First Quarter Consolidated Financial Reportfor the Three Months Ended June 30, 2021 (Japan GAAP)
July 30, 2021

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

First Section of the Tokyo Stock Exchange
8897
https://www.leben.co.jp
Kazuichi Shimada, Representative Director, CEO, President Executive Officer
Masashi Yamamoto, Director, CFO, General Manager of the Administration Headquarters
Tel: +81-3-6551-2130

Scheduled date for release of Quarterly Report:
Scheduled date for commencement of dividend payments:
Has the Company prepared supplementary briefing materials for the Quarter:
Has the Company held briefings concerning its quarterly financial results:

August 6, 2021
-No
No

1. Consolidated Operating Results for the Three Months Ended June 30, 2021
(April 1-June 30, 2021)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net income
Net Sales

Operating Income

Ordinary Income

attributable toowners of parent%

Millions of yen

Millions of yen%

Millions of yen%

Millions of yen%

Three months ended June 30, 2021

18,337

－

(911)

－

(1,282)－(1,093)－Three months ended June 30, 2020

15,717

28.9

(194)

－

(273)

－

(296)

－

(Note) Comprehensive income: Three months ended June 30, 2021 (¥901) million (－%) / Three months ended June 30, 2020(¥112)

million (－%)
Net Income per
Share

Diluted Net Income
per Share

Yen

Yen

Three months ended June 30, 2021

(10.06)－

Three months ended June 30, 2020

(2.74)－(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter of the current fiscal year, the figures for the first quarter of the fiscal year ending March
31, 2022 are after the application of the said accounting standard, etc., and the percentage change from the same quarter of theprevious year is not stated.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of June 30, 2021

229,199

52,68822.8

As of March 31, 2021

204,315

54,632

26.5(Reference) Shareholders’ equity at end of period: June 30, 2021: ¥52,247 million / March 31, 2021: ¥54,194 million(Note) As the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter of the current fiscal year, the figures for the first quarter of the fiscal year ending March
31, 2022 are after the application of the said accounting standard, etc., and the percentage change from the same quarter of theprevious year is not stated.

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

Year Ending March 31, 2021－

Year Ending March 31, 2022

－

3Q
Yen

Year Ending March 31, 2022 (Forecast)Year-End
Yen

Total

Yen

Yen

4.00

－

10.00

14.00

4.00

－

10.00

14.00

(Note) Has the Company changed its dividend forecast for the current quarter: No

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 2022
(April 1, 2021-March 31, 2022)
Net Sales

Full year

Operating Income(Percentage figures represent year-on-year change)
Net income
Net Income per
Ordinary Income
attributable toShareowners of parent

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

158,600

－

7,900

－

7,100

－

4,800

－

44.18

(Note) Has the Company changed its consolidated forecast during this quarter: No
As the Company will apply the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc.
from the beginning of the fiscal year ending March 31, 2022, the consolidated financial forecast above is the amount after theapplication of the said accounting standard, etc., and the percentage change from the previous fiscal year is not stated.

*Notes(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation) : Yes
Newly consolidated companies 1 company (Leben Clean Energy Co.,Ltd.)
Newly excluded companies (--)
(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated
Financial Statements (Changes in Significant Subsidiaries during the Period under Review) " on page 10 of the attachedmaterials.

(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: Yes
B. Changes in accounting policies other than those in (A): No
C. Changes in accounting estimates: No
D. Restatement: No(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes to Quarterly Consolidated
Financial Statements (Change in Accounting Policy)" on page 10 of the attached materials.

(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

Three months ended June 30, 2021:

121,000,000 shares

As of March 31, 2021:

121,000,000 sharesb.

Three months ended June 30, 2021:

12,344,907 shares

As of March 31, 2021:

12,344,907 sharesc.

Three months ended June 30, 2021:

108,655,093 shares Three months ended June 30, 2020 :

108,412,693 shares*This quarterly earnings report is exempt from the quarterly review based on the Financial Instruments andExchange Act.
*Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

Attachments Table of Contents
1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter .......................................... 2(1) Qualitative Information Pertaining to Consolidated Operating Performance ..................................................... 2(2) Qualitative Information Pertaining to Consolidated Financial Position ............................................................. 3(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results ........................................... 4
2. Quarterly Consolidated Financial Statements ........................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 8
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period ................................................................................................................... 8
Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period ................................................................................................................... 9(3) Notes on Quarterly Consolidated Financial Statements.................................................................................... 10(Notes on Assumption of Going Concern) ....................................................................................................... 10(Notes on a Significant Change in Shareholders’ Equity) ................................................................................ 10(Changes in Significant Subsidiaries during the Period under Review) ......................................................... 10(Change in Accounting Policy) ....................................................................................................................... 10-1-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
In the first-quarter of the fiscal year ending March 31, 2022, the Group continued to take thorough measures toprevent infection and engage in various businesses, despite the gradual progress of vaccinations against the newcoronavirus, as the outlook for the new coronavirus infection remains uncertain due to the lack of prospects for its
containment. As a result, we have continued to implement various businesses with thorough measures to prevent
infection.
a. Performance by business segment
Effective from the first quarter of the current fiscal year, the Company has changed the name of its reportablesegment from "Electric Power Generation Business" to "Energy Business. This change is a change in the name ofthe segment and has no impact on the segment information.
In the real estate sales business, sales in this segment totaled 11,302 million yen (10,496 million yen in thesame period of the previous fiscal year), due to new the built-for-sale condominiums business, sales of profitablereal estate, new detached house sales and sales of used condominiums.
In the real estate rental business, sales in this segment amounted to 1,441 million yen (1,391 million yen in thesame period of the previous fiscal year) due to rental income from condominiums, and offices.
In the real estate management business, sales from the management of 67,064 units of residential
condominiums were 1,438 million yen (1,355 million yen in the same period of the previous fiscal year).
In the energy business, sales totaled 2,646 million yen (1,514 million yen in the same period of the previous
fiscal year), mainly due to revenues from the sale of electricity generated by electric power generation facilities.
Sales from other businesses amounted to 1,508 million yen (958 million yen in the same period of the previous
fiscal year), mainly revenues from construction work, large-scale repair work, and commission income, etc.
As a result, Net sales for the first-quarter year-to-date period of the current consolidated fiscal year amounted
to 18,337 million yen (15,717 million yen in the same period of the previous year). Operating loss amounted to
911 million yen (194 million yen operating loss in the same period of the previous year). Ordinary loss of 1,282
million yen (273 million yen ordinary loss in the same period of the previous year). And net loss attributable toowners of parent of amounted to 1,093 million yen (296 million yen net loss attributable to owners of the parent
in the same period of the previous year).
Effective from the first quarter of the current fiscal year, the Company has adopted "Accounting Standard for
Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. Therefore, explanations regarding
operating results for the first quarter of the current fiscal year are provided without stating the amount of increaseor decrease compared to the first quarter of the previous fiscal year or the percentage change from the samequarter of the previous fiscal year.
For details, please refer to "2. Quarterly Consolidated Financial Statements (3) Notes on Quarterly
Consolidated Financial Statements (Change in Accounting Policy)".

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

b. Contracted ratio status
With regard to sales performance in the first-quarter year-to-date period of the current consolidated fiscal year,
contracts were concluded for 1,268 units, compared with a full-year target of 1,800 units scheduled for delivery.
The contract ratio was at 70.4%.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Number of contracts
Units scheduled Number of contracts
Contracted
signed from April 1for delivery
signedratio (%)
June 30, 2021
(units)(units)(units)Three months ended
June 30, 2020

－

－

－

299

Three months ended
June 30, 2021

1,800

1,268

70.4

514

*In the previous fiscal year, the full-year business plan had not yet been announced, so the information is not provided.

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Group at the end of the first-quarter consolidated
accounting period under review, total assets were ¥229,199 million, an increase of ¥24,883 million comparedwith the end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventories
associated with new purchases.

(Current Assets)
Current assets increased ¥16,197 million compared with the end of the previous consolidated fiscal year to¥141,884 million. This mainly reflected an increase in inventory in conjunction with new purchase.
(Fixed Assets)
Fixed assets increased ¥8,695 million compared with the end of the previous consolidated fiscal year to¥87,227 million, mainly due to an increase in business assets resulting from changes in the scope of consolidationand purchases of business assets, etc.
(Current Liabilities)
Current liabilities increased ¥19,897 million compared with the end of the previous consolidated fiscal year to¥75,547 million, mainly due to increase in short-term borrowings and the reclassification of short term and longterm borrowings payable.
(Fixed Liabilities)
Fixed liabilities increased ¥6,930 million compared with the end of the previous consolidated fiscal year, to¥100,964 million, mainly due to an increase in borrowings from a change in the scope of consolidation and anincrease in borrowings resulting from new purchases, etc.

-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(Net Assets)
Total net assets amounted to ¥52,688 million, down ¥1,944 million from the end of the previous consolidated
fiscal year, mainly due to the recording of a net loss attributable to owners of the parent and the distribution of
surplus.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 14, 2021.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of June 30, 2021

ASSETS
Current assets:
Cash and deposits

39,169Notes and accounts receivable-trade

2,193

－

－

2,780

28,68230,854

Notes, accounts receivable-trade and contract assets
Real estate held for sale

35,481

Power generation facilities for sale

－

3,702

Real estate held for sale in progress

43,76654,915

596

81

Other

11,418

14,209Allowance for doubtful accounts

(141)

(140)

125,686

141,884

Buildings and structures (net)12,102

11,001

Land

33,73938,035

Other (net)18,22821,085

Total property, plant and equipment

64,07070,123

Goodwill

960

2,447

Other

638

665

1,599

3,113

12,87414,004

Allowance for doubtful accounts

(13)

(14)

Total investments and other assets

12,861

13,99078,531

87,2279787

204,315

229,199

Notes and accounts payable - trade

13,31812,138

Short-term loans payable

9,208

22,954

Costs incurred on uncompleted contracts

Total current assets
Fixed assets:
Property, plant and equipment

Intangible assets

Total intangible assets
Investments and other assets
Other

Total fixed assets
Deferred assets
Total assets
LIABILITIESCurrent liabilities:

Current portion of bonds payable

116

1,546

Current portion of long-term loans payable

17,524

24,633

Income taxes payable

2,264

144

Allowance

1,034

883

Other

12,184

13,247

Total current liabilities

55,64975,547-5-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

Fixed liabilities
Long-term loans payable

85,721

92,408

Bonds payable

5,988

5,940

Allowance

119

118

Liabilities related to retirement benefits

863

883

Other

1,339

1,613

Total fixed liabilities

94,033

100,964

149,683

176,511

Total liabilities-6-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(Millions of yen)
As of March 31, 2021

As of June 30, 2021

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,817

Retained earnings

48,64946,513

Treasury stock(4,604)(4,604)

Total shareholders’ equity

53,682

51,545

521
(1)

709
(0)

Accumulated other comprehensive income
Valuation difference on other securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

(8)

(7)

Total accumulated other comprehensive income

512

701

199
237

199
240

54,632

52,688204,315

229,199

Subscription rights to shares
Non-controlling interest
Total net assets
Total liabilities and net assets-7-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2020Three Months Ended
June 30, 2021

Net sales

15,717

18,337

Cost of sales

12,044

14,565Gross profit

3,672

3,771

Selling, general and administrative expenses

3,867

4,683

Operating loss

(194)

(911)

Interest income

021

Dividend income

8676Commissions received

69Gain from equity method investment

98－

Miscellaneous income

50

49

Total Non-Operating income

241

155

Interest expense

261

436

Losses from equity method investment－

65

Miscellaneous losses

58

25

Non-Operating income:Non-Operating expenses:

Total Non-Operating expenses

320

526

Ordinary loss

(273)

(1,282)Net loss before income taxes(273)(1,282)

Income taxes, inhabitant taxes and business taxes

124

158

Income tax adjustments

(84)

(351)

Total income and other taxes

39

(192)

Net loss(313)(1,090)Net income attributable to non-controlling shareholders (loss)

(16)

3

Net loss attributable to owners of parent(296)(1,093)-8-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

Quarterly Consolidated Statements of Comprehensive Income
First-Quarter Year-to-Date Period(Millions of yen)Three Months Ended
June 30, 2020
Net lossThree Months Ended
June 30, 2021

(313)

(1,090)Net unrealized gains on available-for-sale securities

199

187

Foreign currency translation adjustment(0)0Remeasurements of defined benefit plans

1

0

201

188

(112)

(901)

Comprehensive income attributable to owners of parent

(95)

(904)

Comprehensive income attributable to non-controlling shareholders

(16)

3

Other comprehensive income:

Total other comprehensive income
Comprehensive income(Comprising)-9-

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(3) Notes on Quarterly Consolidated Financial Statements(Notes on Assumption of Going Concern)
The Company had no pertinent matters to report.
(Notes on a Significant Change in Shareholders’ Equity)
The Company had no pertinent matters to report.
(Changes in Significant Subsidiaries during the Period under Review)(Changes in specified subsidiaries resulting in changes in the scope of consolidation)
During the first quarter of the fiscal year ending March 31, 2022, the Company newly acquired all of the issued
shares of ACA Clean Energy Co.,Ltd., and therefore included the company in the scope of consolidation.
ACA Clean Energy Co.,Ltd. changed its corporate name to Leben Clean Energy Co.,Ltd. as of June 22, 2021.
(Change in accounting policy)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (“ASBJ Statement No. 29,
March 31, 2020, Accounting Standards Board of Japan”), from the beginning of the current first quarter. It recognizes
revenues for goods or services based on the amount estimated to be received in exchange for such goods or services atthe point when control of the promised goods or services is conveyed to the customer.
Therefore, in goods and services to customers, which were previously recorded as selling, general andadministrative expenses, the method of reducing the amount from the transaction price has been changed. Effectivefrom the first quarter of the current fiscal year, the Company has changed its method of accounting for performanceobligations that are to be fulfilled over a certain period of time by estimating the percentage of completion for thefulfillment of the obligations and recognizing revenue over a certain period of time based on the percentage ofcompletion, except for construction projects of very short duration.
For the application of the revenue recognition accounting standard, etc the Company has followed thetransitional treatment prescribed in the proviso of Article 84 of the revenue recognition accounting standard, and thecumulative effect of retroactively applying the new accounting policy prior to the beginning of the current first quarterhas been added to or deducted from retained earnings at the beginning of the current first quarter, and the relevant
opening balance. The new accounting policy has been applied from the beginning of the current fiscal year. However,
the Company has not applied the new accounting policy retrospectively to contracts for which the method prescribedin Article 86 of the Revenue Recognition Accounting Standard was applied and almost all of the revenue amounts
were recognized in accordance with the previous treatment prior to the beginning of the current first quarter. In
addition, the Company has applied the method prescribed in Article 86, Subparagraph (1) of the Accounting Standard
for Revenue Recognition to account for contract changes made prior to the beginning of the first quarter of the current
fiscal year based on the contract terms after reflecting all contract changes, and has added or subtracted the cumulative
effect of such changes to retained earnings at the beginning of the first quarter of the current fiscal year. The
cumulative effect of this change was added to or deducted from retained earnings at the beginning of the first quarterof the current fiscal year.
As a result, the impact on the quarterly consolidated financial statements for the first quarter of the current fiscal
year is minimal.
Due to the application of Accounting Standard for Revenue Recognition, "Notes and accounts receivable-trade,"which were presented in "Current assets" in the consolidated balance sheet for the previous fiscal year, are now
included in "Notes, accounts receivable-trade and contract assets" from the first quarter of the current fiscal year. In
accordance with the transitional treatment stipulated in Article 89-2 of the Accounting Standard for Revenue
Recognition, no reclassification has been made for the previous fiscal year using the new presentation method.
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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Three Months Ended June 30, 2021

(Application of the Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July4, 2019, Accounting Standards Board of Japan,”), from the beginning of the current first quarter, 2021. The company
has prospectively decided to apply new accounting policies based on the Accounting Standard for Fair Value
Measurement, in accordance with the transitional measurement in Article 19 of Accounting Standard for Fair Value
Measurement and Article 44-2 of “Accounting Standard for Financial Instruments,” (“ASBJ Statement No.10, July 4,2019).The impact of application of the Accounting Standard for Fair Value Measurement, on consolidated financial
statements for the current first quarter is immaterial.

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