Recap of Mid-term Plan
"Seamless Growth 2020"

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"Seamless Growth 2020"(December 1, 2017 - November 30, 2020)

The Tosei Group has developed "Seamless Growth 2020", its medium-term management plan for the period from December 1, 2017 to November 30, 2020. We strive to establish new income-generating business, while targeting further growth of the five existing businesses and increases in their operating profit, and aiming for sustainable growth and expansion of business scale.

Fundamental Policy

Growth Strategy

Achieve further growth in the existing five businesses

Establish new profit-making businesses in addition to the existing five businesses

Strengthen the Business Base

Improve financial conditions to support the expansion of business scale

Strengthen optimum corporate governance

Increase employee satisfaction, strengthen organizational capabilities and improve productivity

Enhance Tosei's brand value

Performance Indicator Guidance

Profit Growth(consolidated)

Revenue for the final fiscal year(November 30, 2020)
¥100 billion
(FY2017 1.7 times

Profit before tax for the final fiscal year(November 30, 2020)
¥12 billion
(FY2017 1.3 times

Average profit growth rate of the three years
10% or more

Average ROE of the three years
12% or more

Financial Soundness

Expansion of the ratio of Stable Businesses

(Gross profit Margin:achieve 50/50 weight balance between Trading Business and Stable Business*)

*Established Hotel Business as a new segment in FY2019.Of the six existing business segments, the Revitalization Business and the Development Business are defined as the “trading business” and the Rental Business, the Fund and Consulting Business, the Property Management Business and Hotel Business are defined as the “stable business.” Underthis plan, gross profit of the trading business excludes selling expenses pertaining to property trading.

 Results for FY2018

In the Revitalization Business, the Group made steady progress in selling assets such as income-generating office buildings and apartments, while in the Development Business, the Group pushed ahead with sales of condominiums and detached houses. In addition, other than usual acquisition methods, the Group also utilized an acquisition method of M&A, proactively acquiring income-generating properties and land for development as future sources of income. As a result, consolidated revenue for the fiscal year under review totaled ¥61,543 million (up 6.6% year on year), operating profit was ¥10,875 million (up 10.6%), profit before tax was ¥10,171 million (up 12.4%), and profit for the year was ¥6,852 million (up 11.3%).

 Performance Forecast for FY2019

Forecasts for FY2019, revenue is ¥71.5 billion (up 16.2% year-on-year), operating profit is ¥12.0 billion (up10.8%) and profit for the year is ¥7.7 billion (up12.5%).

(¥ million)

% % % %
Revenues 49,818 100.0 57,754 100.0 61,543 100.0 71,510 100.0
Operating profit 9,279 18.6 9,833 17.0 10,875 17.7 12,052 16.9
Profit before tax 8,450 17.0 9,049 15.7 10,171 16.5 11,230 15.7
Profit for the year 5,547 11.1 6,155 10.7 6,852 11.1 7,708 10.8