Earnings Results Briefing
for the Six Months Ended
September 30, 2010
Second Quarter of the Fiscal Year Ending March 31, 2011

November 16, 2010
Takara Leben Co., Ltd.
Yoshio Murayama
President & Representative Director

Contents

Operating Results for the
Six Months Ended September 30, 2010

４Ｐ

Operating Results for the
Six Months Ended September 30, 2010 (Summary)

８Ｐ

Summary of Takara Leben’s New
Medium-Term Business Plan

１４Ｐ

Brand Range

２９Ｐ2Foreword

Foreword
Two years after the collapse of Lehman Brothers, Japan’s real economy remains in a slump despite
the fact personal consumption is exhibiting a comparatively steady recovery trend, and today firms
find it essential to tread carefully and work to build a strong management base.
In the property market, on the other hand, a recovery trend is evident and the number of units
being supplied in urban areas is rising. In the suburban areas on which Takara Leben focuses,
however, few players are active and the number of units being supplied continues to decline.
Consequently supply commensurate with demand cannot be assured, and we believe this situation
calls for the supply of suburban-type family condominiums.
Because such circumstances create an opportunity for improving our earnings structure andreturning to growth, based on the restart of aggressive property purchase and sale projects, cost
reductions and funding through capital increases, the Takara Leben Group has announced a new
medium-term business plan as part of its effort to focus on the next period.
At Takara Leben we will continue to aggressively pursue the roles and responsibilities Takara
Leben should perform based on its concept of “ideal, affordable housing that anyone can buy withconfidence,” and focus on the consumers who provide our ultimate support.

3

Performance Overview for
the Six Months Ended September 30, 2010
Consolidated Statements of Income● Net sales totaled 16,616 million yen, mainly reflecting the delivery of 364 condominium units.
⇒ Net sales of 16,616 million yen included revenue from the sale of 364 condominiums and 32 detachedhouses and the management of 23,897 condominium units● Operating income increased 15.9% year-on-year to 2,213 million yen.
⇒ Ensured profit margin based on strong sales of condominiums● Interim period net income was 1,501 million yen.

Consolidated Balance Sheets● Total assets fell 5.2% year-on-year to 58,226 million yen , particularly from progress in reducing inventory
assets.
⇒ Although we began purchasing new units, the lower assets reflected progress in reducing inventory and the restart ofsales.

● Total liabilities were reduced 18.8% year-on-year to 43,355 million yen as the Company continued toreduce debt.
⇒ Reflected progress in repaying interest-bearing debt as a result of shrinking inventory and maintaining profit margins.

● Equity ratio rose to 25.5% (a 9.6% point improvement year-on-year), as the Company improved its
financial balance.

Consolidated Statements of Cash Flows● Net cash provided by operating activities was 81 million yen, reflecting higher advances on contracts concluded.
● Net cash used in investing activities was 894 million yen, reflecting the purchase of fixed assets.
● Net cash provided by financing activities was 2,093 million yen, reflecting an increase in cash and deposits fromthe exercise of new share subscription rights.
4Performance Overview for
the Six Months Ended September 30, 2010
Consolidated Statements of Income● Net sales totaled 16,616 million yen, mainly reflecting the delivery of 364 condominium units.
⇒ Net sales of 16,616 million yen included revenue from the sale of 364 condominiums and 32 detached houses
and the management of 23,897 condominium units● Operating income increased 15.9% year-on-year to 2,213 million yen.
⇒ Ensured profit margin based on strong sales of condominiums● Net income was 1,501 million yen.
Change in Interim Period Net Sales
35,00030,00032,0882,000

29,381

1,800

27,50024,66325,000Change in Interim Period Net Income(Unit: Million yen)

1,600

(Unit: Million yen)

1,818

1,656

1,575

1,501

1,400

20,00016,61615,000

1,200

926

1,000
800
600

10,000

400
5,000
200
0

0
Year
ending
07/3期
March 2007

Year
ending
08/3期
March 2008

Year
ending
09/3期
March 2009

Year
ending
10/3期
March 2010

Year
ending
11/3期
March 2011

Year
ending
07/3期
March 2007

Year
ending
08/3期
March 2008

Year
ending
09/3期
March 2009

Year
ending
10/3期
March 2010

Year
ending
11/3期
March 20115

Performance Overview for
the Six Months Ended September 30, 2010
Consolidated Balance Sheets● Total assets fell 5.2% year-on-year to 58,226 million yen , particularly from progress in reducing inventory assets.
⇒ Although we began purchasing new units, the lower assets reflected progress in reducing inventory and the restart of sales.

● Total liabilities were reduced 18.8% year-on-year to 43,355 million yen as the Company continued to reduce debt.
⇒ Reflected progress in repaying interest-bearing debt as a result of shrinking inventory and maintaining profit margins.

● Equity ratio rose to 25.5% (a 9.6% point improvement year-on-year), as the Company improved its financialbalance.
Change in Total Assets at End of Interim Period

95,510100,000

92,971

Changein Interim
PeriodNet
IncomeChangein Equity
Ratio at
End of
Interim
Period(Unit: Million yen)

(Unit: Million yen)

30.0

25.5

90,00080,00076,67325.0

70,00061,44460,00020.5
58,22650,000

20.0

21.5
18.7
13.1

15.0

40,00010.0

30,00020,0005.0
10,0000

0.0
Year
ending
07/3期
March 2007

Year
ending
08/3期
March 2008

Year
ending
09/3期
March 2009

Year
ending
10/3期
March 2010

Year
ending
11/3期
March 2011

Year
ending
07/3期
March 2007

Year
ending
08/3期
March 2008

Year
ending
09/3期
March 2009

Year
ending
10/3期
March 2010

Year
ending
11/3期
March 20116

Contracted Ratio
Sales of built-for-sale condominiums
Number of units
planned for sale

Number of units
contracted as of 9/30

Contracted ratio

Current fiscal year projects

1,078 units 874 units 81.1％
As of October 31

1,078 units

958 units

88.9％

1,398 units 197units 14.1％
As of October 31

294 units

Last fiscal year projects
BOP inventory

174 units

Inventory as of 9/30

Number of units sold

22 units （152 units )Current fiscal year projects

Next fiscal year projects

1,398 units

Built-for-sale condominium inventory

21.0％

81.1% of units for delivery in current FY
contracted
14.1% of units for delivery next FY
contracted

Completed during
interim period

Inventory as of 9/30

Number of units sold

319 units 107units （ 212units)
Total

493 units 129units （364 units）
Reduced inventory from
174 units ⇒129 units
7

Consolidated Statements of Income (Reference)(Unit: Amount = Million yen; ratio =%)Six months ended
September 30, 2010

Six months ended
September 30, 2009

YOY
changeAmountAmount% of total% change% of total

16,616100

27,500100-39.6Real estate sales
business

14,30986.1

25,333

92.1

-43.5

Real estate rental
business

717

4.3

649

2.4

10.5

1,048

6.3

952

3.5

10.1

540

3.3

564

2.1

-4.2

Cost of sales

11,29268.0

21,917

79.7

-48.5

Gross profit

5,323

32.0

5,582

20.3

-4.6

Selling, general andadministrative
expenses

3,110

18.7

3,673

13.4

-15.3

Operating income

2,213

13.3

1,909

6.9

15.9

Ordinary income

1,530

9.2

1,532

5.6

-0.1

Net income

1,501

9.0

1,656

6.0

-9.4

Net sales

Real estate
managementbusiness
Other businesses

POINT
The number of contracted units isincreasing well with the steadyrecovery in the market, but net
sales declined because deliveries
are concentrated in the second half.

Maintained profit margins because ofgood sales.
⇒ ”Lower of cost or market value
method” applied in the priorfiscal year became a plus factor.
Large improvement of gross profit
marginRatio of net income to sales
recovered strongly to 9.0%.

8Consolidated Balance Sheets (Reference)(Unit: Amount = Million yen; ratio =%)As of September 30,
2010
Amount% of total

Current assets
Cash and time deposits
Inventories
Real property for sale
Real property for salein progress
Fixed assets
Total assets
Current liabilities
Notes and accounts
payable-trade
Debts (short term, long-term
debt due within one year)
Fixed liabilities
Long-term borrowings
Total liabilities
Net assets
CapitalOther equity capital
Total liabilities and net
assets

As of September 30,
2009
Amount% of total

YOYchange% change

36,478
5,023
28,220
4,121

62.7
8.6
48.5
7.1

39,023
4,298
32,306
12,617

63.5
7.0
52.6
20.5

-6.5
16.9
-12.6
-67.3

24,09941.4

19,68832.0

22.4

21,74758,226
26,112

37.3
100.0
44.8

22,421
61,44438,890

36.5
100.0
64.9

-3.0
-5.2
-34.5

2,267

3.9

7,991

13.0

-71.6

21,11536.3

29,429

47.9

-28.3

17,243
16,28443,355
14,870
4,819
10,050

29.6
28.0
74.5
25.5
8.3
17.3

13,492
12,58853,383
8,061
2,442
5,618

22.0
20.5
86.9
13.1
4.0
9.1

27.8
29.4
-18.8
84.5
97.3
78.9

58,226100.0

61,444

100.0

-5.2

POINT
Reduced inventory assets 12.6%
YOY through decrease of units
and project restart.

Long-term debt rose because ofborrowing in conjunction withrestart of new site acquisitions.
Because of debt repayments (shortterm, long-term debt due within oneyear) from reduction of inventory
assets as a result of property
deliveries, however, reduced total
liabilities 18.8% YOY

Net assets up 84.5% YOY from
earnings and capital increase.

Equity capital ratio
13.1% →25.5%
9

Consolidated Statements of Cash Flows(Reference)(Unit: Million yen)Six months ended Six months ended
September 30, 2010 September 30, 2009
Income before tax adjustments

1,544

1,748

Net cash provided by (used in)operating activities

81

9,680

Decrease (increase) in
accounts receivable

35

25

Decrease (increase) ininventories(1,731)

8,518(Decrease) increase inaccounts payable(614)(1,411)

Net cash provided by (used in)investing activities

(894)

632

Net cash provided by (used in)financing activities

2,093(9,781)

Increase (decrease) in cash andcash equivalents

1,280

531

Cash and cash equivalents at
beginning of period

3,717

3,733

Cash and cash equivalents at
end of period

4,998

4,264

POINT
Cash increase of 81 million
yen from higher income before
taxes and adjustments andadvances received oncontracted units

Used 894 million yen of cashfor purchase of fixed assets

Cash provided from financing
activities of 2,093 million yen
reflected increase in cash fromexercise of share subscription
rights10

Financial Highlights Consolidated (Reference)(Unit: Million yen)Six months ended
September 30, 2010

Six months ended
September 30, 2009

Six months ended
Six months ended Six months ended
September 30, 2008 September 30, 2007 September 30, 2006

16,61627,50024,66332,08829,381（-39.6）（11.5）（-23.1）

（9.2）

（8.6）

2,213

1,909

2,264

3,838

3,030

（15.9）（-15.7）（-41.0）（26.7）

（0.6）

1,530

1,532

1,680

3,327

2,734

（-0.1）（-8.8）（-49.5）（21.7）

（0.1）

1,501

1,656

926

1,818

1,575

（-9.4）（78.8）（-49.1）（15.5）（47.4）Net income

53.46

100.0555.96

108.4293.84

per share (yen)（-46.6）（78.8）（-48.4）（15.5）（28.5）

58,22661,444

92,971

95,51076,673（-5.2）（-33.9）（-2.7）（24.6）（23.4）

14,8708,061

19,991

17,874

15,689（84.5）（-59.7）（11.8）（13.9）（48.3）

458.92486.8

1,207.38

1,078.07

923.98（-5.7）（-59.7）（12.0）（16.7）（27.6）Net sales(Year-on-year change: %)Operating income

Ordinary income

Net income

Total assets

Net assets

Net assets per share (yen)11Main Management Indicators (1)Profitability and Productivity (Reference)Six months ended Six months ended Six months ended Six months ended Six months ended
September 30, 2010 September 30, 2009 September 30, 2008 September 30, 2007 September 30, 2006
ROA (%)ROE (%)

Gross margin (%)

Operating income margin (%)
Selling, general &administrative expenses tosales ratio (%)
Net income to sales ratio (%)
Net sales per employee(million yen)
Ordinary income per employee(million yen)

2.7

2.3

1.7

3.7

3.9

（0.4）

（0.6）

（-2.0）（-0.1）（-0.8）

12.8

22.9

4.7

10.6

10.6

（-10.1）（18.2）（-5.8）（0.0）（-0.1）

32.0

20.3

26.4

25.4

25.9

（11.7）（-6.1）（1.0）(-0.5）

(1.1）

13.3

6.9

9.2

12.0

10.3

(6.4）

(-2.1）(-2.8）(1.6）(-0.8）

18.7

13.4

17.2

13.5

15.6

（5.4）

（-3.9）（3.8）（-2.2）

（2.0）

9.0

6.0

3.8

5.7

5.4

(3.0）

(2.3）

(-1.9）

(0.3）

(1.4）

51.4

83.3

48.0

71.2

79.2

(-38.3）(73.7）(-32.6）(-10.1）(-17.4）

4.7

4.6

3.3

7.4

7.4

(2.1）

(42.0）(-55.7）(0.2）(-23.9）※ Net sales per employee = Net sales÷((Number of employees at beginningof period + Number of employees at end of period)÷2)※ Ordinary income per employee = Ordinary income÷((Number of employees
at beginning of period + Number of employees at end of period)÷2)※ Figures in parentheses in the table: (%) items = Change compared with thecorresponding period of the previous fiscal year; (million yen) items = %change compared with the corresponding period of the previous fiscal year

12

Main Management Indicators (2)Safety and Efficiency (Reference)Six months ended Six months ended Six months ended Six months ended Six months ended
September 30, 2010 September 30, 2009 September 30, 2008 September 30, 2007 September 30, 2006

25.5

13.1

21.5

18.7

20.5

(12.4)(-8.4)(2.8)(-1.7)（3.4)

32,376

37,71954,65649,36430,655(-14.2)(-31.0)(10.7)(61.0)(43.9)

2.2

4.7

2.7

2.8

2.0

(-2.5)(1.9)(-0.0)(0.8)(-0.1)

3.6

3.4

3.5

6.3

7.6

(0.3

(-0.2)(-2.7)(-1.3)(-0.4)

139.7

97.8

130.7

169.7

144.8

(41.9)(-32.9)(-39.0)(24.9)

(3.8)

0.6

0.8

0.5

0.7

0.8

(-0.2）(0.3）(-0.2)(-0.1)(-0.1)

1.2

1.5

0.9

1.2

1.5

(-0.3)(0.6)(-0.3)(-0.3)(-0.3)

2.8

7.6

2.5

3.7

3.9

(-4.8）(5.1)(-1.2)（-0.2)（-1.3)

Equity ratio (%)
Net interest-bearing debt
(million yen)
Net D/E ratio (times)

Interest coverage ratio (times)

Current ratio (%)
Asset turnover ratio (numberof times/year)
Inventory turnover ratio(number of times/year)
Equity turnover ratio (numberof times/year)※ Net interest-bearing debt =(Interest-bearing debt)－(cash and deposits)※ Net D/E ratio = Net interest-bearing debt / Total equity※ Interest coverage ratio = Business profit (Operating income + interest income and dividend
income)÷Interest expense※ Figures in parentheses in the table: (%), (times) and (number of times/year) items = Change
compared with the corresponding period of the previous fiscal year; (million yen) items = % change
compared with the corresponding period of the previous fiscal year13New Medium-Term Business Plan

Takara Leben
Building Action 2011
～Capitalizing on a Year of Recovery with a New MediumTerm Business Plan Geared Towards Renewed Growth ～14

Background to the New Medium-Term Business
Plan Reforms (Condominium Market Trends 1)
Change in supply and completed unit inventory by year

80,000-90,000 unit period

100,000
90,00079,89789,256 88,516

86,29784,885 82,795

80,00070,54370,000

Number of
供給戸数
units supplied

95,645

Number of completed units
年末完成残戸remaining at year-end

83,183 85,429 84,148
74,463

66,30861,02160,00050,00044,27039,54843,73336,37640,00030,00025,910 26,248

20,00010,000

8,024
1,469

6,500

4,182

2,902

4,680

3,089

2,111

3,859

3,173

2,735

2,376

2,825

3,095

1,983

1,422

2,103

3,076

6,064

7,389

0
7th condominium boom

6th condominium boom

Data: Real Estate Economic Institute Co., Ltd.

Collapse of Lehman
Brothers

Sharp rise in oil prices
Amendment of BuildingStandard Law
Subprime loan problem

Structural calculation
sheet forgery scandal

Nikkei Average hits
record post-bubble lowof ¥7,603

Year of record supply

Yamaichi Securities
voluntary liquidation

Super-strong yen$1 =¥79.75

Collapse of bubble
economy in Japan

1990 1991年
1991 1992年
1992 1993年
1993 1994年
1994 1995年
1995 1996年
1996 1997年
1997 1998年
1998 1999年
1999 2000年
2000 2001年
2001 2002年
2002 2003年
2003 2004年
2004 2005年
2005 2006年
2006 2007年
2007 2008年2008 2009年
2009
1990年

2010 Tokyo Metropolitan Area Condominium Market Trends

15

Background to the New Medium-Term Business
Plan Reforms (Condominium Market Trends 2)
Change in number of condominium firms and number of units supplied in Tokyo metropolitan area

2010

Fiscal year

2005

2006

2007

2008

2009

Number of
firms

256

239

228

176

125

97

Change―-17 firms-11 firms-52 firms-51 firms-28 firms

Number of units
supplied

84,14874,46361,02143,73336,376

26,567･End of 80,000
units/year era

Topics･Aneha Incident(Structural
Calculation
Forgery Problem)

7th condominium boom

･Subprime loan
problem･Number ofcondominium
units supplied
declined(As of Aug. 31)･12,000 unsold
condominium units･Debut of discountcondominiums･Number of･Recovery trend in
unsoldnumber of
condominiums
condominium
fell to 7,000 units units supplied
exchange listed firms
as of September･Rapid increase inconstruction･Increase incosts
bankruptcies of･Amendment of
Building
Standard Law･Collapse of Lehman
Brothers

Sharp rise in oil prices

The number of newly built condominiums supplied fell from 84,000 units in 2005 to 36,000 units in 2009 because of a gradual drop in the number of units
supplied since the end of the 7th condominium boom, amendment of the Building Standard Law, the subprime loan problem and collapse of Lehman Brothers.
The number of firms supplying condominiums in the Tokyo metropolitan area has declined by 159 companies from 256 to 97 firms.
Data: Recruit Co., Ltd. Survey of Housing Companies

16Current Real Estate Market (1)Characteristics of the market as it begins to improve.
Tokyo metropolitan area condominium market trends for 2010 First Half
■ Characteristic #1: Supply excessively concentrated
in central wards of Tokyo

Central Tokyo

2008 1st half2009 1st half2010 1st half

7,169 units

6,835 units

9,098 units

Outer Tokyoarea

2,060 units

1,443 units

2,035 units

Kanagawa

6,142 units

3,997 units

4,648 units

Saitama

2,735 units

1,655 units

2,576 units

Chiba

3,376 units

1,958 units

1,814 units

21,482 units

15,888 units

20,171 unitsTokyo
metropolitan area(※Source: Real Estate Economic Institute Co., Ltd., Tokyo Metropolitan
Area Condominium Market Trends)■ Characteristic #2: Decline in share of units supplied forfirst-time buyer bracket
2009 Condominium Market Trends for First-time Buyers
in the Tokyo Metropolitan Area
Selling price of 35 million
yen or lessandLiving space of 60㎡ or more

Number of units supplied inTokyo metropolitan area

２００７

Share

２５．４％

２００８

１５，５２５ units
９，３４４ units

２００９

７，０９２ units

２１．４％
１９．５％

Saitama Prefecture

Chiba Prefecture

２００７

３，８４７ units

６，１７１units

２００８

２，７００ units

３，３８４ units

２００９

２，１７２ units

１，８７０ units

Decline in share of comparatively low-priced condominiums in suburbs for families.

(※Source: Real Estate Economic Institute Co., Ltd., Trend in Supply of Units for First-time Buyers in 2009)■ Characteristic #1:■ Characteristic #2:■ Result:

Market configuration centered on “high-priced city center properties” continued, with much of supply
targeted at the limited high-income earner bracket.
Supply of suburban condominiums for families fell sharply because of successive bankruptcies of middlemarket and small and medium-sized developers.
Supply is biased toward one segment of the high-income bracket, creating a need for supply of suburban
condominiums for families that is aimed at the high-volume segment.

Supplying suburban condominiums for families, with a focus on the high-volume submarket, also is of major significance for revitalization of the market.

17□タカラレーベンの強み② ［顧客優位性：価格優位性］

Current Real Estate Market (2)Supply condominiums that serve the first-time buyer bracket, which is the largest submarket.
Takara Leben’s unique aim is to focus on “long-term stable growth” while being supported by stable demand.
[ Price dominance ][ Customer dominance ]■ Comparison of Tokyo metropolitan area average price and Takara Leben
average price by region in the Tokyo metropolitan area

■ Type of housing in Tokyo metropolitan area by annual income<2003>(Unit: Households)

Annual income(10,000 yen)

Owned home

RentalShared860,400

875,600

11,300400

400－500

835,400

711,800

10,300400

500－ 700

1,383,400

831,300

15,900300

700－1,000

1,508,200

535,500

13,100200

1,000－1,500

860,900

192,100

6,100

200

(※Source: Ministry of Internal Affairs and Communications, 2003 Housing and Land Survey"

Annual income(10,000 yen)

(Unit: Households)

Owned home

Rental300－400

980,200

400－500

２００９

Other

300－400<2008>(※ “Takara Leben average pride” calculated for April to March fiscal period)

SharedOther942,000

8,600

300

885,400

714,300

9,300

200

500－ 700

1,542,000

876,300

13,600500

700－1,000

1,634,400

527,300

12,500100

1,000－1,500

834,300

171,100

5,500

0Tokyo metropolitan
area average priceCentral Tokyo

51.9 million yen

Outer Tokyo

43.35 million yen

Kanagawa

42.41 million yen

27.73 million yen

Saitama

36.57 million yen

26.44 million yen

Chiba

36.76 million yen

27.18 million yen

33.11 million yen(※Source: Real Estate Economic Institute Co., Ltd., Tokyo Metropolitan Area Condominium Market Trends)■ Change in Tokyo metropolitan area average price and Takara Leben
average price over the past 3 years(※ “Takara Leben average price” calculated for April to March fiscal period)

Tokyo metropolitan
area

Takara Leben(※Source: Ministry of Internal Affairs and Communications, 2008 Housing and Land Survey)

Takara Leben average
price

２００７

２００８

２００９

46.44 million
yen
32.62 million
yen

47.75 million
yen
29.43 millionyen

45.35 million
yen
29.18 million
yen(※Source: Real Estate Economic Institute Co., Ltd., Tokyo Metropolitan Area Condominium
Market Trends)

18

Summary of Medium-Term Business Plan (1)Renewed growth strategy serving as a basis for looking further ahead and planning “additional growth”“Three years for strengthening our base” in order to prove our worth in new markets based on the “management reorganization” undertaken in 2009 !

■ Medium-term “recognition of issues” and “measures”

Theme of “Takara Leben Building Action 2011”
Strategic and tactical rebuilding aimed at “renewed growth”■ Underlying concept

Expected Risks
Overheated Tokyo metropolitan area and emerging competition forsuburbs

Follow-up to the framework of our former medium-term businessplan “TAKARA LEBEN-BUILDING 2010”
Seek to increase corporate value, based on continuation of a decisive, long-term
stable growth path.
Seek continuous development of the Takara Leben Group as a true public company.

Strategies

Repeat of rise in construction costs < Deterioration of earnings base >Profit planning after effects of lowest cost accounting revaluation anddeferred tax credits are eliminatedLower equity ratio due to asset expansion < Financial balance
deterioration >Results

Build stable supply organization in
the condominium business

Achievement of absolute earnings baseand brand penetration

Enjoy brand penetration and its results

Achieve “customer loyalty = customer
satisfaction”

Improve financial position based on
strategic corporate activities

Achieve “firm loyalty = employee
satisfaction”

Promote flat organization andtransparency

Increase corporate value

Necessary Measures
Establish superiority in key Tokyo metropolitan area suburban
zones
Business revenues and expenditures that reflect rising costs
Rebuild absolute income base

Synergistic effects acrossRealize continuous development

the entire Group

Establish a stable business cycle and financial strategy
TAKARA LEBEN-BUILDING 2010
Fiscal 2008

Fiscal 2009

Fiscal 201019

Summary of Medium-Term Business Plan (2)New Medium-Term Business
Plan Roadmap

Consistent Positioning
Basic principle- Takara Leben Building Action 2011 -“Ideal, affordable housing that anyone can buy with confidence”

1. Suburban Tokyo metropolitan
area
Wealthy area with people making
annual income of 4.0 – 7.0 million yen

2. First-time buyers (particularly
for families)
Stable demand that is little affected byeconomy changes

3. 4.0–7.0 million annual income
bracketRenting households in the Tokyo
metro area represent fertile latentdemand

4. 50 - 100 units family
condominiums
Consider balance between area
demand and business period

Closely related topics
1. Decrease in competitors andproperties

39th Period FY

40th Period FY

41st Period FY

ending March 2011

ending March 2012

ending March 2013

Reduction in inventory and competitors in eacharea and stabilization of supply and demand will
provide an advantage in terms of purchasing andselling

Purchasing
strategy

Carefully select purchases
based on Takara Leben’s “threecriteria”

Product
strategy

Improve the revenue base throughpromotion of short-term revenuegenerating business

Sales
strategy

Ensure a stable business planand solid profit structure

Financialstrategy

Establish a stable base via athorough financial strategy

2. Solid demand from primary target
group
Despite the drop in consumer confidence during
the recent economic downturn, demand is still
stable among the primary target group

3. Increasing target group due todeflation
The recession and deflation are increasing the sizeof the 4.0-7.0 million yen income group. Also,
employment insecurity is increasing the desire forinexpensive properties.

Action plan

Main targets

Rebuild strategy and tactics aimed at“renewed growth”

4. Area results enable risk taking
Possible to properly judge optimum business size ineach area because of each area’s ample actual
results.

20

Summary of Medium-Term business plan (3)Purchasing
strategy

Product
strategy

Value chain

Financialstrategy

Salesstrategy

Maximization of corporate value“Ideal, affordable housing thatanyone can buy with confidence”

Positioning of Renewed Growth Strategy

21

Individual Strategies (Purchasing Strategy)
Purchasing Strategy “Three Criteria”

Purchasing Strategy
Carefully select purchases based on
Takara Leben’s “three criteria”[Earnings Criteria]

Dig through the wealth of land information to access profitability!
Drop in site cost
Lower construction
costs

Acquire land before
other companies

Wealth of
landinformation

Weak competition insuburban areas

Location criteria

Wide area(Tokyo suburbs)

 [Earnings Criteria]━ Ensure bottom line with grossmargin of at least 25%

 [Location Criteria]━ Near stations (within a 10 min. walkfrom station)
Ease of access to central Tokyo

Site that can be
expected toprovide at least
25% return tothe bottom line

Demand criteria［Ｌｏｃａｔｉｏｎ Ｃｒｉｔｅｒｉａ］ Unbeatable access (walking distance) to major stations!
－ LEBEN REVALE Nakaitabashi Venus Tower －－ LEBEN SQUARE Virtue of Residence －Location

Nakaitabashi,
Itabashi-ku, Tokyo

Location

Taniguchi, Misato,
Saitama Prefecture

AccessTobu Tojo Line
Nakaitabashi Station

AccessTsukuba ExpressLine
Misato-chuo Station“1 minute to the station, 8 minutes to Ikebukuro”
provides access comparable to living near
Ikebukuro Station“4 minutes on foot to the station, 20 minutes to
Akihabara” provides access comparable to living
near Akihabara Station[Supply & Demand Criteria]
Area-specific purchasing that focuses on the balance of supply and demandand emphasizes area demand!
－ Leben Heim Ofuna Partir －For example…
 [Supply & Demand Criteria]━ Thorough area marketing

In recent years,
purchasing has
focused on areas withlow supply but close
to stations.

The Ofuna area is a popular area,
but supply has been tight in recent
years; by offering new supply at theright time, Takara Leben has beenable to realize solid sales activity.

22

Individual Strategies (Product Strategy)
Product Strategy

Detached housingbusiness(built by Takara Leben)

Renewal business(used property resale)

Resale business(purchase and resale)

We are aiming to implement a
supplemental earnings systemconstituting 30% of net sales!

Improve the revenue base through promotionof short-term revenue-generating business

We’re more than justcondominiums.
We’ve started “Takara no Ie”.

A system of consistent reliability means affordable housing prices.
Siteacquisition
We begin by gathering theinformation you don’t know
about an area until you live
there – where the closest
stations and supermarkets
are, and how the areachanges in appearance
during the day and at night
and on weekdays andweekends. As homebuilding
professionals, we scout out
and acquire low-cost land

Purchasing
We scrutinize the costs of allmaterials that go into a
property – every last pieceof wood, nail or screw that isused. And by doing all of ourpurchasing in bulk, we areable to keep the total costdown.

Design andconstruction
Takara Leben not only
carries out its own design,
we perform our own
construction as well as,
utilizing partner construction
firms to ensure reliability.
Our middle-man margin issignificantly reduced as aresult.

Sales
Takara Leben products are
directly sold by those mostfamiliar with them –Takara
Leben’s sales staff. This
helps to keep down excess
costs.

10 Year Peace of Mind Guarantee
Takara Leben provides scrupulous after-care.
Our 10 year guarantee offers reliable maintenance to customers.
We also handle refurbishment and other after-care needs.

23Individual Strategies (Sales Strategy)
Internet Marketing

Sales Strategy
Ensure a stable business plan and solid
profit structure－ Number of people requesting brochures －Year ending
March 2008

Year ending
March 2009

Year ending
March 2010

8,813

11,132

13,236－ Number of Model Room visitors －2,737Internet marketing

3,658

4,616

－ Number of people reached by Internet who signed agreements －

492

509

689

The Leben Club
－ Number of Leben Club members －Company intranet

The Leben Club

Raising the profile of Takara
Leben properties through avariety of marketing activities
allows us to sell high-quality,
affordable housing to a large
number of customers.

Year ending
March 2008

13,603

Year ending
March 2009

Year ending
March 2010

33,034

46,145Company Intranet－ Number of corporate partners －Year ending
March 2008132

Year ending
March 2009

companies

146

companies

Year ending
March 2010

149

companies－ Number of employee partners －Model room
marketingYear ending
March 2008

Year ending
March 20093.92 million
people4.23 million
peopleYear ending
March 20104.27 million
people24

Individual Strategies (Financial Strategy)
Financial Strategy
Establish a stable business base via athorough financial strategy
Promotion of a smallscale funding business
model

Secure a stable
cash position
Strategic purchasing,sales and collection
planning

Financial strategy notdependent on indirect
financing

Build cooperative
relationships withnumerous financial
institutions

What is a “small-scale funding business model”?
This business style involves a collaboration with construction
companies, trading firms and other companies and partnercompanies engaged in the condominium business.
The commitment period of funding for condominiums is long(about one and a half to two years). By adopting a sharedbusiness style with partner companies, this commitment period
can be shortened or the amount of funding decreased. This
enables Takara Leben to put its funds to use effectively for its
next projects.
< Partial acquisition with partnercompanies >Joint Venture business with partner companies“Land”

Partnercompany
50-70%

Achieve a baseequity ratio in
the 30% range< Partner company land acquisition >“Land”
TakaraLeben
30-50%－ Development example －Partner company 100%
Joint businessbetween partnercompany and
Takara Leben

Exclusive wholesale
contract between
partner company and
Takara Leben

LEBEN REVALE Nakaitabashi Venus Tower ーThis project involved the sale of a former corporate headquarters
building in Tokyo’s Nakaitabashi area, with the land being leased and aforward commitment-type agreement (granting acquisition uponcompletion of construction) concluded with a construction firm.
The advantage of this setup was that, in addition to procuring funds
from the sale of the land, essential zero capital would be required for thisdevelopment project if all units were sold before the completion of
construction,.

25

Numerical Targets

Consolidated Income Statements(Millions of yen, %)Results for 38th
financial period

Forecast
results for 39th
financial period

Forecast
results for 40th
financial period

Forecast
results for 41st
financial period

Sales

51,95547,76056,22060,190Operatingincome

3,212

5,550

6,210

7,955

Ordinary income

2,378

4,345

5,090

6,830

Net income

2,244

4,000

4,315

4,260

Equity ratio

15.9

29.2

31.1

32.8
26

Recent Topics (1)Purchasing and product development topics!
“Steady acquisition of project sites” and independent product development!
■ Successfully increased capital through first rights issues in Japan!

■ Expand purchasing area! Improve market presence through strong purchasing
results!

Form : Rights issue: Allotment of new share subscription rights without
contribution (non-commitment)

In base areas in Tokyo, Ibaraki north and south, Saitama area

A “rights issue” is a capital increase through an allotment of new shares on a preferential
basis to existing shareholders. In contrast to a public offering of stock, such issues havebeen used in Europe and other markets as a means to avoid the dilution of existing
shareholders’ interests, and since last year the Tokyo Stock Exchange had sought to expand
the use of this mechanism in Japan.

Purpose : Achieve more rapid acquisition of locations using flexible funding!

Tama, Ofuna and Kamakura areas where supply has decreased in recent years
Popular areas in central Tokyo that Takara Leben has not previously targeted(Tentative name)
LEBEN HEIM Asakusa(Tentative name)
LEBEN HEIM Sugamo

Result : Amount raised 4.7 billion yen / Rights exercised 95.7 %Number ofshares issues

17,540,333 shares

33,386,070 shares

Capital amount

2,442 million yen

4,819 million yen■ Began making purchases again in July 2009! Responding aggressively to the■ Established a “detached housing business division” to strengthen our
detached housing business using our built by Takara Leben organization!

Increased the number of employees in order to ensure an efficient
supply organization as part of our effort to strengthen our short-term
revenue generating business!

“excellent site acquisition environment”!
Aggressively purchased profitable project sites, prior to development in suburban areas!

■ First condominiums in the Tokyo metropolitan area to use “solar power
generation that enables individual condominiums to sell electric power”!
LEBEN HEIM Hikarigaoka Park

■ Projected unit sales over the next 3 years(Condominium units)

Year ending
March 2011

Year ending
March 2012

Year ending
March 2013

Number of units: 110

With cash from rights issue inhand, we can purchase moreaggressively!
Ensures lineup up to 60% forbusiness period ending
March 201327

Recent Topics (2)Sales activity topics! “Excellent sales progress” and “improved profit margins” !
■ Steadily supply new sales properties with an eye on the next two businessperiods!
Adjust start of sales while carefully monitoring project duration and overallsales conditions.

■ Steady sales centered on new projects because of a sense of housing scarcity
among first-time homeowner bracket!
First dwellings in the Tokyo metro area that are easy on theenvironment and easy on the family budget!
－ Adoption of solar panel system that enables eachcondominium to sell its own electricity－

Leben Heim Hikarigaoka Park
Total units: 110■ Although the contracted ratio for number of units reported as sales is low, thecontracted ratio for number of contracted units is already at a high-level!
Units delivered (total number of units sold) in the second quarter of the business period
ending March2011 and projected full-year contracted ratio

FY ending 2nd half
March 2011

Leben Square Virtue of Residence
Total units: 207
Contract rate over 80% within 7months from start of sales

Number alreadydelivered

Contracted
ratio

１，０７８

３６４

３３．８％

Contracted ratio for number of contracts and number of full-year units fordelivery in the second quarter of the fiscal year ending March 2011
Units plannedfor delivery

Numbercontracted

Contracted
ratio

FY endingMarch 2011

１，０７８

８７４

８１．１％

FY endingMarch 2012

１，３９８

１９７

１４．１％

Contract rate over 90% within 2months from start of sales
Four minutes on foot to the station. 20 minutes
direct to Akihabara.
Offers speedy access to central Tokyo

Units plannedfor delivery■ Improved profit margin as a results of “solid sales activities” and “lower selling
costs”

Central government× Prefecture × City × Redevelopment
association

New large-scale redevelopment
project
ＬＵＣＩＤＡ ＴＯＷＥＲ
Total units: 110
Urban redevelopment project that received Class 1
certification from the central government

Achieved high contracted units
ratio centered on newly
marketed projects

Reduced customer acquisition
costs by strengthening sales
promotions using the Internet

Improved profit margin!

28

Brand Range

LEBEN HEIM
Our mainstay brand of family condominiums,
designed with thorough attention to detail toprovide a content family lifestyle

ｆｏｒ Ｆａｍｉｌｙ
We offer high-quality homes where families
can live comfortably at reasonable prices.

レーベンハイム

レーベンスクエア

レーベンリヴァーレ

レーベンシティオ

レーベンリゾシア

レーベンプラッツ

ル・アール

ＬＥＢＥＮ ＨＥＩＭＬＥＢＥＮ ＳＱＵＡＲＥＬＥＢＥＮ ＲEＶＡＬＥＬＥＢＥＮ ＣＩＴＩＯＬＥＢＥＮ ＲＩＳＯＲSＩＡＬＥＢＥＮ ＰＬＡＴＺ

ＬｅＡｒｔ

29

Brand Range (1)LEBEN HEIMLEBEN SQUAREOur mainstay brand, withthorough attention to family
lifestyles

From just a residential area
to a residential area whereresidents can enjoy life.

A 5-minute walk to the station. Just 30
minutes to Shinjuku it. Two minutes to
Keio-Hachioji Station.
Built in a quiet residential area in a
“Class 1 low-income bracket housingarea.” All units face southwest.
Located in well-appointed
surroundings offering convenientfacilities, including a supermarket just
5 minutes by foot.

The Ciao Land Project is seeing more
and more starts in Phase 2. Adjacent to
a commercial facility. All-electricamenities, with parking for all units.
Also offers many common facilities
including a mini-theater, reception desk
service and even a music hall.

LEBEN HEIM
Hachioji Eastside Hills

LEBEN CITIOLEBEN REVALE

Offering an urban lifestylefor singles and couples
with no children

Designer condominiums tostimulate your imagination
3LDK angled units in the 35 million
yen range. On-site parking for allunits and visitors.
<Access to 3 stations and 4 raillines> Direct access to Shimbashi in
18 minutes, just over 30 minutes to
Shinagawa. The birth of 119 designer
condominiums uniting history andlandscape in Katsushika Ward.

LEBEN SQUARE
Higashi-washinomiya Bright Arena

LEBEN REVALE
River Suite

Compact condominiums that achieve
superb convenience, including
comfortable access to the heart of thecity, while combining the functionality,
rationality and amenities demandedby the urban lifestyles of singles andcouples.

LEBEN CITIO
Kawaguchi Panorama Stage30

Brand Range (2)LEBENRESORSIALEBEN PLATZ

New concept resort
condominiums that meld
leisure and living

Single family dwellings
aimed at true serenity andrejuvenation

221 condominiums – all with an ocean
front view- just 45 minutes from Tokyo
Station. A full range of amenities,
including hot spring facility withoutdoor and family baths,
guestrooms, roof terrace, and bar andlounge. A residential gem overlooking
the sea.

36 minutes direct to Ueno. 41 minutes
to Tokyo Station. Each unit has two
parking spaces plus a “super loft”.
Superior 2x4 dwellings that combine
amenities and durability.
<From 63 tsubo, starting at 23.8
million yen >LEBEN RESORSIA
Vesti BlueLEBEN PLATZ
Shiny Town

LE ART
Created by adding living
value to new renewal

A big new town, home to 1,500
households and families. Each
residence enjoys its own two
standard parking spaces. All
electric amenities. Eligible for
eco-points. Parks, educational
facilities and shopping are allavailable within walking distance.

The attraction of “refurbishedcondominiums”
・ Affordable compared with newly built properties
・ Confirm the actual property and rooms before
purchasing
・ Option system to realize your desired living
space
・ A single refurbishment from the building exterior
to interior・ Selection of trustworthy, quality buildings fromexisting stocks

Le ArtSoga Premium Hills

LEBEN PLATZ
Midorigaoka Sakura & Resort

31Enquiries Relating to These Materials
Marketing Planning Office
Management Planning Section

TEL：03-5324-8720
FAX：03-5324-8722
E-mail：irinfo@leben.co.jp
These materials were prepared to provide information regarding business performance for the six months ended September 30, 2010 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, 2010. These materials, as well as answers, projections, estimates, and other information provided in the subsequent question andanswer session are based on Takara Leben’s best judgment as of the preparation of this material, and do not constitute a guarantee or promisethat anything contained within will be realized or achieved, nor do they provide any guarantees or promises with regard to the accuracy orcompleteness of the information. The content of these materials is subject to change without prior notice.