Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2012 (Japan GAAP)
October 29, 2012

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Yoshio Murayama, President and Representative Director, CEO
Toshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
Tel: +81-3-5324-8720

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:

November 11, 2012
December 11, 2012
Yes
Yes

1. Consolidated Operating Results for the Six Months Ended September 30, 2012
(April 1-September 30, 2012)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales
Millions of yen

Six months ended September 30, 2012

34,560Six months ended September 30, 201116,237

Operating Income%Millions of yen

112.8

3,088

(2.3)

1,335

Ordinary Income%Millions of yen

131.2

2,827(39.7)

910

Net Income%Millions of yen%

210.4

2,054

188.2

(40.5)

712(52.5)(Note) Comprehensive income: Six months ended September 30, 2012: ¥2,044million (185.0%) / Six months ended September 30, 2011:¥717((52.1)%)
Net Income perShare

Diluted Net Incomeper ShareYen
Six months ended September 30, 201267.15

Six months ended September 30, 2011

22.15

Yen
67.10
-(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2012

70,41522,546

32.0

As of March 31, 2012

70,277

21,13830.1<Reference> Shareholders’ equity at end of period: September 30, 2012: ¥22,527 million / March 31, 2012: ¥21,138 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2012

-

4.00

Year Ending March 31, 2013

-

5.00

Year-End
Yen

Year Ending March 31, 2013 (Forecast)

Total

Yen

Yen

-

9.00

13.00

-

10.00

15.00

(Note) Has the Company changed its dividend forecast for the current quarter: No(Note) Year-end dividends per share for the year ended March 31, 2012 include ordinary dividend of ¥7.00 and commemorative
dividend of ¥2.00.

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2013
(April 1, 2012-March 31, 2013)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income per
ShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

63,950

15.9

7,000

18.0

6,100

20.3

3,800

3.2

122.84(Note) Has the Company changed its consolidated forecast during this quarter: No4. Other Matters(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: Yes
B. Changes in accounting policies other than those in (1): No
C. Changes in accounting estimates: Yes
D. Restatement: No(Note) These are subject to Article 10-5 of the Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Financial Statements. For more detailed information, refer to "2. Summary Information (Notes) (3)Changes in accounting policies and estimates, or retrospective restatements" on page 3.

(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.
b.
c.

As September of30, 2012: 33,386,070 shares

As of September 30, 2012:

3,074,171 shares

Six months ended September 30, 2012: 30,590,922 shares

As of March 31, 2012: 33,386,070 shares
As of March 31, 2012:

2,451,871 shares

Six months ended September 30, 2011: 32,187,444 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements based on the Financial Instruments andExchange Act.
(Note) 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 arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

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. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period ................................................ 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 3
3. 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
Second-Quarter Year-to-Date Period ............................................................................................................... 6Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period .............................................................................................................. 7(3) Notes Pertaining to the Going Concern Assumption .......................................................................................... 8(4) Notes on Significant Changes to Shareholders’ Equity ...................................................................................... 8-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
The first half of the fiscal year under review was marked by fiscal problems in certain European countries, thepersistent strength of the yen, a slowdown in economic growth in emerging countries, and other factors that castshadows over the outlook for the Japanese economy.
In the real estate industry, where the Takara Leben Group operates, although strong concerns remained overthe direction of the economy, there were some indications of a recovery, primarily attributable to the positiveeffects of initiatives to stimulate demand for housing.
Under these circumstances, with growth in the number of contracts concluded, the Company achieved growthin both shareholders’ equity and cash and deposits to record levels at the end of the previous period. As a result,loans decreased significantly and the Company succeeded in adjusting its balance sheet. The Company saw thisas an indicator that it has established a solid financial position from which to embark on renewed growth. In
September 2012, it consequently announced a new medium-term business plan “Takara Leben Next Stage 2016”that describes a number of initiatives, centering on the promotion of solar-powered condominiums—one of theCompany’s strengths—marking a fresh start.
①Performance by business segment
In the second-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2013, sales
from the real estate sales business amounted to ¥31,788 million, up 130.6% 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, renovations business and resale business.
In the real estate rental business, sales totaled ¥707million, down 0.0% on a year-on-year basis. This reflected
rental revenue from condominiums for rent and from office and store space leasing.
In the real estate management business, sales from the management of 31,140 units of residential
condominiums were ¥1,264million, up 26.5% on a year-on-year basis.
Sales from other businesses amounted to ¥800 million, up 26.5% on a year-on-year basis, mainly attributable
to commissions from real estate agency services and revenues from orders for repair work.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥34,560 million, up 112.8% on a year-on-year basis; Operating income amounted to ¥3,088 million,
up 131.2% on a year-on-year basis; Ordinary income amounted to ¥2,827 million, up 210.4% on a year-on-yearbasis; and Net income amounted to ¥2,054 million, up 188.2% on a year-on-year basis;②Contracted ratio status
With regard to sales performance in the second-quarter year-to-date period of the current consolidated fiscal
year, contracts were concluded for 1,543 units, compared with a full-year target of 1,630 units scheduled fordelivery. The contract ratio was at 94.7%, showing a steady growth in the business.
(Contracts signed versus number of units forecast for delivery)
Units scheduled for
Number ofContracted ratiodeliverycontracts signed(%)(units)(units)New built-for-sale
1,630
1,543
94.7
condominium(2) Qualitative Information Pertaining to Consolidated Financial Positiona. Assets, Liabilities and Net Assets-2-

Contracted ratio(same period of theprevious year) (%)
83.0

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

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 ¥70,415 million, an increase of ¥138 million compared with theend of the previous consolidated fiscal year. The increase mainly reflected an increase in cash and deposits inconjunction with delivering new build-for-sale condominium units.
(Current Assets)
Current assets increased ¥1,681 million compared with the end of the previous consolidated fiscal year to¥52,600 million. This mainly reflected an increase in cash and deposits as a result of delivering newbuild-for-sale condominium units.
(Fixed Assets)
Fixed assets decreased ¥1,543 million compared with the end of the previous consolidated fiscal year to¥17,814 million, mainly due to the business assets were sold.
(Current Liabilities)
Current liabilities decreased ¥5,563 million compared with the end of the previous consolidated fiscal year to¥31,809 million, due to factors including the inclusion of the debt repayment.
(Fixed Liabilities)
Fixed liabilities increased ¥4,292 million compared with the end of the previous consolidated fiscal year to¥16,058 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets increased ¥1,408 million compared with the end of the previous consolidated fiscal year to¥22,546 million. The increase was attributed to the net assets for the first quarter was well over capital surplus
and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2012.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.
(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated FinancialStatements
a. Calculation method for fixed-asset depreciation
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement(Changes in Calculation method for fixed-asset depreciation)
Accompanying a revision in the Corporate Tax Act, from the first quarter of the current fiscal year, the Takara
Leben Group has changed the depreciation method for tangible fixed assets acquired after April 1, 2012 to amethod based on the Corporation Tax Act after the revision. Note that this change has not caused a material
impact on profit and loss for the first quarter of the current fiscal year.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of September 30, 2012ASSETS
Current assets:
Cash and deposits

17,394

Notes and accounts receivable, trade20,451

377

373

Real estate held for sale

7,430

3,971

Real estate held for sale in progress

22,86325,434

Other

2,899

2,409

Allowance for doubtful accounts
Total current assets

(46)

(39)

50,91952,600

Fixed assets:
Tangible fixed assets
Buildings and structures (net)

4,537

4,460

Land

13,487

11,95369

138

18,095

16,552453

428

Other (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Other

1,026

1,041

Allowance for doubtful accounts

(217)

(208)

Total investments and other assets

808

833

19,357

17,81470,27770,415

Notes and accounts payable, trade

10,165

10,257

Short-term borrowings

5,494

5,125

Current portion of long-term borrowings

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

15,887

11,432

Income taxes payable

515

657

Reserve

257

252

Other

5,052

4,084

Total current liabilities

37,37231,809Noncurrent liabilities
Long-term borrowings

10,77415,099Reserve

248

199Other743

759

11,765

16,05849,13847,868

Total noncurrent liabilities
Total liabilities-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

(Millions of yen)
As of March 31, 2012

As of September 30, 2012

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,949

4,947

Retained earnings

13,266

15,042

Treasury stock(1,890)(2,265)

Total shareholders’ equity

21,14522,544

(7)

(17)

(7)

(17)

Share warrant－19

Total net assets

21,13822,54670,277

70,415

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

Total liabilities and net assets-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2011

Six Months Ended
September 30, 2012

Net sales

16,23734,560

Cost of sales

11,26927,505Gross profit

4,967

7,054

Selling, general and administrative expenses

3,632

3,966

Operating income (loss)

1,335

3,088

Interest income

32

Dividend income

12

Commissions received

3356

Income from equity method investment

1764

Miscellaneous income

2540

Total Non-Operating income

81

166

Interest expense

488

421

Miscellaneous losses

175

Total Non-Operating expenses

506

427

910

2,827

Reserve for directors' retirement benefits－53

Total extraordinary gains－53

Loss on sales of shares in subsidiaries

49－

Loss on disposal of fixed assets

621

Loss on valuation of investment securities

3－Other－0

Total extraordinary losses

5822

Net income (loss) before income taxes

852

2,858

Income taxes, inhabitant taxes and business taxes

92

644

Non-Operating income:Non-Operating expenses:

Ordinary income (loss)
Extraordinary gains

Extraordinary losses

Income tax adjustments

46

160

Total income and other taxes

139

804

Income (loss) before minority interests

712

2,054

Net income (loss)

712

2,054-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2011
Income (loss) before minority interests

Six Months Ended
September 30, 2012
712

2,054

Net unrealized gains on available-for-sale securities

4(9)Total other comprehensive income

4(9)

717

2,044

717

2,044

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2012

(3) Notes Pertaining to the Going Concern Assumption
The Company had no pertinent matters to report.
(4) Notes on Significant Changes to Shareholders’ Equity(Purchase of treasury stock)
In the Second quarter of the consolidated fiscal year under review, the Company purchased 689,800 shares oftreasury stock at ¥424 million, by resolution of the meeting of the Board of Directors held on May 14, 2012.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing
67,500 shares, which amounted to \49 million, the number and amount of treasury stock at the end of the second
quarter of the fiscal year under review were 3,074,171 shares and \2,265 million, respectively.

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