Second Quarter Consolidated Financial Reportfor the Six Months Ended September 30, 2013 (Japan GAAP)
October 28, 2013

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, 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 11, 2013
December 10, 2013
Yes
Yes

1. Consolidated Operating Results for the Six Months Ended September 30, 2013
(April 1-September 30, 2013)(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

Six months ended September 30, 2013

17,916(48.2)

542(82.4)

159(94.4)%

Six months ended September 30, 2012

34,560

112.8

3,088

131.2

2,827

210.4

Millions of yen%

257 (87.5)
2,054

188.2

(Note) Comprehensive income: Six months ended September 30, 2013: ¥252million ((87.7)%) / Six months ended September 30, 2012:¥2,044million (185.0%)
Net Income perShare

Diluted Net Incomeper ShareYenYenSix months ended September 30, 2013

2.21

2.20

Six months ended September 30, 2012

16.79

16.77

The Company implemented a four-for-one common stock split on July 1, 2013. Net income per share and diluted net income pershare are calculated as if the stock split had been implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets

Net Assets

Equity Ratio

Millions of yen

Millions of yen%

As of September 30, 2013

80,99422,19027.3

As of March 31, 2013

75,01324,14732.2<Reference> Shareholders’ equity at end of period: September 30, 2013: ¥22,136 million / March 31, 2013: ¥24,131 million

2. Cash Dividends
Annual Cash Dividends per Share
1Q

2Q

3Q

YenYenYear Ending March 31, 2013

-5.00

Year Ending March 31, 2014-1.50

Year-EndYen

Year Ending March 31, 2014 (Forecast)

TotalYenYen-

10.00

15.00

-

3.00

4.50(Note) Has the Company changed its dividend forecast for the current quarter: No(Note) A decision to implement a stock split at a ratio of 1:4 for common sto ck effective as of July 1, 2013 was determined througha resolution at the Board of Directors meeting held on May 13, 2013.

3. Consolidated Operating Results Forecast for the Fiscal Year Ending March 31, 201 4(April 1, 2013-March 31, 2014)(Percentage figures represent year-on-year change)
Net SalesFull year

Operating Income

Ordinary Income

Net Income perShareNet Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

yen

72,250

11.3

9,500

49.3

8,715

50.5

5,380

32.1

46.35(Note) Has the Company changed its consolidated forecast during this quarter: Yes(Note) For a revision of the consolidated operating results forecast, please refer to the notice of a revision to the results forecast
announced on October 28, 2013. The cancellation of treasury stock ( 386,070 shares) on May 15, 2013 and the implementation astock split at a ratio of 1:4 for common stock effective as of July 1, 2013, were decided by a resolution at the Board of Directors
meeting held on May 13, 2013.

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: 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 September of30, 2013:b.

As of September 30, 2013:c.

Six months ended September 30, 2013:(Note)132,000,000 shares

As of March 31, 2013: 133,544,280 shares

16,372,907 shares

As of March 31, 2013:14,021,084 shares

116,537,044 shares Six months ended September 30, 2012: 122,363,688 shares

The Company implemented a four-for-one common stock split on July 1, 2013. Numbers of shares is calculated as if

the stock split had been implemented at the beginning of the previous fiscal year.

(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 Instr uments 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, 2013

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 (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 IncomeSecond-Quarter Year-to-Date Period ............................................................................................................... 7
Quarterly Consolidated Statements of Comprehensive Income
Second-Quarter Year-to-Date Period ............................................................................................................... 7(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, 2013

1. Qualitative Information Pertaining to Consolidated Operating Results for the Quarter(1) Qualitative Information Pertaining to Consolidated Operating Performance
The first half of the fiscal year under review was still far from rosy, corporate capital expenditures andpersonal spending, especially on certain big-ticket items, have recovered, backed by expectations for Abenomics
over the outlook for the Japanese economy. In the real estate industry, where the Takara Leben Group operates,
the contract ratio was high, as buyer confidence gradually increased due to expectations for the end of deflation.
The suburbs of Tokyo, an area the Company focuses on, attracted attention due to increased transportation
convenience to central Tokyo associated with railroad companies sharing tracks and former zaibatsu companies’
aggressive operational development, and the demand environment remained favorable.
Under such circumstances, the Company will continue to promote the supply of solar-powered condominiums,
and the Company will remain committed to its basic concept of ‘ideal, affordable housing that anyone can buy
with confidence’ as well as its corporate vision of ‘thinking of happiness; making happiness’ and its corporate
mission of ‘creating together with eager minds, sincere efforts and ample talent,’ and continue to work on
product plans capturing the needs of the time and promote business activities focusing on its customers as its
ultimate supporters.
①Performance by business segment
In the second-quarter year-to-date period of the Takara Leben Group’s fiscal year ending in March 2014,
sales from the real estate sales business amounted to ¥15,172 million, down 52.3% on a year-on-year basis. This
reflected sales in the new built-for-sale condominium business, as well as sales in the newly-built detachedhousing business, renovations business and resale business.
Gross margin ratio increased 1.6% compared with the end of the previous consolidated fiscal year to 22.9%.
The significant increase was mainly attributed to price revision.
In the real estate rental business, sales totaled ¥833 million, up 17.8% 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 33,935 units of residential condominiums
were ¥1,353million, up 7.0% on a year-on-year basis.
Sales from other businesses amounted to ¥557 million, down 30.4% on a year-on-year basis, mainly attributableto revenues from orders for large-scale repair work and revenue from selling electric power in the mega-solarbusiness.
As a result, Net sales for the second-quarter year-to-date period of the current consolidated fiscal year
amounted to ¥17,916 million, down 48.2% on a year-on-year basis; Operating income amounted to ¥542 million,
down 82.4% on a year-on-year basis; Ordinary income amounted to ¥159million, down 94.4% on a year-on-yearbasis; and Net income amounted to ¥257 million, down 87.5% on a year-on-year basis.

-2-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

②Contracted 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 1,570 units, compared with a full-year target of 1,710 units scheduled fordelivery. The contract ratio was at 91.8%, showing a steady growth in the business.
(Contracts signed versus number of units forecast for New built-for-sale condominium delivery)
Units scheduled for delivery Number of contracts signed
Contracted ratio (%)(units)(units)Six months ended
September 30, 2012
Six months ended
September 30, 2013

1,630

1,543

94.7

1,710

1,570

91.8

(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 second-quarter consolidated
accounting period under review, total assets were ¥80,994 million, an increase of ¥5,980 million compared withthe end of the previous consolidated fiscal year. The increase mainly reflected an increase in inventories fromnew purchases and purchasing of business assets.
(Current Assets)
Current assets increased ¥4,643 million compared with the end of the previous consolidated fiscal year to¥60,576 million. This mainly reflected an increase in inventories from new purchases.
(Non-current Assets)
Non-current assets increased ¥1,336 million compared with the end of the previous consolidated fiscal year to¥20,418 million, mainly reflected, mainly due to purchase of business assets.
(Current Liabilities)
Current liabilities amounted to ¥32,585 million, an increase of ¥3,559 million from March 31, 2013, mainly
due to an increase of short-term borrowings.
(Non-current Liabilities)
Non-current liabilities amounted to ¥26,219 million, an increase of ¥4,378 million from March 31, 2013,
mainly due to an increase of borrowings associated with new purchases.
(Net Assets)
Total net assets decreased ¥1,957 million compared with the end of the previous consolidated fiscal year to¥22,190 million. The decrease was attributed to the net assets for the second quarter was less than distribution ofsurplus and purchase of treasury stock.
(3) Qualitative Information Pertaining to Forecasted Consolidated Operating Results
For a revision of the consolidated operating results forecast, please refer to the notice of a revision to theresults forecast announced on October 28, 2013.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

2. Summary Information (Notes)(1) Changes to Material Subsidiaries during the First-Quarter Year-to-Date PeriodThe 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
The Company had no pertinent matters to report.

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Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of yen)
As of March 31, 2013

As of September 30, 2013ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable, trade

17,911

19,045323

317

Real estate held for sale

2,067

466

Real estate held for sale in progress

33,30837,386

Other

2,353

3,393

Allowance for doubtful accounts

(32)

(33)

55,93260,576

Buildings and structures (net)

5,011

5,129

Land

12,471

13,251

122793

17,606

19,175551

525

Total current assets
Fixed assets:
Tangible fixed assets

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

1,036

831

Allowance for doubtful accounts

(112)

(113)

Total investments and other assets

924

717

19,081

20,41875,01380,994

Notes and accounts payable, trade

7,920

5,374

Short-term borrowings

Total fixed assets
Total assets
LIABILITIESCurrent liabilities:

2,629

6,887

Current portion of long-term borrowings

11,375

12,496

Income taxes payable

1,608

79

277

296

Reserve
Other

5,214

7,449

Total current liabilities

29,02532,585

Noncurrent liabilities
Long-term borrowings

20,84925,149Reserve

202

230

Other788

840

21,84026,21950,86658,804

Total noncurrent liabilities
Total liabilities-5-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

(Millions of yen)
As of March 31, 2013

As of September 30, 2013

NET ASSETS
Shareholders’ equity
Capital stock

4,819

4,819

Capital surplus

4,947

4,817

Retained earnings

16,991

16,708Treasury stock(2,630)(4,207)

Total shareholders’ equity

24,127

22,137

3(1)

3(1)

16

53

24,14722,19075,01380,994

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-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

(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, 2012

Six Months Ended
September 30, 2013

Net sales

34,56017,916

Cost of sales

27,50513,605

Gross profit

7,054

4,311

Selling, general and administrative expenses

3,966

3,769

Operating income (loss)

3,088

542

Interest income

22Dividend income

Non-Operating income:
22Commissions received

56

24

Income from equity method investment

64

10

Miscellaneous income

40

8Total Non-Operating income

166

47

421

397

532

Non-Operating expenses:
Interest expense
Miscellaneous losses
Total Non-Operating expenses

427

430

2,827

159

Settlement received－330

Reserve for directors' retirement benefits

53－

Total extraordinary gains

53330

Loss on sales of noncurrent assets－39

Loss on disposal of fixed assets

210

Other09

Total extraordinary losses

2249

Net income (loss) before income taxes

2,858

440

Income taxes, inhabitant taxes and business taxes

644

69

Income tax adjustments

160

113

Total income and other taxes

804

183

Income (loss) before minority interests

2,054

257

Net income (loss)

2,054

257

Ordinary income (loss)
Extraordinary gains

Extraordinary losses-7-Takara Leben CO., LTD. (8897) Consolidated Financial Report for the Six Months Ended September 30, 2013

Quarterly Consolidated Statements of Comprehensive Income
Second -Quarter Year-to-Date Period(Millions of yen)
Six Months Ended
September 30, 2012
Income (loss) before minority interests

Six Months Ended
September 30, 2013

2,054257

Net unrealized gains on available-for-sale securities

(9)

(4)

Total other comprehensive income

(9)

(4)

2,044

252

2,044252

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, 2013

(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¥2,000 million, by resolution of the meeting of the Board of Directors held on May 13, 2013. And 386,070 sharesof treasury stock were cancelled.
In addition to the above, with the disposal of treasury stock through the exercise of stock options representing¥26 million, the number and amount of treasury stock at the end of the second quarter of the fiscal year underreview were ¥4,207 million, respectively.

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