Annual Report 2018
Fiscal year ended March 31, 2018

Evolution through Sustainable Change— Bringing new norms to lifestyles —Profile

Contents

Established as Takara Komuten Co., Ltd. in 1972, the Takara Leben

Who We Are

Group began with its detached house business and this led to growth
into our core built-for-sale condominium business. Having listed on astock exchange in 2001,* we have been developing business to realize
ideal lifestyles for people in a range of fields, such as general real

VISIONTHINK HAPPINESS AND
MAKE THE HAPPINESS

estate business and electric power generation business and now theGroup comprises 12 companies.

MISSION
Creating Together

Financial/Non-Financial Highlights

2

Fiscal 2018 Highlights

3

President’s Message

4

Business Strategy
Medium-Term Management Plan

In four years’ time, in 2022, the Takara Leben Group will be marking
the 50th anniversary of its establishment and will be making steadyprogress to provide a better direction for people’s lifestyles, for citiesand ­for society, by bringing new norms to those lifestyles.
In the years to come, we will continue to respond to the expectations

8

Review of Operations
Real Estate Sales Business

9

Real Estate Rental Business

12

Real Estate Management Business

13

Electric Power Generation Business

14

Other Businesses

15

of our stakeholders while further enhancing our corporate value
through the realization of our corporate vision, “THINK HAPPINESS

Sustainability

AND MAKE HAPPINESS.”

Corporate Governance

16Compliance/ Business Risks

18

CSR

19

Directors and Audit &Supervisory Board Members

22* Listed on the JASDAQ market in 2001, the Second Section of the Tokyo Stock Exchange in 2003, and the First
Section of the Tokyo Stock Exchange in 2004

Financial Section/Corporate Data

Real Estate Sales Business
The real estate sales business accounts for over
70% of the Takara Leben Group’s total net sales. In
this business segment, the Group’s activities largely
revolve around the planning, development, and saleof new built-for-sale condominiums while addressing the diverse needs of customers. Among a hostof other endeavors, we are actively engaged in theconstruction and sale of detached houses as wellas the renovation and resale of condominiums inthis business segment.

Real Estate
Rental Business

Real EstateManagement BusinessElectric Power
Generation BusinessIn the real estate rental business segment, the Group mainly leases condominiums and office buildings. We havebeen actively acquiring rental properties
in various locations throughout Japanand also have hotels and guest houses.

Here, the Group is actively engaged in
the management and operations of properties. In addition to managing properties
that it has constructed in its own right,
with its own meticulous services, theGroup also manages properties built byother companies on a contract basis. In
the real estate management business,
the number of managed housing units
continues to grow steadily.

The Takara Leben Group generates a stable flow of earnings by marketing electricity to electric power companies. The
Group also works diligently to contributeto society by producing renewable energy. Moving forward, in addition to oursolar generation facilities, we will look todevelop other renewable energy facilities.

Flow Businesses
In addition to the Group’s built-for-sale condominiums for families and single people in
the Tokyo metropolitan area, Takara Leben
has positioned its condominium buildings
business to target both active seniors residing
in major regional cities and its reconstruction
and redevelopment business as key earnings
pillars. Takara Leben is establishing a nationwide network of Group company bases forcondominium buildings in major regional­cities. Through these bases and other means,
we are making steady progress in expanding
our areas of operation.

Other Businesses
The Takara Leben Group receivescommissions derived from othersegments and is active across awide range of fields, including construction contracting and largescale repair work. Looking ahead,management fees are projected to
expand in line with the increase in
infrastructure fund, REIT, and otherassets.

Stock and Fee-BasedBusinesses

Including LEBEN Asaka Regenes (Above)and NEBEL Togoshi-Koen (Below), we areselling new built-for-sale condominiums inaccordance with a variety of needs, such as
those of family and single-person households.

The Takara Leben Group is working to roll out its
real estate rental, real estate management, electric
power generation, and other businesses and to
expand its business activities. More specifically,
we established Takara Leben Infrastructure Fund
Inc. in a bid to promote the effective use of such
renewable forms of energy as sunlight as a partof our electric power generation business activities and we are steadily increasing the number ofthese operating facilities. In addition, in July
2018, we listed Takara Leben Real Estate Invest­
ment Corporation, a comprehensive REIT, on theTokyo Stock Exchange Real Estate Investment
Trust Securities Market. Looking ahead, we
will endeavor to further expand our business.

Cover The cover is an expression of our corportate vision, “THINK HAPPINESS AND MAKE HAPPINESS,” which we achieve by creating lyfestyles for society and people

Six-Year Summary

23

Financial Review

24

Consolidated Balance Sheet

26

Consolidated Statements ofIncome and Comprehensive Income

28

Consolidated Statement of
Changes in Shareholders’ Equity

29

Consolidated Statement of Cash Flows

30

History

31

Company Profile

32

Stock Information

33

Other Disclosure Information
https://www.leben.co.jp/en/• Materials related to the Company’s Settlement of
Accounts• Quarterly Financial Results Reports• Business Report• Ordinary General Meeting of Shareholders Information• Other
Editorial Policy and Cautionary Statements Regarding
Forward-Looking Statements

The Company acquires rental properties through its realestate rental business. (Above: LUXENA Nagareyama
Otaka no Mori). In its electric power generation business,
the Company advances the development and operationof power-generation facilities. (Below: Leben Solar [LS]Shizuoka Omaezaki power-generation facility)
through the services of the Takara Leben Group,This report, which for the most part provides details of the Takara
Leben Group’s operations in fiscal 2018, the fiscal year ended March
31, 2018, has been designed to provide stakeholders with a deeper
understanding of our business activities, management strategies, performance, and other non-­financial information, including interaction withsociety and the environment.
This document was prepared to provide information regarding theCompany’s consolidated results in fiscal 2018 and should not be construed as a solicitation for investment in securities issued by Takara
Leben Co., Ltd. The information provided in this report is fundamentally
based on data available as of March 31, 2018. Any forward-looking
statements including opinions and forecasts are based on the best
judgments of management as of the time this report was prepared.
Accordingly, Takara Leben does not guarantee or promise that any forward-looking statements will be realized or achieved or provide any
assurance as to the accuracy or integrity of information. Moreover, thecontent of this report is subject to change without prior notice.

Takara Leben Annual Report 2018

1

Financial/Non-Financial Highlights

Fiscal 2018 Highlights

Takara Leben Real Estate Investment Corporation
Listed on Tokyo Stock Exchange Real Estate
Investment Trust Securities Market

July

A comprehensive J-REIT that invests primarily in offices, homes, hotels andcommercial facilities and is sponsored by four companies, including the Company,
Takara Leben Real Estate Investment Corporation was newly listed.

Financial

Millions of yen

Rate ofincrease/decrease2017.3/2018.3

2016.32017.32018.3¥ 76,268¥103,599¥110,851

7.0%Real estate sales business

63,383

79,63879,341-0.4

Real estate rental business

4,307

5,056

5,472

8.2

Real estate management business

3,362

3,665

4,000

9.1

Electric Power Generation Business

909

11,10818,23964.2

Net sales

4,305

4,130

3,797

-8.1

Gross profit

17,835

21,86925,779

17.9

Operating income

7,563

10,34912,597

21.7

Ordinary income

6,708

9,496

11,792

24.2

Other businesses

Net income

4,308

6,107

7,367

20.6

Total assets

129,744

139,874

177,975

27.2

Net assets

33,67736,792

42,907

16.6

Representative Office
Established in Hanoi, Vietnam

Sales commenced for
LEBEN Hiroshima Nakahiro-dori,
THE RESIDENCE,First in Chugoku Region

February 2018

In the city of Hiroshima, Hiroshima Prefecture, we commenced sales of LEBEN Hiroshima Nakahiro-dori, THE RESIDENCE, whichenables direct access to the city center and offers high levels of transportation and lifestyle convenience.
*2

LEBEN Moriya THE SQUARE Model Rooms
OpenedLEBEN Moriya THE SQUARE is a condominium building that adopted
Japan’s first ENE-FARM*2 solar-power generation system*1 for domestic-use fuel cells and allows electric power sales to each individual condominium.

Per Share Information:
Net income per share (Yen)

38.99

56.14

68.12

21.3

Net assets per share (Yen)

304.71

339.29394.9016.4

Dividends per share (Yen)

13.0

15.0

16.0

6.7

ROE (%)

13.3

17.4

18.6

1.2 ptROA (%)

3.7

4.5

4.6

0.1

Equity ratio (%)

25.8

26.2

24.0

-2.2

Dividend payout ratio (%)

33.3

26.7

23.5

-3.2

*1 Source: Survey by Real Estate Economic Institute Co., Ltd.
*2 E
 NE-FARM is a registered trademark of Tokyo Gas Co., Ltd., Osaka Gas Co.,
Ltd., and JXTG Nippon Oil & Energy Corporation.

Financial Indicators:

29,013
No. 10(Source: Real Estate Economic Institute Co., Ltd.)

Tohoku Area for
Three Consecutive Years

No. 1(Source: Surveys by the Daily Engineering & Construction
News)

2

Takara Leben Annual Report 2018

That we provide stable service to our customers by using proprietary customer service manuals,
including the highly regarded Omotenashi (Hospitality) Handbook and the Takara Leben Service
Handbook. We obtained gold certification under the Omotenashi Standard Certification, thestandard certification system for the visualization of quality of service established by the Ministryof Economy, Trade and Industry.

Dormy Inn Matsuyama

Under the basic concept of “ideal, affordable housing that­anyone can buy with confidence,” we are continuing to create
products that meet a range of needs of c
­ ustomers throughout
Japan.

Nationwide, in Top 10 for
Five Consecutive Years

2017
Condominium
Supply Ranking

Omotenashi Standard Certification, Gold Certificate Obtained

December Opened

Non-Financial
Cumulative Total Unitsof New Built-for-saleCondominiums(As of March 31, 2018)

March

As one of our growth strategies, we opened a base in Vietnam as thefirst step in overseas business.

As part of its stock and fee-based business, Dormy Inn Matsuyama, Takara Leben Group’s first hotel property, was opened.

Toyama Sakuramachi Sales Started
November LEBEN
Having established bases nationwide and aggressively expanded into regional cities, we have been in the top 10 in the nationwide condominium supply ranking for five consecutive years.
Also, in the Tohoku area, we have held the No. 1 spot in the
supply ranking for three consecutive years.

Part of the Sakura-machi, 1-chome type 1, urban district redevelopment project in Toyama City, Toyama Prefecture, this project follows on from the Chuo-dori Zone F,
type 1 urban district redevelopment project (LUCIDA TOWER) in line with the City Center Revitalization Act.

Shirahama Power
July 2017 LSGeneration
Facility Completed
We conducted a completion ceremony for the LS Shirahama power generation facility. Following on from the LS Nasu Nakagawa power generation facility,
which began generating electricity in March 2016, this facility, the first in the Kansai region, makes effective use of a former golf course.
Takara Leben Annual Report 20183

President’s Message

Overview of Fiscal 2018 and Review of the Previous Version of the Medium-Term
Management Plan from Fiscal 2016 to Fiscal 2019
Achieved record high profits with net income
exceeding forecasts by approximately one
billion yen
In the fiscal year under review, Takara Leben took steps toTakara Leben announced details of its new
Medium-Term Management Plan in May 2018.
Guided by the overarching theme of this Plan,“Evolution through Sustainable Change—Bringing new norms to lifestyles—,” we will
respond swiftly to changes in both our internaland external environments while targeting­sustainable and stable growth.

Kazuichi Shimada

expand our areas of investment into supplying pipelines toinfrastructure funds and REITs.

administrative expenses. As a result, the Company reported

A Look Back at Previous Version of theMedium-Term Management Plan and Changes
in Takara Leben Group’s Operating
Environment

a second consecutive fiscal year of record-high profits. In

Formulated in May 2015, the previous version of thespecific terms, net income came in at 7,367 million yen,

Medium-Term Management Plan was promoted under theexceeding initial forecasts by approximately one billion yen.

adopted themes of “Diversifying the Flow Business” andraise the gross margin in its core built-for-sale condominium

We will enhance ourcorporate value by
adapting to changing
lifestyles while continuing
to evolve as a company.

building a stable business cycle, in the years to come we willbusiness, undertook the additional sale of power generation
facilities, and reduced costs such as selling, general andIn the built-for-sale condominium business, in addition to“Expanding the Stock and Fee-Based Businesses.”establishing Takara Leben Tohoku Co., Ltd. and Takara

Especially in the electric power generation business, which

Leben West Japan Co., Ltd., the Company also newly

we have been promoting as a pillar of our stock and fee-established a Takara Leben Osaka Branch and a Takara

based businesses, we consider the listing of Takara Leben

Leben Osaka Office and by so doing created the general

Infrastructure Fund Inc. as the first listing on the Tokyo Stockinfrastructure for nationwide business expansion. As an

Exchange Infrastructure Fund Market a major achievement.

effect of establishing the new bases, business projects in

Toward the constituting of a REIT, we are confirming that thethe Kansai area in particular are growing in number. We arepreparations for the expansion of our investment areas,

also conducting appropriate investment, not only for thesuch as actively investing in the acquisition and develop-

built-for-sale condominium business but also in profitable

ment of profitable real estate, have been carried out suffi-

real estate, such as acquiring lots for the hotel business inciently. In accordance with the expansion of these

Kyoto and Osaka prefectures. With regard to the current fis-investment areas, we were able to achieve the planned figures

cal year, we will also sell power generation facilities to infra-

for net sales. In contrast, the number of units sold in the

structure funds, and the results of having expanded ourbuilt-for-sale condominium business, impacted by the generally

investment areas are also steadily improving. In addition to

three- to four-month business cycles having been pushed

Representative Director
and President

Background to the New Medium-Term Management Plan

Previous Medium-Term
Management Planfrom May 2015
Diversifying flow businesses

Changes inmarket environment

Moving awayfrom the Plan

Expanding stock business
Expanding fee-based business4

Takara Leben Annual Report 2018

Revamp of the MediumTerm Management Planfrom May 2018
Reorganizing of strategy
Clarification of investment areas

Expanded fieldsof business

Formulation of a new growth story

Takara Leben Annual Report 20185

President’s Message

back, has not been reached in each period due to factors

what was originally expected, and there were situations inplying products that match demand. Breaking this down bythat include rises in construction costs and the prolongation

which divergence occurred.

region, we aim to supply a 50:50 ratio, half to the Tokyo

To respond promptly and accurately to various internalof the required construction periods. Also, for each profit

metropolitan, Kinki and Chukyo areas (the three major met-

item, the cost of selling, general and administrative expens-and external changes in our operating environment, we

ropolitan areas) and half to local cities. In the three major

es, such as personnel expenses associated with the expan-

revamped our Medium-Term Management Plan in May

metropolitan areas, we will develop sales geared towardsion of our business areas, has increased significantly over2018.

families as well as single- and double-income households,
while developing the LEBEN and NEBEL brands toward
active seniors in the local cities, NEBEL is a compact condominium brand geared toward singles, DINKs and senior

The New Medium-Term Management Plan from Fiscal 2019 to Fiscal 2021

citizens. Having opened a permanent salon in Ginza, weTakara Leben has identified “Evolution through Sustainable

our real estate sales business, electric power generation

Change—Bringing new norms to lifestyles—” as the overar-

business and overseas business. Having established “bring-

ching theme of its new Medium-Term Management Plan. In

ing new norms to lifestyles” as a theme, we are aiming tocarrying out the basic policy of the plan, we will implement

create new norms through product planning and supply thatthree key initiatives. In specific terms, we will:

responds to diversification of lifestyles without being bound• Establish stable and sustainable foundations for growthby conventional stereotypes.
In our core built-for-sale condominium business, there• Diversify the business portfolio, andmight be many people who feel uneasy about the future due• Respond to environmental, social, and governance (ESG)
concerns.

to the aging population and population decline, but even

In addition to promoting the establishment of a stable andwhen taking into account new condominium needs andsustainable growth foundation in the real estate sales busi-

market environments due to changes in lifestyles, I believeness, which is our core business, we will work on the diver-that there is still room for growth in the market. We are plan-sification of our business portfolio, through such efforts asning to steadily increase the number of units sold every fiscal

the expansion of various peripheral businesses derived fromperiod by accurately ascertaining customer needs and sup-are trying to attract customers in the Tokyo metropolitan
area in a unified manner.
In the real estate management business, we are working
to set ourselves apart from our competitors by means of
our own management system, especially in terms of realestate management, and have greatly increased the numberof managed units. Apart from contract management fromlike sales of power generation facilities to Takara Leben

properties managed by other companies and think that we

Infrastructure Fund Inc. to lead into other areas, such as theare very strong competitively, for example, more than 40%

maintenance of power generation facilities. Not confiningof the nearly 50,000 managed units as of the end of theourselves to solar power, we will also give appropriate con-fiscal year under review were properties supplied from out-sideration to other forms of renewable energy.

side our Group. In the years to come, we intend to contin-With regard to overseas business, we are currently to tar-ue to add to the number of managed units and would likegeting Southeast Asia focusing on the real estate sales busi-

to expand to include large-scale repair work orders

ness. As a first step, we opened a representative office inderived from the management business.

Hanoi, the capital city of Vietnam. In the same way as the

In the real estate liquidation business, we will purMedium-Term Management Plan performance (quantitative) goals
Fiscal 20196

Fiscal 2020

Fiscal 2021

Real estate sales business(millions of yen)

105,700

120,920

129,950

Real estate rental business(millions of yen)

5,500

6,000

6,300

Real estate management business(millions of yen)

4,300

5,000

5,400

Electric power generation business(millions of yen)

10,80021,10021,200

Other businesses

(millions of yen)

3,700

6,980

7,150

Total net sales(millions of yen)

130,000

160,000

170,000

Operating income(millions of yen)

10,70013,00014,500Ordinary income(millions of yen)

9,600

11,80013,000Net income attributable toowners of parent(millions of yen)

6,300

8,000

9,000

Takara Leben Annual Report 2018

In the electric power generation business, I would naturally

our own Group, we have acquired replacement projects fordomestic real estate sales business, we believe that over-chase real estate that maximizes the leveraging of theseas operations should target actual demand based on realGroup’s know-how and develop offices, residences andliving requirements rather than an investment focus.

hotels and we will proceed with the sale of properties toThis kind of business portfolio diversification is expected

REITs and private funds. Having built an appropriate cycle

to increase the revenue opportunities derived from eachof investment and recovery, we will grow it as a pillar ofsegment. We will endeavor to expand earnings without

new business.

missing out on these opportunities.

Sustainable Growth
I believe that ESG initiatives are very important in bringing

We also recognize the importance of engagement with all

about the sustainable growth of a company. For that reason,

our stakeholders and shareholder returns. In particular, we

ESG initiatives are positioned as one of the long-term man-

have set a dividend payout ratio for shareholders of 25% toagement strategies and each element—the environment,

30% under the new Medium-Term Management Plan, butsociety, and governance—is actively promoted throughout

by steadily implementing a raft of measures would like to

the Group.

achieve results beyond the planned figures and aim to return
more than the target ratio to shareholders.

Takara Leben Annual Report 20187

Medium-Term
Management Plan

Review ofOperations
Real Estate
Sales Business47th to 49th
Year Ending March 2019 toYear Ending March 2021

Takara Leben designs, develops, and sells new built-for-sale condominiums including the LEBEN and NEBEL
brands nationwide, mainly targeting families, single-person households, and double-income households without children in the Tokyo metropolitan area as well as active seniors in regional cities

Sales composition ratio

71.6%(Fiscal 2018)

L L Net sales (Millions of yen)
P Gross profit margin

79,341 million yen
Total

110,851
million yen

L New built-for-salecondominiums: 54.5%
L Detached housing: 5.7%
L Renewal and resale: 0.5%
L Liquidation: 8.8%
L Other real estate sales: 2.1%

79,63879,341

63,383
23.1

21.5%

19.0

2016.32017.32018.3—Bringing new norms to lifestyles —In any era, a new outlook on common sense has been guiding
people’s lifestyles in a better direction.
In what kind of homes will people choose to live?
We believe this is closely equated to asking, what kind oflifestyles will people choose to live?

Fiscal 2018 Review and Strategies

Begun as a small construction firm in 1972, Takara Leben has
worked to realize ideal ways of living taking into account allperspectives through its comprehensive real estate business.
We have taken a close look at people and towns and at changes
in society, and from this, we have developed choices different
from those of yesterday.

160 units. As a result, revenues from the real estate sales

new Osaka Branch and Sapporo Office in April, while Groupbusiness for the fiscal year under review amounted to 79,341

company Takara Leben West Japan opened its Fukuoka

million yen, down 0.4% year on year, based on revenues ofHead Office. All of these actions have accelerated the60,368 million yen from the sales of new, built-for-sale con-Company’s ability to acquire land for condominiums

dominiums and revenues of 18,973 million yen from the sales

throughout Japan. The number of new condominiums sup-of new detached houses and used condominiums. In addi-

plied nationwide in 2017 rose for the first time in four years

tion, gross profit margin for the new built-for-sale condomini-but remained at the 70,000 unit level for a third consecutive

um business rose from 20.6% to 22.1% owing to reductions

year. The Company was ranked in the top 10 for the fifth

in costs and sales amount overshoots.

consecutive year*1 for the number of new condominiums

In 2022, the Takara Leben Group approaches the 50th anniversaryof its establishment.
With that “certain something” that can be found nowhere else
and that no one else has done, we are combining a diverse
range of methods to make an impact never seen before, we arechanging people’s lifestyles. With all of this, we continue to takeon the ­challenge together and look toward when our approach
becomes the new norm.

Basic
PolicyEstablishingstable andsustainablefoundations
for growth

In the new built-for-sale condominium business, we will

supplied nationwide and, in turn, has continued to provide aproactively engage in the supply of condominiums thatstable supply of new condominiums nationwide. Ranked

reflect lifestyle and environmental changes and plan to deliv-

No. 1 in condominium supply for three-straight years in theer 1,700 units in the current fiscal year. In detached housing,Tohoku area,*2 Takara Leben has expanded its market share

we plan to deliver 190 units. In order to supplement the newand established a solid position for itself in this region.

built-for-sale condominium business, we will expand the

The new built-for-sale condominium business sold 1,619

Theme of the Medium-Term Management Plan

Evolution throughSustainable Change

In the fiscal year under review, the Company opened theunits compared to its sales plan1,600 units. In contrast, thedetached housing, renewal resale, and liquidation businesses line with market trends.

detached housing business sold 116 units versus the plan ofDiversifying
the businessportfolio—Bringing new norms to lifestyles—
Responding
to ESGLEBEN Toyama Sakuramachi

LP Itabashi sky residence*1: According to surveys by the Real Estate Economic Institute Co., Ltd. *2: According to surveys by the Daily Engineering & Construction News

8

Takara Leben Annual Report 2018

Takara Leben Annual Report 20189

Review ofOperations
Real Estate
Sales BusinessIn the fiscal year under review, we unveiled the new NEBEL
series of urban-style compact properties for single-person

Market conditions outlook in theTokyo metropolitan area and regional cities

Liquidation BusinessTokyo Metropolitan Area

looking into to various exit strategies after asset values rise

Reduction in prospective customers due to population decline, dwindling birthrate and aging population

households and double-income households without children.
In the Tokyo metropolitan area, an emphasis on site value

Diversifying Exit Points

In addition to long-term real estate holdings, the Company ismainly on value enhancements and rebuilding that include

MarketIncreased oligopolization of supply players
Predictions Increased tendency to place importance on sites

selling them to REITs, private funds, and external buyers.

has become even more prevalent in light of favorable supply-demand balance. Keeping the supply of condominiums

Good supply and demand balance

appropriate measures in line with investment amounts andto families, single-person households and double-income

Tendency to Favor Convenience

condominiums with an emphasis on locations. In regional

Reconstruction

REIT

PrivateFundExternal

Sale

Leben has invested around 50 billion yen over the past
As for the composition of the Company’s REIT, Takara

Project Development

Leben Real Estate Investment Corporation (“TLR”) was listTrust Securities Market in July 2018. The assets of “TLR”

Reduction in prospective customers due to population decline, dwindling birthrate and aging population

are managed by Takara PAG Real Estate Advisory Limited

Acceleration of redevelopment

Takara Leben, PAG Real Estate Holding Limited, Kyoritsu

MarketPredictions Further extension of compact cities

measures following revisions to the Act on Facilitation ofReconstruction of Condominiums.

Increasevalue

ed on the Tokyo Stock Exchange Real Estate Investment

Regional Cities

In the reconstruction business, with a considerable
tance standards, we expect demand to emerge driven by• Families• Singles, DINKs

Targets

ate on the back of trends toward compact cities.

reserve of condominiums rebuilt under old earthquake resis-Long-term
Ownership

three years.

cities, we expect the revitalization of urban areas to acceler-

accurately grasping these changes.

While balancing investments and returns, we will takeprojects in an effort to optimize our balance sheet. Takara

households without children in mind, we will work to supply

Accordingly, we will continue to supply condominiums while

RentalOwned Assets

New Built-for-Sale Condominium Businessand backed with the investments of four companies:
Maintenance Co., Ltd., and Yamada Denki Co., Ltd.

Proper understanding of demand and supply balance

The redevelopment business actively participated in the

Leveraging the unique business models and real estate networks of the four sponsors, TLR will harmonize REIT growth

first nationally certified project under the City Center

Targets

Revitalisation Act. Following this, we have been promoting

Active Senior Demographic

going forward. In addition, TLR will comprehensively support
efforts targeting growth in secure stable earnings and man-further development of this project. Looking ahead, Takara

aged assets by taking advantage of real estate development

Leben will strengthen its planning/proposal abilities along

undertaken by Takara Leben to date.

LUXENA Heiwadai

with expanding its network with its joint venture partners.

Renewal Resale BusinessTokyo metropolitan area used condominium signings

In recent years, the used condominium market has expanded

42,000noticeably, with the number of used condominium sales
exceeding that of new built-for-sale condominiums in the(Unit)

38,000for new built-for-sale condominiums and less resistance

36,000

towards used condominiums accompanying lifestyle changes.

34,000

renewal resale business to meet the rising need for used

Units
sold

30,000rental properties, holding them as rental-income real estate,

L New condominiums released L Used condominiums signed

than vacant properties and, in turn, generate rental income
while properties are being held. Possessing a stock of 59

Fiscal 2021
Plan

(Unit)

1,619

1,700

1,950

2,200

Detached houses

(Unit)

116

190

230

270

Breakdown by Segment(Net sales / gross profit)

Fiscal 2019
Plan

Fiscal 2018
Results

Fiscal 2020
Plan

Fiscal 2021
Plan

Net
Sales

Gross
Profit

Net
Sales

Gross
Profit

Net
Sales

Gross
Profit

Net
Sales

Gross
ProfitNew built-for-salecondominium business (millions of yen)

60,36813,31360,00013,00076,00016,50084,50018,600Purchase of currently rented family-type properties

New detachedhouse business

6,335

830

12,0001,600

13,2001,700

14,8501,950• Can be purchased cheaper than vacant properties• Actual demand rather than for investment

Renewal resale business (millions of yen)

588

78

1,700

220

2,720

320

3,400

400

2015

2016

2017

and then renovating and reselling them after the leaseholders
as we are able to purchase properties that are less expensive

Fiscal 2020
Plan

Condominiums

32,000condominiums. This business model involves purchasing

have vacated. This model realizes a stable earnings cycle,

Fiscal 2019
Plan

Fiscal 2018
Results

40,000Tokyo metropolitan area. This reflects surging sales prices

In light of this, we have made a comprehensive entry to theMedium-Term Management Plan performance (quantitative) goals

Business Model

units as of March 31, 2018, we aim to increase our inventories
over the near term and quickly develop this business cycle.

Maintained as rental real estate until vacatedExpecting net sales to steadily rise, we aim for holdings of• Able to generate rental income while properties are held(millions of yen)

Liquidation business(millions of yen)

9,707

2,322

30,0005,500

26,0004,700

24,0004,400

Other businesses

(millions of yen)

2,340

541

2,000

340

3,000

400

3,200

400

Total

(millions of yen)

79,341

17,086

105,700

20,660120,920

23,620129,950

25,750500 units in fiscal 2021.

Carry out renovations once vacatedSell
10

Takara Leben Annual Report 2018

Takara Leben Annual Report 201811

Review ofOperations
Real EstateManagement
Business

Review ofOperations
Real Estate
Rental Business

The Takara Leben Group develops its apartment, condominium, and office rental business nationwide. Actively

We are engaged in comprehensive management services for condominium buildings, which includes proper-

acquiring rental properties, we have established a REIT and are expanding our asset size.

ties of not only the Takara Leben Group but also other company’s condominiums.

L L Net sales (Millions of yen)
P Gross profit margin

Sales composition ratio(Fiscal 2018)

5,056

4.9%
5,472 million yen

4,307
26.4

Total

25.6

(Fiscal 2018)24.6%

110,851
million yen

2016.3

L L Net sales (Millions of yen)
P Gross profit margin

Sales composition ratio

5,472

2017.33.6%
4,000 million yen

4,000

3,665

3,362

Total

110,851

14.2

13.5

million yen

12.6%

2018.32016.32017.32018.3Fiscal 2018 Review and Strategies

Fiscal 2018 Review and Strategies

Market conditions and the Company’s strengths

In the year under review, we aggressively pursued property

Amid increased awareness of condominium management,

Management Business Market

Strengths of our Grouppurchases in order to increase our rental income and estab-changes in management companies and so-called replace-lish a REIT. Rental income has increased through the pur-ments are rising. Against this backdrop, the Takara Leben• Increase in management
replacements• Overwhelming track recordin replacing other companies in managementchase of mainly hotels, offices, and residences. With hotel

Group’s Leben Community has acquired an overwhelming

projects on the rise in recent years, Takara Leben opened

share of these replacements. As of March 31, 2018, thethe Dormy Inn Matsuyama (the first hotel developed by the

number of managed units rose by 4,994 units year on year

Company) and REJOICE STAY Kyoto Karasuma Oike (whichto 49,650 units nationwide, and approximately 69% of thiswas changed from apartments for rent to guest houses) in• Intensifying cost competition

increase is accounted for by unit management on consignDormy Inn Matsuyama

December 2017. As a result, real estate rental business net

agement business net sales totaled 4,000 million yen,owing to rental income from a range of real estate.

up 9.1% year on year, thanks to steady rises mainly in

Looking ahead, the Company aim to establish an even

(Unit)

40,000Going forward, we will focus on increasing the number ofcarefully selected prime properties.

49,65050,000­management fees.

more stable stock business by purchasing and developing• Consulting services for
management companies

Number of units of condominiums under management

ment from other companies. As a result, real estate man-sales amounted to 5,472 million yen, up 8.2% year on year,• High contract renewal rate
(99.9%)• Rising awareness of management

units managed while at the same time expect earnings
opportunities arising from large-scale repair work derived
from these managed properties.

35,86038,70041,13144,656(%)

46
44

30,00042

20,00040

10,00038

02014.32015.32016.32017.3

L Takara Leben Group L Properties of other companies

2018.336

P Ratio of other companies

REJOICE STAY Kyoto Karasuma Oike

Medium-Term Management Plan performance (quantitative) goals
Fiscal 2018
Results

Net sales(millions of yen)

5,472

Medium-Term Management Plan performance (quantitative) goals

Fiscal 2019
Plan

5,500

Fiscal 2020
Plan

6,000

Fiscal 2021
Plan

6,300

Fiscal 2018
Results

Net sales(millions of yen)

Number of managed units

12

Takara Leben Annual Report 2018

Fiscal 2019
Plan

Fiscal 2020
Plan

Fiscal 2021
Plan

4,000

4,300

5,000

5,400

49,65053,30057,60061,900

Takara Leben Annual Report 201813

Review ofOperations
Electric Power
Generation Business

Review ofOperations
Other Businesses

The Takara Leben Group Company is engaged in power generation using renewable energy nationwide while

This segment consists of commissions and management fees derived from our other business segments, and isaggressively acquiring and developing facilities to increase the scope of its infrastructure fund assets.

­currently promoting business development overseas.

L L Net sales (Millions of yen)
P Gross profit margin

Sales composition ratio(Fiscal 2018)

16.5%
18,239 million yen
L Sale offacilities: 13.2%
L Revenue from sale ofelectricity: 3.2%

Total

11,108110,851(Fiscal 2018)

3,797 million yen

Fiscal 2018 Review and Strategies

2017.32018.3(MW)

120

Fund Inc. undertook its first public offering. Moreover, the

103

100

Company sold three additional facilities, and infrastructure
volume for facilities operating at the end of the fiscal year

60

(including sold facilities) came to 103MW. As a result, elec-

40

tric power generation business net sales were 18,239 million

20yen, up 64.2% year on year, due to sales revenue for power

Sales agent
commission andbrokerage fees

Real estate
rentalbusiness

Hotel rent
(directly operated)

Real estate
managementbusiness

Repair business,insurance agency
business

year, as a result of lower construction contract businessGoing forward, we anticipate management fees derived

16

Electric power
generation
businessfrom asset size expansion particularly for REITs as well as
2015.32016.32017.32018.3orders from large-scale repair work for condominiums man-

Other
businesses

aged that have reached a suitable age.

tion ­revenue from other facilities.

In addition, the Company is working to position overseas

Looking ahead, we will leverage expertise and experience

2018.3

Real estatesales
businesssales amounted to 3,797 million yen, down 8.1% year on

4
2014.32017.3

3,797

Expansion of Businesses Derived from Each Segment­revenues.

0

2016.3

41.3%

The other businesses segment centers on fees derived fromtion work. In the year under review, other businesses net

51

generation facilities already in operation and power-genera-

36.5

Fiscal 2018 Review and Strategies
other segments as well as large-scale repair and construc-80

80fund assets are steadily growing. Total power generation

4,130

36.7

million yen

Electrical generation by Mega-solar

In the fiscal year under review, Takara Leben infrastructure

4,305

110,851909

5.4
2016.3

L L Net sales (Millions of yen)
P Gross profit margin

Total

28.9%

30.8

million yen

3.4%

Sales composition ratio

18,239cultivated to date to develop power plants and purchasebusiness as a means to supplement domestic operations.

facilities currently operating with the aim reaching total

Targeting Vietnam over the near term, we opened a repre-

power generation of volume 250MW in fiscal 2021. Planningsentative office in the capital Hanoi City in March 2018. We

to incorporate other forms of renewable energy later on, we

will search for expanding businesses that extend investment

are looking into operating wind power plants through fiscal

areas beyond real estate sales to include management

2021.

operations, collect project information, and discover partner

Increase in repair business (increase in condominiums at
suitable age for large-scale repair work)

Expanded compen­
sation due to increasein managed assets

AM compensation
Construction
business (businesses toeffectively utilize land, etc.)

Business Development Overseas

Socialist Republic of Vietnam

Hanoi

REPRESENTATIVE OFFICE OF
TAKARA LEBEN CO.,LTD. IN HANOI CITY

companies within a reasonable range.

LS Takahagi Power Generation Facility

Opens a representative office in Vietnam’s capital, Hanoi City

Medium-Term Management Plan performance (quantitative) goals
Fiscal 2018
Results

Sale of(millions of yen)
Facilities
Net
sales Revenue from Saleof Electricity(millions of yen)
Total power generation
volume(MW)
14

Takara Leben Annual Report 2018

Medium-Term Management Plan performance (quantitative) goals

Fiscal 2019
Plan

Fiscal 2020
Plan

Fiscal 2021
Plan

14,6877,000

17,00017,000

3,552

3,800

4,100

4,200

103

147

200

250

Fiscal 2018
Results

Net sales(millions of yen)

3,797

Fiscal 2019
Plan

3,700

Fiscal 2020
Plan

6,980

Fiscal 2021
Plan

7,150

Takara Leben Annual Report 201815

Corporate Governance
Basic Approach to Corporate
Governance

Auditors are always in attendance at Board of Directors’

Rather than simply pursuing profit, the Company strongly
believes in compliance with laws and corporate ethics and­carrying out its duties as a responsible member of society.
While maintaining close-knit relationships with its shareholders, customers, and employees–our basic stakeholders– theCompany will work on responses in which constant thought isgiven to how we can deliver even greater satisfaction. In addition, we believe that reflecting on the feedback received fromother diverse stakeholders in our business, while responding in

As a system for the check and balance of decision making,time, auditors work closely with outside directors and, as

all three corporate auditors of Takara Leben are outside cor-necessary, audit and oversee the running of Board ofporate auditors, and each possesses sufficient background,

Directors’ meetings and the status of business execution.

experience and mettle to make objective judgments andAlso in attendance at Board of Directors’ meetings are

perform checks. In preparation for cases in which the num-

executive officers, the head of the Internal Audit Office, andber of corporate auditors would be fewer than that stipulat-

the heads of other departments, who have received

ed by laws and regulations, one reserve corporate auditor isrequests from the Board of Directors based on internal regu­

also appointed. In addition to conducting audits for Takara

lations and express their opinions on each agenda item or

Leben, the auditors are also involved in the audits of ourmatter contained in a report as required.

Group companies, attend their board meetings, conduct

The Company holds an Executive Committee meeting (toways that constantly keep in mind what a company should
achieve and for whom, will eventually lead to the realization ofsound, effective, and stable business management.
In addition, by not confining ourselves to check and balance functions by means of systems but rather by spreading
the roots of checks and balances as indices or systems
throughout the Company, we will work so that function

Executive Remuneration

Audit & Supervisory Board

meetings and state their opinions as necessary. At the sameinterviews with their directors and maintain firm relationships

discuss topics with regard to management) once every two

with these companies. In addition, an accounting auditor

weeks and a business conference (to discuss sales prog-

mutually ascertains and adjusts each year’s accountingress) on a weekly basis. In addition to sharing the achieve-schedule, accompanies corporate auditors on site inspec-

ment status of management targets at these and othertions and model room surveys and endeavors to improvemeetings, the Company gleans information on problem

the effectiveness and efficiency of further audits by con-areas and issues in the form of performance reports fromstantly exchanging information as appropriate.

each department and deliberates important matters relating

works in synch with each person’s awareness.

to overall management. The content of those reports is
raised at Board of Directors’ meetings on an as-required

Corporate Governance System

Internal Audit Office
Takara Leben also formulated guidelines for internal audits
as well as establishing an Internal Audit Office as anindependent organization directly reporting to the President
to enhance and strengthen our internal audits. In thebasis.

Board of Directors
Takara Leben has appointed 11 directors, three of whom are

Executive Officer Systemoutside directors. All three outside directors have been des-Having introduced an Executive Officer system, Takara

ignated as independent officers. In addition to carrying out

Leben has clarified its directors’ management oversightprudent and swift decision making, directors mutually super-

responsibilities and the business execution responsibilities ofvise the status of business execution at Board of Directors’

its executive officers and is working to further speed up its

meetings, which, in principle, are held once a month, and at

decision making and strengthen its business execution.

extraordinary Board of Directors’ meetings that are held on

proposal and execution of the internal audit plan, the office
coordinates the schedules of auditors and the Accounting
Auditor and adjusts the scopes of audits to seek efficient
operation of various functions. Auditors accompany and witness operation audits conducted by the Internal Audit
Office, and work on building an effective and efficient audit

Directors’ remuneration is determined on the basis of thedegree of each director’s contribution to business expansion
and improvement in corporate value toward the Company’ssustainable growth. The limit of the annual amount of remuneration is deemed to be 600 million yen or less (not including, how­ever, the employee portion of the salary), and thelimitation of the special stock option remuneration to 300
million yen or less annually which is decided by a resolution
at an Ordinary General Meeting of Shareholders.
The remuneration of the Audit & Supervisory Board
member is limited to an annual amount of 60 million yen or
less.
Amounts of Director and Auditor Remuneration(As of March 31, 2018)

Number of people

Amount of remuneration(Millions of yen)

Directors

10

410

Auditors

3

26

Total

13

437

Position(Notes) 1. T he amount paid to directors does not include the employee salaries of directors
concurrently serving as employees.
2. T he remuneration limit for directors is up to a limit of 600 million yen per year
(excluding any salaries as employees), as approved at the 45th General Meetingof Shareholders held on June 27, 2017. In addition, at the 43rd General Meetingof Shareholders, held on June 24, 2015, it was resolved that the annual amountof stock option remuneration would be up to a limit of 300 million yen.
3. A
 t the Extraordinary General Meeting of Shareholders held on July 16, 1999, a
remuneration limit of 60 million yen per year was decided for corporate auditors.
4. T he total amounts of the aforementioned remuneration, etc. include the following amounts as the amount of expenses in the fiscal year related to stock acquisition rights allocated as stock option remuneration.
• Six directors 74 million yen

system by means such as verifying the scope of the audit

an as-required basis.

and collecting opinions as appropriate.

Corporate Governance System
Ordinary General Meeting of Shareholders

Compliance & Risk Management Committee

Election

16

Takara Leben Annual Report 2018

Election
Audit

Board of Directors

Audit & Supervisory Board
Audit

Election/Supervise
Representative Director

Business Departments
Administrative Departments

Election

Reasons for Nominations of Outside Directors and Frequency of Attendance at Board of Directors’ Meetings

Collaboration
Audit
Audit

Audit
Internal Audit Office

Accounting Auditor

Election

Name

OutsideDirector

Hitoshi Shida

Mr. Shida possesses an abundance of experience and achievements in management at financial institutions and business firms. Having already been
receiving guidance and advice from him in his capacity as advisor, theCompany appointed Mr. Shida as an Outside Director.

25 / 25

OutsideDirector

Katsumi Kasahara

As Mr. Kasahara has built up a wealth of experience and achievements as alawyer, possesses extensive knowledge and insight, and is highly mindful ofcompliance with laws and regulations, the Company appointed him as an
Outside Director.

25 / 25

OutsideDirector

Kenji Kawada*

Having been involved in management at a financial institution and a business
firm, Mr. Kawada possesses abundant experience of and achievements inmanagement as well as extensive knowledge and insight. He has therefore
been reappointed as an Outside Director.

19 / 19

Audit
Group Companies
Leben Community Co., Ltd.
Takara Leben Tohoku Co., Ltd.
Takara Leben West Japan Co., Ltd.
Nikko Takara Corporation Co., Ltd.
Takara Leben Realnet Co., Ltd.
Leben Zestock Co., Ltd.

Takara Property Co., Ltd.
Nikko Property Co., Ltd.
Takara Asset Management Co., Ltd.
Takara PAG Real Estate Advisory Ltd.
Sunwood Corporation

Audit

Reason for nomination

Attendance at Board of
Directors’ Meetings

Position*

Kenji Kawada was appointed at the General Meeting of Shareholders held June 27, 2017.
Note: The Company has registered all of its outside directors with the Tokyo Stock Exchange as independent directors.
Takara Leben Annual Report 201817

Compliance/Business Risks
Compliance
Compliance Basic Policy
To fulfill our corporate social responsibility, all organizations,
officers and employees of the Takara Leben Group will comply with laws and regulations, social norms, and separately
established ethical rules to be example to society.
Compliance Promotion Structure
Takara Leben has established a Compliance & Risk
Management Committee chaired by our President. The
Committee validates and reports all business-related risks,holds discussions and makes decisions on measures andmanagement to counter or reduce risks, and works thoroughly on strengthening internal controls and preventing
misconduct, lack of compliance, and other similar incidents.
In addition, subcommittees—such as for business strategy,
finance, IT & administration, and compliance—are established as necessary, and build systems which enable proactive proposals appropriate to risk management in eachcategory. Furthermore, the scope of discussions for eachsubcommittee is reported and validated at the Compliance& Risk Management Committee as appropriate based on
our Compliance & Risk Management Committee Rules.
These are reported to our Board of Directors’ meetings asnecessary to build a system for swift decision-making thatwould be prepared for occurrences of risk.

Business Risks

CSR
Home buyer sentiment
The Takara Leben Group’s core business, new built-for-salecondominiums, tends to be swayed by changes in homebuyer sentiment, which is affected by factors such as theoverall economy, residential tax regulations, consumption
taxes, land prices, and interest rates. A pronounced deterioration in home buyer sentiment may impact the performanceand financial position of the Takara Leben Group.

The Takara Leben Group will realize our corporate vision ofCustomers“THINK HAPPINESS AND MAKE THE HAPPINESS,” andwork hard to earn the trust of various stakeholders and sociCSR initiatives into our business (e.g. supplying housing, utilizing natural energy) to leverage our strengths in contribut-

nizations and financial institutions, and therefore credit

ing to solving social issues

CSR Themes
The Takara Leben Group is working on the iden- tification oftions may potentially impact the performance and financial

critical issues (materiality).

Trading partners

1

In FY 2017, we worked on grasping the cur- rent situation, sorting information, and promoting understanding with-

Impact of competition
The Group sells real estate on a nationwide basis, but an

Executives andemployees

Governments

crunches caused by unfavorable changes in financial condiposition of the Takara Leben Group.

Local
communities,
NPOs, and
NGOs

Media

In the purchase of condominiums, etc., our customers often
make use of home loans from home financing support orga-

Shareholders andinvestors

Competitors

ety. We will strive for continuous growth by incorporating

Impact of home loans Creating lifestyles
with value

We contribute to improving the richness ofpeople’s lifestyles by creating new value.

 rovidingP
comfortable spacesof high quality

We support the comfortable and safe living of
our customers by providing products bringing
great satisfaction to our customers.

3 Developing
environments andcultures

We contribute to a sustainable society byactively working on environmental issues, and at
the same time, contribute to improving quality oflife by providing opportunities for mental activities such as learning and practicing the arts.

4

We form communities with stakeholders—suchas local communities, trading partners, andemployees—and aim for growth together.

in the company as a prepara- tion stage.

2

Moving forward, we will be identifying critical issues based

excessive price competition may prolong marketing activities

on Takara Leben’s perspective, and the priorities from theor cause sales at the estimated price to be difficult. Such sit-

perspectives of stakehold- ers. We aim to report the results

uations may potentially impact the performance and financial

in our report for FY 2018 together with information disclo-

position of the Takara Leben Group.

sure ad- hering to the Global Reporting Initiative (GRI)
Standards.

 Formingcommunities

Subcontractors
The Takara Leben Group submits orders for the constructionof condominiums to construction company operators, but inthe event of a rise in the building contract costs due to thesoaring prices for building materials and construction labor

The following items present potential risk for the operating

costs, there is the possibility of a decline in profitability.

results, share price, financial position, etc. of the Takara

Should the construction company entrusted with the con-

Leben Group. Forward-looking statements hereby are based

struction work become insolvent, there is also the possibilityon the assessment by the Takara Leben Group as of thethat this would give rise to delays in the construction workend of the current consolidated fiscal year.

or to a default on the construction contract. Also, in theevent of the construction company having not provided theEarthquakes and other natural disasters

contracted amount of due compensation in the future, thisEarthquakes and other natural disasters may directly dam-

may potentially impact the performance and financial posi-age the Takara Leben Group or the construction companies

tion of the Takara Leben Group.

used for execution, or may make it difficult for these construction companies to procure building materials. Any of

Other risks are identified as follows.

these events may delay construction work, as well as ham-• Possibility of Lawsuits

per sales and collection activity of the Takara Leben Group,• Personal Information, etc.

and thus impact the performance and financial position of

CSR Basic Policy

CSR Promotion Structure
To link CSR activities to the improvement of corporate value

President

for all Group companies, we are building a promotion framework which spans across all companies. We are also build-

Executive Committee
Frequency: Twice each month
Participants: Directors, auditors, and executive officers
Content: Decision on measures; confirmation of progress

ing a vertical promotion framework unifying managementwith business ac- tivities by making decisions and reportingat our Executive Committee meetings as appropriate.

Executive in charge of CSR

In addition, we are organizing training for executives of all
Group companies and staff in charge of CSR. We are also
considering opportunities for information sharing and discussion with ground staff.

CSR Promotion Team
Scope of work: Formulation of direction; proposal of measures; implementation and awareness-raising of measures; progress management

Moving forward, we will create new value by creating environments where em- ployees can take ownership in working

Takara Leben Group CSR staff

on CSR, and further strengthen our activities by reaffirming

Scope of work: Implementation of measures; management of progressawareness of critical issues.

the Takara Leben Group.
For more details on activities, please see our CSR Report 2018.

https://www.leben.co.jp/en/ir/csr.html

18

Takara Leben Annual Report 2018

Takara Leben Annual Report 2018

19

CSR
Creatig Lifestyles with Value

Developing Environments and Cultures

Under the concept of “realizing harmony between residents and the surrounding environment in an optimal form,”

The Takara Leben Group not only improves the environment through adopting renewable energy, but also contributes

the Takara Leben Group aims to create lifestyles of merit through the supply of homes that deliver comfort and aes-

to improving energy self-sufficiency and regional revitalization including the use of idle land. In addition, we work on

thetic design.

improving the quality of life for people by providing opportunities for cultural and social activities.

LebenCraft Project

Solar Power Projects/Luic Projects

Providing Condominiums Installed with Solar Power

Sponsorship for Tohoku Rakuten Golden Eagles

Regional revitalization project that links regional cities

In the case of the solar power projects, assuming the intro-

Generation Systems

To deepen communication with local residents, Takara

with the Tokyo metropolitan area

duction of energy systems such as solar power generation,

The Takara Leben Group provides condominiums installed

Leben sponsors the Miyagi Prefecture-based Tohoku

LEBENCRAFT is a system that enables a condominium

planning, design, and construction will be conducted fromwith solar power generation systems, which utilize renew-

Rakuten Golden Eagles professional baseball team. On thetenant living in a city to utilize the Condominium Concierge

the time of the land purchase. Doing this makes it possible

able energy that does not emit CO2—a greenhouse gas,

Eagles Kids Day held in May 2017, we gave away uniforms

smartphone app to purchase regional specialty products

to limit the utility costs to less than half than normal. In theduring the operation of systems. Solar panels are installed

to 5,000 children.

supplied to condominiums by the Takara Leben Group. We

years to come, we will set up new power generating facilities

on the rooftops of condominiums, which allows for all theare contributing to regional revitalization by linking people liv-

not limited to solar power generation, and aim to dissemi-

electricity generated by the panels to be sold to electric

ing in urban condominiums with the regions. Unique to thenate electricity using lower cost renewable energy.

companies over a

Focusing on water that is indispensable in our daily lives,

long-term periodTokyo metropolitan area but also conducts regional city revi-

the Luic projects are proposals for housing that incorporate(20 years). In addi-

talization business.

unprecedented water environments. Among the features wetion, all-electric

Sales ofspecialty products

are adopting is the Takara Water System, a whole housecondominiums also

water purification system, and the Takara Microbubble

adopt good-value

Takara Leben Group, this initiative not only develops theDistribution ofregional information

Areas supplying products tocondominiums
Akita, Toyama, Ehime, etc.

Takara Leben
Group condominium
tenants
Rediscovering regional attractions

Tornado O2, a bath system that removes waste and impurities
and is gentle on the skin.

electricity rate
LEBEN Moriya THE SQUAREProviding Comfortable Spaces of High Quality

plans.

Sponsoring the Eagle Kids Day

Giving away baseball uniforms

Forming Communities

So that all people live with peace of mind. The Takara Leben Group pursues the performance necessary for housing

The Takara Leben Group works on regional revitalization — such as participation in redevelopment and local events

that supports the happiness of families, offers a certain quality that combines design and comfort, and a comfort-— and the strengthening of communications with customers, employees, and shareholders. We build ties withable space that allows people to live with peace of mind forever.

stakeholders, and contribute to the formation and growth of communities.

Condominium Management:

Initiative to Improve Quality by Acquiring

Community Activities of Leben Community Co., Ltd.

and aging, and realizing safe, secure and attractive cities.

The Foundation of Trust and Peace of Mind

ISO 9001 Certification

Leben Community proactively proposes and supports activi-

Improve convenience by upgrading infrastructure, creating

Service Quality Management System (SQMSTM)

For the purpose of improving the quality of our comprehen-ties toward the formation of communities among condomini-

busy hubs by improving parks and urban areas andTo continue managing customers’ valuable assets over thesive support to customers in building comfortable living envi-

um residents. The communications required for

improving child care support facilities, we plan redevelop-

long term, Leben Community Co., Ltd., which is responsibleronments, Leben Community and Nikko Takara Corporation

condominiums depend, for example, on the number ofments that realize a high-quality lifestyle and exude thefor managing condominiums, is adopting its own service

have prepared quality management systems in accordance

elapsed years, residents’ age groups and regional charac-qualities that typify that region.Together with the owners ofquality management system (SQMSTM). This represents thewith ISO 9001, the international standard for quality man-teristics. Leben Community brings together the know-how

land and buildings, we work with the local government

original management know-how that forms the cornerstone

agement systems formulated by the International Standardsof various properties that we have cultivated over many

administration and fullyof our company and which, developed from the ISO 9001

Organization, and obtained this certification.

years and proposes the creation of a community that suits

benefit from any easing ofinternational standard for quality management systems,

that condominium. We naturally support the creation ofbuilding regulations andrepeatedly provides feedback on long-term experience togood communities from all angles, through participation infrom subsidy systems to

the system. The system enables us to carry out quality con-events, such as festivals and disaster prevention drills, whileform three-party partnership

trol and business management in parallel and can maintainalso supporting the management association’s board of

to bring about the resur-

quality standards of service even if consultant staff and man-directors and general meetings.

rection of a city’s vitality.

agers are replaced.
Regional Revitalization Through Redevelopment Business
Through redevelopment projects, we are improving thefunctionality and comfort of cities by solving various issues
faced by modern-day cities, such as population declines
Lobbies with high-class interior

20

Takara Leben Annual Report 2018

LUCIDA TOWER in Toyama City
under its downtown redevelopment
project based on its basic plan forcity center revitalization andJapan’s Urban Renewal Act

Adopting the most fitting equipment
for each property
Takara Leben Annual Report 201821

Directors and Audit & Supervisory Board Members

Six-Year Summary(As of June 27, 2018)

Millions of yen

YoshioMurayama

KazuichiShimadaKazuyuki
Shimizu

Director andChairman

Representative
Director andPresident

Director andVice President

Sep. 1972	Established the Company
Senior Managing Director
Apr. 2012	Representative Director, President and CEO
Apr. 2014	Representative Director and Chairman
Jun. 2016 Director and Chairman (incumbent)

Takeshi Okabe
Senior Managing
Director

Apr. 1998	Joined the Company
Apr. 2015	Senior Managing Director, Executive Officer,
and Executive General Manager of the Sales
Division
Jun. 2016	Director, Jutakujohokan Co., Ltd. (namechanged to Takara Leben West Japan Co.,
Ltd. effective April 1, 2017)
Apr. 2017	Senior Managing Director, Executive Officer,
and Executive General Manager of theInvestment Development Division (incumbent)
Jan. 2018	Representative Director, Leben Zestock Co.,
Ltd. (incumbent)

Masashi
Yamamoto

May 1987	Joined the Company
Jun. 2006	Representative Director, Vice President, andExecutive General Manager of theDevelopment Division
Apr. 2014	Representative Director, President, CEO, COO,
and CFO (incumbent)

Yoshitaka
TejimaOct.	2004 Joined Leben Community Co., Ltd.
May 2014	Senior Managing Director, Leben Community
Co., Ltd.
May 2016	Representative Director and Vice President,
Leben Community Co., Ltd.
Jun. 2018	Representative Director, Takara Leben WestJapan Co., Ltd. (incumbent)
Director and Vice President (Responsible for
Corporate Planning) (incumbent)

Tadayuki Hara

Aug. 2002	Joined the Company
Apr. 2017	Managing Director, Executive Officer, andExecutive General Manager of the Sales
Division, General Manager of the 1st Group of
the Sales Division, General Manager of the 1st
Sales Division, and General Manager of the
2nd Sales Division
Apr. 2018	Managing Director, Executive Officer andExecutive General Manager of Sales Division(incumbent)
Jun. 2018 Director, Takara Leben West Japan Co., Ltd.
(incumbent)

Hitoshi Shida
Director(Outside)

Director

Apr. 1961	Joined Nippon-Sogo Bank, Ltd. (name changed
to Sumitomo Mitsui Banking Corporation)
Jun. 1990	Director and General Manager of Akasaka
Branch, The Sakura Bank, Limited(name changed to Sumitomo Mitsui Banking
Corporation)
Jun. 1992	Managing Director, The Sakura Bank, Limited(name changed to Sumitomo Mitsui Banking
Corporation)
Jun. 1994	President, The Taiheiyo Bank Ltd.
(name changed to Sumitomo Mitsui Banking
Corporation)
Jun. 1997	Representative Director, Yoei Co., Ltd.
Jun. 2014 Director, Takara Leben Co., Ltd. (incumbent)

22

Takara Leben Annual Report 2018

Jan. 2000	Joined the Company
Jun. 2016	Director, Executive Officer, and General
Manager of the Overall Sales Group – Sales
Division, Manager of the Sales Promotion
Department, and Manager of the Business
Department
Jun. 2017	Director, Takara Leben Tohoku Co., Ltd.
(incumbent)
Apr. 2018	Director, Executive Officer and General
Manager of Overall Sales Group, Sales Division(incumbent)

KatsumiKasahara
Director(Outside)

May 1973	Registered in the Roll of Attorneys (registration
no.: 13897); Joined the Tokyo Bar Association
May 1999	Counselor, Japan Credit Counseling
Organization
Apr. 2013	Legal Counsel and Member of the Ethics
Committee, The Society for Preservation ofJapanese Art Swords (incumbent)
Jun. 2015	Director, Takara Leben Co., Ltd. (incumbent)

2015.32016.32017.32018.3

Net sales¥64,907¥71,963¥76,956¥76,268¥103,599¥110,851

Gross profit

14,37818,19918,311

17,835

21,86925,779Operating income

6,361

9,798

9,257

7,563

10,34912,597

Ordinary income

5,792

9,181

8,540

6,708

9,496

11,792

Net income

4,074

5,869

5,718

4,308

6,107

7,367

Cash flows from operating activities

875

22,996(8,155)2,428

22,644

9,869

Cash flows from investing activities(1,590)(4,567)(7,998)(19,816)(27,540)(34,463)

Cash flows from financing activities

1,229

(366)

6,314

19,6636,129

24,012

Capital expenditure

1,658

4,163

8,095

22,756

20,81430,302

356

437

717

1,192

2,397

1,943

Depreciation and amortization
Total assets

75,013

95,891

101,738

129,744

139,874

177,975

Current assets

55,932

72,52467,31975,75386,585

103,498

Cash and deposits

17,91135,964

26,281

28,51529,78029,223Inventory

35,37633,44535,34540,20849,93368,43820,279

2,067

1,156

4,901

4,073

9,658

   Power generation facilities for sales   Real estate for sale

—

—

—

—

7,885

4,090

   Real estate held for sale in progress

33,30832,28830,44436,13432,39044,068Fixed assets

19,081

23,366

34,40053,94553,23774,437

Net assets

24,147

27,13831,18933,67736,792

42,907

Interest-bearing debt

35,09637,765

48,81270,396

79,864

106,663

Per Share Information:*Mika Takaara

Director

May 2016	Joined Company, General Manager of General
Affairs Division
May 2017	Director, Leben Community Co., Ltd. (incumbent)
Jun. 2017	Director, Executive Officer, and Executive
General Manager of General Planning Division,
General Manager of Control Group of Corporate
Planning, General Manager of Personnel,
General Manager of Corporate Planning
Apr. 2018	Director, Executive Officer, Executive General
Manager of General Planning Division, General
Manager of Control Group of Corporate
Planning, and General Manager of Corporate
Planning (incumbent)

2014.3

Managing Director

Senior Managing
Director

Mar. 1997	Joined the Company
Jun. 2014	Director, Sunwood Corporation (incumbent)
Oct. 2016	Managing Director, Executive Officer, andExecutive General Manager of theDevelopment Division, General Manager of theOverall Development Group, General Managerof the Development Division, General Manager
of Yokohama Branch, and General Manager ofthe Eco-Energy Division
Apr. 2018	Senior Managing Director and Executive Officer
and Executive General Manager ofDevelopment Division (incumbent)
Jun. 2018	Director, Takara Leben West Japan Co., Ltd.
(incumbent)

2013.3

Net income per share (Yen)

33.61

50.64

50.61

38.99

56.14

68.12

Net assets per share (Yen)

201.90237.53279.11304.71

339.29394.90

Dividends per share (Yen)

15.0

5.0

6.0

13.0

15.0

16.0

18.6

Operating Indices:

Kenji Kawada
Director(Outside)

ROE (%)

18.0

22.9

19.7

13.3

17.4

ROA (%)

5.6

6.9

5.8

3.7

4.5

4.6

Operating income margin (%)

9.8

13.6

12.0

9.9

10.0

11.4

Debt ratio (Times)

2.1

2.5

2.3

2.9

2.8

3.1

Current ratio (%)

192.7

192.3

193.4

176.7

171.5

182.0

Inventory turnover (Times/Year)

2.0

2.1

2.2

2.0

2.3

1.9

Equity ratio (%)

32.2

28.2

30.6

25.8

26.2

24.0

Dividend payout ratio (%)

11.2

9.9

11.9

33.3

26.7

23.5

* Takara Leben conducted a 4-for-1 stock split with the effective date of July 1, 2013. Dividends per share after the fiscal year ended March 31, 2014 take into account the impact of this stock split.
Moreover, past net assets per share and net income per share data is presented after adjusting for the stock split.

May 2003	Representative Director and President, Resona
Holdings, Inc.
Jun. 2009	Chief Director, Resona Research Institute Co.,
Ltd.
Jan. 2016	Representative of TMA KAWADA OFFICE(incumbent)
Apr. 2016	Adviser, FUJITSU RESEARCH INSTITUTE
Jun. 2017	Director, Takara Leben Co., Ltd. (incumbent)

Takara Leben Annual Report 201823

Financial Review
Summary of Overall Results
During the fiscal year ended March 31, 2018, the Japanese economy
continued to recover moderately amid improved corporate earnings
backed by an environment of stronger employment and income,due to a range of fiscal measures implemented by the government.
In the real estate sales market in which Takara Leben operates,
sales are increasingly divided between weak and strong results in
response to a rise in selling prices caused by soaring construction
costs in the Tokyo metropolitan area. Upward trends were seen in
demand for convenient locations and daily life and compact condominiums, reflecting changes in lifestyles caused by an increase insingle-person households and dual-income households and changes
in consumer values. Meanwhile, demand in regional urban centersremains strong, thanks in part to the demand of active seniors,
which continues to be high, and the trend toward compact city
development.
The number of nationwide condominium units sold increased intion facilities in the electric power generation business and successful

As a part of this basic policy, Takara Leben undertakes the distri-

Turning to the source of the Takara Leben Group’s capital as wellefforts to reduce selling, general and administrative (SG&A) expenses.

bution of surplus twice yearly through the payment of an interim andas its overall funding liquidity, steps are taken to procure a portion of

period-end dividend.

the finance necessary to fund activities undertaken by the core real

Operating Income
The cost of sales climbed 4.1% compared with the previous fiscal
year, to 85,072 million yen. This was mainly due to the sale ofpower generation facilities that were already in operation. As aresult, gross profit came to 25,779 million yen, a year-on-yearincrease of 17.9%. On this basis, the gross margin improved 2.2
percentage points compared with the previous fiscal year, to 23.3%.
SG&A expenses increased 14.4% year on year, to 13,182 million
yen. Despite the continued implementation of comprehensive measures to reduce expenses from the previous fiscal year, this largely
reflected increases in personnel, sales and promotion as well as
advertising expenses associated with business expansion.
Taking each of these factors into consideration, operating income
expanded 21.7% compared with the previous fiscal year, to 12,597
million yen on an operating income margin of 11.4%, up 1.4 per-In the fiscal year under review, energies were directed toward

estate sales business from financial and other institutions. These

ensuring the stability of profits and restructuring the Company’s

activities include the purchase of housing lots as well as construc-financial condition in a bid to secure the corporate stamina required

tion. In addition, Takara Leben has concluded a commitment line ofto overcome changes in the external environment. Emphasis wascredit agreement totaling 41,320 million yen with its major banks andespecially placed on profitability. In fiscal 2018, Takara Leben adopt-

other institutions, enabling the Company to procure funds in a timely

ed a stringent approach toward profitability when determining busi-

manner. While borrowings have increased in recent years in line withness plans while working diligently to reduce costs. Through these

efforts to expand the scope of the Group’s business and engage inmeans, positive steps were taken to secure stable profits. Against

investment activities, energies have been channeled toward putting

this backdrop, the Company plans to undertake the payment of div-

in place an investment recovery cycle while at the same time improv-

idends while balancing the need for retaining earnings geareding the equity ratio. Coupled with efforts to build an optimal portfolio,

toward future growth.

these endeavors are helping to secure stable funding.

Looking ahead, Takara Leben will continue to promote stable

The balance of interest-bearing debt stood at 106,663 million yen

management as the basis of its operations, pursue renewed

as of the end of the fiscal year under review, compared with 79,864

growth, and undertake the payment of dividends commensurate

million yen as of March 31, 2017. The ratio of interest-bearing debt

with its business performance in accordance with its basic policy.

to total assets and the current ratio as of the end of fiscal 2018

On this basis, the annual dividend for the fiscal year under review

were 59.9% and 182.0%, respectively. Based on the aforementioned, the equity ratio came in at 24.0%.

2017 for the first time in four years, however it remains at the

centage points year on year.

70,000 level for the third consecutive year. Under these conditions,

Net Income

the Company ranked among the top 10 for the fifth consecutive

has been set at 16 yen per share. This represents an interim divi-

Non-operating income grew 55.6% year on year, to 393 million yen,year and plays the role of a stable supplier in the real estate sales

dend of 5 yen per share and a period-end dividend of 11 yen per

due largely to the distribution of equity method affiliate profits. Non-market as an independent general real estate developer.

share, which equates to a dividend payout ratio of 23.5%.

Cash Flows

operating expenses rose 8.4% compared with the previous fiscal

Outlook for Fiscal 2019

Cash and cash equivalents as of March 31, 2018 amounted to

In fiscal 2019, the fiscal year ending March 31, 2019, Takara Leben

2017. Free cash flow came in at negative 24,593 million yen.

In this environment, the Company announced details of its newyear, to 1,198 million yen. This was mainly attributable to an

Medium-Term Management Plan on May 14, 2018 and will ensure

increase in interest expenses in line with new borrowings for project

stable earnings in addition to responding promptly and appropriate-funds. Extraordinary losses increased 1.1% year on year, to 974 mil-ly to changes in its external and internal environments.

lion yen, mainly as a result of posting impairment losses.
As a result, net income before income taxes amounted to 10,817

Profit and Lossmillion yen, up 26.6% compared with the previous fiscal year. After

In addition to robust sales of new built-for-sale condominiums in the

deducting income taxes of 3,449 million yen, net income attribut-core real estate sales business, the gross margin also rose substantially compared with initial plans thanks largely to reductions in thecost of sales and other factors. As a result, consolidated net sales in
the fiscal year under review came to 110,851 million yen, up 7.0%

able to owners of parent came to 7,367 million yen, a year-on-yearincrease of 20.6%. Net income per share was 68.12 yen and ROE
was 18.6% for the fiscal year under review.

year on year. From a profit perspective, operating income amounted

Dividend Policy

to 12,597 million yen, 21.7% higher compared with the previous fis-

29,042 million yen, a decrease of 581 million yen from March 31,

is projecting net sales of 130,000 million yen, up 17.3% comparedwith the fiscal year under review. As far as earnings are concerned,
operating income is forecast to come in at 10,700 million yen, adecrease of 15.1% year on year. Ordinary income is expected to
decline 18.6%, to 9,600 million yen and net income attributable toowners of parent to fall 14.5%, to 6,300 million yen.

Cash Flows from Operating Activities
Net cash provided by operating activities was 9,869 million yen(cash provided of 22,644 million yen in the previous fiscal year). The
major component was an increase in notes and accounts payable –trade. Depreciation and amortization amounted to 1,943 million yen,down 454 million yen compared with the previous fiscal year.

Financial Position

Cash Flows from Investing Activities
Net cash used in investing activities was 34,463 million yen (cash

Funding Demand and Management of Liquidity

used of 27,540 million yen in the previous fiscal year), mainly due toTakara Leben considers that the return of profits to shareholders is

While recognizing that such factors as the market environment can

the purchase of property, plant and equipment.

cal year. Ordinary income climbed 24.2%, to 11,792 million yen, andone of its most important management issues. With this in mind,

have a significant impact on the Group’s operating results, Takara

net income attributable to owners of parent grew 20.6%, to 7,367

the Company’s basic policy is to undertake the proper, stable, andLeben pays particular attention to monitoring its dependence on

million yen. This represented a second consecutive fiscal year ofcontinuous payment of dividends in line with operating results whileborrowings. As far as the core real estate sales business is con-record high profit. Major factors that contributed to the Company’s

retaining the funds necessary to expand its business and strengthen

cerned, operations are largely predicated on the level of borrowings.

improved performance include the additional sale of power genera-

its business operations.

In principle, we target a borrowing dependency level of less than

Cash Flows from Financing Activities
Net cash provided by financing activities was 24,012 million yen(cash provided of 6,129 million yen in the previous fiscal year),which was primarily attributable to an increase in loans payable.

60% in order to ensure stable business growth while securing theproper amount of shareholders’ equity.

Net sales/Operating income margin

Net income/ROE

Dividends per share/
Dividend payout ratio

Total assets/Interest-bearing debt

Net assets/Equity ratio

Capital expenditure/
Depreciation and amortization

L L Net sales (left axis)
P Operating income margin (right axis)

L L Net income (left axis)
P ROE (right axis)

L L Dividends per share (left axis)
P Dividend payout ratio (right axis)

L L Total assets
L L Interest-bearing debt

L L Net assets (left axis)
P Equity ratio (right axis)

L L Capital expenditure
L L Depreciation and amortization(Billions of yen)

(%)(Billions of yen)

(%)(Yen)(%)(Billions of yen)(Billions of yen)

(%)(Billions of yen)

150

15

8

24

20.0

200

60

40

40

6

18

150

45

30

30

100

10
4

12

100

30

20

20

50

5
2

6

50

15

10

10

0

0

0

24

2014.3 2015.3 2016.3 2017.3 2018.3

Takara Leben Annual Report 201800

2014.3 2015.3 2016.3 2017.3 2018.3

0

40

10.0

0.0

20

2014.3 2015.3 2016.3 2017.3 2018.3

002014.3 2015.3 2016.3 2017.3 2018.3

02014.3 2015.3 2016.3 2017.3 2018.3

2014.3 2015.3 2016.3 2017.3 2018.3
Takara Leben Annual Report 201825

Consolidated Balance Sheet
Millions of yen
2017.3

Millions of yen

2018.3

Assets2017.32018.3Liabilities

Current assets

Current liabilities¥ 29,780¥ 29,223¥ 12,173¥ 15,786   Notes and accounts receivable—trade

1,331

1,539

   Short-term loans payable

16,49018,389   Real estate held for sale

9,658

20,279   Current portion of bonds

60—   Power generation facilities for sale

7,885

4,090

   Current portion of long-term loans payable

13,098

12,838  Lease obligations   Cash and deposits   Notes and accounts payable, trade   Real estate held for sale in progress

32,39044,06851

55   Power generation facilities in process—29   Income taxes payable

2,976

3,547

   Costs incurred on uncompleted contracts

15

129

  Advance received

2,234

2,177

   Deferred tax assets

99

567

   Provision for bonuses

323

363

  Other

5,549

3,680

   Provision for warranties for completed construction

405

525

   Allowance for doubtful accounts

(124)

(110)

   Deferred tax liabilities

269—

86,585

103,498  Other

2,399

3,193

   Total current liabilities

50,48256,876   Total current assets
Non-current assets

Noncurrent liabilities   Property, plant and equipment   Buildings and structures

17,742

20,866   Long-term loans payable

48,43975,015    Accumulated depreciation(3,506)(2,584)  Bonds payable

1,640

200

    Buildings and structures, net

14,23518,281  Lease obligations

85

164

    Machinery, equipment and vehicles

5,125

5,550

   Provision for directors’ retirement benefits

56

73    Accumulated depreciation

(525)

(881)

   Net defined benefit liability

331

436

     Machinery, equipment and vehicles, net

4,600

4,669

   Asset retirement obligations

22

22    Tools, furniture and fixtures

148

291

   Deferred tax liabilities

39

404

    Accumulated depreciation

(93)

(115)

  Other

1,984

1,873

     Tools, furniture and fixtures, net

55

176

   Total noncurrent liabilities

52,59978,191103,081

135,067  Capital stock

4,819

4,819

  Capital surplus

4,817

4,823

  Retained earnings

32,97038,717

23,82135,899   Lease assets

231

273

    Accumulated depreciation

(144)

(92)

87

180

   Land    Lease assets, net   Construction in progress

4,346

7,132

    Total property, plant and equipment

47,146

66,340   Goodwill

889

1,265

   Lease assets

42

27   Other

459

516

1,391

1,808

Total liabilities  Intangible assets   Total intangible assets   Investments and other assets   Investment securities

2,501

Shareholders’ equity   Long-term loans receivable311  Treasury stock(5,976)(5,875)   Deferred tax assets

7284   Total shareholders’ equity

36,63042,485

3,375

3,707

(9)

(6)

   Valuation difference on available-for-sale securities

4262    Total investments and other assets

4,699

6,287

   Total accumulated other comprehensive income

4262   Total non-current assets

53,23774,43751

38¥139,874¥177,975   Other    Allowance for doubtful accounts

Deferred assets
Total assets

26

1,228

Net assets

Takara Leben Annual Report 2018

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

157

159

36,792

42,907¥139,874¥177,975

Takara Leben Annual Report 201827

Consolidated Statements of Income and Comprehensive Income

Consolidated Statement of Changes in Shareholders’ Equity

Consolidated Statement of Income

Millions of yen
2017.3

Millions of yen

Net sales

2017.32018.3¥103,599¥110,851

Cost of sales

81,72985,072Gross profit

21,86925,779Selling, general and administrative expenses

11,52013,182

Operating income

10,34912,597

Non-operating income

Balance at beginning ofcurrent period

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity¥4,819¥4,817¥29,011¥(5,100)¥33,548

Accumulated othercomprehensive income
Net unrealized
gains (losses)
on availablefor-salesecurities

Total
accumulated
othercomprehensive income

New share
subscription
rightsTotal
net assets

¥(11)

¥(11)

¥140

¥33,677

Changes of items
during period

Interest income

151

Dividend income

27

95Commission fee

106

109

Share of profit of entities accounted for using equity

36

46

Miscellaneous income

65

139

Total non-operating income

252

393

 Disposition oftreasury sharesInterest expense

1,036

1,067

 Retirement oftreasury shares

Miscellaneous loss

69

131

 Transfer to capital surplus
from retained earnings

616

(616)

16

16

16

33

—

—

3,958

(875)

3,082

16

16

16

3,115

¥4,819¥4,817¥32,970¥(5,976)¥36,630

¥ 4

¥ 4

¥157

¥36,792

Non-operating expenses

Total non-operating expense
Ordinary income

1,105

1,198

9,496

11,792Extraordinary income
Gain on reversal of share acquisition rights

13—

Total extraordinary income

13

—
42

Extraordinary losses Dividends of surplus(1,532)(1,532)(1,532) Net income attributable toowners of parent

6,107

6,107

6,107

(1,754)(1,754)(1,754)

129

132

261

261

(746)

746

—

—

—

—

 Purchase oftreasury shares Net changes of items otherthan shareholders’ equity
Total changes of items
during period
Balance at end ofcurrent period

Loss on retirement of non-current assets—

Loss on sales of non-current assets—

4

Impairment loss

651

593

Loss from compensation for complete work

170

174

Office transfer expenses

95

93

Loss on liquidation of subsidiaries and associates

45—

Loss on transfer of receivables—

66

Total extraordinary losses

963

974

Net income before income taxes

8,547

10,817

Income taxes – current

3,519

4,501

Income taxes – deferred(1,080)(1,051)

Total income taxes

2,439

3,449

 Dividends of surplus(1,620)(1,620)(1,620)Net income

6,107

7,367

¥  6,107¥  7,367 Net income attributable toowners of parent

7,367

7,367

7,367

Net income attributable to owners of parent

Millions of yen

Net income

Capitalstock

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity¥4,819¥4,817¥32,970¥(5,976)¥36,630 Purchase oftreasury shares

257

6,124

7,624

Net income attributable toTotal
net assets

¥  4

¥  4

¥157

¥36,792— Retirement oftreasury shares

—

—

—

257
7,624

New share
subscription
rights108 Net changes of items otherthan shareholders’ equity

6,124

Total
accumulated
othercomprehensive income— Transfer to capital surplus
from retained earnings

16

Net unrealized
gains (losses)
on availablefor-salesecurities

108¥7,367

16

Accumulated othercomprehensive income

Changes of items
during period¥6,107

Total other comprehensive income

Takara Leben Annual Report 2018

Balance at beginning ofcurrent period

2018.3

Valuation difference on available-for-sale securities

Comprehensive income attributable to owners of parent

2018.3
Shareholders’equity2017.3

Other comprehensive income

Comprehensive income

Millions of yen Disposition oftreasury shares

Consolidated Statement of Comprehensive Income

28

Shareholders’equityTotal changes of items
during period
Balance at end ofcurrent period

6

101

—
257

257

2

259

—

6

5,747

101

5,855

257

257

2

6,114

¥4,819¥4,823¥38,717¥(5,875)¥42,485

¥262

¥262

¥159

¥42,907

Takara Leben Annual Report 201829

Consolidated Statement of Cash Flows

History
Millions of yen
2017.3

Cash flows from operating activities
Net income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision
Increase (decrease) in net defined benefit liability
Interest and dividend income
Gain on reversal of share acquisition rights
Share-based compensation expenses
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable—trade
Decrease (increase) in operating loans receivable
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable—trade
Increase (decrease) in advances received
Increase (decrease) in advances received
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Decrease (increase) in short-term loans receivable
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of shares of subsidiaries and associates
Purchase of investment securities
Proceeds from sales of shares of subsidiaries
Purchase of shares of subsidiaries
Outflow from acquisition of subsidiaries’ stock resulting in change in the scope of consolidation
Other
Net cash used in investing activities
Cash flows from financing activities
Net increase in short-term borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Repayment of lease obligations
Purchase of treasury shares
Cash dividends paid
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalent at end of year

¥ 8,547
2,397
651
117
197
24
(43)
(13)
291
1,036
—
(367)
85
12,529
136
(875)
568
25,28343(942)(1,739)22,6442018.3¥10,817
1,943
593
176
160
105
(97)
—
110
1,067
42
(180)
274
(3,379)
3,613
(57)
(483)
14,70397(1,010)(3,922)
9,869

(202)
171
8
(23,860)
—
(62)
—
(832)
—
—
(2,755)(6)(27,540)

(167)
142
4
(30,144)
9
(132)
(541)
(929)
70
(491)
(2,321)
37(34,463)

9,077
42,456(43,477)
1,477
—
(118)
(1,754)(1,531)6,129
1,233
28,390¥29,623

1,839
62,190(36,829)—(1,500)(67)—(1,619)24,012(581)
29,623¥29,042

1971–1980
1972

Established as Takara Komuten Co., Ltd. in Yamato-cho, Itabashi-ku

1974

Relocated the Company’s head office to Nakaitabashi, Itabashi-ku

1975

Purchased the Company’s head office to the Nakaitabashi Head Office Buildings (Dai-ichi Takara Building)

1981–1990
1982

Launched the real estate rental business

1986

Established Takara Jyuhan Co., Ltd. in an effort to expand sales and intermediary operations

1988

Established Takara Management Co., Ltd. as a real estate management company

1991–2000
1994

Set up the Condominium Division at Takara Jyuhan Co., Ltd.
Commenced sales of the “Leben Heim” series of condominiums

1996

Changed the name of Takara Management Co., Ltd. to Leben Community Co., Ltd.

1999

Undertook the absorption-type merger of Takara Jyuhan Co., Ltd.

2000

Changed the name of Takara Komuten Co., Ltd. to Takara Leben Co., Ltd.

2001–2010
2001

Relocated the Company’s head office to Ikebukuro following completion of the Takara Leben Head Office Building
Listed on the JASDAQ market
Established TAFUKO Co., Ltd. as a financial brokering business

2003

Listed on the Second Section of the Tokyo Stock Exchange

2004

Listed on the First Section of the Tokyo Stock Exchange
Made the real estate brokerage company Relivel Leben Co., Ltd. into a subsidiary company
Established AS Partners Co., Ltd. as a nursing care business

2006

Relocated the Company’s head office to the Shinjuku-Sumitomo Building

2008

Launched the new Takara Leben brand2009

Converted AS Partners Co., Ltd. from a subsidiary company to an affiliate accounted for by the equity method following the sale of a portion of thecompany’s shares

2010

Launched the detached housing business with detached housing built by the Company in its own right

2011–Present
2011

Commenced sales of custom-built houses; exhibited products at the Tachikawa Housing Exhibition Center2012

Launched the new LEBEN condominium brandMade the real estate rental and management business Takara Housing Co., Ltd. (current Takara Property Co., Ltd.) into a subsidiary company

2013Entered the electric power generation business
Established Takara Asset Management Co., Ltd. as an investment management business
Made Sunwood Corporation into an affiliate accounted for by the equity method

2014

Set up the Hokuriku Office
Set up the Tohoku Office
Made the real estate distribution business Oasis Co., Ltd. (current Takara Leben Realnet Co., Ltd.) into a subsidiary company
Made Nikko Kensetsu Co., Ltd. into a subsidiary company

2015

Closed the Tohoku Office. Made Live Net Home Co., Ltd. (current Takara Leben Tohoku Co., Ltd.) into a subsidiary company; relocated to Sendai City,
Miyagi Prefecture
Made Jyutakujyouhoukan Co., Ltd. into a subsidiary company

2016

Made Nikko Property Co., Ltd. into a subsidiary company
Changed the name of Nikko Kensetsu Co., Ltd. to Nikko Takara Corporation Co., Ltd.
Completed steps for Takara Leben Infrastructure Fund Inc. to be the first to list on the Tokyo Stock Exchange Infrastructure Fund Market

2017

Closed Yokohama Branch; set up Osaka Branch
Set up the Sapporo Office
Changed the name of Jutakujohokan Co., Ltd. to Takara Leben West Japan Co., Ltd. Established Fukuoka Head Office
Relocated the Company’s head office to the TEKKO BUILDING in Marunouchi, Chiyoda-ku

2018

Changed company name from TAFUKO Co., Ltd. to “Leben Zestock Co.,Ltd.”Made its subsidiary PAG Investment Management Ltd.(the present Takara PAG Real Estate Advisory Ltd.)
Introduced new condominium brand NEBEL
Established REPRESENTATIVE OFFICE OF TAKARA LEBEN CO.,LTD. IN HANOI CITY
Takara Leben Real Estate Investment Corporation was listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market

30

Takara Leben Annual Report 2018

Takara Leben Annual Report 201831

Company Profile

Stock Information

Company name

Takara Leben Co., Ltd.

Representative

Kazuichi Shimada,
Representative Director and President

Established

September 1972

Capital stock (As of March 31, 2018)

4,819 million yen

Net sales (Fiscal year ended March 31, 2018)110,851 million yen

No. of employees (As of March 31, 2018)

286

Head office

Tekko Building 16F
1-8–2 Marunouchi, Chiyoda-ku,
Tokyo, Japan 100-0005
TEL.: +81-3-6551-2100

Securities code

8897

Stock exchange listingFirst Section, Tokyo Stock Exchange

Shareholder registryadministrator

Sumitomo Mitsui Trust Bank, Ltd.
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Total number of shares
outstanding (As of March 31, 2018) 124,000,000 shares
Trading unit of shares

Related companies (As of March 31, 2018)
Leben Community Co., Ltd.

Chiyoda-ku, Tokyo

Takara Leben Tohoku Co., Ltd.

Sendai City, Miyagi Prefecture

Takara Leben West Japan Co., Ltd.

Matsuyama City, Ehime Prefecture

Nikko Takara Corporation Co., Ltd.

Chuo-ku, Tokyo

Takara Leben Realnet Co., Ltd.

Chuo-ku, Tokyo

100 shares

Number of shareholders(As of March 31, 2018)28,832Major shareholders (Top 10) (As of March 31, 2018)

Number of shares held by investor segment (As of March 31, 2018)
Shares(Thousands)

Percentage
share (%)

Yoshio Murayama

25,633

20.67

Takara Leben Co., Ltd.

15,75012.70

Japan Trustee Services Bank, Ltd. (Trust Account)

3,103

2.50

Japan Trustee Services Bank, Ltd. (Trust Account 9)

2,545

2.05

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,312

1.86

JPMC GOLDMAN SACHS TRUST JASDEC
LENDING ACCOUNT

2,000

1.61

Murayama Kikaku Co., Ltd.

2,000

1.61

Japan Trustee Services Bank, Ltd. (Trust Account 5)

1,765

1.42

THE BANK OF NEW YORK 133612

1,750

1.41

JP MORGAN CHASE BANK 385166

1,673

1.34

Name of shareholder

Securities companies
1.82%
Treasury stock
12.70%

Individuals
and others
44.88%

Non-Japanese
investors
22.23%
Other domestic
corporate investors
3.54%

Financial
institutions
14.82%

Share price trends
Share price (yen)

1,000
1,000

Leben Zestock Co., Ltd.

Chiyoda-ku, Tokyo

Takara Property Co., Ltd.

Toshima-ku, Tokyo

Nikko Property Co., Ltd.

Yokohama City, Kanagawa Prefecture

Takara Asset Management Co., Ltd.

Chiyoda-ku, Tokyo

Takara PAG Real Estate Advisory Ltd.

Minato-ku, Tokyo

Sunwood Corporation

Minato-ku, Tokyo

4 -for-1 stock split

750
750
500
500
250
250
00


Trading volume (thousand shares)

50,00050,00040,00040,00030,00030,00020,00020,00010,00010,00044 55 66 77 88 99 10
10 11
11 12
12 11 22 33 44 55 66 77 88 99 10
1011
1112
12 11 22 33 44 55 66 77 88 99 10
1011
1112
12 11 22 33 44 55 66 77 88 9910101111121211 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 91010111112121 1 2 2 3 3
2013
2013

2014
2014

2015
2015

2016
2016

2017
2017

00

2018
2018

* Takara Leben conducted a 4-for-1 stock split with the effective date of July 1, 2013. All past share prices are listed at the share price after the stock split.

32

Takara Leben Annual Report 2018

Takara Leben Annual Report 201833

Takara Leben Co., Ltd.
TEKKO BUILDING 16F, 1-8-2 Marunouchi,
Chiyoda-ku, Tokyo, Japan 100-0005
Investor Relations Office
TEL.: +81-3-6551-2130 FAX: +81-3-6551-2139
https://www.leben.co.jp/en/

Printed in Japan