Earnings Results Briefingfor the Six Months Ended
September 30, 2016
October 31,2016
Takara Leben Co.,Ltd.

Contents

Summary for The Six months Ended September 30, 2016

・・・・・・

P2

Metropolitan area condominium market trends

・・・・・・

P6

・・・・・・

P8

Strategies going forward・・・・・・

P 15

Year Ending March 2017 Dividends, andFinancial Result Forecast for The Year・・・・・・

P 22

Progress in the business during the first half of the 45th term
Topics for The Six months Ended September 30, 2016 &History
1972

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

1982

Launched real estate leasing business

1988

Established Takara Management Co.,Ltd.
(the present Leben Community)
Launched real estate management business

1994

Launched sales of condominiums "Leben Heim"

2000

Changed company name to "Takara Leben Co.,Ltd."2001

Launched financial brokering business
Established Tafuko Co.,Ltd.

2003

Listed on the second section of the Tokyo Stock Exchange

2004

Listed on the first section of the Tokyo Stock Exchange

2011
2012

40th anniversary of the founding
Introduced New Condominium Brand
Established Yokohama branch

Established AS Partners Co.,Ltd.
Launched nursing care businesses for seniors

Made Takara Housing Co.,Ltd.
(the present Takara Property Co.,Ltd.) its subsidiary
Rental business management operations

2013

Entry to mega-solar business
Established Takara Asset Management Co.,Ltd.
Launched investment management business
Esstablished Takara Investments Co.,Ltd.
Launched real estate investment business
Made Sunwood Corporation it's associated company
accounted for by the equity method

2014

Established Hokuriku Office
Established Tohoku Office
Made Oasis Co.,Ltd.(the present Takara Leben Realnet) its subsidiary

2015

Made Nikko kensetsu Co.,Ltd. its subsidiary
Made Livenet home Co.,Ltd.(the present Takara Leben Tohoku) its subsidiary

2008

Made Marunouchi Servicer Co.,Ltd.
its subsidiary
Released new corporate logo

2010

Launched detached housing business (buidt by Takara Leben)

Made Jutakujyouhoukan Co.,Ltd. its subsidiary

2016

Made Nikko property Co., Ltd. its subsidiary
Changed company name from Nikko kensetsu Co., Ltd. to "Nikko Takara Co., Ltd."
Takara Leben Infrastructure Fund, Inc. was the first to be listed on theタカラレーベン・インフラ投資法人がインフラファンド市場に第一号上場
infrastructure fund market

1

LEBEN Shiki Executia

Summary for The Six months Ended
September 30, 20162

Consolidated Income Statements（Unit Amount=Million yen ）Six months ended
September 30, 2015

Six months ended
September 30, 2016

YOYchange(%)

Net sales

26,53637,12039.9％

Operating profit

1,812

2,994

65.2％

Ordinary profit

1,461

2,457

68.1％

Net income

875

1,549

77.0％

3

Segment Information 【 Net Sales 】（Unit Amount=Million yen ）Six months
ended
September 30,2015

Ratio
(%)

Six months
ended
September 30,2016

Ratio
(%)

Real estate sales
business

20,541

77.4%

22,296

60.1%

Real estate rental
business

2,107

7.9%

2,470

6.7%

Real estatemanagementbusiness

1,660

6.3%

1,814

4.9%

Mega-Solar business

429

1.6%

9,194

24.8％

Other businesses

1,797

6.8%

1,344

3.6%

Total

26,536100%

37,120100%
4Consolidated Balance Sheets（Unit Amount=Million yen ）Year ended March 31, 2016

Six months ended
September 30, 2016

YOY change

75,75373,085△3.5％

Cash and cash equivalents

28,51519,878△30.3％

Inventories

40,20847,262

17.5％

4,073

6,181

51.7％

36,13441,081

13.7％

Fixed assets

53,94555,1732.3％

Total assets

129,744

128,325△1.1％

42,85941,676△2.8％

Notes and accounts payable, trade

12,0372,012△83.3％

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

19,82330,203

52.4％

53,20753,5600.7％

50,14750,434

0.6％

Total liabilities

96,066

95,237△0.9％

Net assets

33,67733,088△1.7％

Capital

4,819

4,819

―

Other shareholder equity

28,85728,268△2.0％

Total liabilities and net assets

129,744

128,325△1.1％

Current assets

Real estate held for sale
Real estate for sale under construction

Current liabilities

Fixed liabilities
Long-term borrowings

5

LEBEN Mito THE PREMIEREMetropolitan area condominium market trends

6Metropolitan area condominium market trends
Inner city condominium market trends■Background・Elected to host the 2020 Tokyo Olympics and Paralympics
・The expectations for it to escape deflation by “ABEnomics”
Sales prices rising
Exodus of first-time buyers from themetropolitan area to the suburbs（Unit Amount=10 thousand yen ）

7,000
6,500
6,000
5,500
5,000
4,500
4,000

(Reference) Average sales prices in the Tokyometropolitan and ward areas

2010

2011

2012

2013

the Tokyo metropolitan area

2014

2015

ward areas(Source: Condominium Market Trends by Real Estate Economic Institute Co., Ltd)

Metropolitan area suburbs condominium market trends■ Background・・・・Decline in the number of developers and supplied units after the Lehman ShockThe market environment remained sound as a sustained demandfor condominiums continued to be strong.
[Types of existing suppliers of built-for-sale suburban condominiums](i) Suppliers that emphasize proximity to stations and convenience(ii) Suppliers that emphasize locations within 10 minutes of the nearest station and in a good housing environment(iii) Suppliers that emphasize prices (supply at low prices) irrespective of the distance from the nearest station

Supply of properties with high specifications in good locations = Differentiation fromcompetitors ⇒ Solid progress in contracts signed
7

LEBEN THE TSUKUBALEBEN Shinkoiwa innovia

Progress in the business during the first half ofthe 45th term
8

Contract Progress・Gross margin
Contract Progress■Contract Progress Ratio（Sep.2016）■Contraction（Condominiums+ Detached house）

Condominiums ⇒79.3％ （Last year 86.1 ％）Sep. from Apr. 2015 TOTAL：745 units

Detached house ⇒87.0％ （Last year 52.1％）

Sep. from Apr. 2016 TOTAL：811units

Solid progress in contracts sign
Sales units・Gross margin■Number of units soldCompletions were concentrated in the second half
as usual.
Sales were concentrated in the fourth quarter■Gross profit margin
1st half: Numerous JV and building wholesale projects⇒Low gross profit margin
2nd half: Many single projects⇒ High gross profit margin(units)1000900800
700
600
5004003002001000(％)

2014.7

15
Sales units105

Gross margin(Accounting period)

01Q

Gross profit margin for the full year:
Expected to be approx. 22%

25

21.5

2Q

Results

3Q

4Q

Forecast9Local city strategy（1）Project of the area to advance newly■Kanazawa-Otemachi Project
Address： ：Otemachi, Kanazawa, Ishikawa
Number of units ：18 units（ Planned ）■Fukuyama-Konan-cho Project
Address ：Konan-cho, Fukuyama ,Hiroshima
Number of units ：28 units（ Planned ）■Hiroshima-Tenmacho Project
Address ：Tenma-cho,Nishi-ku,Hiroshima,
Number of units ：70 units（ Planned ）■Yonezawa-Montomachi Project
Address ：Montomachi, Yonezawa, Yamagata
Number of units ：54 units（ Planned ）■Morioka-Chuoudori Project
Address ：Chuoudori, Morioka, Iwate
Number of units ：96 units（ Planned ）■Sendai-Yamatomachi Project
Address ：Yamatomachi, Wakabayashi,Sendai, Miyagi
Number of units ：27 units（ Planned ）■ Matsuyama -Kitafujiwaramachi Project
Address ： Kitafujiwaramachi, Matsuyama, Ehime
Number of units ：40 units（ Planned ）Steady expansion of areas toward the establishment of a system capable of managing
1,000 units per year in regional cities.

10Local city strategy（2）Active seniors are the main target for properties
Male

Active seniors

Government

Traffic convenience
improving・Maintenance of
detached houses
・Problem of driving

Promotion ofcompact city・Central city revitalization
・Efficiency ofadministrative services

Additional purchases or replacements in favor of
condominiums located in the central areas ofregional cities, instead of detached houses in thesuburbs There are approximately 70 cities
nationwide with such demand.

FemaleNow

20 years
later

Population statistics（In Toyama city）※As of March 2015
※Source：Homepage of Toyama city

Demand for condominiums located in central areas will increase in the future
once the second-generation baby boomers begin to retire.
Increase to 1,000 units per year

11

Local city strategy（3）Start of new sales – Tohoku district■ LEBEN Nagaoka-Terajimamachi Vertalier■LEBEN Sendai THE GRANDE

Address：308-11,Terajima-machi, Nagaoka , Niigata
Access：13-minutes bus from Nagaoka Sta.
Number of units：131 units

Address： 1-414,Odawara,Miyagino-ku, Sendai , Miyagi
Access：17 minutes walk from Sendai Sta. on JR Tohoku Senseki line
Number of units ：234 units■LEBEN Akita THE MID TOWER■ LEBEN Kitarokuban-Cho AUTHORS

Address：3-114,Nakadoori ,Akita ,Akita
Access ：13-minutes walk from Akita Sta. on Tohoku Shinkansen
Number of units ：55 units

Address： 251-1,Umedamachi,Aobaku, Sendai , Miyagi
Access ：9-minutes walk from Toushogu Sta. on JR Senzan line
Number of units ：32 units

Solid progress in contracts signed for respective properties

12

Mega-solar power business
Mega-solar power generation facilities•Mar.2016 Approximately 51MW in operation•June 2 .2016 17.88MW Sell to the infrastructure fund
•Sep.2016 Approximately 61MWin operation（including sold ）•Mar.2017 Approximately 80MW will be in operation•Mar.2020 Expected to be 200MW(Approx. 170MW, including all plants that are either operating or not-yet, as well as projects under examination)

Making steady progress to achieve goals
13Real Estate Lease Business
Procured properties to be posted as revenue for this termMoving forward with the proactive acquisition of properties to establish a REIT

【 Major acquired properties 】

Amare Tokaido■Amare Tokaido

Address：Minato-ku, Nagoya , Aichi
Access：3 minutes walk from TOKAIDORI
Sta. in Nagoya Meiko line

■Nakano –daiichi OS building

Address ：2-19-2,Nakano,Nakano-ku,Tokyo
Access ：5 minutes walk from NAKANO
Sta. on JR line

Nakano-daiichi
OS building

Making steady progress in procurement to achieve goals
14

LEBEN Sendai THE GRANDE

Topics for The Six months Ended September 30,
2016 Strategies going forward
15

Topics for The Six months Ended September 30, 2016
Takara Leben Infrastructure Fund, Inc. was first to be listedon the infrastructure fund market

The first company to be listed on the infrastructure fund market of Tokyo Stock Exchange Inc.

Opening price：109,900 yen Yield: 5.3% (on a net income basis)
High price：145,000 yen Yield: 4.0% (on a net income basis)

Effects on the Company group of the listing■Significant change in income structures■Increase in the number of offered projects due to the increased market recognition■Establishment of the image of a company that always takes on new challenges

16New business
Segment Goals
Flow businesses
New built-for-sale condominium
business
Redevelopment &Rebuilding Business

Units sales per year
2,020units

Detached house business

Units sales per year2,700uints
Condominium 2,200uints
Detached house 500units（FY2019/3）

Stock and fee-based businesses
Mega-solar power business
Real estate management business
Real estate rental
and management business
Real estate rental business
Real estate
distribution businessElectric power generation
16MW
The management units
38,700units
The management units
4,500units
Annual sales
2.9billion
Annual sales
0.4billion

Electric power generation

200MW（FY2020/3）
The management units

50,000units
The management units

6,200units
Annual sales

6.0billion
Annual sales

1.0billion （FY2019/3）

17New business
Expand the fund business
Infrastructure FundREIT

Commencement of the operation of existing
facilities at an early stage

Proactive purchasing of properties by the Group

Purchase from the secondary market

Acceleration of the development of hotels and otherproperties in regional areas

Search for energy besides solar power generation
Enhancement of recognition of the infrastructure
fund

Aiming to at the target of asset scale,
100 billion yen

Establishment of a project office within Takara AssetManagement Co., Ltd.

Aiming to be listed as a REIT in 2017

Year Ending March 2020, target of asset scale, 200 billion yen18New businessParticipation in large-scale redevelopment projects
MINAMIKOIWA 6-chome Type 1 Urban Area Redevelopment Project【 Plan summary 】■Operation area
6-chome,Minamikoiwa,Edogawa-ku,Tokyo and so on■Name of executor
Minamikoiwa 6-chome Urban Area Redevelopment
Association (Plan)

Image■ Access
JR Sobu line 「KOIWA sta.」1-minute walk■Designated business agent
Takara Leben CO.,LTD.
Nomura Real Estate Development Co., Ltd
SHIMIZU CORPORATION

PlanOther plan

Diversification of the business cycle of real estate sales
19New businessSearch for businesses overseas
Supply of housing units in Southeast AsiaEnergy-related businesses in Southeast Asia

Capital tie-up ・ Business tie-up ・JV etc.

Challenges of the supply of electricity
in Southeast Asia

Condominium

Chronic shortage of electricity due to anincrease in the population and the lack ofpower generation facilities

Detached house

Demand for a stable supply of electricity

Business opportunities

20

New business
Investment business

Investment at 0.5～1.0 billion a year

Energy technologies

New energybusinesses

Expand the infrastructure fundStable revenue in the future
21

LEBEN Nagaoka-Terajimamachi VertalierYear Ending March 2017 Dividends, andFinancial Result Forecast for The Year22

Year Ending March 2017 Outlook (Consolidated)（Unit Amount=Million yen ）Year ended
March 31, 2016

Year ending
March 31, 2017
(Forecast)

YOY change

1,642

1,888

15.0％

Net sales （¥million）

76,268105,000

37.7％

Operating profit（¥million）

7,563

15,00098.3％

Ordinary profit （¥million）

6,708

13,900107.2％Net income （¥million）

4,308

9,000

108.9％

Units sold（New built-for-sale condominium+detached house）

23

Cash Dividends, Preferential treatment
1st half dividends

Year-end dividends

TotalYear-end
2016(March)

4yen

9yen

13

yen

Year -end
2017(March)
Forecast

5yen

10 yen15

yenPreferential treatment

gift certificates of packaged rice

100 shares ~ 499 shares

1kg （440Yen）

500 shares ~ 999 shares

3kg （1,320Yen）

1,000 shares or more

5kg （2,200Yen）

24

On acquisition of treasury stock◆ Type of shares acquired

Common stock of the Company◆ Total number of shares for acquisition
2,000,000 shares (Upper limit)
Ratio to total number of outstanding shares (Excluding treasury stock)1.81%◆ Total acquisition value

1,500,000,000 yen (Upper limit)◆ Acquisition period

From May 10, 2016 to March 31,2017◆ Acquisition method

Open market repurchase on the Tokyo Stock Exchange◆ Status of acquisition (Total number of shares acquired as at the end of October)
1,996,500 shares ／ 1,467,866,000 yen◆ Type of shares acquired

Common stock of the Company◆ Total number of shares for acquisition
1,500,000 shares (Upper limit)
Ratio to total number of outstanding shares (Excluding treasury stock) 1.38%◆ Total acquisition value

1,000,000,000 yen (Upper limit)◆ Acquisition period

From September 2, 2016 to March 31,201725

Enquiries Relating to These Materials
Corporate Planning Division
Management Planning Section

E-mail：irinfo@leben.co.jp

These materials were prepared to provide information regarding business performance for the six months ended September 30, 2016 and do notconstitute a solicitation for investment in securities issued by Takara Leben Co., Ltd. These materials were prepared based on data
available as of September 30, 2016. These materials, as well as answers, projections, estimates, and other information provided in thesubsequent question and answer session are based on Takara Leben's best judgment as of the preparation of this material, and do notconstitute a guarantee or promise that anything contained within will be realized or achieved, nor do they provide any guarantees orpromises with regard to the accuracy or completeness of the information. The content of these materials is subject to change without prior notice.