Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2021 (Japan GAAP)
October 29, 2021

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, General Manager of the Administration Headquarters
Tel: +81-3-6551-2130

Scheduled date for release of Quarterly Report:
November 12, 2021
Scheduled date for commencement of dividend payments:
December 6, 2021
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, 2021
(April 1-September 30, 2021)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year changes)
Net Income
Net Sales

Operating Income

Ordinary Income

Attributable to
Owners of Parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Six months ended September 30, 2021

50,098

－

566

－

(112)

－

(252)

－

Six months ended September 30, 2020

51,581(11.1)

1,853(52.2)

1,620(52.5)

893(60.5)(Note) Comprehensive income: Six months ended September 30, 2021: (¥186)million (－%) / Six months ended September 30, 2020:¥1,148million ((59.1%))

Net Income per Share

Diluted Net Income
per Share

Yen

Yen

Six months ended September 30, 2021

(2.32)－

Six months ended September 30, 2020

8.23

8.18

(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the current fiscal year, the figures for the second quarter of the fiscal year ending March 31,
2022 are after the application of the said accounting standard, etc., and the percentage change from the same quarter of the previous year
is not stated.

(2) Consolidated Financial PositionTotal Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2021

231,81753,52422.8

As of March 31, 2021

204,315

54,632

26.5<Reference> Shareholders’ equity at end of period: September 30, 2021: ¥52,949 million / March 31, 2021: ¥59,194 million(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the first quarter of the current fiscal year, the figures for the second quarter of the fiscal year ending March 31,
2022 are after the application of the said accounting standard, etc., and the percentage change from the same quarter of the previous year
is not stated.

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2021

-

4.00

Year Ending March 31, 2022

-

4.00

Year-End
Yen

Year Ending March 31, 2022(Forecast)

Total

Yen

Yen

-

10.00

14.00

-

10.00

14.00

(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, 2022
(April 1, 2021-March 31, 2022)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Net Income
Attributable to
Owners of Parent

Ordinary Income

Net Income per
ShareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

158,600

－

7,900

－

7,100

－

4,800

－

44.18

(Note) Has the Company changed its consolidated forecast during this quarter: No
As the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. from the
beginning of the fiscal year ending March 31, 2022, the consolidated financial forecast above is the amount after the application of thesaid accounting standard, etc., and the percentage change from the previous fiscal year is not stated.

*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
Newly consolidated companies 1 company (Leben Clean Energy Co.,Ltd.)
Newly excluded companies (--)
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial
Statements (Changes in Significant Subsidiaries during the Period under Review)" on page 9 of the attached materials.

(2) Application of Special Accounting Treatment Made in Preparation of 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(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated Financial
Statements (Change in Accounting Policy)" on page 9 of the attached materials.

(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, 2021:

121,000,000 shares

As of March 31, 2021:

121,000,000 sharesb.

Six months ended September 30, 2021:

12,147,207 shares

As of March 31, 2021:

12,344,907 sharesc.

Six months ended September 30, 2021:

108,738,512 shares

Six months ended September 30, 2020:

108,530,136 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, 2021

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. 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
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(Changes in Significant Subsidiaries during the Period under Review) ........................................................... 9(Changes in Accounting Policy) ....................................................................................................................... 9-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

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, 2022 of the Group, the Japanese economy
continued to face an uncertain outlook, although vaccination against the new coronavirus infection has
gradually progressed and there are signs of a pickup both in Japan and overseas. In such a businessenvironment, the Group continued to promote business activities while taking thorough measures to prevent
infection. In the future, we will continue to strengthen our core business of New Built-for-Sale Condominium
through product development with an eye on changing lifestyles, and at the same time, we will continue tobuild a business model for de-FIT to make Energy Business our next element.
a. Performance by business segment
Effective from the first quarter of the current fiscal year, the Company has changed the name of its
reportable segment from "Electric Power Generation Business" to "Energy Business. This change is a change
in the name of the segment and has no impact on the segment information.
In the real estate sales business, sales in this segment totaled 35,578 million yen (40,190 million yen in thesame period of the previous fiscal year), due to new the built-for-sale condominiums business, sales of
profitable real estate, new detached house sales and sales of used condominiums.
In the real estate rental business, sales in this segment amounted to 2,979 million yen (2,815 million yen in
the same period of the previous fiscal year) due to rental income from condominiums, and offices.
In the real estate management business, sales from the management of 66,313 units of residential
condominiums were 2,911 million yen (2,720 million yen in the same period of the previous fiscal year).
In the energy business, sales totaled 5,034 million yen (2,903 million yen in the same period of theprevious fiscal year), mainly due to revenues from the sale of electricity generated by electric power
generation facilities.
Sales from other businesses amounted to 3,594 million yen (2,951 million yen in the same period of theprevious fiscal year), 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 50,098 million yen (51,581 million yen in the same period of the previous year). Operating
income amounted to 566 million yen (1,853 million yen operating income in the same period of the previousyear). Ordinary loss of 112 million yen (1,620 million yen ordinary income in the same period of theprevious year). And net loss attributable to owners of parent of amounted to 252 million yen (893 million yen
net income attributable to owners of the parent in the same period of the previous year).
Effective from the first quarter of the current fiscal year, the Company has adopted "Accounting Standard
for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Therefore, explanations regarding
operating results for the second quarter of the current fiscal year are provided without stating the amount of
increase or decrease compared to the second quarter of the previous fiscal year or the percentage change fromthe same quarter of the previous fiscal year.
For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes on Quarterly
Consolidated Financial Statements (Change in Accounting Policy)".

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 1,506 units, compared with a full-year target of 1,800 units
scheduled for delivery. The contract ratio was at 83.7% showing a steady growth in the business.

(Contracts signed versus number of units forecast for new built-for-sale condominium delivery)-2-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

Units scheduled Number of contracts
for delivery
signed(units)(units)Contracted
ratio (%)

Number of contracts
signed from April 1September 30(units)Six months ended
September 30, 2020

1,980

1,772

89.5

825

Six months ended
September 30, 2021

1,800

1,506

83.7

987

(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 ¥231,817 million, an increase of ¥27,502
million compared with the end of the previous consolidated fiscal year, mainly due to an increase ininventories associated with new purchases.
(Current Assets)
Current assets increased ¥35,978 million compared with the end of the previous consolidated fiscal year to¥161,665 million, mainly due to an increase in inventories associated with new purchases and transferringbusiness assets to inventories.
(Fixed Assets)
Fixed assets decreased ¥8,461 million compared with the end of the previous consolidated fiscal year to¥70,069 million, mainly due to transferring business assets to real estate for sale and power generation
facilities for sale despite an increase in business assets due to the change in the scope of consolidation.
(Current Liabilities)
Current liabilities increased ¥13,045 million compared with the end of the previous consolidated fiscal
year to ¥68,695 million, mainly due to increase in short-term borrowings and the reclassification of shortterm and long-term borrowings payable.
(Fixed Liabilities)
Fixed liabilities increased ¥15,564 million compared with the end of the previous consolidated fiscal yearto ¥109,598 million, mainly due to the increase loans payable with new purchase due to the change in thescope of consolidation.
(Net Assets)
Total net assets decreased ¥1,108 million compared with the end of the previous consolidated fiscal year to¥53,524 million, mainly due to the recording of net loss attributable to shareholders of the parent company
and dividends from surplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2021.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of September 30, 2021

ASSETS
Current assets:
Cash and deposits

39,169Notes and accounts payable - trade

2,193

－

－

3,005

28,68230,904－

18,366

43,766

61,302596

23

11,41813,244

Notes, accounts receivable-trade and contract assets
Real estate for sale
Power generation facilities for sale
Real estate for sale in progress
Costs incurred on uncompleted contracts
Other
Allowance for doubtful accounts
Total current assets

34,959

(141)

(140)

125,686

161,665

Fixed assets:
Property, plant and equipment
Buildings and structures ,net

12,102

7,858

Land

33,73933,099Other, net

18,22812,813

Total Property, plant and equipment

64,07053,771

Goodwill

960

2,349

Other

638

703

1,599

3,052

12,874

13,259Allowance for doubtful accounts

(13)

(14)

Total investments and other assets

12,861

13,24578,53170,0699782

204,315

231,817

Notes and accounts payable - trade

13,318

7,211

Short-term loans payable

9,208

19,353

Intangible assets

Total intangible assets
Investments and other assets
Other

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds

116

616

Current portion of long-term loans payable

17,524

26,645

Income taxes payable

2,264

521

Reserve

1,034

1,087

Other

12,184

13,260Total current liabilities

55,64968,695Long-term loan payable

85,721

100,970

Bonds payable

Fixed liabilities
5,988

5,980

Reserve

119

124

Net defined benefit liability

863

925

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

(Millions of yen)
As of March 31, 2021
Other
Total fixed liabilities
Total liabilities-5-

As of September 30, 2021

1,339

1,597

94,033

109,598

149,683

178,293

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

(Millions of yen)
As of March 31, 2021

As of September 30, 2021

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,804

Retained earnings

48,64947,350Treasury stock(4,604)(4,530)Total shareholders’ equity

53,68252,443

Valuation difference on available-for-sale securities

521

516

Foreign currency translation adjustment

(1)

(2)

Accumulated other comprehensive income

Remeasurements of defined benefit plans

(8)

(7)

Total accumulated other comprehensive income

512

505

Share acquisition rights

199

265

Non-controlling interest

237

309

54,63253,524204,315

231,817

Total net assets
Total liabilities and net assets-6-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

(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 Ended
September 30, 2020

Six Months Ended
September 30, 2021

Net sales

51,58150,098

Cost of sales

41,20039,690Gross profit

10,38010,408Selling, general and administrative expenses

8,527

9,841

Operating income

1,853

566

Non-Operating income:Interest income

041

Dividend income

163

147

Commission fee

40

33Profit from equity method investment

95

9

Miscellaneous income

138

75

Total Non-Operating income

437

308

Interest expenses

576

903

Miscellaneous losses

93

83

Total Non-Operating expenses

670

986

Ordinary income (loss)

1,620

(112)

Net income before income taxes (loss)

1,620

(112)

Non-Operating expenses:

Income taxes – current

652

475

Income taxes – deferred

79

(407)

Total income taxes

731

68

Net income (loss)

888

(180)

Net income attributable to non-controlling shareholders (loss)

(4)

72

Net income attributable to owners of parent (loss)

893

(252)

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2020
Net income (loss)

Six Months Ended
September 30, 2021
888

(180)

Valuation difference on available-for-sale securities

256

(5)

Foreign currency translation adjustment

(0)

(1)

Remeasurements of defined benefit plans, net of tax

2

0

259

(6)

1,148

(186)

1,153

(259)

(4)

72

Other comprehensive income:

Total 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, 2021

(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.
(Changes in Significant Subsidiaries during the Period under Review)(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
During the first quarter of the fiscal year ending March 31, 2022, the Company newly acquired all of the issued
shares of ACA Clean Energy Co.,Ltd., and therefore included the company in the scope of consolidation.
ACA Clean Energy Co.,Ltd. changed its corporate name to Leben Clean Energy Co.,Ltd. as of June 22, 2021.
(Changes in Accounting Policy)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (“ASBJ Statement No. 29,
March 31, 2020, Accounting Standards Board of Japan”), from the beginning of the current first quarter. It
recognizes revenues for goods or services based on the amount estimated to be received in exchange for such
goods or services at the point when control of the promised goods or services is conveyed to the customer.
Therefore, in goods and services to customers, which were previously recorded as selling, general andadministrative expenses, the method of reducing the amount from the transaction price has been changed.
Effective from the first quarter of the current fiscal year, the Company has changed its method of accounting for
performance obligations that are to be fulfilled over a certain period of time by estimating the percentage ofcompletion for the fulfillment of the obligations and recognizing revenue over a certain period of time based on
the percentage of completion, except for construction projects of very short duration.
For the application of the revenue recognition accounting standard, etc the Company has followed thetransitional treatment prescribed in the proviso of Article 84 of the revenue recognition accounting standard, andthe cumulative effect of retroactively applying the new accounting policy prior to the beginning of the current firstquarter has been added to or deducted from retained earnings at the beginning of the current first quarter, and therelevant opening balance. The new accounting policy has been applied from the beginning of the current fiscal
year. However, the Company has not applied the new accounting policy retrospectively to contracts for which themethod prescribed in Article 86 of the Revenue Recognition Accounting Standard was applied and almost all of
the revenue amounts were recognized in accordance with the previous treatment prior to the beginning of thecurrent first quarter. In addition, the Company has applied the method prescribed in Article 86, Subparagraph (1)of the Accounting Standard for Revenue Recognition to account for contract changes made prior to the beginningof the first quarter of the current fiscal year based on the contract terms after reflecting all contract changes, andhas added or subtracted the cumulative effect of such changes to retained earnings at the beginning of the firstquarter of the current fiscal year. The cumulative effect of this change was added to or deducted from retained
earnings at the beginning of the first quarter of the current fiscal year.
As a result, the impact on the quarterly consolidated financial statements for the second quarter of the current
fiscal year is minimal.
Due to the application of Accounting Standard for Revenue Recognition, "Notes and accounts
receivable-trade," which were presented in "Current assets" in the consolidated balance sheet for the previous
fiscal year, are now included in "Notes, accounts receivable-trade and contract assets" from the first quarter of thecurrent fiscal year. In accordance with the transitional treatment stipulated in Article 89-2 of the AccountingStandard for Revenue Recognition, no reclassification has been made for the previous fiscal year using the newpresentation method.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2021

(Application of the Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019, Accounting Standards Board of Japan,”), from the beginning of the current first quarter, 2021. The
company has prospectively decided to apply new accounting policies based on the Accounting Standard for Fair
Value Measurement, in accordance with the transitional measurement in Article 19 of Accounting Standard for
Fair Value Measurement and Article 44-2 of “Accounting Standard for Financial Instruments,” (“ASBJ Statement
No.10, July 4, 2019).The impact of application of the Accounting Standard for Fair Value Measurement, on
consolidated financial statements for the current first quarter is immaterial.

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