Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2014 (Japan GAAP)
October 27, 2014

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEOToshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
Tel: +81-3-5324-8720

Scheduled date for release of Quarterly Report:
Scheduled date for commencement of dividend payments:
Has the Company prepared supplementary briefing materials for the Quarter:
Has the Company held briefings concerning its quarterly financial results:

November７, 2014
December９, 2014
YesYes

1. Consolidated Operating Results for the Six Months Ended September 30, 2014
(April 1-September 30, 2014)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income%Net Income

Millions of yen%

Millions of yen

Six months ended September 30, 2014

18,7844.871932.624352.9%

165 (35.5)

Six months ended September 30, 2013

17,916(48.2)

542(82.4)

159(94.4)257 (87.5)

Millions of yen

Millions of yen%

(Note) Comprehensive income: Six months ended September 30, 2014: ¥176million ((30.1)%) / Six months ended September 30, 2013:¥252million ((87.7)%)
Net Income perShare

Diluted Net Incomeper ShareYenYenSix months ended September 30, 2014

1.46

1.45

Six months ended September 30, 2013

2.21

2.20

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2014

95,926

26,635

27.7

As of March 31, 2014

95,891

27,13828.2<Reference> Shareholders’ equity at end of period: September 30, 2014: ¥26,554 million / March 31, 2014: ¥27,084 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2014

-

1.50

Year Ending March 31, 2015

-

2.00

Year-End
Yen

Year Ending March 31, 2015 (Forecast)

Total

Yen

Yen-

3.50

5.00

-

4.00

6.00

(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, 2015
(April 1, 2014-March 31, 2015)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

77,1507.2

10,500

7.2

9,700

5.6

6,000

2.2

52.95

(Note) Has the Company changed its consolidated forecast during this quarter: No

4. Other Matters(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
B. Changes in accounting policies other than those in (1): No
C. Changes in accounting estimates: No
D. Restatement: No(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

As September of30, 2014:

130,000,000 shares

As of March 31, 2014: 130,000,000 sharesb.

As of September 30, 2014:

17,074,107 shares

As of March 31, 2014:c.

Six months ended September 30, 2014:

15,974,807 shares

113,700,627 shares Six months ended September 30, 2013: 116,537,044 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financi alInstruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements based on the Financial Instruments andExchange Act.

(Note) Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

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 ............................................................. 3(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Summary Information (Notes) ................................................................................................................................. 4(1) Changes to Material Subsidiaries during the Second-Quarter Year-to-Date Period ........................................... 4(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 4(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 4
3. Quarterly Consolidated Financial Statements .......................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7(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, 2014

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the first half of the fiscal year under review, the Japanese economy continued to recover moderately as
indicated by an improvement in the employment and income situations, despite the introduction of theconsumption tax hike in April.
In the real estate industry, where the Takara Leben Group operates, sales prices of newly supplied properties
rose sharply in central Tokyo against a backdrop of expectations for the end of deflation and the decision toaward the 2020 Summer Olympic Games to Tokyo, among other factors, and while customers had focused theirinterest on condominiums in the inner-city area in the past, interest was gradually spreading to the suburbs ofTokyo. In the suburbs where the Company operates its business, the environment remained more favorable thanit did in the fiscal year ended March 31, 2013, with a rise in sales prices due to the inflow of customers from
central Tokyo adding to the traditional stable demand for the area.
Under such circumstances, the Company will continue to promote the supply of solar-powered condominiums,
and the Company will remain committed 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 with eager minds, sincere efforts and ample talent,’ and continue to work on
product plans capturing the needs of the time and promote business activities focusing on its customers as its
ultimate supporters.
①Performance by business segment
In the second-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2015, sales
from the real estate sales business amounted to ¥15,431 million, up 1.7% on a year-on-year basis. This reflectedsales in the new built-for-sale condominium business, as well as sales in the newly-built detached housingbusiness.
In the real estate rental business, sales totaled ¥896 million, up 7.6% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 36,937 units of residentialcondominiums were ¥1,449million, up 7.1% on a year-on-year basis.
Sales from other businesses amounted to ¥1,007 million, up 80.9% on a year-on-year basis, mainly attributableto revenues from orders for large-scale repair work and revenue from selling electric power in the mega-solarbusiness.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥18,784 million, up 4.8% on a year-on-year basis; Operating income amounted to ¥719 million, up
32.6% on a year-on-year basis; Ordinary income amounted to ¥243million, up 52.9% on a year-on-year basis;
and Net income amounted to ¥165 million, down 35.5% on a year-on-year basis.
②Contracted 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 1,413 units, compared with a full-year target of 1,702 units scheduled fordelivery. In addition, the total number of contracts signed, including units scheduled for delivery the fiscal year
ending March 31, 2016, was 1,807 units, showing that sales remained brisk as in the fiscal year ended March 31,
2014.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
signed of units
Units scheduled for
Number of contracts scheduled for delivery Total number ofdelivery (units)
signed (units)from the fiscal year contracts signed
ending March 31,
2016
Six months ended
September 30,
2013

1,710

1,570

230

1,800

Six months ended
September 30,
2014

1,702

1,413

394

1,807

(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 ¥95,926 million, an increase of ¥35 million compared with theend of the previous consolidated fiscal year. The increase mainly reflecting the purchase of business assets,
despite a decline in cash and deposits as a result of the settlement of notes payable(Current Assets)
Current assets decreased ¥3,253 million compared with the end of the previous consolidated fiscal year to¥69,271 million. This mainly reflected a decrease in cash and deposits from settlement of a note.
(Non-current Assets)
Non-current assets increased ¥3,288 million compared with the end of the previous consolidated fiscal year to¥26,654 million, mainly due to purchase of business assets.
(Current Liabilities)
Current liabilities decreased ¥1,669 million compared with the end of the previous consolidated fiscal year to¥36,042 million, mainly due to a decrease of notes payable.
(Non-current Liabilities)
Non-current liabilities increased ¥2,206 million compared with the end of the previous consolidated fiscal yearto ¥33,247 million, mainly due to an increase of borrowings associated with new purchases.
(Net Assets)
Total net assets decreased ¥502 million compared with the end of the previous consolidated fiscal year to¥26,635 million. The decrease was attributed to the net assets for the second quarter was less than distribution ofsurplus and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
For a revision of the consolidated operating results forecast, please refer to the notice of a revision to theresults forecast announced on October 27, 2014,-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.
(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated FinancialStatementsThe Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
The Company had no pertinent matters to report.

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of September 30, 2014ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable, trade35,964

21,261

405

398

Real estate held for sale

1,156242Real estate held for sale in progress

32,28842,476

Other

2,753

4,920

Allowance for doubtful accounts

(43)

(28)

72,524

69,271

Buildings and structures (net)

5,108

5,507

Land

14,10015,761Other (net)

2,024

3,354

Total tangible fixed assets

21,23324,623

513

517

Other

1,729

1,557

Allowance for doubtful accounts

(109)

(44)

Total investments and other assets

1,619

1,513

23,366

26,654

95,891

95,926

Notes and accounts payable, trade

20,692

9,269

Short-term borrowings

Total current assets
Fixed assets:
Tangible fixed assets

Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

2,590

6,819

Current portion of long-term borrowings

5,101

11,875

Income taxes payable

3,356

118

388

414

Reserve
Other

5,580

7,544

Total current liabilities

37,711

36,042

Noncurrent liabilities
Long-term borrowings

29,86131,318Reserve

26

26

Allowance for directors’ retirement benefits

220

247

Other933

1,655

31,041

33,24768,752

69,290Total noncurrent liabilities
Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

(Millions of yen)
As of March 31, 2014

As of September 30, 2014

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,819

Retained earnings

21,623

21,482

Treasury stock(4,179)(4,582)

Total shareholders’ equity

27,08026,539

414

41453

81

27,13826,63595,891

95,926

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2013

Six Months Ended
September 30, 2014

Net sales

17,916

18,784

Cost of sales

13,605

14,073Gross profit

4,311

4,711

Selling, general and administrative expenses3,769

3,992

542

719

Interest income

22Dividend income

Operating income (loss)
Non-Operating income:

22Commissions received

24

23

Income from equity method investment

10－

Miscellaneous income

828

Total Non-Operating income

47

57Interest expense

397

410

Miscellaneous losses

32

22

Less from equity method investment－99

Total Non-Operating expenses

430

532

159

243

Legal settlement received

330－

Gain on sale of investment securities－

16

Gain on negative goodwill－

82

Total extraordinary gains

330

98

Loss on sales of noncurrent assets

39－

Loss on disposal of fixed assets

00

Loss on valuation of investment securities

Non-Operating expenses:

Ordinary income (loss)
Extraordinary gains

Extraordinary losses－9

Other9－Total extraordinary losses

49

9Net income (loss) before income taxes

440

332

Income taxes, inhabitant taxes and business taxes

69

107

Income tax adjustments

113

59

Total income and other taxes

183

166

Income (loss) before minority interests

257

165

Net income (loss)

257

165

-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2013
Income (loss) before minority interests

Six Months Ended
September 30, 2014
257

165

Net unrealized gains on available-for-sale securities

(4)

10

Total other comprehensive income

(4)

10252

176

252

176

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

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2014

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on A Significant Change in Shareholders’ Equity)
In the Second quarter of the consolidated fiscal year under review, the Company purchased treasury stock at¥428 million, by resolution of the meeting of the Board of Directors held on May 12, 2014.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing¥25 million, the number and amount of treasury stock at the end of the second quarter of the fiscal year underreview were ¥4,582 million, respectively.

-9-