Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2019 (Japan GAAP)
January 27, 2020

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

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

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:

February 7, 2020
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2019
(April 1- December 31, 2019)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year changes)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Nine months ended December 31, 2019

96,843

30.4

6,176

132.0

5,667216.7

3,855

224.0

Nine months ended December 31, 201874,293

63.3

2,662

15.5

1,789

7.4

1,190

27.8

(Note) Comprehensive income: Nine months ended December 31, 2019: ¥4,480 million (362.2%) / Nine months ended December 31, 2018:¥969 million ((8.7)%)

Net Income per Share

Diluted Net Incomeper Share

Yen

Yen

Nine months ended December 31, 2019

35.56

35.32

Nine months ended December 31, 2018

10.99

10.93

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2019

198,746

50,41625.1

As of March 31, 2019

184,893

47,734

25.6<Reference> Shareholders’ equity at end of period: December 31, 2019: ¥49,909 million / March 31, 2019: ¥47,341 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year-End
Yen

Year Ending March 31, 2019

-

5.00

-

Year Ending March 31, 2020

-

6.00

-

Year Ending March 31, 2020(Forecast)

Total

Yen

Yen

11.00

16.00

13.00

19.00

(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, 2020
(April 1, 2019-March 31, 2020)(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

160,000

21.2

13,00029.4

11,800

30.7

8,000

24.5

73.79

(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.

Nine months ended December 31, 2019:

121,000,000 shares

As of March 31, 2019:

121,000,000 sharesb.

Nine months ended December 31, 2019:12,587,307 shares

As of March 31, 2019:12,587,307 sharesc.

Nine months ended December 31, 2019:

108,412,693 shares Nine months ended December 31, 2018:108,298,155 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.

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

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 ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period .................................................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income
Third-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 the Nine Months Ended December 31, 2019

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the third-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2020, sales
from the real estate sales business amounted to ¥64,638 million, up 21.0% 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 ¥4,340 million, down 0.5% on a year-on-year basis. This
reflected sales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 57,534 units of residential
condominiums were ¥3,733 million, up 11.7% on a year-on-year basis.
In the electric power generation business, sales totaled ¥19,834 million, up 122.8% on a year-on-year basis,
mainly due to revenues from the sale of 9 facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥4,296 million, up 0.8% on a year-on-year basis, mainly revenues
from construction work, large-scale repair work, and commission income, etc.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥96,843 million, up 30.4% on a year-on-year basis; Operating income amounted to ¥6,176 million, up 132.0%
on a year-on-year basis; Ordinary income amounted to ¥5,667 million, up 216.7% on a year-on-year basis; andnet income amounted to ¥3,855 million, up 224.0% on a year-on-year basis.

b. Contracted ratio status
With regard to sales performance in the third-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,791 units, compared with a full-year target of 1,950 units scheduled for delivery.
The contract ratio was at 91.8%, 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 ofContracted
signed from April 1for delivery
contracts signedratio (%)
December 31, 2019
(units)(units)(units)Nine months ended
December 31, 2018

1,700

1,435

84.4

1,411

Nine months ended
December 31, 2019

1,950

1,791

91.8

1,613

(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 third-quarter consolidated
accounting period under review, total assets were ¥198,746 million, an increase of ¥13,852 million comparedwith the end of the previous consolidated fiscal year, mainly due to an increase in inventories associated withnew purchases.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

(Current Assets)
Current assets increased ¥28,409 million compared with the end of the previous consolidated fiscal year to¥126,922 million, mainly due to an increase in inventories associated with new purchases.
(Fixed Assets)
Fixed assets decreased ¥14,535 million compared with the end of the previous consolidated fiscal year to¥71,750 million, mainly reflected they were transferred to real estate for sale although the business assets werepurchased smoothly.
(Current Liabilities)
Current liabilities increased ¥12,219 million compared with the end of the previous consolidated fiscal year to¥70,758 million, mainly due to increase in short-term loans payable and the reclassification from long-term loans
payable to short-term loan payable.
(Fixed Liabilities)
Fixed liabilities decreased ¥1,048 million compared with the end of the previous consolidated fiscal year, to¥77,570 million, mainly due to the reclassification from long-term loans payable to short-term loan payable.
(Net Assets)
Total net assets increased ¥2,681 million compared with the end of the previous consolidated fiscal year, to¥50,416 million, mainly due to the recorded amount of net income attributable to owners of parent exceededamounts such as dividends of surplus.

(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 16, 2019.

-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019

As of December 31, 2019ASSETS
Current assets:
Cash and deposits

21,16526,742

Notes and accounts receivable, trade

2,071

1,610

Real estate held for sale

18,821

31,693

Real estate held for sale in progress

49,86057,991

Costs incurred on uncompleted contracts

519

1,080

Other

6,192

7,806

Allowance for doubtful accounts

(118)

(2)

Total current assets

98,512

126,922

Buildings and structures (net)18,061

11,266

Land

35,602

31,536Other (net)21,561

16,576

Total property, plant and equipment

75,22459,379

1,375

1,209

Fixed assets:
Property, plant and equipment

Intangible assets
Goodwill
Other
Total intangible assets

465

481

1,840

1,690

9,230

10,685(9)(6)

Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets

9,220

10,67986,28671,75094

73

184,893

198,746

Notes and accounts payable, trade

7,790

9,672

Short-term borrowings

17,831

19,060Current portion of long-term borrowings

19,743

29,108

Income taxes payable

2,760

735

Reserve

901

713

Other

9,510

11,467

Total current liabilities

58,53970,75873,882

72,582

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Fixed liabilities
Long-term borrowings-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

(Millions of yen)
As of March 31, 2019
Bonds payable

As of December 31, 2019200500Reserve

99

102

Liabilities related to retirement benefits

543

614

Other

3,894

3,771

Total fixed liabilities

78,61977,570

137,158

148,329

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

(Millions of yen)
As of March 31, 2019

As of December 31, 2019

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

42,29944,310Treasury stock(4,695)(4,695)

Total shareholders’ equity

47,241

49,252

Valuation difference on available-for-sale securities

121675Remeasurements of defined benefit plans

(21)

(18)

Total accumulated other comprehensive income

100657

196
197

241
265

47,73450,416

184,893

198,746

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interest
Total net assets
Total liabilities and net assets-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2018

Nine Months Ended
December 31, 2019Net sales

74,293

96,843

Cost of sales

60,23177,747Gross profit

14,061

19,096

Selling, general and administrative expenses

11,39912,919Operating income

2,662

6,176

Interest income

00

Dividend income

76

286

Commissions received

4454

Profit from equity method investment－

54

Miscellaneous income

49

48

Total Non-Operating income

170

444

Interest expense

826

873

Losses from equity method investment

77－

Miscellaneous losses

138

80

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

1,043

953

1,789

5,667

Compensation damages received

121－

Gain on sales of investment securities

191

72

Penalty income－214

Total Extraordinary income

312

286

Office transfer expenses

14－

Total extraordinary losses

14－

Net income before income taxes

2,087

5,954

Income taxes, inhabitant taxes and business taxes

452

1,832

Income tax adjustments

263

197

Total income and other taxes

716

2,030

1,371

3,923

181

68

1,190

3,855

Ordinary income
Extraordinary income

Extraordinary losses

Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019

Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months EndedDecember 31, 2018
Net income

Nine Months EndedDecember 31, 2019

1,371

3,923

Remeasurements of defined benefit plans, net of tax

(402)
－554
2

Total other comprehensive income

(402)

557

969

4,480

787

4,412

181

68

Other comprehensive income:Net unrealized gains on available-for-sale securities

Comprehensive income(Comprising)Comprehensive income attributable to parent
Comprehensive income attributable to non-controllinginterests-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2019(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.

-9-