Consolidated Financial Report for the Fiscal Year Ended March 31, 2020 (Japan GAAP)May 25, 2020
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, Executive officer of General Planning Division
Tel. +81-3-6551-2130
Scheduled date of annual general meeting of shareholders:June 29, 2020
Scheduled date for commencement of dividend payment:
June 30, 2020
Scheduled date for release of annual securities report:
June 29, 2020
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, 2020 (From April 1, 2019 to March 31, 2020)(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, 2020
Year ended March 31, 2019
(Note) Comprehensive income:%

168,493132,005

Millions of yen

27.6
19.1

%

11,901
10,046

Year ended March 31, 2020:

18.5(20.3)¥5,202 million (-18.8%)

Yen%

11,201
9,027

Millions of yen

24.1(23.4)

Yen

49.45
59.33

49.11
59.00

(Reference) Equity in profit of affiliates:

Year ended March 31, 2020: ¥(4) million(16.6)(12.8)¥6,408 million (-16.0%)

Ratio of ordinary
profit to total
assets%Year ended March 31, 2020
Year ended March 31, 2019

%

5,361
6,426

Year ended March 31, 2019:

Ratio of earnings
to shareholders’equityDiluted profit
per share

Profit per share

Millions of yen

Ratio of operating
profit to net sales

%

10.9
14.3

%

5.9
5.0

7.1
7.6

Year ended March 31, 2019:¥(72) million(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

195,448
184,893

51,13947,734As of March 31, 2020
As of March 31, 2019

(Reference) Shareholders’ equity: As of March 31, 2020:

Net assets per share
%

Yen

25.9
25.6

467.05436.68¥50,634 million

As of March 31, 2019:¥47,341 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

47,70822,428(32,136)(34,347)(1,608)3,427

34,605
20,642

Year ended March 31, 2020
Year ended March 31, 2019
2. Dividends

Annual dividends per share
Q1
Year ended March 31, 2019Year ended March 31, 2020

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

%

%

‒
‒

5.00
6.00

‒
‒

11.00
13.00

16.00
19.00

1,734
2,059

27.0
38.4

3.8
4.2

Given the uncertainty regarding the impact of the globally spreading COVID-19 coronavirus, it is difficult for the Company toreasonably determine dividend forecasts for the fiscal year ending March 31, 2021. It therefore will not yet determine the interim andyear-end dividend forecasts.
3. Forecast for Consolidated Financial Results for the Year Ending March 31, 2021 (From April 1, 2020 to March 31, 2021)
Given the uncertainty regarding the impact of the globally spreading COVID-19 coronavirus, it is difficult for the Company to properly
and reasonably determine results forecasts. Therefore, it will not yet determine forecasts regarding the consolidated financial results
for the fiscal year ending March 31, 2021. Going forward, when the Company is ready to make reasonable forecasts, it will makeannouncements accordingly. For details, please see “1. Overview of Operating Results, Etc. (4) Future Outlook” on page 6 of theattached material.

‒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, 2020:
121,000,000 shares
As of March 31, 2019:
121,000,000 shares(ii) Number of treasury stock at end of year
As of March 31, 2020:
12,587,307 shares
As of March 31, 2019:12,587,307 shares(iii) Average number of shares during the year
Year ended March 31, 2020:
108,412,693 sharesYear ended March 31, 2019:108,321,406 shares* 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.

‒2‒

○ Contents of Attachment
1. Overview of Operating Results, Etc. ...........................................................................................................................................
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020 ............................................................................
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020 ...........................................................................
(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2020 .......................................................................................
(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 ........................................................................................................................................

‒3‒

4
4
5
6
6
7
7
8
8
10
10
11
12
14
15
15
15
15
16
16
19
19
20
20

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2020
During the fiscal year under review, the Japanese economy continued to recover moderately amid improved corporate earnings and astronger employment and income situation, backed by a range of fiscal measures implemented by the government. However,uncertainty has been growing since the beginning of 2020, due to sluggish economic activities in Japan and worldwide due to the
COVID-19 coronavirus.
In the real estate sales market in which the Company operates, upward trends are seen in demand for convenient locations and daily
life and compact condominiums, reflecting changes in end-user lifestyle caused by an increase in single-person households and dualincome households and changes in consumer values. Meanwhile, demand in regional urban centers remains strong, thanks in part tothe 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, as shown by the latest number of condominium units sold of 31,238 units (a survey madeby Real Estate Economic Institute Co., Ltd.), or a decrease of 15.9% from the previous year. Sales prices, despite the apparent plateauingof increases in recent years, are still at high levels.
The number of nationwide condominium units supplied decreased by approximately 10,000 from that in 2018, to 70,660 units (a survey
made by Real Estate Economic Institute Co., Ltd.), reflecting the impact of a decline in the number of units sold in the Tokyo
metropolitan area. Under these conditions, the Company ranked eighth in the condominium developer ranking based on number ofcondominium units sold, ranking among the top 10 for the seventh consecutive year, and plays the role of a stable supplier in the realestate sales market as an independent general real estate developer.
In this environment, the Company is ensuring stable earnings by renewing its mid-term management plan on May 14, 2018 andresponding promptly and appropriately to changes in its external and internal environments.
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 ¥168,493 million (up 27.6% year on year), consolidated
operating profit of ¥11,901 million (up 18.5% year on year), consolidated ordinary profit of ¥11,201 million (up 24.1% year on year)
and profit attributable to owners of parent of ¥5,361 million (down 16.6% year on year).
(i) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥129,649 million, up 23.7% year on year, as a result of revenues of ¥77,171
million from the sales of new built-for-sale condominiums, revenues of ¥37,854 million from the sale of profit-generating real estate,
and revenues of ¥14,623 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 ¥5,965 million, up 2.3% 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 59,747 units under management amounted to¥5,046 million, up 11.9% year on year.
<Electric Power Generation Business>
Revenues from the electric power generation business amounted to ¥20,982 million, up 94.4% 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 ¥6,850 million, up 13.3% 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 ¥129,649 million, reflecting sales of 1,955 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 ¥5,965 million due to rental revenues of apartments, condominiums and offices, etc.
In the real estate management business, net sales came to ¥5,046 million due to management fees, etc. from 59,747 units managed.
In the power generation business, net sales were ¥20,982 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 ¥6,850 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 increased to ¥168,493 million, up 27.6% year on year.
<Cost of Sales>
The cost of sales increased 31.3% year on year, to ¥137,977 million, reflecting an increase in sales of the real estate sales business.
<Selling, General and Administrative Expenses>
Selling, general and administrative expenses increased 10.5% year on year, to ¥18,614 million, chiefly owing to higher advertisingexpenses associated with increase in units sold and an increase in personnel associated with business expansion.
<Non-Operating Income and Expenses>
Non-operating income increased 86.7% year on year, to ¥579 million, due largely to an increase in dividend income.
Non-operating expenses decreased 3.7% year on year, to ¥1,279 million, chiefly due to a decrease in share of loss of entities accounted
for using equity method.
<Extraordinary Income and Losses>
Extraordinary income decreased 8.5% year on year, to ¥286 million, reflecting the recording of sales of investment securities andpenalty income.
Extraordinary losses increased ¥2,099 million year on year, to ¥2,114 million, primarily due to the recording of impairment losses.
As a result, consolidated net sales amounted to ¥168,493 million, up 27.6% year on year, consolidated operating profit came to ¥11,901
million, up 18.5% year on year, consolidated ordinary profit was ¥11,201 million, up 24.1% year on year, and profit attributable toowners of parent was ¥5,361 million, down 16.6% year on year, in the fiscal year under review.

(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2020
With regard to the status of consolidated assets, liabilities and net assets of the Group for the fiscal year under review, total assets
increased ¥10,555 million from the end of the previous fiscal year, to ¥195,448 million, mainly reflecting an increase in cash anddeposits due to the delivery of new built-for-sale condominiums.
<Current assets>
Current assets rose ¥16,801 million from the end of the previous year, to ¥115,314 million, chiefly reflecting an increase in cash anddeposits due to the delivery of new built-for-sale condominiums.
<Non-current assets>
Non-current assets declined ¥6,411 million year on year, to ¥79,874 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 increased ¥7,077 million from the end of the previous year, to ¥65,616 million, mainly due to an increase in notes
payable attributable to payments for works carried out by general contractors and the reclassification between short-term loans payable
and long-term loans payable.
<Non-current liabilities>
Non-current liabilities increased ¥73 million from the end of the previous year, to ¥78,692 million, mainly due to the issuance ofcorporate bonds despite repayments of loans payable and the reclassification between short-term loans payable and long-term loans
payable.

‒5‒

<Net assets>
Net assets increased ¥3,404 million from the end of the previous fiscal year, to ¥51,139 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, 2020
Cash and cash equivalents (“funds”) as of March 31, 2020 amounted to ¥34,605 million, an increase of ¥13,963 million from March
31, 2019.
<Cash flows from operating activities>
Net cash provided by operating activities was ¥47,708 million (cash provided of ¥22,428 million in the previous fiscal year). The major
component was a decrease in inventories.
<Cash flows from investing activities>
Net cash used in investing activities was ¥32,136 million (cash used of ¥34,347 million in the previous fiscal year), mainly due to thepurchase of property, plant and equipment.
<Cash flows from financing activities>
Net cash used in financing activities was ¥1,608 million (cash provided of ¥3,427 million in the previous fiscal year), which was
primarily attributable to a decrease in loans payable.
(Reference) Changes in Cash Flow Indicators
FY2018/3

FY2019/3

FY2020/3

Equity ratio (%)

24.1

25.6

25.9

Equity ratio at market value (%)

28.0

20.2

19.4

Debt repayment period (years)

10.8

5.0

2.4

Interest coverage ratio (times)

9.8

20.2

41.4

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.

(4) Future Outlook
Looking ahead to the next fiscal year, it is expected that measures to prevent the spread of the COVID-19 coronavirus will continue
for some time. Given the possibility that the impact of the coronavirus on economic and social activities will become even more serious,
concerns are expected to grow in conjunction with the economic slowdown occurring not only in Japan but globally as well.
The real estate sales industry in which the Group operates may see an impact mainly pertaining to sales conducted in model rooms in
different areas, the acquisition and development of offices, residences, commercial stores and hotels, among other properties in the
securitization business, and rental revenue from tenants. The Group seeks to diversify risk by promoting sales nationwide instead of
focusing on specific areas while at the same time supplying products tailored to real market demand, among other products, which are
not easily influenced by economic trends.
In this situation, the Group will work on sales activities while also continuing to implement measures to prevent the spread of thecoronavirus in strict compliance with requests from the government and prefectural authorities. Given the uncertainty over the degreeof impact on economic and social activity in Japan, and how long it will take for the coronavirus to be controlled and business torecover, it is difficult at this time for the Company to properly and reasonably forecast financial results for the next fiscal year. Therefore,
it will not yet determine results forecasts and make announcements when it is ready to make such forecasts.
In the real estate sales business, the number of new built-for-sale condominiums contracted whose delivery is expected to occur in thefiscal year ending March 31, 2021 is 1,062 units (including JV equity interests) as of March 31, 2020.

‒6‒

(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 the year-end dividend of ¥13.0 per share in line with the previous forecast.
The annual dividend comes to ¥19.0 per share including the interim dividend that has been already paid. The payout ratio comes to38.4%.
For the next fiscal year, the Company will continue to pay shareholder returns with the payout ratio of 25% or higher. However, withthe degree of the impact of the coronavirus being unclear, it is difficult for the Company to properly and reasonably make decisions
with respect to business forecasts at the present time. Therefore, it will not yet make decisions regarding the interim and year-end
dividend forecasts.

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, 2019)

Current Consolidated Fiscal Year
(March 31, 2020)

21,1652,071
18,82149,860
519
6,192
(118)

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

98,512

115,314

19,933(1,871)

14,948(1,682)

18,061
16,176(1,960)13,266
3,446(578)

14,216

2,867

334
(175)

381
(229)

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

159
35,602
255
(109)

152
33,903
70(61)

Lease assets, net
Construction in progress

145
7,039

8
17,022

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

75,224

67,220

1,375
13
451

1,145
2
642

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

1,840

1,790

4,597
0
727
3,904
(9)

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

Total investments and other assets

9,220

10,863

Total non-current assets
Deferred assets

86,286
94

79,874259

Total assets

184,893

195,448

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, 2019)
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, 2020)

7,790
17,831‒
19,743
40
2,760
4,274
454
447
5,195

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

58,53965,61673,882
200
123
99
543
23
134
3,613

69,656
4,804
1
97
653
58
151
3,269

78,61978,692

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

137,158

144,309

4,819
4,817
42,299(4,695)

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

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

47,24150,759

121
‒
(21)

(97)
(0)
(27)

100
196
197

(124)
241
263

Total net assets

47,734

51,139Total liabilities and net assets

184,893

195,448

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, 2018
to March 31, 2019)
132,005*1
105,119

Gross profit
Selling, general and administrative expenses*2

Operating profit
Non-operating income
Interest income
Dividend income
Commission fee
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Share of loss of entities accounted for using equity
methodMiscellaneous loss

26,886
16,839Current Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)
168,493*1
137,977*2

30,516
18,614

10,046

11,901

0
160
99
50

0
347
119
113

310

579

1,103

1,147

72

4

152

128

Total non-operating expenses

1,328

1,279

Ordinary profit
Extraordinary income
Compensation received for damage
Gain on sales of investment securities
Penalty income

9,027

11,201

121
191
‒

‒
72
214

Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Office transfer expenses

312

286

Total extraordinary losses

14

2,114

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

9,326
3,130
(374)

9,373
4,181
(235)

Total income taxes
Profit

2,755
6,570

3,945
5,427

‒
‒
14

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

*3

2,071
42
‒

143

66

6,426

5,361

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2018
to March 31, 2019)
6,570

Current Consolidated Fiscal Year
(From April 1, 2019
to March 31, 2020)
5,427

(140)
‒
(21)

(218)
(0)
(5)

Total other comprehensive income

(161)

(224)

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

6,408

5,202

6,264

5,136

143

66

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, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

4,819

Retained earnings

4,823

Total shareholders’equityTreasury shares

38,717(5,875)42,485

Changes of items during period
Dividends of surplus(1,732)(1,732)

Profit attributable to owners ofparent

6,426

6,426

Disposal of treasury shares

61

61

1,119

‒

Retirement of treasury shares(1,119)Transfer to capital surplus fromretained earnings

1,112(1,112)

‒

(6)

3,582

1,180

4,755

4,819

4,817

42,299(4,695)47,241‒

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-for-salesecurities

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeShare acquisitionrightsNon-controllinginterests

Total net assets

262

‒

262

159

‒

42,907

Changes of items during period
Dividends of surplus(1,732)

Profit attributable to owners ofparent6,426

Disposal of treasury shares

61

Retirement of treasury shares‒

Transfer to capital surplus fromretained earnings‒

Net changes of items other thanshareholders’ equity

(140)

(21)

(161)

36

197

72

Total changes of items during
period

(140)

(21)

(161)

36

197

4,827

Balance at end of current period

121

(21)

100

196

197

47,734‒ 12 ‒

Current 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

‒

Share
acquisitionrights

Noncontrollinginterests

196

197

Total net
assets

Total
Remeasurements
accumulatedof defined benefit
other
plans
comprehensive
income(21)100

47,734

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‒ 13 ‒

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2018
to March 31, 2019)

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

9,326
2,447
‒
230
50
76
(160)
100
1,103
‒
(191)
‒

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

(514)

113

20,064(7,995)2,097
658
27,291160(1,107)(3,915)‒22,42833,7874,067(5)
2
52,338347(1,152)(4,039)214
47,708(171)186
0(30,484)
3
(34)
(225)
(2,625)
200

(152)
155
0
(29,251)8(229)(1,074)
(623)
486

‒

4

(1,195)(1,224)(0)(34,347)(236)(32,136)(596)
57,468(51,657)‒(56)(1,730)3,427(8,491)
29,042(1,542)
81,623(84,593)
4,900
(152)
(1,842)(1,608)
13,963
20,642

91‒

20,642

34,605

Cash 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
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
Repayment of lease obligations
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
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 57 financial institutions (March 31, 2019: 51) 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, 2019)

Current Consolidated Fiscal Year
(March 31, 2020)

Total maximum amount of overdraft and credit
lines
Outstanding borrowing balance

60,11858,996

40,84728,929Difference

19,27030,067(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, 2018 to March 31, 2019)

Current Consolidated Fiscal Year
(From April 1, 2019 to March 31, 2020)
(55)

911

*2. Selling expenses account for approximately 44% for the year ended March 31, 2019 and 43% for the year ended March 31, 2020,and general and administrative expenses account for approximately 56% and 57%, 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, 2018 to March 31, 2019) (From April 1, 2019 to March 31, 2020)
4,399
4,646
2,123
2,311
2,769
3,157
570
660
95
121
25

27

11

‒

*3. Impairment loss
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 ‒

(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, 2019, net rent income from these rental properties amounted to ¥726
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, 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).
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, 2018 to March 31, 2019)

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

52,65045,030Consolidated balance sheet
Beginning balance
Changes during the year

(7,619)(6,780)Ending balance

45,03038,25045,471

38,319Market 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, 2019 include the acquisition of realestate (¥12,935 million), and major decreases include transfer to real estate held for sale and real estate held for sale inprogress (¥20,160 million) and depreciation (¥699 million). The major increases during the year ended March 31, 2020
include the acquisition of real estate (¥9,766 million), and major decreases include transfer to real estate held for sale andreal estate held for sale in progress (¥23,587 million) and depreciation (¥511 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.

(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.

‒ 16 ‒

3. Net sales, profit or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segments
Real estatesales
business
Net sales
Net sales to external customers
Inter-segment sales andtransfers
Total
Segment profit
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

104,823

5,829

4,512

10,794125,959

6,045

132,005

977

66

243

‒

1,287

1,331

2,618

105,800
7,158
79,76474,581

5,895
728
48,26330,951

4,756
140
588
1,112

10,794
1,433
31,83931,912

127,246
9,460
160,455
138,557

7,377
1,143
9,435
7,271

134,623
10,603
169,891
145,828

113
‒
664

700
78
225

7
‒
‒

1,282
‒
137

2,104
78
1,027

140
‒
47

2,245
78
1,074

9

19,48815

8,395

27,9091,700

29,610(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.
Current 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 ‒

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

127,246
7,377(2,618)161,956
7,471
(934)

Net sales on the consolidated financial statements

132,005

168,493(Millions of yen)

ProfitPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

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

9,460
1,143
(406)
(151)

11,760
880
(582)
(156)

Operating profit on the consolidated financial statements

10,046

11,901(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)

160,455
9,435

151,516
9,193(20,727)(14,247)

35,72848,986

Total assets in the consolidated financial statements

184,893

195,448(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)

138,557
7,271

132,097
8,273(18,688)(12,039)

10,017

15,977

Total liabilities in the consolidated financial statements

137,158

144,309(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of borrowings.
(Millions of yen)
Other items

Total reportablesegments

Other

Consolidated financial
statements

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

Previous
FY

Current
FY

2,104

1,737

140

125

202

167

2,447

2,031

78

78

‒

‒

151

156

230

235

Interest expense

1,027

951

47

84

28

110

1,103

1,147

Increase in property, plant andequipment and intangible
assets27,90925,868

1,700

2,975

292

(1)

29,902

28,841

Depreciation and amortization
Amortization of goodwill(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.

‒ 18 ‒

b. Impairment loss on non-current assets by reportable segment
Previous consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Not applicable.
Current 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‒

Corporate /elimination

Other
‒

2,071

Total
‒

2,071

(Per Share Information)
Previous Consolidated Fiscal Year
(From April 1, 2018
to March 31, 2019)

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

Net assets per share

436.68 yen

467.05 yen

Profit per share

59.33 yen

49.45 yen

Diluted profit per share

59.00 yen

49.11 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, 2018
to March 31, 2019)

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

6,426

5,361

‒

‒

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

6,426

5,361

Average number of shares during the year (thousand
shares)108,321

108,412‒‒

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
Adjustments to profit attributable to owners of parent(millions of yen)
Increase in number of common stock (thousand shares)

610

754

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

(610)

(754)

Overview of dilutive shares not included in the calculationof diluted profit per share due to its anti-dilutive effect‒(Significant Subsequent Events)
Not applicable.

‒ 19 ‒‒

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

Segment name

Previous Consolidated Fiscal Year
(From April 1, 2018
to March 31, 2019)

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

Real estate sales business
Total

Amounts
Number of units(millions of yen)
2,322
122,907
2,322
122,907

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

Year-on-Year (%)

112.8
112.8

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

Previous Consolidated Fiscal Year
(March 31, 2019)
Amounts(millions of yen)
951
38,758951
38,758

Number of units
Real estate sales business
Total

Current Consolidated Fiscal Year
(March 31, 2020)
Amounts(millions of yen)
1,090
47,736
1,090
47,736Year-on-Year (%)

Number of units

123.2
123.2

(Note) The above amounts do not include consumption tax.
(iii) Net sales
Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2019 to March 31, 2020)(millions of yen)

Year-on-Year (%)

Real estate sales business

129,649

123.7

Real estate rental business

5,965

102.3

Real estate management business

5,046

111.9

Electric power generation business

20,982

194.4

Total reportable segments

161,643

128.3

6,850

113.3

168,493

127.6

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

‒ 20 ‒