Earnings Results Briefing
for the Six Months Ended
September 30, 2015
November 6,2015

Takara Leben Co.,Ltd.

Contents

Summary for The Six months Ended September 30, 2015

・・・・・・

P2

Metropolitan area condominium market trends

・・・・・・

P6

Progress in the business during the first half of the 44th term ・・・・・・

P8・・・・・・

P 17

・・・・・・

P 21

Topics for The Six months Ended September 30, 2015 &Strategies going forward

Year Ending March 2016 Dividends, andFinancial Result Forecast for The Year

History1972

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

2011

40th anniversary of the founding

2012

Introduced New Condominium Brand

1982

Launched real estate leasing business

Introduced Corporate character

1988

Established Takara Management Co.,Ltd.
(the present Leben Community)
Launched real estate management business

Established Yokohama branch

1994

Made Takara Housing Co.,Ltd.
(the present Takara Property Co.,Ltd.) its subsidiary
Rental business management operations

Launched sales of condominiums "Leben Heim"

2013
2000

Changed company name to "Takara Leben Co.,Ltd."2001

Launched financial brokering business
Established Tafuko Co.,Ltd.

2003

Listed on the second section of the Tokyo Stock Exchange

2004

Listed on the first section of the Tokyo Stock Exchange
Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

2008

Entry to mega-solar business
Established Takara Asset Management Co.,Ltd.
Launched investment management business
Esstablished Takara Investments Co.,Ltd.
Launched real estate investment business
Made Sunwood Corporation it's associated company
accounted for by the equity method

2014

Made Marunouchi Servicer Co.,Ltd.
its subsidiary

Established Hokuriku Office
Established Tohoku Office
Made Oasis Co.,Ltd.(the present Takara Leben Realnet) its subsidiary
Made Nikko kensetsu Co.,Ltd. its subsidiary

Released new corporate logo

2010

Launched detached housing business (buidt by Takara Leben)

2015

Made Livenet home Co.,Ltd.(the present Takara Leben Tohoku) its subsidiary
Made Jutakujyouhoukan Co.,Ltd. its subsidiary1Leben Kotesashi REVOLVE

Summary for The Six months Ended
September 30, 20152

Consolidated Income Statements（Unit Amount=Million yen ）YOYchange(%)

Six months ended
September 30, 2014

Six months ended
September 30, 2015

18,784

26,536

41.3％

Operating profit

719

1,812

152.1％

Ordinary profit

243

1,461

499.6％Net income

165875427.4％Net sales

3Segment Information 【 Net Sales 】（Unit Amount=Million yen ）Six months
ended
September 30,
2014

Ratio
(%)

Six months
ended
September 30,2015

Ratio
(%)

Real estate sales
business

15,431

82.1％

20,541

77.4%

Real estate rental
business

896

4.8％

2,107

7.9%

Real estate
managementbusiness

1,449

7.7％

1,660

6.3%

Other businesses

Total

1,007
（selling electric powerin the mega-solar：163）

18,784

5.4％
100％

2,226
（selling electric powerin the mega-solar：429）

26,536

8.4%
100%

4

Consolidated Balance Sheets（Unit Amount=Million yen ）Year ended March2014

Six months ended
September 30, 2015

YOY change(%)

67,31968,776

2.2％

Cash and cash equivalents

26,281

21,222△19.2％

Inventories

35,34542,121

19.2％

4,901

3,710

△24.3％

30,444

38,411

26.2％

Fixed assets

34,40041,77021.4％

Total assets

101,738

110,579

8.7％

34,80035,3301.5％

Notes and accounts payable, trade

10,0236,249△37.7％

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

15,12020,85037.9％

35,74844,51424.5％

33,23541,722

25.5％

Total liabilities

70,54979,845

13.2％

Net assets

31,18930,734△1.5％

Capital

4,819

4,819

―

Other shareholder equity

26,36925,914△1.7％

Total liabilities and net assets

101,738

110,579

8.7％

Current assets

Real estate held for sale
Real estate for sale under construction

Current liabilities

Fixed liabilities
Long-term borrowings

5

Leben Moriya THE BRIDGE

Metropolitan area condominium market trends

6Metropolitan area condominium market trendsInner city condominium market trends■Background・Elected to host the 2020Tokyo Olympics
and Paralympics
・The expectations for it to escape deflation
by abenomics
Sales prices rising
Exodus of first-time buyers from themetropolitan area to the suburbs（Unit Amount=10 thousand yen ）(Reference) Average sales prices in the Tokyo
metropolitan and ward areas
6,500
6,000
5,500
5,000
4,500
4,000
3,500

2009

2010

2011

2012

the Tokyo metropolitan area

2013

2014

ward areas(Source: Condominium Market Trends by Real Estate Economic Institute Co., Ltd)

Metropolitan area suburbs condominium market trends■ Background・・・・Decline in the number of developers and supplied units after the Lehman ShockThe market environment remained sound as a sustained demandfor condominiums continued to be strong.
[Types of existing suppliers of built-for-sale suburban condominiums](i) Suppliers that emphasize proximity to stations and convenience(ii) Suppliers that emphasize locations within 10 minutes of the nearest station and in a good housing environment(iii) Suppliers that emphasize prices (supply at low prices) irrespective of the distance from the nearest station

Supply of properties with high specifications in good locations = Differentiation fromcompetitors ⇒ Solid progress in contracts signed
7

LEBEN THE TSUKUBA

Progress in the business during the first half ofthe 44th term
8

Contract Progress・ Delivery Results
Contract Progress■Contract progress ratio◆ at the year end of September 30, 2015

Contract progress ratio

（％）

100.0

・New built-for-sale condominium business⇒ 86％ （Previous fiscal year83％）
・Detached house business⇒ 52％ （Previous fiscal year45％）

80.0
60.0
40.0
20.0
at the year end ofSeptember 30, 2014

at the year end ofSeptember 30, 2015

Solid trend of contracts signed continued fromthe previous period

New built-for-sale condominium business
Detached house business

Delivery Results■Delivery progress ratio◆New built-for-sale condominium business・at the year end of September 30, 2014⇒22％
・at the year end of September 30, 2015⇒27％

◆Detached house business・at the year end of September 30, 2014⇒21％
・at the year end of September 30, 2015⇒33％

Same level of deliveries as the previous period,
indicating that a concentration of deliveries is expected to occur in the fourth quarter

9New built-for-sale condominium business in the metropolitan area
Trends in Sales Prices（ New built-for-sale condominium ）■Rise in the exodus of first-time buyers to the suburbs due to the increase in prices in themetropolitan area
■Gap between property prices in areas near suburban stations and the prices of expensive
properties offered by the Zaibatsu conglomerates
Changes in average selling price

Average selling price(FY16/3)（Unit Amount=10 thousand yen ）4,000■Planned・・・3,786■Current・・・3,812

3,800
3,600
3,400
3,200
3,000

Comparison with the plan2,800
FY2013/03

FY2014/03

FY2015/03

FY2016/03

26 up（Unit Amount=10 thousand yen ）Aim to sell at the highest possible prices within a reasonable pricing range based on thedeliberate analysis of market trends
10Local city strategy（1）Project of the area to advance newly■Kanazawa-Ootemachi Project
Address ：Ootemachi,Kanazawa-shi
Number of units ：18 units （Planned）■Fukui-Hinode Project
Address ：Hinode,Fukui-shi
Number of units ：36 units （Planned）■Aomori-Yaskata Project
Address ：Yasukata,Aomori-shi
Number of units ：39 units （Planned）■Akita-Nakadori Project
Address ：Nakadori,Akita-shi
Number of units ：56 units （Planned）■Nagaoka-Terashimacho Project
Address ：Terashima-cho,Nagaoka-shi
Number of units ：130 units （Planned）■Hiroshima-Ootemachi Project
Address ：Ootemachi,Naka-ku,Hiroshima-shi
Number of units ：26 units （Planned）■Matsuyama-Itibancho Project
Address ：Ichiban-cho,Matsuyama-shi
Number of units ：70 units （Planned）

Steady expansion of areas toward the establishment of a system capable of managing
1,000 units per year in regional cities.

11Local city strategy （2）Comparison of customer attributes ～Metropolitan area ｖｓ Local city ～LEBEN Gotanno LUNA TOWER
an annual income

LEBEN Gotanno LUNA TOWER

More than 10or Cash19%

7 to 1023%

LEBEN ToyamaSogawa ResidenceLess than 410%

More than 60or older
4%20-29 years old
4%50-59 years old
13%

4 to 748%

LEBEN Toyama Sogawa Residence
an annual income

More tha 10 orCash
60%

LEBEN Gotanno LUNA TOWER
contractor age

40-49 years
old26%

30-39 years
old53%LEBEN Toyama Sogawa Residence
contractor age

Less than 45%20-29 years old2%30-39years old24%

4 to 721%

More than
60 or older
29%

7 to 1014%

50-59 years 40-49 yearsoldold
24%
21%（Unit Amount=10 thousand yen ）Active seniors are the main target for properties in local cities

12Local city strategy （3）Start of new sales – Properties in regional areas■LEBEN Koriyama PRINCIPAL TOWER
Address：33-1,Tsutsumishita-machi,
Koriyama-shi,Fukushima
Access：14-minutes walk from Koriyama
Station on JR Tohoku Main Line
Number of units：71 units■LEBEN Nagano-Minamichitose
Address：2-2-1,Minamichitose,Nagano-shi,Nagano
Access：7-minutes walk from Nagano Station
on JR Hokuriku Shinkansen andJR Shinetsu Main Line
Number of units ：42 units■LEBEN Toyama VALEST TOWER
Address：134,Ushijima-cho,Toyama-shi,Toyama
Access：3-minutes walk from Toyama Station
on JR Hokuriku Shinkansen
Number of units ：119 units■LEBEN Mito THE PREMIERE
Address：2-5,Minami-machi,Mito-shi,Ibaraki
Access：8-minutes walk from Mito Station
on JR Joban Line
Number of units ：158 units

Solid progress in contracts signed for respective properties

13

Scrap & Build
Older properties near stations in the Tokyo metropolitan area
■ Itabashi-ku Project… 1-minute walk from Shin-itabashi Station on Toei Mita Line.

■ Monzennakacho Project … 1-minute walk from Monzennakacho Station on Tokyo-metro Tozai Line.
■ Asakusa Project… 7-minutes walk from Asakusa Station on Tsukuba-express Line.

■ Sagamihara Project… 4-minutes walk from OdakyuSagamihara Station on OdakyuOdawara Line.

■ Togoshi Project… 3-minutes walk from Togoshi Koen Station on Tokyu Oi Line.

■ Yoga Project… 1-minute walk from Yoga Station on Tokyu Denentoshi Line.

⇒Scrap and build within a few years

Transition to rental business (offices, condominiums, etc.) orbuilt-for-sale condominium business14

Mega-solar power business
Mega-solar power generation facilities
・LS Shioya

・LS Tone Fukawa

・LS Hokota Kamigama

・LS Koga Onanuma

・LS Miyakojima Gusukube

・LS Fukushima Yamatsuri

・LS Tone・LS Inashiki Aranuma Ⅰ

・LS Shirahama

・LS Chikusei

・LS Inashiki Aranuma Ⅱ・LS SakuragawaⅣ・LS Chiba Wakabaku

・LS Kamisu Hasaki・LS Sakuragawa Nakaizumi

・LS Tsukuba Bouchi

・LS Nasu Nakagawa

・LS Sakuragawa Shimoizumi

・LS Miho

・LS Fujioka

・LS Ryugasaki Kousa・LS Kirishima Kokubu

・LS Sakuragawa Ⅰ

・LS Mase

・LS Sousa

・LS SakuragawaⅡ・LS Mito Takada

・LS SakuragawaⅢ

・LS Miyagi Oosato

・LS Hannou Misugidai

・LS Aomori Tsugaru Hirauchi

・LS Aichi Toyohashi※LS＝Leben Solar

Total electric power generation
102ＭＷ

Approximately 18MW is in operation, with the total electric power generation expected
to be 102MW. Steady progress toward the generation of 130MW
15

Real estate rental business
Procured properties to be posted as revenue for this term

■Sendai-Nikko building
Address：Chuo,Aoba-ku,Sendai-shi,Miyagi
Access：6-minutes walk from Sendai Station
on JR Tohoku Shinkansen.
1-minute walk from Sendai Station
on Subway Nanboku Line.

■Joyful Kouenzi
Address：Koenzi,Suginami-ku,Tokyo
Access： 5-minutes walk from Kouenzi Station
on Chuo Line.
Sendai Nikko building■President city building
Address：Izumichuo,Sendai-shi,Miyagi
Access： 5-minutes walk from Izumichuo Station on Subway Nanboku Line.

Steady progress toward the achieving the goals of the plans
16

LEBEN Sendai SILVISTA

Topics for The Six months Ended September 30, 2015
Strategies going forward
17

Topics for The Six months Ended September 30, 2015
Establishment of infrastructure investment corporation
Asset management company■ Company Name
Takara Asset Manegement Co.,LTD.
■ Address
1-5-1,Ootemachi,Chiyoda-ku,Tokyo■Established
October 2013

Infrastructure investment corporation■ Company Name
Takara Leben Infrastructure
Investment Company■ Address
1-5-1,Ootemachi,Chiyoda-ku,Tokyo■ Established
August 2015

Effects of listing■ Enhancement of stock businesses■ Social contribution through the utilization of natural energy

Preparations are progressing steadily for listing at the earliest opportunity
18

Strategies going forwardMain Measures & Segment Goals of Mid-term management plan
Diversifying flow businesses
New built-for-salecondominium business

Units sales per year

Redevelopment &Rebuilding Business

2,020uints

Detached house business（Previous Mid-term management plan）

Units sales per year
2,700uints
Condominium 2,200uints
Detached house 500uints（FY2019/3）

Expanding stock and fee-based business
Mega-solar power businessElectric power generation
16MW

Electric power generation
130MW

Real estate management business

The management units
38,700units

The management units
50,000units

Real estate rentaland management business

The management units
4,500units

The management units
6,200units

Real estate rental businessAnnual sales
2.9billion

Annual sales
6.0billion

Real estate
distribution businessAnnual sales
0.4billion

Annual sales
1.0billion（FY2015/3）（FY2019/3）

19Strategies going forward
Entry into the REIT market
Company overview■ Company Name
Takara Investments Co.,LTD■ Address
2-6-1,Nishi-shinjuku,Shinjuku-ku,
Tokyo1■Established
October 2013
■ Principal businesses
Real estate investment business

Future business development
Used properties in good
locations near railway stations

Replacementof asset

Scrap & Build

Condominium

Properties currently owned

Real estate
rentalSale

Purch
ase

ＲＥＩＴ

Takara Investment Co., LTD began operation, aiming to be listed as a REIT in 201720

Leben Kenkyugakuen NEXIO

Year Ending March 2016 Dividends, andFinancial Result Forecast for The Year21

Year Ending March 2016 Outlook (Consolidated)（Unit Amount=Million yen ）Year ended
March 31,2015

Year ending
March 31,2016

（New built-for-salecondominium+detached house）

1,905

1,686

△9.8％

（¥million）

76,95693,80021.9％

Operating profit（¥million）

9,257

13,35044.2％Ordinary profit （¥million）

8,540

12,40045.2％（¥million）

5,718

8,150

42.5％

Units soldNet sales

Net income

YOY change(Forecast)22

Cash Dividends, Preferential treatment

1st half dividends Year-end dividends

Total

Year ended
March 2015

2.0 Yen

4.0 Yen

6.0 YenYear ending
March 2016
Forecast

4.0 Yen

6.0 Yen

10.0 Yengift 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 (1,320yen)

1,000 shares or more

5kg (2,200yen)

23On acquisition of treasury stock◆ Type of shares acquired : Common stock of the Company◆ Total number of shares for acquisition : 2,000,000 shares(Upper limit)
Ratio to total number of outstanding shares (Excluding treasury stock) 1.79％◆ Total acquisition value : 1,500,000,000 yen(Upper limit)◆ Acquisition period :From May 12,2015 to March 31,2016◆ Acquisition method :Open market repurchase on the Tokyo Stock Exchange◆ Status of acquisition (Total number of shares acquired as at the end of October) ：1,531,000 shares ／ 970,552,700 yen

24Enquiries Relating to These Materials
Corporate Planning Division
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, 2015 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, 2015. 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.