Third Quarter Consolidated Financial Reportfor the Nine Months Ended December 31, 2012 (Japan GAAP)
January 28, 2013

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Yoshio Murayama, President and Representative Director, CEOToshiya Kitagawa, Director, Executive Officer and Marketing Planning Office Manager
Tel: +81-3-5324-8720

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 12, 2013
-NoNo

1. Consolidated Operating Results for the Nine Months Ended December 31, 2012
(April 1- December 31, 2012)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Nine months ended December 31, 2012

55,003

75.9

5,984

128.9

5,597

182.2

3,837120.5

Nine months ended December 31, 2011

31,26817.82,614(8.3)

1,983

6.7

1,740

(0.6)

(Note) Comprehensive income: Nine months ended December 31, 2012: ¥3,834 million (120.3%) / Nine months ended December 31,
2011: ¥1,741 million ((0.5%))
Net Income perShare

Diluted Net Income
per Share

Yen
Nine months ended December 31, 2012

126.10Nine months ended December 31, 2011

54.71

Yen
125.98-(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of December 31, 2012

70,60323,93233.9

As of March 31, 2012

70,277

21,13830.1<Reference> Shareholders’ equity at end of period: December 31, 2012: ¥23,915 million / March 31, 2012: ¥21,138 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ended March 31, 2012-

Year Ending March 31, 2013

-3Q
Yen

Year Ending March 31, 2013 (Forecast)Year-End
Yen

Total

Yen

Yen

4.00

-

9.00

13.00

5.00

-

10.00

15.00

(Note) Has the Company changed its dividend forecast for the current quarter: No(Note) Year-end dividends per share for the year ended March 31, 2012 include ordinary dividend of ¥7.00 and commemorative
dividend of ¥2.00.

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 201 3(April 1, 2012-March 31, 2013)(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

63,950

15.9

7,000

18.0

6,100

20.3

3,800

3.2

122.84(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) : Yes
Newly consolidated companies (1) Takara Property Co., Ltd.,
Newly excluded companies (--)(For details please refer to [Attachments] Page 3 “Summary Information (Notes)”)(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: Yes
B. Changes in accounting policies other than those in (1): No
C. Changes in accounting estimates: Yes
D. Restatement: No(Note) These are subject to Article 10-5 of the Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Financial Statements. For more detailed information, refer to "2. Summary Information (Notes) (3)Changes in accounting policies and estimates, or retrospective restatements" on page 3.

(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.

As of December 31, 2012:

33,386,070 shares

As of March 31, 2012: 33,386,070 sharesb.

As of December 31, 2012:

3,470,271 shares

As of March 31, 2012:c.

Nine months ended December 31, 2012:

2,451,871 shares

30,434,590 shares Nine months ended December 31, 2011: 31,812,885 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the FinancialInstruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements 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 arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

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. Summary Information (Notes) ................................................................................................................................. 3(1) Changes to Material Subsidiaries during the Third-Quarter Year-to-Date Period .............................................. 3(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 3
3. Quarterly Consolidated Financial Statements .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 4(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 6
Quarterly Consolidated Statements of Income
Third -Quarter Year-to-Date Period ................................................................................................................. 6
Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period ................................................................................................................. 7(3) Notes Pertaining to the Going Concern Assumption .......................................................................................... 8(4) Notes on Significant Changes to Shareholders’ Equity ...................................................................................... 8-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

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 2013, sales
from the real estate sales business amounted to ¥50,825 million, up 84.2% on a year-on-year basis. This reflectedsales in the new built-for-sale condominium business, as well as sales in the newly-built detached housingbusiness.
In the real estate rental business, sales totaled ¥1,083million, up 1.6% on a year-on-year basis. This reflected
rental revenue from condominiums for rent and from office and store space leasing.
In the real estate management business, sales from the management of 32,325 units of residential
condominiums were ¥1,919 million, up 13.4% on a year-on-year basis.
Sales from other businesses amounted to ¥1,174 million, up 29.0% on a year-on-year basis, mainly attributable
to commissions from real estate agency services and revenues from orders for repair work.
As a result, Net sales for the third-quarter year-to-date period of the current consolidated fiscal year amounted
to ¥55,003 million, up 75.9% on a year-on-year basis; Operating income amounted to ¥5,984 million, up 128.9%
on a year-on-year basis; Ordinary income amounted to ¥5,597 million, up 182.2% on a year-on-year basis; andNet income amounted to ¥3,837 million, up 120.5% on a year-on-year basis.
b. Overview
The built-for-sale condominium business delivered 1,473 units including Leben Revale Yokohama
Tsurugamine Hills, Japan’s first ‘solar-powered condominiums with individual storage batteries that allow
individual units to sell surplus energy’.
Sales for the real estate rental business and the real estate management business also remain steady, with aconsolidated sales ratio of 86.0% for the third quarter under review versus estimated full-year consolidated sales,
and 101.0% versus estimated full-year consolidated net income.
c. 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 1,673 units, compared with a full-year target of 1,630 units scheduled for delivery.
The contract ratio exceeded 100%.
(Contracts signed versus number of units forecast for delivery)
Units scheduled for
Number ofContracted ratiodeliverycontracts signed(%)(units)(units)Year Ending March 31,
2013
Year Ending March 31,
2014

Contracted ratio(same period of theprevious year) (%)

1,630

1,673

102.6

92.4

1,710

576

33.7

40.2

(2) Qualitative Information Pertaining to Consolidated Financial Positiona. 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 ¥70,603 million, an increase of ¥325 million compared with theend of the previous consolidated fiscal year. The increase mainly reflected an increase in cash and deposits inconjunction with delivering new build-for-sale condominium units.

-2-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

(Current Assets)
Current assets increased ¥873 million compared with the end of the previous consolidated fiscal year to¥51,792 million. This mainly reflected an increase in cash and deposits as a result of delivering newbuild-for-sale condominium units.
(Fixed Assets)
Fixed assets decreased ¥547 million compared with the end of the previous consolidated fiscal year to ¥18,810
million, mainly due to the business assets were sold.
(Current Liabilities)
Current liabilities decreased ¥8,242 million compared with the end of the previous consolidated fiscal year to¥29,130 million, mainly due to factors including the inclusion of the debt repayment.
(Fixed Liabilities)
Fixed liabilities increased ¥5,774 million compared with the end of the previous consolidated fiscal year to¥17,540 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets increased ¥2,793 million compared with the end of the previous consolidated fiscal year to¥23,932 million. The increase was attributed to the net assets for the third quarter was well over capital surplus
and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2012.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the third-Quarter Year-to-Date Period
Takara Housing Co., Ltd. is included in the consolidated companies from the third quarter of the current fiscal
year, as the Company recently acquired all of the issued shares of Takara Housing. In addition, gains on negative
goodwill of ¥66 million arising from the acquisition of Takara Housing are included in extraordinary gains in thequarterly consolidated statements of income.
The company’s name of Takara Housing Co., Ltd. was changed to Takara Property Co., Ltd. on November 1,2012.
(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated Financial
Statementsa. Calculation method for fixed-asset depreciation
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement(Changes in Calculation method for fixed-asset depreciation)
Accompanying a revision in the Corporate Tax Act, from the first quarter of the current fiscal year, the Takara
Leben Group has changed the depreciation method for tangible fixed assets acquired after April 1, 2012 to amethod based on the Corporation Tax Act after the revision. Note that this change has not caused a material
impact on profit and loss for the third quarter of the current fiscal year.
-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2012

As of December 31, 2012ASSETS
Current assets:
Cash and deposits

17,394

Notes and accounts receivable, trade

20,000377

429

Real estate held for sale

7,430

3,457

Real estate held for sale in progress

22,86325,098

Other

2,899

2,849

Allowance for doubtful accounts
Total current assets

(46)

(42)

50,91951,792

Fixed assets:
Tangible fixed assets
Buildings and structures (net)

4,537

4,780

Land

13,487

12,48069

132

18,095

17,393

453

554

Other

1,026

977

Allowance for doubtful accounts

(217)

(115)

Total investments and other assets

808

861

19,357

18,81070,27770,603

Notes and accounts payable, trade

10,165

11,571

Short-term borrowings

5,494

3,671

Current portion of long-term borrowings

Other (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

15,887

8,093

Income taxes payable

515

1,533

Reserve

257

167

Other

5,052

4,093

Total current liabilities

37,372

29,130Noncurrent liabilities
Long-term borrowings

10,774

16,539Reserve248

202

Other743

797

11,765

17,54049,13846,670Total noncurrent liabilities
Total liabilities-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

(Millions of yen)
As of March 31, 2012

As of December 31, 2012

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,949

4,947

Retained earnings

13,266

16,754

Treasury stock(1,890)(2,596)

Total shareholders’ equity

21,14523,925

(7)

(10)

(7)

(10)

Share warrant－16

Total net assets

21,13823,932

70,27770,603

Accumulated other comprehensive income
Net unrealized losses on available-for-saleSecurities
Total accumulated other comprehensive income

Total liabilities and net assets-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

(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 EndedDecember 31, 2011

Nine Months Ended
December 31, 2012

Net sales

31,26855,003

Cost of sales

23,21043,017Gross profit

8,057

11,985

Selling, general and administrative expenses

5,442

6,000

Operating income (loss)

2,6145,984

Interest income

43

Dividend income

34Commissions received

5492

Income from equity method investment

2978

Miscellaneous income

32

50

Total Non-Operating income

124

228

Interest expense

731

603

Miscellaneous losses

23

12

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

755

615

1,983

5,597

Reserve for directors' retirement benefits－53

Gains on negative goodwill－

66

Total extraordinary gains－120

Loss on sales of shares in subsidiaries

49－

Loss on disposal of fixed assets

621

Loss on valuation of investment securities

3－Other－1

Total extraordinary losses

59

23

Ordinary income (loss)
Extraordinary gains

Extraordinary losses

Net income (loss) before income taxes

1,924

5,694

Income taxes, inhabitant taxes and business taxes

119

1,797

Income tax adjustments

64

58

Total income and other taxes

184

1,856

Income (loss) before minority interests

1,740

3,837

Net income (loss)

1,740

3,837-6-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

Quarterly Consolidated Statements of Comprehensive Income
Third -Quarter Year-to-Date Period(Millions of yen)
Nine Months Ended
December 31, 2011
Income (loss) before minority interests

Nine Months Ended
December 31, 2012

1,740

3,837

Net unrealized gains on available-for-sale securities

0(2)Total other comprehensive income0(2)

1,741

3,834

1,741

3,834

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Nine Months Ended December 31, 2012

(3) Notes Pertaining to the Going Concern Assumption
The Company had no pertinent matters to report.
(4) Notes on Significant Changes to Shareholders’ Equity(Purchase of treasury stock)
In the third quarter of the consolidated fiscal year under review, the Company purchased 1,089,400 shares oftreasury stock at ¥758 million, by resolution of the meeting of the Board of Directors held on May 14, 2012.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing
71,000 shares, which amounted to ¥52 million, the number and amount of treasury stock at the end of the thirdquarter of the fiscal year under review were 3,470,271 shares and ¥2,596 million, respectively-8-