Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2018 (Japan GAAP)
January 28, 2019

Takara Leben CO., LTD.

Shares listed on:
Security code:
URL:
Representative:
Contacts:

Tokyo Stock Exchange, First Section
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:

February 8, 2019
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2018
(April 1- December 31, 2018)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year changes)
Net Sales

Operating Income

Millions of yen%

Millions of yen

Ordinary Income%Millions of yen

Net Income%Millions of yen%

Nine months ended December 31, 201874,293

63.3

2,662

15.5

1,789

7.4

1,190

27.8

Nine months ended December 31, 2017

45,507(15.3)

2,305(35.1)

1,665(39.7)

930(49.4)(Note) Comprehensive income: Nine months ended December 31, 2018: ¥969 million ((8.7)%) / Nine months ended December 31, 2017:¥1,061 million ((44.0)%)
Net Income per Share

Diluted Net Income
per Share

Yen

Yen

Nine months ended December 31, 2018

10.99

10.93

Nine months ended December 31, 2017

8.61

8.57

(2) Consolidated Financial Position
Total Assets
Millions of yen

Net Assets
Millions of yen

Equity Ratio%

As of December 31, 2018

185,804

42,29822.5

As of March 31, 2018

177,588

42,907

24.1<Reference> Shareholders’ equity at end of period: December 31, 2018: ¥41,854 million / March 31, 2018: ¥42,747 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year-End
Yen

Year Ending March 31, 2018

-

5.00

-

Year Ending March 31, 2019

-

5.00

-

Year Ending March 31, 2019(Forecast)

Total

Yen

Yen

11.00

16.00

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, 2018
(April 1, 2018-March 31, 2019)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%yen

130,000

17.3

10,700(15.1)

9,600(18.6)

6,300(14.5)

58.20(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.

Nine months ended December 31, 2018:

124,000,000 shares

As of March 31, 2018:

124,000,000 sharesb.

Nine months ended December 31, 2018:

15,614,907 shares

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

Nine months ended December 31, 2018:108,298,155 shares Nine months ended December 31, 2017:

108,129,292 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 the Nine Months Ended December 31, 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 ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period .................................................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income
Third-Quarter Year-to-Date Period .................................................................................................................. 8(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 9(Notes on Assumption of Going Concern) ......................................................................................................... 9(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 9-1-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 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 third-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 ¥53,424 million, up 170.9% 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 ¥4,361 million, up 7.6% 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 52,883 units of residential
condominiums were ¥3,341 million, up 12.4% on a year-on-year basis.
In the electric power generation business, sales totaled ¥8,904 million, down 47.1% on a year-on-year basis,
mainly due to revenues from the sale of 5 facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥4,262 million, up 122.8% on a year-on-year basis, mainly
attributable to revenues from management compensation, revenues from contracts for construction works andorders for large-scale repair work.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥74,293 million, up 63.3% on a year-on-year basis; Operating income amounted to ¥2,662 million, up 15.5%
on a year-on-year basis; Ordinary income amounted to ¥1,789 million, up 7.4% on a year-on-year basis; and Net
income amounted to ¥1,190 million, up 27.8% on a year-on-year basis.
b. Contracted ratio status
With regard to sales performance in the third-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,435 units, compared with a full-year target of 1,700 units scheduled for delivery.
The contract ratio was at 84.4%, showing a steady growth in the business.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled
Number ofContracted
signed from April 1for delivery
contracts signed
ratio (%)
December 31, 2018
(units)(units)(units)Nine months ended
December 31, 2017

1,600

1,414

88.4

1,178

Nine months ended
December 31, 2018

1,700

1,435

84.4

1,411

(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 third-quarter consolidated
accounting period under review, total assets were ¥185,804 million, an increase of ¥8,215 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventory inconjunction with new purchases and purchases of business assets.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

(Current Assets)
Current assets increased ¥9,089 million compared with the end of the previous consolidated fiscal year to¥112,021 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets decreased ¥936 million compared with the end of the previous consolidated fiscal year to ¥73,681
million, mainly due to transferring business assets to real estate held for sale.
(Current Liabilities)
Current liabilities increased ¥4,448 million compared with the end of the previous consolidated fiscal year to¥61,325 million, mainly due to increase in short-term borrowings and the reclassification from long-termborrowings to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥4,375 million compared with the end of the previous consolidated fiscal year, to¥82,180 million, mainly due to the increase borrowings with new purchase.
(Net Assets)
Total net assets decreased ¥608 million compared with the end of the previous consolidated fiscal year to¥42,298 million. The decrease was attributed to the net income for the third-quarter was less than distribution ofsurplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2018.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

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

As of December 31, 2018ASSETS
Current assets:
Cash and deposits

29,223

16,194

Notes and accounts receivable, trade

1,539

1,498

Real estate held for sale

20,27925,663

Power generation facilities for sale

4,090

―

Real estate held for sale in progress

44,06856,412

Costs incurred on uncompleted contracts

129912

Other

3,709

11,446

Allowance for doubtful accounts

(110)

(107)

102,931112,021

18,281

13,588

Total current assets
Fixed assets:
Property, plant and equipment
Buildings and structures (net)Land

35,89933,234

Other (net)

12,15916,472

Total property, plant and equipment

66,34063,295

1,265

1,433

Intangible assets
Goodwill
Other
Total intangible assets

543

527

1,808

1,960

6,474

8,434

Investments and other assets
Other
Allowance for doubtful accounts

(6)

(9)

Total investments and other assets

6,468

8,425

74,61873,681

38

101

177,588

185,804

15,786

4,178

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:
Notes and accounts payable, trade
Short-term borrowings

18,38925,179Current portion of long-term borrowings

12,83822,615

Income taxes payable

3,547

134

Reserve

888

671

Other

5,425

8,546

Total current liabilities

56,876

61,32575,01577,330

Fixed liabilities
Long-term borrowings-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

(Millions of yen)
As of March 31, 2018
Bonds payable

As of December 31, 2018
200

200

Reserve

73

88

Liabilities related to retirement benefits

436

493

Other

2,078

4,067

Total fixed liabilities

77,80482,180134,681

143,505

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

(Millions of yen)
As of March 31, 2018

As of December 31, 2018

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,823

4,823

Retained earnings

38,717

38,175

Treasury stock(5,875)(5,824)

Total shareholders’ equity

42,48541,994262(140)

Total accumulated other comprehensive income

262

(140)

Subscription rights to shares

159209Non-controlling interest―

234

42,90742,298177,588

185,804

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

Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2017

Nine Months EndedDecember 31, 2018

Net sales

45,50774,293

Cost of sales

34,32960,231Gross profit

11,177

14,061

Selling, general and administrative expenses

8,871

11,399Operating income

2,305

2,662

Interest income

1076

Non-Operating income:
Dividend income

37

Commissions received

23

44

Profit from equity method investment

61―

Miscellaneous income

103

49

Total Non-Operating income

227

170

Interest expense

787

826

Losses from equity method investment―

77

Miscellaneous losses

79

138

Non-Operating expenses:

Total Non-Operating expenses
Ordinary income

866

1,043

1,665

1,789

―
――

121

Extraordinary income
Compensation damages received
Gain on sales of investment securities
Total Extraordinary income

191
312

Extraordinary losses
Loss on disposal of non-current assets

20―

Loss from compensation for complete work

72―

Office transfer expenses

93

14

Total extraordinary losses

186

14

Net income before income taxes

1,478

2,087

Income taxes, inhabitant taxes and business taxes

919

452

Income tax adjustments

(371)

263

Total income and other taxes

547

716

Net income

930

1,371

Profit attributable to non-controlling interests―

181

Profit attributable to owners of parent

930

1,190-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2018

Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period(Millions of yen)

Nine Months Ended
December 31, 2017
Net income

Nine Months Ended
December 31, 2018
930

1,371

Net unrealized gains on available-for-sale securities

130(402)

Total other comprehensive income

130(402)

1,061

969

1,061

787

―181

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent
Comprehensive income attributable to non-controllinginterests-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 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-