Notice Regarding Revision of Full-Year Earnings Forecasts for Fiscal Year Ending November 30, 2014

[Translation]

To whom it may concern

October 15, 2014

Tosei Corporation
Toranomon Tosei Building, 4-2-3 Toranomon, Minato-ku, Tokyo
President and CEO: Seiichiro Yamaguchi
Securities code: 8923 (Tokyo Stock Exchange, First Section)
S2D (Singapore Exchange, Mainboard)
Contact: Director and CFO: Noboru Hirano
TEL: +81-3-3435-2864

Notice Regarding Revision of Full-Year Earnings Forecasts
for Fiscal Year Ending November 30, 2014

Tosei Corporation (the "Company") hereby announces that it decided at a meeting of its Board of Directors held today to revise its full-year earnings forecasts for the fiscal year ending November 30, 2014 (December 1, 2013 to November 30, 2014), which had been originally announced on January 14, 2014. The details are as follows.

  1. 1.Consolidated Earnings Forecast Revision for Fiscal Year Ending November 30, 2014 (December 1, 2013 to November 30, 2014)
     Revenue
    (\ million)    		Operating profit
    (\ million)    		Profit before tax (\ million)Profit for the period attributable to owners of the parent
    (\ million)    		Basic earnings per share for the period (\)
    Performance forecasts (A) 41,817 4,618 3,800 2,309 47.82
    Results (B) 49,565 5,545 4,655 2,808 58.16
    Amount of variances (B-A) 7,747 927 855 499 ―
    Percentage change (%) 18.5 20.1 22.5 21.6 ―
    [Reference] Results for the previous fiscal year ended Nov. 30, 2013 35,070 3,914 3,222 2,006 43.05
    • ※The consolidated financial results for the previous fiscal year ended November 30,2013 are restatements in line with partial changes in accounting policies.
  2. 2.Non-consolidated Earnings Forecast Revision for Fiscal Year Ending November 30, 2014 (December 1, 2013 to November 30, 2014)
     Net sales
    (\ million)    		Ordinary income
    (\ million)    		Net income
    (\ million)    		Net income per share for the period(\)
    Performance forecasts (A) 36,484 3,421 2,087 43.23
    Results (B) 45,042 4,211 2,571 53.25
    Amount of variances
    (B-A)    		 8,558 789 483 ―
    Percentage change (%) 23.5 23.1 23.2 ―
    [Reference] Results for the previous fiscal year ended Nov. 30, 2013 30,044 2,654 1,656 35.54
  3. 3.Reason for Revisions

    The Company expects to sell a total of 12 single-building properties put up for sale by the Revitalization Business, at a transfer amount of \17,434 million, as stated in the notice disclosed today titled Notice Regarding Transfer of Assets." The total consists of six properties that were allocated for sale in a plan made at the start of the period and six additional properties newly allocated for sale. Furthermore, income in the Rental Business was boosted by an increase in rental income-generating inventory assets in line with an acceleration in acquisitions of real estate for sale. As a consequence of such developments, the Company has upwardly revised its forecasts as follows: revenue to \49,565 million, an increase of \7,747 million from the previous forecast, operating profit to \5,545 million, an increase of \927 million from the previous forecast, and profit for the year to \2,808 million, an increase of \499 million from the previous forecast.

End

Note: The above earnings forecasts are based on information available at the time of announcement. Various subsequent factors may cause the actual performance to differ from the forecasts.