Earnings Results Briefing
For the Year Ended
March 31, 2012
May 16,2012

Year Ended March 2012 Our Initiatives and Results

・・・・・・ 8P

Year Ended March 2012 Summary

・・・・・・ 17P

Year Ending March 2013 Topics

・・・・・・ 23P

Year Ending March 2013
Outlook, Cash Dividends, Future Prospects

・・・・・・ 33P

Using trust built over 40 years toward expectations for the future

1Four Decades of Business
Using trust built over 40 years toward expectations for the future
1972
1982
1988

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

Established Takara Management Co.,Ltd.
(the present Leben Community)
Launched real estate management business
Launched sales of condominiums "Leben Heim"

2000

Changed company name to "Takara Leben Co.,Ltd."

2003

Launched financial brokering business
Established Tafuko Co.,Ltd.

Listed on the first section of theTokyo Stock Exchange

Established Relivel Leben Co.,Ltd.(the presentLive Net Home Co.,Ltd.)（現ライブネットホーム）を子会社化
Launched trustee division for real estate sales
Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

Launched real estate leasing business19942001

2004

2008

Made Marunouchi Servicer its subsidiary

Released new corporate logo

2010

Launched detached housing business(buidt by Takara Leben)
Capital increase based on Japan’s firstrights offering

Listed on the second section of theTokyo Stock Exchange

2011

Joined an open house and began sales ofcustom-built houses

Since its foundation in 1972, Takara Leben has always strived to offer ideal houses anyone can purchase without heavy financial burden andhas provided customers primarily in the Tokyo and surrounding areas with more than 19,000 houses while growing as a company. As wemark our 40th anniversary, we express our gratitude for our customers’ patronage and have begun taking steps toward the decades ahead.

2Condominium Units Sold Compared to the Market
Nationwide (left axis)
Takara Leben Co.,Ltd. (right axis)(Units)150,000(Units)Condominium Units Sold

4,000

133,670

3,500

125,000

3,000

98,037100,000

79,59575,0001,657

50,0001,106

86,582

84,701
1,422

1,605

806

2,000
1,500
1,000

25,000
0

2,500

500
2007

2008

2009

2010

2011

0■in 2011, 86,000 condominium units were sold nationwide, an increase of 2.2%.
→An increase for two consecutive years despite results below the pre-earthquake forecast (100,000units). The expectation for 2012 is 100,000 units (up 15.5%)

Source: Real Estate Economic Institute Co., Ltd.

Our number of condominium units sold has been recovering at a stronger rate compared to the market.
3Our Views 1

Land Purchasing Trends

Overview
 Competing developers decreased after the Lehman
Brothers collapse Large zaibatsu-affiliated companies recentlyentered the suburbs
 We focus on purchasing small- and medium-sizedland to meet area demand4Our Views 2Construction Cost Trends

Overview
Construction costs leveled off after the Lehman
Brothers Collapse
Costs remains unchanged since then
The same level is expected to continue

5Our Views 3

Sales Trends

Overview
 The number of visitors temporarily declined
immediately after the earthquake Both the number of visitors and contracted units
exceeded the previous year in the time before theGolden Week (Japanese holiday week) period
 Demand of first-time home buyers is strong andstable, achieving a monthly average of more than150 contracted units
6Our Views 4

Financial Market Trends

Overview
 Banks loan policies remain strict
 However, banks are proactive about providing
mortgages
 We focus on small- and medium-sized financial
institutions, and new transactions increased.

7

Year Ended March 2012 Our Initiatives and Results8Summary of Medium-Term business plan
Positioning of Year Ended March 2012
Recovery through own efforts Improvement of financial position
Fiscal year

Ended March

Ended March

Ending March2011

2012

2013

Consistent Positioning“Ideal, affordable housing that anyone can buy with confidence”

Purchasingstrategy

Productstrategy

Value chain
Financialstrategy

Salesstrategy

Maximization of corporate value9

Year Ended March 2012 Our Initiatives 1
Supply condominiums that serve the first-time buyer bracket,
which is the largest submarket.
Main targets

4.0–6.0 million annual income bracket ( first-time buyer bracket )（Buyer who buy condominiums by the Life Cycle(enroll in school, marriage, childbirth) )Percentage of rented households in the Tokyo metropolitan Area
40.4% of 13,100 thousand households (5,290 thousand households) rentedPercentage of target households in the rented
47.8% of 5,290 thousand households are 4.0-6.0 million annual income bracket(target households)

Source: Ministry of Internal Affairs and Communications, 2008 Housing and Land Survey

Purchasing Strategy that suits Lifecycle Needs.
(%)

100

Carefully select purchases based on “three criteria”

Progress of purchases
100.0

100.075

Year ending March 2013
United scheduled fordelivery ：1,630 units
100% purchased

１２50250

Year endingMarch 2013

Year endingMarch 2014

Year ending March 2014
United scheduled fordelivery ：about 1,600 units
100% purchased

３Earnings Criteria
Ensure bottom line with gross marginof around 25%Location Criteria
Near stations (within walking distance)
Ease of access to central Tokyo
Near schools, parks

Supply & Demand Criteria
Thorough area marketing
Area-specific purchasing that focuseson the balance of supply and demandand emphasizes area demand!

10

Our Initiatives 2: Unit-based Solar-powered Condominiums“ Unit-based Solar-powered Condominiums ”
First condominiums in the Tokyo metropolitan area to use “solar power generationthat enables individual condominiums to sell electric power”
Japan’s first unit-based solar-powered condominiums with individual storage ofelectric power
Six solar panels per unit
Six solar panels for each unit are installed on therooftop of the condominium, supplying 1.26 kW ofpower generated directly to each household. Any
surplus power can be sold to power companies.
Sellable
extra power
makes iteconomicalEffective use ofsolar power isenvironmentallyfriendly

There are nocomplicatedoperations
Simple and reliable

Features of Power Storage System
The combination of storage and sale of electricity
is enabled by limiting the use of storage batteries
to emergencies
Power supply automatically switches to thestorage battery during temporary blackouts
Solar power can be charged directly to the storage
battery during blackouts

11Our Initiatives 3: Resort Condominiums and Custom-built Houses
LEBEN RESORSIA resort condominiums completed
LEBEN RESORSIA Atami Seaside Tower

LEBEN RESORSIA Vesti Blue

Completed Oct. 2010■10-min. walk from Atami Station on theJR Tokaido and Tokaido Shinkansen lines■Reinforced concrete structure (seismicisolation), partially reinforced concretestructure, and steel-frame structure(20 stories)■115 units in total

Sales began after theLehman Brothers collapse
Seismic isolation structure andnatural hot springs are popularCompleted Mar. 2012
■ 14-min. walk from Yugawara
Station on JR Tokaido Line
■Reinforced concrete structure(7 stories aboveground andone basement floor)■221 units in total

Common area facilities thatcreate extraordinary settings
Ocean view from entire facilities
Six natural hot springs

Our own construction, custom-built houses
Features of Takara Leben’s custom-built houses Standard specifications◆Environmentally friendly specifications that
focus on light, water, and air◆Reasonable prices even with the same
specifications as large housing
manufacturers◆Safe and reliable design focusing ondisaster prevention① Sellable solar power system② Storage battery system③ Full-building air conditioning
system
④ Takara No Mizu, Micro-Bubble
System
⑤ Vibration control damper, etc.

Realizing ideal houses anyone can buy without heavy financial burden, even for detached houses
12Results 1
Highest Net Assets and Cash and Cash Equivalents Ever!
(Million yen)

 Total Assets

120,000

08/3 Year-end 99,842 Million yen
12/3 Year-end 70,277 Million yen

Total Assets
99,842(decrease 29,565Million yen)

100,000

 Debts（ interest-bearing liabilities）
Total Assets
70,27780,00008/3 Year-end 63,425 Million yen
12/3 Year-end 32,156 Million yen(decrease 31,269 Million yen)

 Net Assets
08/3 Year-end 19,318 Million yen
12/3 Year-end 21,138 Million yen

60,000Debts(increase 1,820 Million yen)

63,425
Debts

40,000Total assets and debts were reduced
and net assets were a record high32,156

Cash and cash equivalents
20,000Net Assets

Net Assets

19,31821,1380Year ended
March 2008

Year ended
March 201208/3 Year-end 12,935 Million yen
12/3 Year-end 17,394 Million yen(increase 4,459 Million yen）

Cash and cash equivalents also
again hit a record high13

Results 2 : Net Assets（Million yen ）25,000Change in Net Assets at End of Year
( Year ended March 2008 ― Year ended March 2012 )21,13820,00019,31818,361

15,000

8,651

10,000

6,420
5,000

0
Year ended
March 2008

Year ended
March 2009

Year ended
March 2010

Year ended
March 2011

Year ended
March 2012

Year ended March 2012 Net Assets 21,138 million yen14Results 3 : Cash and cash equivalents（Million yen ）20,000Change in Cash and cash equivalents at End of Year
( Year ended March 2008 ― Year ended March 2012 )

17,39417,50015,00012,935
12,5009,414

10,000
7,500
5,000

3,865

3,766

Year ended
March 2009

Year ended
March 2010

2,5000Year ended
March 2008

Year ended
March 2011

Year ended
March 2012

Year ended March 2012
Cash and cash equivalents 17,394 Million yen15

Results 4 : Supply Ranking
2011 Supply Ranking in the Tokyo metropolitan area
Based on Number of Condominium Units Supplied(rank) 16th591315th

16th

172007

Tokyo
Metropolitan Area

11th12th2008

2009

2010

ranked 6th2011
Source: Real Estate Economic Institute Co., Ltd.

Unit-based Solar-powered Condominium Supply Ranking for 2011
Based on Number of Condominium Units Supplied

Nationwide
ranked 1st
Source: Real Estate Economic Institute Co., Ltd.

LEBEN REVARE Yokohama Tsurugamine Hills

16

Year Ended March 2012 Summary

17

Consolidated Income Statements（Unit Amount=Million yen ）Year ended
March2011

Year endedMarch2012

YOYchange(%)

Net sales

46,88455,191

17.7%

Operating profit

6,757

5,930

△12.2%

Ordinary profit5,525

5,071

△8.2%

Net income

5,083

3,681

△27.6%

18

Segment Information 【 Breakdown of Real Estate Sales Business 】 (Reference)（Unit Amount=Million yen ）Year endedMarch
2011

Year endedMarch2012

YOYchange(%)

Real estate sales
business

41,94850,281

19.9%

Real estate rental
business

1,426

1,419

△0.5%

Real estate
managementbusiness

2,138

2,282

6.7%

Other businesses

1,370

1,206

△11.9%

19

Consolidated Balance Sheets（Unit Amount=Million yen ）Year ended March2011
Current assets

Year ended March2012

YOY change ( % )41,92850,91921.4%Cash and cash equivalents

9,414

17,39484.8%

Inventories

28,83430,294

5.1%

Real estate held for sale

5,259

7,430

41.3%

Real estate for sale underconstruction

23,57522,863△3.0%

Fixed assets

19,126

19,357

1.2%

Total assets

61,05470,277

15.1%

Current liabilities

28,15137,37232.8%

Notes and accounts payable, trade

3,785

10,165168.6%

Debts（short-term borrowings, longterm debt within one year）

20,68021,381

3.4%

14,541

11,765△19.1%

13,66910,774△21.2%

Total liabilities

42,692

49,138

15.1%Net assets

18,361

21,13815.1%

Capital

4,819

4,819

―

Other shareholder equity

13,541

16,318

20.5%

Total liabilities and net assets

61,05470,277

15.1%

Fixed liabilities
Long-term borrowings

20Consolidated Statements of Cash Flows（Unit Amount=Million yen ）Year ended March
2011

Year ended March2012

Net income before tax adjustments

5,295

4,695

Cash Flow from operating activities

7,897

11, 464

Cash Flow from investing activities△1,032△792

Cash Flow from financing activities△1,191△2,685

Increase (decrease) in cash andcash equivalents

5,673

7,986

Cash and cash equivalents at
beginning of year

3,717

9,391

Cash and cash equivalents at endof period

9,391

17,37721

Stock Price Index

Year ended
March2010

Year ended
March
2011

Year ended
March2012

Earning per share (yen)135.56168.14116.49book-value per share(yen)522.51566.66683.33

16,557,647

30,236,227

31,607,112

Average number ofshares outstanding
during the term

22Year Ending March 2013 Topics

23

Year Ending March 2013 Business Plan
Final Fiscal Year of Medium-term Business PlanAs the first step toward regrowthPlan products in preparation for the future that will increase overall
added value in order to further increase corporate value- Business plans Delivery of 1,630 units is planned in new condominium business
Delivery of 132 units is planned in detached house business
Aim to establish more stable stock business in real estate leasing
Target 32,500 units of contract management in real estate management24Units for delivery(Units)
2,000
1,625

1,630(Forcast)

1,500

1,183
1,151

1,290
1,089

1,000984Units Contracted
5000Year ended Year ended Year ended Year ended Year ended Year endingMarch 2008 March 2009 March 2010 March 2011 March 2012 March 2013
(Forecast) Delivery of 1,630 units is planned in new condominium business
60.4% of units(984 units) for delivery Year ending March 2013 contracted(at the year end of March 31, 2012) Delivery of 132 units is planned in detached house business25

Development Examples
1st inJapan*Unit-based Solar-powered Condominiums with Individual Storage of Electric Power* Source: Real Estate Economic Institute Co., Ltd.

LEBEN REVARE Yokohama Tsurugamine Hills
Completed in April 2012 Compound plan that includes 99 units (1st bldg.), 59 units (2nd bldg.),and approx. 40 houses
 Equipped with Japan’s first individual power storage system• Allows both storage and sale of power• Power supply automatically switches to the storage battery during temporary blackouts• Solar power can be charged directly to the storage battery during blackouts

Six solar panels for each unit are installed on the rooftop of the condominium 26

Development Examples
Spacious Living Area over 100 m2
LEBEN REVARE Minamiosawa Hills, Terrace
Complete in June 2012

１２０ Units
Sold Out Premises over 15,000 m² on a hill with a magnificent panoramic view Complete common area facilities such as 100% parking on premises,
Kitchen Stadium, theater room, guestroom
27

Development Examples
1st inSaitama!

*Condominiums with Twin Solar and Power Storage System* Source: Real Estate Economic Institute Co., Ltd.

LEBEN HEIM Toda Sorarie Complete in Novenber 2012

175 Units

Twin Solar( Solar Power System and EcoCute）

 1st in Saitama: Condominium with twin solar and power storage system is economic andenvironmentally friendly Adds colors to your living; various convenient common facilities help connect residents
 Bright living space with sunlight from southeast and southwest Functional floor plan with large
storage capacity28

Development Examples
Takara Leben’s Promotional Activities for Regional Cities
LEBEN HEIM Nagano The Tower Complete in December 2012

87Units

15-story earthquake-resistant tower

Convenient Nagano City areas

Nagano Station area in the south and Zenkoji Temple
in the northThe environment with Ito Yokado, city hall, Nagano Chuo
Hospital, etc. in the neighborhood provides daily
convenience in addition to functions of the center of thecity and prefecture
・11-min. walk from Nagano Station on JR Nagano Shinkansen
・3-min. walk from Shiyakushomae Station on Nagano Dentetsu Line29

Brand Renovation
Merge Ex-condominium Brands into New Brand
Ex-condominium Brands

LEBEN HEIM
Our mainstay brand,with thorough attention tofamily lifestyles

LEBEN SQUAREFrom just a residential area
to a residential area whereresidents can enjoy life.

LEBEN CITIO
Offering an urban lifestylefor singles and couples
with no children

LEBEN REVALE
Designer condominiums tostimulate your imagination

LEBEN RESORSIA
New concept resort
condominiums that meldleisure and living30Brand Renovation: New Condominium Brand – LEBEN

We are developing our products as the Leben series to help our customers
identify our condominiums and also based on our corporate stance of thinking
about the lives (leben is the German word for life) of our customers.
These condominiums are stylish yet they accommodate family life.

31

Corporate Character : Lebe

What is Lebe?
Like Zashikiwarashi, a protective deity of the home, Lebe is a gentle
fairy that moves into happy homes. He is fun, likes children, andplays with them, but sometimes he can be a trouble-maker whohides things and uses the bath without permission.
Lebe is a deity that protects home, but children only think of him asa funny friend.

Lebe’s Website

http://www.takaraleben.com/

32

Year Ending March 2013
Outlook, Cash Dividends, Future Prospects

33

Year Ending March 2013 Outlook (Consolidated)（Unit Amount=Million yen ）Year ended
March 2012

Year ending
March 2013
Full-year Forecast

YOY change

Net sales

55,191

63,95015.9％

Operating profit

5,930

7,000

18.0％

Ordinary profit

5,071

6,100

20.3％

Net income

3,681

3,800

3.2％

34Cash Dividends, Preferential treatment
Cash Dividends ・ Preferential treatment （ gift certificates ）1st half dividends

Year ended
March 2012

Year-end dividends

４yen

９ yen

１３ yen５yen

１０ yen１５ yenForecast

Year ending
March 2013

Total

Forecast

gift certificates forpackages of rice

100 shares or more to lessthan 1,000 shares

1,000 shares or more

2ｋｇ（880Yen）

5ｋｇ（2,200Yen）

35

Future Prospects
Development of New Medium-Term Business Plan
Aug. 2010 New three-year medium-term business plan: Takara Leben-Building Action 2011

Various measures implemented to redevelop strategies/tactics for regrowth
Recovery of financial performance: Balance of cash and cash equivalents
and net assets reached the highest level everFall 2012

New medium-term business plan will be developed

New medium-term business plan will be developed
during the fiscal year ending March 2013,
one year ahead of the plan36

Long-Term Prospects
Response to aging society
Estimated number of households inJapan in the future (nationwide)

Promotional Activities for Regional Cities

Number of households 65 or above
Number of households of singles 65 or above

Resort condominium(thousand households)20,000
15,00010,0005,00001990

2000

2010

2020

LUCIDA TOWER（TOYAMA City）

2030

LEBEN HEIMNAGANO the Tower

LEBEN RESORSIA
Atami Seaside Tower

Source: National Institute of Population and Social Security Research, March 2008

Age distribution of property holders (percentage of our property holders aged 50 or above)
Condominiums
for first-time buyer bracket

12％

6% 13%6%

LUCIDA TOWER(Toyama city)

45％

LEBEN RESORSIA
Atami Seaside Tower

76％

3%
14%

5%
4%

21%
54%

56%

20%

24%

Twenties
Thirties
Forties
Fifties
Aged 60 orabove

22%
25%

23%

Central Region of Regional Cities

20%

9%

15%

29%
31%

42％

LEBEN REVALE
SAKADO RITZ

Resort condominium

Good Location in the Suburbsof Tokyo metropolitan area

Applied to future condominium development

37Enquiries Relating to These Materials
Marketing Planning Office
Management Planning Section

E-mail：irinfo@leben.co.jp

These materials were prepared to provide information regarding business performance for the year ended March 31, 2012 and do notconstitute a solicitation for investment in securities issued by Takara Leben Co., Ltd. These materials were prepared based on data
available as of March 31, 2012. These materials, as well as answers, projections, estimates, and other information provided in thesubsequent question and answer session are based on Takara Leben's best judgment as of the preparation of this material, and do notconstitute a guarantee or promise that anything contained within will be realized or achieved, nor do they provide any guarantees orpromises with regard to the accuracy or completeness of the information. The content of these materials is subject to change without prior notice.