First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2014 (Japan GAAP)
July 28, 2014

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEOToshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
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:

August 8, 2014
-NoNo

1. Consolidated Operating Results for the Three Months Ended June 30, 2014
(April 1-June 30, 2014)(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

Three months ended June 30, 2014

5,165

(63.3)(468)-(689)-%(403)-Three months ended June 30, 2013

14,062(17.0)

1,393

(0.3)

1,192

(7.2)

716

(19.3)

Millions of yen%

Millions of yen(Note) Comprehensive income: Three months ended June 30, 2014: (403) (－%) / Three months ended June 30, 2013: 706((19.6)%)
Net Income perShare

Diluted Net Incomeper ShareYenYenThree months ended June 30, 2014

(3.53)-Three months ended June 30, 2013

6.10

6.09

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2014

93,691

26,45328.1

As of March 31, 2014

95,891

27,13828.2<Reference> Shareholders’ equity at end of period: June 30, 2014: ¥26,366 million / March 31, 2014: ¥27,084 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2014

-Year Ending March 31, 2015

-3Q
Yen

Year Ending March 31, 2015 (Forecast)Year-End
Yen

Total

Yen

Yen

1.50

-

3.50

5.00

2.00

-

4.00

6.00

(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, 201 5(April 1, 2014-March 31, 2015)(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

77,050

7.1

10,300

5.1

9,500

3.5

5,900

0.5

51.74

(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: No
B. Changes in accounting policies other than those in (1): 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.

As of June 30, 2014:

130,000,000 shares

As of March 31, 2014:

130,000,000 sharesb.

As of June 30, 2014:

15,986,807 shares

As of March 31, 2014:

15,974,807 sharesc.

Three months ended June 30, 2014:

114,032,358 shares

Three months ended June 30, 2013:

117,456,976 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the FinancialInstruments 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 Three Months Ended June 30, 2014

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. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the First-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
3. Quarterly Consolidated Financial Statements .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 6Quarterly Consolidated Statements of IncomeFirst-Quarter Year-to-Date Period ................................................................................................................... 6
Quarterly Consolidated Statements of Comprehensive IncomeFirst-Quarter Year-to-Date Period ................................................................................................................... 7(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 8(Notes on Assumption of Going Concern) ......................................................................................................... 8(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 8-1-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

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 first-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2015, sales
from the real estate sales business amounted to ¥3,481 million, down 72.5% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business .
The gross margin in the built-for-sale condominium business improved to 26.6%, compared with 25.7% in theprevious consolidated fiscal year.
In the real estate rental business, sales totaled ¥435 million, up 6.7% 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 36,306 units of residential
condominiums were ¥720 million, up 7.3% on a year-on-year basis.
Sales from other businesses amounted to ¥527 million, up 56.9% on a year-on-year basis, mainly revenues
from large-scale repair work and revenues from electric power selling in mega-solar business.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amountedto ¥5,165 million, down 63.3% on a year-on-year basis; Operating loss amounted to ¥468 million, Operating
income for the same period of the previous year was ¥1,393 million; Ordinary loss amounted to ¥689million,Ordinary loss for the same period of the previous year was ¥1,192 million; and Net loss amounted to ¥403
million, Net income for the same period of the previous year was ¥716 million.
b. Overview
The built-for-sale condominium business delivered 69 units including LEBEN Kitasenjyu). In the fiscal year
ending March 2015, although there has been a steady rate of contract signings, because delivery is concentrated
in the second half, the majority of sales and income from those contracts is expected to be recorded in the second
half..
c. Contracted ratio status
With regard to sales performance in the first-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,169 units, compared with a full-year target of 1,702 units scheduled for delivery.
The contract ratio was at 68.7% showing a steady growth in the business.
(Contracts signed versus number of units forecast for delivery)
Units scheduled for
Number ofContracted ratiodeliverycontracts signed(%)(units)(units)New built-for-sale
1,702
1,169
68.7
condominium(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 first-quarter consolidated
accounting period under review, total assets were ¥93,691 million, an decrease of ¥2,199 million compared withthe end of the previous consolidated fiscal year. The decrease mainly reflected a decrease in cash and deposits as-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014a result of Settlement of notes payable.
(Current Assets)
Current assets decreased ¥2,563 million compared with the end of the previous consolidated fiscal year to¥69,961 million. This mainly reflected a decrease in cash and deposits as a result of Settlement of notes payable.
(Fixed Assets)
Fixed assets increased ¥364 million compared with the end of the previous consolidated fiscal year to ¥23,730
million, mainly reflected an increase in tangible fixed assets as a result of an increase in the number ofconsolidated subsidiaries,.
(Current Liabilities)
Current liabilities decreased ¥2,722 million compared with the end of the previous consolidated fiscal year to¥34,988 million, mainly due to decreased notes payable.
(Fixed Liabilities)
Fixed liabilities increased ¥1,207 million compared with the end of the previous consolidated fiscal year to¥32,249 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets decreased ¥684 million compared with the end of the previous consolidated fiscal year to¥26,453 million. The decrease was attributed to the net loss for the first quarter and a decrease in capital surplus
due to dividends paid.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 12, 2014.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-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 FinancialStatements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
The Company had no pertinent matters to report.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2014

As of June 30, 2014ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable, trade35,964

26,690405

400Real estate held for sale

1,156535

Real estate held for sale in progress

32,28838,228

Other

2,753

4,148

Allowance for doubtful accounts
Total current assets

(43)

(43)

72,52469,961

Fixed assets:
Tangible fixed assets
Buildings and structures (net)

5,108

5,155

Land

14,10014,303

Other (net)

2,024

2,131

Total tangible fixed assets

21,233

21,590

513

516

1,729

1,680

Intangible fixed assetsInvestments and other assets
Other
Allowance for doubtful accounts

(109)

(56)

Total investments and other assets

1,619

1,623

23,36623,73095,891

93,691

Notes and accounts payable, trade

20,692

12,180

Short-term borrowings

2,590

6,843

Current portion of long-term borrowings

5,101

8,393

Income taxes payable

3,356

42388

287

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

Reserve
Other

5,580

7,241

Total current liabilities

37,711

34,98829,861

31,034

Noncurrent liabilities
Long-term borrowings
Reserve2626

Liabilities related to retirement benefits

220231Other933

956

31,041

32,24968,752

67,238

Total noncurrent liabilities
Total liabilities-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

(Millions of yen)
As of March 31, 2014

As of June 30, 2014

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,818

Retained earnings

21,623

20,913

Treasury stock(4,179)(4,189)Total shareholders’ equity

27,08026,36343

Total accumulated other comprehensive income

43

Subscription rights to shares

5387

27,13826,453

95,891

93,691

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities

Total net assets
Total liabilities and net assets-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months EndedJune 30, 2013

Three Months EndedJune 30, 2014

Net sales

14,062

5,165

Cost of sales

10,6493,845

Gross profit

3,413

1,319

Selling, general and administrative expenses

2,019

1,788

Operating income (loss)

1,393(468)Interest income

11

Dividend income

22

Commissions received

20

6

Income from equity method investment

2‐

Miscellaneous income

29

Total Non-Operating income

28

19Interest expense

196

190

Losses from equity method investment‐

35

Non-Operating income:Non-Operating expenses:

Miscellaneous losses

32

14

Total Non-Operating expenses

229

240

1,192(689)

Gain on negative goodwill‐82

Total extraordinary gains‐82

Loss on disposal of fixed assets

00

Total extraordinary losses

00

Net income (loss) before income taxes

1,192

(607)

Income taxes, inhabitant taxes and business taxes

333

36

Income tax adjustments

142

(241)

Total income and other taxes

475

(204)

Income (loss) before minority interests

716

(403)

Net income (loss)

716

(403)

Ordinary income (loss)
Extraordinary gains

Extraordinary losses-6-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2013
Income (loss) before minority interests

Three Months Ended
June 30, 2014
716

(403)

Net unrealized gains on available-for-sale securities

(9)

(0)

Total other comprehensive income

(9)

(0)

706

(403)

706

(403)

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2014

(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 first quarters of the consolidated fiscal year under review, the Company purchased shares of treasury
stock at ¥30 million, by resolution of the meeting of the Board of Directors held on May 12, 2014.
Additionally, with the disposal of treasury stock for ¥20 million due to the exercise of stock options, theCompany held treasury stock for ¥4,189 million as of June 30, 2014.

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