Earnings Results Briefing
for the Six Months Ended
September 30, 2014
November 5,2014

Takara Leben Co.,Ltd.

Contents

Summary for The Six months Ended September 30, 2014 ・・・・・・

P 3

Metropolitan area condominium market trends

・・・・・・

P 11

Topics for The Six months Ended September 30, 2014

・・・・・・

P 13

Major strategies going forward・・・・・・

P 26

Year Ending March 2015 Dividends, andFinancial Result Forecast for The Year・・・・・・

P 31

1

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

20101982

Launched real estate leasing business2011

40th anniversary of the founding

1988

Established Takara Management Co.,Ltd.
(the present Leben Community)
Launched real estate management business2012

Introduced New Condominium Brand

1972

Launched detached housing business (buidt by Takara Leben)
Capital increase based on Japan's first rights offering

Introduced Corporate character

1994

Launched sales of condominiums "Leben Heim"

Established Yokohama branch

2000

Changed company name to "Takara Leben Co.,Ltd."Made Takara Housing Co.,Ltd.
(the present Takara Property Co.,Ltd.) its subsidiary
Rental business management operations2001

Launched financial brokering business
Established Tafuko Co.,Ltd.

2003

Listed on the second section of the Tokyo Stock Exchange

2004

Listed on the first section of the Tokyo Stock Exchange

2013

Established Takara Asset Management Co.,Ltd.
Launched investment management business
Esstablished Takara Investments Co.,Ltd.
Launched real estate investment business

Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

2008

Made Marunouchi Servicer Co.,Ltd.
its subsidiary

Entry to mega-solar business

Made Sunwood Corporation it's associated company
accounted for by the equity method

2014

Established Hokuriku Office
Established Tohoku Office

Released new corporate logo
Made Oasis Co.,Ltd.(the present Takara Leben Realnet) its subsidiary
Made Nikko kensetsu Co.,Ltd. its subsidiary2Leben Wako solarea

Summary for The Six months Ended
September 30, 20143

Consolidated Income Statements（Unit Amount=Million yen ）Six months ended
September 30, 2013

Six months ended
September 30, 2014

YOYchange(%)

17,916

18,784

4.8％

Operating profit

542

719

32.6％

Ordinary profit

159

243

52.9％

Net income257

165△35.5％Net sales4Segment Information 【 Net Sales 】（Unit Amount=Million yen ）Six months ended
September 30, 2013

Ratio
(%)

Six months ended
September 30, 2014

Ratio
(%)

Real estate sales
business

15,172

84.7％

15,431

82.1％

Real estate rental
business

833

4.7％

896

4.8％

Real estate
managementbusiness

1,353

7.6％

1,449

7.7％

Other businesses

Total

1,007

557

3.1％

（selling electric powerin the mega-solar：163）

5.4％

17,916100％

18,784100％
5Consolidated Balance Sheets（Unit Amount=Million yen ）Year ended March2013

Six months ended
September 30, 2014

YOY change(%)

72,524

69,271△4.5％

Cash and cash equivalents

35,964

21,261△40.9％

Inventories

33,44542,718

27.7％

1,156

242

△79.1％

32,28842,476

31.6％

Fixed assets

23,366

26,654

14.1％

Total assets

95,891

95,926

0.0％

Current liabilities

37,711

36,042△4.4％

20,692

9,269△55.2％

7,692

18,695143.0％

31,041

33,247

7.1％

29,86131,318

4.9％

Total liabilities

68,752

69,2900.8％

Net assets

27,13826,635△1.9％

Capital

4,819

4,819

－

Other shareholder equity

22,31821,816△2.2％

Total liabilities and net assets

95,891

95,926

0.0％

Current assets

Real estate held for sale
Real estate for sale under construction

Notes and accounts payable, trade
Debts（short-term borrowings, long-term debt
within one year）
Fixed liabilities
Long-term borrowings

6

Contracts signed units①（ New built-for-sale condominium）
Comparison of contracts signed units

Contracts signed units（units）
2000

1600

1,800
230

1,807

■at the year end of September 30, 2013
Contracts signed394
Number of contracts signedof units scheduled for
翌期以降引渡予定物件
delivery for the next fiscal
契約戸数year

1200

当期引渡予定物件契約
Number of contracts signed
戸数8001,570

1,413

1,800 units■ at the year end of September 30, 2014
Contracts signed

1,807 units

4000

FY March 20142014年3月期（42期）(42nd term)

FY March 2015
2015年3月期（43期）(43rd term)※ as of the end of September※including real estate sales agency services

Number of contracts signed units above thelevel recorded in the previous year7

Contracts signed units②
Changes in the monthly number of contracts signed unitsFY March 20142014年3月期（42期）(42nd term)（units）

FY March 2015
2015年3月期（43期）(43rd term)

190 188

200

175
160

147 161
138 137

141
123

131

142

Number of contracts signed
units during 1st half of the year
■Total Contract signed units from
April to September, 2013

825units

120■Total Contract signed units from
April to September, 2014

85933units

80

40

0
APRIL
4月

5月
MAY

6月
JUNE

7月
JULY

8月
AUGUST

9月
SEPTEMBER※ including real estate sales agency services

The number of contracts signed units inthe first half of the term wassubstantially higher than the level of theprevious term

The level of contracts signed units is substantially higher than that seen in theprevious term, with no impact from the consumption tax hike8

Delivery Results
1st half of FY March 2015 Delivery Results（units）
400

354

Delivery Results

368■new built-for-sale condominiums

300

予算
PlannedPlanned354units

Results

368units（＋14units）

Results
実績200■new built-for-sale detached housing
100

4955

Planned49units

Results

55units（＋6units）

0

New built-for-sale
新築分譲マンション
condominium

New-built-for-sale
新築戸建detached housing

Delivery results above initial plan due to healthy pace of contracts signed9Trends in Sales Prices（ New built-for-sale condominium ）Sales price per unit
(Unit: 10 thousand yen)

Sales price per unit

3,800

3,665

(Unit: 10 thousand yen)

■FY March 2014

3,242 ⇒ 3,411

3,600

3,411
3,400

3,387

仕入時想定売値
Purchase price
販売価格
Sales price

3,242

169 up■1st half of FY March 2015

3,387 ⇒ 3,665

3,200278 up

3,000
2014年3月期（42期）
FY March 2014

(42nd term)

1st2015年3月期（43期）
half of FY March 2015
(43rd term)

Sales prices stronger than recorded in previous year
10Leben Fujimino sola hills

Metropolitan area condominium market trends

11Metropolitan area condominium market trends( first-time buyers)

Elected to host the 2020
Tokyo Olympics and Paralympics

Traffic convenience improving
in suburban areas

Prices surge in the metropolitan area

Zaibatsu conglomerates aggressively
supply properties in the suburbsof the Tokyo area

Exodus of high income clientele from the metropolitan area to the suburbs

Sales prices rising, solid progress in signed contracts
12Leben Kashiwa Crystal I’llTopics for the Six Months Ended
September 30, 201413

Initiatives for 43rd term
Flow businessBusiness for first-time buyers

Business for active seniors

Redevelopment & Rebuilding BusinessBusiness charged with effective
use of land

Stock business
Real estate management business

Real estate rental business

Real estate rental
and management business

Mega-solar businessFee business
Real estate distribution business

Diversifying flow businesses and expanding stockand fee-based businesses
14

Business for first-time buyers
Unit-based Solar-powered Condominium Supply Ranking Nationwide Ranked 1st※Unit-based Solar-powered Condominium Supply Ranking(available in each individual home unit)※Source: Real Estate Economic Institute Co., Ltd.

Leben Wako solarea■626 solar power panels■626枚の太陽光発電パネル■Heating and lighting expenses■光熱費約52％ＯＦＦ
down by around 52％

Leben Platz Kashiwa Bright Hill

■All units installed with a solar powersystem■太陽光発電システム全戸搭載■Heatingand lighting expenses down by■光熱費約55％ＯＦＦ
around 55％

Continuous
supply of properties that utilize natural energy
自然エネルギーを活用した物件を継続供給
15

Business for active seniors ①
Properties in local cities Customer Analysis
Leben Toyama THE PLATINUM
an annual income(Unit: 10 thousand yen)

Leben Toyama THE PLATINUM
Contractor age

20 – 29
years old
9%

Less than 48%More than
10 or Cash
54%

4 to 723%

7 to1015%

Leben Toyama THE PLATINUM（Completed in July, 2014）

30 – 39
years old17%

60 yearsor older35%
50 – 59
years old17%

40 – 49
years old22%

Leben Takasaki Freshia
Contractor age

Leben Takasaki Freshia
an annual income

20 – 29
years old3%
30 – 39
years old
21%

Less than 46%

4 to 723%

More than
10 or Cash
48%
Leben Takasaki Freshia(Completion scheduled in February 2015)

7 to1023%

60 yearsor older21%
50 – 59years old
19%

40 – 49years old
36%

Active seniors are the main target for properties in local cities
16

Business for active seniors ②
Business in central areas of provincial cities
Ushijima-cho,Toyama-shi Project

Odawara, Sendai-shi Project
Address ： Odawara, Miyagino-ku,Sendai-shi

Address ： Ushijima-cho,Toyama-shi
Access ：3-minute walk from Toyama
Station on JR Hokuriku Main Line

Access ：16-minute walk from Sendai
Station on JR Senseki Line

Number of units ：115 units （Planned）

Number of units ：436 units （Planned）

Sakura-machi, Toyama-shi Urban Redevelopment Project

Sakura-machi, Toyama-shi Urban
Redevelopment Project
Address ： Sakura-machi, Toyama-shi
Access ： 3-minute walk from Toyama Station
on JR Hokuriku Main Line
Number of units ：75 units （Planned）※ Residential facilities, commercial facilities andaccommodation facilities

Firsttime

Teppou-machi, Sendai-shi Project

Address ：Teppou-machi, Miyagino-ku
Sendai-shi
Access ：16-minute walk from Sendai
Station on JR Tohoku Main Line

Number of units ：144 units （Planned）

Holds land for projects totaling around 2,800 units
in central areas of provincial cities
17Business for active seniors③
Boosting purchases of properties near stations in the metropolitan area

Overview of properties near the station■ Itabashi-ku Project… 1-minute walk from Shin-itabashi Station on Toei Mita Line.
Number of units /68 units■ Monzennakacho Project … 1-minute walk from Monzennakacho Station on Tokyo-metro Tozai Line.
Number of units /28 units■ Asakusa Project… 4-minute walk from Asakusa Station on Tsukuba-express Line.
Number of units /52 units■ Sagamihara Project… 4-minute walk from OdakyuSagamihara Station on OdakyuOdawara Line.
Number of units /48 units
etc.

Switching to fixed-term rental contract;
to become a business in 3-5 years

Condominiums for active seniors
18

Redevelopment & Rebuilding Business ①
Rebuilding Business for Hachioji-shi Matsugaya Housing Complex

Existing condominiums

Rebuilding Business for Hachioji-shi Matsugaya
Housing Complex Perspective drawing

Age of building

1976(built 38 years ago)

Site area

9,235.57㎡

Number of units

80 units

Number offloors/buildings

5 floors/3 buildings

Rebuilt condominiums（schedule）
Completionschedule2016

Site area

9,235.57㎡

Number of units

259 units

Number offloors/buildings

11 floors/8 floors/5 floors
3 buildings

Property overview■Access ： 18-minute walk from Tama Center Station on Keio Sagamihara Line and Odakyu Line
8-minute walk from Matsugaya Station at Tama Monorail■Address： 17, Matsugaya, Hachioji-shi, Tokyo
19

Redevelopment & Rebuilding Business ②Rebuilding Business for Tachikawa-shi Fujimi-cho Housing Complex

Existing condominiums
Age of building

1967(built 47 years ago)

Completion
schedule

2019

Number of units

876units

Number of units

Have consultation

Current photo

Property overview
Access ： 15-minute by bus from Tachikawa Station on JR Chuo Line
15-minute walk from Nishi-Tachikawa Station on JR Oume LineAddress ： 16 Fujimi-cho, Tachikawa-shi, TokyoRebuilt condominiums[Business objectives]■A town in which various generations can safely
reside in■A town in which an excellent environment has
been recreated■A town that is kind and safe to the elderly■A town that is extremely convenient and onethat can sustain asset value

Has been decided to participate in a rebuilding businessas a business partner20

Business charged with effective use of land
The consolidated subsidiary of Nikko kensetsu

Company overview■ Company Name
Nikko kensetsu Co.,LTD■ Address
Tsuzuki-ku, Yokohama-shi, Kanagawa■ Principal businesses
General construction industry、Real estate industry■Strengthen
information network in the Yokohama area
■横浜エリアにおける情報ネットワークの強化■Expand portfolio of new business, such as a business charged with effective use of■土地の有効活用事業など、新たな事業ポートフォリオの拡充
land■約3,000戸の管理物件を保有⇒ ストックビジネスの強化■Hasaround 3,000 managed properties⇒ Strengthen stock business
Strengthen the Yokohama area and expand business charged

横浜エリアの強化と土地有効活用事業の拡充
with effective use of land
21

Real estate management businessChanges in the management units（units）

Built-for-sale properties
by other companies units
他社分譲

Total management units
全管理戸数

40,00035,86036,93733,030■ Total management units(as of the end of September 2014 )

36,937units

29,25430,000The management units

25,651
23,14720,00019,97916,297
13,4398,807

10,000
3,101
0

5,280

7,406

10,99814,557

15,296■ Number of built-for-saleproperties by other companies
out of the total

15,296units（40％）
Healthy increase also in thenumber of managed built-for-saleproperties by other

Aiming at further increase in the number of managed
properties owned by other companies
22Real estate rental business・ rental management business

Real estate rental business
Promoting the asset replacement■Around 1.7 billion yen in rental income from 20 billion yen in assets■Promoting replacing older properties with new ones

Real estate rental management business
Rental management of one’s own
properties■ Company Name
Takara Property■ Address
2-14-4, Ikebukuro, Toshima-ku,Tokyo■ Principal businesses
Real estate rental management business

Rental management of properties heldby other companies
The consolidated subsidiaryof Nikko kensetsu

Strengthen management of properties held byother companies
23

Mega-solar businessAround 10MW in operation mainly in the Kanto area
■56ＭＷ is Already determined

Ibaraki Prefecture

Aomori Prefecture

・LS Koga Onanuma

・LS Tsugaru Hiranai

・LS Tone・LS Chikusei

Okinawa Prefecture

・LS Tsukuba Bouchi

・LS Miyako-jima Nakasone
Miyagi Prefecture

・LS Miyako-jima Gusukube

・LS Miyagi Oosato

・LS Miyako-jima NishiharaTahara

・LS Miho
・LS Kamisu Hasaki
・LS Mito Takada

Fukushima Prefecture
・LS Fukushima Yamatsuri

・LS Tone Fukawa
・LS Inashiki AranumaⅠ
・LS Inashiki AranumaⅡ

Kagoshima Prefecture

・LS SakuragawaⅠ

・LS Kirishima Kokubu

・LS SakuragawaⅡ

Tochigi Prefecture
・LS Shioya

Chiba Prefecture

・LS Nasu Nakagawa

・LS Chiba Wakaba-ku

・LS Tochigi Fujioka

・LS Sousa

・LS Nasu Shiobara hosodake

・LS SakuragawaⅢ
・LS Hokota Kamigama
・LS Ryugasaki Kousa
・LS Toride Shinkawa
・LS Higashi-Ibaraki

Targeting 100MW in operation in FY March 201924

Real estate distribution business
Consolidated subsidiary Takara Leben Reaｌｎet
Company overview■ Company Name
Takara Leben Realnet■ Address
2-6-1, Nishi-Shinjuku,Shinjuku-ku
Tokyo■ Principal businesses
Real estate distribution business■Strengthen real estate distribution businesses, such as real estate sales,
brokerage and management

Further strengthening of the real estate distribution business25

Leben THE TSUKUBA

Major strategies going forward

26

Major strategies going forward ①
Expand hubs nationwide■Expand the supply area of condominiums for
active seniors to central areas of provincial
cities (reinvigorate regions)■Aiming at supplying 200 units annually per area

【Hokuriku District】
Hokuriku Office【Hokkaido District】
In advance preparation【Tohoku District】
Tohoku Office【Kyusyu・Chugoku District】
In advance preparation【Shikoku District】
In advance preparation

Establish a structure that supplies 1,000 units
per year in provincial cities
27

Major strategies going forward ②

Newly establish an urban renewal section■A specialized unit responsible for rebuilding, redevelopment and other similar businesses■Considering participation in around 20 projects at all times

Rebuilding
建替事業business■Potential rebuilding demand forover 1 million units■Rebuilding done based on 100%consent⇒ Possible with 80% consent

Redevelopmentbusiness■Basic plan for reinvigorating
central areas■Urban Renewal ActScrap & Build■Older properties near stations(Buildings, condominiums, etc.)■The next generation of active
seniors

Aiming at stable supply of around 300 units per year28

Major strategies going forward ③
Aiming to get Mega Solar Fund listed in the new infrastructure market

New infrastructure market (to be established in FY2015)
Planning toget listed

Mega Solar Fund (investment corporation)
AMcontract

Takara Asset Management Co., Ltd.
29

Major strategies going forward ④

Strengthen the Group’s power by clarifying each company’s role30

Leben Kohoku Broad SquareYear Ending March 2015 Dividends, andFinancial Result Forecast for The Year31

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

Year ended
March 31, 2014

Year ending
March 31, 2015
(Forecast)revision to the results
forecast

Net sales

71,96377,05077,1500.1％

Operating profit

9,798

10,30010,5001.9％

Ordinary profit

9,181

9,500

9,7002.1％

Net income

5,869

5,900

6,000

1.7％

YOY change32

Cash Dividends, Preferential treatment

1st half dividends

Year-end dividends

Total

Year ended
March 2014

1.5 Yen

3.5 Yen

5.0 YenYear ending
March 2015
Forecast

2.0 Yen

4.0 Yen

6.0 Yengift certificates for packages of rice
100 shares or more to less than 500 shares

1kg (440yen)

500 shares or more to less than 1,000 shares

3kg (1,320yen)

1,000 shares or more

5kg (2,200yen)

33

On acquisition of treasury stock◆ Type of shares acquired : Common stock of the Company◆ Total number of shares for acquisition : 5,000,000 shares(Upper limit)
Ratio to total number of outstanding shares (Excluding treasury stock) 4.38％◆ Total acquisition value : 1,500,000,000 yen(Upper limit)◆ Acquisition period :From May 13,2014 to March 31,2015◆ Acquisition method :Open market repurchase on the Tokyo Stock Exchange◆ Status of acquisition (Total number of shares acquired as at the end of October) ：1,197,300 shares ／ 428,448,00 yen

34Enquiries Relating to These Materials
Corporate Planning Division
Management Planning Section

E-mail：irinfo@leben.co.jp

These materials were prepared to provide information regarding business performance for the six months ended September 30, 2014 and do notconstitute a solicitation for investment in securities issued by Takara Leben Co., Ltd. These materials were prepared based on data
available as of September 30, 2014. These materials, as well as answers, projections, estimates, and other information provided in thesubsequent question and answer session are based on Takara Leben's best judgment as of the preparation of this material, and do notconstitute a guarantee or promise that anything contained within will be realized or achieved, nor do they provide any guarantees orpromises with regard to the accuracy or completeness of the information. The content of these materials is subject to change without prior notice.