Earnings Results Briefing
for the Six Months Ended
September 30, 2013
November 6,2013

Contents

Summary for The Six months Ended September 30, 2013 ・・・・・・

P 4Topics for The Six months Ended September 30, 2013

・・・・・・P 10

Our Views on The Hosting of The Olympics and Inflation, ・・・・・・
and Our Initiatives

P 13

Year Ending March 2014 Dividends, and Financial Result
Forecast for The YearP 26

・・・・・・Four Decades of Business
Established Takara Komuten Co.,Ltd.
(the present Takara Leben)
Launched sales of detached houses

Made Marunouchi Servicer Co.,Ltd. itssubsidiary
Released new corporate logo

Launched real estate leasing business
Launched detached housing business(buidt by Takara Leben)
Established Takara Management Co.,Ltd. (the present Leben Community)
Launched real estate management business

Launched sales of condominiums "Leben Heim"

Changed company name to "Takara Leben Co.,Ltd."

Capital increase based on Japan’s firstrights offering
Joined an open house and began sales ofcustom-built houses
40th anniversary of the founding

Introduced New Condominium Brand
Launched financial brokering business
Established Tafuko Co.,Ltd.
Listed on the second section of theTokyo Stock Exchange
Listed on the first section ofthe Tokyo Stock Exchange
Established Relivel Leben Co.,Ltd.(the present Live Net Home Co.,Ltd.)
Launched trustee division for real estate sales
Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

Introduced Corporate character
Establish Yokohama branch
Made Takara Housing Co.,Ltd.(the present Takara PropertyCo.,Ltd.) its subsidiary
Rental business management operations
Entry to mega-solar business1

Current economic conditions
Expectations for Abenomics

Monetary easing of different
dimension by BOJCorrection of excessively strong yen and a rising stock market,
rising business sentiment

Increases in capital expenditures,wage increases at some companies

Will these boost private demand ?
2

Environment for the Company
Railroad companies sharing the same lines
Traffic convenience improving in suburban areas
Zaibatsu conglomerates aggressively supply properties
in the suburbs of the Tokyo area
Takara Leben

Zaibatsu

TargetNarrow target area
Area demands
Annual salary 4-6million yen

Broad target area
Urban area (around Tokyo) demand
Annual salary 6-12 million yen
Near station

LocationEmphasis on living environment(near school, supermarkets, parks, etc)
10-15 mins from station

Prime commercial locations

Increasing contract ratios due to inflows of customers from central Tokyo3

Summary for the Six months Ended
September 30, 20134

Consolidated Income Statements（Unit Amount=Million yen ）Six months ended
September 30, 2012

Six months ended
September 30, 2013

YOYchange(%)

Net sales

34,56017,916△48.2％

Operating profit

3,088

542

△82.4％

Ordinary profit

2,827

159

△94.4％Net income

2,054257△87.5％

5

Consolidated Segment Information 【 Breakdown of Real Estate Sales Business 】（Unit Amount=Million yen ）Six months ended
September 30,
2012

Ratio
(%)

Six months ended
September 30,
2013

Ratio
(%)

Real estate sales
business

31,78892.0％

15,172

84.7％

Real estate rental
business

707

2.0％

833

4.7％

Real estate
managementbusiness

1,264

3.7％

1,353

7.6％

Other businesses

800

2.3％

557

3.1％

34,560100％

17,916

100％

Total

6

Schedule of delivery 【new built-for-sale condominium 】
Schedule of completion and delivery
in the year ending March 2014
（unit） 700593600500
400269300

23420010001585255

ＡＰＲ
4月

ＭＡＹ
5月

20810240ＪＵＮ
6月

ＪＵＬＹ
7月

ＡＵＧ
8月

ＳＥＰＴ
9月

Number of completion and delivery
305units（ 5 buildings ）

ＯＣＴ
10月

ＮＯＶ
11月

ＤＥＣ
12月

ＪＡＮ
1月

ＦＥＢ
2月

ＭＡＲ
3月

Number of completion and delivery
1,406units（18 buildings ）Collection of proceeds from properties completed in the fiscal year
under review concentrates in the second half.

7

Contracted ratio status（New built-for-sale condominium）
Contracted ratio status（ at the Six Months Ended September 30, 2013 ）（unit）

2,000
1,710

1,8001,630

1,600
1,400

1,342

1,200

1,543

1,57094.7%

91.8%■Year ending March 31, 2014 (42th)

Scheduled for delivery
1,710 units
91.8% of units(1,570 units)

1,000

1,114

for delivery Year ending March 2014
contracted

80083.0%(at the year end of September 30, 2013)

600【consultation】■Year ended March 31, 2013 (41th)
Delivered : 1,543 Units,94.7% of units for delivery
Year ended March 2013 contracted

4002000Year ended
March 2012

Year ended
March 2013

Year ending
March 2014

■Year ended March 31, 2012 (40th)
Delivered : 1,114 Units, 83.0% of units for delivery
Year ended March 2012 contracted

Contracts are concluded in line with the plan.

8Consolidated Balance Sheets（Unit Amount=Million yen ）Year ended March2012

Six months ended
September 30, 2013

YOY change(%)

55,93260,576

8.3％

Cash and cash equivalents

17,911

19,045

6.3％

Inventories

35,37637,825

7.0％

Real estate held for sale

2,067

466

△77.5％

Real estate for sale underconstruction

33,30837,386

12.2％

Fixed assets

19,081

20,4187.0％

Total assets

75,01380,9948.0％

Current liabilities

29,02532,585

12.3％

Notes and accounts payable, trade

7,920

5,374

△32.1％

Debts（short-term borrowings, long-term
debt within one year）

14,004

19,38438.4％

21,84026,21920.0％

20,84925,149

20.6％

Total liabilities

50,86658,804

15.6％

Net assets

24,14722,190△8.1％

Capital

4,819

4,819

－Other shareholder equity

19,32817,370△10.1％

75,01380,9948.0％

Current assets

Fixed liabilities
Long-term borrowings

Total liabilities and net assets

9Topics for the Six Months Ended
September 30, 2013
10LEBEN SOLAR SHIOYA

Completion and commencement of power generation
on August 29, 2013
■ Location : Shioya-gun, Tochigi Prefecture■ Site area : 36,727.35㎡■ Installed number of solar panel： 11,949 units（250W/per）■ Power class : About 3 MW

11

Promote solar-powered condominiums

Unit-based Solar-poweredCondominium Supply Ranking

Nationwide
Ranked 1st※Unit-based Solar-powered Condominium Supply Ranking(availablein each individual home unit)※Source: Real Estate Economic Institute Co., Ltd.

12

Our views on the hosting of the Olympics
and Inflation, and our initiatives
13Changing economic conditions

Before 2013

Deflation

From 2013

Inflation expectations
and rising consumer sentiment

2020

The Tokyo Olympic Games14

Expected effects on real estate industry
Land purchasing prices
Redevelopment of central Tokyo associated with the Olympics→ Land prices in central Tokyo are expected to rise further as the Olympics approaches.

Construction costs
Flows of people and goods associated with projects related to the Olympics→ Material costs and labor costs are expected to rise as the Olympics approaches.

Real estate sales prices
Rising consumer confidence due to inflation expectations and increasing income associatedwith the government’s initiatives→ Sales prices are expected to rise after a time lag.

Financial trends
Heavy supply by the Bank of Japan → Continued low interest rates are forecast
15

The Company’s policies
Main Measures of Takara Leben Next Stage 2016
【 From FY2013/3 through FY2016/3 】

1

Steady increase in number of units sold2

Promote solar-powered condominiums

3

Entry to mega - solar business4

Stable supply of condominiums in central area in local cities

5

Restructure the detached house businessResponding flexibly to the timesunder the mid-term management plan

16

The Company’s new initiatives
１． Controlling costs for purchases and construction

２． Strengthening projects in the central areas of provincial cities

３． Supplying high-priced products in central Tokyo

４． Enhancing renovated properties

５． Entering the fund business17

Controlling costs for purchases and construction【1】Land purchasing prices（ million yen ）10,000Changes in unit prices of land purchased
8,661

9,000
8,000

7,485

7,193

7,000

6,212

6,000

6,201

5,000

Competitors are declining in the suburbs of
the Tokyo area, on which we are focusing.
↓We expect that land prices will not rise
sharply.
Obtain lands for medium- to long-term projects

4,000■ Kenkyugakuen Tsukuba: About 200 units

3,000
2,000

■ Chiba New Town Chuuou: About 300 units

1,000
0

Change in competitive situation

Year ended
March 2011

Year ended
March 2012

Year ended
March 2013

Year ended From year ending
March 2014
March 2015
（ at September 30,2013 ）■ Sendai city : About 400 units

Purchasing land for projects over the medium to long term
at standard prices in areas

18

Controlling costs for purchases and construction 【2】Construction costs（ million yen ）22,500Changes in unit prices of Construction costs

20,00017,50016,60916,93416,091

16,594 18,194

15,00012,500

Revenue and expenditure plan
Expecting rising construction costs,
we will make income plans on theassumption of a unit cost of ¥18.5 million
at the time of purchase.
The gross margin will be kept at 24% to 25%.

10,0007,500

Use of local general contractors

5,000
2,500
0

Year ended Year ended Year ended Year ended From year ending
March 2011 March 2012 March 2013 March 2014
March 2015（ at September 30,2013 ）Using our network of regional banks, we will
make the most of local general contractors.
↓Cost control

Maintaining a certain gross margin through careful income planningand cost control

19Strengthening projects in the central areas of provincial cities

Stepping up land purchases in provincial cities

Sendai, Miyagi
about 400 units

Mito, Ibaragi

Boosting the number of housing units
we supply annually
・Boosting purchases in central areas ofprovincial cities
・ The number of built-for-salecondominium delivered （annual goal）■Medium-term Management Planabout 150 units■ Year ending March 2017200～300units↓500 units

Developing new areas where we supply housing

20

Supplying high-priced products in central Tokyo
Sunwood Corporation becoming a Group company
Company Name : Sunwood Corporation

February 27, 1997
Headquarters : 7th Floor, Toranomon 30
Mori Building, 3-2-2 Toranomon,
Minato-ku, Tokyo 105-0001
President :Yoshimi Sasaki
Paid-in Capital : 1,266 million yen (as of March 31, 2013)
Employees :52 (as of March 31, 2013)
Founded :Scope of Business :- Development and sales of condominium- Real estate agency and brokerage services- Real estate operation and management

Area

Mature areas especially in central Tokyo（Minato-ku,Shibuya-ku,Meguro-ku）

TargetHigh-income class, Second-time buyer bracket,
The middle-aged and elderly

Developing new targets
21Supplying high-priced products in central Tokyo
Characteristics of buyers of housing units from Sunwood
Annual income:Ratio of buyers with annual salary over 10 million yen
Over10million
yen

53％

Age:
Ratio of buyers over 40 years oldover 40years old62％

Home ownership:
Ratio of buyers owning their homes

owners50％

High-income classThe middle-aged
and elderly

Second-time buyer
bracket22

Enhancing renovated properties
Enhancing the Le Art brand in central Tokyo and in front of stations inthe suburbs
Developing properties in areas where asset value is highAreas
Stepping up purchases in central Tokyoand in front of stations in the suburbs↓"LE ART" is a series of renovation
condominium. Our aim is to expand our profitsand business scope by creating added value
through the use of redevelopment methods.

Providing renovated properties thatmeet the needs of the high-income
class and the elderly

Responding to the aging of society
23Entering the fund business【1】Takara Asset Management Co., Ltd.
【 Principal businesses 】 Investment Management, Type II Financial Instruments Services,Investment Advisory and Agency Business【 Date of establishment 】 October 28, 2013

Establishing an investment corporation (mega-solar fund)Aiming to be listed on the J-REIT market or a new infrastructure market

Takara Investments Co., Ltd.
【 Principal businesses 】 Real Estate Investment Business【 Date of establishment 】 October 28, 2013

Management of public-private funds etc.
24

Entering the fund business【2】Mega solar project
NameLocation

scalestatus

LEBEN SOLAR SHIOYA

Shioya, Tochigi

2.98MW

working

LEBEN SOLAR KOGA ONANUMA

Koga, Ibaragi

58.14kWworking

LEBEN SOLAR TONE

Kitasouma, Ibaragi 162kW

working

LEBEN SOLAR MIHOInashiki, Ibaragi

1.06MWunder
preparation

LEBEN SOLAR CHIKUSEI

Chikusei, Ibaragi

1.08MWunder
preparation

LEBEN SOLAR TSUKUBA BOUNAI

Tsukuba, Ibaragi

2.48MWunder
preparation

LEBEN SOLAR CHIBA SOSA

Sosa, Chiba

2.52MWunder
preparation

Total power generation is planned to be 10.3 MW.
(including electricity already generated)25

Year Ending March 2014 Dividends
financial result forecast for the year26

Year Ending March 2014 Outlook 【Consolidated】（Unit Amount=Million yen ）Year ending
March 31, 2014

Year ended
March 31, 2013

Year ending
March 31, 2014

1,786

1,860

1,860

－Net sales

64,90771,65072,2500.8%

Operating profit

6,361

9,300

9,500

2.2%

Ordinary profit

5,792

8,515

8,715

2.3%

Net income

4,074

5,030

5,380

7.0%

Units sold[New built-for-sale condominium+
detached house](Forecast)revision to theresults forecast

YOYchange27Cash Dividends, Preferential treatment
1st half dividends
Year ended
March 2013

5TotalYear-end dividends

yen

10

15 yenyen

Year ending
3 yen
1.5 yen
4.5 yenMarch 2014
Forecast＊ (prior to the stock split ¥6) (prior to the stock split ¥12) (prior to the stock split ¥18)
*The Company has conducted a 4-for-1 stock split, with an effective date of July 1, 2013.
The annual dividend (forecast) for the fiscal year ending March 31, 2014 takes the effect of the stock split into consideration.

gift certificates for packages of rice
100 shares or more to less than 500 shares

1kg (440yen)

500 shares or more to less than 1,000 shares

3kg (1320yen)

1,000 shares or more

5kg (2200yen)

28

On acquisition of treasury stock■Type of shares acquired : Common stock of the Company■Total number of shares for acquisition : 8,000,000 shares (Upper limit)＊Ratio to total number of outstanding shares (Excluding treasury stock) 6.7％

■Total acquisition value : 4,000,000,000 yen(Upper limit)■ Acquisition period :From May 13,2013 to March 31,2014■ Acquisition method :Open market repurchase and repurchase through off-auction
own share repurchase trading (ToSTNeT-3)
on the Tokyo Stock Exchange■ Status of acquisition (Total number of shares acquired as at the end of October) ：4,000,000 shares ＊ ／ 2,000,000,000 yen*The Company has conducted a 4-for-1 stock split, with an effective date of July 1, 2013.
The annual dividend (forecast) for the fiscal year ending March 31, 2014 takes the effect of the stock split into consideration.
29

Enquiries Relating to These Materials
Marketing Planning Office
Management Planning Section

E-mail：irinfo@leben.co.jp

These materials were prepared to provide information regarding business performance for the six months ended September 30, 2013 and do notconstitute a solicitation for investment in securities issued by Takara Leben Co., Ltd. These materials were prepared based on data
available as of September 30, 2013. These materials, as well as answers, projections, estimates, and other information provided in thesubsequent question and answer session are based on Takara Leben's best judgment as of the preparation of this material, and do notconstitute a guarantee or promise that anything contained within will be realized or achieved, nor do they provide any guarantees orpromises with regard to the accuracy or completeness of the information. The content of these materials is subject to change without prior notice.