Consolidated Financial Report for the Fiscal Year Ended March 31, 2019 (Japan GAAP)
Company name:May 16, 2019
Stock listed on: Tokyo Stock
Exchange, First Section

Takara Leben Co., Ltd.

Securities code:
Representative:

8897
URL https://www.leben.co.jp
Kazuichi Shimada, President, Representative Director
Masashi Yamamoto, Director, Executive officer of General Planning
Contact:
Division
Scheduled date of annual
Scheduled date forgeneral meeting ofJune 26, 2019
commencement ofshareholders:
dividend payment:
Scheduled date for release ofJune 26, 2019
annual securities report:
Supplementary materials on
financial results: Yes
Briefing for financial results: Yes(for institutional investors and analysts)

Tel. +81-3-6551-2130
June 27, 2019

(Amounts are rounded down to the nearest million)
1. Consolidated Operating Results for the Fiscal Year Ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Consolidated Operating Results(Percentage figures represent year-on-year changes)
Profit (loss) attributable to
Net sales
Operating profit (loss)
Ordinary profit (loss)
owners of parent
Millions ofMillions ofMillions ofMillions of
%
%
%
%
yen
yen
yen
yen
Year ended March
132,005
19.1
10,046
9,027
6,426
△20.3
△23.4
△12.8
31, 2019
Year ended March
110,851
7.0
12,59721.7
11,792
24.2
7,367
20.6
31, 2018(Note)
Year ended
Year ended
milli
milli
Comprehensive
March 31,
¥6,408(-16.0%)March 31,
¥7,624(24.5%)
onon
income:2019
2018
Profit per share
Year ended March
31, 2019
Year ended March
31, 2018(Reference) Equity in net
income of affiliates:

Diluted profit per share

Ratio of earnings Ratio of ordinary Ratio of operating
to shareholders’ income to total
income to net
equityassets
sales
%
%
%

Yen

Yen

59.33

59.00

14.3

5.0

7.6

68.12

67.80

18.6

7.4

11.4

Year ended
March 31,
2018

¥46

Year ended
March 31,
2019

milli
on

¥(72)

(2) Consolidated Financial Position
Total assets
Millions of yen
As of March 31,
184,8932019
As of March 31,
177,5882018
As of(Reference)
March 31,¥47,341
Shareholders’ equity:
2019

Net assets
Millions of yen%

Net assets per share
Yen

47,73425.6

436.6842,90724.1

394.90As ofMarch 31,
2018

milli
on

milli
on

Equity ratio¥42,747

million(3) Consolidated Cash Flow
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of year
Millions of yen
Millions of yen
Millions of yen
Millions of yen
Year ended March
22,4283,427
20,642△34,347
31, 2019
Year ended March
9,869
24,012
29,042△34,46331, 2018
2. Dividends－

1 －Annual dividends per share
Q1

Year ended March 31,
2018Year ended March 31,
2019Year ending March 31,
2020 (forecast)

Q2

Q3

Year-end

Total

Ratio of
Dividend
dividends toTotal dividends
payout ratio net assets(annual)(consolidated) (consolidated)
Millions of
%
%
yen

Yen

Yen

Yen

Yen

Yen

－

5.00

－

11.00

16.00

1,731

23.5

4.3

－

5.00

－

11.00

16.00

1,734

27.0

3.8

－

6.00

－

13.00

19.00

25.7

3. Forecast for Consolidated Financial Results for the Year Ending March 31, 2020 (From April 1, 2019 to March 31, 2020)(Percentage figures represent year-on-year changes)
Profit (loss)
Operating profit
Net sales
Ordinary profit (loss) attributable to owners Profit per share(loss)of parent
MillionMillionMillionMillion%%%%Yens of yens of yens of yens of yen
Full year
160,000
21.2
13,00029.4
11,800
30.7
8,000
24.5
73.79

－

2 －

* Notes(1) Changes in significant subsidiaries during the current fiscal year (Changes in specified subsidiaries resulting in changes in scopeof consolidation): None
New: None (Name) Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: None(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatements: None
(3) Number of shares issued and outstanding (common stock)(i) Number of shares issued and outstanding at
As of March 31,
share
121,000,000
end of year (including treasury stock)
2019
s
sh
As of March
12,587,30(ii) Number of treasury stock at end of yearare31, 2019
7sYear ended
share(iii) Average number of shares during the year
108,321,406
March 31, 2019s

As of March 31,
2018

sha
124,000,000
res

As of March
31, 2018

15,750,907

Year ended
March 31, 2018sha
108,155,138
res

sha
res

* This Consolidated Financial Report does not need to be audited by a certified public accountant or audit corporation.
* This Consolidated Financial Report does not need to be audited by a certified public accountant or audit corporation.
(Caution concerning forward-looking statements etc.)
The forward-looking statements presented above are based on the information available at the time of the release of this report andare not intended to guarantee that the Company will achieve such figures. Actual results may differ from these forecasts due tovarious factors in the future.

－

3 －○Contents of Attachment
1. Overview of Operating Results, Etc.………………………………………………………………………………………
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2019……………………………………………
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2019………………………………………………
(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2019………………………………………………………
(4) Future Outlook…………………………………………………………………………………………………
2. Basic Concept of Selection of Accounting Standards…………………………………………………………………
3. Consolidated Financial Statements and Major Notes………………………………………………………………………
(1) Consolidated Balance Sheet………………………………………………………………………………………
(2) Consolidated Statements of Income and Comprehensive Income………………………………………………………
Consolidated Statement of Income…………………………………………………………………………………
Consolidated Statement of Comprehensive Income………………………………………………………………
(3) Consolidated Statement of Changes in Shareholders’ Equity……………………………………………………………
(4) Consolidated Statement of Cash Flows…………………………………………………………………………
(5) Notes to the Consolidated Financial Statements………………………………………………………………………
(Notes Regarding the Going Concern Assumption)……………………………………………………………………
(Consolidated Balance Sheet)………………………………………………………………………………………
(Consolidated Statement of Income)…………………………………………………………………………………
(Rental Properties, etc.)………………………………………………………………………………………………
(Segment Information)……………………………………………………………………………………………
(Per Share Information)……………………………………………………………………………………………
(Significant Subsequent Events)…………………………………………………………………………………………
4. Other…………………………………………………………………………………………………………………
(1) Changes of Officers………………………………………………………………………………………………………
(2) Production, Orders Received and Sales…………………………………………………………………………………

－

4 －

2
2
3
4
4
6
7
7
9
9
10
11
13
15
15
15
15
16
17
20
20
21
21
21

1. Overview of Operating Results, Etc.
(1) Overview of Operating Results for the Fiscal Year Ended March 31, 2019
During the fiscal year under review, the Japanese economy continued to recover moderately amid improved corporate
earnings and a stronger employment and income situation, backed by a range of fiscal measures implemented by thegovernment. Meanwhile, the global economy still required attention, given factors such as uncertainty due to geopolitical risks
in neighboring countries, the trends of US economic policies and growing tension in international situations, among others.
In the real estate sales market in which the Company operates, sales are increasingly divided between weak and strong
results due to persistently high selling prices caused by soaring condominium construction costs. Upward trends are seen in
demand for convenient locations and daily life and compact condominiums, reflecting changes in every end-user lifestylecaused by an increase in single-person households and dual-income households and changes in consumer values. Meanwhile,
demand in regional urban centers remains strong, thanks in part to the demand of active seniors, which continues to be high,and the trend of compact city development
The number of nationwide condominium units sold reached the 80,000 level for the first time in four years, reflecting aslight increase in the number of units sold in the Tokyo metropolitan area. Under these conditions, the Company ranked eighthin the condominium developer ranking based on number of condominium units sold, ranking among the top 10 for the sixth
consecutive year, and plays the role of a stable supplier in the real estate sales market as an independent general real estatedeveloper.
In this environment, the Company is ensuring stable earnings by renewing its mid-term management plan on May 14, 2018
and responding promptly and appropriately to changes in its external and internal environments.
With its “Leben” series of self-designed new built-for-sale condominiums as its main brand, the Company will continue topromote business activities with an emphasis on its customers by working on product plans that accurately capture the timebackground, always adhering to its basic concept of “ideal, affordable housing that anyone can buy with confidence” as well as
its corporate mission of “thinking of happiness; creating happiness.”
In the fiscal year under review, the Company recorded consolidated net sales of ¥132,005 million (up 19.1% year on year),consolidated operating profit of ¥10,046 million (down 20.3% year on year), consolidated ordinary profit of ¥9,027 million(down 23.4% year on year) and profit attributable to owners of parent of ¥6,426 million (down 12.8% year on year).
(i) Performance by Business Segment<Real Estate Sales Business>
Revenues from the real estate sales business amounted to ¥104,823 million, up 32.1% year on year, as a result of revenuesof ¥57,203 million from the sales of new built-for-sale condominiums, revenues of ¥33,502 million from the sale of profitgenerating real estate, and revenues of ¥14,117 million from the sales of new detached houses and used condominiums, etc.
<Real Estate Rental Business>
Revenues from the real estate rental business amounted to ¥5,829 million, up 6.5% year on year, including rent revenues
from the rental of apartments, condominium units and offices.
<Real Estate Management Business>
Revenues from the real estate management business representing management fees from 54,036 units under management
amounted to ¥4,512 million, up 12.8% year on year.
<Electric power generation business>
Revenues from the electric power generation business amounted to ¥10,794 million, down 40.8% year on year, including
revenue from sales of power generation facilities that were already operating and revenues from the sale of electricity generated
by other electric power generation facilities.
<Other Business>
Revenues from other business totaled ¥6,045 million, up 59.2% year on year, including revenues from contracts forconstruction works, orders for large-scale repair works, and commission income, etc.

－

5 －(ii) Performance Review by Item
<Net Sales>
In the real estate sales business, net sales amounted to ¥104,823 million, reflecting sales of 1,656 units of new built-for-salecondominiums (including JV equity interests), profit-generating real estate, as well as new detached houses and usedcondominiums.
In the real estate rental business, net sales stood at ¥5,829 million due to rental revenues of apartments, condominiums andoffices, etc.
In the real estate management business, net sales came to ¥4,512 million due to management fees, etc. from 54,036 units
managed.
In the power generation business, net sales were ¥10,794 million, including revenues from sales of power generation
facilities that were already operating and revenues from the sale of electricity generated by other electric power generation
facilities.
In other business, net sales were ¥6,045 million, reflecting contracts for construction works, orders for large-scale repair
works, and commission income, etc.
As a result, consolidated net sales in the fiscal year under review increased to ¥132,005 million, up 19.1% year on year.
<Cost of Sales>
Cost of sales increased 23.6% year on year, to ¥105,119 million, mainly due to an increase in sales of the real estate sales
business.
<Selling, General and Administrative Expenses>
Selling, general and administrative expenses increased 27.7% year on year, to ¥16,839 million, chiefly owing to higher
advertising expenses associated with increase in units sold and an increase in personnel associated with business expansion.

<Non-Operating Income and Expenses>
Non-operating income decreased 21.0% year on year, to ¥310 million, due largely to a decrease of equity in profit ofaffiliates.
Non-operating expenses rose 10.9% from the previous fiscal year, to ¥1,328 million, which is attributable to equity method
investment loss of affiliates and an increase in borrowed average balance during the year associated with new borrowings for
project funds.
<Extraordinary Gains and Losses>
Extraordinary gains amounted to ¥312 million due to the recording of sales of investment securities and compensation
received for damage.
Extraordinary losses decreased 98.5% year on year, to ¥14 million, reflecting the posting of Group company officerelocation expenses.
As a result, consolidated net sales amounted to ¥132,005 million, up 19.1% year on year, consolidated operating profit cameto ¥10,046 million, down 20.3% year on year, consolidated ordinary profit was ¥9,027 million, down 23.4% year on year, andprofit attributable to owners of parent was ¥6,426 million, down 12.8% year on year, in the fiscal year under review.
(2) Overview of Financial Position for the Fiscal Year Ended March 31, 2019
With regard to the status of consolidated assets, liabilities and net assets of the Group for the fiscal year under review, total
assets increased ¥7,304 million from the end of the previous fiscal year, to ¥184,893 million, due mainly to purchases of businessassets.
<Current assets>
Current assets fell ¥4,418 million from the end of the previous fiscal year, to ¥98,512 million, primarily reflecting a decreasein cash and deposits associated with the payment of notes payable.

－

6 －<Non-current assets>
Non-current assets grew ¥11,668 million from the end of the previous fiscal year, to ¥86,286 million, mainly due to thepurchase of business assets.
<Current liabilities>
Current liabilities increased ¥1,662 million from the end of the previous fiscal year, to ¥58,539 million, chiefly owing to
the reclassification of short-term and long-term loans payable.
<Non-current liabilities>
Non-current liabilities grew ¥814 million from the end of the previous fiscal year, to ¥78,619 million, largely due to anincrease in long-term advances received included in Other.
<Net assets>
Net assets increased ¥4,827 million from the end of the previous fiscal year, to ¥47,734 million, chiefly because the recorded
amount of profit attributable to owners of parent exceeded amounts such as dividends of surplus.

－

7 －(3) Overview of Cash Flow for the Fiscal Year Ended March 31, 2019
Cash and cash equivalents (“funds”) as of March 31, 2019 amounted to ¥20,642 million, a decrease of ¥8,399 million fromMarch 31, 2018.
<Cash flows from operating activities>
Net cash provided by operating activities was ¥22,428 million (cash provided of ¥9,869 million in the previous fiscal year).
The major component was a decrease in inventories.
<Cash flows from investing activities>
Net cash used in investing activities was ¥34,347 million (cash used of ¥34,463 million in the previous fiscal year), mainly
due to the purchase of property, plant and equipment.
<Cash flows from financing activities>
Net cash provided by financing activities was ¥3,427 million (cash provided of ¥24,012 million in the previous fiscal year),which was primarily attributable to an increase in loans payable.
(Reference) Changes in Cash Flow Indicators
FY2017/3

FY2018/3

FY2019/3

Equity ratio (%)

26.2

24.1

25.6

Equity ratio at market value (%)

38.3

28.0

20.2

Debt repayment period (years)

3.5

10.8

5.0

Interest coverage ratio (times)

24.0

9.8

20.2

Equity ratio: Shareholders’ equity/Total assets
Equity ratio at market value: Equity market capitalization/Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows/Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debts recorded on the consolidated balance sheet on which interest is paid.
(4) Future Outlook
Based on the new medium-term management plan announced on May 14, 2018, the Company has estimated the following
business targets for the next fiscal year.
In the sales operation of new built-for-sale condominiums in the real estate sales business, the Company expects the deliveryof 1,950 units by promoting active supply in the downtown areas in local cities. In the newly built detached housing segment,
the Company expects the delivery of 200 units. In the renovation and resale segment, the Company plans to accumulate thenumber of units held for the time being with the aim of building stable business cycles. In the real estate securitization segment,
the Company will replace assets held while actively acquiring and developing income property.
In the real estate rental business, the Company will seek to establish a more stable stock business through carefully selectedpurchases.
In the real estate management business, the Company has set the target number of units managed under consignment at 58,800
units and aims to further expand peripheral operations such as large-scale repair works.
In the electric power generation business, the Company will purchase carefully selected properties and sell power-generation
facilities that are already in operation.

－

8 －As a result of the above, the Company forecasts the financial results for the next fiscal year as follows:
Net sales:¥160,000 million(up

21.2% year on year)

Operating profit:
Ordinary profit:¥13,000 million¥11,800 million

(up
(up

29.4% year on year)
30.7% year on year)

Profit attributable to owners of parent:¥8,000 million(up

24.5% year on year)(New built-for-sale condominium business: Number of units to be delivered and contracts signed)
Number of units to be Of which, number
delivered in FY2020/3 of contracts signed(units)
As of March 31, 2019

(units)

1,950

792

－

9 －

Number of contracts signed of
the number of units to bedelivered in or after FY2021/3(units)151

Total number ofcontracts signed(units)943

2. Basic Concept of Selection of Accounting Standards
The Group has adopted the Japanese accounting standards to ensure comparability with our domestic competitors.

－

10 －

3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2018)(March 31, 2019)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Real estate for sale
Power generation facilities for sale
Real estate for sale in process
Power generation facilities in process
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

－

11 －

29,223
1,539
20,2794,090
44,068
29
129
3,680
△110
102,931

21,1652,071
18,821－49,860
－
519
6,192
△118
98,512

20,866△2,584
18,281
5,550
△881
4,669
291
△115
176
35,899
273
△92
180
7,132
66,34019,933△1,871
18,061
16,176△1,96014,216334△175
159
35,602
255
△109
145
7,039
75,224

1,265
27
516
1,808

1,375
13
451
1,840

2,501
1
265
3,707
△6
6,468
74,61838
177,588

4,597
0
727
3,904
△9
9,220
86,286
94
184,893(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2018)(March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Advances received
Provision for bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Bonds payable
Lease obligations
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

－

12 －

15,786
18,38912,838
55
3,547
2,177
363
525
3,193
56,876

7,790
17,831
19,743
40
2,760
4,274
454
447
5,195
58,53975,015
200
164
73
436
22
17
1,873
77,804
134,681

73,882
200
123
99
543
23
134
3,613
78,619137,158

4,819
4,823
38,717△5,87542,485

4,819
4,817
42,299△4,69547,241

262
－
262
159
－
42,907
177,588

121
△21
100
196
197
47,734
184,893

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, (From April 1, 2018 to March 31,
2018)
2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission fee
Share of profit of entities accounted for using equity
methodMiscellaneous income
Total non-operating income
Non-operating expenses
Interest expense
Share of loss of entities accounted for using equity
methodMiscellaneous loss
Total non-operating expense
Ordinary profit
Extraordinary income
Compensation received for damage
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sales of non-current assets
Impairment loss
Loss from compensation for complete work
Office transfer expenses
Loss on transfer of receivables
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

－

13 －

110,851

132,005※１ 85,072※１ 105,119

25,77926,886※２ 13,182※２ 16,839

12,597

10,046

1
95
109

0
160
99

46

－

139
393

50
310

1,067

1,103

－

72

131
1,198
11,792

152
1,328
9,027

－
－
－

121
191
312

42
4
※３ 593
174
93
66
974
10,817
4,501△1,051
3,449
7,367
－
7,367

－
－
－
－
14
－
14
9,326
3,130
△374
2,755
6,570
143
6,426

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, (From April 1, 2018 to March 31,
2018)
2019)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Profit attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

－

14 －

7,367

6,570

257
－
257
7,624

△140
△21
△161
6,408

7,624

6,264

－

143

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

4,819

Retained earnings

4,817

Total shareholders’equityTreasury shares

32,97036,630△5,976

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparentDisposal of treasury shares△1,620△1,620

7,367

7,367

6

101

108

Retirement of treasury shares－

Transfer to capital surplus fromretained earnings－

Net changes of items other thanshareholders’ equity
Total changes of items during
period

－

6

5,747

101

5,855

Balance at end of current period

4,819

4,823

38,717△5,87542,485

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Remeasurementsof defined benefit
plans

4

－

Total
accumulated
othercomprehensive
income4

Share acquisitionrightsNon-controllinginterests

Total net assets

157－

36,792

Changes of items during period
Dividends of surplus△1,620

Profit attributable to owners ofparent7,367

Disposal of treasury shares

108

Retirement of treasury shares－

Transfer to capital surplus fromretained earnings－

Net changes of items other thanshareholders’ equity

257

－

257

2

－

259

Total changes of items during
period

257

－

257

2

－

6,114

Balance at end of current period

262

－

262

159

－

42,907－15 －Current Consolidated Fiscal Year (From April 1, 2018 to March 31, 2019)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current
periodCapital surplus

4,819

Retained earnings

4,823

Total shareholders’equityTreasury shares

38,71742,485△5,875

Changes of items during period
Dividends of surplus
Profit attributable to owners ofparent△1,732△1,732

6,426

6,426

Disposal of treasury shares
Retirement of treasury shares△1,119Transfer to capital surplus fromretained earnings

1,112△1,112

61

61

1,119

－
－

Net changes of items other thanshareholders’ equity
Total changes of items during
period

－

△6

3,582

1,180

4,755

Balance at end of current period

4,819

4,817

42,299△4,69547,241

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-for-salesecurities

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
income

262

－

262

Share acquisitionrightsNon-controllinginterests

Total net assets

159－

42,907

Changes of items during period
Dividends of surplus△1,732

Profit attributable to owners ofparent6,426

Disposal of treasury shares

61

Retirement of treasury shares－

Transfer to capital surplus fromretained earnings－

Net changes of items other thanshareholders’ equity

△140

△21

△161

36

197

72

Total changes of items during
period

△140

△21

△161

36

197

4,827

Balance at end of current period

121

△21

100

196

197

47,734－16 －(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, (From April 1, 2018 to March 31,
2018)
2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Share-based compensation expenses
Interest expense
Loss on retirement of non-current assets
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in operating loans receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Decrease (increase) in short-term loans receivable
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from sales of shares of subsidiaries
Purchase of shares of subsidiaries
Outflow from acquisition of subsidiaries’ stock
resulting in change in the scope of consolidation
Other
Net cash used in investing activities

－

17 －

10,817
1,943
593
176
160
105
△97
110
1,067
42
－

9,326
2,447
－
230
50
76
△160
100
1,103
－
△191

△180

△514

274
△3,379－20,064

3,613△7,995△57△483
14,70397△1,010△3,922
9,869

2,097
658
27,291160△1,107△3,915
26,524△167
142
4△30,144
9
△132
△541
△929
－
70
△491

△171
186
0
△304843△34△225△2,625200－－△2,321△1,195

37△34,463△0△34,347

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, (From April 1, 2018 to March 31,
2018)
2019)
Cash flows from financing activities
Net increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Redemption of bonds
Repayment of lease obligations
Cash dividends paid
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalent at end of year

－

18 －

1,839
62,190△36,829△1,500△67△1,61924,012△581
29,623△596
57,468△51,657－△56△1,7303,427△8,491
29,042－

91

29,042

20,642

(5) Notes to the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable.
(Consolidated Balance Sheet)
1. The Group maintains overdraft and credit line agreements with 51 financial institutions (March 31, 2018: 44) in order toensure the efficient funding of operating capital. The unused balance of borrowings under these agreements at theconsolidated fiscal year-end is as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2018)
Total maximum amount of overdraft and credit

Current Consolidated Fiscal Year
(March 31, 2019)

41,320lines
Outstanding borrowing balance
Difference

60,11822,227

40,847

19,093

19,270(Consolidated Statement of Income)*1. Inventories are stated at the amount after the write-down reflecting the decline in profitability. Loss on valuation of
inventories included in Cost of sales is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2017 to March 31, 2018)

Current Consolidated Fiscal Year
(From April 1, 2018 to March 31, 2019)
118

△55

*2. Selling expenses account for approximately 41% for the year ended March 31, 2018 and 44% for the year ended March 31,
2019, and general and administrative expenses account for approximately 59% and 56%, respectively.
Major components of Selling, general and administrative expenses and their amounts are as follows.

(Millions of yen)Previous Consolidated Fiscal Year
Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, 2018) (From April 1, 2018 to March 31, 2019)
Advertising expenses
Sales promotion expenses

2,982

Salaries
Provision for allowance for bonuses
Retirement benefit costs
Provision for allowance for directors’
retirement benefits
Provision for allowance for doubtful accounts

－

19 －

4,399

2,098
2,210

2,123
2,769

450
191

570
95

17

25

0

11

*3. Impairment loss
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)
Mainly due to the declining profitability of rental properties, the Group recorded impairment losses (¥593 million) for thefollowing assets or asset groups in the consolidated fiscal year under review.
Use

Rentalproperties

Type

Amount(Millions of yen)

Location

Land

Suginami-ku, Tokyo

56

Land

Adachi-ku, Tokyo

51

Land

Adachi-ku, Tokyo

34

Land

Adachi-ku, Tokyo

8

Land

Itabashi-ku, Tokyo

38

Land

Komae, Tokyo

7

Land

Komae, Tokyo

6

Land

Shiki, Saitama

238

Land

Saitama, Saitama

92

Land

Saitama, Saitama

6

Land

Kawagoe, Saitama

51

Total

593

The Group classifies rental properties by individual property.
The recoverable amount is measured using net sale value, which is assessed based on the appraisal value by a realestate appraiser.
Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Not applicable.
(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings for lease (including land) and condominiums forlease in Tokyo and other areas. During the fiscal year ended March 31, 2018, net rent income from these rental properties
amounted to ¥1,335 million (rent income is recorded in net sales and major rent expenses are recorded in cost of sales), andimpairment losses came to ¥593 million (recorded in extraordinary losses). During the fiscal year ended March 31, 2019, net rent
income from these rental properties amounted to ¥726 million (rent income is recorded in net sales and major rent expenses arerecorded in cost of sales).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value
are as follows.
(Millions of yen)Previous Consolidated Fiscal Year
Current Consolidated Fiscal Year
(From April 1, 2017 to March 31, 2018) (From April 1, 2018 to March 31, 2019)
Consolidated balance sheet
Beginning balance

36,76652,650Changes during the year

15,883△7,619Ending balance

52,65045,03051,91245,471Market value at end of year

(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents the acquisition cost net of accumulated
depreciation and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increases during the year ended March 31, 2018 include the acquisition of realestate (¥21,239 million), and major decreases include transfer to real estate held for sale and real estate held for sale inprogress (¥11,018 million), depreciation (¥740 million) and impairment losses (¥593 million). The major increases during－

20 －the year ended March 31, 2019 include the acquisition of real estate (¥12,935 million), and major decreases include
transfer to real estate held for sale and real estate held for sale in progress (¥20,160 million) and depreciation (¥699
million).
3. Market value at the end of the year is based on the appraisal value by a third party real estate appraiser.
4. Assets under construction are not included in the above table as it is not practicable to obtain their market value.

－

21 －

(Segment Information)a. Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information is available
that is evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing performance.
The Group’s core business is construction and sales of built-for-sale condominiums. The Group’s reportable segments
consist of three business segments: the real estate sales business, the real estate rental business and the real estate
management business.
The real estate sales business primarily engages in sales of new built-for-sale condominiums, profit-generating real estate,detached houses and condominium renovation.
The real estate rental business provides the office and residential condominiums rental service, and the real estate
management business provides the condominium management service.
The electric power generation business engages in electric power generation using renewable energy.
2. Calculation methods of net sales, income or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those used to prepare the consolidated
financial statements, except for the valuation of inventories.
Inventories are stated at the value after the write-down, reflecting the decline in profitability.
Reportable segment income represents operating income.
Inter-segment sales and transfers are valued at market prices.
3. Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable segments
Real estate Real estate Real estate
management
sales
rentalElectric
power

Other
(Note)

Total

Total

businessbusinessbusiness

generation
business

Net sales to externalcustomers

79,341

5,472

4,000

18,239107,054

3,797

110,851

Inter-segment sales andtransfers

213

49

298

－

561

564

1,126

Total

79,555

5,522

4,299

18,239107,616

4,361

111,978

Segment income

6,107

834

116

5,128

12,187484

12,672

Segment assets

68,722

52,615

485

20,775

142,599

4,097

146,697

Segment liabilities

72,02539,297682

14,173

126,178

3,523

129,702

101

741

5

1,021

1,870

15

1,886

Amortization of goodwill

－

59

－

－

59

－

59

Interest expense

535

348

－

170

1,054

8

1,062

Net sales

Other items
Depreciation andamortization

Increase in tangible and496
23,481
4
3,499
27,4822,820
30,303
intangible fixed assets(Note) “Other” represents business segments that are not included in any reportable segments and includes the construction
contract business and the repair work business.

－

22 －

Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable segments
Electric
Real estate Real estate Real estate
power
management
sales
rentalgeneration
businessbusinessbusinessbusiness

Other(Note)

Total

Total

Net sales
Net sales to external

104,823

5,829

4,512

10,794125,959

6,045

132,005

977

66

243

－

1,287

1,331

2,618

Total

105,800

5,895

4,756

10,794

127,246

7,377

134,623

Segment income

7,158

728

140

1,433

9,460

1,143

10,603

Segment assets

79,764

48,263588

31,839160,455

9,435

169,891

Segment liabilities

74,581

30,951

1,112

31,912

138,557

7,271

145,828

Depreciation andamortization

113

700

7

1,282

2,104

140

2,245

Amortization of goodwill

－

78

－

－

78

－

78

Interest expense

664

225

－

137

1,027

47

1,074

customers
Inter-segment sales andtransfers

Other items

Increase in tangible and

9 19,488
15
8,395
27,9091,700
29,610intangible fixed assets(Note) “Other” represents business segments that are not included in any reportable segments and includes investment
management business, the construction contract business and the repair work business.

－

23 －

4. Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference
adjustments)(Millions of yen)
Net sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Net sales of “Other” category

107,616
4,361

127,246
7,377

Elimination of inter-segment transactions△1,126△2,618Net sales on the consolidated financial statements

110,851

132,005(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments

12,187

9,460

Income of “Other” category
Elimination of inter-segment transactions

484
41

1,143
△406

Amortization of goodwill
Operating income on the consolidated financial

△117

△151

12,597

10,046statements(Millions of yen)
AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category
Elimination of amounts due from the parent
administrative divisionCorporate assets (Note)
Total assets in the consolidated financial statements

142,599

160,455

4,097△6,692

9,435△20,727

37,58335,728

177,588

184,893(Note) Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash and deposits,
assets attributable to the administrative division, and deferred tax assets.
(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category
Elimination of amounts due to the parent
administrative divisionCorporate liabilities (Note)
Total liabilities in the consolidated financial
statements

126,178
3,523

138,557
7,271△5,377
10,356△18,688
10,017

134,681

137,158(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of borrowings.
(Millions of yen)

Other items

Depreciation andamortization
Amortization of goodwill
Interest expense
Increase in tangible andintangible fixed assets

Total reportablesegments

Other

Consolidated financial
statements

Adjustments

Previous
FY

Current
FY

Previous
Previous
Previous
Current FY
Current FY
Current FY
FY
FY
FY

1,870

2,104

15

140

57

202

1,943

2,447

59

78

－

－

117

151

176

230

1,054

1,027

8

47

4

28

1,067

1,103

27,482

27,909

2,820

1,700

△0

292

30,302

29,902(Note) Adjustments for increase in tangible and intangible fixed assets represent goodwill incurred but not allocated toreportable segments, capital expenditure for the headquarters building and the elimination of inter-segment transactions.
－24 －b. Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2017 to March 31, 2018)(Millions of yen)
Real estate Electric power
Real estate
Real estate
management generation
sales business rental businessbusinessbusiness
Impairment
loss

－

－

593

－

Corporate /elimination

Other
－

－

Total
593

Current consolidated fiscal year (From April 1, 2018 to March 31, 2019)
Not applicable.
(Per Share Information)
Previous Consolidated Fiscal
Current Consolidated Fiscal YearYear
(From April 1, 2018 to March(From April 1, 2017 to March
31, 2019)
31, 2018)
Net assets per share

394.90436.68

Earnings per share

68.12

59.33

Diluted earnings per share

67.80

59.00

(Note) The basis for the calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated Fiscal
Current Consolidated Fiscal YearYear
(From April 1, 2018 to March(From April 1, 2017 to March
31, 2019)
31, 2018)
Earnings per share
Profit attributable to owners of parent(millions of yen)

7,367

6,426

－

－

7,367

6,426

108,155

108,321

Adjustments to profit attributable to owners of parent(millions of yen)－－

Increase in number of common stock

522

610

(Of those, new share subscription rights (thousand shares))

(522)

(610)

Overview of dilutive shares not included in the calculation ofdiluted earnings per share due to its anti-dilutive effect－－Amount not attributable to common stockholders(millions of yen)
Profit attributable to owners of parent with respect tocommon stock(millions of yen)

Average number of shares during the year
(thousand shares)

Diluted earnings per share(thousand shares)(Significant Subsequent Events)
Not applicable.

－

25 －

4. Other(1) Changes of Officers
To be disclosed when the information to be disclosed is determined.
(2) Production, Orders Received and Sales(i) Number of units contracted during the year
Previous Consolidated Fiscal Year
(From April 1, 2017 to March 31,
2018)

Segment name

Number of units

Amounts (millionsof yen)Current Consolidated Fiscal Year
(From April 1, 2018 to March 31,
2019)
Number of units

Year-on-Year (%)

Amounts (millionsof yen)Real estate sales business

1,818

78,6202,322

122,907

156.3

Total

1,818

78,6202,322

122,907156.3(Note) The above amounts do not include consumption tax.
(ii) Balance of contract
Segment name

Previous Consolidated Fiscal Year
(March 31, 2018)

Current Consolidated Fiscal Year
(March 31, 2019)

Amounts (millions
Number of unitsof yen)Amounts (millions
Number of unitsof yen)Year-on-Year (%)

Real estate sales business

559

20,673951

38,758

187.5

Total

559

20,673951

38,758187.5(Note) The above amounts do not include consumption tax.
(iii) Net sales
Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2018 to March 31, 2019)Year-on-Year (%)

Real estate sales business (millions of yen)

104,823132.1

Real estate rental business (millions of yen)

5,829

106.5

Real estate management(millions of yen)business

4,512

112.8

Electric power generation(millions of yen)business

10,79459.2(millions of yen)

125,959

117.7(millions of yen)

6,045

159.2

(millions of yen)

132,005

119.1

Total reportablesegments
Other
Total

(Notes) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption tax.

－

26 －