Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
May 9, 2016
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 27, 2016
Scheduled date for commencement of dividend payment: June 28, 2016
Scheduled date for release of annual securities report: June 27, 2016
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, 2016 (From April 1, 2015 to March 31, 2016)(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, 2016

76,268

(0.9)

7,563

(18.3)

6,708(21.4)

4,308(24.7)

Year ended March 31, 2015

76,956

6.9

9,257

(5.5)

8,540

(7.0)

5,718

(2.6)

(Note) Comprehensive income: Fiscal year ended March 31, 2016: ¥4,266 million ((25.7)%)
Fiscal year ended March 31, 2015: ¥5,744 million ((2.1)%)

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, 2016

Yen

Yen

%

%

%

38.99

38.82

13.3

5.8

9.9

8.6

12.0

19.7
Year ended March 31, 2015
50.61
50.44
(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2016: ¥65 million
Fiscal year ended March 31, 2015: ¥5 million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2016

129,744

33,67725.8

304.71March 31, 2015

101,738

31,18930.6

279.11(Reference) Shareholders’ equity: March 31, 2016: ¥33,536 million
March 31, 2015: ¥31,111 million(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, 2016

2,428

(19,816)

19,66328,390Year ended March 31, 2015

(8,155)(7,998)6,314

26,114

2. Dividends
Annual dividends per share(Record date)

Q1
Yen

Q2
Yen

Q3
Yen

Year-end

Total

Total
dividends(annual)Dividends
payout ratio(consolidate)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen Millions of yen%%

Year ended March 31, 2015

—

2.00

—

4.00

6.00

671

11.9

2.3

Year ended March 31, 2016

—

4.00

—

9.00

13.00

1,430

33.3

4.4

Year ending March 31, 2017
(forecast)

—

5.00

—

10.00

15.00

18.3

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2017 (From April 1, 2016 to March 31, 2017)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

105,000 37.7

Operating income

Ordinary income

Millions of yen

Millions of yen%

15,000 98.3%

Net income
Millions of yen

13,900 107.2%

Yen

9,000 108.9

81.77*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): None
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 March 31, 2016 : 126,000,000 shares(b) As of March 31, 2015 : 128,000,000 shares(ii) Number of treasury stock at end of year(a) As of March 31, 2016 : 15,938,307 shares(b) As of March 31, 2015 : 16,531,307 shares(iii) Average number of shares during the year(a) Fiscal year ended March 31, 2016 : 110,491,726 shares(b) Fiscal year ended March 31, 2015 : 112,990,042 shares

Net income per share(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(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, 2016

65,496

(4.8)

7,145

(18.7)

6,369(21.7)

4,336(19.7)

Year ended March 31, 2015

68,819

2.5

8,783

(6.3)

8,137

(6.2)

5,401

(2.1)

Earnings per share

Diluted earnings
per share

yen

yen

Year ended March 31, 2016

39.24

39.07

Year ended March 31, 2015

47.81

47.65

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2016

120,003

31,15825.8

281.83

March 31, 2015

93,13028,56030.6

255.53(Reference) Shareholders’ equity: March 31, 2016: ¥31,018 million
March 31, 2015: ¥28,483 million

2. Forecast of Non-Consolidated Financial Results for the Year ending March 31, 2017 (From April 1, 2016 to March 31, 2017)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

84,000 28.3

Operating income

Ordinary income

Millions of yen

Millions of yen%

14,200 98.7%

13,300 108.8

Net income
Millions of yen

Net income per share%yen

8,700 100.6

79.05* Status of Audit ProceduresThis summary of consolidated financial results for the year ended March 31, 2016 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………………………………………………………………………

2(1) Analysis of Operating Results……………………………………………………………………………………………
(2) Analysis of Financial Position……………………………………………………………………………………………

25(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Year……………………………………
(4) Business Risks……………………………………………………………………………………………………………

6
7

2. The Takara Leben Group……………………………………………………………………………………………………
3. Management Policy…………………………………………………………………………………………………………

9
11(1) Basic Management Policy ………………………………………………………………………………………………
(2) Medium and Long-Term Business Strategies……………………………………………………………………………

1111(3) Issues to be Addressed ……………………………………………………………………………………………………
4. Basic Idea on Selection of Accounting Standards…………………………………………………………………………

12
12

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

1313(2) Consolidated Statements of Income and Comprehensive Income………………………………………………………
Consolidated Statement of Income…………………………………………………………………………………

15
15

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

1617(4) Consolidated Statement of Cash Flows …………………………………………………………………………………
(5) Notes to the Consolidated Financial Statements…………………………………………………………………………

19
21(Note Regarding the Going Concern Assumption) …………………………………………………………………
(Significant Basis for Preparation of the Consolidated Financial Statements…………………………………………

21
21(Changes in Accounting Policies) ..…………………………………………………………………………………
(Consolidated Balance Sheet)…………………………….……………………………………………………………

23
23(Consolidated Statement of Income)……………………………………………………………………………………
(Consolidated Statement of Comprehensive Income)…………………………………………………………………

24
26(Consolidated Statement of Changes in Shareholders’ Equity) …………………………………………………………
(Consolidated Statement of Cash Flows) ………………………………………………………………………………

26
28(Rental Properties, etc.)………………….………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………

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

33
34

6. 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) …………………………………………………………………

42
42(Significant Accounting Policies)………………………………………………………………………………………
(Changes in Accounting Policies) ..…………………………………………………………………………………

42
43(Balance Sheet) ……………………..…………………………………………………………………………………
(Statement of Income)…………………………………………………………………………………………………

43
44(Significant Subsequent Events)…………………………………………………………………………………………
7. Other …………………………………………………………………………………………………………………………

45
46(1) Changes of Officers………………………………………………………………………………………………………
(2) Production, Orders Received and Sales….………………………………………………………………………………

46
46

1

1．Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
Overview
During the consolidated fiscal year ended March 31, 2016, the Japanese economy has been on a moderate recovery trend
showing improvement of corporate earnings and employment conditions backed by the government’s and the BOJ’s various
economic policies and the monetary policy. However, with the recent appreciation of yen and increasing uncertainty over theoverseas market of emerging countries mainly China, it is still necessary to watch closely the business environment. .
In the real estate industry, in which the Company operates, rising sales price mainly in the Tokyo Metropolitan area
resulted in a decrease in the number of units sold. Meanwhile, new demands are being created in local cities by the effect ofregional revitalization measures such as City Center Revitalization Act promoted by the government. Also due to lowinterest rates and the government’s continuing measures to support housing acquisition, the business environment has
generally shown a steady growth.
Under such circumstance, the Company has set a goal of “diversifying flow businesses and expanding stock and fee-based
businesses” under the mid-term management plan and focused on promoting them. In our core real estate sales business, we
focused on sales of solar-powered condominiums and received a high evaluation from first-time buyers, ranking first in the
ranking of the number of ‘solar-powered condominiums’ units supplied for the fifth consecutive year. The Company has
achieved solid results in purchases of housing lots through promotion of its unique marketing method. In downtown areas inlocal cities, we purchased new housing lots in 11 cities and steadily expanded supply area using our group companies,
Takara Leben Tohoku Co., Ltd. and Jyutakujyouhoukan Co., Ltd. as our base in eastern Japan and western Japan,
respectively.
In stock and fee-based business, we have acquired rental properties and also acquired and expanded operation of mega
solar power generation plant steadily. With the aim of further expanding business utilizing natural energy, we established“Takara Leben Infrastructure Fund Inc.” and are preparing for listing in infrastructure fund market of Tokyo Stock
Exchange, Inc. As for real estate rental business and management business, we are working on building stable revenue
portfolios by taking advantage of group synergies.
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, 2016a) Performance review
At the parent level, Takara Leben Co., Ltd. delivered 1,448 units (including units sold under the joint venture) in thebuilt-for-sale condominium business, including those in “The Leben OtsukaYamanote Hill Top Season” which is the first
property of our new brand “the Leben” series. Also, the Company ranked first in the ranking of the number of‘solar-powered condominiums (available in each individual home unit)’ units supplied in Japan in 2015 for the fifth
consecutive year.
The detached housing business delivered 194 units.
Sales in the real estate rental business exceeded the initial plan as we purchased 8 units during the current fiscal year.
As a result, Takara Leben Co., Ltd. recorded net sales of ¥65,496 million (down 4.8% year-on-year), operating incomeof ¥7,145 million (down 18.7% year-on-year), ordinary income of ¥6,369 million (down 21.7% year-on-year), and net
income of ¥4,336 million (down 19.7% year-on-year).
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 41,131 units.
Especially, units entrusted from other companies accounted for approximately 45% of the increase during the fiscal year asa result of the efforts to secure other companies’ properties. Peripheral operations, including renovation, merchandise
sales, and repair work, also showed a steady growth.
Takara Property Co., Ltd., engaging in rental management business, recorded sales essentially in line with the plan.
Takara Asset Management Co., Ltd. has been preparing for listing on the infrastructure fund market and established“Takara Leben Infrastructure Fund Inc.” whose assets are managed by the company.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
Takara Leben Realnet Co., Ltd. is engaged in real estate sales agency and real estate distribution businesses.

2

Nikko kensetsu Co., Ltd. is engaged in general construction business mainly in Yokohama.
Nikko Property Co., Ltd. is engaged in rental management business mainly in Yokohama. Nikko Property Co., Ltd. wasestablished by incorporation-type split from Nikko kensetsu Co., Ltd. on January 4, 2016.
Takara Leben Tohoku Co., Ltd. is engaged in real estate sales business and commissioned real estate marketing agency
business mainly in Tohoku area.
Jyutakujyouhoukan Co., Ltd. is engaged in rental management business and real estate distribution business mainly in
Matsuyama, Ehime.
Takara Investments Co., Ltd. is preparing for entering into REIT market.
In As Partners Co., Ltd., total of fourteen nursing care facilities are operating and capacity utilization remained high at
approximately 91%. As Partners Co., Ltd. is excluded from the scope of affiliates accounted for by the equity method due
to partial sale of interests in September 2015.
The Sunwood Corporation is engaged in sales and delivery of joint venture property.
As a result of the above, the Group recorded net sales of ¥76,268 million (down 0.9% year-on-year), operating incomeof ¥7,563 million (down 18.3% year-on-year), ordinary income of ¥6,708 million (down 21.4% year-on-year), and net
income attributable to owners of parent of ¥4,308 million (down 24.7% year-on-year).

b) Performance by Business Segment＜Real Estate Sales Business＞
Sales from the real estate sales business amounted to ¥63,383 million, down 5.3% year-on-year, including sales of¥53,558 million from new build-for-sale condominium business and sales of ¥9,824 million from new detachedhousing business, etc.
＜Real Estate Rental Business＞
Revenues from the real estate rental business amounted to ¥4,307 million, up 48.6% year-on-year, including rent
revenues from rental of apartments, condominium units, and offices.
＜Real Estate Management Business＞
Revenues from real estate management business representing management fees from 41,131 units under management
amounted to ¥3,362 million, up 12.9% year-on-year.
＜Other Business＞
Revenues from other businesses amounted to ¥5,215 million, up 25.0% year-on-year, including revenues fromconstruction work, 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 ¥63,383 million, including sales of 1,448 new built-for-salecondominium units and sales from new detached housing.
Revenues from the real estate rental business amounted to ¥4,307 million, including rent revenues from rental ofapartments, condominium units, and offices.
Revenues from the real estate management business representing management fees from 41,131 units undermanagement amounted to ¥3,362 million.
Revenues from other businesses include revenues from construction work, large-scale repair work and revenues fromelectric power selling in mega-solar business and amounted to ¥5,215 million.
As a result, net sales for the consolidated fiscal year ended March 31, 2016 amounted to ¥76,268 million, down 0.9%
year-on-year.
＜Cost of Sales＞
Cost of sales decreased by 0.4% to ¥58,433 million as the number of units delivered in the new built-for-salecondominium business decreased by 172 units from the previous fiscal year to 1,448 units.

3

＜Selling, General and Administrative Expenses＞
Despite the continued cost-cutting efforts, selling, general and administrative expenses increased from the previous
fiscal year by 13.5% to ¥10,272 million due mostly to recording the expenses of the subsidiaries acquired during theprevious fiscal year for the full year.
＜Non-Operating Income and Expenses＞
Non-operating income increased by 12.4% from the previous fiscal year to ¥262 million due to an increase in income
from equity method investment.
Non-operating expenses increased by 17.4% from the previous fiscal year to ¥1,117 million due to an increase ininterest expense as a result of new borrowings for projects.
＜Extraordinary Gains and Losses＞
Extraordinary losses increased by 306.5% from the previous fiscal year to ¥252 million due mostly to recording loss
for compensation for complete work.
As a result, net sales for the consolidated fiscal year ended March 31, 2016 amounted to ¥76,268 million, down 0.9%
year-on-year, operating income amounted to ¥7,563 million, down 18.3% year-on-year, ordinary income amounted to¥6,708 million, down 21.4% year-on-year, and net income attributable to owners of parent amounted to ¥4,308 million,
down 24.7% year-on-year.
(ii) Outlook for the Year Ending March 31, 2017
Based on the new medium-term management plan announced on May 11, 2015, the business plan for the fiscal year
ending March 31, 2017 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 expects to deliver 1,600 units.
The detached housing business expects to deliver 288 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 the 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 43,300 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, 2017 are as follows:
Net sales:¥105,000 million (up 37.7% year-on-year)

Operating income: ¥15,000 million (up 98.3% year-on-year)
Ordinary income:¥13,900 million (up 107.2% year-on-year)

Net income:¥9,000 million (up 108.9% year-on-year)(New built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery)
Units scheduled for

Of which, number of

Number ofdelivery during thecontracts signed (units)

contracts signed

fiscal year ending

for

units

Total number ofMarch 31, 2017

scheduled forcontracts signed(units)delivery after(units)March 31, 2017
(units)
As of March 31, 2016

1,600

714

4

88

802

(iii) Progress of the Mid-Term Management Plan, etc.
The Company developed the new mid-term management plan “Takara Leben Next Stage 2019” in May 2015 and set two
main measures: “Diversifying flow businesses” and “Expanding stock and fee-based businesses.” In the fiscal year ending
March 31, 2019, the final year of the plan, the Company aims at profit ratio of 65% for the flow business and 35% for thestock and fee business.
(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 plandeveloped in May 2015 sets the target of ROE at 20% or more.
(2) Analysis of Financial Position
With regard to assets, liabilities, and net assets of the Group as of March 31, 2016, total assets amounted to ¥129,744
million, an increase of ¥28,005 million from March 31, 2015, mainly due to an increase in inventories associated with newpurchases and purchase of business assets.
(i) Analysis of Assets, Liabilities and Net Assetsa) Current assets
Current assets increased by ¥8,434 million from March 31, 2015 to ¥75,753 million mainly due to an increase in cash
and deposits and an increase in inventories associated with new purchases.
b) Non-current assets
Non-current assets increased by ¥19,544 million from March 31, 2015 to ¥53,945 million mainly due to purchase ofbusiness assets.
c) Current liabilities
Current liabilities increased by ¥8,058 million from March 31, 2015 to ¥42,859 million mainly due to an increase in
short-term borrowings and reclassification from long-term borrowings to short-term borrowings.
d) Non-current liabilities
Non-current liabilities increased by ¥17,458 million from March 31, 2015 to ¥53,207 million mainly due to anincrease in borrowings associated with new purchases.
e) Net assets
Net assets increased by ¥2,487 million from March 31, 2015 to ¥33,677 million as net income attributable to ownersof parent 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, 2016 amounted to ¥28,390 million, an increase of ¥2,275 million
from March 31, 2015.
a) Cash flows from operating activities
Net cash provided by operating activities was ¥2,428 million (Year ended March 31, 2015: ¥(8,155) million), mainly
attributable to an increase in income before income taxes and accounts payable, trade.
b) Cash flows from investing activities
Net cash used in investing activities was ¥19,816 million (Year ended March 31, 2015: ¥(7,998) million), mainly
attributable to purchase of fixed assets.
c) Cash flows from financing activities
Net cash provided by financing activities was ¥19,663 million (Year ended March 31, 2015: ¥6,314 million), mainly
attributable to an increase in borrowings.

5

(iii) Changes in Cash Flow Indicators
FY2014/3

FY2015/3

FY2016/3

Equity ratio (%)

28.2

30.6

25.8

Equity ratio at market value (%)

37.9

70.6

56.5

Debt repayment period (years)

1.6

-

29.0

Interest coverage ratio (times)

28.0

-

2.4

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 debts recorded on the Consolidated balance sheet on which interest is paid.
* For FY2015/3, Debt repayment period (years) and Interest coverage ratio (times) are omitted due to negative operating
cash flows.
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to shareholders 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 aims to return profit at 35% or more by dividends and treasury stockacquisition.
Specifically, the plans for dividends are set as follows:Year ended March 31,

Ordinary

2016 (forecast)dividends

Year ending March 31,2017 (forecast)Ordinary
dividends

1st half dividend

Year-end dividend

Total

¥4.0

¥9.0

¥13.0

1st half dividend

Year-end dividend

Total

¥5.0

¥10.0

¥15.0

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.

6(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.
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 54.3% 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, which 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 the performance and financial

position of the Group.
e) Impact of home loans
In purchase of condominiums, etc., our customers often make use of home loans from home financing support
organizations and financial institutions, and therefore credit crunch caused by unfavorable changes in financial conditions
may potentially impact the performance and financial position 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
fluctuations in land procurement cost and subcontracting cost and financial conditions.

For these reasons, conditions

which has a significant impact on supply trends may potentially impact the performance and financial position of theGroup.
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 sales at the estimated price to be difficult.

Such situations may potentially

impact the performance and financial position 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.
7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 position 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.
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, eleven consolidated subsidiaries and one 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 Asset Management Co., Ltd., a consolidated subsidiary, will primarily engage in investment management business.
Takara Leben Tohoku Co., Ltd., a consolidated subsidiary, is engaged in real estate sales business mainly in eastern Japan.
Takara Leben Realnet Co., Ltd., a consolidated subsidiary, is engaged in real estate distribution businesses.
Takara Property Co., Ltd., a consolidated subsidiary, primarily engages in rental management 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.
Nikko kensetsu Co., Ltd., a consolidated subsidiary, is engaged in general construction business mainly in Yokohama,
Kanagawa.
Nikko Property Co., Ltd., a consolidated subsidiary, primarily engages in rental management business.
Jyutakujyouhoukan Co., Ltd., a consolidated subsidiary, is engaged in real estate sales business and real estate managementbusiness mainly in western Japan.
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, is primarily engaged in claims servicing business pursuant to the Act
on Special Measures concerning the Claims Servicing Business.
Sunwood Corporation, an affiliate accounted for by the equity method, is primarily engaged in planning, development, andmarketing of new built-for-sale condominiums, etc. mainly in central Tokyo.
As Partners Co., Ltd., formerly accounted for by the equity method, is excluded from the scope of affiliates accounted for by theequity method due to partial sale of interests in September 2015.
(1) Real estate sales business
The Company is primarily engaged in planning, development and marketing of ‘Leben-series’ new built-for-salecondominiums in the suburbs of the Tokyo metropolitan area. Also, Sunwood Corporation, an affiliate accounted for by theequity method, is primarily engaged in planning, development, and marketing of new built-for-sale condominiums, etc. mainlyin central Tokyo.
(2) Real estate rental business
The Company is engaged in rental business for apartments, condominiums, and offices in the Tokyo metropolitan area. Also
Takara Property Co., Ltd. and Nikko Property Co., Ltd., consolidated subsidiaries, are engaged 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, is engaged in claims servicing business pursuant to the Act on
Special Measures concerning the Claims Servicing Business.
・Nursing care business
Also, Leben Community Co., Ltd., a consolidated subsidiary, provides rehabilitation-focused day-care nursing service.
・Construction businesses
Nikko kensetsu Co., Ltd., a consolidated subsidiary, is engaged in construction business.
・Other businesses
The Group is also engaged 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.

Leben Community Co., Ltd.

Takara Asset Management Co., Ltd.

Takara Leben Tohoku Co., Ltd.

Takara Leben Realnet Co., Ltd.

Takara Property Co., Ltd.

Takara Leben CO., LTD.

Consolidated subsidiaries
Takara Investment Co., Ltd.

TAFUKO Co., Ltd.

Nikko kensetsu Co., Ltd.

Nikko Property Co., Ltd.

Jyutakujyouhoukan Co., Ltd.

Marunouchi Servicer Co., Ltd.

Affiliate accounted for by the equity method

10

Sunwood Corporation

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 a new mid-term management plan “Takara Leben Next Stage 2019” in May 2015 for the period
ending March 31, 2019, with a theme of ‘Beginning of a new era for Takara Leben” and two main measures listed below.
(1) Diversifying flow businesses(2) Expanding stock and fee-based businesses＜Specific Strategies＞
A. Basic Policy
By maximizing the Group’s strengths, the Company aims to diversify flow businesses and expand stock and fee-based
businesses, and achieve profit ratio of 65% for flow businesses and 35% for stock and fee-based businesses.

11

B.

Individual Strategies(i) Diversifying flow businessesa) New built-for-sale condominium business in the Tokyo Metropolitan area
Due to a surge of condominium price in the metropolitan area, first-time buyers have shifted to suburban areas,
which resulted in increasing demands for condominiums with good locations and upscale specifications in theseareas. As the exodus of first-time buyers from the metropolitan area to the suburbs is still expected to increase, theCompany plans to supply high value-added condominiums with solar-power, etc. in good locations at appropriate
prices, and aims at stable annual supply of 1,200 units.
b) New built-for-sale condominium business in downtown areas in local cities
In downtown areas in local cities, we will expand our business with active seniors as the main target. As
demand for condominiums located in central areas is expected to increase in the future once the second-generation
baby boomers begin to retire, the Company aims at annual supply of 1,000 units.
c) Rebuilding & Redevelopment Business
Through rebuilding, redevelopment, and scrap & build businesses, the Company aims at stable annual supply of
about 300 units.
d) Detached house business
The Company will establish short-, mid-, and long-term business cycles, ensure creating value for town throughdevelopment of complex facilities including condominiums and supplying condominiums in good locations, andaim at annual supply of 500 units, in a complementary role in the condominium business.
e) Business charged with effective use of land
The Company plans to provide one-stop solution for the entire process from proposal/planning of effective land
utilization to design/construction and operational management/maintenance, with the aim of expanding both flow
and stock businesses.
(ii) Expanding stock and fee-based businessesa) Mega-solar businessWe set the operation goal of 130 MW by fiscal year ending March 31, 2019.
b) Real estate rental businessWe will proactively acquire used properties located near railway stations. Through scrap & build operations,such acquired properties will be sold to active seniors or to REIT as new rental properties in the Tokyo
Metropolitan area.
c) Real estate management business
The Company will proactively acquire management of build-for-sale housing sold by other companies, and aim
for 50,000 managed housing units.
d) Real estate rental and management businessGroup companies will enhance rental management business in each area, aiming for 6,200 managed housing
units.
e) Real estate distribution businessWith effective use of resources available in the Group, we will strengthen the business structure to respond to
replacement needs of active seniors that are expected to increase going forward and aim to achieve annual sales of¥1.0 billion.

(3) Issues to be Addressed
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.

4. Basic Idea on Selection of Accounting Standards
The Group has adopted the Japanese accounting standards to ensure comparability with our domestic competitors

125. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2015)(March 31, 2016)
AssetsCurrent assets
Cash and deposits※2

Notes and accounts receivable, trade
Real estate held for sale

26,281

※2

933
4,901

※2, ※3※2※2, ※3

Real estate held for sale in progress
Costs incurred on uncompleted contracts

30,444244※228,515※2

36,134116※2, ※3

189

Deferred tax assets
Other

963
4,073

62
5,924

Allowance for doubtful accounts

4,362
(37)

Total current assets

67,31975,753

10,490(3,619)14,725※2(38)

Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net

6,870

※2,※3

(3,516)
11,209

※2,※3

4,248
(377)

Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net

3,870

※2

13,399(996)
12,402

※2

220
(188)

Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

※2

Land

31

18,758
230
(75)

※2,※3

Lease assets
Accumulated depreciation

152
(117)
※2, ※3

243
(114)

154

Lease assets, net
Construction in progress

725

※2

Total tangible fixed assets

35

24,750

※2,※3

129
710

※2

30,412

49,237

1,123
82

1,006
76

Intangible fixed assets
Goodwill
Lease assets
Other

※2

Total intangible fixed assets

421

※2

428

1,627

1,512

223
55

379
49

Investments and other assets
Investment securities
Long-term loans

46

Deferred tax assets
Other

60
2,728

Allowance for doubtful accounts

2,042
(6)

Total investments and other assets

2,361

3,195

34,40053,94518

45

101,738

129,744※1

Total fixed assets
Deferred assets
Total assets

13

※1

(22)

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2015)(March 31, 2016)
Liabilities
Current liabilities
Notes and accounts payable, trade

10,023

12,037

Short-term borrowings
Current portion of bonds

※2

4,742
200

※2

7,412
－

Current portion of long-term borrowings
Lease obligations※2

10,378108※212,41093

Income taxes payable
Advance received
Allowance for bonuses
Allowance for compensation for complete work

1,928
4,146

1,113
3,110

265
150
－

297
330

Deferred tax liabilities
Other

2,857

786
5,267

Total current liabilities

34,80042,859Noncurrent liabilities
Long-term borrowings※2

33,235－※2

50,147

148

200
131

Allowance for directors’ retirement benefits
Liabilities related to retirement benefits

29
255

32
307

Asset retirement obligations
Deferred tax liabilities

20
813

21
555

Other

1,245

1,811

Total noncurrent liabilities

35,74853,20770,54996,066

4,819

4,819

4,817
26,251

4,817
29,011(4,806)(5,100)31,08133,548

Bonds
Lease obligations

Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities
Total accumulated other comprehensive income
New share subscription rights
Total net assets
Total liabilities and net assets

14

30

(11)

30

(11)

77

140

31,18933,677

101,738

129,744(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, 2014
(From April 1, 2015
to March 31, 2015)
Net sales
Cost of sales※1

to March 31, 2016)

76,956
58,645※1

18,311Gross profit※2

Selling, general and administrative expenses

9,053

76,26858,433
17,835※2

10,272

9,257

7,563

3
4

3
4

Commissions received
Income from equity method investment

112
5

Deposit settlement gain
Miscellaneous income

48
58

93
65
－

Total non-operating income

233

262

892

996

Operating income
Non-operating income
Interest income
Dividend income

Non-operating expenses
Interest expense

96

Miscellaneous losses

59

121

Total non-operating expense

951

1,117

Ordinary income

8,540

6,708

Extraordinary gains
Gain on sale of fixed assets

※3

0
16

－
－

82

－

99

－

30
0

－
－

Gain on sale of investment securities
Gain on negative goodwill
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets※4※5

Impairment loss
Loss on valuation of investment securities

9
－

－

20

252
－

Total extraordinary losses

61

252

Income before income taxes

8,577

6,456

Income taxes – current
Income taxes – deferred

1,973
886

1,508
639

Total income taxes

2,859

2,148

Loss from compensation for complete work
Loss from legal proceedings※6

Net income

5,718

4,308

Net income attributable to owners of parent

5,718

4,308

15

(Consolidated Statement of Comprehensive Income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2014
to March 31, 2015)
Net income(From April 1, 2015
to March 31, 2016)

5,718

4,308

Other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities

26

Total other comprehensive income

※1

26

(42)
※1

(42)

Comprehensive income

5,744

4,266

(Comprising)Comprehensive income attributable to parent

5,744

4,266

16

(3) Consolidated Statement of Changes in Shareholders’ Equity
Previous Consolidated Fiscal Year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity

Balance at beginning of year

Capital stock

Capital surplus

Retained earnings

Treasury stock

4,819

4,817

21,623(4,179)Total shareholders’equity27,080Changes during the year
Dividends from surplus
Net income attributable toowners of parent
Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock
Cancellation of treasury
stock
Transfer from retained
earnings to capital surplus

(624)

(624)

5,718

5,718

92

92
(1,217)(1,217)

2

29

32

(560)

560

－
－

557

(557)

－

－

4,628

(627)

4,001

4,819

4,817

26,251(4,806)31,081

Change of scope of equity
methodNet changes of items otherthan shareholders’ equity
Total changes during theyear
Balance at end of year

Accumulated other comprehensive income
New share subscription
Unrealized gains (losses)
Total accumulated otherrightson available-for-salecomprehensive income
securities
Balance at beginning of year

4

4

53

Total net assets

27,138Changes during the year
Dividends from surplus(624)

Net income attributable toowners of parent
Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock
Cancellation of treasurystock(1,217)

Transfer from retained
earnings to capital surplus－

Change of scope of equity
method－Net changes of items otherthan shareholders’ equity
Total changes during theyear
Balance at end of year

5,718
92

32
－

26

26

24

50

26

26

24

4,051

30

30

77

31,18917

Current Consolidated Fiscal Year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of year

Capital surplus

Retained earnings

Treasury stock

4,817

26,251(4,806)

4,819

Total shareholders’equity31,081

Changes during the year
Dividends from surplus
Net income attributable toowners of parent
Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock

(886)

(886)

4,308

4,308
－
(970)

(970)

55

36

92

Cancellation of treasury
stock

(640)

640

－

Transfer from retained
earnings to capital surplus

584

Change of scope of equity
method

(584)

－

(78)

(78)

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

－

－

2,760

(293)

2,466

Balance at end of year

4,819

4,817

29,011(5,100)33,548

Accumulated other comprehensive income
Unrealized gains (losses) Total accumulated other New share subscription
rightson available-for-salecomprehensive income
securities
Balance at beginning of year

30

30

77

Total net assets

31,189Changes during the year
Dividends from surplus(886)

Net income attributable toowners of parent
Change in scope of
consolidation
Acquisition of treasury
stock
Disposition of treasury
stock
Cancellation of treasury
stock

4,308
－
(970)
92
－

Transfer from retained
earnings to capital surplus－

Change of scope of equity
method(78)

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

(42)

(42)

63

20

(42)

(42)

63

2,487

(11)

(11)

140

33,67718

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

Cash flows from operating activities
8,577
717

6,456
1,192

Impairment loss
Amortization of goodwill

0
46

－
117

Gains on negative goodwill(Decrease) increase in allowances

(82)
(19)

－
232

Increase in liabilities related to retirement benefits
Interest and dividend income

25
(8)

51
(7)

Equity-based compensation cost
Interest expense

55
892

155
996

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

30
(0)

－
－

Loss on valuation of investment securities
Gain on sale of investment securities

9
(16)

－
－

Increase in accounts receivable, trade
Decrease in operating loans

(484)
73

(30)
33

Increase in inventories(Decrease) increase in accounts payable, trade(911)(10,717)(2,600)2,013

Increase (decrease) in advance received
Other

73
(1,979)(1,036)(1,756)

Subtotal(3,716)

5,817Interest and dividend received
Interest paid

8
(1,014)

7(1,032)

Income taxes paid

(3,433)(2,364)

Net cash (used in) provided by operating activities(8,155)

2,428

Payments into time deposits
Withdrawals from time deposits

(32)
27

(135)
176

Decrease in short-term loans
Acquisition of tangible fixed assets

16(7,681)

4(19,739)

Proceeds from sale of tangible fixed assets
Acquisition of intangible fixed assets

1
(19)

16
(23)

Acquisition of investment securities
Proceeds from sale of investment securities

(1)
56

(200)
－

Proceeds from sale of subsidiaries and affiliates'
stocks

－

84

※3

(732)

－

※3

375

－

Net income before income taxes
Depreciation and amortization

Cash flows from investing activities

Outflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Inflow from acquisition of subsidiaries’ stock
resulting in change of the scope of consolidation
Other
Net cash used in investing activities

19

(8)

0

(7,998)(19,816)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2014
(From April 1, 2015
to March 31, 2015)

to March 31, 2016)

Cash flows from financing activities
Net increase in short-term borrowings

1,687

2,670

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

22,349(15,778)

41,201(22,256)

Proceeds from issuance of bonds
Redemption of bonds

－
(30)

200
(200)

Repayment of lease obligations
Acquisition of treasury stock(73)(1,217)

(96)
(970)

(624)

(884)

Net cash provided by financing activities

6,314

19,663(Decrease) increase in cash and cash equivalent(9,840)2,275

Dividends paid

Cash and cash equivalent at beginning of year

35,954※1

Cash and cash equivalent at end of year20

26,114

26,114※1

28,390(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: 11
Names of consolidated subsidiaries
Leben Community Co., Ltd.
Takara Asset Management Co., Ltd.
Takara Leben Tohoku Co., Ltd.
Takara Leben Realnet Co., Ltd.
Takara Property Co., Ltd.
Takara Investments Co., Ltd.
TAFUKO Co., Ltd.
Nikko kensetsu Co., Ltd.
Nikko Property Co., Ltd.
Jyutakujyouhoukan Co., Ltd.
Marunouchi Servicer Co., Ltd.
Nikko kensetsu Co., Ltd., a consolidated subsidiary, established Nikko Property Co., Ltd. by incorporation-type split
on January 4, 2016 with Nikko kensetsu Co., Ltd. as a splitting company. As Nikko Property Co. Ltd.’s sharesacquired by Nikko kensetsu Co., Ltd. as consideration for the split were acquired by the Company on February 1,
2016, Nikko Property Co., Ltd. was included in the scope of consolidation.
(2) Names of major nonconsolidated subsidiaries(i) Name of nonconsolidated subsidiaries
Takara Leben Infrastructure Fund Inc.
(ii) Main reason for exclusion from the scope of consolidation
Takara Leben Infrastructure Fund Inc. is excluded from the scope of consolidation as the control over it is
temporary.
2．Application of the equity method(1) Number of affiliates accounted for by the equity method:1
Name of the affiliates
Sunwood Corporation
As Partners Co., Ltd. is excluded from the scope of affiliates accounted for by the equity method due to partial saleof shares held.
(2) Non-consolidated subsidiaries not accounted for by 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.

21

(ii) Inventories
Inventory is stated at cost based on the specific identification method.
(Book value is written down due to decline in profitability)(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)
Tangible fixed assets (excluding lease assets) are depreciated using the declining balance method, except forbuildings (excluding leasehold improvement) acquired after April 1, 2008, which are depreciated using thestraight-line method.
Individual useful lives are as follows:
Individual useful lives (years)
Buildings and structures

3 - 50Machinery, equipment and vehicles

4 - 17(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.
(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.
(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.
taxes relating to assets are charged to income in the year of acquisition.

22

Non-deductible consumption

(Changes in accounting policies)(Application of accounting standard for business combinations)
Effective April 1, 2015, the Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement
No. 21, September 13, 2013), the “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22,
September 13, 2013) and the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013), etc.
As a result, the accounting treatments were changed to record the differences from changes in the Company’s interest in
subsidiaries that the Company continues to control as capital surplus and to record acquisition-related expenses as expenses for the
consolidated fiscal year in which they are incurred. With regard to any business combinations executed on and after April 1, 2015,
the accounting treatment is changed to reflect the adjustments to the provisionally allocated acquisition costs based on the
finalized accounting treatment to the consolidated financial statements in the consolidated fiscal year to which the date of thebusiness combination belongs. In addition, the presentation of net income, etc. was changed, and the presentation of “minority
interests” was changed to “non-controlling interests.” In order to reflect these changes in presentation, certain reclassifications
have been made to the consolidated financial statements for the consolidated fiscal year ended March 31, 2015.
The Company has applied the Accounting Standard for Business Combinations, etc. in accordance with transitional treatments
stipulated in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of the AccountingStandard for Consolidated Financial Statements and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures,prospectively from April 1, 2015.
This change had no impact on the consolidated financial statements.

(Consolidated Balance Sheet)※1 Assets relating to affiliates are as follows:
Previous Consolidated Fiscal Year
(March 31, 2015)

Current Consolidated Fiscal Year
(March 31, 2016)¥881 million¥748 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, 2015)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2016)

Cash and deposits

21

28

Notes and accounts receivable, trade
Real estate held for sale

409
592

150
1,151

Real estate held for sale in progress
Other (current assets)

23,876267

33,490－

Buildings and structures
Machinery and equipment

5,805
3,070

9,981
10,704Tools, furniture and fixturesLand

0
14,4890
20,310Construction in progress
Other (intangible fixed assets)

549
224

23
224

49,30776,065Total(2) Corresponding liabilities

Previous Consolidated Fiscal Year
(March 31, 2015)(Millions of yen)
Current Consolidated Fiscal Year
(March 31, 2016)

Short-term borrowings
Current portion of long-term borrowings

3,032
5,296

3,820
11,749Long-term borrowings

31,66746,31039,996

61,880Total

23

※3 Change in purpose of asset holding
Previous consolidated fiscal year (as of March 31, 2015)
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 ¥252 million and Land of ¥445 million were reclassified to Real estate held for sale.
Current consolidated fiscal year (as of March 31, 2016)
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 ¥638 million, Tools, furniture and fixtures of ¥0 million and Land of ¥1,495 million werereclassified to Real estate held for sale and Real estate held for sale in progress.

4

Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial institutions by customers of the Company(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2015)

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

Current Consolidated Fiscal Year
(March 31, 2016)

12,073

8,168

12,073

8,168

residential mortgage loans are registered
Total
5

The Group maintains overdraft and credit lines agreement with 23 financial institutions (March 31, 2015: 14) in order toensure efficient funding of operating capital. The unused balance of borrowings under these agreements at consolidated
fiscal year-end is as follows:(Millions of yen)Previous Consolidated Fiscal Year
(March 31, 2015)

Total maximum amount of overdraft and credit lines
Outstanding borrowing balance
Difference

Current Consolidated Fiscal Year
(March 31, 2016)

8,213
4,683

17,716
8,444

3,529

9,271

(Consolidated Statement of Income)※1 Inventories are stated at the amount after the write-down reflecting the decline in profitability.
inventories included in Cost of sales is as follows.

Loss on valuation of(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2014 to March 31, 2015)(From April 1, 2015 to March 31, 2016)
(151)

(138)

※2 Selling expenses account for approximately 46% and General and administrative expenses account for approximately 54% for
the year ended March 31, 2015, and 41% and 59%, respectively, for the year ended March 31, 2016.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2014

Current Consolidated Fiscal Year
(From April 1, 2015

to March 31, 2015)

to March 31, 2016)

Advertising expenses
Sales promotion expenses

2,781
1,394

2,641
1,391

Salaries
Provision for allowance for bonuses
Retirement benefit costs
Provision for allowance for directors’
retirement benefits
Provision for allowance for doubtful accounts

1,560
320

1,849
353

57

78

3

5

17

16

24

※3

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

(Millions of yen)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

Machinery, equipment and vehicles
Total
※4

The breakdown of Loss on disposal of fixed assets

0

－

0

－

is as follows.

(Millions of yen)Previous Consolidated Fiscal Year
(From April 1, 2014

Current Consolidated Fiscal Year
(From April 1, 2015

to March 31, 2015)

to March 31, 2016)

Buildings and structures

30－

Tools, furniture and fixtures

0

－

Total

30

－

※5

Impairment loss
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)
During the year ended March 31, 2015, the Group recorded impairment loss of ¥0 million on the following assets orasset groups due to a decline in market value of idle assets.
Use

Type

Location

Amount(Millions of yen)

Idle
Land

Hakone-machi, Ashigara-shimogun, Kanagawa

0

Total

0

assets

The amount consists of Land of ¥0 million.
Idle assets 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 realestate appraiser.
Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
※6

Loss from legal proceedings
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)
Loss from legal proceedings represents ¥20 million of legal settlement related to legal proceedings filed against theCompany.

Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.

25

(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, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

42

(42)

Unrealized gains (losses) on available-for-salesecurities：
Recognized during the current year
Reclassification adjustments
Before tax effects
Tax effects
Unrealized gains (losses) on available-for-salesecurities
Total other comprehensive income

(16)

－

26
－

(42)
－

26

(42)

26

(42)

(Consolidated Statement of Changes in Shareholders’ Equity)
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2014
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2015
(Shares)

Shares issued and outstanding
130,000,000－

2,000,000

128,000,000

130,000,000－

2,000,000

128,000,000

Common stock (Notes 2, 3)

15,974,807

2,668,500

2,112,000

16,531,307

Total

15,974,807

2,668,500

2,112,000

16,531,307

Common stock (Note 1)
Total
Treasury stock(Notes) 1.

The decrease in number of common stock outstanding of 2,000,000 shares is due to cancellation of treasury stock

based on the resolution by the Board of Directors meeting.
2.
The increase in number of common stock in treasury stock of 2,668,500 shares is due to 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 2,112,000 shares is due to exercise of stock option of
112,000 shares and cancellation of treasury stock of 2,000,000 shares based on the resolution by the Board of
Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of shares
to be issued

Number of shares to be issued upon exercise of
new share subscription rights
Balance at
Number ofClassifi-cati Description of new share upon exercise Number ofMarch 31, 2015
sharesat
subscription rightsof new shareonshares at
Increase
Decrease
March 31, (million yen)
(Shares)
subscription April 1, 2014 (Shares)
2015(Shares)(Shares)rightsSubmitting
company(Parent

New share subscription
rights as stock options

－

－

－

－

－

77

－

－

－

－

－

77

company)
Total

26

3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June23, 2014
Board of Directors
meeting on October27, 2014

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

399

Common stock

225

Record date

Effective date

3.5

March 31, 2014

June 24, 20142

September 30, 2014

December 9, 2014

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

Class ofsharesTotal dividends
to be paid
(Millions of yen)

SourceDividend pershare (Yen)445

Retainedearnings

4

Board of Directors Common
meeting on June 24,
stock
2015

Record date

Effective date

March 31, 2015

June 25, 2015

Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)
1．Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2015
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2016
(Shares)

Shares issued and outstanding
128,000,000－

2,000,000

126,000,000

128,000,000－

2,000,000

126,000,000

Common stock (Notes 2, 3)

16,531,307

1,531,000

2,124,000

15,938,307

Total

16,531,307

1,531,000

2,124,000

15,938,307

Common stock (Note 1)
Total
Treasury stock(Notes) 1.
2.

The decrease in number of common stock outstanding of 2,000,000 shares is due to cancellation of treasury stock
based on the resolution by the Board of Directors meeting.
The increase in number of common stock in treasury stock of 1,531,000 shares is due to 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 2,124,000 shares is due to exercise of stock option of
124,000 shares and cancellation of treasury stock of 2,000,000 shares based on the resolution by the Board of
Directors meeting.
2. New share subscription rights and treasury new share subscription rights
Class of shares
to be issued

Number of shares to be issued upon exercise of
new share subscription rights
Balance at
Number ofClassifi-cati Description of new share upon exercise Number ofMarch
31, 2016
shares at
subscription rightsof new shareonshares at
Increase
Decrease
March 31, (million yen)
(Shares)
subscription April 1, 2015 (Shares)
2016(Shares)(Shares)rightsSubmitting
company(Parent

New share subscription
rights as stock options

－

－

－

－

－

140

－

－

－

－

－

140

company)
Total

27

3．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June24, 2015
Board of Directors
meeting on October
26, 2015

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

445

Common stock

440

Record date

Effective date4

March 31, 2015

June 25, 20154

September 30, 2015

December 8, 2015

(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 27,
990
earnings
stock
2016

Dividend pershare (Yen)9

Record date

Effective date

March 31, 2016

June 28, 2016

(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, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

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

26,281

28,515

(166)

(125)

Cash and cash equivalent

26,11428,3902 Significant non-cash transactions(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

697

2,134

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※3 Major components of assets and liabilities of the company newly included in the scope of consolidation as a result of
acquisition of shares
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)
Details of assets and liabilities at the time of consolidation of the company newly included in the scope of consolidation
as a result of acquisition of shares, purchase price of the stock, and outflow (net increase) from acquisition of shares are as
follows:(1) Takara Leben Tohoku Co., Ltd.
(Millions of yen)
Current assets

278

Fixed assets

5

Goodwill82

Current liabilities(325)

Noncurrent liabilities(40)

Purchase price of newly consolidated subsidiary’s stock0

Cash and cash equivalent of newly consolidated subsidiary’s stock(18)

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

18

28

(2) Takara Leben Realnet Co., Ltd.
(Millions of yen)
Current assets

50

Fixed assets

298

Current liabilities(133)

Noncurrent liabilities(122)

Negative goodwill(82)

Purchase price of newly consolidated subsidiary’s stock

10

Cash and cash equivalent of newly consolidated subsidiary’s stock(37)

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

27(3) Nikko kensetsu Co., Ltd.
(Millions of yen)
Current assets

653

Fixed assets

570

Goodwill

707

Current liabilities(1,355)

Noncurrent liabilities(559)

Purchase price of newly consolidated subsidiary’s stock

16

Cash and cash equivalent of newly consolidated subsidiary’s stock(346)

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

329(4) Jyutakujyouhoukan Co., Ltd.
(Millions of yen)
Current assets

643

Fixed assets

2,291

Goodwill

380

Current liabilities(317)

Noncurrent liabilities(1,951)

Purchase price of newly consolidated subsidiary’s stock

1,047

Cash and cash equivalent of newly consolidated subsidiary’s stock(314)

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

732

Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.

29

(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, 2015, net rent income from these rental properties
amounted to ¥721 million (rent income is recorded in Net sales and major rent expenses are recorded in Cost of sales), andimpairment loss amounted to ¥0 million (recorded in Extraordinary losses). During the consolidated fiscal year ended March
31, 2016, net rent income from these rental properties amounted to ¥952 million (rent income is recorded in Net sales and major
rent expenses are recorded in Cost of sales),.
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
(From April 1, 2014

Current Consolidated Fiscal Year
(From April 1, 2015

to March 31, 2015)

to March 31, 2016)

Consolidated Balance Sheet
Beginning balance

18,08823,774

Changes during the year

5,686

9,672

Ending balance

23,77433,44725,33634,366

Market value at end of year

(Notes) 1. The carrying amount on the Consolidated Balance Sheet represents acquisition cost, net of accumulated depreciation2.

and amortization and accumulated impairment loss.
Of the changes during the year, the major increases during the year ended March 31, 2015 include acquisition ofreal estate (¥4,082 million) and an increase in scope of consolidation (¥2,536million), and major decreases include
reclassification to Real estate held for sale (¥697 million), Depreciation (¥297 million). The major increases during
the year ended March 31, 2016 include acquisition of real estate (¥12,225 million) and major decreases include
reclassification to Real estate held for sale and Real estate held for sale in progress (¥2,134 million) and Depreciation(¥363 million).
3. Market value at end of year is based on the appraisal value by a third party real estate appraiser.
4. Assets under construction are not included in the above table as it is not practicable to obtain their market value.
(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.

30

3．Net sales, income or loss, assets, liabilities and other items by reportable segment
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Other
Total

(Note)Total

Net sales
Net sales to external customers

66,907

2,898

2,978

72,784

4,172

76,956

Inter-segment sales and transfers

－

89

13

103

701

805

66,907

2,988

2,991

72,887

4,874

77,762

Segment income

7,983

668

142

8,794

593

9,387

Segment assets

39,53824,985371

64,895

8,598

73,494

Segment liabilities

45,631

14,345365

60,343

8,596

68,939Depreciation and amortization

96

273

3

373

304

678

Interest expense

572

211

－

784

78

862

Increase in tangible and intangible
fixed assets

73

6,526

28

6,628

3,929

10,557

Total

Other items(Note)“Other” represents business segments which are not included in any reportable segments and includes construction
contracted business, repair work business and mega solar business.

Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Reportable segments
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Other
Total

(Note)Total

Net sales
Net sales to external customers

63,383

4,307

3,362

71,052

5,215

76,268Inter-segment sales and transfers

129

12

159

301

413

715

Total

63,512

4,319

3,521

71,354

5,629

76,983

Segment income

6,450

652

97

7,200

664

7,865

Segment assets

45,292

34,714373

80,381

17,873

98,255

Segment liabilities

47,33624,478571

72,386

18,28890,674

Depreciation and amortization

109

383

6

499

682

1,182

Interest expense

526

267

－

794

164

958

Other items

Increase in tangible and intangible
41
12,5602
12,604
10,10022,705fixed assets(Note)“Other” represents business segments which are not included in any reportable segments and includes construction
contracted business, repair work business and mega solar business.

31

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

72,88771,354

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

4,874
(805)

5,629
(715)

Net sales on the consolidated financial statements

76,95676,268(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

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

8,794
593

7,200
664

(83)
(46)

(184)
(117)

9,257

7,563
(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category

64,895
8,598

80,381
17,873Elimination of due from parent administrative divisionCorporate assets (Note)(1,017)29,261(2,492)33,981

Total assets on the consolidated financial statements

101,738

129,744(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.
(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category

60,343
8,596

72,386
18,288Elimination of due to parent administrative divisionCorporate liabilities (Note)

(909)
2,519

(1,699)
7,092

Total liabilities on the consolidated financial statements

70,54996,066(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

373

499

304

682

39

9

717

1,192

Amortization of goodwill

－

－

－

－

46

117

46

117

Interest expense

784

794

78

164

33

39

896

998

Increase in tangible and6,628
12,604
3,929
10,1001,321
50
11,87922,756
intangible fixed assets(Note) Adjustments for increase in tangible and intangible fixed assets represent goodwill incurred but not allocated toreportable segments, capital expenditure for the headquarter building and elimination of inter-segment transactions.

32

b．Impairment loss on fixed assets by reportable segment
Previous consolidated fiscal year (From April 1, 2014 to March 31, 2015)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness－

0－

Corporate /Elimination

Other
－

Total

－

0

Current consolidated fiscal year (From April 1, 2015 to March 31, 2016)
Not applicable.
(Per Share Information)
Previous Consolidated
Fiscal Year
(From April 1, 2014
to March 31, 2015)

Current Consolidated
Fiscal Year
(From April 1, 2015
to March 31, 2016)

Net assets per share¥279.11¥304.71

Earnings per share¥50.61¥38.99Diluted earnings per share¥50.44¥38.82(Notes)Basis for calculation of earnings per share and diluted earnings per share is as follows.
Previous Consolidated
Fiscal Year
(From April 1, 2014
to March 31, 2015)

Current Consolidated
Fiscal Year
(From April 1, 2015
to March 31, 2016)

5,718

4,308

－

－

5,718

4,308

112,990

110,491

－

－

381

482

(381)

(482)

－

－

Earnings per share
Net income attributable to owners of parent (millionsof yen)Amount not attributable to common stockholders(millions of yen)
Net income attributable to owners of parent withrespect to common stock (millions of yen)
Average number of shares during the year (thousand
shares)Diluted earnings per share
Adjustments to net income attributable to owners ofparent (millions of yen)
Increase in number of common stock (thousand
shares)(Of those, new share subscription rights (thousand
shares))Overview of dilutive shares not included in calculation ofdiluted earnings per share due to its anti-dilutive effect33

(Significant Subsequent Events)(Transfer of Assets)
The Company entered into a sales and purchase agreement with Takara Leben Infrastructure Fund Inc. on April 4, 2016, regardingtransfer of mega solar power generation plants owned by the Company.
1. Reason for transfer
One of the key measures under the mid-term management plan announced on May 11, 2015 is to list on the infrastructure market
at the earliest opportunity. The purpose of this transfer is to support the growth of the investment corporation scheduled to be listed
in the market.
2. Description of the transferred assets and the use before the transfer
10 mega solar power generation plants
3. Name of the transferee
Takara Leben Infrastructure Fund Inc.
4. Date of transfer
Scheduled transfer date:
5. Transfer price

June 2, 2016

¥7,870 million (Total of 10 plants)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 11, 2016 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, 2016, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock options forequity-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 9, 2016 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 an 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
2,000,000 shares (maximum)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 1.81%)(3)

Acquisition period
From May 10, 2016 to March 31, 2017(4)

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

Acquisition method
Market purchase at Tokyo Stock Exchange

34

6．Non-Consolidated Financial Statements(1) Balance Sheet(Millions of yen)Previous Fiscal Year
(March 31, 2015)

Current Fiscal Year
(March 31, 2016)

AssetsCurrent assets
Cash and deposits

23,768※１

Accounts receivable, trade
Other receivables

110
140

※１

Real estate held for sale
Real estate held for sale in progress

303
1,113

※１

4,892
※１ 30,108

4,007※１,※２ 35,062

1,721
1,003

2,323
1,307

3
270

3
334

139
944

－
871

(17)

(11)

63,08570,681※１,※２

Advance payments
Prepaid expenses
Short-term loans
Short-term loans to affiliates
Deferred tax assets
Other

25,364※１※１

Allowance for doubtful accounts
Total current assets※１,※２

Fixed assets
Tangible fixed assets
Buildings※１,※２

Structures
Machinery, equipment and vehicles

5,009
193
3,864

※１
※１

Tools, furniture and fixtures
Land

※１,※２

8,317
657
12,398

※１,※２
※１

14
※１,※２ 16,506

12※１,※２ 21,846

Lease assets
Construction in progress

108※１ 72582※１ 697

Total tangible fixed assets

26,42344,013※１

Intangible fixed assets
Land lease rights

※1

224

※１,※２

※１

224

SoftwareLease assets

49
62

42
61

Other

0

0

336

329

Investment securities
Affiliates’ stock

184
2,292

353
2,521

Investments in capital
Membership

2
15

2
15

Security deposits and guarantee deposits
Long-term loans

343
55

385
49

Long-term loans to affiliates
Long-term other receivables

331
157

797
135

Other
Allowance for doubtful accounts

137
(234)

929
(209)

Total intangible fixed assets
Investments and other assets

Total investments and other assets
Total fixed assets
Total assets

35

3,285

4,979

30,04449,322

93,130120,003(Millions of yen)Previous Fiscal Year
(March 31, 2015)

Current Fiscal Year
(March 31, 2016)

Liabilities
Current liabilities
Notes payable
Accounts payable, trade
Short-term borrowings※1

Current portion of long-term borrowings
Lease obligations

※1

8,088

8,378

1,371
4,443

3,180
6,603

10,11271※1※1

12,13874

Other payables
Accrued expenses

1,118
101

4,098
120

Income taxes payable
Advance received

1,808
4,065

880
2,941

Deposits received
Unearned revenues

333
17

325
18

Allowance for bonuses
Allowance for compensation for complete work

180
150

191
330

Deferred tax liabilities
Other

－
63

786
0

Total current liabilities

31,926

40,068

Noncurrent liabilities
Long-term borrowings

30,800※1 46,639

Security deposits and guarantee deposits received
Lease obligations

739
115

1,292
84

Allowance for employees’ retirement benefits
Asset retirement obligations

165
20

196
21

Deferred tax liabilities
Other

796
4

537
3

32,643

48,77664,56988,844※1

Total noncurrent liabilities
Total liabilities

36

(Millions of yen)Previous Fiscal Year
(March 31, 2015)

Current Fiscal Year
(March 31, 2016)

Net assets
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus
Capital reserve

4,817

4,817

Total capital surplus

4,817

4,817

92

92

2,592

4,163

14,681
6,258

14,681
7,552

Retained earnings
Legal reserve
Other retained earnings
Reserve for special depreciation
General reserve
Retained earnings carried forward

23,624

26,490Treasury stock

Total retained earnings(4,806)(5,100)Total shareholders’ equity

28,45431,027

28

(8)

28

(8)

Valuation and translation adjustments
Net unrealized gains (losses) on available-for-salesecurities
Total valuation and translation adjustments
New share subscription rights
Total net assets
Total liabilities and net assets

37

77

140

28,56031,158

93,130120,003(2) Statement of Income(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

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

66,8181,353

62,790
1,505

Other income

647

1,200

Total net sales

68,81965,496

51,097713

48,276
833

Cost of sales - other

334

874

Total cost of sales

52,14549,983

16,673

15,512

Cost of sales
Cost of sales - real estate
Cost of sales - real estate rental

Gross profit
Selling, general and administrative expenses※2

Operating income

7,889

※2

8,366

8,783

7,145

13
※1 70

27
※1 70

Commissions received
Miscellaneous income

111
58

88
71

Total non-operating income

Non-operating income
Interest income
Dividend income

253

258

Non-operating expenses
Interest expense

869

945

Miscellaneous losses

30

88

Total non-operating expense

899

1,034

8,137

6,369

Gain on sale of investment securities
Gain on sale of stocks of subsidiaries and affiliates

16
－

－
78

Total extraordinary gains

1678

Extraordinary losses
Loss on disposal of fixed assets

Ordinary income
Extraordinary gains

30－

Impairment loss
Loss on valuation of investment securities

0
9

－
－

Loss from legal proceedings
Loss from compensation for complete work

20
－

－
252

Total extraordinary losses

61

252

Income before income taxes

8,092

6,195

Income taxes - current

1,776

1,192

914

666

Total income taxes

Income taxes - deferred

2,690

1,859

Net income

5,401

4,336

38

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

Category
Land purchase cost

Notes
2, 3

Outsourced construction
cost
Other
Cost of sales - real estatePrevious Fiscal Year

Current Fiscal Year

(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)
Ratio
(%)

Amount (Millions of yen)Amount (Millions of yen)

Ratio
(%)

14,86029.1

14,83930.7

35,41369.3

32,716

67.8

823

1.6

721

1.5

51,097100.0

48,276100.0(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 ¥ (151) million.
3. Land purchase cost of the current fiscal year includes loss on valuation of inventories of ¥ (138) million.
2. Cost of sales - real estate rental

Category
Taxes and public charges
Depreciation andamortization
Maintenance andadministrative expenses
Cost of sales - real estate
rentalNotes

Previous Fiscal Year

Current Fiscal Year

(From April 1, 2014
to March 31, 2015)(From April 1, 2015
to March 31, 2016)

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

135

18.9

143

17.3

247

34.7

304

36.6

330

46.4

384

46.1

713

100.0

833

100.0

39

(3) Statement of Changes in Shareholders’ Equity
Previous Fiscal Year (From April 1, 2014 to March 31, 2015)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings
Generalreserve

Retainedearnings
carriedforwardTotal
retainedearnings

12,681

5,940

19,405

2,199(2,199)

－

(298)

298

－

(2,000)－

Dividends from surplus

(624)

(624)

Net income

5,401

5,401

(557)

(557)

Capital stock

Balance at beginning of year

4,819

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusLegalreserve

4,817

－

4,817

92

Reserve for
specialdepreciation
691

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

2,000

Acquisition of treasury stock
Disposition of treasury stock2

2

Cancellation of treasury stock

(560)

(560)

557

557

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

－

－

－

－

－

1,900

2,000

318

4,218

4,819

4,817

－

4,817

92

2,592

14,681

6,258

23,624

Shareholders’ equity

Valuation and translation adjustments

Total shareholders’
Treasury stock
equityBalance at beginning of year

(4,179)Unrealized gains(losses) on
available-for-salesecurities

24,863

4

Total valuationand translation
adjustments
4

New share
subscription rights

53

Total net assets

24,920Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation

－

－

－

－

Funding for general reserve－－

Dividends from surplus

(624)

(624)

Net income

5,401

5,401

Acquisition of treasury stock(1,217)(1,217)(1,217)

Disposition of treasury stock

29

32

32

Cancellation of treasury stock

560

－

－

－

－

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

24

24

24

48

(627)

3,591

24

24

24

3,640

(4,806)28,45428

28

77

28,56040

Current Fiscal Year (From April 1, 2015 to March 31, 2016)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Capital stock

Balance at beginning of year

4,819

Capitalreserve

Other
capitalsurplusTotal
capitalsurplusLegalreserve

Reserve for
specialdepreciation

Generalreserve

Retainedearnings
carriedforwardTotal
retainedearnings

4,817

－

4,817

92

2,592

14,681

6,258

23,624

1,965(1,965)

－

(394)

394

－

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

Funding for general reserve
Dividends from surplus

(886)

(886)

Net income

4,336

4,336

(584)

(584)

Acquisition of treasury stock
Disposition of treasury stock

55

55

Cancellation of treasury stock

(640)

(640)

584

584

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

－

－

－

－

－

1,571

－

1,294

2,865

4,819

4,817

－

4,817

92

4,163

14,681

7,552

26,490Shareholders’ equity

Treasury stock

Balance at beginning of year

(4,806)

Valuation and translation adjustments

Total shareholders’equityUnrealized gains(losses) on
available-for-salesecurities

28,45428

Totalvaluation andtranslation
adjustments
28

New share
subscription rights

77

Total net assets

28,560Changes during the year
Funding for reserve for special
depreciation
Reversal of reserve for special
depreciation

－

－

－

－

Funding for general reserve－－

Dividends from surplus

(886)

(886)

Net income

4,336

4,336

Acquisition of treasury stock

(970)

(970)

(970)

Disposition of treasury stock

36

92

92

Cancellation of treasury stock

640

－

－

－

－

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

(37)

(37)

63

25

(293)

2,572

(37)

(37)

63

2,598

(5,100)31,027

(8)

(8)

140

31,15841

(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 andlosses are directly recorded in Net assets and cost of securities sold is calculated using the moving-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)
Tangible fixed assets (excluding lease assets) are depreciated using the declining balance method, except for buildings(excluding leasehold improvement) acquired after April 1, 2008, which are depreciated using the straight-line method.
Individual useful lives are as follows:
Individual useful lives (years)
Buildings

3-50

Machinery and equipment
(2)
(3)

17

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.
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.

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 ofcollectibility.
(2)
Allowance for bonuses
In order to provide for bonuses to be paid to employees, estimated bonus amount attributable to the current fiscal year isrecorded.
(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 thedelivery 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 the current
fiscal year-end.

42

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.
taxes relating to assets are charged to income in the year of acquisition.

Non-deductible consumption(Changes in accounting policies)(Application of accounting standards for business combinations)
Effective April 1, 2015, the Company has applied the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, September 13, 2013) and the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7,
September 13, 2013), etc. As a result, the accounting treatments were changed to record acquisition-related expenses as
expenses for the fiscal year in which they are incurred. With regard to any business combinations executed on and after
April 1, 2015, the accounting treatment is changed to reflect the adjustments to the provisionally allocated acquisition costs
based on the finalized accounting treatment to the financial statements in the fiscal year to which the date of the businesscombination belongs.
The Company has applied the Accounting Standard for Business Combinations in accordance with transitional
treatments stipulated in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations and Paragraph 57-4 (4)of the Accounting Standard for Business Divestitures, prospectively from April 1, 2015.
This change had no impact on the financial statements.
(Balance Sheet)※1

Assets pledged as collateral and corresponding liabilities are as follows.
(1) Assets pledged as collateralPrevious Fiscal Year
(March 31, 2015)21
Cash and deposits(Millions of yen)
Current Fiscal Year
(March 31, 2016)
28

46
598

150
1,134

Real estate held for sale in progress
Other (current assets)

23,876297

32,601－

Buildings
Structures

4,481
149

7,816
418

Machinery and equipment
Tools, furniture and fixtures

3,068
0

10,7020LandConstruction in progress

12,741549

18,153
15

224

224

46,056

71,245

Accounts receivable, trade
Real estate held for saleLand lease rights
Total(2) Corresponding liabilities

Short-term borrowings
Current portion of long-term borrowings

Previous Fiscal Year
(March 31, 2015)
2,733

Long-term borrowings
Total
※2

(Millions of yen)
Current Fiscal Year
(March 31, 2016)
3,014

5,175
29,44011,59642,93437,34957,544

Change in purpose of asset holding
Previous fiscal year (as of March 31, 2015)
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 ¥252 million and Land of ¥445 million were reclassified to Real estate held for sale during the year ended
March 31, 2015.

43

Current fiscal year (as of March 31, 2016)
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 ¥599 million, Structures of ¥6 million, Tools, furniture and fixtures of ¥0 million and Land of ¥1,426 million
were reclassified to Real estate held for sale and Real estate held for sale in progress during the year ended March 31,
2016.
3

Contingent liabilities
The Company provides guarantees for borrowings from financial institutions by the Company’s customers and affiliates.
(Millions of yen)Previous Fiscal Year
(March 31, 2015)

Joint and several guarantees in favor of
financial institutions until the customers’
residential mortgage loans are registeredTAFUKO Co., Ltd.
Takara Leben Tohoku Co., Ltd.

Current Fiscal Year
(March 31, 2016)

12,073

8,168

165
－

93
731

Nikko Kensetsu Co., Ltd.

－

176

Total

12,2399,169

4

The Company maintains overdraft and credit lines agreement with 22 financial institutions (March 31, 2015: 14) in order toensure 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

Current Fiscal Year

(March 31, 2015)(March 31, 2016)

Total maximum amount of overdraft and credit lines

8,213

Outstanding borrowing balance

16,190

4,683

7,956

3,529

8,233

The following items related to transactions with affiliates are included.
Previous Fiscal Year
(From April 1, 2014
to March 31, 2015)
Dividend income from affiliates¥66 million

Current Fiscal Year
(From April 1, 2015
to March 31, 2016)

Difference(Statement of Income)※1¥67 million※2 Selling expenses account for approximately 53% and 50% for the years ended March 31, 2015 and 2016, respectively,
and General and administrative expenses account for approximately 47% and 50% for the years ended March 31, 2015 and2016, respectively.
Major components of Selling, general and administrative expenses and their amounts are as follows.
(Millions of yen)Previous Fiscal Year
(From April 1, 2014
to March 31, 2015)

Current Fiscal Year
(From April 1, 2015
to March 31, 2016)

Advertising expenses
Sales commissions

2,736
56

2,537
194

Sales promotion expenses
Salaries
Provision for allowance for bonuses

1,390
1,145

1,412
1,204

Retirement benefit costs

267
35

259
40

Depreciation and amortization

96

109

44

(Significant Subsequent Events)(Transfer of Assets)
The Company entered into a sales and purchase agreement with Takara Leben Infrastructure Fund Inc. on April 4, 2016,
regarding transfer of mega solar power generation plants owned by the Company.
1. Reason for transfer
One of the key measures under the mid-term management plan announced on May 11, 2015 is to list on the infrastructure
market at the earliest opportunity. The purpose of this transfer is to support the growth of the investment corporation scheduled
to be listed in the market.
2. Description of the transferred assets and the use before the transfer
10 mega solar power generation plants
3. Name of the transferee
Takara Leben Infrastructure Fund Inc.
4. Date of transfer
Scheduled transfer date:June 2, 2016

5. Transfer price¥7,870 million (Total of 10 plants)(Issuance of stock options for equity-based compensation)
The Board of Directors resolved at the meeting held on April 11, 2016 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, 2016, “Announcement concerning issuance of stock options for equity-based
compensation (Class A new share subscription rights)” and “Announcement concerning issuance of stock options forequity-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 9, 2016 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 inaccordance 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 an 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
2,000,000 shares (maximum)(Ratio to the total number of shares issued and outstanding (excluding treasury stock): 1.81%)(3) Acquisition period
From May 10, 2016 to March 31, 2017(4) Total amount of acquisition cost of shares¥1,500 million (maximum)(5) Acquisition method
Market purchase at Tokyo Stock Exchange

45

7．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, 2014
to March 31, 2015)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,910

68,564

1,575

55,523

81.0

Total

1,910

68,564

1,575

55,52381.0

Current Consolidated
Fiscal Year-End(March 31, 2016)
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, 2015)
Amounts
Number of units(Millions of yen)

Real estate sales business

984

36,824842

27,307

74.2

Total

984

36,824842

27,30774.2(Note) The above amounts do not include consumption taxes.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2015
to March 31, 2016)

Segment nameYear-on-Year(%)

Real estate sales business(Millions of yen)

63,383

94.7

Real estate rental business(Millions of yen)

4,307

148.6

Real estate management business(Millions of yen)

3,362

112.9

Total reportable segments(Millions of yen)

71,052

97.6(Millions of yen)

5,215

125.0

(Millions of yen)

76,268

99.1

Other
Total

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

46