Earnings Results Briefing
For the Year Ended
March 31, 2016May 13,2016

ContentsYear Ended March 31, 2016 Summary・・・・・・・・

Ｐ３

Year Ending March 2016 Topics・・・・・・・・

Ｐ

９Year Ending March 2017 Outlook・・・・・・・・

Ｐ １７

Plans of FY March 2017・・・・・・・・

Ｐ １９Dividends・Capital Policy

・・・・・・・・

Ｐ ３２

Company Profile
Company name ：Takara Leben CO.,LTD.
Head office's location ：Shinjuku-Sumitomo bldg. 26F 2-61, Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan
Representative: Kazuichi Shimada, President
Capitalization：4,819 million yen (As of March 31,2016)
Established：September 21, 1972
LEBEN Gotanno Luna Tower

Number of Employees：284 (As of March 31,2016)

Security Code：8897, the First Section of TSE
Contact：irinfo@leben.co.jp

1Four Decades of Business
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

2011
2012

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

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 ExchangeEstablished Hokuriku Office
Established Tohoku Office

2004

Listed on the first section of the Tokyo Stock Exchange

Made Oasis Co.,Ltd.(the present Takara Leben Realnet) its subsidiary

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

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."

2

LEBEN Kotesashi Revolve

Year Ended March 31, 2016 Summary3

Consolidated Income Statements（Unit Amount=Million yen ）Year ended
March 31, 2015

Year ended
March 31, 2016

YOY
changeNet sales

76,95676,268△0.9%

Operating profit

9,257

7,563

△18.3%

Ordinary profit

8,540

6,708

△21.4%Net income

5,718

4,308

△24.7%
4

Consolidated Income Statements（Unit Amount=Million yen ）Revisions to earningsestimates(January 25, 2016)

Year endedMarch 31, 2016

Difference

Net sales

75,20076,268

1,068

Operating profit

7,350

7,563

213

Ordinary profit

6,340

6,708

368

Net income

4,000

4,308

308
5

Segment Information 【 Net Sales 】（Unit Amount=Million yen ）Year ended
March 31, 2015

Year ended
March 31, 2016

YOY change

Real estate sales
business

66,907

63,383△5.3%

Real estate rental
business

2,898

4,307

48.6%

Real estate
managementbusiness

2,978

3,362

12.9%

Other businesses

4,172

5,215

25.0%
6Consolidated Balance Sheets
Year ended
March 31, 2015
Current assets

Year ended
March 31, 2016（Unit Amount

YOY change=Million yen ）67,31975,753

12.5%

Cash and cash equivalents

26,281

28,5158.5%

Inventories

35,34540,208

13.8%

Real estate held for sale

4,901

4,073

△16.9%

Real estate for sale underconstruction

30,44436,134

18.7%

Fixed assets

34,40053,945

56.8%

Total assets

101,738

129,744

27.5%

Current liabilities

34,80042,85923.2%

Notes and accounts payable, trade

10,023

12,037

20.1%

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

15,12019,82331.1%

35,74853,20748.8%

33,23550,147

50.9%

Total liabilities

70,54996,06636.2%

Net assets

31,18933,6778.0%

Capital

4,819

4,819

－

Other shareholder equity

26,36928,857

9.4%

Total liabilities and net assets

101,738

129,744

27.5%

Fixed liabilities
Long-term borrowings

7

Details of Increase in Borrowings
Factors contributing to increase
Cash flows
from investing activities△19,861 million
Cash flows
from financing activities

19,663 million
Purchase ofnon-current assets（Unit Amount=Million yen ）Comparison of borrowings

80,00070,00060,00050,00040,00030,00020,000

10,0000
FY March
2015年3月末

19,558 million up

2015

Short-term
短期借入金
borrowings

Current portion of long-term
1年内返済予定長期借入金
borrowings

FY March
2016年3月末
2016Long-term
長期借入金
borrowings

8

LEBEN Urawamisono Bauklasse

Year Ending March 2016 Topics
9

Promote solar-powered condominiums

Topics - 1

Unit-based Solar-powered Condominium
Supply Ranking※Nationwide※Unit-based Solar-powered Condominium Supply Ranking(available in each individual home unit)※Source: Real Estate Economic Institute Co., Ltd.

The supply number of condominium units
in 2015 （annual）

The supply number of condominium unitsin 2015 （total）

657 units

4,367 units

LEBEN Yachiyo Midorigaoka LuceLEBEN Moriya The Bridge（Completed in February, 2016）（Completed in March, 2016）10

Project of the area to advance newly

Topics - 2

Project of the area to advance newly■Yonezawa- Montomachi Project■Fukui-Hinode Project

Address ： Montoumachi,Yonezawa-shi,Yamagata
Number of units ： 69 units （Planned）

Address ： Hinode,Fukui-shi,Fukui
Number of units ： 36 units■Aomori-Yaskata Project
Address ： Yasukata,Aomori-shi,Aomori
Number of units ： 39 units （Planned）■Akita-Nakadori Project
Address ： Nakadori,Akita-shi,Akita
Number of units ： 56 units （Planned）■Hiroshima-Fukuyama Project
Address ： Naka-ku,Fukuyama-shi,Hiroshima
Number of units ： 28 units （Planned）■Nagaoka-Terashimacho Project
Address ： Terajimamachi,Nagaoka-shi,Niigata
Number of units ： 131 units■Hiroshima-Ootemachi Project
Address ： Naka-ku,Hiroshima-shi,Hiroshima
Number of units ： 26 units （Planned）■Kanazawa-Ootemachi Project■Matsuyama-Ichibancho Project

Address ： Otemachi,Kanazawa-shi,Ishikawa
Number of units ： 30 units （Planned）

Address ： Ichibancho,Matsuyama-shi,Ehime
Number of units ： 70 units （Planned）

Steady expansion of areas toward the establishment of a system capable of managing
1,000 units per year in regional cities.
11

Supply of the article in regional city

Topics - 3

Start of new sales – Properties in regional areas■ LEBEN Koriyama Principal Tower■ LEBEN Nagano Minamichitose■ LEBEN Sendai Silvista

Completion scheduledin March 2017

Completion scheduledin January 2017

Completion scheduledin December 2016

■ LEBEN Fukui Levista■ LEBEN Toyama Valest Tower■ LEBEN Nagaoka Terajimamachi VertalierAddress：2-1202-2,Hinode,Fukui-shi,Fukui
Access：5-minutes walk from Fukui Station
on JR Hokuriku Main Line
Number of units：36 units

Address：134,Ushijima-cho,Toyama-shi,Toyama
Access：3-minutes walk from Toyama Station
on JR Hokuriku Shinkansen
Number of units ：119 units

Completion scheduledin February 2017

Completion scheduledin March 2017

Address：308-11, Terajimamachi,Nagaoka-shi,Niigata
Access：13-minutes bus from Nagaoka Station
and 6-minutes walkNumber of units ：131 units

Completion scheduledin March 2017

Solid progress in contracts signed for respective properties
12

Mega-Solar business

Topics - 4

Construction on Mega-solar at Former Golf Course～ Japan’s first extra high voltage mega-solar power plant using small inverters～【Completion figure】

LEBEN SOLAR NASUNAKAGAWA（started of operation on March,2016）【Address】 Minowa, Nakagawa,Tochigi Prefecture, Japan【Site Size】 400,000㎡【 Installed number of solar panel】
120,000 units （165W/per）【Power generation】 19.8MW

Power generation now in operation (As of March 31,2016)

53.1ＭＷ
13

The establishment of infrastructure
investments corporation

Topics - 5

With the goal of listing on market for investments
Asset operational company

Infrastructure investment
corporation■Company name
Takara Asset Management Co.,Ltd■Company name
Takara Leben Infrastructure Fund, Inc.

■Location of head office
1-5-1,Oote-machi,Chiyoda-ku,Tokyo■Location of head office
1-5-1,Oote-machi,Chiyoda-ku,Tokyo■Date of establishment
October,2013■Date of establishment
August,201514

Expansion of Real Estate Lease Business –1

Topics - 6

Proactive purchase and development of profitable properties■ Matsuyama Hotel plan
Address ： Minamimachi,Mito-shi,Ibaraki■ Nagoya-Toukaidori building
Address ： Toukaidori,Minato-ku,Nagoya-shi,Aichi

Nagoya-Toukaidoribuilding■ Hakozaki-Yusen building
Address ： Okaido,Matsuyama-shi,Ehime■ FURUNESUSAYAMA(Ayase)
Address ： Ayase,Adachi-ku,TokyoMatsuyama Hotel plan

Hakozaki-Yusen building

Aim to participate in REIT
15

Expansion of Real Estate Lease Business –2Topics - 7

Groupwide promotion of the acquisition of profitable properties
New property purchase, About 12 billion yen（ Takara Leben Group ）Takara Leben Tohoku Co.,Ltd

Jyutaku -jyouhoukan Co.,Ltd■ Sendai-Nikko building■ President city building■ Sunvario saikon■ Prestige AC■ Casa-Grande Riverside■ Casa-Grande Tsukiyama

Sendai-Nikko building

Sunvario saikon

Prestige AC

Casa-Grande Tsukiyama

Aim to participate in REIT
16

LEBEN Kitakoiwa Discovery

Year Ending March 2017 Outlook17

Year Ending March 2017 Outlook (Consolidated)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）

18

LEBEN Kawasaki Suzukicho Gran’nex

Plans of FY March 201719

Overview of Strategies of Mid-term management plan
Maximize the Group’s strengths

Strategy for local
citiesRedevelopment &Rebuilding
business

Detached housebusiness

Business charged
with effective
use of land

Diversifying flow businesses
Mega-solar
business

Real estate rental
business

Real estate
managementbusiness

Real estate
distribution
business

Expanding stock and fee-based businesses

Beginning of a new era for Takara Leben20

New built-for-sale condominium business(metropolitan area)

Flow businesses - 1

Metropolitan area condominium market trends■ Strengthened oligopoly
by High supply company■ Reduction of the numberof units supplied

Oligopolization
Supplies units■ Increase in customers’
annual income

Customer attributes
Oligopoly ratio

80%

100,000

60%

Trends in Sales Prices（ New built-for-sale condominium ）（Unit Amount=10 thousand yen）

800

■Current ・・・ 36.98 million yen■Planned ・・・ 39 million yen

70%
80,000■ Sales prices rising

700

50%
40%

60,000

600

30%
20%

40,000500

2.02 million yen up

10%0%20,000

20052010

2015

400
FY2014/03
42期

FY2015/03
43期

FY2016/03
44期

Favorable market environment has continued
Aim for 1,200 supplies units in FY March 201921

New built-for-sale condominium business(Local city)

Flow businesses - 2

Extension of stocking area in each base
The supply number of apartments
in local cities

Hokuriku Office（ units ）

1000

Fukui
Ishikawa
ToyamaTakara Leben Tohoku Co.,Ltd800

600
Jyutaku -jyouhoukan Co.,LtdEhime
Hiroshima

AomoriAkita
Miyagi
Yamagata
Fukushima

400200020122013

20142015

Supply target 1,000 units in FY March 201922

Redevelopment & Rebuilding Business

Flow businesses - 3

The number of rebuilding projects is expected to increase going forward
Unit owners

Used properties■ Asakusa,Taitou-ku,TokyoHachioji-shi Matsugaya
more
About 1,000units■ Monzennakacho,Koutou-ku,Tokyo■ Togoshi,Shinagawa-ku,Tokyo■ Syakujiidai,Nerima-ku,Tokyo■ Itabashi,Itabashi-ku,TokyoRedevelopment■ Yoga,Setagaya-ku,Tokyo■Toyama-shi, Toyama■ Minami-ku,Sagamihara-shi,Kanagawa(Residential facilities・accommodation
facilities・Residential facilities)■ Nakagosyo,Nagano-shi,Nagano■ Takaoka-shi, Toyama

more(Residential facilities)■ Matsuyama-shi, Ehime(accommodation facilities ）About 1,000units

Sites for future condominiums andprofitable properties

Securing sites for medium-term, long-term, and super long-term businesses throughlarge-scale reconstruction and redevelopment
23

Detached house business andBusiness charged with effective use of land

Flow businesses - 4

Restructure the detached house businessTransfer the detached house businessto Nikko Construction Change the trade name toNikko Takara Corporation

Changed company name from Nikko kensetsu Co.,Ltd.
to "Nikko Takara Co., Ltd.

【 Aims for business integration 】

Unify information on real estates of cooperating companies(improve cost competitiveness)Enhance and expand effective land useImprove management efficiency and speed
Business charged with effective
Detached house businessuse of land

Kohoku-ku PJ

Chigasaki-Chuo building

Leben Platz Tsujido-Higashikaigan

Leben Platz Shiroi Seasons Garden

Supply target 500 units in FY March 201924

Electric utility industry

Stock businesses - 1Expand electric power sales business
June 2, 2016April 4, 2016
Approval to join the infrastructure fund market

Join the market (plan)＜Business Structure＞

Takara AssetManagement

Takara Leben
Leases solar power
generation equipment
Rent for solar power generation equipment
Sponsor support

Takara Leben
Infrastructure Fund, Inc.

Asset management
remuneration
Asset management

Dividends

Investment

Investors

Planning 80MW in operation in FY March 2017

Expanding stock business
25

Real estate management business

Stock businesses - 2

Increase the number of offices nationwide
Open 4 offices nationwide
Tohoku （ Sendai ）、 North Kanto （ Utsunomiya ）、 East Kanto （ Tsukuba ）、 Hokuriku （Toyama）
Management building

Management units
50,00041,131

1,000

40,000800

30,000600

20,000400

10,00020008490
2004 /3

2010/3

2016/3

2004/3

2010/3

2016/3

Aim for 50,000 managed housing units in FY March 201926

Real estate rental business

Stock businesses - 3

Increase rent income
2015 Year ended rent income 2.8billion

2016 Year ended rent income 4.3billion

2019 Year ending rent income 6.0billion

Purchase of fixed assets

Nagoya-Toukaidori building
Hakozaki-Yusen building

Aim to participate in REIT

Year Ending March 2017, Purchase target of fixed assets, 20 billion yen27

Fund business - 1

fee-based businesses - 1

Groupwide promotion of the acquisition of profitable properties
Properties currently owned

Replacementof asset
Sale

Used properties in good
locations near railway stations

Scrap&Build

Purch
ase

Condominium

central areas of provincial cities

Purch ase

Real estate
rentalRebuildingBusiness

Real estate
rentalREIT
Establish REIT to create new forms of value
Takara Investment Co., LTD began operation,
aiming to be listed as a REIT in 201728

Fund business - 2

fee-based businesses - 2

Approval of Initial Listing (Infrastructure Funds)
Company overview

June 2, 2016 Join the market (plan)
10 facilities 17.88MW

Company Name

Takara Leben Infrastructure Fund, Inc.
Company Name

Takara Asset Manegement Co.,LTD.
Date to decide investors towhom dividends are paid

Mega-solar facilities to be operated in the future+Purchase from the secondary market

In 2020,aim to generate 200MW

November and May+
Other renewable energy generation facilities

Solar power generation + Other renewable energies
 Promote diversification29Fund business - 3

fee-based businesses - 3Fund Scale

Takara Asset Manegement Co.,LTD.

Takara Investments Co.,LTD（Takara Leben Infrastructure Fund, Inc. ）name）( Takara Leben（TentativeReit Investment corporation )100 billion yen

100 billion yen

Year Ending March 2020, target of asset scale, 200 billion yen
30New businessfee-based businesses - 4

Investment business（Tentative name） Takara Capital
Investment at 0.5～1.0 billion a year

Energy technologies

New energy
businesses

Expand the infrastructure fundStable revenue in the future
31

LEBEN Chiba Newtown Chuo The Premium

Dividends・Capital Policy32

Cash Dividends, Preferential treatment

1st half dividends

Year-end dividends

Total

Year ending
March 31, 2016
Forecast

4yen

9 yen

13Year ending
March 31, 2017
Forecast

5yen

10 yen15 yenPreferential treatment

gift certificates for packages of rice

100 shares or more to less than
500 shares

1kg （440Yen）

500 shares or more to less than
1,000 shares

3kg （1,320Yen）

1,000 shares or more

5kg （2,200Yen）

yen

33

Acquisition and cancellation of treasury stock■ Acquisition of treasury stockYear ended March 31, 2015

Year ended March 31, 2016

From May 13, 2014
to March 31,2015

From May 12, 2015
to March 31,2016

Acquisition period
Number of shares acquired

2,668,500 shares

1,531,000 shares

Total acquisition value

1,217,109,000 yen

970,552,700 yen

Treasury shares held oncompletion of acquisition

16,531,307 shares

15,938,307 shares(March 31)■ Cancellation of treasury stock
Date of cancellation
Total number of shares tobe cancelled
as percentage of total
number of shares issued
before cancellation

Year ended March 31, 2015

Year ended March 31, 2016

December 22, 2014

January 29,2016

2,000,000 shares

2,000,000 shares

1.54%

1.56%
34

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

35

■ 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 year ended March 31, 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 March 31, 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.