Tosei Corporation · TSE:8923

Tosei — FY2006 Earnings Presentation

81 slides from Tosei's earnings presentation, January 2007

1. Slide 1: Financial Results for the Fiscal Year Ended Nov. 2006

   表紙 Financial Results for the Fiscal Year Ended Nov. 2006 Tosei Corporation （Ticker Symbol Number: 8923） Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 0

2. Slide 2: Copyright © 2007 TOSEI CORPORATION, All Rights Reserved.

   Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 1

3. Slide 3: Index

   ＩＮＤＥＸ ¾ Overview of Results I. Overview of Results for the Fiscal Year Ended Nov. 2006 －P 2 ¾ Outlook for the Fiscal Year Ending Nov. 2007 and Medium-term Management Plan II． Tosei’s View of the Operating Environment －P19 III．Outlook for the Fiscal Year Ending Nov. 2007 －P29 IV．Progress of the Mediu

4. Slide 4: I. Overview of Results for the Fiscal Year Ended Nov. 2006

   I. Overview of Results for the Fiscal Year Ended Nov. 2006 Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 3

5. Slide 5: Fiscal Year Ended Nov. 2006 – Highlights

   Fiscal Year Ended Nov. 2006 – Highlights Achievements in the Fiscal Year Ended Nov. 2006 ¾December 2005 ・Began construction of 108-unit, environmentally conscious condominium complex in Sakura, Setagaya Ward. ¾February 2006 ・ Executed a basic agreement for office building development with ASCOT CORP

6. Slide 6: Overview of Results for the Fiscal Year Ended Nov. 2006

   Overview of Results for the Fiscal Year Ended Nov. 2006 （Consolidated） (¥ million) FY ended Nov. 2005 FY ended Nov. 2006 YoY change (Consolidated) % of revenues (Consolidated) % of revenues % Revenues 17,644 100.0 24,741 100.0 7,097 40.2 Cost of revenues 12,787 72.5 16,584 67.0 3,796 29.7 Gross prof

7. Slide 7: Factors Leading to the Upward Revision of Initial Forecasts

   Factors Leading to the Upward Revision of Initial Forecasts （Consolidated） Upward revision of ordinary income by about ¥1.3 billion compared to initial forecast announced in January 2006, due to higher selling prices resulting from a rise in added value of properties handled and a favorable market.

8. Slide 8: Overview of Results (Comments on Changes in Income)

   Overview of Results (Comments on Changes in Income) (¥ million, %) Increase in personnel expenses FY ended Nov. 2005 FY ended Nov. 2006 YoY change + ¥298 million (38.2%) • Average number of employees during the fiscal year (Consolidated) % of revenues (Consolidated) % of revenues % increased 60% fro

9. Slide 9: Comparison of Revenues by Segment (Consolidated)

   Comparison of Revenues by Segment （Consolidated） Building a business portfolio focused primarily on revitalization, a portfolio that stems from rising liquidity in the real estate market ¾Segment Revenues （Consolidated） Re vital iz ati on Bu si n e ss 30,000 De ve l opm e n t Bu sin e ss Re n tal Bu

10. Slide 10: Revitalization Business

    Revitalization Business Revitalization business strong due to greater-than-expected activity in real estate market ◆Major Sales ¾Revitalization Business Revenues/Income ¾ Properties handled were concentrated in the 23 Revenues wards of Tokyo, primarily in the five inner-city Gross profit wards. Oper

11. Slide 11: Development Business

    Development Business Added newly constructed office and commercial buildings to lineup from current fiscal year. Delayed sales due to strong market. ¾Development Business Revenues/Income ◆Overview of Business ¾ Revenues were below initial forecast due to Sales to investors intentional delays in sell

12. Slide 12: Rental Business

    Rental Business Holdings of superior assets are a stable source of earnings ¾Rental Business Revenues/Income Rent from current assets Rent from fixed assets Gross profit Operating income ◆Overview of business Operating income Gross profit ¾ Total properties held: 57 (YoY change: +11) 2,000 2,000 • C

13. Slide 13: Fund Business (Asset Balance and Fund Lineup)

    Fund Business (Asset Balance and Fund Lineup) Broadening investor base and diversifying product lineup by expanding overseas fund-raising Balance of Fund Assets under Management Existing Fund Lineup Asset Balance 50,000 Equity Investors FY ended Nov. 06 45,000 Pegasus 6,812 40,000 Poseidon Fund Over

14. Slide 14: Fund Business

    Fund Business Increasing fee revenues through rapid growth of balance of fund assets under management ◆Overview of business ¾Fund Business Revenues/Gross Profit ¾ Steady growth of balance. Target for current fiscal year (¥41.3 billion) nearly achieved. Revenues Gross profitincome Operating Total FY-

15. Slide 15: Property Management Business

    Property Management Business In an environment where change of ownership can result in contract cancellation, Tosei Community’s sales efforts increased the number of managed properties about 10 percent during the fiscal year ¾Property Management Business Revenues/Income ◆Highlights Revenues ¾ Number

16. Slide 16: Alternative Investment Business

    Alternative Investment Business Incentive fee revenues and dividend income were greater than expected as NPL fund closing prices exceeded initial forecasts •Alternative Investment Business ◆Highlights Revenues/Income ¾ Asset management fees and incentive fees in Revenues conjunction with closings in

17. Slide 17: Balance Sheet Summary (Consolidated-1)

    Balance Sheet Summary （Consolidated‐1） (¥ million, %) As As of of Nov. Nov. 30, 30, 2005 2005 As As of of May May 31, 31, 2006 2006 As As of of Nov. Nov. 30, 30, 2006 2006 (Consolidated) Decrease Decrease Increase Increase (Consolidated) Decrease Decrease Increase Increase (Consolidated) (Consolidat

18. Slide 18: Balance Sheet Summary (Consolidated-2)

    Balance Sheet Summary （Consolidated‐2） (¥ million, %) As As of of Nov. Nov. 30, 30, 2005 As of of May May 31, 31, 2006 As 2005 Decrease Increase As(Consolidated) 2006 Decrease Decrease Increase Increase As of of Nov. Nov. 30, 30, 2006 2006 (Consolidated) (Consolidated) Decrease Increase (Consolidate

19. Slide 19: Breakdown of Inventories (Consolidated)

    Breakdown of Inventories （Consolidated） (¥ million) Value Value of of inventories inventories as as of of FY FY ended ended Nov. Nov. 06 （Non-consolidated） 06 34,230 53,774 （Non-consolidated） Assumed Assumed revenues revenues Pegasus Pegasus Capital, Capital, Ltd. Ltd. 5,811 6,104 Total Total 40,041

20. Slide 20: Summary of Cash Flow Statements

    Summary of Cash Flow Statements (¥ million) FY ended Nov. 2005 FY ended Nov. 2006 Change （Consolidated） （Consolidated） Net cash used in operating activities (8,839) (10,857) -2,017 Income before income taxes 2,981 5,297 2,315 Depreciation 180 207 26 Net increase (decrease) in assets and liabilities

21. Slide 21: II. Tosei's View of the Operating Environment

    II. Tosei’s View of the Operating Environment Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 20

22. Slide 22: The Growth of Real Estate Securitization

    The Growth of Real Estate Securitization – Broadly Defined, a ¥25 Trillion Market – Annual Growth of Real Estate Securitization Total Asset Amount (\ billion) 8,000 J-REIT Other Refinanced/Liquidated (Included in Other) 6,911.7 7,000 Cumulative 9年間累計約25兆円 9-year total of ¥25 trillion 1,280 6,000 5,3

23. Slide 23: Size of the Real Estate Fund Business Market

    Size of the Real Estate Fund Business Market – At ¥15 trillion including Overseas Funds and Continuing to Expand – (\ billion) Size of the Real Estate Fund Market (Acquisition Price) 6,000 \ 5.5 trillion Private funds 5,000 J-REITs \4.4 trillion \4.5 trillion 4,000 \3.3 trillion \3.4 trillion 3,000

24. Slide 24: Size of the Securitized Real Estate Market

    Size of the Securitized Real Estate Market －Untapped ¥100 Trillion Market, Significant Growth Potential－ Japan’s Japan’stotal totalreal realestate estateassets assets:2:¥2,300 2 ¥2,300trillion trillion + Public sector assets Corporate Size of securitized • About ¥3 trillion (?) holdings of revenue-

25. Slide 25: Japan's Securitization Ratio – Lower than Other Countries

    Japan’s Securitization Ratio －Lower than Other Countries－ T otal Real Estate Assets of the United S tates as of Dec. 31, 2004: US $30.2 trillion (\3,600 trillion) Government Corporate Sector 19% 19% Source: Prepared by private sector survey organization based on “Flow of Funds Accounts of the United

26. Slide 26: Yield Gap

    Yield Gap － Japan’s Real Estate Market is Still Appealing Compared with Other Countries－ ％ Cap rate* Gov't bond rate Yield gap 9.0 8.0 7.5 6.7 7.0 5.9 6.0 5.1 5.0 5.0 4.8 5.0 5.0 4.5 4.6 4.0 4.0 4.0 3.7 3.0 2.2 1.9 2.1 1.6 2.0 1.0 1.0 0.4 -0.1 0.0 Japan U.S.A Canada Australia France Hong Kong U.K. -

27. Slide 27: Japanese Corporate Pension Funds

    Japanese Corporate Pension Funds －Potential for Growth with Only 1% of ¥80 Trillion Currently Invested in Real Estate－ Traditional Investment Alternative Investment Japanese bonds Japanese stocks Hedge funds Real estate Foreign bonds Foreign stocks Private equity Changes in Institutional Investor As

28. Slide 28: The Condominium Market in Metro Tokyo

    The Condominium Market in Metro Tokyo －Developers Clearly Choosing to Avoid Rush Sales － Condo units sold in M etro Closing rate for condo units in M etro Toky o Although the closing rate for condos Units ％ in metro Tokyo remains above the 12,000 100 target 70%, which is considered 10,000 80 strong,

29. Slide 29: National Office and Apartment Rent Index Survey

    National Office and Apartment Rent Index Survey －Office Rent Index for September 2007 Expected to be Up 4.8% Year-on-Year － National Office and Apartment Rent Index Survey Office Rent Index Apartment Rent Index YoY change YoY change Historical Trends of Office and Apartment Rent Indices (All Japan)

30. Slide 30: Coming Changes in the Tosei Group's Operating Environment

    Coming Changes in the Tosei Group’s Operating Environment Despite gradual slackening of the market boom and intensifying competition in purchasing, Tosei sees ample opportunities in future market growth Real Estate Market Trends Tosei’s Analysis ¾ While the size of the Japanese securitized real esta

31. Slide 31: III. Outlook for the Fiscal Year Ending Nov. 2007

    III. Outlook for the Fiscal Year Ending Nov. 2007 Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 30

32. Slide 32: Outlook for the FY Ending Nov. 2007

    Outlook for the FY Ending Nov. 2007 (Non-consolidated and Consolidated) (¥ million) FY FY ending ending Nov. Nov. 2007 2007 FY FY ending ending Nov. Nov. 2007 2007 （Non-consolidated） （Non-consolidated） （Consolidated） （Consolidated） YoY YoY increase YoY YoY increase YoY YoY increase YoY YoY increase

33. Slide 33: Overview of Initiatives for the FY Ending Nov. 2007 (1)

    Overview of Initiatives for the FY Ending Nov. 2007 (1) Work to achieve growth through large properties while steadily expanding business in small and medium-size properties, where Tosei has an advantage Revitalization Business ¾ Further expand “value up” and trading business by leveraging expertise

34. Slide 34: Overview of Initiatives for the FY Ending Nov. 2007 (2)

    Overview of Initiatives for the FY Ending Nov. 2007 (2) (Development of the Ginza Wall Building) Contract concluded in 2005; to be transferred to Tosei in March 2007 Tokyo Onsen Co., Ltd. civil rehabilitation procedure scheduled to finish by January 2008 Overview of Work on Ginza Wall Building ¾ Ove

35. Slide 35: Overview of Initiatives for FY Ending Nov. 2007 (3)

    Overview of Initiatives for FY Ending Nov. 2007 (3) Build expertise in quality construction to develop a broad lineup of properties that meet market needs Development Business ¾ Activities by Property Type Office buildings • Kanda- Kanda-Higashimatsushitacho Building Project (see reference materials

36. Slide 36: Overview of Initiatives for the FY Ending Nov. 2007 (4)

    Overview of Initiatives for the FY Ending Nov. 2007 (4) Expand stable revenue sources, both on and off the balance sheet, to further enhance stability of operations Rental Business ¾ Position the business as a steady source of income, with due consideration to the balance of fixed and current assets

37. Slide 37: Overview of Initiatives for FY Ending Nov. 2007 (5)

    Overview of Initiatives for FY Ending Nov. 2007 (5) Enhance fund business Æ Property management Diversify Æ Alternative investment Diversify exit options for properties Æ List a J-REIT Property Management Business Tosei Community Co., Ltd. ¾ Implement reform to establish new management system, as pe

38. Slide 38: Forecasts by Business Segment

    Forecasts by Business Segment FY ended Nov. 2006 FY ending Nov. 2007 (forecast) YoY change Change in operating (Consolidated) % of revenues (Consolidated) % of revenues Amount % income ratio Revenues (¥ million) 24,741 100.0 51,527 100.0 26,786 108.3 Revitalization Business 15,650 63.3 30,835 59.8 1

39. Slide 39: Shareholder Returns Policy

    Shareholder Returns Policy Fundamental Shareholder Returns Policy ¾Providing stable dividends is the most important management task ¾Tosei targets a payout ratio of 20% as a management indicator ¾To increase the liquidity of its stock, Tosei undertakes stock splits and other measures to keep stock p

40. Slide 40: IV. Progress of the Medium-term Management Plan

    IV. Progress of the Medium-term Management Plan Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 39

41. Slide 41: Medium-term Management Plan – Overview

    Medium-term Management Plan – Overview Promoting growth & expansion, brand establishment GROWING UP 2008 GROWING FY Ending FY Ended Aiming to double scale of Initial Nov. 30, 2008 Nov. 30, 2005 business in terms of Targets (Initial revenues and ordinary (Actual) Targets) income ¥17,644 ¥17,644 ¥40,5

42. Slide 42: Medium-term Management Plan First-Year Progress

    Medium-term Management Plan First-Year Progress The first year of the Medium-term Management Plan went smoothly (¥ million, %) First-year Progress FY ended Actual FY ending FY ended Nov. 06 Nov. 08 Nov. 06 /Plan ¾ Exceeded first-year targets by a wide (Initial (Actual) (%) (Initial plan) targets) ma

43. Slide 43: Progress of the Medium-term Management Plan (1)

    Progress of the Medium-term Management Plan (1) Business Businessgrowth growthand andfinances finances Customers Customersand andtransactions transactions Accelerated purchasing activities Conducted new share issue in Feb. 2006 in areas with few competitors z Strengthened financial structure toward

44. Slide 44: Progress of the Medium-term Management Plan (2)

    Progress of the Medium-term Management Plan (2) Business Businessprocesses processesand and Quality Qualityand andquantity quantityof of organizational operations organizational operations human resources human resources Upgraded the governance organization Increased number of employees z Reinforced

45. Slide 45: Outlook for Purchasing and Exit Options

    Outlook for Purchasing and Exit Options Halfway toward purchasing target for FY ending Nov. 2008, with a ¥40.0 billion inventory balance as of Nov. 30, 2006 including properties with signed purchase contracts equivalent to revenues of ¥31.5 billion in the FY ending Nov. 2007 and ¥21.9 billion in the

46. Slide 46: Target Revisions

    Target Revisions Revenues and ordinary income targets for the fiscal year ending Nov. 2008 in the Medium-term Management Plan revised upward by 33.3% and 28.3%, respectively Targets of the Medium-term Management Plan Revenues (¥ million, %) (¥ billion) ■Initial target ■Actual /New target 60 54 (Top:

47. Slide 47: Target Revisions (Target Results by Business Segment)

    Target Revisions (Target Results by Business Segment) Aiming to increase the scale of revenues in each business while maintaining the same revenue portfolio as in the fiscal year ended Nov. 2006 Segment Targets FY ending Nov. 07 FY ended Nov. 06 FY ending Nov. 08 (target) Segment targets (forecast)

48. Slide 48: Target Revisions (by Business Segment)

    Target Revisions (by Business Segment) 不動産流動化事業 Revitalization business 不動産開発事業 Development business 不動産賃貸事業 Rental business Fund business 不動産ファンド事業 Property management business 不動産管理事業 Alternative investment business オルタナティブインベストメント事業 FY ended Nov. 06 (Actual) FY ending Nov. 07 (Forecast) FY ending

49. Slide 49: Efforts Planned to Achieve the Medium-term Management Plan (1)

    Efforts Planned to Achieve the Medium-term Management Plan (1) Double the scale of business by maximizing use of Tosei’s capabilities in making exit decisions, a Company strength (1) Efforts to Double the Scale of Business Increase property purchases to expand existing business Offer high-value-adde

50. Slide 50: Efforts Planned to Achieve the Medium-term Management Plan (2)

    Efforts Planned to Achieve the Medium-term Management Plan (2) Tosei’s aim is to establish a corporate brand that offers a combination of “innovation and challenge” and “security and reliability” (2) Efforts to Establish the Corporate Brand Enhance corporate governance Expand and train workforce z I

51. Slide 51: V. New Corporate Philosophy

    V. New Corporate Philosophy Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 50

52. Slide 52: Overview of the New Corporate Philosophy

    Overview of the New Corporate Philosophy The Tosei Group’s New Corporate Philosophy establishes a shared sense of purpose for the Group and clarifies our common direction. To create new value and inspiration in all Mission aspects of real estate as a global-minded group of seasoned professionals • C

53. Slide 53: New Company Name and Group Logo

    New Company Name and Group Logo We have changed the name of our company from Tosei Fudosan Co., Ltd. to Tosei Corporation. While maintaining our core real estate operations, we aim to broaden the scope of our business to further increase corporate value and strengthen the Tosei brand. ・ symbolizes u

54. Slide 54: Copyright © 2007 TOSEI CORPORATION, All Rights Reserved.

    Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 53

55. Slide 55: Reference Materials

    Reference Materials Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 54

56. Slide 56: I. Tosei Group Overview

    I. Tosei Group Overview Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 55

57. Slide 57: Group Overview

    Group Overview Name Name TOSEI TOSEI CORPORATION CORPORATION Address Address 4-2-3 4-2-3 Toranomon, Toranomon, Minato-ku, Minato-ku, Tokyo Tokyo Date Dateestablished established February February 2, 2, 1950 1950 Capital Capital ¥4,148,011,500 ¥4,148,011,500 Representative Representative Seiichiro Se

58. Slide 58: History

    History Changed Changedcompany company name nametotoTosei Tosei Revenues Corporation Corporation (¥ million) 1950 1950Established EstablishedYukari YukariKogyo KogyoCo., Co.,Ltd. Moved Movedhead headoffice Ltd. office 56,000 56000 1983 totoToranomon Toranomon 1983Company Companyname namechanged chan

59. Slide 59: Organizational Change

    Organizational Change Revised the organizational structure to strengthen the internal control system, improve the quality of work and increase flexibility (Effective Dec. 1, 2006) Auditing Dept. Board of Auditors Office of Corporate Shareholders’ Planning Corporate Meeting Governance Meeting Adminis

60. Slide 60: II. Tosei Group Advantages

    II. Tosei Group Advantages Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 59

61. Slide 61: Capabilities over a Broad Range of Business Areas

    (1) Capabilities over a Broad Range of Business Areas With uniform capabilities over a broader range of business areas, Tosei has solid advantages over other companies in the real estate industry. “Only One” Business Model Businesses Real Real Property Estate Real Estate Funds Real Estate Developmen

62. Slide 62: Portfolio Management

    (2) Portfolio Management Management that maximizes real estate value Land Sell to (Lease and Local area attributes investors Increase Implement Increase value Implement exit Landholdings) ・corporate Purchase Purchase consideration Suitability of location ・fund Single Family Dwellings ・individual Pro

63. Slide 63: Advantages in Purchasing

    （3）Advantages in Purchasing High proportion of negotiated transactions (82.8%*) through original purchasing routes Advantages from business offerings, speedy decision-making and results that other companies can’t provide What gives Tosei’s original purchasing routes the edge? Relationships of trust

64. Slide 64: Focus on Quality I

    (4) Focus on Quality I Tosei enforces strict double-checks of quality with its original, ISO9001-certified Palms Quality Check (PQC) system PQC System • Focused on quality, Tosei responded early to the problem of falsified structural calculations. Since 1999, it has submitted Tosei’s original qualit

65. Slide 65: Focus on Quality II

    (4) Focus on Quality II The Value-Up Laboratory strengthens Tosei’s product-planning capabilities with enhanced residential materials and interiors. Value-Up Laboratory ¾ Established to convey Tosei’s value-up know-how, the Value-Up Laboratory conducts research on new designs and product planning ¾

66. Slide 66: III. Supplemental Materials to the Financial Results for FY Ended Nov. 2006

    III. Supplemental Materials to the Financial Results for the Fiscal Year Ended Nov. 2006 Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 65

67. Slide 67: Overview of Segment Results (1) Revenues/Cost of Revenues

    Overview of Segment Results (1) Revenues/Cost of Revenues (Consolidated) (¥ million, %) Thre e months e nde d FY ended Nov. 2005 FY ended Nov. 2006 YoY change Nov. 30, 2006 Revenues (Consolidated） % of revenues (Consolidated） % of revenues Amount % (Consolidated） % of revenues Total 17,644 100.0 24,

68. Slide 68: Overview of Segment Results (2) Gross Profit/Operating Income

    Overview of Segment Results (2) Gross Profit/Operating Income (Consolidated) (¥ million, %) Thre e months e nde d FY ended Nov. 2005 FY ended Nov. 2006 YoY change Nov. 30, 2006 Gross profit (Consolidated） Gross profit margin (Consolidated） Gross profit margin Amount % (Consolidated） Gross profit mar

69. Slide 69: Main Performance Indicators (Consolidated and Non-consolidated)

    Main Performance Indicators (Consolidated and Non-consolidated) (¥ million, %) ¾ 5-Year Summary of Main Performance Indicators Non-consolidated Consolidated FY ended FY ended FY ended FY ended FY ended FY ended FY ended Nov. 02 Nov. 03 Nov. 04 Nov. 05 Nov. 06 Nov. 05 Nov. 06 Operating income ratio 1

70. Slide 70: Overview of Properties Handled (1)

    Overview of Properties Handled (1) By Region ¾ Concentration in Central Tokyo Total of 76 properties held/purchased as of November 30, 2005 67 of total properties in 23 wards of Tokyo (approx. 88.1%) 1 2 1 1 1 2 Itabashi 3 1 1 1 Adachi Kita 2 2 1 1 1 3 Nerima 1 4 1 Katsushika 2 4 2 Toshima 1 3 Sumid

71. Slide 71: Overview of Properties Handled (2)

    Overview of Properties Handled (2) By Scale Under ¥1 billion ¥1-2 billion Over ¥2 billion 20,000 2,202 ¾ Primarily properties under ¥1 billion (in terms of 1 property number of properties), where Tosei focuses its 15,000 3,694 8,864 strength Revenues (\ million) 3,096 1.4 properties 6.6 properties 1

72. Slide 72: Overview of Properties Handled (3)

    Overview of Properties Handled (3) By Purchaser ¾ Sales to corporations and individuals account for approx. 58% and 25% of total properties sold, respectively ¾ By property type, office buildings account for the most sales at 70%. Demand for vacant buildings is firm (22.6%) ¾ No. of Properties and P

73. Slide 73: Responding to Other Factors Affecting Operating Results

    Responding to Other Factors Affecting Operating Results Factors of Particular Concern ¾ Impact of changes in the real estate market ƒ The time frame of projects in the revitalization and development businesses is from 6 months to 2 years. JChanges in the real estate market midway during a project ha

74. Slide 74: Segment Results by Quarter

    Segment Results by Quarter Revenues (¥ million) ■Non-consolidated ■Consolidated 30,000 24,742 25,000 22,572 17,644 20,000 16,828 13,052 14,514 15,000 12,705 11,108 10,000 7,815 4,693 4,881 2,784 1,813 3,979 4,368 2,115 5,000 2,237 2,267 2,195 2,291 1,940 1,490 1,520 0 04/11Q1 04/11Q2 04/11Q3 04/11Q4

75. Slide 75: IV. Examples of Properties

    IV. Examples of Properties Copyright © 2007 TOSEI CORPORATION, All Rights Reserved. 74

76. Slide 76: Examples of Tosei Properties (1)

    Examples of Tosei Properties (1) Revitalization business Takaido Studio ◆Value-up points ◆Architectural overview ¾ Renovated former photo Location: Miyamae 1-1-chome, Suginami studio of publishing Ward, Tokyo company Land area: 475.47m 475.47m 2 ¾ Aiming to create an Floor space: 1,437.05m 1,437.05m

77. Slide 77: Examples of Tosei Properties (2)

    Examples of Tosei Properties (2) Revitalization business THE Palms Minami-Yukigaya ◆Architectural overview ◆Value-up points Location: Minami- Minami-Yukigaya 5-chome, ¾ Extensive renewal of entranceway of Ota Ward, Tokyo a building constructed in 1991 Land area: 495.00m2 495.00m ¾ Designed gate to e

78. Slide 78: Examples of Tosei Properties (3)

    Examples of Tosei Properties (3) Development business: New office and commercial buildings Toranomon Tosei Building ◆Architectural overview ◆Key points Location: Toranomon 4-chome, Minato ¾ Tosei’ Tosei’s first new office building development Ward, Tokyo ¾ Highly aesthetic exterior design using curt

79. Slide 79: Examples of Tosei Properties (4)

    Examples of Tosei Properties (4) Development business: New office and commercial buildings Kanda-Ogawamachi Building (provisional name) Completion of construction scheduled for January 2008 ◆Architectural overview Location: Kanda- Kanda-Ogawamachi 3-chome, Chiyoda Ward, Tokyo ◆Key points Land area:

80. Slide 80: Examples of Tosei Properties (5)

    Examples of Tosei Properties (5) Development business: New condominiums THE Palms Setagaya Sakura Completion of construction scheduled for February 2007 ◆Architectural overview Location: Sakura 1- 1-chome, Setagaya Ward, Tokyo Land area: 3,697.44m2 3,697.44m Floor space: 9,879.09m2 9,879.09m Environ

81. Slide 81: Investor inquiries

    Investor inquiries: Corporate Planning Department TEL：03-3435-2864 FAX：03-3435-2866 URL : http://www.toseicorp.co.jp DISCLAIMER Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forward-looking statements include but

Tosei — FY2006 Earnings Presentation on 6ix