19.
As a result, revenue in this segment was ¥269 million (down 54.4% year on year) and segment loss was ¥458 million (in comparison with segment profit of ¥131 million in the same period of the previous fiscal year).