Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2016 (Japan GAAP)
January 23, 2017

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEO
Takahiko Hasegawa, Director, Executive Officer and General Manager of General Planning Division

Contacts:

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:

February 13, 2017
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2016
(April 1-December 31, 2016)(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%

Millions of yen%

Millions of yen%

Nine months ended December 31, 2016

53,705

55.9

3,552

236.0

2,764

581.41,840

864.3

Nine months ended December 31, 2015

34,452(13.6)

1,057(70.3)

405(86.1)

190(89.8)(Note) Comprehensive income: Nine months ended December 31, 2016:¥1,895 million (854.7%) / Nine months ended December 31,
2015: ¥198 million ((89.5)%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Nine months ended December 31, 2016

16.88

16.79

Nine months ended December 31, 2015

1.72

1.72

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2016

134,404

32,863

24.3

As of March 31, 2016

129,744

33,677

25.8<Reference> Shareholders’ equity at end of period: December 31, 2016: ¥32,692 million / March 31, 2016: ¥33,536 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year-End
Yen

Year Ending March 31, 2016

-

4.00

-

Year Ending March 31, 2017

-

5.00

-

Year Ending March 31, 2017 (Forecast)

Total

Yen

Yen

9.00

13.00

10.00

15.00

(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, 2017
(April 1, 2016-March 31, 2017)(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

105,000

37.7

15,00098.3

13,900

107.2

9,000

108.9

81.77

(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: Yes
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, 2016:

126,000,000 shares

As of March 31, 2016:

126,000,000 sharesb.

Nine months ended December 31, 2016:

17,548,007 shares

As of March 31, 2016:

15,938,307 sharesc.

Nine months ended December 31, 2016:

109,000,138 shares Nine months ended December 31, 2015:

110,634,028 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the Financial
Instruments 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 Nine Months Ended December 31, 2016

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) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the Third-Quarter Year-to-Date Period .............................................. 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 3(4) Additional information ........................................................................................................................................ 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
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 for the Nine Months Ended December 31, 2016

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
From the first-quarter year-to-date period for the fiscal year ending in March 2017, the Takara Leben Grouphas changed its reportable segments, and the following year-on-year comparison is made using the values after
reclassifying the reportable segments into the segment classification after the change.
In the third-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2017, sales
from the real estate sales business amounted to ¥35,568 million, up 39.7% 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 ¥3,714 million, up 16.1% 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 43,109 units of residential
condominiums were ¥2,729 million, up 9.1% on a year-on-year basis.
In the electric power generation business, sales totaled ¥9,774 million, up 1,499.6% on a year-on-year basis,
mainly due to revenues from the sale of ten facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥1,918 million, down 28.1% on a year-on-year basis, mainly
attributable to revenues from construction work and large-scale repair work.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥53,705 million, up 55.9% on a year-on-year basis; Operating income amounted to ¥3,552 million, up 236.0%
on a year-on-year basis; Ordinary income amounted to ¥2,764 million, up 581.4% on a year-on-year basis; andNet income amounted to ¥1,840 million, up 864.3% 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 1,423 units, compared with a full-year target of 1,600 units scheduled for delivery.
The contract ratio was at 88.9%, 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 for Number of contracts
Contracted ratio
signed from Aprildelivery
signed(%)
1-December 31, 2016
(units)(units)(units)Nine months ended
December 31, 2015
Nine months ended
December 31, 2016

1,452

1,395

96.1

1,1301,600

1,423

88.9

1,212-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

(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 ¥134,404 million, an increase of ¥4,660 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventory inconjunction with new purchases and purchases of business assets.
(Current Assets)
Current assets increased ¥38 million compared with the end of the previous consolidated fiscal year to ¥75,791
million. This mainly reflected an increase in inventory in conjunction with new purchases, and a decrease in cash
and deposits as a result of Settlement of notes payable.
(Fixed Assets)
Fixed assets increased ¥4,599 million compared with the end of the previous consolidated fiscal year to¥58,544 million, mainly as a result of purchases of business assets.
(Current Liabilities)
Current liabilities increased ¥340 million compared with the end of the previous consolidated fiscal year to¥43,199 million, mainly as a result of an increase of short-term borrowings and the shift in debt maturities fromlong-term debt to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥5,134 million compared with the end of the previous consolidated fiscal year to¥58,341 million, mainly due to an increase of borrowings associated with new purchases.
(Net Assets)
Total net assets decreased ¥813 million compared with the end of the previous consolidated fiscal year to¥32,863 million. The decrease was attributed to the net income for the third-quarter was less than distribution ofsurplus and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 9, 2016.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the Third-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 Financial
Statements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
Changes in Accounting Policies(Application of practical solution regarding change in depreciation method due to 2016 Tax Reform)
In association with the revision of the Corporation Tax Act, the Company has applied the “Practical Solution
on a change in depreciation method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

dated June 17, 2016) from the first-quarter of the consolidated fiscal year under review, and changed thedepreciation method for facilities attached to buildings and structures that were acquired on or after April 1,2016 from the declining-balance method to the straight-line method.
The impact of this change on profits and losses for the third-quarter of the consolidated fiscal year underreview is minor.
(4) Additional information(Application of implementation guidance on recoverability of deferred tax assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26 dated March 28, 2016) from the first-quarter of the consolidated fiscal year under review.

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of December 31, 2016

ASSETS
Current assets:
Cash and deposits

28,515

Notes and accounts receivable, trade

20,639963

889

Real estate held for sale

4,073

5,987

Real estate held for sale in progress

36,13442,612

Costs incurred on uncompleted contracts

116739

Other

5,987

4,941

Allowance for doubtful accounts

(38)

(17)

75,75375,791

Buildings and structures (net)11,20913,707

Land

24,75025,426

Other (net)13,277

14,090Total tangible fixed assets

49,23753,223

1,512

1,414

Other

3,218

3,914

Allowance for doubtful accounts

(22)

(8)

Total investments and other assets

3,195

3,906

53,94558,544

Total current assets
Fixed assets:Tangible fixed assets

Intangible fixed assets
Investments and other assets

Total fixed assets
Deferred assets
Total assets

45

68

129,744

134,404

LIABILITIESCurrent liabilities:
Notes and accounts payable, trade

12,037

4,261

Short-term borrowings

7,412

14,655Current portion of long-term borrowings

12,41015,155

Income taxes payable

1,113

967

Reserve

628

398

Other

9,256

7,762

Total current liabilities

42,85943,19950,14754,858

Bonds payable

200

200

Reserve

32

56

Noncurrent liabilities:
Long-term borrowings

Liabilities related to retirement benefits

307

350

Other

2,519

2,875

Total noncurrent liabilities

53,20758,341

96,066

101,541

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

(Millions of yen)
As of March 31, 2016

As of December 31, 2016

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,946

Retained earnings

29,011

29,319Treasury stock(5,100)(6,436)

Total shareholders’ equity

33,54832,649

(11)

43

(11)

43

Accumulated other comprehensive income
Net unrealized losses on available-for-saleSecurities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-140

170

33,67732,863

129,744

134,404

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

(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, 2015

Nine Months EndedDecember 31, 2016

Net sales

34,45253,705

Cost of sales

26,236

41,954Gross profit

8,216

11,751

Selling, general and administrative expenses

7,158

8,198

Operating income

1,057

3,552

Interest income

22

Dividend income

45Commissions received

36

54

Income from equity method investment

34－

Miscellaneous income

5650

Total Non-Operating income

133

112

Interest expense

725

772

Losses from equity method investment－99

Non-Operating income:Non-Operating expenses:

Miscellaneous losses

59

29

Total Non-Operating expenses

785

901

405

2,764

Losses on construction warranties

102－

Total extraordinary losses

102－

Net income before income taxes

303

2,764

Income taxes, inhabitant taxes and business taxes

184

1,594

Income tax adjustments

(71)

(670)

Total income and other taxes

112

924

Net income

190

1,840

Net income attributable to owners of parent

190

1,840

Ordinary income
Extraordinary losses:-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016

Quarterly Consolidated Statements of Comprehensive Income
Third-Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2015
Net income

Nine Months Ended
December 31, 2016
190

1,840

Net unrealized gains on available-for-sale securities

754

Total other comprehensive income

754198

1,895

198

1,895

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2016(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 third-quarter of the consolidated fiscal year under review, the Company purchased shares of treasury
stock at ¥1,467 million, by resolution of the meeting of the Board of Directors held on May 9, 2016.
Additionally, with the disposal of treasury stock for ¥132 million due to the exercise of stock options, theCompany held treasury stock for ¥6,436 million at the end of the third-quarter consolidated accounting period.

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