Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
May 12, 2014
Company name: Takara Leben CO., LTD.
Stock listed on: Tokyo Stock Exchange, First Section
Securities code: 8897 (URL http://www.leben.co.jp)
Representative: Kazuichi Shimada, President, Representative Director
Contact: Toshiya Kitagawa, Director, Executive Officer and Chief of Business Planning OfficeTel. +81-3-5324-8720
Scheduled date of annual general meeting of shareholders: June 23, 2014
Scheduled date for commencement of dividend payment: June 24, 2014
Scheduled date for release of annual securities report: June 23, 2014
Supplementary materials on financial results: Yes
Briefing for financial results: Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million)

1. Consolidated Financial Results for the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent year-on-year change)(1) Consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2014

71,963

10.9

9,798

54.0

9,181

58.5

5,869

44.1

Year ended March 31, 2013

64,907

17.6

6,361

7.3

5,792

14.2

4,074

10.7

(Note) Comprehensive income: Fiscal year ended March 31, 2014: ¥5,869 million (43.7%)
Fiscal year ended March 31, 2013: ¥4,084 million (10.6%)

Ratio ofRatio of operating
Diluted earnings Ratio of earnings toordinary income income to net
per shareshareholders’ equity
to total assets
sales

Earnings
per share
Year ended March 31, 2014

Yen

Yen

%

%

%

50.64

50.53

22.9

10.7

13.6

8.0

9.8

18.0
Year ended March 31, 2013
33.61
33.58
(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2014: ¥139 million

Fiscal year ended March 31, 2013: ¥57 million(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Earnings per share” and “Diluted earnings per share”
are calculated, assuming that the stock split had taken place at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2014

95,891

27,13828.2

237.53

March 31, 2013

75,01324,14732.2

201.90(Reference) Shareholders’ equity: March 31, 2014: ¥27,084 million
March 31, 2013: ¥24,131 million(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Net asset per share” is calculated, assuming that thestock split had taken place at the beginning of the previous consolidated fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalent at end ofyear

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended March 31, 2014

22,996(4,568)(366)

35,954

Year ended March 31, 2013

875

(1,590)1,229

17,893

2. Dividends
Annual dividends per share(Record date)

Q1
Yen

Q2
Yen

Q3
Yen

Year-end
Yen

Total

Total
dividends(annual)Yen Millions of yen

Dividends
payout ratio(consolidate)

Ratio ofdividends to
net assets(consolidated)%%Year ended March 31, 2013

—

5.00

—

10.00

15.00

450

11.2

2.0

Year ended March 31, 2014

—

1.50

—

3.50

5.00

572

9.9

2.3

Year ending March 31, 2015
(forecast)

—

2.00

—

4.00

6.00

11.6

(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Annual dividends per share for the year ended March 31,
2014 and the year ending March 31, 2015 (forecast) reflect the impact of the stock split.

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent year-on-year change)

Net sales
Full year

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

Net income%

Yen

77,050

7.1

10,300

5.1

9,500

3.5

5,900

0.5

51.74

Net income per share*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
New: None
Excluded: None (Name) (2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: Yes(ii) Changes in accounting policies other than (i): None(iii) Changes in accounting estimates: None(iv) Restatements: None
(3) Number of shares issued and outstanding (common stock)(i) Number of shares issued and outstanding at end of year (including treasury stock)(a) As of December 31, 2014:
130,000,000 shares(b) As of December 31, 2013:
133,544,280 shares(ii) Number of treasury stock at end of year(a) As of December 31, 2014
15,974,807 shares(b) As of December 31, 201314,021,084 shares(iii) Average number of shares during the year(a) As of December 31, 2014:
115,903,076 shares(b) As of December 31, 2013:
121,209,416 shares
On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. The number of shares is calculated, assuming that thestock split had taken place at the beginning of the previous consolidated fiscal year.

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(Percentage figures represent year-on-year change)(1) Non-consolidated operating results
Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%

Year ended March 31, 2014

67,158

11.0

9,378

58.0

8,672

61.8

5,516

48.0

Year ended March 31, 2013

60,502

17.5

5,936

8.4

5,360

14.4

3,726

4.9

Earnings per share

Diluted earnings
per share

yen

yen

Year ended March 31, 2014

47.60

47.49

Year ended March 31, 2013

30.75

30.72

(Note) On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. “Earnings per share” and “Diluted earnings per share”
are calculated, assuming that the stock split had taken place at the beginning of the previous fiscal year.

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2014

92,56524,92026.9

218.08March 31, 2013

72,02522,28330.9

186.29(Reference) Shareholders’ equity: March 31, 2014: ¥24,867 million
March 31, 2013: ¥22,266 million

2. Forecast of Non-Consolidated Financial Results for the Year ending March 31, 2015 (From April 1, 2014 to March 31, 2015)(Percentage figures represent year-on-year change)

Net sales
Full year

Operating income

Ordinary income

Net income

Net income per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

72,500

8.0

9,850

5.0

9,050

4.4

5,550

0.6

48.67

* Status of Audit ProceduresThis summary of consolidated financial results for the year ended March 31, 2014 is not subject to audit procedures under the
Financial Instruments and Exchange Act, and the audit procedures for the consolidated financial statements are not complete at
the time of the disclosure.

* Explanation about the proper use of the financial results forecasts, and other matters
The forward-looking statements presented above are based on the information available at the time of the release of this reportand are not intended to guarantee that the Company would achieve such figures. Actual results may differ from these forecasts
due to various factors in the future.

○Contents of Attachment
1. Analysis of Operating Results and Financial Position………………………………………………………………………
(1) Analysis of Operating Results……………………………………………………………………………………………

22(2) Analysis of Financial Position……………………………………………………………………………………………
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Year……………………………………

4
6(4) Business Risks……………………………………………………………………………………………………………
2. The Takara Leben Group……………………………………………………………………………………………………

6
9

3. Management Policy…………………………………………………………………………………………………………
(1) Basic Management Policy ………………………………………………………………………………………………

1111(2) Medium and Long-Term Business Strategies……………………………………………………………………………
(3) Issues to be Addressed ……………………………………………………………………………………………………

11
13

4. Consolidated Financial Statements……………………………………………………………………………………………
(1) Consolidated Balance Sheet………………………………………………………………………………………………

1414(2) Consolidated Statements of Income and Comprehensive Income………………………………………………………
Consolidated Statement of Income…………………………………………………………………………………

16
16

Consolidated Statement of Comprehensive Income…………………………………………………………………
(3) Consolidated Statement of Changes in Shareholders’ Equity……………………………………………………………

1718(4) Consolidated Statement of Cash Flows …………………………………………………………………………………
(5) Notes to the Consolidated Financial Statements…………………………………………………………………………

20
22(Note Regarding the Going Concern Assumption) …………………………………………………………………
(Significant Basis for Preparation of the Consolidated Financial Statements…………………………………………

22
22(Change of Accounting Policy)…………………………….……………………………………………………………
(Consolidated Balance Sheet)…………………………….……………………………………………………………

24
24(Consolidated Statement of Income)……………………………………………………………………………………
(Consolidated Statement of Comprehensive Income)…………………………………………………………………

25
27(Consolidated Statement of Changes in Shareholders’ Equity) …………………………………………………………
(Consolidated Statement of Cash Flows) ………………………………………………………………………………

27
29(Rental Properties, etc.)………………….………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………

30
31(Per Share Information)…………………………………………………………………………………………………
(Significant Subsequent Events)…………………………………………………………………………………………

33
34

5. Non-consolidated Financial Statements………………………………………………………………………………………
(1) Balance Sheet ……………………………………………………………………………………………………………

35
35(2) Statement of Income..……………………………………………………………………………………………………
(3) Statement of Changes in Shareholders’ Equity…………………………………………………………………………

3840(4) Notes to the Non-Consolidated Financial Statements ……………………………………………………………………
(Note Regarding the Going Concern Assumption) …………………………………………………………………

43
43(Significant Accounting Policies)………………………………………………………………………………………
(Balance Sheet) ……………………..…………………………………………………………………………………

43
44(Statement of Income) .…………………………………………………………………………………………………
(Statement of Changes in Shareholders’ Equity) ………………………………………………………………………

45
47(Per Share Information) …………………………………………………………………………………………………
(Significant Subsequent Events)…………………………………………………………………………………………

49
50

6. Other …………………………………………………………………………………………………………………………
(1) Changes of Officers………………………………………………………………………………………………………

51
51(2) Production, Orders Received and Sales….………………………………………………………………………………

51

1

1．Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Overview
During the consolidated fiscal year ended March 31, 2014, the Japanese economy showed a positive sign of moderate
recovery as depreciation of yen coupled with rising stock prices followed by the BOJ’s easy monetary policy resulted in
improvement of corporate earnings, an increase in income and improvement of employment situations.
Amid this environment, as Tokyo was elected to host the 2020 Tokyo Olympics and Paralympics, the new built-for-salecondominium business industry began to see an increasing demand at the prospect of future inflation. In addition, properties
utilizing natural energy continue to attract attentions and properties in suburban areas giving priority to living environment
are also attracting attentions due to improved accessibility to downtown area.
Under such circumstances, the Company actively plans and develops properties utilizing natural energy in the suburbs of
the Tokyo Metropolitan area as well as work on supplying more condominiums in downtown areas in local cities to meet anincreasing demand for replacement or additional purchase by an active senior generation.
With its ‘Leben Heim’ series of in-house planned new condominiums as its main brand, the Company will remaincommitted to its basic concept of ‘ideal, affordable housing that anyone can buy with confidence’ as well as its corporate
vision of ‘thinking of happiness; making happiness’ and its corporate mission of ‘creating together with eager minds, sincere
efforts and ample talent,’ and continue to work on product plans capturing the needs of the time and promote businessactivities focusing on its customers as its ultimate supporters.
(i) Operating Results for the Year Ended March 31, 2014a) Performance review
At the parent level, Takara Leben Co., Ltd., the built-for-sale condominium business delivered 1,719 units including“Leben Higashi Saginomiya Terrace”, the Company’s largest “solar-powered condominium”. Also, the Company ranked
first in the ranking of the number of ‘solar-powered condominiums (available in each individual home unit)’ units suppliedin Japan in 2013 for the third consecutive year.
The detached housing business delivered 109 units, and the Company will continue to increase the number of units to bedelivered aiming to achieve the medium-term business plan.
The renovation business delivered 30 units as initially planned.
Sales in the real estate rental business exceeded the initial plan as we purchased three units during the current fiscal year.
As a result, the Company recorded net sales of ¥67,158 million (up 11.0% year-on-year), operating income of ¥9,378
million (up 58.0% year-on-year), ordinary income of ¥8,672 million (up 61.8% year-on-year), and net income of ¥5,516
million (up 48.0% year-on-year).
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 35,860 units.
Especially, units entrusted from other companies accounted for approximately 40% of the increase during the fiscal year asa result of the efforts to secure other companies’ properties.
sales, and repair work, also showed a steady growth.

Peripheral operations, including renovation, merchandise

Takara Property Co., Ltd., engaging in rental management business, recorded sales essentially in line with the plan.
Takara Asset Management Co., Ltd., established on October 28, 2013, is preparing for origination of a mega-solar fund.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
In As Partners Co., Ltd., ten existing nursing care facilities are operating and capacity utilization remained high at
approximately 93%.
In November 2013, the Company formed a business and capital alliance with Sunwood Corporation so as to promote an
approach for a joint business.
As a result of the above, the Group recorded net sales of ¥71,963 million (up 10.9% year-on-year), operating income of¥9,798 million (up 54.0% year-on-year), ordinary income of ¥9,181 million (up 58.5% year-on-year), and a record-highnet income of ¥5,869 million (up 44.1% year-on-year).

b) Performance by Business Segment＜Real Estate Sales Business＞

2

Sales from the real estate sales business amounted to ¥65,757 million, up 10.9% from the previous fiscal year,
including sales of ¥58,597 million for 1,719 new build-for-sale condominium units and sales of ¥7,160 million fromsales of detached houses and renovation and resale business.
＜Real Estate Rental Business＞
Revenues from the real estate rental business amounted to ¥1,696 million, up 14.2% from the previous fiscal year,
including rent revenues from the rental of apartments, condominium units, and offices.
＜Real Estate Management Business＞
Revenues from real estate management business representing management fees from 35,860 units under management
amounted to ¥2,739 million, up 6.1% from the previous fiscal year.
＜Other Business＞
Revenues from other businesses amounted to ¥1,768 million, up 15.7% from the previous fiscal year, including
revenues from large-scale repair work and revenues from electric power selling in mega-solar business.
c) Performance Review by Item
＜Net Sales＞
Net sales of the real estate sales business amounted to ¥65,757 million, including sales of 1,719 new built-for-salecondominium units and sales from new detached housing and renovation and resale business.
Revenues from the real estate rental business amounted to ¥1,696 million, including rent revenues from the rental ofapartments, condominium units, and offices.
Revenues from the real estate management business representing management fees from 35,860 units undermanagement amounted to ¥2,739 million.
Revenues from other businesses include revenues from large-scale repair work and revenues from electric power
selling in mega-solar business and amounted to ¥1,768 million.
As a result, net sales for the consolidated fiscal year ended March 31, 2014 amounted to ¥71,963 million, up 10.9%
from the previous fiscal year.
＜Cost of Sales＞
Cost of sales increased by 6.4% to ¥53,763 million as the number of units delivered in the real estate sales businessincreased by 33 units from the previous fiscal year to 1,719 units.
＜Selling, General and Administrative Expenses＞
Despite the continued cost-cutting efforts, selling, general and administrative expenses increased from the previous
fiscal year by 4.8% to ¥8,400 million due to an increase in selling expenses resulting from increased contracted ratio
and number of units delivered.
＜Non-Operating Income and Expenses＞
Non-operating income increased by 42.6% from the previous fiscal year to ¥302 million due to commission income
and distribution of profits from an affiliate accounted for by using the equity method.
Non-operating expenses increased by 17.8% from the previous fiscal year to ¥920 million due to an increase ininterest expense as a result of new borrowings for projects.
＜Extraordinary Gains and Losses＞
Extraordinary gains increased by 174.5% from the previous fiscal year to ¥330 million due to legal settlement
received.
Extraordinary losses increased by 54.5% from the previous fiscal year to ¥66 million due to loss on sale of fixed
assets.

3

As a result, net sales for the consolidated fiscal year ended March 31, 2014 amounted to ¥71,963 million, up 10.9%
year-on-year; operating income amounted to ¥9,798 million, up 54.0% year-on-year; Ordinary income amounted to¥9,181 million, up 58.5% year-on-year; and net income amounted to ¥5,869 million, up 44.1% year-on-year.
(ii) Outlook for the Year Ending March 31, 2015
Based on the new medium-term business plan announced in September 2012, the business plan for the fiscal year
ending March 31, 2015 was drafted as follows.
In the real estate sales business, the new built-for-sale condominium operation will aggressively promote the supply
of condominiums in downtown areas in local cities and expect to deliver 1,702 units.
The detached housing business will supply through combined projects with condominiums and expects to deliver 262
houses.
The renovation business will continue to promote purchases at appropriate prices, based on the proper judgment of
the market trend, in order to supplement its new built-for-sale condominium operations.
The real estate rental business intends to improve its stable stock business through well-selected purchases.
The real estate management business has set a target for management contract to be 38,100 units and aims at further
expansion of peripheral operations such as large-scale repair work.
Based on the above, the Company’s performance projections for the year ending March 31, 2015 are as follows:
Net sales:¥77,050 million (up 7.1% on a year-on-year basis)

Operating income: ¥10,300 million (up 5.1% on a year-on-year basis)
Ordinary income:¥9,500 million (up 3.5% on a year-on-year basis)

Net income:¥5,900 million (up 0.5% on a year-on-year basis)(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery in the fiscal year
ending March 31, 2015)
Scheduled for delivery

Of which, number of(units)contracts signed (units)

As of March 31, 2014

1,702

856

Contracted ratio (%)50.3(iii) Progress of the Mid-Term Management Plan, etc.
The Company developed the new mid-term management plan “Takara Leben Next Stage 2016” in September 2012 and set
five main measures: “Steady increase in number of units sold,” “Promote solar-powered condominiums,” “Entry to mega-solar
business,” “Stable supply of condominiums in central area in local cities,” and “Restructure the detached house business.”
In the fiscal year ending March 31, 2015, the ratio of solar-powered condominium is expected to reach approximately 68%(in number of building).
In the mega-solar business, five facilities started operation by the end of the current fiscal year. In addition, Takara AssetManagement Co., Ltd., a subsidiary, is preparing for origination of a mega-solar fund.
With regard to the supply of condominiums in central areas in local cities, the Company plans to open two new sales offices
in Hokuriku and Tohoku area to enhance information-gathering capacity about land in each area and actively purchase it.
(iv) Achievement of Targeted Operating Index
The Company manages business with a focus on equity and cash and deposit balance. The new mid-term management planannounced in September 2012 sets goals for the final year of the plan ending March 31, 2016 to be ¥33 billion for both cash
and deposit and equity. At March 31, 2014, the Group achieved the goal of cash and deposit two years ahead of schedule with
¥35,964 million. Equity is also showing a steady growth and increased by ¥2,953 million from March 31, 2013 despite theacquisition of treasury stock of ¥2,496 million.
(2) Analysis of Financial Position

4

With regard to assets, liabilities, and net assets of the Group as of March 31, 2014, total assets amounted to ¥95,891
million, an increase of ¥20,877 million from March 31, 2013, mainly due to an increase in cash and deposits andpurchase of business assets.
(i) Analysis of Assets, Liabilities and Net Assetsa) Current assets
Current assets increased by ¥16,592 million from March 31, 2013 to ¥72,524 million mainly due to an increase in
cash and deposits as a result of delivery of new built-for-sale condominium units.
b) Non-current assets
Non-current assets increased by ¥4,284 million from March 31, 2013 to ¥23,366 million mainly due to purchase ofbusiness assets.
c) Current liabilities
Current liabilities increased by ¥8,686 million from March 31, 2013 to ¥37,711 million mainly due to an increase innotes payable as a result of payment of construction fees to general contractors.
d) Non-current liabilities
Non-current liabilities increased by ¥9,200 million from March 31, 2013 to ¥31,041 million mainly due to anincrease of borrowings associated with new purchases.
e) Net assets
Net assets increased by ¥2,990 million from March 31, 2013 to ¥27,138 million as net income for the year exceeded
distribution of surplus and acquisition of treasury stock.
(ii) Analysis of Cash Flows
Cash and cash equivalents (“funds”) as of March 31, 2014 amounted to ¥35,954 million, an increase of ¥18,061 million
from March 31, 2013.
a) Cash flows from operating activities
Net cash provided by operating activities was ¥22,996 million (Year ended March 31, 2013: ¥875 million), mainly
attributable to an increase in accounts payable, trade.
b) Cash flows from investing activities
Net cash used in investing activities was ¥4,568 million (Year ended March 31, 2013: ¥(1,590) million), mainly
attributable to purchase of fixed assets.
c) Cash flows from financing activities
Net cash used in financing activities was ¥366 million (Year ended March 31, 2013: ¥1,229 million), mainly
attributable to acquisition of treasury stock.

(iii) Cash Flow Indicators③Changes in indicators related to cash flows
FY2012/3

FY2013/3

FY2014/3

Equity ratio (%)

30.1

32.2

28.2

Equity ratio at market value (%)

34.3

58.3

37.9

Debt repayment period (years)

2.8

39.8

1.6

5

11.8

Interest coverage ratio (times)

1.1

28.0

Equity ratio: Shareholders’ equity / Total assets
Equity ratio at market value: Equity market capitalization / Total assets
Debt repayment period: Interest-bearing debt/Operating cash flows
Interest coverage ratio: Operating cash flows / Interest expense* These indicators are all calculated using consolidated financial data.
* Interest-bearing debt includes all debt recorded on the Consolidated balance sheet on which interest is paid.

(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to the shareholder is one of the most important tasks for the Company.

And the Company has thefundamental policy of striving to sustain stable levels of dividends at levels deemed appropriate based on due considerationof corporate performance trends and of the amount of internally retained funds required to expand and strengthen business
operations.

The new mid-term management plan sets a policy to allocate over 30% of the bottom line to dividends andtreasury stock acquisition.
Specifically, the plans for dividends are set as follows:Year ended March 31,
2014 (forecast)

1st half dividend

Year-end dividend

Total

¥1.5

¥3.5

¥5.0

1st half dividend

Year-end dividend

Total

¥2.0

¥4.0

¥6.0

Ordinary
dividends

Year ending March 31,

Ordinary2015 (forecast)dividends

The Company does not decide dividends based solely on specific benchmarks but on a comprehensive assessment, withan aim to make the Company attractive for long-term investment by numerous shareholders.
(4) Business Risks
The following items present potential risk for the operating results, share price, financial position, etc. of the Group.
Forward-looking statements hereby are based on the assessment by the Group as of the end of the current consolidated
fiscal year.
a) Earthquakes and other natural disasters
Earthquakes and other natural disasters may directly damage the Company or the construction companies used forexecution, or may make it difficult for these construction companies to procure building materials. Any of these events
may delay construction work, as well as hamper sales and collection activity of the Company, and thus impact theperformance and financial position of the Group.
b) Legal regulations
The business of the Group is subject to the National Land Use Planning Act, Building Lots and Buildings Transaction
Business Act, Building Standards Act, City Planning Act, Money Lending Control Act, Act on Advancement of Proper
Condominium Management, Long-Term Care Insurance Act and other applicable national laws as well as applicableordinances, etc., of the various local governments.

Should these laws, ordinances, etc., be revised or new ones created,

this may create new burdens for the Group and potentially impact its performance and business development.

6c) Degree of dependency on borrowing
Purchase of land is funded primarily by loans from financial institutions, and the ratio of interest-bearing debt to total
assets is 39.3% at the end of the current consolidated fiscal year.

Thus, in case the funding is restricted or interest rates

increase rapidly due to worsened financial conditions, the performance and financial position of the Group may be affected.
d) Home buyer sentiment
The Company’s core business, new built-for-sale condominiums, tends to be swayed by changes in home buyer
sentiment.

Home buyer sentiment is affected by factors such as the overall economy, residential tax regulations,consumption taxes, land prices, and interest rates.

A pronounced deterioration in home buyer sentiment may impact theperformance and financial position of the Group.
e) Impact of home loans
The Group makes use of home loans from home financing support organizations and financial institutions for the sale ofcondominiums, etc.; therefore, credit crunch caused by unfavorable changes in financial conditions may potentially impact
the performance and financial situation of the Group.
f) Impact of supply trends
Sales of new build-for-sale condominiums, a core business of the Group, are greatly affected by supply trends, such as
land procurement cost and subcontracting cost fluctuations and interest rate changes.

For these reasons, conditions which

impact supply trends may potentially impact the performance and financial position of the Group.
g) Impact of competition
The Group sells real estate in and around the Tokyo Metropolitan Area, and an excessive price competition in this area
may prolong marketing activities or cause difficulties to sales at the price anticipated by the Company.

Such situations

may potentially impact the performance and financial situation of the Group.
h) Subcontractors
The Group entrusts the construction of its condominiums to building contractors. However, increases in building
material costs and labor costs may raise building contract costs, thus depressing profitability.

Also, construction

companies entrusted with the construction work may become insolvent, which may delay construction work or force theconstruction company to default on its contract.

Any of these events, as well as failure by the construction company toprovide the due compensation in the future, may impact the performance and financial position of the Group.
i) Opposition to condominium construction from surrounding residents
When constructing condominiums, the Group carefully considers the environment surrounding the construction location;
reviews relevant national laws and local ordinances when creating a development plan; and holds information sessions for
local residents prior to the start of construction in order to facilitate understanding.

However, issues such as construction

noise, sunlight block or environmental disruption may sometimes lead to an opposition campaign against the construction
by surrounding residents and cause the change of plans, construction delays, and additional costs, etc., which may
potentially impact the performance and financial situation of the Group.
j) Possibility of lawsuits
When constructing condominiums, the Group takes careful considerations from a variety of perspectives; however,lawsuits may be brought against the Group as a result of building defects, soil contamination, etc., and as a result, thebuilding plans may have to be changed. Such cases may potentially impact the performance and financial position of theGroup.

7k) Personal information
The Group handles a large amount of personal information in the course of selling and managing condominiums, etc.
Extreme care is taken in handling and administering such information through measures such as implementation ofsoftware designed to prevent personal information leak, creation and maintenance of relevant rules, creation of employees
manuals, and provision of employee training seminars; however, if a leak of personal information occurs, it may potentially
impact the performance and financial position of the Group.

82. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, six consolidated subsidiaries and two affiliates, operates real estatebusiness primarily in the Tokyo metropolitan area, including Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in planning, development, and marketing of ‘Leben-series’ new built-for-sale condominiums.
Leben Community Co., Ltd., a consolidated subsidiary, primarily engages in comprehensive management services forcondominium buildings.
Takara Property Co., Ltd., a consolidated subsidiary, primarily engages in rental management business.
Takara Asset Management Co., Ltd., a consolidated subsidiary, will primarily engage in investment management business andType II financial instruments business.
Takara Investments Co., Ltd., a consolidated subsidiary, will primarily engage in real estate asset management business.
TAFUKO Co., Ltd., a consolidated subsidiary, primarily engages in loan collection agency business and othercommission-based businesses.
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, primarily engages in claims servicing business pursuant to the Act on
Special Measures concerning the Claims Servicing Business.
As Partners Co., Ltd., an affiliate accounted for by using the equity method, primarily operates residential facilities with nursing
capabilities for elderly people.
Sunwood Corporation, an affiliate accounted for by using the equity method, primarily engages in planning, development, andmarketing of new built-for-sale condominiums, etc. mainly in the Tokyo Metropolitan area.
(1) Real estate sales business
The Company primarily engages in planning, development and marketing of ‘Leben-series’ new built-for-sale condominiums
in the suburbs of the Tokyo metropolitan area. Also, Sunwood Corporation, an affiliate accounted for by using the equity
method, primarily engages in planning, development, and marketing of new built-for-sale condominiums, etc. mainly in theTokyo Metropolitan area.
(2) Real estate rental business
The Company engages in rental business for apartments, condominiums, and offices in the Tokyo metropolitan area. Also
Takara Property Co., Ltd., a consolidated subsidiary, engages in rental management business.
(3) Real estate management business
Leben Community Co., Ltd., a consolidated subsidiary, provides comprehensive management service for built-for-salecondominiums.
(4) Other businesses
・Loan collection agency businessTAFUKO Co., Ltd., a consolidated subsidiary, provides loan collection service.
・Claims servicing business
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, engages in claims servicing business pursuant to the Act on Special
Measures concerning the Claims Servicing Business.
・Nursing care business
As Partners Co., Ltd., an affiliate accounted for by using the equity method, operates residential facilities with nursing
capabilities for elderly people. Also, Leben Community Co., Ltd., a consolidated subsidiary, provides rehabilitation-focused
day-care nursing service.
・Other businesses
The Group also engages in other businesses such as commissioned real estate marketing agency business. In the future, theGroup plans to engage in investment management and real estate asset management businesses.

9The Group’s businesses are organized as follows.

103. Management Policy(1) Basic Management Policy
The followings are the Company’s corporate vision and corporate mission.

Takara Leben’s Corporate Vision: The Way We Should Be

Thinking of Happiness. Making HappinessAs a builder, we take your happiness more seriously than anyone else; when
we build for you, we build to make your living dreams come true.
When we develop, we consider the well-being of the community more deeply
than anyone else; the world gets new towns where all people live in comfort.
To build a happy future, we plan and work more fruitfully than anyone else;
we propose earth-friendly, sustainable development for the environment.
Thinking of Happiness. Making Happiness.
That’s Takara Leben’s corporate vision.

Takara Leben’s Corporate Mission: The Beliefs We Value

Creating Together
with Eager Minds
Putting our heads together with customers, eagerly,
to think up and create new market values

with Sincere Efforts
Prizing the sincere efforts of our partners,
for the comfort and security of living together

with Ample TalentPrizing the talents of every corporate member,
for the rich and seamless development of a shared tomorrow.

(2) Medium and Long-Term Business Strategy＜Overview of Strategies＞
The Company developed the new mid-term management plan “Takara Leben Next Stage 2016” in September 2012 for theperiod ending March 31, 2016, with a theme of ‘For Solid Steps towards Regrowth’ and five main measures listed below. It
also has a subtitle of ‘As a Pioneer of Solar-Powered Condominium.’・Steady increase in number of units sold・Promote solar-powered condominiums
・Entry to mega-solar business・Stable supply of condominiums in central area in local cities
・Restructure the detached house business＜Specific Strategies＞
A. Basic Policy
The Company aims to achieve its basic concept of ‘ideal, affordable housing that anyone can buy with confidence’ by
maintaining and improving basic strategies of the previous mid-term management plan: ‘procurement strategy,’‘merchandising strategy,’ ‘sales strategy,’ and ‘financing strategy.’11

B.

Individual Strategies(i) New built-for-sale condominium businessa) Promote solar-powered condominiums
Drawing on the achievement of the top supplier of ‘solar-powered condominiums (available in each individual
home unit)’ units for the third consecutive year, the Company will continue to promote planning and developmentof solar-powered condominiums. The goal for the final year of the new mid-term management plan ending
March 31, 2016 is to increase the ratio of solar-powered condominiums in new properties to over 50% (in numberof buildings).
b) Development in downtown areas in local cities
The Company will continue to work on revitalization of downtown areas in local cities including Toyama andNagano where we have already been delivering results. As supply and demand trends are quite important in local
cities, we will purchase lands based on careful monitoring of the trends and aim at stable annual supply of over
500 units.
c) Reinforce Yokohama area
With our new Yokohama branch established in October 2012, we will reinforce Yokohama area to make it our
second core area while continuing to focus on our primary core area of Saitama and Tokyo.
d) Obtain lands for medium- to long-term projects
We will secure lands for medium- to long-term project with terms of over three years in order to mitigate futurerisk and aim at long-term stability.
(ii) Detached housing businessa) Own construction detached house
We created a team specializing in land purchase to enhance land purchase system for detached house.

Also,

instead of engaging in small-sized land development which is highly competitive, we purchase land for mediumto large-sized projects and promote product planning which is different from competitors such as combined plan of
condominiums and detached houses, in order to achieve the goal of annual delivery of 300 units.
b) Custom-built house
We will differentiate our products by offering unique products with condo-taste and functional themes of‘solar-power’ and ‘earthquake resistant.’(iii) Other businessesa) Mega-solar businessWith our goal to ease concerns over the electric power supply, we will develop mega-solar business as part ofsocial contribution. We will aim to achieve operation goals of over 50 megawatts in total based on theassessment of proper fixed buy-out price.
b) Real estate management businessWe will aim to secure 3,000 units annually as a pillar of stock business by enhancing entrustment from othercompanies.
c) Real estate rental business
The Company aims to further enhance stable stock business through well-selected purchases.
d) Renovation businessWe will purchase at appropriate price based on the proper judgment of market trends and consider further
development of the business.
C.

Group Strategies
In order to build a strong corporate group which will not be affected by external factors, the Company will improveinformation exchange within the Group and establish a corporate structure that can create synergy effects. Especially,
since the Company’s core business, the new built-for-sale condominium business, is a flow-type business, it is essential
for the Company to expand stock-type business such as rental, management service and nursing service business.

12(3) Issues to be Addressed
The Company overcame the rough times after the Lehman Shock and recovered enough to develop ‘Takara Leben Next
Stage 2016.’ Under such conditions, the Company considers its immediate priority to be cultivation of human resources.
Especially, in order to establish sustainable organization, it is absolutely imperative to cultivate middle-level personnel.
Through providing trainings according to employee level and reinforcing corporate culture, we aim to build stronger
organization while maintaining the speedy decision making.

13

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2013)(March 31, 2014)
AssetsCurrent assets
Cash and deposits

17,911

Notes and accounts receivable, trade
Real estate held for sale
Real estate held for sale in progress
Deferred tax assets

35,964323

405※2, ※3 2,067※3 1,156※2, ※3 33,308※2 32,288

250

408

Other
Allowance for doubtful accounts

2,102
(32)

2,345
(43)

Total current assets

55,932

72,524

7,726(2,714)

8,114(3,006)

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net※2, ※3

5,011

Machinery, equipment and vehicles
Accumulated depreciation

Tools, furniture and fixtures, net

1,135
(61)

-

※2 1,074

170
(142)

177
(148)

27

※2 28

※2

Land
Lease assets※2, ※3

5,108-

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation※2, ※3

12,471137※2, ※3

14,100135(31)

Accumulated depreciation(42)

Lease assets, net

95

104

Construction in progress-※2 816

Total tangible fixed assets

17,606

21,233

Intangible fixed assets
Lease assets
Other

※2

Total intangible fixed assets

129

92

421

※2 421

551

513

166
81

226
73

269
519

※1 1,384

Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Other

※1

44

Allowance for doubtful accounts

(112)

(109)

Total investments and other assets

924

1,619

Total fixed assets
Total assets

14

19,081

23,36675,013

95,891

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2013)(March 31, 2014)
Liabilities
Current liabilities
Notes and accounts payable, trade

7,920

20,692

2,629
11,375※2 2,590

Lease obligations
Income taxes payable

70
1,608

62
3,356

Advance received
Allowance for bonuses

3,955
207

4,043
229

Allowance for compensation for complete work
Other

70
1,188

158
1,475

Total current liabilities

29,02537,711

Short-term borrowings
Current portion of long-term borrowings※2※2

Noncurrent liabilities
Long-term borrowings※2 5,101

20,849※2 29,861

Lease obligations
Allowance for employees’ retirement benefits

171
178

149
-

Allowance for directors’ retirement benefits
Liabilities related to retirement benefits

24
-

26
220

Asset retirement obligations
Deferred tax liabilities

22
-

24
117

※2

594

642

21,84031,04150,86668,752

Capital stock
Capital surplus

4,819
4,947

4,819

Retained earnings
Treasury stock

16,991(2,630)(4,179)Total shareholders’ equity

24,12727,080

3

4

Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity

4,817
21,623

Accumulated other comprehensive income
Net unrealized gains on available-for-salesecurities
Total accumulated other comprehensive income
New share subscription rights
Total net assets
Total liabilities and net assets

15

3

4

16

53

24,147

27,13875,013

95,891

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2012
(From April 1, 2013
to March 31, 2013)
Net sales
Cost of sales※1

to March 31, 2014)

64,90750,52871,96353,763

14,37818,1998,017※2 8,400

6,361

9,798

4
4

4
4

Commissions received
Income from equity method investment

106
57

114
139

Miscellaneous income

40

40

Total non-operating income

212

302

766
15

832
87

Gross profit
Selling, general and administrative expenses※2

Operating income
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expense
Miscellaneous losses

781

920

5,792

9,181

53

－

Legal settlement received

66
－

－
330

Total extraordinary gains

120

330

－

※3 39

23
※5 18

※5 17

Total non-operating expense
Ordinary income
Extraordinary gains
Reversal of allowance for directors’ retirement
benefits
Gain on negative goodwill

Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of fixed assets
Impairment loss

※4

※4 0

※6 9

Loss from legal proceedings
Other

0

Total extraordinary losses

43

66

Income before income taxes and minority interests

5,869

9,444

Income taxes - current

1,865

-

(70)

3,390
185

Total income taxes

1,795

3,575

Income before minority interests

4,074

5,869

Net income

4,074

5,869

Income taxes – deferred

16

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)
Income before minority interests(From April 1, 2013
to March 31, 2014)
4,074

5,869

10

0

Other comprehensive income
Net unrealized gains on available-for-sale securities
Total other comprehensive income※1

Comprehensive income

10

※1

0

4,084

5,869

4,084

5,869

(Comprising)Comprehensive income attributable to parent

17

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2012 to March 31, 2013)(Millions of yen)
Shareholders’ equity

Balance at beginning of year

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total
shareholders’equity

4,819

4,949

13,266(1,890)21,145

Changes during the year
Dividends from surplus

(429)

(429)

Net income

4,074

4,074

79

79

Change in scope of
consolidation
Acquisition of treasury stock
Disposition of treasury stock

(792)

(792)

52

50

(1)

Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus
Net changes of items otherthan shareholders’ equity
Total changes during the year
Balance at end of year

－

(1)

3,724

(740)

2,981

4,819

4,947

16,991(2,630)24,127

Accumulated other comprehensive income

Balance at beginning of year

Unrealized gains(losses) on
available-for-salesecurities

Total accumulated
other comprehensive
incomeNew share subscription
rightsTotal net assets

(7)

(7)

－

21,138Changes during the year
Dividends from surplus(429)

Net income

4,074

Change in scope of
consolidation

79

Acquisition of treasury stock(792)

Disposition of treasury stock

50

Cancellation of treasury
stock

－

Transfer from retained
earnings to capital surplus－

Net changes of items otherthan shareholders’ equity

10

10

16

27

Total changes during the year

10

10

16

3,009

Balance at end of year

3

3

16

24,14718

Current Consolidated Fiscal Year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders’ equity

Balance at beginning of year

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total
shareholders’equity

4,819

4,947

16,991(2,630)24,127

Changes during the year
Dividends from surplus

(472)

(472)

Net income

5,869

5,869

Change in scope of
consolidation
Acquisition of treasury stock(2,496)(2,496)

25

26

52

Cancellation of treasury
stock

(920)

920

－

Transfer from retained
earnings to capital surplus

765

(765)

－

(130)

4,632

(1,548)

2,952

4,819

4,817

21,623(4,179)27,080

Disposition of treasury stock－

Net changes of items otherthan shareholders’ equity
Total changes during the year
Balance at end of year

Accumulated other comprehensive income
Unrealized gains(losses) on
available-for-salesecurities
Balance at beginning of year

Total accumulated
other comprehensive
income33

New share subscription
rights16

Total net assets

24,147

Changes during the year
Dividends from surplus(472)

Net income

5,869

Change in scope of
consolidation－

Acquisition of treasury stock(2,496)

Disposition of treasury stock

52

Cancellation of treasury
stock

－

Transfer from retained
earnings to capital surplus－

Net changes of items otherthan shareholders’ equity

0

0

36

37

Total changes during the year

0

0

36

2,990

Balance at end of year

4

4

53

27,13819

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation and amortization

5,869

9,444

356

437

Impairment loss
Gains on negative goodwill

18
(66)

17
－

(Decrease) increase in allowances(Decrease) increase in Liabilities related to retirement

(50)

124

－

41

benefits
Interest and dividend income

(8)

(8)

Equity-based compensation cost
Interest expense

67
766

88
832

Loss on disposal of fixed assets
Loss on sale of tangible fixed assets

23
－

0
39

Legal settlement received
Decrease (increase) in accounts receivable, trade

－
54

(330)
(81)

Decrease in operating loans(Increase) decrease in inventories

79(3,294)56
2,051(Decrease) increase in accounts payable, trade
Increase in advance received(2,244)161

12,772
87

Other

671

(425)

Subtotal

2,404

25,149

8

8

(764)
(772)

(821)
(1,669)Amount of legal settlement received－

330

Net cash provided by operating activities

875

22,996

Payments into time deposits
Withdrawals from time deposits

(1)
－

(0)
9

Decrease in short-term loans
Purchase of stocks of subsidiaries and affiliates

4
－

4
(646)

(1,548)－(3,856)
12

(42)
(20)

(29)
(59)

16

－

2

－

(0)

(2)

(1,590)(4,568)Interest and dividend received
Interest paid
Income taxes paid

Cash flows from investing activities

Acquisition of tangible fixed assets
Proceeds from sale of tangible fixed assets
Acquisition of intangible fixed assets
Acquisition of investment securities
Proceeds from sale of investment securities
Inflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Other

※3

Net cash used in investing activities

20

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2012
(From April 1, 2013
to March 31, 2013)

to March 31, 2014)

Cash flows from financing activities
Net decrease in short-term borrowings(2,865)(38)

Proceeds from long-term borrowings
Repayment of long-term borrowings

18,520(13,127)

19,170(16,432)

Repayment of lease obligations
Acquisition of treasury stock

(75)
(792)

(98)
(2,496)

Dividends paid

(429)

(471)

Net cash provided by (used in) financing activities

1,229

(366)

515

18,061

Increase in cash and cash equivalent
Cash and cash equivalent at beginning of year

17,893

17,377

Cash and cash equivalent at end of year※1

21

17,893※1

35,954

(5) Notes to the Consolidated Financial Statements(Notes Regarding the Going Concern Assumption)
Not applicable.
(Significant Basis for Preparation of the Consolidated Financial Statements)
1. Scope of consolidation(1)

Number of Consolidated subsidiaries: 6
Names of consolidated subsidiaries
Leben Community Co., Ltd.
TAFUKO Co., Ltd.
Marunouchi Servicer Co., Ltd.
Takara Property Co., Ltd.
Takara Asset Management Co., Ltd.
Takara Investments Co., Ltd.
Takara Asset Management Co., Ltd. and Takara Investments Co., Ltd. were established during the year ended
March 31, 2014 and included in the scope of consolidation.

(2)

Names of major nonconsolidated subsidiaries
Not applicable.

2．Application of the equity method(1)

Number of affiliates accounted for using the equity method: 2Name of the affiliate
AS PARTNERS Co., Ltd.
Sunwood Corporation
Sunwood Corporation became an associated company accounted for by the equity method as the Company acquired
Sunwood’s shares through the allocation of new shares to a third party during the year ended March 31, 2014.

(2)

Non-consolidated subsidiaries not accounted for using the equity method
Not applicable.

3．Fiscal year of consolidated subsidiaries
All consolidated subsidiaries have the same fiscal year-end as the consolidated fiscal year-end.
4．Accounting policies(1) Valuation basis and method for major assets(i) Securities
a．Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.
b．Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the consolidated fiscal year-end.
(Unrealized gains and losses are directly recorded in Net assets and cost of securities sold is calculated using themoving-average method)
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
(ii) Inventories
Inventory is stated at cost based on the specific identification method.
(Book value is written down due to decline in profitability)22

(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)a. Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 1998 are depreciated using thestraight-line method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic useful life
in order to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15

b. Tangible fixed assets other than above
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(ii) Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five years.
(iii) Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
Lease assets without ownership transfer are depreciated using the straight-line method over the lease term with noresidual value.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similar manner tooperating lease transactions.
(iv) Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method.
(3) Accounting for major allowances(i) Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual loss
ratio, and allowance for certain receivables with doubtful collectibility is recorded based on the individual assessmentof collectibility.
(ii) Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current
consolidated fiscal year is recorded.
(iii) Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects after
the delivery of self-executed constructions or compensation service costs based on the historical costs related to repair
work of self-executed constructions.
(iv) Allowance for directors’ retirement benefits
Allowance for directors’ retirement benefits is provided in the amount payable at the current consolidated fiscal
year-end in accordance with the regulations on directors’ retirement benefits (internal regulations).
(4) Accounting for retirement benefits
The Company and its consolidated subsidiaries calculate liabilities related to retirement benefits and pension costs
using the simplified method in which the amount of retirement benefits payable for voluntary termination at end of year istreated as retirement benefit obligations.
23

(5) Amortization method and period of goodwill
Goodwill is amortized using the straight-line method over ten years.
However, goodwill of minor amounts is charged to income in the period of acquisition.
(6) Scope of cash and cash equivalent on the consolidated statement of cash flows
Cash and cash equivalent consist of cash at hand, demand deposit, and short-term investments with an original maturityof three months or less that are readily convertible to cash and subject to insignificant risk of changes in value.
(7) Other significant matters for preparation of the consolidated financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
However, Consumption taxes of tax-exempt consolidated subsidiaries are accounted for using the tax inclusive method.

(Change of Accounting Policy)(Adoption of Accounting Standard for Retirement Benefit)
The Company adopted Accounting Standards Boards of Japan (ASBJ) Statement No. 26, “Accounting Standard for
Retirement Benefits” (May 17, 2012) and ASBJ Guidance No. 25 “Guidance on Accounting Standard for Retirement
Benefits” (May 17, 2012) from the year ended March 31, 2014, except for the matters provided in the main clause of Article
35 of Accounting Standard for Retirement Benefits and Article 67 of Guidance on Accounting Standard for Retirement
Benefits, and modified to record retirement benefit obligations as liabilities related to retirement benefits.
As a result, liabilities related to retirement benefits of ¥220 million was recorded for the current consolidated fiscal year.

(Consolidated Balance Sheet)※1 Assets relating to affiliates are as follows:
Previous Consolidated Fiscal Year
(March 31, 2013)

Current Consolidated Fiscal Year
(March 31, 2014)¥101 million¥885 million

Investments and other assets, Other (Affiliates’ stock)※2 Assets pledged as collateral and corresponding liabilities are as follows.
(1)Assets pledged as collateralPrevious Consolidated Fiscal Year
(March 31, 2013)
Real estate held for sale
Real estate held for sale in progress
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Land
Construction in progress
Intangible fixed assets (land lease rights)
Total

474

－

28,922
4,515

29,640
4,302

－
0

631
0

9,705
－

10,268
710

224

224

43,84245,778(2) Corresponding liabilities

Short-term borrowings
Current portion of long-term borrowings

Previous Consolidated Fiscal Year
(March 31, 2013)
2,619

Long-term borrowings
Total(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2014)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2014)
2,197

11,255
20,252

4,797
28,82934,12735,824※3 Change in purpose of asset holding
Previous consolidated fiscal year (as of March 31, 2013)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,24Buildings and structures of ¥9 million and Land of ¥2,091 million were reclassified to Real estate held for sale and Realestate held for sale in progress during the year ended March 31, 2013.
Also, in line with the decision to reclassify part of real estate held for resale to real estate held for development and rent,
Real estate held for sale in progress of ¥95 million was reclassified to Land during the year ended March 31, 2013.
Current consolidated fiscal year (as of March 31, 2014)
In line with the decision to reclassify part of real estate held for development and rent to real estate held for resale,
Buildings and structures of ¥38 million and Land of ¥27 million were reclassified to Real estate held for sale.

4

Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by companies other than consolidated subsidiaries(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2013)

Joint and several guarantees in favor of
financial institutions until the customers’

1,207

residential mortgage loans are registered
Aruka Co., Ltd.
計
5

Current Consolidated Fiscal Year
(March 31, 2014)
7,301

46

26

1,253

7,327

The Group maintains overdraft and credit lines agreement with 11 financial institutions (March 31, 2013: 1) in order toensure efficient funding of operating capital.
fiscal year-end is as follows:

The unused balance of borrowings under these agreements at consolidated(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(March 31, 2013)(March 31, 2014)

Total maximum amount of overdraft and credit lines

600

5,950

Outstanding borrowing balance

475

3,622

125

2,327

Difference(Consolidated Statement of Income)※1 Inventories are stated at the amount after the write-down reflecting the decline in profitability.

Loss on valuation of

inventories included in Cost of sales is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2012 to March 31, 2013)

Current Consolidated Fiscal Year
(From April 1, 2013to March 31, 2014)
－

(220)

※2 Selling expenses account for approximately 55% and General and administrative expenses account for approximately 45%
for the year ended March 31, 2013, and 52% and 48%, respectively, for the year ended March 31, 2014.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Advertising expenses

2,634

2,838

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,588
1,208

1,450
1,341

248
31

276
46

2

1

Retirement benefit costs
Provision for allowance for directors’ retirement
benefits
25

Provision for allowance for doubtful accounts※3

16

The breakdown of Loss on sale of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2012

Current Consolidated Fiscal Year
(From April 1, 2013

to March 31, 2013)

to March 31, 2014)

Buildings and structures
Total
※4

－

39

－

39

The breakdown of Loss on disposal of fixed assets is as follows.

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Buildings and structures
Tools, furniture and fixtures

22
0

－
0

1

0

23

0

Software
Total

Idle assets

Impairment loss
Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)
During the year ended March 31, 2013, the Group recorded impairment loss of ¥18 million on the following assets orasset groups due to the decline in market value of rental properties.
AmountUse
Type
Location(Millions of yen)

Recreation
facilityLand

Koga, Ibaraki

2

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

1

Land

Hakone-machi, Ashigara-shimogun, Kanagawa

0

Land

Itabashi-ku, Tokyo

5

Land

Oyama, Tochigi

3Land and buildings

Atami, Shizuoka

1

Total

18

The amount consists of Land of ¥17 million and Buildings of ¥0 million.
Idle assets and recreation facility are grouped based on an individual property.
The recoverable amount is measured using net sale value which is assessed based on the appraisal value by a real estateappraiser.
Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)
During the year ended March 31, 2014, the Group recorded impairment loss of ¥17 million on the following assets orasset groups due to the decline in market value of rental properties.
Use
Idle assets

※5

22

Type

Location

Amount(Millions of yen)Land

Koga, Ibaraki

0

Land

Hakone-machi, Ashigara-shimogun, Kanagawa

1

Land

Oyama, Tochigi

826

Rentalproperties

Land

Tsukuba, Ibaraki

5

Land

Matsudo, Chiba

1

Total

17

The amount consists of Land of ¥17 million.
Rental properties and idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value and value in use. Net sale value is assessed based on theappraisal value by a real estate appraiser and value in use is calculated by discounting future cash flows at a rate of 6%.
※6

Loss from legal proceedings
Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)
Not applicable.
Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)
Loss from legal proceedings represents attorney’s fee of ¥9 million.

(Consolidated Statement of Comprehensive Income)※1
Reclassification adjustments of other comprehensive income and their tax effects.

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Unrealized gains (losses) on available-for-sale securities：
Recognized during the current year

120

Reclassification adjustments

(1)

－

10
－

0
－

10

0

10

0

Before tax effects
Tax effects
Unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income(Consolidated Statement of Changes in Shareholders’ Equity)

Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2012
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2013
(Shares)

Shares issued and outstanding
Common stock

33,386,070－－

33,386,070

Total

33,386,070－－

33,386,070

Common stock (Note 1, 2)

2,451,871

1,124,400

71,0003,505,271

Total

2,451,871

1,124,400

71,0003,505,271

Treasury stock(Notes) 1. The increase in number of common stock in treasury stock of 1,124,400 shares is due to acquisition of treasury
stock based on the resolution by the Board of Directors meeting.
2. The decrease in number of common stock in treasury stock of 71,000 shares is due to exercise of stock option.

27

2. New share subscription rights and treasury new share subscription rights
Class of shares Number of shares to be issued upon exercise of new
to be issued
share subscription rights
Balance at
Number ofClassifi-cati Description of new share upon exercise Number ofMarch
31, 2013
shares aton
subscription rightsof new share
shares at
Increase
Decrease
March 31, (million yen)
(Shares)
subscription April 1, 2012 (Shares)
2013(Shares)(Shares)rightsSubmitting
company New share subscription(Parent
company)

rights as stock options
Total

－

－

－

－

－

16

－

－

－

－

－

16

3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June22, 2012
Board of Directors
meeting on October
29, 2012

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

278

Common stock

151

Record date

Effective date9

March 31, 2012

June 25, 20125September 30, 2012

December 11, 2012

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year(Resolution)

Class ofsharesGeneral meeting ofCommonshareholders on Junestock
20, 2013

Total dividends
paid(Millions of yen)
298

SourceDividend pershare (Yen)

Retainedearnings

10

Record date

Effective date

March 31, 2013

June 21, 2013

Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2013
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2014
(Shares)

Shares issued and outstanding
Common stock (Note 1, 2, 3)

33,386,070

99,000,000

2,386,070

130,000,000

Total

33,386,070

99,000,000

2,386,070

130,000,000

Common stock (Notes 1, 4, 5)

3,505,271

14,881,606

2,412,070

15,974,807

Total

3,505,271

14,881,606

2,412,070

15,974,807

Treasury stock(Notes) 1. As of July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock.
2.
3.

The increase in number of common stock outstanding of 99,000,000 shares is due to stock split.
The decrease in number of common stock outstanding of 2,386,070 shares is due to cancellation of treasury stock

based on the resolution by the Board of Directors meeting.
4.
The increase in number of common stock in treasury stock of 14,881,606 shares is due to stock split andacquisition of treasury stock based on the resolution by the Board of Directors meeting.
5. The decrease in number of common stock in treasury stock of 2,412,070 shares is due to exercise of stock option
and cancellation of treasury stock based on the resolution by the Board of Directors meeting.
28

2. New share subscription rights and treasury new share subscription rights
Class of shares Number of shares to be issued upon exercise of new
to be issued
share subscription rights
Classifi-cati Description of new share upon exercise Number ofonsubscription rightsof new share
shares at
Increase
Decrease
April
1,
2013
(Shares)(Shares)
subscription(Shares)rightsBalance at
Number ofshares at March 31, 2014
March 31, (million yen)
2014
(Shares)

Submitting
company(Parent

New share subscription
rights as stock options

－

－

－

－

－

53

－

－

－

－

－

53

company)
Total
3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June20, 2013
Board of Directors
meeting on October28, 2013

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

298

Common stock

173

Record date

Effective date10

March 31, 2013

June 21, 2013

1.5

September 30, 2013

December 10, 2013

(2) Dividends with a record date belonging to the current consolidated fiscal year but to be effective in the following fiscal
year
The following dividend is expected to be approved.
Total dividends
Class of(Resolution)
to be paid
Sourceshares(Millions of yen)
Board of Directors Common
Retainedmeeting on June 23,399
earnings
stock
2014

Dividend pershare (Yen)
3.5

Record date

Effective date

March 31, 2014

June 24, 2014

(Consolidated Statement of Cash Flows)※1 A reconciliation of Cash and cash equivalent and the account balance on the Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Cash and deposits
Time deposits with maturity in excess of three months

17,911(18)(10)

Cash and cash equivalent

17,89335,9542

Significant non-cash transactions

35,964(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

The amounts transferred from fixed assets to Real estate held
for sale and Real estate held for sale in progress due to change
in the purpose of real estate holding
The amounts transferred from Real estate held for sale andReal estate held for sale in progress to fixed assets due tochange in the purpose of real estate holding
29(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

2,101

65

95

－

※3 Major components of assets and liabilities of the company included in the scope of consolidation as a result of acquisitionof shares
Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)
Details of assets and liabilities of Takara Property Co., Ltd. at the time of consolidation as a result of acquisition ofshares, purchase price of the stock and cash flows (net) from acquisition of Takara Property Co., Ltd. are as follows:
Current assets(Millions of yen)
14

Fixed assets

338

Current liabilities(130)

Noncurrent liabilities(145)

Negative goodwill(66)

Purchase price of newly consolidated subsidiary’s stock

10

Cash and cash equivalent of newly consolidated subsidiary’s stock(12)

Difference：Cash inflow due to acquisition of newly consolidated subsidiary’s shares

2

Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)
Not applicable(Rental Properties, etc.)
The Company and its certain consolidated subsidiaries own office buildings (including land) and condominiums for rent inTokyo and other areas. During the consolidated fiscal year ended March 31, 2013, net rent income from these rental properties
amounted to ¥605 million (rent income is recorded in Net sales and major rent expenses are recorded in cost of sales), andimpairment loss amounted to ¥17 million (recorded in Extraordinary losses). During the consolidated fiscal year ended March
31, 2014, net rent income from these rental properties amounted to ¥705 million (rent income is recorded in Net sales and major
rent expenses are recorded in cost of sales), and impairment loss amounted to ¥17 million (recorded in Extraordinary losses).
The carrying amount of these rental properties on the Consolidated Balance Sheet, changes during the year and market value
are as follows:(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Consolidated Balance Sheet
Beginning balance
Changes during the year
Ending balanceMarket value at end of year

17,80917,381(428)

707

17,381

18,08819,21519,748(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents acquisition cost, net of accumulated depreciation
and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increase during the year ended March 31, 2013 include acquisition of realestate (¥1,175 million) and an increase in scope of consolidation (¥332 million), and major decreases include
reclassification to Real estate held for sale and Real estate held for sale in progress (¥2,096 million), Depreciation(¥221 million), and Impairment loss (¥17 million). The major increases during the year ended March 31, 2014
include acquisition of real estate (¥1,262 million), and major decreases include reclassification to Real estate held forsale (¥65 million), Depreciation (¥244 million), and Impairment loss (¥17 million).
3. Market value at end of year is based on the appraisal value by a third party real estate appraiser.

30

(Segment Information)a．Segment Information
1. Overview of reportable segments
The reportable segments of the Group are components of the Company for which separate financial information isavailable that is evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing
performance.
The Group’s core business is construction and sales of build-for-sale condominiums. The Group’s reportable segments
consist of three business segments: “Real estate sales business,” “Real estate rental business” and “Real estate managementbusiness.”“Real estate sales business” primarily engages in construction and sales of new build-for-sale condominiums and detachedhouses and condominium renovation.
“Real estate rental business” provides office and residential condominiums rental service, and “Real estate managementbusiness” provides condominium management service.
2. Calculation methods of net sales, income or loss, assets, liabilities and other items by reportable segment
Accounting policies for the reportable business segments are consistent with those described in “Significant Basis for
Preparation of the Consolidated Financial Statements,” except for valuation of inventories.
Inventories are stated at the value after the write-down reflecting the decline in profitability.
Reportable segment income represents operating income.
Inter-segment sales and transfers are valued at market prices.
3．Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness
Net sales

Total

Total

Other
(Note) 1

59,310

1,485

2,582

63,378

1,529

64,907

－

24

8

33

92

126

59,310

1,510

2,591

63,412

1,621

65,033

Segment income

5,234

592

173

5,999

350

6,349

Segment assets

37,387

17,559266

55,213

1,164

56,377

Segment liabilities

40,3499,200

220

49,771

849

50,620Depreciation and amortization

112

221

3

337

11

348

Interest expense

529

220

－

749

15

764

Increase in tangible and intangible
fixed assets (Note) 2

195

1,589

2

1,788

195

1,983

Net sales to external customers
Inter-segment sales and transfers
Total

Other items(Notes) 1. “Other” represents business segments which are not included in any reportable segments and includes real estateagent services and repair work business.
2. Increase in tangible and intangible fixed assets of Real estate rental business segment includes ¥332 million
associated with consolidation of Takara Property Co. Ltd. as a subsidiary.

31Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness
Net sales

Total

Total

Other
(Note) 1

65,757

1,696

2,739

70,194

1,768

71,963

－

58

9

68

109

178

65,757

1,755

2,749

70,262

1,878

72,141

Segment income

8,667

663

127

9,458

350

9,808

Segment assets

35,75018,543296

54,591

3,862

58,453

Segment liabilities

55,251

9,242

234

64,7283,334

68,063

Depreciation and amortization

104

246

2

352

76

429

Interest expense

569

195

－

765

30

796

Increase in tangible and intangible
fixed assets

79

1,337

0

1,417

2,707

4,125

Net sales to external customers
Inter-segment sales and transfers
Total

Other items(Notes) 1. “Other” represents business segments which are not included in any reportable segments and includes repair workbusiness and mega solar business.

4．Reconciliation of the total reportable segments and the amount on the consolidated financial statements (difference
adjustments)(Millions of yen)
Net sales

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments

63,41270,262

Net sale of “Other” category
Elimination of inter-segment transactions

1,621
(126)

1,878
(178)

Net sales on the consolidated financial statements

64,907

71,963(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Income of “Other” category
Elimination of inter-segment transactions
Operating income on the consolidated financial
statements

5,999
350

9,458
350

11

(9)

6,361

9,798
(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category

55,213
1,164

54,591
3,862

Elimination of due from parent administrative divisionCorporate assets (Note)(332)
18,968(199)
37,636

Total assets on the consolidated financial statements

75,013

95,891(Note) Corporate assets represent assets not attributable to any reportable segments and primarily consist of cash anddeposits, assets attributable to administrative division, and deferred tax assets.

32

(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category

49,771849

64,7283,334

Elimination of due to parent administrative divisionCorporate liabilities (Note)

(521)
767

(495)
1,184

Total liabilities on the consolidated financial statements

50,86668,752(Note) Corporate liabilities represent liabilities not attributable to any reportable segments and primarily consist of
borrowings.

Other items

Total reportablesegments
Previous
Current
FY
FY

Other

Adjustments

Previous
FY

Current
FY

Previous
FY

Current
FY(Millions of yen)
Consolidated financial
statements
Previous
Current
FY
FY

Depreciation andamortization

337

352

11

76

8

8

356

437

Interest expense

749

765

15

30

1

42

766

838

Increase in tangible and
1,788
1,417
195
2,707
7
38
1,991
4,163
intangible fixed assets(Note) Adjustments for increase in tangible and intangible fixed assets represent capital expenditure for the headquarterbuilding and elimination of inter-segment transactions.

b．Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2012 to March 31, 2013)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness

1

17－

Corporate /Elimination

Other
－

Total

－

18

Current consolidated fiscal year (From April 1, 2013 to March 31, 2014)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness－

17－

Corporate /Elimination

Other
－

Total

－

17

(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Consolidated
Fiscal Year
(From April 1, 2013
to March 31, 2014)

Net assets per share¥201.90¥237.53

Earnings per share¥33.61¥50.64

Diluted earnings per share¥33.58¥50.53(Notes) 1. On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Earnings per share and diluted
earnings per share are calculated, assuming that the stock split had taken place at the beginning of the previous
consolidated fiscal year.
2. Basis for calculation of earnings per share and diluted earnings per share is as follows.

33

Previous Consolidated
Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Consolidated
Fiscal Year
(From April 1, 2013
to March 31, 2014)

4,074

5,869

－

－

Net income attributable to common stock (Millions of yen)

4,074

5,869

Average number of shares during the year (thousand shares)

121,209

115,903－－

Increase in number of common stock (thousand shares)

116

252

(Of those, stock option through acquisition of treasury stock(thousand shares))

(116)

(252)

Overview of dilutive shares not included in calculation of diluted
earnings per share due to its anti-dilutive effect－－Earnings per share
Net income (Millions of yen)Amount not attributable to common stockholders(Millions of yen)

Diluted earnings per share
Net income adjustments(Millions of yen)

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 11, 2014 to issue new share subscription rights as stock options forequity-based compensation to directors and executive officers of the Company, pursuant to Articles 236, 238 and 240 of theCompanies Act.
Please refer to news release dated April 11, 2014, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock options for equity-based
compensation (Class B new share subscription rights),” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 12, 2014 to acquire treasury stock and on specific procedures ofacquisition, pursuant to provisions of Articles 156 of the Companies Act which shall be applied by replacing phrases in accordancewith provision of Article 165, Paragraph 3 of the Companies Act.
1. Purpose of acquisition of treasury stock
As a measure to improve capital efficiency towards increase in shareholders’ value
2. Details of the resolution by the Board of Directors meeting regarding acquisition of treasury stock(1)

Class of shares to be acquired
Common stock of the Company(2)

Total number of shares that may be acquired
5,000,000 shares (maximum)(3)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 4.38%)
Acquisition period(4)

From May 13, 2014 to March 31, 2015
Total amount of acquisition cost of shares(5)¥1,500 million (maximum)
Acquisition method
Market purchase at Tokyo Stock Exchange

34

5．Non-Consolidated Financial Statements(1) Balance Sheet(Millions of yen)Previous Fiscal Year
(March 31, 2013)

Current Fiscal Year
(March 31, 2014)

AssetsCurrent assets
Cash and deposits

16,63534,557

53
9

73
40

2,035
33,282

1,152※1 32,228

Advance payments
Prepaid expenses

65
962

249
920

Short-term loans
Deferred tax assets

4
224

4
375

Other
Allowance for doubtful accounts

267
(8)

438
(8)

53,53070,0327,145(2,444)

7,491(2,683)

Accounts receivable, trade
Other receivables
Real estate held for sale
Real estate held for sale in progress※1, ※2※1, ※2

Total current assets
Fixed assets
Tangible fixed assets
Buildings
Accumulated depreciation
Buildings, net

4,700※1, ※2

Structures
Accumulated depreciation

4,808

※1

87
(51)

Structures, net※1

Machinery, equipment and vehicles
Accumulated depreciation

35

※1

－
－

1,135
(61)

－

Total machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation

129
(60)

1,074

※1

133
(114)

Total tools, furniture and fixtures, net

※1

Land
Lease assets※1, ※2

128
(116)

18

12,141
128

68

※1
※1

11

13,741
128

Accumulated depreciation(36)

Lease assets, net

91

※1

98

Construction in progress

－

※1

743

Total tangible fixed assets

16,987

Intangible fixed assets
Land lease rights

※1

224

(29)

20,546※1

224

SoftwareLease assets

70
128

61
85

Total intangible fixed assets

423

371

Investments and other assets
Investment securities

150

210

Affiliates’ stock
Investments in capital

82
2

748
2

Membership

9

11

35

(Millions of yen)Previous Fiscal Year
(March 31, 2013)

Current Fiscal Year
(March 31, 2014)

Security deposits and guarantee deposits

245

319

Long-term loans
Long-term loans to affiliates

81
361

73
325

Long-term other receivables
Deferred tax assets

195
231

185
-

Other
Allowance for doubtful accounts

1
(276)

6
(266)

Total investments and other assets

1,083

1,615

18,494

22,53372,02592,565

6,200

18,9431,607※1 2,619

1,619※1 2,580

Total fixed assets
Total assets
Liabilities
Current liabilities
Notes payable
Accounts payable, trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations※1

Other payables
Accrued expenses

11,261
68

※1

5,003
59

648
93

913
110

Income taxes payable
Advance received

1,517
3,918

3,264
3,985

Deposits received
Unearned revenues

96
17

179
17

Allowance for bonuses
Allowance for compensation for complete work

148
70

161
158

Other

99

8

28,36837,005

Total current liabilities
Noncurrent liabilities
Long-term borrowings
Security deposits and guarantee deposits received※1

20,476586※129,579634

Lease obligations
Allowance for employees’ retirement benefits

169
116

139
142

Asset retirement obligations
Deferred tax liabilities

19
-

20
117

Other
Total noncurrent liabilities
Total liabilities

36

4

4

21,37330,63949,742

67,644

(Millions of yen)Previous Fiscal Year
(March 31, 2013)

Current Fiscal Year
(March 31, 2014)

Net assets
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus
Capital reserve

4,817

4,817

Other capital surplus

130－

Total capital surplus

4,947

4,817

92

92

－
9,681

691
12,681Retained earnings
Legal reserve
Other retained earnings
Reserve for special depreciation
General reserve
Retained earnings carried forward
Total retained earnings

5,352

5,940

15,126

19,405

Treasury stock(2,630)(4,179)Total shareholders’ equity

22,262

24,863

Valuation and translation adjustments
Net unrealized gains on available-for-salesecurities
Total valuation and translation adjustments

3

4

3

4

New share subscription rights

16

53

22,28324,92072,02592,565

Total net assets
Total liabilities and net assets37

(2) Statement of Income(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Net sales
Net sales - real estate
Income from real estate rental

59,194
1,137

65,602
1,297

Other income

171

258

Total net sales

60,502

67,15846,589587

49,358682－

75

47,17650,116

13,326

17,041

Cost of sales
Cost of sales - real estate
Cost of sales - real estate rental※1

Cost of sales - otherTotal cost of sales
Gross profit
Selling, general and administrative expenses※2

Operating income

7,390

※2

7,663

5,936

9,378

Interest income
Dividend income

11
44

14
44

Commissions received
Secondment fee received

106
6

114
－

Non-operating income

Miscellaneous income

30

35

Total non-operating income

199

209

Interest expense
Miscellaneous losses

764
10

829
85

Total non-operating expense

775

915

5,360

8,672

Non-operating expenses

Ordinary income
Extraordinary gains
Legal settlement received－

330

Reversal of allowance for directors’ retirement benefits

53－

Total extraordinary gains

53

330

Extraordinary losses
Loss on sale of fixed assets
Loss on disposal of fixed assets

－
※4 23

※3

Impairment loss
Loss from legal proceedings

※5

18
－

※5

39
※4 0
17
※5 9

Total extraordinary losses

42

66

Income before income taxes

5,371

8,936

Income taxes - current

1,697

3,221

Income taxes - deferred

(52)

198

Total income taxes

1,645

3,419

Net income

3,726

5,516

38

Cost of Sales Statement
1．Cost of sales - real estate

Category
Land purchase cost

Notes
2

Outsourced construction cost

Previous Fiscal Year

Current Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

15,11732.4

15,44331.3

30,77766.1

32,982

66.8

694

1.5

932

1.9

46,589100.0

49,358

100.0

Other
Cost of sales - real estate(Note) 1. Cost of sales is calculated using the job order costing system.
2. Land purchase cost of the previous fiscal year includes loss on valuation of inventories of ¥ (220) million.
2. Cost of sales - real estate rental
Previous Fiscal Year
(From April 1, 2012

Current Fiscal Year
(From April 1, 2013

to March 31, 2013)

to March 31, 2014)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Taxes and public charges

106

18.1

119

17.4

Depreciation and amortization

214

36.5

237

34.8

Maintenance andadministrative expenses

266

45.4

325

47.8

Cost of sales - real estate rental

587

100.0

682

100.0

Category

Notes

39

(3) Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2012 to March 31, 2013)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Capitalstock

Generalreserve

Retainedearnings
carriedforwardTotal
retainedearnings

6,681

5,055

11,8293,000(3,000)－

Dividends from surplus

(429)

(429)

Net income

3,726

3,726

Balance at beginning of year

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusLegalreserve

Reserve for
specialdepreciation

4,817

132

4,949

92

－

4,819

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation
Funding for general reserve

Acquisition of treasury stock
Disposition of treasury stock

(1)

(1)

Cancellation of treasury stock
Transfer from retained
earnings to capital surplus
Net changes of items otherthan shareholders’ equity
Total changes during the year
Balance at end of year

－

－

(1)

(1)

－

－

3,000

296

3,296

4,819

4,817

130

4,947

92

－

9,681

5,352

15,126

Valuation and translation
adjustments
Unrealized gains
Total
Total valuation(losses) on
Treasury stock shareholders’and translation
available-for-sal
equityadjustments
e securities
Shareholders’ equity

Balance at beginning of year

(1,890)19,708(7)(7)

New share
subscription
rightsTotal net
assets－

19,701

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation－－

Funding for general reserve－

Dividends from surplus

(429)

(429)

Net income

3,726

3,726

Acquisition of treasury stock

(792)

(792)

(792)

Disposition of treasury stock

52

50

50

Cancellation of treasury stock－

Transfer from retained
earnings to capital surplus－

40

Net changes of items otherthan shareholders’ equity
Total changes during the year
Balance at end of year(740)
(2,630)2,554
22,262

10

10

16

27

10
3

10
3

16
16

2,582
22,283Current Consolidated Fiscal Year (From April 1, 2013 to March 31, 2014)(Millions of yen)
Shareholders’ equity
Capital surplus
Capitalstock

Balance at beginning of year

4,819

Capitalreserve

Other
capitalsurplus

4,817

130

Retained earnings
Other retained earnings
Total
Retained
capital Legal reserve Reserve for Generalearnings
specialsurplusreservecarrieddepreciation
forward
4,947

92

－

9,681

Total
retainedearnings

5,352

15,126

752

(752)

－

(61)

61

－

(3,000)－

Dividends from surplus

(472)

(472)

Net income

5,516

5,516

(765)

(765)

Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation
Funding for general reserve

3,000

Acquisition of treasury stock
Disposition of treasury stock

25

25

Cancellation of treasury stock

(920)

(920)

765

765

Transfer from retained earnings tocapital surplus
Net changes of items other thanshareholders’ equity
Total changes during the year
Balance at end of year

－

－

(130)

(130)

－

691

3,000

587

4,279

4,819

4,817

－

4,817

92

691

12,681

5,940

19,405

Shareholders’ equity
Total
Treasury stock shareholders’equityBalance at beginning of year

(2,630)

Valuation and translation
adjustments
New share
Unrealized gains
Total net assets
Total valuation
subscription rights(losses) on
and translation
available-for-saleadjustments
securities

22,2623

3

16

22,283

Changes during the year
Funding for reserve for
special depreciation
Reversal of reserve for
special depreciation

－

－

－

－

－

－

Dividends from surplus

(472)

(472)

Net income

5,516

5,516

Funding for general reserve

Acquisition of treasury stock(2,496)(2,496)(2,496)

Disposition of treasury stock

26

52

52
41

Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus

920

－

－

－

－

Net changes of items otherthan shareholders’ equity

0

0

36

37

Total changes during the year

(1,548)

2,600

0

0

36

2,637

Balance at end of year

(4,179)24,8634

4

53

24,92042

(4) Notes to the non-consolidated financial statements(Notes Regarding the Going Concern Assumption)
Not applicable.
(Significant Accounting Policies)
1. Valuation basis and method for securities(1)
Debt securities held to maturity
Debt securities held to maturity are stated at amortized cost using the straight-line method.
(2) Subsidiaries’ and affiliates’ stock
Subsidiaries’ and affiliates’ stock is stated at cost based on the moving-average method.
(3) Available-for-sale securities
With fair value
Securities with fair value are marked to market based on the market value at the fiscal year-end (Unrealized
gains and losses are directly recorded in Net assets and cost of securities sold is calculated using themoving-average method).
Without fair value
Securities without fair value are stated at cost based on the moving-average method.
2. Valuation basis and method for inventories
Inventory is stated at cost based on the specific identification method (Book value is written down due to decline inprofitability).
3. Depreciation method for fixed assets(1) Tangible fixed assets (excluding lease assets)(i) Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 1998 are depreciated using
the straight-line method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic
useful life in order to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15(ii) Other tangible fixed assets
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(2)Intangible fixed assets (excluding lease assets)
Software for internal use is amortized using the straight-line method over the estimated useful life of five
years.
(3)
Lease assets
Lease assets under the finance lease arrangements where the ownership is transferred to lessees
Lease assets with ownership transfer are depreciated using the same depreciation method as fixed assets
owned.
Lease assets under the finance lease arrangements where the ownership is not transferred to lessees
43Lease assets without ownership transfer are depreciated using the straight-line method over the lease termwith no residual value.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similarmanner to operating lease transactions.

4. Accounting for allowances(1)

Allowance for doubtful accounts
For the estimated uncollectible amount, allowance for performing receivables is recorded based on the actual
loss ratio, and allowance for certain receivables with doubtful collectibility is recorded based on the individual
assessment of collectibility.
(2)
Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current
fiscal year is recorded.
(3)
Allowance for compensation for complete work
Allowance for compensation for complete work is recorded in order to provide for losses arising from defects
after the delivery of self-executed constructions or compensation service costs based on the historical costs
related to repair work of self-executed constructions.
(4)
Allowance for employees’ retirement benefits
Allowance for employees’ retirement benefits is provided based on the retirement benefit obligations as at thecurrent fiscal year-end.
5. Other significant basis for preparation of the financial statements
Accounting for consumption taxes
National and local consumption taxes are accounted for using the tax exclusive method. Non-deductible
consumption taxes relating to assets are charged to income in the year of acquisition.
(Balance Sheet)※1

Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateralPrevious Fiscal Year
(March 31, 2013)
Real estate held for sale
474
Real estate held for sale in progress
Buildings(Millions of yen)
Current Fiscal Year
(March 31, 2014)－

28,922
4,420

29,6404,195

Structures
Machinery and equipment

19
－

35
631

Tools, furniture and fixtures
Land

0
9,567

0
10,131

－
224

710
224

43,63045,570Construction in progress
Land lease rights
Total(2) Corresponding liabilities

Previous Fiscal Year
(March 31, 2013)(Millions of yen)
Current Fiscal Year
(March 31, 2014)

Short-term borrowings
Current portion of long-term borrowings

2,619
11,240

2,197
4,776

Long-term borrowings

20,17028,71334,02935,687

Total
44

※2

Change in purpose of asset holding
Previous fiscal year (as of March 31, 2013)
In line with the decision to reclassify part of the real estate held for development and rent to real estate held
for resale, Buildings of ¥3 million and Land of ¥2,082 million were reclassified to Real estate held for sale andReal estate held for sale in progress during the year ended March 31, 2013.
Also, in line with the decision to reclassify part of the real estate held for resale to real estate held fordevelopment and rent, Real estate held for sale in progress of ¥95 million was reclassified to Land during theyear ended March 31, 2013.
Current fiscal year (as of March 31, 2014)
Not applicable.

3

Contingent liabilities
The Company provides guarantees for borrowings from financial institutions by affiliates and others listed
below.
(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2013)(March 31, 2014)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registeredTAFUKO Co., Ltd.
Takara Property Co., Ltd.
Aruka Co., Ltd.
Total
4

1,207

7,301

327
83

243
－

46

26

1,663

7,570

The Company maintains overdraft and credit lines agreement with 11 financial institutions (March 31, 2013: 1)
in order to ensure efficient funding of operating capital. The unused balance of borrowings under these
agreements at fiscal year-end is as follows.
(Millions of yen)Previous Fiscal Year
(March 31, 2013)

Current Fiscal Year
(March 31, 2014)

Total maximum amount of overdraft and credit lines

600

5,950

Outstanding borrowing balance

475

3,622

125

2,327

Difference(Statement of Income)※1

Real estate held for sale and Real estate held for sale in progress at year-end are stated at the amount after thewrite-down reflecting the decline in profitability. Loss on valuation of inventories included in Cost of sales is
as follows.
Previous Fiscal Year

Current Fiscal Year

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)¥(220) million※2

Selling expenses account for approximately 59% and 56% for the year ended March 31, 2013 and 2014,
respectively, and General and administrative expenses account for approximately 41% and 44%, for the year
ended March 31, 2013 and 2014, respectively.
45¥－ million

Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

Advertising expenses
Sales commissions

2,608
180

2,807
43

Sales promotion expenses
Salaries
Provision for allowance for bonuses
Retirement benefit costs

1,585
994

1,448
1,083

216
12

242
26

112

104

Depreciation and amortization※3

The breakdown of Loss on sale of fixed assets is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2012
to March 31, 2013)

Buildings
Total※4

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

－

39

－

39

The breakdown of Loss on disposal of fixed assets is as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2012
to March 31, 2013)

Buildings
Tools, furniture and fixtures
Software
Total※5

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

22
0

－
0

1

0

23

0

Impairment loss
Previous fiscal year (From April 1, 2012 to March 31, 2013)

Idle assets

During the year ended March 31, 2013, the Company recorded impairment loss of ¥18 million on the following
assets or asset groups due to the decline in market value of rental properties.
AmountLocation
Use
Type(Millions of yen)

Recreation
facilityLand

Koga, Ibaraki

2

Land

Midori-ku, Saitama, Saitama

4

Land

Miyoshi-cho, Iruma-gun, Saitama

1

Land

Hakone-machi, Ashigara-shimogun, Kanagawa

0

Land

Itabashi-ku, Tokyo

5

Land

Oyama, Tochigi

3Land and buildings

Atami, Shizuoka

146

Total18

The amount consists of Land of ¥17 million and Buildings of ¥0 million.
Idle assets and recreation facility are grouped based on an individual property.
The recoverable amount is measured using net sale value which is assessed based on the appraisal value by areal estate appraiser.
Current fiscal year (From April 1, 2013 to March 31, 2014)
During the year ended March 31, 2014, the Company recorded impairment loss of ¥17 million on the following assets orasset groups due to the decline in market value of rental properties.

Rentalproperties

Idle assets

Use

Type

Amount(Millions of yen)

LocationLand

Koga, Ibaraki

0

Land

Hakone-machi, Ashigara-shimogun, Kanagawa

1

Land

Oyama, Tochigi

8

Land

Tsukuba, Ibaraki

5

Land

Matsudo, Chiba

1

Total

17

The amount consists of Land of ¥17 million.
Rental properties and idle assets are grouped based on an individual property.
The recoverable amount is measured using net sale value and value in use. Net sale value is assessed basedon the appraisal value by a real estate appraiser and value in use is calculated by discounting future cash flows
at a rate of 6%.
※6

Loss from legal proceedings
Previous fiscal year (From April 1, 2012 to March 31, 2013)
Not applicable.
Current fiscal year (From April 1, 2013 to March 31, 2014)
Loss from legal proceedings represents attorney’s fee of ¥9 million.

(Statement of Changes in Shareholders’ Equity)
Previous fiscal year (From April 1, 2012 to March 31, 2013)
Class and number of treasury stock
Number of shares at
April 1, 2012
(Shares)

Increase (Shares)

Decrease (Shares)

Number of shares at
March 31, 2013
(Shares)Common stock (Notes 1,2)

2,451,871

1,124,400

71,0003,505,271

Total

2,451,871

1,124,400

71,0003,505,271(Note) 1. The increase in number of common stock in treasury stock of 1,124,400 shares is due to acquisition oftreasury stock based on the resolution by the Board of Directors meeting.
2. The decrease in number of common stock in treasury stock of 71,000 shares is due to exercise of stock
option.

47

Current fiscal year (From April 1, 2013 to March 31, 2014)
Class and number of treasury stock
Number of shares at
April 1, 2013
(Shares)

Increase (Shares)

Decrease (Shares)

Number of shares at
March 31, 2014
(Shares)Common stock (Notes 1,2, 3)

3,505,271

14,881,606

2,412,070

15,974,807

Total

3,505,271

14,881,606

2,412,070

15,974,807(Notes) 1. As of July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock.
2.
The increase in number of common stock in treasury stock of 14,881,606 shares is due to stock split
and acquisition of treasury stock based on the resolution by the Board of Directors meeting.
3. The decrease in number of common stock in treasury stock of 2,412,070 shares is due to exercise ofstock option and cancellation of treasury stock based on the resolution by the Board of Directors
meeting.

48

(Per Share Information)
Previous Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

Net assets per share¥186.29¥ 218.08

Earnings per share¥30.75¥47.60

Diluted earnings per share¥30.72¥47.49(Notes) 1. On July 1, 2013, the Company split its shares at a ratio of 1:4 for one common stock. Earnings per share anddiluted earnings per share are calculated, assuming that the stock split had taken place at the beginning of theprevious fiscal year.
2. Basis for calculation of earnings per share and diluted earnings per share is as follows.
Previous Fiscal Year
(From April 1, 2012
to March 31, 2013)

Current Fiscal Year
(From April 1, 2013
to March 31, 2014)

3,726

5,516

－

－

Net income attributable to common stock (Millions of yen)

3,726

5,516

Average number of shares during the year (thousand shares)

121,209

115,903－－

Increase in number of common stock (thousand shares)

116

252

(Of those, stock option through acquisition of treasury stock(thousand shares))

(116)

(252)

－

－

Earnings per share
Net income (Millions of yen)Amount not attributable to common stockholders(Millions of yen)

Diluted earnings per share
Net income adjustments(Millions of yen)

Overview of dilutive shares not included in calculation of diluted
earnings per share due to its anti-dilutive effect49

(Significant Subsequent Events)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 11, 2014 to issue new share subscription rights as stock
options for equity-based compensation to directors and executive officers of the Company, pursuant to Articles 236,
238 and 240 of the Companies Act.
Please refer to news release dated April 11, 2014, “Announcement concerning issuance of stock options forequity-based compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock
options for equity-based compensation (Class B new share subscription rights),” for more detail.
(Acquisition of treasury stock)
The Board of Directors resolved at the meeting held on May 12, 2014 to acquire treasury stock and on specificprocedures of acquisition, pursuant to provisions of Article 156 of the Companies Act which shall be applied byreplacing phrases in accordance with provision of Article 165, Paragraph 3 of the Companies Act.
1. Purpose of acquisition of treasury stock
As a measure to improve capital efficiency towards increase in shareholders’ value
2. Details of the resolution by the Board of Directors meeting regarding acquisition of treasury stock(1) Class of shares to be acquired(2)

Common stock of the Company
Total number of shares that may be acquired
5,000,000 shares (maximum)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 4.38%)(3)

Acquisition period
From May 12, 2014 to March 31, 2015(4)

Total amount of acquisition cost of shares¥1,500 million (maximum)(5)

Acquisition method
Market purchase at Tokyo Stock Exchange

50

6．Other(1) Changes of Officers
To be disclosed when the information to be disclosed is determined.
(2) Production, Orders Received and Sales(i) Number of units contracted during the year
Previous Consolidated Fiscal Year
(From April 1, 2012
to March 31, 2013)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2013
to March 31, 2014)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,813

61,118

1,836

64,293

105.2

Total

1,813

61,118

1,836

64,293

105.2

Current Consolidated
Fiscal Year-End(March 31, 2014)
Amounts
Number of units(Millions of yen)

Year-on-Year(%)(Note) The above amounts do not include consumption taxes.
(ii) Balance of contract

Segment name

Previous Consolidated
Fiscal Year-End(March 31, 2013)
Amounts
Number of units(Millions of yen)

Real estate sales business

1,094

36,632

1,014

35,167

96.0

Total

1,094

36,632

1,014

35,16796.0(Note) The above amounts do not include consumption taxes.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2013
to March 31, 2014)

Segment nameYear-on-Year(%)

Real estate sales business(Millions of yen)

65,757110.9

Real estate rental business(Millions of yen)

1,696

114.2

Real estate management business(Millions of yen)

2,739

106.1

Total reportable segments(Millions of yen)

70,194

110.8(Millions of yen)

1,768

115.7

(Millions of yen)

71,963

110.9

Other
Total

(Notes) 1. Inter-segment transactions are eliminated.
2. The above amounts do not include consumption taxes.

51