Takara Leben Co., Ltd.
Earnings Results Briefing
for the Six Months Ended
September 30, 2020

November 5, 2020

Security code

8897

© Takara Leben group

Contents

Business Outlook for the Year Ended
March 2021 / Shareholder Return

P.２

Summary of Business Results for the
Six Months Ended September 2020

P.17

Appendix

P.26© Takara Leben group.

1

Business Outlook for the Year Ended
March 2021 / Shareholder Return
Summary of Business Results for the
Six Months Ended September 2020
Appendix© Takara Leben group.

2

Summary of Business Outlook for the Year Ended March 2021
 As it is difficult to properly and reasonably estimate the impact of the spread of the newcoronavirus infection on the Company's financial results, the Company has not yet decided its
financial forecast for the year ended March 2021. However taking into account the gradualresumption of economic activity and the impact of the spread of the new coronavirus infection on
the Company's business activities and results in the first quarter, the Company has announced
forecast based on the information available at the time.

 In the fiscal year ended March 2021, sales and profit are expected to decrease compared to theprevious year.
【Main reasons for the decrease in profit (on a gross profit basis)】・ Decrease in sales of real estate sales business（decrease in the number of new built-for-sale condominium units sold※year ended March 2020:1,913 units
year ended March 2021:1,850 units (excluding JV))
(decrease in sales of liquidation business)

 Approximately
2.3 billion yen

・ Decrease in sales of power generation facilities
in electric power generation business Approximately
2.5 billion yen

・ Decrease in rental income in the real estate rental business(due to sale of real estate) Approximately
0.5 billion yen© Takara Leben group.

3

Effects of the New Coronavirus Infection (New Built-for-Sale Condominium ①)
Impact on the Company
and customer sentiment
 a The impact of the new coronavirus infection is limited,
and the needs of actual demand are strongA【Numberof visitors to model rooms per unit (YOY)】【戸当たり来場者数（前年同月比）】

 Introduction of non-face-to-face methods, such as online
tours

140%
120%

 In April and May, when the state of emergency was
declared, the number of visitors dropped temporarily due
to the closure of model rooms, however the number ofvisitors has been recovering since June

100%
80%

60%
40%

 The number of visitors in August 2020 was a record high20%0%2020.42020年4月

B

2020.52020年5月

2020.62020年6月

2020.72020年7月

2020.82020年8月

2020.92020年9月※Same months in the previous year converted to 100%

【Numberof visitors to residence website (YOY)】【物件サイト訪問者数（前年同月比）】
180%
160%

 The number of visitors to residence website has
increased year-on-year since April

140%

120%
100%

 Due to the increase in telecommuting, customers are not
only looking for residence near stations, but also forresidence in the suburbs of capital area

80%
60%
40%
20%
0%

2020.42020年4月

2020.52020年5月

2020.62020年6月

2020.72020年7月

2020.82020年8月

2020.92020年9月※Same months in the previous year converted to 100%
※Aggregate number of accesses on PCs and smartphones© Takara Leben group.

4Effects of the New Coronavirus Infection (New Built-for-Sale Condominium ②)
 Steady progress in delivery schedule for the current term
 Sales launch delayed due to the impact of the new coronavirus infection in delivery
schedule for the next term
Sales are scheduled to begin in the second half of the year

Contract progress for new builtfor-sale condominium delivery

Delivery schedule for the current term （units）

Delivery schedule for the next term

Units schedule
for delivery

Number ofcontracted
units as of theend of 2Q

Contract
progress ratio

Year ended
March, 2020

1,950
（1,908）1,539（1,507）78.9％（79.0％）

Year ended
March, 2021

1,980
（1,850）1,772（1,645）89.5％（88.9％）

PeriodThe Mid-Term Management Plan

Year ended
March 2020

Sold units
Metropolitan
area ratio※

Units schedule
for delivery

Number ofcontracted
units as of theend of 2Q

Year ended
March, 2020

2,200

506
（486）

Year ended
March, 2021

ー

115
（108）

Period As in the previous year, completion isconcentrated in 4Q
 Approximately 500 completed stock
are expected to be carried over to thenext year

Completion scheduleYear ended
March 2021

1,950units
50.0％

2,200units
50.0％※Figures in parentheses indicate the number ofunits excluding JV and the contract progress ratio

Year ended
March 2020
Sold units© Takara Leben group.

Year ended
March 2021
Completion units

1Q

53units

169units

2Q

617units

581units

3Q

196units

162units

4Q

1,089units

1,470units

Total

1,955units

2,382units

42.7％

55.4％

Metropolitan
area ratio※Metropolitan area：
Capital area, Chubu area and Kinki area

（units）

5Effects of the New Coronavirus Infection (Liquidation/Electric Power Generation)
Liquidation
Market The residential market has been stable In the office and retail market, trading was slightly weak due to the uncertainty in economic activity
caused by the new coronavirus infection
 The hotel market is stagnant

 aContinue to build a portfolio centered on residences Carefully monitor market trends and determine an appropriate time to sell
If it does not reach the expected profit, own the lease for the time being
 Continue to proactively invest in new excellent projects
 Considering in-house hotel operations

Electric power
generation business
Operating generation
capacity (cumulative)
Sold
売却済み

 No impact from the new coronavirus infection
Expanding the scale of generation capacity
while considering renewable energy sources other than solar power

 a

2%
Not
sold
未売却

Under
Not
enough開発中
不足分
development

3%

9%

9%

（MW）
40yen
40円

114

35

57

44

36yen
36円
32yen
32円

Composition ratioof FIT price
FIT価格構成比of secured 206 MW

27yen
27円

Secured 206MW
Mid-term management plan target 250MW

24yen
24円

76%

Year ended March, 2021
© Takara Leben group.

6

Business Outlook for the Year Ended March 2021ーConsolidated Income Statement

Year ended
March 2021
Plan

Year ended
March 2020
ActualYear ended
March 2021
Forecast

168,493

136,800△18.8％

170,000△19.5％

Real estate sales business

129,649

106,300△18.0%

129,950△18.2%

Real estate rental business

5,965

5,500

△7.8%

6,300

△12.7%

Real estate management business

5,046

5,400

7.0%

5,400

ー

Electric power
generation business

Facilities sale

15,9837,550△52.8%

17,000△55.6%

Electricity sale

4,999

5,450

9.0%

4,200

29.8%

6,850

6,600

△3.6%

7,150

△7.7%

Cost of sales

137,977

111,900△18.9%

135,500△17.4%

Gross profit

30,516

24,900△18.4%

34,500△27.8%

Selling, general andadministrative expenses

18,61418,9001.5%

20,000△5.5%

Operating income

11,9016,000△49.6%

14,500△58.6%

Ordinary income

11,2015,000△55.4%

13,000△61.5%Net income attributableto owners of parent

5,361

3,400

△36.6%

9,000△62.2%（Million yen）

Net sales

Other businesses© Takara Leben group.

YoYchangevs. Plan
Change7

Business OutlookーNet Sales and Gross Profit by Segment①

Year ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

129,649

106,300△18.0%

129,950△18.2%

Gross profit

22,61920,300△10.3%

25,750△21.2%

New built-for-salecondominium

Net sales

77,17174,000△4.1%

84,500△12.4%

Gross profit

15,65015,000△4.2%

18,600△19.4%New detachedhouse

Net sales

7,808

5,900

△24.4%

14,850△60.3%

Gross profit

720

500

△30.6%

1,950△74.4%Net sales

3,431

4,200

22.4%

3,400

23.5%

Gross profit

421

700

66.1%

400

75.0%

Net sales

37,85420,000△47.2%

24,000△16.7%

Gross profit

4,828

4,000

△17.2%

4,400

△9.1%

Net sales

3,382

2,200

△35.0%

3,200△31.3%

Gross profit

997

100

△90.0%

400△75.0%（Million yen）

Real estate
sales business

Renewal resale

Liquidation
Others© Takara Leben group.

YoYchangeYear ended
March 2021
Plan

vs. Plan
Change8

Business OutlookーNet Sales and Gross Profit by Segment②（Million yen）

Year ended
March 2020
ActualYear ended
March 2021
Forecast

YoYchangeYear ended
March 2021
Plan

vs. Plan
ChangeReal estate rental
business

Net sales

5,965

5,500

△7.8%

6,300

△12.7%

Gross profit

1,589

1,100

△30.8%

1,575△30.2%

Real estate
managementbusiness

Net sales

5,046

5,400

7.0%

5,400

ー

Gross profit

576

600

4.1%

700

△14.3%

Electric power
generation business(Facilities sale)

Net sales

15,9837,550△52.8%

17,000△55.6%

Gross profit

3,020

540

△82.1%

2,700△80.0%

Electric power
generation business(Electricity sale)

Net sales

4,999

5,450

9.0%

4,200

29.8%

Gross profit

116

60

△48.6%

210△71.4%Net sales

6,850

6,600

△3.6%

7,150

△7.7%

Gross profit

2,593

2,300

△11.3%

3,565△35.5%Net sales

168,493

136,800△18.8%

170,000△19.5%

Gross profit

30,516

24,900△18.4%

34,500△27.8%

Other businesses
Total© Takara Leben group.

9Business OutlookーReal Estate Sales Business : New Built-for-Sale Condominium The number of units sold decreased due to the impact of the new coronavirus infectionA Gross profit margin is expected to be flat year on year
Year ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

77,17174,000△4.1％

84,500△12.4％

Gross profit

15,65015,000△4.2%

18,600△19.4%

Gross profit
margin20.3％（20.2％）

20.3%

ー

22.0%

△1.7P

Sold units
Excluding JV

1,955units
1,913units

1,980units
1,850units（Million yen）

Year ended
March 2021
Plan

YoY
changevs. Plan
ChangeB

25units△63units

2,200units△220units※( ):Except the impact of lower of costor market value method

Metropolitan area ratio

4%3%

42.7％ 2%

7%

3%

Metropolitan area

5%

48.4％

C

Capital area
Chubu

13%
24%

Year ended
March, 2020

35%

Year ended
March, 2021

30%

13%

7%

25%

Hokkaido
Tohoku

4%
7%

Kinki

Kanto-Koshinetsu
Hokuriku
Chugoku

14%

LEBEN NAGANO
A THE MID TOWER
129units
LEBEN MORIOKA
B CHUO-DORI THE BIRTH
96units

Shikoku
Kyushu4%

C NEBEL OSAKA UEHOMMACHI
98units※Metropolitan area：Capital area, Chubu and Kinki© Takara Leben group.

10Business OutlookーReal Estate Sales Business : Detached House/Renewal Resale
Detached house Expected to decrease due to the narrowing of the coverage area

Year ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

7,808

5,900

△24.4%

14,850△60.3%

Gross profit

720

500

△30.6%

1,950△74.4%

Gross profit
margin

9.2％

8.5%

△0.7P

13.1％

△4.6P

154units

126units△28units

270units△144units（Million yen）

Sold units

Renewal resale

YoYchangeYear ended
March 2021
Plan

vs. Plan
Change Contribution from resale properties purchased in the previous year
Year ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

3,431

4,200

22.4%

3,400

23.5%

Gross profit

421

700

66.1%

400

75.0%

Gross profit
margin

12.3％

16.7%

4.4P

11.8％

4.9P

Purchased
units

271units

110units△161units

300units△190units

Owned unitsof end of FY

386units

371units△15units

500units△129units※From sale（Million yen）

LEBEN PLATZ
NERIMAMINAMIOIZUMILa Lucie

YoYchangeYear ended
March 2021
Plan

© Takara Leben group.

vs. Plan
ChangeLEBEN PLATZ SHINKEMIGAWA
SKY BRIGHT

11

Business OutlookーReal Estate Sales Business : Liquidation
 Plan to invest at the same level as the previous year in accordance with the new investment policy Newly developed properties are expected to contribute to higher gross profit margin
Year ended
March 2021
Plan

Year ended
March 2020
ActualYear ended
March 2021
Forecast

Investment
amount30,20030,000△0.7％

30,000ーSalesamount

37,85420,000△47.2％

24,000△16.7％

Gross profit

4,828

4,000

△17.2%

4,400

△9.1%

Gross profit
margin12.8％（15.4％）

20.0%

7.2P
（4.6P）

18.3%

1.7P

（Million yen）

YoY
changevs. Plan
Change※( ):Except the impact of lower of costor market value method

B
A

L.Biz SUIDOBASHI【Office】

A
B

Hermitage Namba Minami V【Residence】© Takara Leben group.

12Business OutlookーReal Estate Rental Business/Real Estate Management Business
Real estate rental business Slight decrease in revenue is expected due to progress in the liquidation businessYear ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

5,965

5,500

△7.8%

6,300

△12.7%

Gross profit
margin

26.7％

20.0%

△6.7P

25.0％

△5.0P

（Million yen）

YoY
changeYear ended
March 2021
Plan

vs. Plan
ChangeReal estate management business Steady growth in the number of managed units
Year ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

5,046

5,400

7.0%

5,400

ー

Gross profit
margin

11.4％

11.1%

△0.3P

13.0％

△1.9P

Number ofmanaged units

59,747units

64,200units

4,453units

61,900units

2,300units

Percentage of
non-group
units managed

49.5％

50.0％

0.5P

49.3％

0.7P

（Million yen）

YoY
change© Takara Leben group.

Year ended
March 2021
Plan

vs. Plan
Change13

Business OutlookーElectric Power Generation Business Decrease in the number of power generation facilities available for saleYear ended
March 2020
ActualYear ended
March 2021
Forecast

Net sales

15,9837,550△52.8%

17,000△55.6%

Gross profit

3,020

540

△82.1%

2,700△80.0%

Gross profit
margin

18.9％

7.2%

△11.7P

15.9％

△8.7P

Net sales

4,999

5,450

9.0%

4,200

29.8%

Gross profit

116

60

△48.6%

210△71.4%

Gross profit
margin

2.3％

1.1%

△1.2P

5.0％

△3.9P

Purchased generation capacity(including under development)

57MW

62MW

5MW

50MW

12MW

Operating generation capacity (cumulative)

125MW

197MW

72MW

250MW

△53MW

（Million yen）

Facilities saleElectricity sale

YoYchangeYear ended
March 2021
Plan

vs. Plan
ChangeOperational power generation facilities

LS MIYAGI MATSUSHIMA
power generation facility

LS FUKUSHIMA KAGAMIISHI 1
power generation facility

Generation capacity：14.25MW
FIT price：24yen

Generation capacity：1.42MW
FIT price：27yen© Takara Leben group.

14

Business OutlookーOther Businesses/Management Index
Other businesses

 Forecast to be about the same as the previous year
Year ended
March 2020
ActualYear ended
March 2021
Forecast

6,850

6,600

△3.6%

7,150

△7.7%

Sale and brokerage fees

760

500

△34.2%

1,200△58.3%

Managementcompensation

994

830

△16.5%

1,000△17.0%

Revenue from repair
work

1,429

1,640

14.7%

2,000

△18.0%

Revenue fromconstruction work

2,652

2,610

△1.6%

2,600

0.4%

Others

1,012

1,020

0.7%

350

191.4%（Million yen）

Net sales

Management index

YoYchangeYear ended
March 2021
Plan

vs. Plan
Change Aiming to achieve the management index in the mid-term management plan
Mid-Term Management Plan
Year Ended March 2019 to Year Ended March 2021
Equity ratio（％）

30％（Fiscal year ended March 2021）

LTV（％）

less than 60％（Every fiscal year ended March）

D／E ratio（Times）
ROE（％）

less than 3 times（Every fiscal year ended March）

15％（Every fiscal year）© Takara Leben group.

15

Shareholder Return
Changes in dividends
 Maintain the payout ratio of 25% to 30%, as set out in the mid-term management plan Strive to secure the internal reserves necessary for business development and to strengthen the management base Dividends are planned to be reduced, however the payout ratio will remain at the same level as the previous year

Payout ratio（Yen）25～30％
19

20

15

16

16

15

12
13

Year-end
期末配当金
dividend

11

11

5

5

5

6

2017.32017年3月期

2018.32018年3月期

2019.32019年3月期

2020.32020年3月期

2021.32021年3月期（Actual）（実績）（Actual）（実績）（Actual）（実績）（Actual）（実績）（Forecast）（予想）

Payout ratio（％）

26.7

23.5

27.0

38.4

38.3

Net income
per share（yen）

56.14

68.12

59.33

49.45

31.36

10

Interim
中間配当金
dividend

10

8

5

4

0

© Takara Leben group.

16

Business Outlook for the Year Ended
March 2021 / Shareholder Return
Summary of Business Results for the
Six Months Ended September 2020
Appendix© Takara Leben group.

17

Business Results for 2Q of March 2021ーSummary Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥51,581 million, down 11.1% on a year-on-year basis. Operating income amounted
to ¥1,853 million, down 52.2% on a year-on-year basis. Ordinary income amounted to ¥1,620
million, down 52.5% on a year-on-year basis. Net income attributable to owners of parent
amounted to ¥893 million, down 60.5% on a year-on-year basis.

 In new built-for-sale condominium business, as of the end of the second quarter, the contract
progress ratio was 89.5% of the 1,980 units (1,850 units excluding JV) planned for the year,
making steady progress.

© Takara Leben group.

18

Business Results for 2Q of March 2021ーConsolidated Income Statement

Six Months
Ended
September 2019
ActualSix Months
Ended
September 2020
Actual

57,99851,581△11.1％

136,800

37.7％

Real estate sales business

46,10240,190△12.8％

106,300

37.8%

Real estate rental business

2,886

2,815

△2.5％

5,500

51.2%

Real estate management business

2,468

2,720

10.2％

5,400

50.4%

Facilities sale

383

ー

ー

7,550

ー

Electricity sale

2,928

2,903

△0.8％

5,450

53.3%

3,230

2,951

△8.6％

6,600

44.7%

Cost of sales

45,507

41,200△9.5％

111,900

36.8%

Gross profit

12,49010,380△16.9％

24,90041.7%

Selling, general andadministrative expenses

8,611

8,527

△1.0％

18,90045.1%

Operating income

3,879

1,853

△52.2％

6,000

30.9%

Ordinary income

3,414

1,620

△52.5％

5,000

32.4%

Net income attributableto owners of parent

2,260

893

△60.5％

3,400

26.3%

（Million yen）

Net sales

Electric power
generation business
Other businesses© Takara Leben group.

Year ended
March, 2021
Forecast

YOYchangeProgressratio

19

Business Results for 2Q of March 2021ーNet Sales and Gross Profit by Segment①
 In new built-for-sale condominium business, delivery of high gross profit margin condominiums
 Sale of liquidation business down

Six Months
Ended
September 2019
ActualSix Months
Ended
September 2020
ActualNet sales

46,10240,190△12.8%

106,300

37.8%

Gross profit

9,872

8,678

△12.1%

20,30042.8%

Net sales

24,874

26,1485.1%

74,00035.3%

Gross profit

5,780

6,490

12.3%

15,00043.3%

Sold units

670units

667units△3units

1,980units

33.7%

Net sales

2,092

2,268

8.4%

5,900

38.4%

Gross profit

161

203

26.2%

500

40.8%

Sold units

39units

48units

9units126units

38.1%

Net sales

1,578

1,920

21.6%

4,200

45.7%

Gross profit

233

293

25.9%

700

41.9%

Sold units

47units

67units

20units

125units

53.6%

Net sales

16,4915,360△67.5%

20,00026.8%

Gross profit

3,044

1,355

△55.5%

4,000

33.9%

Net sales

1,065

4,493

321.8%

2,200

204.2%

Gross profit

653

334

△48.8%

100

334.8%（Million yen）

Real estate
sales businessNew built-for-salecondominium

New detachedhouse

Renewal resale

Liquidation
Others© Takara Leben group.

YOYchangeYear ended
March, 2021
Forecast

Progressratio

20

Business Results for 2Q of March 2021ーNet Sales and Gross Profit by Segment②
 Decline in profits from electricity sales due to insufficient solar radiation（Million yen）

Six Months
Ended
September 2019
ActualSix Months
Ended
September 2020
ActualYear ended
March, 2021
Forecast

YOYchangeProgressratio

Real estate rental
business

Net sales

2,886

2,815

△2.5%

5,500

51.2%

Gross profit

753

575

△23.5%

1,100

52.4%

Real estate
managementbusiness

Net sales

2,468

2,720

10.2%

5,400

50.4%

Gross profit

257

264

2.4%

600

44.0%

Electric power
generation business(Facilities sale)

Net sales

383

ー

ー

7,550

ー

Gross profit

172

ー

ー

540

ー

Electric power
generation business(Electricity sale)

Net sales

2,928

2,903

△0.8%

5,450

53.3%

Gross profit

139

△189

△236.0%60△316.1%

Net sales

3,230

2,951

△8.6%

6,600

44.7%

Gross profit

1,294

1,051

△18.8%

2,300

45.7%

Net sales

57,99851,581△11.1%

136,800

37.7%

Gross profit

12,49010,380△16.9%

24,90041.7%

Other businesses
Total© Takara Leben group.

21

Business Results for 2Q of March 2021ーSelling, General and Administrative Expenses
 Selling, general and administrative expenses remained at the same level as the same period of the previous year

Six Months
Ended
September 2019
ActualSix Months
Ended
September 2020
ActualSelling, general andadministrative expenses

8,611

8,527

△1.0%

Public relations fee

525

320

△39.0%

2,889

2,783

△3.7%

2,699

2,662

△1.4%

189

121

△36.3%

Personnel expenses

2,917

2,985

2.3%

Others

2,279

2,438

7.0%

（Million yen）

Sales expenses
Advertising expenses（Property sales）
Sales commission（Liquidation）© Takara Leben group.

YOYchange22

Business Results for 2Q of March 2021ーConsolidated Balance Sheet
As of the end of
March 2020

As of the end of
September 2020

195,448

207,947

6.4％

115,314130,484

13.2％

Cash and deposits

35,311

27,879△21.0％

Inventories

69,96490,64129.6％※123,86132,353

35.6％

Real estate for sale in progress ※ 2

46,102

52,954

14.9％

ー

5,334

ー

79,874

77,254△3.3％

144,309

157,060

8.8％

65,61665,013△0.9％

Notes and accounts payable-trade

11,85810,066△15.1％

Short-term and current portion of
long-term borrowings

39,26843,316

10.3％

296

296

ー

78,692

92,04717.0％

Long-term borrowings

69,656

82,343

18.2％

Bonds payable

4,804

5,506

14.6％

51,13950,886

△0.5％

4,819

4,819

ー

195,448

207,947

6.4％（Million yen）

AssetsCurrent assets

Real estate for sale

Power generation facility for sale
Fixed assets
Liabilities
Current liabilities

Current portion of bonds
Fixed liabilities

Net assets
Capital stock
Total liabilities and net assets© Takara Leben group.

YoYchange※ １ Increase in liquidation
business assets※ ２ Increase due to progressin land purchases

23

Business Results for 2Q of March 2021ーConsolidated Balance Sheet (Details)
Real estate for sale

Borrowings and bonds

0%

14%

Total assets (207,947 M) (as of the end of September 2020)21%

新築分譲ＭＳ
戸建・・・

39%

3%

23%

Real estate for salein progress

0%

6%

2%

3%

89%
New built-for-salecondominium
Renewal resale

New detachedhouse
Liquidation

Power generation facility

OthersProperty, plantand equipment

130,484 Liabilities

157,060

Cash and deposits

27,879

Short-term borrowings, etc.

43,316Inventories

90,641

Current portion of bonds

New built-for-sale condominium

54,992Long-term borrowings

82,343New detached house

3,038

Bonds payable

5,506

Renewal resale

8,638

Liquidation

17,581

Power generation facility

5,334

Others

1,056

Fixed assets

77,254Current assets

New built-for-salecondominium

New detachedhouse

Renewal resale

Liquidation

Power generation
facility
Not Linked to
The Above Assets

Others

296

1%

10%
32%

18%

2%

32%
5%

Property, plant and equipment

64,110Intangible assets

1,641

Investments and other assets

11,502 Net assets

50,88650,317

Shareholders' equity

Liquidation

Subscription rights to shares

199

Residence

OfficeNon-controlling interests

235

Hotel

Retail（Million yen）

4%

12%
35%
23%

28%
68%

30%

© Takara Leben group.

24

Business Results for 2Q of March 2021ーAssets, Borrowings and Bonds by Segment

Real estate
for sale

Real estate
for sale inprogress

Property,plant andequipment

Assets total

Borrowings
and bonds

37,687

52,954

64,110154,752

131,462

New built-for-salecondominium

7,940

47,051－

54,99242,757

New detached house

1,106

1,931

－

3,038

2,556

Renewal resale

8,633

4

－

8,638

6,926

Liquidation

14,544

3,036

43,72861,31041,813

Power generation
facility

5,334－

18,18923,52323,423

127

929

2,192

3,249

936

－

－

－

－

（Million yen）

Total

OthersBorrowings and bonds
not linked to the above assets

13,048 ※※ Including bonds payableof 5,802 million yen© Takara Leben group.

25

Business Outlook for the Year Ended
March 2021 / Shareholder Return
Summary of Business Results for the
Six Months Ended September 2020
Appendix© Takara Leben group.

26

Promotion of ESG Initiatives①
 After formulating CSR basic policy and establishing CSR Promotion Team in 2018, the entire group promoted CSR activities【CSR basic policy】
The Takara Leben Group will achieve its corporate vision of “THINK HAPPINESS AND MAKE THE HAPPINESS” whileworking to earn the trust of various stakeholders and society. We will contribute to solutions to social issues andachieving SDGs (Sustainable Development Goals) by undertaking CSR initiatives through our business including
supplying housing and introducing natural energy as we strive for continuous growth.

【CSR Promotion Framework】
To link CSR activities to the improvement of corporate value for all Group companies, we are building a promotion
framework which spans across all companies. We are also building a vertical promotion framework unifying
management with business activities by making decisions and reporting at our Executive Committee meetings asappropriate.

Takara Leben
Group CSR Staff

CSR Promotion
Team・Execution ofpolicies and progress
management

Executive in
Charge of CSR・Formulation of direction; proposalof measures; implementation andawareness-raising of measures;progress management

Executive
Committee

Representative
Director

Twice each month
Attendance of
directors, auditorsand executive
officers
・Decisions on measures;confirmation of progress【Key CSR themes】

Adopting ESG concerns as one of the basic policies of the mid-term management plan, and promoting solutions to social
issues through our business based on four important themes

Creating Lifestyles with Value

Forming Communities

Providing Comfortable
Spaces of High Quality

Developing Environments
and Cultures© Takara Leben group.

27

Promotion of ESG Initiatives② Recent Initiatives
 Signed the UN Global Compact
Signed the UN Global Compact in August 2020. We
support the ten principles of the UN Global
Compact, which consists of the four areas of“human rights”, “labor”, “the environment” and“anti-corruption” and through the Group Vision of“THINK HAPPINESS AND MAKE THE HAPPINESS”,
we aim to build a sustainable society.

 「FY2020 Sustainable Building Initiative Project（Next-Generation
Housing Type）」 Project selected
Nikko Takara Corporation, a subsidiary of the Company, has been selected by
the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) as the firstproject selected for the "FY2020 Sustainable Building Initiative Project (NextGeneration Housing Type)" in August 2020.
From the perspective of childcare support, intend to reduce the burden ofhousework and save time by making the home IOT with home appliances andintroducing the communication robot “BOCCOemo”. Proposing a living spacethat enriches lives.

【The communication robot “BOCCOemo”】

 Expected benefits
・Improving the natural rhythm of life with notifications at set times
・Reducing anxiety for children at home and parents on the go by functions
・Prompting children‘s interest in helping and other activities and the growth of
spontaneity etc.

 MLIT leading project 「Sustainable Building Initiative Project（Next-Generation Housing Type）」
Based on the social conditions such as the increase in the number of single-person households, the declining birthrate and aging
population, and the shortage of human resources in the nursing care sector, this project provides support for leading housing andbuilding projects that use IoT and other technologies to improve the quality of housing and living, and that contribute to the creationand expansion of new housing and building-related business markets【Business company】

Focusing on the detached house sales business, we propose the "ideal home ofhigh quality" that our customers seek at “a price that makes them feel moresecure in their purchase”, taking advantage of our integrated system of in-housedevelopment and construction© Takara Leben group.

28Redevelopment Projects
 Participation in 「THREE」, an excellent building development project in
the Shinmachi 1-chome area of Aomori City
Takara Leben Tohoku, a subsidiary of the Company, has decided to participate in 「THREE」, an
excellent building development project in the Shinmachi 1-chome area of Aomori City (theformer site of the Nakasan Department Aomori main store) promoted by Shinmachi Machi ZukuriCo., Ltd. and MiK Co., Ltd. 「THREE」 is a 14 floors tower residence that combines the three key
elements of “clothing/ medical care”, “food” and “housing”. There are commercial facilities on
the 1st to 4th floors and 86 residential units on the 5th floor and above. The Group company will
acquire their reserved residential floors and take on the housing subdivision business.
Construction is scheduled to be completed in 2022, with the grand opening scheduled for thefollowing spring.

 Architecture and facility overview（plans）
Facility name：THREE
Address：1-7-1 Shinmachi, Aomori City, Aomori Prefecture
Main application：Stores, condominiums and parking lots
Proprietor of the business：Shinmachi Machi Zukuri Co., Ltd.
Developer of the business： MiK Co., Ltd.
Condominium developer of the business：Takara Leben Tohoku Co., Ltd.
Design：Kanno Hiroshi Architect Office Co., Ltd. and Kudo Mahito Architect Office Co., Ltd. ‘sdesign collaboration（Main building）
Commercial facilities

Parking lot building（Main building）
Condominiums

Lot size

3,119.80㎡

1,902.80㎡

Total floor size

9,407.68㎡

7,301.61㎡

Residence・
Common use
7,477.30㎡

Number offloors

1st to 4th floors

5 floors

5th to 14th floors

Floor
composition,etc.

1st to 3rd floors
Retail and restaurant floor
4th floor
Medical and health floor

1st floor
Food market
1st to 5th floors
226 car parking spaces

Number of units
to be sold
86 units© Takara Leben group.

※Appearance image

 Condominium business company

Condominium sales business in six prefecturesin the Tohoku region
No. 1 condominium supply in the Tohoku areain fiscal 2019 for the fourth time29Consolidated Balance Sheet (Changes)
As of the endof March 2019

As of the endof March 2020

As of the endof September
2020

59,234

57,10661,310Residence

20,822

16,386

21,382

1,106

Office11,295

19,43818,082

8,871

8,633

Hotel

19,463

14,293

14,385

5,510

7,538

14,544Retail

7,653

6,988

7,460

Power generation
facility

ー

ー

5,334

Others

10

37

127

49,86046,102

52,954

Borrowings and bonds

111,657

114,025

131,462

44,37941,39947,051

New built-for-salecondominium

41,58836,65742,757

2,560

1,133

1,931

New detached house

4,667

2,237

2,556

362

28

4

Renewal resale

3,055

6,857

6,926

1,587

2,893

3,036

Liquidation

38,947

38,131

41,813ーーーPower generation
facility

18,54618,99523,423

970

647

929

ー

418

936

Property, plant andequipment

75,224

67,22064,1104,851

10,727

13,048Liquidation

52,137

46,67443,728

Power generation
facility

20,853

18,63018,189

2,233

1,914

2,192

As of the endof March 2019

As of the endof March 2020

As of the endof September
2020

18,821

23,861

37,687

New built-for-salecondominium

5,727

4,673

7,940

New detached house

2,579

2,740

Renewal resale

4,993

Liquidation（Million yen）
Real estate for sale

Real estate for sale inprogress
New built-for-salecondominium
New detached house

Renewal resale
Liquidation
Power generation
facility
OthersOthers（Million yen）
Liquidation

OthersBorrowings andbonds
not linked to theabove assets© Takara Leben group.

30

Land Bank ・ Supply Area
Supply area

Land bank Advanced to 34 prefectures

Total in Japan 6,803units

2.9%
2.0%

 New purchase in Okayama prefecture

4.8%

4.7%
36.2%

10.7%

19.1%

9.8%

5.8%

4.1%
Metropolitan area ratio 51.7％
Capital首都圏area

Chubu
中部

Kinki
近畿

Hokkaido
北海道

Tohoku東北

Kanto-Koshinetsu
関東甲信越

Hokuriku
北陸

Chugoku
中国

Shikoku
四国

BaseKyushu九州

Supplied andpurchased area

※Metropolitan area：Capital area, Chubu and Kinki© Takara Leben group.

New purchase area31

Liquidation：Assets Size
Liquidation：Assets Size
Existing and built-up property （Million yen）

Under development property （Million yen）

Book value as of the endof September 2020
5,673
16,305
9,077

Residence
レジデンス

10,274

1,859

Residence
レジデンス

6,432

Officeオフィス

41,447M

Book value after completion

Book value as of the endof September 2020
5,076
1,786

31,259M

19,862M

Hotel
ホテル

5,307

Retail
商業店舗

Office
オフィス
Hotel
ホテル
Retail
商業店舗

7,692

10,39012,693※Including securitized assets recorded in real estate held for sale

Asset amount after completion （Million yen）
2021年3月末

As of the endof March 2021

22,366

As of the endof March 2022

23,9772022年3月末

After the end

2023年3月末以降
of March 2023

26,580Residence
レジデンス

18,082

Office
オフィス

Hotel
ホテル

14,385

19,677

14,38523,083Retail
商業店舗

7,533

62,367M

7,533
15,51065,573M
7,533

72,706M

Secured assets of 72,706 million yen including completed parts in the future© Takara Leben group.

32

Amount of Asset Management◆Operating infrastructure fund, REIT and private fundInfrastructure
インフラ
fund

As of the end

2017年3月末
of March 2017

8.3B

As of the endof March 20182018年3月末

As of the endof March 20192019年3月末

REIT
REIT

Private
私募 fund

Total

23B
27.9B

8.3 billion yen
Total

23 billion yen

64.8B

5.2B

As of the end
2020年3月末

42.5B

87B

As of the end
2020年9月末
of September 2020

42.5B

87B

of March 2020

Medium-term target

100B

Total

19B

98 billion yen
Total

33.5B

148.6 billion yen
Total

150B

Target of medium-term
operating amount

163.1 billion yen

50B

Total 300 billion yen※Acquisition price basis© Takara Leben group.

33

The Takara Leben Group’s Corporate Philosophy and Vision
Takara Leben Co., Ltd.
Leben Community Co., Ltd.

Takara Leben Tohoku Co., Ltd.
Nikko Takara Corporation Co., Ltd.

Takara Leben West Japan Co., Ltd.

Leben Zestock Co., Ltd.

Takara Leben Realnet Co., Ltd.
Leben Trust Co., Ltd.

Takara Asset Management Co., Ltd.

Takara PAG Real Estate Advisory Ltd.

Sunwood Corporation

Corporate philosophy

Corporate vision

THINK HAPPINESS AND MAKE THE HAPPINESSCreating Together

We are most committed to giving thought to the happiness ofpeople and lifestyles, and to realize housing which gives shapeto each and every dream.

With a Rich Heart
Creating together new value for themarket by cherishing our customers
with a rich heart.

We think on the happiness of communities and society, andcontribute to the development of towns where all people can liveat ease.

With Sincerity
Creating together, safety and peace forpeople and society
with sincerity toward partners.

We are most positive in a happy future, and propose theeco-friendly creation of a sustainable environment.

Think happiness and make the happiness.
This is what we, the Takara Leben Group, do.

With Power to Act
Creating together perpetual growth into
the future,with power to act demonstrated by eachand every employee.

© Takara Leben group.

34

These materials were prepared based on data current as of
September 30, 2020.
The plans, projections and so on contained in these materials are
based on Takara Leben’s best judgment at the time the materials
were prepared, and do not constitute a guarantee or promise thatanything contained herein will be realized or achieved, nor do they
provide any guarantees or promises as to the accuracy orcompleteness of the information contained herein. The contentsof these materials are subject to change without notice.

Contact for Inquiries

TEL+81-3-6551-2130

Takara Leben Co., Ltd.

FAX

+81-3-6551-2139

Office of the President

E-mailir.info@leben.co.jp