Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2020 (Japan GAAP)
October 30, 2020

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

Contacts:

First Section of the Tokyo Stock Exchange
8897
https://www.leben.co.jp
Kazuichi Shimada, Representative Director, CEO, President Executive Officer
Masashi Yamamoto, Director, CFO, Managing Executive Officer and Executive General
Manager of General Planning Division
Tel: +81-3-6551-2130

Scheduled date for release of Quarterly Report:
November 6, 2020
Scheduled date for commencement of dividend payments:
December 7, 2020
Has the Company prepared supplementary briefing materials for the Quarter: Yes
Has the Company held briefings concerning its quarterly financial results: Yes (To prevent the spread of the COVID-19
coronavirus,
distributetheCompany

Representative

will

Director’s

financial results presentation by video.)

1. Consolidated Operating Results for the Six Months Ended September 30, 2020
(April 1-September 30, 2020)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year changes)
Net IncomeNet SalesOperating Income

Ordinary Income

Attributable toOwners of Parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Six months ended September 30, 2020

51,581(11.1)

1,853(52.2)

1,620(52.5)

893(60.5)

Six months ended September 30, 201957,998

16.8

3,879

56.0

3,414

77.3

2,260

86.9

(Note) Comprehensive income: Six months ended September 30, 2020: ¥1,148million ((59.1%)) / Six months ended September 30, 2019:
2,808million (119.8%)

Net Income per Share

Diluted Net Incomeper ShareYenYenSix months ended September 30, 2020

8.23

8.18

Six months ended September 30, 2019

20.85

20.71

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2020

207,947

50,88624.3

As of March 31, 2020

195,448

51,13925.9<Reference> Shareholders’ equity at end of period: September 30, 2020: ¥50,451 million / March 31, 2020: ¥50,634 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2020-

6.00

Year Ending March 31, 2021-4.00

Year-EndYen

Year Ending March 31, 2021(Forecast)

TotalYenYen-

13.00

19.00

-8.00

12.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2021
(April 1, 2020-March 31, 2021)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Net Income
Attributable toOwners of Parent

Ordinary Income

Net Income perShare

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%yen

136,800(18.8)

6,000(49.6)

5,000(55.4)

3,400(36.6)

31.36(Note) Has the Company changed its consolidated forecast during this quarter: No*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
B. Changes in accounting policies other than those in A: No
C. Changes in accounting estimates: No
D. Restatement: No

(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

Six months ended September 30, 2020:

121,000,000 shares

As of March 31, 2020:

121,000,000 sharesb.

Six months ended September 30, 2020:

12,344,907 shares

As of March 31, 2020:

12,587,307 sharesc.

Six months ended September 30, 2020:

108,530,136 shares

Six months ended September 30, 2019:

108,412,693 shares*This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments andExchange Act.
*Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business results may differ substantially due to a number of factors.
To obtain the supplementary materials on financial results:
Supplementary materials on financial results have been posted on the Company’s website. The materials are also
accessible through TDnet.
To access the details of briefing for financial results:
The briefing for financial results will be distributed by video on the Company’s website.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter .......................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ..................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position ............................................................. 2(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Quarterly Consolidated Financial Statements .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period ............................................................................................................... 8(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 9(Notes on Assumption of Going Concern) ......................................................................................................... 9(Notes on a Significant Change in Shareholders’ Equity) .................................................................................. 9-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the second-quarter of the fiscal year ending March 31, 2021 of the Group, there was a time when
corporate activities were restricted due to the effects of the new corona virus. However, since June, we havebeen working hard to normalize corporate activities as soon as possible, while taking thorough measures toprevent infection. In our core business, the new built-for-sale condominium business, the number of visitors
to our model rooms has been at the same level as the previous year since June, showing a marked recovery
trend.
a. Performance by business segment
In the real estate sales business, sales of this business amounted to ¥40,190 million, down 12.8% on a
year-on-year basis. This reflected sales in the new built-for-sale condominium business, sales of profitablereal estate, new detached house sales and sales of used condominiums.
In the real estate rental business, sales of this business amounted to ¥2,815 million, down 2.5% on ayear-on-year basis. This reflected sales from the rental of condominium units and offices.
In the real estate management business, sales from the management of 62,860 units of residential
condominiums were ¥2,720 million, up 10.2% on a year-on-year basis.
In the electric power generation business, sales of this business amounted to ¥2,903 million, down 12.3%
on a year-on-year basis, mainly due to revenues from the sale of electricity generated by electric powergeneration facilities.
In the other businesses, sales of this business amounted to ¥2,951 million, down 8.6% on a year-on-yearbasis, mainly revenues from construction work, large-scale repair work, and commission income, etc.
As a result, net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥51,581 million, down 11.1% on a year-on-year basis. Operating income amounted to ¥1,853
million, down 52.2% on a year-on-year basis. Ordinary income amounted to ¥1,620 million, down 52.5% on
a year-on-year basis. Net income attributable to owners of parent amounted to ¥893 million, down 60.5% ona year-on-year basis.
b. Contracted ratio status
With regard to sales performance in the second-quarter year-to-date period of the current consolidated
fiscal year, contracts were concluded for 1,772 units, compared with a full-year target of 1,980 units
scheduled for delivery. The contract ratio was at 89.5% showing a steady growth in the business.
(Contracts signed versus number of units forecast for new built-for-sale condominium delivery)
Number of contracts
Units scheduled Number of contracts
Contracted
signed from April 1for delivery
signedratio (%)
September 30, 2020(units)(units)(units)Six months ended
September 30, 2019

1,950

1,539

78.9

1,102

Six months ended
September 30, 2020

1,980

1,772

89.5

825

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the second-quarter
consolidated accounting period under review, total assets were ¥207,947 million, an increase of ¥12,498
million compared with the end of the previous consolidated fiscal year, mainly due to an increase ininventories associated with new purchases.
-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

(Current Assets)
Current assets increased ¥15,169 million compared with the end of the previous consolidated fiscal year to¥130,484 million, mainly due to an increase in inventories associated with new purchases and transferringbusiness assets to inventories.
(Fixed Assets)
Fixed assets decreased ¥2,620 million compared with the end of the previous consolidated fiscal year to¥77,254 million, mainly due to transferring business assets to real estate for sale and power generation
facilities for sale although business assets were purchased smoothly.
(Current Liabilities)
Current liabilities decreased ¥603 million compared with the end of the previous consolidated fiscal year to¥65,013 million, mainly due to decrease in notes payable.
(Fixed Liabilities)
Fixed liabilities increased ¥13,354 million compared with the end of the previous consolidated fiscal yearto ¥92,047 million, mainly due to the increase loans payable with new purchase.
(Net Assets)
Total net assets decreased ¥252 million compared with the end of the previous consolidated fiscal year to¥50,886 million, mainly due to dividends of surplus exceeded amount of net income attributable to owners ofparent.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on September 14, 2020.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2020

As of September 30, 2020

ASSETS
Current assets:
Cash and deposits

35,311

27,879Notes and accounts payable - trade

1,952

2,061

Real estate for sale

23,86132,353－

5,334

46,102

52,954

Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts

397

507

7,689

9,396

(2)

(1)

115,314130,484

Buildings and structures ,net

13,266

13,227

Land

33,90332,038Other ,net

20,05018,844

Total Property, plant and equipment

67,22064,110

1,145
645

1,030
610

1,790

1,641

10,86911,512

Other
Allowance for doubtful accounts
Total current assets
Fixed assets:
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts

(6)

(10)

Total investments and other assets

10,863

11,502

79,874

77,254259

209

195,448

207,947

Notes and accounts payable - trade

11,85810,066

Short-term loans payable

17,14818,521

Current portion of bonds

296

296

Current portion of long-term loans payable

22,11924,795

Income taxes payable

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

2,972

657

Reserve

980

1,013

Other

10,2409,663

Total current liabilities

65,61665,013Long-term loan payable

69,656

82,343

Bonds payable

4,804

5,506

Fixed liabilities-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

(Millions of yen)
As of March 31, 2020
Reserve

As of September 30, 2020
9796

Other

653
3,481

703
3,397

Total fixed liabilities

78,692

92,047

144,309

157,060

Net defined benefit liability

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

(Millions of yen)
As of March 31, 2020

As of September 30, 2020

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,800

Retained earnings

45,81745,301

Treasury stock(4,695)(4,604)

Total shareholders’ equity

50,75950,317

Valuation difference on available-for-sale securities

(97)

159

Foreign currency translation adjustment

Accumulated other comprehensive income(0)(0)

Remeasurements of defined benefit plans

(27)

(24)

Total accumulated other comprehensive income

(124)

134

241
263

199
235

51,13950,886

195,448

207,947

Share acquisition rights
Non-controlling interest
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months EndedSeptember 30, 2019

Six Months Ended
September 30, 2020

Net sales

57,99851,581

Cost of sales

45,507

41,200Gross profit

12,49010,380

Selling, general and administrative expenses

8,611

8,527

Operating income

3,879

1,853

Non-Operating income:Interest income

00

Dividend income

164

163

Commission fee

4040

Profit from equity method investment－95

Miscellaneous income

22138

Total Non-Operating income

227

437

Interest expenses

580

543

Losses from equity method investment

65－

Miscellaneous losses

45127

Total Non-Operating expenses

691

670

3,414

1,620

Gain on sales of investment securities

72－

Penalty income

214－

Total Extraordinary income

286－

Net income before income taxes

3,701

1,620

Income taxes - current

1,373

652

Income taxes - deferred(0)79

Total income taxes

1,372

731

Net income

2,328

888

68

(4)

2,260

893

Non-Operating expenses:

Ordinary income
Extraordinary income

Net income attributable to non-controlling shareholders (loss)
Net income attributable to owners of parent-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2019
Net income

Six Months Ended
September 30, 2020

2,328

888

Valuation difference on available-for-sale securities

478

256

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax－1(0)2Total other comprehensive income

480

259

2,808

1,148

2,740

1,153

68(4)

Other comprehensive income:Comprehensive income
Net income attributable toComprehensive income attributable to parent
Comprehensive income attributable to non-controlling interest-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2020

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on a Significant Change in Shareholders’ Equity)
The Company had no pertinent matters to report.

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