Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2011 (Japan GAAP)
October 25, 2011

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

First Section of the Tokyo Stock Exchange8897
http://www.leben.co.jp
Yoshio Murayama, President and Representative Director
Toshiya Kitagawa, Corporate Officer and Office Manager, Marketing Planning OfficeTel: +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, 2011
December 6, 2011
Yes
Yes

1. Consolidated Operating Results for the Six Months Ended September 30, 2011
(April 1-September 30, 2011)(1) Consolidated Operating Results (Year-to-Date)(¥ millions, rounded down; percentage figures represent year-on-year change)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%Six months ended September 30, 201116,237(2.3)

1,335(39.7)

910(40.5)712(52.5)

Six months ended September 30, 2010

16,616(39.6)

2,213

15.9

1,530

(0.1)

1,501

(9.4)

(Note) Comprehensive income: Six months ended September 30, 2012: ¥717 million ((52.1)%) / Six months ended September 30, 2011:¥1,498 million (-%)
Net Income perShare

Diluted Net Incomeper Share

Yen

Yen

Six months ended September 30, 2011

22.15

-

Six months ended September 30, 2010

53.46-(2) Consolidated Financial Position
Total Assets

Total Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2011

64,562

18,48028.6As of March 31, 2011

61,054

18,361

30.1<Reference> Shareholders’ equity at end of period: September 30, 2011: ¥18,480 million / March 31, 2011: ¥18,361 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q
Yen

3Q
Yen

Year Ending March 31, 2011

-

3.00

Year Ending March 31, 2012

-

4.00

Year-End
Yen

Year Ending March 31, 2012 (Forecast)

Full-Year

Yen

Yen-

6.00

9.00

-

9.00

13.00

(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, 201 2(April 1, 2011-March 31, 2012)(¥ millions, rounded down; percentage figures represent year-on-year compared with priorconsolidated fiscal year and the prior consolidated fiscal year interim (year -to-date) period)
Net Sales
Million yen
As of March 31, 201257,150Operating Income% Million yen
21.9

6,170

Ordinary Income% Million yen
(8.7)

5,160

(Note) Has the Company changed its consolidated forecast during this quarter: No% Million yen(6.6)

Net Income perShareNet Income%yen

3,600 (29.2)

111.104. Other (For details please refer to [Attachments] Page 3 “Other Information”)(1) Changes in the status of material subsidiaries during the period: Yes(Changes in specific subsidiaries during the quarterly accounting period under review in conjunction with achange in the scope of consolidation.)
Newly consolidated companies (--) Newly excluded companies (1)Takara Live Net Co., Ltd.,(2) Application of Special Accounting Treatment Made in Preparationof the Quarterly Consolidated Financial Statements: Yes(3) Changes in Accounting Policies, Changes in Accounting Estimates or Restatement
A. Changes in accounting policies accompanying revision of accounting standards: No
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, 2011: 33,386,070 shares

As of March 31, 2011: 33,386,070 sharesb.

As of September 30, 2011:

As of March 31, 2011:c.

1,915,271 shares

Six months ended September 30, 2011: 32,187,444 shares

982,771 shares

Six months ended September 30, 2010: 23,711,197 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 are
based 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.

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 ........................................... 3
2. Summary Information Pertaining to Other Matters .................................................................................................. 4(1) Changes to Material Subsidiaries during the First-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 .......................................................................................................... 4(1) Quarterly Consolidated Balance Sheets .............................................................................................................. 5(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive
Income ................................................................................................................................................................ 6
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 Pertaining to the Going Concern Assumption .......................................................................................... 9(4) Notes on Significant Changes to Shareholders’ Equity ...................................................................................... 9(5) Important Events after Reporting Period ............................................................................................................ 9-1-1. Qualitative Information Pertaining to Consolidated Operating Results for the First Half
(1) Qualitative Information Pertaining to Consolidated Operating Performance
During the first half of the fiscal year under review, the Japanese economy gradually recovered from theeffects of the Great East Japan Earthquake. Nonetheless, the outlook remains uncertain, given the fiscal crisis
in Europe and the surge of the yen in association with the prevailing concerns.
In the real estate industry, where the Takara Leben Group operates, although there were concerns over thenegative impact of the earthquake on business, the willingness of customers to purchase properties has not
fallen significantly. In particular, the enthusiasm of first-time buyers, the Company’s main target market,
remained strong even after the earthquake, and the number of contracts the Company concluded held firm.
In its effort to differentiate itself from its competitors, the Company has been striving to develop
condominiums that meet the demands of the age. For this reason, it commenced sales of Japan’s first
condominiums planned in-house and equipped with individual PV systems, which permit owners to sellelectricity individually.
With the Company celebrating its 40th year in business in September 2011, it remains determined to provide“ideal and affordable housing that everyone can buy with confidence,” the Company’s marketing concept, toits customers.
(i) Performance Review
In reviewing the performance of Takara Leben Co., Ltd. on a nonconsolidated basis, the new built-for-salecondominium business delivered 316 condominiums mainly in Tokyo and Saitama Prefecture, and achieved astrong gross margin of 21.7%.
The newly built detached housing business performed steadily and in line with the Company’s full-yearbusiness plan, and achieved a gross margin of 28.5%.
The renovation business and the resale business recorded sales for the first half of the fiscal year under review
that were 100% of the Company’s full-year sales plan.
In the real estate rental business, sales were progressing steadily and almost in line with the Company’s
full-year sales plan, reaching 49.1% of the plan.
As a result, net sales for the first half of the fiscal year under review on a non-consolidated basis reached¥14,299 million. Operating income was ¥1,025 million, and ordinary income amounted to ¥672 million. Net
income stood at ¥660 million.
On a consolidated basis, Leben Community Co., Ltd. increased the number of units managed through its
condominium management services by 1,398 units, compared with the end of the prior consolidated fiscalyear, to 27,049 units for the first half of the fiscal year under review, achieving growth in line with theCompany’s plan.
Tafuko Co., Ltd., Marunouchi Servicer Co., Ltd., and AS Partners Co., Ltd. also performed steadily and inline with plans. Meanwhile, as a result of the sale of its shares during the first half of the fiscal year underreview, Takara Live Net Co., Ltd. was excluded from consolidated subsidiaries.
As a result, Takara Leben Group reported consolidated net sales of ¥16,237 million, operating income of¥1,335 million, ordinary income of ¥910 million, and net income of ¥712 million.
(ii) Performance by business segment
Looking at the performance of each business segment of the Takara Leben Group for the first half of theconsolidated fiscal year ending March 2012, the real estate sales business recorded sales of ¥13,475 million,
reflecting the results of the new built-for-sale condominium business, the newly built detached housingbusiness, the renovations business, and the resale business.
The real estate rental business recorded sales of ¥707 million. This reflected rental revenue from-2-

condominiums for rent and from office and store space leasing.
The real estate management business posted sales of ¥1,111 million, reflecting revenues from themanagement of 27,049 units of residential condominiums.
Sales from other businesses amounted to ¥942 million, mainly reflecting commissions from real estate agency
services and revenues from orders for repair work.
As a result, net sales for the first half of the consolidated fiscal year under review stood at ¥16,237 million.
(iii) Progress of contracts signed
Given the strong sales in the first half of the consolidated fiscal year under review, the contracted ratio as at
the end of September 2011 stood at 83.0%, up 1.9 percentage points year on year, with 1,114 units being
signed against 1,342 units to be delivered for the fiscal year under review. The contracted ratio for the nextterm against the number of units scheduled to be delivered amounted to 24.3%, a steady performance andsignificantly higher than that for the same period of the previous year.
(Table of Contracts Signed Versus Number of Full-Year Forecast Units for Delivery)
United scheduled for Number of contracts
delivery (units)
Fiscal year ending
March 2012
Fiscal year ending
March 2013

signed (units)

Contracted ratio forContracted ratio (%) the same period of theprevious year (%)

1,3421,114

83.0

81.1

1,553

378

24.3

14.1

In addition to the new built-for-sale condominium business, the newly built detached housing business, therenovations business, and the resale business have also been performing steadily in accordance with the businessplan.

(2) Qualitative Information Pertaining to Consolidated Financial Position
Assets, Liabilities and Net Assets
With regard to the assets, liabilities, and net assets of the Takara Leben Group at the end of the first half of theconsolidated fiscal year under review, total assets were ¥64,562 million, an increase of ¥3,507 million comparedwith the end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventories inconjunction with new purchases.
(Current Assets)
Current assets increased ¥3,209 million compared with the end of the previous consolidated fiscal year, to¥45,137 million. This principally reflected an increase in inventories as a result of new purchases.
(Fixed Assets)
Fixed assets increased ¥298 million compared with the end of the previous consolidated fiscal year, to¥19,424 million, mainly as a result of purchases of business assets.

-3-(Current Liabilities)
Current liabilities increased ¥3,382 million compared with the end of the previous consolidated fiscal year,to ¥31,533 million, mainly as a result of an increase in advances received on contracts concluded and theshift in debt maturities from long-term to short-term borrowings.
(Fixed Liabilities)
Fixed liabilities increased ¥6 million compared with the end of the previous consolidated fiscal year, to¥14,548 million, mainly because of the rise in lease obligations.
(Net Assets)
Total net assets increased ¥118 million compared with the end of the previous consolidated fiscal year, to¥18,480 million. The increase was attributable to the recording of net income, which exceeded the amountused to repurchase treasury stock and pay dividends from retained earnings.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
There is no change from the projected consolidated operating results released on July 25, 2011.
2. Matters Pertaining to Summary Information (Others)(1) Changes to Material Subsidiaries during the First Half of the Consolidated Fiscal Year Under Review
On September 26, 2011, the Company sold all shares of Takara Live Net Co., Ltd., its consolidated subsidiary.
As a result, its excluded Takara Live Net Co., Ltd. from the scope of consolidated subsidiaries for the second
quarter of the consolidated fiscal year under review.
(2) Adoption of special accounting policies for quarterly financial statements(i) Calculation method for fixed asset depreciation
For assets for which it has adopted the declining balance method, the Company calculates the amount ofdepreciation and amortization pertaining to the consolidated fiscal year and allocates an amount on a pro-ratabasis for each reporting period.
(ii) Valuation method for inventories
The Company calculates write-downs of the inventory book value by estimating the net sale value only ofassets for which there has been a clear decrease in profitability and then writing down the book value to theestimated amount.
(3) Changes in accounting standard, accounting estimation change, and error correction
Not applicable-4-3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2011

As of September 30, 2011ASSETS
Current assets:
Cash and cash equivalents

9,414

Notes and accounts receivable, trade

8,415

416

393

Real estate held for sale

5,259

4,605

Real estate for sale under construction

23,57528,474

Other

3,301

3,286

Allowance for doubtful accounts
Total current assets

(38)

(36)

41,92845,137

Fixed assets:
Tangible fixed assets
Buildings and structures (net)

4,654

4,525

Land

13,25913,64438

77

17,951

18,247

484

467

Other

915

930

Allowance for doubtful accounts

(225)

(221)

Total investments and other assets

689

708

19,126

19,42461,05464,562

Notes and accounts payable, trade

3,785

4,188

Short-term borrowings

3,720

5,376

Long-term debt due within one year

Other (net)Total tangible fixed assets
Intangible fixed assets
Investments and other assets

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

16,96016,790

Income taxes payable

93

105

Reserve

176

180

Other

3,416

4,892

Total current liabilities

28,151

31,533Fixed liabilities:
Long-term borrowings

13,66913,660Reserve

231

235

Other640

652

14,541

14,54842,692

46,081

Total fixed liabilitiesTotal liabilities-5-(Millions of yen)
As of March 31, 2011

As of September 30, 2011

NET ASSETS
Shareholders’ capital:
Capital

4,819

Additional paid-in capital

4,949

4,949

Retained earnings

9,905

10,424

Treasury stock(1,295)(1,699)Total shareholders’ capital

18,38018,494

(18)

(13)

(18)

(13)

18,361

18,48061,05464,562

4,819

Other accumulated comprehensive income:
Other Valuation difference on
available-for-sale securities

Total other accumulated comprehensiveincome
Total net assets
Total liabilities and net assets-6-(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, 2010

Six Months Ended
September 30, 2011

Net sales

16,616

16,237

Cost of sales

11,292

11,269Gross profit

5,323

4,967

Selling, general and administrative expenses

3,110

3,632

Operating income (loss)

2,213

1,335

Interest income

93

Dividend income

11

Commissions received

2833

Equity in earnings of affiliates

1517

Miscellaneous income

425Total Non-Operating income

60

81Interest expense

611488New share issuance costs

126－

317

Non-Operating income:Non-Operating expenses:

Miscellaneous losses
Total Non-Operating expenses

742

506

1,530

910

14－

Reversal of provision for bonuses

2－

Gain on prior periods adjustment

49－

Other2－

Total extraordinary gains

68－

Loss on sales of shares in subsidiaries－49

Loss on disposal of fixed assets

0610－

32－

Ordinary income (loss)
Extraordinary gains:
Reversal of provision for loans

Total extraordinary losses:

Loss on adjustment for changes of accounting
standard for asset retirement obligations
Income taxes for prior periods
Loss on valuation of investment securities

83

Loss on sale of investment securities

2－

Other0－Total extraordinary losses

5558

Net income (loss) before income taxes

1,544

852

Income taxes, inhabitant taxes and business taxes

74

92

Income tax refund

(12)

－

Income tax adjustments

(19)

46

Total income and other taxes

43

139

Income (loss) before minority interests

1,501

712

Net income (loss)

1,501

712

-7-Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2010
Income (loss) before minority interests

Six Months Ended
September 30, 2011

1,501712

Other Valuation difference on available-for-sale securities(2)

4

Other comprehensive income (total)

(2)

4

1,498

717

1,498

717

Other comprehensive income:Comprehensive income(Comprising)Comprehensive income attributable to parent-8-(3) Notes Pertaining to the Going Concern Assumption
The Company had no pertinent matters to report.
(4) Notes on Significant Changes to Shareholders’ Equity(Purchase of treasury stock)
In the second quarter of the consolidated fiscal year under review, the Company purchased 932,500 shares oftreasury stock at ¥404 million, by resolution of the meeting of the Board of Directors held on July 25, 2011.
As a result, as at the end of the second quarter of the consolidated fiscal year under review, the Company held
1,915,271 shares of treasury stock at ¥1,699 million.
(5) Important Subsequent Events
Not applicable(Omissions of disclosures)Among the disclosure items, quarterly consolidated statements of cash flows, segment information, other notes,
non-consolidated operating and financial information, and supplemental information have been omitted, because
the Company has judged that there is no significant need for disclosure of these items in the interim consolidated
financial report.

-9-