Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2016 (Japan GAAP)
October 24, 2016

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

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

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

November 14, 2016
December 6, 2016
YesYes

1. Consolidated Operating Results for the Six Months Ended September 30, 2016
(April 1-September 30, 2016)(Amounts are rounded down to the nearest million)(1) Consolidated Operating Results (Year-to-Date)(Percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%Six months ended September 30, 201637,120

39.9

2,994

65.2

2,457

68.1

1,549

77.0

Six months ended September 30, 2015

26,536

41.3

1,812

152.1

1,461

499.6

875 427.4(Note) Comprehensive income: Six months ended September 30, 2016: ¥1,577million (78.7%) / Six months ended September 30, 2015:¥883million (400.7%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Six months ended September 30, 2016

14.18

14.10

Six months ended September 30, 2015

7.89

7.86

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2016

128,325

33,08825.6

As of March 31, 2016

129,744

33,677

25.8<Reference> Shareholders’ equity at end of period: September 30, 2016: ¥32,912 million / March 31, 2016: ¥33,536 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2016

-

4.00

Year Ending March 31, 2017

-

5.00

Year-End
Yen

Year Ending March 31, 2017(Forecast)

Total

Yen

Yen-

9.00

13.00

-

10.00

15.00

(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, 2017
(April 1, 2016-March 31, 2017)(Percentage figures represent year-on-year change)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

105,000

37.7

15,00098.3

13,900

107.2

9,000

108.9

81.77

(Note) Has the Company changed its consolidated forecast during this quarter: No

4. Other Matters(1) Changes in significant subsidiaries during the current fiscal year
(Changes in specified subsidiaries resulting in changes in scope of consolidation) : No
Newly consolidated companies (--) Newly excluded companies (--)
(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: No(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: Yes
B. Changes in accounting policies other than those in (1): No
C. Changes in accounting estimates: No
D. Restatement: No(4) Number of shares issued (common stock)a. Number of shares outstanding at the end of the period (including treasury stock)b. Number of shares of treasury stock at the end of the periodc. Average number of shares during the period (quarter year-to-date)a.

As of September 30, 2016:

126,000,000 shares

As of March 31, 2016: 126,000,000 sharesb.

As of September 30, 2016:

17,553,207 shares

As of March 31, 2016:c.

Six months ended September 30, 2016:

15,938,307 shares

109,276,844 shares Six months ended September 30, 2015: 110,921,759 shares(Note) Explanation concerning implementation status of quarterly review procedure
This quarterly earnings report is exempt from the quarterly review procedure based on the FinancialInstruments and Exchange Act. At the time of disclosure of this quarterly earnings report, the Company has
not completed a quarterly review procedure for financial statements based on the Financial Instruments andExchange Act.

(Note) Explanation concerning appropriate use of the projected operating results and other items to note
The forward-looking statements, including business results forecasts, contained in these materials arebased on information currently available to the Company and on certain assumptions deemed to bereasonable. Actual business results may differ substantially due to a number of factors.

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

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. Summary Information (Notes) ................................................................................................................................. 4(1) Changes to Material Subsidiaries during the Second-Quarter Year-to-Date Period ........................................... 4(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated
Financial Statements ........................................................................................................................................... 4(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement ......................................... 4
3. Quarterly Consolidated Financial Statements .......................................................................................................... 5(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 7
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period ............................................................................................................... 8(3) Notes on Quarterly Consolidated Financial Statements...................................................................................... 9(Notes on Assumption of Going Concern) ......................................................................................................... 9(Notes on A Significant Change in Shareholders’ Equity) ................................................................................. 9-1-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
During the first half of the fiscal year under review, the outlook for the Japanese economy remained uncertain
in some areas, mainly reflecting downside risks caused by a slowdown in economic growth in emerging
countries and Britain’s decision to exit the EU. However, corporate earnings were on a moderate recovery trend,
showing a recovery in capital spending and improved employment conditions, reflecting the effects of fiscal
policies implemented by the Japanese government to break away from deflation.
Under these circumstances, in the real estate industry, in which the Company operates, the number of suppliedunits continues to decline year on year, showing a decrease in the contract rate due to a surge in prices. Even so,
demand remains firm in central Tokyo and the suburbs of Tokyo, reflecting the effects of a decline in interest
rates on home loans attributable to the Bank of Japan’s negative interest rate policy.
① Performance by business segment
In the second-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2017, sales
from the real estate sales business amounted to ¥22,296 million, up 8.5% on a year-on-year basis. This reflectedsales in the new built-for-sale condominium business, as well as sales in the newly-built detached housingbusiness.
In the real estate rental business, sales totaled ¥2,470 million, up 17.2% on a year-on-year basis. This reflectedsales from the rental of apartments, condominium units, and offices.
In the real estate management business, sales from the management of 42,497 units of residential
condominiums were ¥1,814 million, up 9.2% on a year-on-year basis.
In the electric power generation business, sales totaled ¥9,194 million, up 2,043.0% on a year-on-year basis,
mainly due to revenues from the sale of ten facilities that were already operating and revenues from the sale ofelectricity generated by other electric power generation facilities.
Sales from other businesses amounted to ¥1,344 million, down 25.2% on a year-on-year basis, mainly
attributable to revenues from orders for large-scale repair work and revenue from selling electric power in themega-solar business.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥37,120 million, up 39.9% on a year-on-year basis; Operating income amounted to ¥2,994 million,
up 65.2% on a year-on-year basis; Ordinary income amounted to ¥2,457million, up 68.1% on a year-on-yearbasis; and Net income amounted to ¥1,549 million, up 77.0% on a year-on-year basis.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

② Contracted ratio status
With regard to sales performance in the second-quarter year-to-date period of the current consolidated fiscal
year, contracts were concluded for 1,269 units, compared with a full-year target of 1,600 units scheduled fordelivery. The contract ratio was at 79.3%, showing a steady growth in the business.
(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 (%)
September 30, 2016
(units)(units)(units)Six months ended
September 30, 2015

1,452

1,250

86.1

650

Six months ended
September 30, 2016

1,600

1,269

79.3

670

(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 ¥128,325 million, an decrease of ¥1,418 million compared withthe end of the previous consolidated fiscal year. The decrease mainly reflected a decrease in cash and deposits asa result of Settlement of notes payable.
(Current Assets)
Current assets decreased ¥2,668 million compared with the end of the previous consolidated fiscal year to¥73,085 million. This mainly reflected a decrease in cash and deposits as a result of Settlement of notes payable.
(Fixed Assets)
Fixed assets increased ¥1,228 million compared with the end of the previous consolidated fiscal year to¥55,173 million, mainly reflected an increase in tangible fixed assets as a result of purchases ofincome-generating properties.
(Current Liabilities)
Current liabilities decreased ¥1,183 million compared with the end of the previous consolidated fiscal year to¥41,676 million, mainly due to decreased notes payable.
(Fixed Liabilities)
Fixed liabilities increased ¥353 million compared with the end of the previous consolidated fiscal year, to¥53,560 million, mainly due to an increase in borrowings in conjunction with new purchases.
(Net Assets)
Total net assets decreased ¥588 million compared with the end of the previous consolidated fiscal year, to¥33,088 million. The decrease was attributed to the net income for the second quarter was less than distributionof surplus and purchase of treasury stock.

-3-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on May 9, 2016.
2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date Period
The Company had no pertinent matters to report.

(2) Application of Special Accounting Treatment Made in Preparation of the Quarterly Consolidated FinancialStatements
The Company had no pertinent matters to report.
(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement(Application of the Accounting Standard for Business Combination)
In association with the revision of the Corporation Tax Act, the Company has applied the “Practical Solution
on a change in depreciation method due to Tax Reform 2016” (ASBJ Practical Issues Task Force (PITF) No. 32
dated June 17, 2016) from the first quarter of the consolidated fiscal year under review, and changed thedepreciation method for facilities attached to buildings and structures that were acquired on or after April 1,2016 from the declining-balance method to the straight-line method.
The impact of this change on profits and losses for the first quarter of the consolidated fiscal year underreview is minor.
(4) Additional information(Application of implementation guidance on recoverability of deferred tax assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ
Guidance No. 26 dated March 28, 2016) from the first quarter of the consolidated fiscal year under review.

-4-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2016

As of September 30, 2016

ASSETS
Current assets:
Cash and deposits

28,515

Notes and accounts receivable, trade

19,878963

881

Real estate held for sale

4,073

6,181

Real estate held for sale in progress

36,13441,081

Costs incurred on uncompleted contracts

116308Other5,987

4,774

Allowance for doubtful accounts

(38)

(20)

75,75373,085

Buildings and structures (net)11,20912,588Land

24,75024,353

Other (net)13,277

12,909Total tangible fixed assets

49,23749,851

1,512

1,439

Other

3,218

3,891

Allowance for doubtful accounts

(22)

(9)

Total investments and other assets

3,195

3,881

53,94555,173

Total current assets
Fixed assets:Tangible fixed assets

Intangible fixed assets
Investments and other assets

Total fixed assets
Deferred assets

4567

129,744

128,325

Notes and accounts payable, trade

12,037

2,012

Short-term borrowings

7,412

14,228Current portion of long-term borrowings

12,41015,975

Income taxes payable

Total assets
LIABILITIESCurrent liabilities:

1,113

2,073

Reserve

628

665

Other

9,256

6,721

Total current liabilities

42,85941,67650,14750,434

Bonds payable

200

200

Reserve

32

34

Noncurrent liabilities
Long-term borrowings

Liabilities related to retirement benefits

307

346

Other

2,519

2,545

Total noncurrent liabilities

53,20753,56096,066

95,237

Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

(Millions of yen)
As of March 31, 2015

As of September 30, 2016

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,817

4,943

Retained earnings

29,011

29,570Treasury stock(5,100)(6,437)

Total shareholders’ equity

33,54832,895(11)

17

Accumulated other comprehensive income
Net unrealized losses on available-for-sale
Securities
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-(11)

17140

175

33,67733,088

129,744

128,325

Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2015

Six Months Ended
September 30, 2016

Net sales

26,53637,120

Cost of sales

19,98028,431Gross profit

6,555

8,689

Selling, general and administrative expenses

4,743

5,694

Operating income (loss)1,812

2,994

11

Non-Operating income:Interest income
Dividend income

23Commissions received

27

34

Income from equity method investment

72－

Miscellaneous income

34

18

Total Non-Operating income

138

58

Interest expense

463

512

Less from equity method investment－62

Miscellaneous losses

25

20

Total Non-Operating expenses

489

595

1,461

2,457

102

－

Non-Operating expenses:

Ordinary income (loss)
Extraordinary losses

Loss on construction warranties

102－

1,359

2,457

483

1,966

1(1,058)

Total income and other taxes

484

908

Income (loss) before minority interests875

1,549

Net income (loss)

875

1,549

Total extraordinary losses
Net income (loss) before income taxes
Income taxes, inhabitant taxes and business taxes
Income tax adjustments-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2015
Income (loss) before minority interests

Six Months Ended
September 30, 2016
875

1,549

Net unrealized gains on available-for-sale securities

828

Total other comprehensive income

828883

1,577

883

1,577

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2016(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)
In the Second quarter of the consolidated fiscal year under review, the Company purchased treasury stock at¥1,467 million, by resolution of the meeting of the Board of Directors held on May 9, 2016.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing¥130 million, the number and amount of treasury stock at the end of the second quarter of the fiscal year underreview were ¥6,437 million, respectively.

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