Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2017 (Japan GAAP)
October 23, 2017

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, CEO
Masashi Yamamoto, Director,Executive officer and General Planning Division
Tel: +81-3-6551-2130

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:

November 10, 2017
December 5, 2017
Yes
Yes

1. Consolidated Operating Results for the Six Months Ended September 30, 2017
(April 1-September 30, 2017)(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

Millions of yen%

Millions of yen%

Millions of yen

Six months ended September 30, 201732,225(13.2)

2,855

(4.7)

Six months ended September 30, 201637,120

39.9

2,994

65.2

Net Income%Millions of yen%

2,523

2.7

1,624

4.9

2,457

68.1

1,549

77.0

(Note) Comprehensive income: Six months ended September 30, 2017: ¥1,630million (3.3%) / Six months ended September 30, 2016:¥1,577million (78.7%)

Net Income per Share

Diluted Net Incomeper ShareYenYenSix months ended September 30, 2017

15.03

14.96

Six months ended September 30, 2016

14.18

14.10

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2017

155,791

37,45323.9

As of March 31, 2017

139,874

36,792

26.2<Reference> Shareholders’ equity at end of period: September 30, 2017: ¥37,268 million / March 31, 2017: ¥36,635 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2017

-

5.00

Year Ending March 31, 2018

-

5.00

Year-End
Yen

Year Ending March 31, 2018(Forecast)

Total

Yen

Yen

-

10.00

15.00

-

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, 2018
(April 1, 2017-March 31, 2018)(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

110,000

6.2

10,550

1.9

9,500

0.0

6,300

3.1

58.35

(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.

Six months ended September 30, 2017:

124,000,000 shares

As of March 31, 2017:

124,000,000 sharesb.

Six months ended September 30, 2017:15,803,707 shares

As of March 31, 2017:16,022,507 sharesc.

Six months ended September 30, 2017:

108,090,273 shares

Six months ended September 30, 2016:

109,276,844 shares(Note) This quarterly earnings report is exempt from the quarterly review 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 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.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

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. Quarterly Consolidated Financial Statements .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of ComprehensiveIncome ................................................................................................................................................................ 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) ................................................................................. 9-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

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 real estate rental business, sales totaled ¥11,714 million, down 47.5% on a year-on-year basis. This
reflected sales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 45,784 units (1,128 units increased
from the end of the previous fiscal year.) of residential condominiums were ¥2,001 million, up 10.3% on ayear-on-year basis.
In the electric power generation business, sales totaled ¥14,557 million, up 58.3% on a year-on-year basis,
mainly due to revenues from the sale of seven facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥1,238 million, down 7.9% on a year-on-year basis, mainly
attributable to revenues from orders for large-scale repair work and revenue from selling electric power in themega-solar business.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥32,225 million, down 13.2% on a year-on-year basis; Operating income amounted to ¥2,855million, down 4.7% on a year-on-year basis; Ordinary income amounted to ¥2,523 million, up 2.7% on ayear-on-year basis; and Net income amounted to ¥1,624 million, up 4.9% on a year-on-year basis.
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 1,064 units, compared with a full-year target of 1,600 units scheduled fordelivery. The contract ratio was at 66.5%, showing a steady growth in the business. Progress rate is lower thanthe previous year due to the sales start of some properties started August and September has become slower thanthe usual year. However, it is contract progress as planned for the full fiscal year.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled Number of contracts
Contracted
signed from April 1for delivery
signedratio (%)
September 30, 2017
(units)(units)(units)Six months ended
September 30, 2016

1,600

1,269

79.3

670

Six months ended
September 30, 2017

1,600

1,064

66.5

625

(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 ¥155,791 million, an increase of ¥15,917 million comparedwith the 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 ¥5,411 million compared with the end of the previous consolidated fiscal year to-2-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

¥91,997 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets increased ¥10,512 million compared with the end of the previous consolidated fiscal year to¥63,749 million, mainly reflected the purchase business assets.
(Current Liabilities)
Current liabilities increased ¥8,483 million compared with the end of the previous consolidated fiscal year to¥58,966 million, mainly due to increase in short-term borrowings and the reclassification from long-termborrowings to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥6,773 million compared with the end of the previous consolidated fiscal year, to¥59,372 million, mainly due to the increase borrowings with new purchase.
(Net Assets)
Total net assets increased ¥660 million compared with the end of the previous consolidated fiscal year, to¥37,453 million, chiefly because the recorded amount of profit attributable to owners of parent exceeded theamounts of dividend of surplus.

(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 15, 2017.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2017

As of September 30, 2017

ASSETS
Current assets:
Cash and deposits

29,78023,833

Notes and accounts receivable, trade

1,331

1,174

Real estate held for sale

9,658

6,989

Power generation facilities for sale

7,885

1,596

Real estate held for sale in progress

32,39052.357

Costs incurred on uncompleted contracts

15285

Other

5,648

5,886

Allowance for doubtful accounts

(124)

(128)

Total current assets

86,58591,997

Buildings and structures (net)14,235

16,586

Land

23,821

29,815

Other (net)

9,089

10,043

Total tangible fixed assets

47,14656,445

1,391

1,883

4,708

5,430

(9)

(9)

Fixed assets:
Tangible fixed assets

Intangible fixed assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets

4,699

5,420

53,237

63,74951

44

139,874

155,791

Notes and accounts payable, trade12,173

4,467

Short-term borrowings

16,49022,682

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds

6060

Current portion of long-term borrowings

13,09822,982

Income taxes payable

2,976

1,179

729

711

Reserve
Other

4,954

6,881

Total current liabilities

50,48258,966Long-term borrowings

48,43954,328

Bonds payableNoncurrent liabilities
1,640

1,610

Reserve

56

56

Liabilities related to retirement benefits

331

369

2,131

3,007

Other

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

As of March 31, 2017
Total noncurrent liabilities
Total liabilities-5-

As of September 30, 2017

52,59959,372103,081

118,338

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

(Millions of yen)
As of March 31, 2017

As of September 30, 2017

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

32,97033,514

Treasury stock(5,976)(5,894)

Total shareholders’ equity

36,63037,257410

4

10Accumulated other comprehensive income
Net unrealized losses on available-for-saleSecurities
Total accumulated other comprehensive income
Subscription rights to sharesTotal net assets
Total liabilities and net assets-6-157

185

36,79237,453

139,874

155,791

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2016

Six Months Ended
September 30, 2017

Net sales

37,12032,225

Cost of sales

28,431

23,652Gross profit

8,689

8,573

Selling, general and administrative expenses

5,694

5,717

Operating income

2,994

2,855

Interest income

11

Dividend income

329

Commissions received

34

15

Profit from equity method investment―

94

Miscellaneous income

1878

Total Non-Operating income

58

218

Interest expense

512

527

Losses from equity method investment

62―

Miscellaneous losses

20

23

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

595

550

2,457

2,523

Loss on disposal of fixed assets―

11Office transfer expenses―

93

Total extraordinary losses―

104

Net income before income taxes

2,457

2,418

Income taxes, inhabitant taxes and business taxes

1,966

1,167

Income tax adjustments(1,058)

(372)

908

794

Net income

1,549

1,624

Profit attributable to owners of parent

1,549

1,624

Ordinary income
Extraordinary losses

Total income and other taxes-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2016
Net income

Six Months Ended
September 30, 2017

1,549

1,624

Net unrealized gains on available-for-sale securities

28

5Total other comprehensive income

28

51,577

1,630

1,577

1,630

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2017(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.

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