Consolidated Financial Report for the Fiscal Year Ended March 31, 2021 (Japan GAAP)May 14, 2021
Company name: Takara Leben Co., Ltd.
Stock listed on:
Tokyo Stock Exchange, First Section
Securities code:8897
URL
https://www.leben.co.jp
Representative:
Kazuichi Shimada, President, Representative Director
Contact:
Masashi Yamamoto, Director, General Manager of the Administration Headquarters
Tel. +81-3-6551-2130
Scheduled date of annual general meeting of shareholders:June 25, 2021
Scheduled date for commencement of dividend payment:
June 28, 2021
Scheduled date for release of annual securities report:
June 25, 2021
Supplementary materials on financial results: Yes
Briefing for financial results:
Yes (To prevent the spread of the COVID-19 coronavirus, the Company will
distribute Representative Director’s financial results presentation by video.)(Amounts are rounded down to the nearest million)

1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Consolidated Operating Results(Percentage figures represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen

Year ended March 31, 2021
Year ended March 31, 2020
(Note) Comprehensive income:%

148,397
168,493

Millions of yen(11.9)
27.6%

10,78911,901

Year ended March 31, 2021:((18.8%))¥5,327 million (2.4%)

Yen

%

9,933
11,201Millions of yen(11.3)
24.1

Yen

43.22
49.45

42.94
49.11

(Reference) Equity in profit of affiliates:

Year ended March 31, 2021: ¥18 million(12.5)(16.6)¥5,202 million

Ratio of ordinary
profit to total
assets%Year ended March 31, 2021
Year ended March 31, 2020

%

4,693
5,361

Year ended March 31, 2020:

Ratio of earnings
to shareholders’equityDiluted profit
per share

Profit per share

Millions of yen

(9.3)
18.5

Ratio of operating
profit to net sales

%

9.0
10.9

%

5.0
5.9

7.3
7.1

Year ended March 31, 2020:¥(4) million(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

204,315
195,448

54,632
51,139As of March 31, 2021
As of March 31, 2020

(Reference) Shareholders’ equity: As of March 31, 2021:

Net assets per share
%

Yen

26.5
25.9

498.78467.05¥54,194 million

As of March 31, 2020:¥50,634 million

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash andcash equivalents
at end of year

(3) Consolidated Cash Flow
Cash flows fromoperating activities
Millions of yen

Millions of yen

Millions of yen

Millions of yen

26,33047,708(25,090)(32,136)

2,654(1,608)38,50034,605

Year ended March 31, 2021
Year ended March 31, 2020
2. Dividends

Annual dividends per share
Q1
Year ended March 31, 2020
Year ended March 31, 2021
Year ending March 31, 2022
(Forecast)

Q2

Q3

Year-end

Total

Total dividends(annual)Dividend payout
ratio(consolidated)

Ratio of dividends
to net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

‒
‒

6.00
4.00

‒
‒

13.00
10.00

19.00
14.00

2,059
1,521

38.4
32.4

4.2
2.9

‒

4.00

‒

10.00

14.00

31.7

3. Forecast for Consolidated Financial Results for the Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)(Percentage figures represent year-on-year changes)

Net sales
Full year

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

158,600

‒

7,900

‒

7,100

‒

4,800

‒

44.18

(Note) The Company will begin to apply the accounting standards for revenue recognition (ASBJ Statement No. 29) and others at the beginning of the
fiscal year ending March 31, 2022. The forecast for consolidated financial results stated above represents figures after the application of theseaccounting standards. Changes from the previous fiscal year and from the same quarter in the previous fiscal year are not presented.

‒1‒

* Notes(1) Changes in significant subsidiaries during the current fiscal year (Changes in specified subsidiaries resulting in changes in scopeof consolidation):
None
New: None (Name) Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatements:

None
None
None
None

(3) Number of shares issued and outstanding (common stock)(i) Number of shares issued and outstanding at end of year (including treasury stock)
As of March 31, 2021:
121,000,000 shares
As of March 31, 2020:
121,000,000 shares(ii) Number of treasury stock at end of year
As of March 31, 2021:
12,344,907 shares
As of March 31, 2020:
12,587,307 shares(iii) Average number of shares during the year
Year ended March 31, 2021:
108,592,443 sharesYear ended March 31, 2020:
108,412,693 shares(Reference) Overview of Non-consolidated Operating Results

Non-consolidated Operating Results for the Fiscal Year Ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Non-consolidated Operating Results(Percentage figures represent year-on-year changes)
Net sales
Operating profit
Ordinary profit
ProfitMillions of yen

Year ended March 31, 2021
Year ended March 31, 2020%

96,949123,908(21.8)
25.4

Millions of yen

%

7,799
9,683

(19.5)
14.3

Yen

29.80
42.75

(2) Non-consolidated Financial Position
Total assets

Net assets

Millions of yen

Millions of yen

144,796
150,255

47,80345,844(Reference) Shareholders’ equity: As of March 31, 2021:%

Millions of yen(17.7)
31.8

3,257
4,667

%

(30.2)(22.0)

Yen

30.00
43.05

As of March 31, 2021
As of March 31, 2020

8,682
10,548

Diluted profit
per share

Profit per share
Year ended March 31, 2021
Year ended March 31, 2020

Millions of yen¥47,603 million

Equity ratio

Net assets per share
%

Yen

32.9
30.4
As of March 31, 2020:

438.12420.64¥45,603 million

Reason for difference from non-consolidated operating results for the previous fiscal year
Differences in profit figures for the fiscal year in question are due mainly to a considerable decrease in gain on sales of facilities inelectric power generation business and a decrease in valuation recorded at the time of changing the purposes of some hotel assets toresidence.
* This Consolidated Financial Report does not need to be audited by a certified public accountant or audit corporation.
* Explanations and other special notes concerning the appropriate use of business performance forecasts(Caution concerning forward-looking statements, etc.)
The forward-looking statements presented above are based on the information available at the time of the release of this report and are
not intended to guarantee that the Company will achieve such figures. Actual results may differ from these forecasts due to various
factors in the future.
To obtain the supplementary materials on financial results:
Supplementary materials on financial results have been posted on the Company’s website. The materials are also accessible throughTDnet.
To access the details of briefing for financial results:
The briefing for financial results will be distributed by video on the Company’s website.

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○ Contents of Attachment
1. Overview of Operating Results, Etc. ...........................................................................................................................................
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2021 ............................................................................
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2021 ...........................................................................
(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2021 .......................................................................................
(4) Future Outlook ........................................................................................................................................................................
(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years .....................................................
2. Basic Concept of Selection of Accounting Standards ..................................................................................................................
3. Consolidated Financial Statements and Major Notes ..................................................................................................................
(1) Consolidated Balance Sheet ....................................................................................................................................................
(2) Consolidated Statements of Income and Comprehensive Income...........................................................................................
Consolidated Statement of Income .........................................................................................................................................
Consolidated Statement of Comprehensive Income ...............................................................................................................
(3) Consolidated Statement of Changes in Shareholders’ Equity .................................................................................................
(4) Consolidated Statement of Cash Flows ...................................................................................................................................
(5) Notes to the Consolidated Financial Statements .....................................................................................................................
(Notes Regarding the Going Concern Assumption) ...............................................................................................................
(Consolidated Balance Sheet) ................................................................................................................................................
(Consolidated Statement of Income) ......................................................................................................................................
(Rental Properties, Etc.) .........................................................................................................................................................
(Segment Information) ...........................................................................................................................................................
(Per Share Information) ..........................................................................................................................................................
(Significant Subsequent Events) ............................................................................................................................................
4. Other ............................................................................................................................................................................................
Production, Orders Received and Sales ........................................................................................................................................

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5
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7
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7
8
8
10
10
11
12
14
15
15
15
15
16
17
20
21
22
22

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2021
During the fiscal year under review, the slowdown of economic activities in Japan and around the world expanded due to the COVID19 pandemic. Japan declared a state of emergency twice, in April 2020 and in January 2021. The end of the pandemic is still not insight and the economic outlook remains uncertain. If the vaccine rollout controls infection, the economy will gradually trend upward.
Even so, it will take some time for the economy to recover to its pre-COVID level.
In the real estate sales market in which the Group operates, there were no major changes in consumer appetite during the pandemic,
although changes were seen in what customers want from residences. Following increases in single-person and dual-income households
and changes in consumer values, end-user lifestyles are diversifying. There is increasing need for convenient locations and lifestyle
convenience and demand for compact condominium units is also increasing. Meanwhile, demand in regional urban centers remains
strong, thanks in part to the demand of active seniors, which continues to be high, and the trend of compact city development.
In the Tokyo metropolitan area, the supply-demand balance continues to be favorable, with the number of condominium units supplied
remaining at the 30,000 level in recent years, although the number of condominium units supplied in the area in 2020 decreased 12.8%
from the previous year to 27,228 (a survey made by Real Estate Economic Institute Co., Ltd.). Sales prices, despite the apparent
plateauing of increases in recent years, are still at high levels.
The number of nationwide condominium units supplied decreased 15.2% from the previous year to 59,907 (a survey made by Real
Estate Economic Institute Co., Ltd.) due to the COVID-19 coronavirus. In these conditions, the Company was the eleventh largest
condominium developer based on the number of condominium units sold. As an independent general real estate developer, theCompany plays a role in the maintenance of stable supply in the real estate sales market.
The Company announced its new mid-term management plan on May 14, 2021. It will engage in CSR activities beyond the growth ofprofit through its business to help resolve social issues and achieve the Sustainable Development Goals (SDGs) and to earn the trust ofsociety and diverse stakeholders to secure sustainable development.
Featuring the “Leben” series of self-designed new built-for-sale condominiums as its main brand, the Company always seeks to offer
products that reflect its basic concept of “ideal, affordable housing that anyone can buy with confidence.” In doing so, the Company
continues to work on planning products that accurately capture the time background, while also envisioning the happiness of all
stakeholders, including its customers, and promoting activities to realize happiness under its corporate mission of “thinking of
happiness; creating happiness.”
In the fiscal year under review, the Company recorded consolidated net sales of ¥148,397 million (down 11.9% year on year),consolidated operating profit of ¥10,789 million (down 9.3% year on year), consolidated ordinary profit of ¥9,933 million (down 11.3%
year on year) and profit attributable to owners of parent of ¥4,693 million (down 12.5% year on year).
(i) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥117,200 million, down 9.6% year on year, as a result of revenues of ¥79,435
million from the sales of new built-for-sale condominiums, revenues of ¥22,376 million from the sale of profit-generating real estate,
and revenues of ¥15,389 million from the sales of new detached houses and used condominiums, etc.
<Real Estate Rental Business>
Revenues from the real estate rental business amounted to ¥5,753 million, down 3.5% year on year, including rent revenues from therental of apartments, condominium units and offices.
<Real Estate Management Business>
Revenues from the real estate management business representing management fees from 66,037 units under management amounted to¥5,446 million, up 7.9% year on year.
<Electric Power Generation Business>
Revenues from the electric power generation business amounted to ¥13,485 million, down 35.7% year on year, including revenue fromsales of power generation facilities that were already operating and revenues from the sale of electricity generated by other electric
power generation facilities.
<Other Business>
Revenues from other business totaled ¥6,512 million, down 4.9% year on year, including revenues from contracts for construction
works, orders for large-scale repair works, and commission income, etc.

‒4‒

(ii) Performance Review by Item
<Net Sales>
In the real estate sales business, net sales amounted to ¥117,200 million, reflecting sales of 2,129 units of new built-for-salecondominiums (including JV equity interests), profit-generating real estate, as well as new detached houses and used condominiums.
In the real estate rental business, net sales stood at ¥5,753 million due to rental revenues of apartments, condominiums and offices, etc.
In the real estate management business, net sales came to ¥5,446 million due to management fees, etc. from 66,037 units managed.
In the power generation business, net sales were ¥13,485 million, including revenues from sales of power generation facilities thatwere already operating and revenues from the sale of electricity generated by other electric power generation facilities.
In other business, net sales were ¥6,512 million, reflecting contracts for construction works, orders for large-scale repair works, andcommission income, etc.
As a result, consolidated net sales in the fiscal year under review stood at ¥148,397 million, down 11.9% year on year.
<Cost of Sales>
The cost of sales decreased 14.1% year on year to ¥118,469 million, reflecting a decrease in sales of the real estate sales business andthe recovery of the profit rate.
<Selling, General and Administrative Expenses>
Selling, general and administrative expenses increased 2.8% year on year to ¥19,139 million, chiefly due to an increase in staff
following the expansion of business.
<Non-Operating Income and Expenses>
Non-operating income increased 18.5% year on year to ¥687 million, explained mainly by a rise in share of profit of entities accounted
for using the equity method for equity-method affiliates.
Non-operating expenses increased 20.5% year on year to ¥1,542 million, chiefly due to an increase in interest on bonds.
<Extraordinary Income and Losses>
Extraordinary losses increased ¥646 million year on year, to ¥2,761 million, primarily due to the recording of impairment losses.
As a result, consolidated net sales amounted to ¥148,397 million, down 11.9% year on year, consolidated operating profit came to¥10,789 million, down 9.3% year on year, consolidated ordinary profit was ¥9,933 million, down 11.3% year on year, and profit
attributable to owners of parent was ¥4,693 million, down 12.5% year on year, in the fiscal year under review.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2021
With regard to the status of consolidated assets, liabilities and net assets of the Group for the fiscal year under review, total assets
increased ¥8,866 million from the end of the previous fiscal year, to ¥204,315 million, mainly reflecting an increase in cash and deposits
due to the delivery of new built-for-sale condominiums.
<Current assets>
Current assets rose ¥10,372 million from the end of the previous fiscal year, to ¥125,686 million, chiefly reflecting an increase in cash
and deposits due to the delivery of new built-for-sale condominiums.
<Non-current assets>
Non-current assets declined ¥1,343 million year on year, to ¥78,531 million. The decline mainly reflected the transfer of assets to realestate for sale and power generation facilities for sale although business assets were purchased steadily.
<Current liabilities>
Current liabilities decreased ¥9,966 million from the end of the previous fiscal year to ¥55,649 million, mainly due to repayments ofshort-term loans payable.
<Non-current liabilities>
Non-current liabilities increased ¥15,340 million from the end of the previous fiscal year to ¥94,033 million, mainly due to an increasein loans payable following new purchases.

‒5‒

<Net assets>
Net assets increased ¥3,492 million from the end of the previous fiscal year, to ¥54,632 million, chiefly because the recorded amountof profit attributable to owners of parent exceeded amounts such as dividends of surplus.

(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2021
Cash and cash equivalents (“funds”) as of March 31, 2021 amounted to ¥38,500 million, an increase of ¥3,894 million from March 31,
2020.
<Cash flows from operating activities>
Net cash provided by operating activities was ¥26,330 million (cash provided of ¥47,708 million in the previous fiscal year). This
mainly reflects a decrease in inventories.
<Cash flows from investing activities>
Net cash used in investing activities was ¥25,090 million (cash used of ¥32,136 million in the previous fiscal year), due chiefly topurchase of property, plant and equipment.
<Cash flows from financing activities>
Net cash provided by financing activities was ¥2,654 million (cash used of ¥1,608 million in the previous fiscal year). This is primarily
attributable to an increase in loans payable.
(Reference) Changes in Cash Flow Indicators
Year ended March
2019

Year ended March
2020

Year ended March
2021

Equity ratio (%)

25.6

25.9

26.5

Equity ratio at market value (%)

20.2

19.4

19.8

Debt repayment period (years)

5.0

2.4

4.5

Interest coverage ratio (times)

20.2

41.4

21.7

Equity ratio: Shareholders’ equity/Total assets
Equity ratio at market value: Equity market capitalization/Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debts recorded on the consolidated balance sheet on which interest is paid.

‒6‒(4) Future Outlook
The Company has created a plan for the next fiscal year based on the new mid-term management plan announced on May 14, 2021.
In the real estate sales business, the new built-for-sale condominium business will work to increase supplies not only in the Tokyo
metropolitan area but also in central urban areas in provincial regions. It is expected that 1,800 units will be delivered, including 1,750
concerned with the Company’s equity interest after allocation within a joint venture.
In the real estate sales business, the new detached house business is expected to deliver 170 detached houses.
In the real estate sales business, the renewal resale business will strive to increase its own properties in an aim to establish a stablebusiness cycle.
In the real estate sales business, the liquidation business will work actively to acquire and develop profitable properties while changing
properties owned.
The real estate rental business will selectively purchase properties to construct a more stable stock business.
The real estate management business sets a target of 70,000 units under management and strives to expand peripheral businesses
including large-scale repair work.
Energy business (electric power generation business) will continue to develop solar power generation facilities. It will also work toconstruct a power purchase agreement (PPA) business.
In view of the above, the Company forecasts its performance for the next fiscal year as follows.
Net sales
Operating profit¥158,600 million¥7,900 million

Ordinary profit
Profit attributable to owners of parent¥7,100 million¥4,800 million(Number of units scheduled to be delivered in comparison with contracts in the new built-for-sale condominium business, including
the number of units involved in the joint venture)

End of March 2021

Number of units scheduled
to be delivered in year ending
March 2022

Of those, number ofunits contracted

Number of contracts for units
scheduled to be delivered inyear ending March 2023 and
later

1,800

859

32

Total number ofunits contracted
891(5) Basic Policy on Profit Distribution and Dividends for the Current and Next Fiscal Years
The Group set out the payout ratio of approximately 25% to 30% in the mid-term management plan announced in May 2018.
For the fiscal year under review, the Company plans to pay a year-end dividend of ¥10.0 per share, which reflects the upward revisionin January 2021. The annual dividend comes to ¥14.0 per share including the interim dividend that has been already paid. The payout
ratio comes to 32.4%.
For the next fiscal year, the Company will pay shareholder returns with a payout ratio between 30% and 35% as set out in the new midterm management plan announced on May 14, 2021.

2. Basic Concept of Selection of Accounting Standards
The Group has adopted the Japanese accounting standards to ensure comparability with our domestic competitors.

‒7‒

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2020)

Current Consolidated Fiscal Year
(March 31, 2021)

35,311
1,952
23,861
46,102
397
7,689
(2)

39,1692,193
28,682
43,766596
11,418(141)

115,314125,686

14,948(1,682)

13,827(1,725)

13,266
3,446(578)

12,102
13,915
(710)

2,867

13,204

381
(229)

524
(308)

Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation

152
33,90370(61)

216
33,73967(56)

Lease assets, net
Construction in progress

8
17,022

11
4,795

Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other

67,22064,070

1,145
2
642

960
‒
638

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts

1,790

1,599

4,428
0
1,087
5,354
(6)

5,194
0
1,273
6,407
(13)

Total investments and other assets

10,863

12,861

Total non-current assets
Deferred assets

79,874259

78,531
97

Total assets

195,448

204,315

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Real estate for sale in process
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation‒8‒

(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of bonds payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Bonds payable
Lease obligations
Provision for directors’ retirement benefits
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total non-current liabilities

Current Consolidated Fiscal Year
(March 31, 2021)

11,85817,148296
22,119
9
2,972
4,269
525
454
5,961

13,3189,208
116
17,524
3
2,264
5,657
570
463
6,522

65,61655,64969,656
4,804
1
97
653
58
151
3,269

85,721
5,988
8
119
863
24
28
1,278

78,692

94,033

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares

144,309

149,683

4,819
4,817
45,817(4,695)

4,819
4,817
48,649(4,604)

Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

50,75953,682

(97)
(0)
(27)

521
(1)
(8)

(124)
241
263

512
199
237

Total net assets

51,13954,632

Total liabilities and net assets

195,448

204,315

Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests‒9‒(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

Net sales
Cost of sales

Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)
168,493*1
137,977

Gross profit
Selling, general and administrative expenses*230,516
18,614Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)
148,397*1
118,469*2

29,928
19,139Operating profit
Non-operating income
Interest income
Dividend income
Commission fee
Share of profit of entities accounted for using equity
methodMiscellaneous income

11,901

10,789

0
347
119

0
292
118

‒

18

113

257

Total non-operating income
Non-operating expenses
Interest expense
Share of loss of entities accounted for using equity
methodMiscellaneous loss

579

687

1,147

1,226

4

‒

128

316

Total non-operating expenses

1,279

1,542

Ordinary profit
Extraordinary income
Gain on sales of investment securities
Penalty income

11,201

9,933

72
214

‒
‒

286

‒

Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Impairment loss
Loss on valuation of investment securities

*3

‒
2,071
42

*3

171
2,589
‒

Total extraordinary losses

2,114

2,761

Profit before income taxes
Income taxes - current
Income taxes - deferred

9,373
4,181
(235)

7,172
3,078
(597)

Total income taxes
Profit

3,945
5,427

2,481
4,691

66

(2)

5,361

4,693

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent‒ 10 ‒

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)
5,427

Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)
4,691

(218)
(0)
(5)

619
(1)
18

Total other comprehensive income

(224)

636

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

5,202

5,327

5,136

5,329

66

(2)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax‒ 11 ‒

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2019 to March 31, 2020)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

4,819

Retained earnings

4,817

Total shareholders’equityTreasury shares

42,299(4,695)47,241

Changes of items during period
Dividends of surplus(1,843)(1,843)

Profit attributable to owners ofparent

5,361

5,361

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

‒

‒

3,517

‒

3,517

4,819

4,817

45,817(4,695)50,759

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

121

‒

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
(21)

100

Share
acquisitionrights

Noncontrollinginterests

196

197

Total net
assets47,734

Changes of items during period
Dividends of surplus(1,843)

Profit attributable to owners ofparent5,361

Net changes of items other thanshareholders’ equity

(218)

(0)

(5)

(224)

45

66

(113)

Total changes of items during
period

(218)

(0)

(5)

(224)

45

66

3,404

Balance at end of current period

(97)

(0)

(27)

(124)

241

263

51,139‒ 12 ‒

Current Consolidated Fiscal Year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

4,819

Retained earnings

4,817

Treasury shares

45,817

Total shareholders’equity(4,695)50,759Changes of items during period
Dividends of surplus(1,843)(1,843)

Profit attributable to owners ofparent

4,693

4,693

Disposal of treasury shares(16)

Transfer to capital surplus fromretained earnings

90

73

16

(16)

‒

‒

2,832

90

2,922

4,819

4,817

48,649(4,604)53,682‒

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

(97)

(0)

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income
(27)

(124)

Share
acquisitionrights

Noncontrollinginterests

241

263

Total net
assets51,139Changes of items during period
Dividends of surplus(1,843)

Profit attributable to owners ofparent4,693

Disposal of treasury shares

73

Transfer to capital surplus fromretained earnings‒

Net changes of items other thanshareholders’ equity

619

(1)

18

637

(41)

(25)

569

Total changes of items during
period

619

(1)

18

637

(41)

(25)

3,492

Balance at end of current period

521

(1)

(8)

512

199

237

54,632‒ 13 ‒

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)

9,373
2,031
2,071
235
(43)
101
(347)
45
1,147
42
(72)
‒
(214)

7,172
1,803
2,589
234
222
237
(292)
36
1,226
‒
‒
171
‒

113

(258)

33,7874,067(5)
2
52,338347(1,152)(4,039)214
47,70819,454
1,459(611)(2,469)30,975292(1,211)(3,726)‒26,330(152)155
0(29,251)8(229)(1,074)
(623)
486

(127)
145
0
(25,771)
901
(94)
(75)
(41)
4

4

0

(1,224)(0)(236)(32,136)(32)(25,090)(1,542)
81,623(84,593)
4,900
‒
(152)
(1,842)‒(1,608)
13,963
20,642
34,605(7,835)66,404(55,038)
1,300
(296)
(12)
(1,842)
(23)
2,654
3,894
34,60538,500Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Share-based compensation expenses
Interest expense
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sale of property, plant and equipment
Penalty income
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received
Other
SubtotalInterest and dividends received
Interest expenses paid
Income taxes paid
Penalty income received
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Decrease (increase) in short-term loans receivable
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from purchase of shares of subsidiaries resulting
in change in scope of consolidation
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Repayment of lease obligations
Cash dividends paid
Dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalent at end of year

‒ 14 ‒

(5) Notes to the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable.

(Consolidated Balance Sheet)
The Group maintains overdraft and credit line agreements with 61 financial institutions (March 31, 2020: 57) in order to ensure theefficient funding of operating capital. The unused balance of borrowings under these agreements at the consolidated fiscal year-end is
as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2020)
Total maximum amount of overdraft and credit
lines
Outstanding borrowing balance
Difference

Current Consolidated Fiscal Year
(March 31, 2021)

58,99670,93028,92939,38030,06731,550(Consolidated Statement of Income)*1. Inventories are stated at the amount after the write-down reflecting the decline in profitability. Loss on valuation of inventories
included in Cost of sales is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2019 to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020 to March 31, 2021)
911

305

*2. Selling expenses account for approximately 43% for the year ended March 31, 2020 and 40% for the year ended March 31, 2021,
and general and administrative expenses account for approximately 57% and 60%, respectively.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)

Advertising expenses
Sales promotion expenses
Salaries and allowances
Provision for allowance for bonuses
Retirement benefit costs
Provision for allowance for directors’ retirement
benefits
Provision for allowance for doubtful accounts

Previous Consolidated Fiscal Year
Current Consolidated Fiscal Year
(From April 1, 2019 to March 31, 2020) (From April 1, 2020 to March 31, 2021)
4,646
4,007
2,311
2,475
3,157
3,385
660
688
121
255
27

27

‒

146

*3. Impairment loss
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)
Mainly due to the declining profitability of real estate for the hotel business, the Group recorded impairment losses (¥2,071 million)
for the following assets or asset groups in the consolidated fiscal year under review.
Use

HotelsType

Location

Amount(Millions of yen)Land, buildings

Kyoto-shi, Kyoto

746

Land, buildings

Kyoto-shi, Kyoto

230

Land

Kyoto-shi, Kyoto

658

Land

Osaka-shi, Osaka
Total

435
2,071

The itemized totals are ¥1,515 million for land and ¥556 million for buildings, respectively.
The Group classifies hotels by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a real estate appraiser.

‒ 15 ‒

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)
Mainly due to the declining profitability of rental properties, hotels and idle assets, the Group recorded impairment losses (¥2,589
million) for the following assets or asset groups in the consolidated fiscal year under review.
Use
Rental properties

HotelsIdle assets

Type

Amount(Millions of yen)

Location

Land, buildings

Kyoto-shi, Kyoto

388

Land, buildings

Kyoto-shi, Kyoto

995

Land, buildings

Kyoto-shi, Kyoto

593

Land

Kyoto-shi, Kyoto

113

Land, buildings

Kyoto-shi, Kyoto

467

Land

Tochigi-shi, Tochigi

30

Total

2,589

The itemized totals are ¥1,404 million for land and ¥1,185 million for buildings, respectively.
The Group classifies rental properties, hotels and idle assets by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a real estate appraiser.

(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings for lease (including land) and condominiums for lease inTokyo and other areas. During the fiscal year ended March 31, 2020, net rent income from these rental properties amounted to ¥809
million (rent income is recorded in net sales and major rent expenses are recorded in cost of sales). During the fiscal year ended March
31, 2021, net rent income from these rental properties amounted to ¥210 million (rent income is recorded in net sales and major rent
expenses are recorded in cost of sales).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value are as
follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2019 to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020 to March 31, 2021)

45,03038,250Consolidated balance sheet
Beginning balance
Changes during the year

(6,780)1,459

Ending balance

38,25039,70938,31939,099Market value at end of year

(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents the acquisition cost net of accumulated depreciation
and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increases during the year ended March 31, 2020 include the acquisition of realestate (¥9,766 million), and major decreases include transfer to real estate held for sale and real estate held for sale inprogress (¥23,587 million) and depreciation (¥511 million). For the year ended March 31, 2021, the major increases include
the acquisition of real estate (¥11,746 million) and change in purpose to rental properties, etc. (¥5,251 million) and the
major decreases include transfer to real estate held for sale and real estate held for sale in progress (¥15,375 million),
depreciation (¥433 million) and impairment loss (¥ 856 million).
3. Market value at the end of the year is based on the appraisal value by a third party real estate appraiser.
4. Assets under construction are not included in the above table as it is not practicable to obtain their market value.

‒ 16 ‒

(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information is available that isevaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing performance.
The Group’s core business is construction and sales of built-for-sale condominiums. The Group’s reportable segments consist of fourbusiness segments: the real estate sales business, the real estate rental business, the real estate management business and the electric
power generation business.
The real estate sales business primarily engages in sales of new built-for-sale condominiums, profit-generating real estate, detachedhouses and condominium renovation.
The real estate rental business provides the office and residential condominiums rental service, and the real estate managementbusiness provides the condominium management service.
The electric power generation business engages in electric power generation using renewable energy.
2. Calculation methods of net sales, profit or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those used to prepare the consolidated financial
statements, except for the valuation of inventories.
Inventories are stated at the value after the write-down, reflecting the decline in profitability.
Reportable segment profit represents operating profit.
Inter-segment sales and transfers are valued at market prices.
3. Net sales, profit or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable segments
Real estatesales
business
Net sales
Net sales to external customers
Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Amortization of goodwill
Interest expense
Increase in property, plant andequipment and intangible
assetsElectric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)

Total

129,649

5,965

5,046

20,982

161,643

6,850

168,493

0

84

228

‒

313

621

934

129,649
7,500
82,472
71,705

6,049
981
43,00832,080

5,275
(46)
691
1,371

20,982
3,325
25,343
26,941

161,956
11,760151,516
132,097

7,471
880
9,193
8,273

169,427
12,640160,709140,371

126
‒
560

516
78
282

6
‒
‒

1,089
‒
108

1,737
78
951

125
‒
84

1,863
78
1,036

251

16,392

13

9,212

25,8682,975

28,843(Note) “Other” represents business segments that are not included in any reportable segments and includes investment managementbusiness, the construction contract business and the repair work business.

‒ 17 ‒

Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Reportable segments
Real estatesales
business
Net sales
Net sales to external customers
Inter-segment sales andtransfers
Total
Segment profit (loss)
Segment assets
Segment liabilities
Other items
Depreciation and amortization
Amortization of goodwill
Interest expense
Increase in property, plant andequipment and intangible
assetsElectric
Real estate Real estate
power
rentalmanagement
generation
businessbusinessbusiness

Total

Other
(Note)

Total

117,200

5,753

5,446

13,485

141,8856,512

148,397

3,056

53

224

34

3,368

893

4,262

120,256
9,542
86,333
71,374

5,807
580
43,96937,043

5,671
(150)
1,283
1,390

13,519944
34,50032,691

145,254
10,917
166,087
142,499

7,405
751
2,721
1,740

152,660
11,669168,808
144,240

129
‒
615

442
78
341

6
‒
‒

921
‒
173

1,500
78
1,130

153
‒
0

1,654
78
1,131

194

12,7088

12,56525,47698

25,575(Note) “Other” represents business segments that are not included in any reportable segments and includes investment managementbusiness, the construction contract business and the repair work business.

‒ 18 ‒

4. Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference adjustments)(Millions of yen)
Net sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Net sales of “Other” category
Elimination of inter-segment transactions

161,956
7,471
(934)

145,254
7,405(4,262)

Net sales on the consolidated financial statements

168,493

148,397(Millions of yen)

ProfitPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Profit of “Other” category
Elimination of inter-segment transactions
Amortization of goodwill

11,760
880
(582)
(156)

10,917
751
(724)
(155)

Operating profit on the consolidated financial statements

11,901

10,789(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category
Elimination of amounts due from the parent administrative
division
Corporate assets (Note)

151,516
9,193

166,087
2,721(14,247)(14,308)

48,98649,815

Total assets in the consolidated financial statements

195,448

204,315(Note) Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash and deposits, assets
attributable to the administrative division, and deferred tax assets.
(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category
Elimination of amounts due to the parent administrative
division
Corporate liabilities (Note)

132,097
8,273

142,499
1,740(12,039)(12,167)

15,977

17,609Total liabilities in the consolidated financial statements

144,309

149,683(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of borrowings.
(Millions of yen)
Other items
Depreciation and amortization

Total reportablesegments

Other

Consolidated financial
statements

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

1,737

1,500

125

153

167

149

2,031

1,803

Amortization of goodwill

78

78

‒

‒

156

155

235

234

Interest expense

951

1,130

84

0

110

95

1,147

1,226

25,86825,476

2,975

98

(1)

91

28,841

25,666

Increase in property, plant andequipment and intangible
assets (Note)(Note) Adjustments for increase in property, plant and equipment and intangible assets represent goodwill incurred but not allocatedto reportable segments, capital expenditure for the headquarters building and the elimination of inter-segment transactions.

‒ 19 ‒

b. Impairment loss on non-current assets by reportable segment
Previous consolidated fiscal year (From April 1, 2019 to March 31, 2020)(Millions of yen)
Real estate
sales businessImpairment loss

Real estate
rentalbusiness‒

Real estate
managementbusiness‒

Electric
power
generation
business‒

Other (Note)‒

Corporate /elimination

2,071

Total
‒

2,071

(Note) “Other” represents the amount related to the hotel business.
Current consolidated fiscal year (From April 1, 2020 to March 31, 2021)(Millions of yen)
Real estate
sales businessImpairment loss‒

Real estate
rentalbusiness

Real estate
managementbusiness

856

Electric
power
generation
business‒

Other (Note)

30

1,703

Corporate /elimination

Total
‒

2,589

(Note) “Other” represents the amount related to the hotel business.

(Per Share Information)
Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)

Net assets per share

467.05 yen

498.78 yen

Profit per share

49.45 yen

43.22 yen

Diluted profit per share

49.11 yen

42.94 yen

(Note) The basis for the calculation of profit per share and diluted profit per share is as follows.
Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)

5,361

4,693

‒

‒

Profit attributable to owners of parent with respect tocommon stock (millions of yen)

5,361

4,693

Average number of shares during the year (thousand
shares)108,412

108,592

Adjustments to profit attributable to owners of parent(millions of yen)‒‒

Increase in number of common stock (thousand shares)

754

716

(Of those, share acquisition rights (thousand shares))

(754)

(716)

Profit per share
Profit attributable to owners of parent (millions of yen)Amount not attributable to common stockholders(millions of yen)

Diluted profit per share

Overview of dilutive shares not included in the calculationof diluted profit per share due to its anti-dilutive effect‒‒ 20 ‒‒

(Significant Subsequent Events)
The Company’s extraordinary meeting of the Board of Directors held on April 12, 2021 adopted a resolution to approve the Company’s
acquisition of all issued shares of ACA Clean Energy Co., Ltd. and to reorganize it into a consolidated subsidiary. On the same date,
the Company concluded a share acquisition agreement and accordingly acquired ACA Clean Energy’s shares on April 13, 2021.
1. Reason for the share acquisition
In 2016, Takara Leben Infrastructure Fund, Inc. became first to be listed on the Infrastructure Fund Market of the Tokyo Stock Exchange
in 2016. The Company has pushed ahead with its mega-solar power business as a large operator of renewable energy power generation.
To supply more renewable energy in view of the future realization of a zero-carbon society, the Company decided to acquire the sharesof ACA Clean Energy, based in Chuo-ku, Tokyo, and make it a consolidated subsidiary. This company has since its foundation been
engaged in the development of small solar power generation facilities all over the country and has amassed a considerable track record.
Amid growing demand for renewable energy in Japan, it keeps on-site and off-site power purchase agreement (PPA) models and theidea of local microgrids in mind to establish a business model that is not dependent on the feed-in tariff (FIT) program. The Company
believed that the reorganization of this company into a consolidated subsidiary would greatly aid the continued strengthening of theGroup’s electric power generation business and the future expansion of the energy business, so the Company made its decision toacquire all shares of ACA Clean Energy.
2. Name of the company whose shares were acquired
ACA Clean Energy Co., Ltd.
3. Name, business and scale of the company acquired(1) Name of company acquired: ACA Energy Co., Ltd.
(2) Business:
Operations involving the planning, design, construction, management and other operations of
power sales facilities and secondary use facilities and systems in the renewable energy businessas well as related consulting services.
(3) Capital:¥655 million
4. Date of share acquisition
April 13, 2021
5. Number of shares acquired, acquisition value and ratio of ownership after acquisition(1) Number of shares acquired:
130,500(2) Ratio of ownership after acquisition: 100.0%
The acquisition value is not disclosed in accordance with the agreement between the parties involved. The shares were acquired at afair and appropriate value.
6. Financing of payment and payment method
The Company’s funds on hand were used for the payment.

‒ 21 ‒

4. Other
Production, Orders Received and Sales(i) Number of units contracted during the year

Segment name

Previous Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)

Current Consolidated Fiscal Year
(From April 1, 2020
to March 31, 2021)

Real estate sales business
Total

Amounts
Number of units(millions of yen)
2,410
138,6272,410
138,627

Amounts
Number of units(millions of yen)
2,310
106,736
2,310
106,736

Year-on-Year (%)

77.0
77.0

(Note) The above amounts do not include consumption tax.
(ii) Balance of contract
Segment name

Previous Consolidated Fiscal Year
(March 31, 2020)
Amounts(millions of yen)
1,090
47,736
1,090
47,736

Number of units
Real estate sales business
Total

Current Consolidated Fiscal Year
(March 31, 2021)
Amounts(millions of yen)
944
37,272944
37,272Year-on-Year (%)

Number of units

78.1
78.1

(Note) The above amounts do not include consumption tax.
(iii) Net sales
Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2020 to March 31, 2021)(millions of yen)

Year-on-Year (%)

Real estate sales business

117,200

90.4

Real estate rental business

5,753

96.5

Real estate management business

5,446

107.9

Electric power generation business

13,485

64.3

Total reportable segments

141,885

87.8

6,512

95.1

148,397

88.1

Other
Total
(Notes) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption tax.

‒ 22 ‒