Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2017 (Japan GAAP)
January 29, 2018

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Kazuichi Shimada, President and Representative Director, CEO
Masashi Yamamoto, Director, Executive officer and General Planning Division
Tel: +81-3-6551-2130

Scheduled date for release of Quarterly Report:
Scheduled date for commencement of dividend payments:
Has the Company prepared supplementary briefing materials for the Quarter:
Has the Company held briefings concerning its quarterly financial results:

February 9, 2018
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2017
(April 1- December 31, 2017)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Millions of yen%

Millions of yen

Nine months ended December 31, 2017

45,507(15.3)

Nine months ended December 31, 2016

53,705

55.9

Ordinary Income%Millions of yen

2,305(35.1)

1,665

3,552

236.0

2,764

Net Income%Millions of yen%

(39.7)

930(49.4)

581.4

1,840

864.3

(Note) Comprehensive income: Nine months ended December 31, 2017: ¥1,061 million ((44.0)%) / Nine months ended December 31, 2016:¥1,895 million (854.7%)

Net Income per Share

Diluted Net Incomeper Share

Yen

Yen

Nine months ended December 31, 2017

8.61

8.57

Nine months ended December 31, 2016

16.88

16.79

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2017

165,388

36,34321.9

As of March 31, 2017

139,874

36,792

26.2<Reference> Shareholders’ equity at end of period: December 31, 2017: ¥36,169 million / March 31, 2017: ¥36,635 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year-End
Yen

Year Ending March 31, 2017

-

5.00

-

Year Ending March 31, 2018

-

5.00

-

Year Ending March 31, 2018(Forecast)

Total

Yen

Yen

10.00

15.00

10.00

15.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2018
(April 1, 2017-March 31, 2018)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

110,000

6.2

10,550

1.9

9,500

0.0

6,300

3.1

58.35

(Note) Has the Company changed its consolidated forecast during this quarter: No

4. Other Matters(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
B. Changes in accounting policies other than those in A: No
C. Changes in accounting estimates: No
D. Restatement: No(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

Nine months ended December 31, 2017:

124,000,000 shares

As of March 31, 2017:

124,000,000 sharesb.

Nine months ended December 31, 2017:15,781,307 shares

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

Nine months ended December 31, 2017:

108,129,292 shares Nine months ended December 31, 2016:

109,000,138 shares(Note) This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments andExchange Act.
(Note) Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter .......................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ..................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position ............................................................. 2(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 3
2. Quarterly Consolidated Financial Statements .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7Quarterly Consolidated Statements of Income
Third-Quarter Year-to-Date Period .................................................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income
Third-Quarter Year-to-Date Period .................................................................................................................. 8(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 9(Notes on Assumption of Going Concern) ......................................................................................................... 9(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 9-1-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
a. Performance by business segment
In the third-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2017, sales
from the real estate sales business amounted to ¥19,722 million, down 44.6% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business.
In the real estate rental business, sales totaled ¥4,053 million, up 9.1% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 47,761 units (3,105 units increased
from the end of the previous fiscal year.) of residential condominiums were ¥2,971 million, up 8.9% on ayear-on-year basis.
In the electric power generation business, sales totaled ¥16,847 million, up 72.4% on a year-on-year basis,
mainly due to revenues from the sale of nine facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥1,913 million, down 0.3% on a year-on-year basis, mainly
attributable to revenues from orders for large-scale repair work and revenue from selling electric power in themega-solar business.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥45,507 million, down 15.3% on a year-on-year basis; Operating income amounted to ¥2,305 million, down
35.1% on a year-on-year basis; Ordinary income amounted to ¥1,665 million, down 39.7% on a year-on-yearbasis; and Net income amounted to ¥930 million, down 49.4% on a year-on-year basis.
b.Contracted ratio status
With regard to sales performance in the third-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,414 units, compared with a full-year target of 1,600 units scheduled for delivery.
The contract ratio was at 88.4%, showing a steady growth in the business.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Units scheduled
Number ofContracted
for delivery
contracts signed
ratio (%)
(units)(units)Nine months ended
December 31, 2016

1,600

1,423

88.9

Nine months ended
December 31, 2017

1,600

1,414

88.4

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the third-quarter consolidated
accounting period under review, total assets were ¥165,388 million, an increase of ¥25,514 million comparedwith the end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventory inconjunction with new purchases and purchases of business assets.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

(Current Assets)
Current assets increased ¥6,285 million compared with the end of the previous consolidated fiscal year to¥92,870 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets increased ¥19,238 million compared with the end of the previous consolidated fiscal year to¥72,476 million, mainly reflected the purchase business assets.
(Current Liabilities)
Current liabilities increased ¥8,280 million compared with the end of the previous consolidated fiscal year to¥58,762 million, mainly due to increase in short-term borrowings and the reclassification from long-termborrowings to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥17,683 million compared with the end of the previous consolidated fiscal year, to¥70,282 million, mainly due to the increase borrowings with new purchase.
(Net Assets)
Total net assets decreased ¥449 million compared with the end of the previous consolidated fiscal year to¥36,343 million. The decrease was attributed to the net income for the third-quarter was less than distribution ofsurplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 15, 2017.

-3-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

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

As of December 31, 2017

ASSETS
Current assets:
Cash and deposits

29,78016,142

Notes and accounts receivable, trade

1,331

1,090

Real estate held for sale

9,658

7,963

Power generation facilities for sale

7,885

465

Real estate held for sale in progress

32,39059,913

Costs incurred on uncompleted contracts

15536

Other

5,648

6,889

Allowance for doubtful accounts

(124)

(130)

Total current assets

86,58592,870

Buildings and structures (net)14,235

21,277

Land

23,821

32,623

Other (net)

9,089

10,670Total tangible fixed assets

47,14664,570

1,391

1,854

4,708

6,060

(9)

(9)

Fixed assets:
Tangible fixed assets

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

4,699

6,050

53,23772,47651

41

139,874

165,388

Notes and accounts payable, trade12,173

2,582

Short-term borrowings

16,49024,814

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds

6060

Current portion of long-term borrowings

13,09822,206

Income taxes payable

2,976

141

729

632

Reserve
Other

4,954

8,324

Total current liabilities

50,482

58,762Long-term borrowings

48,43964,809Bonds payableNoncurrent liabilities
1,640

1,610

Reserve

56

59

Liabilities related to retirement benefits

331

381

2,131

3,421

Other

-4-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

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

As of December 31, 2017

52,59970,282103,081

129,045

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

(Millions of yen)
As of March 31, 2017

As of December 31, 2017

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,820

Retained earnings

32,97032,280Treasury stock(5,976)(5,886)

Total shareholders’ equity

36,63036,0334135

4135

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-157

174

36,792

36,343

139,874

165,388

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2016

Nine Months Ended
December 31, 2017

Net sales

53,70545,507

Cost of sales

41,95434,329Gross profit

11,751

11,177

Selling, general and administrative expenses

8,198

8,871

Operating income

3,552

2,305

Interest income

21Dividend income

537

Commissions received

54

23

Profit from equity method investment―

61

Miscellaneous income

50

103

Total Non-Operating income

112

227

Interest expense

772

787

Losses from equity method investment

99―

Miscellaneous losses

29

79

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

901

866

2,764

1,665

Loss on disposal of fixed assets―

20

Loss from compensation for complete work―

72

Office transfer expenses―

93

Total extraordinary losses―

186

Net income before income taxes2,764

1,478

Income taxes, inhabitant taxes and business taxes

1,594

919

Income tax adjustments

(670)

(371)

Total income and other taxes

924

547

Net income

1,840

930

Profit attributable to owners of parent

1,840

930

Ordinary income
Extraordinary losses-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017

Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months EndedDecember 31, 2016
Net income

Nine Months EndedDecember 31, 2017

1,840930

Net unrealized gains on available-for-sale securities

54130

Total other comprehensive income

54130

1,895

1,061

1,895

1,061

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-

Takara Leben CO., LTD. (8897) Consolidated Financial Report the Nine Months Ended December 31, 2017(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on a Significant Change in Shareholders’ Equity)
The Company had no pertinent matters to report.

-9-