First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2015 (Japan GAAP)
July 27, 2015

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEOToshiya 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:

August 7, 2015
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2015
(April 1-June 30, 2015)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income%

Ordinary Income

Net Income

Millions of yen%

Millions of yen

Three months ended June 30, 2015

9,199

78.1

(316)

－(532)－(410)－

Three months ended June 30, 2014

5,165

(63.3)(468)－(689)－(403)－

Millions of yen%%

Millions of yen(Note) Comprehensive income: Three months ended June 30, 2015:¥ (390) million (－%) / Three months ended June 30, 2014: ¥(403)
million (－%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Three months ended June 30, 2015

(3.69)－Three months ended June 30, 2014

(3.53)－(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2015

100,518

29,99329.7

As of March 31, 2015

101,738

31,18930.6<Reference> Shareholders’ equity at end of period: June 30, 2015: ¥29,894 million / March 31, 2015: ¥31,111 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2015-

Year Ending March 31, 2016

-

3Q
Yen

Year Ending March 31, 2016 (Forecast)Year-End
Yen

Total

Yen

Yen

2.00

-

4.00

6.00

4.00

-

6.00

10.00

(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, 2016
(April 1, 2015-March 31, 2016)(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

93,80021.9

13,35044.2

12,400

45.2

8,150

42.5

73.11

(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: 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, 2015:

128,000,000 shares

As of March 31, 2015:

128,000,000 sharesb.

Three months ended June 30, 2015:

17,046,507 shares

As of March 31, 2015:

16,531,307 sharesc.

Three months ended June 30, 2015:

111,307,274 shares

Three months ended June 30, 2014:

114,032,358 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 Three Months Ended June 30, 2015

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 .......................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 6
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period ................................................................................................................... 6
Quarterly Consolidated Statements of Comprehensive IncomeFirst-Quarter Year-to-Date Period ................................................................................................................... 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 for the Three Months Ended June 30, 2015

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the first-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2016, sales
from the real estate sales business amounted to ¥6,394 million, up 83.7% on a year-on-year basis. This reflectedsales in the new built-for-sale condominium business, as well as sales in the newly-built detached housingbusiness.
In the real estate rental business, sales totaled ¥1,055 million, up 142.2% 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 38,895 units of residential
condominiums were ¥827 million, up 14.7% on a year-on-year basis.
Sales from other businesses amounted to ¥922 million, up 74.9% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work and revenues from electric power selling in mega-solar business.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amountedto ¥9,199 million, up 78.1% on a year-on-year basis; Operating loss amounted to ¥316 million, Operating loss forthe same period of the previous year was ¥468 million; Ordinary loss amounted to ¥532million, Ordinary loss forthe same period of the previous year was ¥689 million; and Net loss amounted to ¥410 million, Net loss for thesame period of the previous year was ¥403 million.
b. Overview
The built-for-sale condominium business delivered 102 units. In the fiscal year ending March 2016, although
there has been a steady rate of contract signings, because delivery is concentrated in the second half, the majorityof sales and income from those contracts is expected to be recorded in the second half..
c. Contracted ratio status
With regard to sales performance in the first-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,076 units, compared with a full-year target of 1,452 units scheduled for delivery.
The contract ratio was at 74.1% showing a steady growth in the business.
(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)Units scheduled for Number of contracts
Contracted ratiodeliverysigned(%)(units)(units)Three months ended
June 30, 2014
Three months ended
June 30, 2015

1,702

1,169

68.7

1,452

1,076

74.1

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the first-quarter consolidated
accounting period under review, total assets were ¥100,518 million, an decrease of ¥1,220 million compared withthe end of the previous consolidated fiscal year. The decrease mainly reflected a decrease in cash and deposits asa result of Settlement of notes payable.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

(Current Assets)
Current assets decreased ¥3,503 million compared with the end of the previous consolidated fiscal year to¥63,815 million. This mainly reflected a decrease in cash and deposits as a result of Settlement of notes payable.
(Fixed Assets)
Fixed assets increased ¥2,277 million compared with the end of the previous consolidated fiscal year to¥36,678 million, mainly reflected an increase in tangible fixed assets as a result of purchases ofincome-generating properties.
(Current Liabilities)
Current liabilities decreased ¥3,206 million compared with the end of the previous consolidated fiscal year to¥31,594 million, mainly due to decreased notes payable.
(Fixed Liabilities)
Fixed liabilities increased ¥3,182 million compared with the end of the previous consolidated fiscal year to¥38,930 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets decreased ¥1,196 million compared with the end of the previous consolidated fiscal year to¥29,993 million. The decrease was attributed to the net loss for the first quarter and a decrease in capital surplus
due to dividends paid.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 11, 2015.
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 Financial
Statements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement(Application of the Accounting Standard for Business Combination)
The Accounting Standard for Business Combination (ASBJ Statement No. 21, September 13, 2013,
hereinafter referred to as the “Accounting Standard for Business Combination”), the Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter referred to as the“Accounting Standard for Consolidated Financial Statements”), and the Accounting Standard for BusinessDivestitures (ASBJ Statement No. 7, September 13, 2013, hereinafter referred to as the “Accounting Standardfor Business Divestitures”), and others have been applied from this first-quarter consolidated accounting period
under review. Differences caused by changes in the company’s subsidiary holdings that continue to be under its
control are recorded as capital surplus, and expenses related to acquisition are now recorded as expenses for theconsolidated fiscal year in which it occurred. In addition, regarding business combination conducted after thebeginning of this first-quarter consolidated accounting period under review, revisions to the purchase priceallocation following determination of provisional accounting methods are now reflected in the quarterly-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

financial statements of the consolidated fiscal quarter in which the business combination occurred. Also, the net
income and other statements have been changed accordingly, and minority interest has been changed tonon-controlling interest. To reflect these changes, the company has revised the financial statements for theprevious first-quarter year-to-date period and the previous consolidated fiscal year.
The Accounting Standard for Business Combination and other standards are applied in accordance with thetransitional provisions stipulated in Paragraph 58-2 (4) of the Accounting Standard for Business Combination,
Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements, and Paragraph 57-4 (4)of the Accounting Standard for Business Divestitures, and is applied from the beginning of the first-quarter
consolidated accounting period under review and onwards.
This has no effect on profit/loss.

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2015

As of June 30, 2015

ASSETS
Current assets:
Cash and deposits

26,281

Notes and accounts receivable, trade

18,755933

794Real estate held for sale

4,901

3,076

Real estate held for sale in progress

30,44436,473

Costs incurred on uncompleted contracts

244366

Other4,552

4,388

Allowance for doubtful accounts

(37)

(39)

67,31963,815

Buildings and structures (net)

6,870

7,290

Land

18,75820,176

Total current assets
Fixed assets:Tangible fixed assets

Other (net)

4,783

4,827

Total tangible fixed assets

30,41232,294

1,627

1,595

Intangible fixed assets
Investments and other assets
Other

2,368

2,808

Allowance for doubtful accounts

(6)

(19)

Total investments and other assets

2,361

2,788

34,40036,678

Total fixed assets
Deferred assets

1824

101,738

100,518

Notes and accounts payable, trade

10,023

5,482

Short-term borrowings

4,742

8,038

200

200

Current portion of long-term borrowings

10,378

10,284

Income taxes payable

1,928

46

Reserve

415

314

Other

7,111

7,227

Total current liabilities

34,80031,59433,23536,38129

29

Total assets
LIABILITIESCurrent liabilities:

Current portion of long-term bonds

Noncurrent liabilities
Long-term borrowings
Reserve
Liabilities related to retirement benefits

255

270

Other

2,227

2,249

Total noncurrent liabilities

35,74838,93070,54970,524

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

(Millions of yen)
As of March 31, 2015

As of June 30, 2015

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,860

Retained earnings

26,251

25,395

Treasury stock(4,806)(5,231)

Total shareholders’ equity

31,081

29,844

30

50

30

50

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-7798

31,18929,993

101,738

100,518

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015(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, 2014

Three Months Ended
June 30, 2015

Net sales

5,165

9,199

Cost of sales

3,845

7,238

Gross profit

1,319

1,961

Selling, general and administrative expenses

1,788

2,277

Operating income (loss)

(468)

(316)

Interest income

10

Dividend income

22Non-Operating income:Commissions received

69

Miscellaneous income

918

Total Non-Operating income

1931

Interest expense

190216

Losses from equity method investment

3518

Miscellaneous losses

1412

Non-Operating expenses:

Total Non-Operating expenses

240

247

(689)

(532)

Gain on negative goodwill

82－

Total extraordinary gains

82－

Loss on disposal of fixed assets

0－

Total extraordinary losses

0－(607)(532)

Ordinary income (loss)
Extraordinary gains

Extraordinary losses

Net income (loss) before income taxes
Income taxes, inhabitant taxes and business taxes

3644

Income tax adjustments

(241)

(166)

Total income and other taxes

(204)

(121)

Income (loss) before minority interests

(403)

(410)

Net income (loss)

(403)

(410)

-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2014
Income (loss) before minority interests

Three Months EndedJune 30, 2015

(403)

(410)

Net unrealized gains on available-for-sale securities

(0)

20

Total other comprehensive income(0)20(403)

(390)

(403)

(390)

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2015

(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)
In the first quarters of the consolidated fiscal year under review, the Company purchased shares of treasury
stock at ¥452 million, by resolution of the meeting of the Board of Directors held on May 11, 2015.
Additionally, with the disposal of treasury stock for ¥28 million due to the exercise of stock options, theCompany held treasury stock for ¥5,231 million as of June 30, 2015.

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