Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2012
May 14, 2012

Company name: Takara Leben CO., LTD.
Stock listed on: Tokyo Stock Exchange, First Section
Securities code: 8897 (URL http://www.leben.co.jp)
Representative: Yoshio Murayama, President and Representative Director
Contact: Toshiya Kitagawa, Executive Officer and Chief of Business Planning OfficeTel. +81-3-5324-8720
Scheduled date of annual general meeting of shareholders: June 22, 2012
Scheduled date for commencement of dividend payment: June 25, 2012
Scheduled date for release of annual securities report: June 22, 2012
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, 2012 (From April 1, 2011 to March 31, 2012)(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, 2012

55,191

17.7

5,930

(12.2)

5,071

(8.2)

3,681

(27.6)

Year ended March 31, 2011

46,884

(9.8)

6,757

110.3

5,525

132.3

5,083

126.5

(Note) Comprehensive income: Fiscal year ended March 31, 2012: ¥3,692 million ((27.4)%)
Fiscal year ended March 31, 2011: ¥5,086 million (128.1%)

Yen

Year ended March 31, 2012

Ratio of net
income toshareholders’equityDiluted net
incomeper share

Net income
per shareYen—

116.49Ratio ofRatio of operating
ordinary income income to net
sales
to total assets
%

%

%

18.6

7.7

10.7

9.6

14.4

—
37.6
Year ended March 31, 2011168.14(Reference) Equity in net income of affiliates: Fiscal year ended March 31, 2012: ¥19 million
Fiscal year ended March 31, 2011: ¥19 million(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2012

70,277

21,13830.1

683.33

March 31, 2011

61,054

18,36130.1

566.66(Reference) Shareholders’ equity: March 31, 2012: ¥21,138 million
March 31, 2011: ¥18,361 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, 2012

11,464(792)(2,685)

17,377

Year ended March 31, 2011

7,897

(1,032)(1,191)9,391

2. Dividends
Annual dividends per share
Q1

Q2

Yen

Q3

Yen

Year-end

Yen

Total

Total
dividends(annual)Dividends
payout ratio(consolidate)

Ratio ofdividends to
net assets(consolidated)

Yen

Yen Millions of yen%%

Year ended March 31, 2012

—

3.00

—

6.00

9.00

291

5.4

2.2

Year ended March 31, 2011

—

4.00

—

9.00

13.00

404

11.2

2.0

Year ending March 31, 2013
(forecast)

—

5.00

—

10.00

15.00

12.2

(Note) Year-end dividends per share for the year ended March 31, 2012 include ordinary dividend of ¥7.00 and commemorative dividendof ¥2.00.

3. Forecast of Consolidated Financial Results for the Year ending March 31, 2013 (From April 1, 2012 to March 31,
2013)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

63,950 15.9

Operating income

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen

Net income%

Yen

7,000 18.0

6,100

20.3

3,800

3.2

122.84

Net income per share

4. Other Matters(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
New: None
Excluded: 1 (Name) Takara Live Net Co., Ltd.
(Note) See “Significant Basis for Preparation of the Consolidated Financial Statements” on P20 of the Attachment for details.

(2) Changes in accounting policies and accounting estimates, and restatements(i) Changes in accounting policies due to revision of accounting standards: None(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 December 31, 2012:
33,386,070 shares(b) As of December 31, 2011:
33,386,070 shares(ii) Number of treasury stock at end of year(a) As of December 31, 2012:
2,451,871 shares(b) As of December 31, 2011:
982,771 shares(iii) Average number of shares during the year(a) As of December 31, 2012:
31,607,112 shares(b) As of December 31, 2011:
30,236,227 shares(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for the Year Ended March 31, 2012 (From April 1, 2011 to March 31, 2012)(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, 2012

51,502

19.6

5,474

(16.2)

4,685(12.1)

3,552(29.0)

Year ended March 31, 2011

43,071(11.5)

6,532

140.1

5,331

180.8

5,003

156.5

Net income per share

Diluted net income
per share

yen

yen

Year ended March 31, 2012112.41—

Year ended March 31, 2011165.48—(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

March 31, 2012

67,904

19,70129.0

636.87

March 31, 2011

58,85017,05329.0

526.29(Reference) Shareholders’ equity: March 31, 2012: ¥19,701 million
March 31, 2011: ¥17,053 million

2. Forecast of Non-Consolidated Financial Results for the Year ending March 31, 2013 (From April 1, 2012 toMarch 31, 2013)(Percentage figures represent year-on-year change)

Net sales
Millions of yen

Full year%

59,950 16.4

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

yen

6,600 20.6

5,700

21.6

3,600

1.3

116.38Net income per share* Status of Audit ProceduresThis summary of consolidated financial results for the year ended December 31, 2012 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 ofthis report. Actual results may differ from these forecasts due to various factors in the future.

○Contents of Attachment
1. Operating Results……………………………………………………………………………………………………………
(1) Analysis of Operating Results……………………………………………………………………………………………
(2) Analysis of Financial Position……………………………………………………………………………………………
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Year……………………………………
(4) Business Risks ……………………………………………………………………………………………………………
2. The Takara Leben Group……………………………………………………………………………………………………
3. Management Policy…………….……………………………………………………………………………………………
(1) Basic Management Policy..... ……………………………………………………………………………………………
(2) Medium and Long-Term Business Strategy………………………………………………………………………………
(3) Issues to be addressed.............……………………………………………………………………………………………
4. Consolidated Financial Statements..…………………………………………………………………………………………
(1) Consolidated Balance Sheet………………………………………………………………………………………………
(2) Consolidated Statements of Income and Comprehensive Income ….…………….………………………………………
Consolidated Statement of Income…………………………………………..………………………………………
Consolidated Statement of Comprehensive Income..……..…………………………………………………………
(3) Consolidated Statement of Changes in Shareholders’ Equity……………………………………………………………
(4) Consolidated Statement of Cash Flows ……………………………………………….…………………………………
(5) Note Regarding to the Going Concern Assumption……………………………………..………………………………
(6) Significant Basis for Preparation of the Consolidated Financial Statements………………….…………………………
(7) Additional Information ……………………………………………………………………….…………………………
(8) Notes to the Consolidated Financial Statements…………………………………………………………………………
(Consolidated Balance Sheet)……………………………………………………………………………………………
(Consolidated Statement of Income)……………………………………………………………………………………
(Consolidated Statement of Comprehensive Income)………………………………………..…………………………
(Consolidated Statement of Changes in Shareholders’ Equity)…………………………………………………………
(Consolidated Statement of Cash Flows).........…………………………………………………………………………
(Rental Properties, etc)....………………………………………………………………………………………………
(Segment Information) …………………………………………………………………………………………………
(Special Purpose Companies subject to Disclosure)……………………………………………………………………
(Per Share Information)…………………………………………………………………………………………………
(Significant Subsequent Events)…………………………………………………………………………………………
(Omission of Disclosures)………………………………………………………………………………………………
5. Non-consolidated Financial Statements………………………………………………………………………………………
(1) Balance Sheet.....…………………………………………………………………………………………………………
(2) Statement of Income………………………………………………………………………………………………………
(3) Statement of Changes in Shareholders’ Equity……………………………………………………………………………
(4) Note Regarding to the Going Concern Assumption………………………………………………………………………
(5) Significant Accounting Policies………………………………………………………….………………………………
(6) Additional Information……………………………………………………………………………………………………
(7) Notes to the Non-consolidated Financial Statements……………………………………………………………………
(Balance Sheet).............…………………………………………………………………………………………………
(Statement of Income) …………………………………………………………………………………………………
(Statement of Changes in Shareholders’ Equity) ………………………………………………………………………
(Per Share Information)…………………………………………………………………………………………………
(Significant Subsequent Events)…………………………………………………………………………………………
6. Other........……………………………………………………………………………………………………………………
(1) Changes of Officers………………………………………………………………………………………………………
(2) Production, Orders Received and Sales…………………………………………………………………………………

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1. Operating Results(1) Analysis of Operating Results
Overview
During the consolidated fiscal year ended March 31, 2012, the Japanese economy showed a gradual recovery from theaftermath of the Great East Japan Earthquake in March 2011, but the future of the economy remains uncertain due to therapid appreciation of Japanese yen caused by the financial crisis in European countries and the domestic politicalinstability.
Amid this environment, while customers in the new built-for-sale condominium business industry tended to avoid
certain bay area due to reasons such as liquefaction damages, there continued to be stable and strong housing demands forthe inland and suburban area, which is our strongest area, as a result of various preferential treatments for homeownership and decline in mortgage rates, which we believe is a firm progress towards recovery from the Lehman shock.
The consolidated fiscal year ended March 31, 2012 turned out to be a year characterized by a major change in customer
needs as, for example, natural energy including solar power generation attracted lots of attention.
Under these circumstances, the Company’s business activities stayed focused on its customers as its ultimate
supporters. With its ‘Leben’ series of in-house planned new condominiums as its main brand, it remained committed 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.’ The Company also has been working on product plans capturing the needs of the time andoffered our first ‘solar-powered condominiums that allow individual units to sell surplus energy’ in the Tokyo
metropolitan area and ‘solar-powered condominiums with individual storage batteries that allow individual units to sell
surplus energy’ nationwide.
(i) Operating Results during the Fiscal Yeara) Performance review
At the parent level, Takara Leben Co., Ltd., the built-for-sale condominium business delivered ‘Leben Heim
Hikarigaoka Koen,’ its first ‘solar-powered condominiums that allow individual units to sell surplus energy’ in the Tokyo
metropolitan area, and 1,290 units in Toyama including ‘LUCIDA TOWER’ which is the first project certified under the
Act on Vitalization in City Center. The built-for-sale condominium business achieved stable profit level in line with theoriginal business plan with gross profit margin of 22.2%. Also, the Company ranked 6th, its record high, in the ranking of
the number of new built-for-sale condominium units supplied in the Tokyo metropolitan area in 2011.
In the detached housing business, the in-house execution system was established and 198 units were delivered. The
Company will continue to aim at stable supply.
In the renovation and resale business, sales were in line with the original business plan. The Company will continue topromote purchases at appropriate prices, in line with its market assessment, to supplement its built-for-sale condominium
operations.
In the real estate rental operations, sales were essentially in line with the business plan.
As a result, non-consolidated sales totaled ¥51,502 million, operating income ¥5,474 million, ordinary income ¥4,685
million, and net income ¥3,552 million.
At Leben Community Co., Ltd., the number of units managed under consignment expanded steadily to 29,254.
Especially, of the increase achieved during the fiscal year, 60.8% was accounted for by units entrusted from othercompanies, as efforts to secure other companies’ properties paid off. Peripheral operations also fared well, including
renovation, merchandise sales, and subcontract construction work.
At Tafuko Co., Ltd., business expanded essentially as planned, supported by steady commission income.
In As Partners Co., Ltd., nine existing nursing care facilities are operating and capacity utilization remained high at
92.0%.
Takara Live Net Co., Ltd., (currently Live Net Home Co., Ltd.) was excluded from consolidation as the company’s
shares were sold on September 30, 2011.
As a result of the above operations, overall sales for the entire Takara Leben Group totaled ¥55,191 million, operating
income ¥5,930 million, ordinary income ¥5,071 million, and net income ¥3,681 million.

－

2 －b) Performance by Business Segment＜Real Estate Sales Business＞
Sales from the real estate sales business amounted to ¥50,281 million, up 19.9% from the previous fiscal year,
including sales of ¥44,354 million for 1,292 new build-for-sale condominium units and sales of ¥5,926 million fromsales of detached houses and renovation and resale business.
＜Real Estate Rental Business＞
Revenues from the real estate rental business amounted to ¥1,419 million, down 0.5% from the previous fiscal year,
including rent revenues from the rental of condominium units, offices and store space.
＜Real Estate Management Business＞
Revenues from real estate management business representing management fees from 29,254 units undermanagement amounted to ¥2,282 million, up 6.7% from the previous fiscal year.
＜Other Business＞
Revenues from other businesses consist of commissions from real estate sales agency services and revenues from
repair work and amounted to ¥1,206 million, down 11.9% from the previous fiscal year.

c) Consolidated Performance by Performance Indicators＜Net Sales＞
Net sales of the real estate sales business amounted to ¥50,281 million, including sales of 1,292 new built-for-salecondominium units and sales from new detached housing and renovation and resale business.
Revenues from the real estate rental business amounted to ¥1,419 million, including rent revenues from the rental of
condominium units, offices and store space.
Revenues from the real estate management business representing management fees from 29,254 units undermanagement amounted to ¥2,282 million.
Revenues from other businesses consist of commissions from real estate sales agency services and revenues from
repair work and amounted to ¥1,206 million.
As a result, net sales for the consolidated fiscal year ended March 31, 2012 amounted to ¥55,191 million, up 17.7%
from the previous fiscal year.
＜Cost of Sales＞
Cost of sales increased by 26.1% to ¥41,700 million as the number of units delivered in the real estate sales businessincreased from the previous fiscal year by 203 units to 1,292 units.
＜Selling, General and Administrative Expenses＞
Despite the continued cost-cutting efforts, selling, general and administrative expenses increased from the previous
fiscal year by 6.9% to ¥7,560 million due to an increase in selling expenses resulting from increased contracted ratio
and number of units delivered.
＜Non-Operating Income and Expenses＞
Non-operating income decreased by 8.7% from the previous fiscal year to ¥155 million due to a decrease incommission revenues.
Non-operating expenses decreased by 27.6% from the previous fiscal year to ¥1,014 million due to a decrease ininterest expense as a result of repayment of borrowings for projects.
＜Extraordinary Income and Loss＞
Extraordinary loss increased by 21.2% from the previous year to ¥375 million due to impairment losses and lawsuit
related expenses.
－

3 －As a result, net sales for the consolidated fiscal year ended March 31, 2012 amounted to ¥55,191 million, up 17.7%
on a year-on-year basis; operating income amounted to ¥5,930 million, down 12.2% on a year-on-year basis; Ordinary
income amounted to ¥5,071 million, down 8.2% on a year-on-year basis; and Net income amounted to ¥3,681 million,
down 27.6% on a year-on-year basis.
(ii) Outlook for the Next Fiscal Year (for the year ending March 31, 2013)
After overcoming the extremely tough challenges caused by the Lehman shock, the Company will take a step toward
the new stage starting the next fiscal year, with the business plan for the fiscal year ending March 31, 2013 drafted asfollows:
In the real estate sales business, the new built-for-sale condominium operation expects to deliver 1,630 units including
Leben Revale Yokohama Tsurugamine Hills, Japan’s first ‘solar-powered condominiums with individual batteries thatallow individual units to sell surplus energy.’
The detached housing business plans to continue the supply of detached houses by in-house execution and deliver 132
houses.
The renovation and resale business purchased renovation property in Kawasaki at the end of the current fiscal year for
the first time in three years and plans to sell it during the next fiscal year. The Company will continue to promote
purchases at appropriate prices, in line with its market assessment, to supplement its 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 32,500 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, 2013 are as follows:
Net sales:¥63,950 million (up 15.9% on a year-on-year basis)

Operating income:¥7,000 million (up 18.0% on a year-on-year basis)

Ordinary income:¥6,100 million (up 20.3% on a year-on-year basis)

Net income:¥3,800 million (up 3.2% on a year-on-year basis)(Built-for-sale condominiums: Contracts signed versus number of units scheduled for delivery in the fiscal year ending
March 31, 2013)

As of March 31, 2012

Scheduled for delivery

Of which, number of(units)contracts signed (units)
1,630

984

Contracted ratio (%)60.4(iii) Progress in Implementing the Medium-Term Management Plan, etc.
While the real estate market was partially affected by the Great East Japan Earthquake in March 2011, demands offirst-time buyers for the inland and suburban area, which is our strongest area, are stable, and we managed to conclude
approximately 150 contracts on a monthly basis, at the rate exceeding our budget. We believe this successful outcome
was achieved as a result of steady implementation of various policies, our commitment to our basic concept of ‘ideal,
affordable housing that anyone can buy with confidence’ and our efforts on product plans capturing the needs of the time.
The Company will continue to establish a value chain, to build a rock-solid business foundation, and to makedetermined sales efforts, in order to maximize corporate value.
Although the next fiscal year is the final year under the current medium-term management plan, we will develop the
new medium-term management plan one year ahead of schedule as we are starting a new growth stage from the next
fiscal year.

－

4 －(iv) Achievement of Targeted Operating Index
The Company suffered a large loss in the fiscal year ended March 31, 2009, which depleted much of its equity. In thewake of this, conventional management benchmarks such as ROE and ROA could no longer be used for consistentevaluation; therefore, the management currently focuses on equity and cash and deposits balance.
For the consolidated fiscal year ended March 31, 2012, the equity ratio was 30.1% partly due to purchase of treasury
shares, but both equity and cash and deposits balance increased to the record-high level, with equity increased by ¥2,776
million from the previous fiscal year and cash and deposits balance increased significantly from the previous fiscal year to¥17,394 million.
(2) Analysis of Financial Position
With regard to the assets, liabilities, and net assets of the Group as of March 31, 2012, total assets amounted to ¥70,277
million, an increase of ¥9,222 million from March 31, 2011, mainly due to an increase in cash and deposits and an increase
in inventories from new purchases.
(i) Analyses of Assets, Liabilities and Net Assetsa) Current assets
Current assets amounted to ¥50,919 million, an increase of ¥8,991 million from March 31, 2011, mainly due to anincrease in cash and deposits and an increase in inventories from new purchases.
b) Non-current assets
Non-current assets amounted to ¥19,357 million, an increase of ¥231 million from March 31, 2011, mainly due topurchase of business assets.
c) Current liabilities
Current liabilities amounted to ¥37,372 million, an increase of ¥9,221 million from March 31, 2011, mainly due toan increase in advance received associated with contract conclusions and an increase in notes and accounts payable
trade associated with payment of construction fees.
d) Non-current liabilities
Non-current liabilities amounted to ¥11,765 million, a decrease of ¥2,775 million from March 31, 2011, mainly due
to reclassification between current and non-current liabilities.
e) Net assets
Net assets amounted to ¥21,138 million, an increase of ¥2,776 million from March 31, 2011, mainly due to net
income posted.
(ii) Analysis of Cash Flows
Cash and cash equivalents (“funds”) as of March 31, 2012 amounted to ¥17,377 million, an increase of ¥7,986 million
from March 31, 2011.
a) Cash flows from operating activities
Net cash provided by operating activities was ¥11,464 million (Year ended March 31, 2011: ¥7,907 million), mainly
attributable to net income before income taxes and minority interests and an increase in accounts payable.
b) Cash flows from investing activities
Net cash used in investing activities was ¥792 million (Year ended March 31, 2011: ¥1,032 million), mainly
attributable to purchase of fixed assets.
－

5 －c) Cash flows from financing activities
Net cash used in financing activities was ¥2,685 million (Year ended March 31, 2011: ¥1,191 million), mainly
attributable to repayment of borrowings.
(iii) Cash Flow Indicators
FY2010/3

FY2011/3

FY2012/3

Equity ratio (%)

15.9

30.1

30.1

Equity ratio at market value (%)

12.7

25.9

34.3

Debt repayment period (years)

3.3

4.3

2.8

Interest coverage ratio (times)

11.2

6.8

11.8

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 debt recorded on the Consolidated balance sheet on which interest is paid.
(3) Basic Policy for Profit Sharing and Dividends for the Current and Next Fiscal Years
Returning profits to the shareholder 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.
Specifically, the plans for dividends are set as follows:
1st half dividendYear ended March 31,

Ordinary

2012 (forecast)dividends

Year-end dividend¥4.0¥9.0 (Note)

Total
¥13.0

(Note) Year-end dividend for the year ended March 31, 2012 (forecast) includes ordinary
dividend of ¥7.0 and commemorative dividend of ¥2.0.

Year ended March 31,

Ordinary

2013 (forecast)dividends

1st half dividend

Year-end dividend

Total

¥5.0

¥10.0

¥15.0

With regard to dividends, the Company does not exclusively base its policy on a specific benchmark (payout ratio) but
uses a comprehensive assessment, with an aim to make the Company attractive for long-term investment by numerous
shareholders.
(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.

－

6 －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, thiswill create new burdens for the Group and may potentially impact its performance and business development.
c) Degree of dependency on borrowing
Purchase of land through the completion of construction for condominiums, etc., are funded primarily by loans fromfinancial institutions, and the ratio of interest-bearing debt to total assets is 45.8% 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. Home buyer sentiment 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 theperformance and financial position of the Group.
e) Impact of home loans
The Group makes use of home loans from home financing support organizations and financial institutions for the sale ofcondominiums, etc.; however, when increased interest, changed financial conditions or other unfavorable circumstancesarise, this may potentially impact the performance and financial situation 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
land procurement cost and subcontracting cost fluctuations and interest rate changes. For these reasons, conditions which
impact supply trends may potentially impact the performance and financial position of the Group.
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 difficulties to sales at the price anticipated by the Company. Such situations
may potentially impact the performance and financial situation of the Group.
h) Construction cost
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. This may impact theperformance and financial position of the Group.
i) Insolvency of subcontractors
A construction company entrusted with the construction work may become insolvent. This may delay construction workor force the construction company to default on its contract. Any of these events, as well as failure by the construction
company to provide the due compensation, may affect the performance and financial position of the Group.

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7 －j) 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 situation of the Group.
k) Possibility of lawsuits
From the procurement of land for condominiums, etc., to the completion of construction, the Group takes carefulconsiderations 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, the building plans may have to be changed. Such cases may potentially
impact the performance and financial position of the Group.
l) 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.

2. The Takara Leben GroupThe Takara Leben Group, consisting of the Company, three consolidated subsidiaries and one affiliate, operates real estatebusiness primarily in the Tokyo metropolitan area, including Tokyo, Saitama, Chiba, and Kanagawa prefectures.
The Company mainly engages in the 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.
TAFUKO Co., Ltd., a consolidated subsidiary, primarily engages in loan collection agency business and other commissionbased businesses.
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, primarily engages in claims servicing business pursuant to the Act on
Special Measures concerning the Claims Servicing Business.
As Partners Co., Ltd., an affiliate accounted for by using the equity method, primarily operates residential facilities with nursing
capabilities for elderly people.
Takara Live Net Co., Ltd., (currently Live Net Home Co., Ltd.) was excluded from the scope of consolidation as the company’s
shares were sold on September 30, 2011.
(1) Real estate sales business
The Company primarily engages in planning, development and marketing of ‘Leben-series’ new built-for-sale condominiums
in the Tokyo metropolitan area.
(2) Real estate rental business
The Company engages in rental business for apartments, condominiums, offices and other store spaces in the Tokyo
metropolitan area.
(3) Real estate management business
Leben Community Co., Ltd., a consolidated subsidiary, provides comprehensive management service for built-for-salecondominiums.
(4) Other business・Loan collection agency businessTAFUKO Co., Ltd., a consolidated subsidiary, provides loan collection service.
・Claims servicing business
Marunouchi Servicer Co., Ltd., a consolidated subsidiary, engages in claims servicing business pursuant to the Act on Special
Measures concerning the Claims Servicing Business.
－

8 －・Nursing care business
As Partners Co., Ltd., an affiliate accounted for by using the equity method, operates residential facilities with nursing
capabilities for elderly people. Also, Leben Community Co., Ltd., a consolidated subsidiary, started rehabilitation-focused daycare nursing service business.
・Other businesses
The Group also engages in other businesses such as commissioned real estate marketing agency business.
The Group’s businesses are organized as follows.

Comprehensive
management ofcondominiums, etc.

The parent company

Real estate sales businessCondominium
purchase customer

Loan collection
service business

Consolidated subsidiaryTAFUKO Co., Ltd.

Rental property
management

Real estate rental business
Rental resident

Asset rental

Consolidated subsidiary
Leben Community Co., Ltd.

Consolidated subsidiary
As Partners Co., Ltd.

Provision of nursing
services

User of residential facilities withnursing capabilities
Consolidated subsidiary
Marunocuhi Servicer Co., Ltd.

Investment－

Outside commissioned
management companies

9 －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 moredeeply 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 theenvironment.
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 medium-term business plan “Takara Leben Building Action 2011” for the period ending March 2013 features‘revised tactics and strategies for renewed growth,’ and we believe our performance has been in line with the plan at theend of the second year of the plan. We intend to develop the new medium-term management plan one year ahead ofschedule as we are starting a new growth stage from the next fiscal year.
＜Specific Strategies＞
A．Overview
・Utilizing its competitive superiority in its core areas
The Company will make use of its unique superiority, by strengthening its procurement, merchandising, sales, andfinancing strategies.
・Establishment of a rock-solid business foundation

－

10 －

The Company will establish a solid business base in its core operations, new built-for-sale condominiums, and alsoenhance the short-term collection business to supplement revenues and establish a solid revenue base.
・Steady business cycle and financing strategy
The Company will implement various measures comprehensively, including careful selection of sites for
procurement, reestablishment of business cycle based on steady sales and collection plans, and the use of diversified
financing strategies instead of solely relying on indirect financing.
B．Individual Strategies(i) Product Strategiesa) Area strategies
While maintaining the supply and demand balance in each area, we will focus on supply targeting customers
within narrow range.
b) Product size strategies
While focusing on the supply and demand balance in each area, we will aim at the supply of optimum property
size.
c) Price strategies
Based on the thorough attribute analysis of each area, we will aim at the supply at the appropriate price from theviewpoint of first-time buyers of each area.
(ii) Product sale Strategies
The Company will carry out product planning that captures the needs of the time and provide meticulous customer
service in order to build up a long-lasting relationship with the customers.
a) Sales system
We will improve the sales speed by leveraging the in-house sales force. Also, we will aim to maximize customer
satisfaction through sensitive service which only in-house sales system can provide.
b) Internet marketing
As the Internet has become part of the lives of the first-time buyers in their late 20s and 30s, which is our main
target, we will further enhance the Internet marketing.
During the current fiscal year, the number of requests for brochure increased by 1.1%, and the number of visitors
to show house increased by 8.9% from the previous fiscal year. As a result, the contract ratio achieved via thehomepage increased by 11.2%, and the number of contracts concluded via Internet marketing accounted for 68.3%
of the total number of contracts, demonstrating the considerable strength of Internet marketing.
c) Leben club
The Company will improve the contents and the timeliness of the Leben club members-only page in order to makethe Company’s properties more accessible and attractive to the members.
d) Corporate partnership (Corporate intranet advertising)
The Company will continue to explore new information services matching its tie-up partners’ needs, to increase
the Company’s recognition.
Currently, the Company has corporate partnership with 160 companies comprising 4.5 million people, and there
were 266 referrals from corporate partners during the current fiscal year, of which 72 referrals resulted in a contract,
demonstrating the strong advantageous effect of the Group’s corporate partnerships.
e) Construction planning strategy
The Company will incorporate feedback from its customers into its construction strategy in order to provide
residential environments accommodating the needs of the time.
From the perspective of the use of natural energy, and comfort and security, the Company has been proactively
planning and developing ‘solar-powered condominiums that allow individual units to sell surplus energy’ and thosecombined with storage batteries, Japan’s first ‘solar-powered condominiums with individual storage batteries thatallow individual units to sell surplus energy.’
Also, ‘LUIC PROJECT,’ our standard feature which focuses on water as an essential part of life, offers the water
purifying system ‘Takara-no-Mizu’ and Japan’s first built-in micro-bubble bath system for home use ‘Takara-noMicro-bubble’, and both systems have been receiving a favorable reception.
The Company will continue to provide pleasant residential environment that meets customers’ needs.
C．Product Diversification Strategy(i) Detached Houses Strategy－

11 －The Company began providing detached houses by in-house execution from the previous fiscal year. By
providing high quality housing at low prices, the Company aims to achieve its basic concept of ‘ideal, affordable
housing that anyone can buy with confidence,’ and to supplement its new built-for-sale condominium business as ashort-term collection business.
In terms of the business development in the future, the Company will make business decisions on products,
including custom-built houses, in accordance with the development of the market.
(ii) Renovation Business Strategy
The business volume of renovation business is not high because only carefully-selected properties are sold.
However, the recognition of the ‘Le Art’ series is gradually increasing, and the Company plans to provide stablesupplies.
Also, because there are clearly different needs for renovated properties from the new built-for-sale condominiums,
we consider the renovation business not only as supplementary to the new built-for-sale condominiums but also as a
growing business from which short-term revenue generation can be expected in the same way as the detachedhousing business.
(iii) Resale Business Strategy (purchase and resale business)
Supplementing the new built-for-sale condominium business, the resale operations have demonstrated thesuperiority of short-term collection business. However, the Company considers it as a limited–term business andintends to determine further development by carefully assessing the market environment and considering the balance
between appropriate sales price and procurement cost.
(iv) Income-Generating Properties Strategy
With regard to income-generating properties, the Company plans to make it as further stable stock business withcarefully selected procurement.
D．Group Strategy
In order to build a strong corporate group which will not be affected by external factors, the Company will improveinformation exchange within the Group and establish a corporate structure that can create synergy effects. Especially,
since the Company’s core business, the new built-for-sale condominium business, is a flow-type business, it is essential
for the Company to expand stock-type business such as rental, management service and nursing service business.
Leben Community Co., Ltd., set the mid-term target number of units under management at 30,000 and has alreadyachieved 29,254 as of March 31, 2012. For the coming years, the company considers that it is important to provide
more meticulous customer service to maximize customer satisfaction as well as understand the customers’ specificneeds and provide the group companies with information about such needs.
TAFUKO Co., Ltd., considers that its highest priority issue is to strengthen cohesiveness among the groupcompanies in order to achieve stable business development such as fee revenues.
Marunouchi Servicer Co., Ltd., considers that its highest priority issue is to establish a corporate structure that cancreate synergy effects in valuation, processing and disposal of real estate pledged as collateral.
(3) Issues to be addressed
The Company suffered a significant loss for the fiscal year ended March 31, 2009, mostly because of loss on valuation of
inventories caused by the sub-prime loan problem and the Lehman shock.
The Company returned to its basic concept of ‘ideal, affordable housing that anyone can buy with confidence,’ andimplemented various customer-focused measures which reflected the needs of the time. As a result, the performance has
recovered and cash and deposits balance and equity reached the record-high level.
The Company continues to pursue ‘to secure stable profitability’ and ‘to further strengthen financial position’ in order toestablish a strong corporate structure which can overcome sudden changes in external environment on its own.
With the experience and knowledge from having weathered a number of challenging situations after the burst of the
bubble economy or the Lehman shock, we will nimbly capture the needs of the time and social meaning and make speedy
decision makings, in order to become a sustainable company.

－

12 －

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2011)(March 31, 2012)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, trade

9,414
416

17,394
377

Real estate held for sale
Real estate held for sale in progress※2, ※3 5,259※2, ※3 7,430※2, ※3 23,575※2, ※3 22,863

885
2,415

290
2,608

Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets

(38)

(46)

41,92850,919Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures, net

6,759

6,856

(2,104)(2,319)※2, ※3 4,654※2, ※3 4,537

Tools, furniture and fixtures

175

169

Accumulated depreciation

(141)

(139)

Tools, furniture and fixtures, net

※2 34

※2 29

※2, ※3 13,259※2, ※3 13,487

8
(5)

53
(13)

Land
Lease assets
Accumulated depreciation
Lease assets, net

339

17,951

18,095

49
63

181
－

※2 372※2 272484

453

Investment securities
Long-term loans

137
99

150
89

Deferred tax assets
Other

34
※1 644169※1 616

Allowance for doubtful accounts

(225)

(217)

Total tangible fixed assets
Intangible fixed assets
Lease assets
Software in progress
Other
Total intangible fixed assets
Investments and other assets

Total investments and other assets
Total fixed assets
Total assets

－

13 －

689

808

19,126

19,35761,05470,277

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(March 31, 2011)(March 31, 2012)

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings

3,785

Current portion of long-term borrowings
Lease obligations
Income taxes payable
Advance received
Allowance for bonuses
Allowance for compensation for complete work

※2 10,165※2 3,720※2 5,494※2 16,960※2 15,887

21

62

93
2,326

515
3,794

176
－

197
59

Other

1,068

1,196

Total current liabilities

28,15137,372※2 13,669※2 10,774

Noncurrent liabilities
Long-term borrowings
Lease obligations

33

172

Allowance for employees’ retirement benefits
Allowance for directors’ retirement benefits

149
81

171
76

Asset retirement obligations
Other

18
587

21
548

Total noncurrent liabilities

14,541

11,76542,692

49,138

Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus
Retained earnings

4,949
9,905

4,949
13,266

Treasury stock(1,295)(1,890)Total Shareholders’ equity

18,38021,145

(18)

(7)

(18)

(7)

18,361

21,13861,05470,277

Total liabilities
Net assets

Accumulated other comprehensive income
Net unrealized losses on available-for-salesecurities
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

－

14 －

(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, 2010
to March 31, 2011)
Net sales(From April 1, 2011
to March 31, 2012)

46,88455,191

Cost of sales※1 33,058※1 41,700

Gross profit

13,826

13,490※2 7,069※2 7,560

6,757

5,930

Selling, general and administrative expenses
Operating income
Non-operating income
Interest income

23

5

Dividend income
Commissions received

3
85

3
87

Income from equity method investment
Miscellaneous income

19
37

19
39

Total non-operating income

170

155

Non-operating expenses
Interest expense

1,181

979

Stock issue cost
Miscellaneous losses

126
94

－
35

1,402

1,014

5,525

5,071

Reversal of allowance for doubtful accounts
Reversal of allowance for bonuses

24
4

－
－

Gain on liquidation of Tokumei Kumiai
Prior years adjustments

1
49

－
－

Total extraordinary gains

79

－

※3 3

※3 6

10

－

8
0

10
－

2
－

－
49

※4 251※4 186

Total non-operating expense
Ordinary income
Extraordinary gains

Extraordinary losses
Loss on disposal of fixed assets
Effect of adopting accounting standard for asset
retirement obligations
Loss on valuation of investment securities
Loss on valuation of investments in capital
Loss on sale of investment securities
Loss on sale of subsidiaries’ stock
Impairment loss
Office relocation expense
Prior year taxes
Loss from legal proceedings
Other

0

－

32
－

－
※5 117

0

5

309

375

Income before income taxes and minority interests

5,295

4,695

Income taxes - current
Income taxes refund

140
(12)

571
－

Income taxes – deferred

83

442

Total extraordinary losses

Total income taxes

211

1,014

Income before minority interests

5,083

3,681

Net income

5,083

3,681

－

15 －

(Consolidated statement of comprehensive income)(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
(From April 1, 2011
to March 31, 2011)
Income before minority interests
Other comprehensive income

to March 31, 2012)
5,083

3,681

Net unrealized gains on available-for-sale securities

2

11

Total other comprehensive income

2

※1 11

Comprehensive income

5,086

3,692

(Comprising)Comprehensive income attributable to parent

5,086

3,692

－

16 －

(3) Consolidated Statement of Changes in Shareholders’ Equity(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
(From April 1, 2011
to March 31, 2011)

to March 31, 2012)

Shareholders’ equity
Capital stock
Balance at beginning of year
Changes during the year

2,442

4,819

Issuance of new stock

2,376

－

Total changes during the year

2,376

－

Balance at end of year

4,819

4,819

Capital surplus
Balance at beginning of year

2,572

4,949

Changes during the year
Issuance of new stock

2,376

－

2,376

－

Balance at end of year

4,949

4,949

Retained earnings
Balance at beginning of year

4,952

9,905

Total changes during the year

Changes during the year
Dividends from surplus

(130)

(320)

Net income

5,083

Total changes during the year

4,953

3,361

9,905

13,266(1,295)(1,295)

Balance at end of year
Treasury stock
Balance at beginning of year
Changes during the year
Purchase of treasury stock－－

Total changes during the year

(1,295)

Balance at end of year
Total shareholders’ equity
Balance at beginning of year

8,672

Changes during the year
Issuance of new stock
Dividends from surplus
Net income
Total changes during the year
Balance at end of year

－

17 －

(595)
(595)

(1,890)18,380

4,753

－

(130)
5,083

(320)
3,681

9,707

2,765

18,38021,145－Purchase of treasury stock

3,681

(595)

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
to March 31, 2011)
Accumulated other comprehensive income
Unrealized gains (losses) on available-for-salesecurities
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year
Total accumulated other comprehensive income
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year

(From April 1, 2011
to March 31, 2012)

(21)

(18)

2

11

2

11

(18)

(7)

(21)

(18)

2

11

2

11

(18)

(7)

Total net assets
Balance at beginning of year

8,651

18,361

Changes during the year
Issuance of new stock

4,753

－

(130)
5,083

(320)
3,681

2

(595)
11

9,710

2,776

18,361

21,138Dividends from surplus
Net income－

Purchase of treasury stock
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year

－

18 －

(4) Consolidated Statement of Cash Flows(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
(From April 1, 2011
to March 31, 2011)
Cash flows from operating activities
Net income before income taxes and minority
interests
Depreciation and amortization
Loss on sale of investment securities
Impairment loss
Increase in allowances
Effect of adopting accounting standard for asset
retirement obligations
Interest and dividend income
Stock issue cost
Loss on valuation of investment securities
Loss on sale of subsidiaries’ stock

to March 31, 2012)

5,295

4,695

368
2

319
－

251
85

186
137

10

－

(27)
126

(9)
－

－
1,181

117
979

3
(1)

6
－

8
－

Loss from legal proceedingsInterest expense
Loss on disposal of fixed assets
Gain on liquidation of Tokumei Kumiai

(125)
65

(Increase) decrease in accounts receivable, trade
Decrease in operating loans
Decrease (increase) in inventories
Increase in accounts payable, trade

155
903

Increase in advance received
Other

1,534
(648)

SubtotalInterest and dividend received
Interest paid
Net cash provided by operating activities

38
58(1,577)
6,380

1,469
(286)

9,190

12,57527(1,155)

9
(967)

(163)

Income taxes paid

10
49

(152)

7,897

11,464

(20)
16

(14)
10

0
(883)

1
(612)

4

－

Cash flows from investing activities
Payments into time deposits
Withdrawals from time deposits
Decrease (increase) in short-term loans
Outflow from extending long-term loans

14(1)

Proceeds from collection of long-term loans
Acquisition of tangible fixed assets

(138)
(27)

Acquisition of intangible fixed assets
Acquisition of investment securities
Proceeds from sale of investment securities
Outflow from sale of subsidiaries’ stock resulting inchange of the scope of consolidation
Other

－

19 －

(31)
(12)

3

(100)

(1,032)(792)－

Net cash used in investing activities

(28)
△1)

(0)

(Millions of yen)Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
to March 31, 2011)(From April 1, 2011
to March 31, 2012)

Cash flows from financing activities(3,811)
11,020Net (decrease) increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from sale and lease back transaction(12,875)－(16,129)
219

－
(129)

(595)
(320)

(21)
4,627

Repayment of lease obligations
Issuance of stock
Purchase of treasury stock
Dividends paid
Net cash used in financing activities
Increase in cash and cash equivalent
Cash and cash equivalent at end of year

－

20 －

(41)
－

(1,191)(2,685)

3,717

9,391

※1 9,391※1 17,377

5,673

Cash and cash equivalent at beginning of year

1,378
12,803

7,986

(5) Note Regarding to the Going Concern Assumption
Not applicable.
(6) Significant Basis for Preparation of the Consolidated Financial Statements
1. Scope of consolidation(1)

Number of consolidated subsidiaries: 3
Names of consolidated subsidiaries
Leben Community Co., Ltd.
TAFUKO Co., Ltd.
Marunouchi Servicer Co., Ltd.
Takara Live Net Co., Ltd., (currently Live Net Home Co., Ltd.) which was a consolidated subsidiary for the year
ended March 31, 2011, was excluded from consolidation as the company’s shares were sold during the three months
ended September 30, 2011.

(2)

Names of major nonconsolidated subsidiaries
Not applicable.

(3)

Special purpose companies subject to disclosure
Refer to “Special Purpose Companies subject to Disclosure” for an overview of special purpose companies subject todisclosure, a description of transactions using the special purpose companies, and the transaction volume with special
purpose companies subject to disclosure.

2. Application of the equity method
(1)

(2)

Number of affiliates accounted for using the equity method: 1
Name of the affiliate
AS PARTNERS Co., Ltd.
Nonconsolidated subsidiaries not accounted for using 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.
(ii) Inventories
Inventory is stated at cost based on the specific identification method (Book value is written down due to decline inprofitability).

－

21 －

(2) Depreciation method for major depreciable assets(i) Tangible fixed assets (excluding lease assets)a. Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 2008 are depreciated using thestraight-line method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic useful life
in order to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15

b. Tangible fixed assets other than above
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(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 the 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.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similar manner tooperating lease transactions.
(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.
(Additional information)
The Company started to establish allowance for compensation for complete work from the current consolidated
fiscal year as the Company began delivery of the self-executed constructions in the previous consolidated fiscal year
and the historical data regarding the losses arising from defects after the delivery or compensation service costs became
available. As a result, Cost of sales increased by ¥59 million and Gross profit, Operating income and Ordinary income
and Income before income taxes and minority interests decreased by ¥59 million.
(iv) Allowance for employees’ retirement benefits
Allowance for employees’ retirement benefits is provided based on the retirement benefit obligations as at thecurrent consolidated fiscal year-end.
－

22 －(v) Allowance for directors’ retirement benefits
Allowance for directors’ retirement benefits is provided in the amount payable at the current consolidated fiscal yearend in accordance with the regulations on directors’ retirement benefits (internal regulations).
(4) 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.
(5) 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.
(6) 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. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
However, Consumption taxes of tax exempt consolidated subsidiaries are accounted for using the tax inclusive method.
(7) Additional information(Application of accounting standard for accounting changes and error corrections, etc.)
Effective April 1, 2011, the Company has applied Accounting Standards Board of Japan (ASBJ) Standard No. 24,“Accounting Standard for Accounting Changes and Error Corrections” issued on December 4, 2009, and ASBJ Guidance No.24,“Guidance on Accounting Standard for Accounting Changes and Error Corrections” issued on December 4, 2009, to theaccounting changes and corrections of prior years’ errors.

－

23 －

(8) Notes to the consolidated financial statements(Consolidated Balance Sheet)Previous Consolidated Fiscal Year
(March 31, 2011)

Previous Consolidated Fiscal Year
(March 31, 2012)※1 Assets relating to affiliates are as follows:
Investments and other assets, Other (Affiliates’ stock):※1 Assets relating to affiliates are as follows:
Investments and other assets, Other (Affiliates’ stock):¥27 million※2 Assets pledged as collateral and corresponding liabilities are¥45 million※2 Assets pledged as collateral and corresponding liabilities are

as follows:(1) Assets pledged as collateral
Real estate held for saleas follows:(1) Assets pledged as collateral(Millions of yen)
¥ 3,889

Real estate held for sale in progress

22,707

Buildings and structures

4,304

Tools, furniture and fixtures

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

21,841

Buildings and structures

4,090

Tools, furniture and fixtures

0
12,267

Land(Millions of yen)
¥ 6,0910Land

11,247

Intangible fixed assets (land lease rights)

224

Intangible fixed assets (land lease rights)

224

Affiliates’ stock30

Affiliates’ stock

30

Total

43,423Total

Affiliates’ stock of ¥30 million is eliminated in the
consolidated financial statements.
(2) Corresponding liabilities
Short-term borrowings

43,525Affiliates’ stock of ¥30 million is eliminated in the
consolidated financial statements.
(2) Corresponding liabilities(Millions of yen)
¥ 3,276

Short-term borrowings(Millions of yen)
¥ 5,489

Current portion of long-term borrowings

16,835Current portion of long-term borrowings

15,772Long-term borrowings

13,119Long-term borrowings

10,217

Total

33,232

Notes and accounts payable, trade

1,533

Total
※3 In line with the decision to reclassify part of the real estate

33,011※3 In line with the decision to reclassify part of the real estate

held for development and rent to real estate held for resale,
Buildings and structures of ¥911 million and Land of ¥1,987

held for development and rent to real estate held for resale,
Buildings and structures of ¥19 million and Land of ¥22

million were reclassified to Real estate held for sale andReal estate held for sale in progress during the year ended

million were reclassified to Real estate held for sale during
the year ended March 31, 2012.

March 31, 2011.

Also, in line with the decision to reclassify part of the realestate held for resale to real estate held for self-use, Realestate held for sale of ¥31 million was reclassified to
Buildings of ¥18 million and Land of ¥12 million during theyear ended March 31, 2012.
4 Contingent liabilities (Guarantee liability)

4 Contingent liabilities (Guarantee liability)
Guarantee liability for borrowings from financial
institutions by companies other than consolidated

Guarantee liability for borrowings from financial
institutions by companies other than consolidated

subsidiaries

subsidiaries(Millions of yen)

Joint and several guarantees infavor of financial institutions
until the customers’ residential
mortgage loans are registered
Aruka Co., Ltd.

(Millions of yen)
Joint and several guarantees infavor of financial institutions
until the customers’ residential
mortgage loans are registered
Aruka Co., Ltd.

¥ 2,665

Total

49
2,714

5 The Group maintains overdraft and credit lines agreementwith eight financial institutions in order to ensure efficient

Total
5

funding of operating capital. The unused balance of¥ 5,84648
5,895

The Group maintains overdraft and credit lines agreementwith three financial institutions in order to ensure efficientfunding of operating capital. The unused balance of

－

24 －

borrowings under these agreements as of March 31, 2011

borrowings under these agreements as of March 31, 2012were as follows:

were as follows:(Millions of yen)

(Millions of yen)
Total maximum amount of
overdraft and credit lines
Outstanding borrowing balance
Difference¥ 7,602

Total maximum amount of
overdraft and credit lines

3,983

Total borrowing balance

3,619

－

Difference

25 －¥ 2,978
9782,000

(Consolidated Statement of Income)Previous Consolidated Fiscal Year

Current Consolidated Fiscal Year

(From April 1, 2010 to March 31, 2011)(From April 1, 2011 to March 31, 2012)※1 Inventories are stated at the amount after the write-down
reflecting the decline in profitability. Loss on valuation of※1 Inventories are stated at the amount after the write-down
reflecting the decline in profitability. Loss on valuation of

inventories included in Cost of sales is as follows:¥(4,890) million

inventories included in Cost of sales is as follows:¥(1,499) million※2 Major components of Selling, general and administrative
expenses and their amounts are as follows:
Advertising expenses※2 Major components of Selling, general and administrative
expenses and their amounts are as follows:(Millions of yen)
2,349

Advertising expenses(Millions of yen)
2,645

Sales promotion expenses

1,152

Sales promotion expenses

1,448

Salaries
Provision for allowance forbonuses
Retirement benefit costs
Provision for allowance fordirectors’ retirement benefits
Provision for allowance for
doubtful accounts

1,215

Salaries
Provision for allowance forbonuses
Retirement benefit costs
Provision for allowance fordirectors’ retirement benefits
Provision for allowance for
doubtful accounts

1,198

200
44
39
24

241
42
3
22

Selling expenses account for approximately 51% and General

Selling expenses account for approximately 55% andand administrative expenses account for approximately 49%.

General and administrative expenses account for
approximately 45%.

※3 The breakdown of Loss on disposal of fixed assets is asfollows:※3 The breakdown of Loss on disposal of fixed assets is asfollows:

Buildings and structures
Tools, furniture and fixtures
Total(Millions of yen)0

Buildings and structures(Millions of yen)
5

2

Tools, furniture and fixtures03

Software

0
Total

－

26 －

6

Previous Consolidated Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Consolidated Fiscal Year
(From April 1, 2011 to March 31, 2012)※4 Impairment loss

※4 Impairment loss

asset groups due to the decline in market value of rental
properties.
AmountLocation(Millions of
Use
Type
yen)

asset groups due to the decline in market value of rental
properties.
AmountLocation(Millions of
Use
Type
yen)
Nishi-ku, Saitama,Land
1
Saitama
Midori-ku, Saitama,
Land
4
SaitamaMiyoshi-cho, Iruma-gun,Land
6
SaitamaLand / buildings

Nerima-ku, Tokyo

78

Land

Chiyoda-ku, Tokyo

173
251

Rentalproperties

Total

Idle assets

During the year ended March 31, 2012, the Group recorded
impairment loss of ¥186 million on the following assets orRentalproperties

During the year ended March 31, 2011, the Group recorded
impairment loss of ¥251 million on the following assets or

Land

Furukawa, Ibaraki

1

Land

Ashigara-shimogun,
Kanagawa

7

Land

Oyama, Tochigi

7

Land

Matsudo, Chiba

0

Land

Chiyoda-ku, Tokyo
Total

Rental properties and idle assets are grouped based on an
individual property.

Rental properties and idle assets are grouped based on an
individual property.
The recoverable amount is measured using the net sale value
and use value. Net sale value is assessed based on the※5

The recoverable amount is measured using the net sale value
and use value. Net sale value is assessed based on theappraisal value by a real estate appraiser and use value iscalculated by discounting future cash flows at a rate of 6%.
※5―――――――

Loss from legal proceedings consists of legal settlement of¥110 million and attorney’s fee of ¥7 million.

－

186

The amount consists of Land of ¥186 million.

The amount consists of Buildings of ¥28 million and Landof ¥223 million.

appraisal value by a real estate appraiser and use value iscalculated by discounting future cash flows at a rate of 6%.

156

27 －

(Consolidated Statement of Comprehensive Income)Current consolidated fiscal year (From April 1, 2011 to March 31, 2012)※1 Reclassification adjustments of other comprehensive income and their tax effects.
Unrealized gains (losses) on available-for-sale securities(Millions of yen)
Recognized during the current year

3

Reclassification adjustments

7

Before tax effects

11

Tax effects―

Unrealized gains (losses) on available-for-sale securities

11

Total other comprehensive income

11(Consolidated Statement of Changes in Shareholders’ Equity)
Previous consolidated fiscal year (From April 1, 2010 to March 31, 2011)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
Increase (Shares)
Decrease (Shares)
April 1, 2010
(Shares)Number of shares at
March 31, 2011
(Shares)

Shares issued and outstanding
17,540,333

15,845,737－

33,386,070

17,540,333

15,845,737－

33,386,070

Common stock

982,771－－982,771

Total

982,771－－982,771

Common stock (Note)
Total
Treasury stock(Note) The increase in number of common stock issued and outstanding of 15,845,737 shares is due to issuance of newshares as a result of exercise of new share subscription rights.
2. Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June22, 2010
Board of Directors
meeting on October25, 2010

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

33

Common stock

97

Record date

Effective date2

March 31, 2010

June 23, 20103

September 30, 2010

December 7, 2010

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

Class ofsharesGeneral meeting ofCommonshareholders on Junestock
21, 2011

Total dividends
paid(Millions of yen)
194－

SourceDividend pershare (Yen)

Retainedearnings

6

28 －Record date

Effective date

March 31, 2011

June 22, 2011

Current consolidated fiscal year (From April 1, 2011 to March 31, 2012)
1. Class and number of shares issued and outstanding and class and number of treasury stock
Number of shares at
April 1, 2011
Increase (Shares)
Decrease (Shares)(Shares)Number of shares at
March 31, 2012
(Shares)

Shares issued and outstanding
Common stock

33,386,070－－

33,386,070

Total

33,386,070－－

33,386,070

Common stock (Note)982,771

1,469,100－

2,451,871

Total

982,771

1,469,100－

2,451,871

Treasury stock(Note) The increase in number of common stock in treasury stock of 1,469,100 shares is due to purchase of treasury
stock based on the resolution by the Board of Directors meeting.
2．Dividends(1) Dividends paid
(Resolution)
General meeting ofshareholders on June21, 2011
Board of Directors
meeting on October24, 2011

Class of shares

Total dividends
paid(Millions of yen)

Dividend pershare (Yen)Common stock

194

Common stock

126

Record date

Effective date6

March 31, 2011

June 22, 20114

September 30, 2011

December 6, 2011

(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 ofpaid
Source(Resolution)
shares(Millions of yen)
General meeting ofCommonRetainedshareholders on June
278
stock
earnings
22, 2012－

29 －Dividend pershare (Yen)9

Record date

Effective date

March 31, 2012

June 25, 2012

(Consolidated Statement of Cash Flows)
Previous Consolidated Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Consolidated Fiscal Year
(From April 1, 2011 to March 31, 2012)※1 A reconciliation of Cash and cash equivalent and the※1 A reconciliation of Cash and cash equivalent and theaccount balance on the Consolidated balance sheet(As of March 31, 2011)account balance on the Consolidated balance sheet(As of March 31, 2012)(Millions of yen)
9,414(Millions of yen)
17,394

Cash and deposits

Cash and deposits

Time deposits with maturity
in excess of three months(23)

Time deposits with maturity
in excess of three months

Cash and cash equivalent

9,391

Cash and cash equivalent

2 Significant non-cash transactions(16)
17,3772 Significant non-cash transactions

The amounts transferred from fixed assets to Real estate
held for sale and Real estate held for sale in progress due

The amounts transferred from fixed assets to Real estate
held for sale due to change in the purpose of real estate

to change in the purpose of real estate holding¥ 2,899 million

holding¥ 42 million
The amounts transferred from Real estate held for sale to
fixed assets due to change in the purpose of real estateholding3―――――――¥ 31million
3 Major components of assets and liabilities of the company
excluded from the scope of consolidation as a result of sale ofshares
Details of assets and liabilities of Takara Live Net Co.,
Ltd., (currently Live Net Home Co., Ltd.) at the time of thesale resulting in deconsolidation, selling price of the stock
and proceeds from the sale were as follows:(Millions of yen)

－

30 －

Current assets

366

Fixed assets

19

Current liabilities(270)

Noncurrent liabilities(36)

Loss on sale of stock
Selling price of deconsolidated
subsidiary’s stock
Cash and cash equivalent of
deconsolidated subsidiary

(49)

(130)

Difference：Cash outflow due to sale

(100)

30

(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, 2011, net rent income from these rental properties
amounted to ¥527 million (rent income is recorded in Net sales and major rent expenses are recorded in cost of sales), andimpairment loss amounted to ¥251 million (recorded in Extraordinary losses). During the consolidated fiscal year ended March
31, 2012, net rent income from these rental properties amounted to ¥594 million (rent income is recorded in Net sales and major
rent expenses are recorded in cost of sales), and impairment loss amounted to ¥186 million (recorded in Extraordinary losses).
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, 2010
to March 31, 2011)

Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)

Beginning balance

20,43917,873

Changes during the year

(2,566)(63)

Consolidated balance sheet

Ending balanceMarket value at end of year

17,87317,80919,42819,660(Notes) 1. The carrying amount on the Consolidated balance sheet represents acquisition cost, net of accumulated depreciation
and amortization and accumulated impairment loss.
2. Of the changes during the year, the major increase during the year ended March 31, 2011 was acquisition of realestate (¥858 million), and major decreases include reclassification to Real estate held for sale and Real estate held
for sale in progress (¥2,899 million), Depreciation (¥272 million), and Impairment loss (¥251 million). The major
increase during the year ended March 31, 2012 was acquisition of real estate (¥399 million), and major decreases
include reclassification to Real estate held for sale (¥33 million), Depreciation (¥209 million), and Impairment loss(¥186 million).
3. Market value at end of year is based on the appraisal value by a third party real estate appraiser.

－

31 －

(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 the three business segments: “Real estate sales business,” “Real estate rental business” and “Real estate
management business.”“Real estate sales business” primarily engages in construction and sales of new build-for-sale condominiums and buildfor-sale detached houses 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 segments
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.
3. Net sales, income or loss, assets, liabilities and other items by reportable segments
Previous consolidated fiscal year (From April 1, 2010 to March 31, 2011)(Millions of yen)
Reportable segments
Other
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Total(Note)Total

Net sales
Net sales to external customers

41,948

1,426

2,138

45,5131,370

46,884

Inter-segment sales and transfers

－

8

13

22

351

373

41,948

1,435

2,152

45,536

1,721

47,257

Segment income

5,856

486

252

6,595

245

6,840

Segment assets

31,321

18,161

256

49,7391,177

50,917

Segment liabilities

28,492

12,635

128

41,256896

42,153

Depreciation and amortization

71

273

3

348

9

357

Interest expense

849

309

－

1,159

8

1,167

Increase in tangible and intangible
fixed assets

102

858

15

977

1

978

Total

Other items(Note) “Other” represents business segments which are not included in any reportable segments and includes optional
construction work related to built-for-sale condominium sales and real estate agent services.

－

32 －

Current consolidated fiscal year (From April 1, 2011 to March 31, 2012)(Millions of yen)
Reportable segments
Other
Real estate
Real estate
Real estate
management
sales business rental businessbusiness

Total

Total

(Note)Net sales
Net sales to external customers

50,281

1,419

2,282

53,984

1,206

55,191

Inter-segment sales and transfers

64

10

10

85

113

199

50,345

1,430

2,292

54,0691,320

55,390

Segment income

4,729

604

212

5,546

221

5,768

Segment assets

32,985

18,073241

51,300820

52,121

Segment liabilities

37,354

10,310192

47,857657

48,514

Depreciation and amortization

90

218

3

312

10

322

Interest expense

648

285

－

933

3

937

Increase in tangible and intangible
fixed assets

311

404

3

719

29

749

Total

Other items(Note) “Other” represents business segments which are not included in any reportable segments and includes real estate agent
services and repair work business.
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

45,53654,069Net sale of “Other” category
Elimination of inter-segment transactions

1,721
(373)

1,320
(199)

Net sales on the consolidated financial statements

46,88455,191(Millions of yen)

IncomePrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments

6,595

5,546

Income of “Other” category
Elimination of inter-segment transactions
Operating income on the consolidated financial
statements

245
(83)

221
162

6,757

5,930
(Millions of yen)

AssetsPrevious Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Assets of “Other” category

49,7391,177

51,300820

Elimination of due to parent administrative divisionCorporate assets (Note)(296)
10,433(55)
18,211

Total assets on the consolidated financial statements

61,05470,277(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.

－

33 －

(Millions of yen)
Liabilities

Previous Consolidated Fiscal Year Current Consolidated Fiscal Year

Total reportable segments
Liabilities of “Other” category

41,256896

47,857657

Elimination of due to parent administrative division
(225)
(128)
Corporate liabilities (Note)764
752
Total liabilities on the consolidated financial
42,692
49,138statements(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

348

312

9

10

10

(3)

368

319

Interest expense

1,159

933

8

3

13

41

1,181

979

Increase in tangible and
977
719
1
29
4
55
982
805
intangible fixed assets(Note) Adjustments for increase in tangible and intangible fixed assets represent capital expenditure for the headquarterbuilding and elimination of inter-segment transactions.
b. Impairment loss on fixed assets by reportable segments
Previous consolidated fiscal year (From April 1, 2010 to March 31, 2011)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness

－

251

－

Corporate /OtherElimination
－

－

Total
251

Current consolidated fiscal year (From April 1, 2011 to March 31, 2012)(Millions of yen)

Impairment loss

Real estate sales
business

Real estate rental
business

Real estate
managementbusiness

－

186

－

Corporate /OtherElimination
－

－

Total
186

(Special Purpose Companies subject to Disclosure)
Previous consolidated fiscal year (From April 1, 2010 to March 31, 2011)
1. Overview of special purpose companies subject to disclosure and description of transactions using the special purpose
companies subject to disclosure
In order to diversify the funding sources and clarify project administration, the Company invested in two special purpose
companies (“SPCs”) (formed as a special limited liability company or special purpose company under the Act on Securitizationof Assets). Both SPCs began liquidation process during the consolidated fiscal year ended March 31, 2010 as their objective
was achieved and the liquidation process was complete during the consolidated fiscal year ended March 31, 2011.
With regard to these SPCs, neither the Company nor any of its consolidated subsidiaries had investments with voting rights,
and no director or employee had been seconded to these companies.
2. Transaction volume with the special purpose companies subject to disclosure during the consolidated fiscal year ended March
31, 2011
Disclosure is omitted as the amounts are not material.
Current consolidated fiscal year (From April 1, 2011 to March 31, 2012)－34 －Not applicable.
(Per Share Information)
Previous Consolidated Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Consolidated Fiscal Year
(From April 1, 2011 to March 31, 2012)

Net assets per share

566.66 yen

Net assets per share

683.33 yen

Net income per share

168.14 yen

Net income per share

116.49 yen

Diluted earnings per share is not disclosed as theCompany has no dilutive shares.

Diluted earnings per share is not disclosed as theCompany has no dilutive shares.

(Note) Basis for calculation of net income per share is as follows:
Previous Consolidated Fiscal Year Current Consolidated Fiscal Year
(From April 1, 2010
(From April 1, 2011
to March 31, 2012)
to March 31, 2011)
Net income per share
Net income (Millions of yen)

5,083

3,681

－

－

Net income attributable to common stock (Millions of yen)

5,083

3,681

Average number of shares during the year (thousand shares)

30,236

31,607

Amount not attributable to common stockholders(Millions of yen)

(Significant Subsequent Events)
The Board of Directors meeting held on May 14, 2012 approved to submit to the 40th annual general meeting of shareholders tobe held on June 22, 2012 the proposal to terminate the directors’ retirement benefit plan and introduce stock-based compensationin the form of stock option plan (new share subscription rights) for directors of the Company.
Refer to News Release “Termination of the directors’ retirement benefit plan and introduction of stock-based compensation in
the form of stock option plan for directors” dated May 14, 2012 for more detail.
(Omission of Disclosures)
Notes on lease transactions, related parties transactions, deferred tax accounting, financial instruments, securities, derivativetransactions, retirement benefits, and asset retirement obligations are omitted in this financial release as disclosure of theseinformation is not necessarily required.

－

35 －

5. Non-Consolidated Financial Statements(1) Balance sheet(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2011)(March 31, 2012)

AssetsCurrent assets
Cash and deposits
Accounts receivable, trade

8,579
177

16,499126137※1, ※2 5,237

125※1, ※2 7,380※1, ※2 23,534※1 22,827

568

593

Prepaid expenses
Short-term loans

884
38

978
4

Deferred tax assets
Other

794
217

262
247

Allowance for doubtful accounts

(33)

(11)

40,13649,034

Other receivables
Real estate held for sale
Real estate held for sale in progress
Advance payments

Total current assets
Fixed assets
Tangible fixed assets
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net

6,465

6,532

(2,026)(2,247)※1, ※2 4,438※1, ※2 4,284

99

85

(52)

(45)

※1, ※2 47※1 39

Tools, furniture and fixtures

141

135

Accumulated depreciation

(116)

(113)

Total tools, furniture and fixtures, net

※1 25

※1 21

※1, ※2 13,096※1, ※2 13,332

3
(2)

47
(9)

Land
Lease assets
Accumulated depreciation
Lease assets, net
Total tangible fixed assets

1

38

17,60817,716※1 224※1 224

Intangible fixed assets
Land lease rights
Software141

41

Lease assets
Software in progress

41
63

177
－

Total intangible fixed assets

470

442

Investments and other assets
Investment securities
Affiliates’ stock
Investments in capital

－

36 －

120

133

※1 82

※1 52

1

1

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2011)(March 31, 2012)

Membership
Security deposits and guarantee deposits

14
285

9
269

Long-term loans
Long-term other receivables

148
225

176
206

Deferred tax assets
Other

－
27

140
15

(271)

(295)

Allowance for doubtful accounts
Total investments and other assets

634

Total fixed assets
Total assets

709

18,713

18,86958,85067,904

2,112
1,613

5,968
※1 4,106

Liabilities
Current liabilities
Notes payable
Accounts payable, trade
Short-term borrowings
Current portion of long-term borrowings※1 3,696※1 5,489※1 16,856※1 15,793

Lease obligations
Other payables

17
687

57
684

Accrued expenses
Income taxes payable

78
29

82
425

2,308
225

3,739
276

Unearned revenues
Allowance for bonuses

10
120

10
145

Allowance for compensation for complete work
Other

－
19

59
－

Total current liabilities

27,77536,840Noncurrent liabilities
Long-term borrowings

Advance received
Deposits received※1 13,230※1 10,446

Security deposits and guarantee deposits received
Lease obligations

582
27

543
170

Allowance for employees’ retirement benefits
Allowance for directors’ retirement benefits

103
52

121
54

Asset retirement obligations
Other

18
5

19
5

Total noncurrent liabilities

14,021

11,362

41,797

48,203

Total liabilities

－

37 －

(Millions of yen)Previous Fiscal Year

Current Fiscal Year

(March 31, 2011)(March 31, 2012)

Net assets
Shareholders’ equity
Capital stock
Capital surplus

4,819

4,819

Capital reserve
Other capital surplus

4,817
132

4,817
132

Total capital surplus

4,949

4,949

92

92

Retained earnings
Legal reserve
Other retained earnings
General reserve
Retained earnings carried forward
Total retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Net unrealized losses on available-for-salesecurities
Total valuation and translation adjustments

2,681

6,681

5,823

5,055

8,597

11,829(1,295)(1,890)17,071

19,708(18)(7)

17,053

19,701

58,85067,904(18)

Total net assets
Total liabilities and net assets

－

38 －

(7)

(2) Statement of Income(Millions of yen)Previous Fiscal Year
(From April 1, 2010

Current Fiscal Year
(From April 1, 2011

to March 31, 2011)

to March 31, 2012)

Net sales
Net sales - real estate

41,70350,166

Income from real estate lease
Other income

1,173
194

1,121
213

Total net sales

43,07151,502※1 29,519※1 38,406

Cost of sales
Cost of sales - real estate
Cost of sales - real estate lease
Total cost of sales
Gross profit

692

554

30,21238,961

12,85912,540※2 6,327※2 7,065

6,532

5,474

Interest income
Dividend income

28
9

7
94

Commissions received
Secondment fee received

117
0

81
0

Miscellaneous income

37

35

Total non-operating income

193

219

1,176
126

977
－

Selling, general and administrative expenses
Operating income
Non-operating income

Non-operating expenses
Interest expense
Stock issue cost
Miscellaneous losses

91

30

1,394

1,007

5,331

4,685

Reversal of allowance for doubtful accounts
Reversal of allowance for bonuses

40
0

－
－

Prior years adjustments
Gain on liquidation of Tokumei Kumiai

49
1

－
－

Total extraordinary gains

92

－

※3 2

※3 6

7

－

8

10

0
2

－
－

※4 251※4 186－※5 117

Total non-operating expense
Ordinary income
Extraordinary gains

Extraordinary losses
Loss on disposal of fixed assets
Effect of adopting accounting standard for asset
retirement obligations
Loss on valuation of investment securities
Loss on valuation of investments in capital
Loss on sale of investment securities
Impairment loss
Loss from legal proceedings
Other

0

5

Total extraordinary losses

273

325

Income before income taxes

5,150

4,360

Income taxes - current

5416

Income taxes - deferred

141

390

Total income taxes

146

807

5,003

3,552

Net income－

39 －Cost of Sales Statement
1．Cost of sales - real estate
Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)
Category

Notes

Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Land purchase cost

2, 3

6,578

22.3

11,18529.1

22,12575.0

26,434

68.8

815

2.7

787

2.1

29,519100.0

38,406100.0

Outsourced construction cost
Other
Cost of sales - real estate(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 ¥(4,890) million.
3. Land purchase cost of the current fiscal year includes loss on valuation of inventories of ¥(1,499) million.
2. Cost of sales - real estate lease
Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)
Amount (Millions of yen)

Ratio
(%)

Amount (Millions of yen)

Ratio
(%)

Taxes and public charges

127

18.5

101

18.3

Depreciation and amortization

273

39.4

214

38.6

Maintenance andadministrative expenses

291

42.1

239

43.1

Cost of sales - real estate lease

692

100.0

554

100.0

Category

Notes

－

40 －

(3) Non-consolidated statement of changes in shareholders’ equity(Millions of yen)Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Shareholders’ equity
Capital stock
Balance at beginning of year

2,442

4,819

Changes during the year
Issuance of new stock

2,376

－

2,376

－

4,819

4,819

Capital reserve
Balance at beginning of year

2,440

4,817

Changes during the year
Issuance of new stock

2,376

－

Total changes during the year
Balance at end of year
Capital surplus

2,376

－

Balance at end of year

4,817

4,817

Other capital surplus
Balance at beginning of year

132

132

Changes during the year
Total changes during the year－－

Total changes during the year

Balance at end of year

132

132

Total capital surplus
Balance at beginning of year

2,572

4,949

Changes during the year
Issuance of new stock

2,376

－

Total changes during the year
Balance at end of year

2,376

－

4,949

4,949

Retained earnings
Legal reserve
Balance at beginning of year

92

92

Changes during the year
Total changes during the year－－

Balance at end of year

92

92

1,681

2,681

Funding for general reserve

1,000

4,000

Total changes during the year

1,000

4,000

2,681

6,681

Other retained earnings
General reserve
Balance at beginning of year
Changes during the year

Balance at end of year

－

41 －

(Millions of yen)
Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)
Retained earnings carried forward
Balance at beginning of year

1,950

5,823

Changes during the year
Funding for general reserve(1,000)(4,000)

(130)
5,003

(320)
3,552

5,823

5,055

Balance at beginning of year
Changes during the year

3,724

8,597

Dividends from surplus
Net income

(130)
5,003

(320)
3,552

4,873

3,232

8,597

11,829Treasury stock
Balance at beginning of year

(1,295)(1,295)

Changes during the year
Purchase of treasury stock

－

(595)

Dividends from surplus
Net income
Total changes during the year

3,873

Balance at end of year

(767)

Total retained earnings

Total changes during the year
Balance at end of year

－

(595)

(1,295)(1,890)

Balance at beginning of year
Changes during the year

7,444

17,071

Issuance of new stock
Dividends from surplus

4,753
(130)

－
(320)

Net income
Purchase of treasury stock

5,003
－

3,552
(595)

Total changes during the year
Balance at end of year
Total shareholders’ equity

Total changes during the year
Balance at end of year

－

42 －

9,626

2,636

17,071

19,708(Millions of yen)
Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)
Valuation and translation adjustments
Unrealized gains (losses) on available-for-salesecurities
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year
Balance at end of year

(21)

(18)

2

11

2

11

(18)

(7)

(21)

(18)

2

11

Total valuation and translation adjustments
Balance at beginning of year
Changes during the year
Net changes of items other than shareholders’equityTotal changes during the year

2

11

(18)

(7)

Balance at beginning of year
Changes during the year

7,423

17,053Issuance of new stock
Dividends from surplus

4,753
(130)

－
(320)

Net income
Purchase of treasury stock
Net changes of items other than shareholders’equity

5,003
－

3,552
(595)

2

11

Balance at end of year
Total net assets

Total changes during the year
Balance at end of year

－

43 －

9,629

2,647

17,053

19,701

(4) Notes Regarding to the Going Concern Assumption
Not applicable.
(5) 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)(i) Buildings
Headquarters and business offices, etc. are depreciated using the declining balance method.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
However, buildings (excluding leasehold improvement) acquired after April 1, 2008 are depreciated using the straightline method.
Buildings for rent are depreciated using the straight-line method over the individual estimated economic useful life inorder to reasonably match the corresponding income.
Individual useful lives for buildings for rent are as follows:
Individual useful lives (years)
Reinforced concrete buildings

40

Steel structure buildings

30

Wooden construction

15

Leasehold improvements

15(ii) Other tangible fixed assets
The declining balance method is applied.
Useful lives and residual values are determined in accordance with the Corporate Tax Law of Japan.
(2) 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.
(3) 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 the 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.
Lease assets without ownership transfer starting prior to March 31, 2008 are accounted for in the similar manner tooperating lease transactions.

－

44 －

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
is recorded.
(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
the delivery of self-executed constructions or compensation service costs based on the historical costs related to repair
work of self-executed constructions.
(Additional information)
The Company started to establish allowance for compensation for complete work from the current fiscal year as theCompany began delivery of the self-executed constructions in the previous fiscal year and the historical data regarding thelosses arising from defects after the delivery or compensation service costs became available. As a result, Cost of sales

(4)

(5)

increased by ¥59 million and Gross profit, Operating income and Ordinary income and Income before income taxes
decreased by ¥59 million.
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.
Allowance for directors’ retirement benefits
Allowance for directors’ retirement benefits is provided in the amount payable at the current fiscal year-end inaccordance with the regulations on directors’ retirement benefits (internal regulations).

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. Non-deductible consumption
taxes relating to assets are charged to income in the year of acquisition.
(6) Additional information(Application of accounting standard for accounting changes and error corrections, etc.)
Effective April 1, 2011, the Company has applied Accounting Standards Board of Japan (ASBJ) Standard No. 24,“Accounting Standard for Accounting Changes and Error Corrections” issued on December 4, 2009, and ASBJ Guidance
No.24, “Guidance on Accounting Standard for Accounting Changes and Error Corrections” issued on December 4, 2009, tothe accounting changes and corrections of prior years’ errors.

－

45 －

(7) Notes to the Non-Consolidated Financial Statements(Balance Sheet)Previous Fiscal Year
(March 31, 2011)

Current Fiscal Year
(March 31, 2012)※1 Assets pledged as collateral and corresponding liabilities
are as follows:※1 Assets pledged as collateral and corresponding liabilities
are as follows:(1) Assets pledged as collateral(1) Assets pledged as collateral(Millions of yen)

(Millions of yen)

Real estate held for sale

3,889Real estate held for sale

6,091

Real estate held for sale in progress

22,707

Real estate held for sale in progress

21,841

Buildings

4,268

Buildings

4,059

Structures

36

Structures

30

Tools, furniture and fixtures

0

Tools, furniture and fixtures

0

Land

12,267Land

11,247

Land lease rights

224

Land lease rights

224

Affiliates’ stock30

Affiliates’ stock

30

Total

43,423Total(2) Corresponding liabilities
Short-term borrowings

43,525(2) Corresponding liabilities(Millions of yen)
3,276

Short-term borrowings(Millions of yen)
5,489

Current portion of long-term borrowings

16,835Current portion of long-term borrowings

15,772Long-term borrowings

13,119Long-term borrowings

10,217

Total

33,232

Accounts payable, trade

1,533

Total

33,011※2 In line with the decision to reclassify part of the real estate※2 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 ¥826 million, Structures of ¥15 million andheld for resale to real estate held for self-use, Real estate
held for sale of ¥31 million was reclassified to Buildings ofLand of ¥1,938 million were reclassified to Real estate held
for sale and Real estate held for sale in progress during the¥18 million and Land of ¥12 million during the year ended
March 31, 2012.

year ended March 31, 2011.
3 Contingent liabilities

3 Contingent liabilities

The Company provides guarantees for borrowings fromfinancial institutions by affiliates and others listed below:

The Company provides guarantees for borrowings fromfinancial institutions by affiliates and others listed below:(Millions of yen)
Joint and several guarantees infavor of financial institutions until
the customers’ residential
mortgage loans are registeredTAFUKO Co., Ltd.

515
49

Aruka Co., Ltd.

2,665

Aruka Co., Ltd.
Total

(Millions of yen)
Joint and several guarantees infavor of financial institutions until
the customers’ residential
mortgage loans are registeredTAFUKO Co., Ltd.

3,230

421
48

Total

4 The Company maintains overdraft and credit lines
agreement with eight financial institutions in order to

5,846

6,317

4 The Company maintains overdraft and credit lines agreementwith three financial institutions in order to ensure efficientensure efficient funding of operating capital. The unusedbalance of borrowings under these agreements as of Marchfunding of operating capital. The unused balance ofborrowings under these agreements as of March 31, 2012

31, 2011 were as follows:

were as follows:(Millions of yen)

(Millions of yen)

Total maximum amount of overdraft
and credit lines

7,602

Total maximum amount of overdraft
and credit lines

Outstanding borrowing balance

3,983

Outstanding borrowing balance

Difference

3,619

－

Difference

46 －

2,978
978
2,000

(Statement of Income)Previous Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Fiscal Year
(From April 1, 2011 to March 31, 2012)※1 Inventories are stated at the amount after the write-down
reflecting the decline in profitability. Loss on valuation of※1 Inventories are stated at the amount after the write-down
reflecting the decline in profitability. Loss on valuation of

inventories included in Cost of sales is as follows:¥(4,890) million

inventories included in Cost of sales is as follows:¥(1,499) million※2 Major components of Selling, general and administrative
expenses and their amounts are as follows:
Advertising expenses
Sales commissions※2 Major components of Selling, general and administrative
expenses and their amounts are as follows:(Millions of yen)
2,341

Advertising expenses

125

Sales commissions(Millions of yen)
2,617
211

Sales promotion expenses

1,178

Sales promotion expenses

1,484

Salaries
Provision for allowance forbonuses
Retirement benefit costs

879

Salaries
Provision for allowance forbonuses
Retirement benefit costs

950

Depreciation and amortization
Provision for allowance fordirectors’ retirement benefits
Provision for allowance for
doubtful accounts

71

Depreciation and amortization
Provision for allowance fordirectors’ retirement benefits
Provision for allowance for
doubtful accounts

90

161
26

18
9

212
27

4
3

Selling expenses account for approximately 58% andGeneral and administrative expenses account for

Selling expenses account for approximately 61% andGeneral and administrative expenses account for

approximately 42%.
※3 The breakdown of Loss on disposal of fixed assets is as

approximately 39%.
※3 The breakdown of Loss on disposal of fixed assets is asfollows:

follows:(Millions of yen)Tools, furniture and fixtures
Total(Millions of yen)
Structures
Tools, furniture and fixtures2
2

Software

0
Total

－

47 －

5
0
6

Previous Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Fiscal Year
(From April 1, 2011 to March 31, 2012)※4 Impairment loss

※4 Impairment loss

During the year ended March 31, 2011, the Company
recorded impairment loss of ¥251 million on the following

During the year ended March 31, 2012, the Company
recorded impairment loss of ¥186 million on the following

assets or asset groups due to the decline in market value ofrental properties.
Amount(Millions ofLocationUseType

assets or asset groups due to the decline in market value ofrental properties.
AmountLocation(Millions of
Use
Type
yen)

Land / Buildings/ Structures
Land

Land
Nerima-ku, Tokyo

Chiyoda-ku, Tokyo

Land

173
251

Land

Rentalproperties

Total

78
Idle assets

Rental properties

yen)

Nishi-ku, Saitama,
Saitama
Midori-ku, Saitama,
SaitamaMiyoshi-cho, Iruma-gun,
Saitama4
6

Land

Furukawa, Ibaraki

1

Land

Ashigara-shimogun,
Kanagawa

7

Land

Oyama, Tochigi

7

Land

Matsudo, Chiba

0

Land

Chiyoda-ku, Tokyo
Total

156
186

The amount consists of Land of ¥186 million.
Rental properties and idle assets are grouped based on an

The amount consists of Buildings of ¥27 million, Structuresof ¥0 million and Land of ¥223 million.
Rental properties and idle assets are grouped based on an
individual property.
The recoverable amount is measured using the net sale value
and use value. Net sale value is assessed based on theappraisal value by a real estate appraiser and use value is1

individual property.
The recoverable amount is measured using the net sale value
and use value. Net sale value is assessed based on theappraisal value by a real estate appraiser and use value iscalculated by discounting future cash flows at a rate of 6%.

calculated by discounting future cash flows at a rate of 6%.
5―――――――－※5

Loss from legal proceedings consists of legal settlement of¥110 million and attorney’s fee of ¥7 million.

48 －(Statement of Changes in Shareholders’ Equity)
Previous fiscal year (From April 1, 2010 to March 31, 2011)
Class and number of treasury stock
Number of shares at
April 1, 2010
Increase (Shares)(Shares)

Decrease (Shares)

Number of shares at
March 31, 2011
(Shares)Common stock

982,771－－982,771

Total

982,771－－982,771

Decrease (Shares)

Number of shares at
March 31, 2012
(Shares)

Current fiscal year (From April 1, 2011 to March 31, 2012)
Class and number of treasury stock
Number of shares at
April 1, 2011
Increase (Shares)(Shares)Common stock (Note)982,771

1,469,100－

2,451,871

Total

982,771

1,469,100－

2,451,871(Note) The increase in number of common stock in treasury stock of 1,469,100 shares is due to purchase of treasury stock based on
the resolution by the Board of Directors meeting.
(Per Share Information)
Previous Fiscal Year
(From April 1, 2010 to March 31, 2011)

Current Fiscal Year
(From April 1, 2011 to March 31, 2012)

Net assets per share

526.29 yen

Net assets per share

636.87 yen

Net income per share

165.48 yen

Net income per share

112.41 yen

Diluted earnings per share is not disclosed as the

Diluted earnings per share is not disclosed as theCompany has no dilutive shares.

Company has no dilutive shares.

(Note) Basis for calculation of net income per share is as follows:
Previous Fiscal Year
(From April 1, 2010
to March 31, 2011)

Current Fiscal Year
(From April 1, 2011
to March 31, 2012)

Net income per share
Net income (Millions of yen)

5,003

3,552

－

－

Net income attributable to common stock (Millions of yen)

5,003

3,552

Average number of shares during the year (thousand shares)

30,236

31,607

Amount not attributable to common stockholders(Millions of yen)

(Significant Subsequent Events)
The Board of Directors meeting held on May 14, 2012 approved to submit to the 40th annual general meeting of shareholders tobe held on June 22, 2012 the proposal to terminate the directors’ retirement benefit plan and introduce stock-based compensationin the form of stock option plan (new share subscription rights) for directors of the Company.
Refer to News Release “Termination of the directors’ retirement benefit plan and introduction of stock-based compensation in
the form of stock option plan for directors” dated May 14, 2012 for more detail.

－

49 －

6. 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, 2010
to March 31, 2011)

Segment nameCurrent Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)

Year-on-Year(%)

Number of units

Amounts(Millions of yen)

Number of units

Amounts(Millions of yen)

Real estate sales business

1,723

56,364

1,852

59,421

105.4

Total

1,723

56,364

1,852

59,421

105.4

Current Consolidated
Fiscal Year-End(March 31, 2012)
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, 2011)
Amounts
Number of units(Millions of yen)

Real estate sales business

760

25,384

1,092

34,824

137.2

Total

760

25,384

1,092

34,824

137.2(Note) The above amounts do not include consumption taxes.
(iii) Net sales
Current Consolidated Fiscal Year
(From April 1, 2011
to March 31, 2012)

Segment nameYear-on-Year(%)

Real estate sales business(Millions of yen)

50,281

119.9

Real estate rental business(Millions of yen)

1,419

99.5

Real estate management business(Millions of yen)

2,282

106.7

Total reportable segments(Millions of yen)

53,984

118.6(Millions of yen)

1,206

88.1

(Millions of yen)

55,191

117.7

Other
Total

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

－

50 －