First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2018 (Japan GAAP)
July 30, 2018

Takara Leben CO., LTD.
Shares listed on:
Security code:
URL:
Representative:
Contacts:

First Section of the Tokyo Stock Exchange
8897
https://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEO
Masashi Yamamoto, Director,Executive officer and General Planning Division
Tel: +81-3-6551-2130

Scheduled date for release of Quarterly Report:
Scheduled date for commencement of dividend payments:
Has the Company prepared supplementary briefing materials for the Quarter:
Has the Company held briefings concerning its quarterly financial results:

August 10, 2018
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2018
(April 1-June 30, 2018)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Three months ended June 30, 2018

21,9512.8793(79.1)

536(84.7)

376(84.4)

Three months ended June 30, 2017

21,361

0.8

3,791

25.0

3,505

28.3

2,409

34.8

(Note) Comprehensive income: Three months ended June 30, 2018: ¥388 million ((83.4%)) / Three months ended June 30, 2017: ¥2,338
million (21.1%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Three months ended June 30, 2018

3.48

3.47

Three months ended June 30, 2017

22.31

22.21

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2018

188,969

42,15822.2

As of March 31, 2018

177,97542,907

24.0<Reference> Shareholders’ equity at end of period: June 30, 2018: ¥41,946 million / March 31, 2018: ¥42,747 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2018-Year Ending March 31, 2019

-

3Q
Yen

Year Ending March 31, 2019 (Forecast)Year-End
Yen

Total

Yen

Yen

5.00

-

11.00

16.00

5.00

-

11.00

16.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 201 9(April 1, 2018-March 31, 2019)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Millions of yen%

130,000

17.3

Millions of yen%

10,700 (15.1)

Ordinary Income
Millions of yen%

9,600 (18.6)

Net Income perShareNet Income%yen

6,300 (14.5)

58.20

Millions of yen(Note) Has the Company changed its consolidated forecast during this quarter: No*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation) : No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
B. Changes in accounting policies other than those in (A): No
C. Changes in accounting estimates: No
D. Restatement: No(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

Three months ended June 30, 2018:

124,000,000 shares

As of March 31, 2018:

124,000,000 sharesb.

Three months ended June 30, 2018:15,750,907 shares

As of March 31, 2018:15,750,907 sharesc.

Three months ended June 30, 2018:108,249,093 shares

Three months ended June 30, 2017:

108,012,253 shares*This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments andExchange Act.
*Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter .......................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ..................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position ............................................................. 2(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2 Quarterly Consolidated Financial Statements ............................................................................................................ 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 6
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period ................................................................................................................... 6
Quarterly Consolidated Statements of Comprehensive IncomeFirst-Quarter Year-to-Date Period ................................................................................................................... 7(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 8(Notes on Assumption of Going Concern) ......................................................................................................... 8(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 8-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the first-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2019, sales
from the real estate sales business amounted to ¥12,053 million, up 156.4% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business.
In the real estate rental business, sales totaled ¥1,417 million, up 5.4% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 50,226 units of residential
condominiums were ¥1,072 million, up 9.4% on a year-on-year basis.
In the electric power generation business, sales totaled ¥6,259 million, down 54.1% on a year-on-year basis,
mainly due to revenues from the sale of 4 facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥1,148 million, up 64.4% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥21,951 million, up 2.8% on a year-on-year basis; Operating income amounted to ¥793 million, down 79.1%
on a year-on-year basis; Ordinary income amounted to ¥536 million, down 84.7% on a year-on-year basis; andNet income amounted to ¥376 million, down 84.4% on a year-on-year basis.
b. Contracted ratio status
With regard to sales performance in the first-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 868 units, compared with a full-year target of 1,700 units scheduled for delivery.
The contract ratio was at 51.1% showing a steady growth in the business.
(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)
Units scheduled for Number of contracts
Contracted ratio
Contracted ratiodeliverysignedas of April 1,2018(%)(units)(units)(%)
Three months ended
June 30, 2017
Three months ended
June 30, 2018

1,600

825

51.6

32.9

1,700868

51.1

31.1

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the first-quarter consolidated
accounting period under review, total assets were ¥188,969 million, an increase of ¥10,994 million comparedwith the end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventory inconjunction with new purchases and purchases of business assets.
(Current Assets)
Current assets increased ¥10,392 million compared with the end of the previous consolidated fiscal year to¥113,323 million. This mainly reflected an increase in inventory in conjunction with new purchase.
-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

(Fixed Assets)
Fixed assets increased ¥525 million compared with the end of the previous consolidated fiscal year to ¥75,530
million, mainly reflected the purchase business assets.
(Current Liabilities)
Current liabilities increased ¥9,808 million compared with the end of the previous consolidated fiscal year to¥66,685 million, mainly due to increase in short-term borrowings and the reclassification from long-termborrowings to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥1,934 million compared with the end of the previous consolidated fiscal year, to¥80,125 million, mainly due to the increase borrowings with new purchase.
(Net Assets)
Total net assets decreased ¥748 million compared with the end of the previous consolidated fiscal year, to¥42,158 million, chiefly because the amounts of dividend of surplus exceeded the recorded amount of profit
attributable to owners of parent.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2018.

-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2018

As of June 30, 2018ASSETS
Current assets:
Cash and deposits

29,22325,787

Notes and accounts receivable, trade

1,539

1,491

Real estate held for sale

20,27928,148

Power generation facilities for sale

4,090

―

Real estate held for sale in progress

44,06853,583

Costs incurred on uncompleted contracts

129

341

Other

3,709

4,081

Allowance for doubtful accounts

(110)

(109)

102,931

113,323

Buildings and structures (net)18,281

15,014Land

35,89935,935

Other (net)

12,15915,714

Total tangible fixed assets

66,34066,664

1,265
543

1,548
547

1,808

2,096

6,861

6,776

Total current assets
Fixed assets:
Tangible fixed assetsIntangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts

(6)

(6)

Total investments and other assets

6,854

6,769

75,00475,53038

115

177,975

188,969

Notes and accounts payable, trade

15,786

12,145

Short-term borrowings

18,38929,088Current portion of long-term borrowings

12,83816,857

Income taxes payable

3,547

164

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Reserve

888

703

Other

5,425

7,725

Total current liabilities56,876

66,68575,01576,736

Bonds payable

200200Reserve

7382

Noncurrent liabilities
Long-term borrowings-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

(Millions of yen)
As of March 31, 2018
Liabilities related to retirement benefits

As of June 30, 2018

Other436
2,465

464
2,642

Total noncurrent liabilities

78,19180,125135,067

146,810

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

(Millions of yen)
As of March 31, 2018

As of June 30, 2018

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,823

4,823

Retained earnings

38,71737,903

Treasury stock(5,875)(5,875)

Total shareholders’ equity

42,48541,672

Securities

262

274

Total accumulated other comprehensive income

262

274

159
-159
52

42,90742,158

177,975

188,969

Accumulated other comprehensive income
Net unrealized losses on available-for-sale

Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2017

Three Months Ended
June 30, 2018

Net sales

21,361

21,951

Cost of sales

14,847

17,611Gross profit

6,513

4,339

Selling, general and administrative expenses

2,722

3,546

Operating income

3,791

793

Interest income

00

Dividend income

Non-Operating income:310Commissions received

710

Miscellaneous income

39

25

Total Non-Operating income

5146

Interest expense

288

263

Losses from equity method investment

4027

Miscellaneous losses

811338302

3,505536-

191

Loss on disposal of fixed assets

8-

Office transfer expenses

89-

Non-Operating expenses:

Total Non-Operating expenses
Ordinary income
Extraordinary income
Profit on sale of investment securities
Total Extraordinary income

191

Extraordinary losses

Total extraordinary losses

97-

Net income before income taxes

3,407

728

Income taxes, inhabitant taxes and business taxes

1,393

170

Income tax adjustments

(395)

181

Total income and other taxes

998

352

2,409

376

Net income
Net income attributable to non-controlling shareholders
Profit attributable to owners of parent-7--(0)

2,409

376

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2017
Net income

Three Months Ended
June 30, 2018

2,409

376

Net unrealized gains on available-for-sale securities(71)12Total other comprehensive income(71)

122,338388

2,338389-(0)Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent
Comprehensive income attributable to non-controlling shareholders-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2018

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on a Significant Change in Shareholders’ Equity)
The Company had no pertinent matters to report.

-9-