First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2020 (Japan GAAP)
July 31, 2020

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, Representative Director, CEO, President Executive Officer
Masashi Yamamoto, Director, CFO, Executive officer and Executive General Manager ofGeneral 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 7, 2020
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2020
(April 1-June 30, 2020)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net income
Net Sales

Operating Income

Ordinary Income

attributable toowners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Three months ended June 30, 2020

15,71728.9(194)－(273)－(296)－

Three months ended June 30, 201912,192(44.5)(1,753)－(2,036)－(1,556)－(Note) Comprehensive income: Three months ended June 30, 2020 (¥112) million (－%) / Three months ended June 30, 2019 (¥1,381)
million (－%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Three months ended June 30, 2020

(2.74)－

Three months ended June 30, 2019(14.35)－(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2020

200,868

49,605

24.5

As of March 31, 2020

195,448

51,13925.9<Reference> Shareholders’ equity at end of period: June 30, 2020: ¥49,145 million / March 31, 2020: ¥50,634 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2020-

Year Ending March 31, 2021-

Year Ending March 31,2020 (Forecast)

3Q
Yen
6.00

-

Year-End
Yen

--

Total

Yen

Yen

13.00

19.00

--(Note) Has the Company changed its dividend forecast for the current quarter: NoGiven the uncertainty regarding the impact of the globally spreading COVID -19 coronavirus, it is difficult for theCompany to reasonably determine dividend forecasts for the fiscal year ending March 31, 2021. It therefore will
not yet determine the interim and year-end dividend forecasts.

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020-March 31, 2021)
Given the uncertainty regarding the impact of the globally spreading COVID-19 coronavirus, it is difficult for theCompany 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 theCompany is ready to make reasonable forecasts, it will make announcements accordingly.

*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, 2020:

121,000,000 shares

As of March 31, 2020:b.
c.

121,000,000 shares

Three months ended June 30, 2020:

12,587,307 shares

As of March 31, 2020:

12,587,307 shares

Three months ended June 30, 2020:

108,412,693 shares Three months ended June 30, 2019 :

108,412,693 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, 2020

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 ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period ................................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period ................................................................................................................... 8(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, 2020

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the first-quarter of the fiscal year ending March 31, 2021 of the Group, in response to the emergency
declaration issued on April 7 to prevent the spread of new coronavirus infection, each sales base nationwide
Although it was discontinued, after that, the emergency declaration was lifted, and after taking thorough measures
to prevent infection, we have been operating normally.
a. Performance by business segment
In the real estate sales business, sales of this business amounted to ¥10,496 million, up 70.4% on ayear-on-year basis. This reflected sales in the new built-for-sale condominium business, sales of profitable realestate, new detached house sales and sales of used condominiums.
In the real estate rental business, sales totaled ¥1,391 million, down 5.3% on a year-on-year basis. This
reflected sales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 60,400 units of residential
condominiums were ¥1,355 million, up 10.6% on a year-on-year basis.
In the electric power generation business, sales totaled ¥1,514 million, down 6.4% on a year-on-year basis,
mainly due to revenues from the sale of electricity generated by electric power generation facilities.
Sales from other businesses amounted to ¥958 million, down 44.2% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work, and commission income, etc.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥15,717 million, up 28.9% on a year-on-year basis. Operating loss amounted to ¥194 million; compared tooperating loss for the same period of the previous year was ¥1,753 million. Ordinary loss of ¥273 million;
compared to ordinary loss for the same period of the previous year was 2,036 million. And net loss attributable toowners of parent of amounted to ¥296 million; compared to quarter net loss attributable to owners of parent forthe same period of the previous year was 1,556 million.
b. Contracted ratio status
The number of units that have already been contracted and can be delivered for the full year is 1,335 units(1,176 units in the same quarter of the previous year).

(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 ¥200,868 million, an increase of ¥5,419 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventories
associated with new purchases.

(Current Assets)
Current assets increased ¥2,916 million compared with the end of the previous consolidated fiscal year to¥118,231 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets increased ¥2,529 million compared with the end of the previous consolidated fiscal year to¥82,404 million, mainly reflected by purchasing business assets and paying for construction of power generation
facilities.
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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

(Current Liabilities)
Current liabilities increased ¥3,453 million compared with the end of the previous consolidated fiscal year to¥69,070 million, mainly due to increase in short-term borrowings and the reclassification of short term and longterm borrowings payable.
(Fixed Liabilities)
Fixed liabilities increased ¥3,499 million compared with the end of the previous consolidated fiscal year, to¥82,192 million, mainly due to an increase in borrowings due to new purchases, etc.
(Net Assets)
Total net assets amounted to ¥49,605 million, down ¥1,533 million from the end of the previous consolidated
fiscal year, mainly due to the recording of a net loss attributable to owners of the parent company and thedistribution of surplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
Given the uncertainty regarding the impact of the globally spreading COVID-19 coronavirus, it is difficult forthe business forecasts for the fiscal year ending March 31, 2021. It therefore will not yet determine the forecasts.

-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of June 30, 2020

ASSETS
Current assets:
Cash and deposits

35,311

27,383

Notes and accounts receivable, trade

1,952

1,803

Real estate held for sale

23,861

24,615

Real estate held for sale in progress

46,10255,422

397

687

7,689

8,321

(2)

(3)

115,314118,231

Buildings and structures (net)13,266

13,109Land

33,90334,257

Other (net)20,05022,126

Total property, plant and equipment

67,22069,494

1,145
645

1,088
635

1,790

1,723

10,869

11,192

Allowance for doubtful accounts

(6)

(6)

Total investments and other assets

10,863

11,18679,87482,404259

233

195,448

200,868

Notes and accounts payable - trade

11,858

5,845

Short-term loans payable

17,14826,126

Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds payable

296

296

Current portion of long-term loans payable

22,11926,080

Income taxes payable

2,972

145

Allowance

980

806

Other

10,2409,769

Total current liabilities

65,616

69,070Long-term loans payable69,656

72,859Bonds payable

4,804

5,106

9794

Fixed liabilities

Allowance-4-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

(Millions of yen)
As of March 31, 2020
Liabilities related to retirement benefits

As of June 30, 2020
653

673

Other

3,481

3,458

Total fixed liabilities

78,692

82,192

144,309151,262

Total liabilities-5-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

(Millions of yen)
As of March 31, 2020

As of June 30, 2020

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

45,817

44,127

Treasury stock(4,695)(4,695)

Total shareholders’ equity

50,75949,069Foreign currency translation adjustment

(97)
(0)

102
(0)

Remeasurements of defined benefit plans

(27)

(25)

Total accumulated other comprehensive income

Accumulated other comprehensive income
Valuation difference on other securities

(124)

75

Subscription rights to shares

241

237

Non-controlling interest

263

223

51,13949,605

195,448

200,868

Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

(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, 2019

Three Months Ended
June 30, 2020

Net sales

12,192

15,717

Cost of sales

10,066

12,044Gross profit

2,125

3,672

Selling, general and administrative expenses

3,879

3,867

Operating income (loss)(1,753)(194)

Interest income

00

Dividend income

8586

Commissions received

56

Gain from equity method investment-98

Miscellaneous income

1050

Total Non-Operating income

101

241

Interest expense

277

261

Losses from equity method investment

72-

Miscellaneous losses

34

58

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

384

320

Ordinary income(loss)(2,036)(273)

Net income before income taxes (loss)(2,036)(273)

Income taxes, inhabitant taxes and business taxes

123

124

Income tax adjustments

(601)

(84)

Total income and other taxes

(478)

39

(1,558)

(313)

(1)

(16)

(1,556)(296)

Net income (loss)
Net income attributable to non-controlling shareholders (loss)
Net income attributable to owners of parent (loss)-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2020

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2019
Net income (loss)

Three Months Ended
June 30, 2020

(1,558)

(313)

-(0)

Remeasurements of defined benefit plans

1750199
1Total other comprehensive income

176

201

(1,381)(112)

Comprehensive income attributable to owners of parent(1,524)(95)

Comprehensive income attributable to non-controlling shareholders

143

(16)

Other comprehensive income:
Foreign currency translation adjustment
Net unrealized gains on available-for-sale securities

Comprehensive income(Comprising)(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.

-8-