Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2011 (Japan GAAP)May 13, 2011
Takara Leben CO., LTD
Shares listed on the First Section of the Tokyo Stock Exchange
Security Code: 8897
URL http://www.leben.co.jp
Representative: (Title) President and Representative Director; (Name) Yoshio Murayama
Contact: (Title) Executive Officer and Chief of Business Planning Office; (Name) Toshiya Kitagawa TEL +81-3-5324-8720
Scheduled date of Regular General Meeting of Shareholders: June 21, 2011
Scheduled date of dividend payment commencement: June 22, 2011
Scheduled date of Release of Annual Report (Yuka Shoken Hokoku-sho): June 21, 2011
Supplementary documents for financial results: Yes
Financial results briefing: Yes (for analysts and institutional investors)(Amounts rounded down to millions of yen)

1. Consolidated financial results for the fiscal year ended March 31, 2011 (April 1, 2010 to March 31, 2011)(1) Operating Results(Percentages show year-on-year changes)

Year ended March 31, 2011
Year ended March 31, 2010

Net sales
Operating income
Ordinary income
Net income
Million yen% Million yen% Million yen% Million yen%
46,884
(9.8)
6,757
110.3
5,525
132.3
5,083
126.5
51,955
(9.9)
3,212
―
2,378
―
2,244
―

Note: Comprehensive income: Fiscal year ended March 31, 2011 (¥5,086 million)
Fiscal year ended March 31, 2010 (¥2,230 million)
Net income
per share
Yen
Year ended March 31, 2011
Year ended March 31, 2010

168.14135.56

Diluted net
incomeper share
Yen――

Net income to
Recurring profit
shareholders’toequitytotal assets
%
%
37.6
29.8

Operating profit
tonet sales
%

9.6
3.8

14.4
6.2

Reference: Equity in net income of affiliates:Fiscal year ended March 31, 2011 (¥19 million)
Fiscal year ended March 31, 2010 (¥8 million)(2) Consolidated Financial Position
Total assets
Year ended March 31, 2011
Year ended March 31, 2010

Total net assets

Million yen
61,05454,540Equity ratio

Million yen
18,361
8,651

Net assets per share
%
30.1
15.9

%
566.66522.51

Note: Shareholders’ equity: Fiscal year ended March 31, 2011: (¥ 18,361million)
Fiscal year ended March 31, 2010: (¥ 8,651 million)(3) Consolidated Cash Flow
Cash flows fromoperating activities

Year ended March 31, 2011
Year ended March 31, 2010

Cash flows frominvesting activities
Million yen(1,032)(451)

Million yen
7,897
12,218Cash flows fromfinancing activities
Million yen(1,191)(11,783)

Cash and cash
equivalents at
end of the fiscal year
Million yen
9,391
3,717

2. Dividends(Record date)

Total
Dividend
Net assets-toAnnual Cash Dividends per Sharedividends
payoutratio
dividend
ratio
YearTotal
Q1
Q2
Q3(annual)(consolidated)(consolidated)
end
annualYen
Yen Million yen
Yen
%
%
Yen
Yen
2.00
33
0.00
2.00
1.5
0.4
―
―
291
3.00
6.00
9.00
5.4
2.2
―
―

Year ended March 31, 2010
Year ended March 31, 2011
Year ending March 31, 2012
(forecast)
―
4.00
―
9.00
13.00
10.3
Note: Term-end dividends for the fiscal year ending March 31, 2012 (forecast) include ordinary dividends of ¥7.00 andcommemorative dividends of ¥2.00.

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3. Consolidated results forecast for fiscal year ending March 31, 2012 (From April 1, 2011 to March 31, 2012)(Percentage figures for the full fiscal year represent the change from the previous fiscal year,
while percentage figures for the interim period represent the change from the previous interim period.)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Million yen% Million yen% Million yen% Million yen%
Yen
Interim
―
―
―
―
―
―
―
―
―
Full-year
60,000
28.0
6,670
(1.3)
5,580
1.0
4,100
(19.4)
126.53
Note: Forecasts for the six months ending September 30, 2011 are omitted, since Takara Leben manages its results on an annual
basis.

4. Other(1) Changes in the status of material subsidiaries during the current fiscal year (changes in the status of specificsubsidiaries as a result of changes in the scope of consolidation) None.
Newly consolidated companies (--) Newly excluded companies (--)
(2) Changes in accounting principles, procedures, presentations, etc.
(a) Changes accompanying revision of accounting standards: Yes(b) Changes other than those in (a): Yes(Note) For further details, please refer to “Changes in Basis of Presenting Consolidated Financial Statement Preparation” onpage 28.

(3) Number of outstanding shares (common stock)(a) Outstanding shares at fiscal year end (including treasury stock)(b) Treasury stock at fiscal year end(c) Average number of shares outstanding during the term
(a)
(b)
(c)

Fiscal year ended March 31
2011 year ended March 31 2011
FiscalFiscal year ended March 31

33,386,070 Fiscal year ended March 31
2010 year ended March 31
982,771 Fiscal
30,236,227 Fiscal
2010 year ended March 31(Shares)
17,540,333
982,771
16,557,647(Reference) Non-consolidated Earnings Overview
1. Non-consolidated Financial Results for Year Ended March 31, 2011 (April 1, 2010 to March 31, 2011)(1) Non-consolidated Operating Results(The percentage figures shown in the net sales, operating income, ordinary
income, and net income columns represent year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Million yen% Million yen% Million yen% Million yen%
Year Ended March 31, 2011
43,071(11.5)
6,532
140.1
5,331
180.8
5,003
156.5
Year Ended March 31, 2010
48,691
(7.1)
2,720
―
1,898
―
1,950
―
Net income per share
Year Ended March 31, 2011
Year Ended March 31, 2010

Yen
165.48117.81

Diluted net income per share
Yen――(2) Non-consolidated Financial Position
Total assets
Total net assets
Equity ratio
Million yen
Million yen%
Year Ended March 31, 2011
58,85017,05329.0
Year Ended March 31, 2010
52,154
7,423
14.2(Reference) Shareholders’ equity: Fiscal year ended March 31, 2011: ¥ 17,053 million
Fiscal year ended March 31, 2010: ¥ 7,423 million

Net assets per shareYen
526.29448.36

2. Non-consolidated results forecasts for fiscal year ending March 31, 2012 (From April 1, 2011 to March 31, 2012)(Percentage figures for the full fiscal year represent the change from the previous fiscal year,
while percentage figures for the interim period represent the change from the previous interim period.)
Net income
Net sales
Operating income
Ordinary income
Net income
per share
Million yen% Million yen% Million yen% Million yen%
Yen―
Interim
―
―
―
―
―
―
―
―
Full-year
56,240
30.6
6,450
(1.3)
5,370
0.7
4,000
(20.1)
123.44
Note: Forecasts for the six months ending September 30, 2011 are omitted, since Takara Leben manages its results on an annual
basis.
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Application of Audit ProceduresThis brief report of financial results is not subject to the audit procedures under the Financial Instruments and Exchange Law, andthe audit of the financial statements has not been completed at the time of its disclosure.

* Explanation of the proper use of these earnings forecasts and other matters:
1.

The above forecasts are estimated based on information available at the time of the release of this report. Actual results
may differ from these forecasts due to various factors in the future.

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Accompanying Materials Contents
1. Operating Performance ................................................................................................................................................ 2(1) Analysis of Operating Results .................................................................................................................................... 2(2) Analysis of Financial Position .................................................................................................................................... 4(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years .............................................. 6(4) Business Risks ........................................................................................................................................................... 6
2. The Takara Leben Group ........................................................................................................................................... 8
3. Management Policy ..................................................................................................................................................... 8(1) Basic Management Policy .......................................................................................................................................... 8(2) Medium and Long-Term Business Strategy ............................................................................................................... 9(3) Issues to be Addressed .............................................................................................................................................. 11
4. Consolidated Financial Statements ............................................................................................................................. 13(1) Consolidated Balance Sheets .................................................................................................................................... 13(2) Consolidated Statements of Income and Comprehensive Income ............................................................................ 15
Consolidated Statements of Income.......................................................................................................................... 15
Consolidated Statements of Comprehensive Income ................................................................................................ 17(3) Consolidated Statements of Changes in Shareholders' Equity .................................................................................. 18(4) Consolidated Statements of Cash Flows ................................................................................................................... 20(5) Notes Regarding to Assumptions for the Going Concern ......................................................................................... 22(6) Basis of Presenting Consolidated Financial Statements ........................................................................................... 23(7) Changes in Basis of Presenting Consolidated Financial Statements......................................................................... 27(8) Changes in Presentation ............................................................................................................................................ 27(9) Additional information ............................................................................................................................................. 27(10) Notes on Consolidated Financial Statements .......................................................................................................... 28(Consolidated Balance Sheets)............................................................................................................................... 28(Consolidated Statements of Income) .................................................................................................................... 29(Consolidated Statements of Comprehensive Income) .......................................................................................... 31(Consolidated Statements of Changes in Shareholders' Equity) ............................................................................ 31(Consolidated Statements of Cash Flows) ............................................................................................................. 33(Lease and Other Real Estate Transactions) ......................................................................................................... 34(Segment Information) ........................................................................................................................................... 35(Special Purpose Companies Subject to Disclosure) ............................................................................................. 39(Per Share Information) ......................................................................................................................................... 40(Important Subsequent Events) .............................................................................................................................. 41(Omissions) ............................................................................................................................................................ 42
5. Non-Consolidated Financial Statements .................................................................................................................... 43(1) Non-Consolidated Balance Sheets ............................................................................................................................ 43(2) Non-Consolidated Statements of Income .................................................................................................................... 46(3) Non-Consolidated Statements of Changes in Shareholders' Equity ............................................................................ 49(4) Notes Regarding to Assumptions for the Going Concern ......................................................................................... 52(5) Significant Accounting Policies................................................................................................................................ 53(6) Changes in Significant Accounting Policies ............................................................................................................. 56(7) Changes in Presentation ............................................................................................................................................ 56(8) Notes on Non-Consolidated Financial Statements .................................................................................................... 57(Balance Sheets) .................................................................................................................................................... 57(Statements of Income) .......................................................................................................................................... 58(Changes in Shareholders' Equity) ......................................................................................................................... 60(Per Share Information) ......................................................................................................................................... 60(Important Subsequent Events) .............................................................................................................................. 61
6. Others ......................................................................................................................................................................... 63(1) Change of Executives ............................................................................................................................................... 63(2) Production, Orders Received and Sales .................................................................................................................... 63-1-

1. Operating Results(1) Analysis of operating Results
Overview
During the consolidated fiscal year under review, there were signs of recovery in the Japanese economy,
fueled by a rebound in the global economy and political stimulation measures. However, the outlook remained
blurred by factors such as continued weakness in the labor market. Economic uncertainty was further aggravatedby the 2011 off the Pacific coast of Tohoku Earthquake which struck on March 11.
Amid this environment, the real estate industry embarked on a recovery course, with new condominium starts
showing YoY growth, helped by government measures and the fact that inventories had peaked.
Under these circumstances, the Company's business activities stayed focused on its customers as its ultimate
supporters. With its 'Leben Heim' series of in-house planned new condominiums as its main brand, it remainedcommitted to its basic concept of 'ideal, affordable housing that anyone can buy with confidence' as well as its
corporate vision of 'thinking of happiness; making happiness' and its corporate mission of 'creating together witheager minds, sincere efforts and ample talent.'
As a result, with the aid of aggressive site acquisition, fund raising via a rights issue, and the resumption ofpending projects, the Company found it had been able to establish the foundation for renewed growth, and drafted
a medium-term business plan (Takara Leben Building Action 2011) which extends up the fiscal year ending
March 31, 2013.
(i) Operating Results during the Fiscal Yeara) Performance Review
At the parent level, Takara Leben Co., Ltd., made collections from all units in a total of nine buildings,
including a large project in Misato City, Saitama Prefecture, and concluded contracts for all units of elevenbuildings. On the back of this solid performance, gross profit margin in the built-for-sale condominium business
improved substantially from the previous year to 23.9%.
Also, the Company occupied the top position in condominium supply for Saitama Prefecture in 2010.
In the detached housing business, the ongoing shift toward in-house execution resulted in a sharp rise in grossprofit margin to 30.8%. Aiming at an increase in the number of units supplied, the Company intends to strengthen
its supply setup.
In the renovation and resale business, the Company made collections from all units in three condominiums.
This firm performance testified to the superiority of the short-term collection business. The Company willcontinue to promote purchases at appropriate prices, in line with its market assessment, to supplement its built-forsale condominium operations.
In the real estate rental operations, sales were essentially in line with the business plan.
As a consequence, non-consolidated sales totaled ¥43,071 million, operating income ¥6,532 million, ordinary
income ¥5,331 million, and net income ¥5,003 million.
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 25,651,
ahead of the target level of 25,000. Noteworthy, of the increase achieved during the fiscal year, 56.0% was
accounted for by units entrusted from other companies, as efforts to secure other companies' properties paid off.
Peripheral operations also fared well, including renovation, merchandise sales, and subcontract construction work.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
At Takara Live Net Co., Ltd., outside consignment fell short of the target, but the company was profitable.
As Partners Co., Ltd., added two new nursing care facilities to its existing seven facilities, which brought the
total number to nine. Capacity utilization remained high at 91.1% for the existing seven facilities, and 80.5% for
all nine facilities (including the new ones).
As a result of the above operations, overall sales for the entire Takara Leben Group totaled ¥46,884 million,
operating income ¥6,757 million, ordinary income ¥5,525 million, and net income ¥5,083 million.
b) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥41,948 million, down 11.7% from the previous
fiscal year, including net sales of ¥35,503 million for 1,089 condominium units and net sales of ¥6,445 million
from sales of detached houses, renewal business and reselling business.
<Real Estate Rental Business>
Net sales for real estate rental business amounted to ¥1,426 million, up 10.7% from the previous fiscal year,
including leasing revenues from the rental of condominium units, offices and store space.
<Management Services Business>
Management fees from 25,651 units under management produced real estate management sales of ¥2,138
million (up 8.5% YoY).
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<Other Business>
Revenues from other businesses amounted to ¥1,370 million, up 17.5% from the previous fiscal year,
including revenues from construction work and real estate sales agency commissions.
c) Consolidated Performance by Performance Indicators<Net Sales>
Net sales amounted to ¥ 46,884 million, down 9.8% from the previous fiscal year, reflecting ¥ 41,948 million
in net sales in the real estate sales business from the sale of 1,089 built-for-sale condominium units as well as thesale of detached houses and other renewal and reselling business; ¥ 1,426 million in net sales from the rental feesof rental condominium units, offices and store space; ¥2,138 million in net sales from the real estate management
operations, comprising management fees from 25,651 units under management; and ¥1,370 million, in net sales
from the other business, including revenues from construction work and real estate sales agency commissions.
<Cost of Sales>
Reflecting, among other factors, the recovery in profitability in the real estate sales business, cost of sales
contracted 20.6% YoY to ¥33,058 million.
<Selling and General Administrative Expenses>
Reflecting continued cost-cutting efforts, selling and general administrative expenses contracted 0.3% YoY to¥7,069 million.
<Non-Operating Income and Expenses>
Non-operating income declined 45.1% YoY to ¥170 million, despite focusing on commission income.
Non-operating expenses rose 22.6% YoY to ¥1,402 million, owing to interest expenses and share issuancecosts related to the rights issue.
<Extraordinary Income and Loss>
Extraordinary income totaled ¥79 million (down 75.2% YoY), despite accounting income statement
adjustment gains from the previous fiscal year.
Extraordinary loss totaled ¥ 309 million, down 64.7% from the previous fiscal year, mainly reflecting posted
impairment loss.
As a result, consolidated sales for the Group totaled ¥46,884 million, down 9.8% from the previous fiscal year.
Operating income totaled ¥6,757 million, up 110.3% from the previous fiscal year; ordinary income totaled¥5,525 million up 132.3% from the previous fiscal year; and net income totaled ¥5,083 million, up 126.5% fromthe previous fiscal year.

(ii) Outlook for Next Fiscal Year (for the year ending March 31, 2012)
Amid signs of recovery in the real estate industry, the Company was fast to adjust its course and is making thetransition to a new stage. Always committed to its basic concept of 'ideal, affordable housing that anyone can buy
with confidence,' it has drafted a business plan for next fiscal year (ending March 31, 2012) as outlined below.
In the real estate sales business, the Company expects to deliver a total of 1,441 built-for-sale condominiums.
Also, thanks to the full-fledged supply, since the previous fiscal year, of units constructed in-house, it expects
to deliver 233 detached houses.
In the renovation and resale business, the Company will continue to promote purchases at appropriate prices,in line with its market assessment, to supplement its built-for-sale condominium operations.
In the real estate rental business, it intends to carry out purchases and disposals in order to raise asset value
and improve its stable stock business.
In the real estate management business, it has set a target for management contracts, of 28,995 units, byincreasing consignments from other companies and further expanding peripheral operations.
As a consequence, the Company's performance projections for the fiscal year ending March 31, 2012 are as
follows:
Net sales¥60,000 million
Operating income ¥6,670 million
Ordinary income¥5,580 billion(up 28.0% YoY)
(down 1.3% YoY)
(up 1.0% YoY)

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Net income¥ 4,100 billion (down 19.4% YoY)

Built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery in the fiscal year
ending March 31, 2012
Scheduled for delivery
Of which, number ofContracted ratio (%)(units)contracts signed (units)
As of March 31, 2011
1,441
644
44.7
Sales agent business: Contracts signed versus number of units scheduled for delivery in the fiscal year ending
March 31, 2012
Scheduled for delivery
Of which, number ofContracted ratio (%)(units)contracts signed (units)
As of March 31, 2011
62
32
51.6
(iii)Progress in Implementing the Medium-Term Management Plan, Etc.
The real estate market was relatively buoyant until around 2007. Thereafter, however, the sub-prime loan
problem in the US started to negatively affect it and the Lehman Shock sparked financial concerns around theworld. With global financial markets in turmoil, the supply and demand balance for new housing construction,
led by condominiums, collapsed and the real estate market stalled.
In the fiscal year ended March 31, 2009, the Company suffered a large deficit, mostly because of loss on
valuation of inventories. Following this experience, however, it implemented a variety of measures to stage arecovery. As a result, with the aid of aggressive site acquisition, fund raising via a rights issue, and theresumption of pending projects, the Company found it had been able to establish the foundation for renewed
growth, and in August 2010 it drafted a medium-term business plan (Takara Leben Building Action 2011) which
extends up the fiscal year ending March 31, 2013.
Meanwhile, in the real estate market new condominium starts resumed YoY growth. The Company also saw
brisk contracts in excess of its expectations, and it raised its forecasts three times.
Based on its new medium-term business plan, the Company will continue to establish a value chain, to build arock-solid business foundation, and to make determined sales efforts, in order to maximize corporate value.

(iv) Achievement of Targeted Operating Index
The Company suffered a large loss in the fiscal year ended March 31, 2009, which depleted much of its
equity. In the wake of this, conventional management benchmarks such as ROE and ROA could no longer beused for consistent evaluation. Rather, management currently focuses on rebuilding equity.
During the fiscal year under review, performance was bolstered by successful fund raising with the aid of arights issue and a favorable contract situation. This helped the equity ratio top the target level of 29.2% set in the
new medium-term business plan, and rise to 30.1%.

(2) Analysis of Financial Position
With regard to the assets, liabilities, and net assets of the Group at the end of the consolidated fiscal year
under review, total assets amounted to ¥61,054 million, an increase of ¥6,513 million from the end of theprevious consolidated fiscal year. The increase mainly resulted from larger cash and deposits, and an increase ininventories, related to new purchases.
(i) Analyses of Financial Position Related to Assets, Liabilities and Net Assetsa) Current Assets

Current assets increased ¥9,043 million from the end of the previous consolidated fiscal year to ¥41,928
million. This mainly reflected an increase in cash and deposits, and an increase in inventories as a result of newpurchases.
b) Non Current Assets

Reflecting the transfer of business assets to inventories, Non Current assets decreased ¥2,529 million fromthe end of the previous consolidated fiscal year to ¥19,126 million.
c) Current Liabilities

Current liabilities totaled ¥28,151 million, decreased ¥1,082 million from the end of the previous fiscal year
as a result of the repayment of debt.
-4-d) Non Current Liabilities

Non Current liabilities decreased ¥2,114 million from the end of the previous consolidated fiscal year to¥14,541 million, due to the redemption of long-term debt.
e) Net Assets

Total net assets increased ¥9,710 million from the end of the previous consolidated fiscal year to ¥18,361
million, due to the issuance of new shares resulting from the rights issue, and net income posted.

(ii)Cash Flow Analysis
Cash and cash equivalents (hereinafter, the “funds”) at the end of the current consolidated fiscal year, totaled¥ 9,391million increased ¥5,673 million from the end of the previous fiscal year.
a) Cash Flows from Operating Activities

Net cash provided from operating activities was ¥7,897 million (versus ¥12,218 million in the previous
consolidated fiscal year). This mainly reflected net income before tax adjustments and an increase in advances
received, resulting from contract conclusions.
b) Cash Flows from Investing Activities

Cash flows from investing activities decreased ¥1,032 million (comparing against ¥451 million decrease in
the previous fiscal year). This is primarily the result of the acquisition of tangible Non Current assets.
c) Cash flows from Financing Activities

Cash flows from financing activities decreased ¥1,191 million (comparing against ¥11,783 million decreasein the previous fiscal year.) This is primarily the result of the repayment of debt.

(iii)

Cash Flow Indicators
FY2009
9.0
3.9
7.8
5.5

Shareholders’ Equity Ratio (%)
Shareholders’ Equity Ratio at market value (%)
Debt Repayment from Cash Flow (Years)
Interest Coverage Ratio (Times)

FY2010
15.9
12.7
3.3
11.2

FY2011
30.1
25.9
4.3
6.8

Shareholders’ Equity ratio: shareholders’ equity / total assets
Shareholders’ Equity Ratio at market value (%): Equity Market Capitalization / Total Assets
Debt Repayment from Cash Flow (Years): Interest-Bearing Debt / Operating Cash Flow
Interest Coverage Ratio (Times): Operating Cash Flow / Interest Expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt is defined to include all debt recorded on the consolidated balance sheet on whichinterest is paid.

-5-(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to the shareholder is one of the most important tasks for the Company. And the Company
has the fundamental policy of striving to sustain stable levels of dividends at levels deemed appropriate based on
due consideration of corporate performance trends and of the amount of internally retained funds required to
expand and strengthen business operations.
Specifically, the plans for dividends are set as follows:Year Ended March 31,
2011 (forecast)

1st half dividends

Year-end dividends

Total

¥3.0

¥6.0

¥9.0

1st half dividends

Year-end dividends

Total

¥4.0

¥9.0 (note)¥13.0

Ordinary dividends

Year Ending March 31,
2012 (forecast)Ordinary dividends

Note: Term-end dividends for the fiscal year ending March 31, 2012 (forecast) include
ordinary dividends of ¥7.00 and commemorative dividends of ¥2.00.

With regard to dividends, the Company does not exclusively base its policy on a specific benchmark (payout
ratio), but uses a comprehensive assessment, with an aim to make the Company attractive for long-term
investment by numerous shareholders.
(4) Business Risks
The following items present potential risk for the operating results, share price, financial position, etc. of theCompany Group.
Forward-looking items hereby is the assessment by the Group as of the end of the current consolidated fiscal
year.
a) Earthquakes and other natural disasters
Earthquakes and other natural disasters may directly damage the Company or the construction companies it
uses for the execution, or may make it difficult for these construction companies to procure building materials.
Any of these events may delay construction work, as well as hamper sales and collection activity, and thus
impact the performance and financial position of the Group.
b) Legal Regulations
The business of the Group is subject to the National Land Use Planning Act, Building Lots and Buildings
Transaction Business Act, Building Standards Act, City Planning Act, Money lending Control Act, Act on
Advancement of Proper Condominium Management, Long-Term Care Insurance Act and other applicablenational laws as well as applicable ordinances, etc., of the various local governments. Should these laws,
ordinances, etc., be revised or new ones created, this will create new burdens for the Group and may potentially
impact its performance and business development.
c) Impact of Home Loans
The Group makes use of home loans from home financing support organizations and financial institutions forthe sale of condominiums, etc.; however, when increased interest, changed financial conditions or otherunfavorable circumstances arise, this may potentially impact the performance and financial situation of theGroup.
d) Degree of Dependency on Borrowing
From the purchase of land to the completion of construction for condominiums, etc., development funds areprocured primarily through loans from financial institutions, and the percentage of interest-bearing debt
accounting for total assets is 56.3% at the end of the current consolidated fiscal year. Thus, factors such as
interest-rate changes, worsened financial conditions, or lowered creditworthiness for the Group can restrict fundprocurement and may potentially impact the performance and financial situation of the Group.
e)Home buyer sentiment

The Company's core business, built-for-sale condominiums, tends to be swayed by changes in home buyer
sentiment. Home buyer sentiment is affected by factors such as the overall economy, residential tax regulations,consumption taxes, land prices, and interest rates. A pronounced deterioration in home buyer sentiment may
impact the performance and financial position of the Group.
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f)

Impact of Supply Trends

Sales of newly built condominiums which are a core Group business are greatly affected by supply trends,
such as land procurement cost and subcontracting cost fluctuations and interest-rate changes. For these reasons,conditions which impact trends amongst suppliers may potentially impact the performance and financial situationof the Group.
g) Opposition to Condominium Construction from Surrounding Residents
When constructing condominiums, the Group carefully considers the environment surrounding theconstruction location; reviews relevant national laws and local ordinances when creating a development plan; andholds information sessions for local residents prior to the start of construction in order to facilitate understanding.
However, due to concerns such as construction noise, sunlight block or environmental disruption, opposition to
construction by surrounding residents sometimes occurs; and as a result, the plan changes, construction delays,
and additional costs occurs, etc., which may potentially impact the performance and financial situation of theGroup.
h) Personal Information
The Group handles a large amount of personal information in the course of selling and managing
condominiums, etc. Extreme care is taken in collecting and administering this information, evidenced bymeasures such as the introduction of software designed to prevent the leaking of personal information, thecreation and maintenance of rules for collecting and administering personal information, the creation of manuals
aimed at employees, and the hosting of employee training seminars; however, if a leak of personal information
occurred, it may potentially impact the performance and financial situation of the Group.
i)

Possibility of Lawsuits
From the procurement of land for condominiums, etc., to the completion of construction, the Group takes
careful considerations from a variety of perspectives; however, lawsuits maybe brought against the Group as aresult of building defects, soil contamination, etc., and as a result, the building plans may have to be changed.
Such cases may potentially impact the performance and financial situation of the Group.
j)Impact of Competition

The Group sells real estate in and around the Tokyo Metropolitan Area, and this area contains a great deal ofcompetition which can lead to excessive cost competition that can have an effect on marketing or can make it
difficult to sell at the price anticipated by the Company. Such situations may potentially impact the performanceand financial situation of the Groupk) Construction Costs
The Group entrusts the construction of its condominiums to building contractors. However, increases in building
material costs and labor costs may raise building contract costs, thus depressing profitability. This may impact theperformance and financial position of the Group.
l)Construction Companies
A construction company entrusted with the construction work may become insolvent. This may delay
construction work or force the construction company to default on its contract. Any of these events, as well as
failure by the construction company to provide the due compensation, may affect the performance and financial
position of the Group.
Moreover, a natural disaster may directly damage a construction company or make it difficult for the company
to procure building materials. This may delay progress of the construction, and thus affect the performance andfinancial position of the Group, especially if delivery due in March is delayed to the following fiscal year.

-7-2. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, four subsidiaries and one affiliate, is developing realestate business in a region centered on Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in the planning, development, and marketing of Leben Heim-series
condominium units, detached houses, and other real properties.
Consolidated subsidiary Leben Community Co., Ltd., primarily engages in comprehensive management
services for condominium buildings.
Consolidated subsidiary TAFUKO Co., Ltd., primarily provides bridge financing services.
Consolidated subsidiary Takara Live Net Co., Ltd., primarily provides real estate sales agent services andmarketing services for previously owned properties.
Consolidated subsidiary Marunouchi Servicer Co., Ltd., primarily engages in collection on claims pursuant to
the Act on Special Measures concerning the Claims Servicing Business.
Affiliate company (equity method) As Partners Co., Ltd., primarily operates residential facilities with nursing
capabilities for elderly people.
(1) Real estate sales business

The Company undertakes the planning, development, and marketing of Leben Heim-series condominium
units, detached houses, and other real properties in the greater Tokyo metropolitan area.
(2) Real estate rental business

The Company owns rental apartment and rental condominium units, primarily in the greater Tokyo
metropolitan area, as well as other rental store and rental office properties, and it conducts rental business withthese properties.
(3) Management services business

Consolidated subsidiary Leben Community Co., Ltd., provides a comprehensive range of management
services for condominium buildings.
(4) Financial agency business

Consolidated subsidiary TAFUKO Co., Ltd., provides bridge financing services and other commissionbased businesses(5) Claims collection business

Consolidated subsidiary Marunouchi Servicer Co., Ltd., engages in collection on claims pursuant to the
Act on Special Measures concerning the Claims Servicing Business.
(6) Nursing Care Business

Affiliate company (equity method) As Partners Co., Ltd., operates residential facilities with nursing
capabilities for elderly people.
(7) Other business

The Group also engages in other businesses such as commissioned real estate marketing agency business.
The Group’s businesses are organized as follows.

3. Management Policy(1) Basic Management Policy
The following are the Company’s corporate vision and corporate mission.

-8-

Takara Leben’s Corporate Vision: The Way We Should Be

Thinking of Happiness. Making Happiness.
As a builder, we take your happiness more seriously thananyone else; when we build for you, we build to make yourliving dreams come true.
When we develop, we consider the well-being of thecommunity more deeply than anyone else,
the world gets new towns where all people live in comfort.
To build a happy future, we plan and work more fruitfully
than anyone else; we propose earth-friendly, sustainable
development for the environment.
Thinking of Happiness. Making Happiness.
That’s Takara Leben’s corporate vision.

Takara Leben’s Corporate Mission: The Beliefs We Value

Creating Together
with Eager Minds
Putting our heads together with customers, eagerly,
to think up and create new market values.

with Sincere Efforts
Prizing the sincere efforts of our partners,
for the comfort and security of living together.

with Ample TalentPrizing the talents of every corporate member,
for the rich and seamless development of a shared tomorrow.
(2) Medium and Long-Term Business Strategy<Overview of Strategies>
As a result of various measures following the Lehman Shock, the Company found it had been able to establish thefoundation for recovery and has drafted a medium-term business plan (Takara Leben Building Action 2011) which
extends up the fiscal year ending March 31, 2013.
The medium-term business plan features 'revised tactics and strategies for renewed growth,' and the Company isconfident that successful implementation of the plan will lead it to a new growth stage.
<Specific Strategies>
A. Overview


Utilizing its competitive superiority in its core areas
The Company will make use of its unique superiority, by strengthening its procurement, merchandising,sales, and financing strategies.
Establishment of a rock-solid business foundation
The Company will establish a solid business base in its core operations, built-for-sale condominiums, aswell as a firm position in short-term collection, as a supplementary business.
Steady business cycle and financing strategy
The Company will carefully select sites for procurement and base its business cycle on steady sales andcollection plans, as well as use a diversified financing strategy, rather than exclusively relying on indirect
financing.

B. Individual Strategies(i) Product Strategiesa) Area Strategies

There is no change to the Company's basic emphasis on its core areas, Saitama Prefecture and the Joto,
Johoku, and Tama areas in Tokyo. However, within these areas the Company will further enhance its-9-competitive position by using stringent site selection. In addition, it will focus on areas that are favored bycustomers within narrow, medium, and wide ranges, while maintaining the supply and demand balance in theseareas.
b) Product Scale Strategies

As the market slowly makes its recovery, keeping consumer interest in mind, it is important to analyze
target areas in order to find the optimum property size, and careful product planning and risk diversification isneeded in order to ensure that the pricing, planning and scale of products will allows for the complete sale ofcompleted stock.
c) Price Strategies

By keeping from being misled by market fluctuations and by staying focused on the marketing concept of“ideal, affordable housing that anyone can buy with confidence” which always catch first-time buyers’ attention,
the Company will provide ideal, affordable housing which will lead to stable corporate growth. It is
important that sale prices be set at a level which allows for properties to be sold within an appropriate
timeframe at a fair market price.
(ii) Sales Strategies
The Company will carry out product planning and sales which utilize meticulous customer service tobuild up a sense of familiarity, trust and lasting relationship with the customers.
a) Sales Systems

While the market shows signs of recovery and the Group begins to demonstrate a return to its usual
market strength, it is still necessary to foster an environment which encourages sales superiority through thereinvigoration of synergy between divisions; enhances the standard for balancing personnel placement foreach property against sales speed; fosters sufficient marketing strength; and raises the level of customer
loyalty.
b) Internet Marketing

Because of the introduction of a selection system for use in Internet marketing which allows customers tofind the exact information they seek, the number of requests for materials has increased 14.3% over theprevious fiscal year, and the number of visitors to model rooms has increased 41.9% over the previous fiscal
year. As a result, the contract ratio achieved via the homepage increased 46.8%, making the number ofcontracts achieved via Internet marketing 62.4% of the total number of contracts, demonstrating theconsiderable strength of Internet marketing.
c) Leben Club

During the fiscal year under review, membership in the Leben Club increased by 15,250 people (33.0%) fromthe previous fiscal year to 61,395 members, as the Company took measures such as renewing the homepage. This
greatly increased recognition of the Company. The Company will continue to provide club members with timely
information on a members-only page, as a means to foster support for the Company's properties.
d) Corporate Partnerships (Corporate Intranet Advertising)

The Company is involved in corporate partnerships with 157 groups comprising 4.557 million people, andfor the current fiscal year there were 197 visits from corporate partner, of which 65 visits resulted in a contract,
demonstrating that ample strength continues to be found in the Group’s corporate partnerships. The Company
will continue to explore new information services matching its tie-up partners' needs, to achieve increase
recognition.
e) Construction Planning Strategy

The Company will incorporate feedback from its customers into its construction strategy, to provide
increasingly pleasant residential environments.
Luic Project, a standard feature which focuses on water as an essential part of life, offers the 'Takara-no-Mizu'
water purifying system and, a first in Japan, a built-in micro-bubble bath system for home use ('Takara-noMicrobubble'). Both systems are widely acclaimed.
Also, a novelty in the metropolitan region, the Company started sales of in-house planned condominiums
equipped with individual PV systems, which allow owners to sell electricity separately. All units were sold within
two months after the launch.
In the future, the Company is also planning built-for-sale condominiums equipped with power storage
systems, to better cater to its customers' needs.

- 10 -

C. Product Diversification Strategy(i) Detached Houses Strategy
The Company has continued to develop its detached housing sales business, and it aims for further
improvements in competitive prices and has begun the sales business for Company-constructed units in this fiscal
year. By providing high quality housing at low prices, the Company remains consistent with its sales concept of“ideal, affordable housing that anyone can buy with confidence”, and plans to supplement its housing businesswith a short-term revenue generating business.
In terms of business development in the future, it is expected that the number of buildings will be increased toreflect movements in the market.
(ii) Renewal Business Strategy
With regard to the renewal business, because only those properties which meet certain conditions can be utilized,
many of these condominiums are left unutilized; however, the performance of the Le Art Series is becoming
increasingly recognized, and it is planned that one to two buildings will be stably supplied each year. Also, in lightof the fact that customer needs for newly built condominiums are clearly defined, pre-owned condominium
business is expected to move beyond simply supplementing new condominium business to becoming a revenue
generating short-term business on par with detached homes.
(iii) Resale Business Strategy
Supplementing the built-for-sale condominium business, the resale operations have demonstrated superior shortterm collection. However, it is a limited-term business, and for further development the Company will carefully
assess the market environment, in order to strike a balance between appropriate sales price and procurement cost.
(iv) Income-Generating Properties Strategy
With regard to income-generating properties, by repeating a well-balanced cycle of procurement and sales inorder to increase asset value, profitability can be increased and an optimal portfolio balance can be achieved
which will allow for growth as a stable business.
D. Group Strategy
In order to build a stronger public company which is not swayed by external factors, the Company will improveinformation exchange within the Group, in an effort to optimize efficient mutual use of individual strengths. In
addition, because the Company’s main business is developing and marketing condominiums which is a flowtype business, an essential task for the Company is working to supplement it with stock-type businesses
including income-generating properties business, property management services, and nursing services businesses
in order to create a multidimensional service company that generates various kinds of synergies between its
various components.
Leben Community Co., Ltd., is aiming to increase the number of buildings it manages to 30,000 over the
medium term and has achieved its target of 25,000 for the current fiscal year. It is working to offer an evengreater range of services to its customers and plays a central role in enabling the Group to develop stock-typebusiness operations. And expectation is high that, by serving as a contact point with customers that havealready purchased properties from the Group, it will help develop opportunities for new business.
Takara Live Net Co., Ltd. is working to develop a broad distribution network not dependent upon intra-Group
commissioned sales in order that it can restructure itself as a multifunctional sales company over the medium tolong term.
TAFUKO Co., Ltd. is, as its primary tasks, aiming to assist customers in finding solutions, and tostrengthen cohesiveness amongst the Group in order to achieve stable business development.
Marunouchi Servicer Co., Ltd. helps to dispose of bad debt, fostering Group synergy and rejuvenating
business through the valuation, processing, disposal, etc., of real estate which represents debt collateral,
thereby providing a service which contributes to society.
(3) Issues to be Addressed

The real estate market was relatively buoyant until around 2007. Thereafter, however, the sub-prime loan problem
in the US started to negatively affect it and the Lehman Shock sparked financial concerns around the world. With
global financial markets in turmoil, the supply and demand balance for new housing construction, led bycondominiums, collapsed and the real estate market stalled.
In the fiscal year ended March 31, 2009, the Company suffered a large deficit, mostly because of loss on valuation- 11 -

of inventories. Following this experience, however, it implemented a variety of measures to stage a recovery. As aresult, with the aid of aggressive site acquisition, fund raising via a rights issue, and the resumption of pending
projects, the Company found it had been able to establish the foundation for renewed growth, and in August 2010 it
drafted a medium-term business plan (Takara Leben Building Action 2011) which extends up the fiscal year ending
March 31, 2013.
Based on this medium-term business plan, the Company endeavored in the fiscal year under review to establish a
corporate structure strong enough to weather changes in the environment. Aims were 'to secure stable profitability'and 'to restructure its financial position'. Especially on the profit front, a business plan based on cautious assessmentof profitability, and cost-cutting measures enabled the Company to achieve decent profits.
Having weathered a number of challenging stretches after the burst of the bubble, the Company will base its sales
efforts on the prudent assessment of market conditions and appropriate prices. Also, it will pursue efficiency andprofitability, and further strengthen its financial foundation. Simultaneously, it will promote tie-ups to achievesynergies within the Group.
Thanks to these activities, the Group will strive to further raise value added, accomplish healthy and steadycorporate growth, and contribute to its customers, stakeholders, and society.

- 12 -

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(Million yen)Previous consolidated fiscal year
Current consolidated fiscal year
(Fiscal year ended March 31, 2010) (Fiscal year ended March 31, 2011)
AssetsCurrent assets
Cash and cash equivalents
Notes and accounts receivable

3,766

9,414

291

416

Real estate held for sale*2, *3

5,896*2, *3

5,259

Real estate under construction*2, *3

19,987*2, *3

23,575

983

885

*2

1,997

2,415

(39)

(38)

32,884

41,928Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures*2, *3

7,685*2, *3

6,759

Accumulated depreciation(2,164)(2,104)

Buildings and structures (net)

5,520

4,654

Tools, instruments and fixtures*2, *3

Accumulated depreciation

212

*2

(141)

(158)

Tools, instruments and fixtures (net)Land*2, *3

Lease assets

175

53

34

14,961

13,259*2, *3

8

8

(3)

(5)

5

3

19

－

20,56017,951

Lease assets

68

49

Software in progress

161

63

Accumulated depreciation
Lease assets (net)
Construction in progress*2

Total property, plant and equipment
Intangible assets

Other

*2

Total intangible assets

266

*2

372

496

484

Investment securities

122

137

Long-term loans receivable

111

99

Deferred tax assets

19

34

Investments and other assets

Other

*1

584

*1

644

Allowance for doubtful accounts

(238)

(225)

Total investments and other assets

599

689

21,656

19,12654,54061,054

Total noncurrent assets
Total assets- 13 -

(Million yen)Previous consolidated fiscal year
Current consolidated fiscal year
(Fiscal year ending March 31, 2010) (Fiscal year ending March 31, 2011)
Liabilities
Current liabilities
Notes and accounts payable trade

*2

2,881

Short-term loans payable

*2

5,334

*2

3,720

Current portion of long-term loans payable*2

18,958*2

16,9603,785

Lease obligations

21

Income taxes payable

102

93

Advances

791

2,326

Provision for bonuses

138

176

6

－

Provision for directors’ bonuses
Other
Total current liabilities

21

997

1,068

29,22328,151

Noncurrent liabilities*2Long-term loans payable

15,723*2

13,669Lease obligations

55

33

Provision for employees’ retirement benefits

119

149

Provision for directors’ retirement benefits

44

81

Asset retirement obligations

－

18

713

587

Total noncurrent liabilities

16,656

14,541

Total liabilities

45,88942,692

Capital stock

2,442

4,819

Capital surplus

2,572

4,949

Retained earnings

4,952

9,905

Treasury stock(1,295)(1,295)

Total shareholders’ capital

8,672

18,380

(21)

(18)

Other

Net assets
Shareholders’ equity

Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Other accumulated comprehensive income

Total net assets
Total liabilities and net assets- 14 -

(21)

(18)

8,651

18,36154,54061,054

(2) Consolidated Income Statement and Comprehensive Income(Consolidated Statements of Income)(Million yen)Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)
51,955Net sales
Cost of sales*1

Gross profit (loss)
Selling, general and administrative expenses*2

Operating income (loss)

41,650Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)
46,884*1 33,058

10,305

13,826

7,092

*2

7,069

3,212

6,757

Interest income

16

23

Dividend income

23Commissions received

96

85

Dividend income from anonymous association

110－

Personnel transfer expenses

16－

Equity in earnings of affiliates

8

19

Miscellaneous income

5937

Total non-operating income

310

170

Non-operating income

Non-operating expenses
Interest paid

1,080

1,181

Stock issuance cost－

126

Miscellaneous loss

63

94

Total non-operating expenses

1,144

1,402

Ordinary income (loss)

2,378

5,525

Gain on sale of investment securities

1－

Reversal of provision for loans

44

24

Reversal of provision for bonuses

29

4

Extraordinary income

Gain on liquidation of anonymous association

*3

232

1

Gain on exempted loans of affiliated companies

*4

11

－

Gain on prior periods adjustment

－

Other

0

49
－

318

79

Total extraordinary income
Extraordinary loss
*5

Loss on disposal of non current assets
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss on valuation of investment securities

25

*5

3

−

10

−

8

Loss on valuation of investments in capital

20Loss on sale of Investment securities−

2

Impairment loss

*6

825

*4

7

－

Office relocation expenses

80Income taxes for prior periods

－

32

Other

7

0

Loss from defaulted affiliate companies- 15 -*6251

Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

877

309

1,820

5,295

180

140

Refund of income taxes

(9)

(12)

Income taxes deferred

(596)

83

Total income taxes

(424)

211

−

5,083

2,244

5,083

Total extraordinary loss
Net income (loss) before income taxes
Income taxes current

Minority stockholder income
Net income (loss)- 16 -

Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

−

5,083

Other Valuation difference on available-for-salesecurities
Other comprehensive income (total)

−

2

−

*2 2

Comprehensive income−

Net income before minority interests
Other comprehensive income

*1

5,086

(Comprising)−Comprehensive income attributable to parent- 17 -

5,086

(3) Consolidated Statement of Changes in Shareholders’ Equity(Million yen)Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

2,442

2,442

Issuance of new shares

−

2,376

Total changes of items during the period

−

2,376

2,442

4,819

2,572

2,572

Issuance of new shares

−

2,376

Total changes of items during the period

−

2,376

2,572

4,949

2,707

4,952

−

(130)

Net incomes (loss)

2,244

5,083

Total changes of items during the period

2,244

4,953

4,952

9,905

(1,295)(1,295)Purchase of treasury stock(0)－

Total changes of items during the period(0)－Balance at end of the period(1,295)(1,295)

Total shareholders’ equity
Balance at end of the previous period
Changes of items during the period

6,428

8,672

Issuance of new shares

−

4,753

Dividends from surplus

−

(130)

2,244

5,083

Shareholders’ equity
Capital stock
Balance at end of the previous period
Changes of items during the period

Balance at end of the period
Capital surplus
Balance at end of the previous period
Changes of items during the period

Balance at end of the period
Retained earnings
Balance at end of the previous period
Changes of items during the period
Dividends from surplus

Balance at end of the period
Treasury stock
Balance at end of the previous period
Changes of items during the period

Net income (loss)
Purchase of treasury stock
Total changes of items during the period
Balance at end of the period- 18 -

(0)

－

2,244

9,707

8,672

18,380(Million yen)Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 20011)

(7)

(21)

(14)

2

(14)

2

(21)

(18)

Balance at end of the previous period

(7)

(21)

Changes of items during the period
Net changes of items other than shareholders'equity (net)Total changes of items during the period

(14)

2

(14)

2

Balance at end of the period

(21)

(18)

6,420

8,651

Issuance of new shares

−

4,753

Dividends from surplus

−

(130)

2,244

5,083

(0)

－

(14)

2

Total changes of items during the period

2,230

9,710

Balance at end of the period

8,651

18,361Other accumulated comprehensive income
Other Valuation difference on available-for-sale securities
Balance at end of the previous period
Changes of items during the period
Net change in items other than shareholders’equity (net)Total changes for the current fiscal year
Balance at end of the period
Total other accumulated comprehensive income

Total net assets
Balance at end of the previous period
Changes of items during the period

Net income (loss)
Purchase of treasury stock
Net changes of items other than shareholders'equity (net)- 19 -

(4) Consolidated Statements of Cash Flows(Million yen)Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

Income before income taxes

1,820

5,295

Depreciation and amortization

369

368

Net cash provided by (used in) operating activities

Loss (gain) on sales of investment securities(1)

2

Impairment loss

825

251

Increase (decrease) in provision

(55)

85

−

10

(18)

(27)

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Interest and dividends income−

126

Dividend income from anonymous association

(110)

－

Loss (gain) on valuation of investment securities

−

8

1,080

1,181

Stock issuance cost

Interest expenses

25

3

Gain on liquidation of anonymous association

(232)

(1)

Decrease (increase) in notes and accounts receivable
trade

(241)

(125)

61

65

15,078

155

313

－

(6,270)903

Increase (decrease) in advances received

(538)

1,534

Other

1,385

(648)

Subtotal

13,492

9,190

Loss on retirement of noncurrent assets

Decrease (increase) in operating loans receivable
Decrease (increase) in inventories
Decrease (increase) in joint project investments
Increase (decrease) in notes and accounts payable
trade

18

27

(1,089)(1,155)

(202)

(163)

12,218

7,897

Payments into time deposits

(17)

(20)

Proceeds from withdrawal of time deposits

100

16

Decrease (increase) in short-term loans receivable

34

14

Payments of long-term loans receivable

(48)

(1)

Collection of long-term loans receivable

190Proceeds from redemption of bonds

34－(1,367)

(883)

(145)

(138)

Purchase of investment securities

−

(27)

Proceeds from sales of investment securities

13

4

Income from refunds of contribution toanonymous association

924

－

0

3

(451)

(1,032)

Interest and dividends income received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities

Purchase of property, plant and equipment
Purchase of intangible assets

Other
Net cash provided by (used in) investing activities- 20 -

(Million yen)Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
payable(6,413)(3,811)

Proceeds from long-term loans payable

9,618

11,020

Repayment of long-term loans payable(14,987)(12,875)

Repayments of lease obligations

－

(21)

Payments for issuance of common stock

－

4,627

Purchase of treasury stock(0)−

Cash dividends paid

(0)

(129)

(11,783)(1,191)

Net increase (decrease) in cash and cash equivalents

(16)

5,673

Cash and cash equivalents at beginning of period

3,733

3,717

Net cash provided by (used in) financing activities*1

Cash and cash equivalents at end of period- 21 -

3,717

*1

9,391

(5) Notes Regarding to Assumptions for the Going Concern
Not applicable.

- 22 -

(6) Basis of Presenting Consolidated Financial Statements
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

1. Items related to the(1) Number of consolidated subsidiaries: 4
scope of consolidation
Names of consolidated subsidiaries:
Leben Community Co., Ltd.
TAFUKO Co., Ltd.
Takara Live Net Co., Ltd.
Marunouchi Servicer Co., Ltd.

(1) Number of consolidated subsidiaries: 4Names of consolidated subsidiaries:
Leben Community Co., Ltd.
TAFUKO Co., Ltd.
Takara Live Net Co., Ltd.
Marunouchi Servicer Co. Ltd.

Item(2) Names of important nonconsolidated
subsidiaries
Takara Housing Co., Ltd.
(Reason for removing from scope of
consolidation)
Nonconsolidated subsidiary’s total assets, net
sales, net income and retained earnings were
small and had no significant impact upon the
consolidated financial statements.

(2) Names of important nonconsolidated
subsidiaries
Not applicable
Takara Housing Co., Ltd. is excluded fromnonconsolidated subsidiaries because of lowered
control power and non-consolidated partnership.

(3) Special purpose corporations for disclosure
An overview of special purpose corporations
for disclosure; an overview of transactions
utilizing special purpose corporations fordisclosure; and amounts of transactions
conducted with special purpose corporations
for disclosure are disclosed under “Items
related to Special Purpose Corporations forDisclosure”.

(3) Special purpose corporations for disclosure
Same as in the left column.

2. Items related to the(1) Number of affiliates for which equity method isapplication of the equity
applied: 1
methodName of the affiliate:
AS PARTNERS Co., Ltd.

(1) Number of affiliates for which equity method isapplied: 1
Name of the affiliate:
AS PARTNERS Co., Ltd.

(2) Names of nonconsolidated subsidiaries forwhich equity method is not applied:
Takara Housing Co., Ltd.
Takara Housing Co., Ltd. is excluded from thescope of equity method application because its
net income (as equity method applied) andretained earnings (as equity method applied) had
no significant impact upon consolidated
financial statements and has no overallsignificance.

- 23 -(2) Names of nonconsolidated subsidiaries forwhich equity method is not applied:
Not applicable

Item
3. Items related to thefiscal year forconsolidated
subsidiaries

4. Items related toaccounting standard(1) Assessment standards
and methods forimportant assets(2) Depreciation method
for importantdepreciable assets

Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)
Accounting dates for all consolidated
subsidiaries are the same as the date forconsolidated accounting.

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)
Same as in the left column.

(i) Marketable securities
a. Bonds held to maturity
Amortized cost method (straight-line
method)b. Other marketable securitiesThose at market value:
Market value method based on market
value at date of consolidated accounting(valuation difference is reported as acomponent of net assets, and the cost of
securities sold is calculated using themoving average method)Those not at market value:
Cost method based on the moving averagemethod, provided however, anonymous
association contributions to capital are
based on the specific cost method; specifics
are given in “((4) Important items related tothe creation of other consolidated financial
statements, (ii) Accounting procedures foranonymous association contributions tocapital)”.
(ii) Inventories
Cost method based on specific cost
method(i) Marketable securities
a. Bonds held to maturity
Same as in the left column.

(i) Property, plant and equipment (excluding
lease assets)a. Buildings
The declining balance method is adopted
for headquarters, offices and other buildings.
Durability and residual value aredetermined according to standards
stipulated in corporation tax law.
However, the straight-line method isused for buildings (excluding attachedstructures) acquired after April 1, 1998.
In order to logically accommodate profit
from rental buildings, an economicallyusable period estimate is created and astraight-line method based upon individual
durability is applied.
The individual durability for rentalbuildings is shown below.

(i) Property, plant and equipment (excluding
lease assets)a. Buildings
Same as in the left column.

Individual
durability(Years)Reinforced concretebuildings
Steel-frame buildings
Wood buildings
Fixture

40
30
15
15

- 24 -

b. Other marketable securities
Same as in the left column.

(ii)

Inventories
Same as in the left column.

Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)b. Property, plant and equipment other thanthose given above
The declining balance method is applied.
Durability and residual value aredetermined according to standards
stipulated in corporation tax law.

b. Property, plant and equipment other thanthose given above
Same as in the left column.

Item

(ii)

Intangible assets (excluding lease assets)
A straight-line method based on the
expected availability period (five years)
has been applied for all software used.
(iii) Lease assets
Lease assets related to finance and leasetransactions not involving transfer ofownership
A straight-line method was applied where
the lease period was set as the serviceable
life and the residual value was set as zero.
Amongst finance and lease transactions
not involving transfer of ownership, thoselease transactions starting prior to March
31, 2008 follow accounting procedures
based on methods for normal leasetransactions(iv) Long-term prepaid expenses
A straight-line method has been applied.

(3) Standards forrecording important
allowances(i) Allowance for doubtful accounts
In order to provide provision for loss
resulting from bad debt, the loan loss
ratio is used for general debt, and specified
claims, such as claims with default
possibility, have their recoverability
evaluated individually and the expectedirrecoverable amount is posted.
(ii) Provision for bonuses
The expected amount of future payments
for employee bonuses is recorded as an
expense in the current consolidated fiscal
year.
(iii) Provision for directors’ bonuses
The expected amount of future payments
for directors’ bonuses is recorded as an
expense in the current consolidated fiscal
year.
(iv) Provision for employees’ retirement benefits
Recording provision for employees’
retirement benefits are based on theretirement allowance at the end of the current
consolidated fiscal year(v) Provision for directors’ retirement benefits
Director retirement benefits are based oninternal regulations which govern such
benefits and are recorded as a necessary
payment at the end of the current
consolidated fiscal year.

- 25 -(ii)

Intangible assets (excluding lease assets)
Same as in the left column.

(iii)

Lease assets
Same as in the left column.

(iv) Long-term prepaid expenses
Same as in the left column.

(i) Allowance for doubtful accounts
Same as in the left column.

(ii) Provision for bonuses
Same as in the left column.

(iii) Provision for directors’ bonuses
Same as in the left column.

(iv) Provision for employees’ retirement
benefits
Same as in the left column.

(v) Provision for directors’ retirement benefits
Same as in the left column.

Item(4) Important items
related to the creationof other consolidated
financial statements

Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)(i) Accounting procedures for consumption taxes
Accounting procedures for national andlocal consumption taxes are based on the
tax excluded method. Also, consumption
taxes not eligible for asset-related deduction
are treated as period costs for the
consolidated fiscal year in which theyoccur.

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)(i) Accounting procedures for consumption taxes
Accounting procedures for national andlocal consumption taxes are based on the
tax excluded method. Also, consumption
taxes not eligible for asset-related deduction
are treated as period costs for the consolidated
fiscal year in which they occur.
Accounting procedures for tax-exempt
business entities are based on the tax
included method.
(Change in accounting policy)
Accounting procedures for Marunouchi
Servicer Co. Ltd were changed to tax
included method from tax excluded method
as the consolidated subsidiary was registeredas a tax-exempt business entity. This change
had no significant impact upon the
consolidated financial statements.

5.Items related to thevaluation of assets anddebts of consolidated
subsidiaries
6. Items related to theamortization of positive
and negative goodwill

7.Scope of funds within
the consolidated
statement of cash flows(ii) Accounting procedures for anonymous
association contributions to capitalWith regard to anonymous association
contributions to capital, the amount ofequity for the assets of anonymous
association is recorded as “investment
securities”. When capital injections are madeto anonymous association, it is recorded as an“investment security” and the equity-equivalentof net profit or loss for the anonymous
association is recorded as “anonymous
association allocated profit/loss” and“investment securities” are adjusted by anequivalent amount; repayment ofcontributions to capital from the manager isdeductedWith
regard fromto the“investmentvaluation ofsecurities”.
assets and(ii) Accounting procedures for anonymous
association contributions to capitalSame as in the left column.

Same as in the left column.

debts of consolidated subsidiaries, an overallmarked to market method is applied.
With regard to the amortization of goodwill,
equal amortization over a 10 year period is
carried out.
However with regard to small amounts,
amortization is carried out all at once in the year inwhich it occurs.

Same as in the left column.

Comprised of cash on hand, deposits which canbe drawn on as needed and short-term
investments which can easily be converted into
cash, which carry small risk with regard tofluctuations in value and reach their date of
maturity within three months of the date ofacquisition.

Same as in the left column.

- 26 -

(7) Changes in Basis of Presenting Financial Statements
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)────────

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)(Accounting Standards for Asset Retirement)
The “Accounting Standards for Asset Retirement Obligations(Accounting Standards Board of Japan (ASBJ)
Statement No. 18 on March 31, 2008)” and the “Guidance on
Accounting Standards for Asset Retirement
Obligations (ASBJ Guidance No. 21 on March 31, 2008)”
were applied from the fiscal year under review.
As a result of the applications, operating income and ordinary
income decreased ¥3 million and income before income taxes
declined ¥13 million during the fiscal year under review.

(8) Changes in Presentation
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)────────

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)(Changes in Presentation)
With the application of the “Cabinet Office Ordinance
Revising the Regulations on Financial Statements (Cabinet
Office Ordinance No. 5 on March 24, 2009) under the“Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22 on December 26, 2008),”
the account item “Income before minority interests” wasincluded from the fiscal year under review.

(9) Additional Information
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)────────

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)
The “Accounting Standard for Presentation of Comprehensive
Income (ASBJ Statement No. 25 on June 30, 2010)” was applied
from the fiscal year under review. The amounts of “Accumulated
other comprehensive income” and “Total accumulated othercomprehensive income” for the previous fiscal year are the amountsof “Valuation and translation adjustments” and “Total valuation andtranslation adjustments” respectively for the previous fiscal year.

- 27 -

(10) Notes on Consolidated Financial Statements(Consolidated Balance Sheets)
Previous consolidated fiscal year
(Fiscal year ended March 31, 2010)

Current consolidated fiscal year
(Fiscal year ended March 31, 2011)*1 Assets relating to affiliates are shown below.
Investments and other assets, others (affiliates equities):¥8 million*2 Assets pledged as collateral and the corresponding liabilities
are shown below.

*1 Assets relating to affiliates are shown below.
Investments and other assets, others (affiliates equities):¥27 million*2 Assets pledged as collateral and the corresponding liabilities
are shown below.

(1) Assets pledged as collateral(1) Assets pledged as collateral

Real estate held for sale
Real estate in progress held for sale
Other current assets
Buildings and structures
Tools, instruments and fixtures
Land
Construction in progress
Intangible assets (land lease rights)
Affiliates equities
Total

5,482 million yen
18,35594
5,272
0
14,75319224
30
44,233

Real estate held for sale
Real estate in progress held for sale
Buildings and structures
Tools, instruments and fixtures
Land
Intangible assets (land lease rights)
Affiliates equities
Total

3,889 million yen
22,7074,304
012,267224
30
43,423Affiliates equities in the amount of 30 million yen havebeen offset in the consolidated balance sheet.

Affiliates equities in the amount of 30 million yen havebeen offset in the consolidated balance sheet.
(2) Liabilities corresponding to the above(2) Liabilities corresponding to the above

Short-term borrowings
Long-term debt due within one year
Long-term borrowings
Notes and accounts payable

Short-term borrowings
Long-term debt due within one year
Long-term borrowings
Total

5,261 million yen
18,37814,936768

Total

3,276 million yen
16,835
13,11933,232

39,345(3) In line with the decision to shift from development and leasing
to resale of some properties, ¥1,255 million for buildings andstructures, ¥0 million for tools, instruments and fixtures and¥1,272 million for land has been transferred to real estate held
for sale during the current consolidated fiscal year.
In addition, in line with the decision to shift from resale todevelopment and leasing for some properties, ¥840 million forreal estate held for sale has been transferred to ¥309 million
for buildings and structures and ¥530 million for land during thisfiscal year.

(3) In line with the decision to shift from development and leasing
to resale of some properties, ¥911 million for buildings andstructures and ¥1,987 million for land has been transferred toreal estate held for sale during the current consolidated fiscal
year.

4 Contingent liabilities
Guarantee of liabilities has been made for borrowings fromfinancial institutions other than consolidated subsidiaries.

4 Contingent liabilities
Guarantee of liabilities has been made for borrowings fromfinancial institutions other than consolidated subsidiaries.

Joint and several guarantees
and liabilities towards
financial institutions until
registration of pledge ofmortgage is completed

1,214

AS PARTNERS Co., Ltd.

154

Aruka Co., Ltd.

41
Total

Joint and several guarantees
and liabilities towards
financial institutions until
registration of pledge ofmortgage is completed

million yen

Aruka Co., Ltd.

49
Total

1,410

- 28 -

2,665

2,714

million yen

Previous consolidated fiscal year
(Fiscal year ended March 31, 2010)

Current consolidated fiscal year
(Fiscal year ended March 31, 2011)

5 Takara Leben Group has reached account overdraft agreements

5 Takara Leben Group has reached account overdraft agreements

and lending commitment agreements with 8 financing
banks in order to efficiently procure operating capital. Basedon these agreements, the unexercised loan balance for theend of the current consolidated fiscal year is as follows.

and lending commitment agreements with 8 financing
banks in order to efficiently procure operating capital. Basedon these agreements, the unexercised loan balance for theend of the current consolidated fiscal year is as follows.

Total amount of accountoverdraft maximum andlending commitment

7,234

Total amount of accountoverdraft maximum andlending commitment

7,602

Exercised loan balance

4,567

Exercised loan balance

3,983

difference

million yen

2,666

difference

million yen

3,619(Consolidated Statements of Income)Previous consolidated fiscal year
(From April 1, 2009
to March 31 2010)*1 The inventory at the end of fiscal year has the following
post-write-down amount in line with the decrease inprofitability, and the following loss on valuation of
inventories is included in the cost of sales:¥(3,448) million

Current consolidated fiscal year
(From April 2010
to March 31, 2011)*1 The inventory at the end of fiscal year has the following
post-write-down amount in line with the decrease inprofitability, and the following loss on valuation of
inventories is included in the cost of sales:¥(4,890) million*2 Major expenses and amounts for selling and generaladministrative expenses are given below:*2 Major expenses and amounts for selling and generaladministrative expenses are given below:

Advertising expenses
1,681 million yen
Sales commissions
1,897
Salaries
1,217
Provision for employees’ bonuses
156
Provision for directors’ bonuses
39
Employee retirement benefit costs
29
Provision for directors’ retirement benefits 7
Provision for loans
30

Advertising expenses
2,349 million yen
Sales commissions
1,152
Salaries
1,215
Provision for employees’ bonuses
200
Provision for directors’ bonuses
44
Employee retirement benefit costs
39
Provision for directors’ retirement benefits 24

The general percentage of costs belonging to sales
expenses is 53%; the general percentage of costs belonging
to general administrative expenses is 47%.

The general percentage of costs belonging to sales expenses
is 51%; the general percentage of costs belonging to
general administrative expenses is 49%.

*3 Gain on liquidation of anonymous association was profit
distribution upon cease of the project for Triumph Assets 2,
Ltd., a special purpose company.

3────────

*4 Gain on exempted loans of affiliated companies and losses
from defaulted affiliate companies were derived fromsettlement of debts with former shareholders of Marunouchi
Servicer Co., Ltd. when it became a consolidated subsidiaryof Takara Leben.

4────────

*5 The breakdown for loss on disposal of fixed assets is
below:
Buildings and structures
24 million yen
Tools, instruments and fixtures
1
Total
25

*5 The breakdown for loss on disposal of fixed assets is
below:
Buildings and structures
0 million yen
Tools, instruments and fixtures
2
Total
3

- 29 -

Previous consolidated fiscal year
(From April 1, 2009
to March 31 2010)*6 Impairment loss
Due to the drop in market value for rental properties
and unutilized assets during the current consolidated fiscal
year, the Takara Leben Group has recorded the following
assets and asset groups as impairment losses (¥825 million).
Type

Location
Nishi Ward, Saitama
City, Saitama
Prefecture
Midori Ward, Saitama
City, Saitama
Prefecture
Miyoshi-cho, IrumaGun, Saitama
Prefecture
Koga City, Ibaraki
Prefecture

Unutilized properties

Land

Land

Land
Land

14

2

9

Land

Hakone-cho,
Ashigarashimo-Gun,
Kanagawa Prefecture

0Land, buildings, tools,
instruments andfixtures

Kawagoe City,
Saitama Prefecture

4

Land, buildings
Land, buildings
Land, buildings
Land, buildings
Land
TOTAL

Amount(Million
yen)

Type

Location

Land, buildings

Nerima Ward,
Tokyo

78

Land

Chiyoda Ward,
Tokyo

173

0

Oyama City, Tochigi
Prefecture

Tsukuba City,
Ibaraki Prefecture
Hayama-cho, MiuraGun, Kanagawa
Prefecture
Kawasaki City,
Kanagawa Prefecture
Yokohama City,
Kanagawa Prefecture
Chiyoda Ward,Tokyo
Chuo Ward, Tokyo

Use

1

Land, buildings, tools,
instruments andfixtures

Land, buildings
Rental properties

Amount(Millionyen)

Rental properties

Use

Current consolidated fiscal year
(From April 2010
to March 31, 2011)*6 Impairment loss
Due to the drop in market value for rental properties
during the current consolidated fiscal year, the Takara Leben
Group has recorded the following assets and asset groups
as impairment losses (¥251 million).

TOTAL

251

15
4
39
371
190
170
825

When broken down, buildings account for ¥140 million; tools,
instruments and fixtures account for ¥0 million; and land
account for ¥685 million.
The rental properties and unutilized assets are grouped
per property units.
The recoverable amount is determined according to net salevalue and utility value; net sale value is assessed based on
the appraisal value, etc. of a real estate appraiser; andutility value is calculated at 6% less of future cash flow.

When broken down, buildings account for ¥28 million; andland account for ¥223 million.
The rental properties and unutilized assets are grouped
per property units.
The recoverable amount is determined according to net
sale value and utility value; net sale value is assessed
based on the appraisal value, etc. of a real estate appraiser;and utility value is calculated at 6% less of future cashflow.

- 30 -

(Consolidated Statements of Comprehensive Income)Consolidated fiscal year under review (From April 1, 2010 To March 31, 2011)*1 Comprehensive income in the previous fiscal year
Comprehensive income attributable to owners of the parent
2,230 million yen
Total
2,230 million yen*2 Other comprehensive income in the previous fiscal year
Valuation difference on available-for-sale securities
Total(14) million yen(14) million yen(Consolidated Statements of Changes in Shareholders' Equity)
Previous consolidated fiscal year (From April 1, 2009 To March 31, 2010)
1. Type and Total of Shares Issued and Outstanding as well as Type and Number of Shares of Treasury

Stock
Outstanding shares at Increase in shares forend of previous
current consolidated
consolidated fiscal year
fiscal year
(shares)(shares)

Decrease in shares for Outstanding shares atcurrent consolidated
end of current
fiscal year
consolidated fiscal year
(shares)(shares)

Shares issued and outstanding
Common stock

17,540,333−−

17,540,333

Total

17,540,333−−

17,540,333

982,68289−982,771

982,68289−982,771

Treasury stock
Common stock (Note)
Total(Note) The 89 share increase for common treasury stock is a result of purchases of fractional shares.
2. Dividends(1) Dividends Paid
Not applicable.
(2) Dividends with a Record Date that is under Current Consolidated Fiscal Year while the Effective
Date is next Consolidated Fiscal Year
Share type
(Resolution)
General meeting ofshareholders on
Common stock
June 22, 2010

Total dividend
paid(Million yen)

Sources

33 Retained earnings- 31 -

Dividend
per-share(yen)
2

Recorddate

Effective date

March 31, 2010

June 23, 2010

Current consolidated fiscal year (From April 1, 2010 to March 31, 2011)
1. Type and Total of Shares Issued and Outstanding as well as Type and Number of Shares of Treasury
Stock Shares
Outstanding shares at Increase in shares forend of previous
current consolidated
consolidated fiscal year
fiscal year
(shares)(shares)

Decrease in shares for Outstanding shares atcurrent consolidated
end of current
fiscal year
consolidated fiscal year
(shares)(shares)

Shares issued and outstanding
Common stock

17,540,333

15,845,737−

33,386,070

Total

17,540,333

15,845,737−

33,386,070

982,771−−982,771982,771−−982,771

Treasury stock
Common stock (Note)
Total

2. Dividends(1) Dividends Paid
Type of
Shares(Resolution)

Total dividend
Per-share
paid (Million yen) dividends (yen)Record date

Effective date

General meetingof shareholders
on June 22, 2010

Common stock

33

2

March 31, 2010

June 23, 2010

Meeting of theBoard ofDirectors on
October 25, 2010

Common stock

97

3

September 30,
2010

December 7, 2010

(2) Dividends with a Record Date that is under Current Consolidated Fiscal Year while the Effective Date isnext Consolidated Fiscal Year
Total dividend
Type ofPer-share
Record date Effective date
paid
Sources
Sharesdividends (yen)(Resolution)(Million yen)
June 21, 2011
GeneralRetained
Common stock194
6 March 31, 2011 June 22, 2011
meeting of
earnings
shareholders- 32 -

(Consolidated Statements of Cash Flows)
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)*1 Relationship between cash and cash equivalents and item
amount recorded on consolidated balance sheets
Cash and cash accounts
Deposit term over three months
Fixed-term deposits
Cash and cash equivalents
2

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)*1 Relationship between cash and cash equivalents and item
amount recorded on consolidated balance sheets(As of March 31, 2010)¥3,766 million

Cash and cash accounts
Deposit term over three months
Fixed-term deposits
Cash and cash equivalents

(49)
3,717

Content of important and non-fund transactions
Amount transferred from fixed assets to real estate held forsale due to a change in the purpose of real estate holdings:¥2,527 million

2

Amount transferred from real estate held for sale to
fixed assets due to a change in the purpose of real estateholdings:¥840 million- 33 -(As of March 31, 2011)¥9,414 million
(23)
9,391

Content of important and non-fund transactions
Amount transferred from fixed assets to real estate held forsale due to a change in the purpose of real estate holdings:¥2,899 million

(Lease and other Real Estate Transactions)
Previous consolidated fiscal year (From April 1, 2009 to March 31, 2010)
The Company and certain consolidated subsidiaries own real estate for office lease (including lands) as well as
condominiums for lease in Tokyo and other areas.
Gains relating to those lease properties for the current fiscal year ended March 31, 2010 was ¥401 million (lease
income is recorded as net sales, expenses (main items) relating lease operation is recorded as cost of sales), the loss
relating to the impairment loss is ¥825 million (recorded as extraordinary loss).
In addition, the amount recorded in the current consolidated balance sheet, increased or decreased amounts, as wellas the market value of such lease properties are, as follows:
Amount recorded in the consolidated balance sheet (Million yen)
Balance at the end of the
Increased (Decreased) amount
Balance at the end of theprevious consolidated fiscal
during the current
current consolidated fiscal
year
consolidated fiscal yearyear
22,447(2,008)20,439Market value at the end of thecurrent consolidated fiscal
year (Million yen)
22,454(Notes)1.
The amount indicated in the consolidated balance sheet was calculated as the amount equivalent to the cost for
acquisition deducting accumulated depreciation and amortization as well as the cumulative impairment loss.
2.
Among the amount increased (decreased) for the current consolidated fiscal year, the main items increased are:acquisition of real estate (¥1,043 million), transfer from real estate for sale (¥840 million); main items decreased
are: transfer to real estate for sale (¥2,527 million), depreciation and amortization (¥300 million) and impairment
loss (¥825 million).
3. The market value at the end of the current consolidated fiscal year is based upon the amount appraised by outside
independent real estate appraisers.
(Additional information)“Accounting principles relating disclosure of market value of real estate held for the purpose of leasing” (Corporate
Accounting Principle No. 20, November 28, 2008) as well as “Application guidelines for standards relating disclosureof market value of real estate held for the purpose of leasing” (Application Guideline for Corporate Accounting
Principle No. 23, November 28, 2008) have been applied from the current consolidated fiscal year.
(Items related to Lease and other Real Estate transactions)
Current consolidated fiscal year (From April 1, 2010 to March 31, 2011)
The Company and certain consolidated subsidiaries own real estate for office lease (including lands) as well as
condominiums for lease in Tokyo and other areas.
Gains relating to those lease properties for the current fiscal year ended March 31, 2011 was ¥527 million (lease
income is recorded as net sales, main expenses relating lease operation is recorded as cost of sales), the loss relating to
the impairment loss is ¥251 million (recorded as extraordinary loss).
In addition, the amount recorded in the current consolidated balance sheet, increased or decreased amounts, as wellas the market value of such lease properties are, as follows:
Amount recorded in the consolidated balance sheet (Million yen)
Balance at the end of the
Increased (Decreased) amount
Balance at the end of theprevious consolidated fiscal
during the current
current consolidated fiscal
year
consolidated fiscal yearyear
20,439(2,566)
17,873Market value at the end of thecurrent consolidated fiscal
year (Million yen)
19,428(Notes)1.
The amount indicated in the consolidated balance sheet was calculated as the amount equivalent to the cost for
acquisition deducting accumulated depreciation and amortization as well as the cumulative impairment loss.
2.
Among the amount increased (decreased) for the current consolidated fiscal year, the main item increased is:acquisition of real estate (¥861 million); main items decreased are: , transfer from real estate for sale and transfer
to real estate for sale (¥2,899 million), depreciation and amortization (¥272 million) and impairment loss (¥251
million).
3. The market value at the end of the current consolidated fiscal year is based upon the amount appraised by outside
independent real estate appraisers.

- 34 -

(Segment information)a. Segment information by operating segment
Previous consolidated fiscal year (from April 1, 2009 to March 31, 2010)
Real estate Real estate
Elimination/
Real estate
Other
lease
management
Total
Company- Consolidated
sales businessbusinessbusinessbusiness(Million yen) wide
(Million yen)
(Million yen)
(Million yen)
(Million yen) (Million yen)
(Million yen)I.

Net sales and operating
incomes (losses)(1) Net sales to externalcustomers
47,5291,288(2) Inter-segmental
internal net sales / transfers
−
8
Total
47,5291,297
Operating expenses
45,278930
Operating income/ operating loss (minus)
2,251
366
II. Asset, depreciation andcapital expenditures
Asset
27,09020,720Depreciation
50300
Impairment loss−
825
Capital expenditures
18
1,043(Note)1. Method of business segmentation

2.

3.

4.

1,971

1,166

51,955−51,955

11
1,983
1,774

1,560
2,727
2,478

1,580
53,53650,461(1,580)(1,580)(1,717)−51,95548,743

208

249

3,075

137

3,212

210
3
−
3

1,619
10
−
6

49,642
364
825
1,071

4,898
5
−
164

54,540
369
825
1,236

Segmentation is divided by business segment content.
Main content of each business segment
Real estate sales business: sale of newly built condominiums
Real estate lease business: lease of office and store properties
Real estate management business: management of residential condominiums
Other business: real estate sales agent business, etc.
Among the total consolidated assets, the amount included in “elimination/Company-wide” was ¥5,449
million, which was mainly consisted of surplus operation funds (cash and securities) and the assets
relating to the general administrative division of the Company.
Previously, real estate lease business and real estate management business were included in “Other
business” segment, however those two have become independent segments since the current
consolidated fiscal year as significance of those two were increased. As a result, operating income inthe other business segment shows a decrease of ¥574 million compared with the segmentation usedpreviously. In addition, the following table shows the segment information from the previous consolidated
fiscal year pursuant to the segmentation method applied from the current consolidated fiscal year.
Real estate
Real estate
Real estate
sales
management
lease businessbusinessbusiness(Million yen)
(Million yen)
(Million yen)

Net sales and operating
incomes (losses)(1) Net sales to externalcustomers(2) Inter-segmental
internal net sales / transfers
Total
Operating expenses
Operating income / operating
loss (minus)
II. Asset, depreciation andcapital expenditures
Asset
Depreciation
Impairment loss
Capital expenditures

Elimination/
Other
Total
Company- Consolidated
business(Million yen) wide
(Million en)(Million yen)
(Million yen)I.

51,495

1,442

1,792

2,921

57,652−57,652291
51,786
61,562

106
1,549
1,062

16
1,809
1,631

1,152
4,073
3,837

1,567
59,21968,093(1,567)(1,567)(1,689)−57,652
66,403(9,775)

486

178

236

(8,874)122(8,751)

41,43642−
119

22,569
295
1,773
3,625

399
9
−
−

1,307
15
−
31

65,712
363
1,773
3,776

5,774
(0)
37
43

71,486
362
1,810
3,819

- 35 -

b. Location-specific segment information
Previous consolidated fiscal year (from April 1, 2009 to March 31, 2010)
Not applicable, as the Company had no consolidated subsidiaries or branches located in countries or regions outsideof Japan.
c. Overseas sales
Not applicable, as the Company had no overseas sales.
d. Segment information
Consolidated fiscal year under review (from April 1, 2010 to March 31, 2011)
1. Summary of reportable segments
The Group's reportable segments are segments for which separated financial information is available, and which
are subject to periodical reviews in order for the Company’s Board of Directors to determine the distribution ofmanagement resources and evaluate performance.
The Group's core business is construction and sales of built-for-sale condominiums. Reportable segments are:real estate sales business; real estate rental business; and real estate management business.
The 'real estate sales business' mainly handles built-for-sale condominiums, condominium renovation, and salesof built-for-sale detached houses.
The 'real estate rental business' mainly handles rental of office space and residential-use condominiums.
The 'real estate management business' mainly handles management of condominiums.
2. Calculation methods of sales, profit or loss, assets, liabilities and other amounts for individual reportable segments
With the exception of the valuation of inventories, the accounting methods for the reported business segments
are essentially identical to those outlined in “Basis of Presenting Consolidated Financial Statements”.
Inventories are valued based on book values adjusted for declines in profitability.
Profits for reportable segments refer to operating income.
Intersegment transactions and transfers are valued at market prices.

-

36 -

3. Information on sales, profit or loss, assets, liabilities and other amounts by reportable segment
Consolidated fiscal year under review (from April 1, 2010 to March 31, 2011)(Million yen)
Real estatesales
business
Sales
Sales to external customers

Total

Other

Consolidated

41,948

1,426

2,138

45,5131,370

46,884

−

8

13

22

351

373

41,948
5,868
30,94628,082

1,435
486
18,16012,636

2,152
252
256
80

45,536
6,607
49,36340,798

1,721
233
1,190
762

47,257
6,840
50,554
41,560

−
3,475
834

273
−
309

3
−
−

276
3,475
1,143

6
0
8

282
3,475
1,152

Intersegment sales and transfers
Total
Segment profit
Segment assets
Segment liabilities
OthersDepreciation
Direct sales expenses
Interest paid
Increase in tangible andintangible assets

Reportable Segment
Real estate Real estatelease
managementbusinessbusiness

−
862
15
877
1
878
(Note) The “Others” category is the business segment which is not included in the reportable segments. It mainly includes optional
construction work related to built-for-sale condominium sales, and real estate agent services.

4. Principal factors behind the differences between sums for reportable segments and amounts presented in consolidated
financial statements (adjustment information)
Net sales
Total for reportable segments
Sales in the 'Others' category
Elimination of intersegment transactions
Sales on consolidated financial statements(Million yen)
Current consolidated fiscal year
45,536
1,721(373)
46,884

ProfitTotal for reportable segments
Profit in the 'Others' category
Elimination of intersegment transactions
Operating income on consolidated financial statements(Million yen)
Current consolidated fiscal year
6,607
233
(83)
6,757

(Million yen)
AssetsCurrent consolidated fiscal year
Total for reportable segments
49,363
Assets in the 'Others' category
1,190
Elimination of liabilities related to parent administrative(296)
divisionsCompany-wide assets (Note)
10,796
Total assets on consolidated financial statements
61,054(Note) 'Company-wide assets' are assets that do not belong to any reportable segment. Principal items are cash and deposits, assets
related to administrative divisions, and deferred tax assets.
(Million yen)
Liabilities
Consolidated
Total for reportable segments
40,798
Liabilities in the 'Others' category762
Elimination of liabilities related to parent administrative(225)
divisionsCompany-wide liabilities (note)
1,357
Total liabilities in consolidated financial statements
42,692(Note) Company-wide liabilities are liabilities that do not belong to any reportable segment. The principal item is bank borrowings.

-

37 -

Other items
Depreciation

Total forreportablesegments
276
3,475
1,143

Others(Million yen)Amounts as posted in the
consolidated financial
statements
362
3,357
1,181

Adjustments

77
8
Direct sales expenses−(117)Interest paid
33
4
Increase in tangible and
877
126
70
1,074
intangible assets(Note) Adjustment for the increase in tangible and intangible assets mainly refers to parent company buildings and other capital
expenditure.

5. Information on impairment loss of fixed assets by reportable segment
Current consolidated fiscal year (From April 1, 2010 to March 31, 2011)(Million yen)

Loss relating to theimpairment loss

Real estatesales
business

Real estatelease business

Real estate
managementbusiness

−

251

−

Other business−Elimination/
Company-wide

Consolidated−

251(Additional information)
Consolidated fiscal year under review (from April 1, 2010 to March 31, 2011)
Starting this fiscal year, the Company is applying the Accounting Standard for Disclosures about Segments of anEnterprise and Related Information (Business Accounting Standards No. 17; March 27, 2009) and the Application
Guideline for the Accounting Standard for Disclosures about Segments of an Enterprise and Related Information(Application Guidelines for Business Accounting Standards No. 20; March 21, 2008).

-

38 -

(Special Purpose Companies subject to Disclosure)
Previous consolidated fiscal year (from April 1, 2009 to March 31, 2010)
1. Overview of special purpose corporations for disclosure and overview of transactions utilizing special purpose
corporations for disclosure
In order to diversify the sources of its fund procurement and clarify project administration, the Company invests
in special purpose corporations (as defined by the Law on Special Limited Liability Companies and Asset
Liquidation), and three such special purpose corporations are subject to disclosure. Among the three special purpose
corporations, one had been liquidated upon completion of its purpose during the current consolidated financial year.
In addition, the rest two of special purpose corporations are in the process of being liquidated and the process areplanned to be completed during the next consolidated fiscal year.
With regard to all of these special purpose corporations, neither the Company nor any of its consolidated
subsidiaries has made investments with contingent voting rights, and no director or employee has been sent to thesecompanies.
2. Transaction amounts with special purpose corporations in the current consolidated fiscal year
Major Losses / Gains

Balance at end of theconsolidated fiscal year
(Million yen)Contribution to capital (Note 1)

692

Item
Non-operating income (Note 2)
Extraordinary income (Note 3)

Amount(Million yen)
110
232

(Note 1) The breakdown for contribution to capital is investment securities as an anonymous association contribution tocapital.
(Note 2) The Company has recorded profit distribution for investments under non-operating income.
(Note 3) The Company has recorded distribution from the liquidation under extraordinary income.

The amounts of assets, liabilities and net assets (aggregates) of the respective special purpose corporation as of themost recent fiscal year end are not material and therefore were omitted.
Current consolidated fiscal year (from April 1, 2010 to March 31, 2011)
1. Overview of special purpose corporations for disclosure and overview of transactions utilizing special purpose
corporations for disclosure
In order to diversify the sources of its fund procurement and clarify project administration, the Company invests inspecial purpose corporations (as defined by the Law on Special Limited Liability Companies and Asset Liquidation),and two such special purpose corporations are subject to disclosure. The two special purpose corporations had beenliquidated upon completion of its purpose during the current consolidated financial year.
With regard to all of these special purpose corporations, neither the Company nor any of its consolidated
subsidiaries has made investments with contingent voting rights, and no director or employee has been sent to thesecompanies.
2. Transaction amounts with special purpose corporations in the current consolidated fiscal year
The amounts are not material and therefore were omitted.

-

39 -

(Per Share Information)
Previous consolidated fiscal year
Current consolidated fiscal year
(From April 1, 2009
(From April 1, 2010
To March 31, 2010)
To March 31, 2011)
Net assets per share
522.51 yen Net assets per share
566.66 yen
Net income per share
135.56 yen Net income per share
168.14 yen
The diluted earnings per share for the year ended March
The diluted earnings per share for the year ended March 20112010 is not disclosed because it is antidilutive.
is not disclosed because it is antidilutive.

(Note) The basis for calculating net income per share is as follows:
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)

2,244

5,083

−

−

2,244

5,083

16,55730,236

Net income per share
Net income (Million yen)Amount not belonging to the common stockholders(Million yen)
Net income relating to common stock (Million yen)
Average number of shares outstanding during the term(thousands o shares- 40 -(Important Subsequent Events)
Previous consolidated fiscal year
(From April 1, 2009
To March 31, 2010)
Allotment of New Share Subscription Rights without
Contribution (the “Free Allotment”)
Pursuant to the resolutions of the Board of Directors on
March 5, 2010, Takara Leben Group issued new sharesubscription rights by means of Free Allotment. The details
are set forth below:
1.
Name of new share subscription rights
Takara Leben CO., LTD. New Share Subscription
Rights No. 1 (the “Subscription Rights”)
2.
Allotment method of the Subscription Rights
The Subscription Rights shall be allotted by the method
of Free Allotment, whereby one Subscription Right isbeing allotted per one common stock of the Company(other than the Company’s treasury shares) held by therespective shareholder that are registered or recorded in
the Company’s shareholder registry as of March 31, 2010
(the “Allotment Record Date”).
3.
Total number of the Subscription Rights
16,557,562
4. Effective Date of the Free Allotment
April 1, 2010
5.
Description of the Subscription Rights(1) Type and number of underlying shares of the
Subscription Rights
One share of the common stock of the Company shallbe issued for each Subscription Right.
(2) Amount to be paid in upon exercise of the Subscription
Rights
300 yen shall be paid for one Subscription Right uponits exercise.
(3) Exercise Period of the Subscription Rights
The period shall be from May 6, 2010 to May 31, 2010.
(4) Increase in common stock and capital reserve upon
exercise of Subscription Rights and issuance of newshares(i) The amount of capital to be increased upon exerciseof Subscription Rights and issuance of newcommon stock shall be equivalent to one half of the
maximum amount of capital increase calculated inaccordance with Article 17 Section 1 of the
Corporate Calculation Rules, with any fraction ofless than one yen as a result of such calculation
rounded up to the nearest one yen.
(ii) The amount of capital reserve to be increased upon
exercise of the Subscription Rights and issuance of
new common stocks shall be the maximum amountof capital increase minus the amount of capitalincreased, as referred to in above (i).
6. Uses of proceeds
All of the proceeds will be used to acquire real
properties including used real properties andcondominiums under construction for the business of saleof newly built condominium, renewal business (resale ofused condominiums) and resale business (resale ofacquired condominiums) for the fiscal year ended March
31, 2011.

Current consolidated fiscal year
(From April 1, 2010
To March 31, 2011)────────

(Exercise of the Subscription Rights)
Takara Leben Co., Ltd. New Share Subscription Rights No.
1 (the “Subscription Rights”) were exercised by May 31,
2010 as follows;
1. Total number of the exercised Subscription Rights
15,845,737
2.Type and amount of new issuance- 41 -

(Common stock) 15,845,737
3. Issue price
Per share 300 yen
4. Total amount of issuance¥4,753 million
5. Inclusion to capital¥2,376 million
The exercise of the Subscription Rights results in;
Total shares outstanding (common stock): 33,386,070
Capital: ¥4,819 million
Additional paid-in capital: ¥4,949 million(Omissions)Among the disclosure items, lease transaction related information, financial products related information, marketablesecurities information, derivatives trading related information, employee retirement benefit information, deferred tax
accounting information, related party transaction information are omitted in this financial release as disclosure of theseinformation is not necessarily required.

- 42 -

5. Non-consolidated Financial Statements(1) Non-Consolidated Balance sheet(Million yen)Previous Fiscal Year
(Fiscal year ended March 31, 2010)

Current Fiscal Year
(Fiscal year ended March 31, 2011)

Cash and cash equivalents

3,005

8,579

Trade accounts receivable

32

177

AssetsCurrent assets

Accounts receivable-other179*1, *2

Real estate held for sale

*1, *2

Real estate in progress held for sale

5,862
19,930137*1, *2*1, *2

5,237
23,534

Joint project investments

100－

Expense in advance

525

884

Short-term loans receivable

38

38

Deferred tax assets

935

794

Other

295

786

Allowance for doubtful accounts

(33)

(33)

30,87240,136

Total current assets
Noncurrent assets
Property, plant and equipment*1, *2

Buildings
Accumulated depreciation*1, *2(2,086)

Buildings (net)

Accumulated depreciation

130

4,438
*1, *2(57)

Structures (net)

Accumulated depreciation

180

47
*1

(137)

fixtures (net)Land
Lease assets
Accumulated depreciation
Lease assets (net)*1

Construction in progress
Total Property, plant and equipment

14,794

141
(116)

43
*1, *299(52)

72*1, *2Tools, instruments and fixtures

6,465(2,026)

5,225*1, *2

Structures

Tools, instruments and

7,312

25
*1, *2

13,096

3

3

(1)

(2)

2

1

19

－

20,157

17,608Intangible assets*1

Land lease rights
Software

224

*1

224

30

141

Lease assets

57

41

Software in progress

161

63

Total intangible assets

473

470

Investments and other assets
Investment securities

122*1

Stocks of subsidiaries and affiliates- 43 -

82

120
*1

82

(Million yen)Previous Fiscal Year
(Fiscal year ended March 31, 2010)
Investments in capital

5

Current Fiscal Year
(Fiscal year ended March 31, 2011)1

Membership

14

14

Security deposits and guarantee deposits

225

285

Long-term loans

235

148

Long-term accounts receivable

243

225

Other

26

27

Allowance for doubtful accounts

(303)

(271)

Total investments and other assets

650

634

Total fixed assets

21,281

18,713

Total assets

52,15458,850

1,327

2,112

Liabilities
Current liabilities
Notes payable trade
Accounts payable trade*1

Short-term loans payable*1

Current portion of long-term loans payable

*1

1,511

1,613

5,205

*1

3,696

18,860*1

16,856

Lease obligations

17

17

Accounts payable

524

687

Accounts payable trade

59

78

Income taxes payable

729

Advances

742

2,308

Deposits payable

69

225

Provision received in advance

17

10

Provision for bonuses

83

120

Other

228

19

28,654

27,775

Total current liabilities
Noncurrent liabilities*1Long-term loans payable

15,196*1

13,230

Security deposits and guarantee deposits

707

582

Lease obligations

45

27

Provision for employees’ retirement benefits

85

103

Provision for directors’ retirement benefits

35

52

Asset retirement obligations

－

18

Other

5

5

Total noncurrent liabilities

16,075

14,021

Total liabilities

44,73041,797- 44 -

(Million yen)Previous Fiscal Year
Current Fiscal Year
(Fiscal year ended March 31, 2010) (Fiscal year ended March 31, 2011)
Net assets
Shareholders’ equity
Capital stock

2,442

4,819

Legal capital surplus

2,440

4,817

Other capital surplus

132

132

Total capital surplus

2,572

4,949

92

92

General reserves

1,681

2,681

Retained earnings brought forward

1,950

5,823

3,724

8,597

Treasury stock(1,295)(1,295)

Total shareholders’ equity

7,444

17,071

(21)

(18)

(21)

(18)

7,423

17,05352,15458,850Capital surplus

Retained earnings
Legal retained earnings
Other retained earnings

Total retained earnings

Valuation and translation adjustments
Other Valuation difference on available-for-salesecurities

Total valuation and translation adjustments
Total net assets
Total liabilities and net assets- 45 -

(2) Non-Consolidated Statements of Income(Million yen)Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Net sales
Real estate net sales

47,51541,703

Income from real estate lease

1,061

1,173

Other income

115

194

Total net sales

48,691

43,071

Cost of sales*1

Real estate cost of sales
Real estate leasing costs
Total cost of sales
Gross profit (loss)

38,569

*1

709

692

39,27930,2129,412*2Selling, general and administrative expenses
Operating income (loss)

29,5196,692

12,859
*2

6,327

2,720

6,532

Interest income

1928

Dividend income

59Commissions received

86

117

Dividend income from anonymous association

110－

Personnel transfer expenses

23

0

Miscellaneous income

5937

Total non-operating income

304

193

1,076

1,176

Stock issuance cost－

126

Miscellaneous loss

49

91

Total non-operating expense

1,126

1,394

Ordinary income (loss)

1,898

5,331

Reversal of provision for loans

43

40

Reversal of provision for bonuses

270Gain on prior periods adjustment

－

49

1

－

232

1

304

92

Non-operating income

Non-operating expenses
Interest expenses

Extraordinary income

Gain on sale of investment securities*3

Gain on liquidation of anonymous association
Total extraordinary income- 46 -

(Million yen)Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Extraordinary loss
*4

Loss on disposal of fixed assets
Loss on adjustment for changes of accounting
standard for asset retirement obligations
Loss on valuation of investment securities

25

*4

2

−

7

−

8

Loss on valuation of investments in capital

20

Office relocation expenses

8

－

−

Loss on sale of investment securities*5

Impairment loss

825

2
*5

251

−

0

Total extraordinary loss

862

273

Net income (loss) before income taxes

1,341

5,150

Income taxes current

2

5

Refund of income taxes(9)－

Income taxes deferred

(603)

141

Total Income taxes

(609)

146

Net income (loss)

1,950

5,003

Other

- 47 -

Cost of Sales Statement
1. Real Estate Cost of Sale
Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)
Segment

Note
No.

Land purchase cost

2, 3Outsourced construction
Other cost
Real Estate Cost of Sale
(Note)

Amount(Million yen)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Composition ratio(%)

Amount(Million yen)

Composition ratio(%)

10,030

26.0

6,578

22.3

27,614

71.6

22,125

75.0

924

2.4

815

2.7

38,569100.0

29,519100.0

1. The method for cost accounting is based on individual cost accounting.
2. The land purchase cost for the previous fiscal year includes loss on valuation of inventories of ¥(3,448)
million.
3. The land purchase cost for the current fiscal year includes loss on valuation of inventories of ¥(4,890) million.

2. Real Estate Leasing Costs

Segment
Taxes and public charges

Note
No.

Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)
AmountComposition ratio(Million yen)
(%)
124
17.5

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)
AmountComposition ratio(Million yen)
(%)
127
18.5

Depreciation andamortization

295

41.6

273

39.4

Administrative andmaintenance expenses
Real estate leasing costs

290
709

40.9
100.0

291
692

42.1
100.0

- 48 -

(3) Non-Consolidated Statement of Changes in Shareholders’ Equity(Million yen)Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Shareholders’ capital
Capital stock
Balance at end of the previous period

2,442

2,442

Issuance of new shares

－

2,376

Total changes of items during the period

－

2,376

2,442

4,819

2,440

2,440

Issuance of new shares

－

2,376

Total changes of items during the period

－

2,376

2,440

4,817

132

132

Changes of items during the period

Balance at end of the period
Capital surplus
Legal capital surplus
Balance at end of the previous period
Total changes of items during the period

Balance at end of the previous period
Other capital surplus
Balance at end of the previous period
Changes of items during the period

－

－

132

132

2,572

2,572

Issuance of new shares

－

2,376

Total changes of items during the period

－

2,376

2,572

4,949

92

92

－

－

92

92

12,700

1,681

－

1,000

Total changes of items during the period
Balance at end of the previous period
Total capital surplus
Balance at end of the previous period
Changes of items during the period

Balance at end of the period
Retained earnings
Legal retained earnings
Balance at end of the previous period
Changes of items during the period
Total changes of items during the period
Balance at end of the period
Other retained earnings
General reserves
Balance at end of the previous period
Changes of items during the period
Funding for general reserves
Withdrawal from general reserves(11,018)－

Total changes of items during the period(11,018)

1,000

1,681

2,681

Balance at end of the period- 49 -

(Million yen)Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Retained earnings brought forward
Balance at the previous period(11,018)

1,950−(1,000)11,018

－

−

(130)

Net income ( loss)

1,950

5,003

Total changes of items during the period

12,969

3,873

1,950

5,823

1,773

3,724

Funding for general reserves−－

Dividends from surplus

−

(130)

Net income ( loss)

1,950

5,003

Total changes of items during the period

1,950

4,873

Balance at end of the period

3,724

8,597

(1,295)(1,295)Purchase of treasury stock(0)－

Total changes of items during the period(0)－(1,295)(1,295)

5,494

7,444

Issuance of new shares

−

4,753

Dividends from surplus

−

(130)

1,950

5,003

(0)

－

1,950

9,626
17,071

Changes of items during the period
Funding for general reserves
Withdrawal from general reserves
Dividends from surplus

Balance at end of the period
Total retained earnings
Balance at the previous period
Changes of items during the period

Treasury stock
Balance at end of the previous period
Changes of items during the period

Balance at end of the period
Total shareholders’ equity
Balance at end of the previous period
Changes of items during the period

Net income (loss)
Purchase of treasury stock
Total changes of items during the period
Balance at end of the period

7,444- 50 -

(Million yen)Previous Fiscal Year
(From April 1, 2009
To March 31, 2010)

Current Fiscal Year
(From April 1, 2010
To March 31, 2011)

Valuation and translation adjustments
Other Valuation difference on available-for-salesecurities
(7)

(21)

(14)

2

(14)

2

(21)

(18)

(7)

(21)

Net change in items other than shareholders’ equity(net)

(14)

2

Total changes of items during the period

(14)

2

Balance at end of the period

(21)

(18)

5,487

7,423

Issuance of new shares

－

4,753

Dividends from surplus

－

(130)

1,950

5,003

Purchase of treasury stock(0)－

Net change in items other than shareholders’equity(net)

(14)

2

Total changes of items during the period

1,936

9,629

7,423

17,053

Balance at end of the previous period
Changes of items during the period
Net change in items other than shareholders’ equity(net)Total changes of items during the period
Balance at end of the period
Total valuation and translation adjustments
Balance at end of the previous period
Changes of items during the period

Total net assets
Balance at end of the previous period
Changes of items during the period

Net income (loss)

Balance at end of the period- 51 -

Notes Regarding to Assumptions for the Going Concern
Not applicable.

- 52 -

(5)Significant Accounting Policies
Previous fiscal year
(From April 1, 2009
To March 31, 2010)

Item
1. Assessment standards
and methods formarketable securities

(1)

(2)

(3)

2. Assessment standards
and methods forinventories

Current fiscal year
(From April 1, 2010
To March 31, 2011)

Bonds held to maturity
Amortized cost method (straight-line
method)Equities of the subsidiaries and affiliates
Cost method based on the moving averagemethodOther marketable securitiesThose at market value:
Market value method based on market
value at date of accounting (valuationdifference is reported as a component of
net assets, and the cost of securities sold is
calculated using the moving averagemethod)Those not at market value:
Cost method based on the moving averagemethod, provided however, thatanonymous association contributions tocapital are based on the specific cost
method; details are given in “6. Important
items related to the creation of otherfinancial statements, (ii) Accounting
procedures for anonymous association
contributions to capital”.

Cost method based on specific cost method(Balance sheet amounts are calculated
according to a write-down method based on
decreased profitability)- 53 -(1)

Bonds held to maturity
Same as in the left column.

(2)

Equities of the subsidiaries and affiliates
Same as in the left column.

(3)

Other marketable securitiesThose at market value:Same as in the left column.

Those not at market value:Same as in the left column.

Same as in the left column.

Previous fiscal year
(From April 1, 2009
To March 31, 2010)

Current fiscal year
(From April 1, 2010
To March 31, 2011)

Property, plant and equipment(excluding lease assets)(i) Buildings
The declining balance method isapplied for headquarters, offices and otherbuildings.
Durability and residual value aredetermined pursuant to the standards
stipulated in the corporation tax law.
However, the straight-line method isused for buildings (excluding fixtures)acquired after April 1, 1998.
With respect to the rental buildings, inorder to logically accommodate theprofits, an estimate of economically usable
period is set and a straight-line method
based upon individual durability is applied.
The individual durability for rentalbuildings is shown below:(1) Property, plant and equipment (excluding
lease assets)(i) Buildings
Same as in the left column.

Item
3. Depreciation
method for n assets(1)

Individual
durability (Years)
Reinforced concretebuildings
Steel-framebuildings
Wood buildings
Attached structures

40
30
15
15

(ii) Property, plant and equipment other thanthose given above
The declining balance method is applied.
Durability and residual value aredetermined pursuant to standards
stipulated in the corporation tax law.
(2) Intangible assets (excluding lease assets)
A straight-line method based on the
expected usable period (five years) has
been applied for all software used.
(3) Lease assets
Lease assets related to finance and leasetransactions not involving transfer ofownership
A straight-line method was applied
where the lease term was set as the
durability and the residual value was set as
zero.
Amongst finance and leasetransactions not involving transfer ofownership, those lease transactions
starting prior to March 31, 2008 follow
accounting procedures based on methods
for normal lease transactions- 54 -(ii) Property, plant and equipment other thanthose given above
Same as in the left column.

(2)Intangible assets (excluding lease assets)
Same as in the left column.

(3)

Lease assets
Same as in the left column.

Item
4. Standards forrecordingimportantallowances

5. Important items
related to thecreation of otherfinancialstatements

Previous fiscal year
(From April 1, 2009
To March 31, 2010)

Current fiscal year
(From April 1, 2010
To March 31, 2011)(1) Allowance for doubtful accounts
In order to provide allowances for loss
resulting from bad debt, the loan loss
ratio is used for general debt, and specified
claims, such as claims with default
possibility, have their recoverability
evaluated individually and the expectedirrecoverable amount is recorded.
(2) Provision for bonuses
The expected amount of future
payments for employee bonuses is recorded
as an expense in the current fiscal year.
(3) Provision for directors’ bonuses
The expected amount of future
payments for directors’ bonuses is recorded
as an expense in the current fiscal year.
(4) Provision for employees’ retirement benefits
Recording provision for employees’
retirement benefits are based on theretirement allowance at the end of the current
consolidated fiscal year.
(5) Provision for directors’ retirement benefits
Director retirement benefits are based oninternal regulations which govern such
benefits and are recorded as a necessary
payment at the end of the current fiscal
year.

(1) Allowance for doubtful accounts
Same as in the left column.

(1) Accounting procedures for consumption taxes
Accounting procedures for national andlocal consumption taxes are based on the
tax excluded method. Also, consumption
taxes not eligible for asset-related deduction
are treated as period costs for the
consolidated fiscal year in which theyoccur.
(2) Accounting procedures for anonymous
association contributions to capitalWith regard to anonymous association
contributions to capital, the amount ofequity for the assets of anonymous
association is recorded as “investment
securities”. When capital injections are
made to anonymous association, it isrecorded as an “investment security” and theequity-equivalent of net profit or loss for the
anonymous association is recorded as“anonymous association allocatedprofit/loss” and “investment securities” areadjusted by an equivalent amount;repayment of contributions to capital fromthe manager is deducted from “investment
securities”.

(1) Accounting procedures for consumption taxes
Same as in the left column.

- 55 -(2) Provision for bonuses
Same as in the left column.
(3) Provision for directors’ bonuses
Same as in the left column.
(4) Provision for employees’ retirement
benefits
Same as in the left column.

(5) Provision for directors’ retirement benefits
Same as in the left column.

(2) Accounting procedures for anonymous
association contributions to capitalSame as in the left column.

(6) Changes in Significant Accounting Policies
Previous fiscal year
(From April 1, 2009
To March 31, 2010)────────

Current fiscal year
(From April 1, 2010
To March 31, 2011)(Application of accounting standards for asset disposal
liabilities)
Starting this fiscal year, the Company is adopting the
Accounting Standard for Asset Disposal Liabilities (BusinessAccounting Standards No.18; March 31, 2008) and theApplication Guideline for the Accounting Standard for Asset
Disposal Liabilities (Business Accounting Standards No. 21;
March 31, 2008).
This change lowered operating income and ordinary income by¥2 million each, and pre-tax net income by ¥9 million.

(7) Changes in Presentation
Previous fiscal year
(From April 1, 2009
To March 31, 2010)────────

Current fiscal year
(From April 1, 2010
To March 31, 2011)────────- 56 -

(8) Notes on Non-Consolidated Financial Statements(Balance Sheets)
Previous fiscal year
(Fiscal year ended March 31, 2010)

Current fiscal year
(Fiscal year ended March 31, 2011)*1 Assets pledged as collateral and the corresponding liabilities
are shown below.

*1 Assets pledged as collateral and the corresponding liabilities
are shown below.

(1) Assets pledged as collateral(1) Assets pledged as collateral

Real estate held for sale
Real estate in progress held for sale
Buildings
Structures
Tools, instruments and fixtures
Land
Construction in progress
Intangible assets (land lease rights)
Affiliates equities
Total

5,467 million yen
18,3555,205
66
014,75319224
30
44,123

Real estate held for sale
Real estate in progress held for sale
Buildings
Structures
Tools, instruments and fixtures
Land
Intangible assets (land lease rights)
Affiliates equities
Total(2) Liabilities corresponding to the above(2) Liabilities corresponding to the above

Short-term borrowings
Long-term debt due within one year
Long-term borrowings
Accounts payable

Short-term borrowings
Long-term debt due within one year
Long-term borrowings
Total

5,205 million yen
18,37814,936
768

Total
*2

*2

*3 Contingent liabilities
Guarantee of liabilities has been made by the following affiliates
for borrowings from financial institutions:TAFUKO Co., Ltd.

1,214

In line with the decision to shift from development andleasing to resale for some properties, ¥826 million forbuildings, ¥15 million for structures, and ¥1,938 million forland has been transferred to real estate held for sale during thecurrent fiscal year.

*3 Contingent liabilities
Guarantee of liabilities has been made by the following affiliates
for borrowings from financial institutions:
Joint and several guarantees
and liabilities towards
financial institutions until
registration of settlement ofmortgage is completed

million yen

2,665

608

TAFUKO Co., Ltd.

515

42

Aruka Co., Ltd.

49

Marunouchi Servicer Co.,Ltd.
AS PARTNERS Co., Ltd.

154

Aruka Co., Ltd.

41
Total

3,276 million yen
16,835
13,11933,23239,289In line with the decision to shift from development andleasing to resale for some properties, ¥1,204 million forbuildings, ¥45 million for structures, ¥0 million for tools,
instruments and fixtures and ¥1,262 million for land has beentransferred to real estate held for sale during the current fiscal
year.
In addition, in line with the decision to shift from resale todevelopment and leasing for some properties, ¥840 million forreal estate held for sale has been transferred to the ¥299
million for buildings, ¥10 million for structures and ¥530
million for land during the current fiscal year.

Joint and several guarantees
and liabilities towards
financial institutions until
registration of settlement ofmortgage is completed

3,889 million yen
22,7074,268
36
0
12,267224
30
43,423

Total

2,060

- 57 -

3,230

million yen

Previous fiscal year
(Fiscal year ending March 31, 2010)

Current fiscal year
(Fiscal year ending March 31, 2011)*4 Takara Leben Group has reached account overdraft agreements*4 Takara Leben Group has reached account overdraft agreements

and lending commitment agreements with 8 financing
banks in order to efficiently procure operating capital. Basedon these agreements, the unexercised loan balance for theend of the current fiscal year is as follows.

and lending commitment agreements with 8 financing
banks in order to efficiently procure operating capital. Basedon these agreements, the unexercised loan balance for theend of the current fiscal year is as follows.

Total amount of accountoverdraft maximum andlending commitment

Total amount of accountoverdraft maximum andlending commitment

Exercised loan balancedifference

7,234

million yen

4,567

Exercised loan balance

2,666

difference(Statements of Income)Previous fiscal year
(From April 1, 2009
to March 31 2010)*1 The real estate for sale and real estate in progress for sale atthe end of fiscal year indicate the post-write-down amounts
due to decrease in profitability, and the following loss on
valuation of inventories is included in the cost of sales:¥ (3,448) million*2 Major expenses and amounts for selling and generaladministrative expenses are given below.
Advertising expenses
1,709 million yen
Sales commissions
436
Sales promotion expenses
1,909
Salaries
909
Provision for employees’ bonuses
115
Employee retirement benefit costs
19
Provision for directors’ bonuses
32
Depreciation and amortization
50
Provision for directors’ retirement benefits 4
Provision for loans
75

7,602

million yen

3,983
3,619

Current fiscal year
(From April 2010
to March 31, 2011)*1 The real estate for sale and real estate in progress for sale atthe end of fiscal year indicate the post-write-down amounts
due to decrease in profitability, and the following loss on
valuation of inventories is included in the cost of sales:¥ (4,890) million*2 Major expenses and amounts for selling and generaladministrative expenses are given below.
Advertising expenses
2,341 million yen
Sales commissions
125
Sales promotion expenses
1,178
Salaries
879
Provision for employees’ bonuses
161
Employee retirement benefit costs
26
Depreciation and amortization
71
Provision for directors’ retirement benefits 18
Provision for loans
9

The general percentage of costs belonging to sales
expenses is 61%; the general percentage of costs belonging
to general administrative expenses is 39%

The general percentage of costs belonging to sales expenses
is 58%; the general percentage of costs belonging to
general administrative expenses is 42%────────

*3 Gain on liquidation of anonymous association was profit
distribution upon cease of the project for Triumph Assets 2,
Ltd., a special purpose company.

3*4 The breakdown for loss on disposal of fixed assets is
below.
Buildings and structures
24 million yen
Tools, instruments and fixtures
1
Total 25

*4 The breakdown for loss on disposal of fixed assets is
below.
Buildings and structures
2 million yen
Total 2

- 58 -

Previous fiscal year
(From April 1, 2009
to March 31 2010)

Current fiscal year
(From April 2010
to March 31, 2011)*5 Impairment loss
Due to the drop in market value for rental properties
and unutilized assets during the current fiscal year, theCompany has recorded the following assets and asset
groups as impairment losses (¥825 million).
Type

Location
Nishi Ward, Saitama
City, Saitama
Prefecture
Midori Ward, Saitama
City, Saitama
Prefecture
Miyoshi-cho, IrumaGun, Saitama
Prefecture
Koga City, Ibaraki
Prefecture

Land

Unutilized properties

Land

Land
Land

14

2
0

Oyama City, Tochigi
Prefecture

9

Land

Hakone Town,
Ashigarashimo
District, Kanagawa
Prefecture

0Land, buildings, tools,
instruments andfixtures

Kawagoe City,
Saitama Prefecture

4

Land, buildings
Land, buildings
Land, buildings
Land, buildings
Land
TOTAL

Tsukuba City,
Ibaraki Prefecture
Hayama-cho, MiuraGun, Kanagawa
Prefecture
Kawasaki City,
Kanagawa Prefecture
Yokohama City,
Kanagawa Prefecture
Chiyoda Ward,Tokyo
Chuo Ward, TokyoType

Location

Amount(Millionyen)

Land, buildings

Nerima Ward,
Tokyo

78

Land

Chiyoda Ward,
Tokyo

173

Use

1

Land, buildings, tools,
instruments andfixtures

Land, buildings
Rental properties

Amount(Millionyen)

Rental properties

Use*5 Impairment loss
Due to the drop in market value for rental properties
during the current fiscal year, the Company has recorded thefollowing assets and asset groups as impairment losses(¥251 million).

TOTAL

251

15
4
39
371
190
170
825

When broken down, buildings accounts for ¥139 million;
structures account for ¥0 million, tools, instruments and fixtures
account for ¥0 million; and land accounts for ¥685 million.
The rental properties and unutilized assets are grouped perproperty units by the Company.
The recoverable amount is determined according to net salevalue and utility value; net sale value is assessed based on theappraisal value, etc. of a real estate appraiser; and utility value iscalculated at 6% less of future cash flow.

When broken down, buildings accounts for ¥27 million; structures
account for ¥0 million; and land accounts for ¥223 million.
The rental properties and unutilized assets are grouped perproperty units by the Company.
The recoverable amount is determined according to net salevalue and utility value; net sale value is assessed based on theappraisal value, etc. of a real estate appraiser; and utility value iscalculated at 6% less of future cash flow.

- 59 -

(Changes in Shareholders’ Equity)
Previous Fiscal Year (from April 1, 2009 to March 31, 2010)
Items related to Type and Number of Shares of Treasury Stock
Number of Shares at
end of Previous Fiscal
Year(shares)

Increased Number of
Shares for Current
Fiscal Year(shares)

Decreased Number of
Shares for Current
Fiscal Year(shares)Number of Shares at
End of Current
Fiscal Year(shares)Common stock (Note)

982,68289−982,771

Total

982,68289−982,771(Note) The 89 share increase for common treasury stock is a result of purchases of fractional shares.

Current Fiscal Year (From April 1, 2010 to March 31, 2011)
Items related to Type and Number of Shares of Treasury Stock
Number of Shares at
end of Previous Fiscal
Year(shares)

Increased Number of
Shares for Current
Fiscal Year(shares)

Decreased Number of
Shares for Current
Fiscal Year(shares)Number of Shares at
End of Current
Fiscal Year(shares)Common stock (note)

982,771−−982,771

Total

982,771−−982,771(Per Share Information)
Previous fiscal year
(From April 1, 2009
To March 31, 2010)

Current fiscal year
(From April 1, 2010
To March 31, 2011)

Net assets per share
448.36 yen Net assets per share
526.29 yen
Net income per share
117.81 yen Net income per share
165.48 yen
The diluted earnings per share for the year ended March
The diluted earnings per share for the year ended March 20112010 is not disclosed because it is antidilutive.
is not disclosed because it is antidilutive.
(Note) The basis for calculating net income per share:Previous fiscal year
(From April 1, 2009
To March 31, 2010)
Net income per share
Net income (loss) (Million yen)Amount not belonging to the common stockholders(Million yen)
Net income (loss) relating to common stock (Million
yen)
Average number of shares outstanding during theterm (thousands of shares)-60-

Current fiscal year
(From April 1, 2010
To March 31, 2011)
1,950

5,003

−

−

1,950

5,003

16,55730,236

(Important Subsequent Events)
Previous fiscal year
(From April 1, 2009
To March 31, 2010)
Allotment of New Share Subscription Rights without Contribution(the “Free Allotment”)
Pursuant to the resolutions of the Board of Directors on March 5,2010, Takara Leben Group issued new share subscription rights bymeans of Free Allotment. The details are set forth below:
1.
Name of new share subscription rights
Takara Leben Co., Ltd. New Share Subscription Rights No. 1(the “Subscription Rights”)
2.
Allotment method of the Subscription Rights
The Subscription Rights shall be allotted by the method ofFree Allotment, whereby one Subscription Right is being
allotted per one common stock of the Company (other than the
Company’s treasury shares) held by the respective shareholderthat are registered or recorded in the Company’s shareholder
registry as of March 31, 2010 (the “Allotment Record Date”).
3.
Total number of the Subscription Rights
16,557,562
4. Effective Date of the Free Allotment
April 1, 2010
5.
Description of the Subscription Rights(1) Type and number of underlying shares of the Subscription
Rights
One share of the common stock of the Company shall be
issued for each Subscription Right.
(2) Amount to be paid in upon exercise of the Subscription
Rights
300 yen shall be paid for one Subscription Right upon its
exercise.
(3) Exercise Period of the Subscription Rights
The period shall be from May 6, 2010 to May 31, 2010.
(4) Increase in common stock and capital reserve upon exerciseof Subscription Rights and issuance of new shares(i) The amount of capital to be increased upon exerciseof Subscription Rights and issuance of new common
stocks shall be equivalent to one half of the
maximum amount of capital increase calculated inaccordance with Article 17 Section 1 of the
Corporate Calculation Rules, with any fraction ofless than one yen as a result of such calculation
rounded up to the nearest one yen.
(ii) The amount of capital reserve to be increased upon
exercise of the Subscription Rights and issuance of
new common stocks shall be the maximum amountof capital increase minus the amount of capitalincreased, as referred to in above (i).
6. Uses of proceeds
All of the proceeds will be used to acquire real properties
including used real properties and condominiums underconstruction for the business of sale of newly built
condominium, renewal business (resale of used condominiums)
and resale business (resale of acquired condominiums) for the
fiscal year ended March 31, 2011.
(Exercise of the Subscription Rights)
Takara Leben Co., Ltd. New Share Subscription Rights No. 1(the “Subscription Rights”) were exercised by May 31, 2010 asfollows;-61-

Current fiscal year
(From April 1, 2010
To March 31, 2011)────────

1.

Total number of the exercised Subscription Rights
15,845,737

2.

Type and amount of new issuance
Common stock: 15,845,737 shares

3.

Issue price
300 yen per share

4.

Total amount of issuance¥4,753 million

5.

Inclusion to capital¥2,376 million

The exercise of the Subscription Rights results in;
Total share outstanding (common stock): 33,386,070 shares
Capital: ¥4,819 million
Capital reserve: ¥4,817 million-62-

6. Other(1) Changes of Executives
This information will be disclosed as soon as it is confirmed.
(2) Production, Orders Received and Sales(i) Number of Units Contracted
Previous consolidated fiscal year
Current consolidated fiscal year
(From April 1, 2009
(From April 1, 2010
To March 31, 2010)
To March 31, 2011)
Segment
AmountAmountNumber of units
Number of units(Million yen)
(Million yen)
Real estate sales business
1,519
44,774
1,723
56,364
Total
1,519
44,774
1,723
56,364(Note) The above amounts do not include consumption and other taxes.

Year-on-year (%)

125.9
125.9

(ii) Balance of contract
Year end for the previous consolidated Year end for the current consolidated
fiscal year
fiscal year
(As of March 31, 2010)(As of March 31, 2011)
Segment
Year-on-year (%)
AmountAmountNumber of units
Number of units(Million yen)
(Million yen)
Real estate sales business
309
10,968760
25,384
231.4
Total
309
10,968760
25,384231.4(Note) The above amounts do not include consumption and other taxes.

(iii) Net Sales
Current consolidated fiscal year
(From April 1, 2010
Year-on-year (%)
Segment
To March 31, 2011)(Million yen)
Real estate sales business
41,948
Real estate rental business
1,426Management services business
2,138
Total for reportable segments
45,513
Other business
1,370
Total net sales
46,884(Note) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption and other taxes.

This document contains certain forward-looking statements, regarding outlooks, forecasts, expectations, plans, targets, etc.,
in respect of financial conditions or performance of the Company or the Group. These statements are based on the
Company’s judgment and understanding at the time of preparation of this document, and a number of factors could cause
the Company’s actual performance or other results to differ materially from those contained in this document.
This document is not an offer to sell, or solicitation of any offer to buy, securities in the United States. The securities may
not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities
Act of 1933, as amended.
This document is an English translation of the original Japanese document, prepared solely for the convenience of andreference by overseas investors. If there exists any discrepancies between the original Japanese language and the English
translation, the Japanese language will always prevail. Takara Leben CO., LTD. shall not be liable for this translation or
any loss or damage arising from this translation.

-63-